Strategic Change Management

Strategic change management has been appraised as a relevant tool in the organisation due to its impact in restructuring the operations of the organisation. The change involved in this case cut across relevant factors such as missions, visions, organisation policies as well as the overall structure of the organisation.

The study focuses on analysing the need for change and the plans involves in implementing strategic change in an organisation. The organisation involveds

is the Anchor Microfinance bank and restructuring wasis being

done to accommodate issues in management transitions.

The development of strategic change in Anchors Microfinance Bank has been centred on the three models of change. Such models are the Lewin’s, the Kotter’s 8-step and the Mc Kinsey 7s model Anderson and Anderson models of change. The ideal attributes of these models is that they allowed

the management of Anchor Microfinance bank to restructure by reinforcing change in the organisation.

Change in the case of Anchor Microfinance bank washas been

necessitated due to by the transition process in ownership. Specific to this organisation, the management requireds

restructuring the operations of the bank to align with the goals and visions of the organisation.

In the development and implementation of change in an organisation, planning washas

been

identified as a critical facet and that this process should cater for the entire interested partner for the operations of the Anchor Microfinance Banking institution. In that case, stakeholders are heavily appraised as relevant player in decision-making and the planning of change process in the organisation.

Table of Contents

Executive Summary. 2

Objective. 4

Company Overview.. 4

Introduction. 4

Task 1: Understanding the Background to Organisational Strategic Change. 5

1.1 Discuss Models of Strategic Change. 5

Lewin’s Model 5

Kotter’s 8-Steps Change Model 7

Mckinsey 7s Model 8

1.2 Evaluate the Relevance of Models of Strategic Change to Organisations in the Current Economy 11

1.3 Assess the Value of Using Strategic Intervention Techniques in the Organizations. 11

2.1 Examine the Need for this Strategic Change in the Organization. 11

2.2 Assess the Factors that are driving the Need for a Strategic Change in the Organization. 12

2.3 Assess the Resource Implication of the Organisation not responding to Strategic Change. 12

3.1 Develop Systems to Involve Stakeholders in the Planning of Change. 13

3.2 Develop a Change Management Strategy with Stakeholders. 15

3.3 Evaluate the Systems Used to Involve Stakeholders in the Planning Of Change. 16

3.4 Create a Strategy for Managing Resistance to Change. 17

4.1 Develop Appropriate Models for Change. 17

4.2 Plan to Implement the Needed Change. 18

4.3 Develop Appropriate Measures to Monitor Change Progress. 19

Conclusion. 20

Appendices. 20

References. 21

Executive Summary. 2

Objective. 3

Company Overview.. 4

Introduction. 4

Task 1: Understanding the Background to Organisational Strategic Change. 5

1.1 Discuss Models of Strategic Change. 5

Lewin’s Model 5

Kotter’s 8-Steps Change Model 7

The Anderson and Anderson Model of Change. 8

1.2 Evaluate the Relevance of Models of Strategic Change to Organisations in the Current Economy. 11

1.3 Assess the Value of Using Strategic Intervention Techniques in the Organizations. 11

2.1 Examine the Need for this Strategic Change in the Organization. 11

2.2 Assess the Factors that are driving the Need for a Strategic Change in the Organization. 12

2.3 Assess the Resource Implication of the Organisation not responding to Strategic Change. 12

3.1 Develop Systems to Involve Stakeholders in the Planning of Change. 13

3.2 Develop a Change Management Strategy with Stakeholders. 15

3.3 Evaluate the Systems Used to Involve Stakeholders in the Planning Of Change. 16

3.4 Create a Strategy for Managing Resistance to Change. 16

4.1 Develop Appropriate Models for Change. 17

4.2 Plan to Implement the Needed Change. 18

4.3 Develop Appropriate Measures to Monitor Change Progress. 19

Conclusion. 19

Appendices. 20

References. 20

Tables

Table 1 Summary of Kotter’s 8-steps Model of change. 8

Table 2 Mckinsey 7s Model 9

Table 3: Stakeholders. 15

Table 4: Influence or Power of Stakeholders. 16

Figures

Figure 1 Lewin’s Model Source: (Hussain et al., 2018) 8

Figure 2McKinsey’s 7 S Model: Source- (Mitchell, et al., 2015) 13

Figure 3(Source: author analysis) 16

Figure 4Power versus interest matrix (Mendelow 1991 model). Source: (Martirosyan and Vashakmadze, 2014) 17

