ZeePedia buy college essays online


Change Management

<<< Previous Higgins 08 S Model – An Adaptation from Waterman’s Seven S model:Strategy, Systems and Processes, Resources Next >>>
 
img
Change Management ­MGMT625
VU
Lesson # 33
Higgins 08 S Model ­ An Adaptation from Waterman's Seven S model
The purpose of this lesson is to discuss one of the most familiar models which is commonly known as
McKinsey's 7-S model and was first introduced to us in 1982 by Thomas J. Peters and Robert H.
Waterman, Jr. The most notable thing about the 7-S model is that it supports, and is similar to, the
framework of the managerial functions (planning, organizing, staffing, leading, and controlling).
In the 8-S framework, the author emphasizes on cross-functional way of thinking about the execution of
a revised version of strategy across an organization. Successful organizations spend a great deal of their
time on strategy execution and realize that execution of a strategy is just as important, if not more
important, than formulating a strategy. So the general tendency here is that how an organization can
achieve successful strategy execution that revolves around aligning key organizational factors with
strategy
1. Strategy
We are well familiar with the hierarchy of strategic intent, which is formulation of corporate, business,
functional operational level strategies after evaluating scenarios thru SWOT analyses. In strategy, we
go for an analysis about changes in Strategic Intent which can be quantitative or qualitative. And there
are three types of strategic levels at which a strategy could be accomplice: corporate, business, and
functional levels.
The corporate strategy defines what business or businesses the firm is in or should be in, and how the
firm will conduct that business (or those businesses) in a fundamental way. For instance, an
organization has some number of businesses. In some it estimates the opportunity of growth potential
and in some others it estimates losses. The organization goes for divestment in those who are in loss
and go for fresh investment where the growth potential has been estimated.
The business strategy describes how a firm will compete in a particular business. A firm's business
strategy is its major plan of action aimed at gaining a sustainable advantage over competitors. Relative
differentiation and relative low cost are the two most frequently suggested generic business strategies.
Some other business level strategies are: development of new product, innovation in research and
development, or capturing of some other markets.
Functional strategies support the business strategy. Functional strategies in the areas of marketing,
finance, operations, human resources management, R & D, information, and logistics should be aligned
with the business strategy.
Process strategies normally cut across functions and are aimed at integrating organizational processes
across the organization in order to make them more effective and more efficient. Strategy formulation
involves the consideration of strengths (for example, core competencies and capabilities), weaknesses,
threats and opportunities.
All strategies must all be aligned for strategic performance to be optimal at both intra and inter levels.
The distinct aspect of this model is that it talks about the alignment of various strategies at multiple
levels and also with deal with alignment issues with other variables explained below. Often such type of
alignment is overlooked in the implementation models.
2. Structure
The structure means job, grouping of jobs, authority and its delegation, field units & Head office,
departmentation, operating procedures, control etc. The organization's structure, according to Higgins
consists of five parts:
86
img
Change Management ­MGMT625
VU
1.
jobs;
2.
the authority to do those jobs;
3.
the grouping of jobs in a logical fashion, for example, into departments or divisions;
4.
the manager's span of control;
5.
and the mechanisms of coordination.
The first four of these parts are normally shown in an organization chart. The last is usually described in
the firm's operating policies and procedures.
Major issues include the choice of the organizing principle for primary organizational units, for
example, product versus function, or product versus geography; and how such authority to delegate to
organizational units and managers, traditionally thought of in terms of centralization versus
decentralization, or mechanistic versus organic.
For instance, rivalry between marketing and production departments or between marketing and finance
departments creates ethnocentricity or conflict in working environment. Nonetheless, structural
harmony can be created through promoting policies of internal customer and cross-functionalism
3. Systems and Processes
Organizational systems are designed to get things done from day to day. For example with in
organizational system we have sub systems like strategic planning systems, information systems,
capital budgeting systems, manufacturing processes, reward systems and processes, quality-control
systems and processes, and performance measurement systems. This is the third factor in Higgins
model is which we have discussed earlier in Management Orientation. The systems and processes
enable an organization to get things done on day to day basis. The point here is that the change in
strategy envisage by organizational planners should be compatible to the day-to-day practices as well.
For dealing with such actions we have two practices:
i)
Internal Customer Philosophy
ii)
Cross-Functionalism
At systemic level, we have an internationally practices which is given by ISO-9000. This suggests that
the systemic structure should be able to deal with the philosophy of Internal Customer. It means that, in
order to promote inter-departmental harmonious relationship one department should treat other as an
internal customer.
The other managerial philosophy is of cross-functionalism which places greater emphasis on amongst
the interaction and cooperation of specialized functional units, such as departments, according to their
role in the organization for organizational stability and cohesion. One such technique to promote cross-
functionalism is of job rotation.
4. Style (leadership/management style)
