A Report on Understanding and Leading Change: Business and Leadership

This report provides a comprehensive analysis of leading and understanding change within organisations, examining the impact of change on strategy and operations, and the drivers of change affecting companies such as Marks & Spencer, Tesco, and Nokia. It explores how internal and external factors influence leadership, team, and individual behaviours, and discusses measures to minimise negative impacts. The report critically evaluates organisational responses to change using theories and models, including force field analysis, and examines various leadership approaches. It assesses the effectiveness of these approaches in delivering organisational change, offering conclusions, recommendations, and justifications for effective change planning. The report emphasizes the importance of understanding and managing change to drive growth and success, focusing on leadership's role in facilitating this process.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Change impacts on an organisation’s strategy and operations...............................................3
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected...............................................................................6
TASK 2............................................................................................................................................7
Internal and external drivers of change affect leadership, team and individual behaviours.. 7
Measures to minimise negative impacts of change on organisational behaviour..................8
Theories and models to critically evaluate organisational response to change......................9
Conclusions and recommendations with valid justifications for effective change planning. 9
TASK 3..........................................................................................................................................10
barriers for change and their influence on leadership decision............................................10
Use force field analysis to analyse the driving and resisting forces.....................................10
Critically evaluate the use of force field analysis in the context of meeting organisational
objectives..............................................................................................................................11
TASK 4..........................................................................................................................................11
Different leadership approaches to dealing with change in a range of organisational contexts.
..............................................................................................................................................11
Evaluate the extent to which leadership approaches can deliver organisational change
effectively.............................................................................................................................12
Critically evaluate the effectiveness of leadership approaches and models of change
management..........................................................................................................................13
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14
Books and Journal................................................................................................................14

INTRODUCTION
The business organisation is changing at a faster pace and change is very important in
nature. Change can be seen at any and every place which will lead to loosing the originality and
amending the same into a new one. There are various kinds of change which can be refereed to
as transformational, developmental and transitional. The process of change is an ongoing
process and continues for a longer duration. For this the organisations are required to be prepared
and follow a flexible set of rules so that change can be easily implemented and handled easily.
When there is change in an organisation, there will be generation of new ideas which will lead to
reducing the competitive rivalry and maintain an enhanced goodwill. To gain a better
understanding how change can be brought in an organisation and how it will lead to growth and
success, three organisations are taken into consideration. The three organisations are Marks &
Spencer, TESCO and Nokia (Amis and Janz 2020). To understand the change positive and
negative factors are also discussed and evaluated. The report also discusses the impact that
leaders and managers conduct and perform so that change is accepted in a desired manner. They
are focused on reducing the issues and challenges that might occur in the process. The report is
also further proceeded covering the leadership approaches which are helpful in bringing change
in an organisation.
TASK 1
Change impacts on an organisation’s strategy and operations.
In an organisation to work in a favourable manner it is required to accept and implement
change. For this managers are required to frame strategies which work as a cause in accepting
change at a faster pace. When change is easily implemented in an organisation, it will lead to
innovation which will make the working process enhanced. The changes in an organisation
requires several drivers which make the change initiated with an ease. The drivers used are the
reason for bringing change in an organisation. There can be changes due to both macro and
micro factors prevailing in the environment. The change causing factors are mainly the external
factors which are lingering in the external environment. The change drivers are used in many
entities and better understanding of these can help in bringing change in the country. Marks &
Spencer's, being a large and multinational organisation is very hard on accepting change
(Bernstein and Linsky 2016). As seen in past two decades there are very less cases which show

