Chapter 2 The Nature of Change
The chapter: Discusses a number of frameworks for categorising change. Explains why, in order to be effective, it is necessary to understand the differences between various types of change. 2
Emphasise the complex nature of organisational change; Describe and discuss the multi-dimensional nature of organisational change; Analyse change situations in order to choose appropriate methods of managing and implementing change; Recognise that there are limitations to the ‘common-sense’ approach to managing change that assumes that change can be planned as a logical. Step by step, sequence of activities. This because of cultural, political and leadership dynamics. 3
Background: A definition of strategy
the direction and scope of an organisation over the long term which achieves advantage for the organisation through its configuration of resources within a changing environment to meet the needs of markets and to fulfill stakeholder expectations. Source: Johnson, G. & Scholes, K. (1993) Exploring Corporate Strategy, London, Prentice Hall, p. 10.
Ansoff & McDonnel (1990) (recap) – Level 1. Predictable – Level 2. Forecastable by extrapolation – Level 3. Predictable threats & opportunities – Level 4. Partially predictable opportunities – Level 5. Unpredictable surprises Strebel (1996) – Weak forces – Moderate forces – Strong forces Stacey (1996) (recap) – Close to certainty – Far from certainty 5
Varieties of change (overview)
Grundy (1993) – Smooth incremental – Bumpy incremental – Discontinuous Tushman et al (1986) – Converging (fine-tuning) – Converging (incremental) – Discontinuous or frame-breaking Dunphy & Stace (1993) – Fine tuning – Incremental adjustment – Modular transformation – Corporate transformation 6
Varieties of change (Grundy)
Smooth incremental – evolves slowly, in a systematic and predictable way. Bumpy incremental – periods of relative quiet interrupted by sudden bursts in the rate of change (e.g. re-organisations). Discontinuous – ‘divergent breakpoint’, changes involving crisis, breakthrough, response to high turbulence.
Major Types of Change (Grundy)
Rate of change
Smooth incremental Bumpy incremental
Source: Grundy, T. (1993) Implementing Strategic Change, Kogan Page, p. 25
Varieties of change (Tushman et al)
Converging (fine-tuning) - trying to do better what is already being done well. Converging (incremental adaptation) - small changes in response to small shifts in the environment. Discontinuous or frame-breaking – major, rapid (spread over 18-24 months) and revolutionary changes in strategy, structure, people & processes in order to meet radically new or different circumstances. Also termed ‘upheaval.’ Most organisations follow a pattern of convergence/upheaval cycles. This pattern can apply at all levels (department, unit, corporation). 9
Pressures for Frame-breaking Change
Industry discontinuities, e.g. sharp changes in the legal, political or technological conditions which shift the basis of competition Product life-cycle shifts, i.e. strategic change to fit the next stage of the cycle Internal dynamics, e.g. new management team, with different strategy preferences
Examples of Frame-breaking Change
Change of mission or core values Power shifts, resource reallocation Total reorganization New workflow procedures New CEO coming from outside
Scale of change (1) (Dunphy & Stace)
1. Fine Tuning.
At departmental level. Making re-alignments to ensure that there is a match between strategy, structure, people and processes.
2. Incremental Adjustment.
Bit by bit changes to match the changing environment. Minor modifications to strategies or structures….. 12...
Please join StudyMode to read the full document