Leading and Implementing Workplace Change in Marks and Spencer

The report discusses the recent change initiative in Marks and Spencer due to external factors like COVID-19 pandemic and how change management models were used to implement the change effectively. It evaluates the impact of organisational culture on the change management programme and develops a suitable change management plan for the organisation.

Leading and implementing
workplace change
Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of the current state of the company .......................................................................1
Involvement with the company .............................................................................................1
Outline of the recent change initiative which will be investigated in this report ..................2
An analysis of the recent history of the organisation and an explanation of how changes in the
external environment including COVID-19 pandemic have impacted on the company. ......2
Evaluates change management models, incorporating issues related to strategic change in that
organisation including how the change was managed and the leadership styles...................5
Evaluate the impact of organisational culture on the change management programme and
develop a suitable change management plan..........................................................................7
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................14

INTRODUCTION
In the competitive business environment the changes are the most constant thing as to
gain competitive edge the organisation keep implementing change for the better performance in
the market. The change can be productive if it is effectively implemented at the workplace using
the appropriate change management model (Newman and Ford, 2021). The external business
environment factors such as political issues, economic instability, Customer trends are the major
factors that initiate the change within an organisation. In the previous years the Covid-19 has
acted as the major force for the change within the organisations. The present report is the study
on the change management in the “Marks and Spencer” (M&S). The company is leading British
multinational retailer headquartered at London, England, UK. The company operates in three
segments i.e. clothing, home products and food products. The report will highlight the current
state of the company, recent change initiatives and recent history of the organisation. Further
there is brief explanation of the impact of changes of external environment on the M&S.
Different change management models are evaluated, issues related to the strategic change and
how change is managed and what leadership styles are used. In the end, impact of organisational
culture on the change management programme and change management plan is developed for
the organisation.
MAIN BODY
Overview of the current state of the company
Marks and Spencer is a UK based retail chain which was founded in the year. The
company is currently headquartered in London, UK and has expanded to 150 countries. The
company struggled during the COVID-19 pandemic and recently reported a 90% crash in annual
profits after COVID-19 pandemic hammered the clothing sales of the company (M&S profit
seen crashing 90% in "lost year" of pandemic, 2021). COVID-19 introduce the challenge of
maximising the digital sales of the company as consumers preferred to shop online instead of
travelling to physical store because of the pandemic. Marks and Spencer was not able to face this
challenge and has not recovered form the loss caused by the pandemic.
Involvement with the company
My involvement with the company is that I work as a store manager at M&S physical
store in London. My responsibilities are supervising and appraising staff, managing budgets,
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dealing with consumer queries and complaints, maintaining financial records and overseeing
stock records (Hagger and et. al., 2020). I have gained various benefits as an Marks and Spencer
employee and I am dedicated to support future growth of the company.
Outline of the recent change initiative which will be investigated in this report
The recent change which is being introduced at the company is the 'Never the same
again' turnaround programme. This programme will lead to the closure of 100-200 stores. The
company will also focus on building its digital capability through the partnership with Ocado and
introduce online food service by the end of 2021 (M&S to speed up latest reinvention in 'never
the same again' plan, 2020). The focus of this organization wide change initiative is to prepare
the company for digital future and change organizational structure to remove role duplication
and provide clearer leadership accountabilities. This change will help the company become more
consumer centric and recover from the COVID-19 crisis quickly. The respective firm will be
able to face competitive from other e-commerce retailers such as TESCO and Amazon because
of this turnaround program.
An analysis of the recent history of the organisation and an explanation of how changes in the
external environment including COVID-19 pandemic have impacted on the company.
