Change Management Models: Mobil Australia Case Study Analysis

This report provides a comprehensive analysis of organizational change management models, focusing on Lewin's three-step model (unfreezing, changing, refreezing) and the ADKAR model (awareness, desire, knowledge, ability, reinforcement). The report then applies these models to a case study of Mobil Australia, examining the company's organizational restructuring and process re-engineering in response to market competition and internal challenges. The analysis includes a SWOT analysis of Mobil Australia during its period of change, identifying strengths, weaknesses, opportunities, and threats. The role of change agents within the organization is also discussed, highlighting their importance in implementing and managing change initiatives. The report provides a detailed overview of the change management process, demonstrating the interrelation between the theoretical models and practical application in a real-world business context. It explains how Mobil Australia utilized change management models to re-engineer its processes and restructure its organizational framework. The report emphasizes the importance of employee involvement, communication, and the alignment of change initiatives with organizational goals.

Running head: CHANGE MANGEMBNT MODEL
CHANGE MANAGEMENT MODEL
Name of the Student
Name of the University
Author note

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Answer 1
Change management theories
Organizational change management is the framework that is utilized to manage or to
understand the effect of new organizational processes. The change that has been implemented in
the organization can be of different types for example cultural change, organizational structure
related change, business processes, or working environment as these factors could enhance the
organizational productivity and increase the involvement of the employees in the organizational
restructuring (Rufo, 2012, pp. 325). There are several theories of organizational change
management that has been applied by different organizations to successfully implement change
in their service or in the structure of their organization. Two from those organizational change
management models are going to be explained and critically discussed (Park et al., 2012, pp.
123).
The first organizational change model is Lewin’s change management model. Kurt Lewin
developed this model and it is comprised of three steps, unfreezing, changing and refreezing. The
theory of Lewin of change management was similar to changing the shape of Ice. To change the
shape of Ice, it first need to be melted and converted to another shape and finally refreezing to let
it retain the shape. Similarly, organizational change needs the amalgamation of efforts from all
the stakeholders, its employees to melt the rigidness and shape the organization in a desired
frame and refreezing again to maintain the newer structural framework of the organization
(Hayes, 2014, pp. 213).
On the other hand, the second theory that has been chosen for the discussion is ADKAR
model of change. The prime components of this change model are awareness, desire, knowledge,

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ability and reinforcement. According to this change theory, the process of organizational change
is sequential and to achieve the ultimate success or change in the organization every step need to
be successful. The steps of this change theory are interlinked and focuses on every aspect f a
successful change implementation. This change management model is flexible and focuses on
the importance of communication within the organization to involve the employees of the
organization (Worley & Mohrman, 2014, pp. 220).
Therefore, these two change theories provide two different perspective of organizational
change management. The Lewin model described the organizational change as refreezing a
unfreeze water after changing the shape or structure of the framework. The process seems easier
and requires melting or dissolving all the processes of that organization. Further, the change is
just limited to the structure or shape of the new frame, no new process is introduced in this
change model (Worley & Mohrman, 2014, pp. 223). On the other hand, the ADKAR change
management model involves employees, their communication, the process, the environment and
then related it to the proposed change and the implementation process. The change presented in
this model is derived from discussion with the employees and their feedback and it is
implemented with the involvement of those employees. The change process in this scenario is
not simple and discussion with the entire organization and taking care of their thoughts and
beliefs make the process complicated (Dusseux et al., 2015, pp. 1091). However, the links
between these two framework is evident form their structural framework. Any organization
needs to unfreeze its processes to implement any change; therefore, ADKAR model also
involves processes of Lewin model for successful change implementation. On the other hand,
changing the structural framework of any organization cannot be successful without the consent

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from the employees. Hence, the steps of ADKAR model need to be implemented in Lewin
change management model (Bartunek, 2014, pp. 191).
Answer 2
a. Organizational information
The organization that has been chosen for the assignment is The Mobil Australia. The
organization is a global brand and was established in the year 1911, in New York, the United
States of America. The company changed its name from the standard oil company to Mobil in
1963. However, the ancestor company of this company that is known as the Vacuum oil was first
operated I Melbourne Australia in 1895. However, the name Mobil oil Australia was coined in
1990s. The first refinery of the company was established in 1946 in Melbourne. Further, the
organization was able to build refineries in continuous intervals and in regions like Port Stanvac,
near Altona refinery and in Bass Strait. However, due to the internal and external unavoidable
factors the organization has to undergo complete organizational restructuring and process re-
engineering as to stay alive in the market competition and continue serving the society
(Mobil.com, 2018).
b. The increasing competitive market and emergence of newer organizations with better
engineering and organizational framework, led the organization the Mobil, re-engineer its
process and change the organizational framework. The organization performed all this to stay in
the market competition. As the organization has, a large and complex corporate structure that
involves the international division that was responsible for conducting marketing and
implementing necessary steps for the organizations outside USA was established in Australia to
independently continue serving (Killian et al., 2012, pp. 23). The re-engineering of the

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organizational process was divided into different phases such as initiation, diagnosis, process re-
engineering, organizational design, implementation and post implementation process. The
change was to identify a process related activity, changing which can lead to increase the
production of the company. The further objective for the change management was set in three
categories financial, behavioral and cultural. The company aimed to gain 3 percent in the return
on capital employed compared to its previous year. The behavioral proposed change was about
the customers and focused on profits internally as well as externally. The last proposed change
was cultural and the organization wanted to become more team oriented, motivated and a
stronger and better workforce (Schlichting, 2013, pp. 510). The change agents in this scenario
were the employees as well as the newly appointed Australian Mobil executive, who was
appointed to share the ideas and experiences that he acquired in the headquarter change
management happened in USA few years ago. The entire employee, belonging different sections
and departments of different locations of the organization was divided into teams and their duty
was to use their knowledge and understanding to identify the issue and judge the outcome. The
venture team was also implemented to understand the process related issue and to redefine,
redesign and simplify the business activities, and workflow. Further, the recommendation from
the senior employees was to be proof read by the venture team, which was responsible to take
that suggestion to the Mobil executive (Talbot & Boiral, 2015, pp. 336).
c. The change that occurred in the Mobil Australia organization was interlinked with Lewin as
well as ADKAR change management model. The prime aim of the stakeholders of the
organization was to induce change in three sections, financial, behavioral and cultural. To
implement change in these sections, the first thing that was supposed to perform was involving
employees and other vulnerable stakeholders in the process. Unfreezing the employees from

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their negative thinking to implement positive change needed three steps of Lewin change model.
On the other hand, unfreezing employees limited knowledge needed awareness of the proposed
change, desire, ability of the employee to withstand the change And reinforcement of proposed
change. Arranging workshops about the newer process, meeting for the newer employees with
the experienced ones, arranging feedback sessions to understand the knowledge of the employees
were utilized to understand the readiness of the organization for change. Involving few loyal
customers to understand their perspective of organization’s customer involvement policies was
helpful to evaluate the change process. Therefore, involving both the theories of change
management mentioned in previous answer was implemented in the organization.
Answer 3
a. SWOT analysis
The SWOT analysis is a marketing tool that is used to determine the market position of
the company compared to its competitors and helps to understand the future perspective of the
organization with potential threat to its development. The SWOT is made up of strengths,
weaknesses, opportunities and threats of the organization in the market. The following table is
going to describe the SWOT analysis of the organization, when the change was imposed.
SWOT analysis
Strength The strength of the Mobil company was
 Its brand power. The organization was
famous in the global market because of
its brand name and was 4th at that time
in global market.
 The research and development section
was strongest portion of the
organization, which led them create or
found three oil reservoirs in Australia

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within 10 years of time frame.
 The third strength was its market
position and revenue generation. It was
one of the largest refiners of oil at that
time and was able to collect its revenue
from countries like Canada, Australia,
Germany and Singapore.
 The strong financial backing from the
headquarters let the organization to
carry out projects including heavy oil,
light gas, deep water and arctic and
sour gas projects and so on (Wu et al.,
2015, pp. 875).
Weaknesses The weaknesses included:
 Negative publicity was the biggest
weakness of the organization as it
created a bad image in the eyes of the
customers. Contaminant refineries,
increasing damages, fines and
penalties made the organization
famous for negative reasons.
 The organization was increasing its
debt and the financial system was also
lagging behind, as the organization lost
its revenue due to negative comments
(Van Der weiden, Nayak & Swinburn,
2012, pp. 1051).
Opportunities The opportunities included:
 Increasing demand in the Australian
market let, the higher authorities think
about re-structuring the organization to
maintain the need in market and
achieve their revenue related target.
 The organization wanted to stay alive
in the market competition and wanted
to utilize other source of energy to
expand their business.
 Increasing the amount of research
development in the section of liquid
gases and other heavy oils. This will
increase the chance of the organization
to stay active in the competitive market
(Lanigan, 2014, pp. 14).
Threats The threat of the organization included:

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 Competitions was one of the major
threats of the Mobil Australia at that
time as few other lubricant companies
such as Shell and petro china were
leading the market race with their
products and reasonable price range.
 The second threat was challenging
economic changes. The company faced
several economic changes in
Australian financial system that
increased the chance of lagging behind
of the leading petrochemical
companies.
Change management model is the structural framework related change that helps to
reboot the entire process of any organization, which was unable to help the organization
anymore. Furthermore, the change management is the final risk that any organization takes to
revive their business. In the case of Mobil Australia, the organization implemented
organizational change management in spite of being leader in oil refinery and earning revenues
from the global market. This is because the negative impact of situations that lead the
organization to pay penalties and fines created a negative image of the organization in the eyes of
their customers. Further, the internal environment of the organization was not suitable for any
further development as people were saturated with the research or development they have done
so far. However, to increase their business in near future, the organization needed revolutionary
changes in the process to achieve those future targets. Therefore, the change management model
was implemented in the Mobil organization to re-design the workflow, restructure the
organization and to re-engineer the process of oil refinery so that minimal time is spent to obtain
larger amount of revenue. The cross functional and multi-disciplinary nature of the SWOT
analysis points out the reason behind the change management implemented.

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Answer 4
The role of change agents
Change agents are individuals who introduces change in the organization, to increase the
effectiveness of the organization through planned and deliberate events. Change is a continuous
process and needs assistance of higher authorities in every step of implementation however,
sometimes the change is introduced in people or the environment of the organization and
therefore only change agents can further accelerate the process of change (Battilana & Casciaro,
2012, pp. 391). There are mainly two type of change agents such as internal and external. In
which, the external change agents are behavioral scientists who are specialists of human
behaviors. They are the constants of the company and helps the company by motivating the
employees and enabling the change strategy. Further, the internal change agents are present
within the organization and are selected from different levels of the organization to utilize
whenever a change need to be implemented (Bartunek, 2014, pp. 324).
There are several behavioral and personality related aspects that need to be present in the
change agent such as behavioral skills to influence and convince others, diagnostic skills to
identify the issue within an organization, attitude of acceptance to accept any fault or mistakes
and to provide emotional support and reassurance to others (Rycroft-Malone et al., 2013, pp. 28).
Moreover, there are difference in the perspective of external and internal change agents. The
external change agents take the entire view of the organization as a system on the other hand; the
internal agents take the entire system as it is given to them. The role of external agents are
comprehensive whereas, the role of internal agents are competitive and secondary to that of the
external agents. In spite of the changes in the perspective of the change agents, the focus of them

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are similar and to lead the organization to the ultimate success and popularity (Verčič Verčič &
Sriramesh, 2012, pp. 227). The external change agents are experienced in their work and the
internal ones perform their job under the guidance of them to implement the change smoothly
and with minimal resistance form the employees. It is important for any organization to
employee its internal and external change agents to carry out revolutionary changes in the society
as their teamwork can lead to behavioral as well as cultural changes in the organization. The
combine effect of these agents can lead to convince the employees for any structural or policy
related changes in the organization as the external agent would be able to withdraw the situation
identified by the internal agent (Kirtman et al., 2013, pp. 25).
However, on the other hand, negative aspects of change agents that can create entropy in
the system. As the internal agents are a part of the organization that has been given some excess
powers to identify or control situations that can help the organization to achieve a target.
Although, employees did not understand the purpose of this post and refuse to understand or
implement the proposals of the internal change agent. Hence, the need of external change agent
is necessary to reduce the chance of resistance (Field, 2012, pp. 46). The external change agent
therefore has different roles for the organizational change such as facilitator of the change by
spreading awareness about the positive effects of change, consultant of different diagnostic skills
to understand the need of change and finally counsellor to understand the individual perception,
attitude and beliefs of the individual employees. They uses their behavioral skills to combat with
the emotional and social problems that can occur due to the implemented change and increases
the acceptance of the change within the employees (Hayes, 2014, pp. 342).

