Corporate Planning Basics
Why is business change always occuring?
Change is the only constant
The most recognised culture type associated with autocratic leadership and power concentrated in a few people.
Power culture
_____and______= culture which leads to results
Values and beliefs
An effective ____________ will be able to lead
change in a positive way and this will encourage
employees to accept the consequences of change.
Decision maker
The key steps of contingency planning
identify potential disasters, assess likelihood of these occurring, minimize potential impact of of crisis
The long-term process used by companies to set objectives, decide on strategies to achieve business growth and higher return on capital employed.
Corporate planning
This culture type is most associated with bureaucratic organisations where each staff member has a clearly defined job title and role.
Role culture
One key element to successfully change culture that involves top down support
gaining support from senior managers
This person is appointed by senior management to drive a change programme, cheerlead it, remove obstacles, and ensure resources are available, but is not usually involved in day-to-day running.
Project champion
How might you deal with negative press after a product contamination?
...
One key benefit of a corporate plan: it gives senior managers a clear focus and sense of purpose for what they are trying to achieve.
Clear focus, sense of purpose, etc.
The culture type in which groups are formed to solve particular problems and teamwork is emphasised, often similar to a matrix structure.
Task/team culture
John Kotter’s first stage in his eight-stage process for leading change.
Establish sense of urgency
This factor increases resistance when past experiences have led to distrust of managers introducing change.
Lack of trust
This type of planning prepares resources so the business can continue operations after a major crisis (e.g., finding alternative premises and IT after a fire).
Continuity planning
This limitation occurs when a corporate plan becomes obsolete because the business refuses to make adaptations during rapid or unexpected external changes.
Inflexibility / becoming obsolete
This culture type gives individuals full freedom to express themselves and make decisions, which can lead to conflict with the organisation’s overall goals.
Person culture
Step 8
Name the types of change that are likely to occur and give an example of each
macroeconomic, technological, legal, competitors actions
One limitation of contingency planning
What is the need for constant updating / training costs / it does not prevent disasters?
What are 4 strategies a business would use to increase sales growth (objective)
. increasc sales of cxisting products - market
penetration
· develop new markets for existing products -
market developrent
. research and develop new products for existing
markets - product development
. diversify - new products for new markets.
The culture type that encourages management and workers to take risks, come up with new ideas and test new business ventures; failure is not necessarily criticised.
Entrepreneurial culture
. Where are we now and why is change necessary? It
is important to recognise why a business needs to
introduce change from its current situation.
. New vision and objectives: For substantial changes, a
new vision for the business may be needed. This must
be communicated to those affected by the change.
. Ensure resources are in place to enable change to
happen: Starting a change and then finding that there
is too little finance to complete it could be disastrous.
. Give maximum warning of the change: Employees
should not be taken by surprise by change. This
increases resistance to it.
. Involve employees in the plan for change and its
implementation: This will encourage them to accept
change and lead to proposals from them to improve
the change process.
. Communicate: The vital importance of
communication with the workforce runs through
all these other stages.
. Introduce initial changes that bring quick results:
This will help all involved in the change to see the
point of it.
. Focus on training: This will allow employees to feel
that they are able to make a real contribution to the
changed organisation.
. Sell the benefits: Employees and other stakeholders
may benefit directly from changes so these need to be
explained to them.
Kotter argues that resistance is lowest when there is this throughout the organisation, especially in communication and consultation.
Trust
This process deals with a sudden emergency event, such as a fire, oil spill, or hacker attack.
Crisis management