Recent history of the organisation
Marks and Spencer was established by two founders Michael Marks and Thomas Spencer
in 1884 in Leeds. In recent year the company has approximately 959 stores all around UK. In
1998, the M&S was considered as the first retailer to have approximately £1 billion pre- tax
profit. In recent years the company clothings sales has been decreasing abruptly and food sales
has been increasing. With the growing years the company has kept its acquittance and mergers
with many other brands such as in 1998 the company acquired Brooks Brothers- a top known
American clothing company, Kings supermarket- A famous US food chain. Till 2001 the
company shares were at great decline due to which M&S faced huge financial decline. The
company was also facing issue with its supply chain and highlighted its failure in basic
shopkeeping in its annual report of year 2008. therefore company planned to implement change
by restructuring its unprofitable and minor food stores. In 2010, company also planned to
strengthen its brand image by targeting the sales of £800m and £1bn over the fund plan for next
three years. But in 2015 the company has close many of its stores which also affected many
workers. Also in 2017-2018 there was the store cull of 8 stores. In 2020 with the emergence of
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the global pandemic Covid-19 the company has to do job cut of 7000 employees in
approximately three months. Also the managers of the company announced that cuts will be
made in support function, in the UK stores and regional management which completely reflected
the change has been felt throughout the business. Also in 2020 the company reported its first loss
in 94 years due to the Covid-19. In May 2021 the company has announced the closure of 30
shops as part of its turnaround change programme due to the issue of supply chain arises from
the political imbalance of UK and EU Brexit.
Impact of changes in external environment on the Marks and Spencer
The external environment of the business organisation consist of several factors that
keeps on changing timely and has a direct or indirect impact on the operations of the company.
In the external environment there are the several factors such change in political situations,
economic instability etc (Amis and Janz, 2020). To analyse the impact of changes in the external
environment on the Marks and Spencer the pestle analysis framework is discussed below:
Political factors: the political instability between the Europe and UK due to which there was
occurrence of separation of EU from UK also known as the Brexit is the major change in the
external environment of UK. This change has created a huge negative impact on the business
operations of the Marks and Spencer because this has directly affected the supply chain of the
company. Also this has lead the company to excess amount of paperwork as many store lines
where cut due to the pressure created by this change in the external environment of the retail
industry of the UK.
Economic factors: the economic instability caused to major change of external environment
caused due to the global pandemic Covid-19 has affected the business of Marks and Spencer to
the great extent. Due to the Covid-19 the businesses where shut down and also the first time in
29 years Marks and Spencer also faced a huge financial loss. As due to covid-19 the GDP was
lowered, there were economic crisis and such changes in economic stability have caused the
down fall or business of M&S and also due to this company has to cut jobs. Thus economic
changes in the UKs economy directly impact the sales of the company due to the change of
disposable income of the company’s employees.
Social factors: the customer trends in the retail industry change very fast which tends to force
organisation to bring changes in their operations in order to satisfy those needs (Naeem, 2020).
In context of Marks and Spencer there is huge change in fashion industry after the Covid-19 as
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the customers are more willing by clothes from the online stores rather than visiting stores for
which the company has impact the sales on the physical stores. Also there is huge change in
eating habits of the people which has changed the company’s menu list as the guest more organic
and vegan food. This change of external environment has directly impacted the sales of the
company as customer are more demanding the update of digital platform and also in term of
eating the company has to invest in developing new menu as well as the recipe, menu chart etc.
are changed with this factor.
Technological factors: technology is evolving rapidly which is consistently creating the
pressure over the organisations in retail industry to bring changes with the changing technology
in order speed up their process and to ease the customer service. The change of technology with
has created the emergent change of e-commerce retailing has impacted the Marks and Spencer
and its operations (de Lucas Ancillo, del Val Núñez and Gavrila, 2020). By adopting the
technology the company has partnership with Ocado an online food service brand to start its own
online food retailing business. Thus, the technology has brought the positive impact on the
Marks and Spencer as it has increased the sales of the company, made the company technology
savvy and competitive through e-commerce.
Legal factors: the legal factors are always a mandatory part of every company any changes in
legal rule and regulations bring lots of changes in the operations and working of the business.
The legal changes are complex and cause difficulties for the company’s (Talati and et. al., 2020).
In context of Marks and Spencer the change of employment law of UK bring huge change in
HRM policies of the company as the company has to increase the wages of the employees as the
minimum wage act. Also due to this the cost of salary was increased in Marks and Spencer. The
firm is the multinational organisation and operates in different countries apart from UK therefore
any changes in legal considerations of any country bring changes and complexities in the norms
of the company (Toleikienė, Rybnikova and Juknevičienė, 2020). Therefore to effectively
manage such changes the company has whole team of law suits that comply with all legal rules
and regulations and with changing norms change the rules and regulations of Marks and Spencer
timely.
Environmental factors: the surrounding in which the customers, employees, and organisation
exist is important to be protected. With growing concern for environment safety and
conservation the government, customers and other stakeholders of the Marks and Spencer has
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become highly active and aware of their operations that may harm the environment. Also due to
the increasing environmental degradation the Marks and Spencer has taken initiative of no use of
plastic in organisation. This change of environment has also made the company to develop the
clothing segment that is made of natural fabrics, without any chemicals and termed as organic
clothing (Beare and et. al., 2020).
Thus, it is critically evaluated that the change of external environment directly brings the
changes in the Marks and Spencer which are sometimes considered positive or negative.
Therefore, it very important for Marks and Spencer to effectively analyse their external
environment before change management as this will lead to accuracy in the process of change
management.
Evaluates change management models, incorporating issues related to strategic change in that
organisation including how the change was managed and the leadership styles.
Due to the changes in the external environment the company face different challenges
and in order to face those challenges effectively the company has to implement some relevant
changes for which Marks and Spencer use different change management models that are
discussed below:
Lewin's 3-step change management model
Due to the significant changes in the external environmental factors the organisations
have necessity to quickly change its functions and operations at fast pace. Marks and Spencer
manage its change through the Lewin's change management model in order to flourish and to
mitigate the risk of disruption. Lewin's change management model is a framework for the
analysing and managing the organisational change in most simplest manner (Turner and et. al.,
2020). As per this model the M&S can make a successful change by following three steps that
are discussed below:
 Unfreeze: this is the stage where the leaders of the company ensures the readiness among
the employees for the change. For this the needs for change is identified with the suitable
reason. Next is, leaders of the company draws the attention of the employees for the
support for which main stakeholders are analysed (Nitturi and et. al., 2021). Then with
effective communication strategy the need for change is communicated all across the
workplace of marks and Spencer. In context of Marks and Spencer the company has been
facing the issue of resistance of employees for implementing the change of operating
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online business. In order to effectively handle this issue related to the strategic change of
e-commerce business through company’s website the company at this stage of change
management aware the employees regarding the need for the change. This stage will help
the company in making the employee’s ready for the change and also through this stage
the company’s stakeholders with their transformational leadership style motivate the
employees to adapt the change for the need as their of change in order to mitigated the
issue of employees resistance and to motivate them to implement successful change
(Bissett, 2020).
 Change: When the employee’s are unfrozen and ready to accept the change and move
towards the state of the change. This stage is sometimes challenging for people as they
are uncertain for the future because to implement new change time is required to grasp
change and to adjust with it (Dagnone and et. al., 2020). When the employees are made
aware of the need and urgency of the change the implementation change become next and
most essential stage. In context of Marks and Spencer during this stage the company
encounter the issue of employee’s mismanagement in building a team for the
implementation of change. Therefore to mitigate and handle this issue with care the
company has implemented this model of change management where in this stage the
employees with right skill set will be build a team for the successful implementation of
the change. Thus, at this stage Marks and Spencer will use its delegative leadership style
by focusing on delegating the initiatives to the other members of the team. This helps the
company in creating positive environment for the change management (Bal, and Izak,
2021). Thus, in this stage Marks and Spencer will implement the change of enhancing its
digital capabilities by making partnership with Ocado for the online food service and
also through this leadership style the company will be able to building an effective team
for the change management.
 Freeze: the stage where the Marks and Spencer reinforcing and implementing the desired
changes. Also confirms that they are effectively accepted by the employees, utilized all
the time in company and is effectively incorporated in the organisational culture
(Gilsonand et. al., 2020). The stage where the change implemented is been completely
rein enforced into the system of the organisation for its better working. In context of the
Marks and Spencer at this stage the company faced the strategic issue of developing
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strategy that could complement both change and organisational culture of the Marks and
Spencer. This issue during the freeze stage where the company will implement the
change into its organisational culture for the future can lead to imbalance of
organisational culture and the change of starting online food service through digital
medium. Thus to resolve this issue the participative leadership style will be used by the
Marks and Spencer as when the employers and employees will work together motivation
will be more and also the there is less stress of new change as when the team of
employers and employees work together than any new change is easy to be handled
(Rathee, and Rajain, 2020).
It is critically evaluated that this change management model used by the Marks and Spencer
is easy simple with few steps to understand and implement the change effectively within the
organisation. But, it is also evaluated that during the refreeze stage of this model the employees
are highly worried for new shock of change which decrease the performance of the employees.
