Report: Strategic Change Management and Leadership in Fitness Industry

This report provides a comprehensive analysis of strategic change and leadership within the Singaporean fitness industry. It begins by examining emerging trends, such as the shift from large gyms to boutique fitness studios, and the increasing demand for wellness tourism. The report then applies change management models, including the McKinsey 7S and Lewin models, to assess the fitness industry's ability to adapt to customer demands. It identifies key areas where managers need to focus, such as customer market analysis, marketing strategies, and human resource management, particularly the training and development of fitness trainers. Section 2 applies the McKinsey 7S model to analyze the fitness company's strategy, shared values, structure, style, staff, skills, and systems to determine its ability to adapt to changes. The report also discusses key elements of leadership, including situational leadership, and the importance of vision and team leadership in driving sustainable responses to change. The conclusion provides recommendations for effective change management and leadership in the fitness industry.

MANAGING AND LEADING
STRATEGIC CHANGE

Contents
Introduction...........................................................................................................................................3
Section-1...............................................................................................................................................3
Section-2...............................................................................................................................................6
Section-3.............................................................................................................................................11
Recommendation.................................................................................................................................12
Conclusion...........................................................................................................................................13
References...........................................................................................................................................14

Introduction
The report brings out discussion on three sections beginning with emerging industry of the
Singaporean market, application of change management in the industry and the organisation,
which will guide the managers to work upon to develop an effective organisation with proper
application of change management model. The model used is McKinsey 7S model and lewin
model for change, which is used for effectiveness postulating important seven factors of any
company needed to align and reinforce so that it can become successful. In the third section,
there is a description of key elements of leadership, changing model of leadership, main
learning in terms of its approaches, and clarity of vision for sustainable responses to change,
leading the team, identifying the vision, mission, and key learning in terms of skillset. Fitness
industry has evolved from US because of its highest obesity rates living people in the world.
With the awareness of widespread obesity issues, it is seen that people have started opting for
healthier and exercises lifestyle through fitness. The research associates and scientist have
proven that health and productivity has a strong connection.
Section-1
Fitness industry
Singaporeans started moving away from big chain gyms to the boutique fitness, which offer
huge array of choices. It started from wrestling fitness to the barre classes, MMA, surf
workouts, CrossFit and the small gyms has a novelty in this sector. With closure of 2016, it is
seen that California fitness is one of the biggest players, which has made room in this
industry for both small and boutique players (Lending bee, 2019).
Current trends
The current trends have underwent certain changes due to changing demand of the customers.
It is seen that fitness in Singapore started relying on boutique studios that have taken over the

traditional gyms. The term fitness has evolved explicably as when we have started seeing
burly men lifting huge weights in its flash ads selling the protein powder. The statistics shows
that the demand has increased with annual gym visits of 1.8 million to 2.5 million in the span
of five years.
With an eye to identify the opportunity, Indonesia and Thailand has experienced tourism rise
of 17 percent and 40 percent (Lending bee, 2019). Same as Chinese consumers, there is an
opportunity for the Singaporeans to increase the prominence in wellness travelling space,
which is likely to give several opportunities. Wellness is one of the increasing trends in
Singapore when coming up with Virgin Active, boutique studios provides springboards in
regards to athleisure for penetrating market and the eating healthy foods lucrative
opportunity. Recently, it has been observed that market development move in Singapore was
seen after career ending with the knee injury. Trainers saw that there is no one to provide
personal training so UFIT introduces 85 strong team avails bootcamps, personal training, and
crossFit in the region. The health promotion of Singapore asks for aggressive asking to get fit
by pushing them with programmes rewarding improving health (Lending bee, 2019).
For the last five to ten years, social media has been conquering the world of fitness through
fitness trends such as newfangled fitness and ever-evolving concepts. HIIT (high-intensity
interval training) bursts high intensity exercise with short period is not new at all, which has
become a famous hit from time strapped office working people in order to loose fat. Another
feature is group exercise classes that typically include five to six students. Exercising in a
group avails extra motivation as CrossFit and Boot camps are very popular. F45 training is a
group based functional training tool, which promotes motivation.
Identification of areas will need the manager to work on areas in the organisation
Customer market-

The customer market of Singapore indicates that the population for fitness freak actions have
been increasing regularly. The main aims of whole industry is to deliver value to target
consumers and maintaining a strong relationship. Health consciousness is one of the
important social factors across the world. Fat was considered beautiful but with the increasing
diseases caused due to obesity, people have started pay attention to healthy diet. Technology
has also become important component in paying attention health as treadmill, machines, and
exercising through bi cycling has become more convenient to the customers (Webster, and
Webster, 2019).
Marketing- A manager can use social media platform to promote the organisation’s services
and help the customers to deal with their healthy lifestyle. The organisation has to conduct a
research to identify the target market. To undertake segmentation, targeting and positioning, a
fitness centre can create an user friendly website, search engine for gyms, track the marketing
campaigns, post on social media, gym promotional activities, video content marketing and
written content marketing. Further, the organization can entice few new prospects that can
come up with special intro offers. It is quite important to know that as per (international
health, racquet and sports club association) IHRSA, it is seen that $30 billion people in this
industry has grown for at least 4 percent for the next ten years and there are no signs of
slowing down of this industry.
To promote and penetrate the people`s mind, a fitness centre should always share, avail
compel success and review stories from happy consumers so that it would help to incorporate
reviews for its marketing tactics.
Human resource management-
The most important point to consider in human resource management is the training and
development of fitness trainers. The severe challenge faced by the Singaporean market in

