Strategic Change Management and Sustainability: SAR Health Services

This case study examines SAR Health Services, a multinational corporation focused on diagnostic equipment, and its efforts to reduce its carbon footprint by a third by 2022. The company, which has a strong emphasis on sustainability through staff training and green initiatives, faces challenges related to organizational change, including a recent shift to a matrix structure and plans to relocate a production site. The analysis covers strategic management actions, people management issues arising from the changes, and factors to consider when building change capacity, such as balancing collaboration and privacy in an open-plan office and agreeing on a code of conduct. The report also addresses carbon footprint management, emphasizing the importance of setting up a green team, identifying wastes, and incorporating centralized recycling. Recommendations are provided to help SAR Health Services effectively implement its sustainability goals and manage the related organizational changes, with a focus on budget determination and change management strategies. The case study highlights the importance of adapting to industry trends and the need to address employee resistance to change to achieve long-term sustainability.

Running head: SUSTAINABILITY: CASE STUDY
SUSTAINABILITY: CASE STUDY
Name of the student
Name of the university
Author Note

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Table of Contents
Introduction.................................................................................................................................................2
Discussion....................................................................................................................................................2
Overview of the company.......................................................................................................................2
Strategic Management actions taken up.................................................................................................3
People Management Issues.....................................................................................................................7
Factors to consider building change capacity........................................................................................12
Recommendations.....................................................................................................................................13
Conclusion.................................................................................................................................................14

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Abstract: Change management is an integral part of any organization. However, change
management concept is debatable because according to certain researches carried out in the field
of management, organizational changes are often resisted by the employees due to factors such
as poor execution and lack of trust on job status and security. However, since change is
inevitable, every business has to ensure itself to be updated according to the latest trends in
industries and market. The paper tries to understand the reasons behind resistance to change in
organizations and how to cope with it systematically and efficiently.
Introduction
The particular paper is a management report of the case study of SAR Health Services.
The case study is based upon the company’s initiatives to reduce the carbon footprint by a third
by the year 2022. The respective company follows a plethora of sustainability practices to ensure
that they work in an eco friendly manner. However, they might be facing certain issues in
organizational culture that might enable them to think how they are going to carry out their
strategic operations to ensure sustainability is maintained.
Discussion
Overview of the company
The company named SAR Health Services is a part of Multinational Corporation based in
Switzerland. The company builds and supplies sophisticated and premium diagnostic equipment
across Europe and have recently entered new marks in Asia. SARHS has a relationship with its
customers that are based on high trust, high quality products and premium 24/7 service in
Europe. The company employs more than 3000 staff that consists of technicians, production,
office staff, managers and drivers. The specialty of the company is that it puts particular attention

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on environmental education through staff training and induction. The new staff of the company
receives a half day session on sustainability. Apart from multi departmental meetings based on
ecological practices within the company, the organization also runs an “internship” regarding
green initiatives. The company has been recognized for three consecutive years. The company
has recently shifted from a functional to a matrix organizational structure, which has made the
organizational dynamics complicated and complex instead of making it gullible and simple.
However, with the increasing budget for the production of premium and sophisticated health
equipments, the company has planned to consolidate the production site A and has planned to
redesign the production site B in a model of “open plan” office that is expected to reduce the
energy costs. However, the company also has a greater strategic business objective, which is
reduction of carbon footprint by third by the year 2022 along with certain green initiatives to
reduce and save cost.
Strategic Management actions taken up
In the area of management, “strategic management” involves the formulation and
implementation of major goals and initiatives taken by the uppermost management personnel of
an organization. Strategic management is based on consideration of resources and also a
thorough assessment of the internal and external environment in which the organization operates.
Strategic management gives an overall direction to an enterprise and involves specification of
organization’s objectives, policies and plans so that they might achieve the objectives, and then,
allocating resources to implement the plans. Strategic management is an integral part of any
business and needs to be practiced perpetually so that the organizations might increase their
productivity and profitability. The company SAR Health Services has taken up certain strategic
management practices that would ensure that their strategic goal, which is reduction of carbon

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footprint and energy costs within the year 2022. The respective strategy is important for the
organization as it would help the company to gain cost leadership and cost advantage. Cost
leadership can be defined as establishment of a competitive advantage by having the lowest cost
of operation in the industry. Cost leadership is based on the factors such as efficiency, size,
scope, limitations and learning curve of a company. An eminent cost leadership strategy seeks to
harness the factors such as scale of production, production of high standards of products and
usage of advanced technology. However, in order to carry out the respective strategy, the
company needs to understand and acknowledge certain factors before making any concrete
decisions. To make an “open plan” office in order to reduce energy and carbon wastage, the
company has to consider certain factors which are provided hereafter.
1. Balancing collaboration with privacy: An open plan office can be defined as an office
floor plan that eliminates most private offices and meeting spaces. There may be a private
conference room so that private meetings can be conducted, however, most of the day-to-
day business operates with everyone working in the same big room where the
departments are divided but also collaborated. However, such openness in the office
premises brings in certain sensitive issues such as privacy (Haynes, Suckley and
Nunnington 2017). The company needs to understand that while making an open plan
office layout, the privacy of the employees should be collaborated together in a way that
no one feels that there is a breach of privacy in their work life. To survive and thrive in an
open office space, certain practices need to be incorporated (Budaiova, Vilcekova and
Kapalo 2014).
a. Agreeing a code of conduct: According to the architectural anatomy of an office, office
etiquettes are changed or modified. An open office space layout encourages free mingling

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among the employees. However, a decorum has to be maintained within an office as
office is a professional area where individuals are expected to be solemn and reserved.
Therefore, employees should be given understanding of code of conduct that can be
followed in an atmosphere of an open office space layout (Shafaghat et al. 2015).
One of the main strategic decisions that the company has taken in order to have a cost
leadership and cost advantage is that of decreasing the carbon footprint of the company by the
year 2022. Carbon footprint can be defined as the amount of carbon dioxide released into the
atmosphere as a result of the activities of an individual, community or an organization. Carbon
footprint is important because it determines the safety issues of the environment by measuring
the magnitude of the greenhouse effect which is caused by the carbon dioxide released in the
atmosphere as gas. By measuring the amount of carbon footprint, the companies would be able
to understand how they are behaving in terms of sustainability and what their stance in the area
of environmentalism is. Carbon footprint management is an important tool taken up by
organizations that also enhances the reputation and goodwill of the organization in the global
welfare platform. Not only does it helps the organizations reduce waste, but also provides a
special edge to the name and fame of the organization (Benedek, jay Liang and Wenegrat,
Accenture Global Services Ltd, 2014). Environmentalism is a new and cosmopolitan
phenomenon that helps organizations achieve better growth and strengthen stakeholder relations.
It also provides a platform for innovation. However, the company has to take into account certain
factors while keeping carbon footprint in check which are provided hereafter.

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1. Setting up of green team: An office recycling program is suggested to include a specific
team that would exclusively work for the recycling purposes within the office and
production unit premises. Recruiting members from different departments into the green
team who has special knowledge in the field of environmentalism, recycling, waste
management and sustainability can be carried out by the company. A well- equipped
team of waste management will make every best possible ways to handle wastes
effectively and aptly for the company. Capable team members would make the team
productive and useful at the same time. Therefore, the company might think of recruiting
for green team separately and solemnly.
2. Identification and determination of wastes: Wastes can be of different types based on
their origins, composition and ability to disintegrate. Wastes of different types are organic
and inorganic wastes, hazardous and non hazardous wastes, bio-degradable and non-
biodegradable wastes. The company should make special panel of experts in waste
management who would relentlessly work hard to identify, classify, segregate and then
complete the process of recycling and waste management in the company. After proper
identification and segregation of wastes, the company can carry out the process of waste
management effectively.
3. Incorporation of centralized recycling: Centralized recycling system is an optimal way to
reduce custodial stops and put power of recycling to the individual users. A well- labeled
bin at every department is the way by which centralized recycling is carried out.
Centralized recycling can be incorporated by the company by installing small desk-side
recycle bin and Mini Bin. The employees might take the recycling part significantly and
hold themselves accountable for the waste they generate. As the company already has a

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Matrix organizational structure, which means that the company does not follow a
hierarchy form of culture blatantly, rather, each and every employee possess a dual
reporting relationship, preferably to a functional manager and a product manager, the
system of the company is already complex. Such complex organizational structure has
given rise to complicated culture in the workplace. To avoid any kind of confusion,
centralized recycling would immensely help. With such strategies, the waste management
activity can be carried out effectively with less time and digression.
4. Right kind of budget determination for relocation: The relocation strategy that the
company has to carry out needs proper implementation and execution. A proper
implementation and execution of a plan is fueled by proper budget. The company should
make a separate budget for the relocation and green initiatives before executing the tasks
successfully. As the company has an intention to have cost effectiveness and cost
leadership in the market due to excessive economic pressure it might be facing, it has to
think about the monetary expenses. The budget can be carried out by following certain
basic steps, such as calculation of expenses, determining income that might be generated
through the relocation process, documenting every minute details of the components that
might be included or excluded from the budget, setting savings and debt payoff
objectives and standards, keeping a record on spending and track progress and being
prompt in case of any emergency that can happen while formulating the budget. The most
important factor is to keep a “realistic” budget goal that would be able to meet the
strategies effectively, with optimum usage and harness of resources (Sheopuri and
Sheopuri 2015).

