Strategic International Business Management Change Report Analysis

This report provides an in-depth analysis of strategic change management within the context of international business. It begins by establishing the importance of change management in response to global challenges such as economic instability, technological advancements, and evolving market demands. The report then delves into several key theoretical models, including Lewin's Change Management Model, the McKinsey 7-S Framework, and Kotter's 8-Step Change Model, evaluating their strengths, weaknesses, and practical applications. It explores the different stages of each model and highlights their advantages, such as employee involvement and knowledge sharing. Furthermore, the report examines the critical role of leadership in driving successful change initiatives, emphasizing how leaders can mitigate resistance and foster a culture of adaptation. By comparing and contrasting these frameworks, the report offers valuable insights for executives seeking to transform their multinational firms and navigate the complexities of the global business environment. The report concludes with a discussion on the practical implications of these models and the factors that contribute to successful change management outcomes.

Strategic International Business
Management

TABLE OF CONTENTS
Abstract............................................................................................................................................1
Introduction......................................................................................................................................1
Section 1.................................................................................................................................1
Section 2.................................................................................................................................7
Section 3.................................................................................................................................8
Section 4.................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Abstract
In the wake of various threats arising from different areas in the global world, e.g.
unstable economic growth, climatic changes, evolving political crisis, technological change,
pressure arising from change in demand, competition etc., Management of Change has
become an important topic for every business.
This report aims to evaluate the utility of theoretical models of change for executives who
are looking to transform ways of working within their multinational firms.
But before I go into the detail, I would firstly like to establish the meaning of Management
of Change and why it is important.
Introduction
Often, people or organizations that succeed usually have similar traits or ability to manage
changed circumstances.
Before I proceed, I will like to establish the meaning of “Management of Change”. The two
words “change” and management” work together. In simple terms, change can be referred to
as moving from point A to Z. However, in between point A and Z, the ability to plan,
analyse and embark on the journey in the midst of uncertainties can be referred to as
“management”. Robert A., Paton & James McCalman, (2008)
It is not as simple as it sounds, managing change can be very complex in the sense that, it is
often associated with uncertainties. As you resolve one issue, another one arises so it’s an
ongoing process Lawler (1986).
Section 1
There have been different studies and research about Change theories, models,
techniques etc which have some level of credibility in delivering change within an
organization Todnem By, (2005) cited in Robert A., Paton & James McCalman, (2008)
What is Change? Why Management of CHANGE?
Over the years, there has been so many changes experienced by organizations around
the world. With the emergence of Technology, internet has encouraged globalization and
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thus, this has reshaped the way organizations deal with their customers. J. Balogun, and
Hope Hailey (2004)
In addition, there has been a lot of external pressure which requires organizations to
embrace changes. Some of which are Changes due to Climate which has a direct impact on
the organizations and the people as a result of change in Government Legislations
Changes due to Government Regulations- A good example is the implementation for
Ring-Fence Program in the UK. Ring-fence requires Banks in the UK to separate their retail
banking services from the high-risk investment banking. This was in response to the Global
Financial crisis of 2008, and the aim was to enable UK Government to Insulate vital banking
services on which households and SMEs depend FCA (2017) and lots more
As a result of the above mentioned, Management of Change has become imperative
all over the world. Multinational firms need to respond towards growing pressure from both
internal and external sources to keep excelling in business.
From the above points, the concept of change is similar to many organizations
change but how each of them respond to the change will be determined by a range of
circumstances. Ability to understand how to respond or approach change is a key to success
for Change Managers.
Lewin's Change Management Model
Sometimes in the 1950s, a physicist Kurt Lewin developed a model for managing change.
The model has 3 stages- Unfreeze-Change-Refreeze
Unfreeze: At this stage, steps are taken to change the existing attitudes of workers while
preparing them for change through effective communication. Also, employees at all levels
are actively involved in the process through effective communication from leaders regarding
the issues related to change process (Porras & Robertson, 1992 cited by Syed Talib Hussain
et al)
Change: The change stage is associated with effective communication and employees’
empowerment to embrace the new way of working. Also, at this stage, problems are
identified and resolved in a progressive manner.
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Refreeze- The final stage of Lewin’s model is Refreeze. At this point the benefits of the
implemented change is being realized and the organization starts getting towards stability.
At this point, high performing employees are being rewarded and motivated for achieving
excellence.
Advantages of Lewin’s model
Employee involvement in Change process; One of the key strength of Lewin’s model is
the involvement of employees in the change process. According to Vroom & Yetton, (2003)
cited by Syed Talib Hussain et al) Employees participation in the change process is an
effective strategy as it helps to deliver implement change more effectively and it helps to
minimize resistance to change. This aims to enhance employees’ interest and commitment to
change.
The model also encourages leaders to communicate and operate in a transparent manner to
the employees. Morgan and Zeffane (2003) affirmed that during a change process, leaders’
transparency and involvement of employee’s participation; allowing their opinion etc., will
yield better result
Knowledge sharing in the Change Process; As a current employee of a leading Consulting
firm Accenture, knowledge sharing has been an important tool helping us to succeed in our
various projects.
Lewin’s theory believes in Knowledge sharing among employees during a change process.
Wenger, McDermott, and Snyder (2002) affirmed that sharing of knowledge among
employees is very useful for an organization
Robert James Howlett (2010) defines Knowledge transfer as a means of achieving
competitive advantage in an organisation. It indicates the means by which knowledge
capabilities and skills are transferred from the knowledge source or base to the people in
need of the particular knowledge
Critics of Lewin's Change Management Model
Kurt Lewin’s 3 steps model of change was widely accepted and used by organizations
for over 40 years. However, his model has had major critics. The major critics was that
Lewin’s theory is suitable for small scale change projects and that he also assumed
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organizations will function in a stable state and has ignored the significance of
organizational politics) Dawson, P. (1994
Also, a group of researchers argue that organizations are never frozen, much less refrozen,
but are often known with many ‘personalities’ such that they overlap and interwoven one
another in important ways”
Burnes (2000, p. 283), also criticised Lewin’s model by saying that change is an ongoing
process with no definite end point.
Furthermore, many researchers disagreed with Lewin' planned approach. They see it
as being too simple in a world where change is an open-ended process (Dawson, 1994;
Garvin, 1993; Kanter et al., 1992; Nonaka, 1988; Pettigrew, 1990a, 1990b; Pettigrew et al.,
1989; Stacey, 1993; Wilson, 1992) cited by Bernard Burnes (2004)
They also argued that Lewin’s model did not take into consideration the influence of
politics and power in organizations and that his theory is more relevant for an incremental
change and not able to handle transformational changes (Dawson, 1994; Kanter et.al., 1992;
Wilson, 1992) further criticised Lewin's theory that he only considered a top to bottom
approach of management to change but ignored circumstances that could require bottom to
top change approach.
In conclusion, despite of various critics Lewin's change model attracted, most of
these are believed to be based on a shallow understanding of his findings. On the other hand,
many organizations have developed interest in understanding and applying his approach to
change.
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Illustration 1: Lewin’s Framework for Change
(Source: NHS Northwest, 2016)
The McKinsey 7-S Framework
According to the McCalman and Siebert, (2016) It is model or the tool which help
the organisation to analyse the company's design by looking at the seven internal elements
such as Strategy, Structure, Systems, Style, Staff, Skills and Shared values so that firm can
identify they are effectively aligned or they are allowed to achieve the ventures objective.
This model was developed by the McKinsey consultants Tom Peters, Robert Waterman and
Julien Philips with help from Richard Pascale and Anthony G. Athos in the 1980's.
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Illustration 2: 7-S Framework
(Source: The McKinsey 7-S Framework, 2016)
There are three hard S’s that are Strategy, Structure and System and four soft S’s that
are Style, Staff. Skills and Shared values, that components are as follows:s
 Strategy: It is framework or the plan which is made by the company so that they can
gain competitive advantage in the market. A sound strategy is the one which is for
long run growth, properly articulated and helps to gain the competitive advantage.
With the support to vision, vision and values, strategies are made.
 Structure: It is the process where the organisation units and division is being
organised. It includes all the information which is related to who is accountable for
whom, in simple words it can be said that it is company’s chart of the firm.
 System: It includes the procedures and processes of the organisation which state
different activities and processes of how the decision are being made
 Skills: These are capabilities of employees of organisation that how they perform
and where their effectiveness lies. It also includes workers abilities and
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competencies. When the organisational change take place, question arises that will
the company have desired skills to implement change.
 Staff: It is concerned with what type of and how many workers are there in the
venture and how they will be placed, recruited, trained, developed, rewarded and
motivated so that they do not resist to the change.
 Style: It is the way where the organisation is being managed by the top-level
executives. How they act and interact and what are their symbolic values are being
find out.
 Shared values: It consists of all the values, standards and norms which guide the
company's action and employee’s behaviour, they are the foundation of the
organisation
Thus, these 7 S’s help the organisation to effectively adopt the different changes that
are taking places in the company such as technological, strategical change. From this model,
it can be find that how these 7S are being interrelated with each other.
Kotter’s 8 Step Change Model
In contradictory to the Lewis and Cantore, (2016) this model is developed by the
John Kotter, he found that there are 30% chances that organisational change succeeds.
Mostly companies fail to execute change in their organisation due to several reasons such
employee resistance, lack of fund etc. He has given the following steps which can help the
firm to implement change in an effective way and which leads to success.
 Create urgency: The firm should communicate to all the employees that there is an
urgency for the change which should be open and require to be convincing and
honest dialogue. This will spark motivation among all members of the organisation.
 Form a Powerful Coalition: The company should create a powerful team which
only works for the change and occupy themselves in related activities. The manager
of the group should motivate and encourage workers to adopt the constructive
approach (Morin, and Parker, 2016).
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 Create a vision for change: The company should formulate clear vision which can
be understood by all members of company. The vision should communicate that they
can be achieved in agreed time frame.
 Communicate the vision: The vision must be communicated to all the members of
the firm who are involved and effected by change. Vision creates a clear picture that
what is to be done.
 Remove obstacles: There are several issues that come over when the change is being
executed such as lack of funds and resource unavailability, employee’s resistance etc.
so the organisation should manage these problems and resolve them at the earliest.
 Create short-term wins: The company must create short term goals so that
employees have clear image of what is going and this will motivate them as they will
able to analyse the success.
 Consolidate improvements: As change takes time to be achieved and that should be
driven into overall corporate culture so the company must keep look on the different
improvements (Cummings and Brown, 2016).
Section 2
How leadership can help in change management
There are several ways by which leadership can bring the change in management of
an organisation. Leadership is the biggest factor that resist to the change. Leaders should
understand that why change is being needed in the company and how it will affect the
internal and external environment (Pugh, 2016). Leaders are the individuals who can directly
deal with the different issues in the change, create the proper vision and mission and tie
change with the different goals.
Employees play key role in executing the change within the Accenture because they
are the only people who can adopt the change and work upon it. It is the best way that is to
motivate the employee so that they do not resist change. The company can adopt the
Maslow’s need hierarchy theory which help the members of the organisation to adopt the
change (Clegg, and Matos, 2017).
How time management can help in change management
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There are several activities that need to be done while implementing change in the
organisation, so the managers make the plan for it, there are many activities in the plan and
each task is given the time frame to be finished. So, time management plays significant role
in change management (Lozano and Ceulemans, 2016).
Section 3
The recommendation is given from the analysis made in the report that the
organisation should follow the different theories given by the different authors. They must
follow all the stages in the process of Kotter’s 8 Step Change Model so that they cannot fail
in implementing the change. Leadership, motivation and change management plays very
important role, so the company should lead and motivate employees (McCalman and
Siebert, 2016).
Section 4
CONCLUSION
It can be concluded from the project report that there are several theories which are
given by the different authors and their implementation is based on different situations. The
report state that many changes takes places after the change and it will help the organisation
to gain competitive advantage.
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REFERENCES
Books and Journal
McCalman, J. and Siebert, S., 2016. Change management: a guide to effective implementation.
Sage.
Lewis, S. and Cantore, S., 2016. Appreciative inquiry for change management: Using AI to
facilitate organizational development. Kogan Page Publishers.
Pugh, L., 2016. Change management in information services. Routledge.
Clegg, S.R. and Matos, J., 2017. Sustainability and Organizational Change Management.
Routledge.
Lozano, R. and Ceulemans, K., 2016. Elucidating the relationship between Sustainability
Reporting and Organisational Change Management for Sustainability. Journal of cleaner
production. 125. pp.168-188.
Morin, A.J. and Parker, P.D., 2016. Longitudinal associations between employees’ beliefs about
the quality of the change management process, affective commitment to change and
psychological empowerment. human relations. 69(3). pp.839-867.
Cummings, S and Brown, K.G., 2016. Unfreezing change as three steps: Rethinking Kurt
Lewin’s legacy for change management. human relations, 69(1), pp.33-60.
(Robert A., Paton & James McCalman, (2008) Change Management; A guide to effective
Implementation).
http://www.nwacademy.nhs.uk/sites/default/files/
86_1722011_lewin_s_change_management_model.pdf
(Bernard Burnes (2004), Kurt Lewin and the Planned Approach to Change:
A Re-appraisal, Retrieved on 19/08/2017 from
http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6486.2004.00463.x/full)
(Burnes (2000, p. 283), cited by Dawson, P. (1994))
(Kanter, Stein, & Jick, 1992, p. 10 cited by Dawson, P. (1994)
(Robert A., Paton & James McCalman, (2008) Change Management; A guide to effective
Implementation: Introducing Change management)
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