F9 Strategy Implementation PDF

Preview

Summary

OBLIGATORISK INLÄMNING...

Description

F9 STRATEGY IMPLEMENTATION

Strategy and Organization

-

The shape of the organisation and structure are a consequence of the chosen strategy. Making rational strategic decisions to make strategic decisions. That was challenged: ORGANIZATION: DIVISION of KNOWLEDGE Cooperation - Aligning interests and goals - Principal –Agency Organizational Solutions ● Control mechanism ● Performance incentives ● Shared values & culture Coordination - Harmonize and timing Organizational solutions ● Rules & directives ● Routines ● Mutual adjustment

CLASSIFICATION of ORGANISATIONS

CONTINGENCY THEORY ● Not a best way to organise

Mintzberg´s five structures - Organizational archetypes Tend to be grouped together – and some combinations seems to be more relevant than others Any organisation can be explained by these FIVE tasks to be done. The empirical evidence agreed that there were five generic archetypes: ● Simple structure ● Machine bureaucracy ● Professional bureaucracy ● Divisionaliszed form ● Adhocracy – more flexible that put effort on change All follow the continuous logic that some were a better fit of the nature of the firm.

ORGANISATIONAL ARCHETYPES

CULTURAL PERSPECTIVES on ORGANISATIONS

The iceberg: There are hidden assumptions that shapes and dictated how we are. This makes organisation different.

INSTITUTIONAL THEORY Institution A ‘role-model’ to avoid chaos! Taken for granted – Based of evolved feedback A category of functions in society (‘Banks’ as financial institutions – ‘a model’) ● Hard (The Central Bank) ● So (Behaviour)

Shared expectations. Our society are dependent on social manners, fex traffic lights and following traffic rules. We take some things for granted – stability of a bank, social systems. Social patterns, expectations Norms –Social Stigma Class, Gender X-mas vs. Halloween & Easter We act accordingly to the “rights” and “wrongs”, social rules. It makes sense that we celebrate Christmas in the winter, not in the summer. The more we reinforce patterns, the more they make sense. Things might sense, such as Halloween Emergence Structuration & RE-productions Sociology – A Giddens Kindergarten – Gender Legitimacy ● Resource mobilization ● Isomorphic behaviours Legitimacy & Decoupled systems External legitimacy ● Management fads & management consultancy? ● Resource mobilization and Bubbles? EXAMPLE: Universities adopting new types of thinking, but on the surface they are doing the same things as they have always done. Informal systems ● Reorganizations just for show: actions & power ● Informal organizations ORGANIZATIONAL INFORMATION THEORY The organisation is a system for information exchanges and decision-making Assumes the organization in an information rich ever-changing environment The organization as a system of systems; loose coupling with external systems (might have, or not influences impact...) People are less determined by traits/personality nor roles, contracts but dependent upon contextual interpretation, cultural and social influences (degrees of freedom) Information is equivoque, numerous, incomplete, uncertain information. Open for personal subjective interpretation Senders, Receivers, Message, Medium

Sea of information that surrounds the organisation is full of ambiguous, uncertainty. So, information systems: what are the logics in the organisation and how do we interpret new information and what to make of the external surroundings. How do the organisation filter information and try to make action?

Select (filter) – collectively in the organisation you need to select and view new information. Based on company’s self-interpretation they act and see somethings differently. What they see important are not same between different organisations. Retain (historically based, retro-perspective) Enact (interpret, collective) Strategic Groups and decision making/strategy Similar, mental representations about industry and strategy

Change Management "Everybody has accepted by now that change is unavoidable. But that still implies that change is like death and taxes —it should be postponed as long as possible and no change would be vastly preferable. But in a period of upheaval, such as the one we are living in, change is the norm." Peter Drucker Management Challenges for the 21st Century (1999

IMPLEMENTING STRATEGY As Change Management ● Is a process, not an event. ● Is made by individuals, then organizations – More about the individual and creating commitment in the process of change. ● Is a highly personal experience for those involved – If it involves individual it involves social experience and human resource aspects. ● Involves gradual growth in feelings and skills

THINKING ABOUT BUSINESS CHANGES: PLANNED vs EMERGENT CHANGE

Small scale Organization-wide change Localized change Behaviour/attitude change Technical or structural change Different types of approaches to change matters. So, they can be rationally planned and carried out in a predictable change. These are more adaptable in smaller organisations. Uncertain changes – new changes come out in the process itself, and more adapted in broader organisation. If the changes include more behavioural aspects, it is also more radical and turbulent.

