Organizational Change Plan for ABC Pty Ltd - MGT615, Semester 1

This report presents an organizational change plan for ABC Pty Ltd, addressing challenges such as increased competitive pressure and the departure of senior executives. The plan focuses on two strategic priorities: upgrading technology infrastructure and reviewing staff competencies. The report outlines goals and objectives, key stakeholders, required organizational climate, and potential problems like employee resistance. It details implementation strategies, including counseling services, timelines, and training programs, along with a communication plan to engage employees. A cost-benefit analysis demonstrates the financial advantages of the proposed changes. The plan also includes a staff development and training plan, and methods for plan review through customer and employee feedback. The aim is to improve market share, revenue, and employee performance through technological advancements and improved staff skills. References to academic sources support the plan's recommendations.

Running head: ORGANIZATIONAL CHANGE PLAN
Task 1: Organizational Change Plan
Name of the Student:
Name of the University:

1ORGANIZATIONAL CHANGE PLAN
Table of Contents
1.1 Purpose and rational.............................................................................................................2
1.2 Goals and objectives............................................................................................................2
1.3 Key stakeholders in planning and implementation process.................................................3
1.4 Required organizational climate/ conditions critical to implement plan.............................3
1.5 Description of problems.......................................................................................................4
1.6 Implementation strategies....................................................................................................5
1.7 Communication plan............................................................................................................5
1.8 Cost benefit analysis............................................................................................................5
1.9 Proposed staff development and training plan.....................................................................6
1.10 Plan review.........................................................................................................................7
References..................................................................................................................................8

2ORGANIZATIONAL CHANGE PLAN
1.1 Purpose and rational
From the case study scenario of ABC Pty Ltd. the company is facing an increase in
competitive pressure lead to departure of the senior executives. The organizational change
plan will help the organization to increase in their market share as well as revenue. The two
selected strategic priorities for ABC Pty Ltd. are upgrade of the technology infrastructure and
review of the staff competencies. Technology upgrade will help the company to better
manage of all the departments and review of the staff competencies will help in identifying
areas of further development to employee’s performance.
The first priority is upgrade of the existing technology infrastructure of ABC Pty to
provide them with advanced technology platforms. There are various departments in the
organization involved in development as well as distribution of the beauty products in
boutique stores plus retail chains. Second priority is review of the staff competencies by
providing them training. It is required as the company is required to maintain a competition
position in the Australian market.
1.2 Goals and objectives
The main goals of the organizational change plan are to inform the employees about
the company’s strategies and target customers and help ABC Pty to meet with the core
organizational objectives. The company is wished to provide quality service by making
improvement over body care products and services that excellence in everything provides.
Following are objectives:
 To improve over 8% of the market share of the company and increase in entire
market rate by 10% in six months
 To provide consistent technology platforms and training to the employees

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 To increase in market revenue of the company by recovering of 23% of the
revenue lost in 1 year
 To deliver communication plan to engage the employees in commitment of
organizational values, ethical principles, mission and vision
 To deliver excellence in products by attracting 25% of new customers
1.3 Key stakeholders in planning and implementation process
Key stakeholders Role of the stakeholders
Business Owner  Provide support in organizational change processes
Government  Responsible for planning approval
 Review the legal requirements of plan
Marketing Team  Increase in public awareness
Project Partners  Develop and delivery of organization change plan
 Provide technical advice for the plan
Project Manager  Plan and organize entire implementation plan
 Monitor the project time and cost
Business Consultant  Collect information from business clients
 Execute the plan based on client’s requirements
Financial Officer  Collect funds for the new implementation plan
 Estimate total budget for changes
1.4 Required organizational climate/ conditions critical to implement plan
The financial resources, physical resources and corporate culture are required to meet
with the organizational change plan. The financial resources are project funding,
opportunities for investment as well as sources of income (Ansoff et al. 2018). The physical

