Bounce Fitness Australia: Organizational Change Management Project

This project focuses on leading and managing organizational change at Bounce Fitness Australia, a fitness business with multiple branches. The project begins with identifying change requirements and opportunities, including the need for a centralized management structure and adherence to Fitness Australia guidelines. It analyzes the external environment, considering factors like the carbon tax and the growing fitness industry. The project includes minutes of meetings with stakeholders to discuss training options and prioritize change needs, such as streamlining management and ensuring staff qualifications. A cost-benefit analysis is conducted for various change options, followed by a risk assessment and identification of barriers to change. The project outlines a communication plan and email templates to facilitate the change process. The overall aim is to develop and implement a comprehensive change management strategy to enhance Bounce Fitness's competitiveness and ensure its long-term success.

Project: Lead and manage Organizational Change
Organization: Bounce Fitness Australia
Project Team:
Role Name ID
Change Management
Manager:
Territory Manager-Brisbane
Territory Manager-
Melbourne
Territory Manager- Cairns
Territory Manager- Sydney
Project Prepared By:
1.
2.
3.
4.
5.
Part A: Identify change requirements and opportunities
Introduction:

Bounce Fitness is a Fitness business with branches in Brisbane, Cairns, Sydney, and Melbourne.
At present, each branch operates semi autonomously, making their own decisions and has
resulted in a lack of standardization in how the business is run and managed. The business would
like to register with Fitness Australia, but has to meet its stringent requirements on staff
qualifications and continuous training. A budget of $ 20000 has been allocated for the purposes
of managing the envisaged change. This report articulates the strategic plans for Bounce Fitness
in order to identify gaps for change and justify the need for change. The report also evaluates the
external environment and how it can potentially impact the business and demonstrates
consultation with other managers to prioritize the change plans and implement the changes,
taking into account training costs and doing a cost benefit analysis of undertaking the strategic
change versus not undertaking the change at all.
Analysis of Strategic Plans, for Changing needs:
Objective 1: Have a centralized management structure and decision making process
Objective 2: Ensure trainers meet minimum certifications as per Fitness Australia guidelines
Objective 3: To evaluate external factors and how they can influence the business and thereby
identify opportunities for change
Objective 4; Cost effectively manage the change process
Objective 5; To cost effectively and efficiently manage the change management project using
project management skills
Comparison of Policies against the new strategic Objectives:
Compare the existing policies and practices at Bounce Fitness against the strategic objectives to
identify where changes are required. Document the comparison in a table. You can use the
following template if you like:
Existing Policies and
Practices
Strategic Objectives Required Change (Gap)
Each branch make their
own decisions and operate
Implement a streamlined and
centralized management structure
Have a unified management
and decision making

semi autonomously and decision making process organizational structure and
culture
Experienced staff not
needing new qualification
requirements
Trainers to obtain minimum skills
and expertise through training
according to Fitness Australia
requirements
Develop a uniform skills and
qualifications requirement
that meets Fitness Australia
Code of Practice
The business looks at
internal factors mostly in
strategic decision making
Competitive attributes and
opportunities in external
environment
Environmental analysis to
identify opportunities and
manage any risks/ threats to
enhance competitiveness
Resistance to change
Cost effective change management Use project management
approach and change
management plans
Report on External Environment impact on the Achievement of new strategic Objectives.
Introduction of the carbon tax affects the fitness industry in terms of energy sources and
equipment used that has resulted in reduced profits by between 4 and 7%. increased costs in
installing energy efficient equipment and retro fitting existing equipment, including cooling
requirements that increase costs (Morgan 2012). Complying with Fitness Australia Code of
practice will lead to increased costs, though being registered with it as having met the
requirements will result in higher quality of service and customer satisfaction that will likely
increase revenues (Janis 2015)
Australian economy is on the rebound and people will invest more in their health and fitness; the
industry is expected to continue growing as Bounce Fitness will benefit from a stable and
growing economy (Stewart 2017)

Gym membership is growing in Australia as are job opportunities as the fitness craze continues
to grow in Australia. There will be tighter regulations that will result in more qualified
professional fitness trainers. Wearable technology is projected to continue growing and will have
a significant impact on the fitness industry. Further, non-equipment fitness training with concepts
such as Yoga will increase, as are traditional areas of strength training, weight loss, circuit
training, and medicine training will continue to grow, according to Berry (2017). More training
centers will have to get their fitness instructors certified as per the Fitness Australia code of
practice requirements
Minutes of the Meeting with Stakeholders for finding out the major change needs and
discussion for training options and costs involved:
Wearable technology will be used more by fitness enthusiasts and so fitness regimes must be
effective as wearable technology monitor progress in any fitness regime. Non equipment
training like body weight training and Yoga will attract more enthusiasts. There will be
requirement for professional and experienced fitness instructors and these are necessary given
exercise will be treated as medicine in the near future. There will be need for functional fitness
by clients and growth in group and group personal training and outdoor fitness activities such as
jogging, further reinforcing the need for experienced qualified fitness professionals. Modern
equipment with low carbon footprint will be required for emerging fitness demands in circuit
training, strength training, and older adults fitness programs. Wellness coaching will be in
demand as will be workplace health promotions; these will require trained professionals and a
new marketing model targeting corporates. With more graduates in sports science expected to be
churned out, existing staff must have the highest competence levels in order to remain relevant.
Fitness will continue being a lifestyle choice and so demand for fitness will increase (‘Fitness
Australia’ 2017). Training will thus be very important; training can be part time, full time, or
online as depicted in Appendix I with associated costs
Minutes of the meeting with other managers to discuss and prioritize the Change
requirements:
Agenda

