Change Management and Leadership: Lion Nathan Report and Analysis

This report provides a comprehensive analysis of change management at Lion Nathan, a beverage and food company operating in Australia and New Zealand. The report examines the challenges Lion Nathan faced in adapting to changes in the competitive market, particularly concerning company culture and employee behavior. To address these issues, the organization implemented change management theories and leadership models, specifically utilizing the McKinsey 7S model. The report delves into each element of the 7S model—strategy, structure, systems, skills, staff, style, and shared values—to illustrate how Lion Nathan sought to align its operations and culture with the demands of the industry. The analysis highlights the importance of strategic planning, organizational structure, efficient systems, employee skills and recruitment, leadership style, and shared values in driving successful change management and achieving business objectives. The report concludes with recommendations for Lion Nathan to further improve its change management practices.

Change Management

EXECUTIVE SUMMARY
Change management is the systematic way of changes which took place in organisation.
In order to survive in competitive market, it is very essential for organisation to adopt changes.
In this report, Lion Nathan has faced issues in change culture and behaviour of employees due to
change management. In order to resolve issues, they have use model of change management and
change leadership for achieving goals and objectives in better and effective manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Change management is defined as discipline which guide organisation to prepare,
support, equip employees for successfully adopt changes so that business can drive their growth
and success (Booth, 2015). It provide structured approach in order to help and support
individuals from current states to future states. The main reason for change management is
implementation of strategies for effecting, controlling and helping individuals to adapt changes.
It is very important for business to move with change situation. This assignment is based upon
case study of HRM and Change at Lion Nathan. The respective organisation was established in
1923 which is beverage and food firm operating business in New Zealand and Australia. It
mainly deals in beer, dairy, juices, wine, spirits and so on. It has also gone through changes
where problem is solved by applying theory and models of change management and change
leadership along with recommendation provided for in order to solve issues and improve their
business.
MAIN BODY
With rise in business in beverage sector, changes took place. As food and beverage
industry mainly focus on quality which should be maintained by each and every organisation.
The demand of consumer rise and prefer to have organic and fresh food and drinks. Due to this,
the existing and new business need to change their management for fulfilment of customer's taste
and preferences (Cameron and Green, 2015). This leads to rise in competitive among each other.
Here, Lion Nathan has also gone through phase of change management for survival and growth
in competitive market. This respective organisation has faced issue of change to company culture
and behaviour. It was major issue which leads business to change their existing culture and
behaviour of employees for survival and growth. In order to solve issue, change management
theory or model leadership style has been used by organisation. The model of change
management and change leadership are described below:
In order to solve issue of Lion Nathan, McKinsey's 7s model of change management has
been applied which is described below:
McKinsey's 7S model
This model was formed by McKinsey's consultants in 1980s which is strategic planning
tools (McKinsey 7s Model, 2018). It is used for organisational change, implementation of new

strategy, identification of areas which can be changed in future. There are seven areas which is
divided into hard and soft. They are as follows:
Strategy- It is plan formed by Lion Nathan for achievement of competitive advantage
and successfully compete in market. This is long term vision and mission of organisation. As per
size of organisation, strategy are formulated for growth and success in competitive market. If
Lion Nathan make short term strategy then it is regarded as poor choice of organisation which
does not align with other areas of change management model. While formulating strategy, it is
very essential for firm to consider each and every factors so that better survival can be made. The
respective organisation has faced problem in existing culture and behaviour due to which goals
and objectives did not achieved timely (Doppelt, 2017). Lion Nathan deals in food and beverages
industry which requires changes on frequent basis for survival in competitive and struggling
market. In order to solve issues arise in corporation, it has formulated new strategy for business
operations and activities. They focus on three pillars for solving problems such as creation of
purpose, vision & value, development of leadership capability and reinforcement of behaviour.
This strategy has been supported through core values such as acting with integrity & passion,
achieving together, sociable and everyone understand behaviour. If manager of Lion Nathan
consider such points while formulating strategy then it can solve arise problem in business.
Structure- It is defined as sections of business and units which are organised in proper
manner and including information that is accountable from one to another. This is also called
organisational chart of business. This structure can be change with help of top management. The
structure of Lion Nathan is large as there are number of people working in organisation. With
rise in development and growth, food and beverages sector has increased a lot. This organisation
was formed on basis of old culture and behaviour which need to change as per current trends and
technology. With the following of old concept, organisation has gone through issue stage in
competitive market. With help of this change management model, it has to modify their structure
which is required in current scenario and market. By changing structure help organisation to
follow culture and change behaviour of employee towards their work and commitment (Hamraz,
Caldwell and Clarkson, 2013). There are more than 3200 employees working in respective
organisation for growth and survival in competitive market. It is essential for market leaders to
use transformational change so that changes can be done as per requirement. Here, manager

should analyse their business first and according to size, best and suitable structure should be
adopted for running activities and operation in changing market.
Systems- It is defined as process and method of organisation which depict daily task of
business and way of taking decision. It is very essential for Lion Nathan to have effective and
efficient system in organisation. It is considered as place where employee spend their time for
achievement and enhancement of their skills, knowledge (Hayes, 2018). For developing system,
manager should possess skills and knowledge to make it in better way. Lion Nathan has different
system from others where manager believe function of HR management is core to business
success in terms of people and organisational coaches, strategic partners, employee champions.
In order to solve issues of culture and behaviour of staff they have change their style. For
improving core behaviour of staffs and employees, they have used selection tool for recruiting in
system for development. They have also integrated talent management system in Lion Nathan
through use of technology. This includes learning and development, 360 degree feedback,
reward and remuneration of system for improving employees to perform better with change
management. They have also improve their HR system, policies, plan, employee engagement and
other for surviving in change management. It is very important for Lion Nathan to analyse
market first then make changes according in their system for achievement of goals and
objectives. In this way, system of Lion Nathan should be modified for surviving in change
management world.
Skills- These are abilities of firms which is required by each and every employees and
staffs for performing well (Kash and et. al., 2014). It also includes competence and capabilities.
It is very important areas of change management theory. The manager and top level superiors of
Lion Nathan should possess effective and efficient skills in order to adopt change management
and make changes accordingly. The skills developed by manager after performing various
activities and operation can help respective organisation to adapt change management and make
changes accordingly. As skills of every individual varies from each other which helps in making
effective decision for business. With change, organisation has faced culture and behaviour issues
in their business. The CEO of Lion Nathan has designed and implemented HR initiatives in order
to lead position in market with help of their skills and knowledge. If culture of organisation
changes then behaviour of working forces also change to perform in better manner. Skills helps
in achievement of goals and objectives. In order to cope up with issues and change management,

it is responsibility of human resources to conduct training and development for their employees
and staff to improve their skills and knowledge. They should be provided with task which
requires use of skills so that their performance can be evaluate and accordingly work should be
assigned and training should be provided.
Staff- It is the elements which focus on number and types of employees required in
organisation. It also focus the way of recruitment, training, motivation and reward of employees
(Langley and et. al., 2013). There are more than 3200 employees working in Australia and New
Zealand branch of Lion Nathan. It is large organisation which is dealing in food and beverage
industry. This requires skilled staff for work performance and achievement of goals and
objectives. Due to change management, it has face culture and behavioural issue for running
business in effective manner. Thus, in order to overcome such problem, manager of Lion Nathan
has develop recruitment strategies while recruiting staffs in their organisation. They develop
checklist of core behaviours which add value to consumers and firm. This is selection tool which
assist in identifying top candidates. They hire high potential staff having learning ability,
traditional strategic ability, emotional intelligence. They are using technology for talent
management. It can provide help to improve learn and develop, performance improvement and
others. The HR manager are overall responsible for recruiting and selecting effective and
efficient staff for running business in systematic manner. If organisation change their culture
then behaviour changes accordingly. They believe in providing high quality goods and services
to consumers. With implementation of change, it has effectively adopted business model and
growth strategy for betterment of results.
Style- It is defined as way where organisation is managed by top management, their
interaction, methods of taking actions and value (Matos Marques Simoes and Esposito, 2014). It
is the style of manager and leader for work performance. Here, Lion Nathan need to have
effective style for managing business in competitive market. When issue of culture and
behaviour has arise in respective organisation, leader and manager committed towards change
management. The leadership development was initiated for adopting constructive leadership
style. In order to cope up with these, they have change their style from command and control to
coaching and resulted oriented. Before change, business has adopted command and control
where they provide guidance to their employees and staff and controlled them in better manner.
This does not provide effective result to organisation for increasing their profits and growth. Due

to change management, they have implemented coaching and result oriented style for firm where
they focus on providing coaching to their each and every staff for better performance against
their competitors. Through this they can easily provide sustainable results to company. The style
of leadership can be very from one to another because of organisation size and structure of
business. There are other types of management and leadership style which are designed for
organisation to work in systematic manner. Sometime, style can be changed according to arise
situation in business.
Shared Values- It is defined as norms and standards which helps in guiding staff
behaviour and action of company. It is also considered as foundation of every organisation. It is
the value on basis of which organisation run their business, activities and operations. The shared
values should follow ethics and moral of business (McCarthy and Eastman, 2013). If values of
firm are good then they can create goodwill and image in competitive market. With rise in
competition, Lion Nathan has gone through change management situation. It has face issue in
their existing culture and behaviour of employees working in business. The main reason for such
issues is due to following of old concept from long time. As environment is dynamic which
keeps on changing frequently and existing organisation has to bring changes in their business in
effective and efficient manner. Here, Lion Nathan has bring changes in their human resource
strategy, company strategies and others to survive in competitive market. Lion Nathan has build
core values for achievement of goals and objectives. They have made various changes in their
plans, policies and strategies according to shared values in business. As they believe these key
elements add core value to business to work in effective and efficient manner. They build strong
leadership capability and capacity for improving change management in organisation. These set
standard and norms helps in creation of values and goodwill for firm in competitive era for
survival and growth business in competitive market.
The above used model for change management can help Lion Nathan to solve issue
which arise in business due to dynamic change. The major issue occurred because of following
of old culture and behaviour of employees for performing work in organisation (Pardo-del-Val,
Martinez-Fuentes and Roig-Dobón, 2012). In order to find issues and solve, various strategies
were used by business for better result.
Lion Nathan has not only face issue in change management but also in change
leadership. Before implementation of change management, Lion Nathan has followed control

and command leadership style and after change, it has followed coaching and result oriented
style. Here, command and control leadership style is defined where manager of organisation
provide command and direction for better work performance and control it in systematic manner
(Rafferty, Jimmieson and Armenakis, 2013). They mainly focus on commanding work to
employee for better work performance and controlled it. This is old concept which is not suitable
for respective organisation because of change management so they change it. Currently, they
follow coaching and results oriented leadership where each and every employees and staff are
provided with coaching for solving issues and problems. This helps them to perform work in
better and effective manner so that they can achieve their set target. After performance of work,
manager evaluate results whether goals are achieved or not. The issue which firm faces was
related with culture and behaviour of people towards work in order to solve manage has change
their leadership style to get appropriate solution to problem in competitive era.
Recommendations
In order to solve issues of Lion Nathan, there are some recommendation provided to
organisation to get out of problem. They should analyse market on frequent basis to know about
changes took place in market and strategy adopted by competitors. This can help them to make
alternation in their existing plans, policies and strategy for effective outcome. It is also
recommended to respective organisation to make change in business with change in time and
situation by adopting new and updated technology for better work performance. It is also
recommendation to organisation to conduct meeting on regular basis with staff to know about
their views and opinions with team members so that goal and objectives of business can be
achieved.
CONCLUSION
From above report, it can be said that change management is very essential for
organisation to survive in competitive market. If company does not accept change in their
business then it has to face loss and cannot gain success and growth. The organisation has faced
issue of change in culture and behaviour because of change management. In order to cope up
with such situation, they have made changes in their plans, policies, strategies, values and others.
They have change their leadership style from command to coaching for proper guidance to
employees and staff for achievement of goals and objectives.

REFERENCES
Books and Journals
Booth, S. A., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Hamraz, B., Caldwell, N. H. and Clarkson, P. J., 2013. A holistic categorization framework for
literature on engineering change management. Systems Engineering. 16(4). pp.473-505.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Kash, B. A. and et. al., 2014. Success factors for strategic change initiatives: A qualitative study
of healthcare administrators' perspectives. Journal of Healthcare Management. 59(1).
pp.65-81.
Langley, A. N. N. and et. al., 2013. Process studies of change in organization and management:
Unveiling temporality, activity, and flow. Academy of management journal. 56(1). pp.1-
13.
Matos Marques Simoes, P. and Esposito, M., 2014. Improving change management: How
communication nature influences resistance to change. Journal of Management
Development. 33(4). pp.324-341.
McCarthy, C. and Eastman, D., 2013. Change management strategies for an effective EMR
implementation. Himss.
Pardo-del-Val, M., Martinez-Fuentes, C. and Roig-Dobón, S., 2012. Participative management
and its influence on organizational change. Management Decision. 50(10). pp.1843-
1860.
Rafferty, A. E., Jimmieson, N. L. and Armenakis, A. A., 2013. Change readiness: A multilevel
review. Journal of management. 39(1). pp.110-135.
Rainey, H. G. and Fernandez, S., 2012. Managing successful organizational change in the public
sector. In Debating Public Administration (pp. 7-26). Routledge.
Online
McKinsey 7s Model. 2018. [Online]. Available through:
<https://www.strategicmanagementinsight.com/tools/mckinsey-7s-model-
framework.html>.