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Strategic

Change
Management
Edexel BTEC Level 7 Diploma in Strategic
Management and Leadership

Nuran T.Gamage –(9775) E Soft Metro Campus


QCF BTEC

INTERNAL VERIFICATION – ASSESSMENT DECISIONS

Programme title BTEC Level 7 Diploma in Strategic Management & Leadership

Assessor Harshani Samaradiwakara Internal Verifier Geeth Weerasinghe

Unit

Assignment title Strategic chain management

Learner’s name Nuran T.Gamage

First submission / resubmission?

(Only one resubmission allowed, authorised by Lead Internal Verifier)

List which assessment and Pass Merit Distinction


grading criteria the assessor
has awarded. Merit

INTERNAL VERIFIER CHECKLIST Comments

Have the learner and assessor confirmed the Yes. I confirmed the authenticity of the evidence.
Y/N
authenticity of the evidence?

Do the assessment criteria awarded match those Yes. The assessment criteria awarded match those targeted by the
Y/N
targeted by the brief? assignment brief.

Has the work been assessed accurately? Y/N


Yes. As per the best of my knowledge, the work been assessed
accurately.

Does the assessment feedback to the learner: Yes. The links and justifications match the assessment criteria.
Y/N
 Link to relevant assessment criteria?
 Justify each assessment criterion awarded?

No amendment needed.
Does the assessment decision need amending? Y/N

Assessor signature Harshani.samaradiwakara81@gmail.com Date 05.11.2018

Internal Verifier signature Geeth.w@esoft.lk Date 08/11/2018


Lead Internal Verifier
Date
signature (if required)

Confirm action completed

Remedial action taken

Assessor signature Harshani.samaradiwakara81@mail.com Date

Internal Verifier signature Geeth.w@esoft.lk Date

Lead Internal Verifier


Date
signature (if required)
A. STUDENT/S TO COMPLETE
Course Name : Level 7 Diploma in Strategic Management

Student Number: Student Full Name: Nuran Tharanga Gamage


9775

Lecturer Name: Harshani Samaradiwakara

Edexcel Registration No:-

Assignment No./Name: Unit No/Name-


Strategic Change Management

Date Due: Date Submitted: 25th September 2018

Student Signature: Nuran Date:25-09-2018

Declaration
I declare that this assessment item is my own work, except where acknowledged, and has
not been submitted for academic credit elsewhere, and acknowledge that the assessor of
this item may, for the purpose of assessing this item:
 Reproduce this assessment item and provide a copy to another member of the
University and/or;
 Communicate a copy of this assessment item to a plagiarism checking service (which
may then retain a copy of the assessment item on its database for the purpose of future
plagiarism checking).
I certify that I have read and understood the Institute Rules in respect of Student Academic
Misconduct.

..
B. ASSESOR TO COMPLETE

Comment : Completed

Grade Merit
Date 05/11/2018 Marker’s
Signature:Harshani.samaradiwakara81@gmail.com

C. IV TO COMPLETE

Agree with assessor’s decision. 08/11/2018


Assignment Brief

To be filled by the Student

Name of the Student: Nuran Tharanga Gamage

Pearson No:KE72353 Registration No: 9775 Batch No: 03

BTEC Level 7 Diploma in Strategic Management and Leadership

Qualification : BTEC Level 7 Diploma in Strategic Management and Leadership


Unit Code & Title : (J/602/2062) Strategic Change Management

Unit AssessmentInformation

Learning outcomes and grading opportunities:

LO 1: Understand the background to organizational strategic change

Assessment Criteria: 1.1 A 1.2 A 1.3 A

LO 2: Understand issues relating to strategic change in an organization

Assessment Criteria: 2.1 A 2.2 A 2.3 A

LO 3: Be able to lead stakeholders in developing a strategy for change

Assessment Criteria: 3.1 A 3.2 A 3.3 A 3.4 A

LO4:Beable to plan to implement models for ensuring ongoingchange

Assessment Criteria: 4.1 A 4.2 A 4.3 A

Date Issued : 29/05/2018 Date Due: 25/09/2018

Date of Submission:25/10/2018

Assessor : Harshani Samaradiwakara Date Assessed:05/11/2018

Internal Verifier (IV) : Geeth Weerasinghe Date of IV :08/11/2018


Declaration

I declare that this assessment item is my own work, except where acknowledged, and has not been
submitted for academic credit elsewhere, and acknowledge that the assessor of this item may, for the
purpose of assessing this item:

 Reproduce this assessment item and provide a copy to another member of the University
and/or;

 Communicate a copy of this assessment item to a plagiarism checking service (which may then
retain a copy of the assessment item on its database for the purpose of future plagiarism checking).

I certify that I have read and understood the Institute Rules in respect of Student Academic
Misconduct policy.

Nuran 25th Oct 2018


Signature …………………………….. Date…………………
Unit Title: Strategic Change Management

Assessment Criteria Learning Outcomes Covered:


Covered:
Outcome1: Understand the background to organizational
strategic change
1.1, 1.2, 1.3, Outcome2: Understand issues relating to strategic change in
2.1, 2.2, 2.3, an organization
3.1, 3.2, 3.3, 3.4 Outcome3: Be able to lead stakeholders in developing a
4.1, 4.2, 4.3 strategy for change

Outcome4: Be able to plan to implement models for


ensuring ongoing change

 Check carefully the hand in date and the instructions given with the assignment. Late submissions will not
be accepted.
 Ensure that you give yourself enough time to complete the assignment by the due date.
 Don’t leave things to the last minute – excuses of this nature will not be accepted for failure to hand
in the work on time?
 You must take responsibility for managing your own time effectively.
 If you are unable to hand in your assignment on time and have valid reasons such as illness, you may
apply (in writing) for an extension.
 Failure to achieve at least a PASS grade will result in a REFERRAL grade being given.
 Non-submission of work without valid reasons will lead to an automatic REFERRAL. You will then be asked
to complete an alternative assignment on next semester.
 Take great care that if you use other people’s work or ideas in your assignment, you properly
reference them, using the HARVARD referencing system, in you text and any bibliography,
otherwise you may be guilty of plagiarism.
 If you are caught plagiarizing, you could have your grade reduced to A REFERRAL or at worst you could be
excluded from the course.
 The assignment should be uploaded into the LMS on or before the due date.
Assume that you have been assigned as change consultant for your organization and you need to prepare a report
for the director board addressing the following tasks.

Task 01

1.1 Examine the need for strategic change on different aspects in your organization to successfully
compete in today’s volatile business world. (AC 2.1)
1.2 Assess the factors that are driving the need for strategic change for your organization. (AC 2.2)
1.3 Assess the resource implications not responding to a specific change requirement in your
organization. (AC 2.3)

Task 02

2.1 Discuss the application of models of strategic change into your organization and evaluate the relevance of
models of strategic changein thecurrent economytaking your organizational context. (AC1.1, 1.2)
2.2 Assess the value of using strategic intervention techniques in meeting the expected change, by taking
examples from your organization. (AC1.3)

Task 03

3.1 Using theoretical frameworks develop and critically evaluate systems to involve stakeholders in the
planning of the specific change identified in tack 2.3. (AC 3.1, 3.3)
3.2 Develop a change management strategy with stakeholders for the specific change identified (Task 2.3) in your
organization. (AC 3.2)
3.3 Identify the resistance for the specific change and create strategy for managing the resistance. (AC- 3.4)

Task 04

4.1 Develop appropriate models for the identified change in Task 2.3. (AC 4.1)
4.2 Outline the plan to implement the developed models in task 4.1. (AC 4.2)
4.3 Develop appropriate measures to monitor progress of change for the selected organization (AC 4.3)
16--22
Assessment Criteria -
Pass

Outcome(s)/criteria Possible evidence Achieved Feedback

LO2 Understand issues relating to strategic change in an organization

1.1-Examine the need for strategic change AC 2.1 and AC 2.2- It is expected that learners will 14-16 The student has identified the need for
in an organization. show an understanding of the forces that are strategic change using SWOT to better
impacting on an organization and driving the need understand the internal environment
for change. of the company
Showing understanding needs to be more than just
a list of forces and change drivers. Learners need
1.2- Assess the factors that are driving the to demonstrate that they have researched and 17-22 The student has analyzed the
need for strategic change in an examined the current position of the organization external environment effects
organization. and that they are able to assess the factors in the through PESTEL and Portors
organization that drives need for change.
five forces to identify the factors
that drive change. Section is well
covered.
1.3 Assess the resource implications of the AC2.3- Learners need to assess the resource 23-24 The student has explained the
organization not responding to strategic implications of the organization not responding to resource implication when
change change. It is expected that learners will assess the effecting the change well.
relevant financial, human and physical resources.
They are not expected to cost the resource
Implications for the organization.

LO1: Understand the background to organizational strategic change

2.1- Discuss models of strategic change AC1.1-Learners need to show that they understand 25-31 The student has a very good
the different approaches to models of change understanding about the
management. different models of change and
They need to discuss a minimum of three has discussed in detail about
established models, highlighting the differences in
three important models of
approach.
change. The section is well
covered.
Evaluate the relevance of models of AC 1.2-In the introduction to their report learners 31-34 The student has identified the pros and
strategic change to organizations in the need to evaluate the relevance of the models of Cos of each model and elaborated how
current economy. strategic change, using examples from each can be applied in different
organizations. incidences of change.
They need to explain why the models for change
are appropriate with examples from organizational
context.
2.2-Assess the value of using strategic AC1.3-Learners will be expected to assess the 34-37 The student has identified four types of
intervention techniques in value of using strategic intervention techniques that strategic interventions that can be
organizations. are used in organizations. These need to be proposed for the company and the
applied to the organization in their report section is ell covred.

LO3 Be able to lead stakeholders in developing a strategy for change

3.1 - Develop systems to involve AC3.1 - Learners need to develop systems to 38-44 The student has mapped the
stakeholders in the planning of change. involve stakeholders in the planning of change. stakeholders and identified step by
The systems need to be appropriate and workable step approach to tackle them and
in the selected organization involve all the stakeholders in a
change.-

The section is well covered.


