Summary Strategy Implementation
2020-2021
MSc. Strategic management
Tilburg University
,Lecture 1 – Change management
The challenges of achieving strategy
1. Different scope than analysis
2. Need for coherence/alignment
3. Complexity
- Interactions
- Number of elements
Framework for strategy implementation
Implementation mechanisms
- Management controls
- Human Resource
Strategy Performance
management
- Organizational structure
- Culture
Requirements for an organization to be successful
1. Knowledge – information
2. Motivation – control- organization – change management
3. Performance
Knowledge
Information driven process
- Internal knowledge
- Processes
- Competences
- People
- External knowledge
- Customers
- Partners
- Competitors
Information needs
Top management
Progress in
Intended Emerging
Strategic achieving
strategies and threats and
domain intended
plans opportunities
strategies
Lower organizational levels
,Relationship between costs and the value of providing additional financial information
Values or costs
Costs
Value
Quantity of information
Leading the change
Many (50%-70%) organizational changes fail. The most occurring reasons are:
- Lack of clearly defines and/or achievable milestones and objectives
- Lack of commitment by senior management
- Poor communication
- Employee resistance
- Insufficient funding
Strategic drift
Amount of change
Environmental
change
Time
Phase 1 Phase 2 Phase 3 Phase 4
Incremental Strategic drift Flux Transformational
change change or death
, Organizational changes
Nature What is changing? Examples
Merger/acquisition Products, markets, work, Daimler-Chrysler
organization, structure,
culture, power structure, …
Strategy Goals and resources ‘’Intel-Inside’’ built a brand
image for microprocessors
(1991)
Governance/authority Power structure Renault
(privatization)
Diversification Products, markets Compagnie Générale des
Eaux (CGE) / Vivendi
Methods, tools Work organization Ford (total quality)
Market evolution/technology Products, markets, work Kodak (digitization)
organization, structure, …
Legislation Environment, … Brexit
Restructuration Power structure, resources Teva France (downscaling
50%)
The challenge of organizational change
As the rate of change in the business environment continues to increase, the premium on
organization’s being able to change is growing ever more significant.
Organizations are built to be stable. As a result, most efforts at designing and managing
organizational change are dismal failures.
Strategic change
Off-the-shelf
solutions or Implementation
Change outcomes
change agent strategy
preferences
Types of change
1. Reactive change (high urgency)
- Closing a performance gap
- What is and what should be
2. Proactive change (low urgency)
- Closing an opportunity gap
- What is and what could be
Lewin’s three organizational change phases
1. Mobilization phase
- Make the case for the change initiative
- Build the organizational capacity for change
2. Movement phase
- Build momentum for change initiative
- Preserve and continue to build organizational capacity for change
3. Sustain phase
- Institutionalize change initiative
2020-2021
MSc. Strategic management
Tilburg University
,Lecture 1 – Change management
The challenges of achieving strategy
1. Different scope than analysis
2. Need for coherence/alignment
3. Complexity
- Interactions
- Number of elements
Framework for strategy implementation
Implementation mechanisms
- Management controls
- Human Resource
Strategy Performance
management
- Organizational structure
- Culture
Requirements for an organization to be successful
1. Knowledge – information
2. Motivation – control- organization – change management
3. Performance
Knowledge
Information driven process
- Internal knowledge
- Processes
- Competences
- People
- External knowledge
- Customers
- Partners
- Competitors
Information needs
Top management
Progress in
Intended Emerging
Strategic achieving
strategies and threats and
domain intended
plans opportunities
strategies
Lower organizational levels
,Relationship between costs and the value of providing additional financial information
Values or costs
Costs
Value
Quantity of information
Leading the change
Many (50%-70%) organizational changes fail. The most occurring reasons are:
- Lack of clearly defines and/or achievable milestones and objectives
- Lack of commitment by senior management
- Poor communication
- Employee resistance
- Insufficient funding
Strategic drift
Amount of change
Environmental
change
Time
Phase 1 Phase 2 Phase 3 Phase 4
Incremental Strategic drift Flux Transformational
change change or death
, Organizational changes
Nature What is changing? Examples
Merger/acquisition Products, markets, work, Daimler-Chrysler
organization, structure,
culture, power structure, …
Strategy Goals and resources ‘’Intel-Inside’’ built a brand
image for microprocessors
(1991)
Governance/authority Power structure Renault
(privatization)
Diversification Products, markets Compagnie Générale des
Eaux (CGE) / Vivendi
Methods, tools Work organization Ford (total quality)
Market evolution/technology Products, markets, work Kodak (digitization)
organization, structure, …
Legislation Environment, … Brexit
Restructuration Power structure, resources Teva France (downscaling
50%)
The challenge of organizational change
As the rate of change in the business environment continues to increase, the premium on
organization’s being able to change is growing ever more significant.
Organizations are built to be stable. As a result, most efforts at designing and managing
organizational change are dismal failures.
Strategic change
Off-the-shelf
solutions or Implementation
Change outcomes
change agent strategy
preferences
Types of change
1. Reactive change (high urgency)
- Closing a performance gap
- What is and what should be
2. Proactive change (low urgency)
- Closing an opportunity gap
- What is and what could be
Lewin’s three organizational change phases
1. Mobilization phase
- Make the case for the change initiative
- Build the organizational capacity for change
2. Movement phase
- Build momentum for change initiative
- Preserve and continue to build organizational capacity for change
3. Sustain phase
- Institutionalize change initiative
