Business Strategy MOD003337 (Level 6)
Week 9B: Strategic Change Management
Organisational Change
The main objective of business is to develop in the long
term; but this target lately is more and more intensive
under the customer influences on organisational
requirements and the economic, social and political
context in which they operated. Such organizations
and their business models change and stakeholder
management, continuous adaptation of their
customers’ needs and demands.
(Reim et al., 2015).
Organisational change management is
necessary for:
• Minimising the impact of change
• Increasing stakeholder engagement
• Improving performance
• Reducing costs
• Enhancing innovation
Drivers of Change
Changes in business environment:
Consumer behaviour including demand or preference
Government regulations such as increased tariffs
Technological advancement
Environmental circumstances such as a pandemic
Economic crash
Etc
Globalisation of the Market – often drives locally based businesses to seek global
relevance
Increased aggressive industry competition – this may be caused by any of the
forces of competitiveness, meaning business must change tact, approach or strategy.
Change in organisation’s direction – often from the Board
Examples of organisational change
Physical – this may be as simple as re-organisation of office
structure e.g. From boxed offices to open plan; or it may be as
major as moving locations
Systems – this may involve change to mode of serving
customers, financial systems or HR policies, etc
Product – this may be to rebrand or diversify goods/services
People – this may be of leadership; employee resizing
up/down; culture; structure; etc.
Organisational Change Management
Change management has been defined as ‘the process of
continually renewing an organization’s direction, structure, and
capabilities to serve the ever-changing needs of external and
internal customers’ (Moran & Brightman, 2001).
Managing organisational change has increasingly become a
highly required managerial skill as a result of the importance of
organisational change (Senior, 2002)
...but in spite of abundance of support for the relevance of
organisational change management the process still gets
challenged by numerous barriers.
Causes of resistance to organisational
change
Lack of trust in leadership
Poor communication or engagement/unclear purpose
Fear of the unknown/Comfort zone
Wrong timing
Unavailability of time
Fear of job loss
Presumed increased workload or stress
Status quo factor
Financial cost
Uncertainty of its reward
‘Not my idea’ attitude
Change Management is needful
but
Strategic Change Management
significantly enhances organisational
competitiveness and future sustainability
The former involves managing a change when
the need arises;
The latter is proactive as it is the reshaping of
business today because due to awareness of trends
in business environments.
Process of change management
Key questions to address before the process of change
management:
Is there enough force to support a desired change?
Do the benefits outweigh the cost?
Who are the stakeholders – who would this process affect?
Who are the key agents of change?
What is the most effective communication channel and process?
When is the right/best time?
Theoretical models for change
management
Kurt Lewin’s Force-field Analysis
a technique that can be used for identifying, discussing
and documenting the factors (referred to as ‘forces’)
that support or oppose a change
The side with the higher score is often the decider
Kurt Lewin’s force-field analysis is
useful prior to change management.
It helps to determine whether or not
the process of change should
happen.
Lewin’s Change management model
This model consists of three main stages which are:
unfreeze, change and refreeze
See notes for additional explanation.
Kotter’s Change management model
This theory presents eight stages where each one of them
focuses on a key principle that is associated with the
response of people to change.
See notes for additional explanation.
ADKAR management model
An acronym used by managers of change to find out the various
holes or gaps in the process of change management so that
effective training can be offered to the employees.
See notes for additional explanation.
Module Evaluation Survey
Response rate for the Business Strategy
module is low.
If you have not completed it please take
a few minutes to quickly do so now.
Use the link in the email sent to you by
email around 8/11/2020
Thanks 🙂👍
Boardroom Meetings.
