STRATEGIC

MANAGEMENT
By
Muhammad Waqas Chughtai
 Part D: Chapter - 14
Implementing Change
(Managing Strategic Change)

©Prepared by Muhammad Waqas Chughtai

In this chapter you will learn:
▪ Managing Strategic Change
✓ Strategic Change
✓ Types of Strategic Change
✓ Change Kaleidoscope Model
✓ Grainer Growth Model
✓ Cultural Web Model
✓ Overcoming Resistance to Change
✓ Strategic Leadership

©Prepared by Muhammad Waqas Chughtai

What is Strategic Change?
It often involves radical transitions within an organization
that encompass:
◦ Strategy
◦ Structure
◦ System
◦ Processes and
◦ Culture

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1. Classifying Change

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1.1 Types of Strategic Change
Classification of Change
Change can be classified by the “extent of the change required”, and the “speed” with which
the change is to be achieved.
◦ How big of a change do you want?
◦ How fast do you want to make this change?
Imagine you want to make a change,
like rearranging your room. Now, there are two things to think about:
◦ Extent of Change: How big of a change do you want?
Julia Balogun
◦ Small change: Maybe just move a few things around.
◦ Big change: Completely redesign the whole room.
◦ Speed: How fast do you want to make this change? Veronica Hope Hailey

◦ Slow: Take your time, maybe make small adjustments over a few days.
◦ Fast: Get it done quickly, maybe in a day or even a few hours.
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 Cont. Types of Strategic Change
Extent of the Change

◦ Transformation:
➢ What it means: Making a big, fundamental change to how a group of people (like in a company) thinks and works.
➢ Example: Imagine your institute decides to completely change how students learn, not just small adjustments but a
whole new way of teaching and studying.
◦ Realignment:
➢ What it means: Making small changes, but not really questioning or changing the basic ideas and beliefs of the group.
➢ Example: Your cricket team decides to change some strategies and players, but they're not changing the way they
view the game or their main goals.
◦ Incremental Change:
➢ What it means: Making slow speed changes over a long time that, when you look back, add up to a big, fundamental
Speed

difference.
➢ Example: Like a tree growing slowly over many years – each year it gets a bit taller, and eventually, it's a big tree.
◦ Big Bang Change:
➢ What it means: Forcing a high speed, quick change by doing many things at once, often in a short time.
➢ Example: If your family suddenly decides to move to a new city, change jobs, and enroll in new schools all in the same
month – that's a Big Bang change.

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Incremental Evolution: Gradually making big
changes over time, step by step.
Example: Like a caterpillar
turning into a butterfly – it
doesn't happen all at once, but in
a series of connected steps.
Speed of
Change Revolution: Making a big change all at the same
time in a quick manner. This usually happens
because the organization is reacting to some
urgent and big challenges.
Example: In response to a sudden and significant
drop in sales due to a new competitor entering
the market, the retail store decides to make a Big
Bang Revolution. They quickly rebrand, redesign
their stores, update their product line, and
Big Bang launch a comprehensive marketing campaign all
at once.
Transformation
Extent of Change
Adaptation: Gradually changing the way an
organization works, but doing it in slow speed
(step by step). It's like adjusting w things are
done little by little.
Example: A retail store that has been operating
in the same way for many years decides to
adapt to changing consumer preferences.
Instead of a sudden overhaul, they gradually
introduce online sales, loyalty programs, and
improve customer service over several months.
Reconstruction: Making small changes in
almost all areas of the organization but all at
once
Example: Imagine a retail chain facing
financial difficulties because of economic
changes. To survive, they decide on a
reconstruction strategy. This involves
simultaneously closing unprofitable stores,
renegotiating supplier contracts, and
introducing new technologies to streamline
operations.
Realignment
2. Change Kaleidoscope Model

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2.1 Change Kaleidoscope Model
Change Kaleidoscope was developed by Hope Hailey & Julia
Balogun (2002) in order to consider different factors and
implementation options that need consideration during change.

