Understanding and Leading Change

This report examines the impact of change on organizational strategy and operations, using AEGON as a case study. It analyzes internal and external drivers of change, barriers to leadership decision-making, and different leadership approaches and models of change management. The report also includes a force field analysis to identify driving and resisting forces within the organization.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Examining the comparison of ways where there has been an impact of change on
organization strategy and operations...........................................................................................1
M1 several mechanism for maintaining the employment relations ............................................3
TASK 2............................................................................................................................................3
P2. Internal and external driver for change..................................................................................3
P3. Examining the measures that can be used to reduce the negative impacts of change...........5
M2. Appropriate theory and model to critically evaluate organizational response.....................7
TASK 3............................................................................................................................................7
P4 Explain different barriers who influence the leadership decision making in organisational
context..........................................................................................................................................7
M3 Use force field analysis to analyse the driving and resisting forces and how it influence the
decision making...........................................................................................................................8
D2 Critically evaluate the force field analysis.............................................................................9
P5 Different leadership style........................................................................................................9
M4 Evaluate the leadership approaches.....................................................................................10
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management...............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
In present era, change management is consider to be a collective term for all those
methods that are prepared to manage and control team performance, working during a period of
time (Kotter, 2012). With the changing needs and demand of customers, organizations need to
adapt these changes in order to sustain in this competitive market. To understand the leading
change AEGON is selected. Respective company provide insurances, investment and pension
facilities to customer of UK.
In the project report, changes that impact the performance, influence the organisational
behaviour of company is discussed. The modification barriers develop effect in the decision
making of manager is also discussed in this project. Apart this different leadership methods are
implement to cop up with alteration, that are being explained in this project report.
TASK 1
P1. Examining the comparison of ways where there has been an impact of change on
organization strategy and operations.
The organizations requires to develop and enhance relevant changes within the
organisational working and it's structure as it crucial for facing the current as well as the future
competition and also for diversifying or entering to new market trends or technologies. Some
events like merger, restructuring, amalgamation, technological advancements, process
enhancements, changing customer demand and new product lines are familiar or prevailing
changes in current business scenario. While happening of such events it is essential to make
some changes organisational working styles, its member's working style and manager role as a
leader also in adjusting staff member according to the implemented changes within the
organisations like AEGON, this organisation recently also implement some changes as
accordance with the business environment as well as business organisational structural
requirements. The AEGON is a developing organisation not fully developed, the reason behind
this, is unawareness of general public about organisation (Salmela, Eriksson and Fagerström,
2012). As due to organisation had operated under several of brand names so it seems critical for
the customers to recognize or to get familiar with the brand. So for the betterment of the
situation of the organization some changes are made in context of strategies of the entity. A
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comparison between two selected organisations that are AEGON and AVIVA, is also described
below.
Both the selected organizations deals in same kind of business stream and for same goals
and achievements. But both organizations adapts and follow different strategies with an aim to
attract more and more customers. The changes management has huge impact on strategy and
operation of both companies.
Drivers of change
The changes happen in a business entity because of several reasons. There are different
drivers of changes such as technology, customers, government, capabilities, resources, invention,
dissatisfaction and desires. These are drivers of change which can have major impact on
strategies followed by AEGON.
Business Strategy:
The business strategy is relatively associated with business and has direct impact over its
customers. But it is greatly influenced by change management of business entity. It pertain the
factors like which customer segment would be targeted and which geographic area will be cover.
Change have direct impact on all this factors as AEGON is now come up with new brand name
so organization have to make their strategy accordingly (Nelson, 2012).
Strategy used by AVIVA
Operational Strategy:
Operational strategy mainly used by AVIVA to target more customers and expand its
market share. it is relatively associated with resources of business entity whether its financial or
non-financial. it basically focuses over requirement of abilities for enhancement and acquirement
of new or innovated technology. For example, organization prepare plans to acquiring new and
advanced technologies but because of changes, now they begin to focusing more and more over
their processes instead of adapting new technology. So it has marked an impact over planning of
organisation.
Besides this, this change influence the operations of the organisations such as, sales and
marketing of organisation. As AEGON develop a plan for promotion and marketing of their
products but, due to change they will have to adapt new brand name, while advertising for
creation of awareness between the customers. This is how change leaves an impact over the
operations as well as different strategies of organisation.
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AEGON has released a first Global AEGON awards which is particularly beneficial in
celebrating all accomplishments and sharing excellence with the overall participation from
almost 20 countries units and other 90 applications. Best engagement, empower initiative and
customer centric team. They used to measure the requirement that can follow up on the results of
the research outcomes.
M1 several mechanism for maintaining the employment relations
It's truly important that the manager must maintain healthy relationship between
employees as well as between manager and subordinates. The healthy employees’ relations are
essential for effective team work as well as for good productivity and maximising profits. The
healthy bonding between employees’ depicts good relations which is beneficiary for both parties
of organisation that are employees and organization (Pasmore, 2015).Benn, Edwards, M. and
Williams, 2014). A healthy employee relationships defines that employees needed to feel and
think positively about their identity. There are some ways which can be used by AEGON for
maintaining faithful relationship to its employees. These are as follows:
 Focuses over the effectiveness of leadership in promoting more advanced innovations,
accountability and reliable customer centric.
 Attracting and developing the able individuals for committing their general objectives
that are planned by the organization during the period of time.
Along with the growth and increase in digital abilities so that chances of growth can be
increases up to next promoted level
TASK 2
P2. Internal and external driver for change.
In present scenario, it is observed that changes are taking places in each segments that
have positive as well as negative impact on the performance of am organisation. Management
use to make planned changes in ongoing policies and strategies to bring innovation and
accomplish the competitive advantages. It is observed that sudden or planned changes directly
also effect the leader and manager decision. Globalization and continuous innovation lead to
some drivers of changes that are discussed below for AEGON limited:
Internal drivers:
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All those drivers which are related to with the internal components of an business
organisation are known as internal drivers. Changes in these factors effect the team performance,
leadership styles etc. Some of the internal factors are discussed below:
Capabilities:
Skills, ability and capacity of an organization and its employees are consider to be
capabilities. Thus it is consider to be a major driver of change within an organisation. In
AEGON the employees a are lacking as its capabilities that are the main reason for the reduction
in performance. Thus manager use to improve the capabilities by brining changes in their
working manner that help to improve the performance of employees which support to meet
customer requirement.
Resources:
Company use to maintain sufficient resources that help them to run business operation
within an organisation. An organization must have adequate resources for producing and
delivering best goods to customer. Resources are can be in monetary form or non monetary that
important part of company. As AEGON is lacking with their monetary resources so their leader
and manager needs take effective decision and bring changes in policies so that profit can be
increased.
Innovation:
Innovation is consider to be one of the important internal factor as continuous innovation
in policies and system of AEGON can improve the performance. Such as manager of respective
company bring changes innovation in insurance polices like adding benefits of accidental cover,
car insurance cover etc. That makes customer satisfied so they purchase more insurance.
External drivers:
All those factors that are related to the external components of an organisation that can
also effect the decision of management (Wojcik and Buchholz, 2014). Some of the external
factors to AEGON are discussed below:
Customers:
Customer are known as the backbone of company that can effect the overall performance
of company. AEGON can increase customer base by bringing changes in policies such as by
selling share in market or providing services to customer at reasonable price that help to attract
large number of consumer.
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Government:
Government have direct affects on the plan, policies and regulations of an organisation.
For instance, if authorities of nations makes modification in policy those are related to insurance
schemes. Thus management of AEGON needs to bring change in policy and make sure that they
are according to the set government rules and regulations.
Competitors:
Rival are those that modify the business concern to take innovation within their systems.
It is observed that challenger can change the execution of worker and performance of firm. As
they come with new good and services that may pull more customers in short period. Therefore
manager of AEGON make sure that they keep on modifying their services to gain the
competitive advantages.
P3. Examining the measures that can be used to reduce the negative impacts of change
Covered in PPT.
M2. Appropriate theory and model to critically evaluate organizational response
The change is important process which needs to be adopted by every organization in
order to be sustain in competitive market. There are different models of change which is being
used by the AEGON. These are discussed below:
John Kotter’s, Process for leading change
 Make a sense of urgency
 Build a guiding coalition
 Form a strategic vision and initiatives
 Enlist a volunteer army
 Enable action by removing barrier
 Generate short term wins
 Sustain acceleration
 Institute change
There are different change driver like technology, customers, investors, desires and they
can have positive or adverse impact on the organization.
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TASK 3
P4 Explain different barriers who influence the leadership decision making in organisational
context
In the organisation, various barrier influence the AEGON company such as individual,
organisational and other factors. Such as force field analysis, self efficacy perception, situational
resistance and Schein's organisational cultural model.
 Force field analysis: - This analysis developed by Kurt Lewin for use in decision making
such as planing and implementing the change in the programs. It is an powerful analysis
used by the organisation for the identification of different sources and strength of the
company (Cummings and Worley, 2014). This analysis is best for the small group of
people so every one can see the changes. Analysis start with everyone agree on some
changes which is already discussed. It is in written form which include the goals and
objective of the company. Those forces are in support written in left side column and
those are not that is listen in right side column. For example: - AEGON buy new
machinery so these factors are in favour such as customer demand, need to increase &
improve production and maintain the cost. Environmental impact of new machinery, high
cost etc. are the barriers for AEGON company.
 Self efficacy perception: - It is an individual belief on her/ his capacity and capability of
work examples of basic assumptions in organizational culture. In the AEGON
organisation, people need to be self efficient because it matters a lot. For example: - if
worker think that they are not capable for doing any work, so it influence the decision
making process and affect the organisation. Person should be motivated and have ability
to control their behaviour & social environment.
