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Copyright©2001HoughtonMifflinCompany.Allrightsreserved.Chapter14

ImplementingStrategicChange

Strategic

CharlesW.L.Hill

Management

GarethR.JonesFifthEditionPowerPointPresentationbyCharlieCookAnIntegratedApproachCopyright©2001HoughtonMifflinCompany.Allrightsreserved.14-2FIGURE14.1StrategicChangeThreemajortypesofstrategicchangeCopyright©2001HoughtonMifflinCompany.Allrightsreserved.14-3FIGURE14.2StagesintheChangeProcess

Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-4DeterminingtheNeedforChangeRecognizingthatagapexistsbetweendesiredandactualperformanceofthecompany.Analyzingtheorganization’scurrentcompetitiveposition(SWOTanalysis).Determinethestrategicchanges

necessarytoachievethe

desiredfuturestatefor

thecompany.Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-5DeterminingtheObstaclestoChangeCorporateobstaclesStrategicchangesaltercoreinner-workingsoffirm.DivisionalobstaclesInterdivisionalrelationshipsarechanged.FunctionalobstaclesStrategicchangeaffectstheorientationoffunctions.IndividualobstaclesIndividualsfeelpersonallythreatenedbychange.Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-6OrganizationalConflict:AnImportantObstacletoChangeOrganizationalconflictThestrugglebetweenthe

conflictinggoal-directed

behaviorsofdifferent

organizational

groups.StagesintheConflictProcessFIGURE14.3Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-7ImplementingStrategicChangeandtheRoleofOrganizationalPoliticsOrganizationalpoliticsTacticsusedbystrategicmanagerstoobtainandusepowertoinfluenceorganizationalgoalsandfurthertheirowninterests.Sourcesoforganizationalpolitics:Disagreementovergoalsandmeanstoattainthem.Lobbyingforsupportinthedecision-makingprocess.Personalreasonsandambitionsofmanagers.Necessityformakingdecisionsbynegotiating.Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-8FIGURE14.4RationalandPoliticalViewsofDecisionMakingCopyright©2001HoughtonMifflinCompany.Allrightsreserved.14-9EffectofOrganizationalPoliticsonPerformanceFIGURE14.5Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-10LegitimatePowerandPoliticsPowerTheabilitytocausesomethingtobedonethatwouldnototherwisehavebeendone.LegitimatepowerTheauthorityamanagerpossessesbyvirtueofholdingaformalpositioninthehierarchy.AuthorityThepowertoresolveconflictsanddecidewhatneedstobedoneandeobstaclestochange.Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-11FIGURE14.6Informal

Sources

ofPowerCopyright©2001HoughtonMifflinCompany.Allrightsreserved.14-12EffectsofPowerandPoliticsonStrategicChangeControllingpoliticstopromotechange:Deviseorganizationalstructuretocreatepower-balancingarrangementsbetweendivisions.Usecorporatestafftoinfluence

strongdivisions.HaveCEOcometothedefense

oflesspowerfuldivisions.Rewardrisktakingand

performance.Copyright©2001HoughtonMifflinCompany.Allrightsreserved.14-13ManagingandEvaluatingChangeTop-downchangeStrongCEOtakeschargeofstrategyprocessandmovesquicklytoimplementchanges.Bottom-upchangeTopmanagementconsultswith

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