Understanding and Leading Change

Understanding and
Leading Change
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Impact of change on organisation's strategy and operations..................................................3
M1 Different drivers of change and the type of organisational changes they have affected......5
TASK 2............................................................................................................................................5
P2 Internal and external drivers of change affecting leadership, team and individual
behaviours...................................................................................................................................5
P3 Measures which can be taken to minimise negative impact of change.................................7
M2 Evaluation of how organisations respond to change............................................................7
D1 Conclusions and recommendations with valid justifications................................................8
TASK 3............................................................................................................................................8
P4 Change barriers and their influence on decision-making of leaders......................................8
M3 Force field analysis...............................................................................................................9
D2 Critical evaluation of use of force field analysis.................................................................10
TASK 4..........................................................................................................................................11
P5 Leadership approaches to deal with change.........................................................................11
M4 Evaluation of the extent to which leadership approaches can deliver organisational
change.......................................................................................................................................12
D3 Critical evaluation of effectiveness of leadership approaches and models of change
management..............................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
To survive successfully in the dynamic contemporary markets it is important for
organisations to change their strategies, policies, technologies, structure and culture so that the
ever-changing consumer needs can be met. Change is important so that the motivation, work
performance and profits can increase while also cutting down costs so that overall productivity of
organisations can be enhanced. Thus the concept of understanding and leading change become
important for the managers so that they can have a foresight about what changes are required to
be implemented which can help the organisation to grow and expand in the market (Akpoviroro,
Kadiri and Owotutu, 2018). This report is based on Marks and Spencer Group plc and John
Lewis Partnership plc which are both British multinational companies headquartered in London
dealing in similar industries. M&S deals in high quality clothing, home products and food
products while John Lewis deals in clothing, jewellery, food products, financial services etc.
These companies are taken so as to understand how companies react to drivers of change which
impact their strategies and operations. This report also discusses about the impact of change on
individuals, teams and leadership along with the barriers of change. Different leadership
approaches to deal with change in an organisation will also be explained.
TASK 1
P1 Impact of change on organisation's strategy and operations
Strategies in an organisation are the set of plans, actions and structures which are
followed in a set manner so that the long-term goals of company can be achieved. These
strategies are formulated coinciding with vision and mission of company so that employees can
be motivated to work towards achieving them (Alavi and Gill, 2017). It is important that changes
in business environment are efficiently analysed before formulating strategies so that these
strategies can help it to grow and expand in the market. The impact of change on two
organisations is given below:
Basis H&M John Lewis partnership
Political
changes
Impact: The company might face losses
due to Brexit as the costs of products
being imported from EU might rise and
Impact: A no deal Brexit can
negatively impact company sales as
trade of company with EU will become
3

also the delay in transportation can also
impact on consumer satisfaction.
Strategic changes: The company can
deal with the negative impacts of Brexit
by adopting competitive pricing strategy,
use of new market tools and by lowering
the cost of fashionable clothes.
Operational changes: The company can
focus on developing new technology
transformation programme so that it can
become a digital first business and
enhance customer experience (Barbara
and et. al., 2017).
difficult along with the loss of customer
confidence in the brand. The prices of
company products may also rise which
will decrease its sales and further
impacts on company.
Strategic changes: The company can
deal with change through
differentiation and innovation so that
more customers can be attracted to
purchase its products in UK and
increase its sales and profits.
Operational changes: The company
can try to cut its operational costs so
that its profits can be maximised and
the changing political situation can be
efficiently dealt with.
Social
changes
Impact: The changing customer needs
and preferences has affected the
company sales as the customers tend to
get distributed among a variety of brands
that are available in market who offer
products at varied prices.
Strategic changes: The company can
become more digitally focused by
positioning its brand through its online
shopping sites and attracting customers
with regular offers and discounts
(Cummings, Bridgman and Brown,
2016).
Operational change: The company can
focus more on building strong customer
Impact: Due to changing fashion and
spending pattern of customers the sales
of company gets affected. Also the
inventory costs increase due to decrease
in sales of company products.
Strategic changes: The company can
bring innovation in its products so tat
the changing customer taste and needs
can be efficiently met. Also it can focus
on its online sales by introducing sales
and offers.
Operational change: The company
can sell its inventory products by
giving high discounts on them so that
the inventory cost of company can be
4

