Linking Organizational Culture, Structure, And Strategy: A Study On British Petroleum

Models of Strategic Change

Question:

Discuss About The Linking Organizational Culture Structure Strategy?

In the present scenario, change management strategies are undertaken by organizations so as they can gain competitive advantage in the market. With the management of change, the company can easily modify its operational activities according to the demand and requirement (Alavi, Kayworth & Leidner 2005). For the present report, the selected organization is British Petroleum (BP) one of the multinational oil and gas company that mainly indulge in activities related to exploration, refining, petrochemicals, renewable energy, etc. The report also will also focus on understanding the background to strategic change and how strategic change might be approached. On the other hand, the report will also assess different factors that act as driving force for implementing the strategic change within the organization.

There are various models of strategic change that might be used within the organization so that they can easily perform their operation accordant with the competitor activities. The most common used change model in the organization is Kurt Lewin change model that mainly engage in three stages unfreeze, movement and refreeze.  

The first stage is the unfrozen stage in which management recognize the need for change within the organization (Zheng, Yang & McLean 2010). Under this stage, employee examines status quo. The second stage is movement in which management develops the new attitude and behaviour among the employees so that they can easily implement the change. The last stage in Kurt Lewin change model is the refreezing stage. Under this stage employees will stabilize the change and perform accordant with the new attitude and behaviour.

Another useful model of strategic change includes Prosci’s ADKAR. This model indicates that effective change management mainly focuses on five goals such as awareness, desire, knowledge, ability, and reinforcement that support in the successful accomplishment of change within the organization.

The five goals are described as follows-

• Awareness regarding need of change
• Desire to participate and support the change
• Knowledge regarding how to change
• Ability to implement change
• Reinforcement to keep change

From the above-defined models of strategic change that is Kurt Lewin and ADKAR model, it has been evaluated that both of the models are relevant in managing change within British Petroleum (BP). With the help of implementing Kurt Lewin three-stage model, it benefits the organization in adopting the new culture and also supports their staffs and employees to gain the new behaviour and attitude so that they can easily resist the change (Balogun, Bartunek & Do 2015). Along with this, through reviewing global economic condition within UAE (United Arab Emirates), it has been assessed that implementing Kurt Lewin change model also assist the organization to sustain in the environment and attain growth.

Factors Driving the Need for Strategic Change in BP

On the other hand, another change model is Porsci’s ADKAR that is also consider as significant to BP in UAE as it allows the employees and leaders to focus on their activities that will ultimately result in driving individual change (Wirtz et al. 2016). Therefore, it is evaluated that both the change models are relevant to an organization in UAE as it assists the company to sustain in the competitive environment.

Strategic intervention is considered as an active form of activities and actions that assist the organization in enabling proper communication. Different strategic intervention techniques are often used in British Petroleum so that management can easily implement the change. It mainly includes forming alliances within the organization, cultural change within the environment, etc.

It has been further assessed that there is the significant value of using strategic intervention techniques in the cited organization as it supports the organization in managing and resisting the change correctly (Benn, Dunphy & Griffiths 2014). Along with this, it also focuses on executing proper change without any hazard and risk.

To succeed in the developed market that is United Arab Emirates (UAE) organization requires undergoing the change process. Different internal and external factors might result in bringing change within the organizational operation. For instance, BP in UAE needs to engage in change process due to their controversies related with damaging the environment, hazards to workers as well as other ineffective business practices (Van der Voet 2014). Therefore, to overcome the above activities BP requires implementing strategic change process that assists them to survive in the competitive environment. Apart from this, there are some other needs for implementing strategic change in the cited organization that is to gain competitive advantage. The need for strategic change in BP also enables them to be more focused.

BP has been enjoying significant market share and also gain competitive advantage from its competitors through implementing change within the environment and learning the actual requirement of customers (Cabrey & Haughey 2014). With the constant change, it has facilitated BP to adapt in any setting. For instance, leading oil and gas companies have undergone green to guard the environment and have turn out to be the big promoter for going green.

Different factors are driving the need for strategic change within the activities of British Petroleum it mainly includes political and environmental factor. The operational activities of BP are primarily affected by environmental aspect within UAE. The company has indulged in deepwater horizon oil spill in the Gulf of Mexico that has negatively affect the environment and different other resources (Tanner-McAllister, Rhodes & Hockings 2017). To overcome such issues in UAE Company is required to follow the environmental standard to overcome the environmental issues related to wastage and pollution.

Implications of Not Responding to Strategic Change

Apart from this, with the technological up gradation, it is required by the business organization to undertake change management process. BP must be ready to engage in technological change and adopt such changes as it might result in improving their operational activities. For instance, with the advancement in technology, BP must engage in using new machinery and tools for drilling purpose (Cameron & Green 2015). Along with this, BP has advanced their technology and engaged in practices so that they may easily find out the oil and gas.

Therefore, environmental factor, as well as the technological factor both, are considered as driving factor the easily accomplishes the need for strategic change within British Petroleum.   

It has been assessed that there are different resource implication of British Petroleum that results in not responding to the strategic change. If BP does not appropriately respond to the change, then it might adversely affect their resources such as it would influence the human resource that is the increase in employee turnover, layoffs, etc. Along with this, resource implication of BP not responding to strategic change would also impact the physical resources that are it affects non-current assets of the cited organization such as equipment, vehicles, buildings, etc.

In order to manage change effectively within BP, it is required by human resource manager to implement different strategies that would result in enhancing change within the organization (Cameron & Quinn 2005). For instance, training plays the significant role within the organization as it assists the employees and staff to get trained so that they may easily engage in responding to the strategic change.

Many organizations participate in developing the strategic plan for the organization and through which they have involved their stakeholders in the planning of change. Strategic planning must involve every employee as well as stakeholders of British Petroleum so that they may successfully plan the change (Kuipers et al. 2014).

The primary system that is used to involve stakeholders in the planning of change within BP includes functional system. This system indicates that once the organization has attained the growth now, they must engage in dividing their responsibilities so that all stakeholders of BP can easily involve in the planning of change. On the other hand, another system to involve stakeholder is through playing it straight. Under this, the basic requirements of every stakeholder is kept in mind and present them with the required information which can benefit them to implement the change successfully (Coghlan, Rashford & de Figueiredo 2015).  

Strategies for Managing Change Effectively

To manage successful change within the British Petroleum, management indulges in developing change management strategies with their stakeholders. A strategy is defined as the plan of action that supports organization in the long run with attaining the advantage in the competitive market through configuring the competencies and different resources with the major purpose to accomplish the expectations of stakeholders.

With the advancement in technology and implementing technological change within British Petroleum management must develop an effective strategy with their different stakeholders so that it might also meet their needs and expectations. Thus, the key aspect in developing change management strategy is to analyze the different stakeholders within organization whom might be impacted with implementing the change (Kavanagh & Ashkanasy 2006). Strategies for managing change within the cited firm must create visible short-term goals so that it might clearly review the change. Another developed change management strategy with stakeholder includes effective communication through which BP overcome the resistance to change in their operational activities.

BP has developed the system that is used to involve different stakeholders for successful planning of change within the organization. From the above-developed system it has been evaluated both the system has played the significant role in involving various stakeholders (Goetsch & Davis 2014). It has been further evaluated that functional system within BP has resulted in dividing responsibilities within the organization that further involve more stakeholders for planning the change. It has been evaluated that with this system every stakeholder would play the active part in planning and managing the change.

Along with this, matrix system must also be used to involve stakeholders in planning the change as under this system different personnel or stakeholders collaborate for accomplishing the specific task and activities. Thus, with the help of matrix organizational system management can easily involve different stakeholders in planning the change (Hayes 2014).

To manage resistance to change among the staff and workers it is required by the management to create an effective strategy. Creating effective strategy would support the staff to overcome the resistance and accept change within the activities.

The key strategy that is used for managing resistance to change includes enabling active participation and involvement of employees within the organization so that they may easily put forward their views regarding managing the change successfully (Jones, Jimmieson & Griffiths 2005). Apart from this, the communication strategy is also formulated by management for managing resistance to change within the BP. With the effective communication strategy management would convey the reason for implementing the change within their operational activities.  

For implementing successful technological change in BP’s operation management team must focuses on developing the appropriate model of change through reviewing the change management model framed by John Kotter. The change model basically focuses on eight different steps.

Steps in model of change
1. Create urgency	The first step in the change model is creating urgency through developing scenario that what will happen in the future. Therefore, allows employees to adopt change in their activities (Hrebiniak 2013).
2. Form a powerful coalition	Second step in change is forming power coalition that requires support from leaders and managers within BP so that they together assist employees in bringing the change.
3. Create vision for change	Another step in change model is creating vision for change that is it would result in enhancing the drilling and exploration process within BP that further result in reducing the manual work performed by their staff and workers.
4. Communicate the vision	After that management team must communicate their vision to workers so that they must gain information regarding the change (Hon, Bloom & Crant 2014). Along with this, communicating vision also results in changing the behaviour and attitude of employees within BP towards adopting the new technology.
5. Remove obstacles	Another step is to remove obstacles through hiring change leaders so that they may easily determine the people who are resisting the change and their actual requirement.
6. Create short term wins	Another step is to create short term wins so that they can motivate their employees and workers to implement change without help of others. BP analyzes the potential pros and cons of implementing new machineries and tools in the drilling process.
7. Build on change	After winning the short term goals management team analyze the results and things that need to be improved further in order to build on change.
8. Anchor the changes in corporate culture the market	The last step in the change model is to secure the adopted changes within the environment so that change in future might not impact the corporate culture.

In order to implement model for change in British Petroleum management must focuses on devising a plan. The plan mainly consists of different steps such as

• Assess- The first stage in implementing model for change must focuses on assessing the impact of change within the organization.
• Plan- After assessing the impact of change, management must engage in planning the activities so that workers within BP can easily implement the change(Balogun, Bartunek & Do 2015).
• Act- After planning the activities workers must engage in the practices that brings change within their operation.
• Evaluate- After putting all the activities into action management must engage in evaluating the result that is worker has implemented change successfully or not.
• Sustain- The last step in planning includes sustaining that is hold on to the activities so that it might not impact the future activities(Tanner-McAllister, Rhodes & Hockings 2017).

British Petroleum has undergone different changes within their environment and operational activities with the principal aim to enhance the performance of the organization. Thus, to monitor the progress of implemented change within the organization management develop appropriate measures such as-

Goal-based evaluation- Under this method; management of BP can easily monitor progress in the cited firm through assessing the result(Benn, Dunphy & Griffiths 2014). BP management sets certain goals within the organization and accomplishes them through implementing the change. Therefore, at the end of the goal-based evaluation, BP management will review whether goals have been achieved or not. 

Conclusion

From the above report it can be inferred that strategic change management is consider as an effective approach that supports the organization to change their activities accordant with the existing competitors. However, there are different strategic change models has been also used by the management to implement technological change within their operational activities.

References

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