Effective Leadership Skills for Organizational Change

This assignment delves into the significance of adopting effective leadership skills in successfully navigating organizational change. It highlights the need for conscious change leadership, leveraging post-conventional consciousness, and implementing best practices in clinical handover improvement. The sources include various books, journals, and online resources that provide insights into leading complex change, culture change, and performance excellence.

UNDERSTANDING AND
LEADING CHANGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Impact of changes on strategies and operations by comparison of two companies.........1
P2. Analysis on impact of internal and external drivers on behaviours of organisations......3
P3. Analysis of measures to reduce the impact of changes on company's behaviour............5
TASK 2............................................................................................................................................7
P4. Barriers for change and its influence on leadership decision-making.............................7
TASK 3............................................................................................................................................8
P5. Approaches of leadership to deal with the changes.........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
In today's fast paced world, changes are unavoidable in every field. Talking about
business world, which has become much competitive and volatile, it is very much necessary for
sustainability and growth of organisations. Innovative technologies, de-regulative marketplace,
competitive advancements and dynamical demographic of the workforce make it compulsory to
change leader of an organisation to move ahead (Stanleigh, 2013). This present report has
introduced the concept of changing a leader in an organisation in order to meet all challenges of
market. It has also been highlighted in this report that how leadership skills and styles of a leader
help an organisation to initiate and implement these changes successfully. This argument would
be supported by taking two companies i.e. Starbucks and Costa Coffee in consideration and
explaining about the way they respond to change and what strategies help them to deal with the
same as well as their contribution in change management.
TASK 1
P1. Impact of changes on strategies and operations by comparison of two companies
Changes are necessary in every part of a life or businesses of the organisations in order to
achieve their goals and objectives. It affects customs, capabilities, cultures and routine work of
all employees and employers who are working over there (Impact of changes on strategies and
operations, 2018). Thus, change management is used as a structured and systematic method for
transforming an organisation from its current state to desired ones. For an organisation, the fields
where changes are necessary are:
1. Mission or statement
2. Existing technologies and techniques
3. Strategies
4. Leadership and management skills
5. Operations, etc.
Starbucks and Costa Coffee belong to same industry; both are dealing in coffee products.
Starbucks Coffee is one of the world's best retailer company of UK. It offers fresh-roasted coffee
beans to customers. Similarly, Costa Coffee is also a famous company of the UK with a wide
range of products in retail outlets (Brown, 2012). It offers hot chocolate, iced coffees, teas and
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infusions, etc. to gain competitive advantages over Starbucks. These companies are also required
to change in their businesses due to:
 Response according to changes
 Response on the demand of consumers
 Performance of workforce should be improved as well as change skills and knowledge of
managers or leaders required for that
 Build an effective organisational culture
 Development of workforce
 To gain revenue and market share
Thus, it is necessary to avail changes in all organisations. Further, it is describing below
how above companies can initiate these changes in workforce, operations and strategies of them:
Strategy: Both companies are required to develop strategies for implementing the
changes successfully in their businesses. They have to form some developing programs for
improving the knowledge of employees in order to make them able to initiate the changes
(Clarke and Persaud, 2011).
Impact of change on its operation and strategies: Whenever organisations are going to
modify their strategies then it affects mostly the working condition of employees, operations and
production of a company. To initiate and implement the changes successfully over there, a firm
needs to change leadership and management skills (Nkomo and Kriek, 2011). For discussing on
further impact of changes in a company like Starbucks, let it be compared with Costa Coffee as
described in the table given below:
Comparison of Starbucks and Costa coffee in response to changes
Basis Starbucks Costa Coffee
Objectives Its main objective is to inspire
and raise spirit of customers
through “one person having a
sip of the best coffee”.
It main objective is to
customize products according
to preferences or requirement
of customers.
Pricing It has offered higher price of
products at marketplace.
Its price level is not so high
than Starbucks.
Place Starbucks mostly target market Its location is based on
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areas that are located near the
main markets, malls and
entertainment centres.
crowded area which covers
youth population the most and
generally, they are seen near
colleges, shopping malls or
areas where youth is easily
approachable.
Porter's Competitive
Strategies
Corporative type of strategies
are being used in this
company.
It uses business strategies.
Change drivers Being innovative Being competitive
Operations Its operations are mainly based
on self-service where a
customer goes up to place an
order as well as can pick his
coffee from the counter.
Its process is not self-service
based like Starbucks. Its
employees fetch order to the
table of customers.
