HR6004 Project: Analyzing Papa John's Organizational Challenges

This report provides an executive summary analyzing the organizational development challenges faced by Papa John's. It identifies the need for strategic objectives, leadership changes, and business model improvements. The report presents three SMART objectives and applies Brown's five-stage model to develop an action plan, including strategies for internal audits, technology implementation, digital marketing, and organizational restructuring. The analysis includes a diagnostic stage, client-practitioner relationship, and strategies for monitoring, stabilizing, and self-renewal. Secondary research methods were employed to evaluate the challenges and propose solutions for Papa John's to enhance its market share and financial efficiency.

HR

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Executive Summary
Every organisation seeks a way to improve them and for this they adopt different
methodology that gives them edge over the rivals. Organisational development plans are
usually made on the basis of challenges that are faced by the organisation in the market. This
report analyses the case of Papa John’s and the challenges they are facing in the market. For
this company needs to make objectives that helps them in providing strategic benefits and
develop in an appropriate manner. This report will provide 3 smart objectives for Papa
John’s. Apart from this, the report consists of application of Brown’s five stage model and
the way it can be applied at Papa John’s for strategic development. It is found that Papa
John’s requires leadership change. At the same time their business model is weaker than that
of their competitors. They need to build better relation with their clients. In diagnosis it was
found that taking the help of more advanced technologies and utilising better business model
can help them in giving success over the their rivals. Regular internal audit, Implementing
advanced technology, Digital marketing strategy, Low price strategy, Redesigning
organisational structure and Choosing right partners are some of the strategies that company
can use in order to make organisation development. The action plan for it has been provided
in the report.

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Contents
Chapter 1...............................................................................................................................................1
INTRODUCTION.............................................................................................................................1
3 smart objectives..............................................................................................................................2
Key Questions...................................................................................................................................2
Chapter 2...............................................................................................................................................3
Chapter 3...............................................................................................................................................6
Application of the Brown’s five stage model.....................................................................................6
Need for change.............................................................................................................................6
Performance gap............................................................................................................................7
Client/Practitioner relationship......................................................................................................8
Diagnostic stage.............................................................................................................................8
Action plan and strategies..............................................................................................................9
Monitoring, stabilising and self-renewal......................................................................................13
Conclusion...........................................................................................................................................14
REFLECTION.....................................................................................................................................15
INTRODUCTION...........................................................................................................................15
Main Body.......................................................................................................................................16
Conclusion.......................................................................................................................................18
References...........................................................................................................................................18
Appendix.............................................................................................................................................23

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Chapter 1
INTRODUCTION
Organisational development is the key to success in the modern days. This is because there is
continuous change in the external environment of the countries. In any organisation different
kinds of operations are being run and hence organisational development must in different
aspects. Organisational development is understood as study of successful organisational
performance and organisational change. OD is also concentrated towards aligning firms with
their fast changing and complex environment by the help of knowledge management,
organisational learning and change of organisational values and norms. The major concepts
of OD include organisational culture and organisational climate as well as organisational
strategies. Organisational development is done on various variables but the first most priority
is that company should define their priorities and find the challenges they are facing. Based
on this research, company needs to make strategic goals that allow them to bridge the gap
between the performance of the company and the objectives made by the company. Papa
John’s is an American pizza firm that operates in terms of restaurant franchise. It is operating
as the fourth largest pizza delivery restaurant chain in the United States. The major products
of Papa John’s include dessert, Pizza and Chicken wings. It is operating at around 5,200
locations. In 2017, company earned revenue of US$ 1.78 Billion. Total numbers of
employees that are working under the firm is around 20,700. From its establishment in 1984
till today this company has faced many challenges and still it has come out of these
challenges so as to remain competitive in the industry. In this process the role of
organisational development has been the highest. Development in different areas has helped
them in reaching at the position they are today. This company is worth researching because it
gives the proper idea about the organisation development and the way in which it is going to
develop in future. The pizza industry is touching new heights hence analysing the
organisational development these players can be beneficial for the researchers. It will give the
idea about how the developing companies plan their organisational development.
3 smart objectives
 To increase market share of Papa John’s by 10% in next one year.
 To enhance the financial efficiency of Papa John’s by 20% in next 12 months.
 To improve the technological practices of Papa John’s by twice in the next three
years.

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Key Questions
 What do you mean by organisational development?
 What are the challenges faced by Papa John’s in organisational development?
 Which are the strategies used by Papa John’s to bridge the performance gap?
 What are the methods to eliminate the challenges of Papa John’s in organisational
development?
This report will analyse the challenges that are faced by the Papa John’s in the organisational
development. It will also analyse the way in which Brown’s 5 stages of OD will be applied in
Papa John’s. This report also presents the action plan and strategy made by the cited firm
including structural, technological and behavioural aspects of change so as to make
successful organisational development and at the same the approaches for evaluating and
monitoring of changes will be done.
Chapter 2
5 stages of OD model
Most of the researchers identifies that there are five stages of organisational development.
Brown’s five stage models is a framework that helps in understanding the way in which an
organisation can change them so as to achieve success. This is crucial for effective change.
The five stage organisational development model is as follows:
Anticipate the requirement for change
This is the first stage of the model that suggests where first an organisation must understand
or anticipate why the change is needed. In this stage, managers understand their organisations
performance to be poor and hence require improvement. These improvements are required
due to both negative and positive growth or also due to fast changes in the competitive
market, introduction of technology or the innovation that is going in the company or industry
(Burnard and Bhamra, 2011). The changes in both internal and external environment play a
major role in the organisational development. There are different factors in the environment
that has impact on the growth of the firm and hence compelling them to make necessary
changes so as to ensure long term growth. As early an organisation is able to anticipate the
requirement for change, more is the chance that they can gain success in the market.
Developing the practitioner-client relationship

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Second stage of this model suggests creating practitioner-clients relationship in which
companies gives an OD program where higher success depends on the clients and
practitioners system relationship. The beginning of the interpersonal relation relies of the
good first impression. Companies change their model so as to improve this relation as it has a
major role in ensuring that marketing remains successful. A psychological contract needs to
be made by working as per the expectation of the customers and also by analysing the
obligation that it must fulfil in the market.
The Diagnostic phase
In this stage of organisational development, both firm and their customers start gathering the
data regarding the system. It gives a better knowledge about client system issues. It is crucial
that an appropriate, powerful and without default diagnosis is attained so as to prevent an
ineffective and costly change. This is a crucial phase where the problems due to which
changes are required is analysed. It must be a thorough process where different aspects of the
system and client’s requirement are found out. Based on this analysis only, organisational
development process can be carried out and hence selecting best strategies that can give them
competitive advantage over the others (Lalonde, 2011). Strength of diagnosing through
technology is that it increases the reach of the company so as to communicate with large
numbers of customers and the weakness with of this data gathering technique is that it might
give vague data that might not be necessary for dong the research.
Plans, Actions, techniques and strategies
This is the fourth stage of the organisational development model where programs, activities
and interventions for change will be decided. This is totally done on the basis of diagnosis
that is done in the above phase of the organisation development model (Lloret, 2016). The
programs will apply OD techniques that are relevant and helps them in making required
changes. All the efforts are made according to the goals and strategies made for the process
of organisational development. The actions that will be taken gets planned in this part of the
model where it is found that which actions will give maximum benefit and which will not.
These activities or actions are decided according to the demand of change and the
requirements they have for implementing this change.
Monitor, Stabilize and Self-Renewal

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When all the activities, processes, strategies are implemented, the next step is to keep the
track on the results. This will help in stabilising the desired alterations. This is a stage where
a firm analyses the effectiveness of the strategies of change for obtaining the desired
objectives. This monitoring is essential for ensuring that once the issue is being corrected and
change program has already being implemented, new kind of behaviour can be internalised
and stabilised (Francis, Holbeche and Reddington, 2012). This step ensures what more
changes are required by the organisation based on which solution can be redesigned. Self-
renewal is done through this process based on the data that is collected through monitoring
the alterations done.
In this process, the humanistic values have to be included in the organisational development
model. This is because changes are being done from basics which will have direct impact on
the employees and the stakeholders attached with the company (Pastuszak, et al. 2012). In
order to reduce the challenges that confront the business in any change, it is essential that
company applies ethics appropriately. This is not only crucial for managing the challenges
that are confronting the changes but also ensure that no one remains unsatisfied. Since in the
organisational development practices a huge range of stakeholders gets affected hence it is
also necessary that ethical value, societal and company’s norms along with individual’s
perspective is taken care of. This is necessary for enhancing the effectiveness of the
organisational development model.
Here secondary research strategy has been used that involved gathering of data from different
secondary sources such as books, Journals, article review, company’s annual report (Mills
and Plangger, 2015). The published papers and the documents from different sources are
being used so as to analyse the organisational development model that needs to be applied in
the Papa John’s. The limitation of this type of research can be fact that the data involved in
this research might be vague and sometimes misleading. There is always a lack of trust on the
way others have gathered the data. This is also true in terms of the fact that approach of the
other person’s work might be different (Mumford, 2010).
Brown’s organisational development model allows a company to do changes in different
steps. From the perspective of other change management models, this is a highly suitable
strategy as it reduces the chances of confrontation. Change management models such as
Lewin’s change management model and Kottler’s eight step change management model are
justified in these five stages. Kottler states that there must be sense of urgency which in this

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model is expressed in the first step where the model suggests anticipating the change
(Ladyshewsky, 2010). The other steps are also being addressed in the Brown’s five stage OD
model. For instance the second stage of both the models suggests focusing on building
effective relationship or partnership. Brown’s OD model also suggests monitoring the
changes which is crucial for ensuring the overall effectiveness of the changes.
Chapter 3
Application of the Brown’s five stage model
Need for change
There are series of challenges being faced by Papa Jones. These challenges have forced the
company to make changes in their business and the way in which they do their business. First
thing that is a matter of challenge for the company is its decreasing sales which has seriously
affected their financial performance. In spite of company’s efforts towards improving the
condition, Papa Johns have failed in doing so (Richards, 2018). Along with this competitors
have made significant changes in their business model that has given them competitive
advantage over the rivals especially Domino. From recipe to Customer Loyalty Engagement
Index, Domino has put all their competitors far behind. Papa John’s has not been able to beat
any big global competitors.
Apart from this, company is facing leadership challenges at the top levels which have been
reported by many of its shareholders. Due to management issues at the top level, Papa Johns
has also faced issues related to corporate culture. Company has not been able to examine the
needs of consumers and react according to the demands in the market. Company’s reaction
towards meeting the requirements of the consumers has been slow. Apart from this company
has been failing in building trust in the community they serve as their public relation
programs have been poor (Carlström and Ekman, 2012). For this they need to deliver new
advertisements having transparent ads at several platforms.
Technological advancements and increasing economic instability in different parts of the
world is not allowing the company to ensure the growth that they desired for. In achieving
desired goals role, their strategic initiatives and approaches used by them has not been so
much successful. They have generated many communicational barriers as they are not able to

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have proper interaction with all its stakeholders (DiPietro, et al. 2012). Company has failed in
terms of increasing the customer satisfaction level and providing a value to their product that
customers desired for. The changes are also needed as the company has failed to meet its own
expectations and achieve a growth rate that is desirable or said to be good in the industry. Its
top leadership did not take the support of the people at different levels and that egoism has
made such a huge loss to the company.
Performance gap
The external environment in the Pizza industry has become very much competitive. The
political and economic changes are too fast and are forcing the companies to reduce their
operational cost and increase their profit margins. Political tensions in various parts of the
world have increased and this has fostered instability in the business environment especially
in the foreign trade and expansion plans of the company (Dawson-Shepherd, Kellner and
Neumann, 2013). Due to declining European economy and reduction in the growth rate of the
American economy, their scope of expansion in the new markets has reduced. This has
affected the financial performance of Papa John’s. There is a serious gap in the kind of
performance desired by company in this environment and the type of performance that it is
delivering. The change in the external environment is fast and this fast changing external
environment need to be tackled with the appropriate strategy and flexible approach to
business but right now, this is missing in the way Papa John’s is doing their business (Otutu,
2015).
Pizza industry has largely incorporated technology in their different operations. In such an
environment, it was essential that Papa John’s also takes use of highly advanced technologies
especially the once that are innovative. On the other hand Papa John’s has not been able to
incorporate disruptive innovation which gives them competitive advantage over the rivals
which is reflected by its sales data. At the same time, it is also to be noted that society
demands have changed and this change in the social demands is in terms of providing best
value for the prices they have attached with their products. People also want to buy products
of different varieties for which Papa John’s will have to enhance their product range for
which this firm has not done anything significant. In today’s time customer relationship
management along with stakeholder’s management plays a very significant role in the
success of business. This company has been poor in terms of maintaining healthy relationship
with their clients (Pruis, 2011). This performance gap has resulted company in their sales
growth. Apart from this increasing complexities in the legal environment of the Pizza

