21 - SCMV1 - LO1-2 - Nurul Huda Siddiquei

International School of Management Studies
Pune – Maharashtra - India
STRATEGIC CHANGE MANAGEMENT
LEARNING OUTCOME 1&2
Mr. NURUL HUDA SIDDIQUEI
(MBA INTERNATIONAL)
Statement of Authenticity
I certify that the work submitted in regard to this assignment is my own and wherever the works of others have been
used to support my work, the credit has been duly acknowledged.
Student Email: nurulsiddiquei.isms@gmail.com Date: 5/11/2019

Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India
TABLE OF CONTENTS
Serial No Particulars Page no
1 Executive Summary 3
2 Task 1 5
3 Task 2 9
4 Conclusion 11
5 Bibliography 12
Page 2 of 19
Executive summary
The project that the researcher done here is about an AEGON insurance company in the UK that manages pensions, life
insurance, wealth management and business consultants.
The researcher explained how external factors affected AEGON's transition and how AEGON welcomed the shift by
undertaking change management program.
TASK 1: Provides a detailed description of different structural transition strategies and the impact of the change process
on AEGON as well as an assessment of the importance of strategic intervention on operational techniques.
TASK 2 discusses the need for structural change within an enterprise, and what forces motivate AEGON to change, and
what tools do not adapt to change.
Page 3 of 19
INTRODUCTION:
AEGON is a multinational company known for life insurance, pension and asset management. "Aegon was formed in 1983
when AGO Holding N.V. merged. (Created in 1968 by the merger of Algemeine Friesche, Groot-Noordhollandsche and
Olveh (Onderlinge Verzekeringsmaatschappij Eigen Hulp) and Ennia N.V. (Merged in 1969 between Eerste Nederlandsche
and Nillmij (Nederlandsch-Indische Levensverzekering-en Lijfrente-Maatschappij).'
AEGON's owners are Ennia N.V., AGO Group N.V. Now Alexander Wynaendts is its Chairman.
Headquarters is in The Hague, Netherlands and there are about 28,318 employees working for AEGON.
AEGON assets: 817.45 lakh crores in 2017 About 28.5 million consumers take care of AEGON's financial work. The
company operates in more than 20 European, Asian and American countries.
The main objective of the organization is to ensure that people achieve a lifetime of financial security. And also, to build
positive impact on stakeholders of AEGON.
Page 4 of 19
Task: 1
Strategy: Action taken by the organization, how an organization respond towards the obstacles and the challenges that
comes in the way of their plan.
Strategic management is managing the organization strategically meaning that the organization must also manage the
challenges an organization faces. Strategic management involves analyzing internal and external environment
formulating a plan of action to overcome the challenges, implementing these plans of action, monitoring and evaluating
the plan of action.
In change management involving the stakeholders is an important strategy and in order to involve the stakeholders it is
important to analyze and evaluate the importance of stakeholders and the power and the course they extend and the
importance on the organization.
Models of Strategic Change:

John
Kotter’s (1995), a Harvard Business School Professor a renowned change expert, in his book “leading change” introduced
8 step model of change which has developed on basis of research of 100 organizations which were going through a
process of change.
Kotter’s model of 8 steps can be explained with the illustration below:
Creating an urgency: this has been done in the following ways:
Identifying and highlighting the potential threats and the repercussions which might crop up in the future.
Examine the opportunities which can be tapped through effective interventions.
Initiate honest dialogues and discussion to make people think over the prevalent issues and give convincing reasons to
them.
Request the involvement and support of the industry people, key stake holders and customers on the issue of change.
Forming powerful guiding coalitions/building guiding team: this can be achieved in the following ways:
Identifying the effective change leaders in your organization and also the key stakeholders, requesting their involvement
and commitments towards the entire process.
Form a powerful change coalition who would be working on a team. Identify the weak areas in the coalition teams and
ensure that the team involves many influential people from various cross functional department and working in different
levels in the company.
Developing a vision and a strategy: this can be achieved by:
Determining the core values, defining the ultimate vision and the strategies for realizing a change in an organization.
Ensure that the change leaders can describe the vision effectively and, in a manner, that people can easily understand
and follow.
Communicating the vision: Communicate the change in the vision very often powerfully and the convincingly. Connect the
vision with all the crucial aspects like performance reviews, training etc. Handle the concerns and issue of people honestly
and with involvement.
Removing obstacles: Ensure the organizational processes and structures are in place and aligned with overall
organizational vision. Continuously check for barriers and people resisting change and implementing proactive actions to
remove obstacles coming during change.
Creating short term wins: By creating short-term wins early in the change process, you can give a feel of victory in the
early steps of change. Create many short-term targets instead of term long goal which has less possibilities of failure.
Reward people for meeting targets.
Consolidating Gains: Achieve continuous improvement by analyzing the success stories individually and improving from
these individual experiences.
Anchoring Changes in the corporate culture: Discuss the successful stories related to change initiatives on every given
opportunity. Ensure that the change, become an internal part in your organizational aspect.
Page 5 of 19
McKinsey 7-s Framework
The seven elements of the McKInsey 7-s framework categories with the seven elements as either ‘Hard’ or ‘soft’. ‘hard’
elements (strategy, structure, systems) soft elements (shared values, skill, style, staff). The three “hard” elements are
strategy, structures (such as organization charts and reporting lines) and systems (such as formal process and IT systems).
These are relatively easy to identify, and management can influence them directly.
The four “soft” elements, on the other hand, can be harder to describe, less tangible and more, influenced by your
company culture. But there are just as important as the hard elements if the organization is going to be successful.
Let’s look at each of the elements individually:

Strategy: this is organization’s plan for building and maintaining a competitive advantage over its competitors.
Structure: this how organization is organized (that is how department and teams are structured including who reports to
whom).
System: the daily activities and procedures that staff uses to get the job done.
Shared Values: these are the core values of the organization as shown in its corporate culture and general work ethic.
They were called subordinate goals”. When the model was first developed.
Style: the style of leadership adopted
Staff: the employees and their general capabilities.
Skill: the actual skill and competencies of the organization employees.
Kurt Lewin’s change model theory
This model is based on 3 steps process such as unfreeze, change and refreeze that basically gives direction to change.
These three steps guide managers and leaders to make good change.
Unfreeze: When something hasn’t change for many years as if person working in that structure would also not have
changed so this process somehow gives the person a change to not get into habituated of this. This kind of habit make
person not to think a lot just do their work and go. This kind of structure won’t get chance to person to find alternatives
to reach their objectives. This theory model unfreezing means getting a person or a accompany a chance remove all those
unwanted things from inside, and also guide to think alternative to reach their objectives. This step shows the company
or a person is ready to change.
Page 6 of 19
Change: After unfreeze; change is the next step where a company or a person is ready to change. Change is bit time
consuming just because it’s a learning stage where a person learns what to change and how to change. The person or a
company who want to change should be responsible enough to change and take the change as an opportunity. And once
the change is done next step is refrozen.
Refreeze: After these two steps another step is refreeze where whatever in the process of change took place need to
freeze again. This model gives the company or the person a new structure. With this structure “Refreeze” gives a
company to perform its task on the new platform and take full advantage of stage.
Importance of models of strategic Change to AEGON:
As the researchers explain about the models above, models like john Kotter’s 8 steps model plan, McKinsys 7-s model,
and Kurt Lewin’s unfreeze, change, and refreeze plays vital role in this case of AEGON. According to the researcher in this
case there come many situations where with the help of these models of strategic change solution gets find out.
Let’s first take McKinsey 7-s model: In this model as we see there are 7s such as say strategy, structure, systems, and
shared values all these comes under hard elements. Style, staff and skill comes under soft elements. one is tangible and
another one is intangible in nature.
As if every organization follow this model so as AEGON also followed this model, first AEGON took Shared values which
basically refers to what the organization stands for. The organization mission, vision, etc. Next is Structure which defines
the structure of the organization such as department, delegation and duties. Strategy refers to how the organization
responds towards the external environment, and they plan. System refers to system such as financial system, accounting
system etc. used by employees to get job done. Style refers to how work of organization handles by top management.
Staff refers to the number of employees working for an organization. And the last is skill which refers the capabilities and
ability of the employees working in an organization. This model used by AEGON to get its organization to work smoothly.
The Second model is john Kotter’s 8-step model, for successful change these 8 steps are needs to be followed:
Increase urgency for change
Build a team for change
Construct the vision
Communicate
Empower
Create short term goals
Be persistent
Make the change permanent
For change in the organization, organization needs to first create an urgency of change, as if AEGON build a strong team
to make change possible in the organization with the help of employees because as if UK is tough market to rule because
of their lifestyle, then the organization needs to construct vision and communicate with the stakeholders of AEGON. It is
also important for management to empower employees in executing the change. Whenever management finds
employees working hard to change so the management motivates them by rewarding. Persistence is very important even
for achieving short-term goal to ensure the organization change is perpetual. The final step is to make change permanent.
Another model Kurt lewinn’s model, in this model Kurt Lewinn’s uses 3 different stages of change.
Unfreeze: In this stage of change AEGON find that people of UK live a life of people like they earn and spend money on
their lifestyle rather than to save for future or after their retirement life. So, the person of UK makes this lifestyle as their
habit and they don’t want to change because they are afraid to change, they want to be in their “safe zone”. This process
of unfreezing makes people of UK to change their thoughts and lifestyle and make people to think about saving and to
spend on busing insurance etc.
Change: As if what AEGON want to do is to bring change in UK people where they were always wants to spend rather
than save so AEGON want people to save or spend on insurance and in fact government of UK is also supporting this
thing. In this stage thing changes and the mental stage changes from unfreeze to changing process.
Page 7 of 19
Refreeze: once if the AEGON bring changes in the UK people spending and make it stable after the changing process, that
is refreeze.
Strategic Intervention:
Intervention is learning process in the action stage of organization development; they are structured activities used
individually or in combination by the members of an organization for the purpose of social performance and task
performance.
The strategic intervention techniques which are used in case of AEGON, those are:
Human process intervention as if organization has entered into the new market, they are numbers of problems which
organization is facing so as human elements that which make organization function; therefore, it is important for an
organization to take care of interpersonal relationship and group dynamic type. So as lifestyle of people in UK is different
so this intervention techniques brings solution of explaining the social problems to the work members in the organization
so they can make some type of strategy to face or to come out this social problem. So, they bring consultants to guide
workers of organization with every interpersonal relationship and social dynamics happen at the work place. This method
helps work group become effective in completing a task or work. This intervention is used in the organization so internal
change can easily change for the organization to work smoothly to achieve their objectives.
Another technique used is large group intervention which means organization brings all the stakeholders into a large
meeting to clarify important values, to develop new ways of working, to express/ articulate a new vision for the
organization or to solve sum urgent organization problem. So, AEGON plan is for long-term say three to five years of plan,
for this long-term plan organization need to bring some change internally.
Page 8 of 19
Task: 2
Need for Strategic Change in AEGON
AEGON is doing well in the market and it is successful brand over the years, due to different internal and external
factors AEGON finds it’s important to change. UK Government has imposed price control policy which resulted in a
decline in the organizational profitability. And also, the UK government had proposed decline in the state dependency
Of persons who are above the age of 60. So, AEGON wants to bring the change in the UK as offering the people of UK
to invest on buying pension plan to secure their future and so on.
And also, AEGON was least known by people compared to competitors. This organization has developed has number
of products and services and also had a good reputation with the distributors because of this also AEGON needs to
change to spread awareness of their product and services in the market. These are the factors which force AEGON to
bring change.
Factors driving change in AEGON:

There are number of factors that driving AEGON to change, any organization which want to be successful needs to
adapt changes whenever required. AEGON in UK, factors that driving change is the financial restricting in the UK. It’s
important to understand that saving for retirement is difficult for people to understand. The life expectancy of people
after retirement has also increased, and the government of UK has decreased the dependency of people after
retirement these are the factor driving change in AEGON.
The growing population is also the factor that drives change in the AEGON. Other forces include; cultural
diversification in UK, changes in social dimensions, the evolution of political orientation and policies, increase in
domestic power, deficient management practices and inefficiency in management processes. As AEGON is an
insurance company there is very competition in this industry, so this is also one of another factors that drives change
in AEGON.
Page 9 of 19
Resources of AEGON that are not responding to change:

Human resources, financial resources and administrative resources were the most important resources that didn't
respond to change.
It's always people who drive sustainable change. Whereas keeping an organization's systems in place is required, it is the
people who matter most. The involvement / engagement of partners, and the avoidance of any opposition, is a key step
towards a productive structural transition. Various services may be available which may not lead to change. In the case of
AEGON UK, it was: -
Human resources (the workers ' capabilities and skills) needed to make the plans and goals a reality.
Human resources and competency have always played an important role in implementing a new approach. The
corporation has to ensure that it has adequate human capital to achieve its corporate goals. Education is another
expensive process that takes time. Training the employees takes a lot of time and is a complicated process that requires
research and investment to successfully execute the coaching and training systems. To innovate, take decisive action and
confidently accept tasks one must possess the right number of skills and abilities. Without training and preparation, the
human capital would not be able to cope with the process of change.
Managerial resource: the philosophy and activities of management, which characterize a firm's style and attitude.
In the change process, team building and effective management, teamwork, and behaving with dignity and
professionalism is highly focused. Management practices and organizational inefficiencies have been lacking. AEGON
needed to internally develop a behavioral framework to support its brand values and shared beliefs, and create a culture
of work. Customer-centric strategy and promoting the workforce of the company have been its main concerns, in
addition to simplifying the financial services. The working style of the management of AEGON had to be restructured to
act according to the newly set visions and objectives of the company to achieve its strategic goals.
Financial resources: monetary criteria for beginning the transition process, financing the management strategies and
helping with current and potential sources of funds.
It is a critical step in evaluating the amount of funds available and determining the operational forecasts before a
management strategy is introduced. Not every company can afford a major strategic change in its practices, goals or
tactics. Developing new business models to implement the change process effectively requires a high amount of
investments and has always been synonymous with financial risks and high chances of incurring huge financial losses if
the change strategy succeeded and the company itself failed to grow.
Page 10 of 19
Conclusion
When a customer wants to invest in a long-term commodity, it is natural to choose a brand that is trustworthy, reputable,
and to choose the brand for its reliability. Therefore, a company should first develop its brand value and what the
company has to give to the market in terms of quality, profitability and durability is very important in industry. Providing
high-quality services or competitively priced goods, after-sales warranty and improving existing models through real
buyer-customer interactions is all that is required for a business to build a loyal brand image, no matter how tiny it is in
terms of market share.
Change always influences business organizations. AEGON's response to these factors has been to simplify, clarify and
strengthen its UK brand. Strategic improvements for AEGON UK earned the company clear positive results and gave it a
new line of sight towards the desired goals and priorities. The British sector was successfully modernized, revamped and
repositioned.
Today, AEGON provides competitive products and services, introducing innovative new technologies, becoming easily
accessible online and up-to-date with emerging developments, providing effective and frictionless customer service. This
aims at improving workers ' technical and marketing skills, promoting diversity, offering a valuable job.
AEGON's approach to creating a distinct marketplace made it more stable and profitable for its clients, who could now
rely on this respectable insurance and pension firm.
Page 11 of 19
Bibliography
www.lucidchart.com/blog/kotters-8-step-change-model
[Retrieved on Oct 30]
www.mindtools.com/pages/article/news
www.educational-business-articles.com/8-step-process
www.managementstudyguide.com/models-of-change
Kotter, John P. (1996). Leading Change. Boston, Massachusetts: Harvard Business School Press, 1996
www.educational-business-articles.com/adkar-change-management
www.wikipedia.com/prosci-adkar-model
www.managementstudyguide.com/kurt-lewins-change-management-model
www.toolshero.com/change-management/burke-litwin-model
https://www.cleverism.com/major-approaches-models-of-change-management/
https://www.aegon.com/home/
[Retrieved on Nov 2]
https://www.mbaknol.com/management-concepts/factors-affecting-organizational-change/
[Retrieved on Nov 2]
Page 12 of 19

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International School of Management Studies

Pune – Maharashtra - India

STRATEGIC CHANGE MANAGEMENT

LEARNING OUTCOME 1&2

Mr. NURUL HUDA SIDDIQUEI

Student Email: nurulsiddiquei.isms@gmail.com Date: 5/11/2019

Serial No Particulars Page no

Models of Strategic Change:

McKinsey 7-s Framework

Let’s look at each of the elements individually:

Kurt Lewin’s change model theory

Importance of models of strategic Change to AEGON:

Factors driving change in AEGON:

Resources of AEGON that are not responding to change:

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