Businesses usually face the complicated process of alternating culture, leadership, values, and structure while executing strategic change. However, no matter how complex these means are, they are performed mainly to advance the company’s strategy to thrive in the future. In other words, strategic changes tend to be conducted in terms of meeting the latest trends in the industry to remain equal with rivaling businesses of a similar sphere. Thus, before implementing such alternation, it is vital to analyze the possible impacts on the other parts of the company operating.
Firstly, it is significant to start changes when the business is thriving and not in a crisis. Specifically, any alternations take a considerable amount of effort and funds; hence it might be impossible to perform them with the deficiency of at least one factor. Parnell (2014) claims that every employee should be involved in the process of a proper transformation execution and not only top executives. Meanwhile, the correct analysis of a company’s success statistics includes not previous years’ performances but the research of competitors and industry (Dzwigol et al., 2019). In addition, the investigation should consist of customers’ satisfaction rates and goods’ quality along with less significant factors such as profitability, performance measures, and market share.
Secondly, when the necessity of the strategic transformation is recognized, executives also should encourage employees to work hard on it. For instance, employers need to explain the possible outcomes of a strategic change and how it can possibly influence workers’ positions, incentives, and salaries (Ocasio et al., 2018). However, it is impossible to execute any strategic change if employees do not have identical expectations about the company’s future (Herrmann & Nadkarni, 2014). Therefore, transformational managers need to effectively discuss the critical steps of completing the company’s transformation and their exact timelines with the employees.
Thirdly, the strategic change concept can be implemented in any business, though it should not be in a crisis to enable its successful and efficient execution. For instance, a coffee shop has perfect performance statistics but is looking to attract more customers. Therefore, top executives might propose the idea of implementing custom drinks that each consumer can create from the start. Such a strategic change might make a coffee shop different from others as they tend to share similar drinks in usual menus. Moreover, the opportunity of creating one’s own coffee should be priced higher than the typical options. Consequently, such a transformation might increase the business’ income and motivate the employees to accept the new change in the company since their hourly payment would be higher. It is also significant to note that when executing such alternation in a strategy, the coffee shop is not in a crisis and has excellent performance rates.
Finally, the notion of strategic change usually has an impact on other factors in the company operating, such as structure, values, and work environment. However, to successfully execute the transformation, it is vital to research competitors and the industry, on the whole, to remain equal with the modern trends and attract numerous customers. It is also impossible to perform the strategic change if some employees do not see its perspectives regarding the company’s advancement or benefits to their position. In addition, this concept can be implemented in any company with success when following the previously mentioned key points.
References
Dzwigol, H., Shcherbak, S., Semikina, M., Vinichenko, O., & Vasiuta, V. (2019). Formation of the strategic change management system at an enterprise.Academy of Strategic Management Journal, 18, 1-8. Web.
Herrmann, P., & Nadkarni, S. (2014). Managing strategic change: The duality of CEO personality. Strategic Management Journal, 35(9), 1318-1342. Web.
Ocasio, W., Laamanen, T., & Vaara, E. (2018). Communication and attention dynamics: An attention‐based view of strategic change.Strategic Management Journal, 39(1), 155-167. Web.
Parnell, J. A. (2014). Strategic management: Theory and Practice. Sage.