Strategic Change Models

Strategic Change Models Models of strategic change can best be defined as the possible adjustments in the vision, mission, and objective of an organization towards achieving specific goals. It is the quality of the organizational strategy based on its competitive edge, applicable resources, scope as well as synergy. With regard to this definition, it is very obvious that strategic change can easily be influenced by both external environment and the states of firms. Considering business world nowadays, change is obviously inevitable. Besides, it is expected that firms must always leverage towards managing change in order to be competitively positioned otherwise, any organization that is found wanting with regard to change will certainly lose relevance in no time. Indeed, one can initiate model for strategic change in organization in various ways depending on the peculiarity of the organization, the prevailing situation or the organizational objective per time. Meanwhile, some of the models of strategic chang e that will always stand the test of times in any organization include: A The Lewins Model of change The organizational change with this analogy is based on ice. More importantly, Lewiss model implies that when facing with change, the methodology must begin with the study of the in order to the reason and the type of change to plan for. As a linear model of change, the 3 steps it comprises are: Unfreezing the firm. This is all about making change through gathering and comparing fresh facts which produces unavoidable situation for change. It begins with unfreezing the exact needs for the purpose of such needs based on the required change. Again, it has to do with deactivating the current practice while the new change is systematically introduced. Moving or Change- This is the actual process of enforcing the required change. Re-freezing- This involves how to move from the old or traditional approach to the new one permanently. B Positive Model This model of strategic change in an organization can best be described with President Bush doctrine on pre-emptive strike on change without waiting for any unsuitable circumstance prior to introducing necessary change. This approach in not unaware that that organization is performing well but keep building upon these encouraging attributes to enhance more effectiveness and efficiency in operation. It is particularly ideal for model for identifying ways by which organization must or can operate; unfortunately, it fails to consider the factors that necessitate changes. C Action Research Model Strategic Change This model in question can be intensified and involves heavy data when one of the staff discovers some bottleneck and need for change. As a result: data relating to the situation is collected The gathered data points out likely the strengths and weaknesses with regard to the situation by way of first feedback A collective effort is made to find out the possible nature and causes of the issue at hand. Prepare a coordinated attack and well planned solution for implementation Gather additional data to verify the potency or weak points of the plan In case satisfactory result is not achieved, the process is repeated over and again until desirable solution or feedback is achieved. It is noteworthy to state that this model of change is demanding and it continuous cycle of producing theory and testing, carry out evaluation and sometimes repeating the hypothesis and testing. D John P.Kotter 8 Model This model can be summarized as follows: Create consistent urgency. Motivate the stakeholders to take positive actions. Try to make the motive behind this realistic and most suitable. Develop the regulatory team or group. Ensure that the appropriate individuals are nominated with good dedications and skills. Obtain suitable vision. Inspire the team to come out with straight forward vision and strategy. Pass across the buy-in. That is to say, you it is better to ensure the participation of several individual stakeholders and explore the use of technology to fast track your plan. Motivate actions with corresponding rewards. Clear all constraints and encourage logical feedbacks. Develop short term wins. Be aiming from simple and realistic goals Refuse to let up. Display courage and disciplines as you progress. Make the change permanent. Let the value of progressive change be known by promotions and reward. 1b Evaluation of relevant model of strategic change to organizations in the current economy According to Kotters model, change should not be approached too suddenly but step by step procedures. He went further to explain that change begins anytime there is an urgent need in within an organization for the purpose of feeling one or more requirements or there is need to find solution to some problems. With regard to the current economic scenario, in case an industry is experiencing keen competitive environment while the economic recession is biting harder, wisdom demands that organizations ensures do everything possible to motivate its workers. By so doing, they are bound to enjoy more commitments and loyalty from the workers. One of the best ways of demonstrating this is by ensuring their active participations and meaningful dialogue in all strategic change or plan. If an organization remain static or unable to change plan, this will further aggravates the already weaken aggregate business developments of the firm. This can only happen if the firm fail to recognize the need f or change and uphold the generally acceptable method of dealing with organizational change. In finding solution to the above case study, it is very obvious that Kotters 8 step change model has all the answers. First and foremost, management must create effective and solution oriented communication with all the stakeholders toward arriving at strategic change. Besides, the relevance of change model team cannot be overemphasised. It will be recalled that any organizational change is the directly initiated the team and also push the change ahead. In addition, tuckmans models of learning technique also comes to play in this situation because it analyses different phases of team development. It specifically symbolizes the levels of Forming, Norming, and Storming as well as Performing for the recognition of and the stages, at what point should any strategy is per time. Assess the value of using strategic intervention techniques in organizations 1c:- The value of using strategic intervention in an organization cannot be overemphasized. First and foremost, we must be reminded that strategy is all about long term creation of sustainable value. In other word, lack of timely strategic intervention will not only bring in sub optimality within the functional unit, it will as well have adverse effects on the vision, mission, goals and objective of the organization. Indeed, strategic intervention in every organization is highly valuable that it will position such firm competitively and enhance the effectiveness and efficiency of an organization. Again, the application of strategic intervention in an organization will surely bring about common process and terminology all over the organizational business units. This will enable the organization to speak one language in identifying priorities. 