Importance of Leadership in Change Management

This assignment emphasizes the significance of leadership in managing change within businesses. It highlights the need for leaders to take feedback from employees, provide necessary skills, and frame policies accordingly. The document references various books and journals that discuss leading change in different sectors, including public administration, education, and healthcare.

UNDERSTANDING
AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparison between different organisational operational strategies after adopting changes
................................................................................................................................................1
P2 Measurement of internal and external drivers of change on leadership, individual and team
................................................................................................................................................3
M1...........................................................................................................................................5
M2...........................................................................................................................................5
D1...........................................................................................................................................5
P3. Evaluating the ways to minimize negative impacts of change on organisation...............6
TASK 2............................................................................................................................................7
P4 Barriers which effect the change and affect leadership decision making strategies.........7
M3...........................................................................................................................................8
D2...........................................................................................................................................8
P5 Application of suitable leadership style in organisational context....................................9
M4.........................................................................................................................................10
D3.........................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A business is said to be successful when manager applies various tools and techniques to
day to day operations and these methods ensure the success of organisation for longer duration of
time in market. Other than this scenario needs of dynamic nature must be fulfilled. Preferences,
tastes, desires, needs, wants and trends bring changes in corporation's daily activities. Any
association goes strong when it adopts flexibility in it because this brings easiness in change
adoption process. Selected enterprises for this assignment are Starbucks and Costa. Both
companies are multinational ventures that deal in coffee and beverages products at the global
level. This report lightens up several factors like effects of changes in corporation and its policies
(Bin Taher, Krotovand Silva, 2015). Apart from this, there are other points that are various
strategies for change adoption, minimization of negative effect of modification, change drivers
etc. will be discussed in this report ahead and these aspects are what are the drivers that bring
changes in organisation which has direct impact on day to day activities. These drivers affect
working style of managers and their team members in hitting target.
TASK 1
P1. Comparison between different organisational operational strategies after adopting changes
Business exists in a dynamic environment where conditions never remain same as
choices of people keep on vary with time. Therefore, it is must for organisation to modify their
products according to customer’s demand to remain competitive. Executives should formulate
strategies and policies in relation to market situations so that they will be able to direct their
employees and make them perform their duties effectively. They should keep their system
updated so that they will use improved techniques to manufacture the goods. This helps company
to maintain their position in market by constructing long term relations with their customers.
Starbucks and Costa are food chain companies which have established their business globally
and are able to provide their products to people living in different countries (Coghlan and Shani,
2015).
STARBUCKS
Company was started by Grodon Bowker, Jerry Baldwin and Zev Siegel in Washington
DC, United States. It is one of the famous multinational brands which deals in coffee products.
They have opened their branches in more than 50 countries to cater a large number of people.
1

COSTA
This company was established in London to provide coffee products and refreshments to
people. They have expanded their operations by establishing around 3500 stores all over the
world. They have to offer products through which they are able to compete with the biggest rival
firm, Starbucks.
Executives of both companies made strategies and policies according to their system
which are defined as below:
Strategies Starbucks Costa
Competency based strategies Company finds out customers
tastes and preferences so that
they can offer products
according to their demand.
They keep on transforming
their menu card to add new
items and making
improvement in their current
offering by modifying their
products (Doppelt, 2017).
Infusions and mock-tails are
the prime products offered to
customers. Company does not
make their items according to
people's tastes and preferences
in spite they keep making
innovation. They want their
customers to try new flavours.
But they have set high prices
which discard people from
purchasing their items.
Pricing strategies When company has
established its reputation in
market, then executives
increased the price of their
products. But this was a
disadvantage as their
profitability goes down as their
customers shifted to other
brands. Then they conducted
market research and refine
their value so that they are able
This company provide their
items at competitive rates as
they have unique flavours in
their menu card. They provide
choices to people to get new
experiences by taking their
products.
2