THE EMERGENT APPROACH TO CHANGE Managers are ● Facilitators rather than doers ● Takes responsibility for the process (of change) rather than the content-the destination... Have the prime responsibility for developing a collective vision or common purpose Gives direction which appropriateness of any proposed change can be judged A manager involves or are responsible for ensuring change, implementation. So, the manager becomes more of a facilitator. That means that the responsible manager can’t really plan or control but becoming more a facilitator of the change rather than a decision-maker. But the facilitator needs to steer the change. The key organizational activities Running the process! ● Information-gathering – about the external environment and internal objectives and capabilities ● Communication – the transmission, analysis and discussion of information

● Learning – the ability to develop new skills, identify appropriate responses and draw knowledge from their won and other’s past and present actions The manager needs to ensure that the process is evolving, ex ensuring communication to distribute visions WHY and WHAT direction the change is going.

DIFFERENT STRATEGIES of CHANGE Technical/Rational strategy of change ● Focus on changing/maintaining the formal structure ● Technical/rational analysis of need for change ● Design of processes and deadlines ● Structural rationalization ● Time planning ● Top-down implementation Humanistic/Cultural strategy of change ● Focus on the informal organization, traditions, values, norms and underlying values ● Strategic communication externally and internally ● Creation of positive stories ● Charismatic leadership ● Process management Political strategy of change ● Focus on resources, stakeholders and key actors ● Goal and means, power structures and coalitions ● Formation of coalitions as preparation for change ● Establishing strategic consensus on vision and goal ● Structural adaptation and selection of leaders/managers ● Direct confrontation of problems Exploratory strategy of change ● Focus on discovering new ways of addressing problems, solutions and actors ● Local experimentation, interpretation and praxis-based learning ● Delegation of responsibilities to communities of practice ● Focus on specific tasks and praxis ● Experimentation ● Reflecting and learning

Borum, 1995 Different way of looking at change processes – kind of the contingency theory in change.

CRACKING the CODE of CHANGE

Looking at change (Beer and Noria) ● Theory E: Rational and economic way and economic logic in incentives OR: ● Theory O: Humanistic way of looking at change These are always present, but more emphasis on one of them depending on the organisation.

WHAT is the REAL PROBLEM? The Manager & Change agent perspective: I’m going to start a change to make things better– I’m going to make your work more productive, more effective, and more enjoyable... ...so why should you resist this change? Why caring about change processes – the manager typically has a problem in achieving change in the organisation. Oen a comes at a cost. Every change is associated as being problematic. If there is a problematic change – it is an issue, especially if there is a manager...? The problem is to be overcome by the manager.

NECESSITY... ● The need for change is not justified -it’s unclear what the problem to be solved is... ● “Why are you bothering me –I don’t see/understand the need for change you are talking about”

...LACK of CONTROL ● It’s not our change–it’s your change

● Expert teams analyse, plan and decide what the change should include–and communicate this to the rest of the organization ● Why are you here and interfering with my work–you don’t really know what my job is about! Either as a manager or a member within the organisation.

...LACK of COMMUNICATION ● Communication is limited to only a few memos. ● The head of the company makes many speeches but everybody else remains silent. ● There is an effort in communicating the vision, but the behaviour of some highly visible individuals conflicts with the message communicated and employee’s cynicism results. Emphasising issues in communication.

...LACK of TRUST ● The employees do not trust the plan, managers, solutions etc. ● Is there a hidden agenda? ● A high degree of trust: if you say “jump” I’ll jump and trust that you will catch me

...EXPENSES ● Change requires extra resources (time, human capital, financial capital, social capital) ● Lack of resources or lack of priority ● I understand the change you are suggesting, but we can’t afford it right now or I am too busy with other things Cost of accomplishing change itself – so, a resistance in change and questioning if the change is necessary. ...AMBIGUITY ● Strategic plans defining long-term goals –but oen lack specification of short-term action plan. ● I agree with your strategic plan, but what exactly are you proposing –what should I do Monday morning to achieve this? Braking habits and ambiguity

...COMFORT LEVEL ● Contempt with status quo and no immediate negative consequences of lack of change ● We’re happy and doing good –change is difficult and risky –so why should we do it?

