Leading Change in Organizations: Case Studies of Lexus and Jaguar

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UNDERSTANDING AND LEADING CHANGE

Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
P1 COMPARE DIFFERENT ORGANISATIONAL EXAMPLES WHERE THERE HAS BEEN AN
IMPACT OF CHANGE ON AN ORGANISATION’S STRATEGY AND OPERATIONS.....................4
M1 ASSESS THE DIFFERENT DRIVERS FOR CHANGE IN EACH OF THE GIVEN EXAMPLES AND
THE TYPES OF ORGANISATIONAL CHANGE THEY HAVE AFFECTED.......................................5
D1 DRAWING CONCLUSION AND RECOMMENDATIONS FOR EFFECTIVELY PLANNING
CHANGE AND APPLYING CHANGE IMPACT ANALYSIS..........................................................6
LO2........................................................................................................................................... 8
P2 EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF CHANGE
AFFECT LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS WITHIN AN ORGANISATION...8
P3 EVALUATE MEASURES THAT CAN BE TAKEN TO MINIMISE NEGATIVE IMPACTS OF
CHANGE ON ORGANISATIONAL BEHAVIOUR.......................................................................9
M2 APPLY APPROPRIATE THEORIES AND MODELS TO CRITICALLY EVALUATE
ORGANISATIONAL RESPONSE TO CHANGE...........................................................................9
LO 3........................................................................................................................................ 12
P4 EXPLAIN DIFFERENT BARRIERS FOR CHANGE AND DETERMINE HOW THEY INFLUENCE
LEADERSHIP DECISION-MAKING IN A GIVEN ORGANISATIONAL CONTEXT........................12
M3 USE FORCE FIELD ANALYSIS TO ANALYSE THE DRIVING AND RESISTING FORCES AND
SHOW HOW THEY INFLUENCE DECISION-MAKING............................................................13
D2 CRITICALLY EVALUATE THE USE OF FORCE FIELD ANALYSIS IN THE CONTEXT OF
MEETING ORGANIZATIONAL OBJECTIVES..........................................................................14
LO4......................................................................................................................................... 15
P5 APPLY DIFFERENT LEADERSHIP APPROACHES TO DEALING WITH CHANGE IN A RANGE
OF ORGANISATIONAL CONTEXTS.......................................................................................15
M4 EVALUATE THE EXTENT TO WHICH LEADERSHIP APPROACHES CAN DELIVER
ORGANISATIONAL CHANGE EFFECTIVELY APPLYING APPROPRIATE MODELS AND
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FRAMEWORKS....................................................................................................................16
D3 CRITICALLY EVALUATE THE EFFECTIVENESS OF LEADERSHIP APPROACHES AND
MODELS OF CHANGE MANAGEMENT................................................................................17
CONCLUSION.......................................................................................................................... 19
REFERENCES........................................................................................................................... 20
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INTRODUCTION
The report gives details about the effect of a change in the strategies of an organization
when compared to a different organization. The various drivers which lead to organizational
change are discussed in the report. There are various internal and external drivers which
cause a change in the organization. These drivers are examined with reference to its effect
on leadership, team and individual behaviors within an organization. Further, different
measures that can be taken to reduce the impact of these changes on the behavior of the
organization is evaluated with the help of different theories and models. The influence of
different barriers of change on the leadership and decision making in an organization is
explained in the report. Different leadership approaches are evaluated in order to deal with
the changes in the organization.
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LO1
P1 COMPARE DIFFERENT ORGANISATIONAL EXAMPLES WHERE THERE HAS
BEEN AN IMPACT OF CHANGE ON AN ORGANISATION’S STRATEGY AND
OPERATIONS
The organizational change is the transformation of a generally a large company where the
working methods, aims, business strategies, a framework of management, procedure,
processes, technologies or culture changes (Gartenstein, 2019). These changes can be
introduced in the company by unfreezing the organization, introducing new change and
refreezing the organization. The organizational changes made by Lexus and Jaguar are
discussed below along with their impact on the companies:
Operations and strategies of Lexus:
 Lexus is currently making many types of research regarding advanced safety systems
for the company through research and development programs (Lexus, 2019).
 The company is continuously making technological evolution with new features and
innovations in their machine and batteries.
 Computer Axial Tomography is the latest technological engine scanning technique
which is introduced by the company in its operations.
 Lexus has introduced LSS+ safety system in its cars along with evolving existing
features and developing other different new supportive systems (Lexus, 2019).
 Lexus LS is projected in the company which helps it in reproducing monotonous
driving situations and develop a smart warning system.
