Leading and Managing Change: Drivers, Impacts, and Mitigation

This report delves into the critical aspects of leading and managing change within organizations, using Sports Direct as a case study. It begins by examining the consequences of change on organizational strategies and operations, comparing the approaches of Sports Direct and House of Fraser. The report then evaluates both internal and external drivers of change, such as strengths, weaknesses, opportunities, threats (SWOT) and PESTLE analysis, assessing their impact on leadership, team dynamics, and individual behaviors. Furthermore, it assesses measures to minimize the negative effects of change on organizational behavior, including the use of market research, training programs, systems theory, and continuous improvement models like the PDCA cycle. The report also identifies barriers to change and explores various leadership approaches. Finally, it concludes with a summary of key findings and recommendations for effective change management.

Unit 17 Leading and Managing
Change

Table of Contents
Introduction......................................................................................................................................1
P1 Consequences of change in organisation in context of strategies & operations of different
firms............................................................................................................................................1
P2.Evaluate internal as well as external drivers of change which creates impact on leadership,
team & behaviours of individuals...............................................................................................2
P3. Assess measures utilised for minimisation of pessimistic affects of changes on
organisational behaviour.............................................................................................................5
P4. Barriers for Change...............................................................................................................9
P5. Leadership Approaches.......................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

Introduction
The process which is liable for causing thing, practice or functions for becoming assorted
somehow with respect to what it was at past as well as in present is referred to as change. This
can create both affirmative and pessimistic impact on the ways in which firm render their
services (Beycioglu, Jones and Harris, 2014). They can be in the form of technology, system,
policies, etc. which are liable for supporting firms within attainment of success. The rationale
behind this assignment is to acknowledge which change is lead as well as managed within Sports
Direct. It is a British retailing group which renders their services worldwide and have various
sporting brands as well as trades. This assignment comprises of change was brought in two
companies which deals within the same industry along with impact created on their
organisational strategies. Furthermore, it comprises of changes along with measures for
reduction of pessimistic affect of change. At last, some leadership approaches will be used for
dealing with specified alterations.
P1 Consequences of change in organisation in context of strategies & operations of different
firms.
Change is a crucial aspect within firm that is liable for facilitation of enhancements
within the execution as well as efficiency for smooth work flow. But it is mandatory for firm to
ensure that changes are executed in an affirmative manner with respect to trends which pertains
within the market place (Bin Taher, Krotov and Silva, 2015). This implies that change
introduced within each firm may differ but each creates a substantial impact on their operations.
In this context, 2 firms have been taken to understand the change on them as well as their
strategies. It has been shown below:
Change Sports Direct House of Fraser
Strategical change They emphasised on expansion and
for this they bought up fashion firm
with an aim to expand their services
in different countries by acquisition
of firms like Jack wills. Their
strategy was to buy as well as build
fashion and sports brands
This was bought by Sports Direct
and their strategy was to divide
within two groups, Fraser's which
contained stocks related with
designer labels and the other
group was rendering their
services to mass market audience.
1

irrespective of financial travails.
Along with this, they emphasised on
reduction of rents so that overall
finances can be reduced (Diaz-
Rainey, Robertson and Wilson,
2017).
This was carried out so that they
can reach maximum number of
individuals. Same plan has to be
carried out within all the layouts.
But the House of Fraser's was
rebranded.
Process change The major alteration in this context is
that they have given KPMG the
responsibility of administration as
they were going through high cash
flow pressure along with trading
conditions from some years.
The operational change which
was carried out by them was
rebranding in which they have
changed their working style in
which they emphasised on
addressing the requirements of
common person. Along with this,
they also shifted their
warehousing as well as
distribution to Shirebrook.
These were some changes made by two different organisation for enhancing their
services. The impact created by these can be evaluated through the usage of Bohner and Arnold
which is liable for identification of potential consequences related with change as well as
estimation with respect to what modifications has to be carried out for accomplishment of change
(Daft and Marcic, 2016). Sports Direct has made some changes with respect to their strategies
and operations. For this, they need to anticipate the probable effect which will be created by
these alterations. The objective was to improvise Jack Wills position within the market along
with their financial performance. Sports Direct will assist them to attain the objectives. On the
other hand, House of Fraser went through a loss of around £3million per week. This implies the
strategies opted by them were not adequate enough to gain success.
2

