Implementing Strategic Change - Case Study Example

Implementing Strategic Change Student’s Name Institution Affiliation Course Date Introduction South Australian Tourism Commission (SATC) is currently undergoing organizational change, in order to enhance its competitiveness and service delivery (D’Ortenzio 2012). The manner in which the organization is implementing organizational change reflects a sense of urgency on the part of the national government to revitalize public service. The organization holds that through such reforms, it will be able to sustain continuity and provide quality service. Thus, the organization is undergoing a cultural change (SATC 2016). A culture change involves the alteration in set of beliefs, processes, and ways of doing things. Using a top-down approach, SATC hopes that by the end of the process, all its employees will have conformed to the new culture. Changes in the culture would ensure changes in public management, economic rationalism, and corporate management. These change management process are aligned with the corporate governance goals. SATC is a governmental organization that serves to promote tourism in South Australia. The organization’s purpose is to work with the market to deliver developmental programs, deliver marketing and events that support tourism growth. SATC markets South Australia’s tourism product internationally, interstate, and intrastate. The organization places great emphasis on developing Australia’s competitive strengths, which include Australian cuisine, vibrant Adelaide, accessible nature, and festivals. It also envisions achieving tourism plan 2020 that would generate 10,000 direct jobs. To achieve its strategic objectives, it becomes necessary to implement change, while at the same time, integrating the change on strategic management activities. The phenomenon of change The modern world is going fast with new technology, innovations, new methods of production, as well as changes in customer tastes and preferences. These changes necessitate new methods of operating as opposed to the old methods in order to maintain the organization’s core competences. The process of changing the activities, technologies, and procedures of the organization requires the senior management to ensure success in the outcome (Moran 2010). Change management simply means taking necessary actions to improve the present situation and obtain maximum advantage from the outcomes. Nonetheless, change can stem from external environment of the organization, compelling the organization to make changes in a bid to adjust to these forces. For instance, change at SATC emanates from the new government policy. Such change will obtain resistance from reaction responses of the old employees. According to Stephen (2005), initiating change strategies in the organization sparks complaints from existing employees, especially those who feel that the change disrupts their current working groups or does not favor them. Resistance can be individual or collective. Individual resistance includes habit, fear of the unknown, and security among others. Collective resistance, on the other hand, involves resistance among various workers in the organization, often due to limited focus on change, threat to established power, and organization structural inertia. For change to be successful, there is need to manage it in the organization. This means using evidence-based tactics to reduce the intensity of resistance to change. Some of recommended tactics include education and communication, implementing change fairly, participation, and manipulation and cooptation. Change management theories Lewin’s Theory Lewin’s theory is a three-step change model that describes behavior as dynamic balance of forces that work in opposing directions (Southerland, 2000). According to this theory, these driving forces facilitate change since they push employees to the right and desired direction. Any organization wishing to implement change in the workplace ought to follow these three steps for successful change management, which are unfreezing, movement, and refreezing. The first step to changing behavior is unfreezing the status quo. It means changing to overcome pressure of individual resistance as well as group conformity. Unfreezing can be achieved through increasing driving force that direct behavior away from existing situation, decrease retraining force, and combining the two methods stated above (Southerland, 2000). The second step is the movement whereby the target system is moved to a new level of equilibrium. The movement step is a change process that transforms the organization from the stalemate to desired state. The step can be successful if the organization persuades employees to disregard a certain perspective based on what is beneficial. The third step is refreezing. The third step needs to take place after change is implemented. It involves stabilizing change intervention through balancing driving and restraining forces. Quinn’s theory Quinn’s advanced change theory holds that, in order to accomplish meaningful change, people within the system have to step out their comfort zones and routine behaviors (Quinn, Spreitzer and Mathew, 2000). Instead of asking others to lead, people should initiate their own change. In this context, change and self should be aligned with a vision of common good. The