Change Management to Improve Strategy Execution

Using Change Mgt to Improve Strategy Execution

Change is an INFINITE FLOW

Ability to absorb is FINITE – Failure is from the incongruity between flow and

absorption capacity

Change Absorption Framework

Change Management to Improve Strategy Execution

1. How will enterprises develop an understanding of their current capacity for change?

2. How will enterprises accurately assess the scope and impact of a change initiative?

3. How will enterprises increase their capacity for change?

4. How will enterprises ration, orchestrate and manage change to improve strategy execution?

Change Capacity

Change capacity is defined by Employee willingness and ability to change.

It is affected by Organizational history and culture, leadership

credibility, attitudes and trust toward management, perceptions of urgency, employee skills, and a collective experience of change.

Understanding the enterprise’s current change capacity is the first step

Change Capacity

Raising the Absorption Capacity

When you raise the absorption threshold, you are increasing the capability to

absorb change. Usually this is done by:

increasing the flexibility in the organization, lowering the levels of hierarchy, increasing accountability and responsibility.

Raising the Absorption Capacity

Expanding the Absorption Curve

By identifying critical success factors, best practices and methodologies for instituting change, an organization can expand the absorption curve which pushes

up and out the absorption threshold (beyond which any more change is counter productive) thus increasing the capacity to change positively.

Expand the Absorption Curve By identifying critical success factors, best

practices and methodologies for instituting change, an organization can expand the absorption curve which pushes up and out the absorption threshold

(beyond which any more change is counter productive)

thus increasing the capacity to change positively.

Expand the Absorption Curve

Orchestrating and Managing change to Improve Strategy Execution

Change is a process and as a process it can be managed using Frameworks Best-in-class CSF Best practices and methodologies

Tactics for Managing Radical Change 

The pace of change depends on the process that is, Tactics, or techniques used to encourage an

organization’s member to accept change Complies with current organizational values and

norms, skills, structures and incentive is evolutionary

Change that challenges or undermines the status quo, creates a new vision, and accomplishes fundamental change is revolutionary

Process Improvement and redesign Process

Magnitude Increment Radical

Improvement 30-50% 10x-100xSought

Starting base Existing Process Blank skeet

Top management Relatively low Highcommitment

Role of IT Low High

Risk Low High

Improvement Innovation/Reengineering

BPR

 Planned  Depth  of  Change

  Scope of Change

   Functional  Cross-Functional  Organization-Wide

  Efficiency

 one initiative within one function-- eliminate. jobs-- more ee involve

<< Structure<< Culture

 

  Effectiveness  

 one initiative at many sites simultaneously -- jobs redefined -- dept/job interdependence

<< Structure<< Culture

  Transformation   Structure >>Culture >>

  multiple initiatives simultaneously  -- reorg jobs/structure with teams -- significant change  needed

Magnitude of Change  and Capacity of change

Discussion Questions

Compare/contrast Orders of Change Magnitude with Change Scope/ Depth Framework?

Compare the change magnitude framework with the change absorption framework?

Structural DimensionHierarchical org. based on Networked Org. basedFunction / product. Cross functional teams

Rigid Bureaucracy Flexible Adhocracy

Org. Integration through Org. integrate through structure information systems

Management DimensionManagement by Management by internalInternal objective and external objectives

Functional Organizational

Structural empowerment Informational empowerment

Industrial Age Org. Information Age Org.

Dimension of Change Stemming from Reengineering

People DimensionFragmented Tasks performed Holistic Processby individuals accomplished by teams

Functional specialists Case management and process generalists

Expertise as functional Knowledge as anSpecialist organizational resource

Industrial Age Org. Information Age Org.

Dimension of Change Stemming from Reengineering