Difficulties in implementing strategic changes in an organization. Types of strategic transformations. Problems of carrying out strategic changes. Types of change strategies
Changes in the organization- these are the decisions of its leadership to change something in internal factors(goals, structure, tasks, technology, personnel). The reason for the changes is the need to respond to changes occurring in external environment(for example, competition, changes in legislation, etc.) or on internal problems (increasing productivity, etc.).
Changes in the organization- This:
innovation – introduction of progressive material and intangible innovations;
dictated strategic plans changes in production and organizational structures;
internal events of a local nature (modernization or replacement of equipment, reconstruction of buildings, etc.
The most important goal of change management is to gain buy-in for change.
The usual practice for the development and implementation of large, systemic innovations is that they are initiated either by the first person or by the entire senior management personnel of the company. In this case, the usual algorithm involves first developing a transformation strategy, then introducing new system solutions and, finally, training staff to work in new conditions. Often final stage is not implemented, and workers are forced to adapt to new conditions through trial and error.
Model of successful management organizational changes L. Greiner consists of six stages:
1. Pressure and inducement: analyzing the problem together with the team and thereby encouraging them to change.
2. Mediation and reorientation of attention : awareness true reasons and the need for change, jointly developing an idea (orientation) on how to organize the process of achieving goals and manage it.
3. Diagnosis and awareness: identifying problems whose solution should change the existing situation, collecting information from lower levels, encouraging consistency in developing a new vision, competence in implementing it and cohesion.
4. New decision and new obligations : finding new solutions and getting the support of those who will implement them.
5. Translating the renewal process into formal policies, systems and structures.
6. Carrying out changes on a full scale. Controlling the renewal process and adapting the strategy to problems that arise during its implementation.
Proven methods for reducing (eliminating) resistance to change: open discussion ideas and measures for change, convincing employees of their necessity; Involving subordinates in decision-making, creating an atmosphere of openness; assistant support; stimulating the consent of those who resist; maneuvering; compulsion.
Problems of conducting strategic changes in organizations are associated with the presence of resistance on the part of employees, therefore, to overcome them, it is necessary to implement the following measures:
– reduce real and potential resistance to a minimum by explaining to employees the benefits that they will be able to receive after implementing the plans;
– establish the status quo of a new state;
– make a forecast of possible employee resistance to the planned changes.
Attitude to change can be considered as a combination of states of two factors:
– acceptance or non-acceptance of the change;
– open or hidden demonstration of attitude towards change.
The management of the organization, based on conversations, interviews, questionnaires and other forms of information collection, should try to find out what type of reaction to changes will be observed in the organization, which of the organization's employees will take the position of supporters of the changes, and who will be in one of the other positions. This type of forecast is especially relevant in large organizations and in organizations that have existed without change for a fairly long period of time, since in these organizations resistance to change can be quite strong and widespread.
The success of a change depends on how management implements it. Managers must remember that when implementing a change, they must demonstrate confidence in its correctness and necessity and try to be as consistent as possible in implementing the change program. At the same time, they must always remember that people's positions may change as the change is carried out. Therefore, they should ignore slight resistance to change and be calm about people who initially resisted change and then stopped resisting.
Big influence The extent to which management is able to eliminate resistance to change is influenced by the style of change. A leader can be tough and inflexible in eliminating resistance, or he can be flexible. In most cases, a more acceptable style is one in which management reduces resistance to change by winning over those who were initially opposed to it. Participative leadership style is very successful in this regard, in which many members of the organization are involved in solving issues of change.
Along with strategic changes and the creation of the necessary climate in the organization, an important task that management has to solve at the strategy implementation stage is the formation and mobilization of the organization’s resources, especially its human potential, to implement the strategy.
The process of formation and mobilization of resources begins with the fact that the mechanism for using the organization’s resource potential is brought into line with the strategy being implemented. To do this, top management must bring the nature and focus of the activities of functional units in accordance with the objectives of implementing the strategy. New tasks must be brought to the functional units that manage the movement of resources within the organization.
The process of resource mobilization at the stage of strategy implementation involves, along with the effective allocation of resources, also the assessment and retention of sources of capital. Management must not only be aware of the sources that it can use to obtain money, the possibilities and restrictions on their use, and the cost of capital, but also do everything possible to preserve these sources and acquire new ones if necessary to implement strategies.
