Change Management: Theory, Cost-benefit Analysis, Risk Analysis

This document provides a comprehensive guide to change management, covering topics such as change management theory, cost-benefit analysis, and risk analysis. It also discusses the importance of stakeholder management and communication planning. The document includes education and training plans for knowledge and ability development, as well as effective reporting strategies for measuring success. This guide is recommended for students studying change management.

Change management

TABLE OF CONTENTS
Part A...............................................................................................................................................3
Cost-benefit analysis....................................................................................................................3
Risk analysis................................................................................................................................4
Part B...............................................................................................................................................6
Stakeholder management.............................................................................................................6
Communication plan....................................................................................................................9
Education/training plan (knowledge and ability)......................................................................10
Reporting plan...........................................................................................................................12
References......................................................................................................................................14

PART A
Change Management Theory
Change management is referred as the procedure of evolving the extent of the project in manner
by which it can satisfy the change in goals and requirements. It is engaged with the
implementation of the structured methods and a structure that is pre-planned to keep up with the
changes (Burke, 2017). One of the most significant theories of change management that is
majorly used in the modern era is Lewin’s three phase model it engages a movement from one
fixed state by a stage of activity and again to other fixed state. The three phases are namely;
unfreeze, change and refreeze.
Cost-benefit analysis
Option Cost Risk Benefit F/ MF
/ NF
Employee
motivation
$10000 Disruption in operating
activities Well motivated personnel
can come up with various
benefits inclusive of better
productivity, low
absenteeism, low staff
turnover, improvised
relations in industry,
improving business
reputation in delivering in
F

quality of products(Carnall,
2018).
Resistance to
change
$15000 Delay in attaining
schedules targets, overrun
in budgets, higher costs
due to insufficient
communication, human
resource and technology.
Unavailability of resources,
impact on customer as well
as suppliers and stress.
There are multiple benefits
of better change
management; it helps in
responding quickly to
employee issues and
customer demand (Hayes,
2018). In addition, it aids
business by
organizationaleffectiveness,
less possibility of
unexpected and
unsuccessful change and
risks. This change
management facilitates
communication, smooth
operation of HR, better
management of
stakeholders and optimal
training and development.
F

Risk analysis
Risk/Barriers Impact Likelihood Strategies to mitigate risk
The risks and barriers
associated with the
disruption is increasing
dissatisfaction among
employees and workplace
issues.
There will be adverse
impact of these risks
if not mitigated such
as improper execution
of daily activities,
employee
resistance(Kerznerand
Kerzner, 2017).
Moderate
To mitigate the risk of
disruption while enhancing
motivation, the firm must
implement the strategy of
managing the demand,
powering the supply chain,
appreciating employees,
maintenance of personnel
satisfaction and providing
optimum training
(Bromiley and et.al, 2015).
It is crucial that initially
business shapes the view of
strategy, then shape
platform and lastly shapes
acts and assets. In addition,
that the Fast Track seek
continuous feedback and
cheer up communication
within workplace.

The risks and barrier
in the pathway of
resistance to change
are several, and can
result in poor
communication and
coordination as with
the implementation
of new technology
significant amount of
change is
requirement and to
coordinate existing
aspects require
efforts and a lot of
strategies(Turner,
2014).
Negative impacts can be
created, which are
inclusive of resistance to
change, failure of project.
The major risks can be
states as; people, benefits,
processes and
management. There can
de drastic consequences to
mismanaged change these
can come in form of
project level impact and
organization level impact.
High
For overcoming the risk of
resistance to change, the
Fast Track will be required
to consider team
structuring to increase its
potential, and then it must
consider SMART goals and
targets, and set plants to
resolve the conflicts rapidly
and being
persuasive(Hopkin, 2018).
It is also that business
engages strategic
innovation and creativity,
and always stays
supportive and affirmative
to all involved individuals.
PART B
Stakeholder management
Stakeholders Commitment Concerns Addressed by Consultation

