Understanding and Leading Change in Modern Business

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Understanding and Leading Change

Table of Contents
Introduction –...................................................................................................................................3
Task 1: Managing the Impact of Change –......................................................................................4
Task 2: Leadership Decision Making -...........................................................................................8
Task 3: Leading Change -..............................................................................................................11
Conclusion –..................................................................................................................................20
References –...................................................................................................................................21

Introduction –
Since from the mid 2000’s organization has emerged with latest technologies and environmental
changes. Very few marketers have been opened up to innovative new techniques in their
business. This impacts the medium sized organizations as they have lack of resources and capital
and they can’t match their requirements with latest trends and fails. But this competition has
developed many opportunities for marketers to show their skills on global platform. To
overcome the limitations of old traditional market, firms have become more sophisticated.
Moreover the only way to get success in today’s world is to understand the facts of changes and
respond accordingly. Many kind of operational tactics has been described in the report section
that are necessary to lead in this competitive market. Completion could be an opportunity to
grow if business takes it in positive manner and utilize their efforts to achieve success. In the
changing scenario it is time for business management to exercise leadership. This can be
consistent with social instruction theory and observation of nearby competitiors.

Task 1: Managing the Impact of Change –
Part A: Responding to Change
With changing environment it is important to understand the need of customer and their
perception towards organization. Business culture is totally depending on such factors that
describes the internal and external working of market. Change in economy affects these drivers
of organization and influence its decision making capacity. These can be referred as surprise
incident that impacts the business operations in positive and negative way (Anderson, 2016).
Lets take an example of Verdant Leisure, a medium sized UK based company. The company
started its business in 2010 on small scale. With passing time it’s improve its facilities and start
expanding its business outside the country. But when technology came into existence it starts
affecting the company constant growth. Medium size business doesn’t have bulk amount of
resources and are not financially strong, so these sudden changes in techniques become the
reason of their decrease productivity (Hopkins, et. al., 2014).
These changes increase the competition in the market and affect the business drivers.
Internal drivers - Internal drivers are the functions that happen inside the organization. It refers to
inner changes of business such as structure, culture of business and condition inside the
organization. There are many internal factors that affect the image of medium sized business.
 Change in management - The manager is the essential key of organization that handles
the all activities related to productivity, strength and profit of business. When system
changes it leads to change the authority and controls of industry. These differences
directly affect the profitability of firm (Giauque, 2015).
 Change in customer perception – With the emerging technologies there are many
companies in the market that provide the same product to customers with different offers.
This leads to change the customer desire with the changing society. In results of this it
decrease the consumption rate that could be a high loss for medium sized marketers.

 Technology oriented – The new technologies make the old obsolete. It is important for
marketers to keep it updated with environmental changes. Almost all the competiors in
market invest their capital to develop technology in their business and it helps them to
grow their business.
External drivers - The external factors that occur outside the company premises but their
changes impact the business beyond limit. Customer satisfaction, social and political
conditions, change in technologies are common external factors. In order to react these
differences industry should refer environmental monitoring and scanning. Some of the
impacts of external changes that hit the business growth –
 New competitors – completion create challenges and also provide opportunities to
take positive outcome of it. New competitors generate new troubles for business as
they proposed new ideas, innovations and techniques to make customer belief on their
products. And it leads to high loss of customer demand (Belias & Koustelios, 2014).
 Political influence – Business suffers due to interaction of political parties as they
introduced new laws and policies to markets that affect the business positively or
negatively.
 Economy changes – There is an internal connection between the business and
economy, if one changes it impact the other. The growth of any business depends on
its economy factor that describes the performance of marketers in front of people.
Also helps to deal with customer requirements.
Part B: The Impact of Change –
Change management can be defined as the process of reviewing a business structure, its direction
and objectives to serve the need of people. Change is the constant feature that defines the life of
any business in the market. Therefore it indicates the ability of business to be in the future also it
elaborate their struggle to deal with these changes (Giauque, 2015).
Since it is not easy an easy task to predict the behavior of human nature towards any change. But
to stay in market, business needs to expand its resources using the latest technologies and
infrastructure.

In context of Verdant Leisure four changes introduced that are planned and emergent
approaches. Using Peter’s analysis model, the effect of change is determined by Verdant leisure
before and after performances. Tom peters 7 s model link the organizational strategies with its
effective representation. The seven factors of this model are – Strategy, Structure, System, Staff,
Style, Skills, and Shared value (Hopkins, et. al., 2014).
Implementation of this model was to guide the business towards a particular direction to get best
outcome from its production. This model represents the relationship between strategy planning
and structure of business.
 As a medium sized company, Verdant loose tight principles revels their strength to deal
with losses.
 The managing director of Verdant decides to tight its customer service to gain client trust
and satisfaction towards organization. And with changing its services it simply fire the
market with its outstanding performance.
There are some methods to overcome the impacts of environment changes.
 Collaborate with high skilled people – When people in the organization are well aware of
their responsibilities and actions then a business get potential to survive in high
competitive market. To deal with the circumstances it is necessary to work as a team.
Every member in team should perform his role effectively and discuss their ideas about
development to others. When a set of people work together then they develop the new
strength to deal with problems.
 Managing resistance - Resistance to change is the processes that affects the growth rate of
business at initial stage and obstruct its path to accomplish its goal. On the other hand
resistance can be seen as general change that encourage the transformation of
management at work place and develop new capabilities to perform the surrounding
chang (Belias & Koustelios, 2014).
 Change in agenda to get appropriate output from resources can be a helpful method to
design the structure of new technology oriented culture that signify the success factor of
evaluation.
 Set Targets to achieve success – Management should define some set of targets with
deadline to implement their strategies and motivate their people to achieve their goals.

