Change in business operations is one of the major issues faced by the organizations in today’s world. Most of the organizations in today’s world have to come up with innovative business ideas in order to counter attack the stiff competition from there market competitors and the strategic models of change management also have to be incorporated. In the following report, the different change management plans will be studied in details for a company called Healthpak limited, which is a packaging company.
The following report will make use of the change management plans such as Kotters 8 steps change management as well as McKinseys 7-s change management model in order to understand the necessary steps and changes that has to be incorporated within Healthpak limited to ensure a successful change incorporation within the company. By the end of the report, the reader will have a clear idea of the different steps of the change management plan within Healthpak ltd.
Proposed organizational system change for Healthpak:
One of the most important organizational system change that should be incorporated in Healthpack is the concept of relationship selling. This has immense potential of re-building the trust of the customers as well as the dealers and distributors since much of it has already been lot in the present situation within the company.
Outbound calling and reminding clients of the business they once did with Healthpack can remind them of the good service provided to them by the organization and can greatly enhance their chance of restarting business with the organization once again now. Healthpack should try maintaining a goodwill with all its clients as well as the stakeholders and gain the trust of the customers with an improved customer relationship management as well as coming up with attractive prices and offers for its corporate clients.
Analysis of the change:
In order to implement the change and to ensure that the organization meets its goals, Healthpak should ensure it comes up with newer lines of products and services as per the ever changing and increasing needs of the global markets. Presently the company specializes in packaging different products as well as sachet packaging and other services. It can come up with the associated services such as post packaging and after sales support for these products to ensure that the clients do not face any issues with the packaging.
Performance and organizational objective:
The performance objective should be to ensure that all the employees in the sales and marketing teams including the managers at different levels coordinate and work with each other and their performance is monitored and accessed based on regular reports that are generated using knowledge management systems. Performance of the employees should be evaluated based on their productivity. The organization as a whole should aim to increase its overall sales to generate more revenue in order to get back to the market.
Organizational process change to be incorporated in Healthpak:
The sales process within Healthpak should be simplified to an optimum level in order to ensure that the sales representatives can fully understand them and enjoy implementing them. Although the organization had streamlined processes even in the past, the tools that were being used by the employees were clunky and complicated to use which in turn demoralized the sales and marketing teams as well as other employees. This has to be eliminated and outdated systems and strategies should be changed. Inaccurate sales forecasting and data from the customer relationship management software due to incorrect market analysis is causing the present issues within Healthpak limited. The managers will have to understand the performance of the sales representatives at a more individual level and their concerns and exact issues that they are facing has to be understood more in details.
Analysis of the change:
The process change will need some of the infrastructure within the organization to be replaced and more monetary investment in hiring more risk assessment professionals. The human resource management software also has to be updated in order to ensure that there is optimum job satisfaction among the employees and their concerns and the managers as well as the top management are properly addressing their grievances. The dedicated team of market researchers should be appointed and the existing teams should be properly trained in the new business strategy to ensure that the proper market research is carried out in the future before any investment from the company.
Performance and organizational objective:
The performance of the business analysts should be monitored and the results derived from their data should be properly analysis in order to understand the market conditions. The objective of the company s to ensure that all the sales representatives are meeting their sales targets and they are more productive at their work. The organization should also ensure improved coordination with the dealers as well as the other stakeholders.
People change to be incorporated in Healthpak:
The organizational hierarchy needs to change. More experience professionals should be appointed in the top management. Human resource as well as sales and marketing teams have to be rebuilt in order to ensure Healthpak limited attains improved sales strategies in the future. A dedicated team of market research experts has to be appointed who have extensive knowledge in the packaging industry.
Analysis of the change:
The change will need proper communication of the plan to the existing employees as well as their adequate training and development. The change will need in depth understanding of the benchmark of the marketing agency that the company own in to analyze the unnecessary expenditure that the company has already incurred in order to prevent it again in the future (Zincir & Tunç, 2017). Therefore, their performance has to be even more closely monitored than before.
Performance and organizational objective:
The objective of the peoples change in the organization is to bring about a change in the business models and the styles of leadership for the top management to inculcate a positive motivation among the existing employees (Xiaoming & Feng, 2013). This can ensure that more experienced and competent people take charge of the situation and look forward to generate more sales and increase revenue in the future and ensure improved productivity from the existing employees to drive sales.
Change management models to be used by Healthpak ltd:
McKinseys 7-s model:
Strategy:
Proper accountability should first be assigned within the concerned personnel involved in the life cycle of the change incorporating within Healthpak limited. The managers as well as the other decision makers of the organization should be assigned responsibilities to monitor the change management steps at all points of time and ensure that the teammates working in collaboration with each other meet the deadlines in performing their respective tasks (Vartak et al., 2014). The upper management should always be kept informed about the budget changes as well as resource allocation in order to ensure that the plan is being successfully implemented.
The organization presently seeks to achieve a target of stabilizing its work operations to ensure that the ever-changing needs of the changing markets are met by the organization as well as the sales and revenue figures improve in the future (O’Dea, 2014). The target should be subdivided among different teams within the organization with special emphasis on the sales and marketing teams.
Structure:
The proper organizational hierarchy will ensure that the managers not only ensure optimum employee job satisfaction in the life cycle of the change management but also ensure that there no issues such as employee vandalism within Healthpak ltd (Banks, 2013). It should be ensured that all communication from the top management reaches to the concerned managers as well as other team mates as per the requirements of the change management plan in a very transparent manner so that no employees have any confusion or doubts in their minds.
Systems:
The processes and procedures as well as the role of the people working together within the organization all comprise of the systems that should also be efficiently changed in order to ensure a successful implementation of the changes to ensure an improved business structure within Healthpak limited. The present processes as well as modes of communication that Healthpak limited currently has with all the third party logistics providers lack scaling efficiencies (Betancourt et al., 2016). Higher rates are being useless paid by the company without a proper analysis of the present market trends, which also has to be eliminated (Mitchell, Fredendall & Cantrell, 2015). The power of the distributors also have to be kept under a check by the organization and the managers and the team mates involved in such processes should also ensure that the proper organizational policies and guidelines are followed whenever they make any business decisions or deals with the third party companies.
Skills:
Healthpak limited should also ensure that properly skilled professional in the field of change managements as well as risk analysis experts to be hired or the existing employee properly trained. This will ensure that proper market analysis is being carried out in the future to ensure that there is no economic loss for the company and the company never over pays in comparison to the market trends. (Bridoux & Stoelhorst, 2014). Employees should be well trained.
Staff:
The staff should be properly trained about the new business model that has to be incorporated in the business (Chu & Lai, 2013). The communication regarding the change will also have to be properly communicated to the staff and the upper management should always ensure that the change is widely accepted in the internal work operations by all the employees and their concerns are met.
Style:
Helathpak limited has a great brand image since a very long time in the markets of Australasia. Many of the employees in the top-level management within the company are quite well known in the markets and therefore they should ensure that the top-level managers have an efficient leadership style especially in the difficult times of the organization when they are missing sales as well as other parameters within the organization, in order to motivate other employees.
Two advantages of McKinseys model:
Shared values:
Kotter’s 8-steps change management plan:
Step 1: Create Urgency:
The near as well as medium term forecast of the company’ sales look worse and it is a very difficult time for Healthpak limited. The distributors seems to have more deciding power regarding stocks and the company is also losing out on economic terms since it pays more than the ongoing market rates for lesser returns of benefits (Dent & Whitehead, 2013). Therefore, this has to create a sense of urgency within the management of the company to ensure that a proper business model and innovative strategy be incorporated in order to overcome these present issues.
The top managers including the board of directors, the project managers and other important staff should come in a coalition and understand the problems that are being faced and the people should be convinced about the importance of the change for the organization on a priority basis.
Create a Vision for Change:
Healthpak limited should form a clear aim and vision that will address the issues that it is presently facing. It is presently spending more amounts of money and in return getting lesser equivalents of full time payment as compared to the market trends. The distributors of the organization also have more power than the company itself, in stocking irrespective of the requirements by the retailers. Communication with the logistics providers should be improved by incorporating better information systems as and when needed by the organization.
Communicate the Vision:
The change and information on the new business model should be effectively communicated to the employees as well as the other staff of the company. Lack of communication can cause employee unrest and their disapproval of the new strategy at the last moment due to lack of knowledge or expertise in it.
Remove Obstacles:
Healthpak limited should remove any such obstacles or distractions on a priority basis. There can be objection from the governmental bodies, stakeholders including the market competitors but Healthpak limited should counterattack them (Miller & Blackler, 2017). There can be obstacles while implementing the change management plan.
Healthpak leadership team should always ensure that they arise at win-win situations with the logistics suppliers as well as the distributors and they met the immediate requirements of the retail shops on a priority basis by mutually beneficial deals with the distributors as well as other stakeholders.
Build on the Change:
The entire change should be well formulated and properly incorporated within the organization. The stages of the change should be explained and well communicated within Healthpak employees.
Anchor the Changes in Corporate Culture:
It should be ensured that the change management is properly incorporated within the corporate culture.
Two advantages of Kotter’s model:
Suitable change management plan for Healthpak limited:
Considering the advantages as well as the disadvantages of the above discussed change management plans it can be said that McKinseys model will be a better choice of plan for the organization since this models focuses on the importance of the organizational and also offers a directional factor to the work operations therefore prioritizing tasks as per the present issues of the organization (Auguste, 2013). The most important suitability of this model for Healthpak lies in the fact that due to the recent drop in sales as well as the overall business of the organization, the employees including the top leadership has been morally down for a while to some extent, which can be efficiently addressed and handled by the McKinseys model.
Action plan to be implemented in the organization:
Need for the transformation:
In the present system within the organization, there is no proper market analysis and the marketing agency o the organization spends more money than what its market counterparts spend and in turn receives lesser returns. There is also no proper interaction with the logistics department and the distributors seem to have developed a more power of authority regarding stocking of goods irrespective of the requirements from the different retail shops (Miao & Evans, 2014). This has drastically reduced revenue for Healthpak and future appears quite bleak for the organization.
Healthpak’s vision towards a new direction:
Healthpak limited should have a vision for bring about the necessary change and transformation in the working principles as well as the style of management. The issues such as irregular and inconsistent communication with the distributors as well as the stakeholders and the lack of productivity in the logistics department are to be addressed on an immediate basis and form the vision of the company (Abeysekera, 2013). The vision of the company s to ensure enhanced job satisfaction of the employees of Healthpak limited and to ensure increased revenue generation as well as enhanced productivity of the employees in the future work operations.
Four professional attitudes expected out of the team members:
Four ethical standards expected out of the team members:
4 culturally appropriate attitude expected out of the team members:
Two methods to manage internal and external stakeholders:
For internal stakeholders (mangers and stuff):
Performance management systems should be used to track the performance and productivity of the employees including the top-level managers and executives (Trevino & Nelson, 2016). Reports should be generated automatically using proper data management systems in order to provide them feedbacks about improvement.
A proper human resource management system should be used in order to make tasks live recruiting, leave management, maintaining employee details and other tasks more convenient (Gunn & Taylor, 2014). This is turn can also improve employee job satisfaction and drive more sales.
For external stakeholders (customers):
Proper organizational regulations and policies must be maintained across all the verticals of the organizations and employees should exhibit their professional competence in all the tasks and responsibilities they undertake within Healthpak limited.
Managing own and others learning:
There should be training and development portals across the organizational network such that the employees can take the tests as well as course available for them for self-development. (Ingram et al., 2015). The reports should be automatically sent to their respective managers for performance evaluation.
Communications strategy plan:
Verbal as well as visual communications strategy will be used in the effective communication of the changes across Healthpak limited (Lingiardi et al., 2016). The strategy will discuss the importance of building proper channels of communication with the logistics suppliers as well as the stakeholders (Katz, Lazarsfeld & Roper, 2017). It will also talk of hoe to improve coordination among the employees as well as improve employee as well as customer satisfaction in the future. The communication channels that will be used is through physical meetings and seminars conducted by the higher management as well as presentations (Lambert & Davidson, 2013). The effect of communications can be monitored by the managers based on weekly team hurdles as well as automatically generated regular reports from management information systems.
Conclusion:
Therefore, it can be concluded from the above report that Healthpak limited can reach newer heights in the future provided it implements the change management strategy in the right way and all the dimensions of the plans are addressed effectively. The budget of the project has to be properly decided and most importantly, the communication of the new model should be properly carried out across the different department of Healthpak limited. Proper training should also be provided to the sales and marketing teams I order to better promote their products as well as generate more revenue in the future.
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