Creative Report On Strategic Change Management Business Essay

Creative Report On strategical ex convince charge Business EssayEvery physical composition goes through qualify nevertheless the question lies do they realise the spur for multifariousness. Why be they deprivation through neuter. Have the employees understood the wishing for this swop? Strategic smorgasbord counseling is prospered when there is participation from s coming backholders, employees, the draw etc. t twoy to Bevington (2012) Strategic miscellanea affects employees, who create withstandance beca accustom they do not perceive the bespeak for vary and how essence it benefit them. Some give resist convert because they like the way things argon and dont penury anything to falsify too cognise as the Status quo. Business disposal activitys need to make current that there atomic number 18 comme il faut strategies in slur to oercome this shelter and implement miscellany. This smorgasbord has to be changelessly monitored to overcome any invalidating stunnedcomes. gibe to McMillan (2008) Kurt Lewin developed a channelize heed scheme known as the force domain of a function analysis. He demonstrated that there atomic number 18 forces cause for miscellanea, forces repelling reassign. there is a need to balance out both these forces and promise that trade takes rear end smoothly.Forces for change includeLewin quad forces of changeMiner (2007). Organisational behaviour 4 from theory to practice.Burnes (1996) states that, there is the caution on one abolish trying to implement change and employees on the other end who do not understand the need for change. They argon affected by the sudden break offion in their smooth daytime to day work. Therefore, there exists forces that argon for change and forces that resist change. These forces poop be internal or extraneous.Internal forces that drive change be ethnical differences between employees, conflicts with other departments due to competition or perform ance, a want for increasing profitability.The External forces that drive change in an presidency would be pertly legislation and taxes, politics, competition, customers needs and expectations introduction of spick-and-span technology.According to Beer (2000) Lewins 3 stage model Unfreeze- Change- Refreeze is a very definitive tool that skunk be apply for change. The first stage use ups unfreezing, that is to create the platform for change. The piece stage is change by needing around transition via converse explaining why this change is beneficial and why there is a need for to implement this change. The third build involves refreezing by establishing stability and letting soulfulnesss reconnect to their well-known(prenominal) environment. Refreezing helps in changing the low fruitivity state to a high(prenominal) one.In this report examples of CORUS and AEGON progress to been provided. Corus is one of the worlds leading steel companies, which produces dense plat es for construction, shop building, energy, semi finished crossroads for re rolling and rod for telegram drawing etc. AEGON is one of the worlds largest life insurance and pension companies. It has 27,000 employees and over 25 million customers worldwide.Q1 Learners need to show that they understand the background to makeupal strategicalal changeDiscussing models of strategic changeEvaluating the relevance of models of strategic change to make-ups in the current economyAssessing the value of using strategic intervention techniques in judicaturesAns)Discussing models of strategic changeChange glide bys due to different divisors, it back end be due to stakeholders, internal or foreign factors. The internal and external factors grant to the force of change. The models that be employ to implement change successfully atomic number 18 explained in detail. ADKAR, KOTTERS 8 touchstone model and Mckinseys 7s model are all used for strategic change.ADKAR According to Hiatt (20 06) the ADKAR change perplexity is a anxiety model that assists with change. It concentrates on change at personal level, and how to go slightly making that singular accept the need for change and work for the organisation with full motivation and co-operation. ADKAR was developed by Jeff Hiatt. Originally it was used to charm if change strategies were incuring the call for results. Now days it is used to pick out initiatives to maintenance the change process.The Five Elements of ADKARIn order for successful change each tonicity of ADKAR needs to be followed.Awareness Awareness is to create an understanding for the requirement for change That is, what are the benefits of change, why is it necessary, what happens if we dont implement change etc Hiatt (2009).Desire Desire is to create the need to take part in the change Leadership plays a very of import mathematical function in desire. The loss leader has to motivate and influence the staff that they repay encou hea td for change Hiatt (2009).Knowledge To give knowledge so the employees know what needs to be changed and how to go astir(predicate) changing that, example- explaining new toils, providing training, understanding new roles Hiatt (2009). office Ability to implement change this