relations so that their loyal customer base
can increase. Also it can make the online
shopping apps user friendly with easy
return and payment policies.
reduced while maintaining its profits.
M1 Different drivers of change and the type of organisational changes they have affected
There are both internal and external drivers of change due to which organisations bring
changes in their strategies and processes so that they can gain a competitive advantage in the
market. In reference to M&S following drivers of change can affect the company:
Internal: These are the internal factors which can be managed and controlled by the
organisation by bringing small changes like structure, policies, employee motivation etc.
External: These are the external factors due to which organisations have to bring changes
in their policies and strategies like governmental policies, rivalry policies, evolving technology
etc.
Types of organisational changes: Remedial changes: These are the changes which are brought in M&S when the managers
identify a need to address some deficiencies in the company or improve the company
performance like financial distress, poor performance etc.
 Transformational changes: These are the changes which are brought in company so as
to change its existing policies due to the changing business environment. These are the
changes which are to be introduced organisation-wide so that a competitive advantage
can be gained in the market (Dick and et. al., 2018).
TASK 2
P2 Internal and external drivers of change affecting leadership, team and individual behaviours
There are various internal and external drivers of change which affect leadership,
individuals and team behaviour :
Internal drivers of change: Resources: The availability of resources such as funds, raw materials, employees etc. are
enough in companies like M&S and John Lewis the employees will be motivated to
perform their work in an efficient manner. The leaders will also lead their teams
efficiently so that team goals can be achieved and the resources are utilised in such a way
5

that wastage can be minimised and best results can be achieved (Estrada, Shunk and Ju,
2018). Financial management: It is important that the finances of company are efficiently
managed so that all the departments are encouraged to work in an efficient manner as
sufficient finances will be available in the company to perform functions. M&S and John
Lewis thus need to manage their finances so that economic stability of company can be
maintained. If these change then individuals, teams and leadership will also be impacted
and their trust in company will weaken. Employees: The employees of M&S and John Lewis determines the kind of leadership
they need to be managed so that targets are achieved on time. Employees are the most
important resource of company as they help company to sustain in the market and
generate high profits.
 Organisational culture: The culture of organisation determine job structure,
communication, motivation, leadership etc. Behaviour of individuals, teams and
leadership styles depend on organisational culture which also affect the level of their
performance (Hayes, 2018).
External drivers of change: Political: These are the rules and regulations of government of country which affect the
businesses and their strategies. M&S and John Lewis need to follow the rules of UK
government so that it can function legally. Behaviour of individuals, team and leadership
are also affected by political factors as they need to function in such a manner that cost of
company can reduced thereby reducing taxation. Economical: These are the factors like inflation rate, interest rates, purchasing power of
customers etc. With the change in economic factors sales of company fluctuates and also
affects the level of motivation of individuals, team and leadership along with customer
their efforts put in managing customer relations. Social: These factors are demography, sociocultural conditions, religion etc. of a society
which also creates impact on their standard of living. The sale of M&S and John Lewis
depends on the living standard of people who can afford high quality clothing. The
increased sales positively affect the motivation level of individuals, teams and leadership
of company (Jayatilleke and Lai, 2018).
6

 Technological: These factors relate to availability of highly advanced technology in
market along with the level of R&D that exists. This factor help M&S and John Lewis in
bringing innovation in their products so that their sales can be increased. Also the
individuals, teams and leadership will be motivated to think innovatively.
P3 Measures which can be taken to minimise negative impact of change
The measures which can be taken to minimise the negative impact of changes on
behaviour and performance of individuals, teams and leadership in M&S are as follows: Employee engagement: It is the extent to which employees feel passionate towards their
job and are committed for the company so that they put their best efforts in increasing
company profits. It is important that M&S focus on maintaining high employee
engagement so that they can be involved in decision-making so that they can be
motivated and satisfied with their job and implementation of change become easy. Effective communication: It is important to establish effective communication in the
company so that all the flow of information becomes smooth and easy and all the
employees can remain updated about any changes that are to take place in company. It
also help in minimising the negative impact of change by influencing workers efficiently
so that change can be accepted (Král and Králová, 2016).
 Learning culture: It is important that a learning culture is established in the company so
that employees can be encouraged to learn about new things and also come up with new
and innovative ideas so that company can grow successfully in market. It is important
that M&S promotes a learning culture which help in minimising the impact of change as
employees will always be encouraged to embrace change and learn something new.
M2 Evaluation of how organisations respond to change
The Bruke Litwin model of organisational change is all about defining and establishing a
cause and effect relationship and determines 12 elements due to which change can be brought in
company. This model ranks all the drivers of change in terms of their importance and was given
by George H. Litwin and W. Warner Burke in the year 1960. with the help of this model
managers of company can identify the most important factors which can affect the company and
can compel to bring changes so that sustainability of company in market can be maximised. The
organisational and environmental factors can also be assessed so that the impact of their change
on company can be analysed which will help in dealing with them in an efficient manner.
7

