Strategy and Change as Essential Ingredients that Foster Enhanced Performance - Term Paper Example

Strategy and Change Student Name Institution Affiliation Strategy and Change Introduction In organizations, strategy and change are two critical components that enhance performance. However, for a firm to remain competitive, it should find the means to manage change and plans (Price, 2009). The reason is that the business environment is ever-changing meaning that for organizations to remain ahead of their competition, they should conform to the new changes. In that light, the week 6 – 11 readings provide ample information on managing change and strategy in companies. Furthermore, with such data, managers can find the best approaches to dealing with organizational leadership with the aim of enhancing performance. As such, I learned that the future and current success of a business depends on the decisions and plans that corporate leaders take. Technology and social advances trigger the need for organizations to be creative (Price, 2009). In that way, the need for change and strategy is inevitable. The objective is for companies to handle competition in the market with all factors considered. Strategy and Change Organizational Change Week 6 Organizational change focuses on the switching of the usual methods as highlighted from week 6-9 notes. In that way, a firm goes through a transformation phase in which business tactics and traditions are changed (Viljoen, 2015). Currently, businesses are faced with the need to change from time to time in the bid to adopt to the changing requirements. Factors such as globalization have increased the available opportunities and markets, therefore, allowing for increased revenue and organizational growth. However, as more opportunities are availed to organizations, so do the responsibilities unfold. For instance, firms have to understand new markets and the challenges that await them. Similarly, companies have to devise means of scrutinizing stakeholders to avoid suspicious activities when cash flow increases (Viljoen, 2015). Most importantly, organizational leaders should learn to manage such new changes while creating a healthy environment to foster good performance. As such, the ability to manage such change is a critical skill for managers in today’s business world. While organizational change is critical regarding the matter of enhanced performance, it requires management (Price, 2009). Such can be achieved through either the bottom-up or top-down approach. However, in both methods, the most important thing is reengineering, delayering, downsizing and creating efficiency using goals. In that way, I understood that a changing culture is initiated that aims to set the pace for continuous improvement. The development of change focuses on the creation of urgency, vision and a guiding coalition (Price, 2009). Similarly, it works to create communication as a vision, motivate employees and enjoy short-term achievements. With that, the internal business environment becomes conducive for the employees, and therefore, performance is enhanced. However, for effective change management to be realized, it requires the consolidation of new changes and the institutionalization of modern approaches. In the case of my organizational situation, the form of change approach used is the top-down type. The decisions concerning new changes are formulated by the top management (Pugh & Mayle, 2009). As such, the employees have to follow and embrace the new changes. As a leader, I have observed that this autocratic leadership creates clear objectives. Also, it has allowed for impact assessment since the top-level management is experienced in the matters of decision making. Furthermore, it provides the basis for return on investment and the view of organizational changes (Pugh & Mayle, 2009). On the contrary, I have also noted delayed deployment of new changes as a manager. At such times, the return on investment is delayed, and the deployment costs increased. Furthermore, the impact of the new changes to the firm were minimal. The reason being that the top management and staff were in a struggle situation. Another issue that affects the implementation of change is resistance. The challenge with the top-bottom approach of implementing change is that employees may disagree with the new decisions (Viljoen, 2015). As I observed from week 6, one of the causes of resistance is the feeling of exclusion. Therefore, in the bid to voice their concerns, the action taken by the employees was resistance to sabotage the new changes. Also, poor communication is another issue I have observed. In this case, a gap exists between the management and the staff which impeded the deployment of organizational change (Viljoen, 2015). During such instances, the employees seem disinterested in taking part is the implementation of the new changes. Therefore, it becomes challenging to convince the staff that the management decisions consider their interests. As a leader, the tricky part in enforcing organizational change is dealing with change. However, at certain times, I have felt that I fail to communicate adequately with my staff. As such, that is an aspect that can be improved to speed up the implementation of new changes. Notably, I have a positive attitude towards solving this conflict which I believe will help address the matter of resistance to change in future. The objective, in this case, is to collaborate, avoid conflict, communicate and compromise my position to make the staff conform to the new change. Although the organizational culture in this organization is organic, resistance to changes makes the new changes difficult to implement. However, with proper management, the problems can be dealt with to create an understanding between the top management and the staff. As a result, the employees will feel like part of the firm and therefore participate in the change process. Organizational leadership is great responsibility since one has to balance between the management and employee concerns. Such is key towards dealing with resistance to change in organizations. The class readings allowed me to determine that this process starts with leading the step through strategic justification, choosing an