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Transcript of STRATEGICALLY MANAGING CHANGE Planning & Implementing Change Initiatives J. Michael (Mike) Geringer,...
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STRATEGICALLY MANAGING CHANGE
Planning & Implementing Change Initiatives
J. Michael (Mike) Geringer, Ph.D.O’Bleness Professor of International Strategy
Director, Center for International Business – College of BusinessOhio University, Athens Ohio, USA
email: [email protected]
Materials in this packet copyright © by Geringer & Associates, Inc. Do not quote, cite, reproduce or otherwise infringe without written permission.
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We can't solve problems by using the same kind of thinking we used when we created them. Albert Einstein
© Geringer & Associates, Inc.
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THE CHALLENGE OF STRATEGY IMPLEMENTATION & CHANGEChange in one major component can require change in any or all other components
Thus, strategy formulation, implementation & evaluation activities should be performed on continual basis, not just at yearend or semi-annually
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STRATEGY IMPLEMENTATION & CHANGE
A Challenge: How to Translate & Communicate Strategic Vision & Produce Successful Implementation within Your Organization?– How to obtain the knowledge, skills &
assets needed?• e.g., technology developments, distinctive
competencies, distribution channels, service networks….?
– How to get your organization to successfully apply these elements?
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BUILDING A STRATEGY IMPLEMENTATION/CHANGE PLAN Step 1: Analyze starting conditions
– Urgency: Am I dealing with anticipatory, reactive or crisis change?
– Personal readiness: How ready am I to lead the change process?
– Organizational readiness: • Who will be most affected by change? • How ready are they?
–Awareness of need for change? –Skills required for the change? –Commitment to the desired change?
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STRATEGY IMPLEMENTATION/ CHANGE & COMPLACENCY“While it is difficult to change a company that is struggling, it is next to impossible to change a company that is showing all the outward signs of success.
Without the spur of a crisis or a period of great stress, most organizations -- like most people -- are incapable of changing the habits and attitudes of a lifetime.”
John F. McDonnell, McDonnell Douglas Corp.
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THE STRATEGIC CHANGE CURVE
Good
Poor
StrategicPerformance
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,Fourth Edition, Prentice Hall Canada, 2000
When to begin the change
process?
AnticipatoryReactive
Crisis
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Good
Poor
StrategicPerformance
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,Fourth Edition, Prentice Hall Canada, 2000
Things aregoing well.
Do we reallyneed to change?Can we
experiment?
AnticipatoryReactive
Crisis
THE STRATEGIC CHANGE CURVE
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Good
Poor
StrategicPerformance
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,Fourth Edition, Prentice Hall Canada, 2000
AnticipatoryReactive
CrisisWhat needsto change?
Where do westart?
Can we findan early win?
THE STRATEGIC CHANGE CURVE
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Good
Poor
StrategicPerformance
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,Fourth Edition, Prentice Hall Canada, 2000
AnticipatoryReactive
CrisisWe need tomove fast.
Who can ITrust?
Where do westart?
THE STRATEGIC CHANGE CURVE
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Good
Poor
StrategicPerformance
Time
Source: Nick Fry and Peter Killing, Strategic Analysis and Action,Fourth Edition, Prentice Hall Canada, 2000
AnticipatoryReactive
Crisis
THE STRATEGIC CHANGE CURVE: IMPLICATIONS BY STAGE
•Clarity of change needed
•Resources available (human, financial, etc.)
•Time available for developing & implementing change
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BUILDING A STRATEGY IMPLEMENTATION/CHANGE PLAN
Step 2: Determining required strategic & organizational changes
• What Changes Must Be Made?Depends on your firm’s vision,competencies & capabilities
• What is special about your firm?• Why is “uniqueness” important in the
marketplace?
• How Urgent is the Required Change?
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BUILDING A STRATEGY IMPLEMENTATION/CHANGE PLAN
Step 3: Establish conditions for action– Targets: Which groups should I influence?
– Action priorities: What issues to attack 1st, 2nd, 3rd?
– Change Process-Tactics: • What leadership style & tactics should I employ?
• How to achieve shared understanding, commitment, & action?
• What structures, systems, processes must change, & how?
• What resources will be needed to enable change & where/how do I obtain them?
• Can I find visible, early successes to help promote the process?
– Pace: How fast should I move?
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STRATEGY ALIGNMENT & IMPLEMENTATION/CHANGE PLAN
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Implementation/ Change Target
Priority Desired Behavior/ Outcome
Tactics to Utilize
Sequencing & Pace of Change Efforts
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STRATEGY IMPLEMENTATION
Implementation Process Questions:
– Who are the people to carry out the strategic plan?
– What must be done to align operations with new direction?
– How is work going to be coordinated?
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KEY FEATURES OF LEADING CHANGE
Explain basic purpose behind the change•‘What was the problem?’•Who said so & on what evidence?•What would occur if no one acted to solve problem?•What could happen to us if that occurs?
Purpose Picture Plan Part
Paint picture of how the outcome will look & feel•What is the outcome going to look, feel & sound like?•How are people going to get their work done & interact with each other?•How will a day be organized?
Lay out plan for phasing in the outcome
•Outline steps & schedules for people to receive info, training & support they need to make transition
•People oriented to tell employees how & when their worlds will change
•Start with where people are & work forward to leave the past behind & emerge with new attitudes, behaviors & identity
Establish each person’s part in plan & outcome
•Show employees the role & their relationship to others. Until they see it they can’t adjust hopes & fears to the new reality
•Show employees what part they play in the outcome & the transition process
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WHAT INHIBITS EXECUTION?
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• More time than planned• Unanticipated problems• Activities ineffectively coordinated• Crises deferred attention away• Employees without capabilities• Inadequate employee training• Uncontrollable external factors• Inadequate leadership• Poorly defined tasks• Inadequate information systems
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SURFACE POTENTIALBARRIERS EARLY ON
• Strategy
• Structure
• Process
• Operating principles
• Culture/behavior
• Jobs
• People
Change gets bogged because barriers are not dealt with soon enough or openly enough to keep change process moving Barriers may exist anywhere & everywhere – even the difficult-to-see places…
• Leadership
• Management
• Resources
• Systems
• Rewards
• Values/Beliefs
• Capabilities
Consider how this change effort will
affect…
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IDENTIFY MECHANISMS FOR PROMOTING INTEGRATION
• Relationship between differentiation & integration
• Forms of integrating mechanisms– Direct contact– Interdepartmental liaison roles– Temporary task forces– Permanent teams– Integrating roles– Integrating departments– Matrix structure
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PLAN FOR THE UNEXPECTED
• Implementation & change efforts are attempted under uncertainty (& often high levels of stress)
• Unexpected events & outcomes WILL occur
• Develop – appropriate monitoring systems – suitable metrics– contingency plans
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Take the time to make this work …
and it will take time.
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