Understand the background to organizational strategic change

deduce the background to governmental strategic switchLO 1 Understand the background to musical arrangemental strategic salmagundiI. John P Kotters eight steps to successful agitateHarvard-Professor Kotter, studying the influence of organizational heighten for over threesome decades. While any miscellanea sens be successfully implemented or otherwise be a failure. Kotter move arounded out an 8-step feign. The first four steps here focus on de-freezing the organization the next three make the alternate happen and the last step re-freezes the organization with a impertinently close (Leading Change by John P. Kotter). The reposition vigilance guru also mentions that when someone volume need to make big modifys significantly and trenchantly, he says that this goes best if the 8 steps happen in order.They commit been summarised as belowCreate Urgency bingle needs to create and imbibe an increased sense of urgency. This motivates heap to make a move, make real a nd applicable objectives.Form team A strong and able guiding aggroup needs to be built. recall to get the right people in place for the right job as commitment, and various levels of skill sets need to be matched.Create Vision The group establishes a vision and strategy demand to deliver quality service and efficiency.Communicate Vision Involve as many people as possible, go the essentials, simply, and to appeal and respond to peoples needs. As the vision competes with various day to day organizational tasks one needs to communicate it frequently and powerfully, and embed it within everything. One should also lead by example.Remove Obstacles At this stage one has to put in place a structure for imminent castrate. Empower leaders removing any hierarchical obstacles, enabling healthy feedback and enough support from all stakeholders.Create short-term wins Create and set short-term targets that be easy to strive. dish out the number of initiatives and finish running sta ges sooner starting new ones.Consolidate Improvements Consolidate and encourage determination and persistence for ongoing transmute. Highlight achievements reward move on and set future goals. Instil new projects and themes.Make it Culture One has to weave multifariousness into the corporate culture. Reinforce and institutionalise the prize of successful change via recruitment, promotion. At this step one has to create plans to replace samara leaders of change as they move on. This will dish up ensure that their legacy is non lost or forgotten.It has been accepted the world over that change is inevitable. A change can be small restricted to a single or more(prenominal) surgical procedurees, or even for that matter a system-wide change. Under Kotters theory create a sense of urgency, recruit powerful change leaders, build a vision and effectively communicate it, remove obstacles, create quick wins, and build on your momentum. Such a documented and methodical do by can hel p make the change part of ones organizational culture.II. McKinseys 7S (strategy) frame wrickTwo consultants working at consulting firm McKinsey, in the early 1980s, Tom Peters and Robert Waterman developed this model. It says that, in order to ensure that all parts of the organization work as a single unit, there argon seven immanent aspects. (Ethan M. Rasiel, Paul N. Friga The McKinsey headland Understanding and Implementing the Problem-Solving Tools and Management Techniques.)The seven independent factors could be categorized as Hard Elements Strategy, Structure and Systems these are relatively easy to identify. Soft Elements are dual-lane Values, Style, provide and Skills, which are more difficult to identify and influence. These are less tangible and more of the cultural aspect.(In Search of Excellence)Shared values This interconnecting centre of the model mentions the central beliefs and attitudes of the organization.Strategy Plans for resource allocation to attain ident ified goals. Need to look at factors like environment, competition and customers.Structure The way the firms units relate to apiece other centralized or decentralized, matrix, network, holding, etc.System The procedures, processes and routines that say how to perform day to day work financial systems, hiring performance appraisal information systems.Staff Numbers and the type of someonenel required for the organization.Style Cultural style of the business leaders.Skill Skill sets and capabilities of the firms personnel as a whole.These can be applied to a team or a project. It should be noned that alignment issues do apply, regardless of how the scope is defined. For example this strategy helps toalign processes and departments amidst optical fusions or acquisitions.improve company performance.determine the best possible way to implement the proposed strategy.scrutinize the likely effects of imminent changes internally.Whatever be the type of change, this model can be used to u nderstand how the organizational machinery is inter-related, ensuring that the broader effect of changes made in one area are considered.The 7S model helps analyze the current web site (Point A), a proposed future situation (Point B) and to identify gaps and inconsistencies amid them. Its then a question of adjusting and tuning the elements of the 7S model to ensure that your organization works effectively and headspring once you r all(prenominal) the desired endpoint.III. Burke-Litwins causal change modelBurke Litwins Causal Model of Organizational Performance and Change, enumerates how performance is affected by internal and external factors. Its framework gauges organizational and environmental factors key to bring in a successful change. It also reveals how these factors can be linked causally to achieve a change in performance.Interestingly it incorporates all the variables in the 7S model adding 5 of its stimulate, describing organisational variables and the relationship among them. Each of the variables interact and a change in any one of them can eventually impact others. This helps in understanding how organisations perform, and how they can be changed.The causal model links what could be understood from suffice to what is known from research and theory. The model non lonesome(prenominal) discusses how different dimensions link with each other but also discusses how external environment affects the different dimensions in organization. The model focuses on providing a guide for both organizational diagnosis and planned, managed organization change, one that clearly shows cause-and-effect relationships.Understanding assessing the complexity of organizational change or so organizational change is driven by environmental impactBoxes indicate primary variables affecting organizational performanceArrows indicate minute linkagesA change in any variable will affect every other variableHigher level variables have greater weight in effecting organiz ational change(A causal model of organizational performance and change, W. Warner Burke George H. Litwin, Journal of Management, 1992, vol. 18.)The model outlines that, important elements of organisational success, such as mission strategy, leadership organisational culture, are oft forced by changes that finds its source outside of the firm. The change manager has to identify these external changes and understand the implications for him/her and the entire team. The model also distinguishes between transformational and transactional organizational dynamics.IV. David Gleichers change formulaeRichard Beckhard and David Gleicher created the Formula for Change. It was later refined by Kathie Dannemiller. This formula, like other theories devised to manage change, provides a model to assess the relative strengths affecting the likely success or otherwise of the programs implemented to bring in change.Change = (Dissatisfaction)(Vision)(First Steps) ResistanceC= D x V x F RThree fa ctors essential be present for meaningful organizational change to take place. These factors areD = Dissatisfaction with how things are nowV = Vision of what is possible (tangible and cover)F = First, concrete steps that can be taken towards the visionIf the product of these three factors is greater than R = Resistance, then only is change possible. If not, the system would be not capable of overcoming the resistance. It is essential to include planned tactical thinking, and authority to create vision and identify those crucial, early steps towards ensuring a successful change.The models applications could be before change or during the process of change. When planning a major change, planning teams see to it that all the three elements are built in. During the change, the formula is used to touch on people resisting change finding out the reasons to any resistance.Being different from earlier management theories, such as F.W. Taylors scientific management advent, this approach advocates employee enfolding in change, and the use of the internal or external consultants to manage reactions to change. In modern organizations, employees are taking cognizance of the bigger role of the management and realizing their own role and involvement in the organizational success. Employers are now showing more trust in them. The two roles are, now, not mutually exclusive.M1.Since the General preference in May 2010, the UK Prime Minister has announced a handful of changes to a number of presidency tools and systems. One of the most urgent task cladding the country is to wriggle out of the record debt situation and attain better financial position. This requires reforms to the structure of government, including ensuring that the government has the best machinery possible to deliver efficiencies. Restructuring the Civil function departments was one such thing.Context and rationaleThe Governments rationale was to ensure that its public machinerys running costs are tigh tly managed, benefits are delivered and that any changes represent value for money. The change has been made in order to support him in carrying out his Ministerial responsibilities.David Gleichers change formulae could be used to push further the need for change.It has been in the main accepted that the British public has various levels of (D) dissatisfaction with how things are now and they would like change. The top priority and need for them is change from the present situation. This brought in a change of guard at the highest level of governance.OverviewThe people in-charge envisioned a plan