BSBINN601 Lead And Manage Organisational Change

QLG is a family company with a strong and proud 75 year tradition of manufacturing leisure goods in Queensland. QLG built its reputation on solid commitment to quality, life-time employment and supplier loyalty. QLG had been very successful in the past and its business model was proven. QLG’s culture reflected its small family origins. The patriarchal style of leadership, characterised by centralised decision making, chains of command and tight control had served QLG well. QLG ensured its success by maintaining rigorous attention to its business model of quality and tight control. The business was centrally ruled by appointed executives (internally recruited) and operated on hierarchical mode of governance. Buying, production and design decisions were decided centrally and announcements would cascade down the line to the production floor. This had worked well over the years and until recently had been a guarantee of profitability. QLG’s strong internal focus blindsided it to a rapid shift in consumer tastes and the emergence of new rivals. QLG did not see the change coming until too late and was now in trouble. The CEO was convinced that QLG’s culture had to change. But more than a culture change was needed.

Two years ago, QLG’s main rival had outsourced its production function incorporating modern supply chain management practices. Since then the rival had grown market share by 20% and reduced overhead costs by 60%. Competition was fierce and getting sterner. New entrants to the market were further eroding Queensland Leisure’s market share. She knew that Queensland leisure had to change, but how did she come to this end? Last season a production/ design fault cost QLG dearly. A previous reliable supplier delivered a sub-quality product that had to be redesigned and subsequently replacement suppliers sourced and funded. Faulty products were recalled, damaging QLG’s brand. The chronic delays in overcoming the product’s design faults meant that QLG was forced to re-release late in the season. At the end of the season, QLG’s shelves were full, and surplus stock had to be sold at a heavy discount costing QLG dearly.

Target Market

QLG’s target market is middle class homeowners within 30km of the store.

Trends

• There has been a significant rise in the popularity of “outdoor rooms” which are now entrenched in contemporary lifestyles and building design. Market research suggests that many local residents are considering including an outdoor room in their renovation plans.
• Population growth in QLG’s footprint is stable at 1% per annum.

Industry Growth

• The industry is growing slower than the economy. This means that in order for companies to survive and make an economic profit they need to increase market share.
• As a result, the industry is becoming increasingly concentrated as firms who are unable to increase market share eventually close down.

Production Technology

• QLG’s production technology is fairly crude. Whilst this increases the appeal of some of their products because they are unique and hand-made it also increases their costs significantly.

Organisational Objectives

• Restore market share.

Create value for financial stakeholders by achieving growth above industry average and the rate of GDP.

Tasks:

1.

1. one change opportunity
2. one improvement idea.

5.

6.

7. Explain the strategies you have developed to communicate the change to all relevant stakeholders, including:
   
   a.Any education/training required
   b.How your communications contribute to embedding the change?
   c.How your communications contribute to the long term development of continuous improvement and innovative thinking at QLG?

8. a. List the possible barriers to change that may impact on your project.
   b. Explain possible strategies to address the barriers you identified.
   
   
9. a. Review and evaluate the change management project plan and explain what modifications are needed to achieve objectives.
   b. Explain how you will capture insights, experiences and ideas for improvements that may be included in QLG’s knowledge management systems and future planning.

Introduction

Queensland leisure goods is a family and home-made company business. It has been continuing since last 75 years to manufacture leisure goods. Queensland has proved to provide full time employment to people and also commits to provide good quality products. The company follows a good business model. The company follows patriarchal leadership style. QLG ensues that quality business model is the main reason of success. All the decisions related to buying, production and design decisions are announced centrally. The focus of QLG is to shift the consumer tastes. In the below report, the opportunities related to change and making improvements are identified. The discussion continues how managers take various steps to utilize the opportunities.

1.

(a)

SWOT analysis of Queensland leisure goods-

Strength

• QLG has good reputation due to commitment of quality products.
• QLG produces unique and hand-made apparels.
• The centralized decision making and patriarchal leadership style contributes to quality business model of the company.

Weakness

• QLG has not considered the rapid shift of consumers because the rivalries have started outsourcing new technologies.
• QLG`s shelves were not sold yet and was full. QLG had to sell the whole stock at very low prices to clear off the stock and retrieve the fresh arrivals. QLG has to impose heavy discount that costs to company heavily.

Opportunities

• With the changing trends, “outdoor rooms” has become highly popular for operating business activities. The company has the opportunity to consider an outdoor room as a renovation plan.
• The company has the opportunity to outsource new technology, which will help the company to reduce the overall production cost.

Threat-

• With the increasing rivalry and cut-throat competition, company might face reduction in its overall market share and profitability at large.
• the chronic delays is not able to overcome faults in product`s designs. According to fashion, no company can release outdated materials. But due to untimely supply, QLG has to re-release the previous season`s stock.    

(b)-

Opportunity for change

1. Population growth is stuck for QLG`s footprint at 1%. The company should offer more variety to increase the footfall of customers.
2. The company should contact with appropriate suppliers, because it has suffered from supply of faulty and damaged goods.

(c)-

Opportunity for improvement

1. QLG should focus recruiting fresh blood. It should help to restructure the management workforce.
2. The company can try to become competitive in comparison to its existence because there are less number of ventures in this sector.

2.

Efforts to prioritize the opportunities for changes and improvement with input from managers-

Managers have to make new business strategies to accomplish the changes to improvement. Managers define practical BPM (business process management) strategies to identify how these changing and improving processes will continue. Selecting process should be guided by basic principles. Reportedly, only 20% organizations have the potential to bring unique competitive advantages. Identify the corporate strategies to develop change management models. Manager should strive to make roadmaps for improvements. To increase the footfall in the stores, the manager should make marketing plans. As far as the technological development is concerned, directors should adopt new machinery and implement them so that they can expand their target market.

3.

The testing and trialing of your new ideas will be supported-

Management would approve the new product after testing and trailing. The top manager would ask the production managers to make appropriate prototype, model, and sample of a product. Sales manager would make marketing strategies such as advertising campaigns to distribute these products to customers. When the customer start preferring the new product. The testing of new hand-made goods will be proved when the quality testing is successful. These prototypes are tested through various processes such as demo of a washing powder and how it assists in cleaning the cloth so smoothly, without spoiling the quality of the cloth (Hadzhikoleva, & Hadzhikolev, 2016).

4.

Simple risk assessment and a cost-benefit analysis

(a)-

Opportunity for change- The CEO wants to reform culture and change organization`s existing business model. The organization needs to restructure organization structure by recruiting new people for emerging new business roles.

(b)-

Opportunity for improvement- Technology is an efficient way to reduce the overall cost of production. To achieve cost effectiveness in a production, once the sample of hand-made good is ready, the copy of hand-made good can be produced fast through machines (Bromiley, McShane, Nair, & Rustambekov, 2015).

According to the case study, the organization should change maximize stock of footwear to increase the footfall of the customers. The risk associated with the increasing the footfall of customers, the customers who seek for various apparels will find it difficult. In order to reduce the cost, company will increase the production of hand-made apparels, which may not match fashion trend (Yang, Huang, Hsieh, Yu, & Lai, 2016).

5-

Stakeholders that will consult to identify requirements and opportunities for changes that support organizational objectives-

(a)-

The CEO of the company managed to think of large-scale changes such as restructuring the organizational structure, changing hierarchy control to make organization adapting and flexible, which will help the company to restore market share and achieve organizational objectives. Employees and shareholders who supported the changes as this organization creates value for stakeholders by achieving growth above the industry average and resulting in increased rate of GDP by working in a home (Kusrini, Harjanto, & Yuwono, 2015).  

(b)-

Two experts that would be suitable to seek further advice from-

Consultant advisor- The Consultant advisor advised not only the need to changes in business model but also the need to improve technology. Technical support in new and low ventured has become necessary. To develop the skills related to improve and innovate the technology. Expertise provides training to the employees (Stickle, 2016).

CEO- As per the stated case study, the company need to make culture changes. To achieve a standing commitment and built confidence among the customers, CEO has been looking forward to introduce a new business model. The CEO said that the company require fresh blood to bring new ideas. The CEO communicated changes to the organization and its stakeholders. CEO could manage to get a positive response on the part of employees. 

6-

Proposed changes or improvements that are given priority and develop a change management project plan. As a change management model, the most preferred would be ACM (Arcus Change Methodology). 

7.

Strategies you have developed to communicate the change to all relevant stakeholders-

7(a)- 

Employees must be provided with the training sessions to adopt the technology change.

7(b)-

Communications contribute crucial role in embedding change through meetings, presentations, and training sessions. Effective communication and convincing with proper proofs and successful testing can lead to fulfil the change adoption.  

7(c)-

Communication between employees contributes to the long-term development of continuous improvement and innovative thinking because communication helps the employees to better accept the new ideas. Continuous improvement projects provide an opportunity for employees to think out of the box (William, 2018). Clearly communicating the long-term strategies to everyone in the organization will come up with continuous team improvement in the efficiency of teams, which not only assist in organizational growth but also contributes to individual growth.   

8

(a)-

There can some factors which lead to resistance to change due to opposing employee`s behavior such as communication barriers and budget barriers. Unknown current state, competitive forces and complexity in the external environment may not allow changes management process.

(b)-

The management can resolve these issues related to communication and budget barriers. A manager should strive to discuss the change benefits and available resources with the employees. Employees who are thinking of negative impact of changes may get convinced. Manager should conduct training sessions to adopt changes. Moreover, to overcome budget barriers, the company should plan changes before 5-6 years. Therefore, it can be supported by the previous available reserves.  

9

(a)-

In the above plan, ACM (Acrus change methodology) change model is used to execute and develop advance technology to achieve the long-term objectives. The need and form of training employees can be modified according to technology, which is to be implemented for greater and efficient productivity. 

(b)-

As per the case study, the employees have responded positively to the culture changes and new business model. Moreover, the employees will positively learn to operate the new technology. It was very important for the company to get employee support for business model changes. 

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