External factors play an important role in bringing changes in company as these factors cannot
be controlled or changed instead the company have to change their strategies so that it can
remain competitive in the market. In M&S the managers of company can use this model in order
to formulate effective strategies so that changing business environmental conditions do not create
negative impact on company (Lawrence, 2015).
D1 Conclusions and recommendations with valid justifications
The change impact analysis which was developed by Bohnner and Arnold helps in
identifying the potential consequences due to implementing change or in estimating
modifications that need to be made so that change can be successfully brought. There are various
drivers of change both internal and external which affects the company so that changes in their
strategies, structure and culture are made so that company can survive in the changing business
environment. It is important that changes are successfully implemented in the company so that
employees can be satisfied with their jobs and company can gain a competitive advantage in the
market. M&S can effectively implement change by following these recommendations:
 The company can increase employee engagement so that all the employees can be
involved in decision-making which will help company in bringing new and innovative
ideas. This will help the company in efficiently satisfying customers and increasing its
sales in changing business environment.
 The managers of company must manage change resistance so that employees can easily
accept change and can change their way of working which will be beneficial to both the
company and employees.
 Democratic leadership style can help the leaders in leading individuals and teams in an
efficient manner and include them in bringing change in the company (Lozano, Nummert
and Ceulemans, 2016).
TASK 3
P4 Change barriers and their influence on decision-making of leaders
While implementing change in company it is important that change barriers are
efficiently dealt with so that changes can be effectively implemented in the company. The
managers of company are responsible to identify the barriers of change so that they do not create
8

problems in change implementation. Following are some barriers of change which affect
decision-making of leaders: Lack of participation: It is important to involve the employees and increase their
participation while implementing change in the organisation as employees are the most
important elements in change implementation. It is important that they are satisfied with
the change that is to be implemented so that they can be assured that change will help
both the employees and company in a positive manner. This affects decision-making of
leaders as they have to involve all the employees and focus on participative leadership so
that more engagement of employees can take place (Maccoby, 2015). Ineffective communication: Communication can be a barrier if done in an ineffective
manner as this can affect employee motivation in accepting change. Effective
communication is important so that information can flow in the company and can reach
to all the employees updating them about the changes. It is important that managers of
M&S encourage effective communication so that change can be successfully
implemented. Organisational complexity: This includes complex processes, systems, structure etc.
which makes the implementation of change difficult. It is important that companies have
simple organisational structure so that all the people who are affected by change can be
effectively involved and the process becomes easier and less complicated. Unknown current state: It is important that the current position of company is analysed
and assessed so that it can be known that if change implementation will have positive
impact on company or not. Also it help in analysing the extent to which changes need to
be brought in company.
 Bad planning: It is important that feelings and emotions of employees are considered
while implementing change in the company so that change does not hurt their emotions
and they can be completely involved in the process (Raziq and Maulabakhsh, 2015).
M3 Force field analysis
The force field analysis was developed by Lewin in 1951 is widely used in managing
change as it provides an overview about the forces which help in bringing change and also the
forces which resist change. According to this model change can be brought in organisation where
there occurs an imbalance between the driving forces and restraining forces. It is important that
9

the managers of M&S identify all these factors so that the restraining forces can be minimised
while the driving forces can be enhanced so that an imbalance can be brought which will help in
implementation of change. This model is important for managers in making decisions and
formulating strategies so that change can be accepted by employees and they can work towards
change implementation in a positive manner. The driving forces are generally new personnel,
changing market conditions, advancement in technology etc. due to which companies have t
bring changes in their strategies so that company can efficiently function in the market. Resisting
forces on the other hand are employee resistance, fear of failure, organisational complex
structure etc. which restricts implementation of change in company. When there is an imbalance
in these factors then change can be successfully brought in the company.
Illustration 1: Force Field Analysis - Kurt Lewin. 2017
Source : Force Field Analysis - Kurt Lewin. 2017
D2 Critical evaluation of use of force field analysis
The force field analysis provides an important framework under which all the forces
which affect and restrict change can be identified which help the managers of company to
strategically plan and implement change in the company. A complete analysis of driving and
restricting forces needs to be done so that changing market environment does not negatively
affect the company. The managers need to involve employees in decision-making and change
10

