Crisis Risk and Strategic Change Management in KPMG Cyprus

Running head: CHANGE MANAGEMENT
CRISIS RISK AND STRATEGIC CHANGE MANAGEMENT
Name of the Student
Name of the University
Author note

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Introduction
Change management is an important aspect for sustainable development in organizations.
When an organization undertakes different projects or initiates campaigns to improve its
performance, utilizes different opportunities to address key issues then the organization requires
a complete change (Hayes 2014). This change can be in the process its job rules, the structure of
the organization and the variety of the technology used. Besides these, human resource is also a
crucial factor in Change management because they are the one who drives the change and
implements them in their jobs (Doppelt 2017). Therefore, resistance or the satisfaction of
employees can lead to a big hurdle in Change management process. However, if the employees
embrace the change and adopt them in there working culture, unexpected results can be seen in
Change management process (Cameron and Green 2015). Crisis and risk management are also
an important factor while going through change management. The crisis management is a
response of economic or human resource related crisis and depending on the nature and extent of
it, considerable resources are used to fix the problem (Goetsch and Davis 2014). On the other
hand, risk management is a strategic process that is implemented on the system for effective
control and management of the upcoming risks. Therefore it helps to identify the potential
threat, assesses there possible effects on impacts and then take necessary steps to minimize the
risk (Nordin et al. 2012). In this assignment, Change management, crisis and risk management
will be discussed in the context of a company KPMG Cyprus. Further, a professional report
having comprehensive critical analysis of the Change management process in KPMG Cyprus
will be presented. Burne’s Framework for Change management will also be implemented in the
process and the type of change, which is most applicable in the organization, will be discussed.

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Furthermore, a comprehensive explanation will be demonstrated with examples so that the style
of management and organization of the change can be explained.
Company background
KPMG is an organization having global networks of member firms that are independent.
These firms offer audit, tax and advisory services throughout the world. The primary function of
this organization is to work closely with their clients and to help them mitigate risk and crisis and
utilize opportunities for tremendous growth (Benn, Edwards and Williams 2014). The
Organization was formed in 1987 with the amalgamation of Peat Marwick International (PMI)
and Klynveld Main Goerdeler (KMG). These two companies involved there member firms in
KPMG. In the name KPMG, K stands for Klynveld, because Piet Klynveld founded this
accounting firm in Amsterdam in the 1917. Whereas, P is Peat William, who founded the
accounting firm in London in 1870 (KPMG 2018). M stands for Marwick, who founded this
accounting firm in New York 1897 and finally G is for Goerdeler, who became the first
Chairman of KPMG. Currently Lynne Doughtie is the CEO of KPMG Having headquarters in
Netherlands there are more than 189000 people work as employees of KPMG that provides
financial Audit and tax advisory to leading businesses throughout the world (Giniat et al. 2012).
However, like every organization KPMG also gone through several risk management Change
and crisis management processes that has let the company with the opportunity to reach ultimate
success (KPMG 2018). Starting from individual Change management to organizational and
initiative based Change management KPMG has implemented each step to introduce new
process in the system. In this assignment those changes and crisis management processes will be
discussed.

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Burnes theory of change management
Change management is process that has found its presence in literature reviews and
critical discussions rarely. The primary reason behind this is the superficial nature of the change
management theories. However, in the real situation, change management is the process that
completely depends on the market trends, market solutions to the upcoming problems (Burnes
and By 2012). Not just the private sector but the public sector organizations as well require
proper change management to develop their standards and achieve sustained success. There are
several traditional models such as Lewin’s change management, Kotter’s change management
that are extremely simple and do not match the requirement depending on social, cultural and
economical context (Burnes and Cooke 2013). To overcome these issues of pre-existing models,
Burnes developed the theory, frame work of change, and named it as the Theory of
Postmodernism. This theory relates to the evolution of knowledge, laws, regulations and the
study of human progresses (Contrafatto and Burns 2013). This model was created to replace the
theory of modernism. Hence, this model includes the social change theory, critical change
theory, experience based design and large-scale change theory to define and cover the every
aspect of change management (Burnes and By 2012).
In this theory of Burnes, a new paradigm of organizational change was witnessed. This
newer paradigm was invented so that the scientific change related to newer ideas and
frameworks can be carried out (Burnes and Cooke 2013). This paradigm was mainly focused on
postmodernist thinking’s and for that purpose, approaches such as cultural excellence approach,
the Japanese approach for management and organizational learning was included in the newer
paradigm. However, the three important approaches of the Burnes change management
framework was the postmodernism, realism and complexity approaches (Hornstein 2015). The