Description
Strategic Management Managing Change Graham Manville
Strategic Management
Managing Change
Graham Manville
Senior Lecturer University of East
Anglia
1
2
Learning Outcomes
• Differences in scope of strategic change
• Effect of organisational context on design of
strategic change programmes
• Role of change agents and styles of managing
change
• Discuss the strategy for effective turnaround
• Levers for influencing strategic change
• Unintended consequences of change
programmes
Managing
Change
3
Managing Strategic Change
• Tendency towards organisational inertia and
resistance to change
• Top and middle managers (and below) are
responsible for strategic change
• Need to link the strategic and the operational
aspects of the organisation
• Managing change is context dependent
4
Key Elements in Managing Strategic Change
Exhibit 10.1
5
Diagnosing the Change Situation
• Why is strategic change needed?
• Basis of strategy
– Strategic purpose/strategic intent
– Bases of competitive advantage
• Specific possible directions and methods of
strategy development
• Changes in structures, processes, relationships,
resources and activities required
– To translate strategic thinking into action
6
Types of Change
Exhibit 10.2
Source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic
Change, Prentice Hall, 1999.
7
Change Kaleidoscope (Balogun and Hope-Hailey, 2002)
Exhibit 10.3
8
Diagnosing context and change problems
• Cultural Web
– Diagnostic tool to understand culture
– Covers hard and soft aspects
• Structures and control systems (hard)
• Symbols, routines, political processes (soft)
– Can be used to analyse changes needed for strategic success
• Map current and required culture
• Forcefield Analysis
– Identifies forces for and against change
– Provides an initial view of change problems that need to be tackled
9
Styles of Managing Change
Style Means/Context Benefits Problems When effective
Education/
Communic-
ation
Briefings
Internalisation
Trust
Overcome lack of
information
Time consuming
Unclear
Incremental
change/long
duration/horizontal
transforma-tional
change
Collabora-
tion/Parti-
cipation
Involve in developing
strategy
Ownership/
improved quality
Time/Within
current
paradigm
Inter-
vention
Change agent
coordinates/
controls
Guided but with
involvement
Perceived
manipulation
Incremental/
non-crisis
transformation
Direction Use authority to set
direction
Clarity and speed No accept-
ance/ill
conceived
Transforma-tional
change
Coercion/
Edict
Explicit use of power
through edict
May succeed in
crisis
Least success
unless crisis
Crisis/rapid
transform/auto-cratic
culture
10
Roles in Managing Change (1)
• Change Agent
– Individual or group that effects strategic change in
an organisation
• Strategic leadership
– The process of influencing an organisation in its
efforts towards achieving an aim or goal
– Charismatic leaders
– Instrumental or transactional leaders
11
Roles in Managing Change (2)
• Middle managers
– Facilitators or blockers?
– 5 roles in managing strategic change
• Implementation and control
• Translators of strategy
• Reinterpretation and adjustment of strategy
• Relevance bridge between top managers and lower
managers
• Advisors to senior management on blockages and
requirements
• Outsiders, e.g. new CEO, new management,
consultants, key influencers (stakeholders)
12
Machiavelli’s “The Prince”
There is nothing more difficult to handle, more
doubtful of success and more dangerous to
carry through than initiating change in a state's
constitution. The innovator makes enemies of all
those who prospered under the old order, and
only lukewarm support is forthcoming from
those who would prosper under the new.
Machiavelli (1513)
13
The Dynamics of Paradigm Change
Source: Adapted from p. Grinyer and J.-C. Spender, Turnaround: Managerial
recipes for strategic success, Associated Business Press, 1979, p. 203.
Exhibit 11.5
14
Levers for Managing Strategic Change
• Turnaround
– Managing rapid strategy reconstruction
• Challenging the taken for granted
• Changing organisational routines
• Symbolic processes
• Power and political processes
• Communicating and monitoring change
• Change tactics
15
Turnaround strategy (1)
• Emphasis on speed of change, rapid cost
reduction and/or revenue generation
• Prioritisation of things giving quick and
significant improvements
• Crisis stabilisation
• Management changes
• Gaining stakeholder support
16
Turnaround strategy (2)
• Clarifying the target market
• Re-focusing
• Financial restructuring
• Prioritisation of critical improvement areas
• Focus on getting the business right, not look for
new markets
17
Turnaround: Revenue Generation and Cost Reduction
Exhibit 10.7
18
Challenging the taken for granted
• Need to change the paradigm
– Get people to see the realities
• Mechanisms
– Evidence from strategic analysis
– Analysing what people take for granted
• Workshop sessions
• Bring into open
• Debate and challenge
– Scenario planning to overcome bias and cultural
assumptions
– Bringing managers face to face with reality
(customers)
19
Changing organisational routines
• Routines are the “way we do things around here”
– Can become core rigidities
– Difficult to adapt to new strategies
• Mechanisms
– Identify critical success factors and underlying competences
– Bring strategy down to operational levels
– Changes in routines make strategy meaningful
– Doing is better than thinking
– Education/communication less powerful than involving people
– Persistent extending and bending existing ways of doing things
20
Symbolic Processes
• Symbols are objects, events, acts or people which express more than their
intrinsic content
– Changing symbols helps reshape beliefs and expectations, as meaning is
apparent in day to day experiences
• Mechanisms
– Introducing new rituals/abolishing old ones
– Change systems and processes
– Change physical work environment
– Behaviour of change agents
• Language – metaphors to galvanise change
• Stories
• Problems
– Symbolic levers may be misinterpreted
21
Organisational Rituals and Culture Change
Types of ritual Role Examples
Rites of passage Promote social roles/
interaction
Induction/training programmes
Rites of enhancement Recognise effort
Motivate others
Awards ceremonies
Promotions
Rites of renewal Reassure about action
Focus on issues
Appoint consultants
Project team
Rites of integration Push shared commitment
Reassert norms
Christmas parties
Rites of conflict reduction Reduce conflict/
aggression
Negotiate commitment
Rites of degradation Acknowledge problems
Weaken political roles
Fire top execs
Demote/pass over
Rites of sense-making Share interpretations Rumours, surveys
Rites of challenge Throw down the gauntlet New CEO behaviour
Rites of counter- challenge Resist new ways Grumble, work to rule
22
Effective and Ineffective Communication of Change
Exhibit 10.10
Source: Adapted from R.H. Lengel and R.L. Daft, ‘The selection of
communication media as an executive skill’, Academy of Management
Executive, vol. 2, no. 3 (1998), pp. 225–232.
23
Change tactics (1)
• Timing
– Use crisis as catalyst for change
– Windows of opportunity, e.g. post take-over, new
CEO
– Symbolic signalling of timeframes
– Choose time for promoting change to avoid
unnecessary fear and nervousness
24
Change tactics (2)
• Job losses and de-layering
– Tactical choice, e.g. remove blockers of change or
senior managers to give signal
– Avoid creeping job losses – reduce insecurity
– Demonstrate visible, responsible, caring approach to
those who lose their jobs
• Visible short-term wins
25
COUNTERMOVES TO CHANGE
• Divert resources
• Exploit inertia
• Keep goals vague and complex
• Encourage and exploit lack of organisational awareness
• ‘Great idea - let’s do it properly’
• Dissipate energies
• Reduce the change agent’s influence and credibility
• Keep a low profile
Exhibit 11.9a Political manoeuvres and change
doc_826380541.pdf
Strategic Management Managing Change Graham Manville
Strategic Management
Managing Change
Graham Manville
Senior Lecturer University of East
Anglia
1
2
Learning Outcomes
• Differences in scope of strategic change
• Effect of organisational context on design of
strategic change programmes
• Role of change agents and styles of managing
change
• Discuss the strategy for effective turnaround
• Levers for influencing strategic change
• Unintended consequences of change
programmes
Managing
Change
3
Managing Strategic Change
• Tendency towards organisational inertia and
resistance to change
• Top and middle managers (and below) are
responsible for strategic change
• Need to link the strategic and the operational
aspects of the organisation
• Managing change is context dependent
4
Key Elements in Managing Strategic Change
Exhibit 10.1
5
Diagnosing the Change Situation
• Why is strategic change needed?
• Basis of strategy
– Strategic purpose/strategic intent
– Bases of competitive advantage
• Specific possible directions and methods of
strategy development
• Changes in structures, processes, relationships,
resources and activities required
– To translate strategic thinking into action
6
Types of Change
Exhibit 10.2
Source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic
Change, Prentice Hall, 1999.
7
Change Kaleidoscope (Balogun and Hope-Hailey, 2002)
Exhibit 10.3
8
Diagnosing context and change problems
• Cultural Web
– Diagnostic tool to understand culture
– Covers hard and soft aspects
• Structures and control systems (hard)
• Symbols, routines, political processes (soft)
– Can be used to analyse changes needed for strategic success
• Map current and required culture
• Forcefield Analysis
– Identifies forces for and against change
– Provides an initial view of change problems that need to be tackled
9
Styles of Managing Change
Style Means/Context Benefits Problems When effective
Education/
Communic-
ation
Briefings
Internalisation
Trust
Overcome lack of
information
Time consuming
Unclear
Incremental
change/long
duration/horizontal
transforma-tional
change
Collabora-
tion/Parti-
cipation
Involve in developing
strategy
Ownership/
improved quality
Time/Within
current
paradigm
Inter-
vention
Change agent
coordinates/
controls
Guided but with
involvement
Perceived
manipulation
Incremental/
non-crisis
transformation
Direction Use authority to set
direction
Clarity and speed No accept-
ance/ill
conceived
Transforma-tional
change
Coercion/
Edict
Explicit use of power
through edict
May succeed in
crisis
Least success
unless crisis
Crisis/rapid
transform/auto-cratic
culture
10
Roles in Managing Change (1)
• Change Agent
– Individual or group that effects strategic change in
an organisation
• Strategic leadership
– The process of influencing an organisation in its
efforts towards achieving an aim or goal
– Charismatic leaders
– Instrumental or transactional leaders
11
Roles in Managing Change (2)
• Middle managers
– Facilitators or blockers?
– 5 roles in managing strategic change
• Implementation and control
• Translators of strategy
• Reinterpretation and adjustment of strategy
• Relevance bridge between top managers and lower
managers
• Advisors to senior management on blockages and
requirements
• Outsiders, e.g. new CEO, new management,
consultants, key influencers (stakeholders)
12
Machiavelli’s “The Prince”
There is nothing more difficult to handle, more
doubtful of success and more dangerous to
carry through than initiating change in a state's
constitution. The innovator makes enemies of all
those who prospered under the old order, and
only lukewarm support is forthcoming from
those who would prosper under the new.
Machiavelli (1513)
13
The Dynamics of Paradigm Change
Source: Adapted from p. Grinyer and J.-C. Spender, Turnaround: Managerial
recipes for strategic success, Associated Business Press, 1979, p. 203.
Exhibit 11.5
14
Levers for Managing Strategic Change
• Turnaround
– Managing rapid strategy reconstruction
• Challenging the taken for granted
• Changing organisational routines
• Symbolic processes
• Power and political processes
• Communicating and monitoring change
• Change tactics
15
Turnaround strategy (1)
• Emphasis on speed of change, rapid cost
reduction and/or revenue generation
• Prioritisation of things giving quick and
significant improvements
• Crisis stabilisation
• Management changes
• Gaining stakeholder support
16
Turnaround strategy (2)
• Clarifying the target market
• Re-focusing
• Financial restructuring
• Prioritisation of critical improvement areas
• Focus on getting the business right, not look for
new markets
17
Turnaround: Revenue Generation and Cost Reduction
Exhibit 10.7
18
Challenging the taken for granted
• Need to change the paradigm
– Get people to see the realities
• Mechanisms
– Evidence from strategic analysis
– Analysing what people take for granted
• Workshop sessions
• Bring into open
• Debate and challenge
– Scenario planning to overcome bias and cultural
assumptions
– Bringing managers face to face with reality
(customers)
19
Changing organisational routines
• Routines are the “way we do things around here”
– Can become core rigidities
– Difficult to adapt to new strategies
• Mechanisms
– Identify critical success factors and underlying competences
– Bring strategy down to operational levels
– Changes in routines make strategy meaningful
– Doing is better than thinking
– Education/communication less powerful than involving people
– Persistent extending and bending existing ways of doing things
20
Symbolic Processes
• Symbols are objects, events, acts or people which express more than their
intrinsic content
– Changing symbols helps reshape beliefs and expectations, as meaning is
apparent in day to day experiences
• Mechanisms
– Introducing new rituals/abolishing old ones
– Change systems and processes
– Change physical work environment
– Behaviour of change agents
• Language – metaphors to galvanise change
• Stories
• Problems
– Symbolic levers may be misinterpreted
21
Organisational Rituals and Culture Change
Types of ritual Role Examples
Rites of passage Promote social roles/
interaction
Induction/training programmes
Rites of enhancement Recognise effort
Motivate others
Awards ceremonies
Promotions
Rites of renewal Reassure about action
Focus on issues
Appoint consultants
Project team
Rites of integration Push shared commitment
Reassert norms
Christmas parties
Rites of conflict reduction Reduce conflict/
aggression
Negotiate commitment
Rites of degradation Acknowledge problems
Weaken political roles
Fire top execs
Demote/pass over
Rites of sense-making Share interpretations Rumours, surveys
Rites of challenge Throw down the gauntlet New CEO behaviour
Rites of counter- challenge Resist new ways Grumble, work to rule
22
Effective and Ineffective Communication of Change
Exhibit 10.10
Source: Adapted from R.H. Lengel and R.L. Daft, ‘The selection of
communication media as an executive skill’, Academy of Management
Executive, vol. 2, no. 3 (1998), pp. 225–232.
23
Change tactics (1)
• Timing
– Use crisis as catalyst for change
– Windows of opportunity, e.g. post take-over, new
CEO
– Symbolic signalling of timeframes
– Choose time for promoting change to avoid
unnecessary fear and nervousness
24
Change tactics (2)
• Job losses and de-layering
– Tactical choice, e.g. remove blockers of change or
senior managers to give signal
– Avoid creeping job losses – reduce insecurity
– Demonstrate visible, responsible, caring approach to
those who lose their jobs
• Visible short-term wins
25
COUNTERMOVES TO CHANGE
• Divert resources
• Exploit inertia
• Keep goals vague and complex
• Encourage and exploit lack of organisational awareness
• ‘Great idea - let’s do it properly’
• Dissipate energies
• Reduce the change agent’s influence and credibility
• Keep a low profile
Exhibit 11.9a Political manoeuvres and change
doc_826380541.pdf