Julia Balogun

Veronica Hope Hailey

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Cont. Change Kaleidoscope Model
Outer Ring: Organization Contextual Features

• How much time is needed? Is the organization is in crisis

1. Time or is it concerned with longer-term strategic
development?

• What degree of change is needed? Does the change

2. Scope affect the whole organization or only part of it?

• What organizational assets, characteristics and practices

3. Preservation need to be maintained and protected during change?

• Are the different staff/professional groups and divisions

4. Diversity within the organization relatively homogenous or more
diverse in terms of values, norms and attitudes?

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Cont. Change Kaleidoscope Model
Outer Ring: Organization Contextual Features

• What is the level of organizational, managerial and personal

5. Capability capability to implement change? Is there a need to improve
this capability before the change process can be started?

• How much resource can organization invest in the proposed

6. Capacity change in terms of cash, people and time?

• How ready for change are the employees within the

7. Readiness organization? Are they both aware of the need for change
and motivated to deliver changes?

• Where is the power vested within the organization? Are

8. Power they both aware of the need for change and motivated to
deliver changes?

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Cont. Change Kaleidoscope Model
Inner Ring: Design Choices
◦ Change Path – The types of changes can be categorized into 4 types of change
base on nature and result of change which are Evolution, Adaptation, Revolution,
and Reconstruction.
◦ Change Start Point – Change start point indicate where the change is initiated
which can be divided as following;
◦ Top-down change – Change is initiated from top management.
◦ Bottom-up change – Change is initiated from bottom line.
◦ Pockets of good practice – Change is initiated by taking advantage of good
practicing in individual part of organization as model for remaining parts.
◦ Pilot sites – Change is initially implementing in only one individual part of
organization.
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Cont. Change Kaleidoscope Model
Inner Ring: Design Choices
◦ Change Style – The way to manage process of change can be divided into 5 styles
as following;
◦ Education and Delegation – Small group briefing and discussing of change
applied to gain change support from employee.
◦ Collaboration – High employee involvement on decision of what and how to
change.
◦ Participation – Limited employee involvement on decision of how to delivery
desired change.
◦ Direction – Directing and controlling of change from change leader.
◦ Coercion – Imposing of change with authority.

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Cont. Change Kaleidoscope Model
Inner Ring: Design Choices
◦ Change Target:
◦ Change target involves specifying the areas or components of the organization that
will be the primary focus of the change initiative. It could be processes, structures,
technologies, or cultural aspects.
◦ Change Levers:
◦ Change levers are the mechanisms or tools that will be used to drive and facilitate the
change. This could include communication strategies, training programs, incentives,
or other interventions.
◦ Change Roles:
◦ Change roles define the specific responsibilities and roles of individuals involved in
the change process. This includes change agents, leaders, and other stakeholders.

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Example: A Traditional Manufacturing Company
◦ Outer Ring: Organization Contextual Features
◦ Time:
◦ Example: The manufacturing company faces increased competition, and there's a
need to adapt to market changes quickly. Time is a critical factor, and changes
need to be implemented within a relatively short timeframe.
◦ Scope:
◦ Example: The company decides to implement a comprehensive change by
adopting new technology, restructuring its production processes, and introducing
a more customer-centric approach. The change is extensive in scope.
◦ Preservation:
◦ Example: While significant changes are planned, the company intends to preserve
its core values and commitment to quality. The organizational culture of
dedication to craftsmanship is retained.
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◦ Diversity:
◦ Example: The workforce consists of employees with diverse skills and
backgrounds. The change initiative acknowledges this diversity and aims to
leverage the different perspectives to drive innovation.
◦ Capability:
◦ Example: The company assesses its current technological infrastructure and
workforce skills. It identifies areas where it needs to enhance capabilities, such as
investing in employee training programs and upgrading technology.
◦ Capacity:
◦ Example: The company evaluates its financial resources, production capacity, and
workforce size to ensure it has the necessary resources to implement the changes
effectively. Budgets are allocated for technology upgrades and training.

©Prepared by Muhammad Waqas Chughtai

◦ Readiness:
◦ Example: The leadership conducts surveys and interviews to gauge employee
attitudes and readiness for change. Employee engagement sessions are organized
to address concerns and build enthusiasm for the upcoming changes.
◦ Power:
◦ Example: Power dynamics are considered in decision-making. Key stakeholders,
such as senior management and influential department heads, are identified.
Strategies are developed to manage potential resistance from powerful
individuals.

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◦ Inner Ring: Design Choices
◦ Change Path:
◦ Example: The change is planned in stages. Initially, there's a focus on upgrading
technology and providing training to employees. Subsequent stages involve
restructuring production processes and implementing changes in customer
engagement strategies.
◦ Change Start Point:
◦ Example: The change starts at the top leadership level. The CEO and executive
team communicate the vision for change, setting the tone for the entire
organization.
◦ Change Style:
◦ Example: The change is approached collaboratively. Regular town hall meetings
and feedback sessions are organized to involve employees in decision-making and
to ensure their voices are heard.
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◦ Change Target:
◦ Example: The primary focus of the change is on production processes, technology
adoption, and customer service. These areas are identified as critical for the
company's competitiveness in the market.
◦ Change Levers:
◦ Example: Communication strategies are employed to keep employees informed
about the changes. Training programs are implemented to enhance workforce
skills. Incentives are introduced to encourage employees to embrace new
technologies and processes.
◦ Change Roles:
◦ Example: Change agents, including a change management team, are identified.
Leaders at various levels are assigned specific roles in communicating,
implementing, and championing the changes. Employees are encouraged to take
on active roles in the change process.

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3. Greiner’s Growth Model

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3.1 Greiner’s Growth Model
Larry E. Greiner is an expert on strategic change,
organization growth and management consulting.

Larry E. Greiner

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Cont. Greiner’s Growth Model
◦ Greiner's Growth Model is a
framework that describes the
stages that organizations go
through as they grow and evolve.
The model suggests that
organizations experience periods
of stable growth followed by crises
that lead to a need for change.
◦ The model consists of six phases:

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 Cont. Greiner’s Growth Model
Phase 1 - Creativity:
◦ In this phase, the organization is typically small, and the emphasis Phase 1
is on innovation and creativity. The founders are heavily involved Large Creativity
in decision-making, and communication is informal.
◦ Example: Imagine two friends (Jawad & Ahsan) who are
passionate about technology decide to start a small software

Size of Org.
development company in their garage. They work closely
together, make decisions informally, and focus on creating
innovative software solutions.
◦ Crisis: Leadership Crisis
◦ Description: The crisis in this phase revolves around the
leadership style of the founders. As the organization grows,
relying solely on the entrepreneurial and informal leadership of
the founders becomes unsustainable. There is a need for more
formal leadership and direction.
◦ Example: The founders' leadership style, based on passion and Small Crises of Leadership
innovation, becomes a crisis. As the company grows, decision-
making becomes more complex, and the informal approach to
leadership may lead to confusion. There is a need for more
Young Maturity
structured and formal leadership to provide clear direction. Age of Org.
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 Cont. Greiner’s Growth Model
Phase 2- Direction:
◦ As the organization grows, a need for more formal structures and Phase 1 Phase2
processes emerges. This phase is characterized by the establishment of Large Creativity Direction
clear direction and leadership. Rules and procedures are put in place to
manage the growing complexity.
◦ Example: As the software company gains clients and expands, the
founders realize the need for more structure. They appoint a CEO to

Size of Org.
provide clear direction and establish specific roles within the
organization. Departments such as development, marketing, and sales
are created, and formal procedures are implemented.
◦ Crisis: Autonomy Crisis
◦ Description: The crisis in this phase revolves around the leadership
style of the founders. As the organization grows, relying solely on the
entrepreneurial and informal leadership of the founders becomes
unsustainable. There is a need for more formal leadership and Crises of Autonomy
direction.
◦ Example: The crisis emerges as the organization faces an Autonomy
Crisis. Employees feel constrained by the newly established rules and
Small Crises of Leadership

procedures. Innovation and creativity may be stifled as the

organization becomes more structured. The crisis requires finding a
balance between maintaining control and allowing for individual Young Maturity
autonomy. Age of Org.
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 Cont. Greiner’s Growth Model
Phase 3- Delegation:
◦ Continued growth leads to the delegation of tasks and responsibilities. Phase 1 Phase2 Phase 3
Middle managers become more prominent, and the organization Large Creativity Direction Delegation
becomes more departmentalized. This phase is marked by increased
coordination and control mechanisms.
◦ Example: With continued growth, the workload becomes too much for
the founders to handle on their own. They hire middle managers to

Size of Org.
oversee different departments. Decision-making is delegated to these
managers, and the organization becomes more hierarchical. Specialized
teams focus on specific functions, such as coding or marketing.
◦ Crisis: Control Crisis
◦ Delegating authority to middle managers and department heads leads Crises of Control
to a crisis of control. The organization may face issues of coordination,
and conflicts between departments may arise. There is a need for
better coordination mechanisms to maintain control over the growing Crises of Autonomy
organization.
◦ Example: The crisis is a Control Crisis. Delegating authority to middle
managers and department heads results in coordination challenges.
Small Crises of Leadership

Different departments may have conflicting goals, and the organization

struggles to maintain centralized control. The crisis involves finding
better ways to coordinate and control the growing organization. Young Maturity
Age of Org.
©Prepared by Muhammad Waqas Chughtai
 Cont. Greiner’s Growth Model
Phase 4 - Coordination:
◦ Further growth can lead to problems of coordination and control, Phase 1 Phase2 Phase 3 Phase 4
resulting in a crisis. The organization responds by adopting new Large Creativity Direction Delegation Coordination

integrative mechanisms such as cross-functional teams or matrix

structures. This phase is about finding better ways to coordinate and
manage the larger organization.
◦ Example: The company experiences a crisis as coordination becomes

Size of Org.
challenging. Departments may start working in silos, and
communication issues arise. To address this, the organization
introduces cross-functional teams, project managers, or other
Crises of Red Tape
integrative mechanisms to improve coordination and control.
◦ Crisis: Red Tape Crisis
Crises of Control
◦ The crisis in this phase is related to the increasing complexity of
coordination mechanisms. The organization may become bogged down
by bureaucracy, and decision-making can become slow and inefficient. Crises of Autonomy
A crisis emerges as the need for more flexible and streamlined
coordination becomes apparent.
◦ Example: The Red Tape Crisis emerges as the organization introduces
Small Crises of Leadership

more coordination mechanisms. Bureaucracy increases, and decision-

making slows down. The organization faces challenges in streamlining
processes to reduce red tape while still effectively coordinating Young Maturity
activities. Age of Org.
©Prepared by Muhammad Waqas Chughtai
 Cont. Greiner’s Growth Model
Phase 5 - Collaboration:
◦ In the phase, collaboration becomes essential. The organization Phase 1 Phase2 Phase 3 Phase 4 Phase 5
emphasizes teamwork, partnerships, and external collaborations to Large Creativity Direction Delegation Coordination Collaboration
sustain growth. It may involve mergers, alliances, or other forms of
external relationships to meet the challenges of a mature organization.
◦ Example: In response to external market pressures and to sustain growth,
the company seeks collaboration opportunities. It may form strategic

Size of Org.
partnerships with other tech companies, engage in mergers and Crises of Growth
acquisitions, or establish alliances to access new markets. The focus shifts
toward collaboration, teamwork, and external relationships.
Crises of Red Tape
◦ Crisis: Growth Crisis
◦ The crisis in this phase is related to the increasing complexity of
coordination mechanisms. The organization may become bogged down by Crises of Control
bureaucracy, and decision-making can become slow and inefficient. A
crisis emerges as the need for more flexible and streamlined coordination
becomes apparent. Crises of Autonomy

◦ Example: The Growth Crisis becomes evident as the organization seeks

external collaborations and growth opportunities. Mergers or alliances Small Crises of Leadership
may introduce complexities, such as cultural differences or challenges in
aligning strategies. The crisis involves managing the complexities
associated with a mature and expanded organization to sustain growth.
Young Maturity
Age of Org.
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 Cont. Greiner’s Growth Model
Phase 6 - Alliance:
◦ The final stage of growth is a new one introduced more Large
Phase 1 Phase2 Phase 3 Phase 4 Phase 5 Phase 6
Creativity Direction Delegation Coordination Collaboration Alliance
recently to the curve, and it focuses on strategic alliances.
The idea being that companies may merge, acquire, partner
or work with other companies in order to grow themselves. Crises of Identity

◦ Example: The organization, after successfully navigating the

Size of Org.
Collaboration Phase, enters into strategic alliances and Crises of Growth

partnerships with organizations e.g. ABC to support further

growth. Crises of Red Tape

◦ Crisis: Identity Crisis

Crises of Control
◦ As a result, the company may experience challenges related
to its identity. Questions may arise about whether it still
Crises of Autonomy
embodies the entrepreneurial spirit of its founders, or if the
external collaborations have altered its core values and
mission. Small Crises of Leadership

◦ Example: The crisis of identity may require the A&A to

redefine and clarify its vision, values, and identity in the
face of external collaborations.. Young Maturity
Age of Org.
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3. Cultural Web Model

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3.1 Cultural Web Model
The cultural web was devised by Gerry Johnson as part of his work to
attempt to explain why firms often failed to adjust to environmental
change as quickly as they needed to.

Gerry Johnson
Emeritus Professor

©Prepared by Muhammad Waqas Chughtai

Cont. Cultural Web Model
◦ Culture is the set of values, guiding beliefs, understandings and ways of thinking that are shared by the
members of an organisation and is taught to new members as correct. It represents the unwritten,
feeling part of the organisation.

◦ Paradigm:
◦ Definition: The deep-seated beliefs and assumptions that influence how
people perceive and make sense of the world.
◦ Example: In a technology company, the paradigm might be an unwavering
belief in innovation and the transformative power of technology.
◦ Rituals and Routines:
◦ Definition: The regular and repetitive activities that members of an
organization engage in, which reinforce certain behaviors and expectations.
◦ Example: Daily stand-up meetings or weekly brainstorming sessions can be
rituals that emphasize collaboration and idea-sharing in an organization.
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Cont. Cultural Web Model
◦ Stories:
◦ Definition: The narratives and anecdotes shared within the organization
that convey its history, values, and cultural norms.
◦ Example: A story about how a team overcame a major challenge together
can reinforce the value of teamwork and resilience in the organizational
culture.
◦ Symbols:
◦ Definition: The visual representations or images that convey meaning and
evoke emotions related to the organization's culture.
◦ Example: The company logo, office layout, or dress code can serve as
symbols that communicate aspects of the organizational culture, such as
professionalism, creativity, or inclusivity. ure.
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Cont. Cultural Web Model
◦ Power Structures:
◦ Definition: The formal and informal distribution of power and authority within
the organization.
◦ Example: A hierarchical organizational structure with a clear chain of command
reflects a power structure where decision-making authority is concentrated at
the top.
◦ Control Systems:
◦ Definition: The processes and mechanisms that organizations use to monitor
and manage their activities, ensuring alignment with the desired culture.
◦ Example: Performance evaluation systems, feedback mechanisms, and reward
structures are control systems that influence and reinforce certain behaviors in
line with the organizational culture.

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Cont. Cultural Web Model
How to Use the Cultural Web:
◦ Diagnosis:
◦ Organizations can use the Cultural Web to assess their current cultural
elements. This involves identifying the existing paradigm, rituals, stories,
symbols, power structures, and control systems.
◦ Desired Culture:
◦ Organizations can then define the desired cultural elements that align with
their strategic goals and vision for the future.
◦ Gap Analysis:
◦ The Cultural Web facilitates a gap analysis, helping organizations identify
the differences between the current and desired cultural elements.

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Cont. Cultural Web Model
◦ Strategic Change:
◦ With a clear understanding of the cultural elements, organizations can
implement targeted strategies to change specific aspects of the culture. This
may involve introducing new rituals, reshaping power structures, or revising
control systems.
◦ Continuous Assessment:
◦ The Cultural Web is a dynamic tool that organizations can use continuously
to assess and adjust their culture in response to internal and external
changes.

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4. Overcoming Resistance to Change

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4.1 Overcoming Resistance to Change
◦ Resistance is 'any attitude or
behavior that reflects a person's
unwillingness to make or support
a desired change’.
◦ Resistance may take many forms,
including active or passive, overt
or covert, individual or organized,
aggressive or timid. For each
source of resistance,
management need to provide an
appropriate response.

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Cont. Overcoming Resistance to Change
Reasons for resisting change
According to Kotter and Schlesinger (1979) there are four reasons that explain why
certain people resist change.
◦ Parochial self-interest (some people are concerned with the implication of the
change for themselves and how it may affect their own interests, rather than
considering the effects for the success of the business).
◦ Misunderstanding (communication problems; inadequate information).
◦ Low tolerance to change (certain people are very keen on security and
stability in their work).
◦ Different assessments of the situation (some employees may disagree on the
reasons for the change and on the advantages and disadvantages of the
change process).
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Cont. Overcoming Resistance to Change
Leadership Styles to deal with resistance
Kotter and Schlesinger set out the following
change approaches to deal with resistance:
◦ Participation: Get employees involved in
decision-making. Let them have a say in how
things are done. This can make them feel more
in control and satisfied with their work.
◦ Education and Communication: Share
information about why the changes are
happening and how they can benefit everyone.
The idea is that if people understand the
reasons behind the changes, they are more
likely to accept and support them.

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Cont. Overcoming Resistance to Change
◦ Power/Coercion: This is the "boss says so" approach. Managers use their authority to
make people comply with the changes. It can involve using laws or rules to force the
changes through.
◦ Facilitation and Support: Help employees deal with their worries and fears about the
changes. Provide counseling or support to help them cope with the challenges.
◦ Manipulation and Co-optation: Try to subtly influence people by sharing information
that highlights the positive aspects of the changes. Co-optation involves bringing key
people into the decision-making process to gain their support.
◦ Negotiation: When dealing with unions or groups with different interests, negotiate
with them. Find a middle ground that everyone can agree on through bargaining and
compromise.

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5. Strategic Leadership

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5.1 Strategic Leadership
◦ Strategic leadership means having the
ability to anticipate, prepare and get
positioned for the future. A leader
must be 'tuned in' to the signals that
provide insight about the needs and
wants of team members, senior
management and suppliers.

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5.2 Who is Strategic Leader?
◦ Strategic leaders are the people in charge of making important decisions
about the future of a company. They are the ones responsible for figuring out
the best plan (strategy) for the organization to succeed. These leaders are
often personally connected to and crucial for the organization's strategy.
People might look up to them because of their personality, reputation, or
because they've successfully guided the company through tough times. In
some cases, it could be the person who started the business or the CEO who
played a key role in turning the company around. Essentially, these are the
individuals everyone trusts to lead the way in shaping the organization's
future plans.

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5.3 Skills of Middle Manager
Middle managers are the linking pin between the
senior management team and the rest of the
organisation. They have responsibility for helping
their staff through the change process while
simultaneously undertaking change themselves.
They have four roles to perform. They need to:
• undertake personal change
• help their teams through change - build up and
maintain the momentum of change until the
change is completed and act as facilitator
• implement the necessary changes in their parts
of the business - encourage individuals to use
their initiative and put emphasis on teamwork

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5.4 Change Agent
A change agent is like a key player or helper in an organization when things
need to change. Whether they're from inside the organization or brought in
from outside, they play a crucial role in several important steps:
1. Define the Problem and its Cause: The change agent helps the organization
understand what's not working (the problem) and why it's happening (the
cause). It's like figuring out what needs fixing and why it's a problem in the
first place.
2. Diagnose Solutions and Select Appropriate Courses of Action: Once the
problem is clear, the change agent works with the organization to come up
with ideas to fix it (solutions). They help choose the best ways to make things
better, like picking the right medicine for an illness.

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Cont. Change Agent
3. Implement Change: After deciding on the solutions, the change agent helps
the organization put these ideas into action. They guide the process of making
the necessary changes happen, like a coach helping a team follow a game plan.
4. Transmit the Learning Process to Others and the Organization Overall: The
change agent ensures that the organization learns from the process. They make
sure that not only the specific problem is solved but that the organization gets
better at handling similar challenges in the future. It's like teaching everyone
how to fish instead of just giving them a fish—helping the organization become
more capable on its own.

©Prepared by Muhammad Waqas Chughtai

Thanks

©Prepared by Muhammad Waqas Chughtai