Change management

by Business Case Studies on Monday 30th November, 2009

The vision for London 2012 is 'to use the power of the Games to inspire change'. The London Organising Committee for the Olympic and Paralympic Games (LOCOG) wants to instigate change in a range of social, economic and environmental ways. The LOCOG particularly wants to achieve a sustained improvement in UK sport in terms of both elite performance and grassroots participation. To facilitate these changes, as the preparations for London 2012 continue, it is communicating and consulting with its stakeholders and partners.

One of the major causes of change in organisations is a change in leadership. One business that may well undergo changes next year is Marks and Spencer. Marc Bolland is expected to take over as chief executive from Sir Stuart Rose in the early part of 2010. Since 2006 Mr Bolland has been with the supermarket Wm Morrison. He has been credited with turning around its fortunes after its takeover of Safeway impacted poorly on its financial performance. Sir Stuart Rose, the current Chief Executive of M&S, will stay on as chairman and is said to be looking forward to working with the new post holder. If Mr Bolland intends to make significant changes to Marks and Spencer, there are a number of factors that are likely to impact on how smoothly these take place. His leadership style, for example, will affect how easily his employees accept and embrace change in the workplace. (Times Online 18th November 2009)

Change is inevitable in any business. The LOCOG is different from many organisations in that its vision is to inspire changes that could affect the entire population of the UK. For many organisations, such as Marks and Spencer, change works the other way around – internal changes are made in response to what is happening in the external environment.

Questions
1.List the factors affecting the promotion or resistance to change
2.Explain the techniques which might be used to implement and manage change effectively
3.Using a change model you have studied, show how an organisation could deal with a factory relocation
Answers to questions
1.List the factors affecting the promotion or resistance to changePromotion of change:

  • Use of clear objectives
  •  Effective use of available resources
  •  Education and training
  •  Participation, consultation and involvement
  • Manipulation and coercion

Resistance to change:

  •  Low tolerance to change
  •  Conflict over the need for change
  •  Misunderstanding
  •  Parochial self interest

2.Explain the techniques which might be used to implement and manage change effectively

  •  Effective communication
  •  Negotiation
  •  Action planning
  •  Project champions
  •  Project groups

3.Using a change model you have studied, show how an organisation could deal with a factory relocationModels used could include:

  • Three step model (Lewin) – unfreezing, change, refreezing
  •  Action research model
  •  Planned phase change model (Bullock & Batten) – exploration, planning, action, integration

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