The process of Change Management Models Order Instructions: Change management models
The material you have studied this week is intended to provide a linkage between the change drivers that emerge either from within the firm itself or as a result of events and activities that take place in its operating environment, as well as a subsequent process of change that individuals in that firm will be required to manage. The key concept that emerges from this material can be usefully summarised in the following statement:
The primary requirement of a successful change management initiative is to facilitate a process of change that is established in response to one or more internally or externally located change drivers. A change process of any material scale will inevitably impact on the firm’s core business model and will be optimally successful when it reconciles the often competing philosophies and perspectives of multiple stakeholders. This reconciliation is best achieved through the overlay of a guiding change management framework, as opposed to the imposition of a staged and linear prescription.
This week’s Key Concept Exercise requires you to reflect on the following three things:
(1) the extent to which any specific change process will generate implications for the organizational stakeholders most directly affected,
(2) what the nature of those implications might be and
(3) how the change manager can best take those implications into account as the change process is implemented.
(1) who are the stakeholders that change managers need to think about,
(2) what are their attitudes to change likely to be and (3) how can those attitudes be most effectively reconciled?
To prepare for this Key Concept Exercise:
• Read the uploaded files.
• Reflect on the ideas presented in the Week 3 Key Concept Overview and the assigned journal articles, in the light of your own practical experiences in the workplace.
• Consider ONE of the possible change drivers listed below, and use your chosen change driver as the basis of an initial response to the Key Concept Exercise that follows:
o Introduction of new government legislation that imposes a ban on media advertising of your top-selling fast food product line on the grounds that it poses a threat to public health.
o Failure to secure a renewal of contract with your single most important customer, resulting in an almost overnight 30% drop in revenue.
o The release of a government report that predicts a rapid increase in the size of the immigrant community (from one particular origin country) in your geographical target market region.
o Advice from your management accountants that the repairs and maintenance costs for your existing (and aging) plant and equipment have become such that a major investment in new technologies is now necessary to ensure your continued survival.
o Recent political polls suggesting that an upcoming general election is likely to see the ‘green’ political movement take a much more prominent role in the formation of government policy in your country.
To complete this Key Concept Exercise:
• Critically analyze the impact of organizational change management processes that might be introduced in response to your chosen change driver.
• In formulating your Key Concept Exercise, consider the following questions:
o What impacts, if any, will those changes have on the value creation, modus operandi and value capture elements of the firm’s existing business model?
o What individuals, groups or communities of interest will be affected by the changes you plan to make?
o What do you expect to be the nature of the general attitudes displayed by each of those stakeholders?
o What specific actions would you anticipate taking in order to ensure an appropriate and ethical response to stakeholder concerns about the proposed changes?
The Process of Change Management Models Sample Answer
Organisational Change Management Process
Does the current rate of fast-paced technological advancement make organizational change inevitable? The current industries’ market is characterized by tough competition, speedy advancement of technologies which provide no other ways to industries but embrace new technological advancement in their production of products and services. The paper seeks to analyze the impact of organization organizational investing in new technologies to ensure continued survival.
Implementing the advice will have various impacts on the smooth running of the company, adapting the new technology will require funds. This will have an impact on the company financial position as lack of enough funds to implement the new technology will force the company to consider debt or equity financing. The change will also affect the workforce as the new technology will need employees with the relevant skills of using the new technology (Graetz & Smith 2010).
The Process of Change Management Models and Impact on the value creation, modus operandi and value capture elements.
Implementing the changes of investing in new technologies will have impact on the firm value creation. New technology will help company produce quality products which will create value to the customers. The changes will also have impact on the modus operandi of the firm; the production of quality products will improve the company relationship with the distributors and customers. Furthermore, the changes will also have impact on Vaan lue capture element of the firm, production of quality products will attract more demand from the market which will result to higher profit margin to the firm (CAVALCANTE 2014).
The Process of Change Management Models and Individuals, groups or communities of interest affected.
The changes of the firm will affect various stakeholders such as employees and shareholder. Implementation of the new technology will have a negative effect on some employees; the new technology will require employees with special skills which will render the employees not possessing such skills redundant. The change will also affect the shareholders, implementing the new technology will require funds where company will utilize the company profits hence reducing the sum of dividends to be apportioned to shareholders. On the other hand, the firm will opt to borrow loans from commercial banks which will reduce the shareholder dividend earnings the whole period the firm is repaying the loan (Whellan – Berry and Somerville 2010).
What do you expect to be the nature of the general attitudes displayed by each of those stakeholders?
The change will have negative implications to employees and shareholders. As the new technology will require special skills employees who do not possess such skills would oppose the change as it would render them redundant. On the other hand shareholder would not buy the idea as its implementation would have a toll on their dividend earnings.
What specific actions would you anticipate taking in order to ensure an appropriate and ethical response to stakeholder concerns about the proposed changes?
Mayfield (2014) notes that when implementing a change stakeholder engagement and management is vital. Employees who do not possess the required skills the change manager should include training programs which will impart the employees the required skills needed in the new technology.
On the other hand, the change manager should finance the new technology through rights issue, right issue is where the company will raise the required capital through selling its shares to existing shareholders. The rights issue will increase the shareholder stake in the company which in the end will increase their dividends earnings (Brück et al. 2002).
The Process of Change Management Models Conclusion
With the fast paced technology advancement companies ought to implement changes to ensure continued survival. However, the change should identify key stakeholders to be affected and take into account their concerns. Addressing stakeholders concerns will aid in smooth implementation of the firm changes.
The Process of Change Management Models References
Brück, H.-J., Karl, Scholz, A. and Myers, M. (2002) The impact of Organisational change management on the success of a product Lifecycle management implementation – an investigation into the electronics manufacturing industry. Available at: http://www.johnstark.com/hbrueck.pdf (Accessed: 25 August 2016)
CAVALCANTE, S.A. (2014) ‘DESIGNING BUSINESS MODEL CHANGE’, International Journal of Innovation Management, 18(02), p. 1450018. doi: 10.1142/s1363919614500182
Graetz, F. & Smith, A.C.T. (2010) ‘Managing organizational change: a philosophies of change approach’, Journal of Change Management, 10 (2), pp.135-154.
Mayfield, P. (2014) ‘Engaging with stakeholders is critical when leading change’, Industrial and Commercial Training, 46(2), pp. 68–72. doi: 10.1108/ict-10-2013-0064.
Whelan-Berry, K.S. & Somerville, K.A. (2010) ‘Linking change drivers and the organizational change process – a review and synthesis’, Journal of Change Management, 10 (2), pp.175-193