Table of Contents LO 1.................................................................................................................................................3 P1 Impact of Change on organisation's strategy and operations.................................................3 P2 Internal and External drivers of change affect leadership, team and individual behaviours in organisation.............................................................................................................................6 LO2..................................................................................................................................................9 P3. Evaluate measures to minimize the negative impacts of change..........................................9 LO3................................................................................................................................................11 LO4................................................................................................................................................11 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................13
INTRODUCTION Understanding and leading changes help the people working in the organisation to get aware about various changes with respect to the organisation and what problems will the company face during these changes. It also tells about advantages of these changes and what will it result in. This also includes understanding the need of change and how it help in building a strong organisation by influencing people working in the organisation to know importance of changes according to market need and go with the changes so that company can compete to there rivalry and can lead the market. Captify is a UK based company founded by Dominic Joseph in 2011. Company's unique technology helps the 2.2 billion consumers all over the world as the companyunderstandconsumerssearchbehaviour.Inthisreportimpactofchangeson organisational strategy and operations are described by analysing these changes in two UK based companies that are:- Captify and Checkout.com. Further the report includes different Internal and External drivers of change which affect leadership, team and individual behaviours in Captify. Captify take different measures to minimise negative impacts of these changes which are explained further in the report. Different barriers for change and there influence on leaders decision making is explained in this report. At last different leadership approaches are applied to deal with changes in Captify. LO 1 P1 Impact of Change on organisation's strategy and operations Strategic and operational changes in an organisation plays an important part towards the growth of the business. These changes are necessary to compete in market and survive in tough competition. Operational changes are based on product and services whereas strategic changes are based on discoveries of new sources of business. Operational changes help in maintaing day to day operations of the firm and motivating employees of the business to work efficiently. This reduce risk and boost up morale of the firm (Espedal, 2017). On other hand strategic changes bring new ideas and brings clarity to the business. Focused planning and strategic thinking can lead to market positioning. Captify and Checkout.comhave great impact of operational and strategic changes. Captify:- 3
It is an ad-tech company founded by Dominic Joseph in 2011. In just one year after its launch Captify earned £1M out of the operation. Now company has become global leader in search intelligence and becoming better day by day with its innovative strategies to understand consumer behaviour and form a path to reach the customers mind with different marketing strategies. Company is also coming up with different opeartional changes by developing such innovativeproductswhichattractdifferentcustomerstowardsthem.Operationalchanges according to interest of customers are necessary in every organisation as it develop the products according to customers need and this lead to progress of the business. Captify's semantic technology is very unique as it analyse billions of monthly searches across all channels and in every device (Glass and Cook, 2016). For implementing such changes Captify has invested approx 15 million $ for bringing positive changes in organisations growth. By coming up with such startegies in market it impact the organisation in positive aspects. It is increasing captify's product and service need in the market. Marketers of captify are making various strategies to come up with effective ways to optimized search results as voice search will be in full demand in near future. There strategic planning is basically on future aspects of business environment. Because of such good strategic planning and time to time bringing changes in the operations of the business Captify have generated 34.5M $ revenue (Watts, 2019). Strategic changes can also helping in clearing vision of the Captify and will results in longevity of the business. Captify also raised£8M in series B funding to expand its product suit. Bringing such strategies for the business can bring new scope for the firm. Presently company is working with 88 media agencies in UK and 100 in Europe for this company also run different campaigns. Checkout.com:- It is a leading international provider of online payment solutions for different websites and Apps which was founded in the year 2012. Company focuses on e-commerce payment solutions and work on different opeartional part to provide platform for the same either through mobile purchasing or online one. Operational changes are helping the company to bring quality of work in the organisation. These changes are improving collaboration and communication internally as well as externally in Checkout.com. As competition is increasing day by day in this business. Company has become first payment solutions provider as it accept payment for all major international cards like Visa, Mastercard, JCB, American Express and Discover. These strategic changes are increasing quality of the business. Company has also discovered local payment 4
