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5 The Globalisation of Markets and Competition
Technological International Maturation of Fall of
Change Economic Markets in Communist
Integration Developed and Socialist
Countries Regimes
•Faster and better •Fewer tariffs •Slower domestic •More countries More Hazards More Opportunities
communication (GATT) growth linked to the •More competition •Bigger markets
•Faster and better •Currencies •More aggressive capitalist •Increased speed •Fewer barriers
transportation linked via exporters system
•More information floating •More deregula-
networks •More global tion
connecting capital
people globally
More Large-Scale Change in Organisations
To avoid hazards and/or capitalise on opportunities, firms must become
stronger competitors. Typical transformation methods include:
The Globalisation of Markets and Competition •Reengineering •Mergers and acquisitions
•Restructuring •Strategic change
•Quality programs •Cultural change
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5 &&! Stage 4: Communicating the Change Vision
•Using every vehicle possible to constantly communicate the new vision
Stage 1: Establishing a Sense of Urgency and strategies
•Examining the market and competitive realities •Having the guiding coalition role model the behaviour expected of
•Identifying and discussing crises, potential crises, or major opportunities employees
Stage 2: Creating the Guiding Coalition Stage 5: Empowering Broad-Based Action
•Putting together a group with enough power to lead the change •Getting rid of obstacles
•Getting the group to work together like a team •Changing systems or structures that undermine the change vision
•Encouraging risk-taking and non-traditional ideas, activities, and actions
Stage 3: Developing a Vision and Strategy Stage 6: Generating Short-Term Wins
•Creating a vision to help direct the change effort •Planning for visible improvements in performance, or “wins”
•Developing strategies for achieving that vision •Creating those wins
•Visibly recognising and rewarding people who made the wins possible
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Stage 7: Consolidating Gains and Producing More Change Management
•Using increased credibility to change all systems, structures, and •Planning and budgeting: establishing
policies that don’t fit together and don’t fit the transformation vision detailed steps and timetables for achieving •Produces a
•Hiring, promoting, and developing people who can implement the change needed results, then allocating the resources degree of
vision necessary to make it happen predictability and
•Reinvigorating the process with new projects, themes, and change order and has the
agents •Organising and staffing: establishing some potential to
structure for accomplishing plan requirements; consistently
staffing that structure with individuals; produce the
delegating responsibility and authority for short-term results
carrying out the plan; providing policies and expected by
Stage 8: Anchoring New Approaches in the Culture procedures to help guide people; and creating various
•Creating better performance through customer and productivity oriented methods or systems to monitor stakeholders (eg
behaviour, more and better leadership, and more effective management implementation for customers,
•Articulating the connections between new behaviours and organisational always being on
success •Controlling and problem solving: monitoring time; for
•Developing means to ensure leadership development and succession results, identifying deviations from plan, then stockholders,
planning and organising to solve these being on budget)
problems
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Leadership Some combination of visionary entrepreneurship and/or luck creates and
•Establishing direction: developing a vision of implements a successful business strategy
the future - often the distant future - and •Produces
strategies for producing the changes needed change, often to a
to achieve that vision dramatic degree,
and has the A fairly dominant position (and thus lack of strong competition) is
•Aligning people: communicating direction in potential to established in some market. The market is usually a product or service
words and deeds to all those whose produce but could also be financial, labour, or supply.
cooperation may be needed; so as to influence extremely useful
the creation of teams and coalitions that change (eg new
understand the vision and strategies and that products that
accept their validity customers want, The firm experiences much success in terms of growth and profits
new approaches
•Motivating and inspiring: energising people to labour
to overcome major political, bureaucratic, and relations that
resource barriers to change by satisfying help make a firm
basic, but often unfulfilled, human needs more competitive
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The firm needs, The pressures on Managers begin
hires, and promotes managers come to believe that A strong and arrogant culture develops
managers, not mostly from they are the best
leaders, to cope inside the firm. and that they are Managers fail to acknowledge the value of
with the growing Building and superior. They customers and stockholders. They behave in an
bureaucracy. Top staffing a become more and insular, sometimes political fashion
managers allow bureaucracy that more arrogant.
these people, not can cope with Top management Managers fail to acknowledge the value of
leaders, to become growth is the does nothing to leadership and the employees at all levels who can
executives. biggest stop this trend provide it. They tend to stifle initiative and
Sometimes top challenge. and often innovation. They behave in centralised/
management External exacerbates it bureaucratic ways
actively prevents constituencies
leaders from are neglected
becoming senior
executives
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Authoritarian Decree Micromanagement Vision
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: Forces that Support the Status Quo
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