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BSBINN601 Lead and Manage Organisational Change Assessment 1 Case Study

Assessment 1 – Case Study

  1. Identify the needs for strategic change through analysis of strategic plans contrasted with the practices as defined in the scenario. You may prefer to use SWOT analysis but this is optional.

Business environment in recent years is highly competitive due to changing technology and changing customers’ sophistication. In order to maintain business growth and market interest, it is imperative for a business to analyse external forces and aligning the business objective to cope with the changes (Khan & Hashim, 2014). Meanwhile, some changes in organisation associate to improve current business operation in order to gain competitive advantages in its business environment (Teixeira & Werther, 2013). Based on the case study, Bounce Fitness experienced lack of standardisation in operations, due to that reason, the training sessions’ quality delivered deteriorated, thus resulting high customers’ dissatisfaction. Meanwhile, this issue caused Bounce Fitness unable to set systematic future planning for all centres as each centres made independent decision in operations. Due to all those reasons, it is crucial for Bounce Fitness to re-strategize the business operation to rectify problems associate to customers’ satisfaction. With strategic plan implemented, it may help Bounce Fitness to standardize its operation and build good national reputation as Fitness Australia provide high standard code of practice. Fitness Australia provide clear guideline on the method of training session being conducted(Fitness Australia, 2017).

  1. Discuss any patterns or trends in the external environment which impact on the achievement of the organisations change management objectives.

The fitness trends in Australia change dramatically over the years because people starting to pay attention to their health. This trends result fitness wearable tech sales to continue grow and predicted to worth at least $34 billion by 2020. Due to that reason, celebrity trainers’ marketing in Instagram attracted a lot of customers, however according to Berry (2016) mentioned that there are lot of celebrities training lack of professional training knowledge. Meanwhile, Schlossberg (2016) also stated the same problem of Instagram fitness trainers may have, these trainers lack of knowledge in proper training method may cause adverse effect to customers’ health. Even professional stated this problem may arise if approaching Instagram trainer but people still continue patronising these trainers. This marketing trend result organisation change management in acquiring professional training standard lack of important sense to some trainers who had high popularity.

  1. Identify major operational change requirements due to performance gaps, business opportunities or threats, or management decisions for this change management initiative.

The major operational change requirements required by Bounce Fitness at the moment is standardizing all its training activities corresponding to Fitness Australia’s code of practice. Furthermore, another issue regarding performance gaps was Bounce Fitness required to evaluate all employees’ professional knowledge, ensuring all trainers acquired the minimal requirements, Certificate III in Fitness. According to Fitness Australia standard, Bounce Fitness’s trainers required to complete at least 20 CECs (Continuing Education Credit) every two years. Therefore, Bounce Fitness need to ensure all trainers of the centre to maintain such education needs.

Main threat arising from this change was existing trainers without qualifications will resist change. In several cases, when change occurred, two type of forces appeared to reshape an organisation equilibrium, known as driving force and restraining force. Driving force was Bounce Fitness management and retraining force refers to the people affected by changes such as under-qualified trainers (Mersha, 1997). Due to that reason, it is highly important for Bounce Fitness management to persuade and establish an understanding with trainers who resist changes.

  1. Discuss how you will review and prioritise change requirements/opportunities with relevant managers. Conduct web research and identify the name of an external specialist or expert who can help you identify major change requirements and opportunities in this case.

Change management plan for Bounce Fitness consist three major part: 1.) restructuring decision making procedure, 2.) redesign training program align with Fitness Australia standard, and 3.) training and educate under qualified trainers. The main change requirement should be prioritised by Bounce Fitness was restructuring decision making procedures, rather than having each centres making decision autonomously, management should set a decision making protocol for all centre. With this change prioritised, Bounce Fitness can resolve the current managing problem due to lack of control, furthermore integrated overall development project and objectives set by headquarter. Follow by redesign training program so that Bounce Fitness can resolve problem associate to low customer satisfaction rate. As these changes take place, managers could attempt to discuss with under qualified trainers regarding the importance of going further education to cope with Bounce Fitness future planning.

In change management, it often involve with redesign or reshaping existing organisation’s culture. According to Velasquez and Hussey (2013) stated that a successful organisation change highly associate to organisation culture management. In order to reshape current organisation’s culture to align with change requirements, Bounce Fitness may consider hiring an external consultant to assist on this matter. Based on web search, Culture Code Consulting firm located in Australia is highly reputable in helping Bounce Fitness to manage change. Dr. Timothy Foster was the lead consultant of Culture Code Consulting firm with former teaching qualification at Ridley College, Melbourne (Culture Code Consulting, 2017).

  1. Complete a cost benefit analysis for high priority change requirements/opportunities.

A cost benefit analysis (CBA) is a tool use to analyse the cost and benefit derive from change, it account both quality and quantitative measure of the project(The Economic Times, 2017).

Cost Benefit Analysis

Costs

Year

0

1

2

3

4

5

Development costs

Centralised Management Software

4,000

500

500

500

500

500

Redesign Fitness Program

5,000

Trainers' Education & Training

8,000

1,000

1,000

1,000

1,000

1,000

Total Costs

17,000

1,500

1,500

1,500

1,500

1,500

Discount Factor (15% p.a.)

1.00

0.87

0.76

0.66

0.57

0.50

PV Cost

17,000

1,305

1,140

990

855

750

Cumulative PV Cost

17,000

18,305

19,445

20,435

21,290

22,040

Benefits

Tangible Benefits from New Systems

Improve management and documentation

500

500

500

500

500

500

New customers for fitness program

2,000

3,000

3,500

4,000

4,000

Increase customers due to professional trainers

1,500

1,500

2,000

2,500

2,500

Intangible Benefits from New Systems

Improve decision making process

2,000

2,500

3,000

4,000

5,000

Higher company reputation

2,000

2,000

2,500

2,500

3,000

Higher customers' satisfaction

200

500

500

1,000

1,500

Total Benefits

500

8,200

10,000

12,000

14,500

16,500

Discount Factor (15% p.a.)

1.00

0.87

0.76

0.66

0.57

0.50

PV Benefits

500

7,134

7,600

7,920

8,265

8,250

Cumulative PV Benefits

500

7,634

15,234

23,154

31,419

39,669

Cumulative PV Benefits + Costs

- 16,500

- 10,671

- 4,211

2,719

10,129

17,629

  1. Complete a risk analysis, identify barriers to change and agree and document mitigation strategies.

Risk analysis table was used to identify and assess the possible risk that may occurred during implementation of change management. The risk will be rated based on likelihoods of occurring and the vulnerability of the consequences. The risks rating from 1 to 8 are consider low risk, 9 to 13 are consider average and 14 to 20 is high risk.

Consequences

Insignificant (1)

Minor

(2)

Moderate

(3)

Major

(4)

Catastrophic (5)

Likelihoods

Almost Certain (5)

Likely (4)

Redesign fitness program conflicts

New fitness programs not in demand

Managers of each centre resist central decision making

Possible (3)

Management software breakdown

Unqualified trainers resist training

New management system failure

Unlikely (2)

Rare (1)

Qualified trainers unwilling to participate education program

Mitigation strategy refers to the method of handling risk unacceptable by the management based on risk management analysis. Mitigation strategy aim was to minimise the impact of the risk or reducing the possibilities of occurring during implementation stage(Kossiakoff & Sweet, 2003). Several approaches can be used as mitigation strategy such as monetary incentives, coercive (punishment), promote collaboration through communication and gain understanding through joint discussion with all Bounce Fitness’s staff members.

  1. From whom will you seek approval and confirm the change management process?

In order to ensure change management process successfulness, it is necessary to present the implementation plan to all relevant personnel. First of all, the plan required external consultant to review all associate criterion to examine the feasibility of the plan. After gain approval from external consultant, the report will be presented to chief finance officer from finance department to examine the budget practicability. Next, the report will be present to chief executive officer to confirm and approve the implementation. The rationale behind these steps were to ensure the plan is effective and meet all financial commitments.

  1. What resources will you need and how will you report to and gain information from relevant managers?

During reporting and information gathering phase, two important criteria need to be taken into account; 1.) All relevant materials associate to changes must be present in the report and 2.) Promote participation and collaboration of manager through mutual understanding and tolerances. Relevant resources include performances analysis stating the progress of all fitness program development, sales data, customer complaint report, interval plan budget report and trainers’ education progress. These resources will be compiled into a major report for all managers, meanwhile during presentation period, a simplified power point presentation will be made so that managers could have quick review of all important data. In order gain feedback from managers, a questionnaire will be given to all managers to fill in the information they experiencing when they executing the plan. Aside that, an information sharing platform will be setup for managers to post and share information. Meanwhile, management may post updated data along implementation period to support managers’ effort in executing development project.

  1. Develop a communication plan and discuss how you will consult with relevant groups and individuals. Do not forget that you must report to the Executive as well as communicate widely with Centre staff.

In most cases, organisational change caused uncertainty and anxiousness to all employees (Velasquez & Hussey, 2013). This problem usually resulted from lack of communication between groups and individuals. Therefore keeping discussion focused, relevant and timely with regular meetings through multiple channels and media is important. Regular meetings can be in two form, casual gathering or formal meeting such as daily meeting, lunch activities and monthly meeting. Meanwhile communication channels can be in form of notice board, memos, emails, telecommunications, video conferencing, presentation and management software’s media. Aside that, the communication plan need to include all members associated to the development plan, this include external consultants.

  1. Develop your communication/education plan to promote the benefits of the change to the organisation, and to minimise loss, and arrange activities to deliver the communication plan to all relevant groups and individuals.

The communication plan aim to promote benefits of the change and minimise loss through acquiring change information from relevant group and individuals. In order to do so, several meetings method were designed to communicate with different audiences with different messages through appropriate media and channels. Kindly refer to the communication plan as following:

Communication Plan

Type of Meeting

Description

Schedule

Audiences

Delivered by

Media / Channel

Briefing

Changes to be implemented and performances of staffs

Weekly

Fitness Trainers / General Staff

Centre Manager

Fitness Centre (Face to Face) / Notice / Memo

Formal Meeting

Report of progress, budget, and performances

Monthly

Executive Management / Store Manager / External Consultant

Project Manager

Report / Meeting Room (Face to Face) / Email all related documents

Lunch Activities

Sharing implementation experiences, discuss new possible change to be implemented

Fortnightly

General Staff / Store Manager

Project Manager

Restaurant, Casual

Presentation

Result of implementation and data associated to changes

Monthly

External Consultant / Executive Management

Project Manager

Power Point / Meeting Room (Face to Face)

  1. How will you consult with relevant groups and individuals for input to the change process after the implementation commences?

Consultation priority was to get continual feedback, evaluation, and possible solution from employees, representatives, committees, managers and individual staffs. Therefore it is highly important to identify the consultation function whether it is for informing, consulting or negotiating. During consultation process, it is necessary to explain the final decisions to the audiences if their views and opinions were not adopted. Meanwhile, give credit and recognition to those who provide information which used and improved a situation; and ensure the discussed issue are relevant to the plan. Aside that, it is highly important to avoid discussing minor issues that may cause grievances. Finally, presenters should always provide feedback to audiences on the development outcome as this may keep all members associated to changes notified and motivated.

  1. What barriers to change do you see as possible? Develop a risk management and mitigation plan for each.

In general, low risk threats that are unlikely to occur is less important, mitigation plan for the risk management will focus on moderate and high risk factors only. Therefore, the mitigation plan will list out a series of approaches to anticipate potential problems such as managers’ resistances, management software failure, new fitness program not in demand and unqualified trainers resistance on training participation.

  1. In your change management plan, include action plans and activities and the project timetable. You may use a Critical Path Analysis or Gantt chart for this, but may choose to use another method.

