Strategic Management: Formulation and Implementation

Managing Strategic Change

Changes in strategy are typically marked by uncertainty about causes, priorities, appropriate action, even about the existence of a problem.

Urgency Of Change

One of the most significant influence in which the implementation of the change process are manage is the degree of urgency required. When the impact of urgency on change is considered, we are left with three principal types of change: crisis change, reactive change, and anticipatory change.

Crisis Change
In this situations, the problems have reached an acute state: an opportunity may be disappearing, sales may be in collapse, a cash crunch may be imminent, banks may be on the bring of calling in their loans and so forth. In crisis situations decisive action is required.
Reactive Change
This situation prompting the change may be positive (e.g., an opportunity to exploit a new technology), or problematic (e.g., the need to address a persistent decline in performance standards). In reactive situations there are clear and tangible indications of the need for change, but the pace of change must be carefully considered. The steps must be taken sufficiently rapidly to meet external pressures. However, they can not create the disproportionate risks of failure.
Anticipatory Change
This type of change tends to have the longest perspective. The characteristics of anticipatory change are a forecast need for change but with the required actions and the timing both uncertain. Anticipatory change is perused in careful, purposeful, incremental steps. This approach is now referred to as logical incrementalism (Quinn's incremental model).