Strategic Management: Formulation and Implementation

2. The Organizational Change Approach

This approach starts where the Commander Approach ends: with implementation. The organizational Change Approach addresses the question "I Have a strategy -now how do I get my organization to implement it?" The strategic leader again decides major changes of strategy and the considers the appropriate changes in structure, personnel, and information and reward systems if the strategy is to be implemented effectively.

The most obvious tool for strategy implementation is to reorganize or to shift personnel in order to lead the firm in the desired direction. The role of the strategic leader is that of an architect, designing administrative systems for effective strategy implementation.

The Change Approach is often more effective than the Commander Approach and can be used to implement more difficult strategies because of used the several behavioral science techniques. This techniques for introducing change in an organization include such fundamentals as: using demonstrations rather than words to communicate the desired new activities; focusing early efforts on the needs that are already recognized as important by most of the organization; and having solutions presented by persons who have high credibility in the organization.

However, the Change Approach doesn't help managers stay abreast of rapid changes in the environment. It can backfire in uncertain or rapidly changing conditions. Finally, this approach calls for imposing the strategy in "topdown" fashion, it is subject to the same motivational problems as the Commander Approach.