to attract people again and
maintain their image.
Promotions and advertising
tactics
In beginning, company had
used various tools to inform
people about their products
and making them aware about
their existence in the market.
This helps them to establish
their image and acquire a large
market share.
This company executives do
not give much importance in
promoting their products to
make people aware about their
offerings. But as they are
operating in dynamic
environment and to compete
with their rivals they adopt this
strategy.
Process Company had modified their
system by implementing
updated techniques so that
they will be able to reach their
customers in a better way.
They make changes in their
firm so that they will be able to
take advantage by producing
products efficiently.
Company is still using
traditional methods as they
serve products on table to their
customers. They have made
changes in their system by
making their employees more
presentable (Dreher, Clinton
and Sperhac, 2014).
Executives train their staff to
enhance their hospitality skills
and making them communicate
properly with their customers.
P2 Measurement of internal and external drivers of change on leadership, individual and team
Leadership
Superiors should posses this quality so that they are able to encourage their employees
and make them motivated so that they perform their duties effectively. They should keep their
members informed about organisation goals and objectives so that they are able aware about
3

outcome which they are required to accomplish. A leader should influence their subordinates
and make them understand importance of working in a team so that they are able to coordinate
efforts of their employees. They should guide their employees by providing them instructions
which help them to carry out activities properly. They should keep them connected with firm and
maintain their morale so that they manufacture products and goods and utilise resources
efficiently. These are some internal and external forces which affect company' operations.
Internal drivers
 Company's capital structure influence their image in marketplace (Feldman, Hartand and
Milosevic, 2017).
 Executives should keep making improvement in their system by applying tools and
techniques in creative way.
 Administration should provide healthy and pleasant environment to their employees so
that they function effectively.
 They should keep their system in such a way that management is able to apply changes
easily.
External drivers
 It is most important factor which affect business activities and regulate expansion.
 Executives should have complete information about their rival firms and their offerings
so that they design their products accordingly.
 Company should consider their investors and government impact on their operations
while making changes in their system.
Linkage of leadership with drivers of changes:
A leader should have strong relationship with their employees to make them connected
with firm by taking opinions and providing adequate information to make them function
properly. They should be able to encourage and keep them motivated towards their duties
(Fullan, 2014).
A leader should have full knowledge about their organisation so that they formulate plans
and strategies accordingly. This help them to keep modifying their system by implementing
adequate tools and techniques through which they are able to accomplish their outcomes. This
provide benefit to company as they are able utilise market opportunities and grow up their
business.
4

Leadership goals and motive:
These are objectives which leader perform to guide and encourage their employees to
perform their tasks effectively:
Direction:Leader provides necessary information to guide their staff so that they know
how they are require to carry out their activities. This reduces possibility of manufacturing
defective goods and diminishes obstacles which makes employees function properly.
Control: Executives set standard which superiors used as benchmark to compare it with
actual performance. This help them to take corrective actions if desires results are not
accomplished.
Authority: Leader is responsible to allocate tasks to their subordinates according to their
skills and knowledge so that they are able to keep them motivated and providing them guidance
so that they complete activities on time.
Influence: Company will never remain in same state, as it goes through diverse situations
which affect its productivity. Leader should keep their employees connected with firm by
making their opinions and providing appropriate instructions. They should be able to make them
function so that they are able to accomplish organisation goals and objectives (Kuipers, and et.
al., 2014).
These are elements influence individual behaviour and team functionality: Customer led drivers: Superior required to offer products and services which fulfil
people requirements. As, Starbucks and Costa provide items according to customers
tastes and preferences. Technology led drivers: Manager need to implement modern techniques in system so that
they are able to provide quality offering through which compete with rival firms easily. Investors led drivers: Companies are able to enhance their working, as number of lenders
have increased. Competitors led drivers: Starbucks and Costa are rival firms, hence they need to offer
quality offerings to customers to sustain their market position.
 Government led drivers: Superiors require to make alterations in strategies and plan,
according to regulatory bodies laws.
Starbucks and Costa conducts PEST analysis to regulate and control external forces affecting
business operations:
5

