Organizational Change Management: Vodafone and BT Group Case Studies

Desklib provides past papers and solved assignments for students. This report analyzes change management in Vodafone and BT Group.

UNDERSTANDING AND LEADING CHANGE

1
Table of Contents
INTRODUCTION........................................................................................................................3
TASK 1 MANAGING THE IMPACT OF CHANGE..........................................................................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.......................................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.....................................................................10
M2 APPLY APPROPRIATE THEORIES AND MODELS TO CRITICALLY EVALUATE
ORGANISATIONAL RESPONSE TO CHANGE.........................................................................11
LO 3........................................................................................................................................ 14
P4 EXPLAIN DIFFERENT BARRIERS FOR CHANGE AND DETERMINE HOW THEY INFLUENCE
LEADERSHIP DECISION-MAKING IN A GIVEN ORGANISATIONAL CONTEXT........................14
M3 USE FORCE FIELD ANALYSIS TO ANALYSE THE DRIVING AND RESISTING FORCES AND
SHOW HOW THEY INFLUENCE DECISION-MAKING............................................................15
CONCLUSION.......................................................................................................................... 17
REFERENCE............................................................................................................................. 18

2
LIST OF FIGURES
Figure 1: Lewin’s Change Management Model.....................................................................12
Figure 2: Kotter’s change management theory.....................................................................13

3
INTRODUCTION
The organization may be defined as the change which is the result of internal and external
pressures of the economy. The changes in the structure, strategies, operational methods,
technologies, or culture of the organization is known as organizational change. These
changes occur within the organization and have an effect on the organization. In the report,
two popular telecoms company are considered namely Vodafone and BT Group. Vodafone is
a British telecommunication company which has a vast global network. It was founded in
the year 1991 by Gary Whent and Ernest Harrison with headquarters in London
and Newbury, Berkshire. BT Group is a very well-known British multinational
telecommunications holding company. It was founded in the year 1969 which is
headquartered in London, United Kingdom. The internal and external drivers of change
which affects these telecommunication companies are examined in this report. Also, the
barriers to the decision-making process are analyzed in detail in this report.

4
LO1
P1 COMPARE DIFFERENT ORGANISATIONAL EXAMPLES
WHERE THERE HAS BEEN AN IMPACT OF CHANGE ON AN
ORGANISATION’S STRATEGY AND OPERATIONS
Organizational change is the process where the organization undergoes a change which are
changes in the structure, strategies, operational methods, technologies, or organizational
culture of the organization (Gartenstein, 2018). It is a managerial phenomenon which
involves the process of evolution of the company.
Organization change of Vodafone
 Under the new structure, Vodafone has currently introduced two new roles the Chief
Operating Officer and Chief Commercial Officer. In addition, Director External Affairs
was also appointed by the company who will be authorized for corporate
communication, public affairs, and Vodafone Foundation.
 For conducting innovation in voice and data products, another new role of Business
Development and Innovation was brought into the action by the company.
 Vodafone partnered with the global work and workplace consultancy which is known
as Steelcase Applied Research & Consulting (ARC).
Impact of changes
 The introduction of new roles will help in diversification by the innovation and
development which will also focus on operational intensity.
 For the efficiency and effectiveness of the 2015 priorities, the changes are very
beneficial which are customers focused and will achieve greater efficiencies from
scale.
 The partnership with Steelcase Applied Research & Consulting (ARC) will assist the
company in setting up a new workplace in QPort which is a beta site for refining their
workplace strategies.
Organization change of BT Group

5
 The aim of introducing changes in BT Group was to make the operating model
simple, strengthen accountabilities and accelerate its transformation. For this
purpose, the company introduced a new Director of Regulatory Affairs and a CEO of
combined BT Consumer business (Financial Times, 2017).
 The three different brands of the company name, BT, EE, and Plusnet will be
operated by the new Consumer business.
 The new CEO will be in charge of the three businesses under his control which are
Consumer business, bringing together BT's Consumer and EE businesses.
Impact of changes
 The major impact of the new appointments made by the company is that it
drastically increases the sales and strengthen the financial performances of EE by
delivering the improved customer experience.
 The top-level management team makes sure that the potential of BT Group is
realized effectively which resulted in the next-generation digital communications
services, content, and networks.

6
M1 ASSESS THE DIFFERENT DRIVERS FOR CHANGE IN
EACH OF THE GIVEN EXAMPLES AND THE TYPES OF
ORGANISATIONAL CHANGE THEY HAVE AFFECTED
Change is a common phenomenon which is inescapable and resistance to change is just as
common. Internal and external forces are two main types of drivers of change which lead to
change in the organization which are necessary to implement (Gleeson, 2018). It is
important to know the real effects of the changes of the environment on the business or the
factors which can help the company for its business to thrive (Sherman, 2018).
Drivers for change in Vodafone:
 The need for the satisfaction of its customers by the company for its widespread
network of 302.6 million proportionate mobile customers across the globe which is
measured by the use of customer measurement system called "customer delight".
 With the change in the customers and societal expectations, the company drives to
introduce a big data platform for notifying personalized solutions for customers which is
live in 15 markets.
 With the growing demand of customers for mobile data and high-speed broadband,
leads to technological evolution of the company with the 5G mobile networks. This is
supported by the infrastructure deployed for 4G combined with new 5G radio spectrum
and antennae (Vodafone Group services limited, 2018).
Drivers for change in BT Group:

7
 BT transformational strategy drives with changes in the telecoms market and due to
increasing growth in data consumption and network capacity requirements by the
customers of the telecommunication services.
 With the entry of new competitors and increasing competitive intensity from established
companies, it becomes crucial for the BT Group to transforms it’s operating model that
will reap the fruits of sustained improvement in customer experience and productivity.
 The purpose of the company to deliver differentiated customer experiences enable BT
Group to launch a new range of diversified and differentiated products and services and
thrive it’s focus on the satisfaction of the customer.


