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June 28, 2014

Strategic Change Management

Strategic Management Models

Various strategic change management theories can be implemented to boost revenues at London BA Airline and to gain a competitive advantage over rivals in the industry. In the first place, the blend of two models can be implemented namely people process and technological advancement.  Hence, the proposition here is that initially these two models be implemented simultaneously. The first strategy (people processes) focuses on an improved stakeholder brand image and profitability.  The objective of this strategy will be to enhance and make the most of available databases with an objective to improve service delivery efficiency. As per this strategy, exclusive emphasis will be placed on internal communication and the implementation of effective review monitoring.
The possible outcomes of the first model will be an increase in profit margin by 2-3 percent and repeat purchasing by 25 percent. This will logically increase customer’s recommendation which in turn be helpful to the overall productivity and development of the airline.
Secondly, the technological advancement model serves to enhance customer loyalty and market share. The core objectives of this model will be to test internet implementation and roll out internet on-board internet access. This also involves an appropriate and viable pricing strategy including complimentary services for first class while targeting business class as a means of achieving maximum profits.  In this regard, this is also necessary to ensure continued market-research with an aim to keep the offered services as unique and valued. This also brings along with it further opportunities for development (Balxill, 2009).
Once implemented strongly, the airline will require installing equipment on remaining 244 aircraft. This strategy will predictably increase business class market share. In order to get the best out of these strategies, an effective implementation will be necessary to ensure, organize, and manage the changes that will have an impact on the airline. Pettigrew suggests that the organizational strategy should be examined by dividing different strategic objectives into categories of context, content and process. It allows for a conceptual direction for implementing strategic change that should be treated as an ongoing process taking place in different contexts. Hence, the need to come up with a conceptual model at London BA airlines aimed at integrating and making the theory of strategic implementation easier to comprehend and apply cannot be stressed less.
We can observe different types of strategic change in organizations, ranging from incremental changes in reactive (adaptation) or proactive (adjustment) to the radical transformation that can also be reactive (forced) or proactive (planned). For each of these types of changes, different approaches are needed. . There are also several points of view on managing change. Pettigrew’s conceptual model accentuates three implementation levels at which top-level managers are needed to operate: the context, content, and process of strategy implementation. Strategic managers must be able to comprehend as to why certain strategic decisions have been made with regards to the organizational context. It involves both internal and external decisions, rationales, mechanisms and upshots of the given strategies. 

Task 2
Strategic Intervention Techniques
I made the most of various intervention techniques in London BA airlines during the planning and implementation process of the strategic change management. In the past, the sales team was certainly made ​​up of experts in the sales who persuaded equally specialized retailers. However, in the past, production and customer service was more or less traditional and a certain level of inefficiency was tolerated. This tolerance is now unthinkable, which requires greater expertise in production management. Similarly, the reliability of tracking orders and deliveries will be greatly increased. New skills are needed for that matter (Levinson, 2000). For all these reasons, the daily practices underwent a drastic change and should question the capacity of existing staff to adopt these new behaviors and develop these new skills, for example using a training plan. The major strategic developments are therefore reflected in operational changes.
I did not provide solutions but specific targets seeking to involve staff in the change process while maintaining control over what was to be achieved. The success of such approach depends on the ability of the manager to determine whether individuals are able to meet the challenges and take the necessary responsibilities. The process can be facilitated by the undeniable impending changes in the nature of the market. This style was more problematic if the need for change had not been clearly recognized by all. My approach was more direct, at least initially. It set a schedule change in an uncompromising style. This approach worked because even those who did not like this style were faced with a stark choice: accept the change or remain permanently in opposition. This style was less appropriate if the perception of the threat had been less acute.
Participative style was also used in order to stimulate motivation, an essential factor to the growth of the airline. We can consider it a virtuous circle: the motivation and energy lead to growth, which stimulates the motivation and energy. However, what would happen in case of slower growth? Reporting the change in terms of objectives may be insufficient, it is better to send clear messages and immediate. A similar approach can be considered in relation to the parent in order to convince the reality of change (Ansoff, 2004).
