Page 194 - Managing Change in Organizations

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Introduction

Vision/strategy

Organizational capability Stakeholder requirements

Figure 11.2 The learning loop

the USA attracts immediate attention and is never straightforward (indeed some
would certainly argue that this is quite right on public policy grounds). Achieving
strategic change can thus be described as a ‘learning loop’ (see Figure 11.2) com-
prising organizational vision and strategy and understanding of ‘stakeholders’ and
of the organization’s capability.
To be successful I suggest that strategic changes need to be managed in such a
way that three necessary conditions for effective change are in place:
1 Awareness: stakeholders understand and believe in the vision, the strategy and
the implementation plans, etc.
2 Capability: stakeholders involved believe they can develop the necessary skills
and can therefore both cope with and take advantage of these changes.
3 Inclusion: stakeholders involved feel that they value the new jobs, opportuni-
ties, etc., and choose to behave in the new ways (new attitudes, skills and ways
of working).

Much of the remainder of this book will deal with how to create the conditions
for effective change. To conclude this section, however, consider one vital ele-
ment: namely, the importance of achieving an effective ‘fit’ between corporate
and ‘functional’ strategies if effective change is to be achieved. At root most
major changes fail in implementation and often because we have not consid-
ered the impact of the new strategy on the different functions and activities
(strategic business units, divisions, etc.), nor indeed have we thought about the
interaction between functional (or divisional) strategy and overall strategy.
We turn now to an illustration, that of ABF Ltd. This case presents a company
wherein changes in organization, manufacturing methods and management and
reward systems could only be made if tensions with the management team could
be resolved. It demonstrates that the idea that change will only be possible with
support from top management is a serious oversimplification. This is true enough
as far as it goes but it begs the question of whether or not top management need
to change themselves as part of the process of change.

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