to usher in the required objectives. Possible (V) vision both tangible and concrete are drawn and the (F) first, concrete steps that can be taken towards the vision were implemented. As, in the formula, the product of the above factors is greater than (R) resistance, change was possible.Signs of the new government and the changes brought in are highly visible departments renamed websites r eset to year zero and advisers appointed at the order of the coalitions new ministers. The appointment of special advisers to the new locker ministers also revealed a subtle shift in the spin accomplishment Camerons government will run. The majority have been taken from the ranks of policy advisors, as argue to press officers, and some ministers have been told they can only have one special advisor instead of the usual two. Ministers also have a team of civil servant press officers within their departments.Q1.3 Briefly explain any four out of the sideline strategic intervention techniques in organization change managementI. Autocratic versus participative styleIn an autocratic style of leadership is one where a single person holds unlimited power or authority. In such a system the team members are not encouraged and cannot put forward their views. They cannot criticize or question the leaders way of acquire things done. Owing to a single decision maker, the biggest advantage th is style offers is that it leads to speedy decision-making and greater productivity. On the other hand, this form of leadership leads to greater employee absenteeism and turnover.In a participative leadership style, also referred as the democratic style, leaders invite and encourage the team members to play an important role in decision-making process. However, one should note that the last decision-making power is held by the leader. Here employees communicate to the leader their experience and suggestions. Its advantages are that it leads to satisfied and motivated employees. Such a system fosters employee skill development, encouraging creativity. However, in this style a lot of time is consumed and it is most often slow.II. Proactive and reactive,Proactive Strategies are interventions techniques used on an ongoing basis. Such steps on an ongoing basis attempts to reduce the probability of occurrence of a challenging behaviour. They are preventative in nature.Reactive Strategies are interventions which are used only once a problem occurs. They are consequences to the behaviour. It is a damage minimization technique. In positive approaches to change management the idiom of proactive strategies is encouraged. If one does a good job with the proactive strategies, then reactive steps and policies need not be necessary. Sometimes it fully eliminates the challenges.Techno-structural interventionsTechno-structural interventions purpose is to form appropriate work designs and organizational structures providing strategic support of organizational development (E lawler III, 1974). In this form of intervention, the restructuring of the organization is very important. Here, workload is divided in the overall organization via sub-units for effective task completion (M Tushman, E Romanelli, 1986). Restructuring can be performed on at least five major factors environment, organization size, technology, organization strategy and worldwide operation (Thomas G Cummings C hristopher G Whorley, 2002). Employee involvement and work design are other major components.IV. Human process interventionsIn todays corporate world, strong emphasis is being laid on humanistic values. Focus is now turning on helping members to enhance themselves, each other and the ways in which they work together in order to enhance their overall organization. The pursuit human process interventions might be particularly helpful during change projects many new employees, different cultures working together, many complaints among organizational members, many conflicts, low morale, high turnover, ineffective teams, etc.D1Managing change is as important as ushering in change itself. Proper diagnosis of desired organizational changes, allows application of such strategic intervention as role playing, team development, survey feedback, process consulting, etc.Adopting strategic intervention methods, modern organizations can build success and advancement within and outside their organ ization.LO 2 Understand issues relating to strategic change in an organisationQ2.1 get word and briefly comment on the need for strategic change in an organisation (P4)Change has become the essence of organizational growth and development. Most change programmes arise from management whims such as culture change, business process re-engineering, and empowerment among others. Another reason for initiating change is competition and the organisations need to reposition it.The following are the some key reasons that initiate the need for change in an organization.They areforced,telling,participatory, ortransformational changes.By identifying the root cause, you can determine which mode of change you are actually dealing with in your business. Situations that require a mode of change can be financial, technological, economic, environmental or human focused. The time between the change and