Organisational Change and Leadership Strategies: Ernst & Young Report

This report analyzes organizational change, focusing on Ernst & Young as a case study. It explores the definition and importance of organizational change, examining how changes in policies, processes, culture, and technology impact business goals. The report investigates the influence of internal and external drivers, such as customer needs, competition, and technology, on leadership, team dynamics, and individual behaviors. It compares Ernst & Young with Deloitte, highlighting their organizational structures, strategies, and operational approaches in the context of change. The report also discusses measures to minimize the negative impacts of change, leadership decision-making, barriers to organizational change, and various leadership approaches to navigate change effectively. The report concludes by summarizing key findings and emphasizing the significance of adapting to changes in a dynamic business environment.

Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1: Managing the Impact of Change......................................................................................3
P1. Compare different organisational examples..........................................................................3
TASK 2............................................................................................................................................6
P2. The ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation..............................................................................6
P3. Measures that can be taken to minimise negative impacts of change.................................10
TASK 2: Leadership Decision Making.........................................................................................11
P4. Different barriers for Organisation change..........................................................................11
TASK 3: Leading Change.............................................................................................................13
P5. Different leadership approaches to deal with change..........................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Organisational change is defined as fluctuations in the business regarding policies,
processes, culture, technologies and various other factors. Organisational change is a vital
concept of business which is helping the business in meeting organisational goals and objectives
in prominent manner. When business is inculcating failure then this compels them to render
organisational change so that standard of the business can be improvised at the same time
continuous improvement can be inculcated by them as well. Organisational changes are occurred
for a particular time period with the major purpose of sustaining (Doppelt, 2017). Various
management theories are associated with organisational changes and changes are focused on
phases of the business so that short term and long term objectives can be met without any
prominent complexities. This report is prepared in order to understand concept of organisational
change on accordance with Ernst & Young. Ernst & Young is a professional service provider
company which are having operations at global level. The company was founded in 1989 and
headquartered in London, UK. The company is majorly focused on providing accounting,
operational, HR and financial consultancy to their clients across global periphery. The prominent
aim of the report is to provide concept of organisational change so that to maximise benefits for
the business and to decrease overall risk.
TASK 1: Managing the Impact of Change
P1. Compare different organisational examples.
Structure of the organisation is playing significant role in organisational development and
on the other side structure of the company is wholly emphasised on existing cultural diversity
and identity (Chort and De La Rupelle, 2017). Every business is facing complexities in their
business operations and these complexities are requisite to be eliminated in order to earn
immense profits. For eliminating these complexities change is bought in the business which
could be of any aspect such as strategy, process, technology, policies or any other. In order to
improvise performance of the business structure is to be improved so that new product or
services can easily be introduced. So for improving existing business offerings all the conditions
are required to be communicated so that any prominent changes can be inhaled. On the other
hand action plan is required to be created which include strategies, tools and technologies and

processes. These are helpful for the business to upgrade their business form low level to high
level so as to make their business capable of achieving organisational goals in stipulated time
frame.
For major purpose of growth of the business, business environment is helpful but at the
same time risks are undertaken in the same. Business environment is having positive and
negative impacts over the business (Aline, Wanderer and Ehrenfeld, 2016). So this is the
responsibility of the manager to come across their business offerings so as to satisfy needs of
customer within marketplace. Ernst & Young is a global service provider and headquartered in
UK. The organisation is meeting global business needs such as employees in which various
programs are held by them. At the same time country is facing problem in sustainable economic
condition. Some of the major projects are dependent upon productivity and profitability of the
company so as to attain high profit and position at marketplace. This is helpful in dealing with
rivals’ in prominent manner such as Deloitte. This is required to modify their business processes
accordance with trends and latest technology as well. Below is the comparison between Deloitte
and Ernst & Young in the context of changes:
Basis Ernst & Young Deloitte
Change in external factors Business environment is
associated with various factors
which are having high impact
over the business in direct and
indirect manner. Some of the
factors within external
environment such as tax rate,
fluctuation in exchange rate
and many more. These factors
are providing high support to
talent and business working.
On the other hand operations
are executed at small scale so
inappropriate amount of funds
are kept. So this is not possible
Deloitte is also a service
provider organisation in which
variety of services is provided
by them such as audit
consultation, financial
advisory, taxation and risk
management. Deloitte is a
global level company
generating revenues of 4.6
billion USD and around
312000 employees. In order to
give positive response to
changes they are improvising
their structure so that to
remove complexities. By

