Creating Strategic Plans Using Kotters Eight Step-Model - Coursework Example

Name Instructor Course Date IMPLEMENTATION OF STRATEGIC CHANGE IN ORGANIZATIONS Introduction Organizations operating in a business contest are most likely to encounter an ever-changing environment for functionality. The most factors that easily spearhead organization to implement strategic change might be a modified law within the organizations or states, a new technology innovative in place, newly identified behaviors of people and the customers (Muogbu 2013). The implementation of strategic change in any organization is very vital due to its benefit on retaining or gaining a competitive advantage in a changing business environment. Planning, feasibility, organization culture and structure play essential role during the implementation of strategic change (Akbari 2012). As such, the major aim of implementing the strategic change within the organization is to have a higher organizational performance. Despite having robust formulation process, not all organizations sustain the competitive advantage due to unsuitable implementation process. Various research conducted in almost 200 organizations, 80% of directors implied that the organization has right strategies, but only the 14% of the directors indicated that. Additionally, almost 97% of organization directors having stated that the organization has a strategic vision, only the 93% of the organization directors admitted of achieving a significant strategic success. As such, many companies tend to have a clear strategic vision but few organizations tend to achieve them (Business Development Bank of Canada 2015) Creating Strategic Plans using Kotters Eight Step-Model The senior management team genuinely commit towards review, discuss, identify challenges and agreeing on strategic direction and key components tend to determine the success of strategic plan. As such, the team needs to review the organization current position and estimate the future possibility by applying the SWOT analysis technique. The SWOT analysis helps in identifying the strength and the core capabilities of the product, resources, customers and the people within and outside the organization. Once the core strength and capabilities are identified, the weaknesses and vulnerability need to be identified, though it is the most difficult for the organization and leaders asses. As such, the key aspects to consider are includes if the staff members have right skills, if the resource are enough to venture into new area of the urgent need, the availability of the required systems and strategies to support the agendas of the team during the foreseeing of implementation phase ands if the organization culture, mission and vision connects with the new strategic implementation (Aaltone 2012) The team review needs to focus on the external environment and asses if the new opportunities help the organization to grow and develop. As such, the opportunities need to correspond to the organization strength and align with a possible market changes annually. Additionally, the strategic change needs to add more values through innovation and values that will drive the organization change. The SWOT analysis helps in identifying the current and future market threat for the organization. With information gathered from the SWOT analysis the organization can easily finalize the strategy through structuring new vision, creating mission statement, and identifying the competitive advantage. At this phase, it is the urgent expected time for the top management leadership of the organization to operationally ensure that commitment and agreement between the organization and the stakeholders is in place purposefully for an aide in implementation (Crittenden 2013) Breaking down overall goals into functional areas of the organization is important in realization of strategic implementation change. The functional areas of the organization include operation management, product management, technology management area, supplier management, people management and financial management. Each of the departments contributes towards the realization of the overall goal through the sum of departmental area laid plans adding up to the whole overall strategy of the organization. As the strategic designs and key performance indicators are positioned in place, the organization needs to maintain the alignment of plan and measures towards the organization systems, structure, culture and the performance management design. Implementing Strategic Plans The organization basic and well functioning method of implementing the strategic plans successfully is the hoopla-a standard communication method that efficiently works for the organization. The approach involves the use of posters, events, memos, videos, websites and slogans. When the organization leaders embrace the hoopla communication method, the likeability of the implementation phase to succeed is at a higher point. At this stage the Wal-Mart company tends to use the Kotter’s eight-step model and apply the first step of creating the urgency of change. For the successful implementation of the organization strategic plan, kotter’s model suggests that 75% of the employees need to buy-in the change (Marcela 2015). Developing the sense of urgency around the need for change within the employees helps create the purpose within the organization and make things moving. Strategic Measurement Strategic measurement helps in strategic plans. Appropriate measures indicate how important the strategy is for the organization, provides the motivation towards implementation accomplishment and allows for follow-through sustained regular check-up and attention given. Imposing measures and targeted goals generally increase the attention generally towards the defined strategy and tend to work hand in hand with the workforce around the specific issues to be strategized. The outcomes likely to he observed through strategic measurement includes faster implementation on strategic change, greater accountability due to the assigned responsibilities and better communication responsibility which reduces the duplication effort (Naiknimbalkar 2012). Creating Strategic Map Strategic map is also known as casual business model. The strategic map is important in identifying the focal points; showing the business theory in a simplicity form, linkage between the key components of the business through effects and causes and communicating the vision and mission and plans towards achieving the desirable goals. As such, the business theory is identified by mapping the critical few aspects the drives the overall performance. External Consultation External consultants act as an important technique of designing and implementing the strategic agendas for the organization. At this phase the external consultants are used as facilitators. As such, the internal team members within the organization participate fully on the task assigned hence the external consultants manage the agendas for the organization. As such, the external consultants work on ensuring the core objectives are realized, strategic key issues are managed and minimal chances of conflict