Understanding and Leading Change

This report examines the concept of change management within organizations, focusing on the case study of AEGON, a leading life insurance and pension company in the UK. It analyzes key drivers of change, both internal and external, and their impact on the company's strategy and operations. The report also delves into various leadership approaches and models, including transformational leadership, McKinsey's 7S Model, and Force Field Analysis, to evaluate their effectiveness in managing change and minimizing negative impacts on organizational behavior.

UNDERSTANDING AND
LEADING CHANGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ACTIVITY 1 ...................................................................................................................................1
P1 Drivers of change and the impact of change on the strategy and operations of organisation1
ACTIVITY 2....................................................................................................................................4
P2 Application of theories and models to evaluate effect of change drivers on organization's
leadership, teams and individual behavior.............................................................................4
P3 Evaluate and explain the measures to minimize negative impacts of change on
organizational behavior..........................................................................................................6
ACTIVITY 3....................................................................................................................................8
P4 Critically evaluate the influence barriers to change leadership decision-making by applying
the appropriate models and frameworks such as force field analysis....................................8
ACTIVITY 4....................................................................................................................................9
P5 Apply different leadership approaches that can deliver change effectively by applying the
appropriate models and frameworks......................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Change in organization is a part of development and growth. It may thrive the profit rate
of organizations or reduce the employees' engagement or level of productivity due to ineffective
leadership (Hayes, J., 2018). The study of Understanding and leading change will cover the
mentioned activities in the context of AEGON established in 1983. It is the largest life insurance
and pension company of UK with 29000 employees till now.
The report will cover the explanation regarding some basic drivers of change and its
impact on operations and strategies of company. It will include basic theories and models to
evaluate the effect of change drivers on organization's workforce. Along with it, the description
to various models and approaches to leadership will be included. The negative impact of change
management in organization will be explained and suitable measures to minimize it will also be
drawn. It has also evaluated the decision making of leadership
ACTIVITY 1
P1 Drivers of change and the impact of change on the strategy and operations of organisation
Drivers for change in any organization is basically due to any governmental implications
or due to restructuring certain internal working module of the organization. Basic change drivers
within any organization can be broadly classified as- Internal and External.
Internal factors are directly connected to the capabilities of employees, availability of
resources and strategies by key decision makers of the organization. Companies need to have
strong internal environment to cope up the change management. The employees need to be
highly adaptive by nature (Kroos, Verbeeten and Schabus, 2018). As per its internal drivers of
AEGON are concerned, it has effective internal environment related to forecasting procedures.
The leaders as well as task force are competitive enough to build and implement sustainable
change plan to achieve recognition among customers and in market as well.
On the contrary, external factors are dependent on customers needs, their behavior,
advanced technology, nature of competitors and certain government implications. The drivers for
change in any organization like AEGON life insurance company highly depends on external
factors that are considerable constraints to business activities and always act as barrier for
organizations. For instance, the main external factor of change in AEGON is the imposition of
price controls by government which influenced its growth rate and profitability.
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Negative impact of change- The managers of AEGON faced with significant amount of factors
that are generally beyond of the control of the company. Henceforth, forces that drives the
changes affects the working of enterprise.
Impact of change on strategy and operations:
The overall functions of an organization vary with the change management. Variations in
organizational structure may fluctuate the reporting or authoritative structure of companies
(Zembylas and Iasonos, 2010). Similarly, the change in advisory or key decision committees of
organization influence the communication and relations within the employees and executives of
organizations.
For AEGON, implementing change regarding the development of its branding strategies
with compare to Scottish Equitable was difficult. The company changed its procedures and
policies by applying long term saving plans and modifying its existing products and services to
receive brand recognition. With its branding strategies, the operations related to its production
and marketing team were also adjusted.
Another impact of change is highly visible on the training functions that are imparted and
managed by HR team and leaders of organizations. For proper execution of change management
plan, it is necessary to provide efficient training to workforce for better performance (Petrou,
Demerouti and Schaufeli, 2018). AEGON underwent for sufficient training to its employees
related to workplace culture, new plans, change strategies and different brand revitalization
policies.