P2.Evaluate internal as well as external drivers of change which creates impact on leadership,
team & behaviours of individuals.
Change is identified as an important process that is liable to be implemented by each &
every individual involved within business concern. In context of drivers of change that have
been facilitated Sports Direct in both strategical & process change in the firm have been
mentioned below:
Internal Drivers of Change
These are referred to as intrinsic aspects associated with firm that creates a relevant affect
on firm as well as facilitate Sports Direct to bring in proposed changes within their working
environment:
Strengths Weaknesses
 It is number one sports retailer within
market of United Kingdom with more
than 470 stores.
 They have tie-up with various famous
sports brands such as Reebok, Nike,
Adidas and many others .
 Strong online presence and delivers
their services 24*7 and allows their
customers to have access to their
products anywhere along with this
savvy price strategies are utilised which
enhance credibility of retailer.
 The turnover rate of staff is low as they
paid their employees with high bonuses
which act as a strong motivational
force.
 Sports industry is very competitive and
results within slower growth in terms of
market share (Doppelt, 2017).
 Firm operates at low a margin which
leads to creation of doubts with respect
to profitability in future.
Opportunities Threats
 Due to economic issues within  Increasing costs of raw materials
3

EuroZone rumbling on, Sports Direct
has an opportunity to render their
services in western and Eastern Europe.
 Company is following aggressive
strategy for acquisition of brands
around Europe which renders them
with an opportunity for reaching
maximum customers across segments.
They are making use of buying and
building strategies (Espedal, 2017).
creates an impact on revenue as they
render their services at lower margin.
 Due to the Eurozone crisis, tax policies
are changing which creates an adverse
impact on functioning of sports Direct.
 Technological problems can be created
as technology is evolving continuously.
External Drivers of Change
Along with internal drivers of changes, this is crucial for organisation to take into
consideration internal aspects of business as it will facilitate firm to bring in relevant changes
within their working environment. Macro environmental analysis is being carried out by
organisation through the usage of enhanced analytical tool called PEST. This would have
specified the external environment factors that are liable for inspiring an organisation for
bringing in alterations to which they are confined (Komives, 2016). With respect to Sports
Direct, they should have applied the framework for ascertaining external drivers for change
along with impact on team, individuals and leadership. The analysis has been provided beneath:
Basis Impact on Marks & Spencer
Political The stability within political status of United Kingdom renders opportunity
to Sports Direct for thinking about affirmative change within association
which might have enhanced effectiveness of business. For this, democratic
leadership can be utilised which is liable for rendering assistance as well as
create an influence on employees through which they can make choices
within their tasks as accomplish them accordingly. Therefore, it creates an
extensive impact on leadership, group and individuals which leads Sports
Direct to bring up innovative alterations in an effective manner.
Economic UK provides strong financial conditions which creates a significant impact
4

on organisations like Direct Sports for exploiting services which are
accessible (Lawrence, 2015). Sports Direct opts for acquisition of firms
gone on administration like Jack Wills can be both affirmative and
pessimistic with respect to ways in which services are being delivered.
They must be accessible within limits like logistics, supply chain,
infrastructure, etc. This benefits each group, people and leadership with
respect to services delivered and have benefits from economy of UK so
that required changes can be made by Sports Direct adequately.
Social The lifestyle as well as trends in UK keeps on evolving with channelling of
time. This creates an influence on the ways in which leaders of Direct
Sports behave and by furnishing incentives as well as rewards, employees
will be like a change agent (NHS England, 2016). When staff is being
encouraged in an efficacious way, they can exploit their potential through
which growth as well as development can be ensured of Sports Direct.
Technological United Kingdom is technologically stronger country which renders scope
for their employees as well as teams within Sports Direct for making use of
their creativity as well as brings in quick innovations. In this context,
leadership aims at specification of assistance along with appropriate
guidance by which effectual execution can be carried out for bringing in
affirmative change in Sports Direct.
P3. Assess measures utilised for minimisation of pessimistic affects of changes on organisational
behaviour.
Change is considered as an important aspect which pertains within the company. This leads
to creation of affirmative as well as pessimistic impact on the operations of organisation. This
denotes that appropriate measures must be taken by firm through which negative impact can be
minimised relevant margin. Some efforts which can be taken by Sports Direct are illustrated
beneath:
 Sports Direct needs to make sure that constant market research is carried out by them by
which they could have analysed the trends which prevails within business environment
5