methods
Employees The commitment of
firm towards
employees will be
offering of best
workplace
environment and
culture, making sure
that they are
satisfied with the
job, with
communicating
often. The firm
must also speed up
the execution
process and
measures attitudes,
opportunities and
costs
timely(Hornstein,
2015).
Job insecurity and
higher competence
required to meet up
the technological
changes.
These issues can be
addressed by
discussing
performance,
respecting them,
scheduling
meetings and
agreeing to mutual
solutions.
Focus group and
meetings, this will
help in ensuring to
retain a good
snapshot of
performance and
operations.
Customers The firm must
ensure that the
customer demand is
managed and they
are providing with
best quality. It is
The concern of
customers is to get
reasonable quality
at viable prices as
compared to others.
These issues can be
solved by customer
involvement,
getting feedbacks,
providing
affordable prices
Social media
channels, customer
surveys,
investigation of
complaints and user

also that firm
consider customer
participation and
involvement and
must make sure that
customer is satisfied
with rendered
services with
seeking constant
feedback.
and best
quality(Bradley,
2016).
testing.
Investors The commitment
toward investor is
that firm delivers
best returns by using
better operational
approaches.
To get good returns
on the amount
invested by them.
These issues can be
solved by meeting
the expectation of
investors.
Board meetings
Communication plan
Audience Message When Communication
method
Person
Responsible
Employees To create a win-win
situation in order
make them more
competent, to
improvise their
professional growth
and career along
In regular time
intervals i.e. weekly
and monthly
meetings
Open meetings, E-
mails, training, use of
presentations and
visuals while ensuring
a positive
environment(Matos
Marques Simoesand
Upper management

with the
organizational
growth.
Esposito, 2014).
Investors Highlighting more
on sustainability,
corporate image
and quality, and
making mutual
agreements for
retaining them on
long-term basis.
In annual meetings Monthly reports,
providing P&L
information and
monthly conference
call updates with
investors.
Board of Directors
Education/training plan (knowledge and ability)
Who Skills and
knowledge
When/where How Person
Responsible
Management Technological
skills, management
skills, knowledge of
using new
technologies with
productivity and
competence.
In-house and prior
to the
implementation of
new technology
These will be done
through providing
presentations and
handling them tasks
and delegating
responsibilities to
them.
Presentation will be
provided by the
technology provider
Employees Communication
skills, technical
skills, decision
making and
problem solving
In-house and before
and after the
implementation of
new technology
These training and
education will be
provided by
integrating technical
training and personal
Expert will be
recruited for
providing
development,
opportunities better

skills. development
alongside(Goetsch
and Davis, 2014). On
the job-training and
constant education
will be given by suing
formal or traditional
approaches.
training and
guidance
Reporting plan
Measurement of success
Strategy element Measures
Change goals Tracking the activities of change management, while
testing training and effectiveness of organization.
Along with this, communication will be often measure
while considering the performance improvements.
Change impacts Likelihood of impacts will be reduced as more as
possible by adapting successive measures such as
planning, resourcing, communicating and
executing(Abele and et.al, 2015).
Project management Measures are inclusive of costs, variables, scope,
scheduling and security.
Stakeholder management A consultative and co-operative approach will be
integrated to connect with stakeholder and arrive at
mutual decisions
Communication Strong collaborations, engaging employees, setting

benchmarks and considering the employee
performance and profile (Bromiley and et.al, 2015).
Education Stimulating learning, efficiency, knowledge and
information
Cost benefits Setting decisions, forming goals and implementing the
type of analysis.
Risk management Diversification, forecasting, transferring, reducing and
controlling the risks and costs.
r

REFERENCES
Abele, E., Metternich, J., Tisch, M., Chryssolouris, G., Sihn, W., ElMaraghy, H., Hummel, V.
and Ranz, F., 2015. Learning factories for research, education, and training. ProcediaCiRp, 32,
pp.1-6.
Bradley, G., 2016. Benefit Realisation Management: A practical guide to achieving benefits
through change. Routledge.
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management:
Review, critique, and research directions. Long range planning, 48(4), pp.265-276.
Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.
Carnall, C., 2018. Managing change. Routledge.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hayes, J., 2018. The theory and practice of change management. Sage.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2), pp.291-
298.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Matos Marques Simoes, P. and Esposito, M., 2014. Improving change management: How
communication nature influences resistance to change. Journal of Management
Development, 33(4), pp.324-341.

Turner, J.R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.