Slide 14.
Managing Change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.2
Outcomes
• Identify the types of change and key drivers
• Understand who and what are the resistors of
change and how resistance can be overcome
• Explain and assess change processes
– management of organisational routines
– political and symbolic processes
– other change tactics
• Determine different styles of change
management and their impact
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.3
Exhibit 14.1 Key elements in managing strategic change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.4
Strategic Change Management
“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
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.5
Causes and Dynamics of Strategic
Change
Causes (Tichy Dynamics (Kanter,
1983) Stein & Jick
• Environment 1992)
• Business • Environment
Relationships • Life cycle
• Technology differences
• People • Political power
changes in the
organisation
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.6
Environment
Values Resources
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.7
Environment
Pressures for Opportunities
discontinuous for continuous
change improvement
STRATEGIC
EFFECTIVENESS
Ability to Efficiency and
manage effectiveness
change of existing
effectively strategies
Values Resources
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.8
Power and Politics
• Relative power of organisation
• Political activity
– Legitimate or illegitimate
– Vertical or lateral
– Internal or external
• Bases of power
– reward and coercive power
– legitimate
– personal
– expert
– information
– visible/invisible - ability to prevent decisions, control issues,
ensure certain issues are ignored
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.9
CULTURAL WEB
Stories
Rituals and
Routines Symbols
Paradigm
Power
Controls
Organisation
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.10
Force Field Analysis
Forces for change Forces resisting
change
Equilibrium
Driving forces Restraining forces
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.11
Change resistance grid
Extent to which employees are
High change
Source: Adapted from Witte (1990)
satisfied with the status quo
Satisfied resistant
organisation
Resistors Undecided
Dissatisfied
Undecided Supporters
Low change
resistant
organisation
Distrust Trust
Extent to which employees
trust the organisation
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.12
Nature of Change
Proactive
Planned
MANAGEMENT ROLE
Tuning
transformational
Adaptation Forced
Reactive
transformational
Incremental Transformational
Change Change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.13
Overcoming Resistance
• Education and communication
• Participation and involvement
• Facilitation and support
• Negotiation and agreement
• Manipulation and co-option
• Explicit and implicit coercion
Kotter & Schlesinger (1979)
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Prescriptive Approaches to
Slide 14.14
Change
• Unfreezing • Changing Identity of
– readiness to acquire or learn Organisation
new behaviour – Response to environment
• Change •Coordination & Transition
– Trying out new ideas - 5 Phases of organisational
growth
– Altered power structures
• Control over organisational
– Change champion politics
• Refreezing (participation,
involvement & commitment Kanter Stein and Jick
– New behaviour patterns are
accepted 1992
– Supportive
– Rewards
Lewin 1947
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Emergent Approaches to
Slide 14.15
Change
Five Factors Theory
(Continuous) • Environmental Assessment
• Leading change
Learning Theory • Linking strategic and operational
– Team learning change
• Strategic human resource
– Sharing views/vision management
– Exploring/ changing • Coherence
• Consistency
ritual & beliefs
• Consonance
– Skills development • Competitive advantage
• Feasibility
– Systems
Pettigrew & Whipp 1991
management
Senge 1990
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.16
Internal change
implementation
Gain support of key decisions makers and facilitators
Change attitudes among employees who deal with customers
Obtain employees’ commitment to making the strategic plan work by
• involving them in the ownership of the plan
• rewarding them on the plans’ attainment
Train staff - develop new skills that will contribute to the effective
implementation of plans
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.17
Exhibit 14.2 Types of change
Source: Adapted from J. Balogun and V. Hope Hailey, Exploring Strategic Change, 2nd Edn, Prentice Hall, Pearson Education Ltd, 1999
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.18
Exhibit 14.3 Contextual features of strategic change programmes
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.19
Exhibit 14.4 A forcefield analysis
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.20
Exhibit 14.5 Styles of managing strategic change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.21
Exhibit 14.6 Organisational rituals and culture change
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.22
Exhibit 14.7 Political mechanisms in organisations
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
Slide 14.23
Exhibit 14.8 Turnaround: revenue generation and cost reduction steps
Johnson, Scholes and Whittington, Exploring Corporate Strategy, 8th Edition, © Pearson Education Limited 2008