The organizations need to strengthen their stock management and budgetary to invest
with future instances. AEGON with the appointment of new CEO performed different analysis
related to defense its business and draw a long term life insurance plan to establish strong
customers' relations and connectivity.
Compere the different organization
Comparison AEGON Mass mutual
HR The HR department of Aegon
mainly concentrate on
providing the training facilities
to the employees in order to
Mass mutual is mainly
concentrate on recruitment
techniques that helps to
organization to identify the
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enhance the motivation among
the employees. Thus, the HR
department effectively manage
the talent by implementing the
development strategies in the
business.
right person for right job.
Production The production activity of
organization is that. They
focus on company process
like firm changed its
procedures and policies by
applying long term saving
plans and modifying its
existing products and services
to receive brand recognition.
Mass mutual is focus on
delivering the right
information to the consumer
related to the financial
services.
Technologies Aegon provide their financial
services via using the new
technologies such as online
life insurance, apps/mobile
solutions and financial
dashboards.
Mass mutual also use the
different online and offline
technologies to deceive the
best financial service to the
customer
Marketing strategies Marketing strategies is that
firm can target the people on
the bases on segmentation so
firm can use the STP analysis
to identify the target market.
Mass mutual use the branding
strategies and promotional
strategies to enhance the
number of customer.
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ACTIVITY 2
P2 Application of theories and models to evaluate effect of change drivers on organization's
leadership, teams and individual behavior
Transformation leadership model
According to Zembylas and Iasonos (2010), it is an effective approach to lead change in
any working establishment. It is highly supportive and driven by effective leaders within
organizations who have productive functions to perform required changes within the specific
pattern of company's team or structure. Included company AEGON consists of effective leaders
who adopts transformation leadership approach to manage the change within their company.
This style of AEGON leadership provided adequate support to employees and management of
various external and internal factors of change.
As per the view of Hoch and et.al., (2018), internal change drivers highly depends on
perception, resistance and attitude of employees towards new alterations in working pattern.
Some employees are dissatisfied with introduced variations within their company which affect
their productivity and increase absenteeism. AEGON's major concern for its internal
environment is to deliver sufficient training and awareness among employees regarding new
strategies that are going to be addressed within working culture.
As per the view Hayes (2018), of external drivers of change specially government or
legal impositions are highly uncontrollable and continues to hinder the functioning of
organizations. For AEGON, external driver for change is the government implications regarding
cost control which is effectively managed by the leaders and team of the organizations. Its
systematic approach of leadership style and high workforce engagement resulted in great thrive
to the success of the company.
McKinsey's 7S Model:
According to Ravanfar (2015), Structure, System, Strategy, Style, Staff, Skills and
Shared Values are the seven S, the basic elements on which the change management depends. It
focuses on the all the elements of organization for effective management of change.
AEGON has laid emphasis on McKinney's model to evaluate each and every aspect of its
working environment. For implementing required changes, the company focused on its
organizational structure, Leadership Style, change strategies, training to working staff and shared
values to maintain effective culture within system.
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Based on the identified changes that AEGON the leaders need to change and adopt
different leadership strategies, they underwent for effective situational leadership style to
implement sudden changes. Apart from this, the leaders were highly affected by the existing
reputation of connected Scottish Equitable company that was dominating its market reputation.
According to Petrou, Demerouti and Schaufeli (2018), team or workforce are majorly
affected due to change management. They have to perform their best in the newly introduced
atmosphere and culture. Any change within regular working system of organizations affect their
level of comfort like at AEGON, the employees were under pressure to deliver high performance
during such an advanced change in whole branding strategies. Production team were extremely
concerned about strong competitive marketplace.
Individuals in organization during change implementation may get demotivated or suffer
different workplace pressures. To reduces such instances, leaders play vital role in motivating
and counseling the employees. Like at AEGON, individual were concerned of their own
performances and fear of adapting changes in organization.
Internal and external drivers of change- Changes affect the leader team and individual behaviur
working of the enterprise at the huge context. Hence, it can be defined as-
Internal factor-
 Leadership- The changes within the enterprise mainly affects the working of the leaders.
Thus, they need to make changes in the policies, culture and working practices.
 Communication- In order to get successful, it is crucial to have robust communication
within the employees of the enterprise. Therefore, enterprise with communication
deficiencies creates rigid structure.
 Learning and training - It is one of the effective fundamental activity which affects
leader, employees and team behavior. Therefore, technical advancement faster rates of
changes and leads to encourage innovation so that working practices can be conducted
systematically. Therefore, new technologies is reduce the production because people are
not understand that how to use the new equipment. So, it influence the decisions of leader
that which types of tanning firm can provide to the team members and employees
External factors- The components as political, economical, social and technological impacts the
working of enterprise. These are beyond the control of the enterprise. Therefore, it all have
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significant effect over current operations, long term sustainability and growth, influence the
leaders and managers for decision making. Therefore, external forces creates the negative
impact on the decision making power of leaders and managers.
P3 Evaluate and explain the measures to minimize negative impacts of change on organizational
behavior.
The negative impacts of any change in organization can be visible in the performance of
employees, their productivity, employees engagement and relations as well. These undesirable
impact of change management affects whole working team in terms of their attitude, perceptions
and execution of plan (Vakola and Petrou, 2018). Negative influence of change in organizational
behaviour can be directly minimized by some measures like behavioural, cultural, skills
development training to employees and contingencies forecasting.
Conducting assessment: Assessing the psychology, level of resistance among
employees and their readiness may provide sufficient information to trainees for building
respective plan for training program(Virtanen and Stenvall, 2018). AEGON conduct strong
analysis of its employees needs and their reactions regarding change which provided an idea to
leaders related to reduce
Introduction to challenges: It is the most fundamental action that must be taken by
leaders for managing unfavourable impact of change on organizational behavior. The executives
must introduce the level of difficulty and challenges to their employees which may influence
their performance (Singla, Ahuja and Sethi, 2018). The team must be fully aware of certain
undesirable conditions like unavailability of resources, workload, changes in existing structure
and other related issues. Before implementing change strategies, employees of AEGON were
fully aware of the challenges that were going to be introduced. The leaders and executives were
making the decisions and heading the change plan by the collaboration of its task force.
Contingencies forecasting: Organizations may undergo for different prior training and
assessments related to the analysis of possible contingencies that may occur within the behavior
of workforce (Holmes, 2017). These behavioral contingencies include some conflicts,
disagreements and resistance among the employees. AEGON conducted some assessments
related to behavioral contingencies but did not lay sufficient emphasis on the behavioral training
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of employees. Though, the company's culture was well built to maintain friendly culture during
change implementation.
Apart from this, companies or industries may adopt “KOTTER'S MODEL OF
CHANGE” to regulate and minimize the negative impacts of change on organizational behavior
(Holmes, 2017). This model will deliver specific steps of planning and evaluate certain elements
related to employees behavior and training needs.
AEGON utilized the included steps of the model to efficiently to minimize and reduce
negative impact of change. It prepared its employees for change by creating a climate for change
so that they could prepare themselves for any sudden amendments in working culture of
company.
All the mentioned measures effectively reduces the undesirable impact of change within
the organizational behavioral. These measures and models reduces the chances of ineffective
communication styles. It defines the strategies for developing powerful coalition to implement
the designed plan of change effectively. AEGON has established different phases for discovering
its gaps with the involvement of its new CEO.
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Illustration 1: Kotter's change model
(Source: Kotters 8 step change model, 2015)

ACTIVITY 3
P4 Critically evaluate the influence barriers to change leadership decision-making by applying
the appropriate models and frameworks such as force field analysis.
As per the view of Hornstein (2015), for implementing any changes within organizational
working culture or certain policies and strategies of company, assessment related to barriers of
change must be analyzed by the leaders and executives.
Barriers to changes:
Lack of resources: It is a major barrier to change for every organization. Unavailability
of resources such as manpower, technologies, budgetary etc. can be a considerable hurdle in the
implication of alterations in organizations (Virtanen and Stenvall 2018). This barrier affects the
decision making of leaders during change implementation. They need to undergo for different
cost cutting strategies, capital funding measures and relations with shareholders for the
accumulating sufficient capital and resources to overcome future issues. AEGON leaders
decisions were mainly focused on the analysis of different assessments to fulfill any of its
requirements in advance.
