Strategic Changes

Strategic changes usually belong to two main categories.

• NATURE OF CHANGE.
  1. Incremental
  2. Big Bang Change
     
      
• SCOPE OF CHANGE.
  1. Realignment
     1. Adaptation
     2. Reconstruction
        
         
  2. Transformational.
     1. Evolution
     2. Revolution
  
  
  
   
• Nature of change.

This can also be explained as size of the change.

1. Incremental change
   These are the changes found most commonly in practice. These are the extension of previous strategies. These are minor changes aim to improve existing strategies according to past experiences rather than an implementation of outright new strategies. It does not change organizational culture (values and belief) and processes(activities in the ordinary course of business).
   
    
2. Big bang change
   These are the changes found less commonly in practice. These are the implementation of new strategies. These are major change aim to respond to threat (forced takeover) and ensure the survival of business.

• Scope of change
  
  
  
  1. Realignment
     
     
     
     1. Adaptation
        It is associated with incremental change. It is merely an expansion of existing business activities, it does not affect business processes, strategies, culture and risk materially so that it can be continued as before.
        
         
     2. Reconstruction
        It is associated with big bang (major) change. This could be in response to business survival like response to fall in revenue by outsourcing existing operations or implementation of new automated systems. It changes the business strategies, processes, risk and culture to some extent.
        
         
  2. Transformation
     
     
     
     1. Evolution
        It is associated with incremental change. It is an transformation of business in existing market into difference niche (sub-category). In other words business is still trading in the same market (software industry) but in different product line (from accounting to engineering software) of which business has no previous experience. So strategies, processes, culture and risk are changed to some extent.
        
         
     2. Revolution
        It is associated with big bang (major) change. Example of this could be diversification of the business into new industries of which the business has no previous experience. It does affect the business processes, strategies, culture and risk materially so that all these can be implemented from zero.
        
        
        Experience is the differentiator how the change is perceived. Different parties involved in making strategic decision may perceive change as per their objectives and past experiences.