1.A Discuss the Different Models of Strategic Change.

A business needs to evolve continuously in order to survive as well as to grow. For a

business to evolve, it needs to make and go through changes. Without a proper change
management model, the success rate of those changes has to be left out for hope and luck. In
order to make the taken change a success, the business needs to understand and apply its change
management model in an appropriate manner. However, analyzing the changes, the business
wants to make and observe how the rest of the company is affected. It can prepare the teams in
advance and help them through the transition until the new method becomes a routine. Whether
the business is changing software, updating technology, hiring new staff, or starting a new
project, everything can be benefitted from a right change management strategy.
Basically, strategic change management is the process of managing change in a structured
and thoughtful way in order to meet organizational goals, objectives and missions.
The following are the four steps of Strategic Change Management process:
 Environmental scanning
 Strategy Formulation
 Strategy Implementation
 Evaluation and control

In order to guide through any change management process there are 8 change
management models which are described below.

I. Lewin’s Change Management Model:

 Each change management method follows the principles laid out above, but Lewin takes
a deeper view on the need for change. His theory is that we need to “unfreeze” the entire way
that things are done, make our changes, then “refreeze” to lock the new model into our
company’s mindset.

Although Lewin’s method isn’t too useful for minor changes, if a serious overhaul to one
of our systems or core pieces of technology is required then this is a fantastic way to dig up
everything that could be affected.

II. McKinsey’s 7-S Model

Instead of supporting deep analysis and large shifts, the McKinsey 7-S model is great for
analyzing how coherent the company is. When we are aware that we need to make a change in
our act, but we are not totally sure of the ways to take, then this is the appropriate change
management model.

By analyzing the following seven aspects of a company and how they affect each other,
we need to highlight the changes we need to make to create a united approach to business:
  Strategy
 Structure
 Systems
 Shared values
 Style
 Staff
 Skills

Much like Lewin, this a good model to use when you’re trying to cover every part of your
company that your change affects, especially if you want to focus on your employees and how to
get them to adopt it.

III. Kotter’s Theory

Kotter takes a rather human-centric approach, with an 8-step method to inspire initial
action by explaining the need for change, then guiding it through by keeping up that momentum.
 In essence, you meet with the key figures affected by your change, create a sense of
urgency by teaching them why it’s important and what the benefits are, then use short-term
goals to keep up the enthusiasm for the change. After all, it’s easy to start a project, but unless
you’re getting a steady drip feed of positive feedback it can be difficult to see it through to the
end.

IV. Nudge theory

While the previous methods are highly structured, the so-called “nudge” theory takes a
slower, more passive role in bringing about change to avoid alienating people with massive
sudden shifts. This is done by gently suggesting or coaxing employees to move in the right
direction rather than directly instructing them what to do, with the idea that they will consider
the eventual changes to be their own idea and have a greater drive to see them through.

While it’s a little vague and difficult to employ (and some would even say manipulative),
the idea of letting your employees grow and have an active role in changing your business for the
better is a great way to make them more loyal, as they can see their input being deployed directly.

V. The ADKAR Model

 ADKAR pays more attention to the individual, with its five-element form-like structure
serving best as a kind of questionnaire you can hand out to our team to gather feedback and
assess how effective our changes were. As we’d expect, this is a great way to gather feedback on
our changes to alter how we do things in future (but not necessarily plan in advance).

There’s nothing stopping from using the model to plan out our changes, but the vague nature of
each step leaves it a little lacking compared to some other models, hence why it’s best used to
gather feedback.

VI. Bridges’ Transition Model

Bridges’ Transition Model dives into the emotional reactions of team and uses those to
cement the results. By separating the reaction that most people feel when faced with change
into three stages (Ending, Losing, and Letting Go, The Neutral Zone, and The New Beginning),
Bridges’ gives you a solid foundation to guide employees through the various emotions that will
likely accompany the change in order to let us effectively deploy them.
 VII. Kubler-Ross’ Change Curve

Kubler-Ross’s Change Curve is also emotion-driven, but is quite inspired by the titular
psychiatrist’s five stages of grief, and explains how to guide employees through times of
upheaval. By identifying what stage of the process an employee is in, we can tailor a response to
them to guide them through the rest of the process.

The model can also be used to roughly estimate the impact of a change on employees and
their productivity. However, the results won’t be 100% accurate, since one responds to changes
differently from the other, but we can at least try to manage our business around the potential
impact so that we’re not taken off guard and unexpectedly set back.

VIII. The Satir Change Model

Finally, Virginia Satir’s change process is less of a “how-to” and more of an example of
what our progress might look like upon making a change. Her model shows the general effect of
a change on our performance, the ensuing chaos, and the resulting transformation to eventually
reach a new height of productivity. This one’s great for tracking our changes, but also for
predicting how long your productivity will be lower as a result of the change.
1.B Evaluate the change management process adopted by General
Motors with respect to models of strategic change.

Need for strategic change in General Motors

General Motors is a fallen giant. Glory of the past from being a great market leader to
bankrupt company General motors has come a long way. In 1980s GM was the top car
manufacturer in the USA until the arrival of the Japanese cars. The Japanese sold cheap and
better cars. GM failed to realize the change in the industry and technology and constantly lost
market share to the Japanese companies. Even with government support the company filled
chapter 11 bankruptcy in 2009.The strategies of the Japanese and GM can be compared with
each other and get to what GM needs to do in order to get its former glory.

Kotter's model for change for General Motor

Kotter gives a model of change in the organization in which the stakeholders are
empowered to make change for themselves. I shall use this model to explain how GM can bring
about change in the organization with the help of its stakeholders.

Kotter 8-step change model

Kotter introduced the ‘8-step Change Model’ to improve an organization’s ability to
change and to increase its chances of success. By following this step plan organizations can avoid
failure and become adept at implementing change. As a result, organizations no longer need to
adjust the changes and they will increase their chances of success.

Step 1 – Create a sense of urgency

This first step of the 8 step Change Model is the most important step according to Kotter.
By making employees aware of the need and urgency for change, support will be created. This
requires and open, honest and convincing dialogue. This convinces employees of the importance
of taking action. This could be accomplished by talking with them about potential threats or by
discussing possible solutions.
Step 2 – Create a guiding coalition
It is a good idea to establish a project team that can occupy itself with the changes the
organization wants to implement. This group manages all efforts and encourages the employees
to cooperate and take a constructive approach. Preferably, this coalition is made up from
employees working in different jobs and positions so that all employees can rely on the group
and identify themselves with the team members. Because of the open character, the groups can
also function as a sounding board, which enables an open communication.
Step 3 – Create a vision for change
Formulating a clear vision can help everyone understand what the organization is trying
to achieve within the agreed time frame. It makes changes more concrete and creates support
to implement them. The ideas of employees can be incorporated in the vision, so that they will
accept the vision faster. Linking the adopted vision to strategies will help employees to achieve
their goals.
Step 4 – Communicate the vision
The most important objective of step 4 of the 8 step Change Model is to create support
and acceptance among the employees. This can only be achieved by talking about the new vision
with the employees at every chance you get and by taking their opinions, concerns and anxieties
seriously. The new vision must be fully adopted across the entire organization.
Step 5 – Remove obstacles
Before change is accepted at all levels, it is crucial to change or, if necessary, remove
obstacles that could undermine the vision. By entering into dialogue with all employees, it will
become clear who are resisting the change. To encourage acceptance of the vision by the
employees, it helps when their ideas are incorporated and implemented in the change process.
Step 6 – Create short-term wins
Nothing motivates more than success. Create short-term goals so that the employees
have clear idea of what is going on. When the goals have been met, the employees will be
motivated to fine tune and expand the change. By acknowledging and rewarding employees who
are closely involved in the change process, it will be clear across the board that the company is
changing course.
Step 7 – Consolidate improvements
According to Kotter many change trajectories fail because victory is declared too early.
However, change is a slow-going process and it must be driven into the overall corporate culture.
Quick wins are only the beginning of long-term change. An organization therefore needs to keep
looking for improvements. Only after multiple successes have been achieved, it can be
established that the change is paying off.
Step 8 – Anchor the changes
The last step of the 8 step Change Model. A change will only become part of the corporate
culture when it has become a part of the core of the organization. Change does not come about
by itself. Values and standards must agree with the new vision and the employees’ behavior must
provide a seamless match. Employees must continue to support the change. Regular evaluation
and discussions about progress help consolidate the change.
Implementation of 8 step of changes in General Motors
Step 1: Create urgency
GM it is not very difficult to paint a grim picture as the next step to bankruptcy is
liquidation. The decline in the performance of the company has been a question mark for a long
time now. Thus, in GM people are ready for change and stakeholders support the management.
Now there is need for discussions so that the ideas and the wills of the stakeholders can be
incorporated in the change process.
Step 2: Coalitions
General Motors they have to find leaders in order to bring change. Recognition of the
people who will help GM to evolve and to accept the changed processes is necessary, if it wishes
to make any type of change in its strategy.
Step 3: Vision for change
General Motors the mission statement is quite clear "G.M. is a multinational corporation
engaged in socially responsible operations, worldwide. It is dedicated to provide products and
services of such quality that our customers will receive superior value while our employees and
business partners will share in our success and our stock-holders will receive a sustained superior
return on their investment." But unfortunately, General Motors has not been able to deliver. The
vision of the General Motors needs to be communicated effectively through the organization.
Every stakeholder needs to believe in the mission statement of General Motors.
Step 4: Communication of vision
General Motors the management should take responsibility of communicating process of
change through the organization. A process of change developed from the input of stakeholders
is easier to communicate back.
Step 5: Remove obstacles
In General Motors the inner management has failed to provide change in the
organization. The change in GM can be induced from the outside; perhaps a change agent will
help GM overcome change barriers. Another good way to bring about change is to award the
people who embrace the change.
Step 6: Create short term objectives
General Motors that management need to step up and divide their long-term objectives
into the short-term goals. The management should make the stakeholders believe that they are
capable of changing the business for the better. The most important stakeholder of GM is the
government. The government needs to know that that GM can stand on its feet, for it to bail out
the company.
Step 7: Build on the change
The management of General Motors should not stop at making the government believed
that they deserve a bailout, but should make efforts to build on the changed processes.
Step 8: Change in corporate culture
General motors will need to change the culture and introduce a fresh method to succeed
in an unattractive industry. At this point the employees of General Motor will not be motivated;
the management needs to bring faith back into the employees.

