What are the four main causes of strategic change?

BPR, as a term and as a practice, has a tarnished history. Reengineering became very popular in the early 1990s, however, the methodology and approach were not fully understood or appreciated.

What are the four main causes of strategic change?

BPR, as a term and as a practice, has a tarnished history. Reengineering became very popular in the early 1990s, however, the methodology and approach were not fully understood or appreciated. Many times, improvement projects labeled with the title “BPR” were poorly planned and executed. A war room also has a symbolic purpose.

For example, GM used its environmental strategy war room, created in 2001 to organize its fuel efficiency monitoring efforts, for its public relations. Journalists were often invited to visit the war room to tell the world that GM was seriously addressing the issue. Any organization that is determined to implement an initiative for change should create a war room. Change, change management, change management strategies, management of the transition to change, empirical-rational, adaptive to the environment, normative-reeducational, coercive from the point of view of power.

Differences in functional orientation make it difficult to formulate and implement a new strategy and slow down a company's response to changes in the competitive environment. Environmental assessment: Every part of the organization must constantly evaluate the competition, so that strategies can constantly emerge from this process. Hamel and Prahlad, in an article published in the Harvard Business Review magazine, have argued that organizational success stems from the strategic intention or intention of the entire organization, which is based on a shared and challenging vision of the organization's future leadership position, on an obsession with winning that is not assured by long-term plans, but rather by achieving a broad, broad and challenging intention to develop core competencies. This approach is likely to generate resistance to change, especially on the part of those who introduced the previous strategy or who feel that they have benefited from it.

By definition, change involves abandoning a previous strategy, so the starting point of the change process can be considered an attack on the existing strategy. The last step in the change process is to evaluate the effects of changes in strategy and structure on organizational performance. A change program must be taken into account in the process of change. A program for change must identify potential and influential individuals and groups, and persuade them to support the new strategy.

If a company follows a related diversification strategy, a change in the operations of one division is likely to affect the operations of other divisions and therefore make it more difficult to manage the change. Changes in strategy affect different divisions in different ways, because changes generally favor the interests of some divisions to the detriment of those of others. The strategy must be feasible in terms of the resources it requires, the structure of the organization and the changes that must take place in the organizational culture and operational routine. The basic assumption of this strategy is that people are social individuals and will follow social customs and values.

Chief strategic officers must manage their main cause of strategic change, which can be identified as the environment, business relationships, technology and people. Coherence is the management of change: the objectives of the organization must not conflict with each other, the change process must respond well to the environment, a competitive advantage must be achieved and the strategy must not be an unsolvable problem. This means that it doesn't make much sense to develop a strategy to manage change if senior managers are satisfied with the current strategy for one reason or another, or if they don't have the confidence to make the necessary changes. Changes in stock price or market share are measures to assess the effects of a change in strategy.

The strategy would depend on the organization's need for change and its ability to respond to this need...

Rena Chinnery
Rena Chinnery

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