Post on 01-May-2018
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Exploring Corporate
StrategyFIFTH EDITION
Johnson & Scholes
Chapter 11MANAGING STRATEGIC CHANGE
PRENTICE HALL EUROPE
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Exhibit 11.1 A framework for managing strategic change
Types of strategic change
Diagnosing strategic
change needs
Managing strategic change
processes
Roles in the change process
Symbolic
processes
Communicating
change
Change tactics
Political
processes
Styles of
managing change
Structure and
control
Changing
routines
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Incrementalchange
Transformationalchange
Proactive Tuning Plannedtransformational
Reactive Adaptation Forcedtransformational
Exhibit 11.2 Types of strategic change
NATURE OF CHANGE
MANAGEMENT
ROLE
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Exhibit 11.3 ‘Unfreezing’ and the management of change
Unfreezing
mechanisms
Experimentation
Organisational
anticipation
Organisational flux
Information building
Refreezing (the signalling
or confirmation of change)Sustaining change
Questions and challenges
‘Felt need’ for change
Competing views of causes
of problems and remedies
Information collection
Political ‘testing’ of support
New ideas tested out
Early signals made sense of
within paradigm
Political pressures not to
‘rock the boat’
Attempts to reconcile
competing views within
current paradigm
Information made sense of
within paradigm
Resistance to new ideas
ORGANISATIONAL
‘SYMPTOMS’
PRESSURES FOR
CONFORMITY
STAGES
or
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Forces for change
Client-focused organisation and
closeness to clients
Flexible approach and structure
Change is normal
Informality and networking
Working hard
Fun place to work
Forces acting against change
Job evaluation as 'core'
Individualism of consultants
Complacency about change
Lack of co-ordinated information
Inadequate induction processes
Over-complicated structure
Too many meetings and memos
Individual, not team, incentives
and controls
Exhibit 11.4 An example of forcefield analysis (based on the Hay cultural webs)
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The zone of
comfortable debate (ZOCD)
The zone of
uncomfortable debate
(ZOUD)
Core
assumptions:
The paradigm
Exhibit 11.5 The zone of uncomfortable debate (ZOUD)Source: Adapted from C. Bowman ‘Strategy workshops and top team commitment to strategic change’, Journal of Managerial Psychology, Vol. 10 (1995) pp. 42-50
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
STYLE MEANS/CONTEXT BENEFITS PROBLEMS CIRCUMSTANCES OF
EFFECTIVENESS
Education and Group briefings assume Overcoming lack of Time consuming
communication internalisation of strategic (or mis)information Direction or progress
logic and trust of top may be unclear
management
Collaboration/ Involvement in setting the Increasing ownership Time consuming
participation strategy agenda and/or of a decision or Solutions/outcome
resolving strategic issues process May improve within existing
by taskforces or groups quality of decisions paradigm
Intervention Change agent retains Process is Risk of perceived Incremental or non-crisis
co-ordination/control guided/controlled manipulation transformational change
delegates elements of but involvement
change takes place
Direction Use of authority to set Clarity and speed Risk of lack of Transformational change
direction and means of acceptance and ill-
change conceived strategy
Coercion/edict Explicit use of power May be successful in Least successful Crisis, rapid
through edict crises or state of unless crisis transformational change
confusion or change in established
autocratic cultures
Incremental change or
long-time horizontal
transformational change
Exhibit 11.6 Styles of managing strategic change
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
TYPES OF RITUAL ROLE EXAMPLES
Rites of passage Consolidate and promote social roles Induction programmes
and interaction Training programmes
Rites of enhancement Recognise effort benefiting organisation Awards ceremonies
Similarly motivate others Promotions
Rites of renewal Reassure that something is being done Appointment of consultants
Focus attention on issues Project teams
Rites of integration Encourage shared commitment Christmas parties
Reassert rightness of norms
Rites of conflict reduction Reduce conflict and aggression Negotiating committees
Rites of degradation Publicly acknowledge problems Firing top executives
Dissolve / weaken social or political roles Demotion or 'passing over'
Rites of sense making Sharing of interpretations and sense Rumours
making Surveys to evaluate new practices
Rites of challenge 'Throwing down the gauntlet' New CEO's different behaviour
Rites of counter-challenge Resistance to new ways of doing things Grumbling
Working to rule
Exhibit 11.7 Organisational rituals and culture change
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
MECHANISMS
ACTIVITY
AREAS RESOURCES ÉLITES SUBSYSTEMS SYMBOLIC KEY PROBLEMS
Building the Control of resources Sponsorship by an Alliance building Building on Time required for
power base Acquisition élite Team building legitimation building
of/identification Association with an Perceived duality of
with expertise élite ideas
Acquisition of Perceived as threat
additional resources by existing élites
Overcoming Withdrawal of Breakdown or Foster momentum Attack or remove Striking from too low
resistance resources division of élites for change legitimation a power base
Use of Association with Sponsorship/reward Foster confusion Potentially
‘counter-intelligence’ change agent of change agents conflict and destructive: need for
Association with questioning rapid rebuilding
respected outsider
Achieving Giving resources Removal of Partial Applause/reward Converting the body
compliance resistant élites implementation and Reassurance of the organisation
Need for visible collaboration Symbolic Slipping back
‘change hero’ Implantation of confirmation
‘disciples’
Support for ‘Young
Turks’
Exhibit 11.8 Political mechanisms in organisations
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
COUNTERMOVES TO CHANGE
Divert resources
Exploit inertia
Keep goals vague and complex
Encourage and exploit lack of organisational
awareness
‘Great idea - let’s do it properly’
Dissipate energies
Reduce the change agent’s influence and credibility
Keep a low profile
Exhibit 11.9a Political manoeuvres and change
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
COUNTERING COUNTERMOVES
TO CHANGE
Establish clear direction and objectives
Establish simple, phased programming
Adopt a fixer - facilitator - negotiator role
Seek and respond to resistance
Rely on face to face
Exploit a crisis
Co-opt support early
The meaningful steering committee/task force/project
team
Exhibit 11.9b Political manoeuvres and change
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Overly rich
communication
causes confusion
EFFECTIVE
COMMUNICATION
Routine communication
for routine change
Rich communication
for complex changes
Too little information and
sensitivity leads to mistrust
and lack of commitment
ComplexRoutine
CHANGES
Face to face
(one to one or group)
Interactive
(e.g. telephone, video
conferencing)
Personal 'memoing'
(e.g. tailored memos, letters)
General bulletins
(e.g. circulars, announcement
on notice boards)
TYPE
OF
MEDIA
Exhibit 11.10 Effective and ineffective communication of changeSource: Based on R.H. Lengel and R.L. Daft, ‘The selection of communication media as an effective skill’, Academy of Management Executive, vol.2, no. 3 (1988) pp. 225–232
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Goals
1. Sensitivity to changes in key
personnel, top management
perceptions and market conditions
2. Clarity in specifying goals
3. Flexibility in responding to
changes
Roles
4. Team building abilities
5. Networking skills
6. Tolerance of ambiguity
Communication
7. Communication skills
8. Interpersonal skills
9. Personal enthusiasm
10. Stimulating motivation and
commitment in others
Negotiation
11. Selling plans and ideas to others
12. Negotiating with key players
Managing up
13. Political awareness
14. Influencing skills
15. Helicopter perspectives
Exhibit 11.11 Fifteen key competences of change agentsSource: From D. Buchanan and D. Boddy, The Expertise of the Changing Agent: Public performance and backstage activity, Prentice Hall, 1992, pp. 92-3
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
SYMPTOMS OF STRATEGIC DRIFT
Highly homogenous paradigm/culture
Strong power blockages to change
Lack of market information
Little toleration of questioning/challenge