Feeling of every day situation that is broken by the manager wanting change.

...INCOMPETENCE ● Anxiety of being incompetent in the change tasks/functions ● Incompetence is not rewarded –hence something to be avoided. ● I’m afraid I won’t be able to learn the new skills required from me. Going in to change circumstances puts some competence needs of how to perform the new tasks within the change...? ...RISK ● Success is uncertain in a change process. There is no guarantee that the planned change is the right solution. ● How do we know for certain that your change is going to solve the problem? Isn’t it better to stick to what we know?

...FLAWED ● What you’re proposing isn’t a perfect solution ● Clarify the list of criteria on which your decision is based. Visualize the thoughts and analysis behind the suggested change

...LACK of LEADERSHIP ● You’re not committed (Management) –so why should we be?

...PAST EXPERIENCE ● Not every change process is a success or achieves the envisioned goals. When introducing new change initiatives such past experiences will have an influence ● We’ve tried that before –it didn’t work then, it won’t work now. ● I’ve done this before, you haven’t, so why should I listen to you?

...EGO PROTECTION ● Changes affecting the formal and informal power structures in the organization ● To embrace change I must admit that I was wrong/doing something less than optimal ● Stalling the change gives me power ● Office politics

...PERSONAL CONFLICT ● Changes requiring change of time plans, overtime etc. has an effect beyond the workplace

● To change I must break personal commitments

...IRRATIONAL ● Another common reason for resistance to change –but difficult for analytical and rational change managers to handle. ● Nope –I don’t want to do it, I have no reason, just go away!

...IMPATIENCE ● Lack of change progress causes people who are committed in the beginning to start losing interest. ● Lack of ability to explain why the process is taking time. ● The change isn’t moving fast enough –we’re losing faith in the process and are no longer interested. ...and the list continues ... (Causes of resistance, individual level)

BARRIERS - RESISTANCE TO CHANGE Individual psychological level explanation: Dominant explanation in the 1960-80ies ● However,... Belief... but truth? Does people resist change per se? Rational acting employees ● May resist loss of status, loss of pay, or loss of comfort, but these are not the same as resisting change ● May resist the unknown, being dictated to, or management ideas that do not seem feasible from the employees’ standpoint Findings: Problems need to be on an organisational, employee-level rather than on manager-level.

TOP 10 CHANGE BARRIERS FOUND FORTUNE 500 COMPANIES (by senior managers...)

Barriers for change and requirements for resources to change.

AT THE TOP AND or at the BOTTOM? The phrase overcoming resistance to change implicitly suggests that the source of the problem is solely within the subordinates BUT ● In a study of 3000 Ford managers, discovered that middle managers blamed executives above them for resisting change efforts! (Spreitzer and Quinn, 1996) ● People in power (top managers) will work toward maintaining the status quo, not dramatically changing it! (Smith’s, 1982) The root of the problem is oen pointed at each other. Managers blame the employees and vice versa. Perhaps resisting is not bounded to where you are in the hierarchy.

KURT LEWIN´S - FORCE FIELD ANALYSIS Findings: Don’t only look at individuals If individuals are prone to change – we need to look at change in systems Systematic interdependence that makes it hard to have change efforts. An organisation is based on systematic interdependence – we are dependent on each other. My change will influence the people that are dependent on me. So, it is rather the interactive relations between one another, rather affective on individual level. So, if organisational changes are made and my relations to the people who make the change, are affected. ฀ The fault is in the system, rather than the resistance in individuals – changing responsibilities and tasks affect the system that create barriers. So, the fault is not on individual-level. Forcing the employees to go back to their old responsibilities because of the fault of individuals in the system of interdependencies. EXAMPLE

This resulted in a model:

THE CHANGE PROCESS: UNFREEZE ● Disconfirmation of the validity of status quo, ● Induction of guilt or survival anxiety ● Creating psychological safety ● Breaking with the comfort zone ● “Pushing” for change readiness Methods for unfreezing: ● Burning platforms: Expose or create a crisis. ● Challenge: Inspire employees to achieve remarkable things. ● Command: Just tell them to move! ● Evidence: Cold, hard data is difficult to ignore. ● Destabilizing: Shaking people of their comfort zone. ● Education: Teach them to change. –Management by Objectives (MBO): Tell people what to do, but not how. ● Restructuring: Redesign the organization to force behaviour change. ● Rites of passage: Hold a wake to help let go of the past. ● Whole-system Planning: Everyone planning together. Eight step process – initial stage of changing where we need to give up old system. Unfreezing: to make sure people engage in uncertain process. Then the actual transition from one way to the (hopefully) better way. It takes time to embedded this and create new expectation of the new normal. Also, it creates new relations within the organisation.

THE CHANGE PROCESS: TRANSITION ● Change is a journey not a single step ● It’s a journey which requires social interaction ● Transitioning requires time. ● High levels of anxiety are expected Methods for transitioning: ● Boiling the frog: Incremental changes may well not be noticed. ● Challenge: Inspire employees to achieve remarkable things. –Coaching: Psychological support for executives. ● Facilitation: Use a facilitator to guide team meetings. ● First steps: Make it easy to get going. ● Involvement: Give them an important role. ● Management by Objectives (MBO): Tell people what to do, but not how. ● Open Space: People talking about what concerns them. –Re-education: Train the people you have in new knowledge/skills. ● Restructuring: Redesign the organization to force behavioural change. –Shi-and-sync: Change a bit then pause to restabilize. ● Stepwise change: breaking things down into smaller packages.

THE CHANGE PROCESS: RE-FREEZE ● Put down roots again and establish renewed stability ● Oen a rather tentative process -a state of 'slushiness' where freezing is never really achieved (theoretically making the next unfreezing easier). ● Slushiness potentially causes “change shock”; low level of efficiency and effectiveness as they await the next change. Methods for freezing: ● Burning bridges: Ensure there is no way back. ● Evidence stream: Show them time and again that the change is real. ● Golden handcuffs: Put rewards in their middle-term future. ● Institutionalization: Building change into the formal systems and structures. ● New challenge: Get them looking to the future. ● Rites of passage: Use formal rituals to confirm change. ● Socializing: Build it There is a problem associated with the transition period: a risk of going back to the previous state. Uncertain future. Emphasising that the managerial process needs to be integrated...?

KOTTERS METHOD for IMPLEMENTING ORGANISATIONAL CHANGE

8 steps that emphasized the need of urgency of convincing members to engage in the process of change. Some sacrifices come with change.

LEADING CHANGE 1. Establish a Sense of Urgency ● Talk of change typically begins with some people noticing a vulnerability in the organization. ● The threat of losing ground in some way sparks these people into action, and they in turn try to communicate that sense of urgency to others. What works: ● Show others the need for change [use valid information and data] ● Never underestimate how much complacency, fear and anger may exist The need of accomplishing this change and explaining the benefits of change. Motivational force to engage in the change 2. Form a Powerful Guiding Coalition ● Form a group that has the capability to guide the change process What Works: ● Showing enthusiasm and commitment ● Modeling trust and teamwork Someone responsible for the change. Thinking about leading and including members and not think that change happens by itself. What happens and how do people react. So, change needs LEADERSHIP to be successfully managed. 3. Create a Vision ● Create the right vision and strategies to guide action What Works: ● Trying to see -literally-possible futures

● Vision so clear-it can be articulated in one minute or written on 1 page Shared vision explains and the feasibility of being better. 4. Communicate the change Vision ● Communicate change vision and strategies to create understanding and buy-in What Works: ● Keeping communication simple and heartfelt-not complex and technical ● Know what your people/personnel are “feeling” ● Speak to anxieties, fear, confusion, anger Someone responsible of communicating the changes and the vision with it. 5. Empower Others to Act on the Vision ● Deal effectively with obstacles that block action. What Works: ● Find people/personnel with change experience who can state “we won, and you can too” Individual involved in the change need to have their own em...