Fitness industry comes up with lack of training especially among the personal trainers.
Recruitment will include attracting an appropriate mix of able people, motivated people, who
totally engage in the career of health and fitness. HR department of fitness centre will
understand the capacity of potential people especially communities, young generation and
specialised people in skills of training people (Webster, and Webster, 2019).
Along with talent as a personal trainer, it is seen that it is important to retain and motivate the
clients at the same time. As weight loss or gain is not a destination, rather it is a journey.
Fitness is the game of both mind as well as body so it is important to empower people and
train them in groups as a healthy competition and motivational trainer can help the customers
to achieve their targets. Employing as a personal trainer is a three-way relationship lying
between both employees, customers and management. Their active participation established a
healthy relationship with the fitness centre receptionists. With the emergence of greater
demand of fitness centres and its related services, organisations can retain its best trainers and
employees to keep them encouraged while providing customers with better services in this
competitive world.
Section-2
With the growing opportunities in the Fitness industry, it is seen that there is a continuous
change in the demand of the customers. Due to regular changes, there is a need to comply
with an effective change management model for successful implementation and the changes
in the operation. It will consider few points including environment assessment, leading
changes, relevance of purpose, and identification of appropriate human to decide whether it is
an asset or liability and the coherence of the purpose (Bardus, Beurden, Smith, and Abraham,
2016). Before applying defined model of change, it is seen that-

Linking the operation with operations strategically- it is important to realise change theory
plays an important if an organisation wants to sustain in the competitive environment.
Linkage of activities is a two way process that could ensure strategic decisions to lead
towards the operational changes and these changes affect the strategic decision (Sim, 2018).
Determination of asset and liabilities in regards to Human resource- With a pool of
knowledge, attitude, and skills as being held by the company towards the success. It can
become threat for the organisation success when the combination is not appropriate (Sim,
2018).
Accomplishment of purpose- the main concern in regards to change is to ensure whether
decisions and actions, which will flow from above factors. One can use 7-S model in several
situations when it is useful to analyse various segments of Fitness Company and them
implement proposed strategy. The model is used to analyse the likely effect of the certain
future changes in order to align processes when merging (Bardus, Beurden, Smith, and
Abraham, 2016).

(Source- mindtools, 2019)
Three items are categorised as hard elements including strategy, systems (formal processes
and the IT system), and structure (reporting lines and organisation charts). These elements
can easily affect, as they are easy to identify and influence the management structure. Soft
element include shared values, skills, staff, and style (WILKINSON, 2017).
Fitness centre can easily plan to build and maintain competitive advantage as compared to its
competitors.
Strategy has been formulated on the basis of mission and vision, which the company has been
aiming innovation, safe, secure and convenience, and affordable. The centre ensures that they
do not accept any substandard items and equipment. The company can strategize to offer
exclusive benefit of the membership related to club accessibility (WILKINSON, 2017). The
company can think of offering 24 hour tanning with certified personal training with

assistance of their members. The company should have its competitive edge to access
security, surveillance, and technological development in terms of software (Payne, and
Askeland, 2016). While marketing, it is seen that an organisation must offer product and
business, which people often enjoy where industry continues to enhance (WILKINSON,
2017).
Share value- The values will be strategically infused while creating virtual personal training
facilities as its main concern is to assist members to meet the goals of convenient wellness in
an exciting manner (Teo, & Wen, 2019). The shared values are relatable comply with vision,
mission, and the principle that are convenient, fun and affordable with an exciting experience
by creating formidable model for each division of business (Teo, & Wen, 2019).
Structure- The structure has a defined hierarchy as defined in a figure given below-
(Source: Men's Health Singapore, 2019)

Style- A manager should opt situational leadership so that it can influence its staff and
trainers. Situational leadership suggest a leader to call for such a leader to evaluate and
examine given situation and select a leadership to set in a situation (Payne, and Askeland,
2016). This leadership will include four characteristics supporting, directing, coaching and
delegating. There is a need for a leader and the best-suited trainers to direct and win
autonomy in order to attain a market place in the mind of people and customers Storey,
2016). Further, discuss the situation, for instance- when it was found that Singapore
customers are suffering from knee issues then a gym launched the concept of personal
training. It was the result as soon as it found that there is a need to identify the situation and
undertake the process of thinking at it (Corvelay, 2017).
Staff- The staff is expected to retain maximum efficient fitness trainers that even have the
ability to inspire, educate, and dynamic from the whole industry experts. It should also
include one-to-one interaction with the preferred franchisee and vendors (Corvelay, 2017).
Skills- In order to attain certain skills and to become a successful trainer, he should always be
fit and have whole knowledge of HIIT (high-intensity interval training), Group exercise
classes, bodyweight training, Crossfit, cardio, yoga, stretching, and community workouts. A
trainer should have the ability to motivate the customers for the workout they opt for (Payne,
and Askeland, 2016).
System- The system to adopt change and shift in demand of the customers will include
monitoring closed circuit of television system, high quality speakers for inspiring music, with
other exclusive benefits. A member can access monitoring of personal safety, and circuit
television system. The integration with the system where owners can operate as safe and
secure with reduced staffing needs. A check-in software has been fully integrated with
security system. The system ensures accessibility, security system, integration with payment

