Strategic change management - Research Paper Example

Running head: strategic change management. Strategic change management. A research strategy Strategic management is a proven and effective method employed by organizations to achieve their long-term goals as it helps in identifying appropriate interventions which can be integrated with organizational systems; these interventions can be used to create short-term objectives aligned to long-term goals, which can drive organizational change and accomplish organizational goals. This research adopts a strategy to bring organizational change through implementation of the Balanced Score Card System in order to achieve organizational goal of cost-efficiency along with achievement of sustainable competitiveness, employee motivation and retention, customer satisfaction and overall organizational growth. Strategic change management Introduction to Strategic Management: Bryson argues that, ‘strategic planning and management aspects have been embraced by organizations to improve their performance in terms of thinking, acting, and learning (2004; p.xiii). To this effect, strategic planning and management aim to incorporate vital elements such as clear goals, adequate resources, enthusiasm and commitment. Institutionalization of management practices in specific and planned manner is strategic management. Thus, strategic management is the process by which an organization establishes its objectives, formulates actions designed to achieve these objectives in the desired timescale, implements the actions and assesses progress and results (Thompson, 1993; p.xiv). Thompson further elaborates that strategic management also involves individual management functions, seeking to integrate them so that managers in one part of the business consider the implications of their decisions for other activities and mangers. Ideally, strategic management functions in the achievement of long-term goals of an organization. Board recommendation Acceptance that change is constant in the 21st century is inevitable. Globalization, world politics, increased global competition, a growing world population, cultural and religious conflict, technological and workforce changes and other factors must be addressed by every organization and individual in the world, if they are to prosper and survive. The strategic management process is based upon the belief that organizations should continually monitor internal and external events and trends so timely changes can be made as needed. With the distressing effects of fluctuating economy, the organization should be now committed to achieve a sustainable position in the competitive world market by making it more cost-effective. Background of organization The organization in discussion provides health services to the public through various functions working together to accomplish this task. It works in collaboration with various trusts, suppliers and vendors, health care professionals and administrative functions. As a consequence of globalization, and in an effort to improve their profits and efficiency, this organization works in collaboration with other Shared Business Services located in different places within the country. Globalization along with increased competition and opportunities have impacted the organizational performance in terms of sustaining competition, customer satisfaction, employee retention, and planning the way ahead. All of these have adversely affected the profits and revenue for the organization. In order to sustain its presence in the market, the organization has to earn the edge in terms of efficiency, quality, employee motivation, and thereby customer satisfaction by delivering valued services. A thorough assessment of its position in the market with respect to other competitors in terms of value, profits, and customer satisfaction was undertaken before deciding upon its objective of improving cost efficiency. Approach: As a management change consultant, a need for strategic approach was zeroed in for accomplishing this task. Considering the size and kind of services, the organization needs to adopt a different and comprehensive method or approach that can address all or most of these concerns. The purpose of strategic approach is that it is most effective when carried out frequently in an organization whose products and services are in an industry that is changing rapidly. Strategic approach and planning should be a part of overall business plan at the start of any organization, and needs to be formulated with the participation of a committee formed ad hoc from various units. Again, space and time should be allocated for strategic plans to be incorporated at the beginning of any major venture such as developing a new department, division, or launching a major service. The change strategy adopted should focus on finding pathways to eliminate issues facing the organization. This includes identifying the issues; identifying all possible factors causing these issues; and, identifying key sources involved, like the key decision makers. Issues could be those existing or the ones’ anticipated; these can include future goals also. Once these are identified, solutions to tackle these issues can be formed. External influences must be taken into account; like, for example, the statutory regulations governing domiciliary care services and political factors operating in the demographic area that could influence work of the organization, internal and external stakeholders’ views, etc. Politically realistic approaches must be adopted in order to tackle these external forces, as it could even include the stake holders (Allison. & Kaye, 2005). Process and Methodology: In order to achieve better profits while addressing the current issues, an organization-wide implementation of the Balanced Score Card (BSC) system can be very effective and efficient. According to Kaplan and Norton, strategy should provide a logical continuum that moves an organization from a high-level mission statement to the work performed by frontline and back-office employees (2004; p.32). Focussing on operational performance or any specific function is not sufficient to achieve organizational goals. Hence, focus has to be spread to other broader areas such as finance, customer satisfaction, operational efficiency, learning and growth. All these together are measured at a departmental level in the form of a ‘balanced score card system (BSC)’ (Kaplan & Norton, 1996). The BSC helps in assigning targets to each area and aligning the same to organizational gaols and vice versa; in turn, performance of each of them directly or indirectly impacting the organizational performance can be measured on the Balanced Scorecard. In a broader sense, the balanced score card can be an effective tool for ‘translating strategy into action,’ which usually happens at the higher levels of management. Hence, departmental performance measurement is done through the balanced score card system. In short, the BSC helps in assessing total business value derived from each function or department. To measure this, the strategies will have to be translated to measurable objectives in each area. The BSC, as proposed by Kaplan and Norton (1996) provides a framework to illustrate how strategy links intangible assets to value creating processes. Besides retaining the financial measurement of an organization at a critical point, the BSC highlights more general and integrated set of measurements that link current customer, internal process, employee and system performance to long-term financial success (Kaplan and Norton, 1996; p.21). The objectives of the organizational mission need to be defined and aligned to each of these four aspects of the BSC. These objectives need to be further translated to measurable outcomes by using unique outcome indicators which can be measured accurately and understood by all members involved in the performance measurement process. The outcome indicators should be able to identify specific numerical measurement that indicates progress towards an outcome. Integrating Hatry’s (2006; p.62) criteria for selecting outcome indicators/criteria for each of these objectives of the four aspects of the BSC can yield an apt comprehensive measurement system. An example of the structure of BSC is given below: Implications for this strategy: Kozak (2004) has strongly advocated the effectiveness of benchmarking in achieving organizational goals and enhance competitiveness by systematic comparison of performance and practices with other organizations, and implement improvement practices. The BSC system helps in identifying the high and low performing areas, and thus reduces time and effort required to identify the gaps or implement appropriate measures for improvement. In addition to the BSC and to drive the culture of BSC system, measurement and improvement practices such as productivity measurement, quality assessment and improvement through Six Sigma or TQM approaches can be very effective in achieving organizational efficiency and better profits. These tools also help in promoting best practice sharing, creativity and innovation within the organization. Below is an example of objective benchmarking based on outcome indicators at a departmental level. In a similar manner, objectives and outcome indicators can be assigned at employee, team, group, department, function and organizational levels based on their respective deliverables, on a weekly, monthly or yearly basis as deemed appropriate. The advantages of implementing BSC in an organization include identification of gaps/areas of improvement in the early stages thereby gaining an opportunity to implement improvement programs; helps the organization become more competitive, provides high quality customer service; motivates employees towards high performance and increases loyalty and commitment; inculcates creativity and innovation; rewards and recognizes good performance; enables clear goal-setting and expectations thereby minimizing employee resistance; and helps in transforming the organization towards learning and development culture. At times of crisis, the BSC can provide appropriate picture in terms of performance in specific areas, which can be used to modify the objectives and their measurables to suit the situation. Disadvantages of implementing the BSC include more effort and time in its acceptance and implementation; requires careful selection of objectives and outcome indicators; internal politics and people issues may hinder the purpose of BSC (Cannon, 2008). Conclusions drawn from this research strategy based on change management indicate that strategically driven change through proven methodological systems can help organizations in achieving their goals. Strategic planning and implementation of these practices play a vital role in achieving competitive advantage through the more required innovation and creation of value. Tackling global challenges requires an organization to interrelate strategies at different levels; starting from the organizational mission to individual goals and targets, all must be interrelated. References Allison, M.J. and Kaye, J. (2005). Strategic planning for nonprofit organizations: a practical guide and workbook. Edition 2. New Jersey: John Wiley and Sons. http://books.google.co.in/books?id=0qSKfnI-VLYC&printsec=frontcover&dq=strategic+planning+nonprofit Bryson, J. M. (2004). Strategic planning for public and nonprofit organizations: a guide to strengthening and sustaining organizational achievement. Edition 3. U.S.A: John Wiley and Sons. http://books.google.co.in/books?id=gJxu_4FVieMC&pg=PA220&dq=BRYSON+2004#PPA8,M1 Cannon, D.L. (2008).CISA Certified Information Systems Auditor Study Guide. Edition 2. Canada: John Wiley and Sons. http://books.google.co.in/books?id=jEueibqy6pMC&pg=PA127&dq=disadvantages+of+balanced+score+card+BSC#v=onepage&q=&f=false Ginter, P.M, Swayne, L.E & Duncan, W.J. (2002). Strategic management of health care organizations. Edition 4. UK: Wiley-Blackwell Publishers. http://books.google.co.in/books?id=x6wZQktLbe8C&pg=PA16&dq=effective+use+of+resources+strategic+planning Kaplan, R.S and Norton, D.P. (1996). The balanced scorecard: translating strategy into action U.S.A: Harvard Business Press http://books.google.co.in/books?id=mRHC5kHXczEC&printsec=frontcover&dq=Balanced+score+card+Kaplan&lr=#v=onepage&q=Balanced%20score%20card%20Kaplan&f=false Kaplan, R.S and Norton, D.P. (2004). Strategy maps: converting intangible assets into tangible outcomes. U.S.A: Harvard Business Press. http://books.google.co.in/books?id=vCnhFu52rosC&pg=PA87&dq=Six+Sigma+cost+efficiency#v=onepage&q=Six%20Sigma%20cost%20efficiency&f=false Kozak, M. (2004).Destination benchmarking: concepts, practices and operations. UK: CABI. http://books.google.co.in/books?id=oG-BOilcvHsC&pg=PA16&dq=benchmarking+performance+measurement+tool#v=onepage&q=benchmarking%20performance%20measurement%20tool&f=false Pande (2003). The Six Sigma Way. New Delhi: Tata McGraw-Hill. http://books.google.co.in/books?id=UNehbDSz-xUC&pg=PA41&dq=tools+of+improvement+Six+Sigma+TQM#v=onepage&q=tools%20of%20improvement%20Six%20Sigma%20TQM&f=false Thompson, J.L. (1993). Strategic management: awareness and change. Edition 2. London: Taylor & Francis. http://books.google.co.in/books?id=ecIOAAAAQAAJ&pg=PA168&lpg=PA168&dq=Times+100+companies+strategic+management&source=bl&ots=it4Q7zlKxC&sig=jSgW-lPIo6MpPz_BhG4ix3pwaRo&hl=en&ei=vflRSqrJMoXq7AOatYiRBA&sa=X&oi=book_result&ct=result&resnum=2 Read More