“We’ve tried this before and it didn’t work”
Deteriorating performance
Reliance on price/cost /competition
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
CHANGE AND THE LEARNING
ORGANISATION
Learning Organisations:
Are not hierarchies
Encourage processes which unlock the knowledge of individuals
Encourage sharing of information and knowledge
So that each individual:
becomes sensitive to changes around them and helps identify
opportunities and required changes
becomes capable of taking an holistic (strategic) view of its
environment rather than a functional or operational view
avoids power plays and blocking routines
works on the basis of a shared vision of the future
supports other organisational members
can cope with ambiguity and contradictions
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
MAPPING REQUIRED CHANGEFROM
WHAT IS
TO
WHAT IS NEEDED
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
SYMBOLIC PROCESSES IN
MANAGING CHANGE
Symbolic activity includes:
the use of rituals
changes in organisational systems
changes in physical aspects of work environments
the behaviour of leaders and change agents
organisational stories
language and terminology
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
MANAGING EVERYDAY ASPECTS OF
STRATEGIC CHANGEFORMAL SYSTEMS
Senior executives
are often over reliant on
structure and control
to effect change
MANAGING Means MANAGING
STRATEGY CHANGE
Managing everyday
aspects of
organisational life
is central to
effecting change
EVERYDAY
REALITIES
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
CHANGE TACTICS
Timing
triggers and crises
windows of opportunity
signalling time frames
sequencing change activities
Involvement and partial implementation
Achieving short term wins
The use of outsiders
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
CHANGE
AGENT
CONTEXT
PERFORMANCE
STRATEGY
LEVERS /
MECHANISMS
OF CHANGE
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
TRANSFORMATION
RestructureRevitalise
Renew Reframe
Illustration 11.1 Gemini’s framework for planned strategic change
Gemini’s four R’s of transformation
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Illustration 11.2a Forces blocking and facilitating change in Hay Management
Consulting
Controls
Stories• Rivalry/competition
within organisation
• ‘Lone rangers’
• Working hard
• Fun place to work
• Salary levels
Symbols• Rushing about looking
busy
• Having an office (but
others use it)
• Conferences at
prestigious locations
• Open untidy work
areas
• Job evaluation
terminology
Rituals
and routines
• Consultants are with clients
• Minimal induction process
• Impromptu gatherings and
parties
• Many meetings
• Little bottom-up
communications
• Non-communication
by memo
Paradigm
• Core business is job
evaluation
• Individualism and
autonomy
• Generalist HR expertise
• institutionalised
incremental change
Power• Based on access to clients
• Plus position, expertise and
interpersonal networks
• Meeting individual
billing and selling
targets
• Control job evaluation
procedures
• Financial incentives
Organisation• Complex matrix
• Flexible, responsive to
clients
• Informal networks
• But unclear
accountabilities
(a) The cultural web in 1994
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Illustration 11.2b Forces blocking and facilitating change in Hay Management
Consulting
Controls
Stories• Successful Hay
teams
• Working hard
• Fun place to work
• Big change
managers
• Salary levels
Symbols• Informal interaction
styles
• Having an office (but
others use it)
• Few consultants in
office
• Conferences at
prestigious locations
• Open untidy work
areas
Rituals
and routines
• Consultants are with clients
• Excellent induction process
• Bottom-up communication
• Fewer memos
• Fewer meetings
• Info flows across
depts/networks
• Impromptu gatherings
and parties
Paradigm
• Client focus
• Core business = HR
consultancy
• High expertise in HR
• Team orientated
PowerBased on:
• Client management
• Expertise
• Interpersonal networks
• Meeting billing and
selling targets
otherwise high
autonomy
• Team targets
• Team incentives
• Meeting quality
objectives
Organisation• Clear matrix
• Flexible, responsive to
clients
• Informal networks
• Clear accountabilities
• Informal networks
(b) The cultural web aspired to