Awarding Body: BCAS CAMPUS

Course:
Extended Diploma in Strategic Management and
Leadership

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Number of words: 4000

Strategic Change Management

Table of Contents
Introduction................................................................................................................................1
Task 1.........................................................................................................................................2
1.1 & 1.2 Value of using strategic intervention techniques in organisations for the success
of the change effort and the relevance of them to PPP in the current economy.....................2
1.3 Models of strategic change a company can use if the PPP needs to carry out a change
activity....................................................................................................................................5
Task 2.........................................................................................................................................7
2.1 Need for strategic change in PPP.....................................................................................7
2.2 Factors that are driving the need for strategic change in PPP..........................................7
2.3 Resource implications of the organisation not responding to strategic change................8
Task 3.........................................................................................................................................9
3.1 A system to involve stakeholders in the planning of change............................................9
3.2 & 3.3 A change management strategy with stakeholders and evaluating the system to
involve stakeholders in the planning of change.....................................................................9
3.4 Strategy for managing resistance to change...................................................................10
Task 4.......................................................................................................................................12
4.1 Developing an appropriate model for change................................................................12
4.2 Implementing a model for the change............................................................................12
4.3 Appropriate measures to monitor progress.....................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

Strategic Change Management

Introduction
Change can be identified as a movement from the state which is currently prevailing or how
things are happening today to another future state which is through a transitional period.
Change can happen at any given time, at any given place. This might be included society,
work place, economy, etc. where this change can be both externally and internally motivated.
And depend on the situation the change can be minor or dramatic and this depends on how
things are changing compared to the previous state and the response from the people are in it.
Also this change can be anticipated or unexpected. But as explained fundamentally change
goes through three states which are current, transition and future state.
Change management is important in a changing process because a change in organisation
from one state to a future state will impact how the company is going to carry out their day to
day activities. The change happening in the company is that as the market is currently moving
towards renewable energy sources PPP is now trying move towards it and mainly with wind
powered electricity generation. A market requirement has emerged to comply with the 20% of
electricity to be from renewable sources by 2020 it can be seen as much more vital step to go
with this.
When we consider the PPP we can see two types of changes happening to the organisation.
An evolutionary change or an incremental change and a revolutionary change or
transformational change. Evolutionary change is something that needs to happen gradually or
incrementally. One example for PPP is changes to the engineering team. The team cannot be
reformed overnight as well as the company cant pay a large sum for changes happening.
Both needs to happen gradually and with the changes implementing company can reward
employees for their effort. Other change type revolutionary or transformational change which
is profound and also can be seen as fundamental, and more often irreversible. In this case its
appointment of new CEO to the company PPP. These kind of changes normally reshape the
company to a whole new level as we can see he is trying to change the companys future and
also leads to major changes in what people stand for and their behaviors.

Strategic Change Management

Task 1
1.1 & 1.2 Value of using strategic intervention techniques in organisations for the
success of the change effort and the relevance of them to PPP in the current economy
Intervention is where a set of or a sequence of planned actions or activities that are carried
out to support an organisation to improve or enhance their performance, efficiency and
effectiveness. Strategic intervention includes transforming a company to a newer level either
to compete with other companies or to achieve new targets. The main point that will be
looked at here is aiming finding out the best possible way to move forward with the right
combination of strategy, culture and external environment mixing together properly. Since
there is no one right formula to find out the best techniques as the each company faces a
different context in their environments. So its important to evaluate and identify the best
change management intervention technique to carry out the changes to implement the new
ideas and also improve the strategy continuously.
For using strategic intervention techniques for PPP following reasons could be identified:

To bring constructive and desirable changes in order to comply with current market
conditions while improving individual and organizational performance.
In the change process educate all the employees, importantly engineers about the
desired change and how important it is.
To provide awareness among the employees about changing norms to confront and
manage all the issues well.

Techno-structural intervention is where another intervention technique in which employees

collect information about the current formal structures of the organisation and carefully
analyse it for the purpose of redesigning and implementing new organizational structures,
technology and procedures. If we take PPP, its organizational structure is hierarchical and we
can see the decision making process is quite slow which managing a more bureaucratic
management style. This has cause for trade unions to be much more resistance to any changes
to their working methods where if there is more participative style for decision making this
wouldnt have be a problem.
In the techno-structural intervention main changes that are happening would be:

Substantial changes in the units including adjustments to unit boundaries, change unit
roles (Such as converting functional units to business units), and merge units.
Changes to the structure of the organisation such as changes to the reporting lines,
creating new divisions, etc.

