Unit 10: Managing Strategic Change – Key Terms

Strategic Change – A significant shift in a business’s direction, structure, or operations to remain competitive. 

Incremental Change – Gradual, small-scale adjustments made over time. 

Disruptive Change– A sudden, radical shift in the industry or business environment. 

Planned Change – Change that is deliberately introduced by management. 

Emergent Change– Change that develops organically due to evolving circumstances. 

Business Culture - The shared values, beliefs, and behaviours that influence how employees work. 

Lewin’s Force Field Analysis – A model that identifies driving forces (supporting change) and restraining forces (resisting change)

Kotter & Schlesinger’s Reasons for Resistance to Change– Four reasons employees resist change: 

1.Self-interest (fear of personal loss) 

2. Misunderstanding (lack of trust or poor communication) 

3. Different assessments (employees disagree on the need for change) 

4. Low tolerance for change (some prefer stability) 

Kotter & Schlesinger’s Six Methods of Overcoming Resistance

1. Education & Communication – Explain the benefits of change. 

  2. Participation & Involvement – Engage employees in decision-making. 

  3. Facilitation & Support – Provide training and resources. 

  4. Negotiation & Agreement – Offer incentives to accept change. 

  5. Manipulation & Co-option – Persuade key people to influence others. 

  6. Explicit & Implicit Coercion – Force change through authority. 

Handy’s Cultural Model – Four types of business culture: 

  - Power Culture – Decisions made by a central figure. 

  - Role Culture – Bureaucratic, structured hierarchy. 

  - Task Culture – Team-based approach. 

  - Person Culture – Employees prioritise personal goals over company objectives. 

Restructuring – Reorganising a business to improve efficiency (e.g., downsizing, decentralisation). 

Delayering – Removing levels of management to create a flatter structure and improve communication. 

Outsourcing – Transferring non-core activities to external providers. 

Intrapreneurship – Encouraging employees to develop new ideas within the company. 

Scenario Planning – A strategy businesses use to prepare for potential future risks and uncertainties 

Contingency Planning – Preparing backup plans in case of unforeseen disruptions. 

Crisis Management – Immediate response strategies for emergencies or threats to business operations. 

Business Continuity Plan– A plan ensuring a company can keep operating after disruptions. 

Risk Management – Identifying, assessing, and mitigating risks to business performance. 

Corporate Social Responsibility (CSR)– The responsibility of a business to consider its impact on society, beyond profit-making.