INTERNATIONAL COLLEGE OF
BUSINESS AND TECHNOLOGY
PROFESSIONAL DIPLOMA IN
STRATEGIC MANAGEMENT & LEADERSHIP (Edexcel BTEC Level 7)
ASSIGNMENT COVER SHEET 2013/2014
Task
01
Write
a report not more than 3500 words covering the criteria given below by
analyzing a strategic change you think your organization should implement. The strategic change can be either a change
within a department, SBU or an entire organization.
- Discuss
different models of strategic change available for an organization and
critically analyze them to identify the most appropriate model for the
above change considering the current business context (Need to analyse at
least 03 models highlighting the differences and similarities)
(LO 1.1 / LO 1.2)
- Critically
discuss the importance of making the above change, asses the factors that
are driving the change and asses the resource implications which make the
organization not respond to change
(LO 2.1 / LO 2.2 / LO 2.3)
- Assess
the value of using strategic intervention techniques in organisations
(LO 1.3)
- Develop
a change management strategy which will involve stakeholders for the above
change, develop systems to involve stakeholders in the planning of change
and critically evaluate the systems used to involve stakeholders in the
planning of change
(LO 3.1 / LO 3.2 / LO 3.3)
- Create
a strategy for managing resistance to change
(LO 3.4)
- Develop
appropriate models for change, plan to implement a model for change and
develop appropriate measures to monitor progress
(LO 4.1 / LO 4.2 / LO 4.3)
Introduction
The company which has been selected for this
assignment is Hayleys Advantis Limited. Hayleys Advantis Limited is a leading
logistics service provider in Sri Lanka with connections to the international
logistics, freight forwarding and shipping lines. The service provided from
Hayleys Advantis Limited includes integrated logistics services which includes
inland transportation of goods, energy support services, other transportation
services, international freight management services which includes moving goods
through shipping lines and airline transportations, marine services that
include container vessels management, and harbour terminal services. The vision
of Hayleys Advantis Limited is ‘To be Sri Lanka’s logistics inspiration’. The
assignment will discuss on the theoretical and practical aspects of managing
organisational change in Hayleys Advantis Limited.
1. Different models of strategic change available
for an organization and critically analyse them to identify the most
appropriate model
Among many theoretical models of change that can be
applied to make changes in the Hayleys Advantis Limited organisation, the 8
steps to change by Kotter, Three stages change management model by Kurt Lewis
and ADKAR model can be identified as three main models that can be used for
managing changes in Hayleys Advantis Limited organisation. The change that has
been proposed for the organisation is to change the current ERP system new an
updated ERP system where the employees will be provided with new user
interfaces to manage their work in offices. Employees who are providing their
contribution as manual labour will not have a higher impact from the change as
the change will focus on people who are using the computerised ERP system (Hayleys
Advantis, 2015).
8 steps to change by Kotter model has steps that
have its first three steps which focus on freezing the organisation, second
three steps to make the changes happen and then the final step for refreezing
the organisation. In the first step, urgency for change is increased. In that
people are inspired and motivated support the change by showing the benefits
they will receive from changing to the new ERP system. The second step is
building the guiding teams where properly qualified employees at the position
those will be impacted by the changes. This will include aligning the
operational teams and other support teams of the Hayleys Advantis Limited.
Third step is creating the vision for the change. In the case of Hayleys
Advantis Limited, the vision will be change the ERP system for receiving better
operational outcomes and make the business process smoother. Then the fourth
step is communicating the vision to the organisation. Fifth step of the model
is empowering action. Empowering action includes removing the obstacles for the
change and recognises progress. This step will include providing training and
basic demonstrations of the new ERP system. 6th step is creating
short term wins. This will be achieving the systems implementation steps (Kotter¸
2006). Not letting go and make the changes reinforce are the next two steps. In
those two, the system will be monitored and support will be provided (Senior
and Fleming, 2005).
Kurt Lewis has introduced the model with three
steps, unfreeze, change and refreeze. In unfreeze, the change will be
thoroughly investigated and understood. The actions that were carried out in
the first three steps of Kotter’s model will be performed in the unfreeze
phase. The second phase is change phase, in that switching to the new ERP
system will be done and the employees will be using the new system instead of
the old one. Then the refreeze will be done where stability of the new system
will be increased and people will get comfortable with their routine.
