Transformational Change Management Plan1Transformational Cha.docx
- 1. Transformational Change Management Plan 1 Transformational Change Management Plan 8 Transformational Change Management Plan Tracey Urban HRMT440-1402B-02 Instructor: Ericka Smith June 16, 2014 Transformational change management plan Introduction Off shoring is a form of outsourcing where by some operations and activities of a company are carried out in another country with an aim off reducing labor expenses or to enter new markets among other benefits associated with it (Grossman, 2008). The overall basic effort is cutting on costs. Off shoring of the production activities of the company affected many of the stakeholders. First, most of the employees were misplaced due to the lay-offs when the production facilities were moved to another country. Most of them were not able to secure other new jobs and this in turn affected the local economy of the domestic country. Off shoring also enabled the business to access new market areas with new clients. This is by bringing the products closer to the businesses target market and also boosting the brand of the business in the new territory. The clients were also affected by the plan. This is due to the ambiguity in the requirements of the clients and their deliverables due to off shoring.
- 2. The change was initiated by the loss of business to a competitor. The loss of business required a radical change in the business model of the company and the company planned for off shoring. The transformational change will enable the business to reposition itself in the market (Weerakkody, 2011). The transformational change has been well accepted. This is because of the general acknowledgement that this process will allow the company to take advantage of the savings that will be associated with it. Off shoring will provide benefits such as lower costs of products and services to the clients and this will offset the financial issues associated with the huge layoffs of the long term employees. Transformational Plan Shell 1. Executive summary Objectives Change management recommendations 2. Integrated change management Gather input Develop strategy Plan Execute Risks 3. Change management strategy and plan of activities Approach and recommendations Team structure
- 3. Interaction Change network Change agents Change readiness survey 4. Stake holder high level analysis External Government Employees 5. Appendices A change is considered to be a transformational change if it alters the basic nature of a firm. These changes occur when there is need for a company to improve its performance, cut costs or turn around crisis thus it is a key source of competitive advantage for a company. Some of the organizational changes that are considered to be transformational changes are restructuring, reengineering and downsizing. Firms cannot just keep what they have been doing because in a business environment, there is a stiff competition in the market and to be competitive and up-to0date with the current market, a firm has to check its performance with other firms in the market, hence to see if there is need for the company to change, upgrade or put more efforts on their performance and strategy. If a firm keep on doing what it has been doing then they will be always lagging behind thus it is the role of the management in the transformation change is to provide cues about what is important for everyone in the Company to follow.
- 4. The senior leaders are required to shape a change vision and set targets to be achieved that are connect to business outcomes. They also have the role of diagnosing the company’s ability to meet the set targets as well as deliver improvement initiatives that enhance performance, build employees’ capabilities and also change the organizational way of thinking as well as their behaviors. There are other easier alternatives to accomplish the goal of the competitive such that the firm can cope with the hypercompetitive of the business environment and these includes; outsourcing; short-term staffing; disaggregation; empowerment; delayering; reduction of internal and external boundaries; flexible work group and lastly networks/alliances. Change management refers to the systematic approach of dealing with change from both individual and organization perspective. Change management has the aspects of controlling change, adapting change and effecting change (Mento, 2002). In organizations change management involve defining and implementing technologies and procedures to deal with change. There are several theories of change management that an organization can adopt. This paper will discuss some of these theories. The first theory is the John Kotter’s change theory. Kotter acknowledged eight steps that should be taken so as to successfully manage change (Mento, 2002). These steps are: form urgency, form powerful coalition, have a clear vision, communicate it, allow others to act on it, create short term wins, build on change and institute change into the organization culture. The advantage of this theory is that change is built on the foundation of communication. However it may take an organization to manage change using this model. The other theory of change management is the Lewis model.
- 5. This theory involved three major activities i.e. unfreezing, change a then refreeze. Unfreezing is the initial stage of change (Burnes, 2004). It involves breaking existing status quo before building new ways of doing things. In the ‘change’ stage employees look for new ways of operation and start acting in new ways. Refreezing cones after people have embraced change. This is characterized by job descriptions that are consistent, stable organization chart etc. this theory is easy to understand. Finally we have Nadler’s congruence model that emphasizes more on the change process between inputs and outputs (Mento, 2002). Inputs are the external factors e.g. government and competition. The outputs are the services and products. This model involves first looking at each component and comparing and analyzing how it relates with others. This theory is very flexible as it’s not specific on approaches of designing organizational processes. However this model can be expensive and long especially for large corporations. The best way to ensure successful change implementation is by fully involving the employees in the change process. The management should communicate and connect the workers with the change. Also the business system should sufficiently support the change. A communication plan refers to a road map that is used by an organization to convey messages to desired audience. It is a document that describes the stakeholders that need communication, what is communicated to them, who communicates and the means of communication used (Raffoni, 2000). A communication plan is an important tool when it comes to human resource management, marketing, public relation management and corporate affairs. It is important for an organization to spend some time to plan its communication if it is to realize its objectives. This will look into the various stakeholders that require communication from the organization.
- 6. The first stakeholders that need to be communicated to are the shareholders. Being the owners of the company they need to know the progress of the company and whether it is generating them wealth. The information about the performance of the organization is conveyed by the management through financial statements (Vos & Vos, 2004). The shareholders also require information about shareholders meetings especially the annual general meetings. This information is communicated by the company secretary through notices that are usually sent via post office or text messages. The other stakeholders that require information from the organization are company investors. Investors include creditors, preference shareholders among others. These stakeholders need information on the performance of the company to be assured whether the organization will be able to meet their debts when they fall due (Vos & Vos, 2004). This information is disbursed by the management through financial statements. Also, employees are other stake holders that need constant communication from the organization. This information is crucial in making them aware of what is required of them. Some of the information communicated to them includes feedback after performance appraisals, job descriptions, and notices of meetings among others (Vos & Vos, 2004). This information is passed on by the human resource manager through means such as email, feedback, notices, internal memos, face-to-face etc. References Grossman, G. M., & Rossi-Hansberg, E. (2008). Trading tasks: a simple theory of offshoring. American Economic Review, 98(5), 1978. Weerakkody, V., Janssen, M., & Dwivedi, Y. K. (2011).
- 7. Transformational change and business process reengineering (BPR): Lessons from the British and Dutch public sector. Government Information Quarterly, 28(3), 320-328. “What Changes in Organizations” Retrieved from; http://highered.mcgraw- hill.com/sites/dl/free/0073404993/579428/Sample_Chapter.pdf Kotlyar, I., & Karakowsky, L. (2007). Falling Over Ourselves to Follow the Leader. Journal of Leadership & Organizational Studies, Vol. 14, No. 1, 38-49 Burnes, B. (2004). Kurt Lewin and the Planned Approach to Change: A Re‐appraisal. Journal of management studies, 41(6), 977-1002. Mento, A., Jones, R., & Dirndorfer, W. (2002). A change management process: Grounded in both theory and practice. Journal of Change Management, 3(1), 45-59. Vos, M., & Vos, O. (2004). Setting up a strategic communication plan. Uitgeverij Boom. Raffoni, M. (2000). Managing your virtual company: Create a communication plan. Harvard Management Communication Letter, 3(4), p7.