Managing Strategic Change 241

Managing Strategic
Change
PROCESS OF STRATEGIC CHANGE
It is a matter of truth that already formulated and
implemented strategy is not adopted forever by an
organization. Strategy is dynamic like the environment, which
is changing on the span of time. Strategy is basically depend
on the assessment of external environment which is not
static. Therefore, change of strategy is unavoidable to secure
the objectives. But change of strategy in an organization
depends on the extent to which people change their behavior.
So it is concerned with the beliefs and assumption, that they
hold and the processes in their organizational lives.1
Figure presented, summarized a framework of managing
strategic change process of an organization.
Figure 7.1

A Framework for Managing Strategic Change

242 Strategic Management: Concept and Application

UNDERSTANDING TYPES OF STRATEGIC CHANGE

DIAGNOSING STRATEGIC CHANGE NEEDS

MANAGING STRATEGIC CHANGE PROCESS

LEADERSHIP AND CHANGE AGENCY

UNDERSTANDING TYPES OF STRATEGIC CHANGE

There are mainly two ways to change the strategies. (a)
Incremental i.e. change of strategy in an increasing process.
In this way, the skills, routines, and beliefs of those in the
organization will build up so that change is efficient and likely
to
win
their
commitment.
(b) Transformational i.e. complete change which cannot be
handled within the existing paradigm and organization
routine. There are also two types of changes. (i) Proactive i.e.
controlling a situation by making things happen rather than
waiting for things and (ii) Reactive i.e. showing a reaction or
response.
Increment change approach suggests that organizations can
and do change by mutually reinforcing and amplifying stimuli
within their system. Change takes place in the gradual
manner in the current way of doing things. Increment change
might therefore be seen as an adaptive process in a
continually changing environment. However, it is danger in
sometimes became environmental change may not always
gradual enough for incremental change to keep pace. If such
incremental strategic change lags behind environmental
change, the organization may get out of line with its
environment, and it may need more fundamental strategic
change to occur.2

Managing Strategic Change 243

Nadler and Tushman show the interrelationship between the

ways of strategy development and the types of changes as
follows.3

Types of Change

Figure 7.2

Way of Change

Incremental

Transformational

Proactive

Tuning

Planned
Transformational

Reactive

Adaptive

Forced
Transformational

Organizational structure is formed for stability and control in

Types of Strategic
order to achieve the objectives.
But theChange
opinion behinds the
structure for stability is not suited to the dynamic conditions.
Thus, the organization should be seen as an adoptive,
continually changing, learning organization. Thinkers of the
learning organization point out that the collective knowledge
of all the individuals in the organization perceived the
knowledge and duties regularly and it protects the
organizational knowledge and creativity.
Besides these, some of the strategies formally managed the
change preparing a detail procedure. When the remorse and
signals are seen and challenges are faced, management felt
the need for strategic change. They analyze the competitive
position, problems and search the remedies. When all the
required information collection and interpretation is
completed, the strategist tastes out the new ideas. Such a
long procedure should be passed out for managed changed.
Not only the managed change, sometime, top management
also change their strategy because of force made by
stakeholders. Government, shareholders, consumer pressure
group are some of the examples, who have the power to force
to management for strategic change.

244 Strategic Management: Concept and Application

DISCUSSION QUESTIONS

1.

How are strategic change needs diagnosed? Illustrate.

Explain the process of strategic change. What mechanisms can be used to
diagnose the needs for strategic change?
Explain the concept of strategic change. What process can be followed to
manage strategic change?
What are the methods of diagnosing strategic change needs?
What are the types of strategic change? Discuss.
Discuss the approaches, which need to be considered to manage strategic
change.
What is strategic leadership? What are the components of effective
leadership?
Explain, in detail, the agents of strategic change.
General manager, as a top level management has main responsibility of
strategy change. Explain.
What are the barriers that you may face while changing the strategy?
Discuss.

2.
3.
4.
5.
6.
7.
8.
9.
10.

ASSIGNMENT

1.

Choose any two company and state the procedures of strategic change, they
exercised. Suggest the way of strategy change if required. Who are the main
agent for their change procedure? Explain.
On the base of assignment no (a) What type of leader is required to those
organization for strategic change? Discuss.

2.

ENDNOTES

1
2
3

Johnson, G. & Scholas, K. (2000), Exploring Corporate Strategy, PHI P 445

Johnson and Scholas (2000), Exploring Corporate Strategy, PHI
Nadler, D.A. and Tushman, M.L. (1988), Organizational Frame Bending Principles for Managing Reorientation, South Western.