them to bring prominent
amount of changes which may
have high impact on business
functions. So the managers of
the business are required to
make and implement most
profitable plans in significant
manner.
approaching this company is
meeting high opportunities to
exhibit success and to run their
business with new market
trends.
Structure Ernst & Young is a financial
and other service provider
company which is having their
operations at various territorial
regions. As compared to
Deloitte, Ernst & Young is
having lesser employees so the
major objective of the
company is to expand their
business and achieve success.
Deloitte is following the
structure in which the
company is formed with those
companies who are member of
Deloitte Touche Tohmatsu
Limited (Deloitte Global)
which is a UK based private
company limited by guarantee.
This structure is helping them
to run their business global
boundary.
Strategy: Strategy is the framed plan and steps defining the pathway to achieve the
desired organizational goals and objectives. These are the steps organization intending to take to
achieve their long-term goals. An appropriate organization strategy should be framed by
considering the organizational objectives and it should be originating from company’s basic
objectives. Such as with context of Ernst & Young, their Vision describes and lists all their
missions to be achieved going ahead. As a known fact organizations visions follows long-term
goals of their strategy. Therefore, there is a possibility for Ernst and Young to bring up some
changes in their policies and strategies in the suitable manner. Ernst and Young to evaluate and
improve their organizational strategy are following PESTEL analysis (Hickman and Silva, 2018)
Operations: Operational strategy and process defines the way the employees of the
organization carry on their operations and changes to these will lead to changes in system,

process or both. As soon as relevant strategies are from managers and supervisors have to
communicate the same to employees effectively. They must communicate and motivate the
employees effectively so that they accept the changes smoothly and there are no resistance to
change for the new project or process going ahead and complete the tasks in the allocated time.
In addition to this, it is also a need for them to provide the employees with effective training so
that they can carry on their activities smoothly and in effective manner. (Imran, Bilal and Aslam,
2017).
TASK 2
P2. The ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.
Changes are always something causing deviation from comfort zone. Each organization
in today’s generation is intending to speed up their change transition process. It is necessary for
every organization to make the required organizational, strategical and operational change to be
aligned with modern era and their competition by meeting the needs of their existing and
probable customers. It is a fact that every change might have its own positive or negative impact
over organization’s financials and operations. Any change in internal or external factor will
require a change in organization strategies and processes. These changes includes changes in
Products, policies, processes, designs, operations and strategies. Below mentioned are some of
the external and internal change drivers:
 Customer Driver’s Change: Customer needs are dynamic and keep changing and
evolving as the time progresses. Every organization has a mission to satisfy their
customers in every possible manner so it is necessary for them to keep changing their
product strategies and innovations to make themselves progressive towards customer
satisfaction and to make sure that their products follow latest market trends. Similar to
every other organization Ernst and Young too drive their operations towards customer
needs and grab new opportunities. Competitor's Driver changes : The new challenge which is taking place is deal with
current market rivals. Business organisations like Ernst & Young are making up new
strategies so that they can deal with their competitors such as Deloitte. As Deloitte is

making plans to expand their market then Ernst & Young is required to modify their
policies so that survival can be exhibited for longer time period.
 Technological Driver Change: In the rapidly growth economy changes are implemented
by businesses in very prompt manner. Changes are results of adopting new technology
and this is rendering high profitability to the business. For earning high profits Ernst &
Young is adopting latest technology in the business so that roles of managers and their
leader can be maintained and improvised in prominent manner. For this effective
trainings are provided to leader and manager so that no complexities been faced at the
time of change adoption. (Emamisaleh and Rahmani, 2017)
SWOT analysis of Talent Plus
Strength Opportunities
 The customers of Ernst & Young are
highly satisfied by the services
provided by them. The company is
using latest technology in their business
operations and to provide training to
their employees so that to provide
desired services to their clients.
 Ernst & Young is highly emphasised on
expansion of their business within new
market territories. So for this they are
acquiring small firm in order to provide
consultation services to start ups.
Weaknesses Threats Ernst & Young is having intense
competition from their rivals which is
making their business to face negative
implications. (Phadermrod, Crowder
and Wills, 2019
 The major threat for Ernst & Young is
that due to global recession their
survival may be hard.
PESTLE analysis of Talent Plus

POLITICAL ECONOMICAL
 European market after Brexit : Ernst &
Young is having high implications due
to Brexit and this is creating
complexities for the business. On the
other hand policies of other nations are
problematic for them to operate in
global market. So changes are giving
positive and negative implications for
the company.(Policy, 2018)
 Ernst & Young is facing high economic
regulations due to which their profits
ratio is affected in negative manner. On
the other hand currency fluctuation
problem is also faced by the company.
SOCIAL TECHNOLOGICAL Changing preferences: In the current
time due to taste and preferences are
changing at prominent manner and this
is a problem for Ernst & Young as they
are required to adopt change in a very
systematic manner.
 Social media Involvement:
Communication is highly spontaneous
in current time in order to deal with this
fierce situation Ernst & Young is using
latest technology in their business
which in overall enhanced their cost.
LEGAL ENVIRONMENTAL
 Business diversification by integrating
various analytics associated with digital
marketing is increasing growth of the
business.
 Expansion for sustainability in money-
making real estate.
How organisation change affect these terms
Leadership Team Individual
The roles of leader also get
changed when changes are
adapted in business. Within
this leaders are required to
Plans and policies get changes
when changes are adopted in
business. So for teams this is
required that they adapt those
Guidelines given by superiors
are required to follow by
individual so that to provide
path of adopting organisational

follow best methods and
practices as well.
changes in prominent manner
and motivate their
subordinates.
changes. By merging internal
and external factors changes
are exhibited in the business.

P3. Measures that can be taken to minimise negative impacts of change
Business environment has been involving various activities which are executing within
an organization. This is done to maximize profitability of an organization. Such execution has
been involved with changes that are required to be used by management team in an organization.
In context to Ernst & Young it is very important for managers and leaders of this organization
has to analyse impact of change that has been implementing and also steps has to be followed for
minimizing negative impact caused due to change (Brooks and Crowe, 2018). Also relevant
techniques are to be helped over changes that have to be applied with positive manner. Such
techniques are being described as follows:
 Creation of Pathway: This is required to be used by the management team of Ernst &
Young in a manner that leaders or mangers has to prepare an action plan that is going to
include all kinds of policies and plans that is going to be helpful fro each employee to
accomplish an project. Action plan is going to be helpful for employees over enhancing
knowledge in order tom make goals and objectives achievable it makes achievement
quick and faster. It can be that this technique is very helpful in developing interest of
employees on the change along with its benefit. Thus, employee will accept it soon and
perform their work according to the new format in effective manner. As this is going to
make faster and smoother performance that helps in goals achievement within time
period specified. Discuss plan with employees: These are the techniques that is being used by the leaders
over conveying of plan that has been formulated with employees over specific roles. An
advise to be given to Ernst & Young manager to keep everything in systematic manner
this means that all things are required to be arranged properly. At the same time feedback
can also be taken by the employees to modify it as per the requirement (Emblen-Perry
and Duckers, 2019). This also makes employees realise there value within an
organization and is going to help an employee perform better in an organization and
motivates him.
Bruke Litwin Model : It is considered to be an vital approach that is going to be used by HR
manager of an organization to greater extent. Managers should examine significance of
workforce regarding the specific task and gives working condition to have effective result which
can be achieved through this theory. Also it displays heterogeneous change and measure needs

for trade that can be observed through importance of business that has to be applied in its
activities. These factors involve various factors that can influence an business like external
environment, mission, strategy, leadership and various other factors. Such factors deal with
different aspects of business that help-s in growth of business. In relation to Ernst & Young
various factors has been explained as follows:
 External environment: In this different things are involved in it that involves social,
political, business ethics, competitors and various other factors are included in it. Such
types of factors are known as external factors. For achieving high profit and productivity
all such factors is going to impact Ernst & Young those changes has to be brought in the
techniques that are existing. Ernst & Young has to perform PESTEL analysis over
dealing with factors that are existed internally. PESTEL strategy is a framework that
helps in dealing with external environment that is going to influence organization in
various manners.
 Mission and strategy: Resisting within market place has to be articulated by the mission
of an organization because of various reasons. Managing an organization is helpful to
create plans with utilization of knowledge in more effective manner. The mission of Ernst
& Young is “ efficient candidates has to be given to industry that can serve better and
more effective manner”. In order to make this statement valid various kinds of strategies
has developed with policies in order to acquire the industry and lead towards its positive
growth. (Olivier, 2018)
 Leadership: In order to make the mission achieved it is very important for manger to
take adopt heterogeneous style of leadership that are Laissez Faire, Transformational
Participative, Democratic, Autocratic, etc. This is going to motivate and encourage
employees to attain all objectives with the given guidelines to employees.
TASK 2: Leadership Decision Making
P4. Different barriers for Organisation change
Organization is required to follow changes that has stated or has not changed. Changes to
be made within an organization are not easy. That is why some organizations has to innovate the
pattern that is existing(ngersoll, Sirinides and Dougherty, 2018). That is the reason some
organizations have to help an business for creating strategies to be implied. Such changes are

important for an organization that targets shifting which is going to benefit the organization.
Ernst & Young is going be used for identification of some barriers has been explained as
follows: Resistance to Change – People is required to resists changes and employees are to accept
low pay to provide stability within an organization (Bratasanu, 2018). Changes has to be
resisted by the employees due to thinking that job is going to become complicated. They
resist changes directly by using political influence or by aggressive behaviour. Competitive Forces - Organisation may aid change in result to external threats. If a
competitor releases a product that's five years ahead of your products that may be driven
to a extreme rate of change that has a high risk of failure.
Force Field Analysis
Force field analysis is required to create by Kurt Lewin in 1940. Such tool is being used
to make decision by examine of forces and against the change to communicate the decision that
has been made. Purpose behind such force field analysis is that conditions are being kept by
equilibrium over forces that are helping in making change or to resist it. Certain steps have to be
followed for this and are explained as follows:
Step 1 – Define your Problem
Under this step manger has talent plus has to list down the modified situation. The separate
condition that has certain problem is going to ease mangers over determining conditions required
to modify. Such modification is going to lead over solving of the issue that has occurred in an
organization.
Step 2 – Define the Change Objectives
mangers are required to think over the factors and forces that is going to influence change. Such
forces are internal and external. (Harrington, 2016)
Step 3 – Identify the driving forces
Brainstorm that kind of forces that has been resisting change. Also mangers is required to think
about strength of the forces and is required to find inter-relationship between the driving forces
that are there in an organization.
Step 4 – Identify the restraining forces
Under this step m, managers of Ernst & Young has listed all the factors change in present for
finding of relationship among restraining of forces.