3.2- Develop a change management AC3.2- Learners need to show that they 44-48 The student has used appropriate
strategy with stakeholders understand the different strategies that are process in involving stakeholders I a
available in the process of change management. change and explained each section well.
They need to develop an appropriate strategy for Section is well covered.
change in the selected organization and show how Situational Analysis and Team
they would involve stakeholders in the Structure approach has been discussed
development of this strategy. well relating to the industry.

3.3- Evaluate the systems used to AC3.3 - Learners need to make judgements on the 49-53 The student has selected the
involve stakeholders in the planning of effectiveness of the systems used to involve correct model and related the
change. stakeholders in the development of a change same for the company. Section
strategy. They need to evaluate the process, taking coverage is adequate.
account of anything that worked well and anything
that did not work well or could have worked better
3.4 Create a strategy for managing AC3.4 -Learners need to show that they recognize 54-55 The student has related the section to a
resistance to change. that resistance to change can show itself in different real life example and explained the
Ways. If managed badly, resistance can become strategy and ways of reducing the
entrenched and spread throughout the resistance to change.
Organization. Learners need to create a strategy
for managing resistance to change that is
appropriate to their selected organization. It
needs to address
the issues and provide a workable approach to
overcome the resistance.
LO4 Be able to plan to implement models for ensuring ongoing change
4.1 -Develop appropriate models for AC4.1- Learners need to develop appropriate 26-58 Used Kert Lewins model of
models for ongoing change in their selected change and applied to the
change..
organisation. The models need to reflect the company well.
circumstances facing the organization
4.2 -Plan to implement a model for AC4.2- Learners need to show how they would plan 59 The student has used practical
to implement the model for change in their selected methods of implementation of
change
organization. Internal and external circumstances change with relevant to the
impacting on the organization also need to be model selected for the previous
considered
section. Section is well covered.
4.3- Develop appropriate measures to AC4.3- learners need to develop measures to 60 The student has identified 5
monitor progress monitor the progress of the change model once it is ways of monitoring techniques of
launched. The measures will need to be practical, chage.The section is well
workable and appropriate to the organizational covered.
context.
Edexcel Level 7 Diploma in Strategic Management and Leadership

Formative Feedback: Assessor to Student

Continuous feedback given to improve the report through emails

Action Plan

25.12.2018

Pls improve the report as per the comments given and send this back.

Summative feedback

The content of the report is well covered and excellent application in a practical
manner.

The student possess a very good understanding of the theories.

Feedback: Student to Assessor

Harshani.samaradiwakara81@ 05/11/2018

Assessor gmail.com Date


signature

Student nuratara@yahoo.com Date 25/10/2018


signature

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Edexcel Level 7 Diploma in Strategic Management and Leadership

Contents

Introduction ……..…………………………………………………………………… ….…09

Task 01

1.1 Discuss well established models of strategic change and their


approaches……………………………………………………………………………...10
1.1.1 Lewin’s three stage model of change ……..…………………………………………..10
1.1.2 Kotter’s 8 step change ……………………………………………………………….12
1.1.3 ADKAR Model………………………………………………………………………13

1.2 Evaluate the relevance of models of strategic change to organizations in the current
Economy……………………………………………………………………………….15
1.2.1 Curt lewins’ three stages……………………………………………………………..15
1.2.2 Kotter’s eight steps of change mode…………………………………………………16

1.3 Assess the strategic intervention techniques in organizations to realign the current
Business with the external business environment ……………………………………..17
1.3.1 Human resource management interventions ……………………………………..…....17

1.3.2 Contingency theory ...………………………………………………………………….17

1.3.3 Team building interventions …………………………………………………………...17

1.3.4 Survey feedback …...…………………………………………………………………..18

Task 02

2.1 Need for Strategic change in Ideal Motors ……………………………………19

2.1.1 SWOT analysis for Ideal Motors ……………………………………………19

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Edexcel Level 7 Diploma in Strategic Management and Leadership

2.2 - Assess the factors that are driving the need for strategic change for Ideal Motors
………………………………………………………………………………………….21

2.2.1 PESTEL Analysis……………………………………………………………………...21

2.2.2 Force Field Analyses………………………………………………………………….23

2.3. Assess the resource implications of Ideal Motors not responding to Strategic
change………………………………………………………………………………………..24

Task 03

3.1 Develop systems to involve stakeholders in the planning of change for the selected
organization………………………………………………………………………………….26

3.1.1 Identifying Stakeholders ………………………………………………………………26

3.1.2 Mapping stakeholder…………………………………………………………………...27

3.1.3 Systems to involve stakeholders in the planning of change……………………………28

3.2 Change management strategy for the engagement of Stakeholders in Ideal Motors
…………………………………………………………………………………………..30

3.2.1 Situational awareness…………………………………………………………………..30

3.2.2 Supporting team Structure……………………………………………………………...31

3.2.3. Change management strategy analysis………………………………………………...32

3 .3 Evaluation of the Systems used to involve stakeholders in the planning of change in Ideal
Motors …………………………………………………………………………33

3.4 Create a strategy for managing resistance to change for Ideal Motors ………..35

Task 04

4.1 appropriate models for change for Ideal Motors ……………………………...37

4.2 Outline the plan to implement a model for change for the Ideal Motors
………………....38

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4.3 Appropriate measures to monitor progress of change in Ideal Motors …………40

References……………………………………………………………………………………42

Introduction

Every day, companies face changes, such as launching a new product, or restructuring the
organization. Strategic change management allows companies to carefully and responsibly
make needed changes.

Strategic change management is the process of managing change in a structured, thoughtful


way in order to meet organizational goals, objectives, and missions. Change is necessary for
organizations to continue to thrive and meet and exceed the competition of industry
competitors. (Bethany Davis)

This assignment consists of four parts. The first part of this assignment discusses the concepts
associated with strategic change management. Three types of strategic change management
are discussed in detail. The second session broadly deals with the process of change and the
necessity for change that is required by Ideal Motors.

IDEAL Motors
The company Ideal Motors was established in the year 2009 November. IDEAL Motors
(Pvt) Ltd. is a fully owned subsidiary company of the IDEAL Group which has core business
interests in Motor Franchise Imports and Motor Spare Parts in Sri Lanka. Ideal group consists
of 11 other companies. They are Ideal Motors, Ideal Automotive Parts, Ideal Finance, Ideal
Green Tech, Ideal Commercial, Ideal Two Wheelers, Ideal Cherry, Ideal Wheels and Tires,
Ideal Drive, Ideal Choice, Ideal Automobile. In this current situation, it is most important to
clear understanding of organizational vision, mission and long-term objectives by strategic
manager. To carry on the all functions properly his/her own personal and professional skills
must be reviewed and if necessary participated in various training and development organized
by IDEAL Motors. This skill is very important for mangers to operate daily activities and

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Edexcel Level 7 Diploma in Strategic Management and Leadership

handle unfavorable situation to achieve its objectives. As a Service manager of IDEAL


Motors, I can use different tools and approaches to analysis and interpret skills I have and
finding out the skills needs for future development.

Task 01
1.1- Need for Strategic change in IDEAL Motors
Strategic change is changing the organisations vision, mission and the deducted targets. By
planning a strategic change, the organisation realises that there are possibilities to meeting
new challenges and to prepare the organisation on these challenges rather to wait what will
be.
Following Yeager and Sorensen (2009) and Johnson et al. (2005) needs for change can be
various, starting by changes in different markets and economic downturns and ending with
legal and social changes and new technologies. Also new theoretical and practical approaches
like the Total Quality Management (TQM) program can link to an increased need for change. Commented [IV1]: The learner has mentioned the theoretical
and practical approaches.
In every organisation the need for change is the need to stay competitive in a global market
and therefore to gain competitive advantage. Organization’s scanning process helps to
identify early sings that a change may be needed. It monitors internal and external factors to
recognize strengths, weakness, Opportunities and threats. (SWOT analysis).

1.1.1 SWOT analysis for IDEAL Motors

Strengths:

A strength is a positive internal condition that provides the organization with an advantage
relatively competition. An organizational strength is a distinctive competence, resource or
skill that provides the organization with a competitive advantage in the market place. Access Commented [A2]: The student has identified the need for
strategic change using SWOT to better understand the internal
to higher quality material, good financial relations, a strong image, exclusive ownership of environment of the company
Commented [IV3R2]: Agree with the assessor’s comments.
patents, extensive distribution channels, or higher talented managers are all strengths that an
organization may hold over the competitors.

Weaknesses:

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Edexcel Level 7 Diploma in Strategic Management and Leadership

Weakness is a negative internal condition that can lead to a lowering of organizational


performance. A weakness can be the result of an absence of necessary resources or skills, or a
deficiency in the development of necessary resources and skills. Managers with inadequate
skills, over extended credit accounts, poor product image, outdated machinery, inadequate
research and development activities, or poor plant locations can be weaknesses of an
organization.

Opportunities

An opportunity is a current or future condition in the environment that is favorable to an


organizations current and potential output. Favorable conditions may consists of changes in
laws that give the organizations a competitive edge, a growing number of customers,
introduction of new technologies that the organizations can easily exploit, improved
relationship with suppliers.

Treats

A Threat is a current or future condition in the environment that is unfavorable to an


organization’s current or potential output. Unfavorable conditions may consist of entry of a
powerful competitor into the organization’s market, a decline in number of customers,
introduction of new technologies that would make existing product obsolete, passage of
regulations that would constrain an organization’s ability to compete, or problems locating
reliable suppliers.

This situational analysis (SWOT) helps the Ideal Motors in formatting how to developing internal
strengths and diminishing weaknesses while taking the best advantages from opportunities and
minimizing threats. Commented [IV4]: Should have stated the controllable
structure of the SWOT analysis based on internal and external to
the organization.

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Edexcel Level 7 Diploma in Strategic Management and Leadership

Figure 06 : (SWOT Analysis)

1.2 - The factors that are driving the need for strategic change for IDEAL
Motors
There are various factors driving the need for strategic change in an organisation. Some of
them are created and managed by organisations themselves, but most are not influenced
easily. In the widest scope, these factors can be classified in two categories, namely external
and internal factors.
There are several techniques which can be used to identify internal and external
environments. PESTEL, Potters five forces analysis and force field analysis are some of Commented [IV5]: The learner has stated the techniques
which can be used for analysis.
them.

1.2.1 PESTEL Analysis

 Political

Political factors involve changes in the global economy and rise in living standards would
ultimately imply an increase in demand for products thereby, providing greater opportunities
for businesses to make profits. This would imply that in case of a rise in economic activity
the demand of the product will increase and hence the price will increase. In case of reduction
in demand the prices will go down. Business strategies should be developed keeping in mind
these fluctuations. Other economic changes that affect business include changes in the
interest rate, wage rates, and the rate of inflation. In case of low interest rates and increase in
demand Businesses will be encouraged to expand and take risks. Therefore, business
strategies should have room for such fluctuations.

Political factors greatly influence the operation of business. Business must consider the
stability of the political environment, government's policy on the economy etc.

Like law, changes in government policy can be well notified and discussed, or without
warning. As an example of how government policy has an effect, is that many organizations

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Edexcel Level 7 Diploma in Strategic Management and Leadership

depend on government financial assistance. When there is a change of government, such


funding assistance can disappear in a short space of time.

 Economic

Prevailing economic conditions of the nation will have an effect on the spending patterns of
citizens. Increases in interest rates and/or a high level of unemployment will depress
consumption of non-essential goods and services. For example. When people experience
financial hardship, they will spend much less on new vehicles. It provides operational
support; it includes savings or available cash, credit lines to fund new ventures, venture
capitals, the stock markets and investors. It is particularly noteworthy in the organizations
that operate on thin margins or new start-ups since they have little support to raise capitals. Commented [A6]: The student has analyzed the external
environment effects through PESTEL and Potors five forces to
Sri Lanka’s economic situation is currently influenced largely by foreign funds and loans. identify the factors that drive change. Section is well covered.

The inflation and interest rates are fluctuating but it takes an upward trend that makes funding
Commented [IV7R6]: Agree with the assessor’s comments.
difficult for businesses. These economic implications have resulted in increased costs. The learner has stated adequate factors.

 Social

These factors are related to changes in social structures. These factors provide insights into
behaviour, tastes, and lifestyles patterns of a population. Buying patterns are greatly
influenced by the changes in the structure of the population, and in consumer lifestyles. Age,
gender, etc all determine the buying patterns and understanding of such changes is critical for
developing strategies which are in line with the market situations. In a global environment it
is important that business strategies are designed keeping in mind the social and cultural
differences that vary from country to country. Consumer religion, language, lifestyle patterns
are all important information for successful business management.

There is increased awareness within the citizens of Ideal Motors’ operating country; Sri
Lanka, the middle level business men develop their businesses because of the introducing of
economical vehicle categories like Maximo, Jitho. Because of that small businesses develop
all over the country. This changing perception have a direct impact on the top line of the
company.

 Technological

Technological factors greatly influence business strategies as they provide opportunities for
businesses to adopt new innovations, and inventions. This helps the business to reduce costs

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Edexcel Level 7 Diploma in Strategic Management and Leadership

and develop new products. With the advent of modern communication technologies,
technological factors have gained great impetus in the business arena. . Huge volumes of
information can be securely shared by means of databases thereby enabling vast cost
reductions, and improvements in service. Organizations need to consider the latest relevant
technological advancements for their business and to stay competitive. Technology helps
business to gain competitive advantage, and is a major driver of globalization. While
designing the business strategies firms must consider if use of technology will allow the firm
to manufacture products and services at a lower cost. Firms can select new modes of
distributions with the help of technology. It has become easier for companies to communicate
with their customer in any part of the world. If businesses do not adapt sufficiently quickly to
technological change, they risk losing market share. It's not just that technological change
affects the design of products, but even the delivery of services can change. It includes the
science and technology required for the production, the technical tools that are used in the
manufacturing or the technology of the product itself in case of automotive industry. The
world’s vehicle technology is rapidly changing and Sri Lanka as a country also needs to keep
up with this changing environment. This also has an impact on the number of manufacturing
vehicles brought into the country. There is an increased level of vehicle brought into the
country and many jobs have been created in this sector.

 Environmental

The present government have imposed many severe regulations recently to draw attention of
companies on environmental friendly activities. Reduction of air pollutants, awareness of
waste management and some of the aspects in which the government has imposed. Ideal
Motors’ useeco-friendly SOLAR panels, vehicle modification with EGR system. EGR
systems have been commercialized as a NOx reduction method for a wide range of diesel
engines from light-, medium- and heavy-duty diesel engines. A number of considerations
must be taken into account when designing EGR systems including: deposit accumulation,
contaminants, engine lubricant, system packaging and more. And introduce electric vehicles.
Plug-in electric vehicles can help keep town and world clean. In general, EVs produce fewer
emissions that contribute to climate change and smog than conventional vehicles.

 Legal

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Edexcel Level 7 Diploma in Strategic Management and Leadership

These factors that influence business strategies are related to changes in government laws and
regulations. For a successful business operation, it is important that the businesses consider
the legal issues involved in a particular situation and should have the capability to anticipate
ways in which changes in laws will affect the way they must behave. Laws keep changing
over a period of time. From the point of view of business, it is important that they are aware
of these changes in the areas of consumer protection legislation, environmental legislation,
health & safety and employment law, etc. When doing business in Sri Lanka, it is important
to realize the existence of some essential economic laws. There are adequate legal systems
that flavouring investors in entering and executing binding contracts. Banking and credit laws
provide rules for getting credits and protects investors. Commercial and company laws help
starting Business and Protects investors. Taxation is one of most obvious changes in law
through legislation. Sometimes taxation changes occur overnight with little warning and
sometimes there is plenty of time for the business to prepare.

1.2.2. Porter's Five Forces Analysis

This model identifies and analyzes five competitive forces that shape every industry, and
helps determine an industry's weaknesses and strengths. Frequently used to identify an
industry's structure to determine corporate strategy, Porter's model can be applied to auto
industry like Ideal Motors.

 Threat of Substitute

Competitor substitutes that can be used in place of a company's products or services pose a
Threat. For example, if customers rely on a company to provide a tool or service that can be
substituted with another tool or service or by performing the task manually, and if this
substitution is fairly easy and of low cost, a company's power can be weakened. Treats of
substitutes. Ideal brand equity and production capacity is very high. So, it leads to benefits of
economies of scale. Nowadays people required quality of the vehicles. So Ideal Motors
mostly think about to maintain of quality. Their main competitor of middle level vehicles is
DIMO. Commented [IV8]: The learner has stated sufficient details for
justifications

 Competition in the Industry

The importance of this force is the number of competitors and their ability to threaten
Company. The larger the number of competitors, along with the number of equivalent

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Edexcel Level 7 Diploma in Strategic Management and Leadership

products and services they offer, the lesser the power of a company. Suppliers and buyers
seek out a Company’s competition if they are unable to receive a suitable deal. When
competitive rivalry Is low, a company has greater power to do what it wants to do to achieve
higher sales and Profits. Ideal Motors is needing to be leader of vehicle market sales and after
sales. Other Competitors like DIMO, United Motors, Toyota, Associated Motor Ways
coming into the Vehicle industry, Ideal Motors expand their business to face competition.

 Treats of New Entrants

A company's power is also affected by the force of new entrants into its market. New entry
will try to capture the market share and substantial resources. The less time and money it cost
for a competitor to enter a company's market and be an effective competitor, the more a
company's position may be significantly weakened. An industry with strong barriers to entry
is an attractive feature for companies that would prefer to operate in a space with fewer
competitors.

The Ideal Motors is equipped with the range of products such as two wheelers to prime
movers.

 Power of Suppliers
This force addresses how easily suppliers can drive up the price of goods and services. It is
Affected by the number of suppliers of key aspects of a good or service, how unique these
Aspects are, and how much it would cost a company to switch from one supplier to another.
The fewer the number of suppliers, and the more a company depends upon a supplier, the
more
Power a supplier holds. Power of suppliers is not extensive force for the Ideal Motors.

 Power of Customers
This specifically deals with the ability customers must drive prices down. It is affected by
how many buyers or customers a company has, how significant each customer is, and how
much it would cost a customer to switch from one company to another. The smaller and more
powerful a client base, the more power it holds. Ideal Motors is spending more money to
advertising, because of lots of substitute in the market. Commented [IV9]: The learner has stated the Porter's Five
Forces Analysis to a satisfactory level.

2.2.2 Force Field Analyses

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Figure 06: Force Field Analysis

Force Field Analysis was developed by Kurt Lewin (1951) and is widely used to inform
decision making, particularly in planning and implementing change management programs in
organizations. It is a powerful method of gaining a comprehensive overview of the different
forces acting on a potential organizational change issue, and for assessing their source and
strength.
Force field analysis is best carried out in small group of about six to eight people using
flipchart paper or overhead transparencies so that everyone can see what is going on. The first
step is to agree the area of change to be discussed. This might be written as a desired policy
goal or objective. All the forces in support of the change are then listed in a column to the left
(driving the change forward), whereas all forces working against the change are listed in a
column to the right (holding it back). The driving and restraining forces should be sorted
around common themes and then be scored according to their 'magnitude', ranging from one
(weak) to five (strong). The score may well not balance on either side. The resulting table
might look like the example above.
Throughout the process, rich discussion, debate and dialogue should emerge. This is an
important part of the exercise and key issues should be allowed time. Findings and ideas may
well come up to do with concerns, problems, symptoms and solutions. It is useful to record
these and review where there is consensus on an action or a way forward. In policy
influencing, the aim is to find ways to reduce the restraining forces and to capitalise on the
driving forces.

1.3. The resource implications of IDEAL Motors not responding to


Strategic change

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1.3.1 Human Resource – Lack of trained and skilful employees is a vast disadvantage for
Ideal Motors when it planning a change. Employee turnover is high in Ideal Motors and it
has made the Ideal Motors hesitant for the change. Human capital is one of salient resource
for an organization. Selecting, Recruiting, promoting, training and motivating staff are main
functions under this department.

When the change is being going to implement the organization should have a proper plan to Commented [A10]: The student has explained the resource
implication when effecting the change well.
fulfil human resource requirement. They should fix on a way to supply staff. Organization Commented [IV11R10]: Agree with assessor’s comments.

must decide whether to hire new staff or promoting existing staff. Training and Development
plays main role when introducing change. Otherwise employee will reject the change since it
is the human nature. So, they should be educated about the expected change and its’
advantages to the company as a whole and as an individual staff. Motivation, encouragement,
considering employees’ satisfaction, handling grievances and forming a friendly environment
at the organization are very important for the better performance of the organization.