The consistent pattern of behavior exhibited by leaders/managers when relating to subordinates and
other employees. Major issues include the way leader's or manager's presents, communicate, and
control the people or situation. How effective the decision making process is? In literature, particularly
in management context, we have four leadership styles available:
1.
Authoritarian Style
2.
Consultative Style
3.
Consensus oriented Style
4.
Democratic Style
87
img
Change Management ­MGMT625
VU
The other thing which important that how a leader relate itself to its subordinate, either he
believe on transaction oriented relationships which is short term or professional phenomena or
transformational oriented which is long term and a progressive phenomena.
5. Staff
The number and types of employees with what types of individual and group competencies the firm
needs to meet its strategic purposes. The staffing means filling positions in the organization structure.
The main issue is that how to create an appropriate Management Inventory or Human Asset in an
organization and it can be synergized with strategic change or strategic intent.
6. Resources
The extent to which the organization has adequate resources to achieve its strategy--people (staff),
technology and money are the three most critical. Resources may include funding for divisions such
as R & D, or technology such as software, or systems such as those for knowledge management and
organizational learning. The other major concern is the extent to which the organization leverages
its resources. However it is important that resource-strategy compatibility is highly desirable.
7. Shared Values (organizational culture)
The values shared by members of the organization that make it different from other organizations.
Managing values and cultural artifacts are critical to successfully leading organizational change. This
operates at intangible level and has significant impact on the working environment of an organization.
8. Strategic Performance
Strategic performance is a derivative of the other seven `S's. Strategic performance is possessed by an
organization as a whole, or for profit-based parts of the whole. Performance can be measured at any
level. Financial performance measurements are critical barometers of strategic performance, but its
expanded version of balanced scorecard approach, now a days is considered best. Because most
organizations and business units are structured along functional lines--marketing, operations, finance,
human resources, R&D, information, logistics--cross functional execution issues are sometimes
overlooked when strategy is changed. Important thing to note is that strategic change operates at
holistic level integrative of different functional areas. The same is also known as strategic performance.
88
Table of Contents:
  1. COURSE ORIENTATION:Course objectives, Reading material, Scope of the subject
  2. BENEFITS AND SIGNIFICANCE OF CHANGE MANAGEMENT:Traditional management domain
  3. KURT LEWIN MODEL: ASSUMPTIONS AND IMPLICATIONS:Change Movement, Refreeze
  4. IMPLICATIONS OF KURT LEWIN MODEL:Sequence of event also matters, A Critical Look
  5. SOME BASIC CONCEPTS AND DEFINITIONS:Strategic change, Logical incrementalism
  6. TRANSACTIONAL VS. TRANSFORMATIONAL LEADERSHIP:Micro-changes, Organisation Development
  7. THEORIES OF CHANGE IN ORGANISATIONS
  8. LIFE CYCLE THEORY:Unit of Change, Mode of change, Organisation death
  9. TELEOLOGICAL THEORIES OF CHANGE:Unit of change, Mode of Change, Limitations
  10. DIALECTICAL THEORIES OF CHANGE:Unit of Change, Strategic planning
  11. A DIALECTICAL APPROACH TO ORGANISATIONAL STRATEGY AND PLANNING:
  12. LIMITATION OF DIALECTICS; DA AND DI:Overview of application of dialectics
  13. THEORIES OF CHANGE IN ORGANISATIONS
  14. APPLICATION OF EVOLUTIONARY THEORY:Managerial focus
  15. FURTHER APPLICATION OF EVOLUTIONARY THEORIES:Criticism
  16. GREINER’S MODEL OF ORGANISATIONAL– EVOLUTION AND REVOLUTION
  17. GROWTH RATE OF THE INDUSTRY:CREATIVITY, DIRECTION, DELEGATION
  18. COORDINATION:COLLABORATION, The Crisis
  19. ORGANISATION ECOLOGY:Structural Inertia, Internal Structural Arrangements, External Factors
  20. CLASSIFICATION OF ORGANIZATIONAL SPECIES:Extent of Environmental Selection, Determinants of Vital Rates,
  21. FOOTNOTES TO ORGANISATIONAL CHANGE:Stable Processes of Change, Rule Following, Conflict
  22. SOME COMPLEXITIES OF CHANGE:Superstitious Learning, Solution Driven Problems
  23. ORGANIZATIONAL ADAPTATION:The Entrepreneurial problem, The Administrative Problem
  24. PROSPECTORS:Analyzer, Reactors, Adaptation and Strategic Management
  25. SKELETAL MODEL OF ADAPTATION:Determinants of Adaptive ability, The Process of Adaptation
  26. STRATEGIC CHANGE:Nature of Change, The Importance of Context, Force field Analysis
  27. Management Styles and Roles:Change Agent Roles, Levers for managing strategic Change
  28. SYMBOLIC PROCESSES:Political Processes, COMMUNICATING CHANGE, Change Tactics
  29. STRATEGIC CHANGE:Pettigrew & Whipp’s Typology, Context on X-axis (Why of change)
  30. STRATEGIC CHANGE:Attributes of SOC Model, Implications for Management
  31. STRATEGIC CHANGE:Flow of Information, Recruitment, SOC Process
  32. Determinants of a Successful Change Management:Environmental, Management Orientation, Management Orientation
  33. Higgins 08 S Model – An Adaptation from Waterman’s Seven S model:Strategy, Systems and Processes, Resources
  34. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  35. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  36. WHY IMPLEMENTING STRATEGIC CHANGE IS SO DIFFICULT?:Change Typology, Technical Change
  37. IMPLEMENTATION APPROACHES:Attributes of incremental change,
  38. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  39. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Definition of Leadership, Follower Work Facilitation
  40. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Recognize the challenge
  41. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  42. IMPLEMENTATION: PUNCTUATED EQUILIBRIUM MODEL:Features of Radical Change, Theory of P-E model
  43. CHANGE IMPLEMENTATION: OD MODELS:The Transactional Factors
  44. CULTURE, VALUES AND ORGANIZATIONAL CHANGE:Significance and Role of Values, Values Compete
  45. ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE:Issues in Change Management