Change Management Report

Item 3:

 

Change Management Report

Weighting: 40%

Length: 2000 Words

 

Managing Change Report: develop a change management and communication strategy incorporating organisation development aims and activities, strategic planning activities, together with an integrated communication strategy.

 

The brief is to develop a comprehensive strategy to effectively communicate a major change in company direction. This change does involve some changes in senior management and additional staff will be inducted into the organisation.

You are to assume that the impending changes are known or feared resulting uncertainty and disruption within the workplace that may potentially affect employee morale, motivation and consequently productivity.

The strategy should cover these basic elements:

· Change management planning process within an organisational development model

· Organisational activities to be engaged – team building, survey/feedback, interventions or others

· Convergence of planning, organisational development and communication into a cohesive strategy

· Implementation tactics to be used and why?

· ‘Future-proofing’ to sustain change and development for the organisation.

 

This presentation must be in an appropriate Report format and must be fully referenced.

 

You should draw on scholarly material to support your response to this assignment. You should reference using either the Harvard or APA referencing system.

 

You must submit a reference list with your assignment. At least six scholarly sources must be submitted.

St Raphael’s Hospital: We care for all.

Letter of transmittal

Dear Dr Richards,

Attached is the final version of the report “Multidisciplinary Communication Strategy for St Raphael’s”.

The main findings of the report are that St Raphael’s appears to have a strong social and emotional framework, responds best when guided by the Board butare empowered to respond locally and favour communication processes that reinforce existing inclusion, identity and territory constructs . The use of a multi-disciplinary change communication strategy will enhance existing strengths of the organisation as well as further realise competitive gains.

The significant contribution of staff, managers, colleagues in the Human Resource group and Union delegates is acknowledged, with appreciation. Collectively, these narratives provided a clear understanding of strengths and weaknesses of prior changes as well framing desired intent and processes for future communication processes. Collectively, it is anticipated that through understanding past change and response that more equitable communication and change processes will occur in the future.

Thank you, on behalf of the Human Resource Group, for the opportunity to work on this report.

LXX DXXX

LXX DXXX

Human Resource Consultant

Transmitted: 24th February 2012.

St Raphael’s Hospital: We care for all.

Title page

Report Title:
A multi-disciplinary Change Communication strategy for St Raphael’s Hospital Group to enhance competitive position

Report prepared for:
Dr Anne Richards

Report prepared by:
XXXX

Human Resource Consultant

St Raphael’s Hospital Group.

Reported presented on:
24th February 2012.

St Raphael’s Hospital: We care for all.

Table of contents

Executive Summary

v

Introduction

1

Part One: Background information

1

Part Two: Proposed organisational Change

5

Part Three: Multi-disciplinary Communication strategy

6

Conclusion

9

Recommendation

9

References

10
St Raphael’s Hospital: We care for all.

Executive summary

Organisations need to achieve a balance between change and inertia, choice and constraint, so as to improve competitive positioning. Both change and inertia are leveraged through policy, process, structure, culture and communication mechanisms. St Raphael’s Hospital Group, a leading not for profit health care provider in NSW, has 12 regional hospitals and provides generalist, palliative and rehabilitation services, has facilitated both inertia and change mechanisms over the last two years, driven by internal and external threats and opportunities. It is in the second year of it strategic plan cycle yet is experiencing inertia in regards to significant strategic imperatives, in particular, crisis and change management responses.

St Raphael’s has distinct organisational features of a strong socio-emotional framework that promotes unity, inclusion and team work; a strong sense of individual identity, efficacy and territory; preferences for local flexibility to implement strategy; perceptions by staff that some management are inadequate leaders in change and non-routine situations; as well as identity subgroups where the frontline staff and middle and senior managers have different perceptions of change. Cumulatively, these responses and constructs appear to be contributing to the state of undesired inertia.

In an attempt to re-energise change the Board has concluded that a fundamental change to the Human Resource Management Framework may result in a resource based competitive advantage. The Board understands that the change process is influenced by a tridimensional construct of individual and group perceptions, the change context and the change process utilised (Oreg,2006). Implicit to the change process is strong leadership capability and a multidisciplinary communication strategy as well as emphasis on the threshold of inertia and change, known as liminality. The recommended change communication strategy is designed to enhance the existing communication structures, methods and features and provides communication alternatives for non- union members, nomination of leaders respected by staff to communicate change messages, situated explicit communication messages for identity subgroups, an understanding of the power of the rituals in change as well as an evaluation phase. A communication strategy as part of a concertive change management plan, provides opportunities for the individual, group and organisation to maximise opportunities and synergies and improve internal and external relationships.

This Exec Summary should be more succinct.

St Raphael’s Hospital: We care for all.

1. Introduction

St Raphael’s Hospital is a leading not for profit health care provider that faces internal and external pressures. The Board believes that competitive advantage will be enhanced by utilising a more dynamic, networked but flexible Human Resource Management model. The recruitment of new senior managers and frontline staff are additional elements of change. The Board have recognised that the Communication Strategy is instrumental to the success of this change.

