Copy of CMI 705 - LO1.3 Introduction.pdf

Level 7 Learning Outcome 1: Understand the scope and context of strategic change Learning Outcome 1.3 Introduction Critically evaluate theories and models for leading and managing strategic change LO1.3 Introduction Welcome to Learning Outcome 1.3, which covers theories and change m...

Level 7 Learning Outcome 1: Understand the scope and context of strategic change Learning Outcome 1.3 Introduction Critically evaluate theories and models for leading and managing strategic change LO1.3 Introduction Welcome to Learning Outcome 1.3, which covers theories and change models. Organisations need to navigate change effectively to remain competitive and resilient. This learning outcome will explore a range of theories and models that provide frameworks for understanding and managing change effectively. Incremental and transformational change models offer contrasting approaches to change implementation. Incremental change involves gradual, step-by-step adjustments to existing processes or structures, while transformational change entails radical, fundamental shifts that reshape the entire organisation. LO1.3 Introduction Kotter's Eight Guiding Principles of Change Management provide a a structured approach to leading change initiatives. From establishing a sense of urgency to anchoring change in the organisational culture, Kotter's model offers actionable steps to facilitate successful change implementation. McKinsey's 7S Model examines seven critical elements of an organisation: strategy, structure, systems, shared values, style, staff and skills. By analysing the interplay between these elements, organisations can identify areas of alignment and potential barriers to change. LO1.3 Introduction Lewin's Three-Step Model of Change consists of the stages of unfreezing, changing and refreezing. It provides a simple yet powerful framework for understanding the change process. Organisations can navigate change more smoothly by recognising the need for change, implementing changes effectively and solidifying new behaviours. The Action Research Model involves a cyclical process of planning, action, observation and reflection. Organisations can foster a culture of continuous improvement by engaging stakeholders in the change process and continually refining strategies based on feedback. Kurt Lewin's Force Field Analysis identifies driving and restraining forces that influence change. By understanding these forces and implementing strategies to strengthen driving forces or weaken restraining forces, organisations can effectively facilitate change. LO1.3 Introduction Appreciative enquiry focuses on identifying and amplifying organisational strengths to drive positive change. By focusing on what is working well and envisioning a desired future state, you can harness the power of positivity to inspire and motivate change. Throughout this learning outcome, you will explore these theories and models in depth, gaining insights into their application and relevance to real-world change scenarios. By understanding the principles and strategies underpinning each model, you will be better equipped to lead and manage organisational change initiatives. Please now scroll down Copyright Academy of Leadership & Management Ltd 2024 ©  Level 7 Learning Outcome 1: Understand the scope and context of strategic change Learning Outcome 1.3 Part 1a Critically evaluate theories and models for leading and managing strategic change Part 1.1 Theories and models for change How to choose which models to use? Organisations have a range of change models at their disposal. No one model will fit every strategic change and situation. It can be much easier to identify the need for change than actually to deliver change in reality. The following slides include classic models such as Mckinsey 7S, Appreciative Inquiry, Force Field Analysis, Kotter’s eight steps, and Lewin’s 3-stage change process. They all diagnose change problems in different ways. McKinsey 7 S Model (Singh 2013) You cannot identify the need for change in splendid isolation. Understand how the various aspects of the organisation interlink, so if you change one aspect, you can chart what will happen across the organisation. In their 1982 book, 'In Search of Excellence,' McKinsey consultants Peters and Waterman were keen to find out what makes organisations successful. They started by exploring the relationship between strategy and structure. They concluded that no single factor determines success but that several factors play key roles. Seven interconnected variables were identified: Strategy, Structure, Systems, Staff, Skills, Style, and Shared values. McKinsey 7 S Model (Singh 2013) Strategy - the organisation's response to changes in the business environment Structure - the organisation of functions, tasks, people and lines of authority Systems - the formal and informal procedures governing operations Staff - the people or human resources and their competencies Skills - the distinctive capabilities of the organisation Style - the management styles of leaders and the overall organisational culture Shared values - the fundamental values shared across the organisation. For an organization to perform well, the elements need to balance and reinforce each other. Shared values are placed in the middle to show how the overarching purpose affects all the other elements. Many change strategies fail because some of the elements are not considered during change implementation. How to use the Model? Ask questions about each part. Identify which elements you need to realign to improve performance or to maintain alignment and performance during other changes. These changes could include restructuring, new processes, an organisational merger, new systems, and a leadership change. McKinsey 7 S Model (Singh 2013) You can gain more insight into this model through the video below: >>> Video - McKinsey 7-S Model > Video Appreciative Inquiry > Video - Kurt Lewin’s Three Step Model > Video - Kotter’s 8-Steps