the realization of the aftermaths of that change is what William Bridges termed as the neutral-zone (Managing Transitions, W. Bridges). Most initiatives are given up because organizations do not see the gap for what it is the transition between the old world and the newQ2.2 Outline the forces that are impacting on an organisation and driving the need for change (P5). And critically analyse the current position of an organization of your choice and assess the factors in the organisation that are driving the need for change. (M2)As discussed in the question above, situations that require a mode of change can be anything. Factors could be financial, technological, economic, environmental or human focused.The change may be driven from internal or external circumstances such as a new competitive advantage or threat, economic considerations, advancing technology, management restructuring or ownership change, customer dissatisfaction, vendor disruption, or loss of key personnel just to name a few.The figure below shows the contextual features and design choices for a change process unde rtaken by Glaxo Pharmaceuticals in 1988, prior to its merger with Wellcome in the early 1990s. (Balogun and Hope Hailey)Glaxo was undertaking a proactive change initiative with time on its side. The initial scope was only realignment, as the mystify was to generate readiness in its complacent gross sales division for the transformational changes that were to come to match the changing customer requirements of the National Health Service and the reduced income that would result from one of Glaxos major drugs coming off-patent in the mid-1990s. Interestingly Glaxos balance sheet was heavy, and had the capacity to invest in the change process.However, it wanted to ensure that the change process did not antagonise its sales force and cause them to leave and join competitors. The timescales and the two phases of the scope allowed it to follow a path of reconstruction to generate the required levels of readiness, followed by a longer term evolution. Its capacity and time enabled it to i nvest in participative personal development initiatives and other symbolic interventions as part of the reconstruction, which would have been out of reach for a less profitable organisation.Q.2.3 If strategic change is important, why do some people find it difficult to accept and what are the consequences of this on the resources of the organisation and on the change process. (P6)As change can be for the proverbial good or bad for an organisation, there are more often than not resistance to the change process. Resistance could come from the following factorsA lack of awareness around the changeLow tolerance to changeComfort with the ways things are and fear of the unknown.Conflict over the need for changeMisunderstandingParochial self interestFear of failure.Loss of precondition and/or job security.Peer pressure.Disruption of cultural traditions and/or group relationships.Change is also resisted because of the poor way in which change is managed.Although most people feel comfortab le with minor changes, it is not easy for people to live and work by yesterdays reality. While a degree of resistance is acceptable, it could lead toDisruption,Stress, roam delays,Missed objectives,Decline in production,Absenteeism,Loss of valued employees, andThe ultimate failure of the whole process of implementing change or even the whole organization.LO 3 Be able to lead stakeholders in developing a strategy for changeQ3.1 Briefly explain how to involve stakeholders in the planning of change (P7). Use an organization of your choice to demonstrate it is workable in the selected organization. (D2)It is important to consider and understand that people and all stakeholders would be personally be affected by the change process. On a broader scale change requires that people do something they have not done before (Galvin 2003). People are generally the most critical resource, supporter, barrier and risk when managing change.At the onset of the change being conceptualised, the vocaliz ation of vision cannot be done exclusively and has to take all parties involved in the process. It is essential that at this stage one involves all of those who will have a stake in the achieving the vision. Strategic plan development requires consideration and articulation of values and priorities the plan should reflect views expressed by all those involved in the process.Q3.2 List and identify the different strategies that are available in the process of change management in an organization of your choice that would involve stakeholders of such organisation. (P8)For the organizational change exercise to succeed, the management team has to depend on an compartmentalization of people at various stages of the organization. They can be divided into five groups. (Managing Change in the Workplace (2nd Edition)Stakeholders at various StagesDescriptionExamplesChange recipientsintend receivers of change or change outcomesEnd-users of new softwareEmployees of merged companiesDecision make rsPeople who approve a change exercise and decide its scope and counsellingSteering Committee MembersProject SponsorChief Executive OfficerResource holdersPeople empowered to release financial