sm 06 strategies implementation

8/6/2019 SM 06 Strategies Implementation

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STRATEGIES IMPLEMENTATION

& MANAGING CHANGE

Prof.dr.dr.dr.h.c. Constantin Bratianu

Faculty of Business Administration

Academy of Economic Studies

Bucharest



PLANNED CHANGE

� The basic idea of this theory is that change can

be planned and managed as a controlled process.

� Since change has been considered at the

organization level, all research focused on

Organizational Development (OD).

� Kurt Lewin founded in 1945 the Research Center

for Group Dynamics, with a huge influence.



MODELS OF PLANNED CHANGE

� The action research model

� The three-steps model

� The phases of planned change model



THE ACTION RESEARCH MODEL

� Action Research has been designed to solvesocial and organizational problems.

� It is research on action to make that action moreeffective. Action refers to programs andinterventions designed to solve a problem or improve a condition.

� The main idea is that effective solving of organizational problems must involve a rational,and systematic analysis of the issues in question.



THE ACTION RESEARCH (I)

� The Action research comprises 3 components:

- the organization (top management)

- the subject (people where change is done)- the change agent

� The 3 entities must agree to form a group, under

mutually acceptable and constructed terms of reference.



THE ACTION RESEARCH (II)

� The main difficulty is to gain the commitment of

both the organization and the subject of the

change.

� The strategy was to use top-down change

implementation based on top managers authority.

� This approach is not working well in large

organizations and where the distance to power is

relatively small.



THE 3-STEP MODEL

� The basic idea was that change toward a higher

level of group performance is frequently short

lived. After some time, group behaviour mayrevert to the previous pattern.

� This indicates that it is not enough to define

change as a target and to stop. It is important to

include also the group performance in the new

state of change.



How can you transform an ice cube into a cylinder ?



Kurt Lewin¶s Change Model

Proposed by K. Lewin (1958) for implementing change in an

organization through 3 stages:

Change

Unfreezing

Organizational

culture

Re-freezing

Organizational

culture



PHASES OF PLANNED CHANGE

� The concept of planned change implies that an

organization exists in different states at different

times and that planned movement can occur fromone state to another.

� For planned change it is important to understand

not only the change but also the states through

which the organization must pass.



THE 4-PHASE MODEL

� Bullock and Batten (1985) developed an

integrated four-phase model for planned change:

1.Exploration phase

2.Planning phase

3.Action phase

4.Integration phase



EXPLORATION PHASE

� Becoming aware of the need for change

� Searching for outside assistance (a consultant/facilitator) to assist with planning and

implementing the change

�

Establishing a contract with the consultant whichdefines each party¶s responsibility



PLANNING PHASE

� Analysis and diagnosis of the problem to besolved

�

Establishing change goals and designing theappropriate actions to achieve these goals

� Establishing priorities and sequencerequirements for change implementation

� Allocation of tangible and intangible resourcesfor each change sequence



ACTION PHASE

� Identify all possible resistances to change andtheir nature

� Evaluate the inertial forces of each resistance

� Choose adequate approaches to overcome eachresistance

� Evaluate the progress of change implementation

� Perform corrections to the initial plan if necessary



INTEGRATION PHASE

� This phase begins when the changes have been

successfully implemented

�

It is concerned with consolidating and stabilisingthe changes

� Reinforcing the new behaviours through

feedback and reward systems

�

Diffusing the successful aspects of the changeprocess through the organization

� Train managers and employees to monitor the

changes and seek to improve upon them



LIMITATIONS (I)

� The basic hypothesis that an organization exists

in different states at different times and that

planned change is a transition from one state to

another

� The dynamics of business environment imposes

organizational change to be more a continuous

and open-ended process, than a set of discrete

and self-contained events



LIMITATIONS (II)

� Its emphasis on incremental change and its

inability to incorporate radical, transformational

change

� It assumes that one type of approach to change is

suitable for all organizations, all situations and all

times

� Turbulent times demand different responses in

varied circumstance



THE EMERGENT CHANGE APPROACH

� It is a new approach which lacks agreed methods

and techniques

�

This approach stresses the developing andunpredictable nature of change

� Change is viewed as a process that unfolds

through the interplay of multiple variables within

the organization

� There is no single prescription for managing

organizational transitions successfully



BOTTOM-UP APPROACH

� Planned change is implemented more likelythrough a top-down approach

� Emergent change is implemented more likelythrough a bottom-up approach

� The bottom-up approach requires a major change

in the role played by senior managers. Instead of planning, directing and controlling change theymust create adequate conditions for supportingchange



IMPORTANT FEATURES

� Though the concept of universally applicable

rules for change are rejected, supporters of

emergent change stress 4 necessary

organizational features:

- organizational structure

- organizational culture

- organizational learning

- managerial behaviour



ORGANIZATIONAL STRUCTURE

� This is seen as playing a crucial role in defining

how people relate to each other and in

influencing the momentum for change

� The more flexible and flatter organizational

structure to increase the responsiveness to

change, by developing authority of all managers

and responsibility

� Organizational structure based on teams and

networks



ORGANIZATIONAL CULTURE

� If change is developing in concordance with the

cultural values, organizational culture will

support the change

� If change is developing against the cultural

values, organizational culture must be changed

along with change implementation

� Creating a culture for change means that change

has to be part of the way we do things around

here



ORGANIZATIONAL LEARNING

� Change is an excellent opportunity to learn new

things and then to adapt the organization to the

new external business environment requirements

� Organizational learning is based on the double

loop model (single loop model = solving

problems in a programmed way)

� Organizational learning creates a pro-active

approach to change



MANAGERIAL BEHAVIOUR(I)

� The role of managers is not to plan and to control,

but to create an internal environment able to accept

and to support change

� The key organizational elements are:

- Information gathering

- Communication- Learning



MANAGERIAL BEHAVIOUR (II)

� For supporters of the emergent approach, the

essence of change is to move from the known to

the unknown

� In this situation, it is essential for managers to be

able to tolerate risk and cope with ambiguity

� Managers must develop the skills of making

decisions in situations with high levels of

uncertainty



ENVIRONMENT

Stable Turbulent

Planned Emergent

APPROACHES TO CHANGE

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