(Rodd, 2015). This will enable them to execute appropriate alterations as well as make
the employees ready for this by having interactions with them related with changes in
advance . This will lead them to make sure that adequate support is attained from
employees.
 Sports Direct can render training program for communicating with their employees the
changes which they have to adapt. These training session aims at preparation of
employees for worst situations in an advance so that they when such kind of situations
comes then they should not panic and work in an effective manner when changes are
being carried out.
Furthermore, systems theory and continuous improvement models can be utilised by Sports
direct for ensuring that they can plan for carrying out appropriate changes (Rogers and Marres,
2016) . These models are illustrated below:
Systems theory: This implies the interdisciplinary scrutiny of system in context of society,
science, nature and framework through which investigation can be carried out so that affirmative
results can be attained. System approach will lead them to emphasise on end result which is to
minimise the unnecessary finance or cost rather than the ways through which it can be attained.
Firm can have a systematic as well as efficacious plan of actions through which they can carry
out changes in an affirmative manner as well as provide coordination in activities.
Continuous improvement models: It involves approach as well as mindset that is liable for
engaging their workers within acknowledgement of workers in understanding their customers as
well as processes for driving efforts which brings in sustainable alterations for having better
services (Rothwell, Stavros and Sullivan, 2015)
6

(Source:What is Plan-Do-Check-Act Cycle?, 2019)
The continuous improvement model comprises of PDCA lifecycle. For eliminating
pessimistic impacts associated with change in a organisation PDCA model is being utilised. It
has been illustrated beneath with respect to Sports Direct:
PDCA Model
Plan: This acts as an initial phase in which initiatives are being taken up by organisations
for ascertaining the major causes related with the specified issue. For this, it is important for
entities to carry out market research. In this context, management of Sports Direct has identified
that firms those who are strong but due to some wrong changes have gone for administration are
bought and build like Jack Wills was bought up for merging fashion with sports brand to have
better results (vander Voet, Kuipers and Groeneveld, 2015). This lead firm to develop
themselves by formulating planning as well as strategies for carrying out effectual training
sessions for their employees by which changes can be carried out in an appropriate manner.
Do:After formulation of suitable plan for their presumptive difficulties while introducing
change, the next stage is associated with effectual implementation of planning by which
affirmative results can be attained by Sports Direct. Therefore, strategical and process changes
7
Illustration 1: Continuous Improvement

are brought in by the firm. This stage would have lead them to elimination of wrong decision
making in case if it is used in an appropriate manner.
Check: This is the next phase within PDCA lifecycle which is liable for making contrast
among actual as well as desired performance with a view for carrying out appropriate control
operations (White and Robinson, 2014). Hereby, efficacious application for monitoring
techniques will aid Sports Direct within monitoring as well as evaluation of effectualness of both
the changes which have been made.
Act: It is last stage of model that is liable for marking documentation along with reporting for
alterations that have been carried out. In this case management of Sports Direct is liable for
actually putting the plan into execution. Thereby, it will render guidance for the firm with respect
to information which would have lead them to success or failure with respect to changes which
have been made.
Thus, by appropriate implementation of all the stages of PDCA model Sports Direct can
minimise the pessimistic influences related with change (Yoder-Wise, 2014).
Furthermore, Burke-Litwen model can be utilised for making sure that change processes
are effective as well as efficient. It involves defining as well as establishment of cause and effect
relationship among different dimensions of organisation & they acts as an important aspect while
bringing in organisational carnages. These concepts have been illustrated beneath:
External environment: They are the factors which are liable while bringing in changes
within the organisation. With respect to Sports Direct, they involves behaviour of customers,
legislation, competition prevailing within the market, politics and economy (Beycioglu, Jones
and Harris, 2014). The major factor which creates impact on Sports Direct with respect to Jack
Wills is challenging trading environment which leads them to financial crisis.
Mission & strategy:The statement comprises “To develop true sports people as well as
preserve the true nature of sports”. Strategy of Sports Direct is expansion within fashion & sports
brands by buying as well as building them.
Leadership: The leaders of Sports Direct have opted for usage of democratic leadership
in which individuals are more participative within decision-making process. This enables people
of firm to encourage as well as share opinions & ideas through which creativity is inspired.
Organisational culture: Within Sports Direct, task culture is being utilised as their
strategy makes use of buying and building of firms. Depending upon the firm which is taken up
8

