Change Management: Strategy, Operations, Leadership Approaches

This report provides an in-depth analysis of change management within organizations, focusing on the impact of both internal and external drivers of change on organizational strategy, operations, leadership, team dynamics, and individual behaviors. It uses examples from TESCO plc ltd. and Costa Coffee to illustrate these concepts. The report evaluates measures that can be taken to minimize the negative impacts of change, such as implementing a systems model of change and ensuring effective communication. It also discusses various barriers to change and how they influence leadership decision-making, as well as different leadership approaches for dealing with change in various organizational contexts. The document emphasizes the importance of adapting to change for organizational success and offers insights into managing change effectively.

Understanding and Leading
Change

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................1
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.......................................................................3
P3 Evaluation of measures that can be taken to minimise negative impacts of change on
organisational behaviour..............................................................................................................5
TASK 2............................................................................................................................................8
P4 Explain different barriers for change and determine how they influence leadership
decision-making in a given organisational context.....................................................................8
P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Change can be described as the process of evolvement of modification of any element. In
this project report, attempt has been made to evaluate the impact of change on strategy and
business operations and identify the reasons for driving change (Millar, Hind and Magala, 2012).
TESCO plc ltd. is the leading grocery retailer in United Kingdom which was founded by Jack
Cohen in 1919. Costa Coffee is a large coffeehouse chain based out of England which was
founded in the year 1971. The report aims to evaluate the measures being adopted by the
management of organisations to minimise the impact of change and also attempts to identify
various barriers of change. At last, the report aims to evaluate the role of different leadership
styles and approaches in organisational change management.
TASK 1
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations.
Change can be defined as the process in which something evolves or transforms into a
different thing. In business context, change might refer to an alteration in business environment
or internal organisational factors which leads to an impact on the strategy and operations of the
business. Every change which happens in an organisational context has a significant impact on
the strategic decision-making by the management (Balasubramanian, 2013). Factors which needs
to be considered for influencing the changes related an organisation’s strategy and operations are
external business environment such as technological, environmental factors, economic factors
etcetera and internal factors such as change in management or company objectives. The changes
taking place in an organisation can be classified into two categories: Planned change and
Emergent change. A brief description of both the changes is being done below.
Planned Change:
Planned changes can be described as the changes taking place in an organisation as a
result of deliberate action of the management on the basis of rationale and conscious thinking.
Planned changes are controllable and have a definite commencing and completion point (Miller
and Proctor, 2016). These changes are driven by management with an objective of improving
operational performance and are often resisted by the employees.
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Emergent Change:
Emergent changes can be termed as the changes unfolding or unrevealing in a rather
unplanned and spontaneous manner as a result of responding to a business situation or a problem.
Implementation of such changes is often drived by an external factor and is often executed in an
unplanned manner which might lead to chaos. There is very little or no control of the
management over the factors influencing such changes.
Both planned changes and emergent changes impact the organisation’s strategy and
operations as a matter of fact. To understand the changes and its impact on business strategies
and operations in a better way, a case study of TESCO plc ltd. and Costa Coffee is being done in
the following section of the report:
Impact of change on the business operations of TESCO plc ltd:
TESCO plc ltd. is one of the largest grocery and general merchandise retailer which was
founded in the year 1919 by Jack Cohen. The company operates at an international level with
stores located in more than 7 countries all over the world and the headquarters of the company is
located at England, United Kingdom. It is a leader in the industry with a market share of about
27% in UK, much higher than any of its competitors.
With recent changes and advancement in the field of technology becoming so dominant
in influencing and organisations growth and success, it is imperative for managers to adapt the
changes as quickly as possible. The management of TESCO ltd. with an objective of increasing
business growth and revenue decided to take the operations of the firm on a new sales platform,
online sales. The implementation of this change had a great impact on the strategy and current
operations of the company (Samantara and Sharma 2014). Management had to formulate
strategies to counter employee resistance and modify the current operations in terms of creating a
favourable environment for the change to blend within the organisation culture. This change can
be understood as a planned change by the management with a specific objective of increasing the
sales and business growth.
Impact of change on the business operations of Costa Coffee:
Costa Coffee is a British coffeehouse chain which was founded in the year 1971 and the
headquarters of the company is located at Dunstable, England. The company deals with
wholesale operations of supplying roasted coffee as well as premium coffee-shops and outlets. It
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has more than 2000 stores in UK along with more than 1200 stores overseas. The vast operations
of the company makes it necessary for the management to adapt to changes quickly.
With Brexit, the companies which were earlier procuring materials from European
countries are being persuaded by the government to procure materials from the local suppliers
even if that results in a slightly increased prices. The management of Costa Coffee, as a result of
this unplanned and emergent change, had to make strategic alterations in its supply-chain
managements. The operations of the company were affected as changes in supplier module
resulted in delayed production timelines (Spangenberg and Theron, 2013). Deliberate actions
were taken by the management such as slightly increasing the prices of the product to undermine
the impact of increase in cost price of the company’s products. Such changes due to factors
which are outside the control of the management or the organisation have a rather high influence
on the internal working and operations of the company. Management policy and strategies need
to be altered with respect to these changes taking place in close business environment of the
company.
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.
Various internal and external factors act as drivers of change which influence the
behaviours within an organisation. A brief evaluation of both internal and external factors of
change is being done to understand its impact on organisational behaviour in a better way.
Internal Factors:
Internal drivers of change such as resources of an organisation, organisational culture,
employee and staff roles and organisational environment affect the individual and team
behaviours within an organisation in the following ways:
Organisational resources: Implementation of a change and strategy depends a great deal
on the resources of an organisation such as human capital, financial resources, technology
etcetera (Cook, 2015). A positive behaviour is inculcated if the resources of the organisation are
in favour of the change implementation process for example, managers of TESCO plc ltd. gained
employee encourage and support with the help of financial resources of the company.
Organisational culture and environment: Work environment and culture within an
organisation determines the level of support and participation expected from the employees for
any strategic or operational change. A healthy work environment and positive organisational
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culture in Costa Coffee helped the company to solve the problem of supply-chain management
by altering strategies and making significant changes in business operations.
Employee roles: Every member of an organisation has a different role. These roles are
defined by the task and the responsibilities of the employees. An active participation and
engagement by every employee in TESCO plc ltd. helped the management to maintain a positive
behaviour with respect to the process of change.
External Factors (PESTLE Analysis):
PESTLE analysis is a tool which is used to determine the impact of external factors such
as political, economic changes etcetera on the operations and decision-making of the
management of any organisation (McKnight, 2013). External factors or drivers of change might
affect organisational behaviour in many ways as following:
Political factors: Factors such as political stability and government policies affect the
operations and decision making of an organisation. For example, due to a change in the policy of
the government which resulted in Brexit, management of Costa Coffee was forced to adopt a
change in the strategy and operations related to the supply-chain network impacting the
individual and team behaviour in the organisation. Personal bias or favour for any political
decision might shape the behaviour of employees in the organisation with respect to change.
Economic factors: Economic factors which include level of income, tax-rates, capital
market fluctuations, economic conditions etcetera affect the decision-making process of
management. In the context of TESCO plc ltd., an increase in the disposable income of the
people in Britain has influenced the decision of the management to offer goods with better
quality and features.
Social factors: A change in the preference of consumers and trends of consumption affect
the operations of the organisation and various strategy formulation. Preference for high standard
of living and improved quality of life has increased the potential customers for Costa Coffee
influencing the management to adopt strategies for promotion aimed at increasing the spectrum.
Healthy food consumption behaviours resulted in management decision of TESCO plc ltd. to
offer food items with high nutritional contents.
Technological factors: Technological innovation and development has forced
organisations to adapt to these changes quickly to maintain the competitive position in the
industry. These changes affect the business operations and strategy. The managers of TESCO ltd.
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decided ride the wave of technological innovation by taking the operations of the company to
online platforms. Implementation of technological changes might face higher resistance by
employee due to a key change in the tasks and duties.
Legal factors: Rules and regulations governing the operations of any organisation have a
major impact on determining strategies and moulding the business activates. The importance and
relevance of legal factors as drivers of change has increased significantly due to the process of
internationalisation as each country has its own set of rules and regulations which needs to be
complied with. For example, management of TESCO plc ltd. ensures that all the operations
related to production and manufacturing of goods are taking place as per the government
guidelines issued for product safety standards.
