Organisational Change Report: Fit Life Fitness Clubs - [Course Name]

This report focuses on leading and managing organisational change within Fit Life, a chain of health and fitness clubs. It begins by identifying strategic change needs by analyzing the company's objectives, including premium pricing, innovation in fitness and lifestyle, and market expansion. The report reviews existing strategies and policies, evaluating their contribution and limitations, and monitors organizational behavior and external factors impacting change strategies. It identifies major operational change requirements, such as performance gaps, business opportunities and threats, and management decisions. The report then undertakes cost-benefit and risk analyses to address potential barriers to change, schedules the change management project, assigns resources, and develops a communication plan. The analysis includes a review of current policies, external factors, and operational changes. The report also provides a detailed cost-benefit analysis for the implementation of proposed changes. The report aims to provide a comprehensive framework for managing change within the organization.

Lead and Manage
Organisational Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Identify strategic change needs through an analysis of organisational objectives................1
1.2 Review existing strategies and policies against strategic objectives.....................................2
1.3 Monitor the organisational behaviour and external environment on change strategies........3
1.4 Identify major operational change requirements...................................................................4
1.5 Review and prioritise change requirements in consultation with business change manager6
TASK 2............................................................................................................................................6
2.1 Undertake cost benefit analysis.............................................................................................6
2.2 Undertake risk analysis to address potential barriers to change...........................................7
2.3 Schedule the change management project............................................................................8
2.4 Assign resources and matrix to the change management project.........................................9
2.5 Develop draft communication plan including reporting protocols.....................................10
2.6 The change management cycle...........................................................................................11
2.7 Obtain approval from the business change manager...........................................................12
TASK 3..........................................................................................................................................14
Delivering the communication plan..........................................................................................14
TASK 4..........................................................................................................................................15
Monitor and adjust change management activities...................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES .............................................................................................................................19

INTRODUCTION
In an organisation, it has been determine for managing the effects of new business
procedures, changes in organisational structure structure and cultural changes within an
organisation. It will assist in managing and organising the common change which occurs within
an enterprise. This will create and make their effective structure or construction which directly
affect on company success and growth. The managing organisational change is that process
which help in planning and implementing change in firm for minimising the employees
resistance and cost of company while reducing the effectiveness of changing efforts (Al-Haddad
and Kotnour, 2015). The report is based on Fit life which is chain of health and fitness clubs in
Australia for determining the strategic change requirements and opportunities for executing the
change management strategies. In this project, they identifying strategic change needs with
analysing organisational objectives and goals. Along with this, understand the change
management plan and developing communication plan in better manner.
TASK 1
1.1 Identify strategic change needs through an analysis of organisational objectives
The major goals and objectives of Fit Life is that they mainly focus on developing and
making strategy for premium pricing and differentiating their main goods and also introduce the
innovation in fitness and lifestyle to grow and maintain the relation with employees and enter in
the new market with the assistance of retail business and building physic-gym culture. For
achieving such type of goals and other financial or marketing objectives strategic change needs
are required by organisation areas that are as follows:
 Developing and formulating strategic plan of business in line along with marketing
planning of the firm.
 Training and development of implementing management of the firm for gaining expertise
in changing administration (Armstrong, 2018).
 Developing and maintaining the direct distribution channel for global market of the
company.
 Make improvement in compliance procedures by framework more and appropriate
policies and strategies which are related to HR, WHS quality, etc.
 Provide limit the incentive schemes and emphasise on service quality along with sales.
1

1.2 Review existing strategies and policies against strategic objectives
Current Policy and Practices Contribution Limitation
Youth swimming classes and
recreational activities
A variety of activities are
available
No specification in this
Children and elderly practices
and diet programs
Competitive advantage This policy is only for children
and elder person
Customised fitness and health
programs for particulars needs
or wants
Consideration and satisfaction
of particular needs of each
customer
Necessity of variety skills and
abilities for tailoring program
as per the specific
requirements.
Accessibility of some classes
and leaders during peak hours
Availability during peak hours Lack of qualified and
experienced trainers
Required policy and practice Rationale
Introduction of health bar in the highest CGU
within next five months
To compete with another health and fitness
organisation who are providing on site addition
that includes health bar to customers and also
accomplishing objectives of ROI which is
around 20%, gross margin 20% and enhancing
the membership for count by the 10%.
Register as Registered Training organisation For providing internal growth and training of
staff members and also grant them nationally
identified qualification (Barbera, 2014).
Open the physiotherapy services or facility at
health clubs along with at-least two
physiotherapists within next eight months.
For developing and building the physic-gym
culture and improve brand values and beliefs.
Launching loyalty card program within next
two months
Achieving around 5% improvement in
customer retention rates for every year for five
2

years.
Introducing the innovation well-being and
fitness programs during the year
For achieving major goals of launching
innovative fitness and lifestyle and enrich the
brand values
From the mentioned table, it can be concluded that the firm has made effective current
policies and strategies which can used for managing and maintaining the business operations and
their functions in proper manner. These current policies and practices are related with health and
safety care services which assist in providing effective services or facilities within an
organisation (Bolman and Deal, 2017). After they are analysing required policies and procedures
which are related with rationale and identifying major factors which exist in the company.
1.3 Monitor the organisational behaviour and external environment on change strategies
Organisational behaviours Impact
Competitors This will create impact on company success
and growth and gain attention of large number
of customers.
Government policy The government policy will not implementing
and the objective of change management plan
will not be accomplished.
Legislation The organisation behaviour towards legislation
is different from others so they need to adopt
such laws and rules.
Technological development It will directly impact on technology system of
an organisation that can create affect on
business operations and its functions.
External factors Impact
Political There are certain factors such as VET free
which assist in loan schemes, skilled and smart
3

government subsidised training, training and
development packages and updated national
standards are changes in regular time period
which can directly affect on compliance
procedures (Burke, 2017).
Economical The growth of fitness industry will assist in
achieving the marketing and financial
objectives of an organisation. Therefore, they
are reduces in the household income or revenue
which may result in shifting the customers to
other reasonable options are available.
Social The quality of fitness will shows and fitness
sector analyse with the help of increasing
demand of fitness and health clubs and
therefore, it will enhancing the growth of
fitness clubs of the firm.
Technological The use of increasing technological advanced
techniques and methods and other products
will gain competitive for an organisation thus,
the firm is already technologically developed
and formulated in proper manner.
As per the above mentioned table, it can be analysed that external factors are directly or
indirectly impact on business operations and its functions (Cameron and Green, 2015). Also they
are required for providing effective gain and profit for doing appropriate work in desired manner.
This will assist in getting high amount of income and revenue for deal with different external
factors within an organisation. It includes political, social, technological and economical which
help in effect on business operations and their functions in better way.
4

1.4 Identify major operational change requirements
Operational change requirements Rationale
Performance gaps It will help in analysing the difference between
actual and desired performance. It can give
positive impact on business operations and its
functions as well as their employees
performance. It can positive because of higher
volume of sales, better customers feedback. On
the other hand, it can be negative due to
problem with delivery and shortfalls in quality.
Business opportunities This will assist in providing internal
opportunities such as supervisor or personnel
leaving the organisation for various reasons,
due to outdated techniques failing, etc
(Cummings and Worley, 2014). Another is
external opportunities in which different
factors are involved such as Rivals or
competitors are in trouble relates with
financial, new technological development, etc.
Business Threats It is another major change with operating the
business. There are mainly two types of
business threats such as internal and external.
Internal threats involves low staff engagement
and morale within an organisation, poor
administration of system security. External
threats such as key supplier going outside the
business, some competitor companies are open
their premises at nearby the another business.
Management decisions The management decision is that source which
can change in the company. Along with this,
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decisions are based on large number of
different factors. For example, information or
data concerned the performance of an
enterprise, entire organisational goals and
major objectives, consult with senior managers
and other important person regarding
management decisions, also they are making
innovative and creative for organisation
development or growth.
1.5 Review and prioritise change requirements in consultation with business change manager
The change requirements reviewed and prioritised in consultation with business change
manager are as under:
 Training and development of implementing management and long term employees
 Make improvement in compliance procedures
 Appointment of high qualified and skilled training
 Establishing direct dispersion channels for global markets with entrance into contracts
with international agents.
 It is necessary for shifting through possibilities for getting to required key changes and
alterations (Eason, 2014).
 Most of the potential change opportunities can occurs for analysing change in
requirements.
TASK 2
2.1 Undertake cost benefit analysis
Category (cost) Cost
Training and development of existing
employees
Salary or wages of training personnel
Appointment of skilled and qualified trainers Salary of trainers at clubs
Iron man loyalty card scheme 10% discount on suitable purchases
6