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People Management Issues
Change Management: Scope and Importance
Change management in an organization can be defined as a collective term for all
approaches in order to prepare, support and help the individuals, teams, organizations in making
any kind of organizational change. The most common drivers of change in an organization
include technological evolution, organizational restructure, process reviews, crisis, consumer
habit modifications, new business entrants and mergers. Change management is triggered by the
needs and preferences of the employees, markets, consumers and nation where the company
might be operating (its cultural preferences, norms, statutes and legalities) (Alvesson and
Sveningsson 2015). The company SAR Health Services has already incorporated change in
organizational structure. The company has incorporated matrix organizational structure and
dethroned the conventional hierarchy system. The Matrix organizational structure can be defined
as an organizational structure in which certain employees report to more than one supervisor or
leader, sometimes referred to solid line or dotted line reporting (Guadalupe and Wulf 2014).
There have already been incidents of commotion and discomfort among the employees and staff
due to such change in organizational structure. Apart from that, the company has also taken a
firm decision of relocation of its production unit which has subsequently angered the
production unit workers who have least faith on proper implementation and effectiveness of the
respective change. The reasons behind such discomfort can be assumed as to the lack of
precision, confusion and complications within the workplace culture that is affecting the
company’s capacity to work efficiently. Some of the problems that matrix organizations face are
misaligned goals because confusion in a company occurs when people working in a same project
have different goals. When the employees work at cross purposes, such incidents are bound to

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occur. Interpersonal conflicts are the most common problems that a company faces with matrix
organizational structure. Apart from misaligned goals, the other issues include conflict loyalties,
where people focus more on power and control and lose the insight and attention towards tasks,
confusion about roles and responsibilities and delayed decisions.
People management issues
People management can be termed as the process of training, motivating and directing
employees in order to optimize the workplace activity and promote professional growth.
Workplace leaders, for instance, the managers and team leaders see to it that the people
(employees) are managed properly and the employee performance is boosted time and again to
keep the work flow of the company intact and efficient. However, There have already been
incidents of commotion and discomfort among the employees and staff due to the change in
organizational structure from conventional to marix form of structure. The reasons behind such
discomfort can be assumed as to the lack of precision, confusion and complications within the
workplace culture that is affecting the company’s capacity to work efficiently. Some of the
problems that matrix organizations face are provided hereafter.
Misaligned goals: Misaligned goals are biggest drawbacks of matrix organization because
confusion in a company occurs when people working in a same project have different goals.
When the employees work at cross purposes, such incidents are bound to occur. Interpersonal
conflicts are the most common problems that a company faces with matrix organizational
structure. Conflict of goals is the reasons for lack of shared vision for the larger picture and there
will always be a hunger for power relations among each other. It can be assumed that the

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respective company is facing through such misaligned goals issues which has the potential to
hamper the productivity and work force of the company to a certain extent.
Conflicting loyalties: Conflicting loyalties arise in an organization where people focus more on
power and control and lose the insight and attention towards tasks, confusion about roles and
responsibilities and delayed decisions. When the employees and individuals working in an
organization are oriented among the reporting lines rather than around the work, they don’t view
themselves as a part of the team or group where they are working. Their attention is turned into a
wrong direction. When the attention shifts from tasks to power relations, confusion starts arising
and the productivity of the team and the organization as a whole reduces to a considerable
magnitude. The conflicting loyalties result in stained relationships between the co- workers that
creates toxic atmosphere in the workplace. It can be assumed that the respective company is
facing through such issues of conflicting loyalties which has the potential to hamper the
productivity and work force of the company to a certain extent.
Confusion about roles and responsibilities: In a matrix kind of organizational structure, most of
the employees still don’t know or rather, don’t understand whom to contact for receiving
information or conveying information, advice, commands. Such actions result in a complete
failure in transmission of important information within the organization. The employees of the
organizations get frustrated when they observe that their works or tasks get unassigned or remain
incomplete or unimplemented as a result of lack of communication and efforts of collaboration.
It can be assumed that the respective company SAR Health Services might be facing through
such issues of confusion of roles and responsibilities which has the potential to hamper the
productivity and work force of the company to a certain extent. It can be deduced as it is
observed that the employees have not welcomed the changes within the company. Though they

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have not resisted the change completely, they have also not supported it and they have a sense of
discomfort regarding the change.
Delayed decisions: In a complex environment where several teams have been working on
different aspects of a project, it can be very hazy or unclear about the facts such as who has the
complete and ultimate authority over decisions among the policy and decision makers. It can be
quite challenging and difficult for organizations where the managers are not used to in sharing
the decision making and its components with the greater population of the company.
Responsibility and accountability is not clear in the matrix type of organizational structure. It has
been observed that there have been rumors spreading regarding the new decision of re-location
and “home based work” for the sales personnel, according to the case study. However, the
implementation of such change can be very tedious for the company. It has the potential to
hamper the productivity and work force of the company to a certain extent. It can be deduced as
it is observed that the employees have not welcomed the changes within the company. Though
they have not resisted the change completely, they have also not supported it and they have a
sense of discomfort regarding the change (Guadalupe and Wulf 2014).
Why did employees resist change?
The employees of the respective company SAR Health Services have exhibited a subtle
resistance against the organizational changes that have been brought about by the company
throughout the recent years. First of all, the organization changed its hierarchal form of structure
to matrix form of structure. By going through the case study it can be deduced as it is observed
that the employees have not welcomed the respective change within the company. Though they

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have not resisted the change completely, they have also not supported it and they have a sense of
discomfort regarding the change. Another strategic change of relocation of the company’s
production unit has ignited anger among the production unit workers against the company. After
a thorough analysis of the whole situation, it has been deduced that employees resist change in
an organization in fear and contempt of “bad and ineffective execution” of the changes.
Another important reason for resisting change within the organization is “fear of losing status in
job or job security” (Bateh, Castaneda and Farah 2013). The respective company SAR Health
Services have been planning to close its production unit A, which means that hundreds of
workers working in the production unit will be jobless and that might hamper their career and
economic stability. Such issues are the worst sides of capitalism and it needs to be addressed
(Cameron and Green 2019). The respective reasons are significant for the causes of resistance
against change.
Factors to consider building change capacity
Factors that are needed to consider while building change capacity by the respective company
SAR Health Services is enumerated and provided hereafter.
1. Having a clear vision: Teams within a company is more likely to embrace change when
they are aware of what is happening and where. A clear vision of the company’s goals
and mission should be communicated to the desired employees so that they are aware of
the situation through which the company is going and embrace the change gracefully and
solemnly. A crystal clear communication regarding the vision and immediate (as well as

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long term) goals of the company, when transmitted, facilitates in flexibility among the
employees and change management becomes easier.
2. Setting short term goals: It would be much easier to focus on goals and tasks that would
be realistic and achievable while implementing change management in the organization.
Setting short term goals for the areas that need change can be practiced by the respective
company in order to accelerate the incorporation of change to a certain extent. However,
the change management experts also have to remember that setting short term goals also
mean proper allocation and optimum usage of resources wherever necessary.
3. Getting opinion of the employees: Before beginning implementing and executing any
kind of change in an organization, the managers should make it a point to listen and know
the opinion of the employees. By listening to the opinion of the employees, the managers
who are responsible for the change management would be able to understand the psyche
of the employees and what is their stance regarding the change, that whether they are
hesitant, feeling discomfort or ready to accept the changes or not. Such opinions can be
collected by the company through research methodologies such as questionnaires and
personal interviews.
4. Importance of feedback: Immediate and personal feedback can prove to be immensely
motivating for the employees in terms of their job and culture that they exhibit in the
workplace. With a real time feedback, the respective company would be able to build
their confidence and shape their expectations appropriately. It is difficult for making any
kind of organizational change a success. However, through efficient feedback, the
company can win the psychological support of the employees, no matter how trivial or

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significant they are for the organization. Therefore, a separate feedback team might be
built by the company for the particular purpose (Simoes and Esposito 2014).
Recommendations
The company SAR Health Services needs certain recommendations regarding how it might
effectively bring about the organizational changes. The recommendations for the company have
been provided hereafter.
1. Leveraging technology: The company can utilize technologies at its best in order to bring
in the best organizational change practices. Technology can bring success to the
organization with its proper implementation. Any kind of change within an organization
might be fueled by technological changes and can accelerate the practices of change.
2. Creating new communication channels: Teams can be inquisitive regarding the updates
of the changes that have been incorporated. The employees, if kept regularly updated, can
bring success to the change management practices within the organization.
3. Feedback: Immediate and personal feedback can prove to be immensely motivating for
the employees in terms of their job and culture that they exhibit in the workplace. With a
real time feedback, the respective company would be able to build their confidence and
shape their expectations appropriately. The company might set up a separate feedback
and review board as a sub department within the department of organizational change
management. The feedback and review panel should include eminent analysts and
researchers who would work relentlessly to identify, realize, understand and evaluate the
effectiveness of change that the company has brought through change management
practices.

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Conclusion
The particular paper concludes to be a management report of the case study of SAR
Health Services. The case study has been based upon the company’s initiatives to reduce the
carbon footprint by a third by the year 2022. The respective company follows a plethora of
sustainability practices to ensure that they work in an eco friendly manner. However, they might
be facing certain issues in organizational culture that might enable them to think how they are
going to carry out their strategic operations to ensure sustainability is maintained. The particular
paper has concluded itself by going into details about the change management that the company
has been incorporating, the estimated effects and recommendations about how the changes can
be made for effective.
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