EXECUTIVE SUMMARY The report was based on the Hong Kong Jockey club. It presented the history of the jockey club and the growth of their business. It changed to the professional club of Horse racing to the amateur one. The report describes the major changes in the strategy, government, customer, technology, people in the club and the different drivers like management, competitor, legislation who influenced the club to bring changes. It explains the various improvement and strategies taken by the Jockey club like connect programme to involve the staff in the club. It describes the various steps of implementation process of changes like identifying the places of changes, communicate with stakeholders prepare the plan, analyse and monitor the resistance etc. which help in effective implementation of the change process. It explains the Kotter model through the implementation process. It describes the various factor like technology, strategies, employee skills, resources and revised goal used by the management to cop up with the change process.
Table of Contents EXECUTIVE SUMMARY.............................................................................................................2 INTRODUCTION...........................................................................................................................4 Introduction to the organisation..............................................................................................4 1. The drivers who influence the change in the jockey club..................................................5 2. Implementation of change process.....................................................................................6 3. Application of Kotter's model of change:...........................................................................8 4. Critical evaluation of change..............................................................................................9 5. The factor cope up by the management in the process of change....................................11 Conclusion............................................................................................................................12 Recommendation..................................................................................................................13 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................13
INTRODUCTION Leading organisation can be defined as the organisation which identifies the issue that are most challenging for the leaders. The study highlights the major changes in the organisation and the drivers who are responsible for bringing the change in the organisation. It define the process of changes in the organisation and the way in which the change management has been implemented to the organisation. The study applies the Kotter model of change which helps in improving the process of change. Introduction to the organisation The Hong Kong Jockey club was established in 1884. Then the jockey club changed to the professional horse racing institution in 1971. It is a non profit business organisation which aims to provide the entertainment to the visitors and the local residents. It also provides the lottery activities, football betting with horse racing. It opens a horse training hub to expand their institution. The Hong Kong Jockey club use some part of their earning in community projects and charity. Membership club, racing and racecourse entertainment, charity and community and responsible lottery and sports wagering are the major pillars of jockey club. The club able to manage the position in the market from the last 135 years because it was the leading business in Hong Kong (Friedrich, Wüstenhagen, 2017). It contributes in the Hong Kong economy through various ways like tax, lottery fund, donation and create the opportunity of employment for the job seekers of Hong Kong. The club takes various changes to retain the leading organisation and maintain their position in Hong Kong. The club try to understand the legal framework, legislations and the strategies of the competitors to improve the racing and attract new audience. The club starts a staff programme to connect the staff and give their suggestions and valuable ideas and work as a team. They encourage their staff to connect with the customer and with each other. It brings various behavioural and mindset changes among the staff and help them to understand the customer need, problem and serve their needs in a better way. To spread the information at all the levels of the club they organise some events, seminars, workshops and training programmes. They also organise some competition like talent contest to involve their staff in the club activities. They segment the customer and try to offer the various services according to their needs. The club prepare racecourse master plan with innovative and renovated venues. The target the young
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age group and provide new offering to them. They allow their customer to use the various racing apps on their own iPads. The attract the young customer for the long term sustainability of the club. To attract the customer they create the interest among them so they can retain in the club for long term period. They enhanced the hall area of public betting by providing female friendly environment and various facilities to attract the female audience towards the club. They attract the female audience to join the themed events which offers variety of programmes to enhance the knowledge of younger member and help them to understand the horse racing. They can leverage the new technology to meet the market demand much faster and improve the ability of club to take the actions against the illegal activities. The new technology helps the club to fulfil the customer demand. They use the digital product and various channels to manage the market challenge and retain the customer in the club. They use the different applications like mobile live centre app to show the live telecast of football matches on their smartphones and tablets. To make the horse racing more popular among the young generation they introduced the racing simulator app and various betting apps. To increase the revenue and popularity they make a three year agreement the football association of Hong Kong to provide training to the youth (Lam, 2017). They relaunch the Quartet bet software for trading with security and speed. The software provides the more authenticate and real time data to the customer to evaluate the result of the events. The Hong Kong Jockey club adopt different strategy to compete with the illegal operators. 1. The drivers who influence the change in the jockey club Organisational drivers are the person who brings the changes in the organisation, linked with the goal and influence the firm for these changes. The key rivers who influence the changes are: Customer :The need of the customer influence the Jockey club to bring the changes in the club. Thecustomercentricapproachinfluencetheclubmembertosegmentthemarketon demographic and behavioural basis. They target the young group to create their interest to get the long term benefit from them. The demand of customer force the jockey club to introduce various facility. Government or legislation :The government influence the club to get the audience by enforcing various rules and regulation to illegal operators. Legislation helps in providing licence to the Jockey club for Horse racing, betting etc. in the organisation and generate the revenue by legal activities. They force the other illegal competitors to wind up their business. It helps to
create more customer for the Jockey club because the club pay tax to the government and donate the share of income to different charities. Technology :Technology influence the changes in the organisation. The development of various software and application provide the live updates of different matches and events on the single screen of the tables and smart phone of the users. It influences the Jockey club to use the technology and provide the software and application to their users for betting, live commentary and live show of football match. The technology makes the horse racing more accessible to the consumers. They use the various online apps to attract their young and female customer. Management :Management play an important role to bring the changes in the organisation. They prepare different strategies to effective and efficient management of the club. They start few programmes in their club to involve the staff. They launch the connect programme to encourage the 27000 employees to connect with each other and with the organisation. They also prepare different contest to motivate the employees. The different workshops, events and seminars connect the employees and familiar them with the new changes. Management team manage the activities of the club like football matches, horse racing and lotteries and evaluate the improvement and their effective implementation. Competitors :Competitorsinfluence the club to bring changes. The credit loan strategy of competitors to attract the customer influence the Jockey club to innovate new strategy to regain their customer. Jockey club established the Hong Kong jockey club college to promote the trainingandlearningamongthecustomer(KEYDRIVERSOFORGANIZATION EFFECTIVENESS, 2014). Culture :The culture of the nation also influence the organisation to develop some new strategies and change their process. The population of Hong Kong was engaged in gambling and betting in the market. In 2010/11 people spend HK$26 billion in Macau casino and HK$23.7 billion in Jockey club. The interest and culture of the nation influence the jockey club to create more lottery and racing events. 2. Implementation of change process To effectively implement the change process Hong Kong Jockey club has to identify the places where they need the changes. The club fully aware about the market and the segment of the customer who hep to generate the revenue for the club. To capture the younger generation they use the technology like advance software and betting apps. They shift toward the online betting
from the offline betting. It also reduces the operating cost. Now their aim is to customer acquisition rather than to profit making. They present solid business case regarding the change in vision, mission, betting account opening,traininganddevelopmentofstaff,preparestrategyforpublicrelationtothe stakeholders to make the efficient changes in the club to attract the customer. The prepare proper plan for making changes in the club. They set the goal and SMART plan for generating revenue and increasing the customer. To implement the change process they have to focus on the different departments and their goal. They prepare the action plan and implement in the club environment. Jockey club use the various resources and data to implement the change process. They evaluate the various resources to strengthen the change process and for the effective implementation of the process. The various data provide the information regarding the external environment and the competitors. To implement the change process they use various communication channels like social media, applications and advertisements. They communicate the information to the all departments of the club to manage the activities and give their suggestions in improvement and make changes. It creates the two way communication and transparency in the jockey club (Canterino and et.al., 2018). They manage the barriers and resistance created by the public and some time by the staff to implement the change process. They do various charity work to aware the public about their social work and attract toward their business. To implement the change process the CEO and Steward board exercise the positive chance in formulating process of government. They also work to improve the performance and deal with the resistance in the club. They monitor the budgets to manage the barriers or resistance in change process. For the effective implementation of change process and to remove the resistance Jockey club celebrates the success of their employees to motivate them and adopt the changes. The CEO of Jockey club host the lunch and praise the performance of their staff. They review the change process and redesign if they need any changes in the process. It helps them in implementation of he process by evaluating the constraints in the process and rectify them in early stage so they can effectively manage the activities of the Jockey club.
