Strategic Change Management
Strategic Change Management
AC1.1 Discuss models of strategic change
Types of Change
Evolution: Transformational change implemented gradually through interrelated initiatives; likely to be proactive change undertaken in anticipation of the need for future change
Adaptation: Change undertaken to realign the way in which the organisation operates, implemented in a series of steps
Revolution: Transformational change that occurs via simultaneous initiatives on many fronts; more likely to be forced and reactive because of the changing competitive conditions that the organisation is facing
Reconstruction: Change undertaken to realign the way in which the organization operates, with many initiatives implemented simultaneously; often forced and reactive because of a changing competitive context.
AC1.2 Evaluate the relevance of models of strategic change to organisations in the current economy.
Kotter’s model suggests that change is a gradual process and it should be dealt like wise. The change starts itself starts when and urgency in the organisation is created either to fulfill new requirement and need to resolve current issues. This leads to formation of vision and clear objectives which defines the change to be taken forward. In current economic scenario, where the industry is in very competitive environment and the economic recession has further tightened its position, it becomes necessary for the organisation to win the confidence of the staff and employees and keep them involved and engaged with the proposed strategic change. Any failure to change strategy, will further dampen the overall business growth of the organisation and this could occur if the organisation does not consider to take the change and follow a standard approach of handling change at an organisational level. To resolve this scenario, kotter’s 8 step change model has a great relevance to it.
There should be a proper communication between the key stakeholders of the organisation on the need of taking change. When change occurs at an organisational level, then every member of the organisation is directly or indirectly gets affected and henceforth to avoid any sort of hurdle a change model should be used at organisation level, to prepare and plan to resolve the unwarranted situation. Similarly, the change model of team has its relevance because, the change in organisation is initiated by a team and it’s the responsibility of the team to take the change forward and bring it to an organisational level. Keeping this in view, the tuckman’s model of learning styles becomes important as it discuss the the stages of team development and henceforth, by focusing at these stages, it becomes easier to prepare for the change. The stages of Forming, Norming, Storming and Performing defines the four stages and this in turn helps to identify where and at which stage what policy and strategy to be considered.
Team consists of individuals and every team member is an individual first and then a part of team and therefore, it becomes important to consider how to involve individuals first in the change. Of individuals are not ready for the change then a strong team can never be formed and if the team fails then the change at organisational level can never be success. And this gives high importance to consider the individual change model. By evaluating and studying the current economic scenario, it becomes necessary for every organisation to consider the change models of Organisation, team and individual and then to form a strategy. No change can become success if these approaches to managing change at various level is not considered. AC1.3 Assess the value of using strategic intervention techniques in organizations.
The strategic intervention techniques used in organisation, helps it find out its organisational strength, which becomes helpful while designing the change process. Strategic intervention techniques helps the organisation to involve every stakeholder of the organisation and prepare them for the planned change. By adopting these techniques, the organisation would be able to achieve successful change process. The commonly used Intervention Techniques in organisations are, (Oxford Journals, 2011): * Team Development: Designing team development programmes, the organisation is able to help the team to develop maturity and effectiveness. The objectives of team developments are setting goals, prioritising and examining the relationship among the people doing the work.
* Survey Feedback: Feedbacks helps to analyse the current situation of the change process. The informations are gathered using personal interviews or survey questionnaires. * Inter Group Problem solving: To avoid conflicts among the groups, regular meetings and discussions should happen between the groups so that problems should be resolved and the members are able to work collectively in achieving the set objectives of the change. * Role Playing: It is one of the best contingency plan, where group is prepared to work even in the absence of the key people or the team mates. It is widely defined as way of behaving.
Task – 2
AC2.1 Examine the need for strategic change in an organization.
Invensys Control India is currently having operations in three different geographical locations of India and they all work on IT systems which are standalone and there is no connection between these units. The companies is growing and has to expand its network across India and to do that it needs an IT system which can link all these locations and there is only single system, which can help the management to track the business and the operations of various units. Because of the current IT system there is lots of data duplicity and it becomes tedious for the finance department to track the daily operations of the company. By adopting new IT system, the company will also be able to improve its daily operations. The new IT system will not only improve the work efficiency of the staff of the organisation but overall productivity and efficiency, (Invensys Controls India, 2011).
AC2.2 Assess the factors that are driving the need for strategic change in an Organization.
In the current business environment there are latest IT Systems which are available at reasonable prices. The available IT systems have improved the businesses of various organisations. The IT companies are offering wide range of other services along with their IT product, which can be an added advantage for the company. Invensys Control, is a big MNC and they have IT compliance issues, and so the company needs to phase out its current IT system. The new products available in the market are offering wide range of functionalities which can meet the growing demands of the company. The new IT system will be able to solve the current issues the company is facing and will provide a platform for the company, where there is single system which will be capable to meet the demand and requirement of whole organisation.
