Managing the change process – phases of a strategic change programme

As dealt with in a previous chapter, the view of planned change is followed in this work. This is in line with the view of change as a process comprising different phases. The pro- cess or phases are not totally discrete, but overlap. In the course of an implementation more than one phase can occur at a time as they are not temporally mutually exclusive (Burke, 2011).

The literature on managing change details many different models or frameworks to look at the process of change (e.g. Lewin (1951); Bullock & Batten (1985), Burnes (2006), Gallos (2006); Burke, Lake and Paine (2008), Burnes (2009), Krüger (2009), Burke (2011)) of which Lewin is the originator. The preferred framework chosen for this re- search is that of Krüger (2009) who divides the planned change process into the follow- ing five phases: initialisation, conception, mobilisation, implementation and stabilisation/continuation. His framework provides a more differentiated view of the change process than Lewin’s simple three-phase model.

Krüger’s (2009) model is generic in its nature and not related to any specific change con- tent to be implemented. In order to build a common understanding of the framework and its phases it is outlined subsequently in more detail, integrating content from previous chapters, complemented with additional references from other authors where applicable. Krüger’s five phases build one of the components of the to-be developed framework as stated in research aim in Section 1.4. The figure below illustrates the phases of the change process and indicates the main areas to be dealt with in each phase. The phases and respective activities are dealt with subsequently.

Figure II-2: Change process and management of change

Source: Krüger (2009, p.70)

2.5.1 Initialisation

The initialisation phase is concerned with the identification and compulsory assess- ment of the factual need for change as well as activating promoters for the change (Bullock & Batten, 1985; Burke, 2011).

Identifying the need to change – This task is about creating awareness of the prob- lem(s) based on an internal and external analysis (Bullock & Batten, 1985). In the first instance, Krüger (2009) emphasises the importance of raising awareness among the leaders of potentially affected areas in the organisation who need to be convinced and recognise the necessity and urgency (Kotter, 1995).

Further, a clear picture of the business direction and future organisation needs to de- veloped and established by those top leaders – a vision and overall aim. Moreover, the potential change impact needs to be examined.

Activating change promoters/drivers – Since change is usually accompanied by re- sistance the framework recommends analysis of all relevant stakeholders in order to identify potential promoters, opponents and those in between. According to Kotter (1996) promoters need to be won over to build a guiding coalition, to initiate and drive the change process.

Basically, the main driver of the change should be the representative(s) of the top management of respective business unit(s) who function(s) also as project/programme sponsor(s) (Krüger, 2009). Subsequently, the need to change has to be concretised and the overall course of actions to manage it needs to be defined.

2.5.2 Conception

After the change process is initiated, the conception phase is about setting objectives for the change as well as drafting, conceptualising and evaluating different alternatives.

Setting objectivesand general framework – Clearly defined objectives to be achieved by the change need to be based on and aligned with the long-term vision and goals of the organisation. In addition, the framework conditions in which the change should be im- plemented need to be clarified (unchangeable external/internal factors and parameters) (Krüger, 2009). Both objectives and framework conditions provide a clear direction and boundaries for the to-be-implemented change.

Developing concept and measures – Deriving from the overall corporate strategy and the identified need for change, a corresponding change strategy needs to be developed. This change strategy needs to take into account the external developments as well as in- ternal strengths and weaknesses. This builds the foundation for the to-be-developed programme and sub-projects to achieve the targeted change.

The concept should also include resource requirements needed to implement it (finan- cial, people, technological systems, and facilities). Further, programme and sub-project roles (e.g. sponsor, steering committee, programme leader, project managers, teams) and responsibilities need to be clarified and defined as well as tasks assigned and allo- cated (Krüger, 2009). Moreover, all these aspects have to be planned and prepared in an integrated manner with plans, charters, clear and realistic targets. Since this is still a concept the different alternatives need to be evaluated as preparation for the final se- lection and decision of the package of measures to be realised (Bullock & Batten, 1985). After decision-making, required resources need to be provided and allocated accordingly (Krüger, 2009).

2.5.3 Mobilisation

Following the conception of the SCP and its measures, it is essential to communicate it to all relevant stakeholders, most importantly to those who are affected (Burke, 2011). Moreover, this phase is about focusing the organisation and its people and other stake- holders on the strategic change programme. The mobilisation phase aims at willingness, readiness as well as capability to change (Krüger, 2009).

Communicating the concept of the SCP – The main aim is to achieve acceptance for the change programme (Burke, 2011). This requires involving the main authorities, such as board members and works council, for which the top management is responsible. In ad- dition, other internal as well as external stakeholders’ expectations and influences need to be managed. This includes one-to-one conversations with key people, group discus- sions or even larger communication events (Burke, 2011). Krüger (2009) strengthens the importance of top management, programme sponsor and programme manager commu- nication in order to emphasise the importance of the required change. Further, he rec- ommends developing an explicit change programme communication concept and plan, and to establish a dedicated sub-project for programme communications.

Finally, the framework suggests developing an incentive and reward system to foster, promote and encourage a positive attitude and support for the change and its pro- gramme implementation (Krüger, 2009).

Laying the foundations for the implementation – There are some management deci- sions required to lay the foundation for the programme implementation (Hrebiniak, 2006). This includes setting priorities, assigning financial, technical, and human re- source, as well as assigning authorities and responsibilities accordingly. Moreover, training for programme staff (e.g. project managers, change agents, team members) needs to be conducted as well as setting up programme/project documentation, report- ing and controlling (Krüger, 2009).

2.5.4 Implementation

This process step is about implementing the programme, its projects, sub-projects and re- spective measures as planned in the concept and adapting it where necessary (PMI, 2013b). This includes setting priorities regarding activities to be conducted to implement the factual changes. Therefore their importance and criticality need to be considered in terms of success, implementation risks, dependencies, meaning, impacts and conse- quences as well as availability and capability of resources (Krüger, 2009). Significant for this phase are know-how transfer and training to prepare and enable the organisation and its members for the upcoming changes. In order to ensure an implementation as planned and to disclose new developments to be considered for the overall success of the pro- gramme, the implementation needs to be monitored, reviewed and evaluated (Bullock & Batten, 1985). This includes process, measures, activities, progress and level of achieve- ment of intermediate objectives and milestones by the top management, programme man- agement team, project managers or workstream leads (PMI, 2013a). The responsibility depends on the strategic, tactical, or operational meaning of respective aspects. Monitoring and evaluation supports decision making of those accountable to undertake corrective measures in case any unpleasant deviations are disclosed (Krüger, 2009).

2.5.5 Stabilisation and continuation

As the label indicates this phase follows the implementation phase seeking stabilisation and establishing the implemented changes (Burke, 2011), e.g. new processes, proce- dures, ways of working, using new systems and technology (Krüger, 2009). Furthermore, this phase is about reviewing the effectiveness and efficiency of implemented changes to identify potential for improvements as a continuous learning and improvement process (Garvin, 1993; Senge, 2006; Russ-Eft & Preskill, 2009).