Woolworths Sustainable Leadership and Change Strategy

This study examines the sustainable leadership and change strategy of Woolworths. It explores the challenges faced by the company, its business strategy, and the leadership model for change. The study also discusses the principles of sustainability leadership and the competencies required. Recommendations are provided for overcoming barriers to change and improving the organization's performance.

Woolworths Sustainable Leadership and Change Strategy
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Table of Contents
1.0 Introduction................................................................................................................................3
1.1 The problem...........................................................................................................................3
1.2 The purpose of the study........................................................................................................3
1.3 Rationale................................................................................................................................3
1.4 Scope and Limitation.............................................................................................................3
2.0 Woolworths Challenges.............................................................................................................4
2.1 The Company Overview........................................................................................................4
2.2 The Company’s Business Strategy........................................................................................5
2.2.1 The Canvas Model...........................................................................................................5
3.0 Leadership Model and Strategy for Change..............................................................................5
3.1 Sustainability Theory.............................................................................................................5
3.1.1 Sustainability Leadership................................................................................................5
3.1.2 Sustainability Leadership principles...............................................................................6
3.1.3 Competencies of Sustainability Leadership....................................................................8
4.0 Organizational Change..............................................................................................................9
5.0 Leadership Model and Change Behavior for Woolworths......................................................10
5.1 Sustainable leadership Model..............................................................................................10
5.2 Changing of Strategy, Technology, and Structure...............................................................11
5.3 The people............................................................................................................................11
6.0 Expected Barriers to Change...................................................................................................12
7.0 Recommendation.....................................................................................................................12
8.0 Conclusion...............................................................................................................................13
References......................................................................................................................................14

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1.0 Introduction
1.1 The problem
Woolworths has been facing downturns for quite some time and the experiencing
decreasing in sales volume, poor management of capital, and a decrease in the margin. These are
attributed to slowing customer cycle, strong competitive pressure, and high cost of leases, high
taxation, and poor quality of products, deleverage in supermarkets, low Australian dollar, and
decrease in return on equity and slow growth on the market among other issues.
1.2 The purpose of the study
In relation to the above problems, the research examines possible ways of remedying the
issues Woolworths in experiencing. The method adopted is explanatory research with the use of
secondary data from past literature, journal, magazines as well as the internet.
1.3 Rationale
Organizations world over are experiencing problems emanating from leadership and
management issues and thus failing to compete favorably in the competitive market. Woolworths
is one of the organizations in the same issue. Being one of the organizations commanding a
bigger market in Australia there is no logic for the organization to experience issues to the point
of being overtaken by upcoming small companies. It is in this regard that the investigation done
will assist the organization relook into its strategies and adopt new ways in order to regain and
keep the command in the market
1.4 Scope and Limitation
The study is limited only to Woolworth Australia and it is done in Australia.

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2.0 Woolworths Challenges
The organization has been facing downturns for quite some time. As per Meyer (2015),
the golden of the company is gone as there is no longer a strong growth in sales, no more margin
increase, and management of capital is poor. The reasons attributed for this is that there is
slowing of customer cycle, strong competitive pressure, high cost of leases, high taxation, poor
quality of products, deleverage in supermarkets, low Australian dollar, decrease in return on
equity and changing of Woolworths petrol to Caltex. Additionally, other issues are the slow
growth on the market; Aldi’s entrance into the market, staff morale is down and market
discounting with no indication of resuscitation (Janda, 2016). The biggest threat to the company
is Coles, Aldi, and IGA among others. These companies entered the market because there are
plenty of opportunities to take advantage of including the vast market of Australia. The mass exit
of employees, the campaign was flawed because the ‘cheap-cheap’ slogan was not what was
happening in the organization. This made the confidence of its customers towards the company
fade away. Despite this campaign, there was no effect on the sales volume (Meyer, 2015).
2.1 The Company Overview
The organization has 3,000 stores and employees, 201,000 employees, to serve the huge
customer base approximated as 29 million across all of its branches. The company is home-
grown with a mission of delivering the best, quality and valuable products at the customer’s
convenience. With the long-term unwavering dedication, the organization created trust and
customers give regarded as the trusted partner (Woolworths, 2019). The goal of the company is
to put customer first and this is done by having a culture of taking the customer as number one,
creating convenience to the customer in a connected and personalized manner, differentiating the