of interest arise within the organization. Additionally, the external consultants need to extract best strategic ideals from the team, working towards the realization of vision and mission of the organization, critically reviewing the current opportunities and future opportunities and achieving the true consensus of the organization. Organization leaders partnering with internal team and external consultants, developing a faster strategic plan and implementing them is more likely to be successfully. At this phase, the Wal-Mart company needs to form a powerful coalition using the Kotter’s model in step two. As such, the company needs to seek people that might be influential to the organization through expertise, status, connection and the political importance. The coalition needs to work as a team with the Wal-Mart to build the importance and the need to work towards the change. Macro-Organizational Issues of Strategy Implementation Technology The technology employed within the organization needs to work efficiently within the selected strategy for successful implementation. Due to wider scope focus on improving on the product and services, the technology in place needs to provide the superior results. Reward Systems Reward systems through bonuses, financial incentives, recognition and the feeling of accomplishment pose as an important advantage technique for motivating employees including employers and staffs to support the implementation of the new strategy efforts for the organization. The rewards are generally spread to managers and across employees throughout the organization. Decision-Making At the implementation phase, Questions and problems doubtly arise. The common based conflicts that generally occur include resource allocation, job responsibilities and priorities are the key common aspects that require effective decision-making. As such, the decision- making helps the organization to make important adjustments that favors almost all the working team so as to keep the implementation process on progress and on the target. Organization Structure The organizational structure is the interaction and coordination pattern of the employees developed to assign the employees to their destined jobs areas of qualified skills and jobs to department. As such, implementation of the new strategy might be successful when supported with the structure operating within the organization that is aligned with the new strategic plan. Micro-Organizational Issues of Strategy Implementation Micro organization aspects generally pertains behavior of the individual within the organization on the strategic implementation. As such, the varied outcomes of organization culture and resistance towards change according to employee thoughts of acceptance and rejection of the implementation of the new strategy is analyzed. As such, the organization culture that has developed over a period of time and has progressed easily influence the values, action and belief of the people working at all levels in the organization hence a determinant in acceptance or resistance level of new implementation strategy. Challenges arise when the top management team has genuine information on why a new strategy is required while a normal employee is comfortable on day to day activity. As such, majority of employees tend to reject the new strategy due to their comfort in work duty and as such, the management sees employees as resistant while the main issue is that most of employees don’t get a chance to access volumes of information about research. Therefore, the employees see no need for research. Force Field Analysis Force field analysis is important in researching and identifying the exact power of force for organization change and the force against change. The technique is very important in visualizing the salient forces hence give the management clear image on how to asses the problematic vectors and the speed of implementing the identified raw strategy. Forces supporting change mostly arise within the organization or outside the organization. The outside forces are basically social cultural aspects within the society, government imposing new laws and regulations, international market developments, technological development and changes and entry or outgoing organizations of similar competitors in the market. The internal forces for change includes the market organization generated shares, increase of the production costs on product and services, fluctuating of financial situations and the interest of new product development. (Reilly 2013) Similarly, forces resisting the change tend to arise either internally or externally. The common external forces against the implementation of the new strategy are contractual commitment to outside the organization business entity, marinating the loyalty of the customers and investors that are not willing to embrace the new strategy and varied government rules and ethics of the organization. The within the organization resistance forces usually arise as a general argument like basically claiming insufficient resource available for the implementation of the new strategy. The agreements signed within organization labor working conditions inhibit the ability of top organization management team to shift and to sack employees purposefully to implement the new strategy. Organization culture might also curb the possibility of the change strategy especially if the employees are not spearheading efforts to the proposed change within the organization. The kotter’s fifth approach on the model is to empower action at this phase. Wal-Mark company needs to reduce obstacles by discovering and managing resistance towards change. As such the company needs to recognize and reward individuals pointing out the obstacles and restructure innovative methods to overcome the identified obstacles. Total eradication of staffs and employees on resistance to change within organizations is unlikely to be achieved. Basic approaches can be induced to reduce the possibility of resistance to change within an organization (Tiriboa 2013). The approaches are listed below Participation Participation is highly recommended within an organization due to its universalism towards reducing the resistance to change. As such the organizations need to grant all the resistant staff, employees and directors to engage in planning and implementation of the new strategy hence contributed towards a greater understanding of the need to change into new strategy so as to realize the goals and the objectives. Contrarily, if the participation is overused, the chances of reducing resistance are minimal hence employees may not will to participate because of issues arising like too much allocated time on the project that can time can probably take lengthily when a rapid change is needed (Gboyega 2012) Educate Employees Educating employees before and during implementation is of huge advantage. Through education, employees are supplied with enough and genuine information purposefully for the need of strategy change. Additionally, education makes the organization to be more receptive on the issue of implanting the new strategy for change. The information being provided contributes towards building the support of the strategy that is already succeeding or re-directed towards building a strategy that is currently failing due to less support from the involved members. Group Pressure Group pressure is generally based on the hypothesis that the implementation team and employee’s attitude differences are based on co-workers, family and friends. As such, a group is generally used to persuade individuals that are resistant towards strategy change and act as a supportive team to aid the colleague especially when challenges arise during implementation. Contrarily, structuring a fighting group that opposes the new strategy alters the confidence of implementation team to solicit employees about the strategy on benefiting both the institution and its employees. Management support Management strategies determine the employees support towards the new strategy. The organization need to use supportive steps towards employees hence majority of the employees supports the new idea of change. Additionally, the management support team alters the negative behavior of cohesive resistance team towards the new strategy and helps the resistance group to learn new skills towards the new strategy through running different trainings. Negotiation Negotiation is applicable when few resistors for the implementation of the new strategy are easily identified. The best approach to single out the few resistors is through the conducting of field analysis. As such, the best solution is to offer new incentives towards the resistors to gain the support. Additionally, if the aging group posed to be resistors, it is advisable of offer early retirement purposefully to speed the implementation phase. Co-optation Generally, co-option is offered to key resistor or a leader against the implementation strategy through acting in an important position in exchange for supporting the change. Such technique is quick hence time saving and cost effective. Contrarily, if the information is not delivered appropriately, members or employees might feel tricked and seduced hence might turn back and resist the change. As such, the management needs to be transparent and avoid the possibility of its distrust by the staff members and inhibit the chances of its manipulation. Coercion Generally, coercion is used to overcome the resistance from individuals. Coercion might be applied in an explicit environ whereby resistant met might be terminated or resistance might influence the spearheading decision. Contrarily, the approach might contribute towards conflict or resentments. As such, it is advisable for the organizations that are on quick implementation strategy or if the strategy implemented tends to be unpopular, coercion best fit the organization quick strategy implementation regardless of how it is implemented (Schlesinger 2012). Kottler’s advocate for create wins at this stage. As such, the Wal-Mart company needs to break down all the new strategy to pose an advantage in quick winds to realize the goals of the new strategies. Celebration for the wins needs to be in place so that the organization wins all employees momentum for the support. For such to be realized, the new strategies need to be short-term, achievable and little room for failure. Top Management The effective implementation of a new strategy requires the top management team within the organization. It is the top management that acts as a role model for other managers, employees and staff members to use in evaluating on the environment varied features, the working relationship of employees and employers within the company, and how organizations responds to new variables (Ayawardena 2012) The top management has the audacity to determine the organization structure through decision-making, work assignment and information flow which contributes towards effectiveness and efficient way of implementing the new strategy. The organization culture need to be understood during the implementation and plan to work with new strategies or change the culture parameters for ease of suitability with a new strategy. Real leadership is required to compete effectively and spearhead the organization service delivery. Employees tend to look up to the leaders to find the purpose and the value of new management implementation. As such, it is the leadership that is the common organization thread that runs across the organization that translates the implemented strategy into results. The effective leadership makes results through distilling the opportunity strategy within the organization basically to achieve intent clarity, engaging all the employees within the organization to drive the strategy into action process or the organization performance through the management of the resulting actions (Roper 2013). Based on Kottler’s model, Wal-Mart company top management team needs to make the implementation strategy as part of organization culture (Amelia 2013). As such, the underlying corporate varied cultures determine what gets done and what is rejected. As such, the top leaders need to embrace the values and visions of the organizations basing on implementation strategy hence impact the employees to easily accept new strategy implementation. Wal-Mart company takes the advantage of the model and creates an exquisite performance through customers and the productivity oriented more, more and better leadership between the top management and employees. Additionally, the company should focus on articulating the new behaviors due to the organization new success on strategy implementation. The leadership and succession is important in providing different leaders with different ideologies towards continuous changes in the business environment. Recommendations Creativity and innovation contributes towards a more successful implementation of a new strategy in organization. Creativity and innovation is so untapped in almost all organization because majority of the involved members are the top management while majority of employees might have the capabilities of strategizing new implementation. As such, through the development of information technology, organizations need to embrace the power of community. Bringing all employees, staff members and the top management team on board to engage on one another on the professional dialogue towards the implementation of new strategy contributes towards the realization of the implementation goal. The approach brings about the organization vision going forward while all members within the organization hold pride and commitment towards the organization. The employees contribute much on the implementation phase so as to share the responsibility because it is their organization too, hence minimal possibilities of resistors for the plan (Giannantonio 2014). Work Cited Aaltone, P 2012, ‘Implementing Strategies Successfully’, Journal of Integrated Manufacturing Systems, vol. 13, no.6 pp. 417. Akbari, J 2012, ‘Relationship between Organizational Culture and Strategy Implementation: Typology and Dimensions’, An International Journal of Global Business and Management Research, vol. 4, no.3 and 4, pp. 78. 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