and human resources required by a change effortChief Financial OfficerFinancial institution such as a bankLine Managerbroadcast implementersPeople charged with the responsibility for bringing somewhat the changeProgram ManagerProject ManagerProject Team MembersExternal partiesPeople that are not the intended recipients but who are impacted by the changesuppliers whose access to a business is restricted after a change in business hoursbroader community impacted adversely by a new product that contaminates the local environmentOnce you have identified your stakeholders at each stage, consider the key messages you will need to deliver to each group in order to gain their support.3.3 Evaluate six step stakeholders circle as an effective system used to involve stakeholders in the development of a change strategy (P9). You need to evaluate the process, taking account of anything that worked well and anything that did not work well or could have worked better in an organisation of your choice. (D3)The concept of Stakeholder Circle is a registered trademark of the Mosaic Project Services Pty Ltd, Australia.The following are considered when positioning a stakeholder within the circleThe radical depth of each stakeholders segment represents the power of that stakeholder.Each stakeholders degree of influence is represented by the width of their segment, the wider the segment, the greater the influence.The proximity of a stakeholder to the project is represented by how close their segment is to the project in the centre.The outcome of the visualisation above is to ease decisions on where the project team need to concentrate on their stakeholder management effort. This is based on the understanding of each element like key and relevant stakeholders. After such a careful study can one make a stakeholder-centric planning process be started.3.4 Using the same organisation in 3.3. Create a strategy for managing possible resistance to change that is appropriate to the selected organization (P10). You need to address the issues and provide a workable approach to overcoming the resistance. (M3)LO 4 Be able to plan to implement models for ensuring ongoing changeQ4.1, 4.2 and 4.3 briefed belowBy looking at change as a process with distinct stages, the change management team needs to prepare itself for what to expect at each stage and make subsequent set of plans. In such a method it becomes easier to manage transition, rather than being caught unawares.Understanding the why the change needs to place, is one of the foremost in any successful change process. Lewin said that, Motivation for change must be generated before change can occur. One must be helped to re-examine many cherished assumptions about oneself and ones relations to others. This is the unfreezing stage from which change begins.After the initiation in the first stage, the change stage is where people begin to make up their mind and are coaxed to look for alternative behaviours. Ideally team members begin to believe and act in ways that support the new direction.The final stage is all about stability. In the stage before this changes have been made and established. At this level changes are accepted and they replace the previous norm and become the new model. Team members shape new relationships and become comfortable with their routines. This can take time.UK retailer, Marks Spencer (MS), found its way into trouble in late 1990s and it subsequently act to put in place programme of change. It explored issues concerning to the organisational culture, strategic drift, strategic choice and the management of change.The Unfreeze stageOne of the biggest and foremost needs for change came from the customers front. The management and staffs attitude at MS were now being termed as rude an d arrogant by some analysts. This was owing to MS stellar performance and the upstage competition. This way of doing things, had to be changed as its growth trajectory was taking a slight southward path. This was extremely difficult to change. The internal workings of at the retailer, which were chiefly run by family members at the helm of affairs, had also become highly deferential, male oriented, with considerable bureaucracy.Amid this, the market began to see the tides of changes. More and more customers began to value higher(prenominal) levels of service, and were seeking novelty and difference. Competition was picking up too and the quality of service and range of products being offered started to take a toll on sales for the market leader.The Change stageLuc Vandevelde, Chairman and Chief Executive, gathered info and talked to all stakeholders. It set up an executive team in place and began a strategic review which was rigorous and all inclusive and was radical. The change ma nagement team kept all people informed and took feedback from every important person who had something to offer.The Refreeze StageThe change leader in the form of Vandevelde chalked out some successful strategies likeA rebrand and update of the corporate image thus avoiding the mistake Marks Spencer and St Michael symbols.A restructuring of the supply chain where stores were stocked based on demographic patterns.stressed the importance of restoring confidence to MS core customers