Unit 705-Leading strategic Change

Leading Strategic Change

Aims of the Unit

Leaders must be able to navigate an organisation

through strategic change.

This will optimise an organisation’s ability to remain competitive, react to the needs and expectations of stakeholders and respond to changing national and international markets.

The aim of this unit is for leaders to understand the scope, context and complexity of leading strategic change.

Leaders will understand how the application of analytical techniques, theories and models of change, and creative problem-solving can be used to equip them to lead strategic change with confidence.

The unit culminates in giving leaders the opportunity to develop a proposal to lead a strategic change.

Key Words

• Change, drivers, scope, context, problem-solving, theory, approaches, strategy, reflection, success.

Learning Outcomes

Understand the scope and context of strategic change

Know how to propose a strategy for leading strategic change

Learning Outcome 1:

Understand the scope and context of strategic change

LO1 Assessment Criteria

AC 1.1 Discuss the scope, context and drivers for organisational change

AC1.2 Critically appraise the complexities of leading strategic change

AC1.3 Critically evaluate theories and models for leading and managing strategic change

Good Practice-AC1.1 Discuss the scope, context and drivers for organisationalchange

AC1.1 Scope: strategic, operational, departmental, team, people

Organisational context:Type of organisation.

• Public sector (local and national government).

• Private.

• Third sector.

• Local, regional, national, international and global organisations(Cross border and crossboundary organisations).

• SMEs. Partnerships. Sole Traders. Limited liabilities Companies (LLPs).

Good Practice-AC1.1 Discuss the scope, context and drivers for organisational change

Internal drivers for change:

• Financial management.

• Profitability.

• Organisational structures and governance.

• Re-structuring

• Competition.

• Organisational culture (Edgar Schein, 1988; Johnson and Scholes, 2011). Organisational vision and values.

• Resourcing, capabilityand capacity.

• Innovation,entrepreneurialism,creativityand enterprise.

Good Practice-AC1.1 Discuss the scope, context and drivers for organisational change

Internal drivers for change:

• Stakeholder requirements.

• Current, emerging and disruptive technologies.

• New ways of working across infrastructure, processes, people and culture and sustainability.

• Systems thinking, knowledge/data management, programme management.

• New product development.

• Staff morale.

• Demographics.

• Conflict management.

Good Practice-AC1.1 Discuss the scope, context and drivers for organisationalchange

External drivers for change:

• Legal and regulatory requirements (e.g. health and safety, environmental standards, CSR).

• Government-led drivers (e.g. legislative changes, policy initiatives).

• Political, economic and social influences and stability (e.g. local, regional, national, global).

• Industry structures.

• Stakeholder influence.

Good Practice-AC1.1 Discuss the scope, context and drivers for organisational change

External drivers for change:

• Competition (e.g. from existing and new competitors).

• Partnerships.

• Emerging/changing markets.

• Disasters and events.

• Emerging and disruptive technologies.

• Big data and insight.

AC1.3 Critically evaluate theories and models for leading and managing strategic change

Theories and models for change:

•Models of Incremental and Transformational Change. Eight Guiding Principles of Change Management (Kotter, 2014).

•McKinsey’s 7S Model (Singh, 2013).

•The Three Step-Model of Change (Lewin, 1947).

•The Action Research Model (Lewin, 1946).

•ForceField Analysis (Lewin, 1951).

•Radical Change within Traditional Structures (Oswick, 2015).

•Appreciative Enquiry Model (Cooperrider, Srivastva, Bushe et al, 2011).

Learning Outcome 2:

Know how to propose a strategy for leading strategic change

Good Practice- AC 2.1 Develop a proposal for leading strategic change

AC2.1 Proposal:

• Outline of the proposed strategic change (e.g. synopsis of change, statement of business value/benefits of change, anticipated timeframe, resources).

• Aim and objectives of strategic change.

• Alignment of change to the strategic goals of the organisation.

• Compliance with organisational (e.g. HR, ethical, CSR), legal and regulatory frameworks.

• Tools and techniques to deliver strategic change.

• Diagnostic and action-planning.

• Stakeholder mapping.

AC2.1 Proposal:

• Models of change (e.g. Kotter, 2014, Lewin, 1946, Oswick, 2015).

• Structured approaches to project management (e.g. Agile, Waterfall, PRINCE2.)

• Risk identification and mitigation.

• Contingency.

• Governance and reportingstructures.

• Potential impact and consequences of strategicchange.

• Gaininginsight into effects of change. (e.g. change agents, stakeholders).

• Overcoming resistance to change.

• Monitoringoutcomes (e.g. Reactions to change, values, beliefs, culture).

• Communication strategy to support and disseminate strategicchange (e.g. Internal/external).

Good Practice- AC 2.1 Develop a proposalfor leadingstrategicchange

Good Practice- AC 2.2 Reflect on how approaches to leadership can be applied to deliver the strategy for change

2.2 Leadership approaches and management models: • Authentic Leadership (Goffee and Jones, 2011). • Entrepreneurial Leadership (Roebuck, 2014). • Transformational Leadership (Bass and Riggio, 2006). • Situational Leadership (Hersey and Blanchard, 1969).

Good Practice- AC 2.2 Reflect on how approaches to leadership can be applied to deliver the strategy for change

2.2 Leadership approaches and management models:

• Five Practices of Exemplary Leadership (Kouzes and Posner, 1987).

• Leadership Styles (Goleman, 1995).

• Charismatic Leadership (House, 1997).

• The Servant Leader (Greenleaf, 1977).

• Finding new role models. Allowing imprecise visions. Creating new areas and pockets of commitment. Ethos, ethics and values (Mendonca and Kanungo, 2007). Use of informational resources

Sources for research and suggested reading/web resource materials

• CAMERON, E. AND GREEN, M. (2019) Making sense of change management: a complete guide to the models, tools and techniques of organisational change. 5th ed. London: Kogan Page.

• HOLBECHE, L. (2018) The agile organization. 2nd ed. London:Chartered Institute of Personnel and Development.

• BUTLER, M. and ROSE, E. (eds). (2011) Introduction to organisational behaviour. London:CIPD Kogan Page.

• CHILD, J. (2015) Organization: contemporary principles and practice. 2nd ed. Chichester: John Wiley.

• DAFT, R. (2014) New era of management. 11th ed. Mason, OH: South-Western Cengage Learning.

• EMIR, A. (2018) Selwyn’s law of employment. 20th ed. Oxford:Oxford University Press.

• FARNHAM, D. (2015) Human resource management in context:insights, strategy and solutions. 4th ed. London:CIPD Kogan Page.

• GRANT, R. (2016) Contemporary strategy analysis: text and cases. 9th ed. Chichester; : John Wiley and Sons.

• HARTMAN, L.P., DESJARDINS, J. and MACDONALD, C. (2013) Business ethics: decision making for personal integrity and social responsibility. 3rd ed. New York:McGraw Hill.

• ROLLINSON, D. (2008) Organisational behaviour and analysis: an integrated approach. 4th ed. Harlow: Financial Times Prentice Hall.

Sources for research and suggested reading/web resource materials

• Handy, C. (1993). UnderstandingOrganisations.Penguin.

• Haye, J. (2018). The Theory and Practice of Change Management.Palgrave. (5 th ed)

• Hodges, J. (2016). Managing and Leading People Through Organisational Change:The theory and practice of sustainingchange through people. Kogan Page.

• Hughes, M. (2010). Managing change: a critical perspective. Chartered Institute of Personnel and Development.

• Maccoby, M. (2017). Strategic Intelligence: Conceptual Tools for Leading Change. Oxford University Press.

• Olson, A. and Simerson, K. (2015). Leading with Strategic Thinking: Four Ways Effective Leaders Gain Insight, Drive Change, and Get Results. Wiley.

• Stanford, N. (2018). Organisation Design. Routledge.

• Stanford, N. (2013). Engaging with Change. John Wiley and Sons, Routledge.

• Kotter, J.P. (2011). On Change Management. HBR’s 10 must reads. Boston, MA: Harvard Business Review Press.

Sources for research and suggested reading/web resource materials

• Ashkenas, R. et al. (2002). The Boundaryless Organization: Breaking the Chains of Organisational Structure. Jossey Bass.

• Hughes, M. (2010). Managing Change: A Critical Perspective. Chartered Institute of Personnel and Development.

• Kotter, J.P. (1996). Leading Change. Harvard Business School Press.

• Kotter, J.P. (2008). Sense of Urgency. Harvard Business School Press.

• Kotter, J.P. (2014). Accelerate: Building Strategic Agility for a Faster-Moving World. Harvard Business School Press.

• Mill, J.H., Dye, K. and Mills, A.J. (2009). Understanding organisational change. Routledge.

• Schein, E.H. (2004). Organisational Culture and Leadership. John Wiley and Sons.

• Senge, P. et al. (2008). The Necessary Revolution: How Individuals and Organisations are Working Together to Create a Sustainable World. Nicholas Brealey.

Recommended Journals/Articles

• Aguirre, D. and Alpern, M. (2014). 10 principles of leading change management. Strategy Business. No 75, Summer. pp.65-71.

• Alfes, K., Truss, C. and Gill, J. (2010). The HR manager as change agent: evidence from the public sector. Journal of Change Management. Vol 10, No 1. pp.109-127.

• Barratt-Pugh, L. and Bahn, S. (2015). HR strategy during culture change: building change agency. Journal of Management & Organization. Vol 21, No 6. pp.741-754.

• Gill, A. (2009). Employee engagement in a change environment. Strategic HR Review. Vol 8, No 2. pp19-24.

• Graetz, F. and Smith, A. (2010). Managing Organisational change: a philosophies of change approach. Journal of Change Management. Vol 10, No 2, June. pp.135-154.

Recommended Journals/Articles

• Hennessy, J. and McCcartney, C. (2008). The value of HR in times of change. Strategic HR Review. Vol 7, No 6. pp.16-22.

• Kotter, J.P. and Schlesinger, L.A. (2008). Choosing op for change. Harvard Business Review.

• Lawrence, P. (2015). Leading change: Insights into how leaders actually approach the challenge of complexity. Journal of Change Management. Vol 15, No 3. pp231-252.

• Singh, A. (2013). A study of role of McKinsey’s 7S framework in achieving organizational excellence. Organization Development Journal, 31(3), pp.39-50.

• Wiedner, R., Barrett, M. and Oborn, E. (2017). The emergence of change in unexpected places: resourcing across Organisational practices in strategic change. Academy of Management Journal. Vol 60, No 3. pp.823-854.

• Wolff, C. (2010). Managing change survey 2010: The role of HR. IRS Employment Review. 6 September.7pp

Recommended Journals/Articles

• A new era for culture, change and leadership: a conversation between Edgar H. Schein and Peter A. Schein. (2019) MIT Sloan Management Review. Vol 60, No 4, Summer. pp52-58.

• BARRATT-PUGH, L. and BAHN, S. (2015) HR strategyduring culture change: building change agency. Journal of Management & Organization. Vol 21, No 6. pp.741-754.

• BALOGUN, J. and JOHNSON, G. (2004) Organizationalrestructuring and middle manager sensemaking. Academy of Management Journal. Vol 47, No 4. pp523-549.

• DAVIS, R. and CATES, S. (2018) The implementation of the organizationalculture assessment instrument in creating a successful organizationalculturalchange. InternationalJournal of Business and Public Administration. Vol 15, No 1, Fall. pp71-94.

• LEETARU, L. (2019) The wrong ways to strengthenculture. Harvard Business Review. Vol 97, No 4, July/August. pp21-24.

• REHN, A. (2019) Has your organisationturned into a monoculture?People Management

• (online). 5 July.

Recommended Journals/Articles

• SHAW, J. (2019) How businesses can bounce back after a challengingperiod. People Management (online). 26 June.

• AGUIRRE, D. and ALPERN, M. (2014) 10 principles of leadingchange management. Strategy+Business. No 75, Summer. pp65-71.

• ANAND, N. and BARSOUX, J-L. (2017) What everyone gets wrong about change management. Harvard Business Review. Vol 95, No 6, Nov/Dec, pp78-85.

• BROWN, G. (2018) Six ways to help guide employees through multiple changes. People Management (online). 14 June,

• LAWRENCE, P. (2015) Leadingchange: insights into how leaders actually approach the challenge of complexity. Journal of Change Management. Vol 15, No 3. pp231-252.

• PETERS, R. (2020) What lessons can COVID-19 teach us about organisational change? CIPD People Profession Insight. 12 June.

• WIEDNER, R., BARRETT, M. and OBORN, E. (2017) The emergence of change in unexpected places:resourcingacross organizational practices in strategicchange. Academy of Management Journal. Vol 60, No 3. pp823-854. Reviewed in In a Nutshell, issue 69.

Recommended Journals/Articles

• Change for the better, Tracy Chisholm, Annette Martell Communication World. Dec 2013, vol. 30 no 9, pp 22-25

• Managing change: nine common blunders-and how to avoid them, Tim Toterhi, Ronald J Recardo Global Business & Organizational Excellence. Jul/Aug 2012, vol. 31 no 5, pp 5469

• Successful change management, J S Oakland, Stephen Tanner Total Quality Management & Business Excellence. Jan-Mar 2007, vol 18 no pp 1-19

• Why do change efforts so often fail? Richard McBain Henley Manager Update. Spring 2006, vol 17 no 3, pp 19-29

Journals

• International Journal of Strategic Change Management

• Journal of Change Management

• Journal of Organisational Behaviour

• Journal of Organisational Change Management

• Journal of Organisational Design

• Leadership & Organisation Development Journal

• Journal of Occupational and Organisational Psychology

• Journal of Organisation Design

• Organisational Behaviour and Human Decision Processes

• Organisational Science

Web links

• Association of Project Management http://www.apm.org.uk/

• Change Management Toolbook www.change-management-toolbook.com

CHANGE MANAGEMENT

"In order to maximise their success, organisationstoday need to adapt to a turbulentenvironment... Managingchange is not easy (Burnes, 2009)."

Planned change management allowsmanagers and practitionersto incorporatespecific tasks and events into each stage of the change process. The concept explores how to face highlydynamic and complex environmentsand how to make the most of an organisational change.

Change Management Definition

Change management is the systematic approach to adjustingand transitioningorganisational processes,procedures, strategies, attitudes, functions or technologiesfrom their existing state to one that is considered superior (Burnes, 2009; Cameron and Green, 2009).

CHANGE AGENTS

• "There needs to be a change agent (or group of change agents) who possess the "skill and power to stimulate, facilitate, and coordinate the change effort" (Lunenburg, 2010)."

• Irrespective of the magnitude of a change that takes place within an organisation, there needs to be a change agent. Learn about the roles and attributes that change agents can adopt and consider the case study evidence and practical application steps provided.

Change Agents Definition

• Change agents are people (individuals or groups) that not only initiate but also managechange within organisations. They can be internal to an organisation such as managers or employees, or external such as consultants who are tasked with overseeing change management (Tschirky, 2011).

CHANGE LEADERSHIP

• "Change ... requires creating a new system, which in turn always demands leadership (Kotter, 1995)."

• The concept explains why successful and sustainable organisational improvements depend on effective change leaders who know how to create and disseminatea vision, overcome resistance to change and manage conflict. The concept provides examples that illustrate how change leadership has been successfully used in the industry.

Change Leadership Definition

• Change leadership is the ability to influence and enthuse others through personal advocacy, vision and drive, and to access resources to build a solid platform for change (Higgs and Rowland, 2000). Leadership is often viewed as key to successful change (American Management Association, 1994).

EMERGENT CHANGE

• "Practitioners need to be aware of the importance of power politics within organizations as a determinant of the speed, direction and character of change (Dawson, 1994)."

• The concept provides a description of the emergent change process, the type of change that is not in an organisation's agenda - it simply manifests in our social systems when the underlying components have achieved a new order that give way to new behaviours.

Emergent Change Definition

• Emergent change is based on the assumption that change is a continuous, open-ended and unpredictable process of aligning and realigning an organisation to its changing environment (Burnes, 2009).

PROCESSUAL APPROACH TO CHANGE

• "The processual perspective on change views organisational change as a complex and dynamic process, and not something that can be treated as a series of linear events (Dawson, 1996)."