Evaluate the impact of organisational culture on the change management programme and
develop a suitable change management plan
Organisational culture is defined as the accumulation of believes, values, expectations as
well as practices that assist in providing direction and information to all team members. It is very
important that a company must possess positive workplace environment so that employees could
feel valued in the organisation (Doppelt and McDonough, 2017). The organisational culture
plays very important role in procedure of executing any changes within a company. The culture
is vital as it helps in creating environment within a company and impacts the nature of long-term
goals. The impacts that company culture would have on change management programme are
discussed below:
Employees performance
Workforce of the company play vital role in building positive work culture environment
in the company. If the employees are not satisfied with their job role than they will resist the
changes that company is thinking to bring for advancement. The employees will create hurdles
and barriers as well as will not provide effective support to adopt new modifications. Hence, it is
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very important for company to implement participative leadership style so that employees could
participate in business activities and feel satisfied with their job role.
Rigid to change
If the organisation is not ready for any change than it could also impact the procedure of
executing change. The culture of the organisation must be flexible while adopting changes so
that they could survive smoothly in that procedure (Prasad, 2020).
Diversity
If the company lacks diversity at workplace than it would not be able to understand why
changes are needed in the market. It is very vital that organisations must have diverse culture
environment at their workplace so that they understand requirements and demands of every
community. This is necessary to determine the needs of every community in the society so that
according to that companies could bring modifications within themselves. Therefore, it is very
essential for companies to recruit people from different background so that they could examine
various needs of diverse community.
Training and Development
If there is no basic and required training programmes are organised by companies to
develop skills of their employees than it could impact majorly on change management procedure.
It is very essential for companies to provide proper training and development programmes to
their employees for the changes it is thinking about. If they do not provide them proper training
than employees will not be able to perform well during the procedure of implementing changes.
Therefore, it is very vital for company to provide proper guidance and training to employees so
that they could adopt changes effectively.
Change management Plan
Change management plan is describes as a procedure of designing a roadmap which
explains what steps does the organisation will take to implement modification procedure.
Whenever a change is executed by companies at their workplace, it is very important that they
must implement change management plan so that they could avoid any miscommunication or
disruption and assist workforce to adapt those modifications (Husain, Bloom and McPherson,
2020). There are various challenges a company could face while implementing changes, hence it
is very crucial that these changes must be planned so that they could operate their business
smoothly. For an organisation to grow and create sustainable competitive advantage it is very
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necessary to embrace changes. For a company its employees are considered as a valuable asset
because through them it could be able to accomplish desirable goals. Hence, it is very crucial for
company to gain support of workforce and make them adaptable for these changes. Therefore, it
is very vital that an effective and organised change management plan must be executed in
company.
A successful change management plan would not only helps in effective transformation
in the company but also assist it ease employees into new business horizons. Change
management plan are executed by companies to embrace and encounter modifications within
their business. It helps them in adopting tools and procedure needed for managing workforce
towards changing environment (Hudson, 2020). The main purpose of adopting change
management plan is to meet various objectives such as facilitate communication, managing
barriers, show progress, organise resistance, provide reinforcement and give a case for change. It
has been observed that majorly change initiatives become unproductive or face failures because
of negative attitude of employees and unplanned systematic approach. The people associated
with organisation become unsure about how changes will impact on their performance. By
implementing an effective change management plan a company could be able to make surety
about employees are provided with proper guidance throughout change journey. Hence, it is
crucial to have an comprehensive and integrated change management plan in order to articulate
strategies, assisting workforce in understanding why change is mandatory and what will the
process holds for them in future.
To execute change management plan there are some procedure which Marks and Spenser
must execute while introducing its “Never the same again turnaround programme”. The steps for
this procedure to implement this modification are described below:
Define change and align it with organisational objectives
It is one of the most important aspect which is needed to execute changes that helps
organisation to conduct critical review against organisational aims and perform goals in order to
ensure modifications will take business operations in right direction (Tang, 2019). It is important
to make sure that company is moving forwards with changes while adopting ethical and
strategical approach. At this step the company has to convey why changes are needed and what
resources does the company requires to bring them. For instance, the respective company is
implementing this change because it wants to make company adaptable to new technological
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modifications and for bringing this change it will require resources such as advanced technology,
talented workforce, budget and others.
