University Change Management Strategy for Fast Track Couriers
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The following are the specifications of the change goals: Who / What is Impacted – With the implementation of the change goals, mainly the internal workers and the business of the company will be impacted. The following are the specifications of the change goals: Who / What is Impacted – With the implementation of the change goals, mainly the internal workers and the business of the company will be impacted. Cost Benefit Analysis for Fast Track Couriers New Warehouses $2,00,000.00 Additional Trucks $45,000.00 Development Costs
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Running Head: LEAD AND MANAGE ORGANIZATIONAL CHANGE
Lead and Manage Organizational Change
Name of the Student
Name of the University
Lead and Manage Organizational Change
Name of the Student
Name of the University
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1LEAD AND MANAGE ORGANIZATIONAL CHANGE
Table of Contents
Change Management Strategy for Fast Track Couriers..................................................................2
1. Change Goals and Specifications............................................................................................2
2. Change Goals and Organization’s Strategic Goals..................................................................2
3. Cost Benefit Analysis of the Requirements.............................................................................3
3.1 Analysis.............................................................................................................................3
3.2 Risks..................................................................................................................................4
3.3 Categorized Changes.........................................................................................................5
4. Risk Analysis of the Change Requirements............................................................................5
5. Change Management Project Plan...........................................................................................6
5.1 Change Management Theory Followed.............................................................................6
5.2 Stakeholder Management Plan..........................................................................................6
5.3 Communication Plan.........................................................................................................8
5.4 Training Plan.....................................................................................................................9
5.5 Reporting Strategy.............................................................................................................9
5.6 List of Resources.............................................................................................................10
Bibliography..................................................................................................................................12
Table of Contents
Change Management Strategy for Fast Track Couriers..................................................................2
1. Change Goals and Specifications............................................................................................2
2. Change Goals and Organization’s Strategic Goals..................................................................2
3. Cost Benefit Analysis of the Requirements.............................................................................3
3.1 Analysis.............................................................................................................................3
3.2 Risks..................................................................................................................................4
3.3 Categorized Changes.........................................................................................................5
4. Risk Analysis of the Change Requirements............................................................................5
5. Change Management Project Plan...........................................................................................6
5.1 Change Management Theory Followed.............................................................................6
5.2 Stakeholder Management Plan..........................................................................................6
5.3 Communication Plan.........................................................................................................8
5.4 Training Plan.....................................................................................................................9
5.5 Reporting Strategy.............................................................................................................9
5.6 List of Resources.............................................................................................................10
Bibliography..................................................................................................................................12
2LEAD AND MANAGE ORGANIZATIONAL CHANGE
Change Management Strategy for Fast Track Couriers
1. Change Goals and Specifications
The main change goals for the organization are as follows:
Goal A: Implement PDA/GPS usage (productivity function) on truck fleet in the first
quarter of the 2016 financial year.
Goal B: Implement one person per truck policy using automatic lift gates in the first
quarter of the financial year.
The following are the specifications of the change goals:
Who / What is Impacted – With the implementation of the change goals, mainly the
internal workers and the business of the company will be impacted.
How They Are Impacted – The workers will have more flexible working hours, lesser
workload and the need for more efficiency in the work output. On the other hand, the expansion
of service will allow the business to grow and the company to have more share in the market.
When the Impacts Will Be Realized – The impacts will be realized in one year after the
implementation of change management is complete.
2. Change Goals and Organization’s Strategic Goals
As per the organization’s strategic goals, the number of trucks in the fleet will be
increased and the teams of two drivers will be broken into individual teams so that the existing
Change Management Strategy for Fast Track Couriers
1. Change Goals and Specifications
The main change goals for the organization are as follows:
Goal A: Implement PDA/GPS usage (productivity function) on truck fleet in the first
quarter of the 2016 financial year.
Goal B: Implement one person per truck policy using automatic lift gates in the first
quarter of the financial year.
The following are the specifications of the change goals:
Who / What is Impacted – With the implementation of the change goals, mainly the
internal workers and the business of the company will be impacted.
