06165605 jessica woods_assignment 2
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- 1. Strategy and Change ASSIGNMENT TWO CHANGE PLAN
- 2. 1 Executive summary This report will assist in the formation
of Tasti as a high profile brand. This will be done by assessing
the current situation using eight contextual features; time, scope
preservation, diversity, capability, capacity, readiness and power.
The management style, change design and change target will also be
considered. The execution of the strategy will be evaluated in
terms of what factors will influence the accomplishment of the
strategy. Lastly, the implementation process itself will be
outlined.
- 3. 2 Table of Contents Executive
summary.........................................................................................................................1
Executive
summary..........................................................................Error!
Bookmark not defined. Strategy
formulation.......................................................................................................................4
Time.................................................................................................................................................4
Time and design choices
.............................................................................................................4
Scope...............................................................................................................................................4
Scope and design
choices............................................................................................................5
Preservation....................................................................................................................................5
Preservation and design
choices.................................................................................................5
Diversity
..........................................................................................................................................6
Diversity and design choices
.......................................................................................................7
Capability.........................................................................................................................................7
Capability and design choices
.....................................................................................................7
Capacity...........................................................................................................................................8
Capacity and design choice
.........................................................................................................8
Readiness
........................................................................................................................................9
Readiness and design choices
...................................................................................................10
Power
............................................................................................................................................10
Power and design
choices.........................................................................................................10
Strategy execution
........................................................................................................................11
Communication.............................................................................................................................11
Resistance
.....................................................................................................................................11
Education
......................................................................................................................................12
Strategy
Implementation..............................................................................................................12
Recruitment and
selection............................................................................................................12
- 4. 3 Mobilising- Communicating a
vision.............................................................................................13
Empowering
Action.......................................................................................................................13
Instilling
Change............................................................................................................................13
Creating
continuity........................................................................................................................14
Appendix
.......................................................................................................................................14
1.1 Cultural web of Tasti
...........................................................................................................14
1.2 Future
Organisation.............................................................................................................14
1.3 Stakeholders communication requirement
.......................................................................15
1.4 Dynamic
capabilities............................................................................................................15
1.5
Assets...................................................................................................................................16
1.6 Change
summary.................................................................................................................17
References.....................................................................................................................................18
- 5. 4 Strategy formulation The strategy chosen to build Tastis
profile is a brand building strategy. A key issue outlined in the
strategic analysis is that Tasti is currently not considered a high
profile brand. Consumers are knowledgeable about particular
products rather than the brand (Har lee, 2010). A change action
team specialising in Marketing will be developed with a change
agent managing this team (Balogyn & Hailey, 2004). This will
essentially be a form of functional delegation. Marketing outputs
will change in order to enhance the value and perception of the
brand. Time The strategic analysis recognises that Tasti is in a
favourable position and has illimitable time to implement change
initiatives (personal communication, 2012). Time and design choices
This will result in a reconstruction followed by an evolutionary
transition. The reconstruction portion will be limited to members
involved. This will be implemented using participation style of
management (Balogyn & Hailey, 2004). Senior management can
create a particular change path which will allow those involved
time to adjust. The need for change is not currently at the
forefront, so, this will allow Tasti to use a participation
approach to gain acknowledgment of the need for change and
encourage participants acceptance of the concept (Balogyn &
Hailey, 2004). The luxury of time will enable the change action
team to be screened for proficiency and capability with time to
improve and train personnel (Balogyn & Hailey, 2004). Scope
Scope determines how much change is necessary. The two parts of
scope are the depth required and the extent of change across the
company (Balogyn & Hailey, 2004).
- 6. 5 The scope of change necessary is more depth intensive,
predominantly in the marketing division. This will consist of a
mixture of an adaption and evolutionary approach. The target of
change is the marketing output and value of the organisation in the
eyes of both the consumers and staff (Balogyn & Hailey, 2004).
