Managing change

June 1, 2007 0 comments

"Every organization has to prepare for the abandonment of everything it does"

Peter Drucker

Change must be "top-down" implemented

"Change agent or team" must be appointed

Three factors in managing change:

• The type of situation
• The type of change
• The type of leadership

1. The Type of Situation:

a) anticipating

 

b) re-active

 

c) crisis

 

2. The Type of Change:

a) the WHAT do we change to improve our disturbing situation?

b) the HOW change ( how shall we do it?)

3. The Type of Leadership

Four leadership styles to manage change - one to be decided on

a) Telling - orders and instructs

b) Selling - provides directions and explains

c) Involving - involves everybody in decisions

d) Delegating - asks people to work on the problem

CRISIS

REQUIRES A COMPLETELY DIFFERENT LEADERSHIP APPROACH - UNILATERAL - MADE AT THE TOP.

The rules are:

1. Decide, inform -SHOW confidence (you know what you are doing - remember - panic is very infectious)

2. Push for quick results (success will lead to success)

3. Communicate so that everything is as clear as possible. Communication is the key success factor in this situation. The leader must send the right signals in the right way so that people understand how they can help.

FORCES CAUSING CHANGE

Internal

• firm's long and short term plans,
• improved efficiency,
• improved cost effectiveness,
• competition for budgets,
• expansion,
• availability of new products,
• administrative changes

External

• economic change in society,
• compliance with government regulations,
• public pressure,
• competition from rivals

Posted by Lisa
Categories: Business Entrepreneurship Operations Management