Trigger for Change: Understanding External Factors of Organizational Change

Justyna Wachulka-Chan

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PDF Summary​

This PDF explores change management, detailing the triggers that drive transformation, including internal and external factors. It covers organizational culture, the Cultural Web, and McKinsey’s 7S model to evaluate impact. The document highlights resistance to change and strategies like Kotter & Schlesinger’s framework for effective adaptation. Essential for understanding strategic shifts and managing change efficiently.

Reasons for Change

  • Change is inevitable and constant in a dynamic environment.

  • Driven by “triggers,” which can be internal (e.g., leadership shifts, reorganizations) or external (e.g., economic trends, technological advancements).

  • Key questions in change management: What to change? What to change to? How to execute it successfully?

Triggers for Change

  • External triggers: Identified using PEST Analysis (Political, Economic, Social, Technological) and Porter’s Five Forces (Competitive rivalry, New entrants, Supplier power, Buyer power, Substitutes).

  • Internal triggers: Leadership changes, organizational restructuring, workforce adjustments, technological shifts.

Types of Change

  • Classified based on scope and speed of change.

  • Can be adaptive, evolutionary, reconstructive, or revolutionary.

Organisational Culture

  • Defines shared beliefs, values, and behaviors within an organization.

  • Cultural Web helps assess which aspects must change for successful transformation.

  • Key considerations: leadership, decision-making power, symbols, organizational structure, control mechanisms.

McKinsey’s 7S Model

  • Hard factors: Strategy, Structure, Systems.

  • Soft factors: Shared Values, Skills, Staff, Style.

  • A change in one factor may create ripple effects across others.

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About the Author

Justyna Wachulka-Chan

Justyna is a seasoned professional with 8 years of dedicated experience in the computer-based accounting and finance certification coaching industry. She is committed to providing students with the knowledge and tools necessary to succeed on their exams.

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