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industry along with the strengthening of the environmental laws by different countries have
pushed Papa Johns to ensure that they do not violate any of these laws.
In this environment, it has become essential for the firm to maintain a healthy relation with
their clients as well as their investors. They will help them in implementing their strategies an
appropriate manner which is necessary for achieving long term growth of the organisation
(Fowler, 2013). They have not been able to manage their human resource management
especially in terms of building their skills and gaining larger market segment. Due to this,
productivity and efficiency of the overall organisation is at stake. Due to lack of training,
performance gap can also be seen in the way employees are performing in the company.
Client/Practitioner relationship
As per the need of change that has been analysed in the start of this report and the
performance gap that has been analysed by the analysis, it can be said that company needs to
apply organisational development model in an appropriate manner. The relationship between
client and practitioner has to be appropriate so as to achieve the maximum effectiveness.
Since customer relationship management in the industry is very much vital and this company
has performed poor in managing this (Garavan, Carbery and Rock, 2012). First thing that
needs to be done in this regards is that company should implement technology for increasing
the reach of the company towards the clients. Use of advanced technologies will help the
organisation in enhancing the customer engagement which is very much crucial in the
client/practitioner relationship. As this company is facing challenges in understanding the
need of the customers hence through this relationship they can easily be able to find out what
changes they need to do for improving the situation (Prakash and Singh, 2011). In order to
improve the scope of the company towards making better client/practitioner relationship, it is
essential that firm hires people that are dedicated towards this. In the client/practitioner
relationship, firm must concentrate upon improving the standards of communication. The use
of social media and other platforms will help the firm in enhancing the relationship with the
clients as the organisation will be able to read the behaviour of the client especially the
marketing behaviour (Valinski, 2018).
Diagnostic stage
For implementing strategies related to change, it is crucial that company diagnoses the
problems in a better manner so as to understand the thing that can help them in facing the
challenges in an appropriate manner. In diagnostic phase, a company must be able to not only

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find the challenges but also should be able to find the reason why they are arising. Doing the
market analysis with the help of tools such as data analytics can enhance the chances of the
company to make better strategies. The real reason for degrading sales of the company is that
their employee’s productivity is not up to the standards of the industry (Magzan, 2011). For
this, company can take help of continuous training. Training regarding client oriented
services will help them in improving the situation related to service quality and client
relationship. It is seen that top leadership is not effective even after some of the resignations.
It was diagnosed that since the decision making was only done at the top level of the
management hence lots of ego came into the decision making process. This is not good for
making effective decisions at the bottom levels. For this, it was necessary that company
applies collaborative decision making approach where more numbers of people who belongs
to different departments and are working at different levels of the organisational structure is
involved (Wolfe, et al. 2014). Making decisions as a team will help the firm in enhancing the
quality of decisions. In such decisions people from different professional backgrounds must
be involved so that issues that may arise due to these decisions can be reduced.
Recruitment and selection process in the company must also be improved, this is crucial for
hiring the best talents in the firm. This will also reduce the chances of ineffectiveness or
working as the performance gap will be lesser and company will be able to focus on other
things (Harper, Randall and Rouncefield, 2012). Special attention needs to be given to the
people who are not performing as per the need of the company. Best Fit approach needs to be
adopted by the company in the HRM area.
Action plan and strategies
For reducing the challenges related to Papa John’s that was identified in the above section,
company needs to make a suitable action plan that is capable of organising all the activities in
an appropriate manner so that they can reduce their performance gap.
Milestone Start Date End Date Budget Department
Concerned
Diagnosis of the
areas where
changes are
required
1/5/2019 9/7/2019 $1000 Business
Development
Thorough 10/7/2019 11/9/2019 $2500 Marketing

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market
research so as
to understand
the changing
behaviour of
clients
department
Making of
strategies that
are effective.
15/9/2019 15/10/2019 - Business
Development
Reorganising
organisational
structure.
15/10/2019 20/12/2019 - Business
Development
Training of the
employee
especially sales
department
especially in
terms of using
best resources.
1/1/2020 1/3/2020 $2000-$5000 Training
Department
Installation of
new
technologies
that can help in
improving the
communication
within the
organisation as
well as also
fasten up the
speed of the
process that
can ensure
client
2/3/2020 1/5/2020 $10000-15000 Technology
department