Figure 5: Adapting to change graph. 19

Figure 6: The Change Curve. Source: (Gentry, 2014) 20

Figure 7: Planning for change. Source: Author’s self-analysis. 21

Figure 8Appropriate Model of Change. Source: Author self-analysis. 23

Objective

The study aims at analysing the need for change in Anchor Microfinance Bank operations, especially under the new management. Also, the study focuses on developing a changealteration

plan that is relevant in structuring the issues in the organisation.

Company Overview

The Anchor Microfinance Bank has been experiencing intense financial crisis which has prompted the senior management to sell it off to another owner with relevant capabilities to run its operations. Consequently, the organisation was followed by change demands from all sectors including the human resource. Some of the employees, in this case, projected for the uncertainty with the new owner which prompted them to leave the organisation. . However, the new management is strategiseding on bringing relevant changemodification

to reverse the failure as well as retaining the remaining talents.

Introduction

Strategic change management in an organisation is an essential facet in restructuring the operations of the organisation to accommodate relevant insights to meet organisational goals and objectives. In the case of the Anchor Microfinance banking institution, changetransformation

wais necessary to increase the financial capabilities of the firm as well as retaining the relevantpertinent

workforce or skills. Since the bank hads been acquired by a new owner the changemodification to be performed focused on relevantvariation areas such as includes organisation policies, missions, structures as well as the target market. The new management neededs

to evaluate the cause of the financial crisis from the previous owner as well as the issues bringings

uncertainty to the employees who are opting to leave the organisation.

All strategic changes that have been mentioned above require specific time frame since time is an essential facet regarding changesdeviations

in various issues in the organisation. To redefine the issues affecting the operations of Anchor microfinance bank, time would be a relevant factor of consideration, and it wouldill, therefore, be framed according to several phases. Firstly, the first phase may include researching relevant insights to bring change which might take a minimum of six months. Additionally, another minimum of six months in implementing the recommendations outlined in the research will be needed. Relying on this background, this paper aims at developing an integrated change plan which incorporates relevant stakeholders in the organisation.

Task 1: Understanding the Background to Organisational Strategic Change

1.1 Discuss Models of Strategic Change

Models of strategic changealteration in an organisation are centred on the framework that is relevant in adjusting the missions, visions, and objectives of the organisation towards achieving the firm’s strategic goals. In the case of Anchor Microfinance Bank, the new leadership neededs to use relevant route so as to allocate relevant resources that would realise organisations goals. Relevant, models to be used in this case includeds

the Lewin’s changetransformation

management model, Kotter’s 8 step change model and the Anderson and Anderson model of strategic changevariation.McKinsey 7-S model.

Lewin’s Model

This model is based on three notions which include, unfreezing, changing and refreezing.

Figure 1 Lewin’s Model Source: (Hussain et al., 2018)

At the unfreezing stage, change is bound to occur since the driving forces are more significant than the restraining ones(Calder, 2013). The process can be fostered on communicating the progress of changeconversion to the employees as well as training them on relevant skills to realise strategic goals(Calder, 2013). At the change process phase, changemodification

has been realised, and now the people in the organisation learn new habits that lead to a new culture that can foster the realisation of organisation goals. In the refreezing phase changeadjustment is reinforced through relevant mechanisms. This can be done through getting relevant feedback, as well as rewarding the people for demonstrating desired behaviours towards strategic changeamendment(Calder, 2013).

This model assumes that people in the organisation are the root of the change. In this case, the employees are highly regarded as agents of change. The model also indicates that change is influenced driving force in the organisation and restraining forces(Calder, 2013). In this respect, driving forces are reasons motivating people to participate in change while restraining forces are reason hindering people from participating in changing. Developing driving force in the case of Anchor Microfinance Bank may entailed

rewarding the employees accordingly as well as training them on adapting to the visions on the new management.

Benefits of the Model

Lewin’s model of change offers a simple way of implementing a change plan since it involves fewer practical steps than other models(Calder, 2013). In this case, therefore, the organisation saves time while addressing strategic issues within the firm.

Limitations of the Lewin’s Model

This model fails to describe how the organisational change is transformed but instead assumes that change is transformational in nature(Degnegaard, 2010).

Kotter’s 8-Steps Change Model

This model is a series of 8 relevant steps guiding change within an organisation. Firstly, the model acknowledges that there is a need to establish a sense of agency regarding a strategic issue in the organisation(D’Ortenzio, 2012). For instance, financial crisis and employee retention, as well as the overall strategic goals, become urgent factors of consideration. In the case of Anchor microfinance bank, the manager started by convincing the employees the essence of change and how it is necessary in restructuring the organisation. According to Gustafson and Widerlund, (2010) the success of this step is realised by examining both internal and external conditions of the organisation. This is followed by creating a team that will be essential in driving changealteration

as well as the development of relevant vision and strategies governing transformation. The team in case of Anchor Microfinance Bank included a group of people with relevant capabilities to carry out the desired change. Another important facet to this model is that it recognises the need to communicate the changetransformation

vision to all the stakeholders which make the employees own the organisational vision. The leadership later develops strategies to empower all the employees to be aligned with the action plan for change(D’Ortenzio, 2012). The management in this case created a coalition of workforce that was based in trust which was relevant in building teamwork with the organisation.

Additionally, the model also recognises the need of creating a short-term achievement that is relevant in evaluating the impact of change remedy outlined in the organisation’s strategy. For instance, the management made several evaluations to short term performances of the change implemented which was necessary in evaluating its impact in the organisation. This model also advocates for the consolidation of the achievements as well as producing more change to meet organisation goals. Lastly, the model indicates that in order for change to be maintained the remedies should be incorporated to be organisation culture(D’Ortenzio, 2012).

Table 1 Summary of Kotter’s 8-steps Model of change

Step

Description

One

Increase urgency

Two

Build a guiding team

Three

Develop the vision

Four

Communicate the change vision

Five

Empower action

Six

Create short terms wins

Seven

Consolidate gains/ produce more change

Eight

Make change stick

Befits of the Kotter’s 8-Steps Model

The models outline remedy for errors that are mostly encountered in the process of strategic change management. For instance, the model indicates that restructuring should be done in the shortest time possible for change to be useful especially regarding cost(D’Ortenzio, 2012). The model is practical and easy to implement due to stepwise change progress.

Limitation of the Model

The model stresses that change occurs in a bottom-up format rather than the top-down which there disregard the superiority of management input in driving change with an organisation(D’Ortenzio, 2012). Additionally, the model disregard time as an essential element in the change process and therefore describes change as a continuous, open-ended process. Since the model advocates for strict follow-up of all the implantation steps for change to realise, it can be a time-consuming process(D’Ortenzio, 2012).

Mckinsey 7s Model

This model of strategic change is categorised into “hard” and ”soft” elements as indicated in the following table.

Table 2 Mckinsey 7s Model

Hard S

Soft S

Strategy

Style

Structure

Staff

Systems

Skills

Shared values

7S Factors: Source: (Ravanfar, 2015)

According to this model, strategy phase involves development of a plan that is relevant in sustaining the competitive advantage of firm’s services(Ravanfar, 2015). in the case of Anchor Microfinance bank, competitive advantage was reinfporced by the use of strong, visions and missions which were aligned with the operations of the organisation. On the other hand the structure phase entails putting relevant elements of the organisation into a practical framework that is relevant in achieving the objective of the firm(Ravanfar, 2015).

Systems in this model are the relevant operations and procedures which includes decision-making processes(Ravanfar, 2015). In most cases, this phase determines how business activities take place. Therefore, in the case of Anchor Microfinance bank the phase focused on improving management techniques in the process of organisation change. On the case of Skills phase, focus was concentrated to the abilities of all the employees in the firm. The phase involves changing and developing skills and competences of the employees to perform in accordance to the objective of the firm(Ravanfar, 2015). In support of this, the model outlines the staff phase as a relevant part in the operations of the firm which is concerned with individual contribution towards realisation or organisation’s objectives. The phase was exercised by training, motivating, rewarding and recruiting relevant talents in the organisation.

Style phase in the case of this model, represents the manner in which the firm is managed by the top leadership(Ravanfar, 2015). On the other hand shared values in the case of this model entail norms that guide employees in an organisation in realisation of set visions. The management or the top leadership in this case developed a relevant culture that is aligned to organisation’s goals.

Advantage of the Model

The model emphasises on the use of organisation’s strategy implementation procedure in change process. Additionally, the seven element interact together giving a critical view in guiding change.

Disadvantage of the Model

This exercise is time-consuming since it involves the execution of several elements.

Figure 2McKinsey’s 7 S Model: Source-(Mitchell, et al., 2015)

The Anderson and Anderson Model of Change

Anderson and Anderson’s Model of change (Source: (D’Ortenzio, 2012))

Anderson and Anderson model of change is designed to accommodate a cyclical nature of organisation change. In this case, change does not end after the results are realised, but the results give more room to design and prepare for another transformation. Firstly the organisation identifies the need for change in the organisation and they strategise on how to change this change process. This step entails preparing the employees for the take-off regarding change(D’Ortenzio, 2012). For instance, in the case of the Anchor microfinance bank, the management needs to clarify the roles of each member while liaising with the human resource department to allocate relevant workforce to specific areas in the organisation. This is followed by creating organisational vision towards strategic issues as well as the establishment of commitment to the vision. This entails motivating the employee in taking part in the building the future of the organisation.

The third phase of this model describes the assessment of the situation in question which gives guidelines in the design requirement. This phase is followed by designing the desired state which entails cultural solutions that will lead to the achievement of organisation’s vision(D’Ortenzio, 2012). This entails creating processes and structures that will be relevant in fostering the organisation’s achievements. The fifth phase, besides, focuses on the impact of the design and therefore essential involved in analysing the magnitude of the design.

The sixth phase is concerned in planning and implementation of measures outlined in the previous phases(D’Ortenzio, 2012). The action plan, in this case, is to identify the measures required to implement the desired state which is then followed by the development of a master plan. This may also entail designing policies and restructuring the existing ones to maximise the effectiveness of the design. This is followed by implementing the change plan. In essence phase one to six are primarily concerned with the preparation for the relevant grounds for implementation process(D’Ortenzio, 2012). The eighth phase is primarily concerned with the celebration of the achieved milestone as well as supporting the employees in mastering the adopted cultural behaviour thus creating a new state in the organisation.

The last phase allows the organisation to develop a mechanism for continuous improvement of the adopted state. This is also followed by the evaluation of how strategies were implemented and the challenges faced in the course of transformation(D’Ortenzio, 2012). This gives the organisation’s involved an opportunity to refine the system for continuous improvement of the new state.

Benefits of this Model

The model is essential in the change management as it gives room for redefining new strategic changes which are adopted from the implemented ones. The model also allows the management to assess loops in the system leading to change of course in the subsequent change management.

Limitation of the Model

This model involves many steps that can be time-consuming when trying to develop and implement change in an organisation.

All the three change strategic tools are relevant to transformation with an organisation as they allow for the communication of organisation vision. This makes the employees to be prepared and to plan for future complexity of an organisation’s operations. Additionally, the three models seem to overlap at some point making none superior to the other. In the case of the Anchor Microfinance Bank, the three tools of strategic change will bewere

relevant since the organisation is was experiencing a transition in terms of ownership. Ideally, the three models when used in this case will allowed the new management to communicate its vision to the employee as well as reinforcing change that is relevant in the realisation of the organisation’s goals.

1.2 Evaluate the Relevance of Models of Strategic Change to Organisations in the Current Economy

The models discussed above have attributes that are relevant in the contemporary business world in the following ways. Firstly, these models are essential in fostering teamwork in the workplace as well as appraising the relevance of employee contribution in decision –making process. For instance in the case of the Anchor Microfinance Bank, employees were involved by the new management on issues that were to be included in the organisation’s strategic change thus, giving them an avenue to give relevant feedback.

Additionally, the model becomes relevant to guide the new management on how to restructure the bank to realise its vision. On another account, these models have provided an avenue that would foster transition in the current business case especially in aligning the employees with the goals of the firm. The models have appraised the essence of communication as relevant in change process. In essence communication enables employees to understand the purpose and the direction the organisation is taking with regard to its visions (Gustafson and Widerlund, 2010).This included guiding the employees on key changes regarding the operations of the firm with respect to the objectives of the new management.

1.3 Assess the Value of Using Strategic Intervention Techniques in the Organizations

The relevance of strategic interventions methods is that they allow the organisation to develop or establish mechanisms that are salient in correcting strategic issues. For instance, team development interventions are being appraised due to their relevance in establishing workgroup maturity and effectiveness of group work within an organisation (Uwah and Edu, n.d.). In this case, also, the model encourages the development of diversity in the organisation.

The human resource management was responsible for developing interventions that relevant to change in the organisation. Teamwork was done by the team development model which entailed bringing employees together for a joint task within the organisation. In this model, employees with different cultures are were encouraged to work together. Teamwork has been engaragedengaged due to its relevance in granting employees more responsibilities as well as increasing collaboration in the workplace(D’Ortenzio, 2012).

2.1 Examine the Need for this Strategic Change in the Organization

The need for change in the case of the Anchor Microfinance Bank bank is centred on the reasons that the firm is experiencing transitions. The transition, in this case, has been associated with increased uncertainty leading some employees opting to leave the organisation. Therefore, the management seesmanagement saw

the need to restructure the organisation with an effort of curbing these issues. Additionally, there is was a need to align the people with the current or new owner’s principles in meeting the organisation goals. The overall outcomes of change, in this case, will be towas formulated to impact

all the sectors or stakeholders of the organisation to meet the desired change as per the new management.

2.2 Assess the Factors that are driving the Need for a Strategic Change in the Organization

Change in the business environment may necessitate for the need for strategic changes in the organisation. For instance, the recession which is a common facet in the business environment led to a change of ownership which later brought the need for strategic change in the organisation. Additionally, employment mobility and human resource crisis become another factor that has necessitated the need for strategic change in the case of Anchor Microfinance Bankbank.

Increased competition in the market developing a potential threat to the services offered by the Anchor Microfinance bank may bewas another driving force to the need for strategic change. In this case, the management may seesaw

the need to train and equip their employees on essential skills regarding marketing and contemporary ways of handling financial-related operations.

2.3 Assess the Resource Implication of the Organisation not responding to Strategic Change.

As noted in the case of the Lewin model, change relies heavily on people involved in the operations of the organisation(Calder, 2013). In this line of argument, unresponsive to strategic change may call for the restructuring of the organisation terms of human resources. This, therefore, may lead to the change of the overall structure of the organisation. The implication of this exercise is that it can be a costly one in terms of time and financial resources required in developing a new system. The implications on the financial resources may also increased in the case of Anchor Microfinance Bbank

due to the exercises such as training and recruiting which also is projected to be a time-consuming processled to the wastage of time.

Since some employees have been affected by the transition and opting to leave the firm, the organisation may bewas strained financially in their efforts to acquire relevant talents for replacement. Such cost may

also affected other investments which included

the acquisition of relevant physical assets that organisation may

needed

for its operations.

Summary

Figure 3(Source: author analysis)

The assessment of how responsive the change implemented is determined determined on whether the organisation restructures thoroughly or review and refine the changes responded to. However, in the case where the change has not responded it may lead to the overall restructuring of the organisation which is a costly exercise to the management.

3.1 Develop Systems to Involve Stakeholders in the Planning of Change

Stakeholders, in this case, involve people in both the internal and external environment of the business which includes, staff, management, workforce, government, customers, shareholders suppliers and the society(Martirosyan & Vashakmadze, 2014). The practicability of stakeholders in the operations and activities of the organisation can be viewed in the Mendelow model of power versus interest model.

Table 3: Stakeholders

Internal stakeholders

External stakeholders

Employees

Suppliers

Owners

Customers

Board of Members

Society

Managers

government

investors

Figure 4Power versus interest matrix (Mendelow 1991 model). Source: (Martirosyan and Vashakmadze, 2014)

Power

High

Keep satisfied

Key player

Minimal effort

Keep informed

Low

Low

High

Interest

The relevance of this model to organisation change is that it relates the activities with the organisation to stakeholder’s power and interest. Power, in this case, includes the actual ability of the stakeholders to affect the operations of the firm. On the other hand, interest refers to stakeholders desire to influence the firm (Martirosyan and Vashakmadze, 2014). The model, therefore, indicates that various stakeholders have both high power and high interest while others have low power but high interests. In this case, the key players are those stakeholders with high power to influence the activities of the firm and with high interest to activities in the firm. This category represents the management because they are more concerned and have the utmost power to affect change.

Therefore, key players were essential in planning for relevant change in the organisation.

The stakeholders to be involved in this system included

the overall management team, sales department, the supply chain management team and managing directors of the organisation. From the Mendelow matrix, these are the key players to strategic organisational change.

In this case, the activities to be involved in planning for change includeds, developing a communication strategy such as which may entail

emails and face to face communication. Additionally, the system Engageengaged

the stakeholders in discussions leading to a strategic change in the organisation. Communication was essential as it enabled the management to cCollect feedback,

from the stakeholders on the strategic issues. Additionally, the management engaged stakeholders in choosing for a change implementation team.

Table 4: Influence or Power of Stakeholders

Stakeholders

Power

Owners

Ability to change staff’s situation.

Board members

Direct the management on regarding goals and strategies in the firm

Government

Enhancing business environment

Suppliers

Ability to control prices of firm’s services

3.2 Develop a Change Management Strategy with Stakeholders

In developing the change in an organisation, different individuals respond differently to management strategies. In that case responses to strategic organisational changes occur in different manners(Calder, 2013). In the case of Anchors Microfinance Bank, a small group of people responded to changes brought about by the management at early stages of implementation.That way some may respond early while some may fail to accept changes. However, the majority of people to adapt to changes as time goes by as others took a lot of time to adapt to changes as they were reluctant to accept changes. Another portion of the employees became become

resistant to change and most of them opted to leave the organisation. in that respect.

Figure 5: Adapting to change graph

The diagram above indicates that category A of the stakeholder adapts to change early while majority category B takes a little time to adapt as they are somewhat reluctant to change. Additionally, as time goes by people tend to be resistant to change, and this category is represented by C., In this case, the development of the change management strategy depends on the adaptation criteria.

The strategy to be used in this case, therefore, is was the leverage strategy which ideally means focusing on the category of people who are ready to adapt to strategic change at an earlier stage. This way, this category of stakeholders becamebecomes the change agents in driving strategic changes in an organisation. This group can

also influenced and accelerated change among the reluctant majority.

The adoption of change by the employees in the organisation faces several challenges as outlined in the case of the change curve.

Figure 6: The Change Curve. Source:(Gentry, 2014)

Stage one indicates a phase where change is introduced and people in the organisation start reacting in terms of shock and denial. At this stage, blame is imminent as the employee react to challenge the status quo(Gentry, 2014). At stage two, anger and depression becomes manifested with an effort to challenge the change introduced. In the case of stage one and two therefore, change remains unsuccessful especially for the part of the employees reacting in that manner.

Stage three represents a phase where people have started moving on and in response they show acceptance towards change introduced in the organisation. At this stage therefore, change is performance is realised and that employee integrate to change(Gentry, 2014).

3.3 Evaluate the Systems Used to Involve Stakeholders in the Planning Of Change

In most cases, strategic implementation is centred on the input of the top management thereby neglecting the role of junior staff in the organisation. Such a system of implementing change in the organisation may fail since it fails does not to recognise other stakeholders such as the employees who are key to driving change. To rectify this, an ideal plan of change should incorporated every sector of the organisation in the change proc