Change%20Management%20to%20Improve%20Strategy%20Execution

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Change Management to Improve Strategy Execution

• Using Change Mgt to Improve Strategy Execution
• Change is an INFINITE FLOW
• Ability to absorb is FINITE
• Failure is from the incongruity between flow and
  absorption capacity
• Change Absorption Framework

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Change Management to Improve Strategy Execution

• 1. How will enterprises develop an understanding
  of their current capacity for change?
• 2. How will enterprises accurately assess the
  scope and impact of a change initiative?
• 3. How will enterprises increase their capacity
  for change?
• 4. How will enterprises ration, orchestrate and
  manage change to improve strategy execution?

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Change Capacity

• Change capacity is defined by
• Employee willingness and ability to change.
• It is affected by
• Organizational history and culture, leadership
  credibility, attitudes and trust toward
  management, perceptions of urgency, employee
  skills, and a collective experience of change.
• Understanding the enterprises current change
  capacity is the first step

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Change Capacity
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Raising the Absorption Capacity

• When you raise the absorption threshold,
• you are increasing the capability to absorb
  change.
• Usually this is done by
• increasing the flexibility in the organization,
• lowering the levels of hierarchy,
• increasing accountability and responsibility.

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Raising the Absorption Capacity
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Expanding the Absorption Curve

• By identifying critical success factors, best
  practices and methodologies for instituting
  change, an organization can
• expand the absorption curve which pushes up and
  out the absorption threshold (beyond which any
  more change is counter productive) thus
  increasing the capacity to change positively.

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Expand the Absorption Curve

• By identifying critical success factors, best
  practices and methodologies for instituting
  change, an organization can expand the absorption
  curve
• which pushes up and out the absorption threshold
  (beyond which any more change is counter
  productive)
• thus increasing the capacity to change
  positively.

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Expand the Absorption Curve
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Orchestrating and Managing change to Improve
Strategy Execution

• Change is a process and as a process it can be
  managed using
• Frameworks
• Best-in-class
• CSF
• Best practices and
• methodologies

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Tactics for Managing Radical Change 

• The pace of change depends on the process that
  is,
• Tactics, or techniques used to encourage an
  organizations member to accept change
• Complies with current organizational values and
  norms, skills, structures and incentive is
  evolutionary
• Change that challenges or undermines the status
  quo, creates a new vision, and accomplishes
  fundamental change is revolutionary

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BPR

• Process Improvement and redesign Process

Improvement Innovation/Reengineering
Magnitude Increment Radical Improvement
30-50 10x-100x Sought Starting
base Existing Process Blank skeet Top
management Relatively low High commitment Role
of IT Low High Risk Low High
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 Planned  Depth  of  Change   Scope of Change Scope of Change Scope of Change
 Planned  Depth  of  Change    Functional  Cross-Functional  Organization-Wide
 Planned  Depth  of  Change   Efficiency  one initiative within one function-- eliminate. jobs-- more ee involve ltlt Structureltlt Culture  
 Planned  Depth  of  Change   Effectiveness    one initiative at many sites simultaneously -- jobs redefined -- dept/job interdependence ltlt Structureltlt Culture
 Planned  Depth  of  Change   Transformation   Structure gtgtCulture gtgt   multiple initiatives simultaneously  -- reorg jobs/structure with teams -- significant change  needed
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Magnitude of Change  and Capacity of change
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Discussion Questions

• Compare/contrast Orders of Change Magnitude with
  Change Scope/ Depth Framework?
• Compare the change magnitude framework with the
  change absorption framework?

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Dimension of Change Stemming from Reengineering
Industrial Age Org. Information Age Org.
Structural Dimension Hierarchical org. based
on Networked Org. based Function / product.
Cross functional teams Rigid Bureaucracy
Flexible Adhocracy Org. Integration
through Org. integrate through structure
information systems Management
Dimension Management by Management by
internal Internal objective and external
objectives Functional Organizational Struct
ural empowerment Informational
empowerment
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Dimension of Change Stemming from Reengineering
Industrial Age Org. Information Age Org.
People Dimension Fragmented Tasks
performed Holistic Process by
individuals accomplished by teams Functional
specialists Case management and process
generalists Expertise as functional
Knowledge as an Specialist organizational
resource