This report will provide a précis of preceding change interventions, employee responses and communication methods, structures and flows so as to construct an understanding of effective and ineffective change communication strategy elements, specific to St Raphael’s .It will discuss marked organisational features , in particular the strong socio-emotional framework ,sense of individual identity , efficacy and territory as well as recommending a multi- disciplinary communication strategy, that enhances existing communication strategies. The elements of this strategy are based on an understanding that organisational change occurs through a tridimensional construct of individual/group perceptions coupled with the change context and the change process utilised(Oreg,2006). The report concludes with recommendations

Part One: Background Information .

2. Theoretical Context of change

An organisation often deliberately pursues the dichotomous and conflicting mechanisms of change and inertia. This dichotomy may enhance performance and maximise opportunity, as well as reinforce perceptual or pragmatic choice or constraint of routine for employees. The adjustment of choice or constraint through policy, process, structure and culture influences:

St Raphael’s Hospital: We care for all.

Innovation, non-routine response and allowable instability or alternatively predictability, compliance , establishment of more routinized responses and stability. Both states are possibly essential for sustainable competitive outcomes.(Droege, Lane &Spiller, 2011,p96-98; McKendrick & Wade ,2010)

3. Company background

St Raphael’s Hospital, a leading not for profit health care provider in NSW, has 12 regional hospitals and provides generalist, palliative and rehabilitation services, has facilitated both inertia and change mechanisms over the last two years, driven by internal and external threats and opportunities.

4. Précis of Change Interventions from 2010.

4.1The change /inertia dichotomy has been driven bythe 2010-2015 Strategic Plan and pursuant Tactical and Operational plans. The main foci are productivity gains, enhanced community recognition, increased market share, increased teamwork and enhanced crisis and change management responses.

4.2Between 2010 and 2011 there had been three successful productivity interventions driven by Practice Managers, at each site. The communication plan included both formal and natural communication structures and vertical, downward, upward and linear message flow (Altinoz,2009) with the communication methods , adapted from best practice methodologies advanced by Steyn,2003 and Turner, Milligan, Deputy, Whitefield & Stiffler, 2011:

· Mediated chat rooms for suggestions via the Intranet.

· Change related guessing and slogan competitions via the newsletter (hard and soft copy)

· “Waste not, want not” drop in breakfast and dinner Kiosk. Free breakfast or dinner was offered to all staff and union delegates to facilitate voluntary informal discussion about productivity changes between staff and a senior management representative. (Detail: Duration 4 weeks , 8 sessions, 562 staff and union delegates attended , Cost of meals: $2810, $5 per head ) An additional positive outcome was that the Staff Canteen experienced increased sales after catering for the Change Kiosk, which has reduced subsidy cost burdens.

· Team briefs

· Newsletter updates

4.1. In January, 2012, due to inaction by management concerning the Crisis Management Process, the Board engaged a Crisis Management Consultant and adopted all recommendations. The directive occurred without consultation, included an unrealistic timeframe and provided no pathway or support for success.

5. Précis of employee responses to Change Interventions from 2010

5.1Whilst it appears that there was complete cognitive acceptance of the urgency of the Crisis Management Plan, the Senior Management team failed to implement any of the Crisis Management Plan. This may have been due to the nature, scope, scale and magnitude of change: considered transformational rather than incremental and continuous rather than episodic (Dibella, 2007, pp231-235) compared to the three week timeframe dictated by the Board

5.2Negative, mixed, positive or neutral responses to organisational change are mediated by perceptions of “favourability of outcomes, justice, scale, pace and timing…” of the change (Smollan, 2006,pp.143-146). Mixed response was evident as staff accepted some elements of the response but rejected others. The negative responses included manifestations of fear, anger, neglect of task, social network campaigning(via intranet) against the change and union directives to go slow on all non- clinical duties.

5.3 Nominally, staff have perceived that the changes would result in diminished territorial control, connectedness, efficacy, status, socio-emotional connection and value (Rooney, Paulsen, Calan, Brabant, Gallois & Jones 2010). Employees at St Raphael’s believed that established relationships and communication processes for crisis and routine situations were effective, efficient and valuable and would be weakened by the Crisis Management Plan.

5.4The strong sense of territory, network and relationships at St Raphael’s highlight that staff are embedded in a strong social system and this system may have been instrumental in influencing staff during previous changes, played a substantial role in providing cues concerning the change as well as promoting a counteractive inertia response to the suggested change (Brown & Quarter 1994, cited by Oreg, 2006).

5.5As suggested by Chreim, 2002, communication is a major mechanism to influence control and choice. Unlike the productivity initiatives, the communication process was predominately one way, formal, dictatorial, incomplete and did not recognise or utilise the strong social-emotional framework , contributing to both goal and relationship conflict at St Raphael’s (Nutting, Cielens & Strachan 1996).

Part Two: Proposed organisational change

6. Proposed change : Dynamic Human Resource Management Model

6.1 Rationale: …

6.2 Accordingly, the Board agreed to adopt …

Part Three: Multi-disciplinary Change Communication Strategy.

7. Communication strategy to maximise inclusion, territory and identity.

The Board recognises unequivocally that the communication strategy will be instrumental in …

7.1 Rationale for the Communication Strategy.

[2 points here]

…

8. Communication strategy elements.

[5 points detailed with brief justification here]

9. Conclusion

In conclusion, through gaining an understanding of prior change interventions, both effective and ineffective , associated communication strategies and employee responses as well as considering the current strategic intent, organisational features and frameworks , the Board of St Raphael’s concluded that a Dynamic Human Resource Management Model would best equip employees, management and the Board to create a positive socio-emotional and procedural pathway and culture to achieve productivity gains, enhanced community recognition, increased market share, increased teamwork and enhanced crisis responses. The Communication Strategy to implement this new Mode is paramount to its success. The recommended multidisciplinary communication strategy builds on synergies created by the existing communication strategies as well as strengthening the socio-emotional framework through non- union voice mechanisms, considering the role of leaders, understanding identity subgroups, developing managers to leverage rituals for change as well as evaluating the efficiency and effectiveness of the Communication Strategy.

10. Recommendation

10.1Given perceptions of management competencies, as discussed 7.2, it is recommended that the Board and Human Resource obtain additional data through surveys and benchmarking with the aim of aligning management recruitment, development and performance review more closely to strategic intent, competitive positioning and staff expectations.

11. Bibliography

Altinoz, M (2009). ‘An Overall approach to the communication of Organizations in Conventional and virtual offices’, International Journal of Social Science, Vol 4,no 3,pp 217-223, retrieved 19/1/2012 from ProquestCentral

Benson, J (2000).’Employee Voice in Union and Non-union Australian Workplaces’ ,British Journal of Industrial relations, Vol38,no 3,pp453-459 retrieved Proquest Central

Chrein, S, (2002) ‘Influencing organizational identification during major change: A communication-based perspective’, Human Relations, Vol 55, no 9, pp1117-1137, retrieved from Sage publications.

Dibella, A. ( 2007). Critical perceptions of organisational Change, Journal of Change Management,Vol 7, no 3-4 pp,231-242. Doi: 10.1080/14697010701649707.

Droege, S, Lane, M& Spiller,S (2011). Intersecting Three muddy Roads: Stability, legitimacy and Change, Journal of Managerial Issues, Spring 2011,Vol23,no 1, pp96-114 retrieved from Academic Onefile, Infotrac.

Hargie, O& Dickson ,D(2007).’ Are important corporate policies understood by employees? A tracking study of organizational informational flow’, Journal of Communication Management,Vol 11,No 1,pp9-28,retrieved from Emerald ,doi 10.1108/13632540710725969

McKendrick, D., Wade, J., (2009).Frequent Incremental change , organizational size, and mortality in high tech companies, Industrial and Corporate Change, Vol 19, no 33, 619-639.doi10.1093/icc/dtpo45

Morris, S & Calamai, R ( 2009).’Dynamic HR: Global Applications from IBM’, Human Resource Management ,Vol 48, no 4,pp641-648,retrieved from Wiley Inter science ,doi 10.1002/hrm.20302

Nutting, J, Cielens, M, Strachan, J (1997), ‘The Business of Communicating’, Australia McGraw Hill.

Oreg,S (2006) Personality, Context, and resistance to organizational change, European Journal of Work and organizational Psychology,vol15,no 1:1,73-101, doi :10.1080/13594320500451247

Reber, A, (1985) The Penguin Dictionary of Psychology ,England: Penguin.

Rooney, D, Paulsen, N, Callan, V, Brabant, M, & Gallois, C & Jones, E,(2009)’A new role for place identity in managing Organizational Change’, Management Communication Quarterly, Vol 24(1),pp44-73, retrieved from sagepublications,doi10.1177/0893318909351434

Smith, A & Stewart, B (2011),’Organizational Rituals: features, Functions and Mechanisms”, International Journal of Management reviews, Vol 13, pp 113-133 retrieved from Proquestcentral, doi 10.111/j.1468-2370.2010.00288.x

Smollan, R , (2006) ‘Mind ,Hearts and Deeds: Cognitive, Affective and Behavioural Responses to Change’, Journal of Change Management,Vol 6 no 2, pp143-158,doi 10.1080/14697010600725400.

Steyn, B,(2003)’From strategy to corporate communication strategy: a conceptualisation’, Journal of Communication Management , Vol 8,no 2,pp168-183,retrieved from ProquestCentral.

Turner,P, Milligan,L,Crady,K, Deputy,L, Whitefield,C&, Stifler,D, (2011),’Multidisciplinary communication Strategies for Magnet success’, Nursing Management ,April, retrieved from Proquest central.

Vos, M (2009)’Communication quality and added value: a measurement instrument for municipalities’, Journal of Communication Management ,Vol 13, no 4,pp 362-377,retrieved from Emerald, doi 10.1108/1363254091004623

Multi-DISCIPLINARY CHANGE Communication Strategy

This document highlights the competitive, socio-emotional and communication strengths and barriers evident at the St Raphael’s Hospital Group and proposes a multi-disciplinary change communication strategy to further enhance competitive position.

Strengthening St Raphael’s Competitive Position

vi | Page

Contents

3

Executive Summary

5

Preparing for Change

5

Issue Identification

5

Change Strategies

6

Making Changes

6

Stages of Change

7

Emotional Responses

8

Maintaining the Changes

8

Timing

8

Connections and Culture

8

Promotion and Branding

8

Training and Rewards

8

Overview

9

Appendix A: Corporate Restructure

10

References

Executive Summary

Christmas Corp (CC) is an international corporation, with the largest market share of Christmas. Located in the North Pole, the CEO, Mr Santa Claus, manages this business which employs over 400 elves and is most noted for its “Gift for every Child” program. Due to the Global Financial Crisis and other technological factors, productivity has been lower than projected. However, the overall prospects for the company are good, with the North Pole recently introducing Equal Opportunities in the work place for women and elves under four feet tall.

Christmas is celebrated by over a half of the world’s population (adherents.com n.d.) which gives CC opportunities to expand their current industry and allow for further growth into the future. With 2.1 billion Christians and another 1.1 billion people with secular beliefs, the target audience is enormous. December 25 is a national holiday in most countries around the world (with the main exceptions of Israel and China) and is celebrated in a variety of ways. Consumerism has ensured that Christmas Corp will continue to be able to provide its core product with reasonable projected sales. However, Mrs Claus has made it clear she wants to embrace the new equal work opportunities and with Mr Claus’ sanction has decided to set up the “Christmas for Adults” program.

The new program means that Christmas Corp will need to implement a range of changes to ensure the smooth expansion and crossover that will occur with the creation, delivery and implementation of Christmas gift giving. While the current situation allows for one person (with eight reindeer) to deliver gifts to every house on the planet on a single evening, the new agenda will bring in changes to the production line, delivery and list-making. The new scheme allows for both Mr and Mrs Claus to undertake deliveries, thus creating a more efficient system. This will necessitate a reallocation of staff and changes to the status-quo of how the company is run on a day to day basis.

Mr Claus was offered Canadian citizenship in 2008 (TorontoSun.com 2008) however, Mrs Claus will need to apply for citizenship to expedite her return to the North Pole after deliveries. Any other staffing changes to the delivery run will also need to ensure they meet with international protocols and are legally permitted to enter a variety of countries. Computer generated gifts could be sent electronically such as computer games, gift cards and cloud subscriptions. You must have enjoyed writing this!

The new program will also be introducing products that have both tangible and intangible qualities, meaning a change to how the current mechanised production line is run. Where, previously, gifts given were all created in the factory by elves, new adult gift lines will include items such as employment promotions, gender-specific pregnancies and some minor healing of health issues. Existing production capabilities will need to be stepped up to allow for the additional products being created, and to ensure they do not mix across programs.

Recent technological advances have also been adopted by CC, with emails now considered an acceptable form of communication between Santa and his fans. This will require additional staff to maintain and improve the Internet connection as well as specialised Public Relations staff for Social Media and to reply and act as the public face of Santa. The changes in technology also mean that the list-making necessary for determining who is ‘naughty’ and who is ‘nice’ will be more efficient and can easily be collated on computer. With the addition of the new program, it will be necessary to add to this list to allow for adults, however it is important to note that the criteria for ‘naughty’ and ‘nice’ for adults will differ from the requirements for children.

With the multitude of new modifications being implemented by Christmas Corp, it will be essential that it manages these changes to improve staff morale, streamlines existing systems and improves productivity.

Lovely but it needs to be more concise for an Executive Summary.

Preparing for Change

Heraclitus, a Greek philosopher, is credited with the saying “Change is the only constant” and while Christmas Corp has resisted change for several hundred years, it has now decided to embrace the opportunities that exist for expansion. However, the adjustments to how the company is structured, managed and promotes itself are only one segment that needs to be addressed. Equally important is how these changes will be communicated to the employees of Christmas Corp to improve morale, inject enthusiasm and acceptance for these changes and increase productivity.

Issue Identification

Before making any amendments to a corporate policy or direction, it is important to identify any issues that may arise so a plan can be formulated that will lessen any damage to the staff, productivity or brand of a company (Boin, Kofman-Bos & Overdijk 2004, pp. 111-5). There are several issues which may need to be addressed by Christmas Corp as the new system is put into practice and these have been identified as resistance to change; cultural acceptance; non-verbal cues and mixed messages; job security; and staff morale and motivation. By recognising these potential hazards, clear steps can be taken to minimise their damage.

Change Strategies

Christmas Corp has followed the same structure for hundreds of years so implementing a new way of management is likely to invoke initial apprehension and discontent. Communication that is open, transparent and continual will assist in alleviating any concerns that employees may have (Prastacos et al. 2002, pp. 55-8). Resistance to change by employees is closely linked with their fears regarding their self worth, their value to the company and job security (Chawla & Kelloway 2004, pp. 486-92). The existing trust between the CEO, the new Vice President and their elves should assist in easing tensions caused by the changes but care should be taken to monitor the behaviour of the workers. The new hierarchy in Appendix A details the changes recommended for the chain of command of Christmas Corp.

The new structure will open up innovative employment opportunities for the elves to improve their station in the workplace and this should boost morale (Waddell & Sohal 1998, p. 544). The creation of new departments means the elves can be retrained to specialise in fields that interest them, and allow for additional workers to be employed, boosting the economy of the North Pole.

To enable openness, Senior Management will not be permitted to take any annual leave during this time of adjustment so they are seen to be easily available and involved. Listening to feedback, giving continual updates and answering questions forthrightly are simple ways that management can be seen to be active participants in the change they are embracing (Conger et al. 1999, pp. 87-99).

Making Changes

Stages of Change

Christmas Corp is likely to experience three main changes stages as identified by Lewin’s Change Model (Mindtools n.d.-a). These are Unfreeze, Change and Refreeze. Likened to ice, the theory expounds that you unfreeze your systems, remould them in the way you want them to be and then refreeze them into the new shape.

The awareness of this model, when used in conjunction with the Change Curve, can successfully boost the effectiveness of Christmas Corp’s transformation and will reduce the period of uncertainty and unrest generated. The Change Curve demonstrates the amount of resistance and unhappiness that occurs as time progresses (Mindtools n.d.-b).

One way to initiate the Unfreeze stage is by creating a mini-crisis or a sense of urgency (Mindtools n.d.-b; Pearson & Mitroff 1993, pp. 49-53). Creating a compelling message that shows why the current situation cannot continue is often the only impetus needed to begin the change process.  This may result in people feeling off-balance and evoke strong reactions but this can be used as a motivation for embracing the new agenda. By generating a new vision for the company, excitement and interest can be encouraged (Mindtools n.d.-a).

Emotional Responses

During Stage 2 of the Change Curve, there is a range of emotional responses to the disruption caused by the actioning of the anticipated changes. Regular, open and honest communication by senior management during this time will further trust and transparency; both of these factors will reduce rumours and empower the Christmas Corp workforce to become involved and accepting (Kotter 1996, p. 59).

As Stage 3 approaches, it is anticipated that morale will increase as understanding and acceptance are fostered. Christmas Corp will not be at 100% productivity at this stage, however, it will be making gains over the previous period. During the final phase of rebuilding, trust, commitment and dedication ensue. To facilitate this, Christmas Corp need to anchor the new changes to the culture of the company and introduce a reward system to highlight efficiency and productivity (Mindtools n.d.-b).

Maintaining the Changes

Timing

Timing is crucial to effectively manage the change and support it within the company (Axley 2000, pp. 20-1). Employees need time to adjust and understand the changes being imposed on them and their interaction and feedback is critical to the success of their execution. Kotter (1996) warns that claiming victory too early often leads to a failed change project. During this period, finetuning and streamlining of current systems is suggested to make sure that the change is solidified for the long term.

Connections and Culture

When the company forms a connection between itself and the employees during this time of change, it will be rewarded with intense loyalty and this, in turn, improves productivity (Marshak 1993, pp. 49-52). Strong leadership will cement the core cultural change within the company itself, and the vision should be embedded into everything Christmas Corp communicates. Demonstrating the behaviour expected of employees and openly addressing concerns will aid in showing the integrity behind the change vision (Hussey 1998, p. 435).

Promotion and Branding

After Christmas Corp embraces the change, it will be necessary to enhance the branding and inform the public of the new direction the company is taking. While informing the employees is crucial before and during the change, once the change has been executed and solidified, it is also essential to inform the public of the fresh image the company is now pursuing (Reast 2005, pp. 7-9). This serves two purposes: firstly, it informs and invigorates the brand in the eye of the public and secondly, it reiterates the change vision directly to the employees and their families, further endorsing it as a change they are actively involved in.

Training and Rewards

The re-skilling of employees during the change phase allows for specialisation. However, it is imperative that training continues to maintain the new corporate vision. Training establishes work ethics and expectations as well as emphasises the importance of the change process (Kotter 1996, p. 59).

Overview

Christmas Corp has a long and robust history that can be developed further with the expansion planned. These changes will open Christmas Corp to new opportunities and a larger market. When changes are managed following appropriate strategies and care is given for the stakeholders impacted, the brand can strengthen its external and internal practices as well as provide an exciting workplace that will continue to grow for future generations.

Appendix A: Corporate Restructure

Current Corporate Structure of Christmas Corp

New Corporate Structure to be implemented

References

adherents.com n.d., Major Religions Ranked by Size, viewed 22 November 2011, .

Axley, SR 2000, ‘Communicating change: Questions to consider’, Industrial Management, vol. 42, no. 4, pp. 20-1.

Boin, A, Kofman-Bos, C & Overdijk, W 2004, ‘Crisis simulations: Exploring tomorrow’s vulnerabilities and threats’, Simulation & Gaming, vol. 35, no. 3, p. 378.

Chawla, A & Kelloway, EK 2004, ‘Predicting openness and commitment to change’, Leadership & Organization Development Journal, vol. 25, no. 6, pp. 485-98.

Conger, JA, Spreitzer, GM, Lawler, EE, Bennis, WG, ., UoSCCfEOC & ., UoSCMSoBLI 1999, The leader’s change handbook: An essential guide to setting direction and taking action, Jossey-Bass.

Hussey, D 1998, ‘Words, sentences and self delusion’, Strategic Change, vol. 7, no. 8, pp. 435-6.

Kotter, JP 1996, Leading change, Harvard Business Press.

Marshak, RJ 1993, ‘Managing the metaphors of change’, Organizational Dynamics, vol. 22, no. 1, pp. 44-56.

Mindtools n.d.-a, Lewin’s Change Management Model: Understanding the three stages of change., mindtools.com, viewed 14 November 2011, .

Mindtools n.d.-b, Using the Change Curve: Accelerating change, and increasing its likelihood of success, Mintools.com, viewed 14 November 2011, .

Pearson, CM & Mitroff, II 1993, ‘From crisis prone to crisis prepared: A framework for crisis management’, The Executive, pp. 48-59.

Prastacos, G, Söderquist, K, Spanos, Y & Van Wassenhove, L 2002, ‘An integrated framework for managing change in the new competitive landscape’, European Management Journal, vol. 20, no. 1, pp. 55-71.

Reast, JD 2005, ‘Brand trust and brand extension acceptance: the relationship’, Journal of Product & Brand Management, vol. 14, no. 1, pp. 4-13.

TorontoSun.com 2008, Santa Claus declared a Canadian citizen, Sun Media, viewed 22 November 2011, .

Waddell, D & Sohal, AS 1998, ‘Resistance: a constructive tool for change management’, Management Decision, vol. 36, no. 8, pp. 543-8.

Assignment Cover Sheet??
Contents
Executive Summary 2
Introduction 3
Background Information 3

Problem Identification / Impetus for Change

4
Strategies for Change: Preparing for Change 5
Change Management 5

Organisational Engagement

6
Communication Strategy 6

Implementation: Making Changes

7
Sustainability and Continuous Development: Maintain the Changes 7
Conclusion 9
Recommendations 9
References 10

√

√

Executive Summary

The term ‘too big to fail’ is a belief that some organisations should effectively be shielded from collapse as they are of significant economic importance through beneficial financial and economic policies (Richards, 2016, p.28). While Australia Post has historically had a profitable and sustainable business model, the growing popularity of digital communications has driven changes to consumer behaviours.

New paragraph This has identified the need for strategic reform at Australia Post and has enabled them to expand into eCommerce and eGovernment solutions to avoid failure. Proposed Change Management Strategies included teleological and organisational culture change through the Organisational Development Phases to allow effective adaptability to organisation revitalisation (Samson & Daft, 2015, p.454).

NP The strategies include preparation for resistance through a force-field analysis scenario plan and crisis planning. A large-group intervention strategy will allow for organisation engagement, while an ambidextrous approach communication strategy will create centralised and procedural standardisation to achieve strategic alignment.

NP Further, stakeholder engagement strategies enable a cohesive approach. Kotter’s eight Stages of Change provide a tactic implementation strategy to communicate and enable change throughout its life cycle. Finally, sustainability and continuous development strategies maintain the change, and enable Australia Post to engaging in ‘future-proofing’ creating uniformity.

This is quite good, but Exec Summary needs to be in short paragraphs for quick access to key information.

Introduction

The term ‘too big to fail’ is a belief that , some organisations should effectively be shielded from collapse as they are of significant economic importance through beneficial financial and economic policies (Richards, 2016, p.28). Australia Post identifies as one of these organisations, however technological advancements have brought about radical changes to consumer behaviours, placing significant pressures on its continued success. Major changes in direction at Australia Post are therefore required to avoid failure. Firstly, Australia Post need to diversify the workforce in terms of age and generational influences and secondly, strategic reform to expand into new markets and meet external forces. This Change Management Report will provide background information on Australia Post to investigate the impetus for the changes. The focus will then be on developing a comprehensive strategy to effectively communicate the major changes in company direction. This will incorporate a comprehensive communication strategy through application of existing theories. It concludes by providing recommendations for implementation and sustainability of the plan for the ongoing success and viability of Australia Post. √

Background Information

Australia Post is a self-funded government enterprise responsible for Australia’s postal services. It operates Australia’s largest retail network and employs over 36,000 employees across 4,000 post outlets (Australia Post, 2015). Established over 200 years ago under ownership and operation of the Commonwealth Government of Australia, it underwent a corporatisation process in 1989 and has since been governed by the Australian Postal Corporation Act 1989 (

Philipson

, 2016). The Act requires it to meet certain legal and statutory obligations under Community Service Obligations (CSOs) when providing mail services to the Australian public (Customer Service Charter, n.d.). It is also required to conform to performance standards that meet the social, industrial and commercial needs of the community (Customer Service Charter, n.d.). While Australia Post has historically had a profitable and sustainable business model, the growing popularity of digital communications has driven changes to consumer behaviours and called into question its traditional business model (FAQs: Australia Post Reform, n.d.).