P2. Analysis on impact of internal and external drivers on behaviours of organisations
Behaviours of organisation are very much affected by implementation of changes in their
workplace. Managers or leaders should recognise as well as respond to the factors that affect
their organisation and its behaviours. There are many forces that drive these changes at work or
in business for which employees or employers need to respond (Impact of internal and external
drivers on behaviours of organisations, 2017). These factors are described as internal and
external environments.
Internal environment: It refers to events, people, organisational system and structure.
These factors are normally associated with mission statement, organisational culture, style of
leadership of an organisation and under controllable also.
External environment: As it occurs outside from an organisation so, it is generally not
controllable. These factors include customers, competitors, economy, technologies, etc. which
influence the work of organisation.
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Today, coffee industry is growing at a high rate in every country that basically includes
cafes, restaurants and retail chains (Denison and et. al., 2012). Companies like Starbucks and
Costa Coffee have expanded businesses in almost all parts of the world. The changes and factors
of organisation that are discussed above also affect businesses of these companies in various
manner. Changes in internal drivers that influence the behaviour of leadership, team or
individuals are:
Change in mission statements: Both companies have interchangeable brands over
customer's point of view. Due to some similar products and strategies, according to the market
demand, they should create or modify mission statement which is specified in some more
attractive or delicious coffee products with unique services in their stores that help Starbucks to
move ahead.
Change in organisational structure: They also need to restructure their stores and
working condition for developing growth as well as to retain customers.
Change in style of leadership: Leaders or managers need to adopt an effective style in
order to develop their skills and abilities required to implement changes in the workforce
(Latham, 2013).
To analyse these internal factors, it is necessary to conduct SWOT analysis which is
given as below:
Strengths: Brand image of Starbucks is extremely strong as compared to Costa Coffee,
but its taste is not so good comparatively. So, it needs to work on its quality of products as
customers prefer the taste more.
Weaknesses: For Starbucks, its main weakness is price products strategy which is much
high as compare to Costa Coffee and other competitors. As Costa Coffee is much aware for
healthy products where Starbucks is seeming failed. So, it needs to improve the pricing strategy
as well as quality of products.
Opportunities: Launching new products like tea, healthy coffee drinks, etc. are some
opportunities for Starbucks to expand the business more widely.
Threats: Many companies like Costa Coffee, Cafe Coffee Day, etc. have been given with
a tough competition to Starbucks which causes as main threat for its business growth. Also,
global crisis becomes a threat for its business (Booth, Wade and Walker, 2014).
Some changes in external drivers are:
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Consumer-led drivers: Customer's preferences, tastes and financial conditions affect
businesses of such companies.
Technology-led drivers: Starbucks need to improve its technologies for producing
healthy coffee products.
Capital-led drivers: Changes in interest of investors or company's relation with
stakeholders who invest in a company result in alternating the performance standards.
Competitors-led driver: It directly put impact on the price, process or other strategies as
well as operations of organisations.
Government-led drive: Changes in Governmental rules and regulations also put impact
on company's operations and strategies.
Some more external factors that influence Starbucks and Costa Coffee could be examined
through PESTLE analysis:
Political & legal factor: Coffee beans are growing maximum in developing countries so
it affects the business of such type of companies politically in trading sector. Also, tariff and
taxes influence businesses of coffee firms (Anderson and Anderson, 2010).
Socio-Economic factor: Country's economic and social conditions affect the businesses
of many organisations. Companies mentioned need to focus on the health related issues of
customers. They need to offer a high quality of products.
Environmental factor: These factors affect the production of companies that Starbucks
and Costa Coffee need to concern as well as on wastage.
Technological factor: They should adopt the latest technologies at workplace.
P3. Analysis of measures to reduce the impact of changes on company's behaviour
Changes are very much necessary for all organisations in order to keep surviving in the
marketplace as well as to gain competitive advantages. To initiate these changes on employees
successfully is a great task for management as it directly influences their working conditions. As
a human being, all persons are generally habitual of working conditions in which they work for a
longer period. So, if suddenly they are being asked to adapt changes related to organisation needs
then their resistance will obviously occur (Fullan, 2014). Changes affect them in a negative and
positive manner both. But instead of positivity, changes affect negatively more on employees.
Thus, management of companies like Starbucks and Costa Coffee need to measure the impact of
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changes on them as well as try to reduce it as much as possible. Beside from resistance, some
more factors also affect the behaviour of employees that are given as below:
 Organisational culture and structure are influenced much by changes which would
create a huge impact on leadership, employee’s performance, business' objectives and
goals, etc.
 Morale and motivational level of employees also get affected by the changes taking
place in an organisation.
 Changes put a direct impact on decision-making of a company also.
To reduce these negative impacts on employee’s behaviours, both companies need to
provide an effective training programme for employees which would develop their skills and
knowledge in the same (NHS England, 2016). Management of these companies should arrange
conference meeting about changes, its impacts and benefits with employees before introducing
the same in organisation. Apart from these, firms can take following measures which are
evaluated as:
 Creation of pathway: Starbucks and Costa Coffee should create a right pathway for
employees by describing positive impacts of changes on their performance and career
development. Also tell them about duties and responsibilities of each employees to carry
out activities in a desired manner which proves beneficial for business.
 Explain about plans: Both the firms try to explain about what plan they are making in
initiating the changes among employees in order to attain competitive position at
marketplace. They must discussed about need of introducing these changes and how they
can achieve support of employees.
 Participation in meetings and seminars groups: Companies should arrange meetings,
conferences and seminars to explain about the plan of changes in management and
operations.
 Manage planning and its implementation: Starbucks and Costa Coffee also need
effective management in their organisation in order to manage the changes as well as
implementation of the same successfully over there. They require effective leadership
skills also for managing employees and their needs (Lawrence, 2015).
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TASK 2
P4. Barriers for change and its influence on leadership decision-making
Competitive advantages in marketplace, customer's choice, life styles etc. are some
factors that demand changes in all organisations. In order to initiate these, companies need to
identify all factors of market changes that affect their businesses and operations. Mostly, these
changes are impacted directly on company's three main parts that are Process, People and
Culture. Changes in working procedures of employees affect them a lot which would create
sometimes resistance. Also, there are many factors that could act as barriers in implementation of
changes successfully in an organisation. These barriers would impact on sales and production of
a company. It can be caused by:-
Imposed Changes: The changes which are imposed directly on employees and their work
before consulting them is concluded as imposed changes. These are just imposing or force them
to adapt changes and start working on that. It is thus created resistivity and impacted on
employees in a negative manner.
Initiated Changes: Leaders or managers need to discuss such a plan of changes by
concerning with employees first in order to initiate the same successfully in an organisation.
They should try to take opinions of employees about adapting changes and what they need to do
that etc. as feedback which would impact on employees in a positive way as well as creates
feeling like equality at workforce in them (Thomas and et. al., 2013).
Schein’s Organisational Culture Model:
This model has given three faces as mentioned below in which changes are for an
organisation: Artefacts and behaviours: Starbucks and Costa Coffee should make changes in its office
interior, furniture, structure, organisational culture and behaviour. Values: It includes workers' opinions and values about organisational changes which
affects their working conditions.
 Assumptions: Management of companies should manage the entire process of operations
and make necessary changes.
Force-field Analysis:
Phase I: Change proposal: Starbucks and Costa Coffee should make changes in
technologies and strategies of business operations in order to increase revenue and market share.
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Phase II: Change force identification: It is needed by both companies due to increased
market competition as well as development in quality of products or services.
Phase III: Force against alternation identification: Some forces like legislation of
government, structure of organisation, etc. are against to changes for identification.
Phase IV: Score assign: The scores are assigned which are evaluated below as:
Force-field Starbucks Costa Coffee
High competition 5 5
Product quality 3 4
Gain in profitability 5 4
Skill dearth 4 5
Legislation of state 5 4
Phase V: Analyse and Apply: Companies also need to carry out some appropriate steps
in keeping the staff happy as well as provide necessary directions to them towards their work
which can support enterprise in obtaining desirable outcomes.
TASK 3
P5. Approaches of leadership to deal with the changes
The leaders and managers of a company act as enquirers who can identify and create such
a possibilities which boost strength of employees. They learn from the past failures by
formulating new courses of actions rather than to solve conflicts, issues or by giving orders.
They used to encourage employees by giving incentives, bonus or extra wages to reinforce and
try to motivate them towards acceptance of changes. To acquire these, they need to develop own
motivational level also by adopting new skills and abilities in their management or leadership.
There are many leadership theories and its approaches are given through which a leader can
develop his capabilities and knowledge in order to influence workers in an effective manner. In
context of Starbucks, it uses following leadership style in management in order to implement
changes in technologies, working conditions of employees and operational process (Suchman
and et. al., 2011).
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 Situational Leadership Style: It included change in style of a leader according to
situation arise in companies. The style that he used to handle problems is not needed to
be adopted by employees who are working around him. This leadership style has proved
its importance in such a company where needs and expectations of employees are much
more concern than other fields.