by them (Sports Directs), services are being rendered accordingly (Bin Taher, Krotov and Silva,
2015).
Structure:Hierarchical structure is being followed by Sports Direct to ensure that
services are carried out in an appropriate manner and systematic way of rendering operations is
carried out.
Systems:This involves policies as well as procedures which are being followed by Sports
Direct as it will assist them to support employees and accomplish change as per desired
standards.
Management practices: It involves activities and behaviour which are being carried out
managers and aims at execution of complete strategies. They are liable to comply with the new
strategies opted by Sports Direct as well as ensuring that employees adhere them.
Working climate: Affirmative working environment is provided to their working
environment in which they can share their viewpoints and opinions with higher authority. This
leads Sports Direct to bring innovation within their services (Diaz-Rainey, Robertson and
Wilson, 2017).
Tasks & skills: This involves requirement of tasks as well as alignment with job
description for employees expertise. The staff of Sports Direct needs to have analytical
capabilities, adaptability, time management and efficacious communication which will assist
them within carrying out their operations in an enhanced manner.
Individual values as well as needs: Sports Direct need to acknowledge the expectations
as well as demands of their employees by providing them with work-life balance, remuneration
and various rewards (Daft and Marcic, 2016). Basically, it emphasise on discovering the needs
in terms of quality of work.
Motivational level: Maslow's theory of motivation is being used by management of
Sports Direct to inspire their employees so that they can work up to their complete potential.
Individual & general performance: It involves performance levels of individual
employee and at organisational level. This would have been measured by Sports Direct on the
basis of quality requirements, productivity, customer satisfaction and turnover rate.
P4. Barriers for Change
Change is an important aspect within each organisation which needs them to take
rigorous efforts with respect to leader and employees for ensuring that services are delivered
9

effectually. In this context, it has been identified that there are number of elements which acts as
a barrier or constraint for making changes. With respect to Sports Direct, the probable barriers
for executing strategical and process changes, they have been provided beneath:
Lack of Effective Communication Strategy: This the major hindrance that is being
experienced by organisation while carrying out alterations within organisational premises. With
respect to this, extensive interaction acts as the route map through which leader of Sports Direct
conveys vantage of making out alterations within the firm to employees (Doppelt, 2017). It is
observed that management is not able to co-operate with their employees and they are also not
keen to adapt to changes which are required as well as carry out in day to day activities.
This barrier creates a substantial impact on leaders of Sports Direct and for dealing with
them they need to make use of extensive interaction strategies for conveying information to staff
members of firm. It will aid them to have an edge with respect to bring changes within strategical
& process changes.
Lack of Employee Involvement: Employees are not engaged within change strategies
and therefore organisation must render appropriate information which will enable them to
efficaciously implement the changes in premises. Within Sports Direct, it is identified that
critical extent of employees limits implementation of proposed alterations as proper supervision
as well as directions are not provided by leader. When initiatives are not taken by individuals
then it will lead to lack of exuberance among their (Sports Direct) representatives.
This barrier creates an influence on the leadership along with information to their
employees related with bringing in changes within Sports Direct. Furthermore, the leader needs
to furnish rewards as well as incentives to people who made their enhanced contribution within
implementation of changes in firm (Espedal, 2017). Along with this, training has to be furnished
to their employees which will increase their knowledge in this perspective.
From here it is clear that barriers to creates a relevant influence on implementation of
alterations as well as decision-making of leader with respect to Sports Direct.
Force field analysis is utilised as a change management and assist to acknowledge the
change processes which are being carried by firm. The factors related with this are specified
below:
Facilitating Factors: This element comprises of facets which pertains to business
environment of firm and facilitate entities to carry out changes. (Komives, 2016). These aspects
10