Application of types of strategic changes to the managing change at Faslane Case study
The term strategy is originated from the Greek word called “strategia” which means “generalship.” But, the concept of strategy is not originated with the Greeks. Strategy is the overall plan for deploying resources to establish a favorable position;(Grant, 2010).
Concerning the types of strategic change there are two main categories to be considered. Those two main categories are; Nature Of change and Extent of Change. Nature of change can be divided into two types as incremental and Big Bang. Realignment and Transformation is falling to the category of extent of Change.
According to the above classification there are four …show more content…
Seven elements can be divided into two groups as soft elements and hard elements. Strategy, Structure and systems are fallen to hard elements and skills,style,staff and shared values are fallen to soft elements.
Application of McKinsey’s 7s framework to the managing change at Faslane Case study McKinsey’s 7S Framework
Strengths
Weaknesses
Hard Elements Strategy Concerning on good infrastructures and buildings High cost and time consuming Structure Clear and cut decision making by the top managers.
(bureaucratic system) Seven layers of management system System Transformational changes were not required due to smooth running of public sector. Involvement of elected politicians in decision making.
Soft Elements Styles Implementation of bureaucratic leadership style. Negative perception of employees regarding bureaucratic leadership style. Staffs 7,500 total population of staffs and 250 people in management team. Main focus of work for the staffs was only for infrastructure developments and building …show more content…
When Babcock entered to the Faslane, first of all they analyzed the financial and marketing situations with in the Faslane and they found a fairly large budget somewhere is no incentive to reduce cost
As a strategic Managing Director Mr. John Howie brought a rule as “if they had not spent their budget next year it would be cut” with the intension of lowering the cost.
The seven layers management structure was reduced to four layers, reducing the management team to half of 250 members, reappointing the jobs and removing the bureaucratic system environment to give preference to the views and opinions of the employees are the results of transformational change with the existing change. In other words these are the milestones and the branch of intended strategy which the Managing Director strategically aligned to achieve £76 million of cost saving.
When considering the politician involvement, they can create an emergent strategy situation, as an example if the Managing Director took a decision regarding the re-engineering, the politician could be against to the decision at that time Babcock needs to take a use of Emergent