STRATEGIC CHANGE
Strategic change
There is no easy way to manage strategic change, and no simple formula
that will work in all cases; this article simplifies a very complex subject.
It is emphasised that change must be context sensitive. The culture web
framework is introduced as a means of addressing the ‘softer’ issues, which is
a critical first step, as barriers to change must be identified. The change
kaleidoscope will help managers to understand the change context and
plan for transition.
3. Finally, some of the people related aspects ■ The extent of the change required ranges
of change are considered. across a spectrum from transformation to
realignment :
A flowchart of the steps that managers need ● Transformation entails changing an
to take when implementing change in an organisation’s culture. Culture is to do
organisation is shown in Figure 1. with the shared and taken-for-granted
assumptions and beliefs within an
organisation (the paradigm) that
shape ‘the way of doing things
around here’. More specifically, a
Paths of change : delivering transformation is a fundamental
strategic change change within an organisation that
cannot be handled within the existing
The four main types of change are shown in organisational paradigm. For example,
Table 1 (overleaf). the retail banks in the UK have been
attempting such a shift for the last
Change can be classified by the extent of the ten years. They have attempted to
change required, and the speed with which move from being internally focused
the change is to be achieved : organisations that are concerned with
safe, secure lending to more customer
■ The speed of change is about the way that focused retail organisations.
change is implemented. It ranges across a ● A realignment, on the other hand,
continuum from an all-at-once, big bang does not involve a fundamental
type of change to a step-by-step, stage-by- reappraisal of the central assumptions
stage incremental kind of change. and beliefs within an organisation.
Extent of change
Transformation Realignment
Stories
Stories employees tell Symbols
one another and others Status symbols, language,
about the organisation, terminology, logos and
its history and personalities; anything else that is a
used to communicate representation of what sits
traditions, standards and in the organisation’s
role models paradigm
Controls
Organisation structure
The measurement and
The structure of the
reward systems used to
organisation, formal and
monitor what is important
informal roles,
to the organisation, and
responsibilities, and
to reward those who do
relationships
as required
The change kaleidoscope (see Figure 3 ■ Time : This is the time that an organisa-
overleaf) was created to help managers tion has to achieve change. Organisations
design a context sensitive approach to in crisis have little time, and they need to
change within their organisation. change reactively. Those concerned with
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Ch
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Power Time
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Readiness Scope
Design choices
Change path
Change start point
Change style
Change interventions
Change roles
Capacity Preservation
Capability Diversity
Context
These features should be considered before a There are a number of frameworks that can
change approach is selected from the menu be used to help assess the contextual features
of design choices. for an organisation.
These are the definitions of the design ■ The scope of change maps directly onto
choices : the choice of change path, and so it can
be assessed using a framework such as the
■ Change path : This consists of the types culture web. However, the spread of
of change, in terms of the extent of change within the organisation, for
change and the speed of change, that example in terms of whether the changes
need to be undertaken for the required are organisation-wide or restricted to one
change outcome to be delivered. division such as sales or R&D, also needs
■ Change start point : This is where the to be considered.
change is initiated and developed. For ■ With respect to diversity, the web can be
example a change can be top-down or used to help identify cultural features
bottom-up, or some combination of the that should be preserved and various
two. Other choices include pilot sites and organisational subcultures.
pockets of good practice.
■ When considering preservation, one must
■ Change style : This is the management decide whether certain organisational
style of the implementation. There is a competencies must be retained, or if
continuum of styles, from highly there are particular groups of staff that
collaborative to participative, directive, the organisation cannot afford to lose.
and then coercive. There are no These can be identified through the use
prescriptions. Top-down change can still of, for example, a resource audit, which
be collaborative or participative. is an assessment of the physical, human,
■ Change interventions : These are the financial and intangible resources within
levers and mechanisms to be deployed. an organisation that underpin its
They include competitive position.
● technical interventions (structures and ■ Diversity may be affected not only by
systems); different organisational, national,
● political interventions; regional, divisional and departmental
subcultures, but also by professional
● cultural interventions (symbols, cultures. One example is the different
stories, rituals, routines); professional cultures of clinicians, nurses
● interpersonal interventions and managers in hospitals.
(education, communication, training,
■ Power issues can be assessed by using
personal development).
frameworks such as stakeholder analysis,
■ Change roles : These determine who is to in which the various organisational
take responsibility for leading and stakeholders are plotted on a grid on the
implementing the changes. These roles, basis of their attitude to change and their
which are not mutually exclusive, include degree of influence. This enables the
relative power position of the change
● leadership (responsibility resides with
agent to be established. Not all change
an individual such as the MD or
agents wield position power. In many
CEO);
partnership organisations undergoing
● outside facilitation from consultants; change, the partner leading the initiative
● the involvement of a change action may formally have a position equivalent
team; to that of managing director. However,
Denial
Integration
Search
Shock Awareness
Testing
Acceptance
Help individuals to let go of Help individuals to change. Offer emotional Continue to support
the past and accept change. support and encouragement. individuals in new ways of
Communicate intentions as Also put in place education, training, personal working.
early as possible to build development, new working practices and Encourage reflection on
readiness. systems. change and learning.
Resistance to loss of the Celebrate success. Reinforce
known is natural. new ways of behaving.
number of symbolic gestures and new ■ keep the business going in the interim.
systems and processes as appropriate to help
people Most middle managers have already experi-
enced an intensification of their workloads
■ let go of the past; because of the downsizing of the 1990s.
■ come to an understanding of what is Change creates an additional workload.
expected of them in the future;
Middle managers can help themselves by
■ take on board their new roles, responsi- forming peer support groups and networks
bilities and relationships. within which they can