How They Are Impacted – The workers will have more flexible working hours, lesser
workload and the need for more efficiency in the work output. On the other hand, the expansion
of service will allow the business to grow and the company to have more share in the market.
When the Impacts Will Be Realized – The impacts will be realized in one year after the
implementation of change management is complete.
2. Change Goals and Organization’s Strategic Goals
As per the organization’s strategic goals, the number of trucks in the fleet will be
increased and the teams of two drivers will be broken into individual teams so that the existing
3LEAD AND MANAGE ORGANIZATIONAL CHANGE
drivers can be used to drive the additional trucks in the fleet. Thus the productivity function will
also increase with time.
With the automatic lift gates, there will not be any additional requirements for man power
as the heavy packages will be lifted automatically. Hence, one man team will be sufficient for the
new system.
3. Cost Benefit Analysis of the Requirements
3.1 Analysis
The cost benefit analysis with all the details is shown in the following tables.
Cost Benefit Analysis for Fast Track Couriers
New Warehouses $ 2,00,000.00
Additional Trucks $ 45,000.00
Development Costs for IT and Mechanics Like Lift Gate $ 85,000.00
Training and Recruitment of Workers and Employees $ 50,000.00
Total Initial Cost $ 3,80,000.00
Maintenance $ 10,000.00
Additional Operational Costs $ 35,000.00
Operational Labour $ 50.00
Total Operational Cost $ 45,050.00
Savings from Salaries and Other Costs $ 50,000.00
New Contracts from Ecommerce Companies $ 1,50,000.00
Total Benefit $ 2,00,000.00
Discount Rate Used 20.00%
Project Cost-Benefit
Analysis for Fast Track
Couriers
Analysis Variables:
Discount Rate Used
20.00
%
Annual Benefits $
2,00,0
drivers can be used to drive the additional trucks in the fleet. Thus the productivity function will
also increase with time.
With the automatic lift gates, there will not be any additional requirements for man power
as the heavy packages will be lifted automatically. Hence, one man team will be sufficient for the
new system.
3. Cost Benefit Analysis of the Requirements
3.1 Analysis
The cost benefit analysis with all the details is shown in the following tables.
Cost Benefit Analysis for Fast Track Couriers
New Warehouses $ 2,00,000.00
Additional Trucks $ 45,000.00
Development Costs for IT and Mechanics Like Lift Gate $ 85,000.00
Training and Recruitment of Workers and Employees $ 50,000.00
Total Initial Cost $ 3,80,000.00
Maintenance $ 10,000.00
Additional Operational Costs $ 35,000.00
Operational Labour $ 50.00
Total Operational Cost $ 45,050.00
Savings from Salaries and Other Costs $ 50,000.00
New Contracts from Ecommerce Companies $ 1,50,000.00
Total Benefit $ 2,00,000.00
Discount Rate Used 20.00%
Project Cost-Benefit
Analysis for Fast Track
Couriers
Analysis Variables:
Discount Rate Used
20.00
%
Annual Benefits $
2,00,0
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4LEAD AND MANAGE ORGANIZATIONAL CHANGE
00.00
Annual Operational
Costs
$
45,050
.00
One-Time Development
Cost
$
3,80,0
00.00
Year of
Project
0 1 2 3 4 5
TOTA
LS
Economic Benefit $0.00
$
2,00,000
.00
$
2,50,000
.00
$
3,12,500.
00
$
3,90,625
.00
$
4,88,28
1.25
Discount Rate 1.0000 0.8333 0.6944 0.5787 0.4823 0.4019
PV of Benefits $0.00
$1,66,66
6.67
$1,73,61
1.11
$1,80,84
4.91
$1,88,38
0.11
$1,96,2
29.28
NPV of all BENEFITS $0.00
$
1,66,666
.67
$
3,40,277
.78
$
5,21,122.
69
$
7,09,502
.80
$
9,05,73
2.08
$
9,05,73
2.08
One-Time COSTS
$(3,80,
000.00
)
Recurring Costs $0.00
$
(45,050.
00)
$
(45,050.
00)
$
(45,050.
00)
$
(45,050.
