Analysis of Change Management Models and Interventions at Sainsbury's

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Planning Change in an Organization
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1. Executive Summary
Changes cannot be avoided, as it is a part of nature. Changes affect not only the lives of
individual but operation and administration of organizations as well. It is necessary that
changes are managed effectively so that they can be implemented in the operations and
systems of firms effectively. In this report, the need for changes has been explained
concerning Sainsbury and recommendations have been provided for better change
management so that its efficiency can be improved. The change that needs to be implemented
concerning the latest trends in the retail industry has been described in the report.
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Table of Contents
2. Introduction of the Chosen Organization and background to change....................................4
3. Explain any three change management models and evaluate the relevance of these models
to your chosen organization in the current economic conditions...............................................5
4. Explain any two strategic intervention techniques and assess the value of using them in
your chosen organization...........................................................................................................6
5. Examine the need for change in the organization. Assess the factors that drive the need for
strategic change and assess the resource implications for not responding to these changes.....8
6. Develop appropriate systems to involve the stakeholders of the chosen organization in
planning change and evaluate these systems. Develop a change management strategy with the
stakeholders and devise strategies to overcome resistance......................................................10
7. Develop atleast two change models that would address the challenges faced by the chosen
organization. Devise appropriate measures to implement these models and monitor the
implementation and progress...................................................................................................12
8. Conclusions and recommendations......................................................................................15
Reference List..........................................................................................................................16
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2. Introduction of the Chosen Organization and background to change
Organizational change is inevitable because the world in changing, therefore, it is required
that organizations, in order to cope up with the latest trends, plan change and implement it in
the firm. Change is necessary because it enhances the sustainability of the organization and
aids to engage its employees (Georgalis et al., 2015). Sainsbury is one of the largest retail
shops in the world and ranks second in terms of the chain of its supermarket in the United
Kingdom (Sainsburys.co.uk, 2019). The organization has its presence in more than 1400
locations and is headquartered in London, United Kingdom. It offers a wide range of products
to its customers like groceries, clothes, home and garden accessories, electronic and electrical
items along with financial services.
However, the retail industry has always been a subject to change as the tastes, requirement
and demands of customers have been changing continuously. Especially with the advent of
technological developments, the way of operation of retail organizations has changed
completely. The introduction of Artificial Intelligence (AI), shorter shipping time,
personalised retail services, voice search, creative content of media and checkout-free
stores are the latest trends in retail industry that has stimulated retail organizations to embrace
the changes and implement it in their operation such that customer service can be enhanced
(TweakYourBiz.com, 2018). It is necessary that Sainsbury incorporate these changes and
advancements in its operation so that it does not lag behind other organizations in the market.
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3. Explain any three change management models and evaluate the relevance of these
models to your chosen organization in the current economic conditions
The three change management models that can be applied to Sainsbury such that the
modifications are effectively applied or implemented in its operation such that the services it
offers to its customers are enhanced are Lewin’s Change Management Model, McKinsey 7-
SModel and Kotter’s 8 Step Change Model. The application of the above-stated models in
Sainsbury has been explained below:
 Lewin’s Change Management Model: Lewin’s Change Management Model involves
three stages or levels of modification namely unfreeze, transition and refreeze. Unfreeze
is the first stage of change in which people try to restrain the implementation of changes.
Therefore, in order to deal with this unfreeze is initiated to motivate people to accept the
changes (Cummings et al., 2016). The transition is the second stage after the change has
been instigated and it needs some time for the process to stabilise. Refreeze is the last
stage of the model that signifies the period when the changes have been accepted as well
as implemented. The application of this model in Sainsbury will aid its management to
implement the changes that are necessary step by step as the model is easy; however it is
a time taking process.
 McKinsey 7-S Model: McKinsey 7-S Model involves seven factors that operate such that
changes can be implemented in an organization. The seven factors of McKinsey 7-
SModel have shared values, staff, style, structure, strategy and system. This model
emphasizes each of these factors so that new strategies can be implemented in the
organization and recognises the areas that might be a subject to modification in future.
Shared values monitor the conduct of employees; style signifies the way of management
of organizations, staffs signify the training and motivation the employees need and the
number of staffs the organization needs (Mitchell et al., 2015). Skills signify the
performance of staffs in the organization while the system signifies the procedures the
organizations follow and the way decisions are taken. The structure is the way divisions
of business are managed and organised. Every factor as stated in the model is subject to
change and provides proper supervision for changes in an organization and includes every
component of the firm.