 Empower innovation with creativity – every business has its own identity in the market to
justify its product equity. Marketers should focus on to create some uniqueness to their
production so that it became memorable to customers (Kuipers, et. al., 2014).
From the perspective of environment changing theory, the most common need for business to
stay updated with latest trends. Companies required positive efforts to manage their resources
and reshape them with changing client behavior.
Organizational changes can be referred as transformation of complete industry in terms of
management, resources and services. Major effect of these changes is in form of change in
consumption rate, change in human nature, complexity of market and communication mislead.
These organizational changes reflect widespread revitalization of strategy implementation,
organizational leaders and integral transform of business (Anderson, 2016).
The planned approach highlights the approaches that are required to change circumstances and
set their identity to global market. The effect of internal and external control, differences in
management settings and behavior of user desire that affect the strength of business. In order to
make valuable position in the global platform, industry need to focus on strategy implementation
and enhancement of quality production.

Task 2: Leadership Decision Making -
Let’s consider the example of Rio Tinto which is the world leader in the production of
aluminum, coal, copper, diamond, iron ore and uranium A multinational British-Australian
company, with its headquarters in London, England. It has gone through many merger and
acquisition and now the company operates over 6 continents. A Force Field Analysis shows the
analysis and evaluation of the forces that can bring a change in business. In analyzing the forces
of a change, there are two main forces in action –
1. Driving force: the one sustaining the change.
2. Restraining force: the one restraining the change.
For example, if customer require a new service, then it is driving force for company. while, if
company isn’t able to handle new technology for futures, then it is restraining force. By
identifying the forces which are strengthening the change, one can take decisions to support
those forces. The same goes for the restraining forces. Once identified, different strategies can be
considered in order to manage them. Let’s consider a force field analysis for machinery upgrade
in factory (Benn, et. al., 2014).
Driving forces –
 Customer want new product: The demands of the customer can lead to the most driving
force for a company. If a customer wants new product or service than company finds way
to make that happen even if they need new machinery (Anderson, 2016).
 Improving speed of production: Introduction of new machinery with advances technology
can drastically improve the speed of production which is very beneficial as a
manufacturing company.

 Raising output volume: New technology with its increased production speed helps in
increasing the manufactured output by many times and thus help the company in meeting
with the customer demands.
 Increasing Maintenance costs: Keeping up with old machinery leads to continuous
maintenance costs which increases as the machinery gets older. New machineries have
low maintenance cost as compared to old technology (Kuipers, et. al., 2014).
Restraining forces –
 Disruption: New technology is bound to bring some kind of disturbance amount the
employees, like who is going to operate this, some might want to work on this new
machine while other may want to avoid to learn new thing.
 High Cost: New machinery can cost a huge sum of money which needs to be carefully
considered before investing.
 Uncertainty of staff in using new technology and losing their overtime: Staff needs to be
taught how to use the new machine and proper training is also required for learning new
technology. The staff might need to lose their overtime due to learning to use new
machinery.
 Impact of new techniques on work environment: It can lead to some workers adapting to
new technology while some in against the new technology. This can affect the work
environment between the employees.
The barriers for change and the influence on leadership decision making are due to these
restraining forces. The decision is made after confronting all the barriers and driving forces
related to the change and betterment of organization (Giauque, 2015).
The use of force field analysis in relation to the meeting the organizations objective of upgrading
to new machinery has both advantages and disadvantages to it.
Advantages of Force Field Analysis are –
 Visual Summary of various for and against, with all information.
 Helps in identifying the obstacles and help in strengthening of plan or decision-making.
 With diagram it is easier to communicate and assist group to develop an understanding.

Disadvantages of Force Field Analysis are –
 Requires every member to participate so that they all can have the information (Benn, et.
al., 2014).
 If full participation is not available it is very difficult to provide the complete picture.
 It may lead to bad influence for team as it led to a division in the group between those
who support the change and those who are against the change.

Task 3: Leading Change -

Any large-scale change within an organization requires a strong, emotionally intelligent
leadership to succeed. The models for leading change may not always be right but they provide
something crucial to learn and help in move forward with regards to personal situation we are in.
These models help one to develop mental map of the work, what concerns the situation project
team or the organization and also give options for dealing with those difficult circumstances we
inevitably encounter in our daily lives. Each of these models have common attributes which
should be present in effective change leaders, they are (Hopkins, et. al., 2014). –
 Self-awareness
 Self-management
 Social awareness
 Relationship management