Political: Manager of both companies are require to make alteration in plans in relation to
government polices, so that their system function according to market conditions.
Economical: If people are having adequate amount of money, then they are able to purchase
items in better manner. As a result, Starbucks and Costa are able to improve its profitability,
thereby country state of economy also enhanced.
Social: Company require to offer products and services which fulfil customers need and want.
They should even promote their items through which they are able to compete with rival firms.
Technological: Manager need to use modern tools and techniques so that they are able to benefit
firm by providing superior products which help to compete with competitors.
Administration should also conduct SWOT analysis through which they build system
accordingly:
Strengths: Starbucks is a large scale firm, so they are able to acquire adequate assests through
which they are able to open branches in different nations. While Costa is small scale are not able
to handle complex situations easily
Weaknesses: Companies face difficulty as in current time tools and techniques are changing
fastly. Therefore, management is require to make alterations in strategies timely.
Opportunities: Starbucks is able to enhance revenue, by increasing number of items according to
customers requirement while Costa is not able to fulfil people demand.
Threats: Firms profitability is affected by national and international rival organisations.
M1
Intrinsic and extrinsic change drivers have direct impact on organisational activities and
operations. These change drivers can be elaborated by explaining several points that are
corporation's culture, employees, management, competitors, Govt. an d many more who has vital
role in success and sustainable growth of association.
M2
Change management is required and recommended by market conditions so that this
could response atmosphere permutations. Kotter's change concept can be applied to this sort of
scene in order to get up-gradation in performance of workforce and this will improvise overall
performance of firm.
6

D1
There are major strategies and policies which is made for improvement of modification
and to fulfil this reason those policies should be analysed in deep way by managers in company.
Training and development functions are provided to manpower so that they could understand
change and must discover their targets that are assigned to them by their seniors.
P3. Evaluating the ways to minimize negative impacts of change on organisation
Adoption of changes involve high risk in it and this could be turn negatively and this kind
of modifications affect organizational culture as well as their framework. For Starbucks,
application of permutation is done by those specialists who are perfect in resolving issues that
arise in the corporation. There are navel methods that must be applied and thus company can
save itself from negative effect of new transformation. These methodologies are given as below: Employee Resistance
A little variation in market becomes reason of change in association and affects
framework of it. In application of this process, management uses traditional methods. This can
be understood by a company applied artificial excellence in regulating records and data of
production procedure which might happen in various components in apprehending systems
(Lawrence, 2015).
 Expenses
There are a lot of changes that are in need to be applied in association to make business
activities successful and Starbucks successfully applied these in their company. For applying
innovation in enterprise, fund is needed. These funds are not an issue for large scale enterprises
as they have strong base of investors and with aid of them they will arrange funds whereas, it is a
big problem for small scale enterprises to arrange funds to apply these modifications. Financial
planning is necessary for the firm to observe cost of change and it also reduces high cost of
modification. Manager analyse various alternatives of investment and evaluate them that which
one is better.
 Lack of support and failure -
Operations of firm can be said have negative effect when company could not
convey correct data and generates miscommunication because lack of knowledge and info. This
failure brings permutation in nature and atmosphere of association as well as its employees. It is
a duty of managers that they ensure same place for everything after applying change. Workers
7

must learn some tricks that should improvise their performance for accomplishment of task along
with objective achievement.
 Morale -
There some points that is to be considered in human personality like level of
confidence, talents and willingness to perform task that is to be done for goal attainment within
limited period of time. There are some certain situations arises in corporation that diminish
morale and confidence level of employees that affects working of company's profitability and
task performance by reduces production. There are some permutations that need to be adopted by
organisation in favourable conditions. Adoption of change depends on communication channel
within association and it is a fundamental task of managers that they must employ effcetual
communication methods in their corporation to make whole procedure of innovation adoption
successful.
TASK 2
P4 Barriers which effect the change and affect leadership decision making strategies
It is necessary for managers that they make plans, strategies and policies and apply them
in an adequate manner so that favourable conditions could come come in association. A leader is
a person who has to thing beyond the boundaries (Mayfield, 2014). Managers can take support
and suggestions from their juniors in decision-making and this will bring efficiency in whole
procedure and increases confidence and morale of employees. This kind of action brings
efficiency in task performance. Starbucks and Costa coffee have lots of factors that affects
complete decision-making process. Various organizations has a separate department to study
market and takes decisions according to it while study all perspective of marketplace.
Ergo, there are some department that both companies run in their business and which
enables effective decision-making by leaders. This helps in high proficiency of organization
activities. Staff that works in these departments look for every single points that are market
conditions, risk factors and analyse competitors strategy that help in service providing and data
collection. With assist of this managers can plan accordingly. This will be more clear with
further example that is if company wants to improvise their sale they have to improve their
production technologies so that they adopt those techniques that their rivals are not using at
present. Leaders can form different kind of team according to their specialization because this
8

will help in decision making process. Change should be introduced in organisation on regular
and need basis. These things have their impact on several points of company like production,
financial status etc. This impact could be positive or negative. Company can not launch
unnecessary innovations because it arises conflicts in situations. It is a fundamental duty of
supervisors that they keep an on each and every aspect (Tang, Lu and Hallinger, 2014).
Innovation management is a type of managerial grid that becomes reason of launching
positive change within association. In markets new technologies and tools are being launched on
regular basis so it is a responsibility of leaders that they analyse these factors and should
introduce them in their business while checking which technology will provide more
profitability. This procedure diminish chances of failure. After introducing these permutations it
is a responsibility of management that they make their team familiar with these changes and
should provide facility which must help in change adoption by employees. Training and
development department looks for need of skill development program that arises after
implementation of change. These permutations takes time to set in corporation's atmosphere.
Change process leads higher expenses of their execution. Consequences of these
permutations will be shown in future. Controlling and monitoring is a nest process that have to
be introduced after planing innovation for achievement of desired goal. Managers always check
whether there is working in an adequate manner or not. It is a duty of supervisors that they
always motivate their team so that they can accept all variations and attain all objectives in set
format of time. It can not be said that every change brings positivity in organisation. An inspired
leader is a person who assist his firm in maintaining their position in marketplace. Managers
should make changes in firm after consulting with their teammates and this action brings
perfection in decision-making.
M3
There are several problems in application of permutations that a leader faces in
organisation. Reasons behind barriers are many for e.g. lower level of discipline and self
confidence, weak communication, higher cost, impulsiveness and other factors. All these points
have ability to leave impact directly on productivity and profit making efficiency. With an
instance it will be more clear and this is communication channel must be needed in an
association for conveying data for further decision-making (Thompson, 2016).
9

D2
For determination of capabilities of of manpower, diminishing is being done by force
field reasoning for determining actual skills and talents along with their specialized field. This
action determines that modification should be launched or not. Training is a skill enhancement
programme that is provided to employees in order to attain all goals in limited period of time.
P5 Application of suitable leadership style in organisational context
Leadership theories are applied necessarily in every organization according to nature of
corporation. Starbucks have accepted several tools and techniques along with leadership styles as
it is restaurant and it must manage their operation in order to serve their customers in desired
time. This will enable attainment of objectives in set framework. Various leadership styles are
stated below: Autocratic – In this approach leaders give importance to their followers and they invite
and receives feedbacks from their teammates. Democratic – For promoting an association, this sort of approach is very useful in
providing participation, scope and feasibility to employees. People who work for
Starbucks can uplift their skills and talents when they will be provided by platform of
opportunities and this method polishes their personality that they shown in their future
task and actions (van der Voet, Kuipers and Groeneveld, 2015). Laissez Fair - In this approach there are some fundamentals which can be apply to
personnels. There are certain rights that must be provided to employees in order to
choose several methods, techniques and tools so as to achieve balance between time and
target as they could be obtain in desired period of time in smoother way. Transformational – In this kind of leadership style a leader must posses skills because
this will bring analytical talent into them and other then this strategies and policies could
be formulated and thus team can be provided with a proper and efficient guidance along
with new and improved ideas. Strong employee and employer relationship brings
flexibility in business operations of Starbucks.
 Transactional – This kind of technique focuses on maintaining healthy relations with
with co-workers . There are certain methodologies that can be adopted by leaders to
utilize various tools and techniques in formulation of strategies and plans. These tools are
10

cash rewards, appreciation, recognisance, promotions and positioning. Leadership and
management are compatible to each other.
M4
There are many kind in leadership styles that an association can be adopt as per needs of
situation and these are autocratic, democratic, laissez fair, transactional, and transnational. These
skills provide that environment in which high level of performance could be achieved from staff
members and they could accomplish their targets in limited framework in an appropriate and
effective manner.
D3
Superiors should keep their system updated and making improvement in their tools and
techniques so that they are able to utilise resources efficiently. Executives frame strategies and
policies along with application of leadership styles so that they are able to attain organisation
goals and objectives (Yoder-Wise, 2014). Kotter's model of change management and leadership
styles to be implemented in system so managers are able to direct their staff to function
effectively. Superiors should keep making modification in their products and services so that
they are able to attract their customers by providing them advanced offerings.
CONCLUSION
As per above assignment, it is concluded that organisation exists in a dynamic
environment where situation never remain same. Hence it is required that executives research on
market to anticipate changes and find out opportunities which they can utilise. They should
manufacture goods and services through which they are able to fulfil their customers
requirements and remain competitive and Superiors know importance of keeping their system
updated and implementing modern tools and techniques. They should examine internal and
external factors which are affecting their business activities. Managers should take feedback
from their employees to know their opinions and to provide necessary skills and knowledge so
that they perform their duties effectively. Superiors should frame strategies and policies in
respect to their modifications so that they are able to function appropriately and result in
attainment of company's objectives.
11

REFERENCES
Books and Journals:
Bin Taher, N. A., Krotov, V. and Silva, L., 2015. A framework for leading change in the UAE
public sector. International Journal of Organizational Analysis. 23(3). pp.348-363.
Coghlan, D. and Shani, A. B., 2015. Developing the practice of leading change through insider
action research: A dynamic capability perspective. The SAGE handbook of action
research. pp.47-54.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Dreher, M. C., Clinton, P. and Sperhac, A., 2014. Can the Institute of Medicine trump the
dominant logic of nursing? Leading change in advanced practice education. Journal of
Professional Nursing. 30(2). pp.104-109.
Feldman, L., Hart, P. S. and Milosevic, T., 2017. Polarizing news? Representations of threat and
efficacy in leading US newspapers’ coverage of climate change. Public Understanding
of Science. 26(4). pp.481-497.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Kuipers, B. S. and et. al., 2014. The management of change in public organizations: A literature
review. Public administration. 92(1). pp.1-20.
Lawrence, P., 2015. Leading change–Insights into how leaders actually approach the challenge of
complexity. Journal of Change Management. 15(3). pp.231-252.
Mayfield, P., 2014. Engaging with stakeholders is critical when leading change. Industrial and
Commercial Training. 46(2). pp.68-72.
Tang, S., Lu, J. and Hallinger, P., 2014. Leading school change in China: a review of related
literature and preliminary investigation. International Journal of Educational
Management. 28(6). pp.655-675.
Thompson, C. J., 2016. Disruptive innovation in graduate nursing education: leading
change. Clinical Nurse Specialist. 30(3). pp.177-179.
van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward: leading
change in a complex public sector environment. Journal of Organizational Change
Management. 28(2). pp.290-300.
Yoder-Wise, P. S., 2014. Leading and Managing in Nursing-E-Book. Elsevier Health Sciences.
12