Business Strategy and Change Management

7/29/2019 Business Strategy and Change Management

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BS 2 Assignment

Name Piyush Mathur

Sec- BEnrollment No- 11BSPHH010578

NCP 1

Mob- 9666783020


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Question

Explain the role of different change agents and

the main styles of managing the change they

may apply. Justify with an example.


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Types of Strategic changes

REALIGNMENT TRANSFORMATION

INCREMENTAL ADAPTATION EVOLUTION

BIG BANG RECONSTRUCTION REVOLUTION

SCOPE OF CHANGE

NATURE

OFCHANGE


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Adaptation: is change which can be

accommodated within the current paradigm

and occur incrementally. It is the most

common form of change in organizations.

Reconstruction: is the type of change which

may be rapid and could involve a good deal of

upheaval in organization, but does notfundamentally change the paradigm


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Evolution: is a change which may be rapid andcould involve a good deal of upheaval in anorganization, but foes not fundamentally changethe paradigm. E.g. Learning organizations

continually adjust their strategies as theirenvironment changes.

Revolution: is change which requires rapid andmajor strategic and paradigm change. This might

have occurred over many years and resulted incircumstances where pressure for change areextreme (E.g., a takeover threatens the continuedexistence of a firm)


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Roles in Managing Change

Charismatic Leadership: are mainly concerned

with building a vision for the organization and

energizing people to achieve it. And are

therefore usually associated with managing

change. The evidence suggests that these

leaders have particularly beneficial impact on

performance when the people who work forthem see the organization facing uncertainty.


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Instrumental or Transactional Leader: Who

focus more on designing the systems and

controlling the organizational activities and

are more likely to be associated with

improving the current situation.


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Middle managers: A top down approach tomanaging strategy and strategic change seesmiddle managers as implementers of strategy.

Their role is to put into effect the directionestablished by top management by makingsure that the resources are allocated andcontrolled appropriately, monitoring

performance and behavior of the staff andwhere necessary, explaining the strategy tothose reporting to them


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Implementation & Control: this does reflect the idea at of

top-down change in which they are monitors of thatchange.

Translators: Top management may set down a strategic

direction; but how it is made sense of in specific contexts. Ifmisinterpretation of that intended strategy is to be avoided,it is therefore vital that middle managers understand andfeels an ownership of it.

Reinterpretation and Adjustment: middle mangers arelikely to be involved as events unfold. A vital role they areuniquely qualified for because they are in day to day contact

with such aspects of the organization and its environment.


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Relevance: They are crucial relevance bridge betweentop management and the members of organizations atlower levels. They are in touch with the day to dayroutines of the firm which can so easily become

blockage to change, they are in a position to translatechange initiatives into a locally relevant form ormessage.

Advisors: They are also in a position to be advisors ofthe senior management on what are likely to beblockages to change and requirements of a change


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Outsiders

New CEO: from a outside organization may beintroduced into a business to enhance the

capability of a change. He or she changes thecontext of the change by bringing a freshperspective on the organization, not bound bythe perspectives of the past, or the everyday

activities and ways of doing things that canprevent strategic change.

These CEOs who are no the part of the mainline

culture, but who have the experience andvisible success from within the same industry oreven the same company. They might have beena successful change agent with a competitor or

some other part of a conglomerate.


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Outsiders

New Management: From outside can alsoincrease the diversity of ideas, views and

assumptions which can help break down the

cultural barriers to change; and they may helpincrease the experience of and capability for

change.

The success of introducing outsiders is

however likely to depend on how much

explicit visible backing they have from the

chief executive.


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Outsiders

Consultants: are often used in change processes.

This may be to help formulate the strategy or toplan the change process. However, consultantsare increasingly used as facilitators of changeprocess. The value of consultant is threefold:

They dont herit the cultural baggage oforganization and therefore can bring adispassionate view to the process.

They may ask questions and undertake analysis

which challenge taken for granted ways ofseeing/doing things.

They signal symbolically the importance of thechange process


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Outsiders

Stakeholder Network: There are likely to be

influencers of change external to an

organization within its stakeholders network.

Government, customers, suppliers all have thepotential to act as change agent on

organization

S l f i h


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Styles of Managing Change

STYLE MEANS/

CONTEXT

BENEFITS PROBLEMS CIRCUMSTANCES OD

EFFECTIVENESS

Educationand

Communication

Groupbriefings

assume

internalization

of strategic

logic and trust

of top

management

Overcominglack of

information

of

misinformati

on

Timeconsuming.

Direction or

progress

may be

unclear

Incremental changeor long time

horizontal

transformational

change

Collaboration/

Participation

Involvement

in setting the

strategyagenda and

resolving

strategic

issues by

taskforces or

groups

Increasing

ownership

of a decisionor process

may improve

quality of

decisions

Time

Consuming.

Solutions/outcome

within

existing

paradigm

Incremental change

or long time

horizontaltransformational

change

S l f M i Ch


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Styles of Managing ChangeSTYLE MEANS/

CONTEXT

BENEFITS PROBLEMS CIRCUMSTANCES Of

EFFECTIVENESS

Intervention Change agent

retains co-ordination/

control.

Delegates

elements of

change

Process is

guided/controlled

but

involvement

takes place

Risk of

perceivedmanipulation

Incremental or

transformationalchange

Direction Use of

authority to

set directions

and means of

change

Clarity and

Speed

Risk of lack

of

acceptance

and ill

conceivedstrategy

Transformational

change

Coercion Explicit use of

power

May be

successful in

crisis or state

of confusion

Least

successful

unless crisis

Rapid

Transformational

change or change in

establishedautocratic cultures.


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ExampleCarly Fiorina( Chairman and CEO Hewlett Packard)

Hewlett Packard Co. (HP) underwent dramatic

changes under the leadership of Carly Fiorina

(Fiorina), who took over as the company's CEO

in 1999.

Fiorina's ousting suggests that the playing

field has not leveled equally for men and

women, but charisma is an equal opportunityprovider between the sexes.


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Carly Fiorina Leadership CapabilityComing to understand the context in which you

are operating: Fiorina had a strong sense of understanding the

context to map the external terrain. At AT&T, sherecognized the phone-equipment manufacturingunits potential for growth in emerging marketsuch as Asia and the firms capability to supply aswitch able to handle both wireless and long-distance traffic.

At HP, she boldly declared her intend to merge HPwith Compaq as she sees the merge will make thetwo companies be more efficient and costeffective.


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Creating a map that represents the current

situation of the group or organization

She had a savvy approach to customers tounderstand what they want and how to fulfill

their need and wants. Thats why she could

always expand the business of her company.

Making sense of the environment:

She saw the market moving quickly and the

pace of change accelerating. This sense-

making distinguishes her as a great leader

who can discover the new terrain for HP as

the environment changes.


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Relating - centers on the leaders ability to

engage in inquiry, advocacy, and connecting

Inquiry:

Fiorina does not always listen and understandwhat others are thinking and feeling.

She ignores others while implementing herdecisions without explicit reasons. She also doesnot care about the critics against her leadershipstyle management with flying around.

She is right to act like that to maintain herposition as a female leader, strengthen herexecutive power and make her managementmore efficient to manage HP as a world-widecompany.


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Advocacy:

She is always clear about her own point of viewand trying to influence others of its merits. She isable to tell the truth about what needs to bedone and clearly define what is and is not

acceptable performance.

This ability helps her communicate broad

strategies, deep knowledge of operations, visionsand instructions clearly to her management teamand employees.


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Connecting:

She is able to cultivate her followers who helpeach other to accomplish their goals.

She also developed a personal touch thatinspired intense loyalty among her followersand the ability to build collaborativerelationships with others to create coalitions

for change.


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Visioning

She changed the vision of HP from a stand-alone

product/service provider to a company thatprovides an integrated suite of information

appliances, highly reliable IT infrastructure and e-

service, or to expand HP in a new direction at

Internet speed and customer orientation.

This shared vision enables them to act together,

become bound together around a commonidentity and sense of destiny. This vision also

provides them with a sense of meaning about

their work and the difference they will make.


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InventingChanging the way that people work together:

She changed the way people work by restructuringHP into four organizations: two focusing on salesand the others focusing on products.

Creating a whole new way of approaching a task:She recognized the need for a new leadership styleand faster actions for the new vision. So she decidedto change HP from a fully integrated, product-focused business to a more disintegrated approachfocusing on product generation, customer-facing

and support activities. She also changed her leadership style by using

internal Web and message boards to communicatewith workers instead of visiting and talking to them

in person as the old leadership style.


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Creating new approach, new solutions, newpractices:

To achieve the goal, she changed the culture andwork habit to make employees be moreefficient.

She encouraged research to explore new

technologies and develop new products. She alsocreated the rules of garage to motivate newand innovative ideas.

Her strong capability of sense-making, visioning,relating and inventing makes Fiorina become apowerful and talented female leader in theAmerican corporate world


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Business Strategy and Change Management

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