ACCA Strategic Business Planning

1
ACCA Strategic Business Planning Development

• Lecture 11
• Change

2
Learning Outcomes

• By the end of this lecture you will
• Be able to describe the types of strategic change
• Understand the role of a change agent
• Undertake a force field analysis
• Know the causes of conflict and how to manage
  them
• Understand how to bring about cultural change

3
Change - What Is It ?

• Relates to
• The environment
• The products and services of the company
• How the products are made, and who makes them
• Management, employees and their working
  relationships
• Organisation structure or size

4
Managing Strategic Change

• Types of strategic change
• Incremental tuning or adaptation of existing
  organisation, usually over time
• Transformational change which attacks the
  taken-for-granted assumptions of the
  organisation

5
NATURE OF CHANGE
MANAGEMENT ROLE
Types of Strategic Change
6
Change - The Individual

• Effects of change
• Psychological changes
• disorientation, uncertainty, insecurity, stress,
  powerlessness
• Resistance to change - depends on
• attitude, loyalty, habit, politics, personality,
  the way it is implemented
• Reaction to change
• passive/active resistance, acceptance,
  indifference

7
Areas of Concern

• Job security
• Loss of status
• Less opportunities for promotion
• Social change in the office
• Bewilderment
• Fear of depersonalisation

8
Technological Change and Work

• Automation of certain jobs
• Degrading of old skills
• Greater flexibility
• More part-time jobs
• Homeworking
• More sub contracting
• More effective planning and controlling
• Reduced need for middle managers

9
Models of the Change Process

• Determine need or desire for change
• Prepare a tentative plan
• Analyse possible reactions to the change
• Make a final choice from a list of options
• Establish a timetable for change
• Communicate the plan for change
• Implement the change
• Review the change

10
The Change Process
Unfreeze
Refreeze
Attitudinal/ behavioural change
Existing behaviour
New behaviour
11
Systems Intervention Strategy (SIS)

• Three basic steps
• Diagnosis
• Analysis of current position
• Definition of objectives and constraints
• Formulation of measures to control process
• Design
• Implementation

12
The Change Agent

• CHAMPIONS the change programme
• Senior management must
• Appoint and support the change agent
• Review and monitor their progress
• Endorse and approve the recommended changes
• The change agent needs to win the support of
  lower level manager
• They galvanise managers into action

13
Geminis Four Rs of Transformation
Renew
Reframe
TRANSFORMATION
Restructure
Revitalise
Geminis framework for planned strategic change
14
Force Field Analysis (FFA)

• Definition
• A technique to help achieve an objective by
  identifying and evaluating the forces working for
  and against it so that you end up with a
  prioritised action list

15
Force Field Analysis

• Driving Forces
• A requirement of new legislation
• Professional commitment to controlling the
  organisation
• Requirement to report to external agencies
• A concern for quality

• Restraining Forces
• Cynicism about change - another fad
• Existing systems are sufficient
• Trade Union concern about over effects on jobs
  and working conditions
• Complexity of producing such reviews
• Cost of carrying out reviews

16
Activity

• List some of the fears people may have when
  change is announced in their organisations
• As a manager how would you deal with these fears?

17
Resistance to Change

• Consider aspects of the change
• Pace manner scope

18
Pace, Manner and Scope

• Pace
• The more gradual, the more time for questions
• Manner
• Confront resistance
• Keep people informed
• Explanation
• Skills training
• Empathy
• Consultation or participation
• Coercion?
• Scope
• Total transformation or one or more aspects

19
Acceptance of Change

• Preparation
• Contact
• Awareness
• Acceptance
• Understanding
• Positive perception
• Commitment
• Installation
• Adoption
• Institutionalisation
• Internalisation

20
Strategies for Change Management

• Parochial self-interest
• Misunderstanding
• Differing viewpoints
• Low tolerance of change

• By negotiation
• By educating and reassuring
• Promote participation and involve resisters
• By encouraging adoption of new methods

21
Managing Conflict

• Causes of conflict
• Differences of objectives
• Scarcity of resources
• Interdependence of two departments
• Disputes about boundaries of authority
• Personal differences

22
Managing Conflict

• Symptoms
• Poor communication
• Interpersonal conflict
• Inter-group rivalry and jealousy
• Low morale and frustration
• Widespread use of arbitration and appeals to
  higher authority

23
Tactics of Conflict

• Withholding information
• Distorting information
• Empire building
• Informal organisation
• Fault-finding

24
Managerial Response to Conflict

• Denial/withdrawal
• Suppression
• Dominance
• Compromise
• Integration/collaboration

25
Handys Environmental Strategies

• Create co-operative conditions
• Agree common objectives
• Reinforce team culture
• Provide feedback information
• Provide co-ordination/communication mechanisms
• Sort out role/conflicts in organisational
  structure

26
Handys Regulation Strategies

• Control conflict
• Provision of arbitration
• Establishment of detailed rules and procedures
• Liaison officer or committee
• Separating conflicting individuals or departments
• Ignoring the problem

27
Changing Corporate Culture

• Find the dangers
• Bring conflicts into open
• Play out corporate dramas
• Reinterpret corporate myths
• Look at symbols, images, rituals
• Create a new learning system
• Also the segmentalist and integrative approaches

28
Essentials for Culture Change

• Top management commitment
• Modelling behaviour
• Support for positive behaviour and confrontation
  of negative behaviour
• Communication of desired norms
• Recruitment and selection of the right people
• Induction programmes
• Training and skills development