Employees resistance: It is internal barrier that need to assist by leaders and executives
to take measurable counseling and let them know about the importance of change for continuous
growth and development (Iqbal Anwar and Haider 2015). At AEGON, the employees were
having the least resistance to change this supports the further decisions making process of CEO.
Poor communications: This is the most considerable barrier that drastically affect the
decision-making of leaders regarding change management plan. Ineffective communications
within staff create high level of misconceptions and disturbances. There would be high amount
of confusions arises within the policies and protocols of the company (Amado and Amato, 2018).
AEGON adopts strong organizational communication among the employees. The company is not
restricted by the delivery of any kind of communication gaps within the employees and
executives.
AEGON effectively used the Force Field Analysis model to evaluate the restraining and
driving forces existing within its internal working culture. Such as, main driver of change for the
company was the governmental impositions for its price controls which imparted extra burden on
management and working force. The company became restricted and confined with the legal
statutory. Hence, the leadership decision making turned out to be specific and directed under the
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government impositions. Therefore, force field model provide adequate opinions of the
employees regarding the execution program also it derived the support from other resources that
could facilitate that change within the company.
According to, Hayes, (2018), Leadership decision can be facilitated by the application of
certain models and framework such as “Force Field Analysis” by Kurt Lewin. It emphasis on the
driving and restraining forces of change management. This analysis is dependent on the
readiness and reluctance of employees for change within organization. It drives its analysis for
different restrainers for change at workplace.
As per the view of Iqbal, Anwar and Haider (2015), Force field model delivers sufficient
ideologies and tactics to leaders and executives regarding employees management,
organizational structure, team building and various related activities. Apart from this, this
analysis delivered strategic information to its director regarding their discovery phase.
The applied and included model of have certain advantages and disadvantages as well.
Advantages:
 It provides sufficient data to executives regarding possible constraints that occur during
change.
 The diagram of force field model can be utilized as visual tool for great explanation to
team about the consequences, pros and cons of the change management plan. It can deliver sufficient information regarding the existing gaps within internal
environment of workplace for plan implementation.
Disadvantages:
 It is a critical method to execute and evaluate. It is time consuming procedure.
 It may arise conflicts within the team as the model tend to develop the group of supporter
and non-supporter related to strategies that are going to be implemented.
ACTIVITY 4
P5 Apply different leadership approaches that can deliver change effectively by applying the
appropriate models and frameworks.
As per the view of Holmes (2017), effective change management within every
organization depends upon the leadership style and approaches adopted by its executives,
directors and leaders. They can use different change models according to their leadership styles
for effective delivery of plan. Leadership approaches may varies with the attitude and behaviour
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of individual and organizations must select or hire the leaders or managers on the basis of their
personal traits and capabilities.
Charismatic Leadership approach:
According to Amado and Amato (2018), Charismatic leadership is the most desirable
style of leadership that require advanced efficacy and capabilities of leaders. They have effective
leadership qualities and skills of motivating workforce and increase their participation.
For instance, employees' reluctance in organization regarding change, it solely depends on the
behavior and attitude of leader how he manages the situation and make the resources available.
As per the view of Vakola and Petrou (2018), Kubler-Ross Five stage model can be
effectively used for analyzing the negative behavior of employees with respect to the change
which are being implemented by leaders. Charismatic leaders can efficiently manages the
behavior of employees related to change with the help of Kubler-Ross model. The leaders can
analyze and investigates the needs and attitude of workforce for change procedures.
According to Holmes (2017), Charismatic leaders are visionary, have high standards of
emotional intelligence and follows utmost high principles of leadership to manage the task force
and various business activities. Based on these qualities itself, Charismatic leaders can reduce the
level of denial, anger, depression among its employees and increase staff's participation, interest
and acceptance regarding the change management plan.
In the opinion of Vakola and Petrou (2018), organizations must have Charismatic leaders
to motivate the employees and provides all requirements to employees that are important for
change management processes. AEGON implemented its change strategies with the help of
certain models and did not require the application of mentioned model because the workforce
was ready and prepared to accept the changes. They were not reluctant to the change
management plan introduced by its directors.
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Autocratic Leadership approach:
As per the view of Kroos, Verbeeten and Schabus (2018), Autocratic leadership style is
extremely rigid and reactive by nature. It includes the least participation of employees on
decision making process. This leadership approach do not receive high acceptance from its
employees related to any of their decisions.
According to Iqbal, Anwar and Haider (2015), Autocratic leaders may posses certain
problems while implementing change management procedures as they are less involved and less
supportive by nature. Leaders may use ADKAR model which is based on specific steps that is
Awareness, Desire, Knowledge, Ability and Reinforcement to improve the efficiency of change
process. This model can be effectively used by autocratic leaders as it has specific steps to follow
which is rigid and confined. Autocratic leaders may effectively apply change by-
 Spreading awareness regarding plan
 Knowing the interest and desire of task force for the alterations in working system
 Delivering sufficient knowledge of the plan by the help of colleagues
 Investigating the abilities of work force to perform certain change responsibilities.
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Illustration 2: Kubler-Ross Model
(Source: How Change is Like Grief, 2012)

 Providing reinforcement to the workforce.
Hence, the autocratic, charismatic both leadership style has significant advantages and
disadvantages which may influence the effective delivery of change management within any
organization.
Advantages Disadvantages
Charismatic leadership
Have high quality to design
implement effective changes
within organization.
It has unclear chain of
command for employees.
Able to reduce the reluctance
within employees with ease.
Employees starts to show high
reliance on leader.
Autocratic leadership
Employees are supervised
closely for each of their
actions.
Do not show high level of
empathy and support to
employees.
It inhibits clear chain of
command.
Employees are not involved in
decision making process.
Situational leadership approach- This is one of the effective model that works as to enhance
the productivity within the enterprise. It is one of the adaptive leadership style. As per this
leadership style the most effective leaders are those who can adapt the style that is suitable on the
situation. Therefore, this theory also defined as Hersey Blanchard situational leadership theory,
and they have suggested four primary leadership styles as-
 Telling- In this, leaders defines others that what to do and how to do.
 Selling- Leader sell their ideas and message to get group members to buy the process.
 Participating- Leader to the enterprise offers less direction and allows member of group
to take more corrective actions.
 Delegating- Under this, group members makes the effective decision and takes the
responsibility for what is going on.
Kurt Lewin's change model- It is one practical model to understand the change within the
enterprise. Hence, it is composed of-
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 Unfreezing- At this stage, people realize that in entity something is going to change so
that they must have emotions, denial, uncertainty and doubt. At this stage, it is advisable
to customer to undertake constructive approach.
 Change stage- By acting vigorously and executing the change within the short time, the
employee can be aware about the changes very quickly.
 Refreezing moment- At this, it is advisable to male the proper arrangement of all over the
activities. Thus, the process of evaluation, monitor can be undertaken effective and
efficiently.
ADKAR model – Adkar model is great change management model that helps to identify the
requirements of change. Thus, this model will helps to identity the needs of change.
Awareness- This stage helps to identify the need of change.
Desire – support and make plan for the change
Knowledge – How to change
Ability- implement the plan for change
Reinforcement – To reevaluate the change
CONCLUSION
The above study has concluded that change is the elementary process of every industry or
company. Organizations need to pay adequate prior attention towards the capabilities and skills
of their employees before planning for any changes. The undertaken models of change has
described that leaders may adopt situational or transformation style to achieve the objectives of
change management plan. Furthermore, the report has also shown that McKinsey's 7S model has
been extremely productive for the execution of plan and the evaluation of overall elements
before introducing any change within the company.
The conclusion of the study included the fact that organizations like AEGON, has
efficient team of leaders who are capable to make decisions promptly depending on the
conditions and issues that arises. Furthermore, the report has suggested that Kubler's-Ross model
can contribute standardized information to leaders for reducing the reluctance of employees
regarding change plan. Along with it, it has also described that effectiveness of change
management plan highly depends upon the adoption of different leadership styles by executives
and directors of organization.
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REFERENCE
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Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee performance.
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<https://frontlinemanagementexperts.wordpress.com/2015/07/02/kotters-8-step-change-
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