Managing Strategic Change in an Organization

This document discusses the models of strategic change, such as ADKAR, Kotter's model, and Lewin's change management model. It also explores the factors driving the need for change in an organization and the value of using strategic intervention techniques. The implications of strategic change on organizational resources are discussed, along with the involvement of stakeholders in the change management system.

Managing Strategic Change in an
Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
1.1 Models of strategic change ..............................................................................................3
1.2 Relevance of these models on practice.............................................................................4
1.3 Value of using strategic intervention techniques .............................................................5
LO 2.................................................................................................................................................6
2.1 Need for strategic change in organisation .......................................................................6
2.2 Factors which drive the need for change..........................................................................6
2.3 Implication of strategic change on organisation resources...............................................7
LO3..................................................................................................................................................8
3.1 Involvement of Stake holders in System for Change Management.................................8
3.2 Changer management Strategy and Involvement of Stake Holders.................................9
3.3 Suitability of system for Stakeholders............................................................................10
3.4 Strategies to Minimise Resistance of Stakeholders........................................................11
LO 4...............................................................................................................................................12
Change Management Model.................................................................................................12
Factors That Affects the organization Change.....................................................................13
Measures of Monitoring.......................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Change can be defined as a process which include continuous transition of existing state
into new state. Change is multi faced phenomenon. Strategic change can be defined as planned
or systematic way of restructuring business process in order to achieve goal of organisation. The
study will highlight various models which is used for strategic change management such as
ADKAR, lewin model of change management and Kotter's model of change. It will also show
the value of using strategic intervention techniques and how its is valuable for the organisation.
The study will also cover various factors which drive the need for change in organisation. The
various strategies which helps in change management is also been discussed. In order to explain
all this Arkadia has been taken in a study. Arkadia comes under a Mizzi organisation. Mizzi is a
large organisation providing in services in various sectors such as automotive, finance, retail, real
estate, beverage, insurance, gaming, IT etc.
LO 1
1.1 Models of strategic change
Arkadia use the various models in order to manage change within the organisation.
ADKAR model : The model is people focused which helps in change management. The model
was created by Jeffrey Hiatt. The model helps Arkadia to manage change at individual level. It is
difficult for any organisation to prepare their employees for accepting change. Therefore this
model helps Arkadia to prepare employees for accepting change(Karambelkar and Bhattacharya,
2017).
ADKAR is an acronym :
Awareness : It means creating awareness for need to change
Desire : Creating desire to support change
Knowledge : Getting knowledge of how to change
Ability : An ability to implement change
Reinforcement : Reinforcement to sustain change
As the any organisation can implement change only if its employees support them. This
model help in successful understanding of employees about need of change.

Kotter's Model of change : The Kotter's model of change involves 8 steps which help the
Arkadia to successfully manage change and implement it in a successful manner within the
organisation. The 8 steps are :
1. It creates a sense of urgency among the company
2. Building strong coalition
3. Forming a vision
4. Involving everyone
5. Enabling action by removing roadblocks
6. short term goals
7. sustain acceleration
8. Institute change
This model helps Arkadia to successfully convert an resistant individual into active participants
with the help of trust, teamwork and transparency(Andreasen and Gammelgaard, 2018).
Lewin's change management model : According to this model the change can be broken into
three stages :
Unfreeze
Change
Refreeze
As per this model the employees should start a process with clean slate by unfreezing the
current process or work they are in. Secondly the change should be implemented. This step
requires a clear communication among all the team members as well as different department
within the company. Lastly the feedback which has been taken in change step should be
implemented in new process.
1.2 Relevance of these models on practice
Currently Malta is facing lowest unemployment rate. In year 2016 the net increase in jobs
was about 10,500. The employers are searching for a candidate who fulfil the needs of a
particular position. Malta is however facing loss in adapting the global regulatory changes expect
in a sector of igaming. igaming is one of the important sector for Malta but other than this all
other factor are also responsible in order to contribute to the improvement of economy.
The Arkadia has however plan to create a job opportunities for people. The company will
not only recruit employees but they will also train employees in order to enhance their skill and

knowledge. The company focuses on fulfilling the demand of customers and thus contribute in a
economy of a country. The company provides wide variety of services thus fulfilling the needs of
almost all type of costumers. The various model which the Arkadia is using help the organisation
to adapt the changes which is taking in the global market. The management of the organisation
apply this model in order to manage change in organisation(Ansoff and et.al., 2018). For
example if we talk about ADKAR model it help the management to prepare its employees to
adapt change and understand the need of change and practice which the company in
implementing and support them.
1.3 Value of using strategic intervention techniques
Strategic intervention techniques can be described as planned, focused and deliberate
effort of improving business growth. Strategic intervention techniques helps the organisation to
find their own strengths and helps them to perform the process of change. As Arkadia is
operating in various region and in various sectors such as food, home retailers and fashion thus it
has to face continuous changes(Hayes, 2018). Therefore it is very necessary for organisation to
adopt strategic intervention techniques in order to develop human resource in order to adapt
change.
This model helps the organisation to achieve organisation objective with the help of
cooperating team members.
Some strategic intervention techniques which help Arkadia to achieve success are :
Team development : this techniques basically concerns on creating goals, giving them priorities
and examining them in order to build relationship among employees and meeting the objective of
both team as well as organisation.
Inter group problem solving : The organisation assures to conduct group meeting and involve
the key players as well as its employees in it. In such meeting members are allowed to present
their views and discuss it freely with others
Strategic intervention techniques applied by Arkadia helps the organisation to achieve its
goal successfully. With the help of intervention techniques the company successfully manage
change in the organisation.

LO 2
2.1 Need for strategic change in organisation
Strategic change means to make change in organisation vision and mission. By planning
for the strategic change the organisation may realise the way or possibilities in order to meet the
new challenge. Planning for strategic change also help organisation to prepare for the change and
the new challenges(Why you need a change management strategy, 2019).
Usually change happens when any organisation face a big crisis, crisis can be internal as
well as external or due to consumer behaviour which can affects the firms and it can also occur
when organisation feel to make change internally in order to achieve big target.
Arkadia is facing huge competition in a market. Internally the company is facing the
problem with inventory management therefore the company also have to make proper change
management strategies in order to deal with it. Therefore in order to deal with this problem
company can make use of RFID. It will help the company in order to manage inventory as well
as track the assets(Cook, 2015).
Due to economic crisis the frequency of customer is also reducing in the market.
Therefore it is necessary for the company to analyse the need of change, scope of change and
implement proper strategies in order to achieve success in organisation.
Company should create an change management strategy in order to develop the team
structure, risk assessment and sponsor model. Without the proper support of team and
appropriate model it would be difficult for company to achieve its objectives.
The RFID will also help company in increasing employees productivity, mitigating risk,
loss and theft.
2.2 Factors which drive the need for change
The factors which bring need of change in Arkadia are :
Political factors : Any change in the government rules, policy, competition regulation, trade
restriction are some of the political factors which can bring need of change in company. Arkadia
comes under a one of the largest private owned group it invested about euro 75 million in order
to expand its business. . The organisation has master franchisee rights which is extended to
Slovakia where the organisation has four stores, The company has invested in wide range of

activities. As a result it can be seen that the company is spread in various areas and operating
various type of business any change in political factor may create a need of change for company.
Economic factors : Economic trends, industry growth, seasonal factors, unemployment rate,
interest rate, inflation etc(Alava and Mu, 2018). The Malta is currently facing loss in economy.
The Arkadia is contributing to the economy of a country. But as the huge unemployment rate is
increasing in Malta company may require to implement change in its procedure in order to create
more employment.
Social factors : Behaviour, customer services, population growth, demographics, family size,
life style trends etc. The change in population growth and change in lifestyle trend may require
Arkadia to make changes accordingly in its products and marketing strategies in order to attract
customers.
Technological factors : legislation for technology, customer access to technology, automation,
research and innovation etc. As the Arkadia provides various services and almost all kind of
sector now a days requires technology in its working(Helfat and Martin, 2015). Therefore change
in technological factors may put pressure on company to make changes in its strategies and
equipments of technology.
2.3 Implication of strategic change on organisation resources
If the resources do not respond to the change which has been planned than it may create a
great implication on business. The resources here refers to core implementation team, end users,
human resource, physical assets etc(Hock, Clauss and Schulz, 2016).
Hiring of employees : As the employees of Arkadia does not want to come out of their comfort
zone the need may arise to recruit new people in an organisation. It will require a huge cost and
time in order to recruit new employees in the company which will ultimately result in decrease of
profit.
Training staff : But if the existing staff become ready in order to accept change in organisation
than it does not require by a company to incur cost in training and development programme for
new employees. A company has to incur a low amount in training and development of new
employees.
New physical assets : If the physical resources such as building, equipment, machinery is not
available in appropriate quantity than it may affect the overall operation of company.

Managing finance : Management of finance is one other important resource. The change in
management strategy may impact the overall profitability of the organisation.
Restructuring of organisation : If the members of organisation does not support or encourage
the process of change in an organisation than it becomes necessary to do restructuring of an
organisation i.e., to change overall structure. The process is time consuming and require a huge
investment which can create a negative impact on company or may lead a to a great loss to a
company(Hornstein, 2015.).
It the end user is not provided proper training than it may become difficult for them to completer
their work which may result in huge loss or wastage of time as well as resources.
LO3
3.1 Involvement of Stake holders in System for Change Management
For implementation of change in the organization is done by following specific procedure
that can be called as system for change managemen. (James and Frank, 2015). Company is
changing its technical system that is company is currently using for inventory management. The
different stages of system of change management are Urgency creation, build a team, create a
vision, communicate vision, removing obstacles, go for quick wins, Let the change mature and
integrate change. This is how the system is used by the organization to implement change in the
organizational procedures.
Urgency Creation- This process contains planning and information gathering for required
change. In this process technical and management team of the organization work together to
collect data and information to start the change implementation in Arcadia company's inventory
management. This process also includes the all departments of organization like finance,
operation and management to plan in right manner.
Build a Team- in this part of system leader or manager of the company forms a team to carry
out the change in the inventory management procedure and implement new technology like
RFID in inventory management.
Create Vision- The vision of change is provided by the leaders of company to satisfy the need
and demand of customer with in time.

Communicate vision- In this step of planning system leader make employees of organization
aware of change implementation and predictive result of it. This will help them to get familiar
with change.
Removing Obstacles- This is work of the management and operational team of company to
keep the way of organization clean to implement change in the inventory of ware house of
Arcadia group(Jick and Sturtevant, 2017). Inn this process the suppliers and employees are
involved to make them aware of new technology in the organization. Obstacles could be of
technical or skills based. These obstacles are removed by company with different activities of
HRM and technological team.
Go For Quick Wins- This is the part where the organization look for small wins to achieve the
target or implementation process effective. These steps include all the stake holders to ensure
them about change and its benefits.
Let the Change Mature- As the change is implemented in the organization company tries to
implement the change on the higher level to use it on the vast level. At this step company looks
to implement this change on the next level.
Integrate the change- The Different factors of the organization like technical factors,
operational factors and management factors are integrated together to get better output from
change.
On each stage of implementation there are different roles of stake holders. Employees are
involved to learn new technology to maintain the productivity. The management, operation
department and leaders are involved to make change more effective for organization. Customers
are at the end of this process cause they are at receiving edge.
3.2 Changer management Strategy and Involvement of Stake Holders
There are different strategies are used by the organization to make or implement change in the
Inventory management of Arcadia company retail store. This strategies are-
Proposal Incentives - Initially employees oppose the making change or implement change in the
organization procedure. Motivate and encourage them company used to provide them with
different benefits and incentives (Al-Haddad and Kotnour, 2015). This is how company wins the
trust of employees and motivate them to work with changes in methods and procedures. They are
also ensured that this will support their future carrier . This strategy is all about making
employees ready to work with new technology.

Ask For Feedback Before and After implementation – There are different people affected by
the change in company and it bis important to collect their reviews on the particular change that
is implemented by company in inventory management to provide better possibility to meet the
demands of consumers and employees. By collecting reviews and feedbacks from different
people change implementation is evaluated for success of operation and performance of
company with change.
Never Stop Communication – As the change is implemente4d in the procedure of company
then this will be very important to maintain continuous communication to full fill the gap to
prevent conflicts and chances of failure (Hughes and Wearing, 2016). Continuous
communication make the leaders and managers aware of demands and needs of employees. This
is how management and leaders can offer better condition for work with in the organization to
gain maximum efficiency in operation to deliver high class service to consumers.
3.3 Suitability of system for Stakeholders
In an organization there are different changes made by leaders and managers to gain high
efficiency in market place. Arcadia company has implemented change in the inventory
management to improve the supply chain management of organization. The for this change in
company stake holders are involves to gain their support in change implementation. The system
followed by the company is good to get better result on the production side. Different stake
holder of the organization are shareholders, managers, employees, customers, suppliers, unions
and government (Ewenstein, Smith and Sologar, 2015). All this stake holders are involved in the
system of change management. The employees are the main part of organizational changes cause
they are the person who works with the implemented change. So employees are involved in the
system to make them comfortable with change in the inventory management method. Suppliers
are involved to make them familiar of new method to adept it. In the inventory management
process company and suppliers both are important.
For the suppliers it is important to know new procedure to work according to then to
reduce the work load and avoid the issues that slow down the procedure of transportation. The
steps followed by the company are suitable to include different people who are related to the
organization with their mutual goals. The system is planned to improve the chances of change
adoption by employees and other stake holders of organization.

3.4 Strategies to Minimise Resistance of Stakeholders
Initial stages of change implementation of change in the organization people start
opposing change in the organization. Mostly the people who are opposing the change in
organization are mostly affected by those changes. This is important for the organization to
reduce this resistance to maintain the productivity of Arcadia Company (Fernandez and Rainey,
2017). Organization uses various type of strategies to manage the resistance of stake holders.
These different strategies are-
Most of the resistance faced by the organization comes from the employees cause they
are the people who are mostly affected by the change in the company procedures. Inn this
strategy company form different team and reshuffle all the employees to provide them more
collaborative environment. They are provided with collective targets and goals. The purpose of
this strategy is to improve the collaboration of employee with the change. The collaborative
action help them to learn different things about change and make them comfortable with these
changes. Different employees have different skill and qualities and this collaboration provide
better productivity at output.
Structure the Team to Maximize the Potential
The purpose of restructuring teams is to arrange the teams in the right orders to get highly
efficient result. As per the change the teams are formed and this restructuring provides better
opportunities to employees to perform good in the team to complete the target with in the time.
This reforming procedures help the employees to learn about technological changes with are
implemented by the company (Jayatilleke and Lai, 2018). This is a way to improve the potential
of each team to get collective output for high performance of Arcadia company.
Target setting – In this strategy different operating teams in the organization are provided with
challenging targets. The calculations are performed to set an effective target for particular team.
These targets are important to engage the employees to get maximum performance from them.
This is way to improve performance and productivity of each employee in the team. These
targets work as motivation for them and encourage them to perform better in their respective
task.
Resolve Conflicts Quickly and Effectively
Conflicts in the organization are not considered as big issues but when the organization is
implementing changes in the procedure and methods of production then it may affect the

performance and profit of company. This is important to resolve the issues and conflict between
the employees improve the over all performance of team for respective task. The quick solutions
are required to reduce its impact on the production and profit of organization.
Show Passion
For the organization it is important to improve the interest of employees inn their tasks.
This is important to gain maximum from each team. This passion help the to perform difficult
tasks with high efficiency.
Be Persuasive
Approach of learning is most important for both employees and organization. Learning
and getting information and skills can help the employees to perform best with their new skills
and better knowledge.
Empower Innovation and Creativity
Empowerment of employees in organization to be more creative and innovation can
provide better opportunity to achieve high targets. Innovative performance can help the
employees to perform better the organization will get the chance to improve the performance on
the productive end. This creativity and empowerment allows the employees and both company to
take higher risk in work. This calculated risk taking can improve the change implementation in
the organization.
Remain positive and supportive
During the change implementation it isd important for the organization to stay supportive
and positive towards the employees. Because the employees may going to face different issues in
the starting phase and if company puts extra pressure on them then it will increase their
resistance (Rosemann and vom Brocke, 2015). To minimize this resistance and keep employees
motivated & energetic company need to provide them with enough positiveness and support.
LO 4
Change Management Model
Levin Change Model
Levin change model is consisting of three steps that are unfreeze change and freeze. This
three steps are used by the organization to manage the ongoing change in the company. This
three steps consists of various operations which drives the success of model.

Unfreezing
in this step a wide innovative survey is performed by the organization to evaluate the
result of changes on the different factors of organization (Cameron and Green, 2015). In this step
company prepare the employees and other people in the organization to implement change.
Moving
This step is consist of implementation of different desired changes in various procedures
and methods of inventory management. All the resources that are prepared in the unfreezing
stage are used in this step to implement required changes for inventory management.
Refreeze
As innovative changes implemented in the organization procedure and working arfe
solidify in this stage. In moving stage changes are not permanent so in refreeze stage this
changes are made permanent part of company procedure.
This is how the different changes are made in the organization to meet with targets of
company. It is important for company to work in proper order to maintain the whole procedure in
right way to achieve success in the changing procedure.
Factors That Affects the organization Change
When an organization implement change in their working and operation, different
internal and external factors influence and affect this change implementation procedure. The
internal factors that affect the change procedure are employees, technical limitation, low
available capital and lack of planning. The external factors for the change management are
legislation and advance technology (Cummings, Bridgman and Brown, 2016). Internal factors
like employees, shareholders and suppliers are explained above and external factors are legal
laws like data protection act affects the implementation of new technology inn the organization.
Cause this technology works on information technology and electronic circuits. This act is
preventing the organization to misuse the information of employees. If the technology available
in the market is far more advance then company technology then company will not be able to
integrate this technology with current technology used in Arcadia.
Measures of Monitoring
Arcadia group can use different methods to measure the monitoring standards. This
methods of monitoring in the comp[any are employees tracking by technology like RFID and

Artificial Intelligence, cameras and performance tracking tools and work performance shee of
company employees.
CONCLUSION
Change is continuous in global environment. Thus it becomes necessary for organisation
to deal with this change and met the needs of customers accordingly. But sometimes it become
difficult task for organisation to introduce change in an organisation. The reason behind this is
various factors which resist the change in organisation. One such important factor which
resistance change in organisation are employees. The organisation can manage and introduce
change by adopting various models and techniques of change management. The study helps in
understanding of various change management model. And how this model helps organisation to
manage change. The various models help top management to introduce change within the
organisation by mutual cooperation and support of their employees. The study has also discussed
about the various factors which can bring change in organisation. It gives an idea of how these
factors can be managed by a organisation. The study also gives an understanding of the
importance of strategic intervention techniques to an organisation. It also give an idea of how
system can involve stakeholders in planning of change management process. The various
strategies can also be used in order to manage resistance to change.
However it can be said that with the help of various tools, techniques, models and
appropriate use of strategies of strategic change management the change can be managed by an
organisation.

REFERENCES
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Online
Why you need a change management strategy. 2019. [Online] Available through
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