 Kotter’s 8 Step Change Model: Kotter’s 8 Step Change Model has eight steps of
implementation of modification or changes. The eight steps that are a part of this model
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are the need to change, team to implement the changes, creation of vision such that
changes can be implemented, make staffs understand the requirement of change,
empower the employees, create goals for short term, be reluctant and make the
modifications stable (Small et al., 2016). This model is easy and ensures that the changes
are properly implemented in an organization. However, any steps of the model cannot be
skipped and is a time taking process.
Relevance of models of strategic change in Sainsbury
As far as Sainsbury is concerned, it can adopt any of the above-explained models of change
such that modifications are properly implemented in its operation. If Sainsbury adopts
Lewin’s Change Management Model, then it will be easy for its management as the model
just has three steps, and the process is easy. In case Sainsbury adopts McKinsey 7-S model, it
can prove to be effective Sainsbury to implement changes as it involves every component of
the organization that will be influenced by modifications. However, this model is complex,
and the differences that exist among the components are not taken into account.
Moreover, it has been found that most organizations that adopted this model have faced
failures as each factor of this model is related to another. If Kotter’s 8 Step Change Model is
considered for Sainsbury, then it can be seen that the process is easy and the process of
transition in this model is easy if compared to any other model. However, Sainsbury cannot
skip any of its steps and the process is time taking. Therefore, Sainsbury must undertake
Lewin’s Change Management Model in order to incorporate changes as the process is easy
and involves only three steps as compared with Kotter’s 8 Step Change Model that involves 8
steps as if other aspects are considered then both models is time taking thus choosing
Lewin’s Change Management Model will be better for Sainsbury.
4. Explain any two strategic intervention techniques and assess the value of using them
in your chosen organization.
It is necessary for management of organizations to manage changes effectively so that
modifications can be implemented successfully without causing in trouble. Effective change
management ensures that various operational activities of an organization are carried out
smoothly. Several techniques of intervention are used by organizations in order to manage
changes or modifications properly. The intervention techniques that can be used in order to
manage changes in an organization have been explained below:
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 Techno-structural Interventions: This technique of strategic intervention is used so that
the performance of an organization can be improved by laying emphasis on structure as
well as the technology of organizations. This technique of intervention includes
management of knowledge, the process of business, job design, reallocation of tasks and
others. The main focus of this technique is competition on a global level, changes in
technology and environment and flexible design of jobs. The examples of techno-
structural interventions are downsizing, total quality management, process reengineering,
the involvement of employees, the design of work and the quality of programs related to
work-life (Zabel et al., 2015).
Sainsbury can adopt this technique of strategic intervention as by using this technique it can
enhance its performance and productivity. Job design that is a part of this technique will aid
Sainsbury to increase productivity as well as the fulfilment of its employees. It will aid
Sainsbury to support the modifications for setting goals. It will aid the management to create
a better work environment and incorporate reward systems for the employees in support of
changes or modifications (Raza et al., 2018). It will increase the level of practices performed
for management of performances. The management of organizations for job design can use
various approaches like engineering approach, motivational approach and socio-technical
system approach.
The engineering approach is a scientific approach that focuses on technical aspects of the job
and evaluates the tasks done by the staffs such that maximum yield can be produced by using
minimum input. However, the motivational approach emphasizes on the psychology of
workers and focuses on enhancing the performance of employees by providing them with
more opportunities for growth, reviewing their performance and giving them responsibilities.
Socio-technical approaches both on the technicality of job and psychology of people or staffs.
This approach focuses on employee satisfaction along with their performance, efficiency and
productivity (Gathungu and Corvera, 2015). Sainsbury can adopt techno-structural
intervention technique as it will aid to enhance its productivity by positively influencing its
employees and motivating them to perform better and evaluating the technicality of their job.
 Management and leadership development techniques: This technique is used to make
sure that the performance of organizations is improved by laying emphasis on leadership
and management practices. The main purpose of this technique is to enhance the
effectiveness of informal as well as formal leaders by organising training and
development programs, 360-degree feedbacks and others. It is of utmost importance that
leaders and managers of an organization are effective because they are the one who
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guides the employees an organization and implement proper measures such that
performance of firm can be improved (Reddy and Srinivasan, 2015). It is necessary that
the leaders have apt skills in order to lead the employees in the right direction such that an
organization can achieve its goals and objectives.
