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Planning Strategic and
Organizational Change
Paulus Tangkere
Innovation & Change ManagementSession 9
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pt The Framework for Planning
• “lens” for developing an effective change
management plan.
•
can be used to plan and lead strategic andorganizational change.
• based on an organizational effectiveness (or
success factors) model – the key factors upon
which an organization needs to focus in order
to maximize long-term success in the context
of planning for and implementing change.
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pt Key Components of the
Framework
• Business Foundations.
• Strategic Building Blocks.
Key components need to be effectively designed
and managed – both as organizations grow and
develop and as organizations plan for andimplement change
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pt Business Foundation
1. Business concept.
2. Core strategy.
3. Strategic mission.
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pt Business Concept
• defines what the overall purpose of the
business.
•
It answers the question “What are we?”• It defines the space that an organization seeks
to occupy as a player in a market
a business defini tion needs to avoid being either too
broad or too narrow
BUSINESS FOUNDATION
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pt Core Strategy
• is the central or core theme around which the
organization plans to compete to achieve its
strategic mission.
• the quality of their sales force, the
effectiveness of their planning process, or the
strength of their company’s culture.
unique – factors that truly differentiate the
organization from its competitors
BUSINESS FOUNDATION
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pt Strategic Mission
• broadly defines what an organization wants to
achieve over the long term (3-5 years).
•
be capable of being stated in both qualitativeand quantitative terms.
• provides a sense of direction for decisions and
actions
a component that is measurable
BUSINESS FOUNDATION
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pt Strategic Building Blocks
1. Identification of market segment and niche.
2. Development of products and services.
3. Acquiring resources.4. Development of operational systems.
5. Development of management systems.
6. Developing and managing corporate culture.
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pt Identification of market
segment and niche• identifying the customers that the
organization wants to serve and the customer
needs that the organization wants to meet.
• capture a market niche, a place within the
market that the organization “controls,” based
on the sustainable competitive advantages it
possesses.
clearly identify ing present and potential customers
and their needs to create a competitive strategy
STRATEGIC BUILDING BLOCKS
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pt Development of products and
servicesto meet present and potential customer needs
• productization – analyzing the needs of
customers in the target market, designing theproduct, developing the ability to produce it,
and identifying how it will be distributed to its
designated customers.
product or service should be acceptable to a set of
customers who will pay for it
STRATEGIC BUILDING BLOCKS
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pt Acquiring resources
• success in identifying a market niche and in
productization creates increased demand for a
company’s products or services.
• the type of resources required to support
effective operations may change over time as
the organization grows.
management needs to focus an appropriate amount of
attention on identifying, acquiring, and effectively
managing company resources
STRATEGIC BUILDING BLOCKS
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pt Development of operational
systemsto support effective and efficient operations
– small organizations grow and change, quickly tend
to outgrow – effective operational systems on
time.
– large established companies have overly
complicated operational systems – reengineering
of operational systems
the success of the organization depends on
appropriate operational systems
STRATEGIC BUILDING BLOCKS
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pt Development of management
systemsto support the long-term organization development
• planning – strategic, operational, and contingency.
• organization – the ways people are organized and
activities are coordinated
• management development – develop capabilities on
management and leadership
•
control – promote behavior consistent with theorganization’s objectives
sustainabili ty of organization should be ensured by
right management systems
STRATEGIC BUILDING BLOCKS
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pt Developing and managing
corporate culture.• developing systems to identify, communicate, and
effectively manage corporate shared values, beliefs,
and norms
• affects the way people and groups interact with each
other, with clients, and with stakeholders
• creates a common ground for team members to
reduce uncertainty
the glue that holds everyone together
STRATEGIC BUILDING BLOCKS
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pt
Business Concept – Core Strategy – Strategic Mission
BUSINESS FOUNDATION
MARKET
PRODUCTS & SERVICES
RESOURCES MANAGEMENT
OPERATIONAL SYSTEM
MANAGEMENT SYSTEM
CORPORATE
CULTURE
The Pyramid of Organizational
Development
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pt Model for Planning Change
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pt Change Planning Matrix
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pt Change Planning Matrix-cont’