Leading Change: Compass Group Plc Strategy and Analysis Report

This report provides a comprehensive analysis of leading change within organizations, using Compass Group Plc as a case study. It begins with a comparison of Compass Group Plc with Sodexo, examining their organizational strategies and operations. The report then evaluates the impact of internal and external drivers of change on leadership, team, and individual behaviors, including resources, organizational culture, political, economic, social, technological, environmental, and legal factors. Furthermore, the report assesses measures to mitigate the negative effects of change, utilizing Lewin's force field model and other strategies. Different barriers to change and their influence on leadership decision-making are also explored. Finally, the report applies various leadership approaches to deal with change, offering practical insights into effective change management. The analysis highlights the importance of adaptability and strategic planning in navigating the dynamic business environment.

Understanding
and
Leading Change
Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Comparison of different organizational instances................................................................4
TASK 2............................................................................................................................................6

P2. Evaluation of ways in which internal and external drivers of change impact leadership,
team and individual behaviours..................................................................................................6
P3.Evaluation of measures to mitigate negative effect of change on organizational behaviour.8
TASK 3............................................................................................................................................9
P4. Different barriers for change and how they leadership decision making.............................9
TASK 4..........................................................................................................................................10
P5. Apply different leadership approaches to deal with change...............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Change is a powerful thing which may bring opportunities or posses threats for an
organization. It refers to alteration or transformation in existing activities. It is important to
understand and address them for surviving in the cut throat competition (Berman and Korsten,
2014). The business environment is unstable and its factors viz. Internal and external are
dynamic in nature which forces entities to modify its strategies, procedures and other important
activities and process. Compass Group Plc has been chosen in this report. It has headquarters at
Surrey, England, United Kingdom. Further, the assignment covers comparison of different
organizational examples showing the impact of change on organization's strategy. Along with
this, evaluation of how internal and external factors of change can impact leadership, individual
behaviour and team which is followed by assessment of measures to mitigate negative impact.
Furthermore, explanation of different barriers for change and there influence in decision-making
and application of variety of leadership approaches in order to deal with modifications.
TASK 1
P1. Comparison of different organizational instances
Organizational strategy refers to plans or actions carried with an objective to achiever
long term goals. It may involve strategic planning for the success of an enterprise. On the other
hand, operations in an entity is practices or activities carried by various departments working in
a company (Bligh, Kohles and Yan, 2018). Changes may have significant impact on business
which should be considered for the success of an undertaking. Impact that change leaves on
Compass Group Plc's strategies and operations can be understood through a comparison with any
one of its competitors.
Compass Group Plc is a British company that provides contract based food service. It is
based in Surrey, England and operates in multiple countries i.e. multinational. It is the largest
contract food service company in the world. Further, it is listed in London Stock Exchange and a
Fortune Global 500 company. It has presence in approx 50 countries and employs over 550,000
people.
The enterprise that has chose for a comparison with chosen company is Sodexo which is
a France based entity providing food services and facilities management. It is also a
multinational corporate giving tough competition to Compass Group.
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Basis Compass Group Plc Sodexo
Vision plan It has vision of becoming a world-class
provider of contract food service and
support services (Bristol, 2015). Along
with this, it wish to be know for its
great staff, great service and great
results. It focus on quality of food it
serves to all the customers.
It wish to provide unique food service
with an aim to outperform its top
rivals. For achieving this, expansion
plans to different countries in which it
is not present is there. Also, work in an
ethical manner.
Goals It has short and medium term goals
which includes sustainable development
for retaining the number one position
which it has currently. And the long
term goals are for delivering superior
service in most efficient way so that it
can benefit to customers, shareholders
and associates.
It has long term objectives to improve
quality of daily life for all stakeholders
which will reflect the highest standards
of business ethics and commitment.
The company is focused into
maintaining healthy relationship with
employees, customers, shareholders,
government etc.
Corporate
Culture
The enterprise is working in approx 50
countries and has people from different
backgrounds working in the company.
This change is important for making
company understand and remove
barriers which may arise in conducting
business at international level.
The company has policy to make
changes in policies which is suitable to
majority of workforce. It has aim of
providing best environment for
employees in order to retain them for a
long time. Also,. It gives growth
opportunities by decoding the impact
of change in business.
Planning Since its focus majorly on short and
medium term goals, due to which it
makes plans for six months to one year
depending on the requirement.
It is more into making long term goals
which involves strategic planning and
detail blue print is prepared for guiding
in execution of whole plan (Goleman,
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2014).
Customer
relations
It operates on contract by making
adjustments in choices in menus. In
other words, customised services are
provided by it which can provide
highest satisfaction.
The company has analysed rest of the
stakeholders other than customers are
equally important, hence, tries to have
good rapport with parties along with
customers.
TASK 2
P2. Evaluation of ways in which internal and external drivers of change impact leadership, team
and individual behaviours
Change factors or drivers exist in a business environment which have potential to make
enterprises adjust their strategies, plans, designs, products and operations. These are divided into
two categories viz. External and internal which may bring opportunities for organizations.
However, negative impact can also be possible with the pressure for such forces. Modifications
are done to work in a synced manner in such a dynamic environment. These have been
explained below in detail:
Internal drivers
The elements which force internal activities, processes or procedures to change are
known as internal drivers. These bring transformation in the business which may have significant
impact on people working in the organization. Every entity must have experts or a team
completely dedicated to identify and make alterations in existing practices. An explanation of
internal drivers of Compass Group Plc have been discussed below:
Resources: It is prime factor which can affect business in an evident manner. In the
context of organization, resources refers to human resources, capital, monetary and inputs
required for achieving goals and objectives of an entity. These are vital and every company has
required resources which is actually scarce. These must be utilised in optimal for getting
maximum output. Compass Group Plc is leading in food service business as it is directed towards
providing best quality with the its limited resources (Hodges, 2016). Also, it has realised the
importance of sustainability which is achieved through abiding by laws and legislations. This can
save a lot of costs which could be blocked otherwise in paying penalties. Furthermore, each of
the resources can be more or less depending on need and presence in the market. The leadership
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styles are changed by leader according to changes taking place which helps in carrying work
effectively. Also, all the units understand the guidance provided by leaders which help in
achieving desired results. Furthermore, the behaviour of individual is positive as they become
more aware about putting right amount of efforts for using the resources appropriately.
Furthermore, teams work in an harmonised way as per the requirement of mission.
Organizational culture: This factor is related to employees who are one of the resources
and without whom an organization can not achieve its targets. It refers to beliefs, attitudes,
opinions etc. of people working in the organization. Compass Group Plc is a multinational
company which has benefit of having diverse culture. Furthermore, it has always supported ideas
of its employee and taken them into decision-making. This increases their affection and
emotional attachment towards to company which ultimately reduces employee turnover. Also, it
appoints the best talent who are eligible to hold the specific position within the organization
(John and Kulkarni, 2014). The leaves a positive impact on leadership because of co-operations
from top management and other employees at the time change occurs. They are able to guide
team members in desired manner. Furthermore, individual behaviour becomes more positive and
stable with expected changes in policies. Furthermore, team performs in a collaboration for the
attainment of common goals.
External drivers
These refer to factors that are not present within the business organization but can
influence its activities and decisions. Such drivers are beyond the control of internal management
and are in fact unavoidable. They have significant impact on organizational strategies and
operations. Quick adaption of changes are helpful in bringing co-ordination between work. It can
be understood with PESTEL of Compass Group Plc, which is as follows:
Political factor- The activities related to policies made by government are termed as
political factor. It includes, changes regarding legal, ethical, demographical etc. further, it holds a
great value in modification of business practices. Compass Group Plc keep pace with
requirements of corporate governance. It has started working ethically and contributes every year
for the development of local communities as performed under CSR.
Economic factor: There are elements that governs an economic cycle which includes
inflation rate, demand and supply in the market, exchange rate, interest rate etc. Compass Group
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Plc employs manpower according to prevailing growth rate. Also, it conducts research to know
about the preferences of customers before making changes in existing practices (Lucas, 2015).
Social factor: The beliefs, perceptions and opinions of people living in the society can
impact the business and its brand image. Compass Group Plc is directed towards helping the
underprivileged people. They provide free meals to such category of individuals as a gesture of
ethics (Martynovich and Lundquist, 2016).
Technological factor: These are the most vital in order to carry business in a competitive
way. Compass Group Plc has underwent a transformation where by advanced technologies have
been introduced for keeping pace with other rivals.
Environmental factor: Awareness among people regarding environment has increased
majorly due to the reason of high level of CO2 emission. Compass Group Plc used most of the
products which can be recycled and utilised again.
Legal factor: Legislation and rules are included in this factor. Every organisation has to
follow laws that are applicable on its business. Compass Group Plc consider fulfilling the legal
requirements as one of its prime goals. It has successfully changed policies to implement
corporate governance practices.
External factors influenced leaders to have positive outlook of the of the changes taking
place which are hard to avoid or control. They lower down the resistance of employees to accept
the change and work accordingly. Individual's become more concentrated to put efforts for
achieving their goals within the allotted time. Furthermore, teams directions provided by the
leaders for improving the performance.
P3.Evaluation of measures to mitigate negative effect of change on organizational behaviour
Organisational behaviour is the concept of people behaving in a particular way weather
in the group or organisation. It is reflected in the performance of each individual. Furthermore,
behaviour may have influence job structure, communication, motivation and many more.
Leaders are appointed to encourage work force to perform for getting desired outcomes. Changes
are inevitable which may have positive as well as negative impact on the perception,
performance and behaviour of employees. If an entity understand the changes occurring and
addresses them by making provisions for alterations, then it can survive in cut throat competition
without missing a major. Hence, it is important to you have a control over the changes and
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should be reduced majorly (McCalman and Potter, 2015. For minimising the negative effect of
change and evaluation of number of measures have been provided as under:
Lewin's force field model: It was given by Kurt Lewin who review the impact of change
on organisational behaviour. According to this model, division has been created between the
forces bringing change and forces limiting them. Along with this, an equation has been provided
which states that in order to have a change, driving forces must exceed restricting forces. Also,
basic and common perception is that main the external forces have major impact on
organisational behaviour (Polden, 2015). In case of a change, it is evident that employees
resisted change at initial level which causes problem. However it can be overcome through
appropriate leadership.
