Leading Change Report: Evaluating Organisational Change Strategies

This report provides an in-depth analysis of leading change within organizations, specifically examining the experiences of Marks & Spencer and House of Fraser. It delves into the drivers of change, the impact of change on strategies and operations, and different types of organizational change, including transitional, transformational, and developmental approaches. The report explores both internal and external drivers of change, such as leadership, communication, and market forces, and how these factors affect leadership, team, and individual behaviors. It also discusses measures to mitigate the negative impacts of change, including planning, technology adoption, training, and improved communication. Furthermore, the report critically evaluates organizational responses to change, applying models like Systems Theory and the Continuous Improvement Model, and examines barriers to change using Force Field Analysis. It also covers leadership approaches, change management models, and provides recommendations for effective change management strategies. The report concludes with a critical evaluation of the change management processes within the selected companies.

Understanding and Leading
Change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ACTIVITY 1...................................................................................................................................3
M1: Drivers of Change................................................................................................................3
P1: Impact of change on Strategies and Operations....................................................................4
M2: Types of Organisational Change..........................................................................................5
D1................................................................................................................................................5
P2: Internal and external drivers of change affect leadership, team and individual behaviours. 6
P3: Measures to decrease the negative impacts of change..........................................................7
M2: Critically evaluate organisational response to change.........................................................8
Apply Bohner and Arnold Change impact analysis..................................................................10
Conclusion and Recommendations............................................................................................10
ACTIVITY-2.................................................................................................................................11
P4: Barriers to the change..........................................................................................................11
M3: Force field analysis............................................................................................................12
D2: Critically Evaluation of force field analysis.......................................................................14
P5: Leadership Approaches.......................................................................................................15
M4: Appropriate model for dealing with change effectively....................................................18
D3: Critically evaluation of the change management................................................................18
Appropriate model for dealing with change effectively............................................................21
Model of the change management.............................................................................................21
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................23

INTRODUCTION
Understanding and leading change is specially organized to prepare stakeholders for
meeting the issues which occurs during initiating and applying changes. In simple term leading
change refers leads changes in strategy or participant operations for meeting macro and micro
environmental issues. It helps to improve team activity by motivating them for performing the
best at workplace. The main purpose of the leading change to recognize problems and
implementation of the profitable strategies so that organization enables to take sustainable profit
for prolongs time. The effective leadership plays vital role for leading change in organization and
employee performance.
This report will cover into two activities such where choose two different companies for
understanding leading change. In the first activity will take Marks & Spencer and House of the
Frazer. M&S group plc is a British multinational retailer company which is headquartered in
Westminster, London. Organization offers wide variety products such as clothing, home products
and food products. House of the Frazer is the British department store group where 51 stores of
itself brand operates across the UK and Ireland. It is established in Glasgow, Scotland in 1849
and famous as Fraser & Sons. On other hand Nokia will take for the activity second. It is Finnish
multinational telecommunication, information Technology Company. It is also famous as
consumer Electronics Company. It is established in 1865 and headquarters in Espoo, Finland.
Nokia offers services worldwide and subsidiaries are Nokia network, Bell Labs, Nokia
Technologies etc. In this report will cover how understanding leads changes in strategies and
stakeholders performance.
ACTIVITY 1
M1: Drivers of Change
Drivers of Change denoted to the forces which are exhibited by the internal or external
factors to changes the shape of the business. These changes include plans, strategy, operations,
products and services. It mainly forced by the internal drivers which lead to external pressure for
the companies.
Marks and Spencer holds good value in market but due to poor leadership possessed by
the chairman of the company (Hayes, 2018). No actions taken by the business for the evolution

in the market led them bad situation in market. They did not focus to digitization of the
organisation.
House of Fraser is positioned well in the market the unsustainable cost base has led them
to closure of it 31 stores in the UK and Ireland's market. Low customers attraction points for
example discounts coupons are invalid on Thursdays. Not focused to bring technology. Focus to
add luxury brands without proper planning.
P1: Impact of change on Strategies and Operations
As Marks and Spencer led to unstable condition in market due to the various reason
Improper management, less motivation to employees, poor leadership, no awareness towards
technology innovation and failed to fulfil the customers’ expectations. These things impact the
company's position in market. So they focused to take the changes in their organisational
strategies and operations. Impact of change on business is as follows
Change in Organisational Structure, previously they followed the centralised decision-
making processes in which authoritative bodies take the decisions. This driver of change helps
them to use the flat structure in organisation (Bradley, 2016).
Strategies: Marks and Spencer planned to shift on digital platform. This helps to improve their
market value. Technology changes in which they focus to open online stores for the customers
rather than physical stores are effectively implemented.
Operations: Company change its operations in terms of Legal change, for example they are
more concerned for environments in which they try to manage waste and lower the amount of it.
Consider the better leadership in which they use servant leadership type to motivate employees
towards their work.
House of Fraser faced the bad phase during 2018 in which they became the struggling
retail giant. Drivers led to change of the company are instability, cost of production,
unsustainable future, improper management, unstructured operations and failed to meet the
customer’s desires. Impact of change on company is as follows
After Mike Ashley bought the company, he tried to keep open the 80% stores and make
them high street's giant (Andrew, 2017). But it was near to closure of the stores approximately
39 stores due to unsustainable of operating cost.