approach, formulating a vision and considering human factors. With that, it becomes easy to plan, analyze the situation, allocate resources, change policies and monitor the outcomes (Viljoen, 2015). Being a leader, I have seen that I have the appropriate skills to implement change. For instance, I have excellent communication, social skills, critical thinking, and understanding. Despite the fact that implementing organizational change has been challenging, I now believe that I can employ the right skillset to create harmony between the management and employees. Leadership in Organizational Change Week 9 The process of implementing change requires that leaders should adopt to changes in the external environment. Failure in organizational change results from resistance and the inability to embrace new ideas (Price, 2009). In that regard, the class teachings on revealed that change should not be constant but rather a continuous process. As such, business leaders should have been flexible while aiming to achieve flexibility through implementing new change. Unfortunately, the difficult part concerning change is what needs an alteration (Price, 2009). Furthermore, as the business environment mutates we are forced to change our mindsets. Some people are resistant to change and therefore protest new ideas and in that way slow down the deployment process. Additionally, change in firms is not an option rather it is imperative. Both the external and internal environments keep evolving, and therefore the only way to maintain performance is to adjust accordingly. As a manager, there was an instance where my company management took a decision to automate the accounts functions. I determines that the decision to shift was challenging since some of the staff were resistant to the change. In this case, training was required to familiarize the accounts staff with the new system (Viljoen, 2015). The fact that they were used to manual processing made it difficult for them to change to a different level. Some had the notion that they would be fired for lack of information technology skills. I tried talking to the accounts clerks, but they were objective about the change (Viljoen, 2015). However, despite the resistance, I tried to encourage these staff about the benefits of automation. Also, I helped them understand the importance of automation to the organization and engage them in the change process. With time, they recognized the need for the new change. The Perception of Change In business, change takes place from time to time and managers have to adapt to make their firms competitive. The modern world is in ever changing for instance due to technological advances and new products (Viljoen, 2015). For example, the introduction of a new product may trigger an adverse reaction to the consumers. That may happen when they dislike the new commodity and therefore would like continue using what they are used to. Employees too may develop a negative attitude towards their products if their expectations are not realized. In the case of new products, employees expect some positivity from the consumers and increment in their salaries if sales skyrocket (Price, 2009). However, when the contrary happens, they become demotivated and unwilling to invest their energy in production. As such, some companies are resistant to change for these reasons. Notably, some high-risk takers do not worry about the losses they may incur, but rather the benefits of change. Change Requires Action The realization of change in organizations requires action from the management as learned from week 9 notes. However, the failure in its implementation results from the inability of managers to adequately translate the new plans into actions (Viljoen, 2015). First, the problem arises from inadequate planning and leadership skills. Second, it results from poor implementation and execution of processes. Lastly, delayed change is caused by a lack of commitment. However, change requires effectiveness in its implementation. The reason as learned is that the currently used methods may be ineffective (Viljoen, 2015). While growth is central to the development of firms, I noted it is achieved when change is implemented appropriately. In that case, change is not an option but a mandatory requirement for companies that aim to enhance their operations and conform to the ever-changing external and internal environment. Unfortunately, most managers feel that change is a huge responsibility since they have work till their plans work. Also, they are required to coordinate all the involved process which may be an intensive process. However, while the implementation of change is involving, it is a task that managers should be dedicated to (Viljoen, 2015). The reason is that they are the communication between the management and the employees. In that case, if they fail to provide the right plans, then the process of change fails. Some are afraid of new strategies since they are required to change to adopt current market requirements. While the process is fluid, a lot of interactions are necessary to find the right information (Pugh & Mayle, 2009). Notably, the best solution is the change in mindset as it can allow managers to consider long-term benefits rather than the short term. Hard and Soft Change: Week 10 and 11 In the implementation of change, I determined from the week 10 readings that’s it can be accomplished as either hard or soft. Hard change is an approach that results from urgency. In such a case, a firm identifies the need to make radical and immediate changes. This technique bypasses the complexity of change implementation and responds to the need for urgent changes. Most importantly, corporates concentrate on the expected benefits despite the high risk involved (Verweire, 2014). The same change can be experienced when a business goes through a series of changes where one leads to the other. On the other hand, I found out that soft change is implemented consciously through gradual changes. Such changes are implemented when the associated risk is high, and the business environment is too sensitive. However, this type of change is organic, and leadership as studied is used to direct employees to a particular direction (Price, 2009). The approach works best in firms that have adopted a culture of continuous change. However, based on observations, change is inevitable. For instance, IT systems have improved processes which is why most of the business functions today are automated. In that way, it remains important that business should consider such changes and make appropriate changes to remain competitive in their respective markets. Organizational Strategy Week 7 In organizations, strategy entails the total actions to be used for the attainment of long-term objectives as defined in the notes from week 7. Such actions comprise a firm’s strategic plan which takes some time to actualize (Hitt, Ireland & Hoskisson, 2017). The reason is that involvement is required at all levels of an organization. However, the top management handles most of implementing organizational strategy while the middle and lower levels adopt plans and objectives required to realize the new program. Corporate strategy is founded on the mission and vision of a company as studied. In that way, every activity resulting from the strategic decisions should lie within the objectives of a company. The reason is that the long-term goals of an organization arise from a firm’s vision. Most importantly, for a given strategy to work, it should be modularized (Hitt, Ireland & Hoskisson, 2017). As such, various individuals can handle their designated roles making the actualization of organizational goals feasible. The purpose of company strategy is creating competitive advantage which differentiates the current and long-term objectives of business from its competition (Rothärmel, 2017). As learned from week 8, an organization should create focused groups, find a strategic advantage and its future perspective to acquire a competitive edge. Additionally, it should perform an external assessment to gain sufficient market information (Mallory, Wright & Boojihawon, 2010). In that way, it would be possible to understand the market challenges and know the current opportunities. More so, understand the nature of competition in the market. Therefore, as I found out, it would be easy for managers to focus on organizational success for a particular market. In that respect, managers should research on the customer profile and the success factors. Also, an organization should study its internal structure to determine its strengths and weaknesses (Mallory, Wright & Boojihawon, 2010). With that, it would be possible to determine the effectiveness of its value chain and management process. As I learned, such would also include a company's financial plan, production, marketing, sales, development, and research. As a business leader, I have realized that it is imperative to implement organizational strategy. It is one of the factors to achieving enhanced corporate performance. Furthermore, through my experience, I have deduced that it allows for capacity building through the implementation of the right strategies. With that, cooperation improves within the different levels of the organization and therefore the realization of the set objectives (Rothärmel, 2017). However, as seen, the main challenge concerning the implementation of organizational strategies is the choice of approaches. However, the Porters model provides a solid starting point which is why it has been used over the years. With that, my company has been able to change their position about their competition and internal performance. As determined, it provides a means of managing the various organizational levels to create harmony in production and more so high performance. Advantages and Disadvantages of Involving Non-senior staff in Strategy Creation The task of strategy creation is a huge responsibility for organizations and therefore having options is imperative. In that case, the readings on strategy provide that the involvement of non-senior staff is an alternative to finding ideas on strategy development. As seen in my organization, it frees the board from the heavy responsibility of carrying out this task. Furthermore, it allows the non-senior staff to feel that their input is appreciated (Hitt, Ireland & Hoskisson, 2017). As such, everyone takes part in decision making from where the best solutions are implemented concerning upscaling organizational performance. With the right strategies in place, employees are provided with operational decisions that they comprehend. In that way, a company moves as a unit allowing for progression and enhanced performance (Rothärmel, 2017). The reason is that the fact that the non-senior staff are provided with the chance to create strategies makes them focus their efforts on production. Therefore, an organization can evaluate its rate of progression based on its output. Employee development through their involvement in strategy creation reduces organizational turnover as determined from the readings from week 6. Therefore, from the readings I determine that the process of hiring externally is resource intensive. In that way, involving non-senior staff is an intelligent move as these individuals are familiar with the challenges and strengths of their organization (Mallory, Wright & Boojihawon, 2010). Also, it provides cohesion at the workplaces in the bod to satisfy stakeholder expectations. I learned from my leadership position that the tenured individuals have better interactions with their colleagues. That happens especially when they consider their interests when formulating strategies. Such positive interactions eventually spread throughout the organization creating a conducive work environment. Furthermore, the involvement of employees in decision making is a way of enhancing job satisfaction (Mallory, Wright & Boojihawon, 2010). Such an opportunity provides them with the responsibility of developing strategies that will strengthen worker motivation and performance. In that way, an employee offered such an opportunity experiences self-development and work hard to prove their policies. On the contrary, the involvement of non-senior staff in the development of strategies has its challenges. The top management may disagree with some of the proposals based on the fact that non-senior staff lacks experience (Rothärmel, 2017). In that way, an organization lacks flexibility in that it has limited options concerning strategy development. Similarly, the entire process is bent towards developing long-term solutions. Although as a manager I know the importance of involving employees in strategy formulation, in some instances it results in the creation of short-term solutions (Rothärmel, 2017). In that way, the expected benefits are realized within a fixed amount of time forcing the management to get back to the drawing board. Also, the process of strategic management requires the anticipation of the future. Therefore, the use of non-senior staff might fail to satisfy this requirement due to the lack of experience. As such, the duty is best handled by the top management. Emergent and Planned Strategy Week 8 According to the readings on strategy, there is no prescribed strategy approach to using in firms. Also, the decision as to which approach is to be used is based on the merits and challenges that firms face in strategy development (Hitt, Ireland & Hoskisson, 2017). For instance, using the planned approach provides an organization with clarity unlike the case of new strategy. I learned that the top management can identify whether intentions are explicit and definite before implementing them. In that way, it becomes easy for the employees to understand and adopt the new changes in their workplaces. Therefore, the choice of a strategy approach is dependent on the issue of whether it provides a collective purpose to both the decision makers and their subjects (Mallory, Wright & Boojihawon, 2010). Also, as seen, the planned strategy approach involves the planning, creation, and implementation of individual policies and processes after analysis. On the other hand, new strategy evolves from ideas, knowledge, intuitions and employee collaborations. As realized, the objective of any given approach to formulating organizational strategies is creating a predictable and stable work environment. As such, proper plans are required to attain success and more so competitive advantage (Rothärmel, 2017). For example, using proposed strategy approach, company visions, missions, and values are formulated by the top management. The idea is to use the experience to pass proper guidelines and plans to the employees. Therefore I determined that strategies are flexible and change based on the available information to the managers (Rothärmel, 2017). With that, business leaders with a particular goal provide their staff with direction. Also, the development of strategy aims at providing firms with tactics and long-term plans. However, plans are better handled by the top management while tactics can be formulated by non-senior staff since they are short-term. Most importantly, while these two aspects work hand in hand, they complement the strategy approach chosen In the case of my firm, the strategy method used is the emergent style. The decisions made during the formulation of plans are based on the current information. Therefore, the goal is providing the company with flexibility. Irrespective of the fact that this endeavor is middle-sized, this approach enables this company to consider consultation before making decisions. Most importantly, I learned the importance of using the current information in the market to make decisions. In that way, this approach has been the means of making appropriate decisions using the correct intention (Verweire, 2014). For instance, during meetings, all ideas are presented to the table and discussed. Also, new technology is considered as the company aims to get a competitive edge. In the same respect, when meeting clients, they are asked their opinions to determine what they like and what they do not. The objective has been to ensure that the strategies created are conclusive and cater for both the internal and external needs of the company. There are challenges associated with the use of the emergent strategy approach that requires attention. In most cases, there is the issue of over planning, lack of follow up and strategy monitoring, dissection of the customers and misunderstanding between the top management and the employees (Mallory, Wright & Boojihawon, 2010). These are the problems observed at my workplace and gave impeded the successful implementation of the emergent approach. While the emergent strategy offers flexibility, it requires a means of continued review. As such, it would be easy to deal with the challenges experienced by my firm. With that, it would be possible to regularly examine the plans made to determine whether they can succeed. Furthermore, make a follow up through a constant revisiting of the strategy to ensure that benefits the company rather than limit it. Conclusion As explained in the week 6-11 readings, in business, strategy and change are essential ingredients that foster enhanced performance. It is, therefore, imperative that leaders should plan on how to implement these aspects. While change is necessary, I learned it may not receive the anticipated response. As such, adequate research and planning is required before making the decision to change the course of business. On the other hand, business managers need to find the most suitable strategy. The implementation of the organizational strategy requires a follow-up to ensure that the identified plans. However, I realized that the process of enforcing change and strategy takes time and is continuous. Such processes are critical as they allow businesses to adapt to market needs and become competitive. Therefore, I understood that organizational leadership should be founded on the need for change and formulation of strategies. References Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Competitiveness & Globalization: Concepts and cases. Boston, MA: Cengage Learning. Mallory, G., Wright, A., & Boojihawon, R. (2010). Strategy implementation. Milton Keynes: Open University. Price, D. (2009). The principles and practice of change. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Pugh, D. S., & Mayle, D. (2009). Change management. Los Angeles: SAGE. Rothärmel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education. Verweire, K. (2014). Strategy implementation. Abingdon, Oxon [u.a.: Routledge. Viljoen, R. (2015). Organizational change & development: An African perspective. Read More