ORGANISATIONAL CHANGE MANAGEMENT BIZOPS ENTERPRISES

Table of Contents

Identification of Need for Strategic Change 2

Identification of Change Requirement 2

External Environment Study 2

SWOT Analysis 3

Change Management Plan Objectives 4

Change Strategy Formulation 4

Highest Priority - Change Requirement 4

Comparison of Current in Future Situation 4

Cost Benefit Analysis 5

Findings from overall Risk Analysis: 5

Change Readiness Assessment: 5

Change Project Management Plan: 6

Human Resource Development and Management: 6

Manufacturing process and Technology: 6

Financial Cost Conservation: 6

Change Management Evaluation, Resistance & Risk Management 7

References 10

1.0. Identification of Need for Strategic Change

In the given case the operational cycle of BiZops Enterprises is prone to changes a number of times according to the dynamic business developments as well as changes in the industry and other influencing external factors. The objectives of change management in such a case should be of such nature as well as essence that they need to act as effective resolutions to existing bottlenecks in the company. The main drivers that would contemplate and result in the required changes needs to be identified on the basis of discussion with all the stakeholders which would be implemented in a seamless manner after identification of risk elements and identifying the identification as well as mitigation actions. On careful consideration of the business plan and requirement of change presented by BIZOPS enterprises we can understand that the most crucial part of a change management plan is the process ofmonitoring the pre-determined milestones and the achievement of the same in a timely manner.

2.0. Identification of Change Requirement

The success of a change management plan is a holistic process which encompasses all factors that are related to production management, creation of current and fixed assets, cash flow cycle, human resource enrichment and many more. This paper is a study and creation of a Change management report pertaining to BizOps Enterprises owing to a number of challenges that the business house had been undergoing in the past few months.

2.1. External Environment Study

Upon analysing the external environment using technical resources such as PEST we can reach to the following broad observations

From the market study perspective, due to the slack in the company the competition is steadily encroaching the market share. This need sound change management policies to safeguard the loyalty created over the decades and to acquire fresh markets

The political perspective pertaining to the geography of operations presents a very controlled economy with a number of laws as well as regulations in place, this might lead to the company developing as well as imposing stringent policies pertaining to compliance, specifically during the period of change management.

Looking out from an economic perspective the economy in which the company operates is prone to sudden movements which might be beneficial or detrimental for the company, a clear plan of action needs to be developed for either of the scenarios.

In case of the social perspective the company as a part of the change management plan needs to include environmental protection as an active part of their CSR in order to create an unique image and conquer more business.

2.2. SWOT Analysis

Strengths:

Experienced Market Player

Strong Management Principles

New Technology Available

Established Customer and Supplier

Weaknesses

Dwindling Market Share

Human Resource Value Dearth

Technology Crunch

Challenges in Supply Chain Management

Threats:

Loss of Market Share

Loss of valuable Human Resource

Reduction in Productivity

Interruption in Cash Flow Cycle

Loss of value of manufacturing technology and fixed assets.

Opportunities:

Utilisation of modern technology by implementation.

Amplify the impact of lean management principle by regularising supply chain

Identify and capture new geographical markets with new technology

Change Management Plan Objectives

1.Orient the vision of the organisation in a manner so as to suit the change management goals

2.Reengineer the products so as to capture the market share back from competition

3.Recruit, train, deploy and retain human resource of required calibre at agreeable cost to the company

4.Counselling and creation of optimal human resource policies

5.Creation of key performance indicators and motivating staff through monetary as well as non-monetary initiatives

6.Implementation of procured technologies in an optimal manner

7.Create effective supply chain management practices for cost effective solutions

8.Redesign of manufacturing processes for cost effective production methods

Change Strategy Formulation

This change management process is being planned and perused based on the collection of primary data from the books as well as records of the company, the discussion with all related stakeholders, detailed study of all related communication with vendors and customers . All plans are assessed for related risk and mitigate plans wherever necessary have been placed in a flexible manner to manage dynamic market as well as internal environment.

3.0. Highest Priority - Change Requirement

Creation of morale boosters for the existing staff and aiding them in managing the work load.

a) Comparison of Current in Future Situation

Currently the morale of the employees has been stated to be at record low and the provision of additional resources that can be trained, conducting frequent town hall sessions for motivating the employees and conducting incentivising events in a periodical manner would improve this by many folds. This would lead to a confident and satisfied work force that would contribute their optimal capacity.

b) Cost Benefit Analysis

Costs

Benefits

Longer working hours and related stress

Imprved employee morale and confidence

More overtime pay – Cost to company

Technical more adept staff

Efficient and increased productivity

c) Findings from overall Risk Analysis:

The main risk factor in this case is focussing and rightly implementing the training needs and monitor the performance of these new resources in an objective and real time manner until the process flow is regularised. This leads to higher level and stress and hence may lead to quick snap outs among the employees. Only tangible rewards upon reaching the desired level of performance can lead to faith among the employees and this example can motivate a larger work force to work towards their goals and reach the planned targets.

4.0. Change Readiness Assessment:

a) Change readiness assessment can be defined as that process with the aid of which the perception of the company as whole for the proposed change is being studied in an objective manner. There are a number of tools that are widely used across globe, a few that can be used in the current situation would be the European aid capacity development toolkit and tool 6 for the purposes of certain qualitative assessments. The main factors that would act as restraining forces would be attraction and retention of qualified staff, alterations to manufacturing techniques, implementation of market related changes as well as negotiating supply chain alteration for suiting the lean management practices. Consolidating all the efforts and synergising them to reach the envisioned, regrouped goals of the organisation. The main advantages at this juncture would be the trained and experienced staff that is an asset for the company, the established market share and goodwill as well as the strength of manufacturing process.

Change Project Management Plan:

Human Resource Development and Management:The start of this process would be to identify the cost of hiring optimal human resources required for meeting the operational and financial goals of the stake holders. Since the organisation is in finance crunch, the strategy to hire would be to hire retired and experienced hands for heading the company at a retainer fee and hire fresher for execution level jobs at an economical level with assured career development. This would ensure that the best resources can be hired at economical costs. is set in a seamless manner.

Manufacturing process and Technology:The technology of the organisation is standard and has been working well for past few decades. However, the technology has faced a few challenges in the recent times which has rendered the company not growing to the fullest potential. Redesign of the manufacturing process needs to be initiated with cost effective as well as short term manner with the help of new technology that has been purchased but yet to be implemented. Productivity and effective human resource development goes hand in hand. The main risk / bottleneck in this area would be to initiative the technological development with the present staff quality and management support. Similarly the new technology that has been purchased but has not yet been commissioned by the company is as good as sunk cost that has been acquired as well as depreciated but devoid of any economic value. Hence, any possible value addition that can be procured from the implementation of the technology as against the costs need to be measured and decision taken at the earliest.

Financial Cost Conservation: Cost conservation is an important facet of the entire change management process which is pervasive in all the areas that are being looked into. In this case the company would be required to manage costs in all possible manner even to the minimalist of the perceptions on a consistent basis alongwith prudent monitoring and reporting systems. The main challenge that is being perceived in this particular sub section of the plan is the inculcation of the cost control mentality among every resource as well as creating an impactful monitoring system in place.

Change Management Evaluation, Resistance & Risk Management

The aspects of Evaluation and controlling, Resistance negotiation and Change Effectiveness is presented below.

Change Management Measure

Key Managerial Personnel Responsible

Monitoring Measures

Resistance Negotiation Measures

Change Effectiveness Evaluation Measures

Human Resources recruitment, Training and other related strengthening measures

Sayo Yoshida, Managing Director Human resources, supervised by the CEO

Collection of productivity efficiency qualified in objective numbers.

Recruitment of experienced as well as fresher as per plan described earlier.

Measurement of effectiveness of the employee induction programs by collection and analysis of related details

Resistance from existing employees for change, offering perks in return of performance.

Challenges in recruiting process, can be negotiated among fresher offering rich job experience.

Measurement of Productivity and qualitative income statement numbers.

Employee Turnover measures over a period of time.

Internal tests as well as other assessment exams.

Manufacturing Process and Technology Implementation

Managing Director Business Operations, supervised by CEO

Production log on a daily basis and especially on methodical variation implementation.

Resistance for additional measures by employees negotiated for promise of better pay once company earns more revenue.

Production volume quantitative as well as qualitative analysis.

Supply Chain Management for Lean Management

Joint responsibility of MD Finance, operations as well as retail

Measurement of ratios such as debtor days and creditor days and analysis of working capital cycle.

Resistance negotiation related to suppliers and customers, who would be offered better credit times and quicker payment cycles in response for discounts.

Reduction of cost of working capital measured over a set accounting period.

Cost Reduction and Control

MD Finance, supervised by the CEO

Creation of budgets to the lowest level and cost management on singular expenditure basis

Resistance negotiation pertaining to cost control, to be countered with explanations of long term benefits

Increase in profitability owing to reduction in expenses, to be displayed in periodical P&L statements

References

Aiken, C., & Keller, S. (2009). The irrational side of change management. McKinsey Quarterly, 2(10), 100-109.

Booth, S. A. (2015). Crisis management strategy: Competition and change in modern enterprises. Routledge.

Hamel, G. (2008). The future of management. Human Resource Management International Digest, 16(6).

Hansen, M. T., Nohria, N., & Tierney, T. (1999). What’s your strategy for managing knowledge. The knowledge management yearbook 2000–2001, 1-10.

Hughes, M. (2007). The tools and techniques of change management. Journal of change management, 7(1), 37-49.

Kettinger, W. J., Teng, J. T., &Guha, S. (1997). Business process change: a study of methodologies, techniques, and tools. MIS quarterly, 55-80.

Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kuipers, B. S., Higgs, M., Kickert, W., Tummers, L., Grandia, J., & Van der Voet, J. (2014). The management of change in public organizations: A literature review. Public Administration, 92(1), 1-20.

Nelson, R. R., &Winter, S. G. (1997). An evolutionary theory of economic change. Resources, Firms, and Strategies. A Reader in the Resource-Based Perspective. Oxford ua S, 82-99.

Waddell, D., &Sohal, A. S. (1998). Resistance: a constructive tool for change management. Management decision, 36(8), 543-548.

Contact this candidate