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solution methods which helped out in middle east to do payment with made in KSA and OmanNET in Oman. To compete in market company work out on different strategies and build their business in such way that now company is able to support more than 150 currencies. They are also making various operational changes to grow there market size (NHS England, 2016). They worked on mobile optimization and now able to accept payment with help of popular digital wallets like Apple pay and Google pay. It is tough for the company to manage their business at different places having different work environment but Checkout have developed various strategies with help of which it is now able to provide local expert in all possible regions who can guide their customers. Customers are attracted towards the service as it is transparent and trustworthy. ChangesCaptify'sCheckout.com Technological changesCaptify'shasmade technologieschangesinits organisation,ithasnow updatedoldtechniqueswith newone.Thistechnological upgradation helps the firm in improvingoperational efficiency,asthishas minimisedcostofoperations andsupportedinraising productivityofCaptify's. Furthermore,useofadvance technologies aid the business in dealingwithnewconsumers, minimising wastage which has impacted positively on business unit. Checkout.com has now adopted advancetechnologicalsystem for payments, different payment gateway services and increasing operationalactivitiesofthe business.Theseoperational changesarebringing competitiveadvantageforthe firm.Withdifferentstrategic formulation company is able to make its position in market Structural changesEarliercompanywashaving divisional structure but changes in structure and implementation WhereasCheckout.comhas madeorganisationalstructural changes in the firm, earlier it 5
ofmatrixstructurehas improvedoperational efficiency and has made all the workers discipline. Now they are able to work under senior guidancewhichmakethem more productive and they get motivatedbygettingtheir amazing support. was implementing tall structure where all the higher authorities weretakingalldecisions,but now it has adopted flat structure. Thisradicalchangehas supportedCheckout.comin improvingcommunicationat workplace,allthepeopleare now being involved in decision making process. Now they are abletounderstandproduction changesinthefirmandthey givetheirfullsupportto managementinordertoget positiveresults.Hencethis changehas positively affected Checkout.com. LO 2 P2 Internal and External drivers of change affect leadership, team and individual behaviours in organisation There are different factors which brings changes in leadership, team and individual behaviours. It is divided in two aspects:- Internally and Externally. Internal drivers of change Internal factors are as follows:- Leadership:-It depends on the leaders of the workplace how thet are creating the value of the organisation. Leaders of Captify inspire there employees to work hard and achieve organisational goals. They help their employees to find the ways and solutions for different problems arising during the business. It is responsibilty of leaders to give reward for employees good performance and help them to enhance there skills towards the development of firm (Al-Haddad and Kotnour, 2015). Leadership style affect behaviour 6
of each member working in team and also lead to behavioural changes of whole team. So, leaders should build up a friendly environment where every one love to work. Communication:-Communication between the employers and employees must be clear and understandable as it is responsibilty of the leaders of Captify to guide their people and make them a valuable source for the growth of the organisation by keeping a positive behaviour in front of employees. Internal environment of every firm should be friendly where people can communicate with each other without hesitation. This build a healthy working style for an individual and it also develop a trust between employees and leaders which affect individual and team behaviour in positive manner. If communication is weak then there are chances that in near future employees will not retain for long duration and those employees who are working in Captify will not have a positive attitude towards the firm as well as customers. Organisational structure:-There are organisations where structure is hierarchical and many leaders and managers are handling the organisation from top level of the business to bottom level. When the Captify was established the structure of the firm was flat. The structure was made with interns and they were trained to handle the operations of the business (Lopez and Wise, 2015.). As the business grow they started changing there process and focus on structuring a board. As the time passes there structure become hierarchical and leaders become strong enough to handle the business and take it in right direction with help of different operational and strategic changes in the business. A good organisational structure brings positive behaviour of every member towards team and also the leader. Learning:-Competition is increasing day by day as new firms are coming up with innovative ideas. Technology is advancing with a great speed and affecting growth of the organisation. Captify is working on different learnings from market to explore areas where it is not able to find its way by bringing innovative ideas and developing there products and services in the direction where new opportunities are available. It is duty of leaders to search about the new technology coming in the market and make there employees aware about it. Further proper training must be given to employees so that they can use it for making there work easy going and can compete in market. External drivers of change 7
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External factors are as follows:- Political factors:-Various political factors affects products and services of Captify. In Captify labours are given wages according to labour law because of this every individual work with its full potential towards the growth of the organisation. They work in team and leaders not have to put extra afforts to make them work. There are many political factors like different tax policies, tariffs which affect business externally. If tariff barriers are there then it may negatively affect growth of the organisation as international business will be affected. Economic factors:-There are various economic factors which affect behaviour of leadership, individual and team. If inflation rate is high then Captify will face varuious operational changes which can affect decision making of leaders and employees will be dissatisfied towards there work (Flanagan and Gregory, 2019). Exchange rates can also affect cost of goods exported or imported and this will directly or indirectly affect business. Social factors:-There are factors like age distribution which affect individual behaviour in the firm. For example ageing of population which will lead to less willingness of employees to work. If Captify want to reduce this effect they have to hire young people who are willing to work in the organisation with full energy. These employees can bring new scope for the firm and they will work with enthusiasm. This will lead to increase in productivity of the firm and also employees satisfaction towards the work. Technological factors:-There are various technological factors which affects individual behaviour in the firm. If proper research and development is not there in Captify then employees with not come up with new ideas and will not result in efficient production. Different technologies help the employees to work more effectively as it help in reducing the affords as well as time (Iles, 2017). Employees show positive attitude if organisation is doing proper research and development within the organisation and it also boost up the employees as they learn new things which also help them to grow there field of work. 8
LO2 P3. Evaluate measures to minimize the negative impacts of change. Forcefieldanalysesisthemodelthathelpsinmanagingchangesinorganisation significantly. Each company has to make changes in its strategies or operational process due to issues in existing process. Captify'Checkout.com Driving forceCaptify'hasmade technological changes in the firm that major factor that haveforcedthefirmto make changes in the entity is wants of consumers, now consumerswantquick payment hence it is essential toimplementnew techniques so that enterprise candealwithconsumers properly. Improvedspeedof productionwasanother reason that has forced the Captify'tomake technologicalchangesin business unit. Maindrivingforceof makingtechnological changes in Checkout.com is raisingvolumeofoutput. Company has to deal with mass audience hence it was difficulttousemanual paymentsystem.Useof latestgatewayshas improvedpaymentsystem which has forced the firm to make changes modifications in the company. Restraining forcesEmployees resistance is the majorrestrainingforcein Captify, as people have no knowledgeaboutnew techniques hence they have fear of losing their job due to which their resistance is Newtechniquescan enhancedisruptionat workplacebecause Checkout.com has to update new techniques and have to give training to staff which disturbexistingoperations 9
increasing. Cost is another restraining force, as new technological upgradationhasincreased operational cost which was negative impact on business. henceitistherestraining force of change. There are many negative impact in change process which can affect the organizational behaviour and if it is not handled properly, it will annoy employees and make them feel uncomfortable. If the change system will affect the employee's morale then it will affect the overall productivity and work quality within the organization and will be difficult to retain the best people (Laine and Mäkinen, 2018). Therefore, it is necessary to keep the employees on first priority before implementing the change process, here are some ways to minimize the negative impacts that on employees which is an internal driver that can affect the change management process. Leadership –Most of the organization gives this process to the consultants or human resource specialists which can improve the management team by hiring good leaders and managers which can maintain the process in a more accurate and effective way and if the employees don't understand the company's culture then the negativity will be there from the beginning (Negative Effects of Change Management,2018). Therefore, the manager's ability and strengths can help in change process as it will motivate their employees and feel them recognized by allowing them to participate in the decision-making process and with good leadership skills they can maintain and balance the discussions through the process. Employee engagement –The employees must be involved in every part of the strategies by developing good communication strategy. The employees must have given complete details about the change management process and how it is best for the development of organization so the changes which are going to be done must communicate effectively withtheemployeesandnotjustpassingtheinformationtothem.Eventhe communicating with uncertainty can cause doubt in the mind of employees and make 10
