ILM Assignment: Change Management and Accountability at SANS, EPS

This report analyzes the need for change management within the Saudi Arabian Air Navigation Services Company (SANS), focusing on the Eastern Province Sector. It begins with a PESTLE analysis of Saudi Arabia to understand the external forces influencing SANS, followed by a SWOT analysis to identify internal strengths, weaknesses, opportunities, and threats. The report identifies the need for sustainable approaches to operations, particularly concerning environmental impact. It then outlines a plan for implementing change, considering human and financial factors, including management systems, processes, communication strategies, and technical skills. Communication strategies include stakeholder meetings, emphasizing the benefits of involvement, and communication from senior management. Finally, the report suggests using the McKinsey 7S model to bolster change management, covering strategy, structure, systems, shared values, style, staff, and skills to ensure successful implementation of sustainable practices. The report provides valuable insights into planning and managing change within the aviation industry context.

Running Head: CHANGE MANAGEMENT
CHANGE MANAGEMENT
Name of the Student
Name of the University
Author Note

1CHANGE MANAGEMENT
Response to Question 1: Forces for change
PESTLE of Saudi Arabia:
Political Factors: The country is headed by the supreme power of the King. King is
considered the governmental Head and the Chief of the state. Saudi Arabia does not have
specific political parties. The country experiences rare elections. The monarchy offers
stability in the country due to the absence of diverse views and power distribution.
Therefore, the political state of the country will support the growth and development
of the safety services of SANS.
Economic Factors: The country, Saudi Arabia, has the leading economy amongst the Middle
Eastern countries. Saudi Arabia is continuously growing due to the authoritative decision of
supporting large-scale public companies, effective financial and banking system. In the year
2017, the GDP of Saudi Arabia is 68,382.71 Crores USD. The GDP rate has reflected a
steady decline from 2015, as the economy is majorly dependent on oil. The country
experienced a recession in the year 2017. The expected growth of the country was expected at
1.9 percent due to the growing economy from non-oil businesses. The forecast for the year
2019 for IMF depicted the declining rate, from 2.4 percent to 1.9 percent resulted from
subdued prices of oil at the end of 2018. The economy is recovering after 2017 because of the
increasing oil production and improving spending power of consumers.
Therefore, the declining rate of GDP and economy, the organization will be effected
to ensure the maintenance of equipment used for the navigation system. The economic factors
can also affect the investment in advanced technology. However, the improving conditions
like, improvement in consumer spending power can be used as an opportunity by the
company to expand its operational capabilities.
Socio-cultural environment: The socio-cultural environment of Saudi Arabia is majorly
influenced by Islamic and Arab culture. The society of Saudi Arabia was very conservative

2CHANGE MANAGEMENT
and traditional. The attitude and decisions of the consumers are based on Islamic heritage.
The culture of Saudi Arabia is changing due to the practice of producing commodities and
communication revolution.
Therefore, the socio-cultural scenario will positively affect the company as with the
change in cultural beliefs and practices, the customer groups are expanding for the air
transport industry, which in return will help SANS.
Technological environment: Saudi Arabia is considered to be the biggest market of ICT
(Information and Communications Technology) in the Middle East. The country's investment
in technology is expected to reach 135 Billion Dollars by the year 2030. Saudi Arabia is
slowly shifting the dependence of the country’s economy from oil extracting operations to the
Silicon Valley. In five years, the investors of Saudi Arabia have invested more than 6.2
billion dollars.
Therefore, the country approach is developing the technology sector can be used as an
opportunity for improving the service offerings of SANS by investing in updated security and
navigation systems.
Legal Environment: The legal system of Saudi Arabia is not entirely stable. The source of
legislations and laws is Islamic law, and the Quran is considered to be the constitution of the
country. The law and regulation demonstrating responsibilities and rights of the government
are structured by the royal decree.
Therefore, the uncertainty of the legal system and laws of the country due to the
dependency on derived beliefs and lack of judicial precedent.
Environmental factors: The economy of the country is largely dependent on the oil industry,
which leads to the intense utilization of fossil fuel leading to environmental issues. The
increasing population of Saudi Arabia is leading to growth in industrial activities and
overconsumption of resources. The oil industry of Saudi Arabia releases carbon dioxide at a

3CHANGE MANAGEMENT
higher rate. The consequences of environmental issues portray risks to human health. The
country is incorporating stricter environmental policies and programs for managing current
concerns.
Therefore, the company will be affected by the increasing rate of pollution as it will
affect the operation of the navigation system. The company needs to ensure advanced
technology for addressing the concern of air pollution and using a sustainable approach in the
operational plan.
SWOT Analysis:
Strengths: The main motive of the company is characterised by a sustainable cause. The
nature of operations of the company is CSR activity that helps in protecting the customer
community and to ensure their wellbeing. Furthermore, SANS is an organisation that is
trusted by various carriers for helping them in terms of maintaining the smooth nature of
carriers. Thus, the business model adopted by the company itself is a strength. Furthermore,
the staff catering to the operational needs are competent and have the skills to satiate the
organisational requirements effectively.
Weakness:
The aviation industry is subject to constant changes. The nature of operations are constantly
influenced by the market forces. The sustainability of the companies associated to the
industry depends of the degree of affiliation that the latter have with the consumer
community. SANS can operate effectively in the market only if the airline carriers are able to
sustain themselves.
Opportunities:
The aviation industry used to be oligopolistic in nature, however, the attractiveness of the
industry as attracted new companies in the industry. This is an opportunity for SANS as more

4CHANGE MANAGEMENT
companies joining the industry implies that the company will be able to gain more customers
as the nature of operations of the company is B2B.
Threats:
Other companies catering to the needs of the aviation industry with similar notions as the
company poses threats to operations of the company. Furthermore, disasters such as technical
fault, natural calamities, terrorism, etc. pose threats to the operations of the company.
Response to Question 2: Identifying and planning change in the organization
The factors that indicate changes in the workplace are environmental and
technological. The instance of change that needs to be incorporated in the workplace is the
accountability and need for ensuring sustainable approaches towards each operational
activities and strategic relationships. With the increasing pollution and depletion of natural
resources in Saudi Arabia by the air transport, oil industry and increasing population, the
company needs to ensure a planned sustainable approach. The primary purpose of the change
can be to reduce the impact of pollution on visibility and to ensure the reduction of negative
impact from their clients, air transportation companies. The company needs to implement
standard frameworks and guidelines for strategically associating with air transport
companies. The sustainable approach of the company should not be focussed only on internal
operations but should also be targeted towards the strategic partners of the company in order
to reduce the negative environmental impact. The association with various clients should
include the obligation of ensuring sustainable energy usage. The company needs to invest
efforts and financial resources for supporting changes.
Response to Question 2.2:
For planning the change, various financial and human factors will be involved in the process:
Human Factors:

5CHANGE MANAGEMENT
 Management Systems: For planning the change, the first step is to change the
management system for ensuring the change in the policy framework, employee
involvement and active collaboration of every department in SANS. The management
system will provide the alignment of the required change plan and existent
organizational practices.
 Processes: The process of bringing change will majorly depend on the procedures of
incorporating standards. The process indicates the involvement of human in planning
and implementing changes in the organization.
 Acceptability and understanding of new policies and standards: Human understanding
and acceptability for this change is very crucial for the process of implementing
sustainability standards and approach for internal stakeholders and clients.
 Communication: Communication is the most significant tool for planning the process
of implementing sustainable guidelines. Effective communication strategy of the
organization will ensure the sense of accountability amongst internal and external
stakeholder of Saudi Arabia Navigation Services. Effective communication in
planning change will include information regarding the gap between current
operations and future goals. Human Resource Department plays a significant role in
ensuring effective communication.
 Technical skills: The understanding related to planning changes in the technical areas
such as navigation, surveillance, communication, maintenance and automation with
training programs will affect the planning of changes.
Financial Factors:
 Return on investment: SANS is a commercial company that will consider the
forecasted value of return on the invested support such as, investment in training
programs, investment in improved resources that does not reflect negative changes in

6CHANGE MANAGEMENT
the environment. Significance of technological investment will also be considered for
ensuring the safety of aircraft from navigating through polluted air.
 Operating expenses: Operating expense such as cost of equipment, insurance and
investment in research and development will be considered for planning the change in
SANS.
 Cost of technological support: The change will require advanced technology for
updating the equipment of navigation with respect to the changed energy usage
system of clients and for ensuring effective navigation details in polluted air.
 Economic condition: The economic condition of the country will also be considered
for planning changes as it will directly impact the investment decision of both the
clients and the company.
Response to Question 2.3:
The strategies of communication for involving people in the change process are as follows:
 Stakeholder meeting: In this meeting, the representatives of the existing clients, from
shareholders and the managers along with the CEO, will be involved for
communicating the purpose of the change and the consequences of the current system.
This is also required for deciding on the investment for improved technology that
ensures minimum impact of energy or resource usage.
 Communicating the significance of involvement: The communication process of the
change should include the benefits of involving people for reducing the negative
impact. The change management should include non-monetary benefits for
participating effectively in the change. The participants will include employees,
management and clients.
 Communication by management or CEO rather than project team: The organization
should not involve the project team to communicate the change plan to the key

7CHANGE MANAGEMENT
stakeholders rather the senior management or the CEO should be included in
communicating the necessary change amongst representatives from shareholders,
clients and internal departmental heads.
Response to Question 2.4:
The management of the change that is to take place in the organisation can be bolster by
planning. Regardless of the nature of the change that the organisation plans to establish,
planning would be crucial. By effective planning the responsible individuals within the
organisation will be able to justify the rationale for change and adapt strategies that can help
them in bolstering the operations in terms of carrying out the change. As a suggestion it can
be said that the McKinsey 7S model is a model that can help in planning for the sustainable
change that is to be carried out by the organisation. The McKinsey model suggest the
application of the tools that can be used by an organisation in order to plan and monitor
changes that are taking place within an organisation. The element of the model help in
providing rationale for change from the perspective of SANS;
 STRATEGY: The Company intends to incorporate change that is characterised by
operations that are sustainable in nature.
 STRUCTURE: The structure of the company is to be taken into consideration while
planning the process of change that is supposed to take place in the organisation.
 SYSTEM: It refers to the processes within the organisation as carried out by the staff
within the organisation. It is characterised by the effectiveness of communication that
takes part between each of the departments of the organisation.
 SHARED VALUE: Planning should be carried out on a common aspect that helps in
determining the importance of the sustainable change for the diverse groups of
stakeholders associated to the company.

8CHANGE MANAGEMENT
 STYLE: planning should also be carried out in terms of leadership and the direction
that the management of the company intends to go to in the change management
initiative.
 STAFF: Communication will be crucial in terms of operation of the employees
associated with the organisation. Informing all the employees will be crucial in terms
of achievement of the desired sustainable goals of the organisation.
 SKILLS: Managerial skills will be required in order to bolster the nature of the
change management initiative to be carried out by the organisation. Interpersonal
skills would be crucial for the realisation of the change management initiative to be
carried out by SANS.
Action Plan
A detailed action plan can be formed by using the 5W framework is an approach that can
be applied in approach that can be applied in order to gain effectiveness in operations in
the project management initiative of the company;
What: A sustainable initiative to be carried out while carrying out regular operations.
Why: The rise in the levels of degradation of the environment has resulted in adverse
effects on the environment. Hence, the sustainable change will help in catering to the
need of the sustainable change.
When: The activities are to be carried out during regular nature of operations of the
company. The timeline required for implementation of the plan would be from 9 to 16
months.
Where: The initiative is to take place at the area of operations of the company that is in
Saudi Arabia.

9CHANGE MANAGEMENT