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In case of Mobil Australia, external as well as internal change agents were implemented
to prepare the organization for the forthcoming change. The external change agent was a senior
Australian Mobil executive, who used to work in the USA headquarters. Further, a Natural work
team or NWT was implemented for identification of the issues that need to be amended to
implement the required change in the organization. On the Other hand, as the internal change
agents, a team of experienced and unexperienced workers were selected form each department of
the organization. The role of these internal agents was to identify the internal issues of the
organization that were hindering them to achieve the target production and revenue. The internal
agents were to perform their task with the help of the NWT team and after the NWT team
confirm the amendment or suggestion, the external change agent would take the further action.
This helpd the organization to understand the internal state of employees, their mental, emotional
reaction and readiness to proposed change. Hence, utilizing these strategies helped the
organization to implement the revolutionary process related change.
Answer 5
Problem centric approach to organizational change
There are two different approaches to bringing about organizational change such as
problem centric approach and dialogic approach. The problem centric approach is guided by the
Cartesian ontology, which perceives change as an objective phenomenon. As commented by
Hammer (2015), the problem centric approach emphasizes upon the collection of objective data
for identification of the change. The change process identified helps in the development of future
responses. It follows a linear and rational approach for the diagnosis of change. In the present
scenario, Australia based Mobil Oil had been taken into consideration which has undergone

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business process reengineering (Savery, 2015, pp. 12). The implementation of the change
brought about radical changes within the organization such as increasing the profitability as well
as improving the organizational work culture. The problem centric approach is a “rationally
controlled, orderly process” (Reiser & Dempsey, 2012, pp. 32). The particular approach works
through the implementation of three main principles such as – conducting an environmental
analysis, synchronization of the change within the organizational context, optimization of system
capability. The analysis of the surrounding environment helps in understanding the need for
change. Amidst the rising competition in 90s in the global market scenario, the Mobil Oil
underwent a business process re-engineering and res-structuring to improve profitability and
return on capital. Therefore, the undertaking of a problem –centric approach could help them in
restructuring the changes for providing a more customer focused service. The problem centric
approaches can help in focusing upon the strengths and weaknesses of the different business
processes and approaches of Mobil Oil, Australia. The reviews are optimized through the PCA
for focusing upon the different alternatives to the changes, which could be implemented for
improving standards such as Return on Capital Employment (ROCA) (Hammer, 2015, pp. 14).
Dialogic approaches to change within organization
The dialogic approach is governed by a social/relational ontology. As commented by
Matos Marques Simoes & Esposito (2014), change is seen as part of the organizational culture
under this approach. The dialogic process considers human element as a critical part of the
organizational change. The model helps in building bond between the employees and
management. The approach also signifies that the consultants are seen as part of the process and
not different from the business process (Raelin, 2012, pp. 21). It emphasizes upon the aspect of

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implementation of effective communication, which work as a driving force for the organizational
change. The implementation of the model would help in improving the work culture within the
organization.
Theoretical ontology of organizational change supporting each
In the current assignment, two different ontological perspectives have been taken into
consideration such as Levin’s change model and ADKAR model. Both the theories investigate
the suitable approaches to bring about plausible changes within the organization. Here, the
ontological theories supporting each have been further evaluated for arriving at the most
acceptable standards. The Lewin theory of change management described the need of melting the
rigidness and vulnerability of the organization for change and refreezing the changes in new and
modified shape. On the other hand, the ADKAR model of change management described the
need of changing and modifying employees and other stakeholder’s mentality and knowledge.
Combination of these two theories were visible in the change management of Mobil oil
Australia, where the organization utilized their external and internal change agents to spread the
awareness and prepare their employees for the change. Therefore, in the case of this
organization, theoretical ontology supports the organizational change (Hayes, 2014, pp. 311).
Benefits and drawbacks of each of the approaches in change management
The two approach used for the change management model are dialogical approach and problem
centric approach. The benefit and drawbacks of the problem centric approach has been
mentioned below.
Benefits:

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 This approach helps to develop a long-term knowledge approach. The employees, who
takes part in the problem centric approach for the change management, are able to
maintain the level of knowledge and recall them when needed. This helps to reinforce the
knowledge of the subject to the employees (Inzucchi et al., 2012, pp. 1593).
 The approach uses different diverse approaches to provide instruction to the employees.
The process and its effective nature helps to connect the entire employee group in the
discussion (Egan, 2013, pp. 112).
Drawbacks:
 However, the first and major disadvantage of the approach is that, during evaluation
is the unpreparedness of employees. The approach focuses too much on the mental
state of the employees that it forgets to take routinely evaluations of them. Therefore,
when the organization plans to take the evolutionary step, the employees are not
prepared for it and become unresponsive.
 The employees are further immature, lacks prerequisite knowledge of the change that
is going to occur and are unfamiliar to the post effects of the change in the
organization. Continuous monitoring of the employee meetings can done by primary
mitigation and discussions however, questionnaire and filling up question answers
will be helpful in evaluating the knowledge of the employees (Garcia & Gluesing,
2013, pp. 441).
The benefit and drawbacks of the dialogical approach
Benefits

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 The dialogical approach does not need any fancy infrastructure as it is based on
the dialogue between employees about the change that is going to occur; hence,
simplicity is the biggest benefit.
 Mental involvement and involvement in the discussion that lead the company
understand the readiness of its employees before implementation of the proposed
change.
Drawbacks
 The first disadvantage that can affect the benefits of the dialogical process is
the dialogue conflict that occurs while having debates or discussion with any
employee. Therefore, personal conflict is major drawback for this approach.
 It is difficult to keep track of the learning outcomes of every dialogue or
dialogical debate therefore using problem centric approach is recommended
by the critics.
Evidence supporting the selection of specific approaches in managing the change
According to Raelin (2012), there are three main type of approach that can be used by a
national leader or an organizational head to influence its employee or citizen for change and
growth. These are democratic leadership, dialogical approach and thirdly the deliberation. To
examine the effect of these, a critical concept examination was taken and contribution of these
three were noted. After the completion of the examination, it was found that dialogue is helpful
in the exchange if meaningful knowledge, and people and their decision-making ability

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increases. The dialogue approach is inclusive of the democratic approaches and hence, using it
will be helpful for the employee to provide their point of view in the larger process. Another
approach was problem-based approach, which is also known as landscape approach, which is
inclusive of all the aspects of any change management (French et al., 2012, pp. 38). This entire
approach helps the employees and other stakeholders to become familiar with the different
principles of like continual learning and adoptive management, multiple scales, and multiple
stakeholders and so on. Applied to the experimental organization, the approach helps the
organization to make its employee understand the need of change and the employees also
accepted the change with minimal resistant. Therefore according to these both research article,
the organization as able to put plausible changes without any string oppose or resistance.

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20CHANGE MANGEMBNT MODEL
based+learning:+Definitions+and+distinctions.+Essential+readings+in+problem-
based+learning:+Exploring+and+extending+the+legacy+of+Howard+S.+Barrows,+9,+5-
15.&ots=awi8nWkC0u&sig=GvjxC1tuxtqn7FbGAn5yoTWIe3I#v=onepage&q&f=false
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Van der Weiden, R., Nayak, P., & Swinburn, P. (2012). Seismic technology supporting reserves
determinations: Gorgon Field, Australia. The Leading Edge, 31(9), 1050-1058.
https://doi.org/10.1190/tle31091050.1
Verčič, A. T., Verčič, D., & Sriramesh, K. (2012). Internal communication: Definition,
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https://doi.org/10.1016/j.pubrev.2011.12.019
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21CHANGE MANGEMBNT MODEL