Crisis Management Strategy For Competition And Change In Modern Enterprises

Current organizational issue

Discuss about the Crisis Management Strategy for Competition And Change In Modern Enterprises?

This assignment deals with nuances of issues and concerns that a firm experiences about organizational structure, changes and other relevant factors which have an effect on the overall functioning of the establishment. Despite services have been in existence providing support to service users having learning disabilities and emotional and complex needs for Islington Council, Department of Housing and Social Services since 2001. Varied financial changes and considerations have occurred in the system which meant that the firm is experiencing an overwhelming change in the process. Councils are having 40 percent cut in savings from the central government which meant that the same are having problems in continuing with their functions. Local authorities are having difficulties in making both ends meet as far as funding is concerned. Owing to financial cut, councils have the shortage to funds to perform statutory tasks and others which need to be trounced soon.

Financial constraint:

Despites Services are operating as service providers to users who have disabilities in learning, development. The users are associated with Islington Council, Department of Housing and Social Service. The central government allocates and apportions funds to such organizations engaged in caregiving to challenged individuals. The council has enjoyed financial grants from central government and other regulatory divisions. It utilizes the resources for providing services to people having learning and other behavioral intricacy. The central government is contemplating the reduction of grants to the council. This means that the councils will be facing a dearth of finance which in turn will affect their operations. The central government has made a forty percent cut in funding. They have delivered £ 10 billion of their savings in the course of services for three years from 2011/2012. The local authorities should find ways of how to manage savings in best possible way for next couple of years. The parliament calls for efficiency saving in the operations which as per the council officials are turning out to be a vast challenge for them. With a limited budget, it is hard to the end of Despite services to fund for the staffs and managing their expenses (Frankland et al. 2013). The labor departments guidelines state that workers or people of any firm must be paid come what may. They are the assets and one of the stakeholders of a company. Hence, the workers cannot be ignored as far as compensation is concerned.

Models of change management

Change management means the change. Broadly, it refers to approach or ways of managing the change in the business environment. The three different methods include, adapting to change, control of change and effecting change (Frankland et al. 2013). Here, the author recommends Lewin’s Model of Change Management of dealing with change as far as the organization in question is concerned. Kurt Lewin promulgated the theory of Change Management Model, which is relevant in this case. His theory consists of three stages namely, Unfreeze, Change, and Freeze. The step of unfreezing refers to getting ready to change. It involves in the understanding of the need for change and being ready to initiate the process. The common tendency is the more we feel the need have changed, the more will people be ready for a change. Here, the management of Despite services should be ready for alteration in its operations. The firm should contemplate over cutting down on its expenses since it may not receive funds like previous times. Stage two of Lewin’s theory states about Change or transition. It means the actual process of transition or the course of change. People are wary of the imminent change in the organization. Here, in Despite services, the employees would be suspicious of alteration in their ranks. They would resist to the change. The final stage of Lewin’s model states about freezing (or Refreezing) which means the resumption of stability after the change period. In the case of Despite services, the people would have incorporated the change and operate in the line of the same. Gantt’s chart best describes the overall plan for change management which is laid below.

Sl No.	Name of task	Start date	End date	Remarks	Budget
1.	Unfreeze	1/01/2015	1/06/2015	This period will assess the readiness of change.	£ 750
2.	Change	1/8/2015	1/10/2015	Actual change process initiated.	£ 1000
3.	Freeze (Refreeze)	1/11/2015	1/02/2016	Incorporation of change results.	£ 1250

A definite or unambiguous plan should be in place to deal with the organization in the light of changes. This means the firm should adopt the best communication strategy to manage the emerging transformation or change by and large internally (Booth 2015). Whenever a change occurs in organizations, the same is met with resistance. An active policy should be in place to negate the resistance through Resistance Management Plan (Bucciarelli 2015). The plan could be discussed through SMART objectives. SMART as the name suggests referring to S (specific), M (measurable), A (attainable), R (realistic), T (timely).

Specific: Despite services are having the crisis of making both ends meet owing to shortage of funds from central government.

Measurable: The firm has assessed its issue and initiated the changes imperative to manage the predicament.

Plan for Change Management

Attainable: Despite services aims to accomplish a feasible introduction of change in its ranks. It should effect the change within a time frame of 2015-2016.

Realistic: It is ought to be pragmatic in the approach. Digressing from the issue will invite repercussions.

Timely: It implies Despite services should complete the whole course by adopting timeliness.

Determinants	Costs	Risks
Finance factor	Despite services may have to bear budgetary allocations than what it had commenced with before the modification.	It will suffer from the extra burden of rising cost owing to change management initiated.
Human Resource factor	At the outset, people will be wary of impending change in Despite services. They will resist the probable change.	Decline in human capital from people who are change-averse.
Time factor	Despite services aims to incorporate the overall change within specified timeline. Failing to do so it will have to bear huge consequences.	Revenue, efficiency, and effectiveness will take a hit during initial stages of Change process. Expenditure will be on a rise during the same period.

Staffs may be hesitant to leave the ease of their comfort zone or fear that they won’t be able to adapt to the change (Kuipers et al. 2014). Change can help a business stay in concurrence with latest industry trends, which can make it more attractive to potential customers as well as help maintain current customers (Cameron and Green 2015).

A clear and definitive communication plan should be in existence to be impervious from any hazards associated with that. All the interested parties should be taken into consideration before the formulation of communication policy or plan relating to change. Stakeholders are of two types, namely, Internal and External. Internal stakeholders comprise of Board of Members, Staffs and senior management while the external encompasses investors, banks, customers, compliance authorities, analysts and the media. Despite services may consider of passing on the information of change through the hierarchy. It should be observant of the hierarchical structure within the firm. As far as external stakeholders are concerned, Despite services should declare the change management through press conferences, online tools and newspaper/ journal notification or Gazette. The firm cannot discount any factor or for that matter, key stakeholders while devising and execution of the plan of change in the organization (Goetsch and Davis 2014).

Implementing change can be a test if inappropriate techniques are used. When the staffs are on board with organizational change, they can then make the internal alteration smoother and help clients and others adjust as well. A technique that can get employees personally involved in change is to encourage them to look at the business as though they were running it. This instills a sense of ownership amongst them (Gerth 2013). Secondly, if things are left too much to the staff’s imagination regarding the change that can create misinformation and make change management problematic. Trying to make radical changes without informing staffs of the nature of the changes can create confusion. Staffs should be communicated in the first place. Change must be effected in gradual steps. A prospective change should be tried with a small set of individuals and based on the outcome; the same may be integrated with the larger group of employees. For change to happen all relevant parties should be taken into consideration. The staffs feel secured when the top brass of the firm supports the employees, and the later thereby accepts the change in a best possible manner (Hayes 2014). In Despite services, the people of the firm should be kept abreast of the overall change process and application of the same.

Impact of change on resources

A typical manner may be initiated to correspond with people about new schemes and their development. The key management should be trained properly in this regard. Promotion of the new business tactic to each group. In-depth analysis and understanding should be imparted to all the resources which will help them to have an excellent view of how the change will benefit them in the long-run (Hughes et al. 2016). In Despite services, a particular team member may be asked to demonstrate the prospective changes in the organization which will inspire him with a sense of responsibilities (Bryant 2016). The author says to frame key deliverables for various department and staffs occupied in the new business strategy. A deliverable is a final report or the output from implementing the new company policy. Each group manager must adapt to the deliverable to the goals of the group. Successful implementation of change can be linked to compensation, which means teams who can manage the change competently may receive benefits.

In the first place, recording is to be done of the tribulations the firm wants to solve. If the company is already in place, risks, and underperforming departments require attention. If the organization is still in a formative stage, one must look forward to concerns it is expecting. Secondly, listing of indicators needs to be framed. The indicators will offer an idea of the issues and prospective solutions in the same regard. Determination of methods one will observe and measuring of the indicators selected (Lozano et al. 2015). This includes the scale one will use, the points based on which observations will be made, and the rate with which one needs to record and measure (Park and Koh 2015). A brief description of the task, indicators, etc. which the firm needs to address must be framed. Next, each job description must be assigned to people in the firm. In Despite services, a rough draft may be prepared by the evaluation and monitoring process and submitted to the individual who is trustworthy (Lehmann et al. 2016). The staff would delve into it and report anything which is relevant and unrelated to the topic.

Real plan of executing the change in Despite services, can be performed by engaging staffs of different levels in responsible duties (Hornstein 2015). Furthermore due to insufficient finance, incompetent resources may be laid off to maintain equilibrium as far as funding is concerned. The repercussions of the implemented policies should be observed in the first month and based on the findings; the same may be persisted with or altered in line with findings recorded (Haslam et al. 2014).

Communication of Plan to key stakeholders

A regular evaluation should be in place as to record the number of acceptance and resistance level in Despite services. It should be in line with the SMART objectives laid in the first place. Deviation of strategy from that will invite interruption in the change process. If the development doesn’t satisfy the SMART parameters, the firm will have to rethink over its strategies. If the progress is satisfactory, Despite services may continue with the change, whereas, the reverse should also be contemplated. Corrective plan of action should be initiated by in-depth evaluation and research (Creasey and Scott Ross 2016).

My role mainly is that of providing support to Despite services in varied domains and avenues. It is evident in the first place that all organizations experiences change in its ranks and managing or handling change appropriately are all that matters. The central government has cut short funds to the firm which has resulted in issues in the functioning of the organization. Therefore, the group in question should create policies and strategies in keeping with revised or changed system. I have charted out an in-depth plan of change management in the first place. Secondly, I have mentioned the likely impact of the strategy on all resources of the firm. Resources here mean staffs, the board of directors, upper management and other interested parties in vendors, clients, and media, by and large. Communication of the plan to key stakeholders is another area of concern that is important. I have applied different tools and ways of implementing the change process in Despite services using SMART approach. Here, I have ensured support system as to overcoming the challenges to change. Development of instrument or systems, the actual execution of Change and final evaluation of the reframed policies will help to perform change management in Despite services.

Conclusion:

The author has explained exhaustively about Change management and its relation with that of leadership in a firm, which in the present context is Despite services. He has clearly formulated several strategies for dealing or managing change in the establishment which is liable to happen due to certain policies of central government. The researcher had succinctly identified the issue of Despite services and laid out explanation of dealing with that based on change management theory and procedures. He has mentioned the various avenues which may be affected by the change in the organizational ranks. Furthermore, the researcher states about putting into practice the framed policies of change management. He is of the view that in keeping with change process the firm cannot discount the occurrence of resistance or challenge from different quarters both within and outside the organization. To manage this issue, different systems or plans are formulated as per the issue, and those are required to be worked upon. Once all the speculation part and pros and cons of the strategy is done away with, the real plan is put into application in real terms. Finally, the author stresses about the regular and continued evaluation of the progress of implemented change management.

References:

Booth, S.A., 2015. Crisis Management Strategy: Competition And Change In Modern Enterprises. Routledge.

Bryant, B., 2016. How to Overcome Resistance to Change in an Organization. [online] Smallbusiness.chron.com. Available at: <https://smallbusiness.chron.com/overcome-resistance-change-organization-154.html> [Accessed 20 Feb. 2016].

Bucciarelli, L., 2015. A review of innovation and change management: Stage model and power influences. Universal Journal of Management, 3(1), pp.36-42.

Cameron, E. and Green, M., 2015. Making sense of change management: a complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.

Creasey, T. and Scott Ross, D., 2016. Measurement to Determine the Return on Change Management. Practicing Organization Development: Leading Transformation and Change, Fourth Edition, pp.211-219.

Frankland, R., Mitchell, C.M., Ferguson, J.D., Sziklai, A.T., Verma, A.K., Popowski, J.E. and Sturgeon, D.H., Applications In Internet Time, Llc, 2013.Integrated change management unit. U.S. Patent 8,484,111.

Gerth, C., 2013. Introduction. In Business Process Models. Change Management (pp. 1-12). Springer Berlin Heidelberg.

Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. person.

Haslam, S.A., van Knippenberg, D., Platow, M.J. and Ellemers, N. eds., 2014. Social identity at work: Developing theory for organizational practice. Psychology Press.

Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.

Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), pp.291-298.

Hughes, D.L., Dwivedi, Y.K., Simintiras, A.C. and Rana, N.P., 2016. Change Management. In Success and Failure of IS/IT Projects (pp. 57-65). Springer International Publishing.

Kuipers, B.S., Higgs, M., Kickert, W., Tummers, L., Grandia, J. and Van der Voet, J., 2014. The management of change in public organizations: A literature review. Public Administration, 92(1), pp.1-20.

Lehmann, C.U., Unertl, K.M., Rioth, M.J. and Lorenzi, N.M., 2016. Change Management for the Successful Adoption of Clinical Information Systems. InClinical Informatics Study Guide (pp. 435-456). Springer International Publishing.

Lozano, R., Ceulemans, K. and Seatter, C.S., 2015. Teaching organisational change management for sustainability: designing and delivering a course at the University of Leeds to better prepare future sustainability change agents.Journal of Cleaner Production, 106, pp.205-215.

Park, K.O. and Koh, C.E., 2015. Effect of change management capability in real-time environment: an information orientation perspective in supply chain management. Behaviour & Information Technology, 34(1), pp.94-104.