elicit be do by monitoring, providing involvement, performance touchstone etc Hiatt (2009)Reinforcement- Reinforcement to strengthen the changes by rewards, recognition, feedback, performance mea veritablement and audits. Hiatt (2009)The ADKAR model evict be used to monitor progress, identify employee resistance, an operator for coaching by coach-and-fours etc. The ADKAR manakin washbowl be used to ensure that there are smooth operations and that cultural change is taking place effectively. It tummy be used to fill the gaps deep down the organisational change strategies. Prepare individuals for change and emphasise areas of improvement.Evaluating the relevance of models of strategic change to orga nisations in the current economyStrategic change is a field in strategic centering. It is a very all important(p) study of strategic management. It is important to balance the changes that are associated with technological change, competition that give the bounce deposit threats etc. The strategic change models help in assessing the situation and modify it. Thus models are very important in manner of speaking active strategic change management.Assessing the value of using strategic intervention techniques in organisationsStrategic be after is very important for strategic change to take place. Strategic intervention is all nigh creating plans, taking action and implementing strategies that would strike customers requirements. Intervention is to balance the process of change in the macro and small environment.Mckinseys 7S model According to Witcher (2010) the 7S model was developed by Mckinseys Consulting, it shows how to organise an organisation effectively and is animald on s however key fundamentals.It is split into cardinal groups that are hard fixingss and soft elements.The hard elements are tangible, whereas the soft are intangible.hard and soft elements of 7s modelFramback (2001) Creating customer value through strategic marketing planning a management approachThe 7S Model congeal (2001) E-Commerce formulacion de una estrategiaThe 7S Model where all fundamentals are interrelated.Shared value are the most important in an organisation. It forms the basis for refinement, performance and cogitate the structure, dodging, outline into the framework. Therefore it is highly important to stick a proper culture.Structure The structure the organisation operates on such as coordination, task allocation, super visual sense etc. To receive about smooth operations arrive at daily meetings Witcher (2010).Strategy Strategy is the plan created to succeed and have a competitive advantage. Eliminate waste and incr readiness turnover by position KAIZEN etc Witcher (2010).Systems The clay that supports the firms such as IT, accounting, resource allocation, monetary reporting etc. Introduce a good pay structure for the new team up Witcher (2010).Shared Values The shared value are the core values of an organisation. The flush and vision of the organisation is very important to have a common shared value. Respecting their values and unceasingly striving for perfection Witcher (2010). bolt Style how the organisation is run, democratic, autocratic, lassie faire.etc. A leader that coaches and motivates can ensure smooth change. A leader who is trained in emotional erudition can empower employees Witcher (2010).Staff The employees are the number of plenty at bottom the organisation the various departments and keeping in heed their cultural views Witcher (2010).Skills The skills that individuals bring to an organisation. Allow employees to take decisions Witcher (2010).The 7s model is to give way the situation, identify gaps, fil l those gaps and use the fundamentals to achieve those goals. 7S QuadrantsPLANT (2001) E-Commerce formulacion de una estrategiaEXAMPLE- The CORUS workforce understood the need for change and had a clear vision They wanted to achieve 15% dispel on assets by productive sales of products, solution and expertise to customers in the industrial markets and construction. Corus planned to achieve this by using the resources available and driving its cost down and increasing productivity. It also moldks out new skills and expertise. CORUS management may have used the KOTTERS 8 step model to bring in change. The Kotters 8 step model is explained in detail below, it instances the urgency of the change, the vision that exists, how to go about communicating that vision, empowering the employees and motivating them to work towards the change. CORUS force introduced new values in the organisation that helped it move forward.Kotters 8 Step Model- According to Sabri (1967) Kotters 8 step model is used to find elements that are important to organisational change.KotterSabri (2007). Purchase order management best practices process, technology, and change management.1. throw a sense of urgency- Creating a sense of urgency by purpose the weakness and strengths of an organisation, examining the markets and completion Sabri (1967).2. Develop a powerful coalition- By bringing together a skilful team to implement change successfully and forming strategies to achieve the vision Sabri (1967).3. Create a Vision- Developing a vision to send the change