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Change Management to Improve Strategy Execution. Using Change Mgt to Improve Strategy Execution Change is an INFINITE FLOW Ability to absorb is FINITE – Failure is from the incongruity between flow and absorption capacity Change Absorption Framework.

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change management to improve strategy execution
Change Management to Improve Strategy Execution
  • Using Change Mgt to Improve Strategy Execution
  • Change is an INFINITE FLOW
    • Ability to absorb is FINITE –
    • Failure is from the incongruity between flow and absorption capacity
  • Change Absorption Framework
change management to improve strategy execution2
Change Management to Improve Strategy Execution
  • 1. How will enterprises develop an understanding of their current capacity for change?
  • 2. How will enterprises accurately assess the scope and impact of a change initiative?
  • 3. How will enterprises increase their capacity for change?
  • 4. How will enterprises ration, orchestrate and manage change to improve strategy execution?
change capacity
Change Capacity
  • Change capacity is defined by
    • Employee willingness and ability to change.
    • It is affected by
      • Organizational history and culture, leadership credibility, attitudes and trust toward management, perceptions of urgency, employee skills, and a collective experience of change.
  • Understanding the enterprise’s current change capacity is the first step
raising the absorption capacity
Raising the Absorption Capacity
  • When you raise the absorption threshold,
    • you are increasing the capability to absorb change.
    • Usually this is done by:
      • increasing the flexibility in the organization,
      • lowering the levels of hierarchy,
      • increasing accountability and responsibility.
expanding the absorption curve
Expanding the Absorption Curve
  • By identifying critical success factors, best practices and methodologies for instituting change, an organization can
    • expand the absorption curve which pushes up and out the absorption threshold (beyond which any more change is counter productive) thus increasing the capacity to change positively.
expand the absorption curve
Expand the Absorption Curve
  • By identifying critical success factors, best practices and methodologies for instituting change, an organization can expand the absorption curve
    • which pushes up and out the absorption threshold (beyond which any more change is counter productive)
    • thus increasing the capacity to change positively.
orchestrating and managing change to improve strategy execution
Orchestrating and Managing change to Improve Strategy Execution
  • Change is a process and as a process it can be managed using
    • Frameworks
    • Best-in-class
    • CSF
    • Best practices and
    • methodologies
tactics for managing radical change
Tactics for Managing Radical Change 
  • The pace of change depends on the process that is,
    • Tactics, or techniques used to encourage an organization’s member to accept change
      • Complies with current organizational values and norms, skills, structures and incentive is evolutionary
      • Change that challenges or undermines the status quo, creates a new vision, and accomplishes fundamental change is revolutionary
slide12
BPR

Improvement Innovation/Reengineering

  • Process Improvement and redesign Process

Magnitude Increment Radical

Improvement 30-50% 10x-100x

Sought

Starting base Existing Process Blank skeet

Top management Relatively low High

commitment

Role of IT Low High

Risk Low High

discussion questions
Discussion Questions
  • Compare/contrast Orders of Change Magnitude with Change Scope/ Depth Framework?
  • Compare the change magnitude framework with the change absorption framework?
dimension of change stemming from reengineering
Dimension of Change Stemming from Reengineering

Industrial Age Org. Information Age Org.

Structural Dimension

Hierarchical org. based on Networked Org. based

Function / product. Cross functional teams

Rigid Bureaucracy Flexible Adhocracy

Org. Integration through Org. integrate through

structure information systems

Management Dimension

Management by Management by internal

Internal objective and external objectives

Functional Organizational

Structural empowerment Informational empowerment

dimension of change stemming from reengineering17
Dimension of Change Stemming from Reengineering

Industrial Age Org. Information Age Org.

People Dimension

Fragmented Tasks performed Holistic Process

by individuals accomplished by teams

Functional specialists Case management and process generalists

Expertise as functional Knowledge as an

Specialist organizational resource