2 :A Examine the need for strategic change in an organization 2a The truth of the matter is that every organization must always anticipate the need for change as long as it still wants to maintain its relevance among in the production of goods or services. In fact change is a constant and uncontrollable variable; hence strategic change from time to time is the only solution any organization can adopt. Basically, strategic change will always make an organization to program its resources between the present and the future in a sustainable, effective and efficient manner so that it will only be thriving while surviving experience will become a thing of the past. Strategic change is required to have a competitive edge over others. It is important to reposition the organization in compliance with the latest trend. Without meaningful strategic change, organizations will remain static because it may find it very difficult to successfully interact with its environment. 2 :b) assess the factors that are driving the need for strategic change in an organisation 2b In the nutshell, need for strategic change in any organization may be propelled by either internal factors, external factors or both, depending on the peculiarity of the organization or issue at stake. Some of the internal factors that can potentially create changes include the attitude of workers, equipments, the workforce as well as the management strategy itself. On the other hand, many external forces most likely to bring about strategic change include Economic changes, labour markets, technology, government policies and regulations in addition to marketplaces (competition and forces of demand and supply).Better still, strategic change in an organization is needful if an opportunity is able to identified opportunities in one or more areas in preparation for its exploitation. 2 :c) assess the resource implications of theorganisation not responding to strategic change 2c The resource implications of Organizations not responding to strategic change. Obviously, any organization whose resource fails to respond to strategic change is bound to experience counter-productive results in its implementation and operations. The effects are as follows: Significant loss of capital and time to the organization in question It may lead to sharp decline in the productive capacity Lack of effective communication in the line of authority. Sub optimisation among the organizational units may set in instead of goal congruence. Lack of total commitments, dedication and discipline among the team members because of inadequate motivation. Loss of customer due to lack of coordinated efforts. Decision making may be dragging if not difficult. Task 2: 3 :A) Assess the resource implications of the organisation not responding to strategic change 3a Without any doubt, there is hardly any organization that can effectively plan any change without the active involvement of all the stakeholders. The task can be challenging but with effective planning, humility and courtesy, the prospects of burnout by participants can be minimized. In developing systems that involves the participation of stakeholders while planning for change, the following points must be highlighted: Ensure the involvement of all stakeholders from the onset. Inviting stakeholders at the conclusive stage could be met with resistance and rebellious. Give room to the stakeholders to have a say from the beginning enhances buy-in, commitment and enthusiasm. Be transparent. Try as much as possible to display honesty. It is better to let your group know the truth than to lie to for any reason. Listen, Listen and Listen. Even though it is may not be too easy, but always be a good listener. While listening, make sure that you maintain focus with all your body language. You may even demonstrate your listening ability by asking a follow -up question or repeat what the speaker just said. Ensure effective communication every now and then. Give recognition to differences at the early stage. There is bound to be disagreements, do not ignore this but try to resolve this early enough. Try never to abandon any stakeholders because of differences or for expressing different opinion. Give attention to what concern them and not purely on internal or management goal. Make provision for the resources required to carry the intended plan. Organize a meeting when it is mostly essential. Analyse feedback and give commendation where it is required. Create excitements along the process to enhance interactions. 3 :b) develop a change management strategy with stakeholders 3B To develop a change management strategy with stakeholders the following steps are needful: The management must devise many communication strategies such as meetings, survey, questionnaire, voting, interview, e-mailing as well as physical interaction. Formally invitation to the entire top management directly connected to business heads for the meeting to deliberate on introducing strategic change to the organization. Officially present to the relevant stakeholders on the reasons behind potential change within the organization. Try to document the minutes of meeting and then copy all members and equally solicit for their feedback. The moment these feedbacks are arrived, organize a strategy to proffer solution to all the reservations and let them see reason why change is inevitable. Plan for the official formation of a team as also select a dynamic and visionary leader to start the process for change. This team must encompass members that cut across various business processes. 3 :c) evaluate the systems used to involve stakeholders in the planning of change 3c Evaluation of the systems used to involve stakeholders in the planning of change. Basically speaking, change process must involve the top management and all the stakeholders otherwise known as the end users if such change or strategy will stand the test of time and popular. One of the best ways of initiating change process to ensure effective communication and calculated enlightenment as regard the needs for change. In other words, stakeholders are not only to be fully informed, they must be carried along creating room for their active participation in the process of making decision. Without good communication, feedbacks from them may not be fully explored. By requesting and accepting their inputs and feedbacks will always go a long way in motivating and giving them some sense of belonging, hence acceptance and implementation of the outcome will become easier. On no account must any stakeholder be taking for granted, rather they should always be made to feel that they are genuinely important at every stage. It is suggested that the word we be always used to replac e I or they to portray collectivism. The systems and processes that would need to be or probably be developed in order to guarantee the participation of stakeholders in the change can be categorized as follow: Containment