Strategy in Action

14: Managing
Strategic Change
 Learning Outcomes (1)

Identify the scope of a required

strategic change
Analyse how organisational context
might affect the design of strategic
change programmes
Undertake a forcefield analysis to
identify forces blocking and
facilitating change

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-2

 Learning Outcomes (2)

Assess the impact of the role and

management styles of change agents
Assess the value of different levers for
strategic change, including the
management of organisational routines,
political and symbolic processes and other
change tactics
Identify the pitfalls and problems of
managing change programmes

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-3

 Premises of
Strategic Change

Strategy matters

Context matters

Different approaches to managing

strategic change are required
for different contexts

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-4

 Exhibit 14.1 Key Elements in
Managing Strategic Change

Diagnosis of
context

Change Levers
agents for
change

Managing
change
programmes

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 Diagnosing the
Change Situation

Types of change Context of change

Culture web Forcefield analysis

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 Exhibit 14.2 Types of Change

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 Exhibit 14.3
Context of Change

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 The Cultural Web

Stories Symbols

Rituals/ Power
routines Paradigm
structures

Control
systems Structures

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-9

 What is a Forcefield Analysis?

A forcefield analysis provides a

view of change problems that need
to be tackled, by identifying forces for
and against change.

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-10

 Exhibit 14.4
A Forcefield Analysis

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 Roles in Managing Change

Change agents Middle managers

Strategic leaders Implementation and
control
Charismatic
Sense-making
Instrumental
Reinterpretation and
Outsiders adjustment
Relevance bridge
Advisors

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-12

 Styles of Managing Change

Education/
Communication

Collaboration/
Intervention
Participation

Direction Coercion

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 Levers for Change

Challenging the taken for granted

Changing routines

Symbolic systems

Political systems

Other change tactics

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-14

 Approaches for
Managing Change

Theory E Theory O
Economic value Development of
Organisational
capability

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 What are Symbols?

Symbols are objects, events, acts,

or people that convey, maintain, or
create meaning over and above their
functional processes.

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 Rituals and Organisational Change

Rites of passage Rites of

degradation
Rites of
enhancement Rites of sense
making
Rites of renewal
Rites of challenge
Rites of integration
Rites of counter-
Rites of conflict
challenge
reduction

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-17

 Power and
Political Processes

Acquisition Association with

of resources powerful stakeholders

Development of
Symbolic change
alliances

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 What is Turnaround Strategy?

A turnaround strategy emphasizes the

speed of change
and rapid cost reduction
and/or revenue generation.

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 Elements of Turnaround Strategies

Crisis stabilisation Refocusing

Management Financial
changes restructuring
Stakeholder Prioritisation of
support critical
improvement areas
Target market
clarification

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-20

 ValuesJam at IBM

Which change levers are evident?

Compare the values-based approach to a
programme of revolutionary change or
reconstruction.

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 Aspects of
Revolutionary Change
Clear strategic direction
Combined economic and symbolic levers
Outside perspectives
Multiple styles of change management
Work with existing culture
Monitoring of changes

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-22

 Aspects of
Evolutionary Change
Empowered organisation
Clear strategic vision
Continual change and commitment to
experimentation
Transitional stages
Irreversible changes
Sustained top management commitment
Winning hearts and minds

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-23

 Chapter Summary (1)

 There are different types of strategic change

which can be thought of in terms of the extent of
culture change required and its nature
 It is important to diagnose wider aspects of
organisational context such as resources and
skills that need to be preserved, the degree of
homogeneity, capability, capacity, readiness for
change, and the power to make it happen
 The cultural web and forcefield analysis are useful
as means of identifying blockages to change and
potential levers for change
Exploring Corporate Strategy 8e, © Pearson Education 2008 14-24
 Chapter Summary (2)

 Change agents my need to adopt different styles

of managing change according to different
contexts and in relation to the involvement and
interest of different groups
 Levers for managing strategic change need to be
considered in terms of type of change and context
of change. Levers include surfacing and
challenging the taken for granted, the need to
change operational processes, routines and
symbols, the importance of political processes,
and other change tactics

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-25

 Key Debate:
Management of Change
from Top to Bottom?
What are the problems associated
with top-down or bottom-up views of
change management?
If you were a senior executive which
approach would you take and in what
circumstances?
Are the different views reconcilable?

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-26

 Case Example: Change at Faslane

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 Case Example: Change at Faslane

What type of change is being pursued at

Faslane?
Describe the change style of John Howie.
What levers for change are being used?
What others might be used?
What problems of change could occur?
Assess the effectiveness of the change
programme.

Exploring Corporate Strategy 8e, © Pearson Education 2008 14-28