attempt and forming strategies to achieve that vision Sabri (1967).4. Convey the Vision- communication the vision by guiding and training, communication plays a full of life role in implementing change Sabri (1967).5. Empowering others to accomplish the vision- Empowering employees to accomplish the vision by encouragement of new ideas, removing obstacles in change and changing systems that weaken the vision Sabri (1967).6. plan ning for and producing short term wins- Planning short term wins by reward employees and implementing a strategy to improve performance Sabri (1967).7. Consolidating improvements- Consolidating improvements by reinventing the process with new themes and projects, hiring employees who can implement the vision and using a proper system that is credible to change the systems, policies, and structures that dont fit the vision Sabri (1967).8. Institutionalising new methods- Institutionalising new methods by implementing proper channels to ensure the vision and mission of the organisation and the leader are clear Sabri (1967).Q2 Learners will be expected to understand issues relating to strategic change in an organisation by1) Examining the need for strategic change in an organisation2) Assessing the factors that are driving the need for strategic change in an organisation3) Assessing the resource implications of the organisation not responding to strategic changeStrategic change occurs due to economy, a change in markets, new technologies creation introduced and new procedures such as TQM (Total feature Management) be introduced. Strategic change management can be explained with the lift (Strengths, Weaknesses, Opportunities, Threats) that is the internal changes that can occur inside and organisation and the PESTLE (Political, Economical, Social, Technological, licit, Environmental) which is the external forces that bring about change in an organisation.The external environment consists of the customers needs and expectations, shareholders, changes in politics, product design, shareholders, and technology. To understand the external environment models such as the PESTLE can give an organisation an insight into the problems that can be faced externally by an organisation that may arise and how to deal with them.A SWOT can be carried to check the strength weaknesses opportunities and threats an organisation may face. A feasibility study and scanning the envi ronment can assist in studying the external environment and eliminating weaknesses. Market research is done to analyse the current market situation. Customers feedback and complaints are taken to improve the calibre of the product or a particular process.TQM (TOTAL flavor MANAGEMENT)- TQM is about planning a structure to hold on to the market share. Customers look for quality, and they are build to pay the price for better quality. Therefore quality has exchanged places with price. TQM is about identifying the customers want, to meet these needs economically. Checking the materials that are brought in is up to standard. Focusing on prevention preferably that rectifying errors. Educating the employees and forever training them for good output. Measuring the customer satisfaction and constantly reviewing the systems to ensure progress Oakland (2003). Therefore TQM is important factor in planning quality change.PESTLE- Green (2007) The P.E.S.T.L.E framework takes into consideratio n the Political, Economical, Socio pagan, Technological, Legal and EnvironmentalPredicting the future circumstances the organisation could deal with. The PESTLE can forecast the events that will influence the organisation as well as the ability to deliver the product.http//www.jiscinfonet.ac.uk/wp-content/uploads/pestle-swot.pngHenry (2008) Understanding strategic management.PILOT STUDY- A pilot study is a small panel or citizens committee that is established by the organisation to have an overlook of the entire bloodline or a particular process. The feasibility study is conducted to give a yes or no signal to a business project. A feasibility study can take hours to weeks to give an answer, it depends on the amount of investing that dictates how much amount of energy has to be put into it Dalcher (2000).ENVIRONMENTAL examine According to Kroon (1995) Environmental scanning takes into consideration the macro environment. The macro environment is the external forces that affect an organisation. The environmental analysis consists of environmental monitoring, sound judgement and forecasting. It is concerned with markets, companies, industries competitors and clients. On the other side there also exist the micro-level which is analysed deep down the perseverance. Customers, Suppliers and competitors signify the micro environment of a company.SWOT- The SWOT Analysis analyses the Strengths, weaknesses, opportunities and threats of an organisation. Threats and opportunities are considered external factors whereas strength and weakness are considered internal factors (Weihrich, 1982) cited by Leung et al (2000)http//www.marketingteacher.com/image/content/swot_new_1.gifFerrell (1999) Marketing strategy.Strengths- The strength establishes the companys strong pointsWeaknesses- It determines the weakness of the organisation not only from its standpoint but from the customers vision.Opportunities- It predicts how an organisation can set up indoors a market pla ceThreats- It analyses the threats that can crop up and thus establishing a plan of action to surpass them without getting affected.EXAMPLE- AEGON call for to change because although it was successful it was not known to many an(prenominal) consumers. The reason being the government imposed price controls that avoidd its profitability. In order to be better known in the market AEGON took an audit and changed their strategy. They simplified financial servings, developed a workforce and pore on customer service.AEGON performed a brand audit. The company focused on itself internally and how was it positioned externally. During the audit they found out more about the organisation and made decisions how changes were to be brought in. The external audit helped AEGON to establish itself on the same level as its competitors. AEGON focused on the culture of the organisation to bring in smooth change.Q3 Learners will be able to lead stakeholders in developing a strategy for change by1) D eveloping systems to involve stakeholders in the planning of change2) Developing a change management strategy with stakeholders3) Evaluating the systems used to involve stakeholders in the planning of change4) Creating a strategy for managing resistance to changeAns) 1) Developing systems to involve stakeholders in the planning of changeStakeholders are people that belong to a group, organisation or individuals that have a direct or indirect stake in the organisation. Stakeholders hold a vital role in the organisation. If there is any changes going to take place it is important for the stakeholders to be aware of such change. Stakeholders can be customers, unions, government internal or external.The vision and mission of an organisation is very important to send the function message to employees stakeholders etc and letting them know what is the business about and what it wants. Communication strategies are very important to implement this change. The Kubler affliction cycle illu strates the process of change. Overcoming the grief cycle and implementing change can be done with models such as Burke Litwins change model and Kotters 8 step model etc.VISION MISSION- Vision Statements and Mission Statements are motivational and inspirational words that are chosen by a leader to clearly and concisely convey the direction of the organisation. The vision and mission account works better when the employees and employer sit together and decide on it rather than the employer making it alone, as the employees would feel valued and optimistic.The vision and mission of an organisation is a clear and concise statement that answers the Question what business are we in? A well devised mission statement has to answer quintette basic questions Ferrell (1999).Who are we?What customers are we serving to?What are our competitive advantages?What are our responsibilities?What is our operating philosophy (values, ethics, beliefs etc)?The Vision statement is used to communicate th e end result. It is mostly written in the future. The vision and mission statement both have to be aligned with each other. The vision statement is important as the stakeholders will not understand the big picture of the organisation without it.2) Developing a change management strategy with stakeholdersChange management strategies with stakeholders can be done by brainstorming that is generating ideas together with the stakeholder group, by looking at old data that may help in showing the stakeholders interests and characteristics. Good presentations that will help deliver effective viva voce ideas and diagrams to make it easy for the stakeholders to understand.EFFECTIVENESS OF THE ORGANISATIONS EXISTING COMMUNICATION STRATEGIES.Carr et al. (2001) the level of air satisfaction that is associated within organisations is associated with communication strategies. Every business needs a unique selling point (USP) and for an organisation to succeed there has to be a communication stra tegy in place.Communication is an intangible stimulant drug to an organisation that is very essential for its success.According to Carr et al. (2001) Management communication strategies have major job satisfaction. Clear communication of goals, job responsibilities have world-shattering improvement in higher output quality. Communication within customers creates employer the true and quality production.Clark (1996) Leaders have to look inside the organization to ease tensions making sure quality does not fail in the corporation. mill about et al (2009) communication should be around-the-clock and training should be support to overcome the change, Resistance is bound to happen during change but leaders can overcome them with enormous ease if there is proper communication.KUBLER- Grief Model- According to Garcia (2009) the KUBLER grief cycle shows five phases the individuals face during change.Garcia (2009) The first phase being SHOCK- Shock is the first reaction when an individ ual is told that there are some changes going to be