Recommendation
A. Production of the Right and Fuel-Efficient Automobiles/Poor Product Lineup
B. To empower dealers, GM need to be more democratic and less controlling
B. Public Perception Improving

Conclusion
After facing the intense competition and bankruptcy the general motor now improved
again the company activities, and still the world largest car manufacturing company, the
company has gotten a change recently which has also improved the working condition of the
company, but the company will must see the weakness and public perception to increase the sale
and market shares.
1.C Examine the strategic interventions techniques used by gm to focus
on customer, car and culture.

General Motors was greatly affected by the japans based company Toyota was the
emerged competitors in that time, the north America is still the biggest market place for GM
where the company sold out in recent year roundabout 2.9 million and the nearest competitor is
Toyota and china-based companies, these competitors with great extent disturbed the total
profitability of the general motor. The company faced a huge financial crisis which with great
extent collapsed the cash flows of the company. Another force for change to GM was the high
wages cost to employees as the company was paying $74 per hour as compared to Toyota $44
per hour, because GM was an agreement with trade union. And the GM was compelled to run
the plant with minimum 80% capacity whether it was needed or not, these things play an
important role in the bankruptcy of the company.

Change Management Process of General Motor

General Motors decided to bring changes on some areas of the business, these were
included, structural change, cost change, process change and cultural change. While going on
change management the GM, the company took some steps to adopt change these are the most
recent change which the company had taken.

1) Cost Cutting
The first steps which was taken by the GM is about cost cutting, the company has reduced
its cost of some brands to maintain the profit level, such as the Saturn and hammer, by keeping
the other company cost. Similarly, the company also cut pay of employees which was the major
problem to company. The company has achieved the target of cost cutting up to 15 billion in
recent year.
2) Cultural Change
The general motor also changed the culture of the company, the GM removed it
automotive product board, and automotive strategy up to 8 men board decision making team
which were responsible to report directly to CEO. The main objective of such change is to speed
up the day to day decision making process. The GM also changed the culture to improve the
efficiency of the employees and make accountable and responsible one.

Problems to Change Process

In change management process the GM faced a variety of problems
1) Problems in Cultural Change
The cultural plan was based on top down approach, which ignored totally the involvement
of the employees as compared to other companies, some suggested that the company has not
down top approach, in which employees feel satisfaction, so this regard the company
empowered the employees by introducing in tailoring the down top approach. Rather than
merely telling to employees what they do.
2) Problem with Cost Cutting
As the cost cutting has an important place in the change management but it was faced
great problem from the agreement of trade union, as the company was an agreement with not
lowering the pay of the employees and maintain the capacity level.

Results of the Change Process

As we have discussed that the General Motors had adopted changed previously also but
these changes are recently those changes which adopted by the company in the year 2009. The
results of the changes are as under.
1) Result of Cost Cutting
The result of cost cutting of GM seems from its employment figure of 98 to 2009, it was
reduced from 226000 to 101000workers, and now the company is concentrating on sale rather
than to further cut off, and also the company is deciding to reduce the worked force of the factory
from 6oooo to 4oooo.And it will certainly lead to cost saving to the company.
2) Result of Cultural Change
The general motor had also achieved good result from cultural change, and the
employees now becoming aware about the responsibility and accountability, as well as the
company also empowered the employees to give better productivity.

Effectiveness of the Change Strategies

As we have discussed above that the general motor adopted two main strategies for
change management, recently one was cost cutting strategy for change management and other
was cultural change management strategy, the company adopted two other change strategies
but these are the most recent, by developing such strategies the company has achieved its
market shares in north America again, as the company was threatened by the emerging of
competitors in the automakers industry but the company decided to bring changes and now the
company again in better position and he again maintained the brand of core products, beside of
these the company also achieved the cost benefits by implementing these change strategies in
the company.

CONCLUSION
After facing and abiding the severe competitions as well as the bankruptcy, General
Motors improved their company activities again and managed to remain world’s largest car
manufacturing company. Moreover, the company has gone through a change recently which has
improved the working condition of the company as well, but the company must see the
weaknesses and public perception in order to increase the sales and market shares. However,
before formulating any strategy, GM should make SWOT analysis to gain competitive advantages
in the market place of today’s era.