second step is to attract others to change by example. ACT is a traditional approach that emphasizes on engaging in self-depiction, acting on faith and dealing in paradox. Change management at SATC According to researchers, change management is an important process, and can occur in two ways, that is, it can be either planned or accidental. Planned change results in a change of progressive events that result in the set goals to be achieved while the outcome in unplanned change is unpredictable, which implies that it can be positive or negative. At SATC, change emanates from external forces (government policy). The organization, therefore, has a plan for the desired change process. For such a desired process to occur, SATC will need to observe change model theories that will not only make it possible to implement change, but also, help the organization achieve success when implementing the change. Kurt’s Lewin change theory is the most used in organizations because it is relevant and helpful in a group of people in that particular situation. It focuses on change in not only thoughts and feelings, but also, in behavior; by combining the three forces. The probability of the change being successful using this model is high. In order for the change to occur efficiently, the change agent who is mostly, organization leader will need to dominate those opposing the change. Unfreezing stage requires finding a method of making it possible for those resistant to change to accept the new change as quickly as possible. For instance, change in process and service delivery may meet opposition of employees who find older process and service delivery convenient. Adapting new technologies and methodologies of work as a result of changes in organizational culture may also receive considerable resistance from those hesitant to change. Therefore, the CEO and senior leadership team at SATC will need to promote desired behavior by rewarding early adopters in a bid to encourage others to join. It is impossible to achieve the process overnight because this stage of development can meet resistance and is time consuming. As a result, there is a need to identify problems and decisions made about changes that have to take place, while at the same time, making others aware the change needs to take place. The moving stage represents the period of actual change. This stage requires driving forces that push in a direction that causes change to occur, including the planning and implementation stages of the project. It involves education, training, offering a supportive environment and the opportunity for errors to occur. In addition, this stage includes the designing and developing goals and finding areas that require additional support. The process must be inclusive of staff affected by the change. The refreezing stage involves ascertaining the change as the new habit, so that it now becomes the standard procedure followed. Without this stage, it is possible for workers to reinstate old habits. This stage needs to be continually enforced and the changes permanently accepted in such a way that they become habits. Thus, using the Kurt lewins theory to understand human behavior, how it relates and deals with changes, SATC will be able to understand what behaviors oppose or favor change. Change management plan Changing organizational culture at SATC will require Kotter 8-process for leading change. According to the 8-step process, a business reacts to windows of focus regardless of the focus. The 8-step model enables organizations to successfully adapt and succeed in the ever-changing world. The situation at hand involves changing the organizational culture in a bid to make processes efficient and improve on the quality of service delivery. The first step involves establishing a sense of urgency whereby the top management needs to help other managers and stakeholders see the need for change (Kotter 1996). Thus, for change to happen, the entire organization must really want it. Creating urgency sparks the initial motivation to get things going. Considering that the motive emanates from government policy, the process has the full backing of the state. Changing the organization’s culture will require identifying potential threats and developing scenarios that show what could happen in the near and long features (Paton and McCalman 2008). Further, the organization will need to examine opportunities that could and should be exploited. By doing so, the organization stands the chance of convincing the whole organization the need for the opportunity (Kotter, & Cohen 2002) Additionally, during the first step of the change model, SATC Chief Executive officer will need to initiate honest discussions as well as provide dynamic and convincing reasons to get employees and departments thinking and talking (Lunenburg, 2010). Another way to get support from the entire organization is to request customer support outside industry and stakeholders to strengthen the CEO’s argument. According to Kotter, 75% of the organization needs to support CEO’s idea for the idea to be accepted and incorporated into the business as part of the organizational plan. It is difficult to incorporate any idea into an organization without support from other executives and managers, and therefore, for the organization to buy in to the idea, it must be highly convincing (Baulcomb 