CONDITIONS FOR TRANSFORMATIONAL CHANGE:
As the 21st century unfolds, an outsized number of organizations square measure radically altering how they operate and relate to their environments. Raised global competition is forcing many organizations to downsize or consolidate and become throwing, more efficient, and versatile. speedy changes in technologies render many structure practices obsolete, pushing firms to be regularly innovative and dynamic.
Change Is Triggered by Environmental and Internal Disruptions
Transformational change occurs in response to a minimum of 3 styles of disruption:
• Industry discontinuities—sharp changes in legal, political, economic, associated technological conditions that shift the basis for competition at intervals an trade
• Product life cycle shifts—changes in product life cycle that require totally different business methods
• Internal company dynamics—changes in size, company portfolio strategy, or government turnover.
These disruptions severely jolt organizations and push them to question their business strategy and, in turn, their mission, values, structure, systems, and procedures.
Change is aimed toward Competitive Advantage
Transformational change thinks about with choices organizations create to enhance their competitive performance. Activities those square measure unique, valuable, and difficult to imitate enhance the organization’s performance by establishing a competitive advantage over its rivals. The success of a competitive strategy depends on organization responses that lead to unique, valuable, and difficult-to-imitate benefits. Transformational change assists organizations in developing these benefits and managing strategic change.
Change is systemic and Revolutionary
Transforma...
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...ic management—formulation and implementation—artificially separates strategic thinking from operational and plan of action actions; it ignores the contributions that planned change processes will create to implementation. In the ancient method, senior managers and strategic coming up with workers prepare economic forecasts, competition analyses, and market studies. They discuss these studies and rationally align the firm’s strengths and weaknesses with environmental opportunities and threats to make the organization’s strategy. Then, implementation occurs as middle managers, supervisors, and staff hears about the new strategy through memos, restructuring announcements, changes in job responsibilities, or new division objectives.
REFERENCES:
Horist.com. (2014). Michael Horist's Y2K Trans Am WS6. [online] Retrieved from: http://www.horist.com/ [Accessed: 26 Mar 2014].
Managing transformational at National Computer Operations is an article discussing the dilemmas faced when a company is forced to implement changes within a two year timeframe in order to compete with other emerging computer technology companies. NCO’s Managing Director Gar Finvold, decided to review NCO’s market position and to look for improvement opportunities that change implementation enhancements would ensure that NCO would emerge and maintain their position as the leading computer support services firm.
Will management successfully establish a strategic plan and KPI’s? Many companies will get stuck in the implementation phase and not be able to get out of it and end up abandoning this method. In the end, most companies find it too complex. (Outcomes, 2012)
• Strategic management involves both strategy formation, called it content) and also strategy implementation, called it process.
An organization might have a structure in place for change but they must also look at the finances. An organization must have appropriate finances to handle the change and must keep the organization profitable (Nielsen and Abildgaard, 2013). Both finances and the social environment within in an organization are resources that can potentially limit an organization from
Hawkins (2009) states that transformational leaders scaffold all employees’ efforts towards the mission, advance communication avenues within the organization, and share all threats from competition to organizational waste to define the problems in addition to the need to reorganize for the future success and survival of the organization. Transformational leadership styles are critical to the progression of IT governance through achieving rap...
Kotter, JP 1995, Leading change: why transformation efforts fail. In Harvard Business Review on Change, Harvard Business School Press, Boston.
“Leading Change: Why Transformation Efforts Fail” is an article written by John P. Kotter in the Harvard Business Review, which outlines eight critical factors to help leaders successfully transform a business. Since leading requires the ability to influence other people to reach a goal, the leadership needs to take steps to cope with a new, more challenging global market environment. Kotter emphasizes the mistakes corporations make when implementing change and why those efforts create failure; therefore, it is essential that leaders learn to apply change effectively in order for it to be beneficial in the long-term (Kotter).
Faced with changing markets and higher competition, more and more firms are struggling to reestablish their dominance, keep market share, and in some cases, ensure their survival. Many have come to understand that the key to competitive success is to transform the way they function. They are reducing reliance on managerial authority, formal rules and procedures, and narrow divisions of work. In effect, companies are moving from the hierarchical and bureaucratic model of organization that has defined corporations since World War II to what can be called the task-driven organization where what has to be done governs who works with whom and who leads. But while senior managers understand the necessity of change to cope with new competitive realities, they often misunderstand what it takes to bring it about.
In this time of transition and uncertainty, research suggests that transformational leadership is highly effective (Straight, 2006). Leadership research has drifted from emphasis on the competence of leaders to “manage change” to the ability to “transform” organizations. Transformational leaders have attributes and behaviors needed to successfully motivate and empower employees. According to Bernard Bass (1990), transformational leadership occurs when a leader transforms, or changes, his or her followers in three important ways that together result in followers trusting the leader, performing behaviors that contribute to the achievement of organizational goals, and being motivated to perform at a high level. Transformational leaders can achieve greater performance by stimulating innovative ways of thinking and transforming follower’s beliefs and aspirations. Maxwell (Maxwell, 2007) articulates that most of the time, influence is more important than formal power or authority. I agree with him. Influence is very important in organizational and co...
The contemporary business environment is dynamic, ever-changing and increasingly competitive. Their is potential for success, but even more for failure. Businesses are heavily influenced by the changing organisational environment and this intern creates much uncertainty for managers and organisations. With increasing uncertainty in the external environment, the more important it is that managers engage in continual planning. (Robbins 2012 p. 32) Businesses must be flexible and evolve in accordance with their external environment.
Kotter, J. P. (2007). ‘Leading change: Why transformation efforts fail’. Harvard Business Review, January: 96-103.
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
Strategy implementation involves establishing programs and tactics to create a series of new organizational activities, budgets to allocate funds to the new activities, and procedures to handle the day-to-day details (Wheelen, Hunger, Hoffman, & Bamford, 2015). Essentially, after a company determines the direction of their program, it is the how that particular direction will be accomplished. It also answers the question of what resources must be moved or sold to meet the allocated budget. For example, Ford Motor Company set up a program with the sole purpose of discovering alternatives to the foam that was being used in the manufacturing of car seats (Ford Motor Company, n.d.). While this program has a great deal of potential, there are different aspects that would have to be measured and verified before it can be considered a successful course of action by the company.
Strategic implementation entails the application of deliberate management processes to achieve the desired results. Predominantly, the process is achieved through the selection of implementation approaches that are related to an organization’s structure, management of human resources, developing, decision-making and information processes, allocating resources, determining desirable ...
...ications management process is about presenting corporate policy, and creating a positive relationship with an organization's environment. Promoting the relationships with all the relevant stakeholders acts as an extremely important tool to gain corporate success and competitive advantage.