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them feel devastated by not being the part of the mission and vision of the organization. With the use of democratic leadership style, the employees will free to share their ideas and opinions with the higher authority and leader will also allow them to participate in the decision-making process. For example, the company can use communication tools if the organization structure is hierarchical which will help the management in informing the workforce quickly such as DeskAlerts which will directly notify the employees desktops. And it is an effective way to communicate to the employees than Email. Technological factor –As the era of digital technology in business has started and most of the business started to adopt new technologies in order to minimize the manpower. The small-medium sized company like Captify wants to change its technological system to rapidly increase the productivity can have the negative impacts on organizational behaviour, as the employees have to learn the new technology in order to remain in the organization and increase the employee turnover rate within the organization (Espedal, 2017). Captify can adopt several measures to minimize the negative impact by providing proper training and development session to their employees so that they can upgrade their skills and abilities which will give them opportunity to improve their work quality and productivity. With the improvement in skills and abilities, the employees will feel motivated in their work and will not be afraid of change in terms of technology.. LO3 P4Explain barriers for change and its influence on leadership decision-making It is necessary to conduct top-down analysis of the organization in order to find out potential barriers as the barriers are the reason which affect the organization production rate and also create gap between the practices of change management system. Once the barriers get solved , then it will be easy to implement the change within the organization. The following are the barrier which will occur during the implementation of change management system:- Organizational complexity It is necessary to conduct top-down analysis of the organization in order to find out potential barriers as the barriers are the reason which affect the organization production rate and 11
also create gap between the practices of change management system. Once the barriers get solved , then it will be easy to implement the change within the organization. Lack of Employee Involvement – It is one of the main barrier in implementing the change management as employees are always afraid of change unless or until they are the part of change, the employees who are most trusted among the organization will also resist the change. Verdant Leisure must involved their employees in change management system as most of the organization does not involve their employees in change process which causes failure in implementing the change. This creates the unknown fear in the minds of employees and also makes it difficult to adopt new culture as they are lack of desire in embracing it. The efforts of the company to implement change can only be succeeded when they involve the employees in change process which will ensure the employees that the change is good for the organization and make them feel recognized by listening to their opinions. Leadership decision making get influence as leaders work to make the employee engaged by setting realistic goals for them and tracking their productivirty, Leaders also schedule team building activities and keep lines of communication. They recognise their employees work and foster meaningful relationship. Cultural barriers – Implementing change in the diverse workforce can emerge cultural barriers, Verdant Leisure wants to grow its business and is recruiting people from all around the globe, and most of the people from different regions will not agree to the change process which will affect the organization to adopt the change management system. Leaders decision get influence in making the employees friendly the change by motivating them and making them trained so that it become easy for them to understand and implement the change in workplace. Organization complexity – When the organization starts to develop and implement change process in a complex way which includes complex approaches, products and the systems which makes it difficult for the members of the organization to understand. Verdant Leisuremust break this barrier by adopting the correct and skillful approach which will tackle the growth of the organization and its complexity. Leadership decison making get influence in adopting the corrective measures or approaches taht are beneficial to both the company and employees as it become tough for the employees to work in complex structure. LO4 Enclosed in ppt. CONCLUSION From the above study it has been concluded that Captify and Checkout.com that are UK based firms have faced various operational and strategic changes which result out in there growth. These changes brought positive results for the firm and helped out the firm to grow in right direction. Further it includes how these changes helped out the companies to compete in 12
market and make there position on top ranked companies. The report also concludes about various external and internal drivers which results in changing behavior of individuals and how they affect leadership and team of the Captify. These factors also affect negatively so the report also concludes about the measures taken by Captify to minimize the negative impact of change on there organizational behavior. These measures help out the company to come up with different solutions so bring new scope for the business. Report also differentiated barriers for change and how it influenced the leadership decision making of Captify. For the same different leadership approaches have been applied so that Captify can deal with these changes. 13
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