Strategic Change
Aims of the Session
• To outline key components in the
management of change
• To introduce key content components in the
management of change
• To detail the McKinsey 7 S framework
Management of Change
“There is nothing permanent except change”
Heraclitus of Ephesus (Greek philosopher remembered for his cosmology, 540-480BC)
Managing Change
“There is nothing more difficult to take in hand,
more perilous to conduct, or more uncertain
in its success than to take the lead in the
introduction of a new order of things”
(Machiavelli 1469 - 1527)
Context
Content
Practice
Causes of Change
• Environment
– Shifts in economy; competitive pressures; legislative
changes
• Business Relationships
– New alliances; acquisitions; partnerships, etc may require
changes to organisational structures
• Technology
– Inevitably can change the way an industry needs to
operate
• People
– Senior management change; alterations in staff profiles
Tichy, N. 1983
Management of Change
• Key Elements:
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Necessity for Change
Types of Change
Timing
Barriers
Culture
Styles
Leadership & Power
Process/ Techniques (Change agents)
Communication
Monitoring & Control
Managing Change
• Involves:
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–
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new skills
new attitudes
new products
new processes
new businesses
new paradigms
Types of Change
• Dramatic/ Transformational/
Revolutionary
• Incremental/ Evolutionary
• Active
• Passive
Types of Change
Corporate
Corporate Transformation
Revolutionary
Business Scope Redefinition
Scope of Process
Business Network Redesign
Business Process Redesign
Internal Integration
SBU
Localised Exploration
Time?
Evolutionary
Emergent Approaches to Change
• Learning Theory
• Learning organisations perpetually seek change
• Team learning; Sharing of views and visions; Exploration of
the organisation; Systems Thinking
•Senge, P. 1990
• Five Factors Theory
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Environmental Assessment
Leading Change
Linking Strategic & Operational change
Human resources as assets and liabilities
Coherence in the management of change
(Pettigrew, A. & Whipp, R. 1991)
Actors of Change
Uncertain
Consequences
of Change
Certain
• Wait & See
• Hope
• Uncertainty
• Fear
• Anxiety
Indecisives
Promoters
• Joy
• Motivation
• Enthusiasm
Positive
Opponents
• Disappointment
• Resignation
• Disapproval
• Resistance
Negative
Attitudes Towards Change
Kruger, W. 1996
Resistance to Change
• 3 Inherent Problems
– the need to motivate changes in behaviour of
individuals
– to manage the transition
• Lewin’s 3 stage model: Unfreeze; Change;
Refreeze
– to shape the political dynamics, e.g. power structures
(Pettigrew 1975)
Activity
• Consider how you reacted to major changes
that you have been involved with.
• What were the main thoughts and emotions?
10 most common resistors to change
• Loss of control
• Loss of face
• Excessive personal
uncertainty
• Avoid surprises
• Loss of competence
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Loss of identity
More work
Past resentments
Unintended
consequences
• Real threats
Kanter, R. M. 1984
Overcoming resistance to change
• People issues (approach)
– Education &
communication
– Participation &
involvement
– Facilitation & support
– Negotiation & agreement
– Manipulative and cooption
– Explicit & implicit coercion
• Organisation (& People)
– seek areas of agreement
– Explore “knock-on” effects
– Support key opinion
leaders
– Identify resistance (real
resistance)
– Show potential benefits
– Do not disguise your
feelings
McKinsey 7 S Framework
• The 7S model can be used in a wide variety of
situations where an alignment perspective is useful,
for example to help you:
– Improve the performance of a company;
– Examine the likely effects of future changes within a
company;
– Align departments and processes during a merger or
acquisition; or
– Determine how best to implement a proposed strategy
McKinsey 7 S Framework - Content
Structure
Strategy
Systems
Subordinate Goals
(Value System)
Skills
Style
Staff
Applying the 7 S Framework
• A detailed analysis is required because the model covers almost all aspects of
the business and all major parts of the organisation.
• The seven components described are normally categorised as soft and hard
components.
• The softer components of the model are difficult to change and are the most
challenging elements of any change-management strategy.
• It is too easy to fall into the trap of only concentrating on the hard factors as
they are readily available from organisations' reports etc.
• You should not just write about these components individually but also
highlight how they interact and affect each other.
• This re-inforces the relational element that we have explored in a number of
previous models
Higgins – 8 S Framework
Environment
Structure
Strategy
STRATEGIC
PERFORMANCE
Systems
Subordinate Goals
(Value System)
RESOURCES
= Performance
Style
Staff
Higgins, 2005
Activity
• We have considered a number of models within
the module.
• How do you think that they can help to manage
change?