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1、Strategy in Action14: Leadership and Strategic ChangeLearning outcomes (1)Identify types of required strategic change.Analyse how organisational context might affect the design of strategic change programmes.Undertake a forcefield analysis to identify forces blocking and facilitating change.Learning
2、 outcomes (2)Identify and assess the different styles of leading and managing strategic change.Assess the value of different levers for strategic change.Identify the pitfalls and problems of managing change programmes.Key elements in managingstrategic changeDiagnosis Leading and managing change Leve
3、rsforchangeManagingchangeprogrammesManaging change key issuesFour 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
4、of doing things is essential.Leadership matters good leadership of change at all levels is needed.Diagnosing the change contextTypes of changeContext of changeForcefield analysisTypes of strategic changeFigure 14.2 Types of changeSource: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategi
5、c Change, 3rd edition, Prentice Hall, 2007Types of strategic changeFour 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 str
6、ategy and culture.Evolution cultural change is required but this can be accomplished over time.The importance of contextFigure 14.3 The Change KaleidoscopeSource: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, Prentice Hall, 2007Forcefield analysisA forcefield analysis provi
7、des an initial view of change problems that need to be tackled by identifying forces for and against change.Various concepts and frameworks are useful here: Mapping activity systems. Stakeholder mapping. The culture web. The 7-S framework.A forcefield analysis for the UK forestry commissionIllustrat
8、ion 14.2Strategic leadership rolesLeadership is the process of influencing an organisation (or group within an organisation) in its efforts towards achieving an aim or goal. Three key roles in leading strategic change: Envisioning future strategy. Aligning the organisation to deliver that strategy.
9、Embodying change.N.B. Middle managers have a key role in leading change as well as senior managers.Newcomers and outsidersOutsiders can also play an important role in strategic change.These could include:A new chief executive from outside the organisation can bring a new perspective.New management f
10、rom outside can also increase the diversity of ideas.Consultants are used to help formulate strategy or to plan the change process.Styles of strategic leadershipSituational leadership successful strategic leaders are able to adjust their style of leadership to the context they face.Two approaches:Th
11、eory E: the pursuit of economic value; top-down; hard levers of change; emphasis on changes of structures and systems, financial incentives, portfolio changes, downsizing.Theory O: the development of organisational capability; emphasis on culture change, learning, participation in change programmes
12、and experimentation.A combination of the two approaches may be required and can be beneficial.Styles of managing changeEducation/ DelegationParticipationCollaborationDirection CoercionStyles of Managing ChangeStyles of managing change (1)Education and delegation Small group briefings to discuss and
13、explain things. The aim is to gain support for change by generating understanding and commitment.Advantages Spreads support for change. Ensures a wide base of understanding.Disadvantages Takes a long time. For radical change it may not be enough to convince people of the need for change. Easy to voi
14、ce support, then do nothing.Styles of managing change (2)Collaboration Widespread involvement of the employees on decisions about what and how to change.Advantages Spreads not only support but ownership of change by increasing levels of involvement.Disadvantages Time-consuming. Little control over d
15、ecisions made. May lead to change within existing paradigm.Styles of managing change (3)Participation Involvement of employees in how to deliver the desired changes. May include limited collaboration over aspects of how to change as well as what to change.Advantages Spreads ownership and support of
16、change, but within a more controlled framework. Easier to shape decisions.Disadvantages Can be perceived as manipulation.Styles of managing change (4)Direction Change leaders make the majority of decisions about what to change and how. Use of authority to direct change.Advantages Less time-consuming
17、. Provides a clear change of direction and focus.Disadvantages Potentially less support and commitment, and therefore proposed changes may be resisted.Styles of managing change (5)Coercion Use of power to impose change.Advantages Allows for prompt action.Disadvantages Unlikely to achieve buy-in with
18、out a crisis.Levers for changeA compelling case for changeChallenging the taken-for-grantedChanging operational processes and routinesSymbolic changesPower and political systemsOrganisational rituals and changeTable 14.2 Organisational rituals and changePolitical mechanisms in organisationsTable 14.
19、3 Political mechanisms in organisationsChange tacticsTiming: Building on an actual or perceived crisis. Exploiting windows of opportunity. Symbolic signalling of time frames.Visible short-term wins the demonstration of such wins can galvanise commitment to the wider change strategy.Turnaround strate
20、gy (1) A turnaround strategy is where the emphasis is on speed of change and rapid cost reduction and/or revenue generation.Turnaround strategy (2) Elements of turnaround strategies:Crisis stabilisation.Management changes.Gaining stakeholder support.Clarifying the target market(s) and core products.
21、Financial restructuring.Turnaround strategy Table 14.4 Turnaround: revenue generation and cost reduction stepsManaging revolutionary changeManaging change in such circumstances is likely to involve:Clear strategic direction.Combining rational and symbolic levers.Multiple styles of change management.
22、Working with aspects of the existing culture.Monitoring change.Managing evolutionary changeManaging change as evolution involves transformational change, but implemented incrementally. This requires:An empowering organisation.Clear strategic vision.Continual change and commitment to experimentation.
23、Identifying interim stages and targets.Use of irreversible changes.Sustained top management commitment.Winning hearts and minds.Why change programmes failResearch into why change programmes fail indicates seven main failings:Death by planning.Loss of focus.Reinterpretation of change in terms of curr
24、ent culture.Disconnectedness.Behavioural (only) compliance.Misreading scrutiny and resistance.Broken agreements and violation of trust by management.Summary (1)Types of strategic change differ in terms of:extent of culture change required;incremental change or urgencyAspects of organisational context (as shown in the Change Kaleidoscope) include:the resources and skills that need to be preserved, the degree of homogeneity or diversity in the organisation, the capability, capacity and read
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