2003). There is no need to jump into an opportunity because of panic; this might cause risks such as staff turnover (Kotter International 2013). Further, an abrupt rush into an idea might cost the organization because of the unpreparedness. When honest and sincere findings are presented to other managers and stakeholders, they will find it interesting and worth initiating. The second step is forming a powerful coalition. This involves assembling a group with sufficient power to lead change effort and encourage teamwork. Here, the CEO or change leader needs to convince people that change is necessary (Baulcomb, 2003). The change leader will be leading change initiatives. In order to lead change, the change leader needs to have a coalition of influential people whose have various authorities in the job, political and specialties. The coalition continues to build urgency and momentum around change. SATC can achieve this by identifying true leaders within the organization and demand emotional commitment from these leaders (Kotter International 2013). Further, the CEO will stir team building within the group and checks on the weaknesses, and ensuring that the team has a mixture of people from different departments within the company. SATC stands a better chance to change its organizational culture if different powerful leaders within the company support the idea. Therefore, the CEO will need to assemble and lead a team of powerful leaders who are also influential (Todnem 2005). This will ensure the demands of the idea are effectively communicated across the board and well accepted throughout the company. Altering the organizational culture is risky, and at the same time, worthy. It is risky because it means people have to change their way of work, beliefs, and commitments to accommodate the new way of doing things, beliefs, and commitment. It is worthy because it will transform way of work, and if successful, ensuring efficiency in process management among other management activities. The third step is providing a vision for change. Vision in a plan will enable people to grasp easily and remember the idea. According to Kotter’s model of change, a clear vision helps everyone in the company to understand why you are asking them to do something (Kotter, 1996). As such, people are able to see for themselves what the leader trying to achieve and hence easy to comprehend organization’s plan. The vision also explains what the plan is about clearly and what the plan hopes to achieve (Kotter International, 2013). The vision elaborates the entire idea in details. This can be achieved through determining the values that are central to change. In this case, SATC management will need to explain to employees throughout departments the intentions of the change and its envisioned outcome. The organization’s vision to have improved processes and management functions such that it achieves efficiency in service delivery (Anderson & Anderson 2010). The vision to have efficient management structures integrate back in culture of the organization. A culture that values efficient systems will definitely put in place efficient processes. The forth step involves communicating the vision. The Kotter 8-step process argues that communicating the vision is next step to take after creating a vision to determine your success. It is expected that there will be competition in the idea and communication within the company, and therefore, the vision will need to be communicated frequently (Smith 2011). This will ensure the message is well received by walking the talk. Further, the CEO will need to talk often about the change vision, openly and honestly address anxieties and concerns raised by other company mates. In addition to communicating the vision, the CEO will apply the vision in all his aspects of operations and lead by example. By this stage, the teammates of the vision will be willing to get busy and implement the vision. However, a structure for change is needed to execute the vision and help propel change forward. This can be done through identifying change leaders whose main role involves stirring and delivering change. Further, let the vision be in line with job descriptions in the company and compensation systems are in line with the vision plan (Todnem 2005). Change in SATC anticipates to reform service delivery that is the reason SATC opts to change it culture so that employees will develop a new culture that cultivates on efficient service delivery. Such change needs to be realized at organizational level, making it easier for SATC to identify with reformed public service delivery. Nothing that motivates more than success, and therefore, it is important to create short-term wins. SATC CEO needs to set short-term strategic goals by assigning goals to short time frames that will reflect to objectives of the change. When the staff experiences this change, they will be motivated by the victory to support the change whole heartedly and devote more of their resources revamping the idea (Anderson & Anderson 2010). It will be wise to avoid early targets because we are still uncertain of the new market and this can hurt the change initiative. Therefore, the organization needs to set short-term but realistic goals. When one goal is accomplished, the organization moves to the next in a consistent manner. The important part in the change plan is to build on the change. According to Kotter, many businesses fail to achieve change because the victory is declared too early. However, real change runs deep, implying that surface change only last for some time. Building on the change is an effective way to ensure progress achieved does not erode. SATC will be celebrating its victories for short-term goals, but will have a focus on the long-term goal, which is total culture change. The culture change process is a long process that will take time, thus SATC will be reviewing its progress often and communicating successes findings to employees. The final step is anchoring the change in corporate culture. This can be achieved by making continuous efforts to ensure that change is effective in every aspect of the organization. This can help get a solid place into organizational culture. The company needs to cultivate the change culture in the short-term expansion plan such that it will be useful in the larger long-term plan. Further, the CEO needs to continue supporting the change by communicating value and change to newly recruited staff. By talking regularly about progress and success stories to encourage and motivate staff, the change plan grows stronger. More and more people get to support the plan hence its awareness and importance becomes relevant to everyone. Further, the CEO will create plans to replace key leaders of change and the organization progress. This helps in realization and continuation of the company’s legacy. Through the above eight-step model, SATC will be able to achieve success in the short and long-term expansion plans (Lunenburg, 2010). The model will gather support, communicate importance of change, and ensure the change is effected throughout the organization. This eases implementation of expansion plans and provides direction and motivations to effect the change. Once the change is implemented, the company has a leeway even in future to venture expansions in other countries outside the target market. This cultivates a good relationship culture in the organization, motivation, and team spirit. Factors that may create obstacles for organization to implement change Forcefield analysis Before change at SATC, the force field is in equilibrium between the forces favoring change and those resisting it. However, for change to happen, the equilibrium and the status quo must be upset. This is possible by either reducing the resisting forces or adding favorable conditions for change (Brisson-Banks 2010). Those resisting change are likely to be opposing the cultural change because it follows a top down approach. The top down approach ignores employee involvement, because the management tells employees what to do. Employees may simply reject culture imposed on them. In addition, some of the top employees who maintain status quo will oppose cultural change because it destabilizes their comfort zone and disrupts their way of work (Hayes 2014). Because of resistance, employees may result in lack of cooperation. In order to overcome resistance, the management will need to add conditions favorable to change instead of reducing resistance force. This is because adding conditions favorable to change encourages employees while reducing resistance force may be scaring to employees. Reference List ANDERSON, D. AND ANDERSON, L.A., 2010. Beyond change management: How to achieve breakthrough results through conscious change leadership. John Wiley & Sons BAULCOMB, J. S. 2003. Management of change through force field analysis.Journal of nursing management, 11(4), 275-280. BRISSON-BANKS, C.V., 2010. Managing change and transitions: a comparison of different models and their commonalities. Library Management, 31(4/5), pp.241-252 CAMERON, E., AND GREEN M. 2012 Making Sense of Change Management: A Complete Guide to the Models, Tools and Techniques of Organizational Change. London: Kogan Page, 2012. Internet resource. D’ORTENZIO C. 2012. Understanding change and change management process: a case study. University of Canberra, Australia HAYES, J., 2014. The theory and practice of change management. Palgrave Macmillan. KOTTER INTERNATIONAL 2013 The 8-Step Process for Leading Change. Retrieved from http://www.kotterinternational.com/our-principles/changesteps/ KOTTER, J.P., & COHEN, D.S. 2002. The heart of change: Real-life stories of how people change their organizations. Boston: Harvard Business School Press KOTTER, J.P., 1996. Leading change. Harvard Business Press. LUNENBURG F. 2010 Approaches to Managing Organizational Change. International Journal of Scholarly Academic Intellectual Diversity Vol 12. MORAN, T. 2010. Empowering change: Fostering innovation in the Australian public service. Canberra: Commonwealth of Australia PATON, R.A. and McCalman, J., 2008. Change management: A guide to effective implementation. Sage. SMITH, I., 2011. Organisational quality and organisational change: Interconnecting paths to effectiveness. Library Management, 32(1/2), pp.111-128. SOUTHERLAND K. (2000) Lewin’s Change Management Theory. Journal of management inquiry Vol. 9 (2) STEPHEN R. 2005. Organizational behavior, 13th edition, prentice Hall Acloniti Anti. Change management: leadership and strategic change. University of Central Lancashire TODNEM By, R. 2005. Organisational change management: A critical review. Journal of Change Management, 5(4), 369-380. Read More