There should be a newly formed team representing all the areas of organization to implement
the change. Core team members are the employees who can get others acceptance for the new
change. They should be made to get fully dedication towards the changing process Otherwise
plan will not be successful.

1.3.2 Physical resources–These resources consist of Tools, Inventories, production,


assembly, storage, Insurance, Security and distribution channels. After implementing the
change if there is fewer amounts of resources to get it implemented, it might also spoil the
change. Then senior management should involve to that matter and solve it quickly.
Otherwise this implication time will drag, and it can become a reason of failure.

1.3.3 Financial Resource –The organization must settle on the scope of the change to be
implemented. Then the company can make a budget for this plan. Change may incur various
types of costs which are out of day today budget plan. If this plan fails it will cost a high loss
to the organization.

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Task 02
2.1 The established models of strategic change and their approaches
Developing a change management strategy provides direction and purpose for all other
change management activities. By outlining the unique characteristics of the change and its
risks and potential resistance, change practitioners set themselves and their project team
partners up for success.
Change management strategies define the approach needed to manage change given the
unique situation of your project. There are many systems and models formed and adapted by
many researches. The below mentioned theories and models may be discussed as follows,

2.1.1. Lewin’s three stage model of change

Kurt Lewin developed a change model involving three steps: unfreezing, changing and
refreezing. For Lewin, the process of change entails creating the perception that a change is
needed, then moving toward the new, desired level of behaviour and, finally, solidifying that
new behavior as the norm. Kurt Lewin emigrated from Germany to America during the 1930's
and is recognised as the "founder of social psychology" which highlights his interest in the
human aspect of change.

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Lewin's three stage theory of change is commonly referred to as Unfreeze, Change, Freeze
(or Refreeze). It is possible to take these stages to quite complicated levels, but I don't believe Commented [A12]: The student has a good understanding
about the Kert Lewins Model of Change Management
this is necessary to be able to work with the theory. But be aware that the theory has been Commented [IV13R12]: The student has used theories and
models for justifications.
criticized for being too simplistic.

The world has changed since the theory was originally presented in 1947, but the Kurt Lewin
model is still extremely relevant. Many other modern change models are actually based on
the 3-stage Lewin model, So, three stages. Unfreezing, Change, Freezing. Let's look at each
of these.

Figure 01 – Lewin’s change management model

These change management has three stages. Through Recognizing and analysing of these
three stages of change organizations can implement required plans to in align with the
changes occurred.

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2.1.1.1..Unfreezing
Before a change can be implemented, it must go through the initial step of unfreezing.
Because many people will naturally resist change, the goal during the unfreezing stage is to
create an awareness of how the status quo, or current level of acceptability, is hindering the
organization in some way. Old behaviours, ways of thinking, processes, people and
organizational structures must all be carefully examined to show employees how necessary a
change is for the organization to create or maintain a competitive advantage in the
marketplace. Communication is especially important during the unfreezing stage so that
employees can become informed about the imminent change, the logic behind it and how it
will benefit each employee. The idea is that the more we know about a change and the more
we feel it is necessary and urgent, the more motivated we are to accept the change.
2.1.1.2.Changing
Now that the people are 'unfrozen' they can begin to move. Lewin recognized that change is a
process where the organization must transition or move into this new state of being. This
changing step, also referred to as 'transitioning' or 'moving,' is marked by the implementation
of the change. This is when the change becomes real. It's also, consequently, the time that
most people struggle with the new reality. It is a time marked with uncertainty and fear,
making it the hardest step to overcome. During the changing step people begin to learn the
new behaviours, processes and ways of thinking. The more prepared they are for this step, the
easier it is to complete. For this reason, education, communication, support and time are
critical for employees as they become familiar with the change. Again, change is a process
that must be carefully planned and executed. Throughout this process, employees should be
reminded of the reasons for the change and how it will benefit them once fully implemented.
Hands – on leadership is necessarily suitable for this stage. In this stage communicating
often, chasing away rumours, empowering actions and getting involve people in the process
is advisable

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Figure 02: Change Curve (source:Mowat.J, 2002)

2.1.1.3 Refreezing
Lewin called the final stage of his change model freezing, but many refer to it as refreezing
to symbolize the act of reinforcing, stabilizing and solidifying the new state after the change.
The changes made to organizational processes, goals, structure, offerings or people are
accepted and refrozen as the new norm or status quo. Lewin found the refreezing step to be
especially important to ensure that people do not revert back to their old ways of thinking or
doing prior to the implementation of the change. Efforts must be made to guarantee the
change is not lost; rather, it needs to be cemented into the organization's culture and
maintained as the acceptable way of thinking or doing. Positive rewards and acknowledgment
of individualized efforts are often used to reinforce the new state because it is believed that
positively reinforced behaviour will likely be repeated.

Some argue that the refreezing step is outdated in contemporary business due to the
continuous need for change. They find it unnecessary to spend time freezing a new state
when chances are it will need to be revaluated and possibly changed again in the immediate
future. However - as I previously mentioned - without the refreezing step, there is a high

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chance that people will revert back to the old way of doing things. Taking one step forward
and two steps back can be a common theme when organizations overlook the refreezing step
in anticipation of future change. . Also need to make sure employees are not moving to old
techniques and systems again. Creating a reward system, ensuring leadership support,
establishing feedback systems are critical to achieve success of this stage. Training and
development will do main part to adjust the culture in align with the changes.

2.1.1. Kotter’s 8 step change model Commented [IV14]: Satisfactory level of theories have been
used.
John Kotter (1996), a Harvard Business School Professor and a renowned change expert, in
his book “Leading Change”, introduced 8 Step Model of Change which he developed on the
basis of research of 100 organizations which were going through a process of change.John
Kottler introduced the “Kotter’s 8 Step Change Model” to improve an organization’s ability
to change and to increase its chances of success. By following this step plan organizations
can avoid failure and become adept at implementing change. As a result, organizations no
longer need to adjust the changes and they will increase their chances of success.

Figure 03: Kotter’s 8 step change model

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2.1.2.1. Create a sense of urgency – This first step of Kotter’s 8 Step Change Model is the
most important step according to John Kottler. By making employees aware of the need and
Urgency for change, support will be created. This requires and open, honest and convincing
dialogue. This convinces employees of the importance of taking action. This could be
accomplished by talking with them about potential threats or by discussing possible solutions.

2.1.2.2.Form a powerful coalition – It is a good idea to establish a project team that can
occupy itself with the changes the organization wants to implement. This group manages all
efforts and encourages the employees to cooperate and take a constructive approach.
Preferably, this coalition is made up from employees working in different jobs and positions
so that all employees can rely on the group and identify themselves with the team members.
Because of the open character, the groups can also function as a sounding board, which
enables an open communication.

2.1.2.3. A vision for change – Formulating a clear vision can help everyone understand
what the organization is trying to achieve within the agreed time frame. It makes changes
more concrete and creates support to implement them. The ideas of employees can be
incorporated in the vision, so that they will accept the vision faster. Linking the adopted
vision to strategies will help employees to achieve their goals.

2.1.2.4 Communicate the vision – The most important objective of step 4 of Kotter’s 8 Step Commented [A15]: The student has a good understanding
about the step y step process of the Kottlrs model of change.
Change Model is to create support and acceptance among the employees. This can only be Commented [IV16R15]: The learner has stated the theories.
But it could have been better if he actually applied the same for this
achieved by talking about the new vision with the employees at every chance you get and by specific scenario.

taking their opinions, concerns and anxieties seriously. The new vision must be fully adopted
across the entire organization.

2.1.2.5.Remove obstacles – Before change is accepted at all levels, it is crucial to change or,
if necessary, remove obstacles that could undermine the vision. By entering into dialogue
with all employees, it will become clear who are resisting the change. To encourage
acceptance of the vision by the employees, it helps when their ideas are incorporated and
implemented in the change process.

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2.1.2.6.Create short term wins – Nothing motivates more than success. Create short-term
goals so that the employees have a clear idea of what is going on. When the goals have been
met, the employees will be motivated to fine tune and expand the change. By acknowledging
and rewarding who are closely involved in the change process, it will be clear across the
board that the company is changing course.

2.1.2.7. Build on the change – According to John Kottler change trajectories fail because
victory is declared too early. However, change is a slow-going process and it must be driven
into the overall corporate Culture Quick wins are only the beginning of long-term change. An
organization therefore needs to keep looking for improvements. Only after multiple successes
have been achieved, it can be established that the change is paying off.

2.1.2.8. Anchor the changes (Make it stick)– The last step of Kotter’s 8 Step Change
Model. A change will only become part of the corporate culture when it has become a part of
the core of the organization. Change does not come about by itself. Values and standards
must agree with the new vision and the employees’ behaviour must provide a seamless
match. Employees must continue to support the change. Regular evaluation and discussions
about progress help consolidate the change.
2.1.3 ADKAR Model - The Prosci ADKAR Model is a goal-oriented change management
model to guide individual and organizational change. Created by Prosci founder Jeff
Hiatt, ADKAR is an acronym that represents the five outcomes an individual must
achieve for change to be successful: awareness, desire, knowledge, ability,
reinforcement. When applied to organizational change, this model allows leaders and
change management teams to focus their activities on what will drive individual
change and therefore achieve organizational results. ADKAR provides clear goals and
outcomes for change management activities. It also provides a simple, easy-to-use
framework for everyone in the organization to think about change. Employees,
managers and senior leaders alike can all use ADKAR to describe and discuss change
together (Prosci,2017),

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Figure 04: ADKAR Model (source - Prosci, 2017)

Awareness : Employees have to understand the reasons of change and its impacts.
Awareness can be gain as a result of proper communication.

Desire : The change should be accepted by employees. They must have a willingness to
change themselves. Desire will come as a result of sponsorship and resistance management.

Knowledge: Proper knowledge on change is important factor. Training programs,


educational methods, mentoring are the techniques to achieve knowledge.

Ability: The knowledge which is achieving in the third stage should be converted in to
practices. In other words, ability means implantation of the change at the essential Commented [A17]: The student has a very good understanding
about the different models of change and has discussed in detail
performance level. Sufficient time, coaching, practice are the methods to get ability. about three important models of change. The section is well
covered.

Reinforcement: Employees would not be permitted to drive for old approaches again. The Commented [IV18R17]: Agree with assessor’s comments.

change should be sustained. Corrective action, recognizing of successful changes are the
outcomes of reinforce.

The goals and outcomes defined by ADKAR are sequential and cumulative, they must be
achieved in order for effective and sustainable change to take place.

2.2 The relevance of models of strategic change to organizations in the


current Economy

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In the past few decades, the world of business – and therefore the economy – has passed
through several transitions. Globalization links countries and organizations, and speeds up the
way in which business is done. Lean management, empowerment of employees and
collaboration are only a few keywords which can be used to describe the current economy.
When it comes to managing a strategic change in an organization, not all of the models
considered in above section are suitable in the current economy; therefore, they must be
evaluated to determine which is the most appropriate (Johnson et al. 2005).

Following Cummings and Worley (2014) as well as Lauer (2010) Lewin developed his model
in the 1950s, and therefore did not consider most current management approaches. Rather, it Commented [IV19]: Satisfactory level of literature has been
used.
is debatable whether there is any freezing in the current rapidly changing economy;
moreover, the model does not discuss the empowerment of employees. Lewin treats people as
objects of manipulation who are not actively involved in the change process.

Tuckman’s model is not much more recent than Lewin’s, but it is still valid and in use in the
current economy; however, it focuses on change in teams rather than change in organizations.
Therefore, it is not a strategic management tool.

The Burke–Litwin model, the 7-S model and Kotter’s eight steps are still used in the current Commented [A20]: The student has discussed the pros and
Cons of the three models separately and therefore application of
economy. This is mostly because all of them consider organizations in the context of the these model in different situation is able to do successfully/Section
is well covered.
larger environment. On the other hand, due to the use soft factors, these analytical models are Commented [IV21R20]: Agree with assessor’s comments.

not as precise as those of Lewin and Tuckman (Balogun and Hailey 2008).

2.2.1 Curt Lewin’s three stages - One of main theory which gives a visual summary for the
particular change. This model can be used to consolidate all the data and information like
Advantages, disadvantages, supporting factors and opposing factors of the proposed changing
process into one graph. It will be a great opportunity for decision making. Simplicity is
another main advantage of the Lewin’s theory. All level of employees can understand this
model clearly. Therefore, implementation of change and add it to the core culture of the
organization is easy. It will be useful to introduce successful change. ( 07/07/2014 by Mike
Morrison).

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In addition to above mentioned advantages there are disadvantages which makes people to
criticize this model. One opposing factor is lack of consideration on human feelings and
experiences. Only a goal-oriented process. It will provide negative consequences. The Other
thing is full participation of all the levels in the organization will not be possible. Then
information and analysis will not give a clear picture for decision makers. And also, it will
not make a consensus among different teams. It will result in a crisis within the organization.
Then it will harm for the future planning as well as current procedures. According to Rosario
(2011) there are some time-wasting factors. As examples there is no time to stick with the
same change or refreeze after the change is executed. So, some people argue that this model
is not suitable for the today’s business world which is changing in an accelerating speed. But
still Lewin’s model can be used because it can keep employees in the correct track.

2.2.2 Kotter’s eight steps of change model - It is a step by step model which can give clear
guidance and recognizable tasks for the expected change process. Transition is also very easy
in this model compare to the Lewin’s model. Establishing a coalition accumulating existing
employees is an advisable practice. Because they are the people who really know what
requires for the wellbeing of organization and they know every nook and corner of the
current procedure and system. So, the team can play a vital role in the changing process as
well as they can make other pear employees to accept the change. If the organization
possesses a classical hierarchy, then this model is applicable. Commented [IV22]: Models have been described but the
learner haven’t applied the relevance for the particular scenario.

Weaknesses of Kotter’s eight steps model are as follows. None of the step can be skipped. If
misses out plan will be unsuccessful. This process is a top down model. Most of time top
management makes their own decisions without getting others’ participation. It will frustrate
employees and they want to grab the change by heart. If there is a top down change process,
then this hierarchy will be suitable. This is a time-consuming process. (Anastasia 2015)

As a manager, we can use this model to identify gaps in our change management process and
to provide effective coaching for our employees.

The ADKAR model can also be used to: diagnose employee resistance to change, used as a
learning tool in teaching change management, a framework for change management teams to
evaluate their change management plans, a coaching tool for managers and supervisors, help
employees transition through the change process, create a successful action plan for personal
and professional advancement during change, develop a transition plan within change

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management for our employees, to track progress and understand gaps to any existing change
program.

ADKAR model’s supporting factors and opposing factors can be identified as follows. This
model can be used to diagnose resistance to change. It has a great ability to recognize the
reasons to oppose changing process. It will help to take early necessary steps to cure the
problem. This model supports employee transition through the change process. Transition
and change are not same. Change defines what happens to the individual while transition
defines what experience by that individual. Therefore, ADKAR helps to control and change
employees who are engaged in changing process.

2.3- The strategic intervention techniques in organizations to realign the


current Business with the external business environment

According to Stevenson (2011) and Balogun and Hailey (2008) planning strategic change is
the key to an organization’s successful future performance, but there are various challenges to
implementing such strategic planning. Adopting strategic intervention techniques (SITs)
helps to create cooperation between managers and workers as teammates. The use of SIT
models is directly linked to the management style in an organization; there are models
matching autocratic, participatory, proactive and reactive styles.

2.3.1 Human resource management interventions – Human resource management


interventions focus on individuals’ performance in the organization. Human process
intervention:
• Developing recruiting process
• Assigning jobs that makes employees job satisfaction
• Improving performance management for an individual career development in the
organization
• Improving the diversity programs
• Recognizing the employees through reward system

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These aims of Human resource management’s intervention can be gain through coaching,
mentoring, counselling activities, training programs and career planning techniques. (Scott,
2009)

2.3.2 Contingency theory – Companies have embraced the discipline of organizational


behaviour because the area of study can help them better understand employees in a work
environment. Organizational behaviour can be used to assess, manage and predict behaviour
of employees so that companies can better understand how to motivate individuals. There are
situational factors that can affect the study of organizational behaviour and its prediction of
the behaviour of employees.
The contingency theory explains that there are specific situational factors that can affect the
direct relationships between independent and dependent variables in the study of
organizational behaviour. Independent variables (x) are the cause of the change in the
dependent variable, while dependent variables (y) are a response affected by an independent
variable.
There is no one best way to structure a corporation and solve employee problems. It all
depends on the situation. Cheapo Toys has been trying to perfect their organization by
studying different variables that affect employees. Companies need to use trial and error to
see what variables provide the results needed.
Motivation and leadership are just two examples of many independent variables of the
contingency theory, while productivity, turnover and absenteeism are some examples of
dependent variables. Let's look at a real corporate example of how the contingency theory is
significant to organizational behaviour.

2.3.3 Team building interventions– Team building. Team building was originally a group
process intervention aimed at improving interpersonal relations and social interactions. Over
time, this has developed to include achieving results, meeting goals and accomplishing tasks.

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Figure 5: team building interventions

2.3.4 Survey feedback – Survey Feedback is tool which provides an organization with an
honest opinion of what their present or future customers think about them and helps them in
taking an informed decision. Steps Involved in Survey Feedback:
 Identifying the objective of conducting the survey.
 Informing all the members including the team leads and other employees about the
procedure for conducting the survey.
 Starting the ground work.
 Organizing and conducting the interviews of target groups.
 Analysing the data obtained and generating a report out of that.
 Based on the report providing proper feedback.
 Presenting the final report to the top management.
 Devising policies so that the survey results can help to serve the given objective.

Benefits: Knowing the wants and needs of the customers with respect to the products and
services is the driving force for product innovation. Customer is the king in today’s world and
if the product developer has a prior knowledge about the type of product/ service that the
customer needs he can equip himself better to serve the purpose. Making the customers aware
about the product helps in improved decision making and customer satisfaction. A well-
defined survey feedback is instrumental in achieving brand loyalty, achieving profitability
goals and customer retention.

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Challenges: Choosing an appropriate method is a difficult task, also deciding on the fact that
how the survey feedback helps the company policies is a cumbersome task. The main
challenges include:
 Determining how survey feedback is supportive of organization’s marketing and other
strategies.
 Choosing the right tool for product innovation.
 Installing faith in customer’s mind and assuring them that their feedback is given due
weightage.
 Traditional methods have the disadvantage in the fact that they aren’t very effective in
identifying the issues, profiles and the motives behind the customer’s behaviour. Commented [A23]: The student has elaborated on four types
of interventions that can be practically sued by the company
Commented [IV24R23]: Agree with assessor’s comments.

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Task 03

Task 03

3.1 Develop systems to involve stakeholders in the planning of change for


the selected organization

Successful changing process can be implemented only with the collaboration of all the
stakeholders. As one organization it is very difficult to make changes alone to develop the
business progression. But when there is a vast stakeholder action those changes can be
implemented very easily and effective way.

3.1.1 Identifying Stakeholders

A stakeholder is any person, organization, social group, or society at large that has a stake in
the business. Thus, stakeholders can be internal or external to the business. A stake is a vital
interest in the business or its activities. It can include ownership and property interests, legal
interests and obligations, and moral rights. A legal obligation may be the duty to pay wages
or to honor contacts. A moral right may include the right of a consumer not to be
intentionally harmed by business activities. Stakeholders can:

 Affect a business
 Be affected by a business
 Be both affected by a business and affect a business

A stakeholder is often contrasted against a shareholder, which has an ownership interest in


the business. R. Edward Freeman and his book Strategic Management: A Stakeholder
Approach (1984) has had a major influence on stakeholder theory.

The concept of a stakeholder does have moral and ethical implications for business
governance. If a business only has a duty to its shareholders, then the business may have no

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moral obligations to any other person, organization or society. On the other hand, if a
business has a duty to its stakeholders, then a business must take into account the interests of
its stakeholders as well and not focus completely on maximizing the interests of its owners.

Identifying Stakeholder group and developing prioritization plan is the first step of this
engagement process. Stake Holders are the peoples who affect the organization or who are
affected by the organization. They may be internal or external stakeholders. Stake holders
and their interests can be categorized as follows.

Internal Stakeholders: -

Type of stakeholder Expectations


Employees Job security, steady income, empowerment, recognition,
opportunities for development, adequate training
Shareholders good present and future value for their investment, Good
governance, sustainability, Competitive performance, transparency
Board of Directors Profitability, maintaining a steady stream of revenue and cash
flow, effective utilization of resources.

Customers Lowest price, high quality, quick access, quick respond,


Personalized Experiences
Table 1: Internal Stakeholders of Ideal Motors

External Stakeholders: -

Type of stakeholder Expectations


Suppliers Regular orders, timely payment, industry development.

Community Reducing environmental impacts


Government Being a good and law-abiding corporate citizen, On time Tax
payments, opportunities for employment in the society and
availability of products and services in markets, Implementing
green concepts,
Table 2: External Stakeholders of Ideal Motors Commented [A25]: The student has Identified well about the
relevant stakeholders for the company and their importance

3.1.2 Mapping stakeholders Commented [IV26R25]: Agree with assessor’s comments.

To make stakeholders happy, we must first identify stakeholders, and who needs to know what,
and when. Before starting, it’s important to identify and analyze, and then map, your stakeholders

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according to their involvement, emotional and financial investment, and other criteria related to
your project. Typically, a stakeholder analysis should begin with a brainstorming session,
including senior leadership of company if desired.

Stakeholder mapping is the visual representation of a stakeholder analysis, organizing those people
according to the key criteria with which you will be managing them. Some of those criteria may
include interest, influence, financial stake, emotional stake, those on the periphery who are still
important enough to keep in the loop, etc. This can be done on a grid or in a spreadsheet.

Here are a few categories of stakeholders you might have for this example:

 External: The client, including the main client team, their managers, and their division
director. Typically, there are one or two stakeholders identified.
 Internal: top leadership, as well as a general manager, accounting department, and
executive team members, who all want to see the run efficiently and profitably.
 Internal Team: This is the team at company devoted to working, including the account
manager, general managers, service managers, HR manager, project manager, and other
Commented [IV27]: Stated adequate overview on the
resources and whoever else has the necessary skills to contribute to success. stakeholders of the organization.

Figure 7 : Stakeholder Map

After identifying key stakeholders of the organization prioritization plan should be


developed. All the stakeholders are not same. It is not practice engaging with all stakeholders.
Therefore, attention should be varied according to their influential level. Therefore,

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Stakeholders can be mapped by using stakeholder’s influence (power) and their impact level.
It makes possible to build a specific approach for the recognized stakeholders.

By using above two dimensions stakeholder have been divided into four main quadrants.
Stakeholders with high impact level and influence level are Customers, Employees and
shareholders. They engage in an indirect way to core business practices. Those stakeholders’
satisfaction is very crucial to organization to be successful. Peoples who have high impact as
well as high influence are the key group of actors of an organization. So, the company should
engage fully with this group. Those are farmers, SMEs, Suppliers and local community. Who
are having high influence and low level of impact should be managed closely.

Next step is developing strategic approach to address stakeholder concern. The organization
should form a process of constant communication and clarification to realize a real visibility
of the real concern, requirements and level of impacts. Stakeholders have willingness to
engage in business strategy and business plans. So, organization should establish a feedback
mechanism to develop existing plan and recognize modern concerns and areas of
engagements. When designing a strategy, the organization should consider impact of
stakeholder engagement on the business strategy, value of investing in engagement process,
areas of conflicts and cost to be incurred from stakeholder engagement process.

3.1.3 Systems to involve stakeholders in the planning of change

Systems to involve stakeholders: stakeholder analysis, systems modelling, systems and sub-
systems, input transformation-output modelling, multiple cause diagrams, ‘tropics’ factors,
configuration, divergence and convergence, functional and divisional structures, cultural web,
images of organisations, team development, influencing skills, awareness raising,
commitment development.

Involving stakeholders in the change management strategy: six steps stakeholder circle
(identify stakeholders, prioritise stakeholders, map their profiles, develop an engagement
strategy, optimise their support, monitor changes); methods of involvement eg dialogue with
individuals and groups, meetings, presentations, group facilitation, team building, coaching,
delegating, developing and sharing a change plan.

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Resistance to change: types of resistance eg individual versus collective, passive versus


active, direct versus indirect, behavioural versus verbal or attitudinal, minor versus major,
resistance to the content of change, resistance to the process of change.

Strategies: eg open communications, education, involvement, forums, listening to


stakeholders, feedback, addressing needs, ownership of the change, change champions,
communicate the vision, getting the support of all key power players, focus on the positives,
delivering training programmes.

Plan to develop appropriate models for change: choice of appropriate model eg John P
Kotter's eight steps to successful change; Kübler-Ross five stages transition (grief) cycle;
Prosci’s five building blocks ADKAR (awareness, desire, knowledge, ability, reinforcement)
model; McKinsey’s 7S (strategy, structure, systems, shared values, skills, style, staff)
framework; Kurt Lewin’s change management model - unfreeze, transition and refreeze;
Burke-Litwin’s causal change model; action research; gap analysis. Commented [IV28]: Its better if the learner would have

Plan to implement a model for change: organisational development, Business Process Re-
Engineering (BPR), learning organisation, Kaizen, delayering and right-sizing, matrix
organisations, network organisations, adhocracy, virtual organisation, push and pull
strategies, conflict handling, transformational leadership, empowerment, consultation,
contextual planning, contingency planning, adjustments, flexibility.

Develop appropriate measures to monitor progress: eg goal-based evaluation, process-based


evaluation, outcome-based evaluation, regular reports, meetings, quality circles, progress
reviews, milestones, deadlines

There are many alternation approaches used to engage stakeholders in the arrangement of
change in the organization. They are as follows,

Succession planning– Succession planning is a process for identifying and developing new
leaders who can replace old leaders when they leave, retire or die. Succession planning
increases the availability of experienced and capable employees that are prepared to assume
these roles as they become available.

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Figure 8 : Steps of developing a succession plan.

 Identifying key roles

First step is about identifying key roles. Organization has to decide the main objectives and
goals of the desired change. It can take time to find and prepare a promising candidate for a
leadership role. Understanding the development needs of particular employees, considering
organization’s requirements and communicating with staff to gather information are some of
main activities performed in this stage.

 Keep an open mind

While the obvious successor may be the second in command, don’t disregard other promising
employees. Look for people who best display the skills necessary to thrive in higher
positions, regardless of their current title.

 Make the vision known

Include potential managers in strategy conversations to help them acquire planning and
leadership skills, as well as a broad vision of the organization and its objectives. Consider
sharing your succession planning with human resources and your board of directors.

 Offer regular feedback to protégés

When someone uses well-honed presentation skills or outperforms, make note of it. Keep
track of these achievements in a top-performer file so you have something to reference the
next time a management position opens. Diligently chronicling topics like strong work and
achievement will also come in handy during performance reviews.

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 Provide training to peak performers

As you identify your top performers, offer mentoring relationships, job shadowing and
training, which are true articles of value to help them develop new skills and refine existing
ones. Remember that good leaders not only need technical acumen but also strong
interpersonal skills, including standout verbal and written communication abilities, as well as
tact and diplomacy.

 Do a trial run of your succession plan

A vacation is a great time to have a potential successor step in to assume some


responsibilities. The employee will gain experience while you learn how prepared the person
is to take on a bigger role.

 Use your plan to develop a hiring strategy

Once you’ve identified internal employees as successors for key roles in your organization,
take note of any talent gaps. In this way, the succession planning process can help you
identify where to focus your recruiting efforts.

If the organization has already established strong practices in governance, leadership and
management, then succession planning often is a matter of using current practices, rather than
establishing many new ones. Key practices of IDEAL Motors include having:
 A strategic plan that clearly conveys the organization’s mission and current strategic
priorities. Ideally, that plan also includes specific action plans that specify who is
going to do what and by when in order to address each priority.
 Up-to-date and management-approved personnel policies about hiring, supervising
and firing personnel in a fair and equitable manner that complies with employment
laws.
 An up-to-date job description for each of the roles, and that explains the general Commented [A29]: The student has mapped the stakeholders
and identified step by step approach to tackle them and involve all
duties and responsibilities of the positions. the stakeholders in a change.

 Suitable compensation for the roles (often this is a major challenge for new The section is well covered.
Commented [IV30R29]: Agree with assessor’s comments.
organizations because they often have very limited resources).

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 An annual calendar of the role’s most important activities, for example, when the
person in that role evaluates personnel, does any staffing analysis, updates job
descriptions and participates in important committees.
 Regular reports from the person in the role. These reports should include the trends,
highlights and issues regarding the person’s activities.
 Evaluation of the person on an annual basis, including in reference to the job
description and any performance goals established for that role.
 Arrangements with the person when he or she goes on vacation so that others have an
opportunity to effectively replace the employee if only for a temporary period of time.
 A complete list of major stakeholders – of people who have an interest in, or will be
influenced by, the employee’s leaving and being replaced by someone else. Get a list,
including contact information and also how each is approached and who does that, in
case that information is needed when/if the employee leaves. This is true especially if
the employee is a high-level executive. In that case, get a complete list of other
stakeholders, for example, collaborators and suppliers.
 Fiscal policies and procedures to ensure strong oversight of finances, including that
financial numbers are correct and tracked accurately, and also that there are sufficient
funds to pay near-term expenses.
 At least annual discussions with key employees regarding succession planning,
including how to manage effectively in the employee’s absence. (Be sensitive in
raising this topic with the employee so that he or she is not overly concerned that
executives somehow want a change now). This discussion can be an opportunity to
hear about the employee’s career plans and desires, too.

3.2 Change management strategy for the engagement of Stakeholders in


Ideal Motors

Stakeholders are people or groups, it should go without saying that the more Stakeholders can
be engaged, the better its chances of success, and the easier. At best, good stakeholder
engagement can reduce opposition from those who may be negatively impacted by the
changes it creates. At worst, poor stakeholder engagement can cause negative reactions from
those who stand to gain.

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A key thing to remember is that stakeholders are people. Effective stakeholder strategy
therefore depends on development of effective relationships that consider people’s needs,
emotions and behaviours.

Identify how stakeholder engagement will be managed. Drawing on work done to date, a
stakeholder engagement strategy is a helpful tool for recording:

 The list of stakeholders

 Their interest

 Their needs

 Their priority

 The engagement approach to be used (including medium and frequency)

 Who is responsible for engaging with each stakeholder (including any additional
requirements, such as sign off of communications), and

 How effectiveness of engagement approaches will be monitored and assessed.

This step is to put your Stakeholder Engagement Strategy into action (whilst remembering to
regularly review your list of stakeholders & their needs).

Here are some tips to consider when working with Stakeholders:

1: Involve stakeholders in identifying the solution

Engage people early to discuss the challenge that requires change rather than details of a
solution you’ve already finalized and want them to agree with. And listen to what they say.
There are various benefits in doing this:

 No one can know everything about everything – stakeholder perspectives may offer
new insight that helps define the right solution, and the stakeholder may have a better
solution than you.

 If the stakeholder feels like part of the team identifying the solution, they will feel
more ownership of and commitment to the change process.

 No one likes to be consulted on something that is going to happen whatever they say.

2: Be aware of the emotional implications of the change process.

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As covered in our introduction, stakeholders are people, and can therefore be expected to
have an emotional response to the change process. Ideal Motors goes as far as suggesting that
stakeholders will only connect with a proposal rationally after they have connected
emotionally, and recommends focusing on building an emotional connection with the reason
for change during initial stages of the engagement process.

It’s also important to keep considering how others may be feeling about or perceiving a
change throughout the project, and to tailor communication accordingly.

3: Differences may not be as significant as they seem.

Similar underlying concerns can manifest externally in ways that make people appear
diametrically opposed in outlook. Seeking common ground behind surface differences may
help identify ways to build positive relationships with stakeholders who seem irrevocably
opposed to the change.

It’s also important to avoid the natural temptation to focus attention on stakeholders who
support the change. Working with those who support what you are doing may be easier in the
short term, but working with those who don't may be more important in reaching a successful
conclusion.

4: Don’t let momentum fizzle out.

Successful stakeholder management isn’t just about getting people engaged at outset – it’s
also about maintaining everyone’s momentum throughout the change process. Be mindful of
this, and counteract by maintaining a sense of urgency.

5: Think about who can best engage with different stakeholders.

For a range of reasons, the change team may not always be the best people to engage with
certain stakeholders.

One approach to successful engagement - especialy in larger groups - is to utilise the energy
and influence of people who would be classed as ‘Early Adopters’ on Everett Rogers’
innovation adoption curve, and enable them to act as champions for the project within a wider
stakeholder community. Early Adopters can also help counter negative energy and resistance
that may come from people falling into the ‘Late Majority’ or ‘Laggard’ categories of the
curve in workshops etc, creating a positive energy that maintains project momentum.

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6: Talk to people

It’s easy to overlook the benefits of having a conversation with a stakeholder to build trust
and common understanding, rather than relying on more formal, one way communications
such as presentations or email updates.

7: Avoid trying to force change

If people are resistant to a change, try to understand the reasons why, and look for ways to
reduce that resistance (rather than just trying to force people to accept what is happening).

8: Trial ideas

Trialling change ideas can help demonstrate benefits and allay concerns in a relatively safe
environment for all concerned (whilst providing a useful opportunity to test whether the
change is likely to have its intended impact). Even if its not possible to trial a whole project,
it should be possible to trial certain aspects which may be of concern to certain stakeholders –
such as different room uses before a move to a new building.

There are mainly three elements of a change management strategy. Situational awareness of
the change, a supporting team structure and change management strategy analysis.

3.2.1 Situational awareness–

There are three elements of situational awareness.

CONTEXT: This is about understanding the forces that are shaping world and our decisions.
Who or what is pushing for a decision? What is happening in the industry and the competitive
landscape? Where are we in the business cycle?

CIRCUMSTANCE: What has happened? Where is momentum going and who has the
advantage from a momentum perspective? What can recent and long term history teach us
about where we are and how we got here?

CONSEQUENCE: What could happen in the future as a result? What are the possible and
likely outcomes? What are the implications and extrapolations from the decisions we and
others are making?

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Engineering managers have a variety of tools to help in all three aspects. Statistical analysis
helps us understand context and circumstance. Trend analysis can help us understand whether
the data we just collected makes sense and is consistent with the past and part of a slowly
evolving picture, or is possibly part of a picture that is undergoing rapid and dramatic change.

A systems approach to problem solving is often helpful in understanding the broader context.
A simple example comes from the auto industry. We can look at supply chains and ask what
the current rate of consumption of new cars happens to be, but without also knowing the
current rate of production and the current inventory levels, it is hard to assess whether the
industry is moving in a healthy direction or not. Without knowing these types of figures in
individual regions, you may also get a distorted picture.

Figure 08 : (Ideal Motors Annual Reports, 2017)

This graph says market share of the Ideal Motors in automotive industry. So, to maintain this
position and develop the company organization should be aligned with the present
competitive environment.

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Ideal Motors can use TV, Radio and Newspaper advertisements and social media network to
promote this service. Stake holders should have an idea about impact on them, then
customers can take maximum from this service, employees can perform to avoid panic and Commented [IV31]: The learner has made suggestions for
improvements.
suppliers would be notified about what will be expected of them.

3.2.2 Supporting team Structure – The forming–storming–norming–performing model of


group development was first proposed by Bruce Tuckman in 1965, who said that these phases
are all necessary and inevitable in order for the team to grow, face up to challenges, tackle
problems, find solutions, plan work, and deliver results. Commented [IV32]: No citations or references provided.

Figure 9 : Team Development steps

Forming: In this stage, most team members are positive and polite. Some are anxious, as they
haven't fully understood what work the team will do. Others are simply excited about the task
ahead. As leader, play a dominant role at this stage, because team members' roles and
responsibilities aren't clear.This stage can last for some time, as people start to work together,
and as they make an effort to get to know their new colleagues.

Storming: Next, the team moves into the storming phase, where people start to push against
the boundaries established in the forming stage. This is the stage where many teams fail.
Storming often starts where there is a conflict between team members' natural working styles.
People may work in different ways for all sorts of reasons but, if differing working styles
cause unforeseen problems, they may become frustrated. Storming can also happen in other
situations. For example, team members may challenge your authority, or jockey for position
as their roles are clarified. Or, if you haven't defined clearly how the team will work, people
may feel overwhelmed by their workload, or they could be uncomfortable with the approach

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you're using. Some may question the worth of the team's goal, and they may resist taking on
tasks. Team members who stick with the task at hand may experience stress, particularly as
they don't have the support of established processes or strong relationships with their
colleagues.

Norming: Gradually, the team moves into the norming stage. This is when people start to
resolve their differences, appreciate colleagues' strengths, and respect your authority as a
leader. Now that your team members know one another better, they may socialize together,
and they are able to ask one another for help and provide constructive feedback. People
develop a stronger commitment to the team goal, and you start to see good progress towards
it. There is often a prolonged overlap between storming and norming, because, as new tasks
come up, the team may lapse back into behaviour from the storming stage.

Performing: The team reaches the performing stage, when hard work leads, without friction,
to the achievement of the team's goal. The structures and processes that you have set up
support this well. As leader, we can delegate much of your work, and we can concentrate on
developing team members. It feels easy to be part of the team at this stage, and people who
join or leave won't disrupt performance.

3.2.3. Change management strategy analysis

This stage involves risk analysis to be carried out. What degree of risk is involved in this
change? What will happen if this strategy fails? In case there is no progress even after this
change, what will we do, what if lenders refuse to pass a load. In case of resistance from
stakeholders a resistance to change strategy will be required. Management will give their best
to negotiate on good terms with the suppliers and use the bargaining power. Management
also need to convince the bank and lenders to pass the load and take them into confidence.

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3.3 Evaluation of the Systems used to involve stakeholders in the planning


of change in Ideal Motors

Figure 10: Evaluation of involvement of the stakeholders in the planning of change

Change management is one such phenomenon which occurs throughout the organization and
therefore the need to adopt different mechanisms for different departments is imperative. The
general validity and reliability criteria used for general tests can also be applied to the
situations where change is to be applied to the organizations. These two criteria for
evaluating a system effectiveness can be applied to the change management situation
however a considerable degree of change is required to implement these concepts in the
change management initiatives. The focus needs to be shifted from the quantitative aspects to

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the qualitative dimensions. A change management participation system which has proved to
work well in one kind of change may show similar degree of effectiveness in the other
situation. In any case, the systems which are developed with the help of employee
participation and assert the need of opinions from all the internal and external stakeholders
exhibit success when applied in one or the other type of change. Kotter (1996) asserted in his
famous model for change that the change management system which have the highest
employee participation have higher success rates as compared to the systems where
stakeholders were involved at one stage of the change and not at others.

Developing an engagement strategy and Developing a plan to optimize stakeholders – Ideal


Motors uses under mentioned process to improve stakeholders’ engagement in changing
process. Ideal Motors strongly believes internal and external stakeholder commitment can
assist better define of their strategy and sharpen decision making. Each stakeholder has his Commented [A33]: The student has selected the correct model
and related the same for the company. Section coverage is
own expectation. Organization’s financial performance will be dominant for some adequate
.
stakeholders, while some others are taking innovation and leadership greater priority. Commented [IV34R33]: Agree with assessor’s comments.

Figure 11:Stake holder identification process and engagement process for Ideal Motors

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3.4 Create a strategy for managing resistance to change for


Ideal Motors
It is normal to experience resistance whenever there is change. Understanding that there will
be resistance to change will help you anticipate resistance, identify its sources and reasons,
and modify your efforts to manage the issues of change to ensure the success of change
efforts.
As the leader, we must take the time to understand resistance and we may have to come at it
from several different angles before it is conquered.
We must understand what our employees are feeling, as well as thinking.
Ways to reduce resistance to change:
1. Involve interested parties in the planning of change by asking them for suggestions and
incorporating their ideas.
2. Clearly define the need for the change by communicating the strategic decision
personally and in written form.
3. Address the “people needs” of those involved. Disrupt only what needs to be changed.
Help people retain friendships, comfortable settings and group norms wherever possible.
4. Design flexibility into change by phasing it in wherever possible. This will allow people
to complete current efforts and assimilate new behaviors along the way. Allow
employees to redefine their roles during the course of implementing change.
5. Be open and honest.
6. Do not leave openings for people to return to the status quo. If you and your organization
are not ready to commit yourselves to the change, don’t announce the strategy.
7. Focus continually on the positive aspects of the change. Be specific where you can.
8. Deliver training programs that develop basic skills as opposed to processes such as: Commented [A35]: The student has identified number of ways
that can be practiced to reduce the resistance to change.
conducting meetings, communication, teambuilding, self-esteem, and coaching. Commented [IV36R35]: Agree with assessor’s comments.