The main tool used to allocate resources is the preparation and execution of a budget, which may concern not only Money, but also inventories, sales, etc.
Typically, change involves the introduction of new ways of working and new people, which directly affects the organization's staff. To successfully manage change, the key is to understand the consequences of implementing changes for all participants in the process. Emerging in connection with this Problems may manifest themselves in different ways, but mainly they are found in several aspects presented in table. 1.Table 1
Classification of problems arising in the process of managing organizational change
Each of these problems is both independent and at the same time closely related to the others.
Considering change management in a narrow sense, i.e. how to control factors influencing the deviation of the system from given course, the main attention should be paid to the phenomenon of resistance to change, considered by many researchers as the main one among the problems that arise in the process of managing organizational change.
After the implementation of planned measures to implement changes, there is an inevitable gap in the company’s performance indicators; changes do not immediately lead to desired results; a movement arises in the organization to return to the previous position.
It is worth noting that conflict-free implementation of changes in conditions of cooperation of the entire team is the exception rather than the rule. This is due to the fact that changes are assessed differently by both the top management of the enterprise and employees. Resistance to change can vary in strength and intensity.
The bearers of resistance, as well as the bearers of change, are people. In principle, people are not afraid of change, they are afraid of being changed. People are afraid that changes in the organization will affect their work, their position in the organization, i.e. the existing status quo. Therefore, they strive to prevent changes so as not to find themselves in a new situation that is not entirely clear to them, in which they will have to do many things differently from what they are already used to doing, and do something different from what they did before.
Attitude to change can be considered as a combination of states of two factors:
1) acceptance or non-acceptance of the change;
2) open or hidden demonstration of attitude towards change (Fig. 2).
Rice. 2. Matrix “change - resistance”
The management of the organization, based on conversations, interviews, questionnaires and other forms of information collection, must find out what type of reaction to changes will be observed in the organization, which employees will take the position of supporters of the changes, and who will find themselves in one of the three remaining positions. This type of forecast is especially relevant in large organizations and in those that have existed without changes for a fairly long period of time, since in these organizations resistance to change can be quite strong and widespread.
The above issues can be summarized into the following guidelines for planning and implementing change management strategies1:
1. Achieving sustainable change requires a high degree of employee commitment and vision-based leadership from management.
2. It is necessary to understand the culture of the organization and the levers of change that will be effective in this culture. Managers at all levels must have the right temperament and leadership skills to suit the organization's circumstances and change strategies.
3. It is important to create a work environment that leads to change - this means developing the company as a learning organization.
4. Commitment to change increases if the people involved in the change have the opportunity to fully participate in the planning and implementation of plans.
5. The reward system should stimulate innovation and record success in achieving change.
6. Change strategies must be adaptive, as the ability to quickly respond to new situations and demands that will inevitably arise is vital.
7. Along with success, change will inevitably involve failure. It is necessary to expect possible failures and learn from mistakes.
8. Clear evidence and data about the need for change is a powerful tool to start the process, but identifying the need for change is still easier than making decisions to meet that need.
9. The focus should be on changing behavior rather than trying to impose corporate values.
10. It is easier to change behavior by changing processes, structures and systems than by changing attitudes.
11. It is necessary to predict problems in the implementation process.
12. Resistance to change is inevitable if employees feel that the changes will obviously or implicitly make them worse off. Poor change management can trigger this type of reaction. The change must result in the establishment of a new status quo in the organization. It is important not only to eliminate resistance to change, but also to ensure that the new state of affairs in the organization is not just formally established, but is accepted by members of the organization and becomes a reality. Therefore, management should not be mistaken and confuse reality with formally established new structures or norms of relations. If the actions to implement the change did not lead to the emergence of a new stable status quo, then the change cannot be considered complete and work on its implementation should continue until the old situation is replaced with a new one in the organization.
Summary
Traditionally, strategic change has been conceptualized as an infrequent, sometimes one-time, large-scale change. However, in Lately The strategic development of an organization is viewed more as a continuous evolutionary process in which one strategic change creates the need for other changes.
In a complex dynamic world that is changing ever faster, in order to have time to react to changes, it is necessary to “run even faster.” To adapt to new market conditions better than your competitors, you should constantly modify. An organization's ability to change determines its success. Therefore, we can say that strategic changes lay the foundation for future success.
