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ACCA Strategic Professional · Strategic Business Leader · Managing strategic change

Kestrel Retail must change urgently because a competitor's online model has halved its sales. Staff are strongly resistant, and the board believes there is no time for consultation. Using Kotter and Schlesinger's approaches to dealing with resistance, which approach is most suitable, and what is its main drawback?

Explicit and implicit coercion fits best, because it is the only approach that works quickly when time is short and management holds power. Its drawback is that it can create resentment and weaken long-term commitment. Education and participation are too slow here, and negotiation can prompt further demands.

  1. AEducation and communication; it is slow and unsuitable when speed is vital
  2. BParticipation and involvement; it can take much time and produce a compromise solution
  3. CNegotiation and agreement; it is cheap and avoids any risk of others demanding concessions
  4. DExplicit and implicit coercion; it is fast but may create resentment and damage later commitmentCorrect

Explanation

When speed is essential and the board holds power, coercion is the approach Kotter and Schlesinger identify as fast, although risky because it breeds resentment. Education and participation are slow, which conflicts with the urgency. Negotiation is not cheap and may invite others to seek similar deals.

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