Managing strategic change flashcards

Topic 10: Managing strategic change

The four types of change in the specification

Internal (starts inside the business), external (starts in the environment), incremental (small, steady steps) and disruptive (sudden and large).

Lewin's force field analysis: method

List driving forces (for the change) and restraining forces (against), score each, total each side and find the net score. Then reduce the strongest restrainers or strengthen drivers. Scores are subjective.

Kotter and Schlesinger: four reasons for resistance to change

Parochial self-interest; misunderstanding; low tolerance of change; different assessments of the situation.

Kotter and Schlesinger: six ways of overcoming resistance

Education and communication; participation and involvement; facilitation and support; negotiation and agreement; manipulation and co-optation; explicit and implicit coercion (fast but damages trust).

Mechanistic vs organic structure

Mechanistic: rigid hierarchy, narrow tasks, formal rules; suits stable markets. Organic: flat, flexible, wide roles, shared decisions; responds quickly but with less control.

Handy's four cultures

Power: one person or small group controls. Role: rules, procedures and defined jobs. Task: teams built around projects and expertise. Person: individuals matter most.

Hofstede's national cultures

Countries compared on dimensions including power distance, individualism vs collectivism, masculinity vs femininity and uncertainty avoidance. Explains why a management style may not transfer across borders.

Network analysis: total float and critical path

Total float = latest start − earliest start (or LF − EF). Zero-float activities are critical; the critical path is the longest route through the network and sets the project duration.

Planned (deliberate) strategy

Set in advance by analysis; gives direction and control; may be rigid.

Emergent strategy

Grows from day-to-day decisions and responses; flexible, uses front-line knowledge; may lack direction.

Strategic drift

Strategy slowly moves out of line with the environment, often after success. Causes: complacency, strong culture, slow monitoring.

Contingency planning

Ready responses to possible shocks. Faster reaction, less panic; costs time and cannot cover everything.