Strategies: Company change its marketing strategy in which they provide vouchers to their
customers.
Operations: Company focuses to bring change in the organisation like they focus to change the
cost of the production in which they follow the low cost productivity.
M2: Types of Organisational Change
According to the above discussion on the impact of changes in both companies, here
mentioned there organisational change types:
Majorly three types of organisational changes are
Transitional, this happens when businesses recognise that they need to bring new actions and
approaches along with new strategies for the growth of the company.
Transformational, in which the company change the whole scenario along with structure ad
norms of the business (Blanco-Portela and et.al., 2017). It includes new process for the
development of the firm.
Developmental, this applies on the existing condition of the company and the processes and
strategies need to be improved only.
Marks and Spencer used Developmental organisational change type. As they need to
improve their existing system they shifted to online platform for selling their products.
Developed the leadership strategies so that employees will be motivated and leads to customer
satisfaction.
Positive impacts:
 These change help to increment in sales.
 Motivation in employees.
Negative impacts:
 Increases the cost of investment in terms of adopting technology advancements and
trainings and development of the staff.
 Difficulties in convincing the public.
D1
House of Fraser applied Transformational organisational change type. Company need to change
the strategies, leadership and approaches with action plans to overcome from the failure of their
existing store (Mishra, Dimri and Chaubey, 2017). As they are near to closure, also they required
to change the productivity cost in context to operations.

Positive impacts:
 These changes bring more consumers to this retail giant in market.
 It helps to stabilise their position in market.
 Saves the cost of production.
Negative impacts:
 Increases the cost to settle down again in the market.
 Face difficulty for changing the internal environment.
P2: Internal and external drivers of change affect leadership, team and individual behaviours
Internal drivers of change
Partial corporate culture: partiality with the eligible employees at the workplace, done by the
managers. Giving credits to other staff members and discrimination at workplace.
Poor Communication: indirect or poor communication between the upper authoritative bodies
and employee at lower level.
Lack of Leadership: as the employees are less motivated for their work due to improper
leadership at the workplace (Bhandari and Bhandari, 2017). If leader does not provide right path
to rest of the company then it may lead to loss them.
Weak strategies: marketing, and company's weak structure and approaches.
These internal drivers like lack of the leadership, partial corporates culture and poor
communication affect the individual, leadership and team behaviours. Marks and Spencer
company is on the path of failure due to not having proper leadership and poor communication in
the organisation which affect their employees. So it needs to be changed in the company. Drivers
of change like weak structure, strategies and marketing ways lead the House of Fraser towards
change. Both companies have these factors to be solved at primary level so the leadership,
individuals and teams behaviour would be improved and well managed. It helps in enhancing the
productivity and generating high revenue.
External Drivers of change
Political factors: political conditions including taxation, trade policies.
Economic factors: this supply and demand chain.
Environmental factors: change in climate, ecological issues (Jasinskas, Svagzdiene and
Simanavicius, 2016).

Technological factors: innovation, research and development and automation affect the
organisation's employees.
Legal factors: giving the safety and health protections to the labours and consumers.
These external factors affect the Marks and Spencer and House of Fraser company’s
individuals, team at different levels like company have to give the roles and responsibilities
according to their eligibility. Suppose the individual is better in designing advertisements for
marketing the products then it should be given this role. Team is developed for the market and
research which analyse the external condition in terms of the political, economic changes,
customers’ demands changes so it will be proved beneficial for the company as they give the
duties according to their eligibility and skills.
P3: Measures to decrease the negative impacts of change
Planning: plan the execution of the new business strategy at primary stage. This minimises the
risk of the failure of the business plan. This helps to find the requirement of the fund in
implementing the change in the company.
Marks and Spencer needs to shift on the digital platform for the development of their business
so, it neds to be planned at initial stage for the success of it.
House of Fraser needs to plan the structure of the base cost at required to in the business at
primary level. Also, the strategies they follow like focusing to add the higher brands like Gucci,
Prada's products in their store. So they have to do proper planning for their execution otherwise it
may lead them to failure.
Technology advancements: technology innovation should be adopted at the workplace by both
companies for keeping report about the sales and production. Also, they need to shift online
platform for the sales, so that it helps them to increase their sales.
Training and development: Employees must be trained for the new technology usage and new
strategies and rules and regulations followed at the stores (Clark and Harrison, 2018). This helps
Marks and Spencer and House of Fraser to improve their efficiency of work of the employees. It
leads them to increment in the productivity.
Improvement in communication system: Install proper communication systems at the workplaces
so that if anything goes wrong it would be immediately informed to the managerial levels. This
helps in sorting out the issue on time (Herzog and et.al., 2017). House of Fraser and Marks and