The technical aspect of the change is the making of a measurable modification in the physical
routines of the job. The social aspect of the change refers to the way those affected by it think
it will alter their established relationships in the organization.

In the first episode, the interaction between the service manager and the technician tended to
sustain the give-and-take kind of relationship that these two people were accustomed to. The

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technician was used to being treated as a person with some valuable skills and knowledge and
some sense of responsibility about her work; when the service manager approached with his
idea, he felt he was being dealt with in the usual way. But, in the second episode, the new
service manager was introducing not only a technical change but also a change in the
technician’s customary way of relating herself to others in the organization. By his brusque
manner and by his lack of any explanation, he led the technician to fear that her usual work
relationships were being changed. And she just did not like the new way he was being
treated.
The results of these two episodes were quite different also. In the first episode there were no
symptoms of resistance to change, a very good chance that the experimental change would Commented [A37]: Used a practical example to elaborate.
Commented [IV38R37]: Agree with assessor’s comments.
determine fairly whether a cleaning solution would improve product quality, and a
willingness on the part of the technician to accept future changes when the service manager
suggested them. In the second episode, however, there were signs of resistance to change,
failure to prove whether the modified part was an improvement or not, and indications that
the technician would resist any further changes by the service manager.

Training and education - Training and education has a significant impact in driving
appropriate change management. It will cut down on the resistance that are sensed by the
organisation. When introducing a new system, the delivering staff members should have to
know about the service, the procedures to be followed and also the nature of the service.

Communication – every employee, manager, and leader within the organisation must be
made attentive and aware of the change. Communication with the key stakeholder properly
through meetings and formal communication will drive to learning and change within the
organisation. Managers required to communicate broadly and honesty with all the
stakeholders and discuss the issues with them. Even if they are supporting the change Commented [A39]: Expalined the most important two methods
of reducing resstance to change.
management need to check with them back to back to ensure the full commitment. Commented [IV40R39]: Agree with assessor’s comments.

Management need to hold meetings, brainstorming session with the staff and communicate
with them.

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Task 04

4.1 appropriate models for change for

Ideal Motors

“Since the environment is dynamic, it is important for the organisation to change itself to
make it compatible” (Pathak, 2011, p.23). Considering specific organisational characteristics
associated with the business and on the basis of popular strategic change management
models, an affective model for change be proposed specifically for Ideal Motors that consists
of the following seven stages:

1. Searching for opportunities to gain competitive advantage


2. Developing an initial change plan
3. Obtaining stakeholder perspective on the issue
4. Revising the change plan according to stakeholder perspective
5. Preparing employees for the proposed change
6. Implementing the change initiative
7. Ensuring the continuity of the change

Implementation of the proposed change model for Ideal Motors involves adhering to the
stages of the model specified above in a consequent manner. The main advantage of the
model relates to encouraging a proactive approach in relation to organisational change within
Boots. In other words, instead of introducing changes as a response to changing external
environment in a reactive manner, the model encourages Ideal Motors management to be
searching for opportunities to gain competitive advantage in a proactive manner. Importantly,
the above model for Ideal Motors has been proposed only as a general framework and its
implementation in practice may be associated with minor alternations depending unique

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aspects of each individual change proposal. This report has identified Kurt Lewin’s change
management model as the suitable model for change.

Figure 12: Kurt Lewin’s change management model

Kurt Lewin developed a change model involving three steps: unfreezing, changing and
refreezing. For Lewin, the process of change entails creating the perception that a change is
needed, then moving toward the new, desired level of behaviour and, finally, solidifying that
new behaviour as the norm.

Unfreeze: It is well known that individuals naturally resist change, as they prefer processes
and strategies that they know to those that they do not. Lewin argues that to overcome this,
individuals must be encouraged to examine current processes with a critical eye and be open
to the possibility that a new process may produce a better outcome. The author explains that
this process is not easy but reaching out to your employees' emotional side will give you the
best chance of success, “To break open the shell of complacency and self-righteousness it is
sometimes necessary to bring about deliberately an emotional stir-up.” This is a key
leadership skill, as breaking down the status quo and pushing individuals out of their comfort
zone is likely to lead to the acquisition of new skills, continuous improvement of processes
and, ultimately, better organizational performance. The author suggests using ‘Force Field
Analysis’ to determine whether a change is appropriate, weighing up the positives against the
negatives of a likely change. Commented [IV41]: Same theories have been repeated.

Change: Once individuals have accepted current processes could be improved and there are
potential solutions to the problems, the next step is to implement the change. This process

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may be complicated and chaotic, and costs may be incurred, so a long-term view is essential
for maintaining confidence and morale. This stage provides the best opportunity for skill
development and gaining experience, but also requires a great amount of support and
training. Communication and leadership are essential for ensuring the change process occurs
effectively and no one is left behind.

Refreeze: The author defines the final ‘freezing’ stage to be the most crucial in the overall
process, as often a change will only last a small amount of time before switching back to its
original state. For that reason, it is essential that the change is properly reinforced and
sustained. This may incur more costs and prolong the change process even further, but it is
important that the resources that went into initiating the change are not wasted. It is common
that a major change initiative takes place and individuals change the way they work, only to
slip back into old habits as the push for the change is relaxed. A common criticism of this
model is that resources and time for this stage are often limited as its importance is
underestimated. Therefore, it is common that this stage doesn’t take place. It is also said this
‘freezing’ after the change takes place runs the risk of the organisation being inflexible when
the next change is needed, which in fast-evolving modern business environments can be very
soon after.

Initially we start by creating the motivation to change (unfreeze). Then move through the
change process by promoting effective communications and empowering people to embrace Commented [A42]: Used Ket Lewins model of change and
applied to the company well.
new ways of working (Change). And finally, the process ends when you return the Commented [IV43R42]: Agree with assessor’s comments.

organization to a sense of stability (refreeze), which is so necessary for creating the


confidence from which to go on board on the next, foreseeable change.

4.2 Outline the plan to implement a model for change for the

Ideal Motors
In the development of planning and the application process, an appropriate model for change
in the organisation has to be followed. The following range of steps and timelines could be
established which are required for the successful implementation by Ideal Motors.

According to Adenle (2014) ‘Organisations that get change right are those that plan and have
a formal, systematic process for change’. Typically, such organisations have pure guidance
and leadership who develop a strong vision of preferred outcomes and guarantee that an

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Edexcel Level 7 Diploma in Strategic Management and Leadership

integrated communication, solid change management strategy, as well as strong employee


motivation have encouragement in the overall success of an organisation's change.

Unfreeze stage

I. Education programs on the change activity - The main change which will be taking place is
the introduction of the Ideal First Choice new work shop system and the relevant staff
members especially the technical staff members will have to be given proper product
training and the underlying concept of the whole process. Education programs such as
workshops, seminars, practical system training will have to be undergone.
II. Meetings to gain a clear understanding on the change requirement.

The higher management, branch managers and service managers will have to have a clear
understanding on the product concept and relevant issues can be raised for example if training
for the branch staff were insufficient etc.

Change stage

I. Implement new product range – Ideal Motors implement small vehicle type for middle level
and lower level.
II. Conduct market researches - Market research can be done on how to improve the
systems and make it customer friendly and also see how the customers are responding to the
change. Different systems can be used such as feedback forms, interviews and also can be
measured through the number of transactions processed.

Freeze stage
I. Implement performance appraisal systems with the new product - Critical market
evaluation and assessment will have to be made and feedback of the product will have to be
monitored and assessed and the marketing team of the Ideal Motors will have to go in line
with the promotions and offers.
II. Drive monetary reinforcement - Upon introduction and implementations of the
product the financial segment will also have to be investigated since the main motive of the
Ideal Motors is to increase the figures in the balance sheet.

Internal and external environments will affect the process of change that is to be adopted by
the organization. As such Ideal Motors will have to ensure that the change management

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Edexcel Level 7 Diploma in Strategic Management and Leadership

process addresses the requirements that arise from the environment appropriately in dealing Commented [A44]: The student has used practical methods of
implementation of change with relevant to the model selected for
with the change management situation that is faced by the organization. the previous section. Section is well covered.
Commented [IV45R44]: Agree with assessor’s comments.

4.3 Appropriate measures to monitor progress of change in

Ideal Motors

4.3.1.Feedback from stakeholders - Feedback from the stakeholders and the remarks are
essential and critical for the successful change and execution of a new change system within
the organisation. Therefore, acceptable care and management attention has to be provided to
in managing change and progress within the organisation.

4.3.2.Feedback through surveys and questionnaires - Feedback through SMS inquiries,


online surveys, and Evaluation forms in the bank branch counters will also help improve the
product since the Ideal Motors will be able to identify if the product has met the customers
satisfaction.

4.3.3.Monitoring the number of transactions - Another method Ideal Motors could use in
order to monitor the progress of change is by tracking the number of services/repairs/selling
vehicles used through the system. Having a high usage of the machines would mean that
customers prefer the service and the change is successful.

4.3.4.Key Performance Indicators - Key performance indicators are key measures that
could establish the success of change management experienced by the organisation.

4.3.5.Customer satisfaction rate - The customer satisfaction rate can be monitored through
spot feedback from customers, monitoring the rate of usage, online surveys/questionnaires
etc. Strong customer satisfaction rates and positive records of customer performance will
ensure the success of change management programs that are undertaken by the organisation.
As such, reports of adequate change successfulness and records of performance within Ideal
Motors.

In order to improve the success of the system proposed and to measure the validity of the
system it will be important for the organisation to drive appropriate performance management
systems, continuous feedback session and senior management commitment in order to bring a
presence of commitment within the organisation to adopt to change and to lead the market. Commented [A46]: The student has identified 5 ways of
monitoring techniques of chage.The section is well covered.
Commented [IV47R46]: Agree with assessor’s comments.

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Edexcel Level 7 Diploma in Strategic Management and Leadership

Continuous research which provides a vivid perspective on the changing market trends,
consumer and business direction that is being taken by the market is some of the significant
factors that are to be undertaken by the organisation.

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