Problem Identification / Impetus for Change

The culture ethos at Australia Post was developed when mechanistic organisational structures were considered the most effective business structure, with pyramid shaped levels of hierarchy with decision making and power concentrated at the top (Richards, 2016, p.11). Australia Post reflects this structure strongly today with rigid communication lines and authority based on position (Richards, 2016, p.11). This organisational structure results from a classical perspective as the focus was to achieve efficient, machine like functionality throughout the organisation (Richards, 2016, p.29). This structure has imposed barriers to implementing transformative change and as a result, Australia Post missed the opportunities presented in the recent technology revolution and the information revolution (Richards, 2016, p.36). √

The resulting drivers from external factors include environmental changes such as technology advancement and an increase in competition, with the introduction of globalisation, factors in which Australia Post are not currently adapt to compete. Strategic changes include improving the flow of information; effective redistribution of resources; improving competitiveness; improving entrepreneurial potential; business expansion and increasing co-operation, factors which also are restricted by Australia Post’s current business structure (Richards, 2016, p.58). In summary, society has changed radically, however the culture ethos and business model at Australia Post has remained unchanged (Richards, 2016, p.27), identifying a substantial problem as an impetus for change.

Further analysis into problem identification at Australia Post recognises an aging workforce within the organisation. The lack of age diversity therefore identifies as a further challenge and impetus for change, as continuous knowledge infusion through age diversification can drive organizational innovation, create high-quality problem solving, superior decision making, creativity and implement change more efficiently (Jisung & Seongsu, 2015). Australia Post is therefore planning a strategic reform to expand into eCommerce and eGovernment solutions as a new source of profit generation, a move which will see the recruitment of new staff, an opportunity Australia Post hope to utilise to diversify the workforce in terms of age barriers.

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Strategies for Change: Preparing for Change

Change Management

The strategic reform identifies as a teleological change, in response to a build-up of external pressures that will include the downsizing and transitioning staff into different roles (Ryan, 2015), changes in senior management and an influx of additional staff being inducted into the organisation. The impending changes are known within the organisation and are feared, which is resulting uncertainty and disruption within the workplace, affecting employee morale, motivation and consequently productivity. A teleological model utilises goal formulation, implementation, evaluation, and modification of goals to adapt to the learning experience of the organisation (Tessier & Otley, 2012). √ However, to achieve this teleological change, a substantial organisational culture change is required as generational diversity will require a major shift of the entire organisations norms, values, attitudes and mindset (Samson & Daft, 2015, p. 451; Graetz et, al, 2011, 41) to accept change and new younger employees entering the organisation. By utilising Organisational Development, systematically planning the change process through behavioural science and knowledge techniques will allow for effective adaptability in organisation revitalisation (Samson & Daft, 2015, p,454).

Progressions through the organisational steps of organisational development allow for successful attitude and behaviour changes (Samson & Daft, 2015, p.456). The first stage is unfreezing, which involves communicating specific problems so that need for change is recognised (Samson & Daft, 2015, p. 456) as there must be a perceived need for change (Samson & Daft, 2015, p.459). This can be achieved by identifying and communicating the performance gap. Utilising a SWOT analysis, that is identifying the strengths, weakness, opportunities and threats, can create recognition and understanding the need for change within an organisational development model. Preparation for resistance can be determined through a force-field analysis scenario plan, to identify the forces which drive and resist change.√ Resistance include self-interest, a lack of understanding and trust, uncertainty and a difference in assessment and goals (Samson & Daft, 2015, p,461). S√ elective implementation tactics will also provide an effective strategy to prepare for change resistance (Samson & Daft, 2015, p.461) with consideration for the three stages of crisis planning; prevention, preparation and containment.

Organisational Engagement

To achieve Organisational Development and overcome the status quo (Graetz, et. al., 2011, p76), a large-group intervention strategy will allow for the entire system of the whole organisation to be rapidly transformed in a timely matter (Samson & Daft, 2015, p.455). The strategic reform includes downsizing, retraining and reallocating employees. An analysis of Psychological Contract Theory establishes that downsizing may be considered a violation of the mutual trust that exists between employees and employers, which can lead to employees reducing their discretionary work effort and negatively impact organisational goals (De Meuse & Dai, 2013). Good point. To reduce the likelihood of breaking this mutual trust, the large group intervention will enable participants from all parts of the organisation to come together to discuss and plan for change collectively (Samson & Daft, 2015, p.455). Communicating humanistic considerations to identify the need for change through utilising participative management as it creates a desire for employees to participate in the solution (Anacleto, 2014). √ Offering voluntary redundancies, will remove violation of trust and the burden of “survivor syndrome” on remaining employees (De Meuse & Dai, 2013).

Communication Strategy

The second stage of organisational development includes communicating the plan and vision for change (Samson & Daft, 2015, p.457), combining the convergence of planning, organisational development and communication into a cohesive corporate level strategy. The large group intervention strategy will take on an ambidextrous approach, to implement innovative change through centralised and procedural standardisation (Samson & Daft, 2015, p.436). √ To achieve this monumental change, the traditional planning approach of a central planning department will be utilised, enabling guidance to be provided to the managers and employees on a branch level for strategic planning activities (Samson & Daft, 2015, p.299). Branch levels are then able to utilise the guidance for innovative approaches to planning in respect to more functional-level strategy (Samson & Daft, 2015, p.300). This approach will allow for the strategic objectives to be effectively and efficiently communicated throughout the organisation to achieve strategic alignment and defining goals for success measurement (Samson & Daft, 2015, p.312). This is consistent with Barnes & Schmitz’s (2016) recommendation that change programs should be designed and implemented in ways that create stakeholder engagement directly. √

For a cohesive strategy, stakeholder engagement should also play a key role in the changes (Braica, 2013). To re-align its business model and structure to the environment in which it operates, engagement with stakeholders should be targeted to ensure its proposed changes would be accepted and suitable (Dunphy & Stace, 1993). A national stakeholder engagement program should achieve synergy and create value through exploitation of the core competencies (Samson & Daft, 2015, p. 313) through educating, informing and engaging all stakeholders. √ Mayfield (2014, p.68), advises that listening is the ‘most powerful influencing strategy’. He further proposes that organisations must show that they are genuinely interested to break down any barriers to change and encourage a focus on the need for change, principles which apply to both internal and external stakeholders. This is good but include some specific strategies re implementation process across all levels of organisation.

Implementation: Making Changes

To continue, the ‘Changing’ phase of Organisational Development, implementation of tactics and tools will develop a framework for the changes to be made. Kotter’s Eight Stages of Change provide a tactic for programed implementation to strategically address the changes and overcome turbulence, generally experienced during this rapid and unpredictable phase. Firstly, through creating a sense of urgency, motivation for change will be created through broad and dramatical communication, resulting in aggressive cooperation throughout the organisation and as a method of challenging the status quo (Appelbaum, et. al., 2012). The second stage involves creating a coalition of change champions or leaders, demonstrating visible and continuous support from the top, throughout the organisation for strategic transformational change (Appelbaum, et. al., 2012; Brown and May, 2012). Change leaders must establish direction, align the people, motivate and inspire and finally produce change (Graetz et. al., 2011, p.145). Development and communication of a clear vision to empower and encourage (Appelbaum, et. al., 2012), are essential stages of Kotters framework and will enable strategic alignment throughout Australia Post and additionally demonstrate preventative measures to reduce change resistance by overcoming potential uncertainty. Kotter also recognises empowering people culture and short term achievement will instil confidence in the change, therefore a bottom‐up approach through empowered front line employees is important for successful cultural and organisational change (Appelbaum, et. al., 2012).

Sustainability and Continuous Development: Maintain the Changes

The final two stages focus on the “Refreezing” phase of organisational development and include consolidation and efforts to maintain momentum for change with employees beginning to regard the changes as normal. Anchoring the change prevents old habits returning through demonstration and reflection the benefits of change (Appelbaum, et. al., 2012). √ The ‘Open Systems Theory’ principle of Homeostasis defines an organisation will strive for stability and routine, achieving sustainably following change. Utilising the Kotter’s framework as a tactic for implementation will enable both organisational structure and culture change to support the strategic reform of the organisation revitalisation and generational diversification at Australia Post. Continuing stakeholder engagement by communicating completion of the change will firstly, establish the brand in the eye of the public and secondly, reiterates the change vision internally, further endorsing the finality and completion of the change. Continuous investment into ongoing staff training and development will ensure it maintains a workforce with the skills and competencies required to maintain the changes implemented and remain competitive in the constantly changing environment (Miles & Snow, 1994; Xu et. al., 2006). √ This will enable Australia Post to engaging in ‘future-proofing’ to sustain the change, creating uniformity. Comment by Anne Richards: Wrong word. Rephrase

Yes but include specific ongoing monitoring strategy. How will this be gauged?

Conclusion

In conclusion, radical changes to achieve age and generational influence diversification and an organisational restructure to enable strategic reform for expansion into eCommerce and eGovernment, Australia Post must achieve this through teleological and cultural change. Engaging the three Organisational Development Phases including Freezing, Changing and Refreezing will enable effective adaptability to the organisation revitalisation. Applying a crisis management approach, crisis planning including prevention, preparation and containment will address resistance to change within the organisation. Application of large-group intervention strategy will enable the entire system of the whole organisation to be rapidly transformed in a timely matter, with stakeholder engagement creating comprehensive strategic alignment. Implementation of the changes through Kotter’s eight Stages of Change will enable successful cultural and organisational change to accept the strategic reform and diversification incentives. Communication initiatives to consumer stakeholders will establish change and continuous investment into ongoing staff training and development through the momentum of the change initiatives will drive stainability and continuous development to sustain change and allow Australia Post to remain competitive.

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Recommendations

1. Apply the change management strategy of Organisational development to achieve attitude and behaviour change (Samson & Daft, 2015, p.465).

1. Engage in scenario planning and crisis management to consider external influences and internal responses to potential changes (Konno, Nonaka & Ogilvy, 2014).

1. Apply Kotter’s eight Stages of Change for programed implementation and large-group intervention strategy to rapidly transform the organisation to strategically address the changes and overcome turbulence of the strategic reform.

1. Continuously engage in stakeholder engagement communication strategies to enable co-creation of value and strategic alignment with external pressures (Davis et al., 2011).

1. Invest in continuous staff training and development to ensure continuous development and sustainability (Buchko, 1994; Day-Yang, Shou-Wei, & Chou, 2011).

1. Continuously re-assess alignment with the external environment and technology developments to implement regular incremental changes, allowing revolutionary change (Davis et al., 2011).

√

References √ Journal titles in italics always

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12 COM21 Assignment #3