As if now, since company is running on the standalone and old IT system, so company has to hire freelance consultants to resolve the arising issues. This has escalated the expense of maintaining the current system. Moreover, the competitors of Invensys Control are using latest IT system which has helped those organisations to improve their business operations and decisions, (Invensys Controls India, 2011). Above mentioned are the major reasons, which has prompted the higher management of the company to look and decide for a latest IT system, which caters the current and future need of the business. AC2.3 Assess the resource implications of the organisation not responding to strategic change.
There will be high implications on the company’s business and operations, if the resources of Invensys Controls do not respond to the planned change. The resources involved in this strategic change are the staff, the IT infrastructure, the department heads and the project team. The implications of not responding to the change will be as follows: * Lack of IT infrastructure will cause difficulty in completing the implementation of new IT system ahead and may ultimately lead to failure of whole project, if not dealt on time. * If the department heads are not giving full cooperation and participation, then the project time can increase and so the IT team will not be able to meet its time deadlines and which in turn will not only impact the business but will exceed the estimated cost of the project of implementing new IT system.
* If the project team is not well motivated and enthusiastic of the project then there will be lack of dedication, and this will have impact on the quality and the planning of the project completion. If the IT system has not been implemented properly, then it will not serve the whole purpose of the project and this may cause the scrap of whole project. * If the staff is not given proper training and motivation on the new IT system, then the staff will not be able to fully utilize the benefit of using the latest IT system and it may even make the work more complicated for them and can also cause various errors in the system as they will not be trained enough to work properly on the system. * The organisation as a whole will have to bear serious issues and consequences, if the project does not go well, as it will not only be a financial loss to the company, but will impact the future growth process and the morale of whole organisation. * It will also impact the business operations of the organisation, as the morale and motivation of the staff will be impacted heavily
Task – 3
AC3.1 Develop systems to involve stakeholders in the planning of change.
Stakeholders should be taken in confidence and should be convinced properly to make the change successful at the organisational level. The Stake holders of the planned strategic change in Invensys Control are:
* Managing Director
* Finance head and team
* IT Director and team
* Purchase Head and team
* Sales Head and team
* Supply chain and logistics head and team
* Human resource director and team
* Admin head and team
The activities which are planned to be undertaken to convince and involve the above stake holders in planning the change are, (KnowHow Non Profit, 2011): * Communication Strategy: By forming an effective communication strategy to involve and educate the stakeholders, half the job of completing the Change process is done. Some of the best methods adopted in the communication strategy includes: Meetings, Discussions, E-Mails, Face to face interaction, Presentations, Interview, Voting and Questionnaire. By following these activities, the stakeholders will feel more engaged and attached with the change process and they will give their inputs and show motivation and enthusiasm in taking part in the change. * Sending formal invitation to the key stakeholders, regarding the meeting and presentation on the need for bringing the strategic change in the organisation.
* Doing formal presentation to the key stakeholders, explain them the needs and benefits for adopting the change in the organisation * Minutes of the meeting should be prepared and mailed to the key stakeholders so that feedbacks could be asked from them on same. * After receiving the feedbacks, a strategy should be planned to resolve the key issues raised by the stakeholder and then they need to be educated and convinced on the need for change. * A change team should be selected involving representation from different departments and they should have key influence. This team would be responsible for initiating the change.
AC3.2 Develop a change management strategy with stakeholders.
To any strategic decision there will always be some who will be enthusiastic about the change and will be ready to adopt, while there will be some who will be reluctant at the first moment and then there will be people who will be putting resistance to the change and it could because of individual behavior and emotional responses or could be other factor due to which they will be resistant to change.
Source: Entrepreneurs Friend, 2011
Considering the above defined model on the behavior of the stakeholders and people on the response of the change, a planned strategy need to be discussed and decided upon. A well common standard theory of management used widely in the business industry has been used to involve the stakeholders in the change. It is as follows, (KnowHow NonProfit, 2011): * Leverage Strategies: This strategy is basically defined and planned for those who are among the early adopters and are ready to embrace the change. Their support and influence has a significant value, as they develop their cooperation and support to influence the mindset of the reluctant on adopting the change.
* Engagement Strategies: This strategy suggest to focus and concentrate on those key stakeholders and people who have significant influence and are part of reluctant majority. The strategy should be adopted to convert those influencers into adopters and then to utilize and leverage their influence on those who are with less commitment interest and commitments. * Containment Strategies: This strategy basically focuses on those people who are resistant laggard and are not ready to adapt the change but since they are the one who has high experience, skills and competence and so they are the one who still contribute to the change process.
* Outplacement Strategies: For this strategy, the virulent and the high influential resistant laggards are the one who are focused. These people are provided with an opportunity to accept and show their commitment for the change process, however, if they still don’t agree to adopt the change and are reluctant to accept then they are dealt with unambiguous consequences.
AC3.3 Evaluate the systems used to involve stakeholders in the planning of change.
Implementing a new IT system, will be a strategic decision involving change process at the organisational level. It will change the overall of work process and operations of the organisation. Each and every stakeholder of the organisation will be directly or indirectly related and impacted with this change. An henceforth, it becomes important for the organisation to plan out a strategy which involves the stakeholders in the planning of the change. The change process itself can initiate only with the help of the stakeholders. If the stakeholders are against the change then no change process can become success. As discussed above, the stakeholders of the organisation should be taken into confidence, by keeping them well informed and educated about the requirement of bringing the change.
They should be involved in all the major decision making process. The feedbacks and the reviews given by the stakeholders should be considered and this all can be achieved by a proper communication strategy. The stakeholders involved should be well informed about the various stages of the change process and the progress being made. They should always be involved and their feedbacks should be taken in every major decision involving the change. The stakeholders will feel more confident, engaged and motivated when they are being heard and are given importance and this in turn will make the change process smoother. The stakeholders should always be provided with accurate information on the impact and effects of the change. They should never be dealt in a manner where they feel neglected.
AC3.4 Create a strategy for managing resistance to change.
Resistance to change is part of change process. It is something which can have both positive as well negative impacts on the organisation. Kotter & Schlesinger (1979) explained the importance of strategy to handle the resistance in the organisation. As per their theory, the principles are: * Education and Communication: By properly educating and communicating with the concerned stake holders about the change, their misconceptions and confusions can be sorted out without which they are full of questions and worries. People tend to accept the change once they become aware of the change.
* Participation and involvement: A strategy need to be devised to facilitate the participation and the involvement of the stakeholders in the change process. This gives them motivation and sense of involvement makes them feel part of the change to which they don’t try to become a resistance. * Negotiation and agreement: When an organisation goes for a strategic change, then lots of things are at stake. And it becomes equally important to move towards change by forming an agreement among all the members and the management through proper negotiations. * Facilitation and support: By facilitating and supporting the people who are initiating and managing the change process, the motivation level of people are increased and boosts their confidence which in turn becomes example for others as well to be a part of change and taking it forward.
Task – 4
AC4.1 Develop appropriate models for change.
Models of Strategic Change
The three standard models of Individual, Team and Organisational strategic change has been discussed below. Individual Change – Kolb’s Model
During 1984, Kolb suggested learning styles model. The Kolb’s model of learning styles consists of four different learning styles and these are further based on four different stage of learning cycles also termed as learning cycles, (Business Balls, 2011). The four learning styles of Kolb’s are described as given below, (Business Balls, 2011): * Diverging (Feeling and Watching): Individuals with diverging styles are very sensitive and they are the one who prefer to sit and watch rather than doing. These individuals have broad cultural interests and they are imaginative and emotional. Moreover, they are open minded people who enjoy working in groups, (Business Balls, 2011). * Assimilating (Watching and Thinking): Individuals, who has logical and concise approach and one who gives more importance and value to the ideas and concepts than the people, falls in this learning style. These are the ones who excel in understanding wide range of information and organising it in a clear logical format, (Business Balls, 2011). Source: Business Balls, 2011
* Converging (Doing and Thinking): People who are more interested in technical tasks than in people and interpersonal aspects are the one who are defined in this learning style. These people resolve the issues using their past experience and learning. Moreover, people with this learning style like to experiment new ideas to stimulate and to work with practical applications, (Business Balls, 2011). * Accommodating (Doing and Feeling): Individuals who follow this learning style does not work on logical analysis but they believe on their own intuitions. These people generally rely on others information and then they carry out their own analysis. These individuals tend to work in team and they actively try out new methods to achieve the objectives and goals, (Business Balls, 2011).
Organisational Change Model – Kotter’s 8 Step
John P. Kotter, a professor at Harvard Business School suggested eight steps of change model in an organisation. These are, (Mindtools, 2011): * Create Urgency: This step is termed as to spark the initial motivation to get the change moving. This stage occurs by identifying and analysing the potential threats and by developing the future scenario Mindtools, 2011). * Form a Powerful Coalition: It is important to convince and form coalition of all the influential people, the team and the management involved to lead them Mindtools, 2011). * Create a Vision for Change: A clear vision helps the staff and the team to get the clear idea and it fills sense of motivation as it becomes easier to understand the basic objective of the change and what the organisation wish to achieve Mindtools, 2011).
