Business Strategy MOD003337 (Level 6)

Week 9A: Strategic Change

Management
Session Focus
• Drivers of change
• Challenges related to organisational
change management
• Change management Vs strategic change
management
• Theories & Models for managing
organisational change
Background

• Strategy as a subject will be incomplete without the

element of managing change. This is simply because
of a rapidly changing business environment,
particularly in contemporary times (Burnes, 2004)
• However well planned and implemented strategy is,
managers must expect a need for aspects of business
strategy to require some form of change, including
aspects such as approach, systems, people, location,
structure, culture, etc.
• The ability to effectively manage change, especially
in a proactive manner, plays a significant role in
determining organisational competitiveness and
sustainability.
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

Can you add to this list?

 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.
Planned & unplanned forms of
organisational change

Planned - a change resulting from a deliberate decision to alter

the organization. It is an intentional, goal-oriented activity. This
may be:
▪ incremental (slow/first-order) – It does not often change the
core of the organisation and may occur over a period of time -
e.g. change from one form of IT system to a more up-to-date
one.
▪ sudden (radical/big-bang) – often transformational, affects
core of organisation and in short period - e.g. A business going
into administration as was the case of Thomas Cook.

What are some of the merits and demerits of incremental

or sudden change?
Planned & unplanned forms of organisational change

Unplanned - imposed on the organisation and is

often unforeseen prior to the need for change.
Responsiveness to unplanned change requires
tremendous flexibility and adaptability on the part of
organisations. E.g. changes in government regulations
or changes caused by environmental factors e.g.
Covid-19.

Are there any merits to this kind of

organisational change?
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

Can you add to this list?

Change management Vs Strategic Change
Management

Any fundamental difference?

▪One of them involves managing a change

when the need arises;
▪The other is more proactive and uses
relevant tools of environmental analyses to
identify and engage change necessities
before the need arises.
Process of change management

The process of managing organisational change

will hugely depend on the model of change
management adopted by managers.

There are various theoretical approaches but a few

questions to consider:
▪ 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
Some of the various
theoretical frameworks that
can be considered for
effective change
management will be
considered.
Break
 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.

▪Other models for change management –
E.g. Nudge’s, Bridge’s, Kübler-Ross’, etc

▪You should research these to further

expand your awareness and, more
importantly, their individual
appropriateness for different
organisational change scenarios.
Questions?
End of Session.