Change Management Strategies for Qantas: An Organisational Analysis

This report provides a comprehensive analysis of change management strategies within Qantas Airlines. It begins with an introduction to the company, followed by an internal and external analysis, identifying strengths, weaknesses, opportunities, and threats. The report then delves into a literature review of change management, exploring various models such as Lewin's Change Management Model, the Kubler Ross Change Curve, and Kotter's 8-Step Change Model. The core of the report focuses on recommending and applying Kotter's 8-Step Change Model to address issues such as cost-cutting strategies impacting worker motivation and managing competition. The report also outlines the resources required for successful implementation and concludes with a summary of key findings and recommendations. The report highlights the importance of strategic change management frameworks in addressing human resource and financial management challenges within the airline industry. It emphasizes the need for effective communication, employee engagement, and a clear vision for change to ensure sustainable success.

Organisational learning and change
Qantas change management
Student name

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Table of Contents
Introduction................................................................................................................................2
Internal and external analysis.....................................................................................................3
Summary.................................................................................................................................4
Literature review........................................................................................................................5
Change management strategies for Qantas................................................................................7
Lewin’s change management model......................................................................................7
Kubler Ross change curve......................................................................................................8
Recommended strategy..............................................................................................................9
Kotter’s 8-Step Change Model...............................................................................................9
Resources required...................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14

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Introduction
Qantas Airlines is currently world’s second oldest airline company which was
founded way back in Queensland and has been continuously operating since 1920. The
company started its business with air taxi flights and joy rides. Scheduled airmails started
from 1922 and first overseas passenger flight was started from 1935. The company considers
safety while travelling and thus remains committed to maintain a position of leading domestic
carrier along with world’s premier long-haul flights through double brand strategy adopted,
Jetstar and Qantas. The main objective of the firm is to maintain consumer loyalty that is
been achieved by providing excellent service through both of these brands. The operating
strategy of Qantas is complemented by excellent approach to financial management as the
firm seeks long term and sustainable return to its stakeholders. The firm’s domestic airlines
include Australia’s premium service airlines that carries around 22 million passengers
annually in approximately 4,300 fights scheduled per week. In Qantas, domestic flights are
integrated to provide airline transport through its major brands like Network Aviation,
QantasLink and Qantas. Main market of its domestic flights includes large metropolitan
areas, capital cities as well as other regional hubs all over the country that holds
approximately 60% of total domestic market share. Qantas International airline reflects
premium services by providing air transportation between Australia and other countries like
Asia, America, Africa, Europe, etc. under the name of Qantas brand. In 2018, around 8
million passengers were carried by 680 flights per week (Qantas, 2018).

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Internal and external analysis
Figure: Internal and External analysis (Gurel & Tat, 2017)
Strength: Strength analysis includes those characteristics that brings value to the organisation
and makes them more special than others. In this sense, it can be said that strengths refer to
favourable and advantageous factors of the firm (Gurel & Tat, 2017). Qantas Airlines, since
inception have always shown a steady growth and constant inflow due to good strategic
framework. Biggest strength of the firm is its long-haul passenger flights that made the
company earn a revenue of $14.7 billion in 2018, contributing around 86% of total Group’s
revenue. Being a closest competitor of Virgin Australia, Qantas increased its domestic
presence and with strategic planning has been able to increase stakeholders return through
domestic market that made Qantas face international recognition also. Furthermore, the cost
cutting strategy of Qantas financial management have been able to cut-off around $2 billion
that helped the firm make investment in other significant areas like making purchases of new
premium air flights (Qantas, 2018).
Weaknesses: Weakness are those organisational factors that proves disadvantageous for the
firms and makes them face unfavourable and negative consequences. Australian airlines have

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always been in news due to union issues and Qantas is no exception to it. After the cost
cutting strategy adopted by the company, many of its employees showed regression as their
wages were also reduced. Many of the workers even approached for Trade union strikes and
quitting the job completely (O’Connor, 2014). To fulfil the objectives behind serving
customers through low pricing strategy, the firm faces tremendous pressure while operating
international flights along with realising less profits than its competitors (O'Sullivan, 2016).
Opportunity: Opportunity are those favourable conditions that can bring various advantages
or diving force to perform an activity in the firm and hence proves to be a positive factor. The
increase seen in globalisation of industries have opened various opportunities for Qantas also.
The company can introduce number of passenger flights in business and economy class to
cater the need of travelling purposes for both pleasure and businesses. Other than it, the
company can introduce new training and education classes for its employees to serve the
international passengers more efficiently (Qantas, 2018).
Threats: Threat are the situations which jeopardizes the performance of firms and hence are
referred to as unfavourable conditions. Increasing presence of competing national and
international airline companies like British Airways, Air France, Lufthansa and Virgin
Australia have made Qantas face tremendous competition recently. Moreover, the critical
fluctuation seen in oil prices constantly threats Qantas due to which the firm keeps altering
airline ticket prices. Increasing union strikes and workers resentment can damage firm’s long
achieved reputation considerably (O'Sullivan, 2016).
Summary
Two major issues that can be seen in Qantas is cost cutting strategies which impacts
workers motivation and other is managing competition from other international and national
brands that requires Qantas enable strategic changes within its internal management. This is

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because, many of the Qantas employees have gone for major strikes due to low salary
received that have made Qantas face much embarrassing situation globally (SBS News,
2015). The issue seen in managing competition have made the firm focus more upon cost
cutting that impacts overall profit margins of the firm along with making shareholders reduce
their net worth (Whyte & Lohmann , 2015). Both the identified issues require the firm adopt
a strategic change management framework to change its human resource strategy, especially
concerning performance and remuneration strategies. Second change that needs to be
administered in Qantas is financial management system so that cost cutting strategies are
adopted after making appropriate analysis of market competition and organisational
requirements.
Literature review
Change management can be defined as a process in which organisations renew itself
in terms of direction, structure, and resources to cope up with ever-changing needs of internal
and external business environment. In contemporary and dynamic business environment,
there is a great pressure among firms to be more competitive, adopt innovation and
technology along with revising business strategies to retain their sustainability. According to
Gwaka, Gidion, Mayianda , & Damaris (2016), "Stable states" are a mirage and recurrent,
disruptive change is becoming more and more familiar” (p. 1). Nowadays, organisations
thrive to align themselves with their business environment by proactively shaping their
businesses or by reacting to external factors. With economies, consumer preferences,
government interventions, technology, and competition changing very fast, it is not
questioned whether the firm needs to change or not, but what and how shall be changed is
more considerable question. Since many change management cases have recognised failures
in the past either due to ineffective framework adopted or due to other issues like employee’s
resistance towards change and stress, many change management experts prepare alternative

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plans to evaluate organisation requirements from the perspective of different change
management models (Calder, 2013).
In literature, there are several theories and frameworks that demonstrates change
management processes and what makes it succeed and thereby making it a topic full of
contradictions ( Gwaka, Gidion, Mayianda , & Damaris , 2016). However, as commented by
Kotter, change is an essential part in an organisation that keeps them evolving to win both,
present and future situations (A, 2017). After four years of study, Lewin concluded that to
succeed, a change program requires to pass through three critical stages: Unfreeze,
implementation of plan and Refreeze. Most of the change management frameworks
developed later followed Lewin’s model for change and created a different version with
different names. Another most famous model was developed by Kotter, famously known as
Kotter’s 8-step model that requires firms to go through eight phases and each phase needs to
be initiated in correct order (Sarayreh, Khudair, & Baraka, 2013).
ADKAR model was introduced later that implemented change in organisations after
focussing the principles of change that can provide organisations with effectiveness at an
individual level. The principles of ADKAR model can also be applied at larger communities
or to bring complete change in an organisation (Calder, 2013). Kubler’s Change curve is
widely used to define five stages of grief associated with change in firms and is regraded as
reliable strategy for most of the forms. This model gives a breakdown of how to access
people during the change phases in general and thus organisations can prepare when they
need to anticipate reactions made by their individuals. McKinsey is also perfect for
contemporary organisations as this model centres around seven most important elements that
are required to perform well during change process. Organisations can substantially refer
these elements to align their change strategies with change needs to ensure mutual

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reinforcement is maintained between identified elements and quality performance (CIOPages,
2019).
Change management strategies for Qantas
Lewin’s change management model
Figure: (Lock, 2018)
Unfreeze: In this stage, Qantas will go through a preparatory phase that will help the
company in realising key issues within the firm and who will be affected by the transition
phase during the breakdown of present status-quo. Qantas even needs to accept that change is
imminent and thus inform its human resources and finance departments to ascertain change
requirements (Cummings, Bridgman, & Brown, 2016).
Change implementation: This is the phase during which Qantas management needs to
maintain effective communication with its employees to move forward in change process. In
this phase, usually people start showing resistance and may show stresses, but once cleared

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everyone will be given empowerment to act individually (Cummings, Bridgman, & Brown,
2016).
Refreeze: This phase will be initiated once the changed plan starts working positively in the
Qantas environment and the new strategies can then be implemented on permanent basis
throughout the organisation along with informing it to every associated person (Cummings,
Bridgman, & Brown, 2016).
Kubler Ross change curve
Figure: Kubler Ross Grief Cycle (Leybourne, 2016)
Denial: In this stage employees usually show resistance to admit change and since Qantas
employees are already suffering from wages related issue, they may show additional denial
for the change. Hence, in this stage, Qantas needs to create intense communication with its
employees and take slow move from transition to complete change.
Anger: In this stage, employees show relentlessness and fear towards new change program
and therefore, Qantas requires to accept their outrages. With support and additional dialogue,
the change managers can reduce anger within employees.