The ADKAR model is another change model that can be
used to manage change which has a different step of steps than the previous
two. In ADKAR model, five activities are carried out. Those include,
1. Awareness
– increasing awareness about the new system and its benefits
2. Desire
– motivating the employees to reach for the changes which will benefits them
and make their work easier
3. Knowledge
– providing product knowledge for the employees in the new ERP system
4. Ability
– providing practical training for the employees for the employees of Hayleys
Advantis Limited to use the new ERP software that are relevant to them
5. Reinforcement
– making sure that the employees are taking the best use of the systems
When the models are compared, it can be seen that
Kotter’s model of change and Kurt Lewis model has similarities of the process
even though the steps taken are slightly different. But the ADKAR model has
provided a clear and better understanding model which can easily be implemented.
As the five phases of the ADKAR model also match the type of the change that
needs to be implemented in Hayleys Advantis Limited (Wren, 2008). Therefore a
decision can be made to use the ADKAR model as the change model for Hayleys
Advantis Limited.
2. Discuss the importance of making the above
change, asses the factors that are driving the change and asses the resource
implications which make the organization not respond to change
Importance of making the above change
The change that has been proposed includes giving
new ERP software systems for the employees of the organisation which are
relevant for them to manage their work. This will include updated logistics
management systems, management information systems, human resource information
systems, and customer relationship management systems etc. using of the systems
for the change will have several advantages for the Hayleys Advantis Limited
organisation.
The ERP systems will give complete visibility in to
all parts of the business such as Human resource management, logistics
management, purchasing management, operations management and all other business
functions of the Hayleys Advantis Limited so that the management will be able
to easily monitor the changes and analyse the business requirements. It will
help to build more coordination and coherent workflow in the organisation. The
ERP systems will be connected to each other and therefore the systems will
allow building relationships between the business units of the organisation so
that mistakes that happen due to lack of coordination will be reduced (French and
Bell, 2001).
Management Information reports can be easily created
with the ERP systems and therefore the management of Hayleys Advantis Limited will
be able to keep track of the business performance easily and in a convenient
way.
Business decision making will be made easier by the
ERP systems as they are able to track down the current business flow and forecast
the future of the business flow. That information can be used by the management
to support the business decisions so that the business can be developed.
The factors that are driving the change
Increasing
demand – as one of the popular and highly reputed logistics
service provider in the country, the Hayleys Advantis Limited keeps developing
the demand for services day by day. Therefore the management and the directors
of the organisation have understood that more efficient systems and developed
working systems are needed for the employees perform better and match the
supply of service to the demand they have. And it also includes developing the
business with help of more human workforce.
Performance
development – using new ERP systems that are
updated with the newest technologies and the more efficient techniques have
been proven to increase the organisational performance. As a service
provisioning organisation, Hayleys Advantis Limited has a higher requirement of
efficient work as efficiency is a key quality in logistics service. Need of
more efficiency can also be identified as a driving force for a new ERP system.
Need
of higher revenue – higher revenue generation is also a
strategic goal of Hayleys Advantis Limited as an organisation. It includes
generating more sales, generating more income and finally developing the
business as a whole unit. As the ERP systems have the ability of performing
these activities directly and indirectly, the organisation has identified the
change as an essential factor.
Resource implications which make the organization
not respond to change
Human
resources – lack of expert and highly skilled human resources
is one of the resource implications that have made the Hayleys Advantis Limited
reluctant for the change. The employees those working in the departments have
been using the old ERP systems for a long time and they have become very
familiar with those systems. And the employees do not have hands on experience
with the new or complex ERP software package. Due to lack of skilled employees,
the Hayleys Advantis Limited has shown low responses for the change.
Physical
resources – there are hardware and other physical resources
that are also need to have when the new ERP system is implemented in the
Hayleys Advantis Limited. This will include new computer systems that are
capable of installing the advanced ERP system. Therefore the old computer
hardware will not support the new change.
Financial
resources – having to purchase new hardware systems, provide
training for the employees and also purchase of the ERP software will incur expenses
that are out of the normal budget for the year. Therefore the lack of financial
resources will also be another factor for the organisation show low responses
for the change.
3. The value of using strategic intervention
techniques in organisations
Use of the strategic intervention techniques for
managing the change process of the Hayleys Advantis Limited can have several
benefits and advantages for the organisation itself and for the employees who
are working in the organisation.
Team
building consensus and conflict – getting the consent
of all the employees that are working in the team of the Hayleys Advantis
Limited organisation and getting consent for the change from all the employees
who will be affected from the change will be one of the intervention techniques
that can help the changes be more effective. As the change actions have been
taken with the consent of the employees, they will be working towards applying
the changes to the system on their own.
Contingency
theory – use of the contingency theory in the Hayleys
Advantis Limited will allow the management of the Hayleys Advantis Limited to
use different management styles and strategies to match the background of the
business problem throughout the change process (Kotter¸ 2006). This will allow
making flexible and more effective decisions throughout the change management
process.
Taking
proactive actions – taking proactive actions in the
organisations such as providing training for the employees the systems are set
up, purchasing the hardware requirements beforehand in order to avoid waiting
time for processing will be some of the proactive actions that can be taken by
the Hayleys Advantis Limited organisation. These will reduce the processing
time in the change management process it will allow the organisation to make
the process faster and more convenient for the employees and also to achieve a
higher productivity level at the same time.
4. Develop a change management strategy which will
involve stakeholders for the above change, develop systems to involve
stakeholders in the planning of change and critically evaluate the systems used
to involve stakeholders in the planning of change
Develop a change management strategy which will
involve stakeholders for the above change
A stakeholder analysis can be conducted to identify
how the stakeholders of the project should be managed.
Identify stakeholders –
The stakeholders of the change process at Hayleys
Advantis Limited for switching to new ERP system solution will include,
1. Employees
2. Supervisors
3. Middle
managers
4. IT
officers of the company
Stakeholder
|
Responsibilities
|
Strategy
|
Strategy
explanation
|
Employees
|
Adapting
according to the new systems, being the primary impacting group of the change
process at Hayleys Advantis Limited.
|
Manage
closely
|
The
employees of the Hayleys Advantis Limited will be provided inductions,
presentations, meeting, group training sessions and also practical training
sessions to adapt to the new systems
|
Supervisors
|
Providing
supervision for the change activities and making sure that the short term
targets are achieved
|
Keep
informed
|
The
supervisors will be provided information about the project schedules,
important targets and special deadlines to be met
|
Trainers
|
Trainers
will train the employees for the new ERP systems and will make sure that
employees are able to handle the systems independently
|
Keep
satisfied
|
The
trainers will be given instructions on what should be done and how the
training programmes need to be organised.
|
IT
officers
|
Setting
up the new ERP systems and being responsible for procurement of the hardware
items those will be needed for the project.
|
Monitor
|
Instructions
will be given for the IT officers of the Hayleys Advantis Limited
organisation how the purchases should be made and what are the new ERP
systems that will need to be set up in different departments of the
organisation.
|
Develop systems to involve stakeholders
Meetings
– meetings will be one of the main methods the management of Hayleys Advantis
Limited will need to use as a strategy to get the stakeholders of the business
involved for the change management approach. Meeting will include gathering the
employees of the Hayleys Advantis Limited and the management of the
organisation to share the idea, thoughts and views about the change that is
about to be carried out in the organisation. at first the management can
provide information on what are the changes that will be made and their impact
(Weisbord¸ 2004). And then the employees have the freedom to express their
thoughts on the discussed items.
Group
facilitation – having employees in group
facilitation in the organisation will be another method that can be used to involve
the stakeholders for the change management process. With group facilitation,
the employees will be allowed to gather as teams and present the problems they
will be facing as a result of the change process. This will allow the employees
to receive solutions and clarify the issues related to change that is about to
take place.
Delegation
– delegation of authority is another effective and result oriented method of
involving the stakeholders of the Hayleys Advantis Limited. When the
stakeholders of the change process such as employees, supervisors, managers,
trainers and stakeholders outside the organisation are given authority for
tasks and processes of the change process, they will be holding more
responsibilities and the stakeholders will be in charge of the changes. This
will make the stakeholders learn more about the change process at Hayleys
Advantis Limited and take actions on behalf of the organisation (Rothwell,
2005). Therefore using delegation of authority can be seen as an effective
method that will get the stakeholders involved in the change process in a
better way.
5. Create a strategy for managing resistance to
change
Following strategies will be carried out in the
Hayleys Advantis Limited organisation for managing the employee resistance for
the change management process at the organisation.
Objective
– reducing and minimising the resistance for changing over to the new ERP
system at Hayleys Advantis Limited.
Time
frame – within the system transition period (1 month)
Training
and education – providing training and providing
education for the employees of the organisation is one of the most effective
actions that can be taken to reduce resistance. With the educational programmes
and training programmes, the employees of the Hayleys Advantis Limited
organisation will be able to get a better understanding of the change that is
about to take place and how the employees of the organisation will be affected
from the change. With trainings and education programmes, the employees will be
more confident about the new working systems they have to work with and
continue the operations (Anderson, 2009).
Taking
feedback from the stakeholders – taking feedback from
the stakeholders and making changes for the change process and activities
related to the transition process will be another method that will help to
reduce the resistance of the employees. With that, the employees will be able
to express the difficulties they have face in the process and get help from the
organisation to reduce the difficulties they face. Taking feedback from the
employees will help to mitigate the difficulties and build confidence among the
employees which will then help to reduce the resistance for change in the
organisation (Smith, 2002).
6. Develop appropriate models for change, plan to
implement a model for change and develop appropriate measures to monitor
progress
Change model
This part of will focus on applying the selected
model of change for the Hayleys Advantis Limited organisation, preparing the
environment for implementing the change process and then the methods on how to
assess the progress of the change process.
The strategic change model that has been selected to
use is the ADKAR change management model. The ADKAR model will be included with
steps as Awareness, Desire, Knowledge, Ability and Reinforcement.
Awareness
In the awareness stage, the change that has been proposed
to take place in Hayleys Advantis Limited will be communicated with the middle
management, the supervisors and with the employees of the organisation. this
will focus on making the employees understand why a change to the ERP system is
needed at this time and what benefits they will receive.
Desire
In this part, it is expected to create desire within
the employees of Hayleys Advantis Limited and other involved parties for the
change. It will include showing the benefits of the changed systems for the
employees themselves and how they are able to make their work easier.
Knowledge
This part focuses on providing theoretical knowledge
to the employees on how to use the new ERP systems and how they are able to process
information and keep the operations up to the required level. Knowledge will be
provided to the employees using formal training programmes, coaching, and group
discussion and troubleshooting guidance from internal and external parties of
the organisation.
Ability
In knowledge, the theoretical knowledge was provided
for the employees. Since theoretical knowledge is not sufficient for them to
work independently with the new systems. Therefore practical training and hands
on experience with the systems is given to the employees using direct
involvement of the coaches, monitoring the performance, using expert trainers,
and practising the operational activities suing the systems.
Reinforcement
Reinforcement of the changes will be focusing on
developing the performance of the employees with the system that was
implemented and making sure that the employees are satisfied with the new
system and also that they are comfortable with the system.
Implementation model
As the change that has been proposed for the
organisation is an internal change that does not require interactions with the
outside of the organisation, customers or the suppliers, the change can be implemented
using the business process reengineering (BPR) approach. The implementation of
the BRP will be done in six main steps. Those are,
1. Stating
the case for action
2. Identifying
the process thoroughly for reengineering (switching to the new ERP system)
3. Evaluating
the factors that support the process
4. Understanding
the current process
5. New
process design
6. Implementation
of the process
Methods of monitoring progress
Goal
based evaluation –
Goals related to efficiency of work can be given for
the employees in order to compare the performance of the employees with the old
systems and with the new system (Smith, 2002). This will allow the management
to identify how the performance of the employees has been developed or upgraded
after the implementation of new ERP systems.
Employee
feedback –
Taking feedback from the employees on how they have
found the new ERP system to be helping them for their work. Getting feedback
from the employees will be important as employees are the main group which
faced the changes and therefore their feedback will provide more relevant
feedback for the management to make changes to the systems and also to identify
which areas of the system has not supported the employees to maximise their
work and performance.
Quality
circles –
Quality circles are another approach that can be
taken to discuss the progress of the new system within the organisation. The
quality circles can be organised with the participation of employees,
supervisors and the middle management. In the quality circles, the employees
will be allowed to bring up the issues they have been facing with the new
system (Smith,
2002). This will be helpful for the organisation to identify how the new
system has been performing and what areas are still needed to be developed.
Conclusion
Three models of change that can be used to manage
the change the Hayleys Advantis Limited organisation were discussed and the
differences between the different models of strategic change were identified.
After comparing the models of change, the most suitable method of change was
identified as the ADKAR model of change for Hayleys Advantis Limited. The
importance of making the changes in Hayleys Advantis Limited that includes
switching over to the new ERP systems was discussed and resources implications
that the organisation has to face have also been identified. The benefits that
can be derived by using strategic intervention in the Hayleys Advantis Limited
organisation have also been discussed. A strategy has been created to reduce
the resistance for change in the Hayleys Advantis Limited organisation and models
of change have been formed for implementing the change and measuring progress.
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