Impact of change on Lexus’s operations and strategy
 The technological advances act as continuous inspiration for constant innovation for
every company like Lexus. For example, the latest technology of CAT scanning
techniques which are derived from medical sciences not only beneficial for Lexus but
every other automaker company.
 Computer Axial Tomography (CAT) allows the company to investigate the inside of
an engine in 3D vision.
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 The advanced safety ensured by Lexus with its LSS+ safety system along with
providing intelligent driving assistance when needed. This technological
advancement is beneficial for every other automobile company in the industry.
 Lexus LS allows the company in exploring the working of drowsiness along with
developing a smart warning system.
Operations and strategies of Jaguar:
 Jaguar is known for continuous innovation and making technological changes in their
engines and car operations. AdSR or Adaptive Surface Response adopted by the
company which help in making required changes in the motor and brake of the
vehicles.
 For intelligence driving experience, Jaguar added XF technology in their vehicles for
making every journey safer, better connected and more enjoyable.
 The company has built one of the world’s most sophisticated Automotive Virtual
Reality testing workshops as a part of their another technological enhancement in
the company.
Impact of change on Jaguar’s operations and strategy
 The manufacturing innovations has reduced the time, expense and resources of the
company which results in overall profitability of the company.
 The company is providing better driving experience to its customers by the Adaptive
Surface Response technology which works at all speeds to support the driver in
adverse weather and on challenging surfaces.
 Jaguar is gaining customer loyalty with the help of these innovations and other
technological advancements.
M1 ASSESS THE DIFFERENT DRIVERS FOR CHANGE IN EACH OF THE GIVEN
EXAMPLES AND THE TYPES OF ORGANISATIONAL CHANGE THEY HAVE
AFFECTED
There are various factors which drive the intention of a company to make organizational
changes in its operations and working processes. Following are some such drivers which
motivate Lexus to make organizational changes:
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 In order to consolidate local and foreign administrative functions, Lexus made
changes in its organization and reconstructed Purchasing planning department into
the Purchasing Administrative Department.
 With the motive of dealing with the competitors, Lexus included Advertising and
Marketing Division, Japan under Toyota Marketing Japan Co. Ltd for making Japan,
the focal point of their marketing strategies.
 For the purpose of increasing better utilization of resources, significant changes were
made by the company where the sales functions were looked after by the business
development unit.
Drivers for change in Jaguar:
 The takeover of Jaguar by Ford lead to many organizational changes in the company
including the changes in order to make changes in traditional technologies and
manufacturing techniques.
 There are various internal and external factors which lead to the organizational
changes in jaguar which include maintenance of brand reputation, required
transformations, leading competitive position in the market, the introduction of new
management, etc.
 In order to enhance quality, customer satisfaction, and return on investment, the
new Board of Jaguar Halewood evolved a system of leading change management
strategies (Addy, 2013).
D1 DRAWING CONCLUSION AND RECOMMENDATIONS FOR EFFECTIVELY
PLANNING CHANGE AND APPLYING CHANGE IMPACT ANALYSIS
From the above analysis, it can be said that change is complex which cannot be made within
a day. Forgetting appreciable result of changes, the company need to implement a change
management process in an effective manner. Following are the recommendations given for
effectively planning the organizational changes:
 Identifying the need for change along with identifying relevant resources and
individual who will facilitate the process.
 Take the approval of stakeholders that include upper management and all those who
are directly charged with instituting the change.
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 Plan the change by building a roadmap for changes by integrating the change with
the organizational objectives and goals.
 Allocating useful resources for changes including infrastructure, equipment, and
software systems.
 Communicating the required changes with the employees and other payers of the
organization.
 Monitor and manage resistance to change and allocate budgets for the changes.
 Continuously review and revise the changes which are done in order to identify and
remove roadblocks.
The change impact analysis provides required understanding to identify the components
which result in a proposed change. It also helps in identifying all the models, files and
documents which need to be modified if the change is incorporated in the organization by
the team (Ward, 2017). Following are the steps which can be taken by an organization to
apply change impact analysis for introducing relevant changes in the company:
 The tasks which are required to be performed should be recognized in sequence by
interrelating them with each other.
 Further, Lexus should allocate resources that are required by the change and identify
the possible effect of a change on the organization.
 The related expenses involved in the changes that are to be made by Lexus should
be determined in advance.
 Placing the changes according to their priority by estimating the relative benefit,
penalty, cost, and technical risk and communicating the report of the impact analysis
to the stakeholders.
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LO2
P2 EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF
CHANGE AFFECT LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS WITHIN
AN ORGANISATION
Organizational change is a process where the working methods, culture or processes of a
company is changed by the management (Business Dictionary, 2019). Following are some of
the internal and external factors which drive change or affect the organization:
INTERNAL FACTORS or Internal Driving Forces
Company growth
The growth of a company is a desired internal factor which drives the motive for changes in
the gaols, strategies and other action plans of the company. Lexus is known for making
changes in their work operations in order to change their strategies and development plans.
It is believed that positive change brings growth for the company and keep the executives,
employees and the customers on their toes.
Innovation
Innovation is another internal factor which drives changes in an organization to remain
competitive in the industry. Lexus makes many changes innovation in its technologies to
improve their work performance and to deliver a better experience to its customers.
EXTERNAL FACTORS or External Driving Forces
Political Forces
The political forces of change include political activities of the area where the company is
situated which include trade barriers and political stability (Spacey, 2018). The functions and
operations of Lexus can be significantly be affected by the political forces of change along
with affecting the leadership of the company for attaining its goals and objectives.
Economic Forces
The economic environment of a company includes interest rates, economic stability and the
availability of funding that substantially affect its operations and day to day work which is
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another important driving forces for change. The economic factors which affect Lexus to
make significant changes in their operations which include economic slowdown lost market
share, high projected oil prices, increased population and commercial activities.
Technological forces
The technological forces of change include the introduction of new technologies, new
processes or method of production and new products which can bring positive change to an
organization (Noble, 2017).
P3 EVALUATE MEASURES THAT CAN BE TAKEN TO MINIMISE NEGATIVE
IMPACTS OF CHANGE ON ORGANISATIONAL BEHAVIOUR
Change is necessary for almost every business in order to remain competitive in this modern
world of innovation and technologies.
 Work in small doses
When any change is needed to be implemented in the organization, the employees
should not be overloaded with new work. When the change is introduced in
different small tasks, it becomes easier for the employees to absorb it all which
reduce the chances of resistance (McQuerrey, 2019).
 Communication
The change in the organization can be successfully introduced by the management
with the help of effective communication. The employee resists change when they
are ignorant about the relevance of the change and its future benefits for both the
employer and the employee (Ryan, 2018).
 Strategic Direction
Strategic direction to a change help in successful its implementation without any
barriers. This provides a roadmap for implementing change in the company which
guides the future actions of management in the direction of leading change.
M2 APPLY APPROPRIATE THEORIES AND MODELS TO CRITICALLY EVALUATE
ORGANISATIONAL RESPONSE TO CHANGE
Kurt Lewin change model is a very effective model of implementing organizational changes
successfully in the company. It consists of three main steps which are Unfreezing, Change
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and Refreezing which is very helpful for the leaders and managers. These steps of Kurt
Lewin change model are discussed below:
UNFREEZING
At this stage, management of the company realizes the need for the change in the current
processes which communicate the same to the employees and other stakeholders of the
company. Lexus needs to assess its current processes and practices which need to be
changed due to internal or external factors.
CHANGE
This s the stage where the required change is implemented by the company which is also
known as ‘move stage' as it leads to a relevant effect on the operations of the organization.
Lexus should implement the change at this stage within a short period of time for making
the employees aware of the importance of this change more quickly.
REFREEZING
At this stage, after the change is being successfully implemented, the new practices and
procedures are made the normal routine operation of the company. Lexus should make
proper arrangements to make sure that these changes are normalized in the company.
McKinsey 7s model
McKinsey 7s model is a very effective tool for analyzing the organization by its seven key
components such as strategy, structure, systems, shared values, style, staff and skills
(Jurevicius, 2013). This model can be applied to Lexus in determining its organizational
design which is discussed below:
 Structure
Lexus is a division of Toyota Motor Sales USA which is a wholly owned subsidiary of
Toyota Motor Corporation which is a lean organization.
 Strategy
The strategy of Lexus is focused towards continuous innovations and development
to provide a better experience to their customers.
 Systems
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The system of Lexus ensure clear direction to the employees and support them to
constantly improve, create a strong culture which brings competitive advantage.
 Shared value
Lexus believes in improving work quality of its employees and build up task culture in
its organization.
 Style
Lexus follows teamwork style of operation in its company where goals are discussed
with employees who work, humbly and seriously, believing in a brighter automotive
future.
 Staff
Lexus has a highly skilled workforce which is trained and knowledgeable and
available for 24 hours service.
 Skills
Lexus is highly skilled in its technological advancement which provides its
competitive position in the industry.
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