This unit provides the learner with the understanding and skills to support active engagement in the process of strategic change management
Alvin Toffler’s famous comment ‘there is only one constant today and that is change’ was made some decades ago, but now change itself is changing at a fast rate. The phenomenal pace of change in countries such as China and India is impacting on older, established economies in the western world. With such change comes uncertainty and insecurity. Organisations, even those in the public sector where ‘steady state’ was ever the watchword, can no longer sit back. All organisations are being increasingly challenged by change. Consequently, they need to understand the issues that drive the need for change in their own organisations. This means that organisations need to have a proactive approach to strategic change management.
Strategic change management is most effective when an organisation actively seeks the participation of all relevant stakeholders. A change management strategy will be effective only if it has the support of all stakeholders. If they are to have a sense of ownership, stakeholders need to have the opportunity to contribute to the development of the change strategy.
Strategic change impacts on the human resources structure of the organisation and this often means a restructuring of the workforce or changes in working practices.
Almost inevitable, change will generate resistance from some, particularly those who feel that the change will have no positive benefits for them. Other people may resist change simply because they prefer the status quo. Organisations need to ensure that they have strategies in place to manage resistance to change and this should be part of the overall model that they adopt for managing the change. Once in place, progress towards change will need to be monitored.
Learners will develop an understanding og the models of strategic change and the role that stakeholders play in this process. They will then examine the need for change in a selected organisation and plan the implementation of a model for change.
Learning outcomes and assessment criteria
1. Understand the background to organisational strategic change
1.1 Discuss models of strategic change
1.2 Evaluate the relevance of models of strategic change to organisations in the current economy
1.3 Assess the value of using strategic intervention techniques in organisations
2. Understand issues relating to strategic change in an organisation
2.1 examine the need for strategic change in an organisation
2.2 asess the factors that are driving the need for strategic change in an organisation
2.3 assess the resource implications of the organisation not responding to strategic change
3. Be able to lead stakeholders in developing a strategy for change
3.1 Develop systems to involve stakeholders in the planning of change
3.2 Develop a change management strategy with stakeholders
3.3 Evaluate the systems used to involve stakeholders in the planning of change
3.4 Create a strategy for managing resistance to change
4. Be able to plan to implement models for ensuring onging change
4.1 develop appropriate models for change
4.2 plan to implement a model for change
4.3 develop appropriate measures to monitor progress
1 Understand the background to organisational strategic change
Models: John P Kotter’s eight steps to successful change; Kubler-Ross five stage transition (grief) cycle, Prosci’s five building blocks ADKAR (awareness, desire, knowledge, ability, reinformcement) model; McKinesey’s 7s (strategy, structure, systems, shared values, skills, style, stuff) framework; Kurt Lewin’s change management model – unfreeze, transition and refreeze; Burke-Litwin’s causal change model; action research; gap analysis
Strategic interventions: teambuilding consensus and conflict, game play, contingency theory, autocratic versus partcipative style, proactive and reactive, creating synergy; human process interventions; techno-structural interventions; human resources management interventions; organisational and external environment interventions.
2. Understand issues relating to strategic change in an organisation
Need for change: reasons for change eg changes in markets, economic downturns, changes in global markets, customer expectations, competitive edge, budget pressures, legislation, size, demographics, mergers, acquisitions, change in mission, restructuring operations, new technologies, major collaborations, rightsizing, new programmer such as Total Quality Management (TQM), re-engineering
Factors driving the change: change drivers eg economics, political factors, environmental, financial pressures, new markets, loss of markets, technological advances, transition to a new chief executive, funding cuts, need to be competitive.
Resource implication: human resources eg restructuring, interviewing and hiring, redundancies, training; physical resources eg equipment, vehicles, building; financial resources eg costs of training, redundancy costs, relocation cost; new building, refurbishment of existing buildings.
3. Be able to lead stakeholders: stakeholders analysis, systems modelling, systems and sub-systems, input transformation-output modeling, multiple cause diagrams, ‘tropics’ factors, configuration, divergence and convergence, functional and divisional structures, cultural web, images of organisations, team development, influencing skills, awareness raising, commitment development
Involving stakeholders in the change management strategy: six steps stakeholder circle identify stakeholders, prioritse stakeholders map their profiles, develop an engagement strategy optimise their support monitor changes, methods of involvement eg dialogue with individuals and groups, meetings, presentations, group facilitation, team building, coaching, delegating, developing and sharing a change plan.
Resistance to change: types of resistance eg individual versus collective, passive versus active, direct versus indirect, behavioural versus verbal or attitudinal, minor versus major, resistance to the content of change, resistance to the process of change.
Strategies: eg open communications, education, involvement, forums, listening to stakeholders, feedback, addressing needs, ownership of the change, change champions, communicate the vision, getting the support of all key power players, focus on the positives, delivering training programmes.
4. Be able to plan to implement models for ensuring ongoing change
Plan to develop appropriate models for change: choice of appropriate model eg John P Kotter’s eight steps to successful change; Kubler-Ross five stages transition (grief) cycle; Prosci’s five building blocks ADKAR (awareness, desire, knowledge, ability, reinforcement) model; McKinsey’s 7s (strategy, structure, systems, shared values, skills, style, staff) framework; Kurt Lewin’s change management model – unfreeze, transition and refreeze; Burke-Litwin’s causal change model; action research; gap analysis
Plan to implement a model for change: organisational development. Business Process Re-Engineering (BPR), learning organisation, Kaizen, delayering and right-sizing, matrix organisations, network organisations, adhocracy, virtual organisation, push and pull strategies, conflict handing, transformational leadership, empowerment, consultation, contextual planning, contingency planning, adjustments, flexibility.
Develop appropriate measures to monitor progress: eg goal-based evaluation, process-based evaluation, outcome-based evaluation, regular reports, meetings, quality circles, progress reviews, milestones, deadlines.