Australian Change Management Report 2022

Running head: CHANGE MANAGEMENT
CHANGE MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
The report critically examined the case of Claymore Consultants and thereby identified the
different issues that were faced by the organization as demand of the clients rose and the
organization expanded to new markets of Australia. On the other hand, the research also
discussed the different change indicators and assessed the issues through the application of
McKinsey’s 7S model of change. Later the report enumerated a set of recommended activities
that might be considered by the case organization with the objective of improving its
performance in the markets and the implications of the activities on the stakeholders. Therefore,
the purpose of undertaking the research is to assess the issues and thereby formulate mitigation
related activities for Claymore Consultants.

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Table of Contents
1.Introduction...................................................................................................................................3
2.Change indicators and change management theories in the case of Claymore Consultants........3
2.1.Change indicators in the case of Claymore Consultants.......................................................3
2.2.Application of change management theory for assessing the problems................................4
3.Changes in form of organizing in the case of Claymore Consultants..........................................6
3.1.Changes that might be undertaken by the organization.........................................................6
3.2. Assessment of the concerns and interests of various stakeholders.......................................8
4.Conclusion....................................................................................................................................9
References......................................................................................................................................10

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1.Introduction
The organizations develop the processes, structure and the market position of the same
through the application of effective change management paradigms. Domingues et al. (2017, pp.
297) stated that the different changes in the organizational operations are related to the needs of
the venture in improving the market situation of the same. In this relation, the discussion focused
on analyzing the case of Claymore Consultants while identifying the different factors relating to
the change indicators. The report will enumerate the different change indicators in the case and
develop coherent understanding of the future scope of change in the organizational processes and
designs with the objective of empowering future growth. The assessment of the issues that are
being faced by the organization and the current change indicators in the venture would enable in
enumerating strategic discourses and recommended activities for growth.
2.Change indicators and change management theories in the case of Claymore Consultants
2.1.Change indicators in the case of Claymore Consultants
The organization has been operating since 1989, after its establishment, and the
consultants contributed to the success of the organization largely based on their hard work and
collaborations. However, the organization started to expand to the different regions of Australia
by 1990’s which increased the number of clients, with complex concerns, for the venture. The
lack of formal structure and procedures affected the capability of the organization in increasing
their efficiency as per the needs of the clients (Rosenbaum, More and Steane, 2018, pp. 301).
Therefore, the organization aimed at developing a formalized business structure in the
organization through departmentalization. Again, the partners devised strategies for managing
the client data base for the long term sustenance of the venture. The partners believed that the
team leaders did not hold proficient communication and thereby the same kept the governance
structure centralized, which affected the rate of satisfaction among the senior team members who
have been working in the organization since its initiation. It has been noted through the report
that the high trust and collaboration among the management and the team leaders eroded due to
the subtle changes and caused turnover in the business (Corfield and Paton, 2016, pp. 95). The
erosion of the trust and collaboration among the team members and the management resulted
to virtual fiefdoms, affecting performance of the teams and team bonding. Lack of incentive
schemes acted as an agent of turning down the interests of the specialists that the organization

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aimed at recruiting and retaining. The organization recruited specialist and generalist staffs with
the objective of optimizing the processes of the same while adhering to the complex needs of the
clients. However, the organization failed to retain the staff members as the same did not propose
any incentive structure. The age old employees of the organization resigned from their posts and
established their new business taking away clients from the concerned organization which caused
the organization to incur huge losses. The organization aimed at expanding in the Asia- Pacific
Region and thereby employed ten specialists in financial planning, strategic thinking and the
like. However, the organization could not retain the loyalty of the employees which affect6ed
their capability of meeting the targets (Burnes, Hughes and By, 2018, pp. 146). The increased
competition in the markets and the decaying position of the venture created an urgency for
changes in the organizational units with the objective of retaining the market position of the
same.
2.2.Application of change management theory for assessing the problems
The different changes that are planned by the organizations are the collective result of an
integrated functioning of the different elements like structure, systems, strategy, staff members,
skills, styles or approaches and the shared values. As per the McKinsey’s 7S model, it might be
stated that the interconnection between the different elements affects the capabilities of an
organization while operating on a change program. Al-Ali et al. (2017, pp. 723) stated that the
interconnection of the elements and the prioritization of all the elements enables an organization
in improving the rate of operations. In this relation, the concerned organization followed a flat
structure which was changed to a formalized structure due to the influence of the overcrowding
clients with complex problems, created dissatisfaction among staffs. On the other hand, the
change in the leadership style of the partners from a transformational to authoritative also
affected the morale of the employees (Imran et al., 2016, pp. 1099). The partners believed that
the team leaders were not fit for making any decision which led the same to follow a centralized
structure of management. On the other hand, the expansion of the organization was restricted
with a growing trend of resignation among the skilled consultants. It has been found that the lack
of motivation among the employees was the major reason for the turnover.

