U-3 Strategic Change Management

1

LONDON COLLEGE OF ACCOUNTANCY AND MANAGEMENT

Programme: BTEC Extended Extended Diploma Diploma in Stra Strattegic egic Managemen Managementt & Leadersh Leadership ip Leve Levell ± 7

Assignment Title:

Strategic change Management anage ment (Unit-3)

Student Name:

Malik K.S Awan

Student ID:

LCMA/PB/10439 LCMA/PB/10439

Date Issued:

01 October 2010

Final Submission Date:

10 December 2010

MODULE TUTOR: TUTOR: Sabi abir Hussa Hussaiin Jafar i sabi sabirhu rhussai ssainjafar i@ho [email protected] mail.com om

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Table of contents

No

Topics pics

Pages no

P1

Compare and contrast at least three established models models of change management

P2

Associate the examples of some organisations with the selected models

P3

Assess the the value of using strategic intervention techniques in these organisation

P4

Examine the need for strategic change in the selected organisations

P5

Assess the factors/ drivers that are driving the need for strategic change the selected organisations

P6

Assess the the financial, human and physical implementations implementations of of the organisations not responding to strategic st rategic change

P7

Develop appropriate and workable system to involve stakeholders the organisation in the planning of change

P8

Develop

an appropriate

change change

management management

strategy strategy

for

the the

organisation with the involvement of its stakeholders P9

Evaluate the systems used to involve stakeholders in the the planning of change management strategy

P10 Create a workable and appropriate strategy for managing resistance to change in their selected s elected organisation P11

Develop appropriate models models for ongoing change change in their selected organisation

P12

Make plan to implement a models for change in the selected organisation considering its internal and external circumstances

P13 Develop practical, workable workable and appropriate measures measures to monitor progress the change management model References













3

P01: Compare and contrast at least three established models of change management roduction on Introducti

of t of three model models

John P.Ko .Kotter's tter's eight step change method; first three steps focus on de-freezing the

organisation; the next three make the change happen, and the last step re-freezing. 1. Increase urgency rgency - inspire people to move. 2. Build Build the guid uiding team - get the right people in place. 3. Get the vision r ight ght - get the team to establish a simple vision and strategy, communicate the essentials, respond to people's needs. 4. Empower action ction - Remove obstacles, reward and recognise progress and achievements. 5. Creat reate shor t-term t-term wins - Set aims that are easy to achieve, finish current stages before starting new ones. 6. Don't on't let up - Encourage ongoing progress reporting - highlight achieved and future milestones. 7. Make change stick tick - Reinforce the value of successful change via recruitment, promotion, development of leadership. Kur Kur t Lew Lewiis model model.

Kurt Lewis¶s change management model is existing three stages, unfreezing, change and refreezi ref reezing. ng. Unfreeze y

Understand that change is necessary

y

Getting ready to move comfortable zone

y

Motivate the employee with reward or punishment

y

use Stakeholder Analysis and Stakeholder Management to identify and win the support of key

y

Remain open to employee concerns and address in terms of the need to













4

y

Support the employee with training, coaching and expecting mistakes

Refreeze y

Establishing stability

y

People from new relationships and become comfortable with their routine

ADKAR Mode Modell

ADKAR¶s change management model can help us to plan effectively for a new change. Here are the five elements of ADKAR. 1. Awareness why why change is need 2. Desire to make the change happen 3. Knowledge about how to change it 4. Ability to implement new skills and behaviours 5. Reinforcement to retain the change once it has made

1













5

Comp ompar isons among above menti mention on model models:

1.

Awareness of the business reasons for need to change from ADKAR model ;

John P.Kotter first step increase urgency; inspire people to move, make objectives real and relevant; and Kurt Lewis¶s first step, understand that change is necessary and getting ready to move comfortable zone. 2.

Desire to make the change happen from ADKAR model; John P.Kotter first fir st

step get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency; and Kruit Lewis second step; change is not a even, but involve people in the process. 3.

Knowledge about how to change is the goal of training and coaching from

ADKAR model; and step 3 and 4 from John P.Kotter model; get the team to establish a simple vision and strategy and focus f ocus on emotional and creative aspects necessary to drive service and efficiency; involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against. 4.

Ability to implement new skills and behaviours from ADKAR model; and step 5

from John P.Kotter model, remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognise progress and achievements; and step 2 from Kurt Lewis, support the employee with training, coaching and expecting mistakes and provide plenty of option for employee involvement. 5.

Reinforcement Reinforcement to retain the change once it has made; and step 8 from John

P.Kotter¶s model; reinforce the value of successful change via recruitment, promotion, development of leadership.













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1.

Awareness change to need from ADKAR model; John P.Kotter second step

increase urgency by force; and Kurt Lewis¶s first step, understand what¶s we need to change. 2.

Desire to participate for objectives from ADKAR model; John P.Kotter first

step establish teamwork; and Kruit Lewis second step; preparing ourselves. 3.

Knowledge support the employee by training and coaching from ADKAR

model; and step 3 from John P.Kotter model; a simple clear vision and strategy. 4.

Reinforce to retain the change once it has done from ADKAR model; and third

step from Kurt Lewis model that establishing stability.

P02: Associate Associate the examples of some some organisations with with the selected models models above: Firs Firstt case case stud tudy Br Br itish itish Pet Petrol roleum

London-based BP is the third largest global energy company, BP reported revenues of $367.1 billion in 2008.















7

y

BP emphasis on team building to engaged, employees must understand the case for change.

y

Celebrating success, recognizing achievement and making people feel good about the business.

Second case stud tudy Tf Tf L

Transport for London (TfL) manages London¶s buses, the London Underground, the Docklands Light Railway and London Trams, London River Services, Victoria Coach Station and London¶s Transport Museum, a 580km network of main roads. Associate examples of Tfl are as under: y

Establishing strong IT department

y

Provide early visibility and clarity of TfL¶s supplier diversity requirements

y

Develop a mutually supportive and auditable action plans to close gaps

y

Provide a process and toolkit which can be applied to contracts and suppliers in different categories categories

y

Provide a process and toolkit which can be applied to contracts and suppliers in different categories categories

Third case stud tudy Marks Marks & Spen Spenc cer World

UK.

wide Marks and Spencer is one of the best known high street retailers in the













8

y

M&S understand different cultural people, and keep the food and cloths regarding local customer requirements.













9

2.

Game play

Game theory is complex and extensive science. Everyone is

trying to achieve some kind of µpayoff¶ or benefit; organisation and stakeholders are its own µpayoff¶ 3.

Contingency Theory

is a class of behavioural behavioural theory that there is

not best way to organize a corporation, to lead a company, or to make decisions, instead, the optional course of action in contingency upon the internal and external situation. 4.

Autocratic Autocratic versus participative styles

The Autocratic Autocratic leadership leadership style is

mostly linked to a military style, where the commander gives orders and the troops follow. In the participative leadership style, managers encourage groups members to participate in the business decisions. 5.

Reactive and proactive

The reactive organisation is non-profit non-prof it is continually

fundraising and then spending whatever funds are obtain. The proactive organisation sets a fund, f und, targets and raising funds until the target hit. 6.

Creating synergy

As a facilitator, facilita tor, how can you help create synergy in the

group you are supervising? A synergetic atmosphere mostly depends on how you effectively guide and manage the group. 7.

Human Process interventions interventi ons

Human process interventions interventio ns particularly particularl y

helpful during change projects in organisations where there is some combination of the following: many new employees, different cultures working together, conflicts,













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10.

Organisational and external Environment

Administrative/legal, Administrative/l egal, technical,

political, social and cultural contexts, the demand and needs of external clients and stakeholders and relations with other permanent institutions.













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2.

Economic downturn

Here organisations organisation s must have focus on financial

performance; including in cash flow, earnings, cost reduction and capital. 3.

Change in global market In change in global market; the organizations build

up their set up abroad; independently or with collaboration with another company. 4.

Customer expectations

Successful fulfilment of a customer's order is about

meeting their expectations in terms of delivering the product on time and keeping them informed of any unforeseen delays. 5.

Competitive edge

Organisation need information about customers demand;

try to implement quality and new products and take competitive edge against organisation organisation competitor. 6.

Budget pressure

To avoid from budget pressure you must keep your

financial record update and use a cash flow bitterly. 7.

Legislation

The government existing law and changing law externally externall y effect eff ect

the organisation. organisation. 8.

Demographic

Segmenting a population into demographics allows

companies to assess the size of a potential market and also to see whether its products and services are reaching that company's most important consumers. 9.

Merger and Acquisition

The different differe nt organisations merge for better capture















12

13.

Restructuring Restructu ring operations Organisation where restructuring operations is

more important either whole system need to restructuring operations or some parts like restructuring operations only for workforce, production, cost or strategy. 14.

New Technologies New technology technol ogy can create

vast changes change s to the

organisation. Technology can change the production process or the working conditions;

15.

and

these

changes

Major collaborations

may

influence

the

employee

skills.

Organisations build collaboration for saving

the costs or competitive edge with another alliances. 16.

TQM Total Quality Management (TQM) is an approach that seeks to improve

quality and performance which will meet or exceed customer expectations. 17.

Re-engineering

Business process reengineering (often referred to by the

acronym BPR) is the main way in which organisations become more efficient and modernize.













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b.

Money and Banking:

Money in circulation dictates the paying

power or rather the demand of the consumers and the banking facility dictates the borrowing capacity of individuals as well as the business. c.

Economic growth and development: Among all the economic factors affecting business environment, development is the most important one, as the business has to cater to the demand of an economically dynamic society.

d.

Income and employment: The per capita income and employment demand of the rate of wages and also the purchasing power of the people.

e.

Trade Cycles: Trade cycles are related to the costs of goods and commodities in an economy.

2.

Political Factor

In political factor the government change the prices of

daily uses, tax policy, labour law, environmental law, political stability or un-stability













14

y

Solvency or insolvency; solvency is better for financial and insolvency is undergoing bankruptcy

5.

New Market Organization launching new product in the market to get a better

profit edge against his competitor.













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and after that if the organization is not too productive its needs to rightsizing of the staff that may be to cause of redundancies expanses. Some time not responding to implement when you change in senior management level. Phy Physica ical resou resour ces

Physical resources are also not responding to implication of strategy; when we need to change the equipment with new equipment; because the old equipment is not working properly or slowing slowing the production production progress; and staff staff using vehicles and and delivery vehicles to supply its products into the market and we change the building for its demographic location to easy access in to market. Finan Financi cia al Reso Resou ur ces

The organization look that they have enough fund for staff training and skills to improve their ability and get better production results. At the same time organization company would be receiving earnest gritty stuff about how staff reductions would be cause of redundancy cost; and when we relocate from one building or area to













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a.

Know the stakeholders and the purposes.

b.

Identify Identif y the boundaries around the situation.

c.

Identify Identif y the main features feat ures or behaviour of the specific system of interest.

3.

System and Sub-system: Each component are sub-systems; sub-sy stems; all stakeholder stakeholde r

are sub-systems; for example London tfl map is system and security, signal, automatic announcement are sub-system. 4.

Input/output Input/out put transformation:

Input a way where we spend money; ie over

supplier, labour, rent, equipment. Output is the plan, price, quality and more efficiency to get good money. 5.

Multiple cause¶s diagrams:

agreement and minimum conflict.

In this

way we try

to get maximum















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10.

Culture web: There

are

different diff erent

levels

of

management:

executive

management to middle management to operational management; in organisation all levels are work as a web culturing system. 11.

Image of organisations:

The most important for the shareholders they look

the image of organisation. The senior management and advertising campaign are most effected to image of organisation; for example different multiple organisations took the famous gulf star, Tiger W ood for their product publicity; but after his sex scandal these organisations are badly effected and they cancelled the contract with Tiger Wood.













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The stakeholders are then ranked based on their 'index' (the higher the index value, the higher the priority) to produce a prioritized list of stakeholders. y

Map thei heir prof ile ile to understand their credibility; for supplier we make profile

his truthfully, frequency and reliability: for employees we make profile we look experience or inexperience employees; for shareholders we make profile how money he put for our organisation: and for customer we look how much some customers are more profitable or less profitable. y

Devel evelop an engagement engagement strat rategy egy The organisation must develop an

engagement

strategy,

by

building

and

implementing

communication plan and share it with stakeholders.

an

effective













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3.

Presentation Presentatio n To easy communicate to all stakeholders by using slides. In

presentation the organization shows different diagram and analysis to show their future planning. 4.

Group facilitation

Group facilitation help a group improve improve how it identifies

and solves problems and makes decisions, to increase the group¶s effectiveness. 5.

Team building

In team building process we solve the conflict among the

stakeholders to better run of organization. 6.

Coaching

We

give training and knowledge to build the stakeholders













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4.

Behavioural versus verbal or attitudinal attitu dinal Behavioural resistance we can see it

all resolve it quickly but attitudinal resistance we feel it but can not look it this resistance we understand very late. 5.

Minor versus Major Minor resistance can can be changed with little efforts i.e

handle with individual, passive and behavioural resistance; and in major resistance we need more efforts to solve this resistance i.e collective, active and attitude resistance. 6.

Resistance is process of change The target is the case does not agree with















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5.

Listening to Shareholders Shareholders are big assets for organisation.

must listen their censuses, profit and benefits and their suggestion to change.

We













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P.11: Develop appropriate ap propriate organisation?

models for

ongoing change

in their selected sele cted













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distribution or offer them some financial benefit package. Trade Unions and employees will be consulted as part of the review and all recommendations.













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P-12: Make plan to implement a model for change in the selected organisation considering its internal and external circumstances?













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7.

Network organizations organizatio ns

The whole organization is work as network and its

is quick process for get better achievement. market, sale problem tell to head of sale.

Marketing problem problem tell to head of































































U-3 Strategic Change Management

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