• The processual approach highlights the importance of context in examining unfolding processes of change. Rather than follow concrete steps to make change happen, leaders are encouraged to focus on two main principles underlying the theory.

Processual Approach to Change Definition

• The processual approach states that change is continuous and without a finite end point. Change is also a "messy" process that is shaped by an organisation's history, culture, and internal politics. As such, the processual theory does not prescribe a list of steps to manage change (Pettigrew, 1985).

PHASES OF CHANGE

• "Lewin saw change as a group activity, as it is group norms and processes that need to be modified if change is to be successful (Cummings & Huse, 1989)."

• Lewin’s phases of change model has made an important contribution to the study of organisations and management. Strengths and weaknesses of the theory are considered within a business context and practical implementation guidance is provided.

Phases of Change Definition

• Kurt Lewin's phases of change model describes a "planned approach" to organisational change management that progresses through three stages. Thus, it is commonly referred to as the three-step model: unfreeze, change, freeze (or refreeze) (Lewin, 1947).

TRANSFORMATIONAL CHANGE

• "[Transformational changes] severely jolt organisations and push them to question their business strategy (Cummings & Worley, 2009)."

• The concept presents empirical evidence on the evolving role of transformational change and case study evidence of such changes within organisations.

Transformational Change Definition

• Transformational change occurs in response to, or in anticipation of, major changes in an organisation’s environment or technology.

• These changes often are associated with significant revision of the firm’s business strategy, which in turn may require modifying internal structures and processes as well as its corporate culture to support the new direction (Cummings and Worley, 2009).

Change Management

• Organisational change is a constant in many organisations, driven by a number of different forces including customers, markets and technology. Yet research shows that most change initiatives fail to get their intended outcomes and may even limit an organisation’s potential and its people.

• The effects of not managing change effectively can be devastating and long lasting, so it’s important that people professionals understand the issues and equip themselves with techniques to support change management initiatives.

Change Management

• The ability to manage change effectively is a key skill for managers in a society where rapid change has become the norm and new technologies are continually being introduced.

• However, research shows that many, if not most, change efforts fail to achieve their objectives, at least to some extent.

• Paying close attention to the process of implementation will pay dividends in terms of your ability to achieve objectives and achieve and sustain organisational success.

• Change management can be a slow, painful and expensive process. An informed and thoughtful approach will be needed to address both ‘hard’ logistical issues and ‘softer’ people issues.

• Many people find change difficult and may resist or try to hinder the process. A combination of patience and firmness will help managers to handle change programmes effectively, especially where they are seeking to change attitudes and behaviour.

Change Management

• The detailed schedule for implementing change will vary according to both the type of organisation and the nature and scope of the changes that are planned.

• There are, however, common issues that should be considered and general principles that should be followed when introducing change regardless of the specific context.

• Many different models are used for managing change and managers may wish to find out about the ideas of writers such as John Kotter, Rosabeth Moss Kanter; Kurt Lewin and Bernard Burnes and identify a model which they feel will work well in their particular situation.

Managing Change

• Managing change involves accomplishing a transition from position A to position B and handling any problems which come up during the process.

• The process of change within organisations usually results from interactions between four major elements:

• equipment (technology);

• processes (working procedures);

• organisation structure;

• and people.

Change to any one of these will inevitably lead to changes to the others, as organisations are complex inter-related systems.

Why organisations need to change

There are many drivers of organisational change.

These include:

• Growth opportunities, especially new markets.

• Economic downturns and challenging trading conditions.

• Shifts in strategic objectives.

• Technological developments.

• Competitive pressures, including new entrants, mergers and acquisitions.

• Customer or supplier pressure, particularly shifting markets.

• Learning new organisation behaviours and skills.

• Government legislation/initiatives.

Types of change

• Transitional change ( Replace what’s there )process , merger • Developmental change ( improve what’s there ) • Transformational change ( from one state to another ) culture ect

The COVID-19 Pandemic

• The COVID-19 pandemic has created a situation of rapid change and disruption for organisations in 2021: changing their focus, expanding or contracting their activities and rethinking their platforms, products, and services.

• This change was significant in terms of its near universal impact, but other drivers of change also create uncertainty, for examplethe period following the UK’s decision to leave the EU

• In the wake of the pandemic, financial pressures, corporate scandals and greater public scrutiny, organisations are developing a more balanced view of their stakeholders, and taking account of a greater range of considerations (beyond financial) in making decisions.

• Meanwhile, technology is driving new forms of employment relationship and fundamentally changing the way businesses operate.

The COVID-19 Pandemic

• In this context, organisations need to introduce and manage change to achieve organisational objectives, maintaining the commitment of their people, both during and after implementation.

• Often, at the same time, they must also ensure that business continues as usual.

• So it’s vital to consider carefully the way any change is managed, and those doing it are properly supported. While each change situation is unique, there’re still some common themes that will help give the change process the best chance of success.

Why managing change is important

• People are at the centre of many of the changes in the workplace. People professionals and HR functions are among those best placed to drive effective change.

• They have a role and responsibility to ensure that organisation development, (re)design, due process, employee voice and clear communications are appropriately and effectively addressed as part of the change process.

• Business professionals have a particular role to play in ensuring the long-term sustainability of a change, through effective design and delivery of learning initiatives.

• It’s key for all people professionals to understand and work within the network of change activities across different departments, enabling them to anticipate, design, and shape organisational change in a joined-up way.

Why managing change is important

• Change management matters not least because change is taking place at an accelerating pace and there’s evidence change initiatives often fail.

• The complexities and difficulties of delivering change are well established, with failure rates frequently cited as high as 70%.

• Failure to introduce effective change can have a high impact: loss of market position, removal of senior management, loss of stakeholder credibility, loss of key employees, and reduction in employee engagement and motivation.

Why managing change is important

• Organisational forms are themselves evolving.

• Increasing competitive challenges and the need to be responsive to changing environments are resulting in new organisational models. Traditional models following functional or matrix lines are being supplemented by models that rely on project teams, networks and virtual structures.

• The COVID-19 crisis has seen many organisations rapidly shift their model of how and where work gets done. Change management responses will also have to be adaptive.

Why managing change is important

• In theory, some of these newer models, for example virtual and projectbased structures,allow increased flexibility to respond to change.

• However, they are not always introduced uniformly, and in practice often bring other issues that affect change management, for example ability to share knowledge and to operate efficiently.

• They may also impact communicationor employee commitment,which themselves have implications for change effectiveness.

• People can feel isolated or lose some of the identity or routine that they’d become accustomed to.

Issues in the change management process

Organisational issues

• Individual change initiatives are not always done as part of a wider coherent change plan. For example, a change that considers a new structure, but fails to establish the need to introduce new systems or processes to support such a structure, is less likely to succeed.

• Lack of effective project management and programme management disciplines can lead to slipped timings, achieving desired outcomes and ensuring that the projects do deliver as planned.

Insufficient relevant training, for example in project management, change management and leadership skills, can all impact negatively on the effectiveness of any change initiative.

Issues in the change management process

Organisational issues

• Poor communication can be linked to achieving effective change in various ways. For example, imposed change can lead to greater employee resistance or misaligned expectations.

• Change initiatives can also be over-managed, with too much energy spent on project management and too little on enacting change.

• Finally, lack of effective leadership is an inhibitor of effective change.

Issues in the change management process

• Individual and group resistance to change

• Resistance to change can be defined as an individual or group engaging in acts to block or disrupt an attempt to introduce change.

• Resistance is not necessarily negative, as it may be a clear signal that the change initiative requires rethinking or reframing

• Resistance itself can take many different forms from subtle undermining of change initiatives and withholding of information to active resistance,such as through strikes.

There are two broad types of resistance:

Individual and group resistance to change

• Resistance to the content of change. For example to a specific change in technology, or to the introduction of a particular reward system.

• Resistance to the process of change. This concerns the way a change is introduced rather than the object of change in itself.

• For example, management re-structure of jobs without prior consultation of affected employees.

Individual and group resistance to change

• Reasons for resistance include: loss of control, shock of the new, uncertainty, inconvenience, threat to status and competence fears. It's important not to assumethat resistance is negative, and to try to diagnose the cause of employee resistance as this will help determine the focus of effort in trying to address the issue.

• Research by the CIPD suggests that ‘resistance to change’ may in fact be a deep rooted threat response, designed to keep us safe.

Employee Personalities

Professor Jens Krause (2008) indicated the four main types of personalities when it comes to change as:

1 Initiators

Wants to initiate change because the status quo does not serve them 2 Adapters

Adapt once they see the change working for initiators 3 Followers Will follow the other two types once they believe it is the right thing to do 4 Resistors

Will resist change because they don’t want to change or can’t change

Why people resist change

Loss of control or authority

Change has been imposed

Lack of understanding about the change

Fundamentally disagreeing with the proposed change

Uncertainty about what the change means or how it will be achieved

Fear about losing something they value

Worry about being able to cope with the change

Change-fatigue where constant change has been occurring

Lack of trust and confidence in the managers leading the change

Having to move to a new team or get to know new colleagues

Making change management more effective

• It’s clear that change is complex and there isn’t a single solution to managing it.

• However, a number of key areas of focus emerge. The CIPD transformational change research, in collaboration with the University of Bath, identifies ten techniques, across three themes, which can be applied to a variety of change management scenarios to enhance the effectiveness of change programmes. However, whilst these areas should always be considered, the pace of change sometimes dictates the need for a more rapid response.

• In these situations, the areas below that touch on communication and voice are, arguably, the most important to ensure the best possible result in difficult circumstances.

Designing the transformation

LEADERS AND DESIGNERS OF CHANGE NEED TO BE ABLE TO ‘READ’ THEIR CONTEXT; TO EVALUATE IT TO IDENTIFY ASPECTS THAT HINDER CHANGE.

THEY THEN NEED TO DESIGN CHANGE PROGRAMMES WHICH FIRST PUT IN PLACE INITIATIVES TO REWRITE OR REWIRE THEIR CONTEXT IN A WAY THAT OVERCOMES OBSTACLES TO ENABLE THE DESIRED CHANGE.

Aligning strategy and culture

• For transformation to succeed, designers of change need to align strategic and cultural aspirations.

• Using new strategic goals of the organisation as a starting point, they must identify a new supportive and goal-consistent culture in terms of beliefs and behaviours.

• If open discussion and debate is encouraged in the top team this enables more proactive, opportunistic change to happen, as leaders become more open to breaking with the past and moving away from old business models as they become irrelevant.

Techniques for building understanding

Ambiguity and purposeful instability

• Transformation can be facilitated if a change vision is ambitious yet also presented in ambiguous terms, with the deliberate intention to encourage individuals to actively question and attempt to make sense of their situation.

Narratives, storytelling and conversations

• Narratives and stories can be used as communication devices to make the content and implications of new strategies easier to understand, enhancing individuals’ ability to translate change into meaningful actions for themselves. Organisation development work provides useful structure and guidance for conversations,and considers the role of self too as an important part of the change process.

Physical representations, metaphors and play

• Use of objects, metaphors, symbols and pictures - maybe as part of playful design as an alternative to traditional and often rather dry change workshops - helps to engage individuals and to enable them to translate change rhetoric into meaningful changerelated actions.

Managing the transformation

Relational leadership

• Rather than implementing change through authority and control, in new forms of leadership transformational change is achieved through negotiations and social interactions with organisational members.

Building trust

• High levels of trust will deliver the enabling conditions in which significant change can thrive.

Change leaders need to emphasise their trustworthiness by demonstrating their competence to design change intelligently, and their benevolence and integrity in the way they attend to the needs of the business, employees and the wider community. HR and L&D systems and processes designed and administered in a fair way, help foster trustworthiness in the organisation.

Managing the transformation

Voice, dialogue and rethinking resistance

• In more democratic workplaces, the actions of employees who raise concerns about change should not be labelled as resistance, but instead reframed and reinterpreted in terms of legitimacy of employee voice.

Emotion, energy and momentum

• Change is often an emotional process and so emotional awareness by those leading and designing change is required to anticipate and plan for reactions. Those managing the change must also maintain levels of energy and momentum throughout the change process.

Managers role in managing change

• The CIPD’s transformational change research, with the University of Bath, explores HR and L&D’s role in managingchange though four case study organisations.

• The research demonstrates that people professionalshave a significant role to play in any change management process. They often act as ‘stage directors of change’ playinga critical role behind the scenes – appreciated by all, but not front of stage. The report provides various recommendations that people professionals should consider if they are to be successful expert initiators and facilitators of transformational change:

• Be willing to work as the ‘hidden hand’ of change, highly relevant to its success. Work in partnership with the CEO/business leader and their executive team and as ‘back stage’ support for their ‘front stage’ activity.

• Facilitate translation of the overall vision through mass communication, use of relevant techniques, and changes to interactions and entrenchedsystems.

• Create change advocates, remove obstacles, act on measurement and ensure leader visibility.

Managers role in managing change

Understandinghow to effectively enable change is a ’core’ knowledge area for all people professionals.

But they may experience a conflict of interest between the business and employees, when leading and managing change.

The abilityto apply situational judgementand demonstrate moral integrity is what will enable them to be trusted advisors, and help the organisation create long-term sustainability.

Since Managers are responsible for making decisions that affect workers’ lives, it’s importantthat practitionershave confidenceto uphold professional standards when faced with difficult situations.

1. Agree the implementation strategy

• Before you begin to embark on a programme of change, you must have a clear strategy based on the objectives and outline planswhich have already been set. The details of the implementationwill depend on the desired outcomes and on the approach to be taken, whether this is to be top-down, bottom-up, or a mix of both.

• Decide also whether to introduce change by division, by department, or organisation-wide. Bear in mind that a ‘big bang’ approach is not normally advisable as most organisations only have a finite capacity to cope with change.

• When decidingwhich approach to take, it is also important to think about where the key influencers are and how communication channelswill work.

• A programme of change is unlikely to be the only corporate initiative underway at any given point in time. Ensure that the strategy and goals behind the programme are consistent with those of other organisational initiatives, and that all are pointingin the same direction.

• Make sure that employees receive consistent messages aboutthe organisation's core values and beliefs in relation to all the initiatives.

2. Agree timeframes

• Every change programme needs a start date.

• Also, aim to set a finite time span for the implementation, regardless of whether it is being introduced incrementally or simultaneously across all divisions.

• The timetable must be stretching enough to convey urgency, but attainable enough to be motivating and realistic.

3. Draw up detailed implementation plans

Draw up detailed implementation plans with each divisional or departmental head in line with both the strategy and timetable which have been agreed.

The team responsible for the changes can act as a source of advice and consultancy when necessary, but line managers should be empowered to determine how to implement the change in their areas of responsibility, in accordance with its overall goals.

For senior management, decide how progress will be monitored and whether stage reviews are necessary.

4. Set up a team of change champions

1The change champion team will not necessarily include top management, but will benefit from a board level champion.

The team should include the key people involved in designing and delivering the change, as well as those affected by it.

This team has a key role to play in benefits realisation management – defining and disseminating the benefits of the changes and communicating them effectively in their own parts of the organisation.

5. Establish good programme management practices

• Treat change in the same way as you would handle any project or programme.

• Consider using a recognised project or programme management tool or methodology, such as ‘Managing Successful Programmes’. Keep objectives in mind, set milestones and monitor progress in order to keep the programme on schedule and on budget.

• Don’t assumethat change will necessarily be wholly successful or painless. Undertake a risk analysis and make any necessary contingency plans. It is imperative to flag up potential problems as early as possible.

• Also keep track of the costs associated with implementing change and ensure that a contingency budget is in place. Establish ground rules for the programme team, particularly with regard to information sharing,decision-making and reporting.

6. Communicate clearly

• The importance of good communications to the success of change programmes cannot be underestimated.

• Good communications should be based on careful stakeholder analysis in order to ensure the right messages get to the right stakeholders through the best channels. Identify your stakeholders, map them carefully, and then communicate with each stakeholder group in a manner that will encourage their positive engagement with the aims of the programme.