* Communicate the Vision: The stakeholders and the key people of the organisation, which includes from higher management to the lower staff should be communicated properly about the vision for the change, and this step helps to gather momentum for the change Mindtools, 2011). * Remove Obstacles: A strategy need to be defined which could handle any eventuality in case it is affecting the change. The barriers to the change should be dealt with and be removed on time. By removing the obstacles, people will be empowered to complete the vision of change Mindtools, 2011). * Create Short Term Wins: Targets for small time frame should be created and planned and completing this target and meeting the required goal will act as a motivating factor the staff involved and thus will be keeping the momentum for the required change Mindtools, 2011)
* Build on the Change: Kotter explained that majority of the change doesn’t meet success as they are declared complete too early. On every successful completion of the change, a new policy and strategy should be formed so that the momentum of change is maintained and gain achieved on completion of one stage should be utilized for future aspects Mindtools, 2011). * Anchor the Changes in the Corporate Culture: The management should take efforts to make sure that the change is prevalent in every part and aspect of the organisation. The change should be there in organisational culture and it should be often talked and discussed by the management and the leaders in the organisation to make change more common and dominant in the corporate culture Mindtools, 2011). Source: Dudley Consulting Inc,
Team Change – Tuckman’s Model
Bruce Tuckman suggested four stage model of team change in 1965. The four stages are, (Businessballs, 2011): * Forming: This stage is defined as one, where the leader is responsible for every change. The individual roles and responsibilities are not clear and the team members are dependent on the leader for the direction, so this is the stage when the team gathers and the roles and responsibilities are being decided individually(Businessballs, 2011). * Storming: This is the stage where brainstorming takes place. The team members sit together, and they discuss on how the change needs to be done. The planning of the future strategy, setting the process and the timelines of the project is done in this phase. The specifications and the project plan are defined in this stage itself. This stage is also very important as this enables the common understanding of purpose and roles to be achieved(Businessballs, 2011). Source: Infed, 2011
* Norming: In this stage, the main decisions are being taken by the team and the team members agree to the decisions. The final layout of the change is being formed and accepted. In this stage, the team members start understanding and supporting each other and a consensus is formed among the team, (Businessballs, 2011). * Performing: This is termed as the final stage of the team development, in which the team finally starts working on the plan or the decisions being taken, In this stage the output and the results starts coming. The team members are very clear about the vision and objective of the change and they collectively work towards achieving the goal, (Businessballs, 2011).
AC4.2 Plan to implement a model for change.
The implementation plan becomes the stepping stone for any project and it determines the success and failure of the project. Therefore, implementation plan achieves high importance and should be planned and decided by considering all the business factors which includes internal and external and all the stakeholders should be taken in confidence. The widely accepted implementation plan for strategic change being suggested by Johnson, Scholes and Whittington has been considered. The steps are given below:
* Gaining support of the key stakeholders, who include key decision makers and the facilitators. They should be provided with enough relevant information on the needs and benefits of adopting the planned change. * A full detailed plan should be prepared with proper start and end date and should include and define the various stages of the change process with the time frame. This detailed implementation plan should be agreed by all the department heads and the decision makers. * A strategy should be planned to obtain the commitment of the staff to make this strategic change feasible and achievable * The ground level staff and the users who will be using the new IT system should be brought in, in the project plan and should be asked for their feedback and reviews
* The staff should be given proper recognisition and reward on the success of the project * The staff should be given development and training programmes on the new skills required which will help in making the implementation plan successful * Proper change control method and performance monitoring system should be put into place * The changes happening at various stages should be analysed and evaluated well * The areas which are causing problem and are creating hurdles in the project plan should be studied and be removed * The whole implementation plan should be monitored and reviewed on weekly, monthly and quarterly basis * Governance model need to be defined to handle the escalation and the key decision processes
AC4.3 Develop appropriate measures to monitor progress.
Monitoring the progress becomes important as it helps to find out and analyse the current status of the change happening and the performance. It helps to find out, what steps need to taken to improve the performance so as to achieve the objective successfully. To monitor the performance, the management should follow given methods, (Teachmebussiness, 2011): * Setting SMART objectives for every individual team which should be reviewed on monthly basis. * The review policy needs to be adopted at both team and individual level on end of course term. * Setting Benchmark for individual teams and then reviewing the performance against benchmark
* Setting KPIs for every team based on the work task they are responsible for. Quantity based performance system should be adopted, like number of students enrolled, number of student queries processed, number of students re-enrolling for other course, etc. * Quantified standards should be set for every individual teams, and the comparisons of the performance should be made with standards. * 360 Degree Feedback is considered to be one of the best performance measuring instrument which helps to analyse the performance of team with every individual aspect which is directly or indirectly related.
This report refers to the strategic change management in the case of Invensys control India Pvt Ltd. It identifies much useful information attempts to internally change towards to the environmental change. However, it is a primary research. This report helped to identify the need to involve the stakeholders and various strategies to engage them in the change process, which is of utmost importance to make change process a success at organisational level. To implement strategic change management, it may need a further investigation in order to achieve the effectiveness of business development from the implementation.