5 - Implementing Change

• Effective Leadership during a period of change involves:

  • Building a Shared Vision
  • Providing ongoing communication
  • Providing ongoing support
• Building a Shared Vision - refers to developing a goal for the change process that all members of the business believe in
• Ongoing Communication - is vital to ensure employees are aware of the changes being made in the business and feel secure with their position
• Ongoing Support - can include counselling and training to ensure employees feel comfortable and equipped to adapt to the change process
• LEADERSHIP : COLES

  • Build a Shared Vision -developing a clear objective for Coles staff, and communicating the benefits the ADC will have for the business.
  • Providing ongoing communication - adopted two way communication where they provide employees with consistent updates relating to the ADC, as well as receiving feedback from employees.
  • Providing ongoing support - training provided to employees who were being redeployed as a result of the ADC. Counselling may have also been provided to the employees who were anxious about the impact to their job security.
• Staff training - increasing the skills and capabilities of employees.

  • ⇩ level of staff turnover
  • ⇩ rates of staff absenteeism
  • ⇧ rate of productivity growth 
  • ⇧ number of sales
  • ⇧ percentage of market share
• Staff motivation - the level of willingness employees have in working toward a shared objective.

  Achieved through, Performance related pay, Career advancement, Support strategies.

  • ⇧rate of productivity growth
  • ⇩level of staff turnover
  • ⇩rate of staff absenteeism
• Change in Management style - changing the approach taken by a manager in making decisions and communicating with employees.

  • different styles effect different KPIs
• Change in Management skills - used based on the requirements/performance of the business. The way skills are used depend on the management style adopted by the manager.

  • different skills effect different KPIs
• Cost cutting - the reduction in unnecessary business expenses.

  • ⇧Net Profit Figures
  • ⇧Rate of Productivity Growth
• Increased investment in technology:

  • Automated Production Lines, Robotics, CAD/CAM, AI, Online Services.
  • ⇧Rate of productivity growth (through increased efficiency)
  • ⇧Percentage of market share (lower costs of production ⇒ lower price for customers)
  • ⇧Net Profit Figures
  • ⇧Number of Website Hits
• Improving quality - Achieved through Quality Control, Quality Assurance, TQM

  • ⇧Net Profit Figures (higher quality product = increased sales)
  • ⇧Percentage of Market Share 
  • ⇧Number of customer complaints
• Initiating Lean Production Techniques - POTZ. Used to minimise the level of wastage.

  • ⇧Level of wastage 
  • ⇧Rate of productivity growth (decreased waste = decrease resources needed for same level of output)
• Redeployment of resources - reallocating natural, labour or capital resources to alternate areas of the business.

  • ⇧Rate of productivity growth (employees and other resources will be redeployed to areas where they can support production)
  • ⇧Net Profit
• Innovation - implementing unique strategies and procedures to improve the final product.

  • ⇧Number of Sales (higher quality product = increased sales)
  • ⇧Percentage of Market Share
  • ⇧Net Profit Figures
• Global Considerations - Global sourcing of inputs, Overseas Manufacturing, Global Outsourcing.

  • ⇧Net Profit Figures (lower costs of production = higher profit)
  • ⇧Percentage of Market Share 
  • ⇧Number of Sales
  • ⇧Number of website hits
• Corporate culture is the shared values and beliefs of a business and its employees.
• Senge's Learning Organisation

  • A learning organisation promotes the adaptability of all of its members through the 5 principles: systems thinking, mental models, shared vision, team learning, and personal mastery.
  • Senge contended that all five principles must be present for a business to be considered a learning organisation.
• Systems thinking - considers the interrelationship between the parts of a whole system.

  • Managers in a learning organisation will consider the flow-on effects that occur to all parts of the business when a change is made to one part
• Mental models - existing assumptions and generalisations that must be challenged so that learning and transformation can occur in an organisation.
• A shared vision - an aspirational description of what an organisation and its members would like to achieve.
• Personal mastery - the pursuit of personal growth and learning that aligns with one’s values and purpose
• Team learning - the collective learning that occurs when teams share their experience, insights, knowledge, and skills to improve practices.
• Low-risk strategies are measured management approaches that gradually encourage employees to accept and participate in a business change

  • Communication
  • Empowerment
  • Support
  • Incentives
• Communication as a low-risk strategy involves managers openly and honestly transferring information to employees, and listening to their feedback so that employees are fully aware of the reasons for, and impacts of an upcoming change.
• Empowerment as a low-risk strategy involves managers providing employees with increased responsibility and authority during times of change.
• Support as a low-risk strategy involves managers providing employees with assistance as they move from current to new practices.
• Incentives as a low-risk strategy involves managers providing financial or non-financial rewards to encourage employees to support change.
• High-risk strategies are autocratic management approaches used to influence employees to quickly accept and follow a business change.

  • Manipulation & Threats
• Manipulation as a high-risk strategy involves influencing employees to support a proposed change by providing incomplete and deceptive information about the transformation.
• Threat as a high-risk strategy involves forcing employees to follow a proposed change by stating that there will be negative outcomes if they fail to do so.
• Lewins 3 Step Change Model

  • Unfreeze, Change, Refreeze
• Unfreeze - involves determining the purpose of the change process, and creating the need for change
• Change - involves moving the business toward its desired state
• Refreeze - Anchoring the change to the culture of the business. Can be done by updating written policies to reflect the change process, providing ongoing support and training for employees, and celebrating the success of the change process
• Effect on Owners:

  + Increased Return on Investment

  + Connect with Employees

  If change is bad:

  - May experience personal and financial implications

  - May become overwhelmed with stress

  - Resented if employees made redundant
• Effect on Managers:

  + Chance to develop new skills

  + Financial / Non-Financial rewards

  + Increased authority and responsibility

  - Increased workload can lead to stress

  - loose job security if change is not sucessfull
• Effect on Employees:

  + Opportunities for Career Advancement

  + More job & financial security (or less depending on the change)

  + Rewards

  + Training to improve skills

  - Increased workload can be stressful
• Effect on Suppliers:

  + Demand may increase if business requires more resources

  - Business could Switch to different supplier

  - May need to adjust processes to meet the businesses needs
• Effect on General Community:

  + Creates Job Opportunities ( - or redundancies)

  + Business can contribute to local community

  + Businesses with a popular reputation can attract customers to other local businesses

  - Environmental impacts