• Do all you can to ensure that employees at every level of the organisation understand the reasons for change and know what will be happening, when it will be happening and what is expected of them. Often, it is uncertainty rather than change that really worries employees. Provide as much information as possible and quash inaccurate rumors as soon as they arise.

• Don’t assume that everything is clear to everyoneafter a single message. Communication should be ongoing. Provide opportunities for employees to seek clarification, where necessary and give regular updates and progress reports. Make sure to report on early wins and celebrate successes.

7. Ensure participation and help to minimise stress

• All change is stressful and it can be especially stressful if it is imposed without consultation or adequate communication.

• This can have a detrimental effect on how well change is adopted and sustained in the longerterm.

• There are, of course, instances when change has to be imposed to address an issue such as a financial crisis, but mechanisms can be introduced to facilitate the process.

• Fear of the unknown rather than change itself is often a major stress factor but its impact can be reduced by being as open as possible about the consequences of change.

8. Personalise the case for change

• Individual employees must feel they can take ownership of the change programme as it evolves. This is much easier when they can personalise it and relate it to their own work and team.

• Ensure that line managers are able to present the corporate case for change in terms which every individual in the company can relate to.

• Consider what change will mean for each individual in terms of: status (job title, budget responsibility); habits (changes to working time, new colleagues); beliefs and attitudes (move to a customer focus); and behaviour (new working practices).

• Changes to working practices will need input from the HR department at the planning stage and may require specific change activity or union consultation, for example.

9. Be prepared for conflict and manage it effectively

• Change usually brings about conflict of one kind or another, simply because people have different views and react to stressful situations in different ways.

• Try to bring conflict to the surface rather than allow it to fester; tackle it by examining and analysing it with those involved and seeking ways to resolve the issues.

• Conflict can often be put to positive use. For example, open discussion and clarification can lead to the resolution of difficulties and the introduction of improvements.

• When conflict cannot be resolved through explanation and discussion, you will have to negotiate and persuade. This means avoiding getting into any entrenched positions yourself, and working out how to influence others if they dig their heels in too deeply.

• It also means finding ways to reach agreement on the best way forward without major loss of face for either side, while at the same time, being mindful not to prejudice the underlying change initiative.

10. Motivate your employees

• Sustained change requires very high levels of motivation and this will be difficult without strong relationships of trust and respect across the organisation.

• Recognise that employees need to feel valued, to have their efforts and achievements recognised, and to be developed and challenged.

• Be aware that different people are motivated by different types of reward.

11. Develop skills

• View the change programme as a learningprocess.

• Give attentionto developingboth technical and interpersonal skills at all levels within the organisationand integrate this into corporate trainingand developmentprogrammes.

• Specific trainingto enable change, such as providingan induction into new systems and technologies may also be needed.

• Change also provides an opportunity to develop learning capability and builda culture of learninginto the organisation.

• Creatinggoals and plans that everyone can subscribe to will enable everyone to benefit.

• Turn learninginto somethingthat people want to buy into, rather than a chore – help people to feel the 'buzz' of discovery and involvement in new developments. Set an example by updating the skills of top management.

12. Maintain momentum

• Incremental change is often a longprocess, consistingof very small and often imperceptible changes in behaviour and attitudes.

• Accept that change may be a stop/start process. Watch out signs that initial enthusiasm is flaggingand the pace of change is slowingto an unacceptable rate. Plan for this and develop strategies to create a sense of purpose and urgency and give fresh impetus.

• To gear the organisationup for renewed efforts after setbacks, seek innovative ways to remind staff of the overall case for change and to reinforce its value to them.

• A set of quick wins and visible success points is a useful framework for achieving this. Leadingindicators of potential benefits are also helpful in maintaininginterest and demonstratingprogress.

• Think about how to address problems which have prevented progress in the past.

• Ask yourself what and who is preventingprogress, and who can help to unblock the situation. You analysis of stakeholder groups, and of their varying interests and perspectives, (as mentioned in point 6 above,) should help you to gain an understandingof the forces in play.

• Aim to break the code of silence that engenders organisational protectionism and maintainsthe status quo.

13. Monitor and evaluate

• Monitor and evaluatethe results of the change programme against the goals and milestones established in the original plan.

• Are these goals still appropriateor do they need to be revised in the light of experience?

• Existing performance measures may not be compatiblewith the changes being introduced and may hinder change unless they are revised.

• Check that all the measures used are consistent with organisational vision and goals, and if not, re-design them.

• Be honest in your assessment of progress. If there is a real divergence between the planned goals and reality, admit this and take corrective action without delay. Be open about failure and involveemployees in setting new targets or devising new measures.

• In some circumstances it may be necessary to engage an internal or external change agent as they will have the skills and abilitiesneeded to facilitatea difficult process of change.

• Organisationsthat are otherwise good at what they do may nonetheless find it difficult to manage change effectively.

Organisational culture and cultural change

One of a Managers fundamental roles is organising and coordinating the workforce to deliver value and success.

Systems and processes are part of this, but on their own are not enough for an organisation to make real progress.

Taking diversity and inclusion as an example, research indicates that an organisation which fails to value difference, or enables some groups but not others to progress, is unlikely to see positive change, despite having policies in place.

Workplace norms, values and behaviours, traditions, perspectives and beliefs of individuals are also crucial. It’s these shared characteristics among people within the same organisation that create it’s organisational culture.

Organisational culture and cultural change

• There are many academic definitions of organisational culture, including Balogun and Johnson’s ‘the way we do things around here’ and Schein’s ‘the pattern of shared basic assumption - invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration - that has worked well enough to be considered valid and therefore to be taught to new members as the correct way to perceive, think and feel in relationship to those problems’.

• Denison’s definition is ‘the underlying values, beliefs and principles that serve as the foundation for an organization’s management system as well as the set of management practices and behaviours that both exemplify and reinforce those basic principles’.

Organisational culture and cultural change

• Culture matters because it offers a way for employees to understand their organisation, to voice their views, and to develop connections and common purpose.

• It’s also important to continually assess that culture, as the organisation’s purpose and values will affect the standard of its customer service and influence the engagement and retention of its people.

• There’s speculation that culture affects organisational performance, and some organisations have put great effort into changing their culture and structure to improve this.

• However, while managing organisational culture is increasingly seen as a necessary part of governance and management practice, research evidence on the link between organisational culture and performance is weak.

• More research is needed to further establish links between organisational culture and positive outcomes, such as organisational performance, as well as to define reliable measures of organisational culture.

Organisational culture and cultural change

Is organisational culture different to organisational climate?

Academic research isn't consistent on the difference between an organisation'sculture and climate. However, there are some useful distinctionsto make.

Research found that culture is about how decisions are made, from the top or in a distributed way, about the way things are done in an organisation.

For example, whether an organisation encourages its people to conform or to take risks, or whether it supervises or liberates its employees. Although cultures are rarely so polarised,these examples give a sense of the choices an organisation makes when establishing ‘what we’re all about’.

Organisational culture and cultural change

An organisational ‘climate’, on the other hand, is widely defined as the meaning people attach to certain features of the work setting. It’s the feeling or atmosphere people have in an organisation, either day-to-day or more generally.

The way an individual understands their workplace guides their behaviour. Creating an organisational climate of inclusion, for example, requires employees to attach meaning to their experience of work.

Only when there’s a shared belief that all employees are respected, valued and allowed to be themselves, will an organisation have a truly inclusive climate. So organisational climate can be described as the perceptions and meanings people give to the culture in which they work.

Clearly, culture and climate are linked and mutually influence each other which helps to explain why the two are often (wrongly) used interchangeably.

How is organisational culture measured?

• Given that there’s no universal definition of organisational culture, there’s also no unified set of measures for it either. However, there are some key theoretical frameworks developed to understand an organisation’s culture and tools used by consultants to support organisations in assessing or changing their culture.

Denison Culture Index

Denison defines four different traits of organisational culture which can be measured:

1. Mission Has the organisation a clearly articulated strategic direction and goal, as well as measures of success/key performance indicators.

2. Employee involvement. Does the organisation rely on employees to make decisions by empowering them and developing them, as well as enabling team working.

3. Internal consistency. Has the organisation got a set of values that are consistent and to which they visibly adhere.

4. Adaptability. Does the organisation focus on learning from competitors and customers, and how open is it to change.

• The Denison index includes a mix of organisational and psychological constructs, which are measured through a diagnostic survey. It’s a common methodology used for measuring culture.

How is organisational culture measured?

Competing Values Framework and Organizational Culture Assessment Instrument

Another framework commonly used by people professionals is the Competing Values Framework (CVF). It was devised in the 1980s and distilled through research down to 16 measures that describe business concepts such as training and development, planning and goal setting, evaluation and external entities, and readiness.

The measures, termed the Organizational Culture Assessment Instrument (OCAI), were devised to help change the CVF, which originally focused on organisational effectiveness, into an organisational culture measurement framework.

However, this measurement system includes other concepts, such as structure, leadership, practices and strategy, and ambiguity across the different measures means that defining a single dominant culture is difficult.

How is organisational culture measured?

Organizational Culture Inventory

• The Organizational Culture Inventory (OCI) consists of 10 themes and 120 questions, described as ’styles‘ that are used to describe two key concepts: a concern for people, and an emphasis on tasks.

• These are categorised into three culture clusters: constructive, passive/defensive and aggressive/defensive. Each cluster has sub-themes or norms.

• The OCI was originally designed with behavioural norms in mind, and not with other measures such as organisational effectiveness.

• As such it’s considered by academics to be a more sophisticated,purer measure of organisational culture.

What is culture change?

• Culture change has been described as ‘movement from the current known state to a potentially unknown state’.

• Organisation developmentpractitioners have a crucial role in managingorganisationalculture, and specifically facilitating cultural change.

• An effective approach to managingchange is vital because evidence indicates thatfew change initiativesare successful.

• This failure can have a great impact on an organisation, both in their market position and the engagement and retention of employees.

• The possibility of failure is always present when an organisation undertakes cultural change.

Do culture change initiatives work?

A review by the Cochrane Collaboration found that high quality evidence on the effectiveness of strategies to change organisational culture is lacking.

A major issue is that evidence fails to identify an agreed or clear definition of organisational culture, nor reliable methods of measuring it.

There is a real need for evaluations of culture change initiatives to guide practice in making more effective investment decisions.

Risks and solutions

• Murphy gives a short list followed by practicalsolutions in his article Culture change pitfalls and how to avoid them:

• Avoid creating fanfarearound culture change: Announcing change at an event is more likely to concern employees, who fear the chaos it will cause, rather than excite them. Instead, take a more low-key approach and make small changes, such as appealing to the emotional element of change by enlisting change champions.

• Schein advocates thinking about culture change systematically, given that it may evolve from a small but effective change in behaviour. Through spending time talking about the need for change, its challenges and possibilities in small groups, employees will feel more confident engaging in the conversation.

Risks and solutions

• Murphy gives a short list followed by practicalsolutions in his article Culture change pitfalls and how to avoid them:

• Convey the need for change to the wider organisation:Individuals in a small team take careful and timeconsuming considerationbefore deciding to initiate change, which of course results in them rationalising and justifying this decision. However, this makes it hard for them to empathise with those who do not have the privilege of knowing what they do, and are hearing this news for the first time. To overcome this, use stories that allow employees to connect with the need for change. Allowing members of the wider organisationto understandthis should allow them to see the benefits of change, ratherthan the negatives of an upheaval.

• Graspthe informal organisationand networks of employees: Failure to take advantageof these groups can be detrimental to the progressof culture change. Like change champions, ensuring that leaders of networks and employee resource groupsare involved in the implementation of culture change is key.

In How do you change an organizational culture? Denning

• In How do you change an organizational culture? Denning considers tactics leaders have historically used to bring about successful cultural change, and the difficulties they have faced. He suggests several Dos and Don’ts for leaders which fit well with those above.

• Do come with a clear vision of your direction for the organisation and promote this throughout the workforcethrough storytelling.

• Do identify key stakeholders of the new vision and encourage the wider organisation to be continually responsive to the needs and desires of those stakeholders.

• Do define the role of managers as enabling their team and drawing on the full capabilities of talented staff.

• Don’t begin by immediately reorganising. Instead, clarify the vision and ensure there are management roles and systems that support this vision.

• Don’t parachute in a new team of managers. Working with the existing managers, and those who share your vision, will be much more conducive to creating shared values among the organisation.

• These points make it clear that for everyonein an organisation to buy into culture change, leaders must better understand how to marry business needs with the human experience of change at work.

Business Environment – micro and macro environmental components

• In order to correctly identify opportunities and monitor threats, the company must begin with a thorough understanding of the marketing environment in which the firm operates.

• The marketing environment consists of all the actors and forces outside marketing that affect the marketing management'sability to develop and maintain successful relationshipswith its target customers.

• Though these factors and forces may vary depending on the specific company and industrial group, they can generally be divided into broad micro environmental and macro environmental components.

Micro Environmental –Internal to business

The micro environment consists of five components.

1)The organisation’s internal environment—its several departments and management levels—as it affects marketing management's decision making.

2) Marketing channel firms that co-operate to create value: the suppliers and marketing intermediaries (middlemen, physical distribution firms, marketing-service agencies, financial intermediaries).

Micro Environmental –Internal to business

3) The five types of markets in which the organisation can sell: the consumer, producer, reseller, government, and international markets.

4)The fourth component consists of the competitors facing the organisation.

5) People that have an actual or potential interest in or impact on the organization’s ability to achieve its objectives: financial, media, government, citizen action, and local, general, and internal publics

Macro Environment – External

•

• The company and all of the other actorsoperate in a larger macro environment of forces that shape opportunities and pose threatsto the company. There are six major forces (outlined below)in the company’smacro environment.

• There are six major forces (outlined below) in the company’smacro environment.

• Demographic • Economic • Natural • Technological • Political • Cultural

Change Theory , Tools and Models

Lewin,

Kurt (1947)

Frontiers in Group Dynamics

Lewin –Force Field Analysis

• Lewin's Force Field Model is an important contribution to the theory of change management - the part of strategic management that tries to ensure that a business responds to the environment in which it operates.

Kotter 8 step model:

• Developed by John Kotter, the Kotter 8 step change model focuses more on the people experiencing large organisational changes rather than the changes themselves and this can be used in adapting your business to the current climate.

The ADKAR model:

• Created by Jeffery Hiatt, the ADKAR change management model is a method which focuses on the individuals behind the change which is a set of goals to reach and with each goal making up a letter of the acronym. By focusing on achieving the following five goals, the ADKAR model can be used to effectively plan out change on both an individual and organisational level.

Mckinsey 7s Model

•

A change model which does consider staff more clearly is McKinsey’s 7 Step. The model identifies seven internal factors of an organisation which need to be aligned in order for it to be effective and successful The model can therefore be used to identify any of the seven factor that are not aligned and what needs to be done to improve performance.

• Waterman Jr, Robert H and Peters, Tom (1982)

In Search of Excellence

DABDA SYNDROME

• "Research on organisations has made use of the DABDA model, especially in terms of organisational change (Rausch, 2008)."

• The DABDA emotional cycle although originally focused on terminally ill patients, it has been extended to other areas where people perceive they are negatively impacted by change. Considering case evidence, success factors and implementation steps managers can help employees through the change-grief model more quickly.

•

DABDA Syndrome Definition

• The Kübler-Ross model, commonly known as DABDA or the 5 stages of grief, was first introduced by Elisabeth KüblerRoss in her book, On Death and Dying published in 1969. She formulated a model of how people cope with dying based on research and interviews with more than 500 dying patients. She proposed 5 stages of grief - Denial, Anger, Bargain, Depression and Acceptance. These stages are neither meant to be complete nor chronological (Kübler-Ross, 1969).

response

Kubler-Ross, Elizabeth (1969)

On Death and Dying

Kubler- Ross proposed that there was a general

cycle to all change

William Bridge’s Transition Model

6 Keys to Leading Positive Change, Rosabeth Moss Canter 1984

• Show up – if you don’t show up, nothing happens. Be there. Trust that your presence mattersand can make a difference.

• Speak up – Use your voice. Say what needs to be said. Ask the questions that need to be asked. Shape the agenda. Re-frame issues and give new perspectives.