 Situational resistance: - In the organisation, always create different situation which
affect the decision making process of leader. It is depend on the basis of different
challenges faced by the manager. Manager of AEGON company need to build those
strategies which can be adjusted according to situation. For example: - manager prepare
budget for the next year according to current market analysis. But after few days price of
material was increased so manager build strategies to prevent from this situation.
 Schein's organisational cultural model: - Organisational cultural model of Schein's
define some points which show the changes in the AEGON company and it is also known
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by Onion model. Such as Artefacts and symbols which include the visible elements like
logo, structure, architecture and corporate clothing. It is not only for internal users it is
also for external parties. Adopt values include the rule and standards of AEGON which
shows the objective, strategies and goals of the organisation. Last one is basic underlying
assumption which define the organisational culture, behaviour and experience. It is very
difficult to anticipate any assumption (Kariv, 2012). For example: - AEGON company
follow this model or work on this assumption which include these layers of model.
Assumption done on the basis of observation and the involvement of others. It required
leader who identify the behaviour and values which address the internal as well as
external challenges.
M3 Use force field analysis to analyse the driving and resisting forces and how it influence the
decision making
Force field analysis identify those factors which are in favour or not and the changes are
hardly accepted by the people. This analysis shows those changes which affect the decision
making process of the organisation. Driving and resisting forces accept the changes and
encourage them in a positive manner. This analysis also contributed in the internal
communication. For example: - Process of change include the various elements such as describe
the changes in proposal, identify the force of change which is in favour. Also identify those
changes which are not in favour and than assign the score according to factor influence. Last step
is to analyse and apply these changes in the AEGON organisation.
D2 Critically evaluate the force field analysis
It is a most usable analysis of the organisation which help the AEGON company to
understand is process of changes. This analysis show the unbalance between driving forces such
as market changes and technology. Restraining forces such as having fear of failure at individual
level as well as organisational level. These analysis help the AEGON to meet it's objective,
vision and goals. Firstly company need to unfreeze the driving and restraining forces. Secondly
compare the factors and than lastly analyse it accept or reject. It is totally depend upon the
organisational objective to accept or not.
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P5 Different leadership style
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M4 Evaluate the leadership approaches
There are various leadership style followed by the AEGON company which provide them
better effectiveness of work. According to above discussion situational and transfection
leadership approach is best for the chosen company. Because situational approach provide better
efficiency of work. Leader make employee flexible and adaptable according to situation. They
have capacity to handle pressure in high work load situation. Transactional approach motivate
employees to work more than their capacity which increase the productivity of AEGON
company. This approach clearly define the goals and objective which is fulfil by the employees
with full of efficiency & effectiveness. This is the highest motivating theory of leadership
because it includes the reward and other monetary benefits.
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management
Leadership is a different quality which is persuade by another leaders. Every leader have
different trait which attract the other. Every person use different leadership style to work in the
organisation. Future leader have opportunity to learn from past leaders and know the merits and
demerits of leadership styles. Leaders are those who influence the most to the people in terms of
motivation and encourage them for better work. Change management model help the
organisation to accept the changes which is required or necessary of the AEGON company.
Firstly identify the need of changes and the factors who influence the most and accept or not is
totally depend on the necessity of change. These leadership approaches have positive impact on
AEGON organisation. Models of change management and leadership style provide better
effectiveness to the company.
CONCLUSION
From the above report it has been concluded that changes have positive and negative
impact on the performance of an organisation. There are various types of drives of changes such
as internal and external that impact can become hinder in achievement of goals and objective.
Manager of companies need to properly assess the negative changes in proper manner so that
company can attain the market share and increase profitability. Leader applies various kind of
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leadership styles to deal with change and improve the quality of employees and business
operation.
REFERENCES
Books and Journal
Kotter, J. P., 2012. Leading change. Harvard business press.
Salmela, S., Eriksson, K. and Fagerström, L., 2012. Leading change: a three‐dimensional model
of nurse leaders’ main tasks and roles during a change process. Journal of advanced
nursing. 68(2). pp.423-433.
Nelson, A., 2012. Vital voices: the power of women leading change around the world. John
Wiley & Sons.
Pasmore, B., 2015. Leading continuous change: Navigating churn in the real world. Berrett-
Koehler Publishers.
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Wojcik, C. J. and Buchholz, J. H., 2014. Vorticity transport in the leading-edge vortex on a
rotating blade. Journal of Fluid Mechanics. 743. pp.249-261.
Blanchard, K., 2018. Leading at a higher level: Blanchard on leadership and creating high
performing organizations. FT Press.
Boone, J., 2015. Leading learning organizations through transformational change: Making the
case for blended learning. International Journal of Educational Management, 29(3),
pp.275-283.
Cummings, T. G. and Worley, C. G., 2014. Organization development and change. Cengage
learning.
Kariv, D., 2012. “Off stage-on stage”: men and women entrepreneurs leading change and
business growth. Journal of enterprising communities: People and places in the global
economy. 6(2). pp.169-184.
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