Strategic Change Management Report: SAR Health Services Analysis

This report analyzes the change management strategies for SAR Health Services, a multinational enterprise supplying diagnostic equipment. The report examines the challenges of implementing changes, including reducing carbon footprint and costs, and addresses people management issues arising from structural and operational changes. It explores the importance of effective leadership, employee motivation, and the application of models like the McKinsey 7-S framework. Recommendations are provided for building change capabilities, including the need for strong leadership, stakeholder involvement, and the use of project management processes. The report also considers the role of motivation theories in engaging employees and the importance of professional and ethical approaches to ensure successful change implementation. The analysis covers the need for adapting to market competition, integrating new strategies, and the transition from functional to matrix structures. The report stresses the need for effective communication, training, and the support of shared values to foster a positive change environment within the organization.

0
Strategic management

1
Contents
Introduction.................................................................................................................................................1
Change management...................................................................................................................................1
People management issues..........................................................................................................................4
Recommendations.......................................................................................................................................6
Building change capabilities........................................................................................................................7
Conclusion...................................................................................................................................................9

2
Introduction
In every organization, change management is required to be effective. The report will include the
analysis of change management in SAR health services which is a multinational enterprise based
in Switzerland. They include the operation of supplying sophisticated diagnostic equipment in
Europe hospitals and entered in other countries also recently. The management of the
organization aimed at decreasing the carbon footprint by 2022 and include taking the initiative
for reducing the costs. The factors will be discussed which are required to implement change
effectively. In implementing the plan, the management team will face the issue related to people
management will be discussed in the report. The various recommendations will be provided for
making the change effective for the success of the project. In order to build the change
capability, the organization is required to consider the factors and this report will discuss the
various factors. In order to motivate the staff of SAR health services, the motivation theories will
be analyzed which will help in making the change in the process. It is necessary for the
organization to consider the professional and ethical approaches for making the change
(Ravanfar, 2015).
Change management
Change management in the project includes the initiative for improving the performance and
change can take place in the processes, jobs, structures, and technologies. Change management is
required for the successful adoption of change for driving the success of the organization and
outcomes. For the change in the SAR health services, the management team is required to
consider the factors for making the plan of change successful. The change plan of management
includes the closing of one production site for reducing the various costs. The various initiatives
are taken by the management team for making the changes. It is analyzed in the case that with
the change in the matrix structure, the staff was not happy and it created confusion in delegating
the authority and responsibility (Nordin, 2012). It requires to consider the various factors for
making the change effective and successful. In the process of change, it is required to follow the
systematic way in the process of the goals and objectives. In the organization, the closing of the
site created the chaos and confusion in delegating the responsibilities and authorities. The staff
was not happy with the change and closing of the site. The team management included the
intention of making changes with the help of controlling and helping people with change. The

3
change in the strategies is required to follow the theories and procedures for the change (Van der
Voet, 2014).
For the success of the plan, the factors that are required to be considered by the management
team are to include the people at the leadership level which consider that change is required in
the business. It is necessary to make people understand that change management is necessary for
making the business successful and increasing profitability. It required to develop the plan of the
project with the help of changing processes, policies, and infrastructure. The other factor which
is required to be considered is to make the employees believe that change is necessary as it
requires to make the employee work with the change. The blueprint is required to be presented in
front of employees by making them understand the benefits of change will help the organization
in gaining the benefits for employees also (Anderson and Anderson, 2010).
The other factor which is required to be considered by the management team for taking the green
initiative and change of location is motivation to employees. In order to motivate the employees,
the recognition, responsibility, advancement and personal growth benefits can be considered for
making the employees work effectively and efficiently with the change (Ajmal, et al., 2012). All
the changes must be disclosed which are necessary for them to understand.
The other factor which is required is the utilization of project management processes and skills.
It helps in planning and communicating the change which helps in assisting the risk
management, contingency planning, controlling change, management of resources, prioritizing
and review after the implementation of change.
The main motivation for change is to obtain effective change management through the following
steps. These steps include motivating change, creating a vision, supporting politics and
transitioning. In order to stimulate change, the management team needs to emphasize the vision
of building leadership skills, which requires effective leadership to formulate upcoming changes.
Change must receive political support to effectively implement the change and avoid potential
obstacles. Management needs to develop an effective plan to adopt change measures. The role of
management is to maintain employee commitment to change and establish structure management
with the help of planning changes (Whelan-Berry, et al., 2013).
Change management leadership

4
In SAR health services, the change in a structure created the confusion in managers because of
miscommunication. In order to decrease the carbon footprints and reducing costs requires
effective change management along with the leadership. It is analyzed that the management of
change is not an easy process. It required effective leadership in the team for the project
management, communication, and analytical skills with a high degree of results orientation
(Cameron and Green, 2019).
Integration is a factor for making the change process easy and successful. Effective integration is
required which requires the involvement of all the stakeholders. Although all executives and
stakeholders need to support the change process, most of them will not be able to go all out.
Therefore, individuals are responsible for managing change. At least one respected leader,
whether it is an internal executive or an external consultant, needs to own the change project.
Most importantly, they need to form a leadership team to ensure that everything goes smoothly.
Strong and dedicated leadership is essential (Bush and Middlewood, 2014). Remember, this is
not enough to satisfy the respected leader for being responsible for the change, but the owner is
still in the hands of top management.
Effective organizational change requires charismatic leaders and instrumental leaders. Leaders
with extraordinary charm are good at generating energy, making commitments and guiding
individuals to adopt new methods of organization. Leaders should be consistent when adopting
new organizational methods.
The effectiveness of management greatly affects the success of change management. At the
initial stage of the change process, the leader should perceive so that he can depict a future that
people can look forward to and strive to achieve their achievements. When working towards
common goals, people are more likely to make promises (Fugate, 2012).
Strategic leader in organization is required for playing the emerging role for generating the
energy and motivating the employees for adopt the change. Leaders are required to communicate
with the team in an effective manner to make them understand the new process and its benefits.
SAR health services need to be changed because of the need to provide customers with the
medical services equipment budget. As competition intensifies, changes to the organization are
required, and to reduce operating costs, the management team needs to adopt these changes. In

5
order to expand the program, it is necessary to change the position and merge with the
production site and resign. The development of the new office requires planning and execution to
reduce energy costs. The reduction in the number of employees will affect production but must
have the requirements of the sales team (Carter and Greer, 2013).
In the workplace, the employees of the organization need board-level support to improve this
situation. In the change management process, management is required to adopt strategies that
make the business successful. In order to establish relationships with customers, organizations
need to build trust and require products and services to be provided to customers on time. The
transition from a functional structure to a matrix structure requires the training of employees to
enable them to successfully understand the structure in an effective manner. In an organization,
the transition from a functional organization to a matrix organization (where the functional
organization lacks focus and no one is responsible for the work), the matrix structure is a hybrid
structure that provides various benefits to the organization. Operational and project
responsibilities are provided to individuals along with key resources (Hanafizadeh and Ravasen,
2011).
People management issues
In implementing the plan of green initiative and reducing the costs in the organization, the
management team face will faces the issue of people management. In the organization, the
management team plays a crucial role in the success and objectives of the business. It is essential
to manage the process as well as people in the organization. In SAR health services, the change
in the structure and closing of one site will make the process of people facing more issues in
traveling to more miles. The management has taken the initiative for reducing the various costs
with the help of recycling and waste reduction in the production of equipment. It is necessary for
the management team to get the support of staff for green initiatives and relocation. The staff of
SAR health services was facing various issues with the change in management. But the change in
the organization is necessary because of the equipment budget and an increase in competition.
The management team is required to take the various initiatives for reducing the various costs.
The main issue which is faced by the management team is handling the people with the closing

6
of the site (Belias and Koustelios, 2014). Lack of effective change management is encountered
by the management team of SAR health services.
The change management process is required to consider the McKinsey 7-S model which helps in
analyzing the cohesiveness and track the performance for cost reduction. For bringing the change
in the business, seven aspects are required to be considered for the change. The support of
employees is required for the relocation and proposal of the green initiative. The team is required
to adopt the professional and ethical approaches for effective change. The management will
implement the change for moving forward and gaining competitive advantages with green
initiatives. For the success of the business, the adoption of new strategies is required for the
change (Armstrong and Taylor, 2020).
Structure
In the case of relocation, effective structure and design are required to be effective. For the
prospect of the long term, it requires to adopt the functional matrix for taking the green initiative.
It is necessary for making the structure by using the information accurately for making the
changes.
System
In the process of change, SAR health services are required to implement the system effectively.
The system will be required for managing the staff for providing the training and induction. The
matrix structure will be followed by upgrading the technology as the competition is increasing in
the health care services (Armstrong and Taylor, 2020).
Shared values
The service of home base working is provided to the sales team for recording and analyzing the
shared values. The meetings are organized on a monthly basis for sharing the values. It is
analyzed that the sales team was happy with the strategy of working from home. The training
will be provided to the drivers for fuel-efficient driving and motivation will be provided to those
who save the fuel efficiently.
Style