• Look up – Have a higher vision, bring values to the team. Know what you stand for. Elevate people out of the weeds and to a bigger picture of why our work is important.

• Team up – Everything goes better with partners. Don’t try to do it alone. Build a sense of partnership.

• Never give up – Persist until done. Everything looks like a failure in the middle. It will take longer than you imagine, keep going anyway. Be flexible in your approach, but inflexible in your persistence.

• Lift others up – Share success, share credit and give back once you have a success.

Susan Scott Fierce Conversations 2003

Goleman Emotional Intelligence 1995

Nudge Theory -

Cass R. Sunstien and Richard H. Thaler

The Hersey-Blanchard model suggests that the following leadership styles are the most appropriate for these maturity levels: Low Maturity (M1)— Telling (S1) Medium Maturity (M2)—Selling (S2) Medium Maturity (M3)—Participating (S3)

•

Ralph Kilmanns 5 Track Model

Track Description

Culture Track

The culture track consists of a fivestep process:(1) surfacing actual norms, (2) articulating whatis needed for success to day, (3) establishing newnorms, (4) identifying culture-gaps, and (5) closing culture-gaps. Theculture track firstexposes the old cultureand then, if necessary, creates a new adaptiveculture.

Skills Track

The skills track is needed becauseemployees usually havenotkept up with the holographic world in which they liveand its d ynamic, complex problems. They often have not developed the skills conceptual, analytical, administrative, social, and interpersonal to managecomplexity. The skills track also offers a systematic method for uncovering the underlying assumptions thatdriveall decisions into action.

Team Track

As the cultureand skills tracks areencouraging new behaviors, skills, and assumptions, the next effort lies in directly tra nsferring theselearnings into the mainstreamof organizational life. Specifically, the team track does three things: (1) keeps dysfunctional behavior in check so negativity will notdisruptcooperativeteam efforts, (2) brings the new learnings into the day-to-day activities of each work group, and (3) enables cooperativedecisions to take placeacross work group boundaries, as in multipleteam efforts.

Strategy-Structure Track

The strategy-structure track is conducted in an eight step process:(1) making strategic choices, (2) listing objectives to be achieved and tasks to be performed, (3) analyzing objective/task relationships, (4) calculating inefficiencies thatstem from an out-of-date structure, (5) diagnosing structural problems, (6) designing a new structure, (7) implementing the new structure, and (8) evaluating the new structure.

Reward Track

Once the organization is moving in the right direction with the right structure and resources, the reward system track completes the programby making surethat rewards vary directly with performance. The formal system is designed via a seven step process:(1) designing special task forces to study the problem, (2) reviewing the types of reward systems, (3) establishing several alternativereward systems, (4) debating the assumptions behind the alternativereward systems, (5) designing the new reward system, (6) implementing the new reward system, and (7) evaluating the new reward system.

The five tracks to organizational success constitute a completely integrated program. Each track is implemented as a collaborative, participative effort among managers, consultants, and members.

The McKinsey 7-S Framework

• The McKinsey 7-S model is one that can be applied to almost any organizational or team effectiveness issue. If something within your organization or team isn't working, chances are there is inconsistency between some of the elements identified by this classic model. Once these inconsistencies are revealed, you can work to align the internal elements to make sure they are all contributing to the shared goals and values.

• The process of analysing where you are right now in terms of these elements is worthwhile in and of itself. But by taking this analysis to the next level and determining the ultimate state for each of the factors, you can really move your organization or team forward.

The McKinsey 7-S Framework

Ensuring That All Parts of Your OrganizationWork in Harmony

• How do you go about analysing how well your organization is positioned to achieve its intended objective?

• Some approaches look at internal factors, others look at external ones, some combine these perspectives, and others look for congruence between various aspects of the organization being studied

• While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey 7-S framework. Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

• The McKinsey 7-S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

• "Hard" elementsare easier to define or identify and management can directly influence them: these are strategystatements; organizationcharts and reporting lines; and formal processes and IT systems.

• "Soft" elements, onthe other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organizationis going to be successful.

• It can be used in a wide variety of situations such as improve the performance of a company, examine the likely effects of future changes within a company, align departments and processes during a merger or acquisition and determine how best to implement a proposed strategy.

• There is an interdependency of the elements and indicates how a change in one affects all the others.

The McKinsey 7-S Framework

The McKinsey 7-S Framework

• Strategy: the plan devised to maintain and build competitive advantage over the competition.

• Structure: the way the organization is structured and who reports to whom.

• Systems: the daily activities and procedures that staff members engage in to get the job done.

• Shared Values: called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.

• Style: the style of leadership adopted.

• Staff: the employees and their general capabilities.

• Skills: the actual skills and competencies of the employees working for the company.

The Congruence Model

was developed in the early 1980s by organizational theorists David A. Nadler and Michael L. Tushman.

It's a tool for identifying the root causes of performance issues. It can also be used as a starting point for identifying how you might fix them.

It's based on the principle that a team or organization can only succeed when the work, the people who do it, the organizational structure, and the culture all "fit" together – or, in other words, when they are "congruent"

Where there is incongruence, or a poor fit, between these four critical elements, problems will arise.

You can have the latest technology and processes, but decision making will be slow and problematic if the organizational culture is bureaucratic.

WORK

Work refers to the tasks carried out by employees.

It’s important that the result of these tasks are aimed at the company objectives. It should be apparent which skills or knowledge are required for tasks and company activities, and these should be present to a sufficient degree within the organisation.

PEOPLE

People are an important part of the organisation and the congruence within it, and form an important part of the NadlerTushman Congruence Model.

A company aimed at innovation is looking for pioneering, fast-thinking people.

A sales company is mostly focused on finding sales talent. It should be known of employees which skills and knowledge they possess, whether they have experience, and what education they have followed. It should also be known how they would like to be individually rewarded and compensated for their work. For motivated staff, it’s also important that they should be able to develop potential within themselves.

STRUCTURE

Although aligning the work from the first of the four elements is important, aligning the organisational structure is even more important. Structure is the third component of the Nadler-Tushman Congruence Model. It creates consistency between what an organisation wants and what it does. A company that responds to new market developments needs a flexible corporate structure that is able to quickly adjust to the changing market. A company chain with outlets in various regions would benefit more from a hierarchical structure with regional managers.

CULTURE

The corporate culture consists of values and norms, behavioural patterns and rules, both written and unwritten. The corporate culture also has great influence on the way it supports and stimulates the corporate results. Sometimes, an organisation’s culture needs to change before the organisation is able to adjust to a new business focus. A relaxed, informal corporate culture may work well for a startup, but will need to become somewhat more mechanical upon growth. There are also organisations where the focus is on employees and their well-being. This happens in altruistic organisations

• The Congruence Model is also a useful tool for thinking through how changes you make within a team or organization will impact upon other areas.

How to use the model

To apply the Congruence Model, look at each component and then analyse how they relate to one another. 1. Analyse Each Element 2. Analyse the Relationships Between the Elements 3. Build and Sustain Congruence

Limitations of the Congruence Model

It doesn’t tell you how to fix those problems.

It doesn't recommend a "best" culture or "best" structure, nor any specific action plans or problem-solving techniques. You'll need individual tools to help you here. Task Allocation, for example, can help you to pair the right people with the right work. And Organization Design is an effective approach for aligning work and structure.

Emphasises the importance of achieving "fit" between the elements, and of organizing them in a way that supports your strategy.

Focuses mostly on the internal environment – it's often important to consider what's happening outside the team or organization. (Tools such as PEST Analysis and PMESII-PT can be useful here.)

Galbraith Star Model

• Jay Galbraithdevelopedhis "Star Model™" framework for analysingorganizations in the 1960s. The Star Model™ is the foundationon which a company bases its design choices. The framework consists of a series of design policies that are controllable by management and can influence employee behaviour. The policies are the tools with which management must become skilled in order to shape the decisions and behaviours of their organizations effectively.

• In the Star Model™, design policies fall into five categories. The first is strategy, which determines direction. The second is structure, which determines the location of decision-makingpower. Processes have to do with the flow of information;they are the means of respondingto informationtechnologies. Rewards provide motivation and incentivesfor desired behaviour. And finally, the selection and development of the right people— in alignment with the other policies — allow the organizationto operate at maximum efficiency.

• The Star Model™ shows the levers that managers can control, and as a result, can affect employee behaviour. By choosingthe desired behaviour, managers can influence the organization's performance as well as its culture.

Galbraith Star Model

•

Strategy

• An organization'sstrategyis defined by its vision, mission, and values as well as its goals and objectives. Strategysets out the direction of the organization. It comes first in the Star Model because it establishes useful criteria for making trade-offs and choosing among alternative options in the remaining four elements or organizationaldesign.

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•

Structure

• An organization'sstructuredetermines the type and number of job specialties needed as well as decides the number of departments and people in each department. It dictates the placement and movement of power and authority, and is the basis for forming departments. Organizationalstructures can be highly centralized or decentralized.

• Strategydrives the business model. If you want to grow by 20% in new market segments then it should be reflected in your business model in terms of new Customer Segments, Channels, or Key Activities.

• The characteristicsof the business model determine the optimal organizationalstructurefor its execution. Ask yourself, "What type of human capital will the model require? What activities will those people need to perform? How should the structurebe formed to accommodate those needs?"

Galbraith Star Model

• Process

• Organizational processes are defined by the flow of information and decisions. Those flows can happen vertically or horizontally.

Vertical processes deal with allocating funds and talent via budgeting and planning.

Horizontal processes are designed around workflow and are carried out through lateral relationships between departments.

• People

• An organization's human resource policies govern recruitment, promotion, rotation, training and development. Those policies are designed to produce the talent and build the capabilities necessary to execute the strategic direction of the organization. They must be in harmony with the other design areas.

Galbraith Star Model

Reward

• Reward systems align the goals of employees with the goals of the organization. The system must use appropriate incentives to motivate workers to do the right things to fulfil the strategic direction of the organization. The reward system must be congruent with the other design areas to influence strategic direction.

• Different business models require different reward systems. If your business model depends heavily on customer satisfaction then your reward system should reflect that commitment. If your model requires a direct sales force to acquire new customers then your reward system should be highly performance oriented.

Change Management Approach

• Focuses on strategic, intentional and usually large-scale change

• Entails following a variety of steps; the exact steps vary depending upon the model used

• Belief that achieving organizational change is possible through a coordinated and planned approach

• Claims to be appropriate for all types of change

N-Step Models Theory

• Ten commandements (Kanter, Stein and Jick 1992)

• Ten Keys (Pendlebury, Grouard, and Meston 1998)

• 12 Action Steps (Nadler 1998)

• Transformation Trajectory (Taffinfer 1998)

• Nine-Phase Change Process Model (Anderson & Anderson 2001)

• Step-by-Step Change Model (Kirkpatrick 2001)

• 12 Step Framework (Mento, Jones and Dirndorfer 2002)

• RAND’s Six Steps (Light 2005)

• Integrated Model (Leppitt 2006)

N-Step Model Issues

Change Management vs. OD

• There is a debate between proponents of OD and proponents of change management:

• OD is criticized for giving attention only to human development, and not to technology, operations, and strategy

• Change management is criticized for

• having a focus on the concerns of management rather than on those of the organization as a whole

• being the product of management consultancy firms

Contingency Approaches to Change

Contingency approaches challenge the view that there is “one best way”

The style of change or the path of change will vary, depending upon the circumstances, including:

• the scale of the change

• the receptivity to change of organizational members • the style of change management

• the time period • the performance of the organization

Contingency Approaches to Change

• Huy’s Contingency Approach categorizes change into 4ideal types:

• The commandingintervention

• Short-term and rapid

• seniorexecutives

• Downsizing, outsourcing, divesting

• The engineeringintervention

• Medium-termand relatively fast

• Analysts

• Changingwork design and operational systems

• The teachingintervention

• Long-term and gradual

• Consultants

• Work practices and behaviours

• The socializingintervention

• Long-term and gradual

• Participativeexperientiallearning, self-monitoring

• Democraticorganizationalpractices

Contingency Approaches to Change

Contingency approaches remain less common than change management approaches. Suggested reasons include:

• Achieving “fit” may be difficult due to differing perceptions of the conditions in which the fit is sought

• Contingency approaches require greater analysis and decisions by managers; the prescriptiveness of change management models may be attractive to managers

• Contingency approaches focus on leadership style rather than a specific set of actions

• The use of different change styles at different times may raises questions in the minds of staff as to the credibility of senior management.

• There is a question about “what” is contingent to managing change

Processual Approach to Change

• It sees change as a continuous process rather than a series of linear events within a given period of time

• It sees the outcome of change as occurring through a complex interplay of different interest groups, goals, and politics.

• This approach alerts the change manager to the range of influences which they will confront and the way in which these will lead to only certain change outcomes being achieved

• This approach is often used to provide a detailed analysis and understanding of change retrospectively.

Choosing

( Kotter and Schlesinger - 1979)

Methods of dealing with resistance

Approach Commonly used in situations

Education & communication

Where there is a lack of information or inaccurate information and analysis

Participation & Involvement

Where the initiators do not have all the information they need to design the change, and where others have considerable power to resist.

Facilitation & support

Negotiation & agreement

Where people are resisting because of adjustment problems

Where someone or some group will clearly lose out in a change, and where that group has considerable power to resist

Advantages Disadvantages

Once persuaded , people will often help with the implementation of the change

People who participate will be committed to implementing change , and any relevant information they have will be integrated into the change plan

No other approach works as well with adjustment problems

Can be very time consuming , lots of people are involved

Can be very time consuming , participators may design an inappropriate change

Can be time consuming, expensive and still fail

Sometimes it is a relatively easy way to avoid major resistance

Can be expensive in cases if it alerts others to negotiate for compliance. Blackmail

Manipulation & co-optation

Explicit & implicit coercion

Where other tactics will not work , or are to expensive

Where speed is essential and the change initiators possess considerable power

It can be relatively quick and inexpensive solution to resistance problems

It is speedy, and can overcome any kind of resistance

Can lead to future problems , people feel manipulated

Can be risky, people feeling anger, resentment

Management Techniques , Tools and Theory with Definitions and References

AUTHORITY, AUTOCRACY, AUTONOMY

• "It is now widely accepted that leaders of an organisation shape its culture (Northouse, 2001)."

• Highly effective leaders develop styles that are clearly aligned with their team and organisational culture. Important differences between leadership styles are described, with case studies from across industries to highlight the benefits and drawbacks.

Authority, Autocracy, Autonomy Definition

• Kurt Lewin and his colleagues conducted research on different leadership styles, classifying them into three types: democratic, autocratic, and laissez-faire (Lewin et al., 1939). Autocratic and authoritative terms are used interchangeably while laissez-faire leadership is about giving employees greater autonomy (Robinson, 2010). The three styles - authority, autocracy and autonomy - can be placed on a continuum of leadership styles (Lewin et al, 1939).

ACTION LEARNING

• "Action learning particularly obliges subjects to become aware of their own value systems, by demanding that the real problems tackled carry some risk of personal failure (Reg Revans)"

• Action learning is a learning and problem-solving technique often used in organisations. The concept places an emphasis on the benefits of this strategy, reviews its main weaknesses, and demonstrateshow action learning is used in organisations.

•

Action Learning Definition

• Action learning is a systematic process through which individuals learn by doing. It is based on the premise that learning requires action and action requires learning. It engages individuals in just-in-time learning by "providing opportunities for them to develop knowledge and understanding at the appropriatetime based on immediate felt needs" (Lewis and Williams, 1994).

"Successful strategy execution has two basic rules: understand the management cycle that links strategy and operations,and know what tools to apply at each stage of the cycle (Kaplan and Norton, 2008)."

BALANCED SCORECARD

This concept offers a practical guide to using the Balanced Scorecard and is designed to assist executives to benefit from this strategic management technique.

Balanced Scorecard Definition

The Balanced Scorecard (BSC) is a strategic management techniquefor communicatingand evaluatingthe achievementof the mission and strategy of the organisation usingboth financial and non-financial measures (Drury, 2004).

BEHAVIOURIST PSYCHOLOGY

• "Understandingwhat is and isn’t a behavior is critical to beginning to create change in an organisation(Connellan, 1978)."

• The main assumption of behaviourism is that we are born a blank slate and all behaviour is learnt from the environment. This concept looks at the notion of motivation and reviews the impact of system-wide factors on the individual.

• Behaviourist Psychology Definition

• Behaviourist Psychology, or Behaviourism, is a branch of psychology based on the principles of John B. Watson. It espouses the belief that the study of human behaviour can be more scientificas "behaviours can be measured, trained and changed" (Watson, 1913). This school of thought puts forth the idea that learningleads to permanent behavioural change and that this change is largely determined by the environment. The term 'conditioning', therefore, is extensively used when applyingthese principles to real-life situations (Ormrod, 1999).

BENCHMARKING

• "There is now increasing emphasis on qualitative benchmarking, in addition to traditional, quantitative metrics (Broderick et al., 2010)."

• The concept will help organisations to measure current performance levels and identify opportunities for improvement. It explains how to identify strengths, weaknesses and success factors in benchmarking.

Benchmarking Definition

• Benchmarking is a continuous and systematic process for evaluating the products, services and work processes of organisations that are recognised as representing best practice for the purpose of organisational improvement (Spendolini, 1992).

BIG DATA ANALYTICS

• "New roles are quickly emerging for data scientists… whose job is it to “help decision makers shift from ad hoc analysis to an ongoing conversation with the data” (Davenport & Patil, 2012)."

• Big Data analytics is complex, in order to succeed organisations need to invest in the people behind the technology. Strengths and weaknesses are considered and practical case studies of implementation are shared to help organisations build up their Big Data capabilities.

Big Data Analytics Definition

• Big Data analytics refers to the use of powerful tools and techniques to leverage data insights, trends and patterns from huge – often unstructured and disparate – data sets and make them easily and quickly accessible to business leaders, managers and other key stakeholders. These insights are used to inform and develop business strategies and plans (Bertolucci, 2013a; Zakir et al., 2015).

BRAINSTORMING

• "Brainstorming is the process of free thinking and generating ideas without being bound by restraints such as "is this a good or bad idea?" (Slater and Cory, 2003)."

• Brainstorming is one of the best-known techniques available for creative problem-solving.

• This concept describes the technique and explores its benefits and weaknesses. It goes on to set out procedures for organising effective brainstorming sessions and offers some examples of brainstorming drawn from past experiences of renowned organisations.

•

Brainstorming Definition

• Brainstorming is a technique by which a group attempts to find a solution(s) to a specific problem by amassing ideas spontaneously (Osborn, 1953). It is a highly effective technique for maximising group creative potential, not only to generate ideas but also to determine which ideas are most likely to succeed in a specific area of interest (Baumgartner, 2007).

BUSINESS CONTINUITY MANAGEMENT

/ BUSINESS CONTINUITY

PLANNING

• "Business continuity plans must ... look beyond first-tier suppliers and further into the web of supply (Felsted, 2012)."

• The Business Continuity Management concept has been created to help business professionals to identify and mitigate risks which threaten to disrupt essential processes and services in their organisations.

• Business Continuity Management / Business Continuity Planning Definition

• Business Continuity Management (BCM), also known as Business Continuity Planning (BCP) or Business Continuity and Resiliency Planning (BCRP) is a tool employed to provide greater confirmation that the outputs of processes and services can be delivered in the face of risk.

• BCM helps to identify and managerisks which threaten to disrupt essential processes and services, to mitigatethe effects of these risks and to ensure that recovery of a process or service is achievable without significant disruption (Cerullo and Cerullo, 2004).

BUSINESS ETHICS

"When firms “act”, they are expected to meet a minimum set of standardsand obligations as morally defined and evaluated by these individuals and groups (Werhane and Freeman, 1999)."

Businesses face ethical issues and decisions almost every day. The concept explores what is means for companies and what they can do to coordinate the interests of their stakeholders.

Business Ethics Definition

Business ethics is “the degree of moral obligation that may be ascribed to corporationsbeyond simple obedience to the laws of the state” (Kilcullen and Kooistra, 1999). It concerns “business situations, activities, and decisions where the issue of right and wrong are addressed…[meaning] morally right or wrong as opposed to, for example, commercially, strategically, or financially right or wrong” (Crane and Matten, 2007).

BOUNDED RATIONALITY MODEL OF DECISION-MAKING

• "... decision making is the most important part of administration and the outcome of decisions depend on the process that is used in making decisions [...] bounded rationality is simply a process model that corresponds with the real world practical decision-making process (Kalantari, 2010)."

• The concept provides a review of the practical decision-making process and explores the model’s strengths, limitations and implications by comparing it to the rational behaviour model.

• Bounded Rationality Model of Decision-Making Definition

• There are two primary models or theories for decision-making: the Rational model and the Bounded rationality model. In the former, a decision-maker attempts to optimise the decision by selecting the best possible alternative. In the latter, rationality of individuals is limited by the information they have, cognitive limitations and time constraints (Kalantari, 2011).

Business Growth Models

• BostonMatrix A simple 2 x 2 matrix that categorises products or businesses as ‘Stars’ (high potential); ‘Cash Cows’ (mature profitable businesses); ‘Dogs’ (Small market share in mature market); and Question Marks (Uncertainty with regards to viability).

• Ansoff Matrix – Used to help understand the difference between new products with an existing market, such as brand extensions; new markets with an existing product, such as new geographies; and genuine diversification – a new product and new market.

• Greiner’s Five Stages – First developed in the early 1970s by Larry Greiner, and revised in the late 1990s, this model describes the phases of company growth and development, and identifies the managerial challenge at each stage. The five stages are: Creativity, Direction, Delegation, Coordination, Collaboration. Greiner later suggested a sixth stage, relating to extra-organisational relationships.

Business Growth Models

• Churchill’s Five Phases – First produced in 1983 by Neil Churchill of INSEAD. The five phases are: Existence, Survival, Success, Take-off, Resource-maturity.

• Adizes Model – A living organism metaphor, developed by Ichak Adizes. This describes the company as going through birth, adolescence, maturity, prime and so on.

• The DIAMOND model – developed by BDO Stoy Hayward, this stands for: Dreaming up the idea; Initiating the business plan; Attacking problems of growth; Maturing; Overhauling the business; Networking; and Diversifying.

• Three Horizons – Developed by McKinsey consultants. Horizon one is the business core; Horizon two is a newer line of business activity; Horizon three is experimentation.

BUSINESS CYCLE

• "Economies by their very nature are prone to cycles of boom and bust: markets swing from confidence to pessimism and consumers from greed to fear (Conway, 2009). "

• The concept defines and describes the business cycle and reviews different explanations, types and leading theories that explain business cycles.

• Business Cycle Definition

• Business Cycles are short-term economic fluctuations around a long-run growth trend that correspond to changes in economic conditions. These fluctuations are irregular and unpredictable (Mankiw, 2011).

• The difference between a business cycle and a trend is what is known as the output gap.

• Economic cycles, as they can also be termed, are a continuous set of expansions and recessions (real income and GDP decline while unemployment rises); Conway (2009) states that if an economy contracts for two consecutive quarters then it is technically in recession.

BUSINESS INNOVATION

• "Business innovation is the creation of new value and wealth for stakeholders to increase economic prospects (Lorente et al., 1999; Miller, 1995)."

• The concept explores innovation and how it can create and capture value for organisations. It will provide professionals with a basic understanding business innovation.

• Business Innovation Definition

• Business innovation is the creation of substantial new value for customers and the company by creatively changing one or more dimensions of the business system (Sawhney et al., 2006).

• In other words, business innovation is the creation and adoption of something new that generates business value. This includes new products, services, or processes, such as integrated supply chain solutions (Sawhney et al., 2006).

BUSINESS MODELLING

• "A business model helps managers to explore complex choices, using a set of assumptions to represent alternative future operative environments (Tennent and Friend, 2011) "

• This concept is intended as a 'hands-on' practical discussion of how business modelling is used to explore a range of business decisions and to identify the essential elements that drive business.

• Business Modelling Definition

• Business models are "primary tools for the financial analysis of nearly all major business decisions" (Tennent and Friend, 2011:7).

BUSINESS PROCESS IMPROVEMENT

"Your organisation's success hinges in large part on how well it carries out its business processes - activities that turn inputs such as knowledge and raw materials into products and services that create value for customers (HBR, 2010)."

Business process improvement (BPI) can enhance internal organisational efficiency and change the way organisations function. The concept provides an overview of BPI and describes the process and tasks used to support an organisational objective.

Business Process Improvement Definition

Business Process Improvement(BPI) is amethod of improvingthe way a discrete setof business activities is organised and managed (Hammer and Champy, 1994). Business processes referto the "logical organisation of people, materials, energy, equipment, and procedures into work activities designed to produce a specified end result" (Davenportand Short, 1990). BPI can be achieved by changingthe state of elements of abusiness process (Griesbergeretal., 2011).

BUSINESS PROCESS RE-ENGINEERING

• "The literature on re-engineering employs the term processes. Sometimes it is a synonym for activities. Sometimes it refers to activities or sets of activities that cut across organisational units (Porter, 1991)"

• The concept describes how to leverage best practices in business process reengineering while avoiding common pitfalls. It also reviews the latest technological and market perspectives.

Business Process Re-engineering Definition

• Business process re-engineering (BPR) is the "fundamental rethinking and radical redesign of business processes aimed at achieving radical improvements in essential contemporary measures of performance, such as cost, quality, service and speed" (Hammer and Champy, 1993).

CONTINUOUS IMPROVEMENT

• CONTINUOUS IMPROVEMENT

• "The things we fear most in organizations – fluctuations, disturbances, imbalances – are the primary source of creativity (Margaret J. Wheatley)"

• Continuous improvement strategy has been mostly applied in the field of quality improvement. The concept reviews initiatives that enhance operational performance and reports on research in the area highlighting key success factors, capabilities and business evidence.

Continuous Improvement Definition

• The term continuous improvement (CI) is derived from the Japanese management concept Kaizen. It is a process of constantly introducing small incremental changes in a business in order to improve quality and/or efficiency. Bhuiyan and Baghel (2005) define CI more generally as a culture of sustained improvement targeting the elimination of waste in all systemsand processes of an organisation. It involves collective working to make improvements without necessarily making huge capital investments (Bhuiyan and Baghel, 2005).

COGNITIVE BIAS

"It [cognitive bias] still doesn't get the attention from the mainstream media it deserves, and it isn't even touched on in most business school programs. I think it is worthy of a class by itself (May, 2006)."

Cognitive bias is a distortion in the way we perceive reality. This concept provides a comprehensive review of the cognitive bias that can affect individuals and organisations. You will also gain an understanding of the different kinds of biases and how to use techniques to level the playing field.

Cognitive Bias Definition

Cognitive bias refers to a mental error caused by simplified information processing strategies employed by our subconscious mind. Generally, human cognitive limitations allow people to use simplifying strategies to mentally process information. These strategies are generally useful as they help individuals deal with complexity and ambiguity. At the same time, they can lead to predictable faulty judgements known as cognitive biases (Tversky and Kahneman, 1974). Cognitive biases are studied by behavioural economists.

CORPORATE SOCIAL RESPONSIBILITY

• "The prevailing approaches to CSR are so disconnected from business as to obscure many of the greatest opportunities for companies to benefit society (Porter and Kramer, 2006)."

• This concept explores the different ways in which CSR is defined and provides an account of success factors and business evidence.

• Corporate Social Responsibility Definition

• Corporate social responsibility (CSR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (World Business Council for Sustainable Development, 1999).

CORPORATE/ORGANISATIONAL CULTURE

• "There is no one 'right' or 'best' culture for an organisation - only the appropriate culture for the business environment (Gareth Jones and Rob Goffee)."

• This concept explores how organisations build up their own culture through tradition, history and structure. It also suggests that culture provides organisations with a sense of identity.

• Corporate/Organisational Culture Definition

• Organisational culture is a pattern of basic assumptions invented, discovered or developed by a given group within an organisation as it learns to cope with its problems of external adaptation and internal integration. The pattern has worked well enough to be considered valid and therefore is to be taught to new members as the correct way to perceive, think and feel in relation to problems (Schein, 1988; 1996).

Johnson et al., 2011 Cultural Web

CONTINGENCY THEORY OF LEADERSHIP

"The model proposes that a leader's effectiveness can be attributed to two factors: (1) the leader's personal style (i.e. whether he/she is task or relationship oriented) and (2) the situations that control a leader (Ayman et al. 1995)."

• Learn why leaders behave differently across different situations and consider the importance of understanding a leader's personal style. A summary of the contingency theory's strengths and limitations is presented, as well as real case examples from across different sectors and industries.

Contingency Theory of Leadership Definition

• Frederick Fielder argued in the 1960s that "effective leadership style depended on situational contingencies, such as the nature of the task specifically and how certain or uncertain it was".

Leadership depends on the following four contingent factors: 1) the leader's power and influence and his or her chosen goals, 2) followers' expectations, 3) the complexity of the organisation, and 4) the certainty or uncertainty of the task (Lorsch, 2010).

•

"In the final analysis, you get what you pay for (James Sinegal, CEO Costco)."

COSTBENEFIT ANALYSIS

The concept will enable business owners, project leaders and practitionersto grasp the basics of cost-benefit analysis and understandthe systematic process for calculatingand comparingbenefits and costs of a project.

Cost-Benefit Analysis Definition

Cost-Benefit analysis is an approach to activity appraisal that involves the estimation of the overall cost and benefits in monetary value terms. The activity could be an impendingproject or proposed policy. The approach is used to determine whether a particular activity is viable or to evaluate the effects of alternativedecisions (Barnett, 1985).

CORE COMPETENCIES

"Companies need to understand fully their core competencies and capabilities in order to successfully exploit their resources (Javidan, 1998)"

Core competence is among the best-known strategic management concepts. A core competence it is believed to constitute and sustain the firm’s competitive advantage. The importance of core competencies for organisations is explored, in addition to technical capacities as one of the elements that allow organisations to be competitive in the market.

Core Competencies Definition

"Core competencies are capabilities the firm emphasises and performs especially well while pursuing its vision."

Core competencies can lead to competitive advantage when companies create value for customers exceeding the value created by their competitors (Ireland et al., 2010:82).

Core Competencies is a concept devised by CK Prahalad and Gary Hamel from the University of Michigan. It's one of the most-used consultingconcepts, but is also the most confusinggiven its non-quantitative approach and complexity of the definitions it uses.

Core Competencies

The theory's key idea is that each business has a "core competency", a factor that's central to the way in which it or its employees work. It should fulfil three key criteria:not easy for competitors to imitate, can be reused widely for many products and markets, and contributes to the value of the product or service for customers.

A core competency can take various forms - for example, technical know-how, good market coverage, relationships with customers, or cultural factors, such as employee loyalty or good human resource management.

A core competency provides a business with a competitive advantage - and, says the theory, every business should develop and guard theirs. For example, Apple's core competency is its intuitive user interface design, which has been successfully implemented in a wide variety of products and markets. McDonald's core competency is the ability to uniformly replicate its hamburgers aroundthe world.

COMMUNICATION THEORIES

• "“Human communication has been conceptualised, theorised and studied mainly as a process of communication and interaction among and between two or more human beings—that is person to person with language and technology as the medium". (Mowlana 2018)“

Communication Theories Definition

• Communication theories refer to three things; a sender, a message and a receiver. It can take the form of one human being and the perceived environment through messages in the form of signs, symbols and thought (Mowlana, 2018).

• Alternatively, it can be defined as producing one point either exactly or approximately a message selected at another point (Shannon and Weaver, 1949). Models of communication aim to illustrate these theories with conceptual representations to explain the process of human communication. They can be implemented to demonstrate and improve working practice.

CROSSTRAINING

• "Worker multifunctionality has been recognised as a tool for enhancing system flexibility and performance ... (Nembhard and Prichanont, 2007)"

• Cross-training is a powerful tool to enhance organisational and employee goals. This concept explains the effective use of cross-training and explored how it can benefit an organisation.

• Cross-Training Definition

• Cross-Training, also referred to as 'Worker multifunctionality', is the process of developing a multi-skilled labour force by providing employees with training and development opportunities to ensure they have the skills necessary to perform various job functions within their organisation.

• It involves training and teaching employees to perform two or more roles, skills or tasks which may or may not be related to their current work. The name comes from the fact that a firm is training employees across a broader range of its work (Haas et al., 2001).

CRITICAL PATH ANALYSIS

• "The CPA technique was ostensibly implicated in the success of the Manhattan Projectthe US government’s three-year project to develop the atomic bomb during World War II (Schwalbe, 2010; Thayer, 1996)."

• The concept will help decision-makers to better understand the critical path method. It provides a brief description of the technique and discusses its benefits and implementation steps.

• Critical Path Analysis Definition

• Critical path analysis (also known as critical path method) is a network-diagramming technique used to predict total project duration and aids in combating project schedule overruns (Schwalbe, 2010).

DELPHI FORECASTING METHOD

• "Two heads are better than one, or...'n' heads are better than one (Dalkey, 1972)"

• The concept reviews the Delphi forecasting technique and discusses why it is used in a particular setting and how it is implemented.

• Delphi Forecasting Method Definition

• The Delphi technique is a method for structuring a group communication process in the way that the process is effective in allowing a group of individuals to deal with a complex problem (Linstone and Turoff, 2002; Linstone and Turoff, 1975).

• This method is mostly used for problem solving, planning and decision-analysis (Rowe and Wright, 1999).

DECISION SUPPORT SYSTEMS

• "In pursuing the goal of improving decision making, many different types of computerised DSS have been built to help decision teams and individual decision makers (Arnott and Pervan, 2008)."

• The concept explains the usefulness of decision support systems for organisational problem solving. It describes the types of decision support systems available, their advantages and limitations, as well as real case studies of firms using DSS across different industries and sectors.

• Decision Support Systems Definition

• Decision Support Systems (DSS) are interactive computer-based systemsthat enable people to use IT communications, data, documents, knowledge and models to solve problems and make decisions. DSS are intended to improve and speed-up the processes by which people make and communicate decisions. However, they are designed to be auxiliary systems instead of replacing skilled decision makers (Power, 2002).

DECISION TREES

• "Decision trees can assist executives in making strategic decisions (Buckley and Dudley, 1999). "

• The concept describes one of the most used decision-making models, a decision tree, which explores all possible decisions and their consequences and allows for comparison of such alternatives in one single pane.

• Decision Trees Definition

• A decision tree is an analytical tool for partitioning a dataset based on the relationships between a group of independent variables and a dependent variable (Coles and Rowley, 1995). It is a pictorial representation of the flow of events in a logical and time-sequenced manner so that the decision-maker can consider the probabilities of each outcome (Marsh, 1993). In other words, it is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, such as chance event outcomes, resource costs, and utility.

Comparison of Decision Making Models

DEMAND MANAGEMENT

"Demand management is a complex and multidimensional task. It ... requires much more than simply making consumer sales data available to the whole chain (Taylor and Fearne, 2006)"

This concept defines and covers the fundamentals of demand management, including the implementation process, strengths, drawbacks and success factors. It also explores the best practice companies are applying today through the revision of some useful case studies.

Demand Management Definition

Demand management is a process within an organisation which "enables that organisation to tailor its capacity ... to meet variations in demand or ... to manage the level of demand using marketing or supply chain management strategies" (CIPS: Demand planning:2).

DEMING WHEEL

"“The Deming circle is a quality control program. It is a plan for management. Four steps: Design it, make it, sell it, [and] then test it in service. Repeat the four steps, over and over …” (W. Edwards Deming quoted by The United States General Accounting Office, 1981)."

This concept describes a Plan-Do-Check-Act wheel management model suggested by Deming. The model is used by companies to provide a systematic approach to achieving continuous improvement.

Deming Wheel Definition

The Deming Wheel is an iterative model developed by W. Edwards Deming composed of four functional elements: plan, do, study, and act. It is a looping model based on the principles of continuous process improvement (Fong et al., 1998).

The Deming Cycle

The Deming or PDCA Cycle (also known as PDSA Cycle), is a continuous quality improvement model consisting out of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Study (Check) and Act. The PDSA cycle (or PDCA) is also known as the Deming Cycle, the Deming wheel of continuous improvement spiral.

DOUBLELOOP LEARNING

• "By uncovering their own hidden theories of action, managers can detect and correct errors (Argyris, 1977)."

• Double-loop learning (DLL) is an educational concept that involves teaching people to think more deeply about their own assumptions and beliefs. You will gain an understanding of the different but related concepts and learn the difference between DDL and "learning from your mistakes”.

Double-Loop Learning Definition

• Double-loop learning (DLL), also known as Generative learning, is a type of transformational learning. DLL involves creativity and innovation and is about adapting, being ahead of, and anticipating change (Malone, 2003).

EMPLOYEE ENGAGEMENT

• "Employee engagement is the number one indicatorof a company's health (with customer satisfactionand free cash flow listed second and third) (Jack Welch, business consultant and former General Electric CEO, Suzy Welch)."

• The concept explores the significance of employee engagement and the factorsthat influence the extent to which employees are committed to organisationalgoals, mission and vision. It also provides an insight as to how organisationalemployee engagement can increase productivity and decrease staffturnover.

• Employee Engagement Definition

• Employee engagement (EE) is a barometer that illustratesthe relationship between the employee and the organisation(Sarkar, 2011). EE embraces all the factorsthat influence the extent to which employees are committed to organisationalgoals, mission and vision (Sharma and Anupama, 2010).

• The concept has significant implications for all areas of HR practice, organisationalperformance and is a dominant source of competitive advantage(Wollard and Shuck, 2011).

Employee engagement and employee motivation

• Employee engagement and employee motivation are one of the factors that differentiate between ordinary and the extraordinary. Employee motivation is the level of energy and enthusiasm an employee brings to his/her workplace. The motivation factors can be intrinsic or extrinsic and vary from one person to the other.

EMPOWERING EMPLOYEES

• "Empowerment means freeing employees from instructions and controls and allowing them to make decisions themselves (Thompson and Martin, 2005)."

• More than 70% of organisations today practice some form of empowerment initiative. The concept explains how companies introduce empowerment practices and the reasons they are pursuing when doing so.

• Empowering Employees Definition

• Empowerment is based on organisational policies, practices and a culture that encourages and motivates employees at all levels to take responsibility and authority over their work (Appelbaum and Honeggar, 1998).

EMPLOYEE-CENTRED LEADERSHIP STYLE

• "The employee-centred leader, on the other hand, believes in delegating decision-making and in helping followers satisfy their needs by providing a supportive work environment (Likert, 1967)."

• The concept describes a key leadership style that underpins contemporary thinking on participatory and consultative management. Using research evidence and case studies, it explains the advantages and disadvantages of employee-centred leadership styles, and provides step-bystep guidance on implementation and success factors.

• Employee-centred Leadership Style Definition

• An employee-centred leadership style emphasises interpersonal relationships and is sometimes associated with a participatory approach in which leaders seek to involve other people in the process such as subordinates, peers, superiors and other stakeholders (Saiyadain, 2003).

Employee-centred leaders focus on their employees more than the broad technical aspects of the job. Employee-centred leadership has been shown to increase employee satisfaction ratings in terms of satisfaction with supervision and satisfaction with the work itself (Richmond et al., 1983).

EMOTIONAL INTELLIGENCE

• "It is very important to understand that emotional intelligence is not the opposite of intelligence, it is not the triumph of heart over head - it is the unique intersection of both. (David Caruso)."

• High levels of emotional intelligence benefit individuals in any occupational field. The concept describes three types of model that help us to understand the notion of Emotional intelligence and reviews a wide range of benefits, weaknesses and key success factors.

Emotional Intelligence Definition

• Emotional intelligence is seen as a form of social intelligence that involves the ability to monitor one’s own and others’ feelings and emotions, to discriminate among them, and to use this information to guide one’s thinking and action (Salovey & Mayer, 1990). For instance, the ability to recognise accurately what another person is feeling enables one to develop a specific competency such as Influence.

EXPECTANCY THEORY

• "“You have to get rewarded in the soul and the wallet. The money isn’t enough, but a plaque isn’t enough either…you have to give both” [Jack Welch] (Hymowitz & Murray, 1999: p. B1)."

• Expectancy theory is one of the most influential theories of motivation in business psychology. The concept explains the strengths and weaknesses of the theory in a business context and the steps required to implement the theory for better workforce performance.

• Expectancy Theory Definition

• Expectancy theory describes the extent to which an individual is likely to pursue a certain course of action (motivational force), which is in turn a function of expectancy (a belief that increased effort will produce better performance), x instrumentality (a belief that better performance will lead to certain outcomes), x valence (a belief that the outcome will be desirable) (van Eerde & Thierry, 1996).

FIELD THEORY

• "Lewin (1947) believed that in order to make sense of the world, we should see our present situation – the status quo – as being maintainedby certain conditions or forces."

• Field theory is an important idea in individualand organisational change management. Its relevance as a theory of leadership and change is highlighted, numerous strengths and weaknesses are described, and it is shown how it can be used to address problems faced by organisations today.

• Field Theory Definition

• "An approach to understandinggroup behaviour by tryingto map out the totality and complexity of the field in which the behaviour takes place. It is one of the four elements of Lewin's Planned approach to change" (Burnes, 2009).

GLOBAL STRATEGY

• "Against economic adversity, some of the world’s leading companies, across a variety of industries, are trying to prosper in global markets (Corstjens & Lal, 2012)."

• The concept explains how the world's leading companies are built on global strategies. It describes the components of global strategy and provides examples of cases of companies that have developed successful global strategies and sustained competitive advantages in developed and emerging markets.

• Global Strategy Definition

• Global strategy covers three macro areas of strategy: global, multinational and international strategies. These areas typically refer to those strategies designed to enable an organisation to achieve its objectives of foreign market penetration and international expansion (Lynch, 2006).

GROUP DYNAMICS

• "The greater the loyalty of a group toward the group, the greater is the motivation among the members to achieve the goals of the group, and the greater the probability that the group will achieve its goal (Rensis Likert)."

• Group dynamics can be used as a means for problem-solving, team work, and to become more innovative and productive as an organisation as whole. The concept will provide you with the strengths, success factors and measures of group dynamics, along with other professional tools.

• Group Dynamics Definition

• Group dynamics is a set of behavioural and psychological processes that occur within a social group or between groups. It refers to the "nature of groups, the laws of their development, and their interrelations with individuals, other groups, and larger institutions" (Cartwright and Zander, 1968).

HIERARCHY OF NEEDS

• "A musician must make music, an artist must paint, a poet must write poetry, if he is to be ultimately at peace with himself (Abraham Maslow)."

• The main aim of the concept is to help managers and decision-makers understand the hierarchy of needs to aid their employee engagement and marketing strategies. The concept explains the five hierarchical levels of the Maslow's Hierarchy of Needs, stressing the core benefits, implementation steps, and measures.

• Hierarchy of Needs Definition

• The Hierarchy of Needs is a theory of personality and motivation which proposes that humans are motivated to fulfil basic immediate needs before satisfying higher-order ones (Buchanan and Huczynski, 2004).

HUMAN RESOURCE BASED THEORIES OF STRATEGY

"Seeking to maximize performance through a single, static strategic plan is a fallacy (Lynch, 2006)."

The concept explores the discussion begun by Resourcebased theorists who argue that human assets can be a source of sustainable advantage. It further discusses the benefits and limitations of these theories.

Human Resource Based Theories of Strategy Definition

Human resource based theories of strategy emphasise the people element in strategy development and highlight the motivation, politics and cultures of organisations and the desires of individuals (Lynch, 2006).

HUMAN RESOURCES INFORMATION SYSTEMS

"HRIS can be used in organisational design as a tool for facilitating HR strategic alignment (Kleynhans, 2006)."

The concept describes human resource information systems (HRIS) as a computerised system that enables HR managers to gather, organise, store, update and retrieve the information needed for managing employees. It explains the various strengths and drawbacks of HRIS and provides the steps needed to implement it and the factors required for success.

Human Resources Information Systems Definition

A Human Resources Information System (HRIS) is a computerised system that enables human resource managers to gather, organise, store, update and retrieve the information needed for managing employees (Kleynhans, 2006). As with other technologies, the aim of HRIS is to increase the productivity of employees, in this case, to increase HR department efficiency. HRIS is a technology that has evolved over the last thirty years, moving from a simple data management system, to a management information system, to a real decision support system (Waddill & Marquardt, 2011).

HUMAN RESOURCE AUDIT

• "Used effectively, the auditing of the human resources function can lend credibility and develop faith in the HR department (Secord, 2003)."

• The concept highlights the strengths and weaknesses of HR audit practice, describes the steps essential for its implementation, and explores the factors that contribute to the audit's success.

Human Resource Audit Definition

• A human resource audit is a series of systematic, formal procedures designed to evaluate and improve the efficiency and effectiveness of a company's human resource management system, by comparing the latter with relevant internal and external benchmarks, and evaluating its appropriateness for implementing the firm’s strategic and operational objectives (Huselid, 2005).

• "Halo effect is seen as one of the oldest and most widely known psychological phenomena (cf. Thorndike, 1920s)."

• Organisationssuccumb to the halo effect in a variety of situations. A solid introductionto the topic is provided alongside strengths, weaknesses, measures and success factorsand throughthe use of case study evidence demonstrateshow the halo effect can be applied to different industries and contexts.

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THE HALO EFFECT

The Halo Effect Definition

• The halo effect is a psychologicalphenomenon that surfaces when subjects are asked to rate multiple traits. The problem "arises in datacollection when there is carry-over from one judgment to another" (Thorndike, 1920).

• It is a form of cognitive bias where the opinion of one trait of an object (e.g. a personality trait) skews opinions about the other traits of the same object. For example, a positive experience like driving a car might lead buyers to believe that the brand's other models are equally as good (Arnold et al., 2005).

INNOVATION MANAGEMENT

• "Innovation management is the successful introduction of something new: it is the embodiment and synthesis of knowledge in original, relevant, valued new products, processes, or services (Luecke and Katz, 2003)."

• The concept determines the critical factors of innovation management. It reviews the managerial practices of successful innovators and summarises the strengths and limitations of innovative approaches.

• Innovation Management Definition

• Innovation management is the active organisation, control and execution of processes, activities, and policies that lead to the "creation of substantial new value for customers and the firm by creatively changing one or more dimensions of the business system" (Sawhney et al., 2006).

INFORMATION MANAGEMENT

"To achieve effective information management, organisations will need to pay greater attention to managing soft knowledge, such as tacit knowledge, judgement, and intuitive abilities (Anand et al., 1998)."

The concept is created to help practitioners better understand the notion of information management, its history, practical use, implementation strategy and limitations.

Information Management Definition

Information management (IM) is the process by which relevant information is provided to decisionmakers in a timely manner (Davis, 1997). Information management has largely been defined from an information systems perspective and equated with the management of information technology.

IM is a generic term that encompasses all the systems and processes within organisations for the creation and use of corporate information. IM aims to get the right information to the right person at the right place and at the right time (Robertson, 2005).

JOB ENRICHMENT

• "Job enrichment doesn't work for everyone. Some people are very resistant to more responsibility or to opportunities for personal growth. Yet researchers report that some people they expected to resist, seized the opportunity (Brown, 2004)."

• Job enrichment offers employees an opportunity to do tasks that are different than what was originally outlined in their job descriptions. The concept reviews the advantages and disadvantages of this approach, the success factors, and how it has been used in organisations across various sectors.

• Job Enrichment Definition

• Conceptualised and developed in the 1950s by an American psychologist, Frederick Herzberg, job enrichment refers to redesigning a job to allow for more autonomy and reduce the effects of monotony. Some of the effects that it attempts to reverse are boredom, lack of flexibility and employee dissatisfaction (Leach et al., 2003).

KAIZEN

• "Kaizen is a management strategy that focuses on constant, process-oriented improvement (Imai, 1986)."

• Kaizen is a Japanese word typically translated as 'continuous improvement'. The term refers to the strategy of making small improvements on a continuous basis. The concept will help managers and practitioners to better understand how to benefit from applying Kaizen in their organisations.

Kaizen Definition

• Kaizen, as a philosophy, is defined as the spirit of improvement based on the spirit of cooperation and commitment; equally relevant in personal, home, social and working life (Brunet, 2000). The specific application of Kaizen to the workplace means continuing (and relatively inexpensive) improvement involving everyone: top management, managers and workers alike (Imai, 1986).

Kaizen

Continuous Improvement Model

KNOWLEDGE CAPITAL

"In the modern world, knowledge capital, more than physical capital, drives the UK economy. Against the backdrop of the increasing importance of ideas, IP rights which protect their value are more vital than ever (Andrew Gowers' report on the UK intellectual property, December 2006)."

The concept reviews the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to knowledge transfer and intellectual capital. It also presents a compilation of possible and potential benefits and offers selective resources for further exploration.

Knowledge Capital Definition

Knowledge capital (sometimes referred to as intellectual capital) is an intangible asset of organisations. It can exist in two forms: (1) within the minds of those who know something useful that can increase organisational productivity thus taking a form of collective knowledge; (2) as a content, where content is a formal expression of knowledge capital turned into content knowledge capital is more useful for organisations (McGovern and Norton, 2001). The term is also used to bridge the gap between intellectual capital and knowledge management disciplines (Chatzkel, 2003).

KNOWLEDGE MANAGEMENT

"Organisational knowledge is much talked about but little understood (Tsoukas and Vladimirou, 2001)."

This concept provides a review and interpretation of previous work on knowledge management and offers a comprehensive account of benefits achieved by properly managing knowledge, implementation information and success factors.

Knowledge Management Definition

Knowledge management (KM) encompasses any systematic attempt to acquire, produce, codify or share knowledge in order to positively enhance organisational learning, performance and competitiveness (Foray and Gault, 2003; Tsoukas and Vladimirou, 2001).

LEARNING ORGANISATION

"An organisation’s survival depends on its ability to learn at the same pace as or faster than changes in its environment (Burnes, 2009)."

The learning organisation is an organisation characterised by a deep commitment to learning and education with the intention of continuous improvement. This concept reviews several theories relating to the learning organisation, including some criticism. Also, it examines some evidence on how learning organisations operate. Learning Organisation Definition

Learning organisations facilitate collective learning in order to continually improve the capacity to respond to changing demands in the environment. This permeates all organisational activities, structures, processes, climate and values, leading to an enhanced ability to react quickly to opportunities and threats (Probst and Buchel, 1997; Wang and Ahmed, 2003).

LEADERSHIP

• "Good leadership depends on the leader having learned and mastered their craft (Pinnow, 2011)."

• Good leaders are continually working on, and studying to improve, their leadership skills. This technique explores what makes a good leader and covers the characteristics of good organisational leadership.

• Leadership Definition

• Leadership is characteristic of individuals demonstrating long-term and future-oriented perspectives, and who provide a vision for their followers that looks beyond their immediate surroundings (Navahandi, 2000).

Levels of organisational maturity

(Carnegie Mellon Maturity Index ‘CMMI’, 1990).

MONTE CARLO SIMULATION

• "Monte Carlo simulation requires inputting random data into a model to measure the impact of uncertainty on the outcome of a project (Hindle, 2008)."

• Monte Carlo methods are often used to calculate the value of companies, to evaluate investments in projects at a business unit or corporate level, or to evaluate financial derivatives. The concept reviews the basics of the model and explores how and why it is used in organisations.

• Monte Carlo Simulation Definition

• Monte Carlo simulation is essentially “a random number generator useful for forecasting, estimation, and risk analysis.

A simulation calculates numerous scenarios of a model by repeatedly picking values from the probability distribution for the uncertain variables and using those values for the event –events such as totals, net profit, or gross expenses” (Mun, 2006:2).

MENTORING

• "Mentoring is a complex relationship and factors including interpersonal skills, level of commitment to the mentoring relationship and organisational influences can all impact on the effectiveness of the mentoring relationship (Woolnough and Davidson, 2007)."

• The concept explains the value of introducing formal mentoring schemes within organisations. It also explains the typical characteristics of a formally-structured mentoring programme, together with the most common implementation steps and objectives which are normally agreed by the mentor and their protégé.

Mentoring Definition

• Mentoring is the professional, one-to-one relationship between a less experienced individual (protégé) and a more experienced person (mentor) which typically aims to advance the personal and professional growth of the former (Wanberg et al., 2006; Woolnough and Davidson, 2007).

MANAGING OPEN INNOVATION

• "Open Innovation allows firms to discover areas of the product landscape that the firm may have never found itself (Almirall and Casadesus-Masanell, 2010)."

• This concept summarises the benefits of open innovation, presents the challenges and limitations of adopting open innovation technologies and captures best practice and experiences from real-life industrial open innovation projects.

• Managing Open Innovation Definition

• Open Innovation is a term defined and made famous by Prof. Henry Chesbrough in his ground-breaking book “Open Innovation: The New Imperative for Creating and Profiting from Technology” (2003, Harvard Business School Press). Chesbrough defines Open Innovation as a paradigm that assumes that firms wishing to advance their technology can and should use external ideas as well as internal ideas, and internal and external paths to the market (Chesbrough, 2003).

MOTIVATOR-HYGIENE THEORY

• "[Motivator-Hygiene theory] identifies five strong determinants of motivation: determinants for job satisfaction and job dissatisfaction (R.K. Sapru)"

• Motivation-hygiene theory suggests that job satisfaction and job dissatisfaction are produced by different work factors. The goal of this concept is to describe practical applications of the theory and equip managers with the knowledge on how to use its elements to improve employee motivation and engagement.

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Motivator-Hygiene Theory Definition

• The Motivator-Hygiene theory (MHT), also known as the Two-Factor or the Satisfier-Dissatisfier theory, proposes two sets of needs - motivator and hygiene. The former refers to the nature of the work and the level of achievement and responsibility, while the latter refers to aspects of the work environment such as pay and supervision. Motivator needs produce job satisfaction and hygiene needs can create job dissatisfaction if the working conditions are inadequate. However, even if the working conditions are outstanding, hygiene needs cannot produce job satisfaction (De Leon, 1993).

NOMINAL GROUP TECHNIQUE

• "The nominal group technique is used to assist participantsin the process of pooling their knowledge and, particularly, their judgments to arrive at decisions that are acknowledged by participantsas being a genuine product of the group dialogue process (Delbecq et al., 1975).“

• This concept is designed to assist practitionersto define nominal group technique (NGT) and apply it in their organisation. You will learn the history behind the technique, how it is practiced in organisationstoday and the typical steps involved in the application of the classic NGT.

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Nominal Group Technique Definition

• Nominal Group Technique (NGT), as a procedure, was designed by Delbecq, Van de Ven, and Gustafson(1975). It is used as an organisationalplanning technique. NGT, according to Delbecq et al. (1975), has been "applied to group decision making (problem identification. problem solving processes) in two general types of situations: intraorganizationalgroupdecision making and soliciting expert or citizen views as input for public policy formulation".

ORGANISATION THEORY

"Modern organisation theory views the organisation as an open system, and reflects the fact that organisations operate in multiple environments and interact with numerous stakeholders (Daft, 1997)."

Organisational theory puts substantial emphasis on people in organisations and how they are treated. An overview of the theory’s and strengths and drawbacks, measurement and focus areas helps leaders apply the principles in practice.

Organisation Theory Definition

Organisation theory is the study of organisational design, relationships and structures. It focuses on such dimensions as level of organisation formalisation, specialisation, and standardisation, hierarchy of authority, complexity, size, goals and strategy. These dimensions provide a way of measuring and analysing organisations (Daft, 1997).

• "Effective people management involves providing an environment where employees can perform at their optimum level (Gross, 2009)."

ORGANISATION DEVELOPMENT

• OD interventions aim to find out the root cause of problems so that robust, sustainable solutions can be implemented. Application advice, typical success factorsand measures provide practicaladvice on how to succeed with OD projects.

• OrganisationDevelopment Definition

• OrganisationDevelopment (OD) is a process that is "planned, organisation-wide, and managed from the top". The goal of OD is to increase organisationaleffectiveness and health through planned interventions in the organisation'sprocesses and structures(Beckhard, 1969). In essence, OD is a "planned system of change. Organisationdevelopment is seen as a process that applies behavioural science knowledge and practicesto help organisationsachieve greater effectiveness" (Cummings & Worley, 2005).

OPERATIONS MANAGEMENT

"Key areas and functions of operationsmanagement include value chain analysis, supply chain management, inventory management, scheduling, quality controland business process analysis (Schermerhorn, 2011)."

Effective operations management is the cornerstoneof most successful businesses. The concept details the core objectives of operationsmanagement and provides case study evidence that reinforces why it pays to invest time and resources in managing operations to the highest standards.

Operations Management Definition

Operations management focuses on how organisations produce goods and services efficiently and effectively. It concerns the improvement of business operationsand the transformationprocessthrough which goods and services are created (Schermerhorn, 2011).

OPERATIONS STRATEGY MATRIX

"The operations strategymatrix exists a tool to assist organisationsin making better strategic operationsdecisions (Slack and Lewis, 2002)."

The operations strategymatrix is a tool used by strategyprofessionals to assess major factorsthat affect company operations. The concept will assist organisationsin making better strategic operational decisions and reducing risks. It draws special attentionto the success factorsand implementation step recommendations.

Operations StrategyMatrixDefinition

The operations strategymatrix is a tool to assist organisationsin making strategic operational decisions about capacity, the supply network, process technology, development and organisation. These decisions are dependent on five performance objectives: quality, speed, dependability, flexibility, and cost (Slack, 2005).

PARADIGM AND PARADIGM SHIFTING

• "True paradigm shifts represent drastic, sometimes uncomfortable change. It is not surprising, therefore, that these events can be met with resistance as organisational leaders step outside their comfort zones (Pink, 2005)."

• Paradigms are generally defined as a framework that has unwritten rules and that directs actions. A paradigm shift occurs when one paradigm loses its influence and another takes over. The concept defines paradigm and paradigm shift and explains how it can relate to company strategies and industry cycles.

• Paradigm and Paradigm Shifting Definition

• Although the term 'paradigm' has been around for a long time, wide acceptance and usage of the concept is mainly fuelled by Kuhn’s (1962) seminal work ‘The Structure of Scientific Revolutions’. Kuhn defined scientific paradigms as "accepted examples of actual scientific practice that include laws, theory, application and instrumentation that provide models from which particular coherent traditions of scientific research springs’’. Baker (1992) defined a paradigm as "a set of rules and regulations that establishes or defines boundaries and tells you how to behave inside those boundaries".

PAY-FOR-PERFORMANCE

• "People are more likely to underreport than to overreport the importance of pay as a motivational factor in most situations (Rynes et al., 2004)."

• The concept reviews pay-for-performance and offers a guide on how the approach can be applied as a strategy within your organisation.

• Pay-For-Performance Definition

• Pay-for-performance (or performance related pay; PRP) schemes are reward systems where some part (conceivably all) of an employee’s remuneration depends on an assessment of performance against predetermined criteria (Armstrong, 2002).

PESTEL ANALYSIS

• "PESTEL is an important tool used for market and environmental analysis and to support strategic decision making (Narayanan and Fahey, 2001)."

• As a company looks to leverage its capabilities and expand, it is imperative that it considers a PESTEL analysis to accompany the SWOT analysis. This concept explains the fundamentals of the techniques and explores its strengths and weaknesses.

PESTEL Analysis Definition

• The PESTEL framework is an analytical tool used to identify key drivers of change in the strategic environment. PESTEL analysis includes Political, Economic, Social, Technological, Legal, and Environmental factors, but other variants include PEST, PESTLIED (including International and Demographic factors), STEEPLE (including Ethical factors), and STEEPLED (including Education and Demographic factors) (Johnson et al., 2008).

PERSONAL DEVELOPMENT PLANS

"The influx of new techniques & new knowledge presents a challenge to keep up to date on these matters. In order to keep on delivering high quality performance, it is of vital importance to invest in the employees by enabling & encouraging them to continuously reflect, learn & develop (Beausaert, 2013)"

Personal Development Plans Definition

• A Personal Development Plan (PDP) is a form of portfolio assessment embedded within a larger development cycle. The PDP is also known as personal education planning (Evans et al., 2002), personal learning planning (Walker et al., 2003) and personal action planning (Challis, 2000). It is produced by identifying learning needs, often in collaboration with a tutor, appraiser or colleagues. Learning and professional development opportunities are selected to address the learning needs and later they are reflected upon by the learner and appraiser.

PERFORMANCE APPRAISAL

"Performance appraisal has become a staple element of HRM practice (Redman, 2005)"

• Performance Appraisal is a systematic evaluation of employee performance that can be used to understand their personal abilities for further growth and development. The concept reviews the objectives of performance appraisal, its advantages, and implementation steps.

Performance Appraisal Definition

• Performance appraisal describes a wide variety of activities through which organisations seek to assess employees and develop their competence, enhance performance and distribute rewards (Fletcher, 2001).

PROCUREMENT TRANSFORMATION

"A new era is changing the procurement function, creating broader and deeper roles where buyers also need to be value brokers, and capture, retain and manage talent (Supply Management, 2011).“

The concept discusses some underlying principles that can determine the success or failure of a procurement function during a period of change. It also offers some case studies and best practice from a variety of industries.

Procurement Transformation Definition

Procurement transformation refers to a specific type of organisational change management which focuses on strategies to enable major and long-term improvements to procurement and supply management processes, activities and relationships (Day and Atkinson, 2004).

POWER

"Power dynamics have many consequences, such as affecting decision-making processes and influencing employee behaviour (Jex and Britt, 2008)."

• The concept treats 'power' as a managerial advantagethat has many consequences - from affecting decision-making processes to influencing employee behaviour. It explores the characteristics of the power in the workplace and outlines five power bases.

Power Definition

• Power is "the capacity to control one’s own and others’ resources and outcomes" (Galinsky et al., 2007). It is seen as the opposite of being dependent; people who are powerful "depend less on the resources of those with low power than vice versa and, thus, are more easily able to satisfy their own needs and desires. Power has often been considered a foundational force that governs social relationships. Because power is so critical, it not only regulates social interactions but it also alters individual psychological states" (Galinsky et al., 2008).

PSYCHOLOGICAL CONTRACT

"Though it remains unwritten the psychological contract is a powerful determiner of behaviour in organisations (Schein, 1965)."

The concept examines theoretical and empirical issues related to the psychological contract and provides an overview of the types of psychological contracts - transactional and relational, as well as some information on how to implement it.

Psychological Contract Definition

The psychological contract refers to the mutual expectations people have of one another in a relationship and how these expectations change and impact behaviour. The psychological contract is often used to describe the expectations an employee has of the organisation (salary,pay rate, working hours, benefits, privileges), the expectations the organisation has of the employee (loyalty, confidentiality of sensitive information, or enhancing organisational image), or the expectations customers have of an organisation. The idea, however, can apply to any relationship (Schein, 1965; Wellin, 2007).

PRODUCTIVE EFFICIENCY

• "There are two main types of efficiency: 'allocative efficiency' -

concerned with whether resources are used to produce the goods and services that consumers want to buy - and 'productive efficiency' - which occurs when production takes place at the lowest cost (Anderton, 2000)."

• The concept describes how productive efficiency enables companies to produce goods and services at the lowest cost. Using case studies from across industries and countries, it explains the strengths and drawbacks of the concept and provides a series of useful steps and success factors to implement and measure productive efficiency.

Productive Efficiency Definition

• Productive efficiency is the condition that exists when production uses the least cost combination of inputs. In the long run, it is the minimum average cost. Productive efficiency is reached when a company produces at the minimum cost, a situation that is achieved under perfect competition (McEachern, 2011).

Problem Solving

• There are five components to the framework for structured problem solving.

• Understand the problem. This is the most important step in assessing the extent of the problem. By identifying the symptoms,root causes, impacts, and significance, you paint a picture on relevance and why the company should care. Without the understanding, it is difficult to assess how much effort the company should devote to solve the problem.

• Determine the solutionrequirements. The requirements establish the criteria for the solution. Subject to the availability of resources, the depth of a solution varies the level of automation and how eloquent it performs the task. The segregation of the must-haves and nice-to-haves provide choices when determining where to invest the capital.

• Articulate options. The options must satisfy the core requirements and address the most significant concerns. Keep an open mind in developing the options. Consult the customers, partners, and subject matter experts for an objective and impartial view on how things could be done better.

Problem Solving

• There are five components to the framework for structured problem solving.

• Evaluate options. In order to do a proper evaluation ofthe options, there needs to be a well-defined list of assessment criteria. This list comprises all the factors that would be considered in comparing the options. These factors includecapital investment, effort, return on investment, timeliness, and others that tie to the solution requirements. Often, weights are assigned to reach the relative importance.

• Select a solution. The final choice of a solution is made when the proper evaluation is complete. It is importantto note that both the quantitativeand the qualitativeanalysesneed to be considered. Regulatory requirements that must be met would take priority. The decision maker needs to consider all the pertinent information and select a solution best suited for the problem.

• A structured problem-solving approach places the focus on facts, issues, and solutions. This minimizes the tendency to play politics and coercion for support. It also promotes consistency when comparing alternativesin across the company.

QUALITY CIRCLES

• "The key to quality circles is the willingness of the employees to volunteer to become involved in the technique (Brahm and Kleiner, 1996: 33)."

• This concept introduces managers and business owners to a risk-free way to engage employees in the process of decision-making and shift organisations toward a more participative culture.

• Quality Circles Definition

• Quality circles are small groups of employees who meet frequently to help resolve company quality problems and provide recommendations to management (Kerzner, 2009: 878).

SCENARIO PLANNING

"Scenarios are thorough and probable views of how business environments might extend in to the future (Ringland, 2002)."

The concept describes what business scenarios are and how to build a step-by-step process when developing a strategic plan. You will also learn what factors are critical for the success of scenario planning and the advantages and disadvantages of this approach.

Scenario Planning Definition

Scenario planning is a technique of strategic planning that relies on tools and technologies for managing the uncertainties of the future. It involves developing differentplausible representations of an organisation’s future, based on assumptions about the forces driving the market and including different uncertainties (Kotler and Keller, 2011).

SIMULATION

• "A large number of scenarios and outcomes … are impossible to comprehend and evaluate without the help of a computer simulation model (Harrington and Tumay, 2000)."

• Simulation is normally used to assess the current, or predict the future, performance of a business process. The concept is designed to help practitioners and business owners discover new ways to improve their business processes through the use of mathematical, statistical and other analytical methods.

• Simulation Definition

• Simulation typically uses statistical and computer modelling to investigatethe performance of a business process either for a new situation or to improve an existing set of processes. By modelling different process scenarios and outcomes, companies can minimise the traditional risks associated with change management initiatives without having to make changes in a 'live' business environment where performance could adversely be affected (Harrington and Tumay, 2000).

SIX SIGMA

• "Six Sigma is considered a disciplined effort that closely examines a company’s repetitive processes for product design, production, suppliers, products and services, and the organisation as a whole (Defeo, 1999)."

• The Six Sigma concept is designed for professionals who are not familiar with it but need to have a basic understanding of what it means and how it can benefit their organisations. You will learn Six Sigma basics, advantages and limitations.

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Six Sigma Definition

• Six Sigma is a method of comparing organisation process performance with critical customer needs, ensuring that business outputs (its products and services) are consistently designed to exact customer requirements. The technique aims to produce products that are virtually defect-free (Antony and Banuelas, 2002; Simmons, 2002).

Six Sigma Model

STRATEGIC POSITIONING

"Strategy should reflect a distinctive value chain that configures all key business processes and operations (operations, HRM, marketing, service delivery, etc.) in a unique way that is difficult for competitors to imitate (Porter, 2001)."

This concept reviews the formal and rational processes that can help organisations achieve the strategic positioning of their products and brands. It also addresses the success factors and implementation recommendations.

Strategic Positioning Definition

Strategic positioning is concerned with the way in which a business as a whole distinguishes itself in a valuable way from its competitors and delivers value to specific customer segments (Wickham, 2001: 230).

STRATEGIC CONTINGENCY

• "Organisations can be described as a collection of departments or functions that align together to cope with uncertainty (Hickson et al., 1971)."

• Power and politics are understood as fundamental and important factors in managing strategic contingencies. Relevant practical case evidence and implication advice provided helps leaders to minimise the potential impact caused by a risk factor, threat or emergency.

• Strategic Contingency Definition

• A contingency is "a requirement of the activities of one subunit which is affected by the activities of another subunit. What makes such a contingency strategic is that the more contingencies are controlled by a subunit, the greater is its power within the organisation.

• For example, an engineering subunit has power because it quickly absorbs uncertainty by repairing breakdowns that interfere with the different workflows for each of several organisational outputs" (Hickson et al., 1971).

STRATEGIC PLANNING

"Strategic planning concerns how an organisation makes sense of where it is going, and the path it will adopt to get there (Kaplan and Beinhocker, 2003)"

This concept reviews the process of strategic planning and shows how companies can implement strategies to enhance company and product competitiveness. It also offers a summary of the benefits of the process and examples of its application.

Strategic Planning Definition

Strategic planning is a disciplined effort to produce fundamental decisions and actions aimed at shaping the nature and direction of an organisation’s activities (Bryson, 1988; Rudd et al., 2008).

SWOT ANALYSIS

• "SWOT analysis helps managers to select an appropriate strategy that matches their firm’s resources and capabilities to the environment in which they operate (Johnson et al., 2009)."

• A scan of the internal and external environment is an important part of the strategic planning process. This concept describes SWOT analysis and discusses its strengths and weaknesses.

SWOT Analysis Definition

• SWOT is a technique for analysing the internal and external environments of an organisation through the identification and assessment of its strengths, weaknesses, opportunities, and threats (SWOT). SWOT analysis entails a distillation of the findings of an internal and external audit that draws attention, from a strategic perspective, to the critical organisational strengths and weaknesses and the opportunities and threats facing the organisation (Kotler and Armstrong, 2011).

SUPPLY CHAIN PERFORMANCE MEASURES

• "It is essential to focus on areas that are under-performing and on those that are aligned with the overall supply chain strategy (US Agency for International Development, 2010)."

• Supply chain performance measures are critical for maximising value in the supply chain and maintaining oversight. The types of measures that companies should use and their advantages and drawbacks are provided, alongside useful information on implementing a supply chain performance measurement system.

• Supply Chain Performance Measures Definition

• Supply chain performance measures, also called supply chain metrics, can be classified as functional indicators and end-to-end supply chain indicators. The former measure the effectiveness of the supply chain function, while the latter refers to how well these functions are coordinated and what is needed for this coordination, that is, costs and productivity (Kellen, 2003).

SUCCESSFUL PROJECT MANAGEMENT

• "The adage ‘you can’t manage what you can’t measure’ is especially true of project management. The most common measures are time, cost, and quality (Atkinson, 1999).“

Successful Project Management Definition

• Project management is the planning, monitoring and control of all aspects of a project and the motivation of all those involved in it to achieve the project objectives on time and to the specified cost, quality and performance (BSI, 1996).

SKUNKWORKS

• "If you want high performance from a team, give them the problem, give them a deadline, give them some resources (they'll scrounge a lot more, of course), and leave them alone (Olson and Eoyang, 2001)."

• The concept has been designed to assist managers and business owners to set groups of experts who drop out of mainstream company operations in order to develop somethingnew in secrecy or at speed. This theory provides an overview on how skunkworks groups work and how to implement them in an organisation.

Skunkworks Definition

• Skunkworks is often used to describe any team that "works outside the regular organisational structure to develop something new. These teams may also be physically separated from the rest of the organization in a remote location to minimize interference or maintain secrecy" (Brown, 2007). Their aim, as a team of generally 6-25 people, is to develop somethingquickly with minimal management constraints.

STAKEHOLDER ANALYSIS AND MANAGEMENT

• "Essentially, a good understanding of stakeholder management enables a firm to compete effectively by building and prioritising key relationships (Co and Barro, 2009; Friedman and Miles, 2002)."

• The purpose of the concept is to explore the ideas and experiences in developing and applying stakeholder analysis. The concept sets out the benefits of stakeholder analysis and provides indicative guidelines and recommendations for its implementation.

Stakeholder Analysis and Management Definition

• Stakeholder analysis refers to the methodological process of identifying the different types of individuals and groups who have an interest in or impact on an organisation. Stakeholder management is the processes and strategies deployed by the organisation to manage stakeholder expectations and power levels, as well as conflicts of interest (Co and Barro, 2009; Lynch, 2006).

Stakeholder Definitions

• The term stakeholder first “appeared in the management literature in an internal memorandum at the Stanford Research Institute, in 1963” (Freeman, 1984, p. 31).

• The word means “any group or individual who can affect or is affected by the achievement of the organization's objectives” (Freeman, 1984, p. 46).

• Bryson (1995, p. 27) proposed a more comprehensive definition for the term: “A stakeholder is defined as any person, group, or organization that can place a claim on an organization's attention, resources, or output or is affected by that output”.

Dr. F. Edward Freeman, a professor at the University of Virginia, Freeman Stakeholder Approach (1984)

• Freeman is the acknowledgedfather of the stakeholder approach

• Freeman is particularlyknown for his work on stakeholder theory originallypublished in his 1984 book Strategic Management: A Stakeholder Approach.

• Stakeholder Approach (1984) introduced the concept of stakeholders, all of those individuals or groups other than shareholders (or owners) who have a stake in the particular decision or action of companies.

Dr. F. Edward Freeman, a professor at the University of Virginia, Freeman Stakeholder Approach (1984)

• It suggests that shareholders are merely one of many stakeholders in a company.

• The stakeholder ecosystem, this theory says, involves anyone invested and involved in, or affected by, the company: employees, environmentalists near the company’s plants, vendors, governmental agencies, and more.

Freeman’s theory suggests that a company’s real success lies in satisfying all its stakeholders, not just those who might profit from its stock.

Definition: What Is Stakeholder Theory?

• Freemans stakeholdertheory holds that a company’s stakeholdersincludejust about anyone affected by the company and its workings.

• That view is in oppositionto the long-held shareholdertheoryproposed by economist Milton Friedman that in capitalism, theonly stakeholdersa company should care about are its shareholders - and thus, its bottom line.

• Friedman’sview is that companies are compelled to make a profit, to satisfy their shareholders,and to continuepositive growth.

Stakeholder Approach (1984)

• Dr. Freeman suggests that a company’s stakeholders are "those groups without whose support the organization would cease to exist."

• These groups would include customers, employees, suppliers, political action groups, environmental groups, local communities, the media, financial institutions, governmental groups, and more.

• This view paints the corporate environment as an ecosystem of related groups, all of whom need to be considered and satisfied to keep the company healthy and successful in the long-term.

Power-Interest Grid Source: Eden and Ackermann (1998)

• Power-Interest Grid Source: Eden and Ackermann (1998) cited in Bryson, John 2004. “What to do When Stakeholders Matter: Stakeholder Identification and Analysis Techniques.” Policy Management Review 6(1): 21-53.

• The power-interest grid, as shown to the right, helps to visualise the positions of individual stakeholders and the relations among them. The two dimensions of the grid –power and interest – speak to the reality that not all of the players who have an interest in agricultural land use planning also have power to influence decisions. The twodimensional grid generates four categories of stakeholders: Players: have both an interest and significant power Subjects: have an interest but little power Context setters: have power but little direct interest

Crowd: have little interest or power

Power-Interest Grid Source: Eden and Ackermann (1998)

Eden and Ackermann, 1998

Total Quality Management

Total quality management (TQM)

Total quality management (TQM) is an ongoing process of detecting and reducing or eliminating errors.

It is used to manufacture to streamline supply chain management, improve customer service, and ensure that employees are trained.

The focus is to improve the quality of an organization's outputs, including goods and services, through continual improvement of internal practices.

Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service

THEORY X AND THEORY Y

• "One can agree or disagree with [McGregor’s] writings, but they are always there as something to shoot for or at, depending on one’s viewpoint (Bennis, 2006: xv)."

• The concept describes two theories of human motivation - Theory X and Theory Y, their shortcomings and the main business applications. The knowledge gained will help managers to better understand the different ways in which individuals relate to, and carry out, work.

• Theory X and Theory Y Definition

• Theory X and Theory Y are theories of human motivation: the former assumes people dislike work, lack ambition, act irresponsibly and prefer to be led, whereas the latter assumes people are willing to work, like responsibility, and are self-directed and creative (Schermerhorn, 2011: 38).

THEORY Z

"American management models were losing ground by the 1970s (Daft, 2004:117)."

• Theory Z is a management concept that looks at motivating workers. It is of benefit to managers and business owners as it describes the main advantages, drawbacks, success factors and case evidence from some of the market leaders.

Theory Z Definition

• Theory Z expounds a management style blending Japanese and US organisational values.

Developed by William Ouchi, it emphasises a strong company philosophy, a distinct corporate culture, long-range development and employment, consensual decisionmaking, and moderately specialised career paths (Adeniyi, 2007; Daft, 2004).

TRANSFORMATIONAL LEADERSHIP

• "Managers tend to adopt more transactional styles whereas leaders are more inclined to be creative, inspiring and transformational in their behaviour and outlook (Zaleznik, 1992)."

• The concept outlines core ‘constants’ that can be used to develop effective leadership within the organisation and describes the principles that underpin transformational leadership. The concept will give you an understanding of how to adopt this approach in any organisational setting.

Transformational Leadership Definition

• Transformational leadership "portrays leaders as charismatic or visionary individuals who seek to overturn the status quo and bring about radical change. Such leaders use the force of their personality to motivatefollowers to identify with the leader's vision and to sacrifice their selfinterest in favour of that of the group or organisation" (Burnes, 2009: 605)

TIME MANAGEMENT

• "Long hours are not a substitutefor efficiency. Tasks not worth doing at all are not worth doing well.

Alexander R. Margulis"

—

• Managing time effectively is essential to maximise performance. The concept offers a review of different time management techniques and highlights the main benefits, success factors, as well as some practicalapplication steps and case evidence.

Time Management Definition

• Time management is the process of organising, planning and controlling time to get more and better work done in less time. It is defined as “behavioursthat aim at achieving an effective use of time while performing certain goal-directed activities (Claessens, 2007)” and “practicesintended to maximise intellectual productivity (Brittonand Tesser, 1991).”

• Time management can be viewed as a way of monitoring and controlling time (Eilam and Aharon, 2003). Marquis and Huston (2009), on the other hand, argue that time cannot be managed at all; individuals can manage events in relation to time.

VALUE CHAIN

• "The value chain helps to identify the skills, processes and linkages necessary to generate success and competitive advantage(Drummond et al., 2008)."

• Value chain is composed of primary and support activities that add value to the final product. The concept reviews the term and its main characteristics and examines success factors and implementation evidence.

• Value Chain Definition

• The Value Chain is a management approach for analysing the activities of a firm and how it can gain competitive advantage(Porter, 1985). The value chain, comprising primary and support activities, includes the full range of activities required to bring a product or service from conception through to the different phases of production, delivery to the final consumer, and disposal after use (Kaplinsky and Morris, 2001).

VALUE CHAIN MANAGEMENT

• "Value chain management [involves] ... analysing every step in the process ranging from the handling of raw material to end users, providing them with the greatest value at the lowest cost (Koontz and Weihrich, 2007). "

• The value chain management concept will help project leaders and its sponsors to develop long-lasting trusting relationships with suppliers. The concept reviews the main capabilities and pitfalls of the approach and highlights the main implementation steps.

• Value Chain Management Definition

• Value chain management (VCM) requires "examining processes (physical, financial and informational) and uncertainties (opportunities for improvement and risks to achievement) from beginning to end of the chain (or network) in an integrated manner in order to optimise overall value" (CIPS: Procurement’s role in the generation and capture of value in supply chains: 24).

Learning Outcomes

Understand equality, diversity and inclusion at a strategic level

Know how to develop strategic priorities for equality, diversity and inclusion