Mitigating Strategies within Operations Transformation: A Case Study of Royal Mail UK

Running head: LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
Research Topic- a critical investigation of risk mitigating strategies within operations
transformation: a case study of Royal Mail UK
Name of the Student
Name of the University
Author Note

1LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
Acknowledgement
Firstly, I would like to thank my Principal Mr./Mrs./Ms. ____________________________ to
provide me the opportunity to be a member of the _______________________ University. I am
grateful to complete my education under his guidance.
I would also like to thank my mentor Mr./Mrs./Ms. ____________________________ for his
hours of guidance and encouragement that helped me to gain confidence.
I want to thank my parents for supporting me throughout the project which has helped me to
sustain all the obstacles that have obtained.
My friend and classmates also have a supporting role in helping me with the research papers.

2LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
Executive Summary
This research highlights the critical research on the risk mitigating strategies within operations
transformation in case of Royal Mail UK. It is evident that in order to maintain the need of the
market and obtain customer demands, a business needs to improvise their business function. This
will provide them with a competitive advantage. In case of Royal Mail, the transformation
process was initiated after many years of their annual loss and the first initiative failed. The main
reason for the failure of the business transformation process was lack of professionalism in
analyzing the market demand, the inability of incorporating the digital platform, implementing
modernization and lack of communication among the employees. Moreover, the strategies that
are taken by the organization for overcoming the failures of the business transformation process
is also explained. The processes that they have considered were implementing digital and
automation technology to make the business processes fast and effective. Moreover, Royal Mail
also formulates a completely new business plan for overcoming the drawback. This time, they
have compared their plan with the leading courier and mailing organizations so that the newly
formulated plan can sustain all the odd of the market and customers. This research is based on
secondary analysis and finding from the Royal Mail’s reports, collaborating organization’s
websites and authentic newspaper sites. Thus, non-probability sampling is implemented in order
to accomplish this research study.

3LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
Table of Contents
Chapter 1: Introduction....................................................................................................................8
1.1 Background of the study........................................................................................................8
1.2 Rationale of the research.......................................................................................................9
1.3 Problem statement...............................................................................................................10
1.4 Aim of the research..............................................................................................................10
1.5 Objective of the research.....................................................................................................10
1.6 Question of the research......................................................................................................11
1.7 Structure of the research......................................................................................................11
Chapter 2: Literature review..........................................................................................................12
2.1 Background of the company................................................................................................12
2.2 Theories of change management and business transformation...........................................12
2.2.1 McKinsey 7-S Framework............................................................................................12
2.2.2 Lewin's Change Management Model...........................................................................16
2.2.3 Kotter's 8-Step Change Model......................................................................................18
2.3 Causes of failure in business transformation.......................................................................22
2.3.1 Improper planning........................................................................................................22
2.3.2 Improper alignment of stakeholder’s objectives...........................................................22
2.3.3 Inefficient execution.....................................................................................................23

4LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
2.3.4 Poor communication.....................................................................................................23
2.3.5 Lack of acceptance and commitment...........................................................................23
2.3.6 Poor leadership.............................................................................................................24
2.4 Techniques of mitigating failure of transforming the operation..........................................24
2.4.1 Establishing transparent communication system..........................................................25
2.4.2 Meetings with business experts....................................................................................25
2.4.3 Adopting risk management techniques.........................................................................26
2.4.4 Developing learning plan..............................................................................................26
2.4.5 Designing reward system..............................................................................................27
2.4.6 Developing new team...................................................................................................27
2.4.7 Spreading the risk.........................................................................................................27
2.5 Methods of transforming the business operations...............................................................28
2.5.1 Preparing flow chart.....................................................................................................28
2.5.2 Force Field Analysis.....................................................................................................28
2.5.3 Data Collection.............................................................................................................28
2.5.4 Culture mapping...........................................................................................................29
2.5.5 Project plan...................................................................................................................29
Chapter 3: Research Methodology................................................................................................30
3.1 Research Philosophy............................................................................................................30
3.1.1 Justification for selected research philosophy..............................................................30

5LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
3.2 Research Approach..............................................................................................................30
3.2.1 Justification for chosen research approach...................................................................31
3.3 Research purpose.................................................................................................................31
3.3.1 Justification for selected research purpose...................................................................31
3.4 Data collection process........................................................................................................32
3.5 Data Analysis techniques.....................................................................................................33
3.6 Sampling Technique............................................................................................................33
3.7 Ethical consideration...........................................................................................................34
3.8 Research limitation..............................................................................................................34
3.9 Research Timeframe............................................................................................................34
Chapter 4: Data Analysis and Findings.........................................................................................36
4.1 Reasons that cause failure in business transformation........................................................36
4.1.1 No plans for incorporating parcel service.....................................................................36
4.1.2 Inability to incorporate digital transformation..............................................................38
4.1.3 Battle for Modernization through Privatization............................................................40
4.1.4 Poor communication among stakeholders....................................................................44
4.2 Techniques for mitigating failure of transforming the operation of Royal Mail.................46
4.2.1 Privatization of the company........................................................................................46
4.2.2 Incorporating digital platform and automation.............................................................47
4.2.3 Changing the entire business procedure.......................................................................51

6LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
4.2.4 Internal communications program................................................................................53
Chapter 5: Discussion....................................................................................................................54
Chapter 6: Conclusion and Recommendation...............................................................................58
6.1 Conclusion...........................................................................................................................58
6.2 Recommendation.................................................................................................................59
Reference List................................................................................................................................61
Appendix........................................................................................................................................73

7LEADERSHIP AND TEAM MANAGEMENT DISSERTATION
Table of Images
Image 1: Structure of the Research................................................................................................11
Image 2: McKinsey 7-S Framework..............................................................................................13
Image 3: Lewin's Change Management Model.............................................................................16
Image 4: Kotter's 8-Step Change Model........................................................................................19
Image 5: Overall Inland Mail Volumes in UK from 1981 to 2012...............................................36
Image 6: Projected Volumes of projected volumes, 2005 to 2023................................................37
Image 7: Projected Volumes of Total inland parcels, 2005 to 2023.............................................38
Image 8: Operation of the compensation scheme for 2016/17......................................................39
Image 9: Strike by Postal Worker of Royal Mail..........................................................................41
Image 10: Operational Transformation in Royal Mail..................................................................48
Image 11: Future Vision for Transformation Journey...................................................................50
Image 12: Royal Mail’s Business Plan..........................................................................................51