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managing strategic change

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managing strategic change

  1. 1. IMPLEMENTING STRATEGIC CHANGE Strategic change is the movement of a company away from its present state toward some desired future state to increase its competitive advantage by strengthening company`s core competencies & building new to compete effectively
  2. 2. Types of strategic change 1. Reengineering – involves redesigning work, jobs, and processes for the purpose of improving quality, service, and speed – Examination & change in :-strategy. processes, technology, structure & culture. – Fundamental rethinking & radical redesign of business processes to enhance performance
  3. 3. 2. Restructuring - reducing the size of the firm in terms of number of employees, number of divisions or units, and number of hierarchical levels in the firm’s organizational structure - also called downsizing, rightsizing or delayering 3. Innovation - is the process by which organization use their skills and resources to create new technologies or goods and services so that they can change and better respond to the needs of their customers & it also opens the gate of success. ng
  4. 4. Determining the need for strategic change • to assess the extent of incremental or transformational change required, and • To identify the specific barriers to change -- Incremental change : view organization as a ‘social system’ which can and do change by mutually reinforcing and amplifying stimuli within their systems. --Transformation change: takes place by more substantial shifts resulting from an unfreezing of the paradigm through challenge, information building and experimentation.
  5. 5. BARRIERS TO CHANGE • BEHAVIORAL RESISTANCE : inertial resistance arises from existing perception, beleifs,work habits and conscious resistance are deliberate actions or inactions that is intended to delay or deny change • RESOURCE CONSTRAINTS : include financial resources, human resources ,etc • ENVIRONMENTAL FACTORS : include regulations, govt policies, lmport -export policy, environmental laws. • ORGANIZATIONAL OBSTACLES: includes corporate, divisional,functional and individual obstacles
  6. 6. • CORPORATE OBSTACLES : Existing structure & strategy of a company sometimes become obstacle to change. • DIVISIONAL OBSTACLES : in highly interrelated divisions change in strategy is difficult as a shift in one division operations affect other divisions • FUNCTIONAL OBSTACLES : Differences in functional orientations ,goals and different reaction to the changes management proposes. • INDIVIDUAL OBSTACLES : change involves uncertainity that breed insecurity & fear.
  7. 7. Styles of managing strategic Change • Education involves the explanation of the reasons and mass briefing of strategy • Participation in the change process is the involvement of those who will be affected by strategic change in the change agenda • Intervention is the coordination of and authority over processes of change by a change agent who delegates elements of the change process • Coercion is the imposition of change or forcefully imposing change.
  8. 8. Styles of managing strategic Change April 27, 2006 LIS580- Spring 2006 G.Dessler, 2003 8
  9. 9. TACTICS OF CHANGE MANAGEMENT 1. CHANGES IN ORGANIZATIONAL ROUTINES : Routines are prescribed way of doing things & guide people to do their jobs 2. SYMBOLIC ACTIVITY : change process maybe implied and by way of symbolic acts 3. BEHAVIOUR OF CHANGE AGENT`S : individual traits, approach & achievements of executives can signal powerfully the need of change 4. LANGUAGE USED BY CHANGE AGENTS : Change agents may consciously or unconsciously use metaphor to galvanize change.

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