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Figure: McKinsey’s 7S model of change
(Source: Kiitam, McLay and Pilli, 2016, pp. 123)
The age old employees of the organization resigned from their posts as the venture failed
to recognize their contributions, whereas the new skilled consultants left their job due to the lack
of incentive structures in the venture. The lack of proficient rewards and recognition systems in
the organization thereby restricted the capabilities of the same in retaining the trust and loyalty of
the employees towards the business growth. Bui and De Villiers (2017, pp. 22) stated that the
collaborative functioning of the employees greatly contribute to a change initiative that is being
planned by a particular business venture. Moreover, Ruck, Welch and Menara (2017, pp. 906)
opined that the shared values play a major role in improving the rate of collaboration among the
employees and the management influenced by the corporate culture. Initially, the concerned
organization held a collaboration based culture among the team members and the management
which encouraged in the growth and expansion related procedure of the same. However, as the
organization made an expansion in the different parts of Australia, the structure and culture was
changed along with the leadership style of the partners which induced competition among the
teams, lacking collaboration (Guest, 2017, pp. 27). On the other hand, the change in the
leadership approach of the partners in the organization greatly affected the relationship of the age

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old team leads with the organizational leaders, eroding the collaboration between the same and
affecting their performance. Therefore, the application of the McKinsey’s 7S model enabled in
identifying the different issues that are being faced by the organization while undertaking the
change in the organizational procedures for growth and expansion.
3.Changes in form of organizing in the case of Claymore Consultants
3.1.Changes that might be undertaken by the organization
 Inducing decentralized management structure: The decentralized management structure
in the organization would allow the partners in recognizing the potentials of the
experienced employees through posting them in supervisory roles. On the other hand, the
distribution of power through application of decentralized management structure would
enable the organizational partners in developing their capability of focusing on the
strategic steps that might be considered by the venture (Pimentel and Major, 2016, pp.
999). It has been noted during the case analysis that the partners were unable to focus
more on the strategic pathway for the organization as they were preoccupied in managing
the internal operations. The lack of assessment of the market dynamics affected the
capability of the partners in devising the strategies for sustainable growth for the
organization. On the other hand, the decentralized management structure would also
enable the partners in micro-managing the operations of the internal departments (Sturdy,
Wright and Wylie, 2016, pp. 187). Therefore, the partners of the organization might take
steps to decentralize the decision making and managing related activities through
distribution of power among the team leads and efficient workforce with the objective of
micro-managing the internal operations while developing strategies for expansion.
 Developing incentive, rewards and recognition schemes: The introduction of rewards,
recognition and incentive schemes for bringing in new clients would enable the partners
in encouraging the activities of the employees. The partners must take the initiative of
introducing incentive schemes for recognizing the potency and contribution of the
consultants as they bring in new clients through financial rewards in the firm of
incentives and performance bonuses. On the other hand, the partners must also take steps
to conduct recognition programs through which the contributions made by the employees
would be commemorated. The reward, recognition and performance pay related activities

