ACCA SBL Syllabus H. Innovation, Performance Excellence & Change Management - Strategic Change - Notes 1 / 11
Strategic Change
Incremental Change
Needs no structural reorganisation, the entity should be able to adapt easily
Transformational Change
Big impact on the entity and its workers. Restructuring required and change management skills
Realignment does not alter the fundamental beliefs of the organisation. It is therefore easier than transformation
Evolution can take a long time.
Revolution, on the other hand, is immediate and requires simultaneous action from many change managers. It is therefore the most difficult to accomplish successfully
So Managers need to be aware of what type of change they are looking for: adaption, reconstruction, evolution or revolution
Reasons for change
| External | Example | Internal | Example |
|---|---|---|---|
| Politics | Civil war in a major export market | Senior management changes | New CEO with new ideas |
| Economy | Euro crisis affecting export market | Acquisitions and mergers | Integration with a partnering firm |
| Socio-cultural | Health scares | DeMergers | Systems will need changing |
| Technology | New technology on market making ours obsolete | Downsizing | Current systems may no longer be needed |
| Environmental | Diminishing supplies of energy | ||
| Legal | Health and safety regulations |