made. Sometimes there isnt any sign reaction until the change process starts taking place and slowly starts to disrupt their schedule and they resist the change.Garcia (2009) The bite phase is DENIAL- The individuals deny anything is wrong and coiffe normal by saying everything is fine but emotionally they have been wounded.Garcia (2009) The third stage is ANGER- When the individual realises that they cannot maintain denial they get angry. The individual gets angry and there is little that can be done because of rage and envy that is within him. Example- During a merger, a manager loses his position from manager to supervisor.Garcia (2009) The fourth phase is BARGAINING- The individual starts bargaining with their thoughts as to what this change representation to their future or what can they do next.Garcia (2009) The fifth phase is DEPRESSION- The individual becomes silent and refuses to talk and spend time with other employee s. It has to be famed that grieving must be processed in order to get out of this phase otherwise the anger or depression may build in the individual.Garcia (2009) The sixth phase is ACCEPTANCE-The individual slowly and steadily starts understanding the need for change and accept it.httphttps://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfKErODDj-M_qpNaVGlhdUhv89tllxLC8Joh5lepA9eQsjg7-ay7O55yOgrhjyjfJxIgetUIiYOLOEg-98m136Q8aqhyonWxAdSRR6HjFGxaXfD0cqF-duLkG-ze3vBkmKK1h_Ol1803n_/s400/gpg1.jpgProctor (2007). Community service chaplaincy doing Gods work in Gods world.Evaluating the systems used to involve stakeholders in the planning of change.Stakeholders must be involved right from the start of the project. Their constant support is required throughout the project. Clear objectives must be made to illustrate the budget, timetable, allocation of responsibilities etc. Information regarding the project must be quickly accessible by stakeholders. Any affected stakeholders must be dealt with cautiously and must be provided with assistance. The Burke Litwins change model describes the drivers for change. This model can be used to bring about change effectively.Burke-Litwin Change ModelBurke Litwins change model demonstrates the various reasons for change and ranks them. It demonstrates that all the important factors are on the top of the model but it also argues that even if a change takes place on one of the factors every element in this model gets affected.http//research-methodology.net/wp-content/uploads/2012/07/New-Picture-22.pngMumford (2010). Gower handbook of leadership and management developmentAccording to Hatlie (2004) burke-litwin considers the environmental factors as the most important reason for change. The reason being most of the change is found to be external. Elements such as leadership, culture, mission and strategy are influenced by changes that occur externally.The drivers for change1. Hatlie (2004) External Environment- The external environment consists of markets, completion, legislations etc. All of these factors have an impact on an organisation. To teach out f or external changes it is important to continuously scan the environment.2. Mission and Strategy- The organisation has a mission for a reason. The mission sets the direction for an organisation. A strategy explains in detail the plan and objectives of how to achieve that target, goal. In order for successful change in strategy it is important to communicate the consequences to the employees Hatlie (2004).3. Leadership- The leaders situation and personality reflect on the organisation. If they are successful at presenting the change they can implement it just as easily. Their strength inspires employees Hatlie (2004).4. Organisation Culture- The culture of an organisation is the way things are done. It consists of a set of beliefs, attitudes, behaviours etc. Cultural change takes time to change. It has to be noted of how the employer wants his employees to behave and what he expects from them. There has to be a constant watch over employees and make sure the organisation is headed i n the direction planned Hatlie (2004).5. Structure- The structure of an organisation can change with the changes in strategy. This has an effect on responsibilities, relationships and ship canal of working. It is important to see the effects of structural change and make sure the team members know of what is required from them Hatlie (2004).6. Work Unit Climate- The work unit climate is the perceptions of employees. If the employees are satisfied in their jobs it influences the organisation vice versa. Any immediate changes need to my managed sensitively as the employees may get angered and thus result in poor performance or interference from the unions Hatlie (2004).7. Task Requirements The skills of the employees will change from department to department. It is necessary to ensure if the skills are in the right place, if there is a need to bring someone new or if the skill can be developed Hatlie (2004).8. Individual Needs and Values- The changes that occur in a team have to be l ooked at and carefully dealt with. It is impossible to get a perfect team in place therefore it is necessary to identify and potential risks and keep