As PPP now trying to change into a new way of operating including changes to their profit
earning methods now it is much important to use management and leadership development
tools in bringing a successful change. We can identify that PPP needs to change the structure
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Strategic Change Management

of the organisation to a much more collaborative way of decision making process to involve
all the employees in the organisation. This will include lesser problems arising from groups
within the organisation as resistance to changes since they will be involved too in making
these changes. In this process management and leadership development would be essential to
guide people to enhance their leadership skills. This will take convincing the change is
important and it will require strong leadership and management to go ahead. Managing
change only will not be enough, and therefore we need to guide it with proper leadership.
When PPP is implementing changes to guide the change it is important to carry out team
development and group process intervention. This is where PPP lead their employees to learn
from examining of underlying process. A group will play a major role to bring the change
while learning the necessary input that they want to give. In team development following
procedure can be used to explain the team building which was introduced by Bruce Tuckman.

Forming is the first stage where the leader needs to be more proactive and
dominant as the others roles and responsibilities arent clear so there can be many
chaos.
The next phase is Storming phase where people try to push against boundaries
such as in this scenario engineers in PPP are trying to demand more income due to
the changes. This is a stage where most of the team fails and it is important to sort
out these issues and go ahead. In this stage team members can question the worth
of what they are trying to achieve so it is important to sort out these when going to
achieve new targets.
Norming is the next stage where people have started to resolve their difference,
while helping each other out. It is important in the change process to come to this
stage.
In this stage all the team members work towards achieving the goal, where leaders
can delegate their work and they can focus on developing team members. In
changing their business procedures it is important for PPP to reach this stage while
making sure their ultimate goal is achieved.

Another model they can be used to explain the change activities that the company needs to
carry out is Belbin team roles model. In this Belbin Team Roles are used to identify people's
behavioral strengths and weaknesses in the workplace. This is helpful to build better
relationships in the working environment, develop better performing teams, and finally build
a better team to carry out changes with much more understanding about it. PPP Company
when changing from their fossil fuel to wind generated power as for the concern raised by
government and local authorities it is important to carry out changes smoothly to implement
these changes better as now the market has more competitors and any fallback will lead to
lose their market. In the Belbins team structure, they have divided the team into 9 main roles.
The role of management in a company is to guide and set directions for the company and also
ensure they will achieve them. This will include both long and short term strategies and also
organising work to support both of these. One of the main task of higher level employees of a
company can be seen as implementing change where they do this by planning the change and
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Strategic Change Management

setting goals, targets, timelines and resource limits. In identifying the relevance of models of
strategic change to organisations in the current economy there are certain Dos and Donts in
this as well.
Dos of change management

Do track the success rate of the changes implemented

Do use the learning out of what we have done in the future changes
Do make sure everyone is aware and involved
Do make sure change is approved and all the stakeholders are informed.
Do make sure everyone feels about the problem (In this case the need to go for
renewable power sources)
Do let them know what success would like (In PPPs case it is about going for
renewable sources and the outcome of it)

Donts of change management

Do not authorize any change without making sure everyone is aware of that and if any
failure occurred there is a rollback plan.
Do not let the changes go out of the plan or what was approved.
Do not inform different parties differently to avoid any collision.

After considering Dos and Donts in evaluating the relevancy of models of strategic change
we can use Burke-Litwin to identify drivers of change which will further detail about how
relevant it is to use these models in strategic change to implement the change successfully.

Strategic Change Management

Source: http://archives.drugabuse.gov/about/organization/despr/hsr/images/Figure8.gif

External environment leads to most of the changes in an organisation through legislation,

competition and the changes to the economy. It is important to identify the changes that
happening in the environment and carry out change management processes inside the
organisation. A change management models of strategic change is important here to relate
these with other factors mention in the diagram shown above such leadership, mission and
strategy, organisation culture, structure, etc. as these models will guide you to implement the
changes successfully.
1.3 Models of strategic change a company can use if the PPP needs to carry out a change
activity
There are few models that we can consider models of strategic change when a company carry
out a change activity. Two of them can be taken as McKinsey 7S model and Lewin's Change
Management Model.

