Strategy: Choices and Change

MN6003

Session 17
Strategic Change Context

Lecturer: xxxxxx
Strategy Theme 3: Leadership and the
Implementation of Strategic Change.
londonmet.ac.uk
Theme 3: Leadership and the Implementation of
Strategic Change.
15 28/1/19 Strategic Planning 1 – Emergent Strategy

16 04/02/19 Strategic Planning 2 – Deliberate Strategy

 Theme 3: Leadership and the Implementation of Strategic Change.

17 11/02/19 Strategic Change 1 (Brief Summative Assignment 3: Unilever Case Analysis)

18 18/02/19 Strategic Change 2

19 25/02/19 Strategic Change 3

20 4/03/19 Strategic Leadership

21 11/03/19 Strategy as a Career

22 18/03/19 Contemporary Strategy Analysis

23 25/03/19 Formative Feedback

24 01/04/19 Submission of Summative Assignment 3: Unilever Case Analysis

25 8/04/19 Submission of Summative Assignment 3: Unilever Case Analysis

Hols 15/04/19 Easter Vacation

Hols 22/04/19 Easter Vacation

26 29/04/19 Future of Strategy/ Submission of Summative Assignment 3: Unilever.

 Theme 3: Leadership and the Implementation of
Strategic Change.
Submit Summative
15 28/1/19 Strategic Planning 1 – Emergent Strategy
Assignment 3 –Unilever
16 04/02/19 Strategic Planning 2 – Deliberate Strategy
Case Analysis Video links
 Theme 3: Leadership and the Implementation of Strategic Change.
by 3pm on Tuesday 2nd
17
April 2019.(Week 24).
11/02/19 Strategic Change 1 (Brief Summative Assignment 3: Unilever Case Analysis)

18 18/02/19 Strategic Change 2

19 25/02/19 Strategic Change 3

Present your video in w/c
20 4/03/19 Strategic Leadership
1st, 8th and 29th April 2019
21 11/03/19 Strategy as a Career (Weeks 24, 25 and 26)
22 18/03/19 Contemporary Strategy Analysis

23 25/03/19 Formative Feedback

24 01/04/19 Submission of Summative Assignment 3: Unilever Case Analysis

25 8/04/19 Submission of Summative Assignment 3: Unilever Case Analysis

Hols 15/04/19 Easter Vacation

Hols 22/04/19 Easter Vacation

26 29/04/19 Future of Strategy/ Submission of Summative Assignment 3: Unilever.

Today
Objectives
• Identify types of required strategic change
• Analyse how organisational context might
affect the design of strategic change
programmes
• Consider use of forcefield analysis to identify
forces blocking and facilitating change
• Briefing on Summative Assignment 3: Unilever
Case Study Assessment.
Managing change – key issues
Four key premises:
Strategy matters – in identifying the need for
change and the direction of change.
Context matters – the right approach to change
depends on the circumstances.
Inertia and resistance – getting people to
change from existing ways of doing things is
essential.
Leadership matters – good leadership of
change at all levels is needed.

source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Diagnosing the change context

Types of Change
(four types model)

Context of Change Context of Change

(forcefield analysis) (change kaleidoscope)

source: adapted from Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Four types of strategic change

original source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009

source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Type of Change: Adaptation
Realignment

Adaptation:
less fundamental Incremental
change
implemented
slowly through
staged initiatives.

Source: J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Type of Change: Reconstruction

Realignment

Reconstruction:
change undertaken
to realign the way
the organisation Big
operates, but in a bang
more dramatic
manner than
adaptation. Often
forced and reactive
due to a changing
competitive context.

Source: J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Type of Change: Evolution

Transformation

Evolution:
transformational change
implemented gradually through
different stages and interrelated
initiatives. Likely to be planned,
Incremental pro-active change undertaken in
response to anticipation of the
need for future change.

