DEVELOPMENT OF STRATEGY

CHAPTER 15 – MANAGING STRATEGIC CHANGE –

THE PEOPLE DYNAMIC
 Introduction
• conditions, and lukewarm defenders in those who may do wThe innovator of change has for
enemies all those who have done well under the old ell under the new…Michiavelli, 1532
• Leadership of change has never been easy.
• As soon as people are involved and may need to be persuaded of the need for change, we have a
problem.
• A leader of change must firstly be comfortable with their own ‘ego,’ but the problem comes when
they have to interact and work with the plethora of different ‘egos’ that surround them.
• Change relies on people, people also rely on change.
 Learning Outcomes

• Change involves people

• People are resistant to change
• Lecture 2
• Leadership Of Change
 Change Leadership

• Transformational leadership
• Leader will focus on the building of the strategic vision
• Creation of identity and empowerment
• Development of an appropriate culture
• Transactional leadership
• The leader is generally more concerned with making sure that the operational flow is
appropriate to enable the strategy to be achieved
• Motivation of followers by exchanging reward for performance

The leadership of strategic change would require a combination of both transformational

and transactional leadership
 Change Agents

• A person, or people, who are able or required to use their particular abilities and/or knowledge or
position to effect change within an organisation
• A catalyst to enable, speed up, or slow down, the strategic change required
• Has a significant role within the strategic change
• Able to remain entirely objective
• Wears a number of different hats and always able to bring clarity and objectivity to the strategic
change
 9 Team Roles by
Meredith Belbin (1981)

Roles required to ensure successful

strategic change within an organisation
 Learning Outcomes

• Change Leadership
• Change Agents
• Team Roles by Meredith Belbin (1981)
• Lecture 3
• Managing Strategic Change
 Communication
Technique

Developed by Joseph Luft and

Harry Ingham in 1955 (JOHARI)
By plotting the dimensions of the
known and unknown with that of
ourselves and others, it helps us
to identify, consider and challenge
where the disconnect happens in
our communication with others.
 Methods For Managing Change

• Education – process of facilitating learning

• Participation – participating in different stages of the strategic change
• Facilitation – specific responsibility to facilitate differing communication processes
• Support – garner support from all key people
• Ownership – culture of “inclusion”
• Negotiation – the benefits that can be gained by people participating fully in the perceived
changed environment
• Force – sometimes it may be necessary to use force
• Manipulation and coercion – attempting to get people to do something by not giving them all the
facts
 Learning Outcomes

• Communication technique – Johari Window

• Methods for managing change
• Lecture 4
• Approaches To Managing Change
Mintzberg’s Change Cube (2008)
Beer Et Al (1990) 6 Steps To Effective Change
John Kotter’s 8 Stages Of Change
Pettigrew and Whipp (1991) 5 Factors Theory
 Learning Outcomes

• Mintzberg’s Change Cube

• Beer et. al.’s 6 steps
• Kotter’s 8 stages
• Pettigrew & Whipp’s five factors theory
• Lecture 5
• Managing Resistance To Change
 Types Of Resistance

• Explicit and overt resistance

• The easiest type of resistance to deal with
• The problem will be clear, it will be possible to debate the rights and wrongs of the situation
and a solution can be found
• Implicit, subtle and deferred resistance
• Not always easy to identify and may take time to surface
• Underlying issues which ultimately may cause longer term organisational damage
10 basic reasons for
resistance to change
by Kanter et. al.
 Learning Outcomes

• Types of resistance
• Kubler Ross 5 stages of grief
• Kanter’s 10 basic reasons for resistance to change
• Lecture 6
• Managing Strategic Change Effectively
 Developing A Change Programme

• Both process and people are essential to the successful development of strategy
• A strategic change programme needs to incorporate all dimensions of process and people
• Pertinent to understand the breadth and depth of the challenges offered by process and people
 Keeping A Finger On The Pulse

• Accountability for managing the delivery of strategic change

• To stimulate, monitor, manage, challenge and control the successful development of strategy
 Learning Outcomes

• Change programme
• Control measures