STRATEGIES IMPLEMENTATION & MANAGING CHANGE
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Transcript of STRATEGIES IMPLEMENTATION & MANAGING CHANGE
STRATEGIES IMPLEMENTATION & MANAGING CHANGE
Prof.dr.dr.dr.h.c. Constantin Bratianu
Faculty of Business AdministrationAcademy of Economic Studies
Bucharest
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.
MODELS OF PLANNED CHANGE
• The action research model
• The three-steps model
• The phases of planned change model
THE ACTION RESEARCH MODEL
• Action Research has been designed to solve social and organizational problems.
• It is research on action to make that action more effective. Action refers to programs and interventions 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.
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.
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.
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 may revert 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.
How can you transform an ice cube into a cylinder ?
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
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 from one 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.
THE 4-PHASE MODEL
• Bullock and Batten (1985) developed an integrated four-phase model for planned change:
1.Exploration phase2.Planning phase3.Action phase4.Integration phase
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 which defines each party’s responsibility
PLANNING PHASE• Analysis and diagnosis of the problem to be
solved
• Establishing change goals and designing the appropriate actions to achieve these goals
• Establishing priorities and sequence requirements for change implementation
• Allocation of tangible and intangible resources for each change sequence
ACTION PHASE• Identify all possible resistances to change and
their nature
• Evaluate the inertial forces of each resistance
• Choose adequate approaches to overcome each resistance
• Evaluate the progress of change implementation
• Perform corrections to the initial plan if necessary
INTEGRATION PHASE
• This phase begins when the changes have been successfully implemented
• It is concerned with consolidating and stabilising the changes
• Reinforcing the new behaviours through feedback and reward systems
• Diffusing the successful aspects of the change process through the organization
• Train managers and employees to monitor the changes and seek to improve upon them
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
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
THE EMERGENT CHANGE APPROACH• It is a new approach which lacks agreed methods
and techniques
• This approach stresses the developing and unpredictable 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
BOTTOM-UP APPROACH
• Planned change is implemented more likely through a top-down approach
• Emergent change is implemented more likely through 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 they must create adequate conditions for supporting change
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
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
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
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
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
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
ENVIRONMENT
Stable Turbulent
Planned Emergent
APPROACHES TO CHANGE