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3. Application of Kotter's model of change: Kotter's model consist of 8 steps with the help of the model we learn that successful change can occur by following these steps(Kotter’s 8 step Model of Change. 2019). Step 1 :Create an urgency- The major threat to the Hong Kong Jockey club is the presence of illegal bookmakers such as Macau junket operator who obtain the high value customers of the Hong Kong club by giving a credit loan. Due to the increase in tax rate on horse race betting the people ofHong Kongis investing their money in Hong Kong. By seeing the statistics in 2010 the people of Hong Kong spend about HK$ 26 billion if this will continue to happen the Hong Kong economy can be greatly affected. In order to avoid such a huge loss to the economy of the Hong Kong the people of the city should understand this issue as well as the stakeholders and the industry people should give a proper support to avoid the involvement of people in such type of illegal activities. Step 2 :Forming powerful guiding coalitions-In order to build a good team by encouraging the employees. In order to encourage the employees of the club the various programme have been conducted such as in 2010/11 launch an “connect to foster” a staff programme for the 27,000 employees of the club so that people of the club interact better with each other and with the club's customer. The club is supportive of in human capital development within the organisation as well as outside the organisation. This programme was setup as to make the employees of the organisation ready to adopt the challenging environment in the business. Step 3 :Develop the vision and strategy -The club has made the strategies in order realize the change in the organisation. The executive director of betting, finance and corporate development has created a clear roadmap to share the common vision and mission to the peoples of the organisation. The club make use of Egon Zehnder to analyse the capabilities of the senior executives to see that whether the leader of the project best suits for it or not. Step 4 :Communicating the vision -The human resource director of the Hong Kong club organise the business meeting for the Senior executive every year to discuss about the business plan and new ideas. SMART goals were aligned in order to achive the business objectives. Step 5 :Remove obstacles -Resistance is common in every process in order to avoid the resistance which can be caused due to fear of unknown, risk associated with budget and return on investment risk(Doppelt, 2017). the CEO of club and Board of Stewards has designed a good governance framework. The company has also been in the charity programme in order to set an
image of the club and reduce public pressure. The training is also provided to the employees in order to make all staff eligible and independent with their assigned work. Rewards and incentives were also given to the staff members. Step 6 :Create a short term wins –The leader of the team creates a small targets which are aligned in such as way as to reach to the goal of the team. The CEO of the Hong Kong club always encourages and complement employees for their good performance openly by organising cocktail lunch for them. Step 7 :Consolidating gains –During the cocktail lunch the employee were given achance share the individual experience. Step 8 :Anchoring change in the corporate culture -Due to change in the consumer expectations and competition in the market. So the people within the organisation should always be ready for which the club has been continuously adjusting the change management strategies according to the situation in order to remove the barriers in the change management process. 4. Critical evaluation of change The various steps taken by the Hong Kong club to smoothen the change management is Identification of the weak area which need improvement: The club analysed the area which is needs the improvement. By analysing the company came to know about the weak areas which need improvement such as change occurring in customer choice, technology development etc. Critical evaluation Advantage : The club has taken the right step as in the club is facing many competitors in the market and also facing the loss due to high migration of customer therefore in order to understand the need of the customer and the changing market environment the company has taken the right step. Disadvantage : The company can suffer loss by investing in technology as the technology is changing rapidly changing so investing in a particular machine or software can result in loss . Presented an business case to the stakeholder :Hong Kong club top management create a clear vision and the roadmap to achieve the vision. Advantage: As stakeholders are the key members of the organisation it is essentials for every organisation to present a clear vision to stakeholder of the company so that all the members move in the same direction.
Disadvantage : The clear vision set by the executive director can result in misunderstanding can cause the ….. Plan for the change:The Hong Kong club prepare its top management in order to face such changes in the market. The club prepares the SMART goals to meet the objectives. Advantage : Every organisation has to suffer the impact of changing market. There it is good that the company has already prepare the staff to deal with such changes. Disadvantage :If any of the executive shares the business plan to any third party. It can cause club to face huge failure. Provide resources and use data for evaluation: The club carefully allocate the resource to strengthen the business model. Advantage: The company gets the benefit by the proper allocation of resources such as technology and pulling together all the executives to achieve the objective. Disadvantage : The disadvantages of the step is that to allocate the resources needs an huge investment which be a negative to the club if not managed properly Communication: the club has open line of communication means there is transparency and two way structure of communication. Advantage : It will help all the members of the club to move in same direction(Anderson, 2016). Disadvantage : It can cause an junior employees to not listen to their seniors or to disrespect their views. Monitor andmanage resistance, dependencies and budgeting risks :In order to manage resistance the Hong KonDoppelt, B., 2017g Jockey club has created a good image in the market by being in the activities of social welfare such as charity works. The company has also provided a training to employee to cope up with the changing environment. Advantage: By providing a proper training to the employee the company can make its staff highly skilled which will help the company to work more effectively and efficiently. Disadvantage : the club can face the loss as it requires a huge capital and human efforts to give training to the employees and if the employee leaves the organisation than the organisation has to bear that loss. Celebrate success :The senior management of the club organise the cocktail lunch for the employees and complement the outstanding performer.
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Advantage : The advantage of celebrating the success is that the team as well as employee feel motivated when they get a reward for their performance. Disadvantage : Celebrating the success of the particular employee or particular team can have a negative impact on the other. Review, revise and continuously improve :The club continuously make changes in its process in order to suit the situation. Advantage : This will help the club to adapt the change easily and to remove various roadblocks. Disadvantage : The employees of the organisation may suffer due to continuous change in the company plans. Some employee may feel difficult to adopt the change which hamper the work of employee. 5. The factor cope up by the management in the process of change Technology:Hong Kong Jockey Club management was looking to attract younger person toward the company so decided to offer the services of online betting to customer which has forced the management to dealt with the technology which was used to provide online betting to the customer. Business Activity:Due to change in the style of the business, management has to cope up with new activity of the business which include opening customer account online, training of staff and official in the organisation Revised Goal:Due to change in the format of the business new and smart goals was set up by the senior management which has forced he department management to influence their were according to the new goal set up by the Hong Kong Jockey club, so that they can achieve the goal with good quality of work (Hughes, 2018). Resources:Due to change in the format of the business proper evaluation of the resources was also taken place in the organisation and if there was any requirement of the new resources then it was also introduced, evaluation of human resources was also done in the organisation which has forced management to cope up with the new resources in the organisation. Strategies:After implementation of all the changes in the organisation new communication strategywasalsointroducedwhichhashelpedthemanagementtohaveatwoway communication with the employee which has helped the management to understand the views and thought of the employee.
Employee skills:After implementing changes in the business. Training style of the employee was also changed to cope up with the new requirement of the business and to increase the efficiency level of the employee which has helped the company to improver the quality level of the human man power in the company. Employee Satisfaction:After implementing the change in the business new remuneration plan for the employee was introduced in which employee was offered a higher wage rate and incentive trip. Management also started praising the outstanding performer openly which has helped the management to improve the motivation level of the employee in the organisation. Conclusion The club has taken the right steps as the demand in the market is continuously changing and in every industry there is huge competition in the market. For the survival of the organisation it is necessary for every organisation to make changes in their strategies, work culture and mission. The Hong Kong Jockey club has been facing a huge loss due to the illegal bookmakers in the market. The company is losing its high value customers as the people of Hong Kong are now investing their money in Macau due to increase tax on Horse race betting which is also affecting the economy of the city. The club is facing a huge loss due to such activities therefore the member of the club make an appropriate changes to cope up with the situation. The company has taken many steps in order to change the working environment of the club in such a way that to create a profit to the company as well as its customer. The club has made various major changes in the organisation for its employees and customer. The company has also changes its governance policy and launched the new products to attract new customers. The organisation should prepare its staff to adopt the change for this the organisation can adopt proper training programme for the employees which will help the employee in achieving their individual as well as organisation goal(Hayes, 2018). The Hong Kong Jockey club has adopted the various changes for their employee for example the company has launched the “connect” a staff programme to motivate the employee. This programme helps the club to become more customer centric. In this programme seminars and workshops were conducted for the employee. Another factor which plays an important role in the success of the organisation is customer as customer are the one for which the company is providing its services(Pafford,2018). As the customers of Hong Kong Jockey club are shifting to the other competitor the club has opened an new venues for the different customers. The club has also opened an public betting hall which is more female
friendly which helps in attracting the female customers. Thus it can be said that the steps taken by the club is correct according to the situation the company is facing. Recommendation I would have work on the governance part asthe club need more support from the government because there are many illegal bookmakers in the market which has changed the whole environment of the gaming. The technology has also given support to the illegal betting activities. Theillegal activities by the others result in loss of high value customers of Hong Kong Jockey club. The club can take the help of the government to stop such legal activities in the market. If the proper rules and regulation is made by the government that it will allow the authorised agencies to preventgambling and it will also protect the public from any type of inconvenience. The government will also get benefit from this as the revenue earned by implementing the tax on betting can be used for public welfare. CONCLUSION After going through above content it has been concluded that for growing the business and attracting more younger customer toward the businessHong Kong Jockey Clubdecided to change the format of business by offering the service of online betting to the customer which initially looks like a though task to perform for an organisation as they were forced to make a lot of changes in their business activity, policies, operations and strategies which has created a heavy demand of finance for the organisation and created heavy risk for the organisation but organisation has successfully able to dealt with all the problem by creating new strategy and new policy for the management and which has proved good for the organisation as it has helped the business to attract the more customer and to grow in future. REFERENCES Books and Journals Anderson, D.L., 2016.Organization development: The process of leading organizational change. Sage Publications. Blanchard, K., 2018.Leading at a higher level: Blanchard on leadership and creating high performing organizations. FT Press.
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