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Integrated Strategic Change

Interventions
Integrated Strategic Change
• Cummings and Worley define the concept
of integrated strategic change (ISC) as a
comprehensive OD intervention that
examines how plan change that can add
value to strategic management.
• It can be either radical or gradual in its
systemic realignment between the
environment and the business strategy.
Integrated Strategic Change
• It has a result-focus while simultaneously
examining processes, structure and
strategies.
• It is concerned with the implementation,
transition states, and human resources
and not just the conceptual plan
• Considers three-time states: the present,
the transition, and the desirable future.
Difference from traditional
strategic planning
• ISC goes beyond the isolated rational
analysis of TSP to include human factors,
culture and environment in the
implementation phase.
• ISC is a highly participative process as
opposed to TSCP which typically resides
in small staff sell at the highest echelon in
the executive branch of the organization
Strategic change interventions
• Are whole system interventions
• Helps organizations to gain a better
understanding of their current state, and
their environment, that allow them to better
target strategies for competing or
collaborating with other organizations.
(Cummings and Worley, 2009)
Strategic Change Interventions
• Transformational change

• Continuous change

• Transorganizational change
Transformational change
• A shift in the business culture of an
organization resulting in a change to the
underlying strategy and processes that the
organization has used in the past.

• “ doing new things or the same things in a


different way”
Transformational change
• Integrated strategic change

• Organizational design

• Culture change
Transformational change
triggers…
• Industry discontinuities

• Product life cycle shifts

• Internal company dynamics


Characteristics of
Transformational change
• Triggered by environmental and internal
disruptions
• Aimed at competitive advantage
• Systemic and revolutionary
• Demands a new organizing paradigm
• Driven by senior executives and line
management
• Involves significant learning
Integrated Strategic Change
Key Features
• Analyzes organization’s strategic
orientation
• Creating the strategic plan, gaining
commitment and support, planning
implementation and execution are all one
integrated process
• Individuals and group are integrated into
the process to create higher levels of
shared ownership and commitment
Integrated Strategic Change
Application Stages
• Perform strategic analysis
• Exercise strategic choice
• Design strategic change plan
• Implement the plan
Integrated Strategic Change
Organization Design
• Comprehensive interventions that
configures the organization’s structure,
work design, human resource practices,
and management and information systems
to guide members’ behaviors in a strategic
direction
Organization Design
• Mechanistic- support control and efficiency

• Organic- promote innovation and change


Organization Culture
• Stable and coherent set of beliefs about
the organization and its environment that
works well enough to be taught to others
Organization Culture
Elements
• Artifacts: visible symbols
• Norms: behaviors
• Values: what ought to be
• Basic assumptions: taken-for-granted,
nondebatable and nonconfrontable
Organization Culture
Influences on performance
• Indirectly affects ability to implement
change
• Indirectly affects ability to operate in
different countries
• Directly affects implementation of business
strategy
Approaches to Diagnosing
Organization Culture
• Behavioral approach

• Competing values approach

• Deep assumptions approach


Cultural Change Application
Stages
• Formulate a clear strategic vision
• Display top-management commitment
• Model culture change at the highest levels
• Modify the org to support org change
• Select and socialize newcomers and
terminate deviants
• Develop ethical and legal sensitivity