sm 06 strategies implementation
TRANSCRIPT
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STRATEGIES IMPLEMENTATION
& MANAGING CHANGE
Prof.dr.dr.dr.h.c. Constantin Bratianu
Faculty of Business Administration
Academy of Economic Studies
Bucharest
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PLANNED CHANGE
� The basic idea of this theory is that change can
be planned and managed as a controlled process.
� Since change has been considered at the
organization level, all research focused on
Organizational Development (OD).
� Kurt Lewin founded in 1945 the Research Center
for Group Dynamics, with a huge influence.
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MODELS OF PLANNED CHANGE
� The action research model
� The three-steps model
� The phases of planned change model
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THE ACTION RESEARCH MODEL
� Action Research has been designed to solvesocial and organizational problems.
� It is research on action to make that action moreeffective. Action refers to programs andinterventions designed to solve a problem or improve a condition.
� The main idea is that effective solving of organizational problems must involve a rational,and systematic analysis of the issues in question.
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THE ACTION RESEARCH (I)
� The Action research comprises 3 components:
- the organization (top management)
- the subject (people where change is done)- the change agent
� The 3 entities must agree to form a group, under
mutually acceptable and constructed terms of reference.
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THE ACTION RESEARCH (II)
� The main difficulty is to gain the commitment of
both the organization and the subject of the
change.
� The strategy was to use top-down change
implementation based on top managers authority.
� This approach is not working well in large
organizations and where the distance to power is
relatively small.
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THE 3-STEP MODEL
� The basic idea was that change toward a higher
level of group performance is frequently short
lived. After some time, group behaviour mayrevert to the previous pattern.
� This indicates that it is not enough to define
change as a target and to stop. It is important to
include also the group performance in the new
state of change.
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How can you transform an ice cube into a cylinder ?
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Kurt Lewin¶s Change Model
Proposed by K. Lewin (1958) for implementing change in an
organization through 3 stages:
Change
Unfreezing
Organizational
culture
Re-freezing
Organizational
culture
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PHASES OF PLANNED CHANGE
� The concept of planned change implies that an
organization exists in different states at different
times and that planned movement can occur fromone state to another.
� For planned change it is important to understand
not only the change but also the states through
which the organization must pass.
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THE 4-PHASE MODEL
� Bullock and Batten (1985) developed an
integrated four-phase model for planned change:
1.Exploration phase
2.Planning phase
3.Action phase
4.Integration phase
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EXPLORATION PHASE
� Becoming aware of the need for change
� Searching for outside assistance (a consultant/facilitator) to assist with planning and
implementing the change
�
Establishing a contract with the consultant whichdefines each party¶s responsibility
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PLANNING PHASE
� Analysis and diagnosis of the problem to besolved
�
Establishing change goals and designing theappropriate actions to achieve these goals
� Establishing priorities and sequencerequirements for change implementation
� Allocation of tangible and intangible resourcesfor each change sequence
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ACTION PHASE
� Identify all possible resistances to change andtheir nature
� Evaluate the inertial forces of each resistance
� Choose adequate approaches to overcome eachresistance
� Evaluate the progress of change implementation
� Perform corrections to the initial plan if necessary
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INTEGRATION PHASE
� This phase begins when the changes have been
successfully implemented
�
It is concerned with consolidating and stabilisingthe changes
� Reinforcing the new behaviours through
feedback and reward systems
�
Diffusing the successful aspects of the changeprocess through the organization
� Train managers and employees to monitor the
changes and seek to improve upon them
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LIMITATIONS (I)
� The basic hypothesis that an organization exists
in different states at different times and that
planned change is a transition from one state to
another
� The dynamics of business environment imposes
organizational change to be more a continuous
and open-ended process, than a set of discrete
and self-contained events
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LIMITATIONS (II)
� Its emphasis on incremental change and its
inability to incorporate radical, transformational
change
� It assumes that one type of approach to change is
suitable for all organizations, all situations and all
times
� Turbulent times demand different responses in
varied circumstance
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THE EMERGENT CHANGE APPROACH
� It is a new approach which lacks agreed methods
and techniques
�
This approach stresses the developing andunpredictable nature of change
� Change is viewed as a process that unfolds
through the interplay of multiple variables within
the organization
� There is no single prescription for managing
organizational transitions successfully
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BOTTOM-UP APPROACH
� Planned change is implemented more likelythrough a top-down approach
� Emergent change is implemented more likelythrough a bottom-up approach
� The bottom-up approach requires a major change
in the role played by senior managers. Instead of planning, directing and controlling change theymust create adequate conditions for supportingchange
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IMPORTANT FEATURES
� Though the concept of universally applicable
rules for change are rejected, supporters of
emergent change stress 4 necessary
organizational features:
- organizational structure
- organizational culture
- organizational learning
- managerial behaviour
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ORGANIZATIONAL STRUCTURE
� This is seen as playing a crucial role in defining
how people relate to each other and in
influencing the momentum for change
� The more flexible and flatter organizational
structure to increase the responsiveness to
change, by developing authority of all managers
and responsibility
� Organizational structure based on teams and
networks
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ORGANIZATIONAL CULTURE
� If change is developing in concordance with the
cultural values, organizational culture will
support the change
� If change is developing against the cultural
values, organizational culture must be changed
along with change implementation
� Creating a culture for change means that change
has to be part of the way we do things around
here
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ORGANIZATIONAL LEARNING
� Change is an excellent opportunity to learn new
things and then to adapt the organization to the
new external business environment requirements
� Organizational learning is based on the double
loop model (single loop model = solving
problems in a programmed way)
� Organizational learning creates a pro-active
approach to change
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MANAGERIAL BEHAVIOUR(I)
� The role of managers is not to plan and to control,
but to create an internal environment able to accept
and to support change
� The key organizational elements are:
- Information gathering
- Communication- Learning
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MANAGERIAL BEHAVIOUR (II)
� For supporters of the emergent approach, the
essence of change is to move from the known to
the unknown
� In this situation, it is essential for managers to be
able to tolerate risk and cope with ambiguity
� Managers must develop the skills of making
decisions in situations with high levels of
uncertainty
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ENVIRONMENT
Stable Turbulent
Planned Emergent
APPROACHES TO CHANGE