KPI-ay Caramba!
Driven to Change
Resisting the Change
Porter's Playbook
May the (lewins) Force (field analysis) be with you
100

How do you calculate Net Profit?

Total Revenue - Total Expenses

100

Define driving forces

factors or forces in the businesses environment that promotes a change to occur

100

Define restraining forces

Restraining forces are factors that discourage or hinder the change a business is trying to implement

100

What are Porters two categories of competitive advantage ?

Cost Advantage & Differentiation advantage 

100

What is the aim of Lewin's force field analysis?

The force field analysis is a tool that can be used by businesses to determine which forces drives and which forces restrain a proposed change

200

Name one Non-Financial KPI

Level of wastage, Level of staff turnover, No. of customer complaints, Rate of staff absenteeism, No. of workplace accidents 

200

Describe how owners and managers can be a driving force for change?

In a small business, they drive change as as they are in control of maintaining sales, profit, market share and customer base. 

In a larger-scale business, managers push for changes that will ensure that dividends are paid to shareholders are profits are made. 

200

How may managers be a restraining force?

Managers may also restrain change if they do not implement change in a timely and efficient manner that employees support


They also may not wish to support change as they see it as a threat to their own position, power or role. 

200

Name one lower cost strategy 

Reducing direct and indirect costs, improving efficiency & controlling areas of management responsibility 

200

What is a benefit of the force field analysis?

Decides if change is worth it, allows identification of strengths, identify if training is needed, visual aid can support communication 

300

Differentiate between Financial & Non-Financial KPIs

Financial KPIs measure a $ figure, whereas non-financial are a numerical number 

300

How can employees be a driving force for change?

They drive changes as they believe it will be better for the business and their long term employment. 

If employees support change, it usually means the change will be successful as they are the ones who implement the change

300

How can employees be a resisting force?

Employees may restrain changes as it can lead to job losses or a decrease in job security. 

If the employees do not understand the change this can also cause them to fear it and therefore not wish to implement the change

300

Name a differentiation strategy 

High quality products, Multiple branding, Innovation and development 

300

What is a limitation of a force field analysis 

Subjective, doesn't consider unexpected events, may require more training, may miss some forces

400

What does the Rate of Productivity Growth measure? 

The business’s ability to transform inputs into outputs. The rate of change, increasing or decreasing, gives the rate of growth

400

How can competitors be a driving force for change?

They drive change for other businesses as they have to compete in their marketplace to maintain market share.

If a competitor is outperforming a business, the need to create changes to regain their competitive advantag

400

How can legislation be a restraining force?

Laws that are complex usually are restraining forces to change, as the harder it is for a business to implement change due to law, the harder is it for the change to occur

400

What is one advantage of lower cost strategies 

May be more profitable, can stop competitors increasing market share, save money to allow expansion 

400

What are the Key principles of Force Field Analysis 

  • Consider the factors that may drive the change

  • Consider the factors that are restraining the change

  • Identify the influence of these factors and their weight to impact the changes that are wanting to be introduced

500

Name one Strategy you may use to improve staff turnover

Choice of manager, communication, support and encouragement 

500

How can innovation be a driving force for change?

Innovation drives businesses as they can create new or improved products, allowing for the business to gain competitive advantages as they have a product that others do not

500

What is organisational Inertia?

Organisation inertia is when a business remains still or moves in a constant direction at a constant speed, not responding to change

500

What is a disadvantage of differentiation strategies? 

Rival business can copy - stops any advantage (Temu), High initial cost, can be time consuming 

500

What are the steps to completing a force field analysis?

1. Identify the forces that are driving or restraining change 

In this step managers need to score the strength of the force from 1-5, 1 being low strength and 5 being the strongest

Step 2. Prioritise the most influential forces

Take note of the top 3-5 most restraining forces and the top 3-5 driving forces. This shows the business what areas they need to eliminate and what they need to strengthen

Step 3. List actions required to implement a response

Business will create actions that are required to complete the proposed change and passing responsibility for each action

Step 4. Evaluate the response

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