implementation, form smooth channel for communication so that it can be made effective, adopt
democratic leadership style etc. so that change barriers can be reduced. Regular feedbacks from
the employees can also be collected so that their experience can be known while the process of
change management so that it can be improved in future.
TASK 4
P5 Leadership approaches to deal with change
There are many approaches which can be used by Marks & Spencer to deal with change
and to introduce innovation in organisation which are as follows:
Democratic Leadership: Democratic leadership is also known as Participative leadership
style, this is the most productive and successful leadership style. In democratic leadership style
all the team member are involved in decision making and problem solving process, this increases
flexibility in organisation. In this leadership style each team member is given space to share their
ideas with the team and to actively take part in process of decision making, this can enhance self
esteem of employees and they feel valued and it leads to adaptation of change by employees. In
this style a leader always create urge in team members to flourish themselves to achieve
organisational targets. By acquiring democratic style of leadership, Marks & Spencer can easily
deal with change since this style stimulates communication among team member and leader so
with an effective communication, innovation can be introduced as every mind is having an
unique and innovative idea and this style promotes flow of ideas (Schedlitzki and Edwards,
2017).
Situational leadership: Situational style of leadership can be acknowledged by the leader
who are consented to follow distinct leadership style for each different circumstances. As it is
different in every situation to acquire organisational need and customer needs, it is very flexible,
efficient and result oriented. It results in refining the management of change and identify team
requirement so as to maintain balance between organisation and employees. By adapting
Situational leadership style, Marks & Spencer can effectively deal with changes since it varies in
every situation this make this style flexible to early adaptation of change, so Marks & Spencer
can easily innovate their product and change strategies if any rival introduces any new product or
technologies.
11

M4 Evaluation of the extent to which leadership approaches can deliver organisational change.
Manager of Marks & Spencer carry out Lewin's change management approach, to
regulate change in a successful form and manager recognises changes which impacts the
practices of organisation and projects frameworks. This approach explains three factors i.e.
unfreezing, changes and refreezing, where unfreezing means to inculcate in the organisation the
early adaptation of change by splitting prevailing situation. Whereas change means to
communicate the acquired change to the employees and all workforce and lastly refreeze defines
implementation of change in organisation for effective results (Zand, 2015).
D3 Critical evaluation of effectiveness of leadership approaches and models of change
management.
It is examined that situational style of leadership is the most constructive technique to
execute change in Marks & Spencer since this style of leadership leads to the engagement of
employees in decision making process which creates cooperative atmosphere in the organisation
and enhance communication skills between employees and managers. As it maintains balance
between organisation and working employees this leads to greater productivity and innovation.
Further sometimes it affects organisation adversely, since situational style of leadership leads to
creation of chaos.
CONCLUSION
From the above report it can be concluded that change is an important concept which is to
be involved in all the organisations so that they can survive sustainably in the market and can
deal with changing customer needs and preferences. Change management is important so that a
competitive edge in market can be achieved by bringing new and innovative products or services
so as to satisfy customers. Implementation of change can have both positive and negative impact
on the employees of company which must be efficiently dealt by the managers through
appropriate models and theories. Leadership styles can also be changed so that change can be
effectively implemented and company can grow and expand in the market.
12

REFERENCES
Books and Journals
Akpoviroro, K. S., Kadiri, B. and Owotutu, S.O., 2018. Effect of participative leadership style on
employee’s productivity.
Alavi, S.B. and Gill, C., 2017. Leading change authentically: How authentic leaders influence
follower responses to complex change. Journal of Leadership & Organizational
Studies. 24(2). pp.157-171.
Barbara, C. and et. al., 2017. The european insurance industry: A PEST analysis. International
Journal of Financial Studies .5(2). p.14.
Cummings, S., Bridgman, T. and Brown, K. G., 2016. Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. Human relations. 69(1).
pp.33-60.
Dick, T. B. and et. al., 2018. Fundamentals of leading, tools for managing, and strategies for
sustaining change. American Journal of Health-System Pharmacy. 75(19). pp.1450-
1455.
Estrada, G., Shunk, D.L. and Ju, F., 2018. Systematic continuous improvement model for
variation management of key characteristics running with low capability. International
Journal of Production Research. 56(6). pp.2370-2387.
Hayes, J., 2018. The theory and practice of change management. Palgrave
Jayatilleke, S. and Lai, R., 2018. A systematic review of requirements change management.
Information and Software Technology. 93. pp.163-185.
Král, P. and Králová, V., 2016. Approaches to changing organizational structure: The effect of
drivers and communication. Journal of Business Research .69(11). pp.5169-5174.
Lawrence, P., 2015. Leading change–Insights into how leaders actually approach the challenge
of complexity. Journal of Change Management. 15(3). pp.231-252.
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between
sustainability reporting and organisational change management for sustainability.
Journal of cleaner production .125. pp.168-188.
Maccoby, M., 2015. Strategic intelligence: Conceptual tools for leading change. Oxford
University Press, USA.
Raziq, A. and Maulabakhsh, R., 2015. Impact of working environment on job satisfaction.
Procedia Economics and Finance .23. pp.717-725.
Schedlitzki, D. and Edwards, G., 2017. Studying leadership: Traditional and critical
approaches. Sage.
Zand, D.E., 2015. Force field analysis. Wiley Encyclopedia of Management, pp.1-2.
Online
Force Field Analysis - Kurt Lewin. 2017 .[Online] Available through:<https://www.change-
management-coach.com/force-field-analysis.html>
13