Source: J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Type of Change: Revolution

Transformation

Revolution:
transformational change that
occurs via simultaneous
Big initiatives on many fronts, and
bang often in a relatively short space
of time. More likely be forced
and reactive due to the
changing competitive conditions
the organisation is facing.

source: J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Types of strategic change
Four types of strategic change:
Adaptation – can be accommodated with the
existing culture and can occur incrementally.
Reconstruction – rapid change but without
fundamentally changing the culture.
Revolution – fundamental changes in both
strategy and culture.
Evolution – cultural change is required but this
can be accomplished over time.

source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Managing revolutionary change

Managing change in such circumstances is likely

to involve:
• Clear strategic direction
• Combining rational and symbolic levers
• Multiple styles of change management
• Working with aspects of the existing culture
• Monitoring change

source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Managing evolutionary change
Managing change as evolution involves
transformational change, but implemented
incrementally. This requires:
 Clear strategic vision
 Continual change and commitment to
experimentation
 Identifying interim stages and targets
 Use of irreversible changes
 Sustained top management commitment
 Winning hearts and minds

source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Change Kaleidoscope:
the importance of context in designing change

original source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, Prentice Hall, 2009

source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Change Kaleidoscope
Contextual Features (1)
Time: How quickly is change needed? Is it a crisis? Is it long term
of short term?

Scope: How much change is needed? Whole organisation or just

one part? How deep a change is it – relatively superficial or
transformational?

Preservation: What organisational resources and characteristics

need to be maintained? What is working well that should not be
damaged? What needs to be destroyed?

Diversity: how homogeneous are the staff groups and divisions

within the organisation? Will the change impact particular groups
differently e.g. gender, ethnicity, profession, job role or is
everyone impacted in much the same way?

source: adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Change Kaleidoscope
Contextual Features (2)
Capability: What is the managerial and personal capability to
implement change? Do people have the competence and ability to
initiate and deliver change? Think about individuals, groups,
managers and staff

Capacity: What is the degree of change resources available? Think

about the amount of money, people, time that is needed and
available to make the required changes.

Readiness : How ready for change are the workforce? Are people
aware of the changes? Are they committed to implementing change?

Power: What power and autonomy does the change leader have to
impose change? Do staff have the power to resist or ignore change if
they want to?

source: adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Worked Example: Key contextual features for Tarmac Central

source: J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Worked Example: Key contextual features for Tarmac France

source: J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Change Judgement: Key Points
• Need to appreciate what is unique and specific about
current context: Contextual judgement is key competence
• Contextual judgement is about being able to read the
organisational context, and understand how to influence it
to enable change
• The change kaleidoscope facilitates judgement – enables
identification of critical contextual features
• Skill in implementing strategic change comes from
consideration of wide range of cases to understand why
particular interventions did or did not work in that
particular context – not from learning a magical change
formulae that will work in every situation

source: adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2009
Exercise 1

• In small groups, use the Change

Kaleidoscope to describe and analyse
the change context at Hewlett-Packard
at the time of Meg Whitman’s arrival in
September 2011
• Be ready to discuss your answers
Forcefield analysis

A forcefield analysis provides an initial view

of change problems that need to be tackled
by identifying forces for and against change.

It’s a simple but useful tool for identifying

blockages to change and possible levers to
help change.

source: adapted from Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Lewin's Force-field Analysis
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An example forcefield analysis for
the UK forestry commission

source: adapted from Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter 14
Briefing on Summative Assignment 3 – Individual
Leadership and the Implementation of Strategic
Change Case Study Assessment
(30% of your e-portfolio mark)

 Your lecturer will now talk

to you about the Unilever
Case Study assessment

 There will also be a copy of

the briefing and the case
study on Weblearn
Briefing on Summative Assignment 3 – Individual
Leadership and the Implementation of Strategic
Change Case Study Assessment
Upload Summative Assignment 3
(30% of your e-portfolio mark)
-Individual Leadership and the
Implementation of Strategic Change
Assessment: Unilever Case Study
 Your lecturer will nowVideo
Analysis talk link (30%) to Weblearn
Personal Journal by 3pm on Tuesday
to you about the Unilever
2nd April 2019 (Week 24).
Case Study assessment
Video presentations take place in
 There will alsoseminars in w/c 1st, 8th and 29 April
th
be a copy of
2019 (Weeks 24, 25 and 26)
the briefing and the case
study on Weblearn
Exercise

• If you have time then have a go at the

Force-field analysis for Hewlett-Packard
at the time of Meg Whitman’s arrival in
September 2011

• Be ready to discuss your answers

Summary
• Four Types of strategic change:
– Evolution, Revolution, Adaptation, Reconstruction
• The Change Kaleidoscope identifies key aspects
of the organisational change context
• Force-field analysis also considers the context
and is a useful means of identifying blockages to
change and potential levers for change.

28 14
source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9 th Edition, Pearson Education, Chapter
 And finally…..

• Use the rest of the

time to begin work
on the Unilever
Case Study
assessment.