00)
$
(45,050
.00)
Discount Rate 1.0000 0.8333 0.6944 0.5787 0.4823 0.4019
PV of Recurring Costs $0.00
$
(37,541.
67)
$
(31,284.
72)
$
(26,070.
60)
$
(21,725.
50)
$
(18,104
.58)
NPV of all COSTS
$(3,80,
000.00
)
$
(4,17,54
1.67)
$
(4,48,82
6.39)
$
(4,74,89
6.99)
$
(4,96,62
2.49)
$
(5,14,7
27.08)
$
(5,14,7
27.08)
Overall NPV
$
3,91,00
5.00
Overall ROI
0.7596
3.2 Risks
The main risks identified are as follows.
00.00
Annual Operational
Costs
$
45,050
.00
One-Time Development
Cost
$
3,80,0
00.00
Year of
Project
0 1 2 3 4 5
TOTA
LS
Economic Benefit $0.00
$
2,00,000
.00
$
2,50,000
.00
$
3,12,500.
00
$
3,90,625
.00
$
4,88,28
1.25
Discount Rate 1.0000 0.8333 0.6944 0.5787 0.4823 0.4019
PV of Benefits $0.00
$1,66,66
6.67
$1,73,61
1.11
$1,80,84
4.91
$1,88,38
0.11
$1,96,2
29.28
NPV of all BENEFITS $0.00
$
1,66,666
.67
$
3,40,277
.78
$
5,21,122.
69
$
7,09,502
.80
$
9,05,73
2.08
$
9,05,73
2.08
One-Time COSTS
$(3,80,
000.00
)
Recurring Costs $0.00
$
(45,050.
00)
$
(45,050.
00)
$
(45,050.
00)
$
(45,050.
00)
$
(45,050
.00)
Discount Rate 1.0000 0.8333 0.6944 0.5787 0.4823 0.4019
PV of Recurring Costs $0.00
$
(37,541.
67)
$
(31,284.
72)
$
(26,070.
60)
$
(21,725.
50)
$
(18,104
.58)
NPV of all COSTS
$(3,80,
000.00
)
$
(4,17,54
1.67)
$
(4,48,82
6.39)
$
(4,74,89
6.99)
$
(4,96,62
2.49)
$
(5,14,7
27.08)
$
(5,14,7
27.08)
Overall NPV
$
3,91,00
5.00
Overall ROI
0.7596
3.2 Risks
The main risks identified are as follows.
5LEAD AND MANAGE ORGANIZATIONAL CHANGE
The one time development cost is too high considering the current size of the
organization. Hence, the company will need to take considerable amount of loan
in order to proceed with the implementation plan. This will significantly reduce
the actual cost benefit and the ROI until the loan is completely paid back.
Although in the analysis, the recurring costs are considered to be almost
unchanged, they will increase at various periods due to additional recruitment of
workers and changes in the market regarding various prices.
3.3 Categorized Changes
The proposed changes are categorized as follows.
Changes Status
New Warehouses NF
Additional Trucks MF
Development (IT and Mechanical) F
4. Risk Analysis of the Change Requirements
The risks and barriers of the change requirements are as follows.
Risks Chance of Occurrence Impact on
Organization
Mitigation Strategy
High costs of
implementation
Extreme Very High Consider procuring a
sponsor or take loan
from a bank at a suitable
rate of interest if the
budget is too high to
The one time development cost is too high considering the current size of the
organization. Hence, the company will need to take considerable amount of loan
in order to proceed with the implementation plan. This will significantly reduce
the actual cost benefit and the ROI until the loan is completely paid back.
Although in the analysis, the recurring costs are considered to be almost
unchanged, they will increase at various periods due to additional recruitment of
workers and changes in the market regarding various prices.
3.3 Categorized Changes
The proposed changes are categorized as follows.
Changes Status
New Warehouses NF
Additional Trucks MF
Development (IT and Mechanical) F
4. Risk Analysis of the Change Requirements
The risks and barriers of the change requirements are as follows.
Risks Chance of Occurrence Impact on
Organization
Mitigation Strategy
High costs of
implementation
Extreme Very High Consider procuring a
sponsor or take loan
from a bank at a suitable
rate of interest if the
budget is too high to
6LEAD AND MANAGE ORGANIZATIONAL CHANGE
afford
Resistance of the drivers
regarding changes
Very High High Provide additional
benefits to the drivers
including more flexible
working hours and
lesser workload
Market competition in
procuring contracts
from ecommerce giants
Very High Very High Provide services to
areas untouched by
other courier
companies, provide
efficient and timely
services to the
customers
5. Change Management Project Plan
5.1 Change Management Theory Followed
The change management theory followed for this particular case is “Maximize New Tech
Adoption”. This theory is mainly focused on the implementation of tech adoption in any
organization in order to gain suitable benefits from the market.
5.2 Stakeholder Management Plan
The key stakeholders and their roles are listed as follows.
Key Stakeholders Roles Commitmen
t Level
Concerns Consultation Methods
afford
Resistance of the drivers
regarding changes
Very High High Provide additional
benefits to the drivers
including more flexible
working hours and
lesser workload
Market competition in
procuring contracts
from ecommerce giants
Very High Very High Provide services to
areas untouched by
other courier
companies, provide
efficient and timely
services to the
customers
5. Change Management Project Plan
5.1 Change Management Theory Followed
The change management theory followed for this particular case is “Maximize New Tech
Adoption”. This theory is mainly focused on the implementation of tech adoption in any
organization in order to gain suitable benefits from the market.
5.2 Stakeholder Management Plan
The key stakeholders and their roles are listed as follows.
Key Stakeholders Roles Commitmen
t Level
Concerns Consultation Methods
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7LEAD AND MANAGE ORGANIZATIONAL CHANGE
General Manager
(GM)
Presiding
over and
controlling
the project
High It may be hard and
hectic for him to
keep track of
project. He should
be updated at the
end of each week
in form of progress
report.
Written report on the
identified changes and
opportunities for the
company
Chief Financial
Officer (CFO)
Managing
project
budget
Medium No significant
concern.
Financial statements and
budget estimations
document
Accountant Accounting
during budget
entry or
usage
Medium No significant
concern.
Money storage or dispatch
order
Office Team
Manager
Manage team
members for
participation
in project
High He may have to
face revolt from the
office team due to
unwanted changes.
He should notify
them early
regarding changes
and the possible
benefits for the
team.
Written instructions
through emails
Project Manager Manage and High The scale of the Face to face team meeting
General Manager
(GM)
Presiding
over and
controlling
the project
High It may be hard and
hectic for him to
keep track of
project. He should
be updated at the
end of each week
in form of progress
report.
Written report on the
identified changes and
opportunities for the
company
Chief Financial
Officer (CFO)
Managing
project
budget
Medium No significant
concern.
Financial statements and
budget estimations
document
Accountant Accounting
during budget
entry or
usage
Medium No significant
concern.
Money storage or dispatch
order
Office Team
Manager
Manage team
members for
participation
in project
High He may have to
face revolt from the
office team due to
unwanted changes.
He should notify
them early
regarding changes
and the possible
benefits for the
team.
Written instructions
through emails
Project Manager Manage and High The scale of the Face to face team meeting
8LEAD AND MANAGE ORGANIZATIONAL CHANGE
supervise
project
project may be an
area of concern. He
should allocate
duties to his
subordinates
accordingly.
Project Field Work
Contractor
Manage field
workers
Low The field workers
may provide poor
quality work.
Recruitment should
be based on skills
and proven
background.
Face to face meeting, field
plan map for new
warehouses, technical
implementations
IT Development
Team Leader
Manage
technical
development
works
Low No significant
concern.
Face to face meeting, IT
requirement document
5.3 Communication Plan
The communication plan is developed as follows.
Audience Message When How Person
Responsible
General Manager Progress update At the end of each
week
Written report
(Paper or online
Project Manager
supervise
project
project may be an
area of concern. He
should allocate
duties to his
subordinates
accordingly.
Project Field Work
Contractor
Manage field
workers
Low The field workers
may provide poor
quality work.
Recruitment should
be based on skills
and proven
background.
Face to face meeting, field
plan map for new
warehouses, technical
implementations
IT Development
Team Leader
Manage
technical
development
works
Low No significant
concern.
Face to face meeting, IT
requirement document
5.3 Communication Plan
The communication plan is developed as follows.
Audience Message When How Person
Responsible
General Manager Progress update At the end of each
week
Written report
(Paper or online
Project Manager
9LEAD AND MANAGE ORGANIZATIONAL CHANGE
document)
Project Manager Any requirements
during project
Anytime Face to face Any team member
Project Field Work
Contractor
Work related
issues
Anytime Face to face Any field worker
IT Development
Team Leader
Development
related issues
Anytime Email Any developer
5.4 Training Plan
The training plan is developed as follows.
Participants: The drivers and the warehouse staffs
Skills Training to be Provided: Working with automated systems, digital devices and
others
Timing of Training: 6 PM to 8 PM for 1 week
How the Training Will be Delivered: Through classroom and on field demonstration
Person Responsible: IT Manager, Warehouse Manager
5.5 Reporting Strategy
The reporting strategy of the project is explained in the following table.
Measurement of Success Agreement with Managers How to Report
i) Enhanced business including
growth
i) The relevant managers include
GM, CFO, Warehouse Manager,
i) Format of report: Paper or
online document
document)
Project Manager Any requirements
during project
Anytime Face to face Any team member
Project Field Work
Contractor
Work related
issues
Anytime Face to face Any field worker
IT Development
Team Leader
Development
related issues
Anytime Email Any developer
5.4 Training Plan
The training plan is developed as follows.
Participants: The drivers and the warehouse staffs
Skills Training to be Provided: Working with automated systems, digital devices and
others
Timing of Training: 6 PM to 8 PM for 1 week
How the Training Will be Delivered: Through classroom and on field demonstration
Person Responsible: IT Manager, Warehouse Manager
5.5 Reporting Strategy
The reporting strategy of the project is explained in the following table.
Measurement of Success Agreement with Managers How to Report
i) Enhanced business including
growth
i) The relevant managers include
GM, CFO, Warehouse Manager,
i) Format of report: Paper or
online document
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10LEAD AND MANAGE ORGANIZATIONAL CHANGE
ii) More efficient output
iii) Increased share in market
Team Manager and Others
ii) The members from different
teams will provide the reports
and present them to respective
authorities
ii) When: Weekly
iii) Who: Respective Authority
Directly above the Team
Member
5.6 List of Resources
The resources are listed as follows.
Resource Cost Availability
Project Manager $100/hour Length of project, as needed
Trucking manager (Bob Rogers) Length of project, as needed
Sales team member with high-
level oral and written
communication skills to assist
new Human Resources manager
(Jessica Smith)
Length of project, as needed
New Human Resources manager
(Peggy Anderson)
PDA/GPS trainer (Jack
MacDonald)
$150/hour Length of project, as needed
Lift gates trainer (Erin Mitchell) $150/hour Length of project, as needed
Head office training rooms
equipped with training supplies
for five participants
2nd week of July 2016 only
ii) More efficient output
iii) Increased share in market
Team Manager and Others
ii) The members from different
teams will provide the reports
and present them to respective
authorities
ii) When: Weekly
iii) Who: Respective Authority
Directly above the Team
Member
5.6 List of Resources
The resources are listed as follows.
Resource Cost Availability
Project Manager $100/hour Length of project, as needed
Trucking manager (Bob Rogers) Length of project, as needed
Sales team member with high-
level oral and written
communication skills to assist
new Human Resources manager
(Jessica Smith)
Length of project, as needed
New Human Resources manager
(Peggy Anderson)
PDA/GPS trainer (Jack
MacDonald)
$150/hour Length of project, as needed
Lift gates trainer (Erin Mitchell) $150/hour Length of project, as needed
Head office training rooms
equipped with training supplies
for five participants
2nd week of July 2016 only
1 out of 11
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