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Process of Strategic Change Management - Doc

   

Added on  2021-05-31

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STRATEGIC CHANGE MANAGEMENT –724602

Executive summaryThis report has been prepared to gain a thorough insight into the process of strategic changemanagement for an organisation operating in the current economic conditions. The case beingstudies in the report is of Hi-Tech Electronics Pvt. Ltd., which is planning to undergo a majortransformation by implementing strategic change programs. The report discusses a number of change management models that can be used by businessorganisations to bring about changes in their workplace along with micro and macroenvironment factors that can force business organisations to implement workplace changes.Along with the change models, the report also discusses certain strategies that can be used bybusiness organisations to ensure stakeholder involvement in the change program. The reportalso discusses strategies that can be used by the managers to communicate the changeprogram with the stakeholders. The report will be helpful in gaining knowledge about changes in real world organisationsand how change programs can be managed to achieve better organisational results.

Table of ContentsExecutive summary............................................................................................................2Introduction......................................................................................................................4Company Background................................................................................................................41.1Models of Strategic Change...................................................................................5Kurt Lewin’s Change Model..........................................................................................................5Kotter’s Change Model.................................................................................................................6ADKAR Change Management Model............................................................................................81.2 Relevance of models of Strategic Change to organizations in current economy..........101.3 Value of using Strategic Intervention Techniques in an organization...........................112.1 Need for strategic change in an organization..............................................................122.2 Factors that drive the need for strategic change in an organization............................13Internal factors...........................................................................................................................13External factors..........................................................................................................................142.3 Resource Implications of not responding to strategic change in an organization.........14a)Financial implications.........................................................................................................15b)Human resources...............................................................................................................15c)Technological implications.................................................................................................163.1 Systems to involve Stakeholders in the planning of change........................................163.2 Change management strategy with Stakeholders.......................................................173.3 Evaluation of systems used to involve stakeholders in the planning of change...........183.4 Strategy for managing resistance to change................................................................184.1 Appropriate models of change....................................................................................194.2 Implement a model of change....................................................................................194.3 Appropriate measures to monitor progress................................................................20Conclusions and Recommendations.................................................................................21Bibliography.....................................................................................................................22

IntroductionCompany BackgroundHi-Tech Electronics Pvt. Ltd. is a multinational firm based in America that was founded bythe Parker family in 1978. The company manufactures and sells a number of consumerelectronic products, such as Personal Computers, LED TVs, cameras, smartphones, storagedevices, laptops, etc. and has been doing a good business since its foundation. The companystarted its international expansion in the early 1990s and as of today, it has its operationsrunning in 3 countries while its products are being sold throughout the world. The companyhas a workforce of around 1,700 employees who work in a streamlined organisationalstructure that comprises of different departments. The operational departments of thecompany are manufacturing and production, finance, human resource management andmarketing and sales. The company has been experiencing a number of issues in the past few months in relation tothe way in which it sends and receives information amongst various departments. The resultof these issues has been a 0.4% fall in the sales of the company within 2 months because ofloss of productivity and efficiency. After a number of meetings with the senior levelmanagers and the board of directors, it was identified that the company requires a full-fledgedERP business suite, which will be specially designed to cater to the operational needs of thecompany, to align the operations of all its departments and to make the process of sharing andreceiving information and data more effective. At present, the company uses traditional methods of establishing communication betweendifferent departments. Most of the information and date between various departments isshared by the managers using written or printed documents, e-mails, etc. but shifting to ERPbusiness suite will be a huge transformation as all the process of sharing information wouldbecome automated. Therefore, the company has decided to place an order for an ERPbusiness suite as soon as possible and start designing a change program that would engage allthe stakeholders and convince them to make a transformation from their previous workpractices to a better way of working.

1.1Models of Strategic ChangeUnder this section of the report, we will discuss three most talked about models of changemanagement, which have been developed by pioneers of the subject. These models are – KurtLewin’s 3 stage model, Kotter’s change management theory and the ADKAR model. Kurt Lewin’s Change ModelKurt Lewin, one of the pioneers in the subject of change management, developed a threestage model that includes three steps towards implementing a change i.e. unfreezing,changing and refreezing. The model developed by Kurt Lewin is widely used by businessorganisations in the present day world because of its simplicity and practicality [ CITATIONBer04 \l 1033 ]. The model is based on Lewin’s perception that for a change to beimplemented, there is a need to create an urgency, then move towards the change and finally,solidify or reinforce the new behaviour amongst the employees [ CITATION Bur171 \l1033 ]. Let us now discuss Kurt Lewin’s 3 stage model in detail:Unfreeze according to Kurt Lewin, in order to implement a change in the workplace, it isimportant for the managers to create an awareness amongst the employees that a change isrequired for the organisation to become more effective and productive. As it is a naturaltendency of human beings to resist changes, it is important that they perceive a change as an

urgency and are aware about the way in which the change program is going to help them andtheir company [ CITATION Hus16 \l 1033 ]. Changing this is the second stage in which the actual change takes place and the thingsbegin to move. Once an urgency has been established in the workplace, the next step is toimplement the change and make it real. It is in this stage that the employees have to changeand develop fear of the unknown in their minds. Therefore, it is important for managers to beprepared to deal with resistance to the change program and ensure communication and amplesupport to the employees [ CITATION Bur172 \l 1033 ]. In this stage, to increase the chancesof success, the managers should continuously remind the employees about the way in whichthe change will be beneficial for them as well as for the company. Refreezing this is the final stage in the model suggest be Lewin and is the most importantstage in a change program. He suggests that once the changes are accepted by the employeesand the managers can feel a change in their behaviour, the changes achieved should bereinforced into the organisation by rewarding and appreciating the employees [ CITATIONCum16 \l 1033 ]. This will help in reinforcing the right behaviour in the mind of theemployees so that the changes achieved are not lost. Kotter’s Change ModelJohn Kotter, another famous pioneer in the subject of change management, developed achange management theory that consists of 8 steps and is commonly known as Kotter’s 8 stepchange model. A detailed account of Kotter’s change model is given below:

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