Strategic change management and innovation – BMO32306
Strategic change management is the process
Innovation is the outcome
Strategic: the decision of adapting or creating new products and services to achieve &
maintain competitive advantage in a rapidly changing world (markets, consumer
demands/needs, technologies, regulations, etc.)
Change management: the process of changing not only the products and services, but also
the entire organization to fit with the strategy.
Innovation: the application of new technology and new ideas in the organization and in the
market to achieve competitive advantage.
Strategic management example
o Decision to focus on products for older, richer consumers.
o Decision to expand procurement or marketing in Asia.
o Decision to contribute to sustainability, etc.
Change management example
o Hiring/training new staff.
o Adopting new IT-based knowledge management systems.
o Establishing new departments or project teams.
o Changing the corporate culture.
Innovation example
o Marketing a new product in an existing market.
o Marketing the same product in a new market.
o Marketing a new product in a new market.
o Producing the same product with different materials or technology.
Performance example
o Return of Investment (ROI)
o Gross revenue from sales
o Profit margins
o Market share
o Customer satisfaction
o Employee satisfaction
o Stakeholder satisfaction
o Sustainability indicators
Life cycle view = organizations evolve based on a necessary and unchangeable sequence of
steps, which is cumulative over time.
Evolutionary view = organizations survive or die based on the fit with their external
environment: the most adapt will survive and grow, the others will die.
,Teleological view = organizations learn over time from the external environment (market,
technology, social changes), set goals, adapt and change consequently.
Dialectical view = organizations confront their conflicting goals and find a direction to change
based on the balance of powers among stakeholders.
Lewin’s three step process:
1. Unfreeze or unlock the existing level of behavior
2. Move to a new level (or equilibrium)
3. Refreeze behavior at this level
Key steps of a purposeful change (Hayes)
1. Recognizing the need for change and starting the change process.
2. Diagnosing what needs to be changed and formulating a vision of a preferred future
state.
3. Planning how to intervene in order to achieve the desired change.
4. Implementing plans and reviewing progress.
5. Sustaining the change.
6. Leading and managing the people issue.
7. Learning.
, Process models (Kotter)
Process models (BPI)
Strategic change management is the process
Innovation is the outcome
Strategic: the decision of adapting or creating new products and services to achieve &
maintain competitive advantage in a rapidly changing world (markets, consumer
demands/needs, technologies, regulations, etc.)
Change management: the process of changing not only the products and services, but also
the entire organization to fit with the strategy.
Innovation: the application of new technology and new ideas in the organization and in the
market to achieve competitive advantage.
Strategic management example
o Decision to focus on products for older, richer consumers.
o Decision to expand procurement or marketing in Asia.
o Decision to contribute to sustainability, etc.
Change management example
o Hiring/training new staff.
o Adopting new IT-based knowledge management systems.
o Establishing new departments or project teams.
o Changing the corporate culture.
Innovation example
o Marketing a new product in an existing market.
o Marketing the same product in a new market.
o Marketing a new product in a new market.
o Producing the same product with different materials or technology.
Performance example
o Return of Investment (ROI)
o Gross revenue from sales
o Profit margins
o Market share
o Customer satisfaction
o Employee satisfaction
o Stakeholder satisfaction
o Sustainability indicators
Life cycle view = organizations evolve based on a necessary and unchangeable sequence of
steps, which is cumulative over time.
Evolutionary view = organizations survive or die based on the fit with their external
environment: the most adapt will survive and grow, the others will die.
,Teleological view = organizations learn over time from the external environment (market,
technology, social changes), set goals, adapt and change consequently.
Dialectical view = organizations confront their conflicting goals and find a direction to change
based on the balance of powers among stakeholders.
Lewin’s three step process:
1. Unfreeze or unlock the existing level of behavior
2. Move to a new level (or equilibrium)
3. Refreeze behavior at this level
Key steps of a purposeful change (Hayes)
1. Recognizing the need for change and starting the change process.
2. Diagnosing what needs to be changed and formulating a vision of a preferred future
state.
3. Planning how to intervene in order to achieve the desired change.
4. Implementing plans and reviewing progress.
5. Sustaining the change.
6. Leading and managing the people issue.
7. Learning.
, Process models (Kotter)
Process models (BPI)