Identify impacts
After evaluating what changes the company requires and why it is needed along with
what resources will be used, the next step is examine what impact does this change would bring.
The company is required to make a review of the impact on every business aspect and how it will
cascades by the structure of company to that individual (Marianne, 2018). The key aspects
which company has to consider while bringing change includes to whom change will impact the
most, what would be consequences of change and how well this change will be received. For
instance, in respect to selected organisation the required change will majorly impact on their
traditional offline stores. The effects this change will bring includes enhancement in online
shopping, digitalization and advancement in technology of company. The changes will be
positively received by customers and employees as after COVID-19, people prefer to purchase
goods online as well as employees want to avoid gatherings at their workplace.
Develop a communication strategy
To implement changes successfully it is very important to build an effective
communication pathway between organisation and its employees. An effective communication
strategy involves how information about change will be communicated and through which
channel. The key queries that arise during this step is how will feedbacks be managed and how
information about change would be communicated (Dhilip and Babu, 2019). The respective
company in order to bring selected change initiative has to take constant feedbacks from its
employees so that they could execute desired modifications. The feedbacks help them in creating
effective communication pathway and assist them in successfully implementing those changes.
The company could inform employees about change through making itself clear and remain
honest towards them. The organisation has to tell employees about what their future roles and
responsibilities would be in the change process.
Provide training
Whenever any company is bringing changes it is very crucial to train their workforce
according to that. The company has to teach them about skill and knowledge that would be
required to execute these changes effectively. Training and development programmes assist
companies in improving their workforce engagement and interest towards achieving desired
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goal. The key aspect which the company is needed to consider includes which training method
will it use and would be most effective and what skills as well as behaviour of employees is
required to accomplish best outcomes (Crook, 2020). For instance, the respective company in
order to execute the required modification has to organise training and development programmes
for its employees. The company has to implement training programmes related to technology
which could help employees to enhance their knowledge about advanced technologies. The
employees have to learn new skills and upgrade their capabilities to handle technological
advancement. Employees also have to become more patient and adaptable to deal with customers
while their online purchasing.
Execute support system
It is very crucial for companies to build an effective support system so that its employees
could adapt changes and get emotionally stable during the process. It is also very vital for
organisations to create proficiency of workforce behaviour along with required skills such as
technical skills so that they could achieve desired outcome successfully. To make employees
productive during executing changes it is necessary to provide them support while performing
their roles or could create a open door policy. The key questions that arise at this step includes
what type of support would be most effective and where this assistance will be most required
(Mulambya, 2020). For instance, the selected company for bringing respective change needs to
provide support system to its employees. It has to supervise activity of every individual in order
to understand what they are feeling and whether they are satisfied with the change or not. The
managers could constantly ask from employees about their experience during this change and
provide them proper guidance for adapting modifications. If an employee is unable to process
through this change or does not able to grasp full knowledge about technologies than it becomes
accountability of manager or supervisor to make them feel comfortable by giving them right
direction.
Measure change procedure
While implementing change management process a proper framework must be executed
by organisation in order to measure impacts that change could bring. It is also very crucial to
monitor these changes because it will help the company in exploring opportunities (Freeman,
2018) . The key questions which the company is required to define some queries which includes
how changes assist in accomplishing business goals, what could the organisation would have
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done differently and was the change management procedure a success. For instance, the
respective organisation has to examine how the shifting from traditional shopping to online
purchasing has helped it in accomplishing profitability. The company must also examine how it
could execute the desired changes in more distinctive ways and find out how the change
management procedure has helped it in getting competitive advantage.
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CONCLUSION
From the above discussion it has been observed that change management plan is very
vital to implement for a company in order to enhance their employees engagement and provide
sustainable competitive advantage. It is also very necessary that a company must initiate changes
so that it could handle external environmental factors that could impact its business operations. It
has also been observed that companies must have positive work culture environment so that it
could make its employees adaptable to new changes. It has also been evaluated that organisations
should effective change management plan through providing proper training and communicating
with employees about change. It has been examined that while brining changes companies face
many issues or barriers which they could minimize through implementing effective leadership
styles and strategic management procedure. In the end it could be said it is very crucial for
companies to adopt changes occur in market so that they could be able to accomplish desired
success.
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