that there has been a change. Although it is opening many retail stores but is performing very bad
in the virtual market which is an issue to existence. On the other hand, TESCO being the largest
chain retail store of UK is also suffering a high loss in terms of cost of production and revenue
generation. This is because of the change drivers. The drivers of change which affects the
success and growth of an organisation can be seen as:
External Drivers Internal Drivers
Technology Mission of organisation
Customer Preferences Human resources
Competitor's moves Profits Goals
Supplies instability Trusted behaviours
Drivers of Change which is affecting TESCO
TESCO being the largest chain store of UK faced a lot of issues while working with
implementing change. They suffered a high loss in 2014-15 which accounted for £6.3 billion.
This resulted in lowering down the market share which resulted in downfall in its market share
price. This made the organisation suffer badly and problems to channel the losses as incurred.
There were many reasons that worked as the change drivers and made company suffer huge
losses like profit margin, cost of production, rate of assets, competition from rivals and others.
These factors are both internal and external which worked in a whole as combination and led to
downfall. The policy of TESCO which works for providing goods and services of good quality at
a lower rate affects the cost of production and the profit margin which is required to be worked
upon. For this there were several changes that took place, they can be seen as:
Working with simplicity, TESCO focused on taking appropriate measures on the
feedback and suggestions as provided by the consumers. This enhanced the consumer's
satisfaction which increased the loyal customer base (Boyatzis and Cavanagh 2018) . They also
worked for improving and innovating their products and services so that there is reduced
wastages. This reduced their operating costs which increased profit margins.
Drivers of Change which is affecting Marks and Spencer's
Marks and Spencer's is a renowned organisation which is working from a longer time in
the market. They are working well with the physical stores but are lagging behind in the online

stores. This is because the management is not that strong and the chairman is alone not having
the sole power. This reduced the development pace as change is affected positively and
negatively in an organisation. The issues faced by Marks and Spencer's were lack of technology,
reduction in investment for development of store infrastructure, competitors and others. There
are more than 300 stores but with unmanageable infrastructure which is disrupting the interest of
consumers. Along with this there were issues faced when digital stores and focus on it was
neglected. The less focus on online platforms made the business in a downfall. This worked as
increasing competition as there were no new features which could work in facing the
competition. This reduced the attraction of consumers as many other brands came and took
advantage. They were able to do so as they brought changes in clothing, fashion, accessories,
bags and others. When organisation analysed these factors they worked for taking corrective
measures so that the deficiencies can be reduced and business would work with same goodwill.
There were several changes that were adopted by Marks and Spencer's and can be seen as:
The organisation brought change in communication process. They focused on effective
communication so that policies can be delivered in a better manner and also work can be done
accordingly without any issues (Doppelt 2017) . They also focused on improving leadership so
that operations are conducted effectively and high profit is generated. The focus was even laid on
maximising the consumer base and increasing flexibility of the organisation.
Organisational example that affects change
Change Drivers Marks And
Spencer
Drivers TESCO
Organisation
structural change
Store
Infrastructure
There is lack of
proper
infrastructure
which is
hampering them
in working with
the trend. For
example, less
machinery and
assets are not
Consumer's
feedback
TESCO work on
feedback as
provided so that
they can remove
the lacking areas
and can work in
providing
satisfaction to
consumers.

enough to
manufacture
goods as per
latest techniques
and efficiency.
Strategical change Competitiveness The strategies
built are strong
which can work
for reducing
competition. For
example, the
company could
face reduction in
their staff.
Competitor's
action
TESCO is working
for making
effective policies
so that competition
can be fought in
an ethical and
appropriate
manner.
Operational
change
Price They reduce
prices which is
attracting a wide
range of
consumers which
is increasing the
sales and thus the
profit margin.
Profit margin The organisation is
working for
reducing the cost
of production so
that profit margin
on the product can
be increased.
Drivers for change and the types of organisational change they have affected.
The drivers affect the working operations and as a result it affects organisation in both
aspects, negative as well as positive (Espedal 2017) . There are many change drivers which are
required to be evaluated and understood by the leaders so that they can worked upon in an
appropriate manner. The change drivers of the various organisations can be seen as:
Marks and Spencer's

External Drivers: The competition in the market is significant change driver that is required to be
regulated and worked with effectively by any and very organisation.
Positive Impact- This works for improving rules and policies which will make organisational
structure improved.
Negative Impact- It will reduce the sales of products and services as focus will be on
competition, not consumer satisfaction.
Internal Drivers: The infrastructure is a major internal driver, if infrastructure is not proper
business operations cannot be carried out effectively.
Positive Impact- The attractive and well managed infrastructure will attract consumers to visit
and purchase.
Negative Impact- If infrastructure is not well managed it will lead to negative image in eyes of
consumers.
TESCO
External Drivers: The technological advancement is a major external driver which is required to
be updated timely.
Positive Impact- Updated technology can ease out the process and a wide market can be catered.
Negative Impact- The employees sometimes cannot work with technology and thus causes a
major fail.
Internal Drivers: The low profit margin which company incurs due to its strategical changes.
Positive Impact- The consumers are attracted when organisation provides goods and services at a
cheaper rates.
Negative Impact- The Company suffers as they have less amount left for investment purposes.
TASK 2
Internal and external drivers of change affect leadership, team and individual behaviours.
Internal and external drivers affect the productivity of an organisation. The managers and
leaders should focus on them so that change can be catered easily. The employees are required to
be kept satisfied in order to carry the operational activities in a proper manner and also to cater
the changes as and when flourishes. The team will be working altogether to resolve the issues as
faced. The competition is the major driver which requires building up of new strategies. These
drivers affect leadership and their ability to motivate and persuade the employees to achieve the

goals and targets as pre determined. Technology is the another driver which works in bringing
change in the organisational culture and process. Technological advancements will make the
operations easy to be performed (Gaubatz and Ensminger 2017) . The manpower of the
organisation are the drivers that affect the whole working process, if they are not maintained and
are working properly, none of the strategies can work. For this reason the human resource should
be managed so that they can work in a team and bring productivity and efficiency to the
business. There is substantially various impact of change into leadership, team and individual
behaviour which are described below:
Leadership: The change impact on a leader first as they are the only one who will
regulate the change into its team and make possible efforts. In Tesco, the driver of change in
competitiveness comes up with different strategically policies and new era of working which
leaders require time to provide effective leadership training to their team.
Team: change drivers are quite risky and challenging for the team to meet with the
criteria of work. A random change will lead to lowers down team confidence and creates
confusion among team members without proper guidance so that, internal and external drives
like price policies, infrastructure lead in Tesco brings complexity that need strong focus and
extra efforts in order to put achieve the change successfully.
Individual behaviour: An employee’s behaviour in pertaining and deal with the change
which occurs through internal and external drivers. Tesco requires other skilled staff and workers
to work with more prominent skills that create a feeling of discrimination making another
individuals who does not get the powers even working from long time.
It can be thus analysed that there is an urgent need which requires change to be accepted and get
persuaded so that every department can work in a proper manner. To execute tasks and activities
without any disturbance, both internal and external drivers are required to be kept in mind. The
proper study of the drivers will thus be responsible for categorising whether the drivers are
controllable or uncontrollable.
Measures to minimise negative impacts of change on organisational behaviour.
There are many factors which are responsible for affecting the organisation. Then there
are some factors which can affect in a negative manner and such are required to be minimised
and reduced taking the appropriate and corrective steps. For this the managerial team prepares a
set of policies and rules which work in the direction. The rules and policies are as:

Employees Engagement: The negative impact can be reduced by increasing the involvement of
employees in decision-making process. This will motivate the employees and it will also enhance
their skills which will develop them (Hughes 2016) . This process is also required to be managed
so that there are reduced chances of important information being leaked out. To preserve the
confidentiality it is required to maintain a gap as well. Change is not easy to handle which
require some expertise and professional knowledge also. so that, in order to control chamge
management, Tesco needs to involve managers and employees in an effective communication so
that the organisation will smoothly perform change by developing their abilities and skills.
Training and Development: The employees are required to be trained by the training
programmes which will result in increasing their knowledge. When employees are having good
knowledge they will execute activities in an effective manner. This will result them in keeping
themselves motivated which will increase efficiency. The negative impact of change could only
resist by giving sufficient training and guidance to the employees which brings back the positive
outcome into organisation. The behaviour of employees and organisation is based on how
managers prepare their subordinates with effective culture and creates a roadmap to set alerts and
deadlines so that employees will be prepare to work in complex environment also.
Evaluation of Past Experiences: The past experiences are required to be evaluated and kept in
mind while performing the tasks. This will help in meeting the contingencies easily. Also it will
be helpful in implementing changes easily which will reduce the difficulties and help the
organisation to work in profit motive.
It can be analysed that taking the corrective actions will result in dealing with the
negative factors in a proper manner. In every organisation change is not supported by everyone
and as a result there has to be proper evaluation of the changes which are required to be brought.
The above discussed rules and policies which an organisation is required to be working with are
applicable suitably. This makes evaluation and resolution of problems easy.
Theories and models to critically evaluate organisational response to change.
There are many theories and models that are used which will help the organisation in
working with the change and accepting the same. The theories can be seen as:
Burke–Litwen theory
Marks and Spencer's apply Burke–Litwen theory that works in a proper manner to accept
change and to respond to it in a positive manner. This was developed in 1992 that is helping

numerous organisations to change according to the dynamism. This creates a cause and effect
relation between change and performances (Iles 2017) . This can be seen be implemented by
considering the required elements that can be seen as:
Mission and Vision
External Environment
Leadership
Organisational Structure
Management Practice
Structure
System
Working Culture
Skills and Activities
Needs and Values
Motivational Level
Individual and Organisational Performance

System theory
In TESCO system theory is also followed which works as making groups where work is
performed independently ans interrelatedly. These can be man made or self generated. These are
limited with time, environment, cost and others. This is the approach which works in performing
tasks and activities in a proper and systematic manner, this will result in reducing the
complexities and making the procedure easy and adaptable.
Conclusions and recommendations with valid justifications for effective change planning
Impact analysis works as evaluating and examining the expected reasons which will work as
estimating the needs and accepting changes. When change is implemented the organisation
works in a proper manner and are not required to worry. It is because the strategies and policies
framed will be used in a proper manner (Nelson‐Brantley and Ford 2017). This will reduce the
negative impact and also result in gaining higher profits.
TASK 3
barriers for change and their influence on leadership decision
There are many barriers that is hampering change in an organisation, these are required to
be removed. In Nokia, there are two barriers like individual and organisational. Individual
barriers restrict employees to perform tasks on themselves. These can be refereed to as
behaviour, attitude, mindsets, etc. Organisational barriers hampers the performance of
employees. These can be refereed to as working environment,inefficient communication,
budget, etc. Apart from these there are many other barriers that come in the way and directly
affects the behavioural process. The barriers affect the operations in every manner and for that
leadership is required to be effective. Nokia is a large organisation where many barriers can be
erupted and for this leadership is required to be effective. It helps in accepting changes and
remove barriers. As Nokia is working with innovation which that is removing the barriers at an
early stage. This helps in catering dynamism and modernisation. When leaders are working in
catering the demands of changes and are changing accordingly, it will create a positive impact on
the environment. Such conditions of leaders will be helping in facing the changes and accepting
them. If it is not followed it will result in negative attitude and behaviour in an environment
which will affect the working (Neumann, James and Vince 2019). There are many barriers to
change which affects on leadership decision in Tesco:

Ineffective communication: Change is a leading part of effective communication and its
success only depends on how organisation communicates this change effectively into
organisation. Lack of communication is a barrier for Tesco which effects in Nokia but positively
impact on Tesco as leaders could not make effective communication about change with their
team.
Budget: It is also a barrier to change into organisation. In order to bring new technology
and assets a well budget in financial position is required to adopt new ways and innovative
techniques which bring positive change into organisation. So that, in Nokia budget is becoming
barrier as the company does not have sufficient initial investment to try and innovate their
products. Well in Tesco, the company also layout of budget which stop them to fight against
competitors in terms of prices and product. Leaders decision are also based on companies
financial psotion which make them limited up to the boundaries and they could not think beyond
the imagination and innovative.
In order to overcome with barriers of change, kotter’s theory would be helpful
Kotter’s 8 step model brings measures and ways to overcome with the leading change in the
organisation by creating vision and Mission to achieve change management.
Create urgency: in order to regulate positive change and overcome with the barriers, the
organisation should identify the urgent requirement of change into overall business practice and
first take into consideration true indulging support of industry commerce stakeholder and
customers in order to resolve the issue.
Powerful guiding coalition: in order to make the change successful by adopting innovative
Strategies for making change into product and prices Nokia needs to make powerful coalition
with employees and teams and all the other people who are indulge into business operations.
Develop vision and strategy: there is first need to identify the values and create a proper vision
in which organisation need to fulfil their targets.
Communicate the vision: communication is the key to stop barriers bye making each and every
person aware about organisation mission and keep a check on performance and training.
Remove obstacles: sum up the entire organisation mission with the overall structure in order to
keep a check on change and actions which will help in removing obstacles.
Short term wins: change is a process of short term goal and success coma Nokia needs to
celebrate a tiny success which comes from the change in order to keep everyone motivated.