Developing Change Management Strategy for Fast Track Courier Pty. Ltd.
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Added on  2023/06/10
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This article discusses the change management strategy for Fast Track Courier Pty. Ltd. including change goals, cost-benefit analysis, risk analysis, stakeholder management, and communication plan.
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Running head:CHANGE MANAGEMENT Change Management Student’s Name University Name Author’s Name
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2 CHANGE MANAGEMENT Table of Contents Assessment Task 2: DEVELOPING CHANGE MANAGEMENT STRATEGY............3 1. Change Goals and the consequent Impacts.........................................................3 A. What/ who is impacted?....................................................................................3 B. How they are impacted?....................................................................................3 C. Realisation of Impacts.......................................................................................3 2. Change Goals and their alignment to the strategic goals of the organisation......4 3. Cost to Benefit Analysis........................................................................................4 A. Change Requirements.......................................................................................4 B. Cost of Changes................................................................................................4 C. Risks..................................................................................................................5 D. Benefits of introduced Changes........................................................................6 E. Assessment of the Benefits...............................................................................6 F. categorising Changes........................................................................................8 4. Risk Analysis.........................................................................................................8 A. Risks, Barriers and their Analysis......................................................................8 B. Risk Mitigation Plan...........................................................................................9 5. Change Management Plan...................................................................................9 A. Stakeholder Management...............................................................................12 B. Measuring and Reporting Strategy..................................................................12 C. Communication Plan.......................................................................................13
4 CHANGE MANAGEMENT Assessment Task 2: DEVELOPING CHANGE MANAGEMENT STRATEGY 1. Change Goals and the consequent Impacts i) To create a highly motivated employee base ii) To give training to the employees so that they have a better understanding of the strategic plans of the company and thus welcome the changes iii) Eliminate the problems related to industrial relationship iv) To educate the drivers and other employees so that they realise the importance of PDA as well as GPS services A. What/ who is impacted? The drivers would be mainly impacted by the change and their motivation levelintheinternalenvironmentoftheorganisationwouldalsobeimpacted. Presently,thedriversarelargelyunionisedandarestronglyresentingthe introduction of changes like GPS/PDA devices or the one driver per truck strategy. B. How they are impacted? The drivers are currently hindering the change by shoving issues like trust and convenienceinthetwodriverpolicy.Itisrequiredtomakethemrealisethe objectives of the company and educate them by training them so that they are able to use the new technologies easily. C. Realisation of Impacts
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5 CHANGE MANAGEMENT The impact of the organisational changes can be perceived in the initial quarter of the fiscal year 2019. The work of change management in order to achieve the organisational goals is to take place in the same time period only. 2. Change Goals and their alignment to the strategic goals of the organisation Asthecompanypropagatestoexpansionofbusinessbytakingupa integrated policy towards distribution management and the usage of GPS and/or PDA technologies, the change goals spotted are streamlined and are also in sync for maintaining a cohesive and motivated workforce. The change management would not only help to convince the employees to welcome the change, but also motivate the workforce to grow and also develop skills. As per Gruber, Kihm and Lenz(2014), it would also work towards making them realise that the one driver per truck strategy would increase their personal work potential and thus enhance performance which is linked with appraisal and rewards. 3. Cost to Benefit Analysis This is a process involving calculation of costs and benefits associated with a business project and the analysis of the expected profits. A. Change Requirements The requirements for implementing the changes are a Project Manager, automatic lift gates trainer and also a trainer for educating the employees about the use of GPS/PDA technology. B. Cost of Changes The Project Manager can be employed with a wage rate of $100 for every hour for the two initial weeks at the basis of 40 hours every week. During the latter
6 CHANGE MANAGEMENT part of the quarter the work timings can be reduced to 8 hours for every week. The total cost including the charges for half day work of the Lift-gates trainer and the GPS and PDA trainer would sum up to $150 per hour. Cost Incurred for:Every HourNetExpense (Total) To Note The Project Analyst$100$12000.0040hoursaweek andlatter8hours perweekuntilthe end of September TrainerofGPSor PDA $150.00$600.00Half-Daywork session Trainer for automatic Lift gates $150.00$600.00HalfDayWork Session TotalChange management Cost $13,200 Table1: Cost for Change Management (Source: fasttrackcargo.com, 2018) C. Risks Several risks associated with the process of change management are in the diagram below.
