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Syllabus H. Innovation, Performance Excellence & Change Management H5. Managing Strategic Change

Strategic Change

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