Business Transformation Planning

This paper evaluates approaches towards business transformation by focusing on performance, organizational goals, and stakeholder interests. It provides relevance to New World Company, a renowned supermarket in New Zealand. The paper also focuses on internal and external compliance requirements and risks relevant to organizational transformation, along with a communication plan.

Running head: BUSINESS TRANSFORMATION PLANNING
BUSINESS TRANSFORMATION PLANNING
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Executive Summary
It has been argued that effective transition in business is crucial to any large or small
organization in order to sustain and further accomplish in the globalized era which is persistently
evolving enhanced business environment. However, it acts vital to the facts that the need for
change management is often regarded as unpredictable and thus has a propensity to be
involuntary and discontinuous and further can be influenced by circumstances related to
organizational dilemma and complexities. The aim of this paper is therefore to provide an
evaluation of approaches towards business transformation by focusing in the degree of
performance and organizational goals along with the level of interest stakeholders have in the
process of change management by further provide relevance to the New World Company, one of
the renowned supermarket in New Zealand.

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Table of Contents
Introduction......................................................................................................................................4
TASK 1- Performance and organisational objectives and stakeholder interests in business
transformation..................................................................................................................................5
(A) Internal and External Stakeholder’s Engagement in the business transformational
procedure.....................................................................................................................................5
(B) Importance of involvement of internal and external stakeholders in the planning for the
transformation process.................................................................................................................6
(C) Performance and organisational objectives to achieve business transformation for New
World Company...........................................................................................................................7
(D) An ethical decision-making framework to overcome ethical challenges that could be
caused due to business transformation decisions made by New World Company......................9
Task 2: Internal and external compliance requirements and risks relevant to organisational
transformation................................................................................................................................13
(A) Analysis of 2 internal and external risk factors associated with organisational
transformation............................................................................................................................13
(B) Analysis of Internal and External compliance requirements for organizational
transformation............................................................................................................................14
Task 3: Communication Plan.........................................................................................................15
Conclusion.....................................................................................................................................16

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References......................................................................................................................................16

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Introduction
Business transformation is regarded as a business-led, technology-enabled transformation
programme in order to implement the infrastructural process and competence of the organization
to deliver a contemporary revenue system. In a globalized era of unprecedented rate of disruption
along with market turbulence, transformation in recent times have been revolving around the
demands to generate improved standards and values in order to develop avenues and to drive
improved growth and further deliver new productivity and efficiencies (Aspara et al., 2013). An
effective business transformation can be regarded as an opportunity which surpasses the
incremental transition by establishing opportunities to re-instate the business and operate models
to deliver advanced value and growth. The process of business transformation incorporates
strategic decision-making which influence the functioning of the organization along with the rate
of performance improvements (Jeston, 2014). Leaders in business transformation implement
well-established strategies which underpin a wide-encompassing range of enterprise-wide
investment decisions, resource distributions along with performance expectations. It aids to
shape an executable transition purpose whereby the value will reflect from the transformation
(Mamic, 2017). Business enterprises which have provided funding for effective articulation of
the transformational strategy can interpret the strategic objectives into pragmatic transformation
which can further be executed by the organization (Müller & Pfleger,2014). Furthermore, these
organizations develop an inclusive understanding and awareness of the way the business
operations will be formulated, delivered and enhance their organizational value. The purpose of
the paper is to provide a thorough evaluation of the importance of performance and
organizational aims along with the interest of stakeholders in business change by relating one of
the renowned supermarket chains called New World. The organization situated in New Zealand

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has gained a considerable degree of recognition for its customer service and wide range of
products to accomplish the essential needs and demands of its customer base (Newworld.co.nz,
2018). In addition to this, the paper will focus on the requirements and demands of internal as
well as external compliance requirements and risks relevant to organizational change and
development by further providing a communication plan in order to highlight the process of
transformation.
Task 1- Performance and organisational objectives and stakeholder interests
in business transformation
(A) Internal and External Stakeholder’s Engagement in the business
transformational procedure
Organizational management is influenced in a greater degree by the views and opinions
of internal and external stakeholders which is referred to any group, individual or association that
is further being impacted the business organization and thus has been considered as a
fundamental entity of the organization (Storbacka et al., 2013). As employees are considered to
be primary internal stakeholders, they tend to provide a contributory role to the development of
strategy approaches as well as the functioning of the business (Mamic, 2017). Thus modern
theorists tend to highlight a greater level of consistency which perceives that inclusion of
employees is perceived as one of the most significant success factors of transformation along
with the implementations of unique organizational concepts (Cameron & Green, 2015). It has
noted that the engagement of employees enhances the situations such as the level of resistance
within the process of business transformation. However, it has been identified that major
proportion of change management strategy approaches were unable to achieve success because

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around 70% of neglecting the importance of human needs while the rest encouraged the
involvement of proficient and methodological domains (Ceulemans, Lozano & Alonso-Almeida,
2015). Thus modern business enterprises have been promoting active participation of employees
in the decision-making processes. Suppliers and distributors being one of the fundamental
stakeholders influence and is influenced by the success of the organization’s goals (Weiss,
2014). As suppliers and distributors of a business is essentially concerned with long-term
decisions, it is prudent to encourage the involvement of these stakeholders in the process of
planning as well as execution of transformational business for the implementation of overall
organizational success (Waddell et al., 2016).
(B) Importance of involvement of internal and external stakeholders in the planning
for the transformation process
Stakeholders can be regarded as any association or individual who tend to impact or
further get influenced by the organizational accomplishment (Weiss, 2014). Thus stakeholder
management has been considered as a procedure underpinned by set of standards which further
ascertains the attainment of the strategic goals of the business organization by construing and
persuading the external as well as internal environments by establishing positive associations
with the stakeholder base through the appropriate management of the organization’s set of
expectations (Ceulemans, Lozano & Alonso-Almeida, 2015). Thus the idea concerning the
involvement of both internal and external stakeholders suggests that organizational leaders must
effectively formulate and execute transformational procedures which would aim to satisfy all the
members of the organization who possess a stake in the business (Storbacka et al., 2013).
Furthermore, the management of the organization must effectively correspond to the

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requirements and demands of the business to the stakeholder base in order to ensure consistent
achievements of the organization.
(C) Performance and organisational objectives to achieve business transformation
for New World Company
It has been noted that all business enterprises possess standard operational objectives
which have been applied to each types of operation. However, these standard aims have been
distinguished as ‘performance objectives’ and are further drawn into the assessment of current
degree of performance to the following five years performance (Waddell et al., 2016). However
the range of comparison has been formulated for the standardized purpose and can further
facilitate the understanding of the performance level of the business. The two primary
performance objectives can be analysed in accordance with New World.
 Quality- This objective indicates the production process of the business enterprise
through distinctive approaches which facilitates the satisfaction level of consumer base
and developing the efficacy of the internal operation procedures (Weaver, 2014). Quality
being recognized as one of the essential entity in the domain of outbound products and
further permits the organization in reducing expenditures (Weiss, 2014). New World
Company must demonstrate enhanced quality performance among all the operational
activities because of the implementation of supply chain management in past years
further aim for the increase in satisfaction of final customer with minimal costs.
 Cost- In the retail industry, the cost driver is regarded as a potential mechanism to
develop competitive advantage as lower or economical price range tends to attract greater
range of customers and further improve the prospective target in order to develop the

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structural formation of the organization (Lawrence & Weber, 2014). New World must
focus on the sustainability of economical costs within the operation procedures because
of its internal system that further purposes to facilitate the achievement of enhanced
quality of product but higher cost rather than focusing on reasonable cost range with the
outsourcing assessments by its biggest competitor Napier Supermarket in New Zealand.
Furthermore, New World will endeavour to establish in an economical market because of
competitive supply chain formulation that further is immensely responsive towards its
customer demands thus gaining high margin profits.
Business enterprises can distinguish the areas of concern and establish the essential
objectives for their organizational functioning but further necessitate specific strategy approaches
in order to enhance the level of advancement (Bocken et al., 2013). The transformational
planning stage incorporates courses of action and identifies the outcomes which the company
aims for (Katzenbach & Smith, 2015). In order to sustain the rate of transparency within
transformational planning, New World Company must take into consideration two primary
objectives in the course of this transition process.
 Sales and Profit- Financial goals are identified as fundamental to every business as
they underpin the level of sales growth influencing the revenue generation of the
organization (Bocken et al., 2013). Thus it is essential for New World Company to
engage into both sales as well as profit objectives as increased rate of sales does not
necessarily develop to a lucrative business. As a result, New World Company must aim
to formulate its monthly sales outlooks and progress along with the amount of revenue
it will generate.

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 Production-Companies must sustain the level of their production with the elevating
rate of their sales growth (Jay, 2013). Thus, New World Company must ascertain the
process of its new system which can supply in accordance to the customers demand and
needs. However, this organization must keep in consideration the persistent delays
which might result New World Company to lose primary clients and get involved in
poor reputation in the industry. Furthermore, if the New World Company effectively
strategises production objectives in correspondence to its sales growth, the company
will successfully develop a system to accomplish customer satisfaction and further
provide superior customer service.
(D) An ethical decision-making framework to overcome ethical challenges that could
be caused due to business transformation decisions made by New World Company
Lewin’s Model of Change and Ethics

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Change management is a similar concept implemented in all forms of organization
whereby it incorporates the conceptualization of business transformation and the areas of ethical
dilemmas faced by the organization. Lewin’s Model of Change and Ethics is recognized as a
cornerstone theory of organizational transition. Lewin’s model of change and ethics involves
three significant stages namely unfreeze, change and refreeze (Hayes, 2018).
 Unfreeze- This stage, recognized as the initial phase engages into reducing the forces
which tend to sustain the current status quo pertaining within the organization
with either the rise of the motivating forces further condensing for of control or
implementing the amalgamation of both. Thus in order to successfully prepare
New World Company for an effective transition, it is essentially important for the
company initiate from the core (Cummings, Bridgman & Brown, 2016).
 Change- It primarily focuses on relating actions concerning the target system to the
anticipated state of equilibrium and further creates intervention in the system in order to
develop new behavioural, attitudes, principles and ideologies by implementing transitions
within the organizational structure or processes (Hayes, 2018). The managers of New

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World Company must shed light on the course of individual transition in the changing
environment.
 Refreeze- The third stage essentially aims to assist people in order to institutionalize the
organization and further inculcate necessary and desired transformations. Thus New
World Company must focus on strengthening new patterns and further institutionalize
them through the means of both formal as well as informal tools (Cummings & Worley,
2014).

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Stakeholder engagement
strategy
Stakeholder mapping Action plan
(E) Stakeholder Management Strategy
Through several distinctive
sustainable programs, New
World Company has
successfully established a
strong framework for the
company’s organizational
engagement with distributors
on vital challenges such as
climate resilience.
Furthermore, multitude of
communication as well as
media networks establish
platforms for such engagement
programs whereby the
company anticipates to raise
knowledge and awareness
relating to the essential
sustainable areas of concern.
New World Company might encounter
several forms of challenges in the
process of implementing change. Thus
the company must implement
stakeholder mapping (Bocken et al.,
2013).
SMART GOALS
Specific- In the process of
supply chain management
system, New World
Company must formulate
insistent goals for reducing
the defects in products and
further enhance effective
communication plan.
The company aim to establish
an enhanced society through
the means of innovation as
well as sustainable
development.
Identify- Identification of stakeholder
who is involved in the outcome of the
transition process of the company. The
managers of New World Company
must take into consideration that failure
of the identification of stakeholders will
have severe impact the delay of the
processes (Fulton et al., 2013).
Measurable- New World
company must implement
similar importance in the
process of demonstrating
design to an increased rate of
ordinary tasks of business
execution and attain
successful outcomes
(Cummings & Worley,
2014).
New World Company must
develop their effective
stakeholder management
competencies in order to
provide contribution to a
successful outcome.
Analyze- This step signifies the roles
and anticipations of the stakeholders
who possess a considerable rate of
potentiality to act in the organization’s
transition process (Sayce et al., 2013)
Achievable- Through the
achievement of the
experience, the company
establish, aim to reach to
attain more sustainable
objectives.

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Prioritize- New World Company
through the segmentation of
stakeholders can formulate strategic
plans into appropriate levels and focus
on the following questions-How to
manage stakeholders closely? How to
keep them informed? How to formulate
proper supervision?
Realistic- Whether a team
within the company is
establishing goals in order to
reduce time and further
enhance the level of
customer satisfaction.
Engage- In this final stage, the New
World Company aims to involve their
stakeholders in order to attain their
support and understanding further
creating a foundation of a successful
communication plan.
Timeframe-Establishing
controllable timeline and
sustain
effectivecommunication
comprising all entities tend
to elevate the company’s
goal establishment strategies.

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Task 2: Internal and external compliance requirements and risks relevant to
organisational transformation
(A) Analysis of 2 internal and external risk factors associated with organisational
transformation
Factors related to which can be defined by demonstrating to any element which can
reveal pose threat or may create limitations to the competency of organisational growth.
Internal Risk Factors
 Technology- The developing rate of advanced technologies can be recognised as
one of the critical factors which can pose immense risk to transformation
procedure of the organisation (Mohan & Paila, 2013). In the globalised era
whereby certain technologies have lost its importance well-established
organisations such as the New World Company must implement appropriate
knowledge management system (KMS) in order to condense the impact of
potential risk associated with organisational transition process (Fulton et al.,
2013). It is important to note that all technology adoption projects do not have the
capacity to function in an effective manner does resulting to downside risk.
 Operation- Operation risk management can further play a crucial role in the
process of organizational transformation (Porter & Heppelmann, 2015). Operation
risk management includes evaluation and implementing risks resulting to the
acceptance mitigation or avoidance of risk.
External Risk Factors