Development techniques of management, as well as leadership, will aid Sainsbury to manage
any kind of changes in the organization properly and make sure that the employees are
putting their efforts in the right direction such that Sainsbury can achieve its goals and
objectives properly. Proper techniques of development will assist the leaders and the
managers in developing adequate skills such that the performance of employees or staffs of
Sainsbury are enhanced that in turn will aid to enhance the performance of the organization
and increase its profitability as well as productivity (DuBois et al., 2015). This will assist in
enhancing the reputation of Sainsbury in market and gaining a competitive advantage over
other organizations in the industry.
5. Examine the need for change in the organization. Assess the factors that drive the
need for strategic change and assess the resource implications for not responding to
these changes.
Need for change:
The trends in the retail industry are continuously changing as the demands, tastes and
preferences of customers are changing.
Moreover, the latest developments in technology have made it necessary for retail
organizations to adopt the changes and incorporate it in their systems so that they are able to
cope up with the developments that are taking place in the market such that they do not lag
behind other organizations in the market. Changes are necessary in an organization as the
performance gaps need to be bridged and to deal with the financial crisis. Moreover, the
technological advancements need to be adopted such that more economical procedures can be
adopted. Opportunities need to be identified; therefore it is necessary that organizations adopt
changes or implement them successfully in their management and operation.
Factors that drive strategic change:
In the retail industry, the advent of AI has resulted in the organizations to improve their
efficiency and has aided to estimate the needs of customers. Moreover, it is required that the
speed of shipping is further increased so that the products which customers order online are
delivered to them in less time. Nowadays, it has also become a trend for retail organizations
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to provide personalised offers to its customers in order to retain them and win their trust.
Optimisation through a voice search engine is another latest trend that has been adopted by
Amazon and Google to assist its customers in their pursuit or quest for goods. Checkout-free
stores are another technique that has been adopted by Amazon that has decreased its
expenditure on checkout services by human beings (TweakYourBiz.com, 2018). Therefore, it
is required that Sainsbury adopts these latest trends in its operations so that it is able to cope
up with the changes and does not lag behind its competitors.
Presently Sainsbury is working on its systems and operations such that it can improve its
performance. Sainsbury has announced its collaboration with Asda so that it can improve its
efficiency. It has taken several steps in order to simplify its structures as well as its
operations. It has decided to invest in technology so that it can improve its efficiency and
provide a better quality of services to its customers (About.sainsburys.co.uk, 2019). The main
strategy that Sainsbury is following is that it can know the needs of customers better, offer its
products at a reasonable rate and have such values that can make it different from its
competitors. The main focus of Sainsbury is to increase its productivity or yield. Sainsbury
has emphasized values and is well-known for the better quality of products; however the
prices at which it offers its products are high. Asda has repositioned its value by offering its
products at a lower price.
Figure 1: Position of Sainsbury in the market as compared to Asda
(Source: Marketingweek.com, 2018)
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Resource implications for not responding to these changes:
The merger of Sainsbury and Asda will aid both the organization to compensate for each
other weaknesses and improve their operations as well as productivity. However, if Sainsbury
is not able to adopt with the further changes that are required like faster shipping speed, adopt
AI technologies and include it in its operation, then the results may be adverse in future.
Sainsbury has targeted that it saves cost amounting £500 million till 2020. However, in case
it does not adopt technologies like voice search engine then in future its sales might be
affected.
If Sainsbury fails to adopt free-checkout services to its customers, then its performance might
be greatly hampered as it is being forecasted that free-checkout stores are the future of retail.
It aids to save cost as it does not involve humans for checkout services. Therefore, if
Sainsbury does not adopt it, then its operational cost will remain high that in turn will
decrease its profit margin. Thus, it is mandatory that Sainsbury is able to adopt these changes
properly and implement it in its operation to stand tough in the market otherwise its sales and
profit margin will be greatly hampered thereby affecting its position, value and reputation in
the market.
6. Develop appropriate systems to involve the stakeholders of the chosen organization in
planning change and evaluate these systems. Develop a change management strategy
with the stakeholders and devise strategies to overcome resistance.
Appropriate systems to involve the stakeholders:
In order to develop systems for planning change, it is necessary first to define the change
and its necessity. It is then required to devise appropriate strategies and train the employees
so that changes can be implemented in the organization. The status of change has to be
communicated throughout the process of implementing change, and the progress has to be
tracked and monitored. The stakeholders of Sainsbury are its board of directors, managers,
employees and customers. To implement changes in the organization, it is necessary that
Sainsbury invests on market research, find out the interest, and needs of customers. As soon
as the needs are figured out, a proper strategy has to be developed and accordingly the
employees have to be trained so that they are capable of coming up with the modifications.
However, before that, it is necessary that the need and urgency of change are properly
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communicated to the staffs of Sainsbury so that they are able to fathom is importance and
cooperate with management and its leaders.
The methods that can be used by Sainsbury in order to involve its stakeholders especially
employees, it can use telling, selling, testing, consulting and co-creating. It can inform its
employees through mails, press releases (telling), leaflets, brochures, exhibitions and training
(selling) and simulations, interviews and pilot interventions (testing). It can also use tools like
reply forms, workshops, advisory boards, and intranet forums (consulting) along with
planning, dialogue, experimenting and analysis of scenario (co-creating) (Dudovskiy, 2012).
Developing a Change management strategy with stakeholders:
Change management strategy requires identification of the areas that has to be improved.
 Leveraging Strategies: This plan focuses on people who are ready to adopt the changes
such that it involves the presentation of the business case to the stakeholders, devise
strategies for modifications that in turn require identification of resources and adequate
funding then it requires proper communication of the need for change to the employees
along with its strategy.
 Containment Strategies: This strategy focuses on people who are skilled but resist
changes. The next step is to monitor as well as manage the resistance from the staffs and
identify risks of budgeting and finally implementing the change however it requires
continuous monitoring (Changedesignsportal.worldsecuresystems.com, 2019).
 Engagement Strategies: This strategy focuses on stakeholders who influence the
modifications that have to be undertaken by the organizations.
 Outplacement Strategies: This strategy focuses on people who are powerful and how
their commitment for modifications.
It is necessary that Sainsbury first determine the need for changes and figure out its impact on
the organization. Then it needs to develop a proper strategy form implanting the change and
define the order in which it will happen. The goals and objectives have to be defined properly
and every aspect of change as to be communicated properly to its employees by utilising the
systems of change management developed above.
Evaluation of the systems used to involve stakeholders in the planning of change:
The systems that have been used in order to manage change in Sainsbury are effective
because it involves every stakeholder of the organization. The system that has been
developed involves vigorous market research so that the needs and desires of customers can
be identified in order to address them properly (Kerzner and Kerzner, 2017). Moreover, it
involves devising proper plans and communicating it the employees of the organization
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through telling, selling, testing, consulting and co-creating so that the situation can be keenly
analysed and proper suggestions can be taken from the employees by clearly communicating
the aspects of change to them.
Strategy for managing resistance to change
The strategies for managing change have been explained below:
 Assessment: In order to manage the changes that have to be implemented properly and
effectively manage resistance, it is necessary that the management of Sainsbury assess its
history and act as per its previous records of dealing with modifications.
 Education and communication: It is required that a proper vision is developed for the
organization so that its goals and objectives can be defined. The resources, as well as
activities for managing change, have to be integrated into the strategies of the business. It
is necessary that the commitment of leaders is leveraged and gain support from the
stakeholders (Basware.com, 2019).
 Facilitation and support: It is also required that the employees are well trained to deal
with the changes and refine the structure as well as the management systems about the
performance of the organization.
 Participation: It is required that the employees involve in the process of devising
strategies for managing change.
 Agreement and negotiation: It is necessary that Sainsbury frames agreement and
negotiate with its management so that it is able manage change effectively.
7. Develop atleast two change models that would address the challenges faced by the
chosen organization. Devise appropriate measures to implement these models and
monitor the implementation and progress.
Sainsbury is attempting to implement change in the organization, for improving its services.
Developing and using change management model. In this context, the Lewin’s model of
change and Kotters’ 8 step model would be utilized here.
Change model 1: Lewin’s model of change in Sainsbury
1. Unfreezing – In this stage, the change management teams would prepare the environment
of change. It would be done by creating awareness and information sharing with the
employees and other stakeholders. Figuring out the need for change, the managers would
create awareness and the sense of urgency in the organizational environment (Hayes, 2018).
It would be done through arranging conferences, focused group discussion and campaigns for
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