Transcript Document

Strategy for Tourism
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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.
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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.
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Learning Outcomes
After studying this chapter and related
materials you should be able to understand:
 management of change
 methods of monitoring
 methods of control
 identification of key factors for effective strategic
management
and critically evaluate, explain and apply the
above concepts.
Case Study 11: Australia’s
framework for action on
 The Australian
Government
identified tourism as a
tourism
and climate
change
key sector that is vulnerable to climate change
concluding that:
 "the impact of climate change on infrastructure and the
natural environment has the potential to affect the tourism
industry. In some cases this could result in social and
economic impacts in regions with a high dependency on
tourism as a source of income and employment."
(Department of Resources Energy and Tourism, 2008, p .2)
 In response the Tourism Ministers established the
Tourism and Climate Change Taskforce to develop a
Framework for Action.
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
include
 Degree of change
 Organisational 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 Change
The management of strategic change must
pay attention to:
 calculation
 communication
 culture 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 change
 Identification of resisting forces
 Identification of driving forces
 Formulation of tactics to reduce or eliminate
resisting forces
 Formulation 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:
 democratic
 educative, and
 autocratic
Culture
Some of the key factors in promoting cultural
change can be summarised:
 induction programmes for new staff
 change of symbols
 use of language
 training programmes
 appointment of key personnel
 promotion and dismissal policies
 incentive 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:
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control of resources
alliances
rewards and punishments
charisma, and,
managing of change skills
Skills and methods for
managing change
Beer & Nohria (2000) distinguish between
two distinct approaches to strategic change.
They label these “theory E” and “theory O”.
 Theory E, the hard approach, is change based on
the pursuit of economic value
 Theory O, a soft approach, is change based on
the development of organisational capability.
Theory E and Theory O
Dimensions of
change
Theory E
Theory O
Goals
Economic value
Organisational
Capability
Leadership Top down, hierarchical
Bottom up and
participative
Focus
Systems and
structures
Culture, behaviour and
attitudes
Process
Planning and
implementation
Experimentation and
evolution
Reward systems
Financial
Intrinsic and Financial
Use of
consultants
Lead change
processes
Support and advise
Skills for Managing Change
 Buchanan and Boddy's (1992) study of the perceived
effectiveness of managers of change included the
following as crucial competences:
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Sensitivity to internal and external environment
Clear expression of goals
Team building skills
Networking skills
Ability to cope with uncertainty surrounding change
Communication skills
Inspirational skills
Negotiation skills
Political skills
Strategic perspective
Activity: Climate Change and
Aviation
 Air travel is a uniquely greenhouse-gas-intensive mode of transport. Over
a single journey of 1,500km, aircraft emit roughly twice as much
greenhouse gas per passenger kilometre as cars or high speed rail.
Shorter journeys produce even higher emissions per passenger
kilometre. Over a distance of 500km aircraft emit six times more
greenhouse gas than high speed rail or cars, and 12 times more than a
coach.
 The cross-party House of Commons Environmental Audit Committee
(EAC) reports that under Department for Transport’s (DfT’s) ‘best case’
scenario, aviation will grow from around 5% of the UK’s carbon emissions
today to 24% in 2050, a figure the committee considers a “substantial
understatement”
 The Tyndall Centre has estimated that with unconstrained growth, and
taking account of its full environmental impact, aviation could account for
more than 100% of the UK’s carbon budget (65 MtC) by 2050.
 (Source Conservative Party Consultation Document, March 2007)
 Your task: The radical reduction of C02 emissions from UK air transport.
Provide advice on
a. strategic objectives to achieve this aim
b. how to manage and monitor change to achieve you aims
Control Mechanisms
Control mechanisms to monitor outcomes
include
 Performance targets
 Control systems
 Measurement of performance
 Corrective feedback
Corrective feedback
The system of management control should
follow up the cycle of performance
measurement with any corrective measures
that are to be taken in the case that actual
performance does not match up to the
performance targets of the strategy. This will
involve the following steps:
 Identify performance gaps
 Identify causes of performance gaps
 Identify corrective action
 Instigate corrective action plan
Obstacles to effective
strategy implementation
 Hrebiniak identified six top obstacles to strategy
implementation that resulted from two surveys of 443
managers. These were were:
 An inability to manage change
 Poor or vague strategy
 Not having guidelines or a model to guide implementation
efforts
 Poor or inadequate information sharing
 Unclear responsibility and accountability
 Working against the organizational power structure.
Effective Implementation
 Critical Success Factors
 Pettigrew and Whipp's (1992) study of the
management of change concluded that there were
five critical success factors common in organisations
where change had been successfully implemented.
These were:
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sensitivity to the external environment.
formulation of a strategy for change.
translation of strategic plans to operational outcomes.
effective human resource management.
consistency and coherence of strategic planning.
Effective Implementation
 The 7-s Framework
 Waterman et al. (1980) claimed that effective
organisational change resulted from a successful
relationship between several factors:
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structure
strategy
systems
style
skills
staff, and,
superordinate goals
Review of Key Terms
 Management of change: The process by which strategic change is identified
and implemented.
 A frozen organisation: One which has become rigidly routinised.
 Four Cs of change: Calculation, communication, culture and compliance..
 Force field analysis: Investigates forces that are either driving movement
toward an objective (driving forces) or blocking such movement (resisting
forces).
 Theory E: Strategic change based on the pursuit of economic value.
 Theory O: Strategic change based on the development of organisational
capability.
 Performance Target: An outcome that is set for an organization or employee
to reach within a specified period of time.
 Control system: The process for monitoring progress against strategic
objectives.
 Performance measures: These include quality indicators, financial indicators
and other indicators.
 Corrective feedback: Identify performance gaps, identify the causes of
performance gaps, identify corrective action, instigate corrective action plan.
 Strategic implementation: Putting a strategy into action
Discussion Questions
1. Many airlines are resorting to strategic alliances or horizontal
mergers in moves towards more globalization. Choose an
airline and conduct a force field analysis for such a strategy.
2. Explain how success could be encouraged in implementing a
tourism destination strategy using Pettigrew and Whipp's
(1992) five critical success factors and Hrebiniak’s (2006)
discussion of obstacles.
3. Using examples from the tourism sector discuss the
importance of control systems in strategy implementation.
4. Discuss the significance of the 4 Cs in the management of
change in a tourism organisation.
5. Explain what Lewin (1952) meant by the freezing and
unfreezing process in achieving strategic change
Strategy for Tourism
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Unit 11
Managing and
Monitoring
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The End