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 Political factors can act as risk agents which initiate at the high level
management. Higher level management must comprehend the understanding of
local as well as global directives within the nation in which they want to start the
capitalisation further developing knowledge related to local regulations which can
create direct influence towards organisational transformation process (Mohan &
Paila, 2013).
 Competitor- Knowledge of competitive organisation and their level of
proficiency is regarded as an initial point in dealing with competitive risks in the
organisational transformation process (Porter & Heppelmann, 2015). Thus
effectively monitoring development of competitors can help organisation mitigate
any unanticipated situation and further evaluation of innovations of rivals allows
organisation to recognise market position and further implement effective
decision making process.
(B) Analysis of Internal and External compliance requirements for organizational
transformation
The execution of external and internal compliance operates in most of the organizations
for several years. With the recent advancement of operational risk management as a fundamental
discipline in its own right, the association between the two disciplines require thorough
understanding.
Internal compliance requirements
 Streamline Compliance- The most effective approach to mitigate violations has
effectively been embedded in the compliance performance into the core of the business

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procedures. This further initiates with the range of management activities and further
persists through the distribution operational activities and further accomplishes way to
financial document reconciliation. Streamline compliance is immensely effective for
product and service flow of any organization.
External compliance requirements
 Retail compliance- It facilitates their level operations as they execute their operations
towards the configuration of retailer requirements. Furthermore, transformation of
procedures must accomplish the demands of the retailer base and further be perceived as
an appropriate opportunity for distributors to create developments to the company’s
supply chain management.
Task 3: Communication Plan
Purpose Compliance
requirements to
be communicated
to internal
stakeholders
Two (2) roles and
two (2)
responsibilities of
internal
stakeholders to
ensure compliance
with
organizational
policies for
organizational
transformation
Performance
indicators
required to
keep track of
employee
performance
Training required for
employees to reduce
their resistance to
change during
transformation
process
The
organizational
structure will
transform from
August 1.
Streamline
Compliance- Top-
level electronic
data interchange
can facilitate the
retailer-specific
strategies as well
as packing slips. In
the upcoming days
New World will be
able to update the
entire essential a
distributor
Change
management team
must develop
change
management
strategy as well as
approaches.
Executives and
senior managers-
Must aim to initiate
transitions which
affect the regular
work of the New
Financial
Metrics-
Revenue- It is
recognized as
one of the vital
performance
indicators to
comprehend the
achievement of
the organization.
Costs of
Products Sold-
Through tally
Education and
effective flow of
communication:
Wide range of
strategise
approaches can be
constructive and
further capitulate
effective
consequences with
proper
implementation of
communication.

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demands and
requirements in
order to understand
the way New
Company is
evaluating the data.
World Company. and evaluation,
company can get
improved
knowledge of
product gains.
Increase the
communicatio
n process with
profit and loss
accountability.
Retail
compliance- In
order to make the
change
management more
proficient, New
World must
influence the
knowledge as well
as ideas of the
wider range of
teams.
Process Metrics
Customer
Support Tickets-
Evaluation of a
series of new
receipt will aid
the company to
formulate
enhanced
customers
service in the
retail industry in
which New
World Company
is operating.
Percentage Of
Product Defects:
Aim to evaluate
the percentage
level of sales in
the time frame
we are assessing.
It will aid us to
understand the
percentage level
of defective
products.
Agreement &
Negotiation:
This process of
induction involves
proper process of
negotiation with the
resistors in transition
process by establishing
mutual working
environment and
formulating transition
within the employee
base.
Conclusion
It is to conclude that transformation is a universal entity which influences all
organizations. However, it has been noted that the rate of transition has never been greater and
decisive than in the present persistent developing business environment. Thus successful
business transition is recognized as an immensely required skill. Though current organizational
transformation processes have a propensity to be reactive thus the paper has evaluated the level
of performance and organizational goals along with identifying the engagement of internal and

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external stakeholders towards change management. Furthermore, the paper provided a
stakeholder management strategy approach in order to formulate the strategy approaches of the
stakeholders with mapping framework and SMART Goal plan. The paper has explicitly
identified the internal and external compliance requirements as well as the risks associated with
organizational change management by further providing a communication plan to formulate
strategic communication strategy.

19BUSINESS TRANSFORMATION PLANNING
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