4ORGANIZATIONAL CHANGE PLAN
resources are location of the company and facilities provided to the employees. The corporate
culture should provide strong effect on economic performance of the company, and a better
culture is compatible for the business environment to drive proper financial results
(Rothaermel 2016). The employees should align with better culture by means of aligning the
organizational goals.
1.5 Description of problems
Due to implementation of the strategic priorities in ABC Pty, the main problem is
employee resistance. The employee resistance to change is started in middle management as
they are concerned about how new changes would affect the department. After the
implementation of changes, the employees are also continued with resistance to change when
they are feeling that the new changes can cause unwanted work as well as new
responsibilities involved (Lasserre 2017).
ADKAR is a modern tool used to manage the change problems by representing five
outcomes that employees require to achieve changes as:
Awareness: The managers should communicate new changes with the employees and
general employee communication is performed to aware all about the communication
strategy and quality services changes (Hitt and Duane Ireland 2017).
Desire: The employees should desire to participate as well as support the
organizational changes.
Knowledge: The employees should gather knowledge about possible change areas so
that they are clear about the changes.
Ability: The employees should gain ability to acquire new skills and manage their
own behaviour, then the change is being accepted.

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Reinforcement: Reinforcement to sustain the organizational change should make the
employees clear that there is no turning back and how the changes should benefit the
company.
1.6 Implementation strategies
a. Counselling services should provide to employees for navigating the change
situations
b. Implement timeline to manage project changes
c. Project meetings are conducted to aware the employees about the changes in the
business (Newburry, Deephouse and Gardberg 2019)
d. Training to the employees for adapting new IT infrastructure as well as computer
applications
1.7 Communication plan
Audience Description Frequency Method
Employees Aware of the possible changes Weekly Meeting
Business Owner Board meeting to discuss on
benefits of the changes
Each two
weeks
Meeting
Project Manager Contribution of the department
newsletter
Quarterly Conference
call
Business Consultant Updates on the change
implementation plan
Weekly Meeting
1.8 Cost benefit analysis

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The business has lost 23% of the business revenue. The first priority of the
organization is upgrading to current technology infrastructure will require cost for software
development. The human resources are also increased as well as financial expenses are so
high, that the employees can gain benefits of the technology. The benefit of this strategy is
that the company can compete in the market (Bryce 2017). Training needs will not require
more cost, as software is available online where staff competencies are to be assessed. If the
organization will not make changes, then the potential cost blows out to be approximately
$45, 0000 as the company will get in entire losses due to not making any changes in their
communication plan, and quality services processes. If the company can make changes in
their business operations, then the cost savings is:
Software development $ 20,950.00
Development team salaries $ 8,160.00
Training $ 1,500.00
Total Development Cost $ 30,610.00
Marketing $ 10,000.00
Office supplies $ 209.00
Operational Labor $ 15,000.00
Total Operational Cost $ 25,209.00
Approximate salary savings $ 1,00,000.00
Reduced operating cost $ 40,000.00
Total Benefit $ 1,40,000.00
1.9 Proposed staff development and training plan

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The employees should provide training in structured way to learn skills as well as
knowledge needed to operate the new changes efficiently. Training should include face-to-
face training sessions and on-the-job coaching for using the advanced technology
infrastructure. Online training is also conducted such that the employees can get ideas of
changes (David and David 2016).
1.10 Plan review
The possible feedback taken for the organizational changes are:
i. Customer feedback is taken by performing survey method so that the customers
can provided their feedback on if they are happy with their quality services.
ii. The employees are taken feedback by face-to-face meetings, so that it should
ensure that communication changes would be helpful for them (Zhao et al. 2017).
iii. Evaluation and coaching is conducted helps in taking feedback from the
employees, if they are happy with the working environment.

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References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter
de Gruyter GmbH & Co KG.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Newburry, W., Deephouse, D.L. and Gardberg, N.A., 2019. Global aspects of reputation and
strategic management. Global Aspects of Reputation and Strategic Management, pp.1-20.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Zhao, E.Y., Fisher, G., Lounsbury, M. and Miller, D., 2017. Optimal distinctiveness:
Broadening the interface between institutional theory and strategic management. Strategic
Management Journal, 38(1), pp.93-113.