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Strategic change
Prof.S.Rajagopalan
rajas42@gmail.com
1
Quick recap on strategy…..
firm’s strategy involves a multitude of choices
2
Strategic change
Typically involves adjustment along many
dimensions.
3
Talking about change…..
Is there any one in this room who welcomes
change ?
If yes, why ?
5
Talking about change I am reminded about
a fisherman’s story in Africa….
6
We need to implement these strategies..
7
Myths about change
9
Prerequisites for change
Early and continuous top management
understanding, commitment, approval and
involvement.
High degree of trust between levels of
organization that facilitates change process.
Patience in terms of time frames for change
10
Lily - Pad Riddle
11
Organisational Shelf life problem
Not only are changes multiplying
exponentially like lily pads in a pond , but
solutions to them have a shorter shelf life
than before.
The programs, procedures, and strategies
that we develop to take advantage of new
opportunities or solve new problems are
becoming obsolete faster than before.
12
What If You Don’t Change?
13
In several companies , organisational
burning platform exists…..
14
Major change is the loss of control
How people perceive & react to change
Change is considered major when it is
perceived to be so by those affected
change as a result of significant disruption in
established expectations .
Loss of control over some important aspect
of their lives or environment
15
THE STRUCTURE OF CHANGE
Synergy Nature
Culture Process
Resilience
Commitment Roles
Resistance
16
Nature of change
17
Process of change
Transition Desired
Present state state state
Pain Remedy
19
Prerequisites for major organisational change
20
THE
THE PRICE
PRICE FOR
FOR FAILING
FAILING TO
TO
SOLVE
SOLVE AA PROBLEM
PROBLEM
High
Price Recovery will be impossible
10 Business
Imperative
We will lose most of what we 9
consider important
8
LEVEL OF RESOLVE
We will have to shift our entire way 7
of operating
6
4
The price will be difficult to pay
3
The price will be more than we 2
want to pay
1 Good
Idea
Low Price The price will be mild irritation 21
THE
THE PRICE
PRICE FOR
FOR FAILING
FAILING TO
TO
TAKE
TAKE OF
OF AN
AN OPPORTUNITY
OPPORTUNITY
LEVEL OF RESOLVE
shift in the way we operate
7
We will miss a cornerstone to the
6
overal business strategy
5
We will miss a major competitive
distinction 4
3
We will miss a powerful tactical
advantage 2
Good
We will miss something interesting 1 Idea
Low Price and enjoyable 22
THE HUMAN REACTION TO CHANGE
When
perceived
reality matches
expectations, a
sense of
control is
achived and a
This need Specific form of
can be met expectations equilibrium is
People by dictating are
have a or at least established
generated
strong need anticipating based on
for control their future what can be
dictated or
anticipated When perceived
reality does not
match
expectations,
the feeling of
control is lost
and people must
adjust to the
changes they
were unprepared
to face
Roles of change
Sponsors : Individuals or Groups who
has the power to sanction or legitimize
changes
Agents : Individuals or Groups
responsible for actually making change
Targets: Individuals or Groups who have
to change
Advocates: Individual or Groups who
want to achieve a change but lack the
power to sanction it 24
Resistance to change
Anger Acceptan
Active
ce
Bargainin
g
RESPONSE
EMOTIONAL
Testing
Denial
Immobilizati
Passive
on Depression
26
TIME
Commitment to change
28
HOW CULTURE IMPACTS CHANGE
Attempts to introduce
changes that are
radically different than
the existing culture
usually are not
successful
30
Synergy and change
31
Resilience - Key attributes
33
Change Process
Leadership issues
34
Leading the change
Effectively target the change
Plan a path to accomplish the change
Create a conducive climate for change
Avoid problems or if encountered solve
along the way
Realise all benefits of completed change
35
Managing change - Leadership
Desired roles
Visionary catalyst sustaining force
Creativity and Intuition
driving force for change
36
Managing change - Leadership
Actions
Commitment to change - personal and
organisational
continuous communication
No surprises
Quick action to remedy problems
Allowing appropriate time for change
37
Managing change - Leadership
Leadership- roles
Gauging needed effort - don’t
underestimate the time and effort needed
for change
Motivation and capability
Flexibility - be prepared to change course
if needed
Managing shifts in ownership
Straightening the pathway to change
38
Managing Change – causes to watch for
Sponsor can leave
Programme may have to be scaled down due
finance, over-run
Loss of key personnel
Loss of unique skills & resources
Changed circumstances make original design less
effective
Change leaders may lose heart & drive
Poor management of programme and projects
39