McKinsey 7S model

The McKinsey 7S model involves seven interdependent factors which are categorized as
either "hard" or "soft" elements:

Source: http://www.mindtools.com/media/Diagrams/mckinsey.jpg

Hard elements are Strategy, Structure and Systems while Soft elements are shared Values,
Skills, style, and Staff.
This model is based on if the organisation is to perform well then all these elements needs to
be working together. So with the model, whatever the type of change the model can be used
to understand how the organizational elements are interrelated, and so ensure that the wider
impact of changes made in one area is taken into consideration.
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Strategic Change Management

You can use the 7S model to help analyze the current situation, a proposed future situation
and to identify gaps and inconsistencies between them. Then its only about adjusting
elements of the model to make sure that the company will achieve the desired goal.

Lewin's Change Management Model

The Lewins model is known as Unfreeze-Change-Refreeze, which refers to three-step

process in implementing changes in an organisation and the model is emplaned with the
shape of a block of ice.

Source: http://www.mindtools.com/media/Diagrams/Lewin.gif

If we take an ice cube usually what we do is unfreeze it, change the shape it as we need and
then refreeze to solidify it. To begin any successful change process, you must first start by
understanding why the change must take place. As Lewin put it, "Motivation for change must
be generated before change can occur. One must be helped to re-examine many cherished
assumptions about oneself and one's relations to others." This is the unfreezing stage from
which change begins. Then you bring in the change and shape it in the environment as it is
suitable and after employees have found the ways of working with new changes they can
refreeze it.

Strategic Change Management

Task 2
2.1 Need for strategic change in PPP
The need for change to PPP aroused due to following reason.

PPP, who was a monopoly supplier until 1995 in the market now facing
competition with 8 more electricity generating company. These competitors are
using renewable sources to generate electricity and PPP is losing its customers
these players and therefore it has become really important to take an action to go
for these renewable sources.
It has become clear that the organizational structure of the PPP caused most of the
problems in taking decisions and also has led to resistance forces coming from
employees against changes. Therefore new CEO needs to take some action to
change the current system and implement a new way of working.
To comply with market requirements now it is much vital for PPP to generate
electricity from renewable sources while also to access government incentives and
also to stay competitive in the market and not to lose customers anymore.

Therefore the need for strategic change via changing the way they are operating, change
products and resources they have access to, work in new environments have become vital for
PPP. If they dont comply with changes following results are possible.

Lose more customers and market shares as now customers also prefer to use energy
and electricity coming from renewable resources.
Competitors gaining government incentives and they grow further to an extent where
PPP will not be able compete anymore
Using fossil fuel is not economical as compared to other sources in the long run this
will further bring down profit margins for PPP.
As the fossil fuels are seen as non-renewable after sometimes there wont be enough
resources for electricity generation.
If PPP dont comply with changes they will have to pay a penalty fee and this will
further result in lesser profit and also may harm to the reputation of the organisation
and even to the relationship with government parties, environmental organisations.
Need to go for these changes quickly as possible as it will take more time to get the
required permission from relevant parties.

2.2 Factors that are driving the need for strategic change in PPP
When we assess the factors that are driving forces for a strategic change in PPP, both internal
and external triggers can be identified.
Internal triggers are those drive the company for a change within the organisation, and show
the importance to change the way they are operating. The main trigger within the company
can be identified as the new CEO appointed. As he is a strong supporter of wind based
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Strategic Change Management

electricity generation he had seen the importance of going towards renewable energy sources.
Also he has a view about the future and to survive he has identified the need of going for
renewable sources while identifying the changes for the style of management that they
operate with.
Another internal trigger can be seen as lack of performances put on by the company and it
has caused much attention to require changes to the way they are operating and going for a
new method. This became clear with the losing customers to new competitors with renewable
power sources.
External triggers are the ones that come from the external environment and external parties to
change the way PPP is operating. External triggers in this situation are as follows:

Customers attitude towards renewable sources

Government legislation to force companies to comply with them
Penalty fees imposed by government against companies those dont agree with new
terms

