Change Management – What Triggers Change?
Scenario planning is one of the tools of strategic planning that is useful in rapidly changing environment. Using scenario planning, decision makers might have a better idea of the possible futures. Scenario analysis is aimed at compensating for two errors: underprediction and overprediction. Scenario planning involves imagining different future states or scenarios and using these as the basis for formulating strategic plans.
Steps in Scenario Planning:
Step1: Define the scope of the analysis
Step2: Identify major stakeholders
Step3: Identify basic trends
Step4: Identify key uncertainities
Step5: Construct initial scenario themes
Step6: Check for consistency and plausibility
Step7: Develop learning scenarios
Step8: Identify research needs
Step9: Develop quantitative models
Step10: Evolve towards decision scenarios
What Stops An Organization From Changing
- Failure to recognize changes in the environment:Though managers may seem to recognize the dramatic shifts in the environment but many a times slower though important changes are not perceived.
- Complacency because of existing success:Many successful organizations become complacent because they are so successful. An attitude of overconfidence develops, and they tend to feel they are invincible.
- Misinterpretation of changes:Even when managers notice changes in their environments, they might misinterpret their changes. Managers may discard the negative changes in the environment as a temporary problem.
- Organizational forces that prevent changes:Sometimes, managers may be fully aware of the changes in their environment and of the changes they need to make internally, but fail to make the needed changes.
Change Management – Making Changes Happen:
- Identify whether the organization needs to change.
- Establish a sense of urgency.
- Form a powerful guiding coalition.
- Identify sources of resistance to change.
- Create a vision.
- Communicate the vision.
- Remove obstacle to change.
- Plan for and create short term wins.
- Consolidate improvements.
- Incorporate the changes.
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