This technique helps to remind participants that the change of organizational routines and the daily work of individuals have a powerful influence on their attitude towards change. Beyond a seemingly trivial aspect, change organizational routines can therefore encourage strategic developments. Changing routines can symbolize the break with the past. Changing routines can lead to a change of beliefs and implicit assumptions and facilitate strategic change. These changes may also signal the changing role of the reformer. In the example of the distribution business, changing the behavior of the CEO reported not only a break with the past, but also the fact that it adopted a new role and a new image. Changing routines can force people to adapt. It would be very difficult for an employee of London BA airlines to maintain a mechanistic bureaucratic behavior.
Task 3
Driving Forces for Change
There were various factors that provided the organization with an impetus to opt for a strategic change management. Given the management change and its positive effects on the competitiveness of the airline, the company previously was not free of problematic issues. The nature of those problems was dynamic, operational, and human-resource related. Hence, the company devised a more comprehensive and wide-ranging human resources management through the initiative of staff development. However, all the employees were not able to fully benefit from such an initiative.  
Setting goals is not everything; it is still necessary to achieve them. In companies and elsewhere, human strength is indispensable. For part led to lead teams, make decisions, manage schedules, to meet deadlines, trained in project-based management will be a big plus. It was necessary to motivate minds around a project to establish a corporate culture, to identify the forces and to implement them in time, but also to manage conflict so as not to stagnate. The project-based management was an essential step in the career of any framework, to meet its goals by involving all the forces at its disposal. We were confronted with a plethora of problems. Everyday changes in our macro environment challenged our worldview. This allowed for us to effectively deal with the new striking reality (Schumacher, 2003). LRead phonetically 
The major problem that the airline confronted came wittingly or unwittingly from the employees. This involved behavioral problems most of the time that internally affected the operations of the company.  Another glaring problem was the libel case of King and Marshall by Richard Branson in 1993. This controversy somewhat undermined the reputation of the company and left a negative impact on its growth. (Woo, 2008)  

Internal problems in accordance with employee relation also appear following company’s decision to include cost-cutting approach within the industry which Ayling dubbed as Business Efficiency Programme (BEP). This programme had resulted in cabin crew worries in terms of financial losses and triggered the employees to conduct strikes and rallies. In this event, 300 staff has joined in spite of the intimidation of the management including threats to block promotion or even of dismissal and/or being sued for damages. Another 1500 personnel participated in a mass sick-out which has an overall cost of BA £125 million. This problem was a result of the inability of the management to utilize strategic management system in terms of employee relations.
The current period is complex for business leaders who must meet paradoxical requirements. On the one hand, they need to have a strategic agility in the mobilization of corporate resources to capture market opportunities (Kasarda and Rondinelli, 1998). On the other hand, the conquest of strategic advantages is real possibility that when a strategic commitment is maintained (Ghemawat, 1986) to promote the development of resources and skills that the realization takes time and is never certain (Penrose, 1959). In a way, the management
must be able to quickly adapt its business while maintaining proximity to each other the key skills, applicable to each of them, form and allow the company to grow (Traverso, 2000).
Task 4
Resource Implication and Forces of Change
The management subject to constraints of bounded rationality in an uncertain way would jeopardize its scalability (Heiner, 1983). Approaches based on the model of resources and
Skills (MRC) recommend when to get involved in the issue of internal development of distinctive resources. The challenge is not to remain firm but as an entity that has no jurisdiction
land and made use of contractual mechanisms to relate market individuals with productive capacity " Thus, in a complex, an inconsistency would undermine the viability of the firm that would be forced to contract to regulate the activities of strategic importance while market information may be of poor quality, and the positions contested opportunism more difficult to identify. The organization can be a way of creation of skills faster and more efficient than the market in these complex situations (Philip, 2005).