7 CHANGE MANAGEMENT Figure1: Risks needed to be managed (Source: fasttrackcargo.com, 2018) D. Benefits of introduced Changes The strategy of using one driver for each truck will enable the company to utilise the other driver for the new trucks purchased by the company. This would help to reduce the operational cost also. The inclusion of this strategy is expected to raise the profit for Fast Track Courier Pty. Ltd. by $2, 00, 000. E. Assessment of the Benefits a. Tangible Benefits BenefitsOn Yearly basisTotal SavingsTo Note Salary of Driver$45,000$360000.00Eightnewtrucks purchasedbythe company,wouldbe runbytheexisting Risks
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8 CHANGE MANAGEMENT driversofthe company Summedup Benefits $360000.00 Savings, every year would be $360000.00 and the cost incurred for change management would be $13,200. This includes charges for educating and giving training to the workforce. b. Intangible Benefits Figure 2: Intangible Benefits (Source: Baines and Shi, 2015) F. categorising Changes a. Tangible Changes- Feasible (F)
9 CHANGE MANAGEMENT b. Intangible Changes: i. Culture Changes- Feasible (F) ii. Management of Employee Relations: Might be Feasible (MF) iii. Changes that are people cantered: Might be Feasible (MF) iv. Personal Change- Might be Feasible (MF) 4. Risk Analysis A. Risks, Barriers and their Analysis RiskAreaof Business SeverityLikelihoodControl level Significance: givenbya summation ofseverity, leveland Likelihood Risk associated with Delays Operations24410 HighRateof Turnover Employees2349 Demotivation ofthe employees Employees3417 Failure to use technology Technology2439 Influenceof unionon Employees3418
10 CHANGE MANAGEMENT Organisationa l strategy Barriers included are incomplete education and training, lack of agreement among the management, employees and the union. Achievement of strategic goals is highly dependent on cordial relationship of management and the employees. B. Risk Mitigation Plan High priority is to be provided to entities with high risk score. The Mitigation planning must include quality training on timely basis and addressing issues on the office floor and within dedicated time-limit. 5. Change Management Plan The five step approach of organisational Change management process is to befollowed.Thisisrequiredbecausetheorganisationisexpandingandthe business process is required to be redesigned.
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11 CHANGE MANAGEMENT Figure3: Development and implementation of Change management Strategy (Source: fasttrackcargo.com, 2018) One awareness campaign have to be developed for educating and training employees for using the new technologies like GPS facility or PDA devices and also describing the truck drivers and the employees the enhancement of their efficiency level associated to the introduction of the changes. This change management is supposedtobeacontinuousprocessandare-evaluationofthechange managementprocessisrequiredtobecarriedoutuntiltheemployeesadapt themselves to the changed atmosphere.
12 CHANGE MANAGEMENT Change Request Analysis Form Change management Request Analysis (Fast Track Couriers Pty. Ltd) Date: CR# Area of Business Current Workaround DescriptionoftheSolutionandits organisational impact Risksassociatedwithchange implementation and mitigation of risks Alternative Workaround Implemented Changes Review TeamContracts Team Teamof Operations Technology Team Support Team Legal TeamProcess Team Finance Team Teamof Infrastructure Development Sponsors A. Stakeholder Management The main stakeholders associated in change process are the truck drivers, the CFO, entire team of HR management, the General Manager, the office team and the Sales team, union and the customers as well. The senior management is aware of the influence of the management and is committed to expand and grow the customer market. The organisation is committed to grow along with increasing the
13 CHANGE MANAGEMENT proficiency of the employees. They are entitled to ensure not only the education of the employees on the technological advancements but also ensure the personal growth as well as the motivation of the employees. B. Measuring and Reporting Strategy TitleFrequencyContentUsage ChangeRequests that are approved WeeklySummaryandthe releasenotesof thechange requeststhatare approved Stakeholdersare notifiedonceina week Analysisofthe changerequests (Completed) When CompletedAnalysisofthe schedule, cost and thescopeof change Upper management shoulddecidethe courseoffuture action Openrequestsof Change aftereverytwo weeks Creating list of the OpenChange Requestbyevery approvalof individual business area. Discussover Status Meetings Metrics ReportTeamMeeting (Monthly basis) NumberofCRs involved,ETAfor the open CRs, no. ofCRsthatare rejected Discussedduring theteammeeting of every month and helpfulfor measuringof
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14 CHANGE MANAGEMENT success. C. Communication Plan Thedriversaswellastheemployeesareinvolvedintheawareness campaign.Themessageissupposedtoincorporatestrategictargets,change aspects of the technology and the operations along with training, plan, performance and lastly recognition management for the workers. The communication is supposed to take place on a weekly basis as well as a bimonthly, monthly and on quarterly basis as well. Communication will take place by meansofEmailexchange,personalmeetings,oralpresentationsandalso discussions. The responsible person is liable for disbursement of correct and specific information. All the employees might not be present in the oral discussions, however participation of truck drivers and the senior management is a compulsory thing. D. Education Training Plan People who are impact ed Content of Trainin g WhenMetho dof Trainin g Responsi ble heads FacilityEquipmen t Beginni ng date Endi ng date UsersProced ure Before implementa tion Led by instruct or PDA and/or GPS trainer Classro om Stepby step, Handson Users Truck Driver TechnicContinuousLed by Instruc Trainer of Auto Lift- Open Discussi Administr ator Truck
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16 CHANGE MANAGEMENT Reference List Baines,T.andShi,V.G.,(2015).ADelphistudytoexploretheadoptionof servitization in UK companies. Production Planning & Control, 26(14-15), pp.1171- 1187. fasttrackcargo.com,(2018).AbouttheCompany.Availableat: https://www.fasttracklogistics.net/ [Accessed: 08 June 2018] Gruber, J., Kihm, A. and Lenz, B., (2014). A new vehicle for urban freight? An ex- anteevaluationofelectriccargobikesincourierservices.Researchin Transportation Business & Management, 11, pp.53-62.