Scope and design choices The change path will be a reconstruction
with regards to the development of the change group and
evolutionary in regards to the amount of time allowing for a
gradual implementation which will ultimately result in a proficient
strategic marketing team (Balogyn & Hailey, 2004). Preservation
Tasti endowed many assets which must remain present. Both tangible
and intangible assets must be considered, please see appendix 1.3
for details. The assets which must be preserved are shown in
italics in the appendix. The three assets which need to be changed
are intangible assets; they are customer loyalty, and market share
in New Zealand and Australia. The current progress made in these
three departments must be preserved, but improvement in these areas
is expected and desirable (Har lee, 2010). An important asset
discovered is the flat management structure. It has allowed Tasti
to make decisions quickly and react to market changes efficiently
(Har lee, 2010). This feature has been discovered to be an
important competitive advantage (personal communication, 2012). The
knowledge and skills acquired by Tasti staff are also a
significant. In particular the multi- disciplined senior management
team has been identified to be a core competency of Tasti (Har lee,
2010). Preservation and design choices The preservation of
particular skill sets of certain staff members have been described
as desirable preservation choices and therefore a collaborative
style to change has been identified as a safer route as this
emphasises the importance of these individuals (Balogyn &
Hailey, 2004).
- 7. 6 Diversity The degree of diversity amongst the staff that
will be affected by the change is essential to understand. The
organisation as a whole is heterogeneous; however the group being
targeted is likely to be more homogeneous with heterogeneous
elements (personal communication, 2012). The extent of uniformity
within Tasti is low. Different national cultures, subcultures and
professional groups exist (personal communication, 2012). The
change action team and Mr Cook himself will be the main focus of
this assessment of diversity. Within this group, there will
certainly be professional diversity between Mr Cook and this team.
It can be expected that the group will have different national
cultures and subcultures will exist (Statt, 2004). The change agent
will ultimately be responsible for deciding on the levels of
diversity and the extent of diversity will ultimately be governed
by the intended outcomes of this change procedure (Balogyn &
Hailey, 2004). The level of diversity will ultimately affect the
level of loyalty amongst the team. There must be a shared vision
and a shared direction amongst the change group. As Cook will be
sourcing from within the company, the extent to which staff
identifies with their peer group over the change leader may affect
the outcomes (Balogyn & Hailey, 2004). A recent trend of
declining loyalty towards corporations and senior management could
negatively affect the ability for the team to work cohesively with
Mr Cook. Mr Cook will need to ensure there are no assumptions made
about the level of loyalty felt by staff, as it is likely that this
will be overestimated. The recent increase in production and
internationalisation may have made units of the company become more
autonomous and feel less connected with the senior management team
(Balogyn & Hailey, 2004).
- 8. 7 Diversity and design choices If the level of diversity is
disruptive, a target of value-led change will be appropriate. The
values statement can be installed throughout the operations. This
value statement will need to voice respect and acceptance of other
cultures and religion (Balogyn & Hailey, 2004). The level of
professional diversity amounts the group will call for an
initiative which will enhance the ownership of change. This will be
a change style that advocates collaboration amongst group members
(Balogyn & Hailey, 2004). Capability Tasti has shown a capacity
for operational change with the introduction of its modern
facilities and production lines. The company has also claimed to
have a high capacity for change at senior management level, having
a multi-disciplined skill set and a shared attitude that embraces
change (Har lee, 2010). The staff have shown an ability to handle
organisational transition with the smooth transition of new
operational procedures and a high capability of change with their
increased proficiency resulting from active participation in
numeracy and literacy programs (Workbase, 2009). The organisation
itself is also capable of change. This has been shown by the
successful integration of Tasti products into the Australian
market. It has been acknowledged that change was necessary to be
accepted by the Australian market. It is also important to note
that Tasti has successfully maintained its market share in this new
market which emphasised that this company is capable of maintaining
change on a continual basis in response to an environmental change
(Har lee, 2010). Capability and design choices The high capacity
for change amongst this organisation influences the change path.
Tasti has exemplified a capability for change which would suit
transformational change and evolutionary change (Balogyn &
Hailey, 2004).
- 9. 8 A change style of collaboration will require the ability
to facilitate others. The change roles will therefore involve the
change leader, as Mr Cook will need to compensate for any lack of
capacity for change amongst the marketing team. This is due to the
fact that, although the organisation has shown a high capacity for
change, the capacