Strategic Change Management: Models, Risks & Implementation Plan

This report provides an analysis of change management models, focusing on two options for ABC Manufacturing Limited to increase production. The first option involves increasing staff and production lines, utilizing Kotter’s 8-step change model and Lewin’s change management model. The second option explores automating processes with robots and reducing staff, employing the ADKAR model and McKinsey’s 7-S model. The report also addresses risks associated with both options and outlines strategies for innovation, organizational changes, and maintaining relationships with external stakeholders. It details the strategic processes for driving innovation and implementing change management plans, emphasizing the importance of adapting to changes in business goals, technologies, and processes.

Running Head: FACILITATING CHANGE AND INNOVATION
Facilitating Change and Innovation

FACILITATING CHANGE AND INNOVATION 1
Contents
Task 1: Change management models..............................................................................................2
Option 1........................................................................................................................................2
Option 2........................................................................................................................................3
References........................................................................................................................................6

FACILITATING CHANGE AND INNOVATION 2
Task 1: Change management models.
For the purpose of fulfilling the order received of supplying 20,000 rods per week, the
management of ABC Manufacturing Limited has two options. First option is to increase the staff
members and to putting on extra production lines while the second option is to automate the
existing processes with the help of robots and reducing excessive staff.
Option 1
Considering the long term benefits of increasing the staff numbers, the change management
models which can be applied by the enterprise for making the changes at the strategic level are
Kotter’s 8 step change model and Lewin’s change management model.
Kotter’s 8 step change model is based on the following steps-
Create a sense of urgency- Though this step, the company will help the workers working in the
organization to see the requirement for change through an aspirational and bold opportunity
statement that communicates the importance of acting immediately i.e. for meeting the order
(Kotter, 2012).
Build a Guiding Coalition- Visible support and strong leadership will be needed for influencing
the people that the change is necessary. Then the change coalition needs to work as a team and
will continue building momentum regarding the need for change.
Create a Vision for Change- This step will assist in the clarification of how there will be a
difference in the future from the past and how this future can be turned into a reality through
incentives that are directly associated with the vision (Salman & Broten, 2017).
Communicate the Vision- The change in the vision will be communicated convincingly and
powerfully. Performance reviews and training will then be associated with the vision.
Removing Obstacles- Barriers and resistance among the people will be checked on continuous
basis. Obstacles will be removed through implementing proactive actions.
Creating Short-Term Wins- Short term targets will be created so that the goal of 20,000 rods per
week can be achieved in a less expensive way with fewer failure possibilities.

FACILITATING CHANGE AND INNOVATION 3
Consolidating Gains- Continuously bringing improvement through the analysis of success stories
and individual experiences.
Anchoring Change in the Corporate Culture- This step will make sure that change becomes an
essential part of organizational culture and is visible in each aspect of organization.
The implementation of this model will assist in smooth execution of the change and removal of
obstacles so that the anticipated outcomes can be attained.
Another model which can be used is the Lewin change management model which is
implemented in three stages.
Unfreeze- In this step, ABC Manufacturing Limited will be prepared for accepting the necessity
of change. This will involve developing a compelling message showing that the success of the
company is possible only through increasing the staff members and production lines. Also,
strong motivation will be required for seeking out the new equilibrium as participation is
necessary for effecting meaningful change (Cummings & Worley, 2014).
Change- This stage will focus on finding ways for resolving the uncertainty and searching for
innovative ways for performing tasks. However, people will take time for taking up the new
direction and participating proactively in the change. For making it successful, people needs to
understand the benefit of change.
Refreeze- The business will be ready to refreeze when the change will take shape and people
have embraced new ways of working. The employees and the organization will require to be
assisted in internalization or institutionalization of the changes. Stability will lead to comfort and
confidence among the employees while dealing with the new ways of working (Cummings,
Bridgman & Brown, 2016).
Option 2
Considering the long term benefits of automating the current processes through robots and
reducing unnecessary staff, the change management models that can be applied are ADKAR
model and McKinsey’s 7-S model.

FACILITATING CHANGE AND INNOVATION 4
ADKAR change model is the acronym for awareness, desire, knowledge, ability and
reinforcement.
Awareness- the employees must be made aware regarding the requirement for change i.e. for
meeting the output of 20,000 rods per week.
Desire- Employees should fully participate and support the change. They will be required to
learn automation and also accept the termination for meeting the change requirement.
Knowledge- The ultimate goal of change will be clear to the employees after gathering
knowledge regarding the change process. The knowledge regarding the robotics is also very
necessary.
Ability- Change will be accepted because of its ability of providing new skills and behavior.
Reinforcement- Reinforcement for sustaining change will make it clear for all the employees and
then there will be no turning back (Palmer, Dunford & Akin, 2016).
Another model is McKinsey’s 7-S model which includes the following elements:
Strategy- The organizational objectives becomes clear through the understanding of the vision
and mission. Automation is being used for maintaining and building competitive advantage over
the competitors. They will aim to compensate the employees whose services will be terminated
for executing the use of robotics.
Structure- this involves the way organization is structured and the kind of hierarchical layers
present. Different departments of ABC Manufacturing Limited will be required to support in
planning, administration and ICT.
System-Formal and informal methods of operation, communication flows and procedures are
there in system (Shiri, Anvari & Soltani, 2014). Implementation of robotics will involve
development of new systems in the company.
Style- This will include the leadership and management styles. Resistance will be faced by the
leaders in the automation of processes due to change in their responsibilities to a great extent.

FACILITATING CHANGE AND INNOVATION 5
The leaders should adopt a leadership style that ensures good mutual understanding and pleasant
working environment.
Shared Values- Shared values can also be referred to as the superordinate goals. These are the
company’s core values which can be noticed in the overall work ethic and business culture of the
enterprise. The effective functioning of the robotics will be the top priority for the company
(Hayes, 2018).
Staff- It involves the employees and their general capabilities. The excess staff will be
terminated and the remaining staff will be given proper knowledge regarding the changed
processes of the company.
Skills- This includes the actual competencies and skills along with the job descriptions of the
employees who work for the company. The skills for handling the automated processes will be
needed by the employees (Cameron & Green, 2015).

FACILITATING CHANGE AND INNOVATION 6
References
Cameron, E. & Green, M. (2015). Making Sense of Change Management: A Complete Guide to
the Models, Tools and Techniques of Organizational Change. Kogan Page Publishers.
Cummings, S., Bridgman, T., & Brown, K. G. (2016). Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. human relations, 69(1), 33-60.
Cummings, T. G. & Worley, C. G. (2014). Organization Development and Change. Cengage
Learning.
Hayes, J. (2018). The theory and practice of change management. Palgrave.
Kotter, J. P. (2012). Leading Change. Harvard Business Press.
Palmer, I., Dunford, R., & Akin, G. (2016). Managing organizational change. McGraw-Hill
Education.
Salman, Y., & Broten, N. (2017). Leading Change. Macat Library.
Shiri, S., Anvari, A., & Soltani, H. (2014). An assessment of readiness factors for implementing
erp based on agility (extension of mckinsey 7s model). International Journal of
Management, Accounting and Economics, 1(3), 229-246.