Nudge theory: The theory is insist on inspiring individuals to adapt changes. It enables a
person understand the existing change a business process or activity is going through. This
ultimately helps in deciding weather 2 you eliminate it or except to a specific level which may be
consider as positive. It is about providing direction to employees to influence preferences.
Both the above theories are in change management. Lewin’s force field analysis put focus
on differentiating between driving and restricting forces. On the other hand, Nudge theory
consider encouraging a person to accept change (Rhea, 2014). Furthermore, in this theory, ideas,
feelings, opinions etc. Employees are taken into consideration while making decisions for
reducing effect of change.
TASK 3
P4. Different barriers for change and how they leadership decision making
Barriers are the challenges that an organisation may have during change management.
They are responsible for giving negative results. It is necessary to find out such hurdles and their
impact on leadership decision making so that corrective measures can be taken. Some of the
barriers for change have been mentioned below:
Resistance to change: It is not easy to convince personnel to accept change and make
adjustments to be able to perform according to directions provided. It has been observed that, a
person is willing to work in an organisation that is stable as compared to others which are prone
changes. Reason for it could be the opinion of majority of people that change will affect their
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performance negatively. In such a scenario, it becomes difficult for leaders to make decisions
which can provide benefits to all (Rothwell, Stavros and Sullivan, 2015).
Unknown current state: in order to incorporate changes it is necessary for entities to
have conducted in in depth examination of structure and likely impact of modifications that are
going to take place. This may take time which cannot be awarded by organisation to invest into.
Therefore, corporate scan proceed with making changes without any analysis. This may cause
major issue which makes force the decisions to fail.
Integration: change require managing number of integration and which is actually not
possible in a large scale company like Compass Group Plc. There are number of departments that
a working on a specified process or structure which are changed while making modifications. It
is not possible in a running business as it may disturb its activities (Storey, 2016). A leader has to
change his style, policies, guidance and direction for making effective decision. This may need
number of months to finish.
Competitive forces: an organisation is majorly affected by external drivers
predominantly competitors. An entity like Compass Group Plc perform to retain the position in
the market for which it has to provide services better than the rivals. Also, failure risks should be
assessed before launching a service or a product with a view to give tough competition to the
organisations operating in the same industry. The scan force leadership decision making to
pressurise employees in an excessive manner resulting negative impact.
TASK 4
P5. Apply different leadership approaches to deal with change
Leadership approaches refer to providing direction, guidance and motivating people
working in the organisation. A leader follow one more approaches to influence aphids or
activities of an individual or a group. These are explained below :
Autocratic leaders: this type of approach is very rigid because ideas for millions of the
members are not considered while execution making. Ultimate decision is taken by the manager
or leader based on their knowledge and skills. It can be used to make prompt decisions. For
example, Compass Group Plc can adopt this approach for preparing plans in which does not want
intervention of team members or their advices are not important. Negative outcomes of this
approach are high absenteeism and turnover in employment.
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Democratic leaders: it it is opposite to autocratic approach. Leaders take final decision
by increasing employees to share their set of ideas which are included in all decision making
process. This approach exercises active participation of team members which temperature send
to show innovation in their performance. Compass Group Plc can apply this approach any
matters of changes taking place in organization culture. Expectations and queries of an individual
working in the company is important to consider for providing them high job satisfaction and
motivate them to increase their productivity.
Laissez faire: is approaches light by employees because of high freedom given by the
leaders. Feel motivated and free to share every bit of the work performed by them along with
personal problems (Tombetti and Mason, 2018). This approach is helpful in creating a close
relationship between leader and team members. Individuals get a sense of belongingness and
connect with the company which helps in retaining them and increase their efficiency. Compass
Group Plc what this approach for understanding the problems for reasons of resistance by the
employees in accepting the changes.
Transformational leadership: the leaders following this approach are considered to be
more emotionally stable and empathetic towards his subordinates. It is used in most of the
organisations because of the features it has. Employees are motivated on the basis of the fact that
each one of them are valuable to the company and expected to work by putting their best efforts.
Also, leaders take the responsibility of the outcomes (Wilkinson and Kemmis, 2015). Compass
Group Plc applies this approach to resolve conflicts in a prompt manner and for taking decisions
to avoid disputes in future.
CONCLUSION
From the above report, it has been concluded that change is beyond the control of any
person working in the organisation. It is important to understand and accept the change for
making immediate adjustments in the business practices in order to save time and money.
Furthermore, analysis of impact of changes taking place on business Strategies and operation
should be the top priority so that require decisions can be made. Along with this, assessment of
influence of internal and external forces must be done for uncovering the impact on behaviour of
leaders, individuals and teams. Also, measures of evaluating alterations has to be done for
choosing one model of change management. Along with this, barriers of change should be
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eliminated or reduced to a considerable level and write leadership approach must be chosen for
adjusting the changes according to the desirability of the organisation.
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