BSS064-6: Report on Drax Technology and Services Integration

This report provides a comprehensive analysis of the integration of Drax Technology and Drax Services. It begins by outlining the reasons for the integration, focusing on the need to address Drax Technology's declining market position and the potential benefits of combining the strengths of both companies. The report then explores various integration strategies, emphasizing the importance of effective change management processes, leadership, and organizational culture. It delves into the application of Kotter's Change Model, the Cultural Web Model, and Michael Fullan’s Leadership Model to facilitate a smooth transition. The report also examines the Change Kaleidoscope and Lewin’s Model to help in planning for change. It highlights the critical factors influencing change, such as organizational culture, and addresses potential challenges like cognitive resistance, limited resources, and institutional politics. The report concludes with recommendations for successful integration and emphasizes the need for a strategic approach to ensure the new organization's long-term success.

Running Head: LEADING AND MANAGING ORGANIZATIONAL STRUCTURE
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Integration of Drax Technology and Drax Services
(Student Details)

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Executive Summary
The following report is about the integration of Drax Technology and Drax Services. Drax
Technology is performing well as it adapts innovative ideas and creativity in delivering services.
Whereas Drax Services is not performing well, its survival was very difficult. To solve this issue,
Drax group decided to integrate both the companies and form a new organizational culture,
organizational structure, leadership style and financial statements. The change process is not an
easy task. Therefore, this report highlights change process and effective way of handling change
during integrations and mergers.
The report explains Kotter’s Change Model for managing change and how this model can be
applied. Apart from this the Johnson and Scholes’ Cultural Web Model helps in managing
cultural differences in an organization. Michael Fullan’s Leadership Model is the most suitable
model to build effective leadership for new company formed. This study describes the Change
Kaleidoscope Model and Lewin’s Model to facilitate the organization in planning the change
effectively and efficiently to move t owards the change objective.

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Contents
Introduction......................................................................................................................................4
Reason for integration of Drax Technology and Drax Services......................................................5
Ways to integrate Drax Technology and Drax Services..................................................................6
Effective Management of Change Process......................................................................................7
Kotter’s Change Model................................................................................................................7
Factors that influence change..........................................................................................................9
Organizational Culture.................................................................................................................9
Johnson and Scholes’ Cultural Web Model...........................................................................11
Agile ways of working...............................................................................................................13
Michael Fullan’s Leadership Model.......................................................................................14
Power and Politics......................................................................................................................15
Change Management..................................................................................................................16
The Change Kaleidoscope......................................................................................................16
Lewin’s Change Management Model....................................................................................17
Conclusion.....................................................................................................................................19
Recommendations..........................................................................................................................20
References......................................................................................................................................21

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Introduction
The report is about the integration of Drax Technology and Drax Services. It will highlight the
ways to develop future plans for the integrated company. The practice of organizational culture
differs from country to country. Since the usage of technology is different in both the companies,
its integration process will face challenges in developing a mutual system. Such integration
refers to the overall integration of all the functions including the financial analysis and
treatments. Leading and managing an integrated organization structure of Drax Technology and
Drax Services is explained in the report.
Drax Technology is an independent, dynamic and innovative giver of integrated alarm
management solutions, protection against fire and other life safety solutions for over 20 years. It
claims to be evolution rather than being a revolution (Draxtechnology, 2019). Its strategy is to
ensure sophistication, reliable and user friendly products to the customers. It designs products to
reduce the workload in a huge legislative environment. It is committed towards ensuring the
maximum level of protection for property and people and also assists the customers to comply
with the necessary requirements.
Drax Services is also an independent provider of all kinds of fire detection and alarm specialists.
It is uniquely positioned to give unbiased security advice and life safety techniques. It is a well
know organization for delivering fire-risk assessment and alarm systems in UK (Draxuk, 2019).
Drax services keeps safety as its first priority. It takes pride in taking responsibility to help their
staff, visitors and customers. Its keeps its system approach very professional, refreshing and
knowledgeable. It has a multi-skilled team who applies their knowledge and skills while working
on sites hence, demonstrating money value (Draxservices, 2019).
The report will cover all the critical areas of integration, such as the different cultural web and
models used to combine Drax Technology and Drax Services. It defines how an ineffective
leadership can lead to the poor performance of the company. It specifies the agile manner of
working by improving performance, quality and productivity; and ways to apply form
appropriate leadership system to generate maximum profit. The shareholders interest lies in the
company, so it is important for the leaders to work for their betterment in order to attract more