and billing process. The system necessitates member check-ins, management tool, and its
integration with marketing features. The system is inclusive with vending solution, creating
revenue without staff, and cashless designs allowing the members to charge purchases from
their account of membership (Cummings, Bridgman, and Brown, 2016).
Section-3
This section is purely based on the qualities, clarity, vision, mission, impact, and team up,
lead, approaches, and skillset characteristics of a leader. Large-scale change needs to be
strong enough to achieve organisational success (Anderson Baur, Griffith, and Buckley,
2017). The main vision will include recognizing a leader in relation to fitness facilities for the
target market and its interest to expand it in several parts of country (Chan, 2019). The
company should aim to clean and upscale fitness environment, comfortable setting while they
do workout, availing facilities, and equipment, personal training by the specific professionals
and the general attributes for the customer services Payne, M. and (Askeland, 2016). The
mission is to offer convenient, fun, and affordable options to its customer while maintaining
health in terms of physical and mental features. Mission is to motivate people to maintain a
healthy lifestyle and also avail them with several avenues helping to achieve the desire to
foresee the situations (Men's Health Singapore, 2019). Certain theories of leadership include
Great Man theory, trait theory, contingent theory, charismatic theory, transactional leadership
theory, and transformational leadership. This great man theory includes that leadership is
inherent trait where a person is destined to emerge as a great leader from the very beginning.
In important words, people are born to emerge as leaders. Trait theory explains an individual
as their key features to become an effective leader, as they are inherent from birth. Some of
the important leadership trait is based on socioeconomic features, physiological traits, task
related traits, intellectual traits, and personality traits. In order to become effective leader,
behavioural theory focuses on behaviour of leader rather than its traits. Contingent theory of

leadership comprises of effective leadership with three factors such as traits, situation, and
behaviour. Charismatic leadership includes envision, energising, and guiding. Leaders
foresee the required future possibilities and also creating vision with high dreams and
expectation. Leaders avail complete support, compassion, trust and guidance.
Attributes and qualities of a leader-
Ability to lead and develop others
Showcasing proper concerns for other`s well-being and development of mentor staff
Trusting others, well-being, developing leadership potential, delegate, empower, and
including others concern for the decision-making
Facilitating the changes and managing skilfully
Personal qualities
Remain honest, open, concern for the organisation, consistent, solution to the issues, and
achieve organisational goals
Building shared vision, communicating vision, sensitive as per the needs of the stakeholders
Easily accessible, sensitive, approachable, and not status conscious (Men's Health Singapore,
2019).
A leader can undertake learning aspect, dynamic, inspiration, education, and presentation
from the industry. A leader should be capable enough to deal with other vendors of the
industry displaying training and development. A leader should be effective enough for one-
to-one interaction with corporate staff membership with support needed (Chan, 2019). It
should promote education in business and community with advanced sales, operation, and
marketing. Leadership is an art to influence people, in an effective way and then differentiate

them from the transformational leadership from democratic, transactional, situational and
many more. It has several approaches for a situation to know that they have chosen the right
one “approach.” These approaches and models can help a leader to become an effective
leader (Teo, & Wen, 2019).
Recommendation
From the above discussion, it is seen that the organisations in the fitness industry should
thrive to understand that a business should offer products that a person enjoys in the industry.
A company should offer convenience to people that are seeking for fitness clubs and other
exercises. A fitness company should offer affordable fitness option for everyone. The owner
should pay attention to each customer and his or her passion to provide them with high
quality and superior experience. An organisation can gain its position as a market leader,
which maintains huge growth rates, as it is one of the largest and fastest industry in the world.
As far as the leadership approach is concerned, organisation should opt for proper
understanding of external environment so that it can easily cope up with every situation that
can be recognised as “situational leadership”. Online personal training must be given to the
people who cannot come to fitness centres due to high distances and lack of time. Change
models in regards to leadership have suggested the situational leadership to comply with the
situations of emerging dynamic business environment.
Conclusion
From the above discussion and recommendation, it is seen that this report is an assistance to
grow the fitness industry. In this industry, the customers are more interested in health
programs where a business can turn to assist people to get fit, as corporate world is engaging
people day and night. Personal training session has become one of the most popular concepts
in fitness industry. In this market, after the knee clashes and time issues it is seen that virtual

online training come up with workouts for the customers as being determined by data and
information as being gathered from the wristband and its scale with their exercises that are
needed to achieve maintain maximum health as being outcome of information recorded.

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