EVALUATING THE NEED FOR Strategic Change Management



Corporate managers and entrepreneurs around the globe come across varying and exceptional level and intensities of market disorder and dynamism. Modern day, globalization, and liberation of the markets, of the ex- East-bloc transitioning economies, the ever-increasing assortment of the employees, and the increasing boundlessness of attributed to Internet are only some of the factors motivating swift change. Such changes and developments behest responses of individual businesses but this besieges quite a lot of quires of managers: "do we need to respond, when should we respond, and what should be the nature of our response?" whilst managers and entrepreneurs have come up against a situation and alike questions in the what went before, there is mounting concurrence that the swiftness of change has invigorated: managers and entrepreneurs often have not as much of time to act in response to change (Scribner, S. (n.d.)).

Strategic change management is a domain that mete out with the key initiatives and developing dynamism used by general managers for owners, relating deployment of assets, to boost the accomplishment of firms objectives in their peripheral environments. It involves specifying the firm's vision, mission and key objectives, working out policies and strategies, frequently in terms of programs and projects, which are intended to attain these targets, and after that allocating reserves and resources to realize the plans, policies, and programs and ultimate projects. A evenhanded scorecard is frequently used to appraise by and large performance of the company and its growth towards goals. Recent researches and empirical studies and top theorists of management have argued that strategy and change desires to institute with stakeholders' prospects and expectations and employ a personalized balanced agenda which comprises every stakeholders.

Models of Strategic Change

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1970s witnessed the growth of the firms primarily market oriented. Since the early stages of capitalism it was tacit that the essential requisite of company achievement was a merchandise of far above the ground industrial quality. If company offered manufactured goods that worked fine and durable, it was suppose that company would have no trouble selling them at gain. This was known as the production-orientation and it was usually correct that good quality products could be sold out with no much effort, encased in the maxim "Build a better mousetrap and the world will beat a path to your door." This was for the most part due to the increasing numbers of well off and middle class citizens that capitalism created (Scribner, S. (n.d.)).

However following the unexploited demand by the Second World War saturated in the 1950s it was observable that products were not selling as simply as they had been. The response was to deliberate on selling. Thus 1950s as well as 1960s is identified as the sales period and the guiding idea of trade of the time is nowadays called the sales-orientation. In the 1970s Theodore Levitt et al. at Harvard advocated that the sales-orientation had things to the rear. They argued that as an alternative of producing products then trying to put up for sale to the purchaser, companies should assemble with the customer, discover what they required, and then manufacture it for them. The purchaser emerged as the motivating factor at the back of all considered production decisions. This marketing-orientation, in the decades from the time of its beginning, has been reformulated and repackaged in plentiful names together with customer-orientation, marketing-philosophy, customer-intimacy, customer-focus, customer-driven, and market-focused.

Relevance of Strategic Change to Organizations in the Current Economy:

Defining the economy as it at present is and seeing that it will be in the future is a indispensable primary step in establishing a momentous course and developmental trail for the business. Management's vision of what the business seeks to do and to develop into the long-standing is the organization's strategic undertaking. The strategic undertaking generally charts the prospect track of the business. Given that decisions about enduring direction fall evenly upon the of senior business officers, the strategic undertaking almost constantly reflects the special vision and philosophy of top-level managers.

Corporate business cultures differ significantly among organizations. No two corporate cultures are alike. As a result, a course for novelty that works in one business cultures will not essentially toil in another one. Transforming corporate cultures or a corporate sector into a more inventive and novel one involves change. Hence, corporate cultures deem implementing a change strategy explicit to creating a more for business or department that fosters novelty (BIA. (n.d.)).

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In the contemporary financial system, competitiveness means information and knowledge rather than resources and corporeal assets. As a result, the key development for every competitive company is to tactically employ their information, assets and knowledge by identifying and applying experience. A business facility to participate on the market is more and more seen as depending on the skills and acquaintance of its corporate managers and employees, regarded as rational capital, and put to good use as formulating, and implementing strategies. In the modern managerial milieu, knowledge evolves rapidly and the efficient life span of the trade skills is dilapidated, which means the fortitude and competitiveness of a company is connected to its skillfulness to find out and include its findings in their strategic management.

Value of Using Strategic Intervention Techniques in Organizations:

Day to day shifting environment forces businesses to act in response in an apt and appropriate approach. Strategic management plays a vital role in this adjustment process from side to side as its "change triggers" significant events in the peripheral environment that command a business response. It is argued that giving additional place to information analysis in the strategic management method facilitates the credentials of dynamics to trigger change. Now a days, corporate managers and analysts construct a conceptual model more or less a three-step procedure of (i) scanning/monitoring, (ii) data interpretation, and (iii) response combined amid three diverse levels of strategic management (strategic surveillance, premise monitoring, and implementation control) (Julian, SD. & Scifres, E. 2000).

Need for Strategic Change in Organization

Once a company desires to reinvent itself, the transformation that needs to happen should be objective. Trying to make a decision to change as well as what to change can be just as wearisome as the definite change. The course of change management strategy involves mounting a novel vision for where the corporation desires to be, and then making an equally innovative course for achieving the objective. However, it is to be kept in mind that no one desires to have change just for the reason of doing things in a different way. It needs to create sense with the track the corporation is endeavoring to thrive upon. A rational path in the direction of the goals requires be determining and embarking upon by all the employee and actors in a company in a strategized manner.

Setting up strategically is advantageous for the organization's prospect growth and financial stability. The advantages of a strategic map serve up a range of purposes for instance serving an association visibly characterized its' goals. Thus, development of a sense of ownership in addition to providing a base-line to gauge future progress helps to solve major problems. The abovementioned advantages are time sensitive to contemporary trade and industry trends and surrounding concerns that intermingle with the business. To achieve the defined objectives, the planning strategically should term the present state and the desired state, how the objectives are be achieved, what needs to be established in turn define objective accomplishment. It is crucial to bear in mind, since corporations do not subsist in a vacuum; the primary plan is not inevitably all the time going to be the superlative response (McNamara, C. 2008).

Factors Deriving the Need For Strategic Change in an Organization

Strategic Change in an Organization drivers are the business motivation for achieving its vision or the area of difficulty the organization is presently experiencing. The inference of change will have an effect on one or more areas across the Enterprise View of the organization and should be summarized in these provisions at any time probable. Change drivers may include (LRI. (n.d.)):

Laws and regulations

Technological developments

Loss of market share or key clients

Emerging market opportunities

New employment patterns

New organizational structures

Global environmental issues

Need to reduce cost

New competitors

Implications of Organizations Not Responding to Strategic Change

It is argued that strategic change management has five important components (Nedelea, S. & Paun, LA. 2009):

Defining the business and developing a strategy as a source for establishing what the business does or does not do and where it is headed.

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Set up strategic business objectives and performance objective.

Devise a strategy to achieve the strategic objectives and targeted outcome.

Employ and execute the preferred strategic plan.

Estimate strategic performance and building remedial change in strategy and/or how it is being put into practice in light of real experience, changing conditions and innovative ideas and opportunities.

Lay the change strategy into place and receiving individuals and managerial units to set out all in executing their piece of the strategic plan effectively is fundamentally an administrative assignment. This entails a number of managerial challenges, for instance:

Building an organization able of carry out the plan strategically;

Developing strategy-supportive financial plan and programs;

relating the incentive and compensation structure directly to achieve the targeted outcome;

constructing an managerial culture that is in tune with plan in all success-causing value;

Developing an information and reporting scheme to pathway and direct the progress of strategy realization;

Installing policy and actions that make possible the plan realization.

In view of above, developing an action-agenda to implement and execute the strategy involves managers at all levels. Further, deciding response to the problem "What is required for us to implement our part of the overall strategic plan and how can we best get it done?" (Nedelea, S. & Paun, LA. 2009) doing this undertaking well means scrutinize in effect every operating commotion to see what actions can be taken to perk up strategy implementation and to inspire strategy-supportive practice and behavior (Ring, PS & Perry LJ. 1985).

Strategic Change Management and Stakeholders

According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic change management comprises not only the business team but can also embrace the Board of Directors and other stakeholders of the corporation. It depends on the managerial structure.

"Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment." (Lamb, 1984:ix)

To Test out innovative ideas and learn what works and what does not all the way through experiment and miscalculation is common. As a result, it is at all times a necessary task for managers to keep an eye on both how well the chosen change strategy is functioning and how well performance is taking place, making curative adjustments at any time improved ways of doing things can be supported. The purpose of strategic change management is enduring, not somewhat to be done once and then abandoned.

Strategic management needs definite performance targets. These are desirable in all areas affecting the endurance and achievement of a corporation, and they are required at all levels of management, from the corporate level on down into the business composition. The work of establishing prescribed objectives not only convert the course an organization is headed into specific performance targets to be achieved but also safeguards against drift, purposeless bustle, puzzlement over what to achieve and loss of rationale. Both short-run and long-run management objectives are looked-for. The strategic objectives for the organization as a whole should at a minimum specify: the market position and viable standing in the business aims to achieve, effectiveness. Key financial and operating domino effect need to be achieved during the chosen activities, and any supplementary objective by which strategic change management accomplishment is calculated. For the reason that performance objectives are considered necessary up and down the business, the objective-setting job of strategic management engage all managers; each must categorize what their area's contribution to change management success will be and then establish material, measurable performance targets (McNamara, C. 2008).


In simple words, strategic change management is about putting things to a natural organized course of action. Results are generally improved and the business can hold up the changes well again while they are persistent and unanimously agreed upon. Yet if the individual rudiments are not what everybody thinks is finest on condition that they are operational together to the common objective the winning implementation of change will crop up.

The recompense of unsurpassed strategic judgments and ideas and a profound dedication to the strategic managing process corporate actors embrace the support it provides to the whole management in making obvious just what it is the business is demanding to do and to attain; the contribution it craft to make out and responding to market changes, fresh opportunities, and intimidating progress. The justification it provides for managing to evaluate competing requirements for investment of capital and new employees; the management it adds to everyone the strategy-related resolution making made by managers from corner to corner the organization; and the practical as an alternative of reactive stance that it gives to the association. As previously stated, high-performing corporations use their acquaintance and international expertise to by design try to drive their objective markets with a controlling strategy. They seek to commence and lead, not only defend. In their analysis, the true purpose and worth of strategy is to turn up with an action that will productively attract purchaser, produce a sustainable viable benefit, enhance the firm's market importance, put extra competitive difficulty on rivals, and thrust performance to better echelon.

In conclusion, people are center of the whole thing entrepreneurs do to craft change be successful, and whereas some specialist go into a company, the basic approach in every strategic change is to equip employees and the team with the requisite proficiency set, confidence and knowledge to maintain change to compel outcomes with perfection.