Environmental factors: Factors such as emission of green house gases and carbon
footprints which have a major impact on the ecological balance has put the onus on companies
like TESCO ltd. and Costa Coffee to improve their sustainability standing. Management of
TESCO plc ltd. has made significant changes in the production process of the company to ensure
low carbon footprints. Similarly, Costa Coffee has started procuring materials of routine use
from suppliers which are located near the company warehouses to reduce the emission of
greenhouse gases in the transportation process.
P3 Evaluation of measures that can be taken to minimise negative impacts of change on
organisational behaviour.
Changes taking place in an organisation have a significant impact on organisational
behaviour and work-environment of the organisation. Mitigation of the negative impact
associated with these changes is always desirable for management of any organisation. Many
policies and measures are being used by the managers of TESCO ltd. and Costa Coffee which
helps in an analysis of the future impact of a change which has been proposed and take steps
which leads minimising the negative impacts. Some of the models and strategies being used by
the managers are being discussed below:
Systems model of Change:
The Systems model of change suggests or recommends that any change within a
company should be implemented at an organisation-wide level instead of bits and pieces (Holten
and Brenner, 2015). This model is being used by the management of TESCO plc ltd. to minimise
the adverse and negative impacts associated with implementation of organisational change. This
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model provides a whole new dimension to the concept of change implementation and provides a
framework of six interconnected variables determining the change implementation process which
includes people, strategy, task, culture, design and technology. These variables should be the
focus for successful implementation of any planned change by the management.
People: It includes the workforce of the company by taking into consideration personal
difference, skills and talents of all the employees.
Task: Task refers to the nature and description of a job assigned to someone which may
be simple, average or complex in nature.
Design: It refers to the various structures that exist within the organisation such as
communication systems, authority etcetera.
Culture: Culture of an organisation is represented in terms of the shared values, norms,
practices and beliefs that may exist between the members within the company.
Strategy: Strategy refers to the plan of action prepared by the management for
implementation of any change in organisation or business activity.
Technology: Technology refers to the advancements which help in simplification of a
business process such as IT systems, inventory management automation etcetera.
This model is very helpful for the management of TESCO plc ltd. in determining the
influence of change in any one variable on the other variables in the interconnected network
(Hofmann-Wellenhof, Lichtenegger and Collins, 2012). Thus, any change can be evaluated in a
better manner by understanding the implication on other variables in the organisation, For
example, technological upgradation proposed by the managers will have an impact on the task of
the people so the management can take measures for training and development of employees
with regards to new technology which helps in minimising the negative impacts associated with
the change.
Burke-Litwin model of change:
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The Burke-Litwin model of change defines and establishes a cause-and-effect relationship
between 12 elements that determine a change within any organisation. This model is used by the
management of Costa Coffee to determine the negative impacts associated with any change and
take measures which lead to minimisation of these adverse impacts. Most of the times, a very
little or no consideration at all on the factors which determine the impact of change in an
organisation leads to harmful consequences and repercussions for both the employees and the
organisation.
The model describes a framework for all the elements which influence the process of change
implementation. Under the model, the elements are divided into three groups or columns based
on the nature. The elements in the middle column are referred as the backbone of the model,
elements on the left are called hard-elements that are tangible and the elements on the right are
soft-elements that are primarily abstract (Harper, Randall and Rouncefield, 2012). By an
evaluation of the impact of any change on all the elements in the model, the managers of Costa
Coffee are able to determine and identify measures which might help in mitigation of the
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negative impacts and increase the support in favour of the change. This model helps in providing
an effective strategy for the management of organisational change. Initial step in the application
of this model requires an identification of the element group which causes the change and the
next step involves identifying the exact element responsible for the change (Grant, 2014). At last,
managers try to determine the degree of influence of the element responsible for driving change
on all the other elements which have been described in the model so that the desired mitigation
of negative impacts can be achieved. For example, the managers of Costa Coffee identifies the
external environment as the responsible element for changing supply-chain and decisions were
taken in a better manner with the help of an analysis of the impact of this element on other
elements in the model. Thus, this model has great relevance and application in ensuring
minimisation of negative impacts of change on organisational behaviour.
TASK 2
P4 Explain different barriers for change and determine how they influence leadership decision-
making in a given organisational context.
There are many factors which act as drivers for change within any organisation and at the
same time, many forces or factors also act as resistors to change leading to hindrance in the
process of change implementation. One of most important tool used for analysis the forces and
their respective strengths is force-field analysis which is being implemented below:
Force-field analysis:
The management of TESCO plc ltd. uses force-field analysis for taking decisions related
to organisational changes after analysing the driving forces for change and forces which act as
resistors for change. There are five steps or phases in the process which are as follows:
Step 1: Proposal for change
In the first step of the analysis, management of the company describes the proposed
change and the plan formulated by the managers for implementation of the change. It is an
important step which ensures proper communication of the proposed change in the whole
organisation (Day, Crown and Ivany, 2017). For example, for expanding the operations of the
company to online platform, the management needs to prepare a proposal for the same
identifying the reasons or rationale behind the change.
Step 2: Identifying forces for change
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The next step in the process of force-field analysis implies identification of the forces or
the drivers of change. Various internal factors and external factors might act as drivers of change
within any organisation. It is important for the managers to identify these changes in order to
take better decisions. Some of the forces may be as follows:
Internal forces: Optimum utilisation of resources and minimisation of wastage of resources. Offering better quality of customer service. Improving employee motivation and productivity Better organisational structure and environment
External forces: Technological changes and innovations which help in increasing productivity and gaining
competitive edge Better eco-friendliness and sustainability standing Rise in the income level of people Increase in labour costs Changes in political policies of any territory Changing preferences and habits of consumers
Step 3: Identifying forces against change
There are many external and internal forces which may as well act as resistance for
change in any organisational context. Identification of forces which act as resistors for change
help the management to adopt better measures the reduce the number of forces acting against
change. Some of the factors which act as barriers to change are:
Lack of employee involvement: Resistance to change by employees is one of the most
crucial barrier or force which hinders the whole process of organisational change. Employee
usually resist any change which is expected to change their daily activates and tasks due to a fear
of new technology and lack of willingness to learn new things. Fear of the unknown acts as a
major barrier in determining employee resistance.
Organisational structures: Existing structures which lead to complexity in an
organisation makes the process of implementation of change difficult due to many restrictions
and bureaucratic necessities.
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Ineffective communication models: Ineffective communication of the reason and rationale
behind any change proposed for the organisation acts as a barrier in change implementation
process due to lack of employee support and participation. Effectiveness and benefits of a change
can only be conveyed in the organisation with the help of proper communication.
Government legislations: Many times, government rules and regulations also act as a
barrier in the process of change implementation if the provisions of the change are not in
compliance with the guidelines and advisory issues by the government.
Step 4: Assigning scores
The next step in the process of force-field analysis includes assigning a score to each
force of driving change and resisting change on the basis of its strengths and the influence on the
whole project plan. This helps the management of TESCO plc ltd. to determine the respective
importance of each force which has been identified in the previous steps.
Step 5: Analysis and application
The last step of the process includes the decision-making process of the management of
whether to go forward with the change or not. This step is very important for the effectiveness of
the whole force-field analysis (Canning and Found, 2015). At this stage, the management of
TESCO plc ltd determines the tools and steps which can help in strengthening the driving forces
for change and weakening of the opposing or forces against the change. For example, training
employees on the use of new technology can be very helpful in reducing the employee resistance
and increasing employee engagement and involvement for any organisational change.
P5 Apply different leadership approaches to dealing with change in a range of organisational
contexts.
Leadership style and approaches can be of great help in influencing employee behaviour
and reducing the resistance for change (Burnes and By, 2012). Many employees usually find it
difficult to deal with change and the particular attitude of employee towards change has a lot to
do with the leadership style being practiced in the organisation. Some of the leadership styles and
approaches being used by the managers of Costa Coffee and TESCO ltd. for dealing with
organisational change are as follows:
Leadership approaches of management of TESCO plc ltd:
Democratic Leadership:
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