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
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module is low.
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Boardroom Meetings.