MN7409: Strategies for Managing Change

Lecture 4

Muhammad Ashikur Rahman

In this lecture we will:

• Define change and why change is important

• Explain how and why preferred change strategies have changed over the
past 100 years.

• Compare and contrast economic and organization development strategies.

• Apply the contingency model to one of the issues faced by Asda.

What is change?
- Difference between the status quo and innovation
- New rules
- An alteration
- A new direction
-
-
Uncertainty
An improvement
Hands up- what is your
- A development definition of change?
Some triggers of change?
- Competition
- Customer demand
-
-
Stakeholders expectation
Technological adoption
Hands up- what are the
- Regulations internal triggers of
- Response to the economy
- Industry change change?
- Political disruptions
- Environmental/sustainability issues
Some internal triggers of change?
- Expansion (restructure, merger)
- Shift in goals, systems and processes
- Failure
- Internal conflicts
- Cutting cost
Defining the problem is not that easy! We need:

Clarity about what the core issue is

Clarity about the causes of this

Hands up: If an organisation has a largely demotivated staff….is this the

actual problem, or is this a symptom of a problem?

If it is a symptom, what ‘might’ the problem be?

 Options
This is the point at which we generate potential solutions- recognising that we
‘satisfice’….what does that mean?

Innovative models of solution generation suggest that you think divergently to begin
with, and then converge the ideas to reach some workable solution.

Problem
Divergent thinking

Convergent thinking
Solution
Why change is important?
- To improve and compete
- To cope with the dynamic society
- To grow
- To make profits
- To achieve specific goals
- To be better
- To survive
 The change in change management strategies
In the first half of the twentieth century, Tayloristic top-down approaches were
dominant

In 1930s and 1940s there was a search for a new approach to managing
change known as organisation development (OD)

Identification of some important values and assumptions that underpin OD

Hands up…..what do you think are the new values?

Situations are unique

Collaborative process

Collective learning and joint problem solving

Group level change

- At the beginning, OD interventions were small scale, localised and

incremental.
- Following the second world war, a new economic order emerged which led
organisations to adjust quickly to the external environment. As time passed,
more large scale industrywide initiatives began to emerge, such as TQM. OD,
however, remained relevant.
 Approaches to change
Three approaches to change:

1. Economic Strategies

2. Organisation Development Strategies

3. A Combined Economic and OD strategy

However, top management shows reluctance to adopt the third way

 Contingency model: alternative change strategies
1. Incremental change strategies
- Collaborative evolution
- Charismatic evolution
- Forced evolution
- Dictatorial evolution
2. Transformational change strategies
- Collaborative transformation
- Charismatic transformation
- Forced transformation
- Dictatorial transformation
 Situational variables in shaping change strategies
1. Stability of the external environment
2. Urgency and stakes involved
3. Level of support
4. Degree to which other stakeholders trust those leading the change
5. Clarity of desired future state
6. Change managers having required data for designing and implementing
the change
7. Degree to which change managers have to rely on the commitment and
energy of others to implement the plan
8. Alignment of values
9. Need for coordination
 Asda case study

A change of strategy for:

the pursuit of higher margins for the long term

diversification of products

The appointment of Archie Norman as the new CEO

 Asda case study

Based on the lecture, you have 15 minutes to devise your over-arching

strategy for Asda. Using your analyses thus far, and the strategy approaches
and contingency model, generate and evaluate strategic options and choose
your strategy.

15 minutes