Exciting times are ahead when an organization launches change management strategy. The reason for the excitement is this launch defines the evolution of a business. Strategic change in businesses can be sorted and classed into four different categories. The four categories are normative-educative, empirical-rational, environmental-adaptive and power-coercive. Empirical-rational requires the unvarying factor human beings are all rational to varying degrees. So this change strategy’s epicenter is the balancing of risks and incentives.
Normative-educative redefines existing social normality along with the values and moralities existing within the organization, people are social creatures after all. Power-coercive is a change strategy defining authoritative force upon its workers. The employees will have to work to the standards and requirements set without questioning authority, or they will be penalized. A power-coercive strategy of change is ideal in difficult situations when real revolution of an organization is required.
A mix of all four defined change strategies is often required for successful organization change. The four change strategies are almost like the four dimensions in world of organization revolution. Without one strategy the change might fail or be flawed in some way. A comprehensive understanding of the change strategies is required in order to formulate a working business model for change.
Strategy analysis, supporting structures, and the situational awareness cover all of the three phases counting toward change within an organization. Situational awareness covers the change in depth and who is going to be affected by it. These supporting structures are referring to the management team in charge of change along with the sponsoring coalition. The anticipation of resistance and covering risk is the strategy analysis. This strategy also covers special tactics required to deal with difficult situations that may arise .
An effective change strategy’s formulation and implementation requires money which is budgeted within strategic cost management. The cost drivers must be identified and defined clearly as the organizations objectives rely upon them.
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