Spencer have to focus on it because the employees will be able to give the suggestion about the
problems to be solved them on time.
Keeping an eye on external environmental changes helps them to proper evaluation of the current
condition. If any fluctuation is found in market they can opt the right strategy. Both companies
are required to keep record about the market situation for their development.
M2: Critically evaluate organisational response to change
According to Teece (2018), Systems theory, the system is interdependent and
interrelated parts in the organisation. This theory is defined as the different parts of the
organisation works together to achieve the common objective for the business. It keeps their
working in limited time period and in certain boundaries. So system theory supports the
development of the concepts, strategies and approaches in favour to get success. This model help
the Marks and Spencer to analyse the company's present situations and the change they adopt
would be properly tracked. House of Fraser needs to evaluate the internal condition of the
system, so they can get growth like their new strategies should be shared with the employees so
that they would be aware of it.
On the other hand, Continuous Improvement Model, basically support the strategies
and approaches which are used by the companies to continuous improvements in their current
processes. This focuses to achieve large improvements (Sanchez and Blanco, 2016). It follows
Plan-Do-Check-Act concept because this is cyclic process in which improvements continue in
cyclic way.
Plan- analyse the current situation of the company and then plan new strategies which includes
different ideas for improvements.
Implementation of the plan
Check- analysing and comparing the current situation with previous and find out the corrective
measure which needs to be addressed (Larsson and et.al., 2017).
Act- collects all the data after the change implementation and takes step according to the need.
Also, keep these record for the future references in terms of improvements.
Marks and Spencer and House of Fraser use this model in response to change at their workplace.
Both can keep tracking of the improvements they adopted. So it will be beneficial for them to
take the required action son time.

Also, by recognising Burke Litwen Model, shows various drivers which leads to change
in the organisation (Coleman, 2018). Environmental factors plays important role in terms of
driver of change. These are some factors which influence them in different senses
External Environment: the outsider circumstances affect the business. For example condition of
market or consumer behaviour.
Individual and Organisational performance: it refers to the overall output generated by the
company. For example turnover, customer satisfaction, productivity, etc.
Transformational Factors- these factors needs to be addressed in the business for their betterment
because these are attached strongly with the characteristics and processes of the firm.
Leadership: proper leadership provides right path to the company's staff members. It helps to
develop the motivation and vision to achieve common objective for the organisation.
Mission and strategy: purpose and processes of the company are described in this factor.
Organisational Culture: norms, ethics and values possessed by the organisation.
Transactional Factors:: these include daily operations done by the company.
Management Practices: activities and behaviour of the management, they carry the strategy for
the practices (Burke, 2017).
Structure: segmenting the structure in hierarchy, reporting channels, departments.
System including policies and procedures: rules and regulation followed at the workplace. For
example reward systems, legal system.
Working Atmosphere: Working environment for the teams. Employee’s possessed good
relationship among them is good for the development of the company.
Motivation: inspiration and force within the employees for the work.
Task Requirements and skills of individuals: meeting the job profile with the skills and expertise
of the employees.
Values and needs of individuals: expectations of the employees like salary, rewards,
responsibilities etc. which needs to be fulfilled.
On the other hand, this theory leads both companies towards success, as it covers all the
developmental, transitional, and transformational changes. It touches all the points in the
companies which are necessary in doing business activities. It would be proved beneficial as the
House of Fraser record all the external environmental changes which harms their business
previously. So it helps them to improve their market research criteria. Marks and Spencer is

losing its worth in market due to not evolving from two decades, so they need to develop their
strategies along with transformational factors.
Apply Bohner and Arnold Change impact analysis
Bohner and Arnold explained the change impact as the identification fo the output of
change or the things needed to be modified in organisation. Also, the impact analysis focuses on
the scope of changes with design and details included for this purpose. Both the evaluation of the
resources required to manage the change and the identifying potential risks are assessed in the
impact analysis of change (Malhotra and Chhabra, 2018).
Bohner and Arnold suggested three techniques for impact analysis:
Traceability: In this, relationships between the requirements and scope of the change is
mentioned
Dependency: Various modules, logics, variables are defined to find out the consequences of the
change initiation.
Experiential: It is understood by the expert design which helps to review the impact of change
and give judgement about the change (Block, Riedel and Herrmann, 2019).
Marks and Spencer and House of Fraser both companies can use this model for the
change impact analysis according to their comfort. This model helps them to achieve the success
and stability in the market due to previous assessment of the impacts of the change. It evaluates
the potentials risks at primary stage which can be removed and decreases the risks.
Conclusion and Recommendations
According to the presented scenarios of the Marks and Spencer and House of Fraser, both
companies lead to failure due to their unawareness towards the market conditions and consumers
demands. The report, suggested taking the changes at the workplace which helps them to achieve
success and attains stability. As these companies are too older and hold a big part of market
share, so they have to use their expertise in terms to overcome form these downfalls. Few
recommendations are here
 Marks and Spencer and House of Fraser needs to improve their communication channels
in the internal and external environment so that they can coordinate properly.
 Needs to adopt the Technological innovation at the workplace and shifted to digital
platforms. It helps them to increase their productivity and sales.

 Both companies required to change the leadership techniques, so the employees would be
more motivated and lead to customer satisfaction.
 They have focus on opening the online stores, rather than physical store. House of Fraser
need to invest on the improvement of the company's infrastructure and open the new
branches rather than adding the luxury brands because this increases their cost of
investment.
 Appointing highly skilled employees, it will save their time and money on the training
and development of the employees.
ACTIVITY-2
P4: Barriers to the change
Nokia is Telecommunication Company which possess diverse culture at workplace so that
organization enable to create creativity by the different employees and enables to take
competitive advantage. Organization gets barrier which gives impact on organization
performance. Barriers are -
Financial and environmental issues: Nokia is multinational telecommunication company but
doesn't have powerful investors who can invest funds on the R&D department which reduces
creativity of the change which is most important for beating competitors and taking competitive
advantage in business market (Taylor, 2019). Thus, financial factor is the main obstacle for not
achieving sustainable profit in digital market.
Lack of resources: It is another obstacle which reduces organization performance because when
employee doesn't get proper resources, it makes organisation unable to create creativity and
introduces innovative products and their services to customers (Rosenbaum More and Steane,
2018). The main reason of the resources is financial and environmental problem which leads
alleviation of the resources. Another reason is bad resources' allocation which is occurred by
managers, when they take wrong decision without imagination and implements all resources i.e.
money, time equipment and staff operations as result occurs infectivity in organization
operations.
Structural barrier: Hierarchy structure of organization plays significant role for getting
sustainable success. Organizational structure resist change and obtains conflict between
management and employees because employees unable to communicate directly with the
manager which reduces well-being of the employee in company. While Nokia has flat hierarchy

where employee can direct communicate with manager and resolve their issues. But HR
department unable to resolve their conflict in order to salary crisis, work pressure etc. thus
organizational structure is also obstacle for leading change.
In sufficient communication: communication plays crucial role for getting profitable
opportunity in organization. Generally communication is classified into two forms a internal
communication which takes place between employee and management while external
communication tales place among management, client, supplier and customers. To understand
internal and external communication there are an example (Garcés-Ayerbe and et. al., 2019).
Internal communication: In such situation managers are unable to communicate with their
employees effectively in terms of offering respect or motivate at workplace. In this situation
manger is unable to introduce change in their performance and organization unable to retain
talented employee at workplace. On contrary, external communication when Nokia company
unable to interact with suppliers and customers due to ineffective management as result
organization unable to meet their objectives and gets loss in the company.
Lack of bad leadership: To achieve sustainable growth in organization for prolong time requires
effective leadership which influences employee to lead change by giving high performance at
workplace. Nokia is consumer electronic company which has main goal to meet customer
objectives by the support of employees. Leadership of the HR is not effective in company
Human resource unable to give value employees as result conflicts occurs between management
and employees.
These above barrier gives negative impact on manager decision-making which is implemented
for overcoming issues but all become reductant for the company.
M3: Force field analysis
Force field analysis is utilized for leading change in management and assist for
recognizing change process in business. It is a framework which offers summary of the change
issues and how can tackle by organizations factors which are transformed into forces and act as
barrier for change. Nokia applies the model for analysing the driving and resiting forces which
gives impact in decision-making. Force field analysis model can be defined as a stage of
imbalance between driving forces and restraining forces. Driving forces are new personnel
change, changing market and new technology (Edwards and Saltman, 2017). On other hand
restriction forces are fear of failure, business inertia etc. to leading change towards vision