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investors. Divisional conflicts can cause many harm to the company and disturb the entire
organization. The Lewin’s Model is applied to remove all the complexities that Drax is facing.
Leading and Managing the new organizational structure is a difficult task. Leadership quality
decides the performance and productivity. An effective organizational structure is equally
important as leadership is, as it governs the tasks and activities of employees, and assigns the
roles and responsibilities to carry out essential task. In the process of integration of two different
companies, change management is a must. With the analyzing, the change in the management
will help the organization to access the overall change impact. The implementation of changed
management will align the available resources and reduce the cost of change.
Reason for integration of Drax Technology and Drax Services
Drax Technology has presented very well in the past years, but since it is using the traditional
process in its business conduct; it is losing its place in the market. It has lost certain market share
in the present. Due to this failure the directors of the company refocused on its strategy and
positioning and have come to a decision of introducing Iot (Internet of Things), Artificial
Intelligence (AI), and Machine Learning (ML) in its business.
To facilitate new innovation and growth the company selected some staffs from both the
companies, that is, Drax Technology and Drax Services and asked them to participate in a
climate survey. The result of this survey was not that supportive in case of innovation,
productivity, and creativity. To solve this issue the KTP project was undertaken by Drax to gain
competitive advantage in this field, this requests for an integration. Within the relative part of the
context the innovation in the industry where it is required in the manpower to be more creative
where as there are departments which do not want any innovation to work with. In the process
of integration some impact is drawn on the financial statements as well.
Ways to integrate Drax Technology and Drax Services
Integration is a high risk event, it should be managed properly in order to achieve the integration
objective. Investing in leadership is imperative. A good leadership will enhance integration
results by creating a strong and more unified team; and take the new company to new heights.
But on the contradictory will create more burdens in the organisation.

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The following steps should be followed to integrate the two companies:
1. Start the process as soon as the deal of integration is announced
Before commencing any process the complexity and extra inputs in the process and the attitude
of the management will increase the work load shoulders of the promoters and workforce. The
risks and related precautions must be constrained in the joining of the two companies into one.
2. Selection of team members for Integration.
Choose highly skilled and motivated employees from Drax Technology and Drax Services to
form an integrated team. Analyze the work performed by the team members to determine their
strengths and weakness while performing under pressure.
3. Planning an appropriate structure for integration.
It is advisable to plan the activities in advance. Divide the integration activities into categories
like Manufacturing, Service, Human Resource, Legal Finance, Sales and Information
Technology (Azuara , 2016).
4. Creation of internal communication plan.
To build a smooth way for change, the culture and role should be redefined at all the levels
(Azuara , 2016). To avoid misleading assumptions of employees and staffs pre-communication
of integration of two companies must be communicated in a proper manner, explaining the role
that is expected from the employees. Else, it will create a chaos in the organisation.
With the intervene of the two managements in the same organisation will no matter result in the
better production and the collective manner in growth and development but will also make a
presence of the extra resources and will add in the extra cost and extra work burden on the
workforce.

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Effective Management of Change Process
The two companies are different from one another, in order to implement a common strong
leadership style and organizational structure the following model can be used.
Kotter’s Change Model
Kotter’s Change Model (Kotterinc, 2019)
Dr. Kotter’s Change Model will be the most applicable for managing change as it tries to
transform and execute the strategies for change. He developed below stated eight steps process to
lead change.
 Create Urgency
A sense of urgency must be developed in the mind of staffs to bring a spark of motivation in
them. This step is not an easy task, but urgency need to drag all its employees and staffs towards
change (Kotter, 2012). This urgency will also piles up the extra files on the desk.

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 Form a powerful coalition
It is essential to convince the employees of Drax Technology and Drax Services to accept
change. For this purpose, an effective leadership is required. Once the change coalition is
formed, it needs to work as a team (Kotter & Cohen, 2014). But this process will also add to the
conflicts in the management.
 Create a strategic change vision
In this step a straight clarification is must outlining the difference between the past business style
and the future objectives to convert the organizational vision into a reality.
 Enlist a volunteer team
This integration is a large scale change, and is possible only with the assistance of massive
numbers of skilled people. There must be an urgent need to direct the volunteered team towards
the common direction.
 Enabling of actions to remove barriers
Ineffective processes and hierarchies must be removed to bring freedom in change process that
can contribute towards real time impact (Kotter & Cohen, 2014).
 Generation of short term wins
Short term wins are the proofs of ultimate success. The change should be evaluated time to time
in order to recognize, collect and communicate the progress amongst the volunteers. This step
will bring motivation in the team.
 Sustain acceleration
Once the integration starts showing progress, it is advisable that the new company should
increase its credibility by improving systems, policies and structures. Change should be
implemented until the vision becomes reality for Drax.
 Institute change

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The last step includes the institution of change. Articulate the integrating between the new
organizational behaviors and success in order to ensure that it will continue until the change
process becomes strong to replace the old system of doing business.
The following essential steps will ensure that the applied change process is successful or
not:
1. Identify the area of improvement
2. Present a valid business case to the stakeholders
3. Early planning for change
4. Provide resource for change (Confer & Ramirez, 2012)
5. Use relevant data and information to bring change
6. Communicate the change to the concerned parties
7. Monitor and manage resistance to change
8. Define the budget for change to avoid risk
9. Measure success
10. Review, revise and improve continuously (Smartsheet, 2019)
Factors that influence change
Organizational Culture
The two companies have varied cultures. Drax technology follows the modern concepts whereas;
Drax Services does the work in accordance to the traditional ways without giving any importance
to innovation and creativity. Organizational change management is a huge undertaking, to make
this a success; the new company formed has to respect the cultural aspects of both the company
and design new cultural reforms (Vukotich, 2011). The change process has to go slow; an
immediate change in work culture will make the employees of Drax Services feel insignificant
and this might lose confidence in them. The change should promote collectivism at work place.
In the change process the Drax’s new company has to face the following hurdles:
1. Cognitive: if the people are not informed about the change in advance, the integration will
become impossible.

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2. Limited resources: Such change process often faces the problem of limited resources. Shifting
of resources becomes difficult (Harmon, 2010).
3. Motivation: Sometimes the employees do not get motivated by looking at the change process;
they simply believe that change process will put work pressure on them (Smith, 2019).
4. Institutional Politics: Politics is usually witnessed amongst the top authorities. The officials
sometimes start working to fulfill their personal means and do not think for the common goals,
this type of politics will distract the direction of middle level and lower level staffs (Holmes,
2010).
The following model can be used to execute Cultural Change in the new company:
Johnson and Scholes’ Cultural Web Model
Johnson and Scholes’ Cultural Web Model (Businessballs, 2019)
The six elements of this model explain:
 Stories and Myths

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With the existence of the myths and stories, the leaders need to question whether these stories
may harm the reputation of the company between the stakeholders and the customers or not. It is
important to create an attractive past history of the organization to attract new talents and
shareholders. This way it can improve the culture of new Drax.
 Rituals and Routines
The combined culture of the combined company must be such that, the employees make the
routine as its rituals and move towards the objective of change (Johnson & Scholes, 2009).
 Symbols
The organizational culture has potential to be affected by its visual representation. The logos,
dress codes, office spaces and advertisements represent the new culture of the company
(Businessballs, 2019).
 Control Systems
Control systems are essential to control the new company for managing the financial statements,
individual performances, and quality. In a cultural change process it is important to measure and
control the change.
 Organization Structure
The structure represents the power and authorities given to the representatives of the company.
This step contributes to determine whose decisions should be valued and who are of less
importance (McGrath, 2013).
 Power structure
Power structure also affects the culture. It refers to few executives, CEO, directors and board
members. These individuals have potential to influence the culture of the new company.
Cultural Web to change

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Culture in the organisation can be changed by analyzing the elements and examining the
deviation between the companies culture, and achieving the desired changed culture. As per the
changes should be adaptive in nature and else the new enterprise will not be able to sustain.
During the time of evaluation the companies glanced at the poor performance of Drax Services,
reason being leadership. That company did not have any room to implement any innovation.
Agile ways of working
The need of organizational change was realized when Drax Services stopped performing. It came
into notice that the employees were less productive, their performance was not up to the
expectations and the work quality was decreasing day-by-day. By applying change strategies
productivity, performance and quality can be enhanced in the new company.
 Change Communication
Communication of change to the employees at an early stage can cause a lot of difference in the
change outcome. Early communication of change to the employees will motivate them and clear
their doubts. New policies and procedures increase the productivity of employees and encourage
them to work better and faster (Bate, 2013). This new set targets and goals can be adverse to
workforce to work on new ideas and targets; this will result to the slow and slaggy working.
 Employee Engagement
Employees in the new Drax will get an opportunity to feel intellectual, psychological and
emotional strings with the company’s planning phase. As a result, employees will become more
accustomed with the idea of change and align their thoughts to identify potential problematic
area and contribute substantially to increase the work quality in the new company (Alvesson &
Sveningsson, 2015).
When a change management process outcome will show better productivity, improved
performance and better quality of services in new Drax; it will guarantee an increase in
profitability ratio. It is advisable to change the sales techniques according to the new culture, but
with the consent of the workforce employed in the new organisation eslse there may be the
prevalence of downfall in the organisation. The following strategies should be applied to increase
profit: