A Comprehensive Report on Strategic Change at SGS Lanka Ltd

This report provides a comprehensive analysis of strategic change management within SGS Lanka Ltd, a company involved in export and import services. It explores the need for change in the organization, focusing on improving services and customer satisfaction in a competitive market. The report delves into the relevance of change, highlighting the role of managers in implementing modifications and adapting to market trends. It examines various change management models, including the McKinsey 7-S framework, Lewin's change management model, ADKAR model, and Bridges' transition model, assessing their relevance to SGS Lanka Ltd's current situation. The report includes practical research findings on employee and consumer perceptions of change, along with future approaches for effective implementation. Recommendations are provided to help SGS Lanka Ltd navigate internal and external forces, improve its working style, and maintain a competitive edge in the industry.

Managing and Leading
Strategic Change

Table of Contents
1.0 ABSTRACT...............................................................................................................................1
1.1 INTRODUCTION ....................................................................................................................1
1.2 EXECUTIVE SUMMARY.......................................................................................................1
1.3 PRACTICAL RESEARCH ......................................................................................................1
1.4 PRACTICAL RESEARCH FINDINGS....................................................................................1
1.5 FUTURE APPROACH..............................................................................................................1
2.0 MODELS OF STRATEGIC CHANGE....................................................................................1
2.1 RELEVANCE OF MODEL TO CURRENT SITUATION WITHIN ORGANISATION......2
McKinsey 7-S framework...........................................................................................................2
Lewin's change management model............................................................................................4
ADKAR model...........................................................................................................................5
Bridges' transition model.............................................................................................................6
3.0 RECOMMENDATIONS...........................................................................................................7
3.1 CONCLUSION..........................................................................................................................8
BIBLIOGRAPHY............................................................................................................................9
APPENDIX A................................................................................................................................10
APPENDIX B................................................................................................................................11
APPENDIX C................................................................................................................................16
APPENDIX D................................................................................................................................16
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1.0 ABSTRACT
Changes are one of the important component which helps to maintain same brand image
in industry. In this project SGS Lanka Ltd deals in export import services. They are thinking to
change their working style so this helps to improve services and improve customer satisfaction.
These days change is key of success of organisation. Managers of organisations plays vital role
in accepting and implementing changes. There are different techniques which helps to deals with
changes and actions has to be according to market trends. In this report techniques is used in
order to deal with internal as well as external forces. This report tells about relevance of change.
Managers of SGS Lanka Ltd changed their working technology and provide discounts to
customers in order to increase sales.
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1.1 INTRODUCTION
Managing and leading strategic change includes all process and activities which are
involved in making changes in the company (Aronoff and Ward, 2016). Through this firm can
transform it and can make modification in their process and activities. Hence, organization can
earn more revenues and can maintain unique and distinct position in the market. It also helps the
firm to expand their operations and activities in minimum time. Assignment describes about the
SGS Lanka Ltd. is a company which provide services related to exporters, importers,
manufacturers, traders, agents, retailers, government and institutions. It was established in 1995
in U.K. Report explains about the critically analyse and evaluate nature of relationships between
organization environment and forces of change and monitor the key issues which arises from
management and leadership of change. It also describes the appraisal of management and
leadership responses in relation to forces and emerging organization dynamics. It will also
discuses about structure and communicate ideas and arguments.
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1.2 EXECUTIVE SUMMARY
This report is based on changes taking place in commercial operations in orde to get
positive results. In order to implement modifications in effective way, managers has to adopt
changes frequently and take actions in order to coop- up with it. In this report there is discussion
about SGS Lanka Ltd which deals in providing import, export services to institutes, banking
organisations, etc. They are thinking to up grade their working style and pricing strategies so
they can compete in industry. In this report there is discussion about SWOT, PESTLE and
theories of change management. SGS Lanka Ltd are altering their technology and update their
pricing strategies in order to give discounts to clients.
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1.3 PRACTICAL RESEARCH
Research is one of the best way to analyse whether change amangement is effective and
required for organisation or not. In research managers of SGS Lanka Ltd can implement change
in effective and efficient way. SGS Lanka Ltd has main goals to make good imager in industry,
this can be possible with the help of customer satisfaction and improving quality of services. As
there is competition in export business, so managers of SGS Lanka Ltd has to analyse
competitor's policies and accordingly changes has to be made. There is requirement of some
theories related to change management such as McKinsey 7-S framework 2, Lewin's change
management model, etc. These help to make strategies in order to implement changes
effectively.
There are possibilities that due to change in working style, there is negative impact on
employees, so research is conducted to know what is perception of employees regarding it.
Consumers are also one of the important aspects foer growth and development of association. It
is essential to evaluate services before and after change. Managers are thinking to upgrade their
technology and make pricing policies flexible, hence there is requirement of knowing mindset of
consumers also.
1.4 PRACTICAL RESEARCH FINDINGS
Research is conducted to know view of consumers as well as employees. Research
conducted by SGS Lanka Ltd make questionnaire which helps association to grow and expand
business (Refer Appendix C). Questionnaire is filed by employees and consumers in order to
know positive or negative impact of change.
 As per research it s clear that out of total respondents 70% are ready to accept change.
They feel that change is good for development of association. This helps to provide new
and upgraded techniques which helps in growth and development of SGS Lanka Ltd.
There is competition in market and with the help of change it is easy for SGS Lanka Ltd
to be compatible. As there is difference in demand of consumers so with the help of
alterations in business operations it is easy to satisfy customer demand. These
respondents feels that there is requirement of some motivation, guidance and leading
some change can be implemented effectively. There is requirement of regular analysis
which helps to get positive results from modification at work place.
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 While remaining 30% respondents are of conserve nature and they do not want to accept
alterations in business operations of SGS Lanka Ltd. They have fear of being loss due to
improper implementation of change. Employees who are resistant to change feel that due
to change in working style they may get fired from job. They do not want to change their
operational style so they want to resist to set benchmarks.
1.5 FUTURE APPROACH
Change is not one night process. There is requirement of proper planning which helps to
make alteration in working. There are possibilities that due to internal or external factor so
managers are not able to apply strategic change in effective way.
 Internal factors such as employees which are one of the essential component for
implementation of change. It is responsibility of managers to motivate workers to accept
changes.
 With the help of SWOT analysis, it is clear that SGS Lanka Ltd has motivate employees,
so they must be targeted to work according current market trends. In order to overcome
threat of competition, analysis of market is essential.
 There is much competition in providing export import services, managers must change
their policies. They must contract on analysing customer demand and cost must be
according to buying power of client.
 In case of PESTLE managers of SGS Lanka Ltd must focus on altering business
operations according to governmental policies. This helps to resist in industry and less
legal issues in name of SGS Lanka Ltd.
 Managers has to alter working style inn accordance to conserve environment. There must
be use more environment friendly techniques which helps organisation to maintain good
image. As managers of SGS Lanka Ltd are thinking to upgrade their machines, then it is
essential that they must harm society.
 SGS Lanka Ltd can expand their business through alteration of working style and
modifications has to be done in services. As there is difference in demand of consumer
according to purpose, so cost and features of services can be improved.
 There is competition in the field of export and important services, change management
plays vital role in growth and d3eveloopment of organisation.
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 Managers must make alterations in policies, so bargaing power of customers are low.
When SGS Lanka Ltd works under dynamic nature, there is increment in sales and
profits, so it helps in repayment of loans and debts.
 In export and import business, there is much government interference and legal norms. In
order to run business in systematic manner, managers of SGS Lanka Ltd has to analyse
market and accordingly actions has to be taken.
2.0 MODELS OF STRATEGIC CHANGE
Introduction of new technology by firm involves prominent changes working of
employees. Thus, it is huge possibility that workforce might show resistance in this regard.
Thus, to cope up with this issue SGS Lanka can adopt the Lewin's change management model
that will help firm to communicate the benefits of adopting and absorbing the technological
changes by employees. Also to systematically plan out the policies and strategies related to
discount and reduction in firm's price levels SGS Lanka can make use Mc Kinsey 7's model and
ADKAR model that will help company to properly organize and apply these managerial changes
(Nakauchi and Wiersema, 2015).
 In McKinsey 7-S framework has seven elements which helps to guide and motivate
workers to apply change at workplace. Through this model skills and competencies of
workers can be improved.
 Lewin's change management model works to implement change in working style on
permanent basis. According to this model, there is requirement of alterations which are
effective and significant for market trends. By applying this model managers has to
ensure that analyse must be done before applying change, at the time of change and at
last after application of modifications. This also helps to apply change permanently
which helps to work in effective way.
 ADKAR model stands for awareness, desire, knowledge, ability, reinforcement. As per
this model, manager SGS Lanka Ltd. Must analyse situation and then actions has to be
taken. There must be desire to work under changed environment so alterations are more
effective. Superiors are able to know what changes are effective and what are not.
 Bridges' transition model covers three main stages i.e. ending, loosing and letting go, the
neutral zone and the new beginning. In first stage, change is just introduced. In this stage
perception of employees is just. In second stage, there are some confusion arises. This
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makes some to accept changes will some to reject changes. At last stage, change is
implemented in successful and effective manner.
2.1 RELEVANCE OF MODEL TO CURRENT SITUATION WITHIN
ORGANISATION
Introduction of any change or alteration in current working system by an organization is
evident to create lot of issues and is subject to face resistance from workforce. SGS Lanka to
maintain and enhance its core competencies is in phase to introduce certain technological and
managerial modifications (Lenz and Engledow, 2001). Thus to effectively handle these changes
firm been proactive is required to identify and implement best approaches for change
management. There are various theories that could be applied by firm to efficiently respond to
changes occurring in process, skill or leadership (McAdam and Lafferty, 2004). Hence, the
theories of change management used by SGS Lanka are described below:
McKinsey 7-S framework
This is more efficient method that emphasise over skills and process enhancement in
context of SGS Lanka. It is a model which is created by McKinsey in 1980's and it involve seven
steps. Stages used by Mc Kinsey's are described below:
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(Source: Mc Kinsey's model, 2018)
Strategy: It is the first step and is the policy to accomplish the objectives. It consists of
step by step development of step by step procedure or future plan.
Structure: It is the stage which is related to the manner in which company is divided or
structure it follows. Hence it is important so that company can easily perform all activities (Otoo,
Agapitova and Behrens, 2015).
Systems: In this step, all activities and tasks are performed so that company can easily
accomplish the objectives. It is crucial so that activities run in systematic manner (Quinn, 2004).
Shared values: It refers to main values according to which organization perform all
activities and tasks. Hence all tasks and operation's run smoothly and successfully.
Style: It is the manner in which leadership and changes are adopted. Hence firm can
adopt changes and leadership so that firm can run in effective manner.
Staff: It means the employees who are performing the activities and tasks. They are
important so that organization can earn huge revenues and can increase the market share.
Skills: It means the competencies and skills which are possessed by the firm. Company
has high potential so that firm can complete all activities in proper time.
Lewin's change management model
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Illustration 1: Mc Kinsey's model

To improve the process of changes and develop alternation in ease, SGS has adapted
Lewin's change models as this is more suitable approach. It is an effective model which can
easily bring changes in the company. It was created by Kurt Lewin in 1950's. It consists of 3
stages which are discussed below:
(Source: Kurt Lewin model of change, 2018)
Unfreeze: It is the first stage in this model. Company is prepared for the changes and
thinks that transformation is crucial for the firm. Organization tries to explain to staff members
that technical modifications are important so that staff members do not resist the changes.
Manager also discusses the benefits of technological advancement so that workers easily adopt
these changes.
Change: In this step, manager acts as a leader. They communicate with all staff members
and motivate them so that workers do not resist the changes. Employees also take time to adopt
changes and hence manager has to be patient with all workers so that all activities and tasks can
run properly. Also firm organize proper training and development program to make its workforce
efficient to handle the latest technology. For example SGS Lanka can organize many training
programmes so that it can provide training to all employees. Organization explains to staff
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Illustration 2: Kurt Lewin model of change

members that they are promoted and there is increase in salary of all employees if they adopt the
changes. This motivates workers and staff members do not resist the changes.
Refreeze: In this step, management helps the staff members to make sure that changes are
applied in form and executed after objectives had been accomplished. Staff members are
comfortable and confident in adopting the changes. This is important so that staff members can
easily adopt the changes and firm can perform all activities and tasks. Hence SGS Lanka can
earn huge revenues and can enhance market share.
ADKAR model
It is an objective oriented model in which company emphasis on activities and tasks
which are important so that firm can accomplish the objectives. All staff members have to give
best results so that changes can be implemented in enterprise. It is determined by the managers to
determine the gap or hole in process of change management. Effective and efficient training is to
be given so that it can increase the knowledge and skills. It stands for:
Awareness: This step means the requirements and need for the change. Hence it is
important for company to determine the needs and then creates policies to bring medication in
method and process of firm.
Desire: In this step all staff members have to work together and then tries to create
changes in company. If all workers perform tasks then it directly bring modification in methods
and techniques of company.
Knowledge: Company creates methods and process so that firm can bringing the
changes. These methods are crucial so that modification can transform the company and hence
enterprise can earn huge revenues.
Ability: It is the stage where the changes are done on a regular basis. It is crucial so that
company can slowly transform itself and can become the market leader. This helps the
organization to earn more profits (MRenz, 2016).
Reinforcement: In this stage, manager implements the changes on continuous basis and
firm can change the plans and policies. This helps the company to motivate employees and hence
workers give superior results.
Bridges' transition model
It was created by William Bridges who is a consultant. It focus on the transition or not the
changes (Schilling, and et. al., 2012). Transition is a situation which observes the reaction and
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