 Management must find a suitable business consistent with respect to competitors and be able to make it evolve. Management can build or rebuild the consistency from one of them only, but must take action to control the other two eventually. It may fail in its attempt either failing to hold the triple-resource competence capacity, either by failing to maintain the conditions of reproduction of this process, then only with protecting their competitive advantage by strengthening mechanisms of insulation. We particularly stress the fact that companies can continue to hold resources not distinctive without being able to replace them easily. In a way, a failure may occur in the ability to identify, value and ownership of resources, whether of production, exchange or coordination (Durand, 2000). The recognition of this ability demands interested analysis of consistency. Resources may not generate income, because they are not of sufficient quality. However, it is a state definition, expressed in terms of stock and not a definition of process, in terms of flow. This definition is representative of a first period of resources research. To advance in the recognition dynamic process, it will be a second generation of research to address skills by being involved.
Two types are generally attributed to strategic skills, which are beyond names given in various works, skills and core competencies. Core competencies are the collective learning of an organization and especially how to coordinate the various technical and integrate multiple streams of technology (Hamel and Prahalad, 1990). In this way, the process leading to make a particular core competence is essential because it partly determines the trajectory evolution of the firm and therefore the result of market positioning potentially accessible. The quality of the result depends on the internal selection, itself under the management responsibility, which can introduce bias. Bias allows the introduction of core competencies which, however, were not intrinsically the best in the beginning.
Task 5
Stakeholders, Planning and Implementation of Strategic Change
The recent period seems particularly unstable and confused in many areas activities, particularly following the deregulation movement or structure. Thus, the air transport or delivery of service via the Internet illustrates causal frames particularly complicated by the rapid change of relations between the elements of the environment and the predictability various stakeholders (Emery and Trist, 1964). This context has led firms in these sectors to the question of the consistency of their offerings. The major stakeholders of the airline remain to be its loyal customers and employees.
Increasing the size of the organizations in the airline industry has led to a concentration of resources where the competition goes, not holding a particular resource, but by the development of distinctive competencies. British Airways is the example of a firm that has built its coherence from a strategic approach produced served initially by the resources it has refocused to build core competencies-based workflow and management of human resources. Moreover, it has been successful in having the major stakeholder’ trust reposed in its efforts to be a booming airliner (Johnson, 2008). Ultimately, the company has developed for over 15 years an organizational capability that allowed it to change its offer so relevant to the new market constraints and needs (Payaud, 2001). However, the process of creating consistency appears not to have been fully maintained, which led the company to a position of status quo, where the aim is now essentially to protect the specific assets and skills rather than renew.
The triggering event of the new development of British Airways is a political decision. In May 1979, the British Conservative government announced its intention to privatize major industries nationalized. In 1981, British Airways had five years to find a positive fiscal position to convince investors. Margaret Thatcher attributed this mission to Lord King. The objectives were set. First, preparation for privatization imposed a financial rationalization. On the other hand, become "the best in the eyes of clients" implied the qualitative and quantitative objectives. Qualitative decisions were translated into innovations products and services geared to the interests of the passenger. The quantitative dimension was related to the size global objectives and should result in better management of flows and an expansion of the airline. Two sets of actions were then engaged.
• The first was to refocus and homogenize the activity of the company,
• The second to build new skills and capabilities required for this focus.
The first actions in 1981 took the form of a "survival plan" and in 1982 a "Recovery Plan" which consisted mainly of the removal of assets: 16,000 layoffs, sale of property, suspension 16 lines of international abandonment of the cargo business and removing the combined fleet, sales activity "catering", closing eight international airports and two basic techniques. The company then conducted a focus on the resources most in phase with new goals, and from which she wanted build new skills. Productivity gains have been significant and helped to change the financial position of the company. However, problems of funds remained to be resolved, particularly the ambition to achieve strategy of being “the company prefers that the world.
Task 6
Resistance to Change and Ways to Assuage it
The airliner’s decision to opt for a strategic change management was also met with resistance and criticism. Another problem cropped up during the change process, this time due to the initiative of the management of the company to change the brand of British Airways from the familiar red and blue BA logo into a 50 new designs from artists across the globe (Deacon, 2006). The purpose of this image change was directed towards making BA more vivid and easily recognizable airliner. This step also invited problems since certain shareholders did not buy into the idea of such a change and considered this as an extravagant and unpatriotic.
Another problem that arises is in terms of the increasing customer dissatisfaction of the services offered by British Airways. Moreover, due to the inability of the management to handle employees effectively and to show commitment and honest communication, more internal human resources problems cropped up.  This in return affects the overall operation of the business making the business loss profits and reputation among its target market.
However, the company quite deftly adopted a sound strategy to assuage the grievance of a few but significant stakeholders of the company. Management efforts were soon directed towards the formation of core competencies. The strategic approach was essentially "product" and tended to focus on the economic conditions of the issuance of the offer. Resources were refocused on the goal. However, the formula had to be complemented by the rapidly greater control technologies and customer relationship, which led to develop new skills.
Finally, the company looked for an adaptation to the constraints of the network organization of companies that at that time will best express the implementation of organizational capabilities specific to the company. In the period 1986-1989, the company has developed new core competencies around the resource what the major information system. The information technology (IT) had formed a support essential to the management of the company (Chandler, 2002).
They have proved to be an essential marketing support, and capacity management, and have acquired the status of core competence for the company. In the late 1980s, a database of travelers was created to meet a more personalized to the needs of customers and a system for customer management has been launched to develop loyalty. This skill and strategy has also enabled London BA airline to optimize the management capacity of the aircraft, "yield management ", to achieve the highest score in terms of profit / seat. The specificity of this competence held until the 1990s, when competitors were able to adopt this type of management.
Task 7
Strategic Model used for change
Market knowledge refers to a deep understanding of the logic that the customer uses to choose the service. Given this, it was necessary to impose new concerns in terms of "marketing" and "competition" to make customer service an obsession of members of the company. A co-construction of supply was organized with the passengers, inviting them to such seminars reflecting on the delivery of airlines. The creation of a marketing team reflected a desire to separate the business and sales. We had represented in decision-making point of view of the customer. The marketing team created new units whose purpose was to make complaints, suggestions and compliments customers a means of improvement. The mission of the claims department was directed to consumer protection. The principle was to evaluate the company against the standards it had established, in relation to what customers expect from the airline and compared the performance of competitors.
Our experience in service activities allowed us to assert that the improved supply remains dependent on the customer contact personnel, including motivation. It was necessary to stabilize and recruit personnel with the requisite skills. The 5000 people volunteered to leave the company, have been replaced by a three-year targeted recruitment of the expected skills, such as high flexibility, including appropriate knowledge of foreign languages ​​and the need to deal with customers. Similarly, each manager was evaluated based on his leadership skills, communications, and their ability to motivate the customers. A program of homogenization behavior was also designed to strengthen cohesion of the company through its employees. It's "Putting People First I and II". Choosing the term "People" (staff) rather than "Customer" (client) was indicative of such a desire that the first beneficiary of a confident and motivated staff in its work were the customers.
The challenge was not to develop knowledge, but rather to bring the staff at London BA and to reconsider the notion of "service", and to prepare for change. In 1984 Georgiades was recruited to establish new policies for personnel management. He established a evaluation system to promote independence. There is now only one obligation, that of the result.
The means to achieve the goals are left under the responsibility of staff. The idea is, in fact, to
combine a measure of the performance-oriented "result" (60%) with a measurement-oriented "medium" (40%) (Chaffee, 2008).
Staff was required to take initiatives and to develop creativity and capacity for innovation
to deliver the expected outcomes. It gives confidence to staff, we elect a principle of non-punishment, but we had to have a responsible staff. In this way, resources are valued in the market, but the company is implementing the principles of management likely to develop in-house specific resources. The mission of the human resources management was no longer content problems recruitment and career management, but now integrated talent management vis-à-vis objectives assigned by management.
The foresight of the leaders of London BA airlines was to sense that would remain only a handful of large companies. It was then necessary to prepare for globalization. This has motivated the commitment of the company in a web of agreements (alliances, partnerships, acquisitions ...) in three markets, namely Europe, Asia and the North American continent, which will enhance the organizational capacity of management. A focus on some resources could be sufficient to achieve the strategic intent 'The world's favourite Airline'. It should be complemented with the development of core competencies and organizational capabilities that create the conditions a continuous change in supply. London BA airline is now the first company world in terms of international passengers carried. However, it seems that the consistency it has built in recent years has not changed since. In sum, the comparative advantages are being eroded with the general systems reservations, covenants, "hubs and spokes." Thus, the company now seems to adopt a defensive attitude of the benefits it mastered with the emergence of new competition. It emphasizes active defense specific core competencies and by insulating mechanisms (Rumelt, 1984).
Task 8
Measurement and effectiveness of Strategic Change
All organizations are aware at some point difficult passages by which they recover, strategic choices informed by the personality of a leader, by happy coincidence of events. What is a confused organization? It is an organization that no longer knows the way, whose members are no longer able to perceive, identify, and recognize the ins and outs. Interpretations open to them are double, ambivalent, if not many, but it cannot isolate the predominance of one over the other. It is in an ambiguous situation.
 The organization is often conceived as a "black box" where in and out of many sources of information. The dominant paradigms of organizational theory describe firms as systems processing information and solving problems. In organizations, people are trying to determine what will be the consequences of actions taken. They use their explicit knowledge and tacit, internal or external to the organization or their own memory, leaving an unknown number of strategic alternatives.
Mastering the dynamics of knowledge can determine the competitiveness of economic agents. Faced with the globalization of markets, London BA airline learnt to coordinate their expertise to ensure a predominance of the other. They lack the time to understand their environment (emergency, information overload new) and bounded rationality; they apprehend and perceive the environment which is a reflection of their own beliefs. They are rather informal in interpreting their environment, and favor a local rationality (mental models). They compete with competitors who formulate their strategies with knowledge very similar. They interact with their environment (suppliers, customers) in a historical continuity (recipes learned in their industry) and society.
The interpretation system can be defined, according to P. Baumart, like a succession of data acquisition, followed by an attribution of meaning that generates organizational learning. The latter is defined by Daft and Weick as "the process by which knowledge about action dominates the relationship of the organization with its environment."
The actors also lead in their interpretations of the limits they impose. Caught in the constraints of time and using information more or less reliable individuals looking for the easiest ways to reduce complexity, based on criteria they feel judged close to the aspirations of the hierarchy. They therefore satisfy a rational understanding of local and prefer a limited number of problems and in giving a limited number of objectives.
The combination of consciousness and identity leads to different forms of attitude to knowledge and different skills to formulate strategies on the basis of this knowledge. For example a large field of consciousness and low identity support the emergence of the militant movement. An approach to organizational knowledge is to observe three basic dynamic: its creation, its application, its preservation. They interact and complement each other. Knowledge is meaningful (creates link) in its application and as soon as it loses withdraws its context of use.
Companies give meaning to their environment by using indicators (Boolean, quantity, quality), reduced by signs even if they are not faithful to reality. These instruments regulate and determine patterns of relationships between actors. So the reality is often formulated as a normative aspect. Knowledge often responds to a principle of economy many: it creates the sense of urgency in the requirements and it creates meaning for managing uncertainty.
For our company the challenge was to hold knowledge, know-how more than its competitors. It mobilizes all its resources to codify the knowledge it possesses. But some knowledge is not codified and will never be identified once lost.


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