For more information, visit http: However, it should be clear that the main responsibility for management should be related to the accomplishment of strategic change. Review all process documentation created throughout the process and ensure it accurately reflects the new process.
Will the change cause unanticipated results in their portions of the process? The operational decisions then help the organization to bring about changes that move the business toward its strategic goals.
It is a sign of lazy analytics if the change proposer assumes the process is flawed because individuals who designed it were lacking in process design knowledge.
Strategic change is in response to both internal opportunities for improvement and reaction to external influences that can threaten the organization.
This includes communication of the whys and what behind strategic change to those with a primary responsibility over operational change along with feedback communication to those responsible for strategic change regarding the performance of strategic change initiatives and other opportunities for improvements that might exist.
Operational Decisions Operational decisions relate to the daily operations of an organization.
Change and operational and strategic change is important to recognize that the concept of employee empowerment automatically exists as soon as that individual is given responsibility for managing and controlling the change that has been assigned to them.
The answer lies in the fact that organizations have allowed the lines of responsibility between day to day operational change and strategic change to get blurred.
The real challenge lies in executing the paradigm shift that requires a clear understanding by everyone in the organization that change is already constantly successfully executing within the organization and a new delineation of responsibility between strategic and operational change is required.
Strategic decisions always represent a risk because these decisions deal with the future. On the other hand, the collapse of once famous companies like Chrysler point to the transformational change that is sudden and radical in nature.
Strategic Change in the Real World After the discussion on the theorists and their ideas, it is time to consider how strategic change is actualized in the real world.
Unless companies embrace change, they are likely to be fossilized and unless companies prepare to deal with sudden, unpredictable, discontinuous, and radical change, they are likely to go the way of the dinosaurs.
If a proper change management process is maintained, we can minimize special-cause variation due to individualized process approaches and still embrace improvement recommendations as they occur in our organizations. Strategy entails making major changes for the organization and recognizing that the business environment is not static and will continue to evolve.
Will they be affected in a meaningful way? While a company can make strategic decisions based on relevant information, the organization can never predict the future with certainty.
The goal of making strategic decisions is to implement policy that aims to move the organization toward its long-term goals. Additionally, we need a readily communicable model of the current process. Because of this, a business must take precautions when implementing strategic decisions.
If appropriate, use the analyzed data to further improve the process, make adjustments based on reality and, most importantly, control the process.
These are the people closest to the operational change and generally have the greatest ability to address opportunities and issues that may arise. However, it is also important to make sure a communication loop exists that supports the delineation of responsibility.
Can operators look at the document and explain back to you how the new process will work? Revalidate Process Discipline, Data and Measuring Systems for the Change At all times, we should be certain that processes are followed, data are reliable and our measuring systems are capable of providing data we can use to make good managerial decisions.
Instead, what Drucker proposed was that firms explore the drivers of change and strategize according to which aspect was most likely to affect the firm in the future. Was the change effective? To prevent this, operational decisions should be consistent with strategic decisions.
Good operational decisions will have measurable results such as higher revenues, increased profits, increased productivity and customer satisfaction. Clearly Identify the Change to be Made Once the current process is found to be deficient in some way, the new process should be articulated clearly and concisely.
Risk of Strategic Decisions A business always assumes risk when deciding to change its methods. More importantly, the lines of responsibility have not only become blurred but it is common that the interrelationship between operational change and strategic change has become disconnected.
Following are eight steps that, if followed, allow us to properly change a process with discipline while still embracing the insights and excitement of our rank-and-file operators. Be certain that the changes that were made are maintained and the process is controlled.
The first among them was the legendary Peter Drucker who coined the term Age of Discontinuity to describe the way in which disruptive change affects us. What is most often lacking is a top to bottom organizational recognition of the fact that not only is there a significant amount of change continuously occurring in the organization, but through the assignment of responsibility, all the employees in the organization are already masters at managing and executing all of that change.
Decisions A business does not make frequent decisions regarding operations because of constraints of time, resources and the workforce. Finally, many companies proclaim that they are changing whereas it is superficial and the world comes to know later on that their change models were neither broad nor deep.Running Head: OPERATIONAL 1 Operational and Strategic Change Katina Pierce BUS Instructor: Maria A.
Kithcart March 5, Operational and Strategic Change Change interventions can help motivate and promote growth in the organization. These interventions help companies stay up to date and keep growing. Strategic changes and operational changes need to work together for the betterment of the organization An Operational change is a change that an entire organization operates or behaves.
The operational change will affect how the day to day functions of an organization are ran.
Simply, while operational changes focus on the business and organizational systems, the strategic change main purpose is to renew these systems (Bold, ). Activities involved in strategic change include restructuring, acquisitions, or mergers%(2). What is Strategic Change? In response to the fast changing and fluid marketplace and industry landscapes, many management thinkers came with theories of strategic change.
The first among them was the legendary Peter Drucker who coined the term Age of Discontinuity to describe the way in which disruptive change affects us.
Operational change Considering the strategic change it can be considered as a field which is influenced by the decisions of the management. It includes the maximum utilization of resources in terms of improving the performance of a business in the business environment.
There is much discussion about continuous improvement, kaizen and operational excellence pursuits in operations management.
Many times, the topic of process improvement neglects the more important topic of how to change a process. While there is a desire to avoid stifling creativity among the best.Download