strategies: The aim of this strategy is to focus on all who are mounting resistant and finding it difficult to adjust at the moment but can add value to the change due to their special knowledge, experience and skill. Outplacement strategy: Here, the outspoken and powerful resistant laggards are the best candidates for outplacement particularly when they fail to accept and complied with the planned change. Engagement strategies: The attention here is directed at the brains behind the doubtful majority while the target is to convince them to be the first to accept the change at the same time use them as instrument to convert the opposing sides. Leverage strategies: The technique is mostly applicable to the initial adopters with powerful influence to nurture their supports in order to explore the change among those who are sceptical and indifferent to the strategic plan. 3 :d) Strategic Tips for Managing resistance to change Ideally, resistance can hardly be divorced from the process of change and the effect can either be negative or positive, depending on the managerial handling. Here are some approaches towards handling of organizational resistance to change: Support and encouragement: If those who are saddled with the responsibility of originating and coordinating change process are given the corresponding encouragement, people get more inspired with increasing confidence for more commitment and sacrifice where need be. As role models, they can easily win many more opposing stakeholders in support of the change process. Dialogue and agreement: So many issues must be resolved anytime any organization opts for strategic change. It is almost certain that there will be some initial protests and misunderstanding among the stakeholders but all these can be resolved at a round table or other strategic solution. Participation and openness: There must be effective strategy meant to enhance collective participation and active participation of all stakeholders towards the change process. As a result, they tend to be motivated and feel part of the process. Communication and education: The only way to remove or drastically reduce any misconceptions from the opposing stakeholders is to embark on though education and maintenance of meaningful communication. Acceptance of change becomes easier when all the relevant stakeholders are well informed and communication is opened. Indeed, management can always win over any instance of resistance to change if effective and goal oriented action is embarked upon. In order to overcome any identified instance of resistance, therefore, it is suggested that management study and understand the actual reason for the fear or Doubt. Thereafter, try to identify the leaders and then concentrate and combine all efforts to make them see the reasons for change. In the extreme case, organization may decide to sacrifice them or dangle some carrots or banana before them in exchange for their supports. Reveal to them their likely benefits in the planned change and let some respected individuals talk on your behalf. Ask for their input and give them some responsibility for decision making. Always arrange strategic meetings at intervals and communicate effectively. 4 :a) develop appropriate models for change. 4a The most important features in the successful implementation of organizational model for change can be summarized into 5 factors as itemized below: Optimal coherent Ideally, any change strategy must always maintain consistency and also offer very competitive advantage. Human resources should always be treated as valuable assets than liabilities. This is not only motivational; it also enhances the commitments of the entire workers. Be a role model: The management must lead the planned change and make room for the best environments for change. They must as well set the pace and create a sense of direction. Most importantly, management must assume the responsibility of setting visions and objectives expected of any planned change. Connecting both strategic and operational change: If operational activities can be correctly built, it may give rise to fresh strategic plans. Carry out environmental assessments: This implies that both external and internal factors of the organizations must always be evaluated, regulated and controlled from time to time. 4 :b) plan to implement a model for change. 4b The strategy here is to gain the acceptance of the major decision makers and powerful individuals by enlightening them as regard the expected change. Carefully analyse a complete plan including the schedules and the phases of the change methodology. Try as much as possible to gain the stakeholders confidence and assurance for meaningful and lasting results. Carry all the end users along in the entire process and let them contribute their input to the planned change. Compensate and motivate the stakeholders for the successful implementations Arrange special training for the staff and other stakeholders for effective implementations of the change. Always keep good record of the progress along the line. Carry out appraisal and evaluations to measure changes per time and in different level. Understand the weak points and work hard to change it for better. It is suggested that your monitoring and reviews be programmed for once a week and also ones per month. 4 :c) develop appropriate measures to monitor progress. 4c It is very vital that organizations ensure effective monitoring of progress of change in order to measure those activities and performances it links to. There are many approaches to monitor this progress for the purpose of achieving the set objectives. Meanwhile, some of the popular performance measurements for progress monitoring include: Review and evaluations: Having arranged for the model of monthly and weekly reviews of the process, it is recommended that eagle eye is kept on the level or effectiveness of such progress. Through objective evaluations, the weaknesses or strengths of the planned change can be identified and take some corrective action where necessary. 180 and360 degree feedback: When this model is set for any group or persons, it becomes easier for the top management to realize understands the real performance, the corresponding resources required in addition to the contribution of individuals. Balanced scorecard: This implies a performance management technique which gives attentions to different overall performance indicators for monitoring progress in line with organizations strategic plan. Some of the instances are financials, learning, growth, internal business processes as well as the perspectives of the customers. Organized milestone: The idea behind this it aimed at setting a milestone for projects for the purpose of keeping track over the continuous progress of the project in question. Benchmarking Here, the attention is focus on how other organizations realize the target performances in addition to studying the methods of doing same. By benchmarking, careful study and evaluation of the prevailing situation is analysed and introduce improvements according to what obtains in the industry.