Strategic changes, if carried out correctly, are systemic in nature, affecting all aspects of the organization. However, we can distinguish two sections of the organization that are the main ones when carrying out strategic changes. The first cut is organizational structure, the second is organizational culture.
Strategy implementation is associated with overcoming resistance to relevant changes. The following are reasons for resistance to strategic change.
1) Selfish interest. Employees put their own interests above the interests of the organization. The development of such behavior can lead to the emergence of informal groups whose policies will be aimed at hindering the implementation of change.
2) Misunderstanding of strategy usually arises from insufficient awareness of the goals, ways of implementing the strategy, and the ability to assess the consequences of the strategy.
3) Different assessments of the consequences of implementing the strategy associated with an ambiguous perception of strategic goals.
4) Low tolerance for change inherent due to fear that employees will not be able to learn new skills or new job. Such resistance is most typical for cases of introduction of new technologies, sales methods, new reporting forms, etc.
Employees' attitude towards change can be considered as a combination of states of two factors: acceptance or non-acceptance of the change and open or hidden demonstration of attitude towards the change (Table 14.1).
Table 14.1
Employee attitude towards change
|
Showing attitude to change |
Attitude towards change |
||
|
Accepted |
Not acceptable |
||
|
Open |
Supporter |
Enemy |
|
|
Hidden |
Passive supporter |
Dangerous element |
|
WITHresistance can manifest itself at various levels. On organizational level legacy systems are unable to cope with strategic change. Changes are possible over a long period of time and require resources. Reducing resistance is possible by using a systematic approach to change. When designing strategy implementation for group level It must be borne in mind that the corporation as a system consists of formal and informal groups. Wide illumination strategic plan will reduce resistance before implementing a strategy. Groups influence position individual when carrying out strategic changes.
In business practice there are various approaches to managing the process of implementing strategic changes. ADL researchers identify five main approaches (Table 14.2).
1. Taking into account the reasons for individual behavior in the organization: take into account the needs, inclinations and hopes of those affected by the changes and demonstrate the receipt of individual benefits.
3. Providing information to the group.
4. Achieving common understanding.
5. Sense of belonging to the group: a sense of involvement in changes and a sufficient degree of participation.
7. Support for change by the group leader: involving the leader in a specific work environment (on the job).
8. Group awareness: opening communication channels, information exchange, knowledge of the achieved results of the change.
Table 14.2
Approaches to managing the process of implementing strategic changes
|
Approach name |
Main question for the leader |
top managers |
|
(commander) |
How the optimal strategy is formed |
Professional strategic planning |
|
Controller (controller) |
How to implement the strategy |
Creation of a control system |
|
Cooperation (partner) |
How to involve managers in the process |
Main coordinators |
|
Corporate culture (cultural leader) |
How to involve all staff in the process |
Educational trainers |
|
Champion (educator of champions) |
How to motivate managers |
Winner Arbitration |
J. Kotter and L. Schlesinger offer the following methods of overcoming resistance: information and communication, participation and involvement, help and support, negotiations and agreements, manipulation and co-optation, explicit and implicit coercion. The main measures to overcome resistance are presented in table. 14.3.