(1) Prioritize change requirements
Personnel manager proposed and was unanimously supported on the need to have all fitness
instructors meet the Fitness Australia standards and have enhanced professional skills in line
with the market trends
(2) Change management
It was discussed and agreed unanimously that the change process be managed effectively for the
best outcomes and for objectives to be met
(3) Training requirements
All staff that lacked the minimum training certification (certificate III) had to undergo the
training at the company’s expense; there was unanimous agreement on this
Streamline management and decision making
Administrative manager proposed and was unanimously supported on then need for streamlining
management and decision making and using information systems in management
(4) Registration by Fitness Australia
It was agreed unanimously that all effort be placed in meeting Fitness Australia standards to gain
registration
(5) New Opportunities
New opportunities exists in Yoga, group personal training, outdoor training, use of technology in
training and social media to market the business and interact wit customers
Resolutions adopted and meeting adjourned
6. List of Change Requirements in the order of priority:

(1) Streamline and centralize management structure and decision making process
(2) Implement an effective change management strategy by involving all staff, explaining the
rationale for the changes and getting their views with the aim of having them take
ownership of the change process
(3) Get all staff qualified as per Fitness Australia requirements by helping them choose the
most convenient training regime for minimum and continuous training
(4) Identify and take advantage of existing opportunities and leverage technology

Part B – Develop change management strategy
Cost Benefit Analysis for Change requirements:
Change Option
Cost–benefit analysis
Cost Benefit Outcome
1. Streamlined and unified
management structure
$ 5000 Effective decision
making, unified
corporate culture
Enhanced customer
service, increased
efficiency, more
customers
2. Implement change
management strategy by
training and sensitizing staff
on them need for changing
how things are done and
why they need professional
certification and seek their
opinion
$ 2500 Staff will feel involved
in the change and not
feel threatened by the
change and take
ownership of change
initiative
Smooth change
management and
reduced resistance to
change. Improved
organizational
performance. Creation of
a new brand identity and
ownership of new
strategic objectives by
staff

3. Get all staff to be trained
to obtain minimum
Certification (certificate III)
and
4. Register business with
Fitness Australia
$ 9000
$ 3000
Have well qualified staff
that will help company
take advantage of new
opportunities such as
corporate fitness
training
Have all branches
registered and enjoy
benefits of membership
to Fitness Australia
Increased customer
satisfaction and retention
Increased clientèle and
hence increase revenues
and profits
Industry recognition for
quality, attract more
customers and attract the
best trained staff
Risk Analysis:
Risk assessment plan
Associated
risk/s Consequence Likelihood Risk level Risk Priority Risk control
Experienced
staff refuse
any training
Inability to get
registration by
Fitness
Australia
High Very High High Change
management
Flexible study
for their
training

Costs are
overshot
(beyond
budget)
High costs that
eat into
envisaged
benefits
High High Very High Use project
management
principles and
stick with
project
schedule
Changes fail
to increase
clients and
revenues
significantly
to justify
expenditure
Losses and
failure to
achieve
objectives
High Medium High Exhaustive
prior research
and market
analysis
Barriers to Change and solutions to address the barriers:
Barriers to Change Strategies to address barriers
Resistance by staff to change Involving staff and sensitizing them on need
for change (effective change management
strategy)
Lack of support by top management and
decision makers due to fears on resource
sufficiency
Effective stakeholder management and
engagement
Fear to venture into new unknown territory Comprehensive research and having an
actionable risk management strategy
Politics Objectivity and setting SMART change

objectives and strategies
Lack of the right talent to manage change Hire qualified people to manage change and
use change management principles and
practices
Email to the Team: attach the copy of the email.
See Appendix II
Communication Plan:
the communication
that needs to take
place
the messages and
information you will
give
the people you need to
communicate with
how you will
communicate it i.e.
activities,
opportunities,
methods, media
Staff meeting face to
face communication
The need for change
and new strategic
objectives
All the staff,
especially fitness
trainers
Staff retreat meeting
Consultation with
stakeholders
To gain their support
and approval for
changes to plan
Stakeholders like
company CEO and
senior management
E-mail
face to face meetings
Written memos
Consultation with
other managers
Get agreement and
consensus on
activities, objectives,
and strategies
Other managers
involved in the project
E-mail
Written memos
Minutes of meetings
Face to face
Involve branch
managers
The need for
streamlining decision
making and
management
Managers of all
branches
E-mail
memos
face to face meetings

The public and
Fitness Australia
Clarifications from
Fitness Australia and
Communicate New
developments t
customers
Staff of Fitness
Australia
Company clients
E-mail
face to face meetings
(Fitness Australia)
Social media
(Customers)
Change Management Project Plan:
New Vision:
To adopt a company wide streamlined and unified management structure that makes use of
management accounting in decision making
Have he best qualified and experienced staff as fitness trainers
Take advantage of opportunities in the environment and interact more with customers through
social media
Key deliverables
Change the management and decision making structure
Have all fitness staff trained and adopt continuous training
Increase customer base and revenues as well as profitability
Procedure:
Use information systems for streamlined management and decision making and manage the
change effectively
Sensitize fitness staff that are not yet qualified on the need for them to get certified and
continuously improve their skills

Adopt social media as a marketing and customer service platform to ensure customer satisfaction
and market the business
Key Areas:
Management structure and style
Staff training and staff skills
Customer interaction and how to identify opportunities in the market
Work Breakdown Structure including schedules, milestones, roles and budget
Risk schedule: