Session 3 Triggers for Change External triggers PEST

Session 3

Triggers for Change External triggers - PEST • Political • Economic • Social • Technological

Political and Economic Factors • Government leg • Government ideology • International law • Universal rights • Wars • Local regulations • Taxation • Trade unions • Competitors Suppliers Currency exchange rates Employment rates Wage rates Government economic policies • Other countries economic policies • Changes from public to private ownership • • •

Social-cultural and technology Demographic changes Lifestyle changes Skills availability Attitudes to work Attitudes to minority groups • Gender issues • Willingness to move • Environmental issues • • • Information technology • The internet • Computerisation of processes • New production processes • Changes in transport technology • Business ethics

Triggers for Change Internal Triggers • Change of management • Change of strategy and objectives • Acquisition and merger • Downsizing and reorganisation • Rationalisation

Force Field Analysis Restraining Forces Anxiety about job security Change seems less stimulating Fear of loss of power, status Driving Forces Fresh challenge in job Improved rewards Increased job discretion

The trap of success (Nadler et al in Hayes (2007) p 94) Outcomes Sustained success Syndrome Decreased customer focus Codification Increased cost Arrogance Complacency Slower Complexity Conservatism Less innovation Environmental disequilibrium Declining performance Denial & Rationalisation Learning is disabled Do more of the same The DEATH spiral