8
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 field of management theory which focuses on bringing something
innovative, improving technology and making businesses more efficient and effective
(Wroblewski, 2018). Following are internal and external factors which drive change or affect
the organization:
INTERNAL FACTORS or Internal Driving Forces
They are the factors or events which occur within the company and generally the company
has control over such drivers of change. The main internal driving factors are given below;
 Crisis – The Company act quickly due to the result of any horrifying event or any event of
a financial loss to the company. It becomes necessary for any company to respond to the
crisis occur in order to become prosperous again (Gleeson, 2018).
 Customer-focused – Some internal changes are made by keeping in mind the
prospective customers that need to be served by the company. Vodafone brought many
changes as a part of the approach to ensure the needs of their customers are
understood and all employees work by putting the customer first (Vodafone Group
services limited, 2018).
 Technological capacity – With the new changes in the technologies in the market, the
company has to update its ways of working by bringing changes in the technological up
gradation. The company with traditional and old technologies are moved out of the
competition as they are not competent to others (Wroblewski, 2018). Vodafone
considered technological driven strategy as their prime focus which drives them to make
digital technology which aims at doing savings by digitalizing customer management.
EXTERNAL FACTORS or External Driving Forces

9
They are the factors or events which occur outside the organization and are generally out of
the control. The main external driving factors are given below;
 New Competitors – New entrants in the market brings new technologies, innovative
products, and ideas with them. With their emergence, the need for the changes
becomes crucial for the old companies. The old companies cannot stand for longer
duration without introducing new technology, ideas and innovations. The
telecommunication industry is highly competitive which drive Vodafone to make
changes in their technologies.
 Political change – government regulations play an important role in bringing changes
to the company. If the service or product of the company becomes outlawed,
changes in the laws in local regional and central level can have a direct impact on the
business (Ray, 2018). Political intervention and complexity are increasing especially
in the digital sector which made Vodafone make the digital and technological
transformation.
 Economic changes – economic factors such as politics, terrorist attacks, wars, and
currency devaluation are the biggest external factors which lead to the change in the
organizational culture and business (Ray, 2018). Vodafone can be affected by such
factors which are not in the control of the company but can majorly affect its
operations.

10
P3 EVALUATE MEASURES THAT CAN BE TAKEN TO
MINIMISE NEGATIVE IMPACTS OF CHANGE ON
ORGANISATIONAL BEHAVIOUR
Change is a necessary phenomenon which aims at achieving more efficiency and
effectiveness in the performance of a company. But the employees of the organization are
not ready to accept the change as they are very useful in the current ways of working
(McQuerrey, 2018). Following steps can be taken by the company to reduce negative impact
of changes:
Develop a communication strategy – the communication of the changes made should be
done in a precise manner by choosing effective means of communication. The type of
change came and the impact of the change on the working of the organization as well as on
the employees is to be communicated clearly. Once the employees are made familiar with
the change they don't resist that change (Heathfield, 2018).
Training – training is the teaching given to the employees which helps them learn the skills
and knowledge required to operate efficiently as the change emerges. By providing effective
training leads to an increase in the confidence level of the employees (Courtney, 2016).
Implement a support structure - support structure assists employees to practically adjust
change so that the redundancy may decrease to a huge extent and to achieve desired
business results (Courtney, 2016). Helping the employees in adjusting the changes in their
roles and responsibilities with context to new culture adopted by the organization, the
support system such as counseling services will accommodate the employees.
Work in Small Doses – working in small lots will give employees the time required by them
to absorb the changes took place in the organization. Overloading employees with the new
authorities and work pressure will hinder their performances and will also result in the
resistance for change (McQuerre, 2018).

11
M2 APPLY APPROPRIATE THEORIES AND MODELS TO
CRITICALLY EVALUATE ORGANISATIONAL RESPONSE TO
CHANGE
Change in management is a factor which involves the application of structured methods for
transitioning people, groups, companies, and projects so that they can meet changing
requirements and objectives. Following are some theories or models to critically evaluate
organizational response to change (Anastasia, 2015).
Lewin’s Change Management Model
This model is one of the most popular and effective models which was created by Kurt
Lewin in the year 1950 which consists of following three main stages;
Unfreeze – This is the first stage in the Lewin’s Change Management Model which aims at
preparation for the change because the change is crucial and needed. At this step, the
organization plans to implement the change and inspect the ways to implement change.
Change – This is the stage the real transformation takes place where the company inspects
the new happenings, developments, and changes. Leadership and motivation play an
important role in this stage the leaders motivate the employees to accept the changes and
provide them support and help they needed.
Refreeze – This is the last stage which comes after the change has taken place and the
company begins to reorganize itself after such change. This stage involves the going back to
routine and normal pace and the change has been accepted, embraced and implemented by
people.