Driving Forces of Business Change
Lewin's Force Field Analysis
Definition: A framework used to understand the pressures for and against a change within a business.
Force Dynamics: Change is implemented by strengthening driving forces (those that initiate and support change) and reducing restraining forces (those that hinder it).
Contextual Nature: Forces vary in power and impact depending on the specific business situation.
Internal Driving Forces
Owners: High-level management with vested financial interests; they drive change to ensure business survival, meet objectives, and increase returns.
Managers: Strong leadership initiates change by reviewing KPI data and maintaining momentum through their personal vision (e.g., Steve Jobs returning to Apple).
Employees: Can drive change through innovation (e.g., Google's time scheme resulting in Gmail and Maps) or via empowerment-centered management.
Pursuit of Profit: Publicly listed companies are driven to change to increase dividends or share prices (e.g., Nike's net income growing by in 2016 through product mix adjustments).
Reduction of Costs: High costs motivate change to protect profit margins, often through automation or labor restructuring (e.g., Telstra cutting jobs to combat falling revenue).
External Driving Forces
Legislation: Requirement to comply with new laws at federal, state, or local levels, such as changes to penalty rates or OH&S standards.
Competitors: Both proactive (pursuing a competitive edge) and reactive (responding to rivals like Apple and Samsung's patent disputes).
Globalisation: Access to international markets and supply chains (e.g., Toyota importing Camry and Aurion vehicles from Japan after closing Australian factories).
Technology: Necessary implementation of tools like Robotics, AI, Cloud Computing, or Electronic Medical Records to maintain competitiveness.
Societal Attitudes: Responding to shifting workforce expectations (CSR, flexible hours) and consumer values (e.g., cafes reacting to the waste of billion disposable cups annually).
Innovation: Introducing new products (e.g., Tesla Autopilot) or modified business methods (e.g., assembly lines or Amazon drone delivery) to gain an advantage.
Management Skills for Change
Communication: Clarifying the change process.
Delegation: Empowering others during the transition.
Planning: Establishing short and long-term goals.
Leading: Influencing and motivating others.
Decision-making: Selecting the most effective options for the business.
Interpersonal: Relatability and empathy during periods of change.
Questions & Discussion
Do Now Prompt: Explain how a business could implement a change using the principles of Lewin's Force Field Analysis.
Analysis Activity: Pick one driving force and explain how and why that force is significant for a business introducing change.
Extension Challenge: Suggest how a manager might leverage a specific driving force as part of the change management process.
Case Study Tasks: Reference is made to Case Studies 11.1 through 11.8 (covering pages 309–322) for applying knowledge of driving forces.