Risk Management and Strategic Planning

Unit 11 Managing

and Monitoring

Reading

Book Ch

Tribe, J, (2010) Strategy for Tourism, Goodfellow Publishers, Oxford.

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Capon, C. (2008) Understanding Strategic Management, Prentice Hall: Hemel Hempstead.

11

Tribe, J. (2005) The Economics of Recreation, Leisure and Tourism, Butterworth Heinemann, Oxford.

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Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall: Hemel Hempstead.

14

Learning Outcomes

After studying this chapter and related materials you should be able to understand:management of changemethods of monitoringmethods of control

and critically evaluate, explain and apply the above concepts.

Discussion Point

Why is it difficult to implement change? How can we measure the success or

failure of a tourist destination?

Management of Change A key challenge for

many tourism organisations is that their structures were generally designed to solve yesterday's problems.

Challenges to management of change includeDegree of changeOrganisational

adaptivity

Management of Change

To compound this problem organisations may become "frozen" in a particular state (Lewin, 1952), not least because once a particular organisational structure and culture has evolved there is a strong tendency for structural and cultural reproduction. An organisation will tend to recruit, induct and reward its staff in line with its established culture, and the organisation will stay the same.

Unfreezing and Refreezing Lewin's model for creating successful

organisational change identified three important stages. First the unfreezing of current organisational

behaviour patterns is necessary in order to make the organisation more receptive change.

Second, Lewin identified the importance of movement, which involves the carrying out of change or the reconceptualisation of the organisation.

Finally, Lewin noted the importance of refreezing the organisation so as to institutionalise the change.

The Four Cs of ChangeThe management of strategic change

must pay attention to:calculationcommunicationculture and,compliance

Calculation

Calculation involves the identification of the likely impacts of a strategy both internally and externally to the organisation with a view to discovering where critical blockages may occur. These may inhibit the implementation of

change and are known as resisting forces. At the same time it is important to record

those factors (driving forces) which may help promote the desired strategy.

Force Field Analysis

Force field analysis (Lewin, 1935) is a method of examining this. Its aim is to enhance the management of change by generating a tactical approach (Nutt, 1989).

The steps in force field analysis are:Identification of planned changeIdentification of resisting forcesIdentification of driving forcesFormulation of tactics to reduce or eliminate

resisting forcesFormulation of tactics to encourage driving

forces

Communication

Effective communication is at the heart of successful strategic implementation.

Even organisations which engage in a systematic process of strategic planning may overlook this vital aspect so that the strategy may remain the property of senior management and its circulation may be intentionally or unintentionally restricted.

Different models of communication of strategy may be located on a continuum which includes:democraticeducative, andautocratic

Culture

Some of the key factors in promoting cultural change can be summarised:induction programmes for new staffchange of symbolsuse of languagetraining programmesappointment of key personnelpromotion and dismissal policiesincentive schemes

Compliance

Compliance addresses the question of how strategic change can be achieved, perhaps in the face of opposition. Change may involve deploying political processes, identifying and utilising sources of power (Mintzberg, 1983), and constructing a power base from which to operate. Key issues for achieving compliance include:control of resourcesalliancesrewards and punishmentscharisma, and,managing of change skills

Control Mechanisms

Control mechanisms to monitor outcomes includePerformance targetsControl systemsMeasurement of performanceCorrective feedback

Risk Management and Strategic Planning

Unit 11 Managing

and Monitoring The End