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Key Forces Of Organizational Change

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Organization works in a dynamic environment and therefore it is necessary that the anticipation of changes is done in a manner that is beneficial for the company (Beer, 1997). The case of Lion Nathan, Alcoholic Beverage Company has been discussed that has applied the measures to sustain the business growth and become competitive in the markets. The company employs a total of 7500 employees. The case study will be discussed in line to the relevant organizational strategies and the nature in which they have been implemented in Lion Nathan case.

Key Forces of Organizational Change


External Forces

External forces are referred to as the forces that are outside the purview of the organization. These forces are demographics, changes in technology, changes in the markets, and political and social forces (Burnes, 2004). Lion Nathan employs 7500 people, in which 7000 people are across Australia and New Zealand. The company is the largest purchaser of agricultural products. The company employs more than 1800 Australians and 1400 New Zealanders.

Internal Forces

The work force in case of Lion Nathan showed aggressive defensive style of leaderships. The desire to avoid failures is higher in the managers and they drove the employees harder to work. In order to manage talent in a proper manner, Lion Nathan developed its talent management application. Before 2001, the company was not using any such method.

Kotter’s Eight Step Plan


Creation of Sense of Urgency

For creation of the sense of Urgency there should be commitment from all ends of the spectrum. This particularly happened in Lion Nathan where the leadership in order to create a change that will have lasting impact involved each and every person in the organization to commit for the change (Stout, 2007). The core values of the company that were derived by the integrity and passion of the company were inclined with the behaviour of the individuals.

Forming a Coalition

The initiatives for the change were done by Bob Barbour that adopted plans and design to implement the SHRM initiatives in the organization. HR function was kept in the core and he created a formation that would add value by ensuring that people work in teams. He helped in the HR functional implementation and aligning the work of the people with the agenda of the organization.

Creation of Vision for Change

For the creation of the change in the organization the focus was built on the cultures and behaviour dynamic in nature. The company pin pointed the culture and behaviour through the past workshops held on the development of leaders. There was a need for the company to adopt the leadership styles that were constructive in nature (Lion Wine, n d).

Communication of the Vision


The next step was to create a constructive management style. The communication in regards to the leader’s accountability was communicated. Leaders were made to understand the model and to adopt the same for the benefits of the company. Assessments of their leadership styles were done by the Life Styles Inventory and Organizational Cultural Inventory.

Removing the Barriers

The adoption of the right leadership approach and moulding the leaders through workshops was the next logical step by the organization. This was done by assessment of self reported thinking styles and perception by other people.

Creation of Quick Wins

The transformation in the working of the company that was achieved by talent management and transformation in leadership styles and 360 degree feedback resulted in steady growth of more than 6 percent. The expansion was also made possible into fine wines and RTD.

Build on Change

Realignments were made and the accountability increased. The company in order to build on the changes brought the 10 core behaviours that were imbibed in the performance management processes.

Changes in Corporate Culture

The company remains committed and invests in the core strategic facilities, people, and assets.

Cultural Learning


New leadership regime was developed by the adoption of constructive leadership styles by the leaders. The changes in the accountability and the responsibility were created. The new culture of Lion Nathan has evolved after the OCI system. This system includes the behaviour that the people feel is essential for the organization. New model includes coaching to the employees and making them more accountable. The key strengths of the company is to provide the employee chances to grow, this is done by training the employees, and identification of the talent.

Another advantage of the company is the engagement of the employees and supportive behaviour of the company that ensures that the company meets the needs of the customers (Fox, 2008). The company uses technology and keeps evolving it for the betterment of the HR system. The HR systems are evaluated on the basis of metrics. This includes the cost of hiring, and tools like the customer and engagement of the employees. The edge for the company is its ability to engage the people and the customers (Lawrence, 2011).

Leadership Theory

Behaviourism theory gets its relevance in case of the organization under study. The behavioural theory states that the leaders are made and not born. On the basis of the practices of the company some key attributes are demonstrated. The company believes that the work of the leaders influences the motivation levels and the style of working of the employees. The company has grown in terms of the planning and implementation of the three pillar strategy created by Bob Barbour, which includes the creation of the objectives, and management of people and the processes. The company policies have been effective due to the fact that the strategies made were all for the long term business perspectives of the company. The development of the constructive style leadership has been made in Lion Nathan. The changes in the company have been effective through a series of the behaviour and cultural changing measures (Lion Sustainability Report, 2013). The challenges were given to the leaders of Lion Nathan so that they develop their own constructive styles. The company believes that the leaders are important part for the culture, and therefore the HR strategies were realigned. The leaders were given coaching and lessons so that they were able to create their own styles. The approach of the company has been Behaviour * Results model. The model is pretty clear not only are the results the behaviours also accessed by the company. The rewards to the people are given not only the basis of the performances but also on the basis of the constructive approach that is required in the approach. The new culture is valuable in the sense that the people are heard in the organization that creates the viability in the organizational working (Cooke & Lafferty, 2008). There has been significant impact of the leadership efforts of the company and that has been a significant experience on the company. The company is always engaging the clients and the people together and that has been the biggest advantage of the company. The company manages the stakeholders and there interest.

The success of the company can be seen from the people engagement survey. The company achieved the responses of 85% of the respondents who mentioned that the company is the global high performance company. This survey was done in the year 2013, and that made the improvement of 2% from the year 2012. The company through its leadership measures uses effective tools to engage the employees and well being of the people are ensured. This brings the group in the highly ethical company. The advantage of the company lies in the fact that they work on the basis of the authenticity and increasing authenticity in the organization.

Employee Strategies to Motivate the Employees


Expectancy Theory

Expectancy theory measures that motivational factor of the person and the acts are determined by that motivation factor. In case of Lion Nathan, the community platform is built on the three pillars that is sociability, passions and integration of the people. The culture of the company motivates the employees to work in a better and constructive manner. The culture is measured by the honest opinions and the people communication. The more blue the company is the better it is for the culture as it supports constructive atmosphere among people. The internal and external communication channels help the people to remain engaged in the company. This motivates them to work harder and in a innovative manner. There is the policy of engagement of the employees and the stakeholders with the organization core values. This creates the bonding between the employees that creates the motivation of the employees. The company makes efforts to invest among employees. These programmes also called the learning spaces are beneficial for the motivation of the employees.


Lion Nathan has been innovative and engaging for the stakeholders. The plans of the company have always focused on the performance and the leadership qualities in the people. The constructive values in the people and the effective communication are beneficial for the company’s growth. Both external and internal processes are catered by the company. This results in the bonding between the employees and the company that has been noted in various surveys. The company therefore has been successful in the approach of leaderships and creating leaders that are long lasting and make decision that have long lasting benefits for the company.


  1. Cooke, R A & Lafferty 2008, Culture Transformation Achievement Awards [Online] Human Synergistics International, Available from:, Accessed 23 August 2014.
  1. Fox, C 2008, Chasing the froth: Lion Nathan CEO Rob Murray, Australian Financial Review Boss, pp 38–41.
  1. Lawrence, A 2011, Chapter 7. In Graetz, F., Rimmer, M., Lawrence, A. & Smith, A., Managing Organizational Change, Australia: John Wiley.
  1. Lion Sustainability Report 2013, Sustainability Report [Online], Available from: lionco., Accessed on 23 August 2014.
  1. Lion Wine n d, About us [Online], Available from: , Accessed on 22 August 2014.
  1. Stout, B 2007, Leadership Development Restores Lion Nathan’s Roar, in T+D Magazine, 61(12), pp 68–70.
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