Strategic Change Management: Models, Techniques, and Need for Change at FP

This presentation discusses the models of strategic change, their relevance, value of strategic intervention techniques, need for strategic change at FP, assessing the factors influencing the need for strategic change, and impact on resources if not responded on change.

STRATEGIC CHANGE MANAGEMENT
Task 1 & 2

Models for strategic change
Kurt Lewin model: It is a change model that involves three main steps that could be considered by
organization while planning and implementing change. The main stages are, unfreeze, change and
freeze. In the first stage organization identifies the need of change and become prompt to move from
present comfort zone. The next stage can be determined as transitional stage where individual start
accepting change by taking new responsibilities, role etc. It is important stage that requires both time
and resources. The next stage involves freezing the change within business. With this aspect, company
ensure that change is accepted and become the new standard for company.
Action research: It is reasoned as a process which assist in effective understanding of different changes
that are taking place within FP. Action research is advantageous to accomplish information regarding
different strategies which can render assorted kinds of improvement within system. In the support of
this, it can be aforementioned that the action research cycle principally centered on four key steps such
as empowerment of individuals, collaboration through participation, social change and acquisition of
knowledge.
Gap Analysis: It is an important tool that help management in deciding what they can do to meet the
objectives of project. It help in comparing the present performance with the desired one. Gap analysis
help in making optimum use of the available resources.

Lewin Model

Action Research Model

Relevance of models of strategic change
 Kurt Lewin Model: It help in institutionalizing the change and ensuring that the
desired change is accepted and maintained into the future.
 Gap analysis: With the help of gap analysis model, FP can measure the difference
between the desired performance with present one. The desired state of
performance will be the objective of company through which the success of the
process will be calculated.
 Action research: It is a approach which assist business organizations to meet
objectives in effective manner and overcome number of issues. beneficial for
effective acquisition of practical knowledge which can amend the day to work
practice and lead business to impressive success.

Value of strategic intervention techniques
Strategic intervention techniques are the set of planned activities, actions that assist
business in improving its present performance and effectiveness.
 Autocratic v/s participative style: In autocratic style the change is imposed on
the stakeholders without consulting them. This is important approach when change
becomes urgent and organization does not have much time. The participative style
is when management take change decision after discussing stakeholders and
considering this interest.
 Proactive v/s reactive: Proactive change is initiated by company because it is
desirable to do so. On the contrary, reactive change is made important by extrinsic
forces.
 Contingency: It refers to actions taken by organization as per the prevailing
situation. For instance, expansion by rival organization in new market can give
them first mover advantage over the company. Further, it can limit the market
share for FP. Therefore, it becomes important for it to implement change.

Need For Strategic Change at FP
In order to sustain in long run it is becoming importnat for company to enter in foreign
market, India or China. Change is becoming a priority for Framlington property,
due to following factors:
 Decline in demand of property in home country.
 Credit crunch in UK making difficult to obtain finance from banks.
 Decline in property prices in UK
 Falling profitability and faliure to cover overheads.
 Unfavorable cash flow at present
 Tightening of mortgage loans
 Under supply of properties in London and major areas of UK.

Assessing the factors influencing the need For Strategic Change at FP
There are ample number of opportunities in markets of China and India that can
be encashed by company to enhance its profitability like,
 Demand of 10m house every year in China as around 13 million marriages
take place every year.
 30% of depoist is required to develop residential property in China while in
UK is requires 40% of deposit.
 Availability of cheap labor in India
 Growth in property prices is only 5% in Uk while in China it is 9% average
annual growth.
 Restriction on iceberg development in UK while it is still unresistricted in
China and India.

Impact on resources if not responded on change
If company fails to respond on changes in proper time than it will have serious
affect in terms of following factors
 Human resources: The skilled resources within company will remain
under utlized. The employees may shift towards rival organization
performing better and providing attractive salary. Due to non
implementation of change, FP will not be able to cover its overheads
especially salary leading to high employee turnover.
 Physical resources: The physical resources of company will not be
utlilized properly like, equipments, contruction machines, building etc. The
company will still have to pay fixed cost increasing the overall expenditure
of organization.

REFFERENCES
Johnson, G., Scholes, K. and Whittington. R., 2006. Exploring corporate
strategy. Prentice hall.
Paton, R. A., and McCalman, J., 2008. Change management: A guide to
effective implementation. Sage.
Dlabay, L, Burrow, J.L. and Kleindl, B, 2011. Principles of Business. Cengage
Learning
Johnson, G., Scholes, K. and Whittington. R., 2006. Exploring corporate
strategy. Prentice hall.