When a change is going implement in an organisation there are forces that triggers the change
and drives the change and also forces and different restraining factors which resist the change
to occur. In the scenario we can see some restraining factors to the new change that is going
to be implemented.
2.3 Resource implications of the organisation not responding to strategic change
There will be more implications to the companys business and operations, and also to change
operations if the resource implication do not respond to the planned change. In the case of
PPP resources are involved the staff, engineering team, infrastructure, higher level employees
(heads), etc. Therefore it is important to have resource implication responding to the change
really well and this will lead to overcome restraining factors to the change as well.
Restraining factors in this scenario can be identified as follows:

As mentioned in the case many of PPPs employees belong to trade unions and
because of that now more resistance is coming to any new initiative, change to their
usual day to day working arrangements.
Companys old style management which is a hierarchical one always restrain as that
leads to take a long time to come up with decisions, not letting lower level employees
involved in the process, etc.
Local residents always oppose any new wind powered planning system to come to
their area and this leads to take a lengthier time period for local government to come
to a final decision about planning application.
PPPs engineers now request more pay increases as a compensation for the new
working arrangements. But this cannot be done as this will lead PPP to be
uncompetitive in the industry they operate.
Also another problem or restraining factor we can see is that investment required in
large or extensive amount for building infrastructure and for training facilities.
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Strategic Change Management

Task 3
3.1 A system to involve stakeholders in the planning of change
Stakeholder of a company can be identified as the ones without whose support company will
not be able to carry out their operations properly. It is important to let stakeholder of the
organisation to involve in the planning strategic changes. There are different extents up to
which stakeholders can involve with the changes that are being implemented and this
depends on factors such as their influence over the changes, how importance it is to them, and
the level to which they will get affected by this. There are different kind of stakeholders who
are involved in the companys activities and they can be categorized as follows:

Internal stakeholders: This category will include employees, managers,

External stakeholders: This category will include parties such as suppliers, financial
institutes, customers, governments, etc.
Connected stakeholders: This category will include media, environmental
organisation, local residents, etc.

3.2 & 3.3 A change management strategy with stakeholders and evaluating the system to
involve stakeholders in the planning of change
Businesss change management strategy with different stakeholders mainly depend on the
level up to which the power of each stakeholder category, and also the level of interest they
have about the change proposal. In general company is suggested to handle their stakeholders
based on the power they have and the interest level they show about the changes suggested.
Following chart has been suggested by Murphy and Willmot.

Source: http://research-methodology.net/wp-content/uploads/2012/12/New-Picture-1.png

Strategic Change Management

According to the above shown figure, PPPs stakeholders with high power and high level of
interest (this include CEO, higher level management, engineers and trade unions) needs to be
managed carefully and closely while let them to engage with decision making processes and
also they have to keep those key players informed about everything that are happening. Make
them feel as they are also part or the plan and make them feel important will enable the
company to drive towards the change successfully.
Stakeholders with low power and high interest (Other employees, Local residents, suppliers,
and media) are needed to be managed carefully by keep them informed and keep under
control. By doing this they will not cause any bigger threats to the changes and company will
be able to manage their resources and carry out work successfully.
Another stakeholder category is that high power and low interest (Customers, Local
authorities) needs to keep satisfied to make sure they will keep their interest at a lower level
to carry out change management processes really well as they are parties who can come to
high power and high interest section if we dont manage them carefully. This is also include
engaging with activities that will not cause any problem to those parties. Stakeholders with
low power and low interest (General Public) can be handled by minimal effort by monitoring
them. For these groups companies can use minimum amount of resources in monitoring
them.
Going for renewable sources to generate electricity will change the PPPs working
environment completely including overall of work process and operation of the company.
Each and every stakeholder of the company will be affected directly or indirectly due to this
change. Therefore it becomes critical for the firm to plan out a better strategy which includes
stakeholders in the planning process. The change process itself can initiate only with the help
of the stakeholders. Managing them should be done as mentioned above by categorizing them
effectively. Feedback and reviews of them is vital to make the change a success.
3.4 Strategy for managing resistance to change
Resistance to change is a part of change process and this can impact on both negative and
positive ways. It is important to handle the resistance to change in an organisation effectively.
This can be achieved in following ways by creating a better strategy:

Education and communication It is important to communicate and educate all the

stakeholders really well about the change, stakeholders who are misled and with
confusions will be sorted out. And they will not be with questions and worries
anymore. It is common that the people tend to accept the change once they become
aware about the change.
Involvement of stakeholders: It is important to facilitate all the required needs for
stakeholders to participate and involve in the change process. This will motivate them
and make them feel they are also a part of the change and this will make them not to
try to become a resistance to the change.

