Leadership and Change Management: A Case Study of Aesch AG

This report discusses the need for organisational change at Aesch AG, a German healthcare organisation, and focuses on key issues when attempting to execute change in the organisation. It covers causes and triggers of change, organisational, social & cultural dimensions of change, power, politics & conflict on change, and recommendations to lead & manage change.

Leadership and change
management

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Causes and triggers......................................................................................................................3
Organisational, Social & Cultural Dimensions of Change..........................................................6
Power, Politics & Conflict on Change.........................................................................................7
Recommendations to Lead & Manage Change...........................................................................8
Employee Engagement..............................................................................................................10
Incentives...................................................................................................................................10
Organisational Development.....................................................................................................11
CONCLUSION..............................................................................................................................11

INTRODUCTION
Leadership is defined as the art that is related to motivating a group of people so perform defined
operations to achieve determined goals and objectives in efficient manner. It is the ability of an
individual as well as group of individuals to guide organisational members in right direction.
Change management is considered as a systematic approach that helps organisation to deal with
transition or transformation of organisational process, goals and technologies (Bourke, and et.
al., 2020). Change in business process and strategies help business to attain objective in
competitive business environment and lead its operations towards success. Aesch AG is German
healthcare organisation headquarter situated in Aesch outside of Zurich, Switzerland. It is the
world’s largest supplier’s healthcare industry. Organisation is global leader of advanced
diagnostic imaging system, healthcare IT system and other services. Anna Frisch was appointed
in Aesch organisation as a marketing director as well as noticed a shift in the department of
consumer decision making after her promotion. This report covers need for organisational
change at Aesch AG and focused on key issues when attempting to execute change in
organisation. Along with that recommendations regarding how Aesch AG lead as well as manage
organisational change.
Organisation’s primary target consumer consists individual healthcare clinicians as well as
external business environment changes that states that organisational decision-making process
was taken by the administrators or ‘C-level’ positions (Bratton, 2020). Frisch tries to execute
change in organisational approach in which organisation market their products that meet all
eventual resistance across various departments of the organisation and analyse and
acknowledging the importance of changing or altering current organisational strategies.
TASK
Causes and triggers
There are various causes or triggers that are faced Aesch AG organisation that impacts its
functionality and performance level. Organisations consultant department considered the external
environment with the objective of modifying organisational current strategies that enable
business to implement change in the environment in which it operates its operations (Cameron
and Green, 2019). If an organisation develops business strategies and policies without paying
attention external business environment that it ignores various opportunities and threats that can

impacts organisational positioning in current market place as well as enhance competition level
for business. Aesch AG need to analyse various factors of Pestle analyse that consists political,
social, economic, environmental, technological and legal factors that enable business to assess
market opportunities and risks that helps organisation to develop effective plan as well as adjust
organisational strategies accordingly. All these factors in the context of Aesch AG are explained
below:
Political factors: Political factors such as limited funding for hospital from government to
invest in new devices and technologies that lead business towards growth and development.
Economic factors: There are various economic factors such as low market growth rate, hospitals
declaring bankruptcy, economization leading healthcare industry towards financial deficit and
increasing cost and reducing the level of revenue impacts Aesch AG performance and
functioning (Campbell, 2017).
Social factors: Aesch AG has global presence and it is the world largest supplier of
healthcare industry that enable business to attain higher market share.
Technological factors: Aesch AG uses latest technologies to perform its operations and it
is global leader in diagnostic imaging system and have in-vitro immunodiagnostics & healthcare
IT systems.
As there are key factors that must be taken into consideration by the Aesch AG such as economic
influences that impacts organisational overall performance and functionality. German healthcare
climate has been undergoing strenuous difficulties, as well as two-thirds of hospitals of that
country faces financial deficits, and15% bankruptcy. Along with that costs and expenses were
increased across the German healthcare industry and decreased revenue that clears that it is
important for the medical organisation to evaluate and adjust their budgets as well as suppliers
accordingly (Cavaness, Picchioni and Fleshman, 2020). German market has low growth rates
because of high expenditure or spending on medical devices. It is suggested to the Aesch AG to
stand in competition and put higher efforts to remain leader in healthcare sector to ensure that
organisation doesn’t experience any kind of financial deficits as per the implement changes in
German healthcare climate. It becomes important for the organisation to re-evaluate their current
marketing strategies that suits need and requirements of targets across medical sector.
Along with that, several governmental bodies start charge of financing in healthcare sector in
various countries. It clears that all funding as well as budget allocation for health care industry

come after political decisions that are based on economic conditions of specific country. In the
Germany, the funding procedure of government has significantly decreased that impact on the
capacity of hospitals and medical institutions to purchase new medical devices instead of that in
the lack of finance current equipment’s are used that decreases organisational overall
performance and efficiency level. It is suggested to the Aesch AG to rethink about organisational
strategies related to marketing with the objective of standing out in competition as well as
convince different medical bodies to enhance the amount of investment in organisational
products and services (Doppelt and McDonough, 2017). The combination of all these factors
leads organisation towards major transformation in the decision-making process. It is essential of
healthcare organisation to understand purchasing habits, higher management than develop
organisational planning and decision that lead business towards growth and development.
Types of Change
There are various types of changes that are implemented by the organisation to gain competitive
advantages in current business environment. First one is known as ‘smooth incremental’ change,
that is related to implement change that are expected, slow and predictable. The other one is
‘bumpy incremental’ change that states the rates of change fluctuation that is slow and steady
than suddenly accelerates and after that reverts back to slow and creates ‘bumpy’ notion on
organisation which can be raised through both internal and external (Dotlich, 2017). The third
change is ‘discontinuous’ change, that is sudden and rapid changes that occur through reforming
organisational strategy, structure and culture due to both internal and external factors.
Discontinuous change is considered as the cost-effective and efficient method of change as it is
sudden and not require extended periods to adjust initiatives as well as develop effective
strategies to implement change in organisation properly.
In the context of Aesch AG’s case, it is suggested to the organisation to adopt that
discontinuous change that helps organisation to implement changes in effective manner. There
are various factors such as economic climate in Germany as well as limited funding from the
government that creates threat for Aesch AG. Frisch analysed big shift in decision-making
process of Aesch AG’s target audience than she analyses that ‘C-level’ influence is greater than
purchasing behaviour. It is important for the organisation to re-evaluate all business marketing
strategy to implement changes in appropriate manner as well as appeal to the C-level, in case

organisation failed to implement all these changes than it create higher risk for the organisation
to step down and allow competitors take over through using effective marketing strategies.
Organisational, Social & Cultural Dimensions of Change
Organisational culture: Organisational culture is defined as the core philosophy of organisation
that includes various aspects such as values, expectations and experiences that leads or direct
employee and business habits, norms and beliefs as well. Every organisation has their unique
culture that creates boundaries for its employees to behave and act accordingly. In the process of
implementing change in business, it is important to for every members of organisation to be
ready for adopting new adjustments or changes that are related to organisational changes
(Eckhaus, 2017). All these changes lead business towards growth and development and provides
competitive advantages over other competitors. To implement cultural changes in effective
manner, all department of organisation need to become supportive and open regarding new idea
and suggestions that come from employee side that motivates employees as well to open with
management and adopt changes properly.
In the context of Aesch AG, Frisch trying to modify the method of marketing trough which
they promote organisational products and services to target consumers. To implement that
changes, she requires approval as well joint efforts from the different department of organisation.
in such a way that would require the approval and joint effort of various departments. There are
various departments are involved in the process of developing, marketing and selling products
and services of Aesch AG. So, in the process of implementing change, it becomes important to
consult with all these seven departments to take effective decisions. All these departments need
to become open for modify their strategies and allow all unites to work together as in
organisation these departments are not working together as a team.
Along with that, Frisch also implemented the changes related to culture that helps business to run
its operations in efficient manner. From this case study, it is clear that Anna Frisch felt ‘alone
and rejected’ in the meeting in which discussion regarding her proposal is carried that how
Aesch AG move forward to gain competitive advantages in competitive business environment
(Franken, Branson and Penney, 2018). Frisch has high hopes for her first meeting that is related
to implementing change in organisation strategies because of shift in decision-making bodies and
target consumers are assumed that they are supported by the different department VP’s. Frisch
felt highly demotivated in the situation when her proposal met and opposed because VP’s were

declined to assign specific budget with the objective to implement new strategy by passing a
statement that there are other things that are more important than it. Lack of motivation among
employees of organisation or especially in the case of Frisch who is on the higher position of
Aesch AG that impacts organisational positioning in negative manner (Gopee and Galloway,
2017). It impacts organisation in various manner such as lead towards higher turnover that
enhances overall organisational cost in recruiting new employees. Along with that it is time-
consuming process that impact organisational ability to overcome challenges and reduce
productivity as well as customer engagement and satisfaction from organisation.
If VP’s of organisation agreed to execute proposed change in organisation that maintains
higher level of communication in across all department of business. It includes improving
organisational marketing strategies that enable Frisch to enhance her skills as a marketing
director and motivate to perform defined operations in best possible manner as well as lead
business towards gaining long-term success. Maintaining organisational culture is very important
for the organisation to developing discipline in organisation as well as enhancing the sense of
moral values, knowledge and responsibility. Supportive business culture enhances employee’s
engagement and satisfaction level with organisation that retain them for longer period of time.
Culture is considered as the shared meaning and practices that provide direction to organisation
and lead business towards growth and development.
Power, Politics & Conflict on Change
Power is one's ability to overcome problems and resistance when new suggestions are being
made. Power can also be defined as the ability to influence other people in a particular or desired
way. Even if there is no presence of set or rules or a particular defined hierarchical structure or
anything, then also there is power because of the employees presenting different skills and their
expertise.
Politics can be described as the governing bodies fighting for power over a particular area or
country. In all organisations there is presence of top to down authority distribution, regulating the
exercise of power (Holt and Wood, 2017). Different individuals use organisation as a basic
political structure for their development and building career. As these organisations are
considered as basic platform for developing various skills, interests and different motives that
can be helpful for building career. These organisations with hierarchical systems lead to power in
individuals a will to influence their colleagues with their own personal ideas and business related

interests. The marketing director of Aesch AG, Frisch was appointed after her high up in so
called 'political structure' and she was in charge of letting her ideas and thoughts about marketing
operations. She failed as other powerful figures and others didn't understand and agree with her
ideas and suggestions . They even asked for the reasons for all those. This was because of the
following as gender plays a role in Frisch's suggestions for many implementations that were
being rejected. Women as always have been undervalued and always presented in a weaker role
at every level especially in workplaces and are not always chosen for promotions as compared to
the other male employees or their male colleagues (Kerber and Buono, 2018). They are not even
listened to have authorities in managing or for reaching some designated posts in organisations.
After the appointment of a male at marketing director position, if suggestions given by Frisch
were taken into account by various departments, they potentially agreed for budgets assignments
for all the new strategies adopted for marketing as they saw it as necessary issue that concerned
about targeting customers.
Along with that Frisch is not the part of Aesch AG from longer period of time that make it
difficult for the employees throughout the organisation to relate with her ideas and take them into
consideration. To apply changes in organisation power and influence help to implement personal
thoughts and ideas in efficient manner. It is important for the organisation to develop a solid and
effective foundation that maintains trust and relationship among various department or teams.
Maintaining the relationship before implementing personal suggestions facilitates organisation to
develop credibility that allow organisational employees to become more innovative and creative
in ideas and concepts (Kreutzer, Neugebauer and Pattloch, 2017). Frisch is the marketing
director of organisation not for extensive period g time so, she does not maintain relationship as
well as develop credibility within the organisation. It is the aspect enhances the possibility that
her ideas are considered worthy in organisational meeting and implemented to attain
organisational determined goals and objectives with efficiency.
Recommendations to Lead & Manage Change
There are various factors that are need to be considered as the organisation in the process of
implementing changes in systematic manner. Eight steps are included in change model. All these
stages are explained below:
First step is related to creating the sense of urgency, it is very important for the
organisation to ensure that whole organisational is ready to implement changes, manager of

organisation motivates employees to adopt changes and perform operations accordingly. Frisch
analyse the current threats and opportunities that are related to the external business environment
than presents the issues in VP’s meeting and allow people to communicate on the requirement of
implementing changes in organisation.
Secondly step is related to form a powerful coalition that ensure that everybody is
attended on the board meeting. Organisation need to create powerful team of influential bodies
that incorporates people who possess power from their job title, status, expertise and perform
their operations in different department of organisation.
The next step Kotter determines the vision behind the change, so it is important for the
Aesch AG to develop effective strategy and clear direction as well as everybody have clear
understanding of their roles and responsibility that enable them to perform operations with
efficiency and effectiveness.
In the next stage, Aesch AG need to communicate the vision of change to the all department of
organisation to reduce conflict and issues in business. Frisch ensures effective and regular
communication and address concerns of employees regarding proposed change.
In this step, Aesch AG remove any obstacles to implement change in efficient manner.
As an example, through identifying individuals who opposed the changes so, it becomes
important to removing all their barriers and motivates them through elaborating the benefits of
changes for them and organisation.
Organisation creates various short term ‘wins’, that helps organisation to implement
change properly as well as it motivates employees to see that their targets are being
accomplished. Frisch enhances the effects of this step though rewarding employees that
motivates them to attain defined targets with efficiency.
After developing ‘short term win’ organisation need to build on the changes that lead
business towards right direction and attain determined goals and objectives through improving
business working process and operations.
In the final step Aesch AG anchor the changes in corporate culture as well as ensure that
various departmental managers provide support to the change and motivated employees to
implement them in appropriate manner. In this stage, organisation also make sure that change
become the permanent part and implemented in whole organisation to attain determined
operations in best possible manner.

Employee Engagement
Employee engagement is considered as the most important aspect in the process of implementing
change in business. Employees in organisation resist changes due to various reasons such as lack
of knowledge, existing habits, familiarization with current routine and others. It is important for
the Aesch AG to engage employees during the process of introducing and implementing changes
(Lee, Daugherty and Hamelin, 2019). Employee engagement is the emotional commitment of
employees towards their concerning organisation that enhances their performance and
contribution towards attaining organisational goals and objectives. If employees are emotionally
connected with the organisation than they feel motivated and conformable in organisation. It is
suggested to the organisation to provide supportive and positive organisational environment and
maintain effective business culture that motivates employees to attain determined objectives in
best possible manner.
With the objective of enhancing employee engagement with organisation, Frisch should
effective and clear strategic management that provide direction to employees to perform their
operations in effective manner and maintains effective communication at all department of
organisation that ensures that all business goals and visions are conveyed to employees so they
put their actions to attain these goals. As there are seven departments are on board of Aesch AG,
Frisch need to ensure that all VP’s have knowledge and understanding regarding how to reach
proposed targets as well as provide assistance and support to employees under their supervision
that motivates them to retain with organisation for longer period of time.
Incentives
Frisch can engage employees in organisational activities through provide different attractive,
monetary and non-monetary incentives and rewards based on the based on their performance
regarding adopting change and implementing them in organisation. Incentive is defined as the
object or item that have specific value that encourage employees to adopt proactive actions to
attain desirable outcomes (Yukl and et. al., 2019). It is suggested to the Aesch AG to adopt
effective incentive strategy and implement them throughout the business to motivate employees
and leading their efforts and actions in the direction of performing operations with efficiency and
effectiveness. It is advised to organisation to maintain culture of goals-oriented and inspiring for
employees that reduce their turnover of employees, reduce organisational cost of recruiting
employees again through retaining them with organisation. Aesch AG should enhance

employee’s satisfaction level through involving them in decision-making process and provide
value to their ideas.
Organisational Development
Organisational development is defined as the systematic process of implementing change
in business values attitudes and other aspects of employees in business by assessing
organisational current situation as well as setting necessary requirements that need to be
implemented to attain organisational goals and objectives. It is suggested to Frisch to improve
her proposed marketing strategy though involving C-level marketing and explaining it’s benefits
to employees and organisation. Frisch need to explain all long-term effects and benefits of
implementing proposed marketing strategies. The VP’s need to have more understanding
regarding the approach of proposed change so, it can be implemented in appropriate manner.
CONCLUSION
As per the above report, it can be concluded that leadership is the ability of an individual
that enable them to lead all efforts and actions of employees in right direction. Changes
management helps organisation to manage and implement changes in organisation effective
manner and help to gain competitive advantages in business environment. Frisch provides
various explanations regarding the proposed change and analysed the reasons why the VP’s of
Aesch AG rejecting her proposal in meeting. It is important for the organisation to implement
effective strategies for satisfy the evolving German healthcare market needs and requirements.
There are various external environmental factors that impact organisational performance and
functionality. As Aesch AG’s current marketing strategy targets clinicians, that states that whole
marketing efforts or organisation is to fulfil needs and demands of the new target consumers.
Apart from that there are various factors such as gender discrimination that impacts on Frisch
proposal in meeting. Organisation need to analyse organisational problem in appropriate manner
than develop effective strategy to implement change and lead business towards growth and
development.

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