Developing online portals Websites or sites development and service
charges
Contracts with international agents for direct
distribution channel
Agents commission
Registration as RTO RTO license and compliance fees or charge
Increasing in operating hours of clubs Overtime salary or wages
Category (Benefit) Cost
Appointment of skilled and qualified trainers Increase in membership counting
Iron loyalty card scheme Increasing in membership count
Contracts with international environment
agents for direct distribution channel
Increase in customers as well as market place
Training and development of existing
employees
Increase in profit margin
Developing online portals Reduction in costs
Registration as RTO Customer retention for long term
Enhancement in operating hours of clubs Increasing in ROI
Payback estimation:
The increase in cost for implementing the change strategies will also count and as per the
result it provide benefits by increasing in ROI, enhancement in profit margin, increase in
membership count by 10%, it will assist in achieving actual ratio of current assets to current
liabilities of 2.1, ratio of 1.1 of owners equity for borrowed funds, it will assist in increasing by
5% in customer retention rates ad brand enrichment (Grant, 2014). Therefore, the initial
investment as the cost of implementing changes will be recovered within one years by an
organisation.
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2.2 Undertake risk analysis to address potential barriers to change
Barrier Likelihood Impact Consequences Risk
level
Risk
Ranking
Risk
Mitigation
Substitute
fitness centres
½ Loss of
customers
Reduction in
membership
count
High 3 Gain
competitive
advantage
Open fitness
clubs
¾ Reduction in
customers
Decrease in
profit margin
High 1 Increase
hours of
operation
Seasonal
customers
¼ Reluctant for
paying prices
when outdoor
sports and
games are
available in
summer
Reduction in
profit
Modera
te
4 Launching
the
customised
seasonal
packages
Fitness
equipments,
gadgets and
apps and free
health
resources on
internet
½ Non
availability of
services or
facilities
Decreases in
customers
Modera
te
3 Establishing
online
presence
Higher pricing
structure
¼ Non
availability of
services
Reduction in
customers or
buyers
Low 5 Discounting
strategies
and
incentives
on specific
products
8

Lack of
manager
expertise
¾ Failure to
achieving
goals and
objectives
Loss of goodwill
or reputation and
brand image
High 2 Training and
developmen
t of
company
managers
From the above mentioned table, it can be concluded that company has been measuring
the actual goals and objectives of an organisation (Harrison and Lock, 2017). This will help in
identifying the barrier, impact, major risk factors which directly impact on business operation
and its functions.
2.3 Schedule the change management project
The change management project is that process which is used for managing and
maintaining the whole business and it can identifying the major change which has to be done in
better manner. Change management project along with some more details of activities and
duration of such activities for successful implementation of change management initiatives that
can represented by the following table that are discussed as under:
Activity Description Duration (in
days)
1 Training and development of implementing management and their
long term staff members and also appointing high qualified and
skilled trainers.
15 days
2 Enter in to specific contract along with international agents for
establishing and developing direct distribution channels which is used
by company
10 days
3 Developing online portals and internet presence 14 days
4 Registration as RTO 6
5 Making and framing the appropriate strategies and policies for
effective business planning
8
6 Introducing full loyalty card program 1
9

7 Adopting and using specific methods of cost reduction and cost
control
7
8 To monitoring and evaluating the project 10
All the above schedule are describing the time table which is used while implementing
change management plan within an organisation (Higgs and Dulewicz, 2016). This will assist in
identifying the major factors which required proper changes in given time period.
2.4 Assign resources and matrix to the change management project
Parent task Sub task Labour Capital Cost (AUD) Time Outcome
Training Appointmen
t of training
personnel
Trainer NA Salary 15 Better
service
quality
Agents Establishing
terms of
contracts
Agents NA Commission 10 Access to the
international
market
Online
portals
Developing
websites
and portals
Web
developer
Websites or
sites
Service
charges
14 Internet
presence
RTO
registration
Compliance
processing
Legal
personnel
Registration
certificate
License fees
and charges
6 Increasing in
brand value
Framing
policies and
strategies
Preparation
of planning
Managers Procedures
and policies
NA 8 Formulation
and
development
of strategic
business
plan
Cost Implantation Employees NA NA 7 Increasing in
10