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Strategic Change Management

Negotiation and agreements: when a company tries to take changes in, lots of things
in the company become unstable, and it is important to carry out proper negotiation
procedures and come to different agreements.
Support and provide necessary facilities: By providing necessary facilities and support
to those who drive the forces for a change, motivation level will be increased and
boosts their confidence which will lead others as well to be a part of this change.

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Strategic Change Management

Task 4
4.1 Developing an appropriate model for change
As per Pettigrew and Whipp there are five main factors coming from change management
which is also can be used to implement the change model in going for renewable sources by
PPP. The factors are as follows:

Environmental assessment needs to be carried out to identify by going for renewable

sources and to implement wind based electricity plant how the internal and external
environment will get affected and how they can have an impact on the business.
Human resources: It is important to give a more value to their human resources and
also trust them more and they also needs to be treated as an asset to the company
rather than a liability. Company must form necessary policies and strategies.
Going for new method of operations must be linked to the strategic change of PPP and
also to their day to day activities. This will also be helpful in getting the acceptance
from the staff and they will not be reluctant to accept any change.
Leading the change: company needs to create an environment which will motivate
PPPs employees, engineers, etc. to go for the change. PPP also can set a plan to
identify their way of going with the change to that of their vision and values.
Overall coherence: The overall plan for the change must be strong and consistent
enough and that has to be the one which will provide the competitive advantage to the
company.

4.2 Implementing a model for the change

Implementation in any plan can be considered as the crucial step which will determine the
success or even the failure. Because of that this step carries high importance and needs to be
planned carefully and planned out after considering all the factors which will consist of
internal and external and all the stakeholders. The steps for the implementation plan for
strategic plan is as follows:

Get the support from the main stakeholders who will also take the key decisions while
providing them with all the relevant information about the need and benefits of going
for a change.
A detailed plan is important to prepare with timelines, different stages to be achieved
and this plan needs to be agreed by all the relevant parties to the change
implementation.
A proper strategy needs to be carried out to get the fullest support of all the staff
members, engineers and other parties involving with change while making this
feasible and achievable.
From the lower staff to higher level staff needs to brought in, need to ask their
feedback and reviews about the proposed changes and what they think about it.

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Strategic Change Management

It is much vital to reward the staff based on their achievements for the success of the
change.
Proper training and development programs should be given to gain the necessary
skills to all the employees to work with new environments after going for wind power
plant.
Proper controls for change and better performance monitoring systems needs to be put
into the place at all the stages.
Necessary contingency plans must be created for any problem that can arise due to
resistant forces.

4.3 Appropriate measures to monitor progress

Monitoring the progress in implementing a change is really important as it will help to know
and analyse further the current status of the change being implemented and also the
performance level. It further helps to identify what actions needs to be taken to improve the
current conditions which will lead to achieve the target objective successfully. Follow
methods can be followed in order to monitor the performance and progress.

Setting SMART (Smart, Measureable, Achievable, Realistic and Time bound)

objectives for all the people who are involved with the change process and review it
on a proper basis
Reviewing policies needs to be set at both team and individual terms
Benchmarking is important to set and also in progress reviewing
KPI (Key Performance Indicators) needs to be set depending to the work they are
allocated. This can be either percentage basis, quantity basis, etc.
Setting up teams with quantified standards will be important in analysing their
performance levels.
Providing feedback is more important for the performance level they achieved which
will help each persons to identify what they need to enhance in order to achieve better
targets.

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Strategic Change Management

Conclusion
This report refers to the strategic change management in the case of PPP. It identifies relevant
and useful information in changing PPP from fossil fuel electricity generation wind power
electricity generation. Also this identifies the need to involve stakeholders of the company in
different stages in driving the change to a success. To implement strategic change
management, it may need a further investigation in order to achieve the effectiveness of
business development from the implementation.

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