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Bargaining: This stage occurs when employees start accepting change and that intended
change might bring workplace effectiveness. It is essential that Qantas listens to the
employees’ feedback in this stage.
Depression: This stage can take place due to despaired mood seen towards new strategies and
change initiatives and thus employees may show slow performance. However, Qantas can
motivate their employees with rewards and appraisals so that depression stage is shifted in
quick manner.
Acceptance: Once the change is fully accepted and implemented, it requires celebration as
well as recognition in Qantas so that new changes are instilled positively (Leybourne, 2016).
Recommended strategy
Kotter’s 8-Step Change Model
Figure: Kotter’s 8-Step Change Model (Wheeler & Holmes, 2017)

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Creating a sense of urgency: In this stage, people of Qantas will be made aware of change
necessities by creating a bold and opportunistic statement. In this stage, the firm’s leader,
Alan Joyce will communicate and negotiate companies’ strategic directions with human
resource and finance management teams. To manage market competition, Qantas will need to
expand its market and customer segments in more countries that can potentially improve its
market share as well, as its profits (Wheeler & Holmes, 2017).
Build a guiding coalition: In this stage, Qantas need to enlist key players associated with
change initiatives like specialized team, and change agents that can be either selected from
internal staff or hired change agencies. This stage will require the firm’s management go
down to the operational base level to get support and advice from its employees. Through
counselling, re-skill and role modelling, employees may find themselves motivated since they
will be provided with support and instant recognition (Lunenburg, 2010).
Creating a strategic vision and initiatives: In this stage, Qantas will define their intended
change strategies and required initiatives to its employees. Here, Qantas must provide a
vision to implement effective human resources strategies that will provide each employee
with fair remuneration along with enabling required training and development programs to
keep the staff motivated. The CEO can also announce a raise in this stage after evaluating
financial performance along with providing employees with various opportunities to work
more for leading airline industry.
Communicating the vision: In this stage, firm’s top executives and senior management will
require conveying overall vision and new strategies of Qantas along with how they can
together achieve combined goals. This stage will also require establishing a timeline
according to which different communication channels will be stimulated. For example, initial

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few days may be spend with finance department to re-strategize company’s competitive
strategies and how they can ensure future financial goals. Next time scale can be allotted to
human resource department for enabling performance management and other effective
techniques for reducing employee turnover and regular union strikes.
Empowering the staff: Qantas needs to consider staff empowerment significantly after
recognising key issues in the firm that have arisen due to resentment seen among them. By
developing such strategy, employees will show effective improvement out of motivation
thereby helping Qantas management to move towards next step quickly.
Generating short term wins: After initiating the change strategies into performance, Qantas
needs to use Key Performance Indicators (KPI) so that employee’s performance can get
evaluated and rewards gets distributed accordingly. Moreover, if the share prices of the firm
are seen increased, it can be said that the firm is receiving a positive feedback from its
stakeholders.
Sustain acceleration: If the changed strategies start getting positive feedback and Qantas is
able to keep up with the momentum, the management of the firm must ensure that old
techniques are disregarded completely and new proposed systems gets implemented
effectively.
Institute change: According to Kotter, if the firm shows new positive behaviour, then the
entire change process seems to get accomplished. It is necessary for Qantas to build a good
and healthy workplace environment for its staff so that they combine their personal goals
with the new vision of the firm and help company in expanding competitively (Wheeler &
Holmes, 2017).

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Resources required
Since Qantas requires taking change initiates within its internal management, the key
resource required for implementing successful change is efficient change leader or change
agent that can be appointed internally or hired from some expert institute that deals with
change management planning and managing. Qantas also requires gathering sufficient
information regarding change management theories and frameworks which can be obtained
by scholarly article and books. Money is another significant resource that will be required to
make investment for initiating training and development programs along with distributing
rewards and short-term gains to the employees (Lunenburg, 2010). Time investment can also
be regarded as an important resource for the company as the entire change process can make
Qantas employees and management invest significant amount of their valuable time.
Conclusion
The above report has been prepared after analysing management issue in Qantas
Airlines due to which the firm faced significant loses along with various criticisms in past
few years. The internal and external analysis of the firm reveals that major issue in its
management is due to cost cutting strategies adopted by the firm to cope up with increased
market competition. However, this strategy proved negative for the firm and as a result most
of the employees went for union strikes out of anger and resentment due to reduced wages.
The reduction of costs even reflected degradation of service quality as compared to its
competitors that made many rivalry companies enter Australian market easily. After
identifying such issues, this report evaluated some possible strategies that can potentially
improve Qantas situation. After evaluating all the strategies and conducting a literature

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review on change management theories and frameworks, this report finds that Kotter’s 8-Step
model can prove most effective for the firm and thus recommends Qantas management to
implement Kotter’s 8-Steop change model for initiating change management in the firm to
ensure sustainable business operations in future.
References

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