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Strategic Change

Management
IBRAHIM TIRIMBA

Definition of Change
Implies making an essential
difference
often amounting to a loss of
original
identity or a substitution of one
thing for
another.

Change Management
Change Management provides a
structured approach for making changes
in a planned and systematic fashion to
effectively implement new methods and
processes in an ongoing organization. The
goal is to prepare stakeholders for the
transformation, ensure that they are
knowledgeable to face change in a
dynamic work environment, and
ultimately ready to embrace the change.

Environmental Triggers of
Change
The environment is:
All factors, including institutions,
groups, individuals, events, etc., That
are outside the organisationbut
that have a potential impact.

Some Elements in an Organisations Environment

Markets, clients, customers


Suppliers
Government, regulatory bodies
Trade unions
Competitors
Financial institutions
Labour supply
Levels of unemployment
Economic climate
Technological, computing, info systems, e-commerce,
internet advances
Globalisation of trade
Political ideology
Family structure
Distribution of wealth

External Environments (a)


The use of the mnemonics PETS, or PEST, or STEP
draws attention to the multiple facets of the
external environment.
The speed at which the internet has come to be
used in almost every type of organisation (as well
as the ones which are built entirely upon its
capacities) is a clear example of the influence of
the TECHNOLOGICAL ENVIRONMENT.
Another example of the impact of this sector on
organisational life is the threat to employee rights
of using surveillance monitoring of emails and
internet use, and the advent of sexual harassment
via the sending of unsolicited pornographic emails.
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External Environments (b)

The POLITICAL ENVIRONMENT is


constantly changing.
Governments change and new
alliances are formed with old ones
broken.
With the advent of the European
Union and the Common European
Currency, no longer do individual
countries have sole power over what
laws apply and even what economic
policies they might pursue.
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External Environments (c)

The ECONOMIC ENVIRONMENT has always


been of the utmost importance in forcing
organisations to second guess what
competitors might do and the changing
needs and desires of actual and potential
customers.
Intertwined with all these aspects of the
external environment, as they are with each
other, is the SOCIO-CULTURAL
ENVIRONMENT.
Demographic changes, changes in living,
working and leisure pursuits impact upon
peoples needs and wants and the capacity
of organisations to change to meet them.
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Some Elements in an Organisations Environment


Overall points:
The various aspects of the PETS environment are
interrelated (e.g. socio-cultural factors will
influence economic factors and vice-versa).
Some factors can be categorised in more than
one sector.
Few triggers for change emerging from the
external environments can be responded to
without taking other factors into account.
Any force for change has multiple and complex
causes.
Organisations which ignore this deep complexity
are unlikely to prosper.
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Change Management
effort
Leadership identified the risks of transforming
logistics policies, processes, and technologies to
better support the organization.
Leaderships concern was that failure to address
the issues around transformation could result in:
Decreased productivity pre-and post
transformational implementation;
Loss of key talent across the logistics arena;
Inability to successfully implement change
solutions as envisioned;
Program delays and budget overruns;
Failure to realize the anticipated benefits of the
change program; and
Strained relationships among stakeholders.

Competition

Complexity

Computers

Change

Organisational Life Cycle (three


phases)
Unfreezing

Changing

Give reasons.

Explain the benefits.

Be empathetic.

Identify a champion.

Communicate clearly.

Get input from


employees.
Watch timing.
Maintain job security.
Provide training.
Proceed at a
manageable pace.

Refreezing

Show top
managements support.
Publicize successes.
Make midcourse
corrections.
Help employees deal
with stress.

Factors of success

Corporate objectives
Management style and system
Business strategy
Organizational structure
Quality of human resources
Working climate and
Leadership

Factors of failure
Parochial self-interest. Some people are more
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 of change. Certain people are
very keen on feeling secure and having stability in
their work.
Different assessments of the situation. Some
employees may disagree with the reasons for the
change and with the advantages and
disadvantages of the change process.

Types of Organizational
Change
Organization-wide Versus Subsystem Change
Examples of organization-wide change might be a major
restructuring, collaboration or rightsizing.
Examples of a change in a subsystem might include addition
or removal of a product or service, reorganization of a
certain department, or implementation of a new process to
deliver products or services.
Transformational Versus Incremental Change
An example of transformational (or radical, fundamental)
change might be changing an organizations structure and
culture from the traditional top-down, hierarchical structure
to a large amount of self-directing teams.
Examples of incremental change might include continuous
improvement as a quality management process or
implementation of new computer system to increase
efficiencies. Many times, organizations experience
incremental change and its leaders do not recognize the
change as such.

Types of Organizational
Change
Unplanned Versus Planned Change
Unplanned change usually occurs
because of a major, sudden surprise to
the organization, which causes its
members to respond in a highly reactive
and disorganized fashion.
Planned change occurs when leaders in
the organization recognize the need for
a major change and proactively organize
a plan to accomplish the change.

Levels of Change
There are seven Levels of Change as follow
LEVEL 1: EFFECTIVENESS - DOING THE RIGHT
THINGS.
LEVEL 2: EFFICIENCY - DOING THINGS RIGHT.
LEVEL 3: IMPROVING - DOING THINGS BETTER.
LEVEL 4: CUTTING - DOING AWAY WITH THINGS.
LEVEL 5: COPYING - DOING THINGS OTHER
PEOPLE ARE DOING.
LEVEL 6: DIFFERENT - DOING THINGS NO ONE
ELSE IS DOING.
LEVEL 7: IMPOSSIBLE - DOING THINGS THAT
CAN'T BE DONE.

Levels of Change

cont.

PARTING SHOTS
Change before you have to. Jack
Welch
People dont resist change. They
resist being changed!
Everyone thinks of changing the
world, but no one thinks of changing
himself.

PARTING SHOT...
The biggest risk is not taking any risk
... In a world that changing really quic
kly, the only strategy that is guarantee
d to fail is not taking risks.
Tirimba

THANK YOU FOR YOUR


KIND ATTENTION