7
In order to make the operation effective with the change, the effective leadership style is required
to be adopted for managing the changes. It requires to implement effective leadership for
motivating the employees. The support of a team is required for managing the employees
(Golensky and Hager, 2020).
Staff
For motivating the employees, the management is required which can be done with the help of
incentives and rewards. It is required for evaluating the roles and positions of the employees. The
training is required to be provided for green initiatives. For reducing the costs, the employees
are required to be trained as the employees were not happy with the move (Golensky and Hager,
2020).
Skills
The employee’s skills are required to be evaluated by the management. It is required to enhance
the skills for taking the new initiatives. In the change management process, the skills are needed
for enhancing the employees for making the changes. It requires to include the competencies and
capabilities.
Recommendations
It is recommended to the SAR health services, the strategic change must be implemented in the
structure of the organization. The management team is required to adopt the latest technologies
for managing manual work. Information systems can be implemented for reducing the paper and
manual work and creating more accuracy in the process of the organization. The friendly
environment will facilitate management changes. The adoption of the alliance will help increase
the efficiency of leading change and express the change to employees to the greatest extent, thus
providing the greatest support for the enterprise (Kash, et al., 2014). For those employees who
are not satisfied with the process, because it will consume more time and effort as well as
consume more money for traveling to the new location, so it is recommended to provide the
shuttle services to travel. For making the business at a global level, the effective entry mode is
required to be adopted by the organization (McNamara, 2010).

8
Organizations need to communicate awareness, and since then it has been necessary to develop
human resources technology so that everyone can participate and prepare for change. By
adopting a strategic intervention technology model, the organization can build a bridge of
success and progress with all workers who are teammates and managers. In order to make and
implement changes, the organization must adopt the latest technology that needs to provide
training to employees and also provide other benefits to employees to motivate them to work
more efficiently (Nguyen and Mohamed, 2011).
Building change capabilities
For building the change is capabilities, the management team is necessary to include the factors
for developing the business effectively. In the organization, the management is required to build
the strategies and leadership styles to motivate the employees for managing the work effectively.
For motivating the employees, the promotional policies will be considered by the management
team. Blueprint is required to be considered for building change capabilities. The change in the
organization is required for competitive advantages (Mosadeghrad, 2012). For creating the
opportunities, the organization is required to improve the operations; adoption of innovation,
services will help in improving the supply chain. The various activities can be adopted for
gaining competitive advantages. Change capabilities include the core competency for improving
the performance of the business.
Change capabilities will include the planning designing and implementing the change efficiently
for delivering the maximum return on investment. In the SAR health services, the requirement of
commitment, resources and time are required for increasing the knowledge and skills for change
(Tang, 2019). The factors which are required for building the change capabilities are training and
development which includes the real-time change in the project. It requires the practices with the
help of coaching, mentoring and sharing the best practices. With the help of development, it will
help in improving the tracking record for leading the change (Rothaermel, 2016).
The key strategies for creating the change will be identification and management of change,
change process, the establishment of change in infrastructure, building strategic change in the
process and creating the strategic change. Change in Infrastructure will be included in the

9
organization for making the standardized structures and practices for designing, implementing
and monitoring the change efforts (George, et al., 2016).
SAR health services are required to follow Michael porter’s value chain for managing the change
of operations and reduce the costs of energy. The organization includes the aim of taking green
initiatives. It will include the primary and supporting activities for making the change in
infrastructure, Human resource management, technologies and procuring services.
The factors which are required to be considered for building change capabilities are the
formulation of a clear strategy and vision for supporting the well-defined benefits, strategic
leadership, understanding, engaging and building commitment is required from all the
stakeholders. The change team is required to be strong with the necessary capabilities of success.
It requires defining and follow the well-structured and integrated approach and it requires
measuring the success of the change initiatives (Varkey and Antonio, 2010).
Balance scorecard
For making the changes, risk management is required to be considered for the areas which
include the risk in the organization. Balance scorecard can be used for measuring the
performance of the employees. It is a process of key performance indicator which helps to
measure and monitor the change performance. It is necessary to consider the balanced scorecard
along with the change management which is required for enhancing and integrating the change
information. It is analyzed that the balanced scorecard can help the organization in gaining
competitive advantages. The four perspectives are included which are financials, customers,
internal processes and learning and growth in the organization. In implementing the change
management process, the assessment of operations and prospects is required for providing
support (Varkey and Antonio, 2010).
Conclusion
In the end, SAR health services require to adopt the process s of change management. The
management team is required to consider the factors for implementing the plan successfully.
People management is required to be considered for the change in the organization. The various
recommendations are provided to the organization for making the plan successful. The change

10
plan which is considered by the SAR health services is relocation and green initiatives. Along
with change management, it is necessary to manage the process and people. In the industry of
health services, the strategies are required for managing the resistance to change can be managed
with the help of motivation, support, education, and facilitation of employees. The factors are
required to be considered for building change capabilities. In the report, effective change
management is discussed which includes considering the leadership style and theories for
adopting the practices of change. The organization required to provide the facilities and
incentives for changing the location to the employees.

11
Reference
Ajmal, S., Farooq, M.Z., Sajid, N. and Awan, S., 2012. Role of leadership in change
management process. Abasyn University Journal of Social Sciences, 5(2), pp.111-124.
Anderson, D. and Anderson, L.A., 2010. Beyond change management: How to achieve
breakthrough results through conscious change leadership (Vol. 36). John Wiley & Sons.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Belias, D. and Koustelios, A., 2014. The impact of leadership and change management strategy
on organizational culture. European Scientific Journal, 10(7).
Bush, T., Bell, L. and Middlewood, D. eds., 2019. Principles of Educational Leadership &
Management. SAGE Publications Limited.
Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Carter, S. M., and Greer, C. R. 2013. Strategic leadership: Values, styles, and organizational
performance. Journal of Leadership & Organizational Studies, 20(4), 375-393.
Fugate, M., 2012. The impact of leadership, management, and HRM on employee reactions to
organizational change. Research in personnel and human resources management, 31(1), pp.177-
208.
George, G., Howard-Grenville, J., Joshi, A., and Tihanyi, L. 2016. Understanding and tackling
societal grand challenges through management research. Academy of Management
Journal, 59(6), 1880-1895.
Golensky, M. and Hager, M.A., 2020. Strategic leadership and management in nonprofit
organizations: Theory and practice. Oxford University Press.
Hanafizadeh, P. and Ravasan, A.Z., 2011. A McKinsey 7S model-based framework for ERP
readiness assessment. International Journal of Enterprise Information Systems (IJEIS), 7(4),
pp.23-63.

12
Kash, B. A., Spaulding, A., Johnson, C. E., & Gamm, L. 2014. Success factors for strategic
change initiatives: A qualitative study of healthcare administrators' perspectives. Journal of
Healthcare Management, 59(1), 65-81.
McNamara, K.H., 2010. Fostering sustainability in higher education: A mixed-methods study of
transformative leadership and change strategies. Environmental Practice, 12(1), pp.48-58.
Mosadeghrad, A.M., 2012. Implementing strategic collaborative quality management in
healthcare sector. International Journal of Strategic Change Management, 4(3-4), pp.203-228.
Nguyen, H.N. and Mohamed, S., 2011. Leadership behaviors, organizational culture and
knowledge management practices. Journal of Management Development.
Nordin, N. 2012. The influence of leadership behavior and organizational commitment on
organizational readiness for change in a higher learning institution. Asia Pacific Education
Review, 13(2), 239-249.
Ravanfar, M.M., 2015. Analyzing Organizational Structure based on 7s model of
McKinsey. Global Journal of Management And Business Research.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Tang, K. N. 2019. Change management. In Leadership and Change Management (pp. 47-55).
Springer, Singapore.
Van der Voet, J., 2014. The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational structure. European
Management Journal, 32(3), pp.373-382.
Varkey, P. and Antonio, K., 2010. Change management for effective quality improvement: a
primer. American Journal of Medical Quality, 25(4), pp.268-273.
Whelan-Berry, K. S., Gordon, J. R., & Hinings, C. R. 2013. Strengthening organizational change
processes: Recommendations and implications from a multilevel analysis. The Journal of
Applied Behavioral Science, 39(2), 186-207