STRATEGIC CHANGE INTERVENTION

GROUP MEMBERS
YOGITA BHADEMAR PRIYANKA MUNJ PRADNYA PATIL SHADAB QURESHI VINAYA SAWANT ANUJA SURVE
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TRANSFORMATIONAL CHANGE
Transformational change is an emerging part of organization development Occurs in response to: - major changes in orgz environment or technology - revision of the firms business strategy Qualitatively different ways of perceiving, thinking and behaving in the orgz

3 INTERVENTIONS
1. INTEGRATED STRATEGIC CHANGE:
- aimed at single organization or business unit

- organization design must be aligned and changed together to respond to internal and external disruptions

2. ORGANIZATIONAL DESIGN:
- elements that comprise the architecture of the organization
- align these components with each other to direct members behavior in a strategic direction 3.

ORGANIZATIONAL CULTURE: - pattern of assumptions, values and norms

- research has shown that culture can affect strategic formulation and implementation

CHANGE IS TRIGGERED BY ENVIRONMENTAL AND INTERNAL DISRUPTIONS

INDUSTRY DISCONTINUITIES: - sharp changes in legal, political, economic and technological conditions, shifts the basis for competition

PRODUCT LIFE CYCLE SHIFTS: - changes in product life cycle that require different business strategy

INTERNAL COMPANY DYNAMICS: - changes in size, corporate portfolio or turnover

CHANGE IS AIMED AT COMPETITIVE ADVANTAGE

UNIQUENESS VALUE DIFFICULT TO IMITATE

CHANGE IS SYSTEMATIC AND REVOLUTIONARY

Entire nature of the organization is altered fundamentally This is pertinent to changing the different features of the organization such as structure, information sys, HR practices and work design Changes should motivate and direct peoples behavior in a new strategic direction

It is considered transformational when majority of individuals in an orgz change their behavior

CHANGE INVOLVES SIGNIFICANT LEARNING

Transformational change requires much learning and innovation Must learn how to enact the new behaviors required to implement new strategic directions Learning occurs at all levels of the orgz from sr. executives to low level employees

INTEGRATED STRATEGIC CHANGE PROCESS

Current Strategy (s1) Strategic Change Plan Current Strategy (s2)

Current Organization Design (01)

Current Organization Design (02)

NETWORK INTERVENTIONS
Network Interventions join together for a common purpose. Allow Companies to share resources and risks (Private Sector). Enable different organizations to take advantage of complementary capabilities. Undertake complex urban renewal projects (Public Sector). Help in coordinating services, promote economies, and avoid costly overlap and redundancy.

CONTD
2 Types of change in development of multi-organization networks 1) Creating the initial network; and 2) Managing change within an established network.

CREATING THE NETWORK

In laying out the conceptual boundaries of network development , also known as trans-organization development, Cummings described the following phases of planned change 1) Identification stage: Identifying existing and potential member organizations Carried out by one or few organizations

Change agents specify criteria for network membership

Judged in terms of the skills, knowledge and resources. Political realities of the situation should be undertaken by the potential employees. Possible members: Key stakeholders
Important difficulty: Insufficient leadership and cohesion among participants to choose potential members.

CONTD
2) Conventional Stage: Concerned with bringing them together to assess whether formalizing the network is desirable and feasible. Enables potential members to explore mutually their motivations for joining and their perceptions of joint tasks. Requires considerable direction and facilitation by OD practitioners.

Change agents.
OD practitioners act as mediators.

CONTD

3) Organization Stage : Members begin to organize themselves for task performance. Developing structures and mechanisms; promote communication and interaction among members. It includes :

A) The organizations to be involved in the network,

B) The communication and relationships among them, and C) The control system.

OD practitioners define competitive advantage for the network as well as the structural requirements necessary.

CONTD
4) Evaluation stage: Involves assessing how the network is performing. Members need feedback to identify problems and resolve them. This includes

A) Information about performance outcomes B) Member satisfactions

C) Indicators of how well members are interacting jointly.

Change agents: periodical interview or survey member organizations. Network leaders make necessary operational modifications and adjustments. It may signal the need to return to previous stages in the process to make necessary corrections.

MANAGING NETWORK CHANGE

Organization networks are viewed as complex systems displaying the following properties: 1) The behavior of a network is sensitive to small differences in its initial conditions. 2) The tools of systems thinking and the understanding of emergence in complex systems are still being developed and applied. 3) A variety of network behaviors and patterns, both expected and unexpected, can emerge from members performing tasks and making decisions according to simple rules to which everyone agreed.

THE PROCESS OF CHANGE IN COMPLEX SYSTEMS

1) Create instability in the network: 2) Managing the Tipping point The Law of the Few Stickiness The Power of Context

3) Rely on Self-Organization