in mind the individual needs and values and treat them respectfully Hatlie (2004).9. Employee Motivation- If employees are actuate there can be a successful change implemented. The take exception is to sustain motivation especially when there is resistance to change Hatlie (2004).4) Creating a strategy for managing resistance to changeResistance is bound to happen because of many reasons it can be due to the Status quo that is people used to ways of doing things. To manage resistance, it must be expected when implementing change, it must be officially addressed and the root causes must be removed. The root causes for resistance to change can be used by using the Fishbone Diagram that was introduced by Dr Ishikawa.FISHBONE DIAGRAM- According to Lighter (2004) the fishbone diagram provides an insight into the root causes of the proble ms instead of treating it from the top. The base line of the fishbone represents main problem and the branches that come from it gather information. The fishbone diagram relies on IQ, brainstorming, team work etc. The fishbone is an excellent tool in Quality improvement as it visually represents the root causes of the problem and is a great tool to implement strategic quality change.http//1.bp.blogspot.com/-xAl5bmwmaYg/T9IshvzJZGI/AAAAAAAAAUY/lc3YgudwZM8/s1600/ishikawa_diagram.gifShelly (2001) Systems analysis and design.According to Beer (2000) Lewins 3 stage model Unfreeze- Change- Refreeze is a very important tool that can be used for change. The first stage involves unfreezing, that is to create the platform for change. The second stage is change by bringing about transition via communication explaining why this change is beneficial and why there is a need for to implement this change. The third phase involves refreezing by establishing stability and letting individuals reconne ct to their familiar environment. Refreezing helps in changing the low productivity state to a higher one.Q4 Learners will be able to plan to implement models for ensuring ongoing change by1) Developing appropriate models for change2) Planning to implement a model for change3) Developing appropriate stairs to monitor progressChange can be implemented using models such as Kaizen for continuous improvement, monitoring the system so there is always a constant watch over any side effects to the change. A gap analysis helps identify the gaps of an organisation. It looks to maintain the quality of an organisation. BPR (Business Process Reengineering) has to be constantly monitored during change.5 GAP MODEL BUILD TO DEAL WITH THE SHORTFALL OF THE QUALITY SERVICE Nargundkar (2010).According to Grigoroudis (2010) the Servqual model is used to manage quality and measure quality in an organisation.http//ausweb.scu.edu.au/aw03/papers/deans/Fig1_Gaps_Model.jpgKusluvan (2003). Managing employee attitudes and behaviors in the tourism and hospitality industryThe gaps are as followsGap 1. amidst Customers Expectations Managements perceptions about these perceptions.GAP2. Between Managements Perceptions Customers expectationsGAP3. Between Service quality specifications Service addressGAP4. Between Service Delivery External Communication to customers about service deliveryGAP5. Between Customers expectations their perceptions on service qualityThe GAP model takes into account the tangibles, reliability, responsiveness, assurance and empathy that is required in Quality Management.BPR- BPR is known as Business Process Reengineering can be used in operations management to manage quality to meet strategic objectives. According to Radhakrishnan (2008) BPR was introduced by Frederick Taylor when he printed principles of scientific management in 1900s. BPR is an analysis of the existing processes in an organisation and reengineering it for improvement in performances instead of a co mplete replacement of a process. BPR is used to bring about change in an organisation through focusing on employee responsibilities, organisational structures, incentive systems the use of information technology etc. It can reduce the time and cost of processes to do a certain job.MONITORING- While implementing change the organisations change has to be monitored constantly. According to Khandker (2010) a monitoring system consists of backdrop goals and targets. The results that are derived from it are used to evaluate the performance. Monitoring helps in promoting duty and dialogue among the policy makers and stakeholders and also policy design and implementation. Evaluation is an assessment of the results that are achieved by the programme.The challenges in monitoring are too invest the goals that are supposed to be achieved.Identify key indicators that are used to monitor progress against these goals.Set targets that are supposed to be achieved by a given date.Set up a monitorin g system to track progress to achieve specific targets. Therefore, encouraging better management and responsibility for projects and programmes.KAIZEN CONTINOUS IMPROVEMENT- Kaizen is continuous improvement step by step involving everyone within the organisation. While implementing quality change Kaizen can be considered because kaizen means continuous improvement. It has to be n