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food products, accelerating innovation of drinks sector, and instill value in the portfolio of all its
products (Woolworths, 2019).
2.2 The Company’s Business Strategy
2.2.1 The Canvas Model
The company developed customer prioritization areas by creating a team of retailers
capable of listening to customers, the stakeholders, and sellers. The team is focused on
improving the company’s shopping experience for the benefit of its clients (Woolworths, 2019).
Also, they have strong underpinnings of hard-work, integrity and culture. This gets attributed to
the founders who set good company principles which to-date is intertwined to the company’s
operations beginning from checkout to the top management (Woolworths, 2019). The have good
partnership relationship entrenched on trust. The company works closely with them in a mutual
relationship to develop quality products and services for its customers (Woolworths, 2019).
3.0 Leadership Model and Strategy for Change
3.1 Sustainability Theory
3.1.1 Sustainability Leadership
Sustainability, when focused on the ecosystem, is meeting the requirements of the present
generation with not compromise on the need of the future generation (Way, 2012). It implies that
even though the present generation uses what is taken as the earth’s capital, there is need to
utilize in a manner such that amble resources are conserved for others without wastage
(Marshall, Coleman and Reason, 2017). The obligations rest on every individual as well as
corporations to modify their operations such that there is no overconsumption, and no wastage
(Way, 2012). Social and environmental trade practices in organizations ensure a sustainable and

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good future. In addition to attaining a competitive advantage, organizations also are able to see
an increase in profitability ratios and stakeholders relations (Dyllick, and Muff, 2016).
There are three connecting aspects of sustainability: the economic aspect, the social
aspect and the environmental aspect (Thomas and Alluru, 2016). As per Wilson (2018), all
components are interrelated to each other in a triple bottom line nature where the community be
contingent on the economy which intern depend on the ecology who good nature rely on the
overall bottom-line (Wilson, 2018).
In this regard, sustainability leadership clinches on the concept of triple-bottom-line. This
is where the actions of a business have to embrace the global view in knowing the association
among the earth and humankind so that individual, as well as personal choices, influence the
environment and the society is a positive change (Carollo and Guerci, 2018).
Leadership theory has undergone revolutions into sustainable leadership and this is where
there is the integration of disciplines and moved beyond the sustainable knowledge (Thomas and
Alluru, 2016). It has drifted beyond the transformational leadership and encompasses change
agent through training in order to acquire specific skills. Sustainable leadership begin with a
purpose and focuses on the main competencies that comprise of knowledge, skills, style, method
and the mission which is a critical component (Peterlin, Pearse, and Dimovski, 2015).
3.1.2 Sustainability Leadership principles
3.1.2.1 Enduring Leadership
As per Lynch (2016), leadership that is enduring is deemed to last. In view of the fact that
leadership since the start of entails planning and training for the purpose of succession, leaders
have to take seriously the succession of leadership. It is attained through mentorship and getting
fresh graduates into the program so that they are prepared to carry on in the organization’s

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mission and vision. As per Nyström, (2009), the sequential professional identities focus on an
individual’s professional relationship with the socially resultant essentials identifying
development in the working life. Therefore, the managers in an organization have to integrate
this as part of the succession process in order to ensure sustainable and lasting leadership through
the organization’s operation (Nyström, 2009).
3.1.2.2 Sustainable Leadership Extents
In the organization, there are multifaceted as well as intertwined activities and operations
that cannot be done by one individual. A leader that endows sustainability teaches and apportions
tasks and delegate authority to sub-level in the organization (Trede, Macklin and Bridges, 2012).
This is also seen in the grooming of future leaders. The sustainable leadership calls for
competencies among leaders and this cannot be obtainable if the present leaders do not delegate
leadership roles as a way of extending their leadership skills. The end results from it to leave an
enduring legacy for the organization even to the future generations (Kurucz, Colbert, Luedeke-
Freund, Upward, and Willard, 2017).
3.1.2.3 Resourcefulness and Socially Just
This type of leadership carefully utilizes and resources in talent development instead of
giving rewards to distinguished leaders (Brown, 2012). Sustainable leadership is beneficial to all
the employees, the stakeholders, and society. The interlinking component of elements in the
society and in particular the organization requires that there is a coexistence that is mutually
beneficial to all. In order to ensure this, organizations have to maintain improvement for the
organization and that of the society so that there is social justice to all stakeholders and the wider
environment (Disley, 2013).

