Strategic Leadership and Change Management at Boots

This report provides a detailed analysis of strategic leadership, focusing on the application of various leadership styles within the context of change management at Boots. The introduction defines leadership and a dynamic workforce, setting the stage for an examination of leadership's role in managing change, using Boots as a case study. The report delves into the significance of change for organizational development, discussing the Kurt Lewin model and the five stages of grief by Kubler-Ross to explain resistance to change. It emphasizes the need for capable leaders who support change, analyzes leadership styles in relation to globalization, internationalization, strategy, and technological innovation, and evaluates an incident using KPIs. The report also explores Porter's five forces as a tool for understanding organizational power and strategic positioning, and concludes with recommendations for effective leadership. Appendices include references to Lewin's model, Kubler-Ross's grief stages and Porter's five forces.

STRATEGIC LEADERSHIP
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Table of Contents
1. Executive Summary...................................................................................................................3
2. Introduction................................................................................................................................4
3. Current Research on the Role of Leadership in Relation to Managing change at Boots..........4
Role of Leadership.........................................................................................................................4
(a)..................................................................................................................................................5
(b)..................................................................................................................................................6
4. Analysis of Leadership styles to the changes occurring at Boots relating to Globalisation,
Internationalisation, Strategy, Technological Innovation and Organisation Development............7
5. Evaluation of an incident...........................................................................................................8
6. Leadership styles in context of Development at Boots..............................................................9
7. Conclusion...............................................................................................................................11
8. Recommendation....................................................................................................................11
9. Reference List:.........................................................................................................................12
10. Appendices:...........................................................................................................................13
Appendix 1...................................................................................................................................13
Appendix 2...................................................................................................................................14
Appendix 3...................................................................................................................................15
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1. Executive Summary
The report broadly discusses the various strategies of leadership, which exists and can be
implemented to not only improve and expand but also to run and manage an organisation in an
effective manner. In the first an introduction is given which defines the true meaning of
leadership and what are the characteristics which are required to acquire the traits of a great
leader. Next, a definition is given to properly understand the dynamic workforce. The next point
deals with the role of leadership in connection with handling change, taking the organisation of
Boots as an example. Change, which is one of the chief factor responsible for the development
of an organisation as a whole is elaborately defined along with the ways by which resistance to
such changes can be overpowered. The theory of five stages of grief by Kubler-Ross, the model
of change by Kurt Lewin is being discussed in the process. It has been founded in order to
survive in the present market world; an organisation must have a capable and cooperative
leader who supports the idea of change. The theories which are presented are very much
effective for an organisation to construct its working structure. The Porter's five forces, on the
other hand, teach the essential tools, which are very much required to develop an effective
business strategy. Assessment of methodical change taking the Boots organisation with the aid
of an incident is also elaborately explained along with the application of KPI.
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2. Introduction
It is a known fact acknowledged by all that in order to run an organisation successfully it is
necessary to have the guidance of a good leading individual. Someone, capable of taking
decision, implementing them, who have the adequate confidence of managing and leading a
group of people under him to accomplish and achieve a greater goal. This objective can be
achieved if an individual is skilled in the art of management. So it can be said that for an
organisation to develop well an individual is required who is skilled in management and
leadership as well. Another factor, which is important for the employment of strategic leadership
and to bring necessary change, is the factor of a dynamic workforce. The term dynamic
workforce implies, a team of similar minded individuals, talented in their respective profession is
together to accomplish and fulfil a common objective. This is shaped based on establishing a
firm relationship between the employers and the employees.
In the present report, various topics are being presented and discussed, taking Boots
organisation as the sole example. A detailed research regarding the activity of leadership
relationship regarding handling change and what does it imply, evaluation of various leadership
styles for globalisation, strategy, in technological advancement, organisations are discussed.
The importance of methodical change, leadership role taking an incident, KPI measures are
also presented. The another factor which is elaborately discussed is the styles of leadership and
how does it help in the development of Boots (Ricard et al. 2016, p.20)
3. Current Research on the Role of Leadership in Relation to Managing change at Boots.
Role of Leadership
The role of the leadership of an organisation is a major responsibility. An organisation will not be
able to develop and improve if it lacks efficient individuals who are responsible for leading the
company. A company must have a broader picture of improving and expanding its business on
a wider basis to stay put in the present day of competitive market, and here lays the importance
of a good managing leader. Structuring new ideas, taking initiatives to framework plans
regarding the ideas, and implementing steps to turn those ideas into reality are essential parts
of efficient leadership (Vaccaro et al. 2012, p.37). One of the chief factors, which help to
accomplish this objective, is the factor of change. For any organisation to thrive, change is a
necessity. Take the example of Boots for instance. The company, which has been founded by
John Boots, has come as the long way and is now a leading pharmacy chain not only in the UK
but also in Ireland. Apart from being an industry of pharmaceuticals, it has evolved and also
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deals in beauty, healthcare, photography products. This would not have been possible if the
owner refused to apply the method of change in the organisation (Appiah-Adu and Amoako,
2016, p.20).
(a)
The term ‘change' simply means to be or make something different, especially from something
which already exists (Birasnav et al. 2011, p.108). Hence, change in organisation implies to the
changes that are initiated for the betterment of the organisation. There are various theories and
approaches to change which are being applied by the managing authorities for organisations.
One of the mentioned worthy approaches is the Model of Change by Kurt Lewin. (Refer
Appendix 1)
The Three Stages design by Kurt Lewin is one of the most effective organisational approaches,
which has its importance even in the present world. Constructed around the early 1950s,
Lewin's model change is based on a method, which is simple and easy to comprehend and to
put into practice. The model consists of three phases of change, unfreezing, changing, and
refreezing. The model shows that certain steps must be taken before taking the initiative of
change in an organisation (Toniniet al. 2016, p.43). A company, for instance, needs to consider
factors related to present circumstance, situation of the company as well as its employees and
the possible consequences for making changes. When all these things are done, the next step
is to take measures to make sure the new changes are being strictly followed by all members of
the organisation.
Whenever a change is made in any organisation, it is necessary to go through the stage of
unfreezing. The word itself signifies the process of melting down a solid object by certain
means. Thus, it implies that before deciding to bring changes, one must carefully assess the
present situation of the prevalent working system, the members, the possibility of resistance or
acceptance of new amendments, what objective can be fulfilled. It often happens that certain
member’s objects to the proposal of change and tries mean to deny it. Thus, during this stage,
communication is very much important. The leading management must discuss, explain the
reason behind implementing change and what can be gained from this. Changing, the second
stage involves the process of ‘moving' or ‘transitioning'. This is the toughest step since in this
stage people to try to adjust and adapt to the newly laid rules of an organisation. The third
involves ‘refreezing'. In this stage, the new changes that are being implemented are being
solidified. It means steps are taken to make sure the organisation works following the new
changes which are being decided by the leading authority. It can be said that this model change
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is well applied by the Boots organisation. Boots organisation applied the model in its various
sectors which helped the organisation to become one of the largest reputed company in the UK
which are: boosting costs efficiency, stressing on globalisation, emphasising on public
responsibility which led to the section of beauty, development in technological section for
improved productivity and many more (Toniniet al. 2016, p.78).
(b)
Whenever a change takes place in an organisation, a certain amount of resistance is bound to
emerge. The theory of five phases of grief by Kubler-Ross can be employed to clearly
understand the stages of resistance. (Refer Appendix 2) When an organisation implements a
certain change its employees suffers the phase of denial, inability to adapt and accept the
sudden change seems unacceptable to employees. Hence, this leads to the rise of anger in
them, so they try to bargain with the upper power in the hope that their requests are considered.
When rejected, employees go to the stage of depression, grieving the loss of their previous
condition. When unable to do anything, they accept the prevalent changes, which now exist.
However, there are various ways by which the leading management of an organisation can
overcome the obstacle of resistance. One of the chief characteristics of efficient leadership is
the ability to control his people by means of communication. Interacting with the employees,
making the effort to know their problems and explaining to them why the change is beneficial is
essential. People willingly follow a leader if only they feel their opinions are being given
importance.
An organisation in order to run successfully requires cooperation from all of its members. While
holding a discourse sessions regarding any important strategic matter select a team of
individuals from every unit and interact with them. It is to be remembered, changes are initiated
for the betterment of an organisation as a whole. Two of the historical change of Boots
organisation is the acquisition of Ward White (1989) and the assignment of chief executive Sir
James Blyth. With the assignment of James Blyth change was observed in the organisation as a
whole which brought great improvements like producing quality products, betterment in staff
welfare and many more (Cummings et al. 2016, p.34).
Strategy, internationalism, globalisation, technological advancement, organisational
development is the chief factors, which assure success of changes taken place in an
organisation. Two of the leadership styles, which help to fulfil these objectives, are participative
and transformational. Participation, also called the democratic style of leadership involves the
participation of all employees of an organisation. The opinions of all members are given equal
importance, although the last decision is taken by the organisation's leader. Transformational
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leadership style involves a high level of an interactive session among all the members of the
organisation(García-Morales et al. 2012, p.1042). Making goals, trying to achieve them together
holds importance. It is a widely acknowledged fact that for an organisation to thrive and expand
strategic measures are needed to promote innovation, globalisation which leads to
organisational development. Creativity, crafting innovative ideas are needed to acquire a
permanent place in the competitive market. Globalisation, on the other hand, is the method by
which organisations expand their international market. Take Boots organisation as an example,
it has more than 2,500 stores operating across the UK apart from Ireland. It is one of the most
widely known companies at present.
4. Analysis of Leadership styles to the changes occurring at Boots relating to
Globalisation, Internationalisation, Strategy, Technological Innovation and Organisation
Development.
A theory can be applied to understand more clearly, factors that need to be considered by the
efficient leader to run and manage an organisation successfully like Boots. Porter's five forces
is an uncomplicated yet effective tool to comprehend where the true power of an organisation
exists. (Refer Appendix 3) The first is the supplier power which evaluates how simply the
suppliers can increase the cost. This is based on a number of supplies made, the exclusiveness
of the products, the price opting one from the other and much more. The lesser options of
suppliers you have, the more their demand grows. The factor of buyer power urges you to look
into the importance of customers and how easy it is for them to reduce the product's price. This
includes evaluation customer loyalty and the reasons behind it (Bischoff, 2016, p.89). This helps
to understand what an organisation needs to innovate and change to remain in the top in the
market. The next is the factor of competitive rivalry, which gives stress to evaluate the present
market condition and what method can be applied in the organisation to win in the competition.
The next two factors, which are to be considered, are threat or danger of substitution and threat
of new competitor or a new entry. It often happens that a new emerging company as a result of
becoming successful often poses as a dangerous competitor for the existing
organisation(Example), hence the existing organisation must be aware of it as well.
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5. Evaluation of an incident
Due to the rising competition in the field of pharmacy, it has become important for Boots to
focus on implementing certain change to ensure smooth operation of the company. While
recently the company merged with Walgreens, a certain change in the leadership position has
been established. Stefano Pessina took over as the CEO of Walgreens Boots Alliance (The
Telegraph, 2016). The job roles and responsibilities of the leaders of the company changed
after the alliance.
While the new role of Alex Gourlay and Ornella as Co-Chief Operating Officer require them to
oversee the multiple departments of both the company, Simon Roberts, the Executive Vice
President of Boots had to quit her role as a business leader of Boots (The Telegraph, 2016).
With the implication of this change in the organisation, the objectives of the business leaders
changed considerably. Pessina’s objective is that the company reaches that the position to
make sure that the challenges in the future are eliminated considerably. Capitalising on future
challenges required the appointed business leaders to play instrumental roles to evolve the
company.
The CEO made it evident that in order to make a substantial growth in the global healthcare
prospect, investment on assets helping the alliance to capitalise will be considered. The basic
idea was to focus on the growth strategy. Hence, having Gourlay and Barra in tow, the strategic
moves for global expansion are initiated by him.
The role of Stefano Pessina as a leader managing the change can be considered effective in
this particular incident. It is made sure by him that heis setting appropriate and achievable
objectives. While having the efficient leaders like Gourlay and Barra to assist him in company
functioning, he will have more time to focus on the strategic growth of the company (Dia and
Thomas, 2011, p.24). While Gourlay and Barra have taken up the responsibility of making the
company an effective retailer in global stage and focussing on the global expansions, Pessina
can move his focus on allying with other companies like Rite Aid (Ma and Seidl, 2016). The sub-
leaders reporting under Alec and Ornella, Ken Murphy and Kathleen Wilson, Executive Vice
Presidents make sure that a good organisational culture is established.
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It was also ensured by the business leaders that those who have strong faith in the
organisational change are kept in the organisation. Hence, Roberts, who was holding an
important position as a business leader, had to leave the company(Singh and Useem, 2016).
Thus, with the help of capable leaders who are able to gain the trust of Pessina, he is focussing
on the reaching the alliance to a global level with innovative ideas and capability of establishing
strong deals.
Effective KPI’s can be implied in this specific scenario. According to Ma and Seidl (2016, p.89),
one of the most effective ways of evaluating the performance of the company is by ensuring that
appropriate alliance review meetings are conducted. It is evident in the case of merging of
Walgreen and Boots that focus and structured discussion was held in order to measure the
progress of the alliance (Kriger and Zhovtobryukh, 2016). On the basis of the state of the
company the areas of improvement were defined. Thus, it can be said that the alliance review
meeting is one of the best tools to evaluate the intangible growth of the company.
Another efficient KPI which may be effective in this scenario is the basic tool to measure the
revenuesuch as business earnings, profitability and growth rate. With constant monitoring in the
improvement in revenue of the company, it will be easier to establish whether the strategies
implemented are able to satisfy the needs and requirements of the customers or not (Sierra and
Banzato, 2016, p.120). Thus, the financial leaders of the company use the revenue
measurement tool to reflect the growth in the business.
6. Leadership styles in context of Development at Boots
When it comes to implementation of change, it becomes excessively necessary for the business
leaders to take charge and make sure that the other employees are able to adapt to the change
effectively. The business leaders employed at Boots realises the responsibility of successfully
intervening the strategic change in the organisation by making sure that the appropriate styles
are followed by them. This ensures that the changes, whether occurred from internal sources or
external, are faced in a positive manner by the employees (Kriger and Zhovtobryukh, 2016,
p.19).
It is the compulsion for the leaders to make sure that the employees are able to rely on them by
communicating effectively. Although, it has been seen that the leaders usually rely on the
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command method, one of the most effective way of establishing effective strategic change are
by making sure that the employees are able to approach the leader without any dilemma (Sierra
and Banzato, 2016).
While implementing a sudden change in the organisation, it can happen that the employees
may have several queries and confusions. It is important to make sure that the changes
implemented are able to derive positive results for the organisation. Thus, it becomes important
to make sure that the employees approve the implemented change. With a free flow of
communication, it becomes easy to evaluate the approval (Krige and Zhovtobryukh, 2016,
p.89). In the case of any condition where the employees may suffer through a stage of
confusion, appropriate consultation can be provided by the leaders to make sure that the
confusions are eradicated in an effective manner.
The communication is not limited to one way. One of the key leadership features in Boots is that
it realises the importance of the employee feedback. Hence, the scope of consultation from the
part of the employee is available in the company. It provides the leaders a better an opportunity
to identify the probable risks while implementing the change. Thus, effective measures to
eliminate these risks can be adapted as well. Thus, it can be said that the leadership style
focussing on the easy flow of communication between the employees and the readers can be
very helpful. The democratic leaders can always share more popularity among the
employees(Grant, 2016).
However, it is required to be ensured by the leaders in Boots to identify the most relevant inputs
and incorporate them effectively to ensure a smooth strategic change in the organisation. One
of the major requirements for any leader is to have strong analytical capabilities (Singh and
Useem, 2016, p.56). It is required on their part to foresee which plans are going to work in
favour of the strategic plans and which wouldn't. When it comes to implementing certain change
in the organisation, it should be maintained by the leaders that the effective ways are adopted to
make sure that the changes are adapted well by the employees. Hence, with the help of
appropriate analysis, it will be easier to mitigate the potential risks by the leaders during the time
of strategic changes in the organisation.
One of the major requirements for any successful leader is that the individual is prepared
beforehand to address any change. When it comes to the introduction of a new plan, it may be a
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bit difficult for the majority to get adapted to it. Employees of an organisation are often found
witnessing difficulties, when new technologies are introduced to them. They use to need a
certain timeframe to get accustomed with the changes. It is essential on the part of the business
leaders to make sure that they are comfortable with the intervened changes in the organisation
(Kriger, and Zhovtobryukh, 2016). It can be said that only when the leader has strong faith in the
organisational change, he will be able to make the employees get adapted to it convincingly.
Ambiguity can, thus, be considered as an essential leadership style that can be adopted by the
business leaders at Boots (Morden, 2016, p.80).
In order to ensure that the leadership qualities are substantially developed, the business leaders
need to reflect upon their role as a leader. It is necessary for them to analyse whether the key
qualities required to be a leader of an organisation are present in them or not. Hence, it is
important for the leaders to evaluate how they behave under stress. Kuruczet al. (2016, p.97)
state that apart from identifying the strengths as a business leader, it is also essential to work
appropriately on the weaknesses. It can always be beneficial if the different leaders from
different departments in Boots understand the strengths and weaknesses of each other and
provide each other guidance to make sure that the implemented organisational change runs in a
smooth manner.
7. Conclusion
It can be concluded that the requirement of efficient leadership while managing a change in
organisations like Boots cannot be ignored. However, it is important on the part of the business
leaders to identify the most effective ways to lead the employees in adapting the change.Thus,
analysing the research elaborating the role of leadership can be helpful. Since adapting to
change can prove to be overwhelming for the majority, the role of the leaders to overcoming this
challenge is essential.
Due to the rising competition in the global platforms, the essentiality of the leaders to implement
the accurate leadership style is can be beneficial for any organisation. It is the responsibility of
the leaders to ensure that the appropriate KPI tools are included to evaluate whether the
change is able to derive positive output or not. Reflection on the leadership style can be helpful
for any business leaders to drive the employees in an effective way.
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8. Recommendation
In order to make sure that the leaders of the Boots are able to provide appropriate guidance to
the employees, there are certain measures, which can be taken by them.
Being one of the top names in the pharmaceutical industry, the business leaders may focus on
incorporating technology so that advanced medical research can be conducted in a smoother
manner to reduce the number of clinical errors.
Apart from that, the leaders can also consider that merging with efficient companies will not be
enough to gain a global recognition. Appropriate marketing techniques as well as strategic
alliances are required to have experimented so that the reach of the company gets wider and
larger numbers of people are able to recognise it.
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