IMPLEMENTING STRATEGIC CHANGE
Strategic change is the movement of a
company away from its present state toward
some desired future state to increase its
competitive advantage by strengthening
company`s core competencies & building
new to compete effectively
Types of strategic change
– involves redesigning work, jobs, and
processes for the purpose of improving
quality, service, and speed
– Examination & change in :-strategy.
processes, technology, structure & culture.
– Fundamental rethinking & radical redesign of
business processes to enhance performance
2. Restructuring - reducing the size of the firm in
terms of number of employees, number of
divisions or units, and number of hierarchical
levels in the firm’s organizational structure
- also called downsizing, rightsizing or delayering
3. Innovation - is the process by which
organization use their skills and resources to
create new technologies or goods and
services so that they can change and better
respond to the needs of their customers &
it also opens the gate of success.
Determining the need for strategic change
• to assess the extent of incremental or
transformational change required, and
• To identify the specific barriers to change
-- Incremental change : view organization as a
‘social system’ which can and do change by
mutually reinforcing and amplifying stimuli
within their systems.
--Transformation change: takes place by more
substantial shifts resulting from an unfreezing of
the paradigm through challenge, information
building and experimentation.
BARRIERS TO CHANGE
• BEHAVIORAL RESISTANCE : inertial resistance
arises from existing perception, beleifs,work habits
and conscious resistance are deliberate actions or
inactions that is intended to delay or deny change
• RESOURCE CONSTRAINTS : include financial
resources, human resources ,etc
• ENVIRONMENTAL FACTORS : include regulations,
govt policies, lmport -export policy, environmental
• ORGANIZATIONAL OBSTACLES: includes corporate,
divisional,functional and individual obstacles
• CORPORATE OBSTACLES : Existing structure
& strategy of a company sometimes become
obstacle to change.
• DIVISIONAL OBSTACLES : in highly interrelated
divisions change in strategy is difficult as a shift
in one division operations affect other divisions
• FUNCTIONAL OBSTACLES : Differences in
functional orientations ,goals and different
reaction to the changes management proposes.
• INDIVIDUAL OBSTACLES : change involves
uncertainity that breed insecurity & fear.
Styles of managing strategic Change
• Education involves the explanation of the
reasons and mass briefing of strategy
• Participation in the change process is the
involvement of those who will be affected by
strategic change in the change agenda
• Intervention is the coordination of and
authority over processes of change by a
change agent who delegates elements of the
• Coercion is the imposition of change or
forcefully imposing change.
TACTICS OF CHANGE MANAGEMENT
1. CHANGES IN ORGANIZATIONAL ROUTINES :
Routines are prescribed way of doing things &
guide people to do their jobs
2. SYMBOLIC ACTIVITY : change process maybe
implied and by way of symbolic acts
3. BEHAVIOUR OF CHANGE AGENT`S : individual
traits, approach & achievements of executives can
signal powerfully the need of change
4. LANGUAGE USED BY CHANGE AGENTS : Change
agents may consciously or unconsciously use
metaphor to galvanize change.