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would enable the partners in encouraging and motivating the activities of the staff
members while inducing a positive competition in the workforce (Rizescu and Tileag,
2016, pp. 139). Therefore, the introduction of different reward, recognition programs
would enable the partners in influencing change in the organizational operations through
active involvement of the employees.
 Creating incremental career development module for the employees: The partners in the
concerned organization might take steps to devise an incremental career development
module for the employees, which would empower and encourage the active involvement
and loyalty of the workforce. On the other hand, the development of a definite career path
would make the employees understand the mutual connection between the organizational
growth and the career development opportunities of the workforce (Termeer, Dewulf and
Biesbroek, 2017, pp. 560). It would enable the partners in not only retaining the trust
and loyalty of the employees but also encouraging their active involvement in the
continuous growth process of the venture.
 Improvising training and development programs to suit the needs of the employees:
Training and development based needs of the employees must be assessed by the partners
through introduction of an HR management team. Assessment of the training and
development based needs of the employees would enable the partners in developing an
understanding on the strengths and weaknesses of the employees and empower them as
per the needs of the job role. Coccia (2016, pp. 384) opined that the training and
development 9of the workforce enables an organization in increasing the performance of
the venture. In this relation, the partners must take steps to identify the training based
needs of the employees and devising suitable training programs with the objective of
improving their performance.
 Promoting collaborative approach among the teams: The promotion of collaborative
cultures among the teams would enable the partners in improving the rate of performance
of the members. The partners might take steps to hold steady communication with the
teams and allocate tasks while segregating a single project among the teams (Harris,
2016, pp. 14). The allocation of a single project for all the teams would not only ensure
the active engagement and collaboration among the members but also improve the
performance of the members as per the demand of the project. The promotion of

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collaborative culture among the teams would allow the partners in improving the
workplace situation from the virtual fiefdoms.
 Improving the data management and creating common accessibility: The data
management and accessibility of data must be made by the partners. The accessibility of
data among the different members of the management and the workforce would again
enable the partners in developing a bond of collaboration among the stakeholders and the
management. Therefore, the organizational management must take steps to develop
efficient data management and accessibility options in the organization with the objective
of maintaining the transparency of the operations while increasing the performance of the
processes.
3.2. Assessment of the concerns and interests of various stakeholders
The assessment of the concerns and interests of the stakeholders is a bigger priority for an
entrepreneur or a partner while devising change in an organization. McKibben (2017, pp. 102)
stated that the stakeholders play a major role in improving the position of the businesses through
their active collaboration and support. In this relation, the structural and management related
changes that were already planned by the partners mostly frustrated and demotivated the
stakeholders, specifically the consultants who have been working with the organization since its
initiation. On the other hand, the lack of appropriate remuneration systems and incentive
structure again affected the morale of the newly recruited employees and restricted their
contribution to the growth of the venture (Horst and Järventie-Thesleff, 2016, pp. 7). Moreover,
the lack of training and development related scope in the organization also affected the interests
of the employees while operating in the organization.
Therefore, the organization aimed at switching the different available alternatives with
the objective of retaining the trust and confidence of the customers towards the venture. In this
relation, the recommended actions for the organization would not only enable the partners in
retaining the trust and confidence of the employees but also empower their performance
(Duffield and Whitty 2016, pp. 1283). The training and development programs, incentive
schemes and recognitions, improvements in the management structure and the like would enable
the partners in motivating and empowering the employees. However, the creation of common
accessibility of data might not be appreciated by the teams as they would not like to share their

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client details to hold on to the competition. In this relation, the partners must take steps to hold
negotiations with the employees with the objective of making the same aware of the need of
accessibility and the manner in which the same might contribute to their performance. Apart
from the internal stakeholders, the external stakeholder like the clients would also be benefitted
through the changes in the organizational operations contributing to performance (Castelli, 2016,
pp. 218). Therefore, the application of the change in the organizational model would enable the
organization in interlinking the concerns and interests of the stakeholders while improving their
market position through creation of effective performance.
4.Conclusion
Therefore, from the above analysis it might be stated that Claymore Consultants
encountered a series of issues relating to restructuring of the organization which affected the
interests of the consultants, resulting to high rates of turnover and declining business position.
The assessment of the issues that are encountered by the organizations and the application of
relevant theoretical concepts of change in the processes enables in improving the situation of a
venture in the different markets. The research developed a clear assessment of the change
indicators in the business case and the subtle changes that might be initiated by the partners with
the objective of retaining the position of venture in the markets.

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