Strategy: Change management (overview)

Change management is an important aspect of management that tries to ensure that a business responds to the environment in which it operates. There are four key features of change management:

  • Change is the result of dissatisfaction with present strategies
  • It is essential to develop a vision for a better alternative
  • Management have to develop strategies to implement change
  • There will be resistance to change

Many factors drive change in a business.  Lewin identified four forces:

In Lewin’s model there are forces driving change and forces restraining it. Where there is equilibrium between the two sets of forces there will be no change. In order for change to occur the driving force must exceed the restraining force
Lewin’s analysis can be used to:

  • Investigate the balance of power involved in an issue
  • Identify the key stakeholders on the issue
  • Identify opponents and allies
  • Identify how to influence the target groups

Forces for change include:

Lewin - four forces of change

 

Internal forces for change

External forces for change

A general sense that the business could “do better”
Desire to increase profitability
Reorganisation to increase efficiency
Natural ageing and decline in a business (e.g. machinery, products)
Conflict between departments
The need for greater flexibility in organisational structures
Concerns about ineffective communication, de-motivation or poor business relationships

Increased demands for higher quality and levels of customer service
Uncertain economic conditions
Greater competition
Higher cost of inputs
Legislation & taxes
Political interests
Ethics & social values
Technological  change
Globalisation
Scarcity of natural resources
Changing nature and composition of the workforce

You can see from the lists above that the main pressure for change in a business is usually external.  A business has to be prepared to face the demands of a changing external environment.

Other Strategy Revision Notes:
Ansoff Growth Matrix | BCG Matrix | Balanced Scorecard - Intro Balanced Scorecard - Perspectives
Business Planning - Intro | Business Planning - Process | Writing a Business Plan - Introduction
Business Plan - Contents | Benchmarking |
Corporate objectives | Functional objectives |
Types of Change |  Change Management - Intro  | Change Management - Lewin 
Change Management- Barriers |Change Management - ImplementationCompetitive Advantage
Competitor Analysis | Core Competencies | CSR - Intro  | CSR - Issues  | CSR - BITC
Ethics - Introduction | Ethics - Issues and Examples |
Growth - methods of development | Acquisitions (Intro) | Acquisitions evaluation
Industry competition and profitability |
GE Matrix |  McKinsey Growth Model | Globalisation Intro | Globalisation Drivers
Mission Statements | Risk (Introduction) | Risk Management | Contingency planning
Business Objectives | PEST Analysis | Porter's Five Forces | Resources & Strategy |Seasonality
Strategic Audit | Stakeholders - Intro | Stakeholders - Interest & Power | Strategy & Marketing
SWOT Analysis | Value Chain Analysis | Vision | What is Strategy?
SWOT - Strengths | SWOT Weaknesses | SWOT Opportunities | SWOT Threats

 



 

 
 

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