 Transactional approach of Leadership: Main purpose of this approach is to manage
activities' flow of a firm due to which it is also known as Ship Float. This theory focuses
on each activity of an enterprise and its effect on business.
 Transformational Approach of Leadership: It generally concerns on motivation, team
building, coordination of workers and relationship among them in order to initiate the
changes successfully which leaders should have.
 Trait approaches: It is the oldest theory of leadership which mainly looks on physical,
mental or personality traits of a leader. According to this theory, a leader should possess
six characteristics like physical, social background, intelligence, personality, task-related
and social in him to greatly influence on members who are working under his eye.
Usage in Starbucks of these leadership approaches:
This time, Starbucks is facing difficulties in its production which requires an implementation of
change in its existing system. Modification in existing products as well as maintaining its
standard. This firm uses many approaches in leadership to handle such types of problems
(Malenfant, 2010). It has used mainly two approaches from above mentioned which are
situational and transformational leadership.
Situational leadership approach helps in bringing up flexibilities in such a company as
well as providing sustainability also. Starbucks' management has provided effective training
programs to employees for developing their skills and knowledge and making them able to adapt
changes. For improving the weaknesses of its business like low productivity or unhealthy
products, it makes necessary changes also for which management of this firm believes to initiate
changes in working conditions of employers rather to impose directly.
CONCLUSION
From the above report on understanding and leading change, it has cleared that behind
effective production of a company in marketplace in an organisation, modifications are
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necessary. It has also been concluded that these understanding and leading changes help a
company to understand where and how they will respond to modification. In this report, some
internal and external factors of environment also given in brief that affects the businesses of
organisations as well as on its operational strategies. These factors also put a direct impact on the
behaviour of organisations, team members, individuals, etc. as well as on all people who are
associated with companies. It has also been discussed here about barriers of changes and its
impact on the organisational growth. To initiate and implement changes at workforce
successfully, companies need to adopt effective leadership skills in its management.
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REFERENCES
Books and Journals
Anderson, D. and Anderson, L. A., 2010. Beyond change management: How to achieve
breakthrough results through conscious change leadership. John Wiley & Sons.
Booth, J. A., Wade, C. J. and Walker, T., 2014. Understanding Central America: Global forces,
rebellion, and change. Westview Press.
Brown, B.C., 2012. Leading complex change with post-conventional consciousness. Journal of
Organizational Change Management. 25(4). pp.560-575.
Clarke, C. M. and Persaud, D. D., 2011. Leading clinical handover improvement: a change
strategy to implement best practices in the acute care setting. Journal of patient safety.
7(1), pp.11-18.
Denison and et. al., 2012. Leading culture change in global organizations: Aligning culture and
strategy (Vol. 394). John Wiley & Sons.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Latham, J. R., 2013. A framework for leading the transformation to performance excellence part
II: CEO perspectives on leadership behaviors, individual leader characteristics, and
organizational culture. Quality Management Journal. 20(3). pp.19-40.
Lawrence, P., 2015. Leading change–Insights into how leaders actually approach the challenge
of complexity. Journal of Change Management. 15(3). pp.231-252.
Malenfant, K. J., 2010. Leading change in the system of scholarly communication: A case study
of engaging liaison librarians for outreach to faculty. College & Research Libraries.
71(1). pp.63-76.
NHS England, 2016. Leading change, adding value. British Journal of Healthcare
Assistants. 10(6). pp.302-303.
Nkomo, S. M. and Kriek, D., 2011. Leading organizational change in the ‘new’South Africa.
Journal of Occupational and Organizational Psychology. 84(3). pp.453-470.
Stanleigh, M., 2013. Leading change. The Journal for Quality and Participation. 36(2). p.39.
Suchman and et. al., 2011. Leading change in healthcare: Transforming organizations using
complexity, positive psychology and relationship-centered care. Radcliffe Publishing.
Thomas, T. and et. al., 2013. Leading change and innovation in teacher preparation: A blueprint
for developing TPACK ready teacher candidates. TechTrends. 57(5). pp.55-63.
Online
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Impact of changes on strategies and operations, 2018. [Online]. Available through:
<https://execed.economist.com/understanding-and-leading-change-2018-09-12>.
Impact of internal and external drivers on behaviours of organisations, 2017. [Online].
Available through: <http://smallbusiness.chron.com/internal-external-forces-influence-
employee-behavior-2806.html>.
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