Embracing and Pursuing Change
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Embracing and pursuing change
Introduction
With the changing expectations of customers, organisations constantly need to adapt to remain competitive. When faced with such pressures for change, managers may look for situations which are familiar to them. This may involve improving the ways in which they operate, but only little by little. This is called incremental change. The danger is that improving little by little might not be enough. They need to adapt to all of the bigger changes in the environment of that business as well. If they don’t, what happens is strategic drift. When an organisation experiences strategic drift, it does not make strong and radical decisions to deal adequately with all of the changes in its business environment. To avoid strategic drift, managers within organisations have to embrace change fully. This means building a responsive organisation. This case study focuses upon AEGON in the UK, part of the AEGON Group, one of the world’s largest life insurance and pensions companies. AEGON owns pensions, life insurance, asset management and adviser businesses in the UK. The case study illustrates the success that embracing and pursuing change has brought to AEGON in the UK. It is helping AEGON move towards its goal of becoming ‘the best long-term savings and protection business within the UK’.
CURRICULUM TOPICS • Business strategies • Change management • External business environment • Business culture
GLOSSARY Incremental change: improving the way in which an organisation meets the external forces within its business environment little by little. Strategic drift: situations in which an organisation’s strategy does less and less to face the changes within the business environment. Asset: something of worth to an organisation e.g. people, cash, financial claims on others, machinery, buildings. Goal: general statement of purpose that falls in line with an organisation’s broader mission.
The AEGON Group has
Embracing and pursuing change
Introduction
With the changing expectations of customers, organisations constantly need to adapt to remain competitive. When faced with such pressures for change, managers may look for situations which are familiar to them. This may involve improving the ways in which they operate, but only little by little. This is called incremental change. The danger is that improving little by little might not be enough. They need to adapt to all of the bigger changes in the environment of that business as well. If they don’t, what happens is strategic drift. When an organisation experiences strategic drift, it does not make strong and radical decisions to deal adequately with all of the changes in its business environment. To avoid strategic drift, managers within organisations have to embrace change fully. This means building a responsive organisation. This case study focuses upon AEGON in the UK, part of the AEGON Group, one of the world’s largest life insurance and pensions companies. AEGON owns pensions, life insurance, asset management and adviser businesses in the UK. The case study illustrates the success that embracing and pursuing change has brought to AEGON in the UK. It is helping AEGON move towards its goal of becoming ‘the best long-term savings and protection business within the UK’.
CURRICULUM TOPICS • Business strategies • Change management • External business environment • Business culture
GLOSSARY Incremental change: improving the way in which an organisation meets the external forces within its business environment little by little. Strategic drift: situations in which an organisation’s strategy does less and less to face the changes within the business environment. Asset: something of worth to an organisation e.g. people, cash, financial claims on others, machinery, buildings. Goal: general statement of purpose that falls in line with an organisation’s broader mission.
The AEGON Group has