Table 14.3
Measures to overcome resistance to change
|
Prerequisites for use |
Measures |
Advantages |
Flaws |
|
Lack of information, unreliable information or its incorrect interpretation |
Training and provision of information |
When employees are convinced of the need for an event, they actively participate in transformations |
Requires a lot of time to cover big number employees |
|
Lack of information among project initiators regarding the program of changes and expected resistance to them |
Invitation to participate in the project |
Participants support change and actively provide relevant information for planning |
Time-consuming if participants have misconceptions about the goals of the change |
|
Resistance due to the complexity of individual adaptation to individual changes |
Stimulation and support |
Providing adaptation assistance and taking into account individual wishes makes it easier to achieve change goals |
Requires a lot of time, as well as large expenses, which can lead to project failure |
|
Resistance of groups in the management of the enterprise, fearful of losing their privileges as a result of changes |
Negotiations and agreements |
Providing incentives in exchange for support may be relatively in a simple way overcoming resistance |
Often requires large expenses and can cause claims from other groups |
|
Failure of other “tactics” of influence or unacceptably high costs for them |
Personnel changes and appointments |
Resistance is eliminated relatively quickly, without requiring high costs |
Threat to future projects due to distrust of affected persons |
|
Lack of time or lack of appropriate authority |
Hidden and overt coercive measures |
The threat of sanctions silences resistance |
Associated with risk, generates bitterness towards the initiators |
Introduction
Chapter 1. Strategic changes in the company
1.1 The essence of strategic change
1.2 Areas of strategic change in the company
1.3 Types of strategies for implementing changes in an organization
Chapter 2. Managing strategic changes in the company
2.1 Managing the implementation of strategic changes
2.2 Challenges of implementing strategic change
2.3 Methods for overcoming resistance to change
Chapter 3. Implementation of strategic changes in the Rosbytkhim company
Conclusion
List of used literature
Annex 1
22. Markova V.D., Kuznetsova S.A. Strategic management: Course of lectures. – M.: INFRA-M; Novosibirsk: Siberian Agreement, 1999. – P. 203-204.
23. Meskon M. Fundamentals of management. M.: Delo, 199224. Popov S. A. Strategic management: Vision is more important than knowledge. - Moscow: “Delo”, 2003
25. Popov S.A. Strategic management: 17-module program for managers “Managing Organizational Development”. Module 4. – M.: “INFRA-M”, 1999. – P. 202.
26. Radugin A.A. Fundamentals of management. M., 199727. Rostov n/d: Phoenix, 200428. Samygin S.I., Stolyarenko L.D. etc. Personnel management. Rostov n/d., 200129. Stolyarenko L.D. Fundamentals of Psychology: Ed. 2nd, add. and processing – Rostov n/d: “Phoenix”, 200130. Sukhov A.N. Social Psychology– M.: Academy, 200231. Thompson A., Strickland J. “Strategic Management.” M.: "Banks and Exchanges", 2001.
Annex 1
Types of change strategies
| Strategies | An approach | Implementation methods |
| Directive strategy | Imposition of changes by a manager who can “bargain” on minor issues | Imposing payment agreements, changing work procedures (for example, norms, prices, work schedules) by order |
| Negotiation-based strategy | Recognition of the legitimacy of the interests of other parties involved in the changes, the possibility of concessions | Performance agreements, quality agreements with suppliers |
| Regulatory strategy | Determining general attitudes towards change, frequent use of external change agents | Responsibility for quality, new values program, teamwork, new culture, employee responsibility |
| Analytical strategy | An approach based on a clear definition of the problem; collection, study of information, use of experts | Project work, for example: According to new payment systems; On the use of machines; On new information systems |
| Action-oriented strategy | A general definition of the problem, an attempt to find a solution that is modified in the light of the results obtained, greater involvement of interested people than with an analytical strategy | Absenteeism Reduction Program and Some Approaches to Quality Issues |
Appendix 2
Methods for overcoming resistance to change
| An approach | This approach is usually used in situations | Advantages (advantages) | Flaws |
| 1 | 2 | 3 | 4 |
| Information and communication | When there is insufficient information or inaccurate information in the analysis | If you manage to convince people, they will often help you make changes. | The approach can be very time-consuming if a large number of people are involved |
| Participation and Involvement | When change initiators do not have all the information needed to plan the change and when others have significant power to resist | People who participate will feel a sense of responsibility for implementing the change, and any relevant information they have will be included in the change plan | This approach can be time consuming |
| Help and support | When people resist change because they fear the challenges of adapting to new conditions | No other approach works as well for solving problems of adaptation to new conditions | The approach can be expensive and require large quantity time and still may fail |
| Negotiations and agreements | When an individual or group clearly has something to lose by making a change | Sometimes this is a relatively simple (easy) way to avoid strong resistance | The approach may become too costly if it aims to achieve agreement only through negotiations |
| Manipulation and co-optation | When other tactics don't work or are too costly | This approach may be a relatively quick and inexpensive solution to resistance problems | This approach can create additional problems if people feel manipulated |
| Explicit and implicit coercion | When change is needed quickly and when change initiators have significant power | This approach is fast and allows you to overcome any type of resistance. | A risky way if people are unhappy with the initiators of change |
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