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3.1.2.4 Promotes Diversity and Activism
Sustainable leadership in an organization permits the employees to proper and adopt in a
multifaceted environment through learning the diverse practices from one another. There is no
imposition of standardized patterns in all-inclusive societies. Leaders together with the
employees endeavor at all time to improve the organization for the betterment of the employees,
the stakeholders, the society and the future generation (Gauthier, 2013).
3.1.3 Competencies of Sustainability Leadership
System thinking is one of the sustainability leadership competencies. It is the ability to
understand the context behind difficulty from a broader perspective and employing a
multidisciplinary approach through a combination of creativity and technical skills. It implies to
have the resilience in system management in managing emergencies (Appelbaum, Calcagno,
Magarelli, and Saliba, 2016).
In addition, sustainable leadership calls for collaboration with the external entities. This is
because a bigger part of business operations are aligned in the environment and therefore
collaboration with these entities such as the suppliers, the competitors, and the customers is
paramount. This assists the organization to create social capital, shape the operating environment
and provide an opportunity of exploring new markets (Salgado, Abbott and Wilson, 2018).
Moreover, social innovation is another competency. The challenges experienced in the
changing business trends globally calls for the re-engineering of fundamental business operations
and products. Even though these are seen as challenges, they create growth potential for the
business is done and applied accordingly. People with competency in an organization are able to
re-design products and processes in order to create business opportunities and social value.
Organizations that have recognized this competency treat constrictions as transformable by

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questioning the status quo and encourage entrepreneurship and the workers (Wright, Nyberg and
Grant, 2012).
Furthermore, sustainability literacy among leaders in an organization is essential for
business. This allows leaders to foresee on the emerging trends in the spheres of social and
environmental aspects and the potential opportunities or risks they are going to bring into the
business. In reality, they are incognizant of the varying roles of business on the community,
available options of altering the business model, and are able to examine how the competitors are
coping with the changing trends. Through this, the develop strategies using appropriate tools so
as to counteract on the imminent changes (Appelbaum et al., 2016).
On the other hand, active values among leaders are also very important in doing business.
A leader with this value is able to take into considerations the emotions as well as the motivation
for others since they perceive themselves as part of a bigger team. It is, therefore, the role to
motivate fellow workers and harness the organization for the improvement of the society
(Salgado, Abbott and Wilson, 2018). As per Du Plessis, Wakelin and Nel (2015) sensitive
intellect in leadership has the capability of fostering resiliency, reciprocity, and trust among the
employees. The compassionate leader has the capability of innovating products in the alignment
of values relevant to the client’s requirements (Du Plessis, Wakelin, and Nel, 2015).
4.0 Organizational Change
In order for organizations to evolve, continue relevant and economical they have to
undergo change. However, organizational changes become disruptive with no strategy that aid in
guiding on the initiatives of transformation (Hosking, and Anderson, 2018). The most essential
change approaches are those which concentrate on changing the social component. This is since
they are the people affected by the alteration and their views to either be implementers,

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disrupters or hold-outs become an impact on the transformations needed (business mapping,
2017).
When there a transition to a new state and acquire desired features then organizational
change has taken place. The management of organizational change is a process that requires
planning as well as implementing change (Kaufman, 2017). It involves the process of reducing
resistance from the employees as well as the cost with the aim of maximizing of change effort’s
effectiveness (Lewis, 2019). The present dynamic business environment calls for constant
changes so that an organization can remain competitive in the current competitive environment.
The aspects of globalization and changing technology compel businesses to be responsive in
order to survive (Alvesson, and Sveningsson, 2015).
Changes happen in the organization due to issues experienced by the organization and
also in other instance change may occur due to the impetus of progressive a leader who identifies
and yearn to exploit new potential situations identified or which is prevailing in the company
(Hosking, and Anderson, 2018). On the other perspective, change can get restricted and fails.
The failure of change may due to the manner in which change has been visualized, implemented
or communicated. Employees sabotage changes which they appear as adversative on their
interests (Kaufman, 2017).
5.0 Leadership Model and Change Behavior for Woolworths
5.1 Sustainable leadership Model
In line with the SDG by GRI, (2015) that sustainability in an organization is one the
embed sustainability in all of its functions. It is proposed that the use of the sustainable model by
Woolworths is the way to go (GRI, 2015). The applicable and viable model that Woolworths
need to adopt is the maintainable control model. This type of headship includes leadership theory

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as well as environmental theory. In a nutshell, leadership theory is systemic, transformational,
transactional, and has command while transformational leadership is ecological intensive,
increased professionalism, has the roots of professionalism and non-hierarchical (Nicholson and
Kurucz, 2019). Through a combination of the two there are leadership endurances as there will
be no gap in succession processes; it is just to all the people involved as well as the environment,
its resourceful since all the resources employed are done for the benefit of the present society and
the future generation, it is a mentoring type where the leaders are able to extend the type of skills
and roles to the lower staff with potential of taking up leadership roles in future, promote
diversity and activism (Amlaeva, Feyzioğlu, and ElKambergy, 2016).
5.2 Changing of Strategy, Technology, and Structure
In view of the fact the Woolworths current strategy is not working out, it is no longer
suitable for the organization and therefore there is a need for changes. The first changes that are
necessary are to modify and set the vision for the future direction of Woolworths, setting a new
system that is going to support the company. It is going to impact also on the structure of the
organization given that a numb er of stores has not been refurbished for alone time. The new
structures will require technology integration and might encompasses system upgrade to touch
on all of its branches for uniformity.
5.3 The people
This is a very difficult part of the modification procedure. The motive is that people are
the main components and drivers for change. Since the changes are going to touch on the
employees, it is necessary to make them relevant to the coming changes. This is done by making
them get the relevant skills and training. There is a need to initiate programs through initiatives
like team building, education, and career planning. Changing the attitude of the employees is as

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well necessary as it is going to increase the effectiveness in the association (Benn, Edwards and
Williams, 2014).
6.0 Expected Barriers to Change
The process of initiation of change, there are barriers that make the organization fail to
realize change. The barriers are little knowledge on the need for change; employee’s attitude
might be negative towards change; failing by the management to involve employees in the
process of change; poor communication; resistance to culture; lack of support; and inadequate
resources (Bovey, and Hede, 2001).
7.0 Recommendation
In order to effectively implement change, Woolworths have to adopt change management
strategies. The first strategy is proposing incentives to the employees. The incentives proposed
are going to inspire workers to accept as well as also participate in the new course with the
company management. The programs such as recognition of employees and rewards get
employed. These are made towards certain actions as well as the company values. These
incentives reinforce the behavior since the employees feel appreciated and will offer no
resistance to change.
Secondly, Woolworths has to redefine its culture. The values of the organization require
transformation so that it mirrors the new vision. It is established that people being social want to
be part of new values and norms. The setting up of a culture of continuous improvement is a
means of altering the mind and winning the hearts of the employees.
Additionally, exercising authority is another aspect that Woolworths has to use in order to
reduce the resistance that might arise among some quarters of the workers. Since they are part of
the company are inclined to follow instructions, they will have not to excuse but to accept and

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follow suit in the process of change. Even though this can bring resentment and maybe rejection,
it is critical when all the other options have failed to bear fruits hence “my way or the highway”
must apply.
The last change strategy is the recruitment of champions of change. These are the voices
among the employees who are capable of championing change. This has to come among the
employees themselves and not from the top management. When the selected champion shares the
essence of change as well as the benefit with fellow workmates, change process gets speeded up.
This technique is a way of getting feedback, sharing information for change and decreasing
resistance from the employees.
8.0 Conclusion
Change is an inevitable aspect of an organization that is competing favorably in a
competitive environment. With the current problems surrounding Woolworths, the company is
not an exception for change transformation. In order to come out of these issues, compete and
retain its customer base, the organization must adopt sustainable leadership, changing of business
strategy, technology, company structure, and people. It is recommended that Woolworths have to
adopt change management strategies, redefine its culture, exercising authority and recruitment of
champions of change.

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