Actions

Responsible Person

Timeframe

IT Activities

Installing management software for joint decision making management

Software programmer

1 week

Installing new computers for all fitness centres

Technician

1 week

Design and setup communication platform for all staff members

Software programmer

2 weeks

Business Unit / Product Group Activities

Training session for managers on software function

Management Executives

1 week

Setup the budget for all plan

Finance Officer

1 week

Conduct market trend analysis for designing new fitness program

Regional manager

Throughout the implementing period

Project Team Activities

Review and finalise development plan

Project manager

1 month

Collect feedback from employees regarding what they expecting

Project management team

2 weeks

Communication Activities

Setup routine meeting standard for employees

Secretary

Throughout the implementing period

Assess communication tools

Technician

7 days

Training Activities

Prepare budget and timetable for fitness trainers to go for education class

Store manager / Project management team

1 month

Audit Preparation

Setup monitoring and evaluation mechanism

Store manager / Project manager

Throughout the implementing period

Task

Description

Start Date

Duration

Dependent

Type

Task 1

Situational analysis

1/07/17

7

Task 2

Consultation with all staff members

8/07/17

7

Task 1

Sequential

Task 3

Drafting change management report

15/07/17

7

Task 2

Sequential

Task 4

Create a financial budget

22/07/17

7

Task 3

Sequential

Task 5

Review draft report and finalise

22/07/17

7

Task 3

Parallel

Task 6

Install management software

30/07/17

7

Task 5

Sequential

Task 7

Design and setup communication platform

30/07/17

14

Task 5

Sequential

Task 8

Installing new computers

6/08/17

7

Task 6

Parallel

Task 9

Conduct trend analysis

30/07/17

28

Task 5

Sequential

Task 10

Design new fitness activities

13/08/17

14

Task 9

Parallel

Task 11

Review and monitoring performances

30/07/17

56

Task 5

Parallel

Gantt Chart

  1. What are your strategies and how will you activate these for embedding the change?

Kotter’s model of change management ideas was widely used in initiating change although it was argued that Kotter’s model lack of rigorous fundamental. Kotter’s model consist 8 steps to instigate change in a stable organisation which is highly applicable for organisation undergo major change process (Appelbaum, Habashy, Malo, & Shafiq, 2012).

  • Establish a sense of urgency: At the beginning of change management plan, it is necessary to let employees know that the merger is certain and new code of practice and management will be adopted, creating a need for change. As Kotter (1995, p. 43) stated that people will not change if they did not see the absolute need of changing. This could be achived by registering proffesional trainers who already qualified into the system.
  • Creating a guiding coalition: Once employees sense the urgency, it is necessary to establish a clear line of command, preferable with people who had expert knowledge or possess legitimacy power. So that these leaders can lead the employees effectively.
  • Develop a vision and strategy: The change management plan should have a clear vision and strategy however it is often very general and vague. Therefore it is necessary for the managers to create a clear objectives for employees to follow, such as what they are expecting the employees to perform and the time-line set out for these objectives (Flamholtz & Kurland, 2006).
  • Communicate the change vision: It is highly important for the associate members in the change process to communicate each ideas and problems encountered during the change implementation, so that adjustment can be made on irrational change plan. This is highly important as corporate need to ensure employees’ satisfaction to make the change had employees’ support.
  • Empower broad-based action: Aside from communication, change agent should also consider adopting ideas from the employees through empowerment, as they are often the front line personnel who deal with daily tasks (Appelbaum, Habashy, Malo, & Shafiq, 2012). Due to that reason, they possessed in-depth knowledge on the change management plan’s practicality.
  • Generate short term win: According to Kotter (1995) it is highly important to recognise employees’ achievement during change implementation phase to keep the change momentum going on. This goal could be achieved by providing feedback and award to employees with outstanding performance that supported the change management plan.
  • Consolidate gains and produce more change: Generally, managers often derailed from the full change plan after acquire several minor objectives. Therefore it is highly important for change committee to conduct monthly meeting to present the change performance and progress to the managers; so that the manager can follow up on next change requirements.
  • Anchor new approaches in corporate culture: New changes will experience degradation if it was not embed to the organisation culture. Therefore is its extremely important for managers to remind the employees on the benefits derived from the change; to ensure the employees will adjust their behaviour and attitude (Kotter, 1995).
  1. How and when will you conduct evaluation and review, and modify your change management project plan to achieve change program objectives?

An effective review and evaluation mechanism is imperative to examine change program objectives achieved and track the change performances (Hernan, 1986). Meanwhile, Hernan (1986) report indicate that monitoring mechanism is highly useful to generate valuable data and information for future planning and modification on change management project Due to that reason, monitoring mechanism need to be setup from change management plan beginning phase. During the beginning stage, development team need to review the draft before finalising making sure it is practical. While in executing stage, a weekly review need to be setup to examine the progression of the plan, while a monthly evaluation will be conducted to examine whether the change implemented meet the requirements of change objectives.

References

Appelbaum, S. H., Habashy, S., Malo, J.-L., & Shafiq, H. (2012). Back to the future: revisiting. Journal of Management Development, 31(8), 764-782. doi:10.1108/02621711211253231

Berry, S. (2016, November 3). Top fitness trends 2017: the digital age and exercise collide. Retrieved June 12, 2017, from The Sydney Morning Herald: http://www.smh.com.au/lifestyle/health-and-wellbeing/fitness/top-fitness-trends-2017-the-digital-age-and-exercise-collide-20161103-gsh75j.html

Culture Code Consulting. (2017). Our Consultant. Retrieved June 11, 2017, from Culture Code Consulting: https://www.culturecodeconsulting.com/?gclid=CjwKEAjw9_jJBRCXycSarr3csWcSJABthk07V35qkphCEtz151ON5nNKlAlGMadW3V3cJZml5-1tuRoChMDw_wcB

Fitness Australia. (2017). Policies & Guidelines. Retrieved June 12, 2017, from Fitness Australia: http://fitness.org.au/articles/category/policies-guidelines/4/20

Flamholtz, E., & Kurland, S. (2006). Making strategic planning work: a case study of countrywide financial. Handbook of Business Strategy, 7(1), 187-193.

Hernan, C. G. (1986). Evaluation of agricultural research in Colombia. Singapore Workshop, (pp. 7-9).

Khan, M. A., & Hashim, M. (2014, April). Organizational Change: Case Study of General. ASEE 2014 Zone I Conference, 3-5.

Kim, T. G., Hornung, S., & Rousseau, D. M. (2011). Change-Supportive Employee Behavior: Antecedents and the Moderating Role of Time. Journal of Management, 37(6), 1664-1693. doi:10.1177/0149206310364243

Kossiakoff, A., & Sweet, W. N. (2003). Systems Engineering Principles and Practice. John Wiley and Sons.

Kotter, J. P. (1995). Leading change: why transformation efforts fail. Harvard Business Review,, March - April, 59-67.

Mersha, T. (1997). TQM implementation in LDCs: driving and restraining forces. International Journal of Operations & Production Management, 17(2), 164-183. doi:10.1108/01443579710158032

Schlossberg, M. (2016, July 24). Instagram fitness stars are creating a new problem. Retrieved June 11, 2017, from Business Insider Australia: https://www.businessinsider.com.au/the-dangers-of-instagram-fitness-2016-7

Southern Cross Education Institute;. (2017). Leading and Managing Change. BSBINN601 Power Point. Adelaide, SA, Australia: Southern Cross Education Institute.

Teixeira, E., & Werther, W. (2013, May / June). Resilience: Continuous renewal of competitive advantages. Business Horizons, 56(3), 333. doi:10.1016/j.bushor.2013.01.009

The Economic Times. (2017). Definition of 'Cost Benefit Analysis'. Retrieved June 12, 2017, from The Economic Times: http://economictimes.indiatimes.com/definition/cost-benefit-analysis

Velasquez, D. L., & Hussey, L. K. (2013). Organizational Culture. In Change Management and Organizational Culture (pp. 121-143). US: American Library Association.

BSBINN601 Lead and Manage Organisational Change

BSBINN601 Lead and manage organisational change Assessment 1

BSBINN601 Lead and Manage Organisational Change Assessment 1 Case Study

BSBINN601 Assignment Answer

BSBINN601 Assessment 3 Implement change management strategy

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