Understanding and Leading Change

This document discusses the concept of organizational change and its impact on leadership, team, and individual behaviors within an organization. It compares different organizational examples and explores the ways in which internal and external drivers of change affect these aspects. It also provides measures to minimize the negative impacts of change. The document focuses on Ernst & Young, a multinational organization providing professional services.

Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Compare different organisational examples.....................................................................3
TASK 2............................................................................................................................................6
P2 The ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.........................................................................6
P3. Measures that can be taken to minimise negative impacts of change............................10
TASK 3..........................................................................................................................................11
P4. Different barriers for Organisation change....................................................................11
TASK 4..........................................................................................................................................13
P5. Different leadership approaches to deal with change.....................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Organisational change can be defined as inhaling various fluctuations within business
and their procedures which impacts their working and performance as well. Organisational
change is defined as a significant aspect which could be helpful for the business to deal within
outer market situation and to attain their organisational goals and objectives in early manner.
When continuous failure is being faced by business then need of organisational change may
arise and under this business standards can be improved and this leads in enhancing
performance and improvement opportunities as well (Doppelt, 2017). Organisational change
may be inhaled for some particular period of time in order to enhance opportunities for
sustaining. There are varied management theories which are attached with organisational
change as change are inclined towards attaining of some particular goals and objectives so
changes may lead the business to avoid any business complexities as well. This report is made
for understanding concepts of organisational change in the background of Ernst & Young. Ernst
& Young is a multinational organisation which is leading industry in providing professional
services at global level. The company was founded in the year of 1989 and headquartered in
UK. The company is providing diversified professional services such as accounting,
operational, HR and many more.
TASK 1
P1. Compare different organisational examples.
Organisational structure plays a significant role in order to develop an organisation as
structure is managing equality and diversity within a business and helps the business to
maintain their identity. All the businesses have laced with some complexities and in order to
earn profits these complexities are required to be eliminated. For eliminating these complexities
it is necessary that various processes and technology are to be inhaled so that to deal with
changes and challenges in equitable manner. For improving business performance this is
imperative that business structure to be improved so that to get assistance over launching of
new product or service. For this purpose internal communication within a business is requisite
to be robust so that any major change can be undertaken in sufficient manner. Further an action
plan is required to be prepared which includes various strategies and tools in order to get easy
access towards change management. These tools and processes could be helpful in order to deal

with organisational change and to inhale succession opportunities in effective manner within
predefined time frame (Gripsrud, 2017).
One of the major aims of business growth is to make business processes effective for
dealing with risk arising in. Business environment is associated with various positive and
negative implications within business. Under this aspect the major responsibility of manager is
to recognise needs and demands of their customer and finding ways in which the same can be
dealt. Ernst & Young is a multinational service provider organisation which is having robust
presence in global periphery. The company is highly focused on meeting needs of their
customer along with needs of their stakeholders. In the current time the company is facing
problem in their sustainability which is a big issue for them. There prominent projects are based
on productivity which is leading them to attain high success and profit as well. These practices
may lead the organisation to deal with their rivals such as Deloitte. In order to attain high end
success the company is required to modify their processes and business practices as according
to market trends. In context of change comparison of Deloitte and Ernst & Young are
elaborated as under:
Basis Ernst & Young Deloitte
Change in external factors Business environment is linked
with varied factors those are
providing direct implication to
the business. Some factors
within external environment
are tax rate, changes in
currency rate etc. These factors
are directly implicating
business working and
incoming of talent as well.
Besides this the company is
managing their business at a
huge scale so this is not easy
for them to inhale large
Deloitte is one of the
prominent market leaders
which are providing numerous
services to their customers
which include financial
services, consultation services,
risk management services and
many more. Deloitte is one of
the global organisations which
generated 4.6 billion USD as
revenue and managing more
than 300000 employees in
their business. For attaining
positive changes within an

changes which may implicate
their business processes. So in
this situation management of
Ernst & Young is trying to
utilise those are providing
most profitable results to the
organisation (Hickman and
Silva, 2018).
organisation Deloitte is trying
to improvise their performance
so that to minimise all the
business complexities. By
meeting market expectations
Deloitte can explore various
business opportunities in order
to attain sustainability and
business succession.
Structure Ernst & Young is a
professional service provider
in which they are having
operations in global level. As
in comparison of Deloitte,
Ernst & Young is associated
with lesser employees so it
could be difficult for them to
attain their goals and
objectives (Shrivastava and et.
al., 2017).
Deloitte is having their
business structure in which the
company is limited by
guarantee. This structure is
helpful for them to unleash
international markets as well.
This structure is helping them
to run their business global
boundary.
Strategy: Strategy is defined as plans and steps which are followed by the businesses in
order to make a prominent pathway by which goals and objective of the business can be
attained. Strategies are defined as those steps which are undertaken by a business for attaining
their long term and short term objective as well. With the help of prominent organisational
strategy the business can originate their objectives in such a way that it would lead in
accomplishing business gaols. In this context Ernst & Young is having route for their missions
and they have clear vision and strategic intent for the same. For accomplishing organisational

goals this is imperative for Ernst & Young that they follow their defined strategies in effective
manner so that any changes within functions can be applied in suitable manner. For analysing
market condition, PESTLE analysis is performed by Ernst & Young which could be helpful for
them in determining market condition (Phadermrod, Crowder and Wills, 2019).
Operations: Operational strategies are defined as those movements which an organisation
is undertaking so as to lead change system within business functions. In order to frame relevant
strategies managers and supervisors are required to perform prominent communication so that
these strategies can be communicated to employees and various stakeholders without facing any
barrier. Managers of the business is having role to motivate their employees in such a way that
it would lead in enhancing their performance and accepting organisational change in smooth
manner. Besides this trainings are also required to be provided to employees in order to
intensifying their skills and capabilities so that they can deal with business functions in
prominent manner.
TASK 2
P2 The ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.
Changes are exhibited in order to get deviation from one’s comfort zone. In current time
organisations are seeking to manage their change transition so that to attain prominence and
sufficiency within business. For businesses this is imperative that they acquire strategical and
operational changes within their business functions so that to meet their customer demands in
appropriate manner and deal with market competition as well. Every change may have positive
or negative implication within business and these may be seen in increment and decrement
within financial or operational efficacy (Policy, 2018). In order to adopt change this is required
that prominent strategies are maintained so that to attain organisational efficacy. Changes may
be associated with product, process, operations, and policies. There are some external and
internal change drivers which are elaborated as under:
 Customer Driver’s Change: Needs of customer are emerging and dynamic in nature as
they keep on changing by passage of time. Businesses are running in order to satisfy
needs of their potential and existing customers by undertaking all the aspects. For this

businesses require to inhale various product strategies so that latest up gradation can be
made to the same. Customer needs are prominent for an organisation and in order align
the same innovations and market trends are to be undertaken. In this context Ernst &
Young is managing their customer demands and finding business expansion
opportunities in those needs.
 Competitor's Driver changes: Another challenge for the business is to deal with rivals
and manage market image. For this Ernst & Young is making prominent strategies so
that to manage their business functions as in respect of their competitors. In case a
competitor of Ernst & Young is making market expansion strategies then in this case the
company is required to reinstate their policies so as to enhance their market survival.
 Technological Driver Change: In current time technology is one of the essential
dimensions which is required to be inhaled by every business so that attain fast business
growth (Scarce, 2016). By adopting new technology this is imperative to introduce
changes within business may arise and in this condition role of a leader and manager get
enhanced which lead the business to grow and sustain. In order to make high profit this
is imperative to make business functions aligned and for this manager and leaders are
trying to attain trainings so that they can deal with coming business complexities in
prominent manner.
SWOT analysis of Ernst & Young
Strength Opportunities
The company is having high customer
satisfaction which enables them to capture
higher market segment. Latest technology is
used by Ernst & Young which is helpful in
providing higher level of satisfaction to their
clients in proper manner (Espedal, 2017).
 Ernst & Young is focusing over
expanding their business to global
markets. So the company is acquiring
small business firms and providing
them consultation services.
Weaknesses Threats

 Ernst & Young is facing intense market
competition as there are so many
organisations which are associated with
providing homogenous services to the
company which is giving adverse
impact to their business functions.
 Due to global pandemic the company is
facing huge losses.
PESTLE analysis of Ernst & Young
POLITICAL ECONOMICAL
European market after Brexit: Ernst & Young
is facing negative impact due to Brexit and this
is creating difficulties for the business in its
survival. Besides this as the company is
dealing in global market so these policies are
creating problem as in aligning business
function. So this can be said that these external
changes are implicating the business in
positive and negative manner (Amis and Janz,
2020).
 Ernst & Young is required to adhere
with economic regulations which is
difficult for them and hampering their
profitability in negative manner.
Besides this currency changing is
another challenge for them to survive in
global market.
SOCIAL TECHNOLOGICAL
 Changing preferences: Demands of
customers are changing and dynamic in
nature which is a problem for Ernst &
Young as they are required to change
their business offerings in early manner
in order to align their needs with
 Social media Involvement:
Communication is one of the essential
aspect which may help Ernst & Young
to deal with market competition. This
technology is immensely used by Ernst
& Young to deal with needs of their

business goal. customers.
LEGAL ENVIRONMENTAL
 As the company is operated in global
level so there are various laws and
regulations which are required to be
utilised by the company due to which
this creates complexities in business.
 This factor is having high implication
in business of Ernst & Young as the
company is required to use sustainable
business practise which may increase
overall cost of their services.
How organisation change affect these terms
Leadership Team Individual
At the time of adoption of
changes role of a leader get
changed as they are required to
lead the organisation so that to
deal with these changes. Under
this leaders are prone to adopt
prominent practices and
policies.
Policies of an organisation get
change when any change are
introduced within business and
in this aspect teams are having
effective role to stay motivated
and inhale these changes in
effective manner.
For individual guidelines given
by leader and manager are
required to be followed by
them so that to avoid any
business deviation as
individuals of an organisation
are working as backbone for
whole the system.

P3. Measures that can be taken to minimise negative impacts of change
Business environment is being associated with different activities which are related with
execution of these within business. These activities are helpful in managing profitability of the
business and to manage its sustainability as well. These executions are related with acquiring
changes within business and managing the same with utmost efficacy. In this context Ernst &
Young is providing diversified role to its manager and leaders which could lead the business to
inhale changes in sufficient manner (JASIM, 2019). In order to minimise negative impact over
the business of change this is imperative that to implement policies in clear manner so that to
enhance prominence and profitability as well. Besides this usage of relevant techniques are
necessary so as to attain positive benefits within business and to deal with market change.
Some of the tools and techniques are described as under:
 Creation of Pathway: This is imperative for the management of Ernst & Young that
they prepare proper action plan which could lead their business to stay adhered to all
policies which are being introduced by them. This is helpful in enhancing Employee
Corporation through which goals of the business can be attained in optimal manner.
Action plan is an essential outline which may help employees to follow provided
guidelines so that to attain goals and objective in clear manner and in early manner as
well. This tool is helpful in order to develop interest of employee in such a way that
benefits of change management can be received. This way changes can be adopted by
employees in easy manner and leads in attainment of higher performance and goals
attainment in early manner
 Discuss plan with employees: This technique can be used by leader in the process of
formulating any plan and policies. Under this employees are undertaken in the process
of decision making and roles are given to employees as according to their capabilities.
For this manager and leader of Ernst & Young is required to arrange things in such
manner that system can be followed in effective way. Besides this feedbacks can be
received by employees so as to analyse area in which modifications are required. This is
helpful for employees to get to know regarding their value within organisation and lead
them to receive higher motivation.

Bruke Litwin Model: This is defined as the significant approach which can be used by HR
manager of the business in order to examine effectiveness of employees. In this context
manager of the business are trying to recognise need and significance of their employees so that
to allot them task in that manner only. This theory is helpful in get to know regarding ways
through which effective results can be attained and needs of customer can be met. This theory is
having their direct implication over measuring needs and changes that are required to be
adopted by the business when they are willing to attain prominence and sustainability. There
are varied factors which are associated with business and its sustainability that would provide
additional insight to the business for enhancing their value. In the context of Ernst & Young
some of the factors which may have impact in their business are elaborated as under:
 External environment: Under this aspect various factors are included such as social,
ethics, competitors, political factors and many more. These factors are known as
external factors and help the business to attain high profitability and productivity. In the
context of Ernst & Young for analysing these company is performing PESTLE analysis
so as to deal with external business conditions in proficient manner.
 Mission and strategy: For sustaining in market place this is essential that company stay
adhered to their mission and adopted strategy. In this case Ernst & Young is making
robust strategies which are flexible so that can be modified in order to adhere to market
change. The foremost mission of Ernst & Young is to serve their customer in economic
and effective manner so that to attain positive growth (Barrón Löthman, 2017).
TASK 3
P4. Different barriers for Organisation change
Every organisation must make some changes that are stated or not stated with progress of
time. It is never easy to implement those changes in the business. That is why organisation must
have innovation in the pattern that is existed for change. It makes some of the organisation s to
seek help for implementation of such changes in the business (Clack, 2020). These changes are
vital for organisation in case they are shifting their goals and objectives, and which are going to
benefit the organisation. Here Ernst & Young is going to be used by the organisation to identify
the barriers in implementation of any changes in the business are explained below:

 Resistance to Change – Biggest challenge is the resistance to make any changes from
the employees of the organisation. They are not comfortable and supportive in
implanting such changes as they think that these changes are going to complicate their
job process and they must make some extra effort. They sometimes use political
influence to resist these changes to be approved and incorporated.
 Competitive Forces – Change might by the result of external threats. There are
situations where business competitors are 5 years ahead in terms of their product as
compared to the business. This might persist change which might come with high
probability and risk of failure.
Force Field Analysis
This is analysis is required to be conducted by Kurt Lewin in 1940. This tool assists
organisation in analysing the forces and their behaviour and resistances that might come against
the changes and to make the decision on change to be made and communicate the change in
most equilibrium manner by framing the conditions such that the resistance from the employees
and forces can be lowest (Dick and et. al., 2018). To conduct this below given certain steps
must be followed by the organisation:
Step 1 – Define your Problem
The very first step is to identify the current situation and list out the problems and challenges
that require change or modifications. This is responsibility of managers to analyse the current
situations and scope of modification that is going to lead the organisation in resolving the issue
faced.
Step 2 – Define the Change Objectives
The next process is to identify all the external and internal factors and forces leading to the
change. Manager need to think and examine the same thoroughly.
Step 3 – Identify the driving forces

Once the changes are identified the forces that are going to resist the changes most has to be
identified and along with that their influential power and inter-relationship with each other too
has to be critically analysed and brainstormed.
Step 4 – Identify the restraining forces
Under this step, managers of Ernst & Young have listed all the restraining forces and their
inter-relationships.
Step 5 – Develop a comprehensive change strategy
This is the last step of this theory where managers frame an effective and detailed change
strategy such that it would be most beneficial to the organisation in the future (Holmes and et.
al., 2016).
TASK 4
P5. Different leadership approaches to deal with change.
Changes might have only been stipulated by organisation and leaders. The leaders of the
organisation is vested with responsibility to implement and communicate effective change
within the organisation. Various leaders of Ernst & Young have their own leadership styles to
implement the change. Below given are some of the leadership approaches that can be used to
deal with upcoming changes: Directing – This is more of the one-way communication style of leadership, under
which managers or leaders have already framed the changes to be incorporated and they
straight away direct and compel the forces to adhere with those changes within a
specific time frame. This style is highly directive and less supportive. Under these
directions are given by managers regularly which benefits by making the task
achievable in smooth and better way (Burnside, Eichenbaum and Rebelo, 2016). Coaching – Leaders of Ernst & Young are given specific instructions and steps that
need to be taken as part of changes and defining how operations are done. It is more
supportive as compared to directing approach. It also helps in developing skillset of
employees.

 Supporting – It is most supporting and lowest directive kind of leadership style. Under
these employees are engaged in decision making process of changes and a effective
coordination is their between the leaders and employees. It helps in bringing the
resistance from forces to the lowest level as they too were part of decision making for
change. Delegating – This step deals with decision making responsibility delegation that are
passed to employees. For success of this leadership approach has to be supportive and
behaviour has to be directive.
So, the leadership style that must be used by Ernst & Young managers to assist them in
implementing the change effectively and smoothly within the organisation might vary based on
several factors. It is helpful in managing both the employees and various influences.
CONCLUSION
From the above discussion this can be concluded that organisational changes are one of
the vital parts of the business which is related with modifying business process and activities. In
order to meet goals and objectives businesses are tend to adapt change so that they can align
market trend with business working. In order to attain success customer needs are primal to be
undertaken and for this changes are exhibited in the business.

REFERENCES
Books and Journal
Amis, J.M. and Janz, B.D., 2020. Leading change in response to COVID-19. The Journal of
Applied Behavioral Science. 56(3). pp.272-278.
Barrón Löthman, L., 2017. Leading Organizational Change Globally: A study of the success
factors for effectively driving change in a multicultural and international company.
Burnside, C., Eichenbaum, M. and Rebelo, S., 2016. Understanding booms and busts in housing
markets. Journal of Political Economy. 124(4). pp.1088-1147.
Clack, L., 2020. Leading Positive Change. In New Horizons in Positive Leadership and
Change (pp. 175-188). Springer, Cham.
Dick 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.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Espedal, B., 2017. Understanding how balancing autonomy and power might occur in leading
organizational change. European Management Journal. 35(2).pp.155-163.
Gripsrud, J., 2017. Understanding media culture. Bloomsbury Publishing.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Holmes and et. al., 2016. Understanding the mechanisms and drivers of antimicrobial
resistance. The Lancet, 387(10014), pp.176-187.
JASIM, A.F.A., 2019. Conceptual Skills in Leading Change: A Competence Approach to
Public Sector Leadership (Doctoral dissertation, The British University in Dubai
(BUiD)).
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.`
Policy, P., 2018. What is pestle analysis.
Scarce, R., 2016. Eco-warriors: Understanding the radical environmental movement.
Routledge.
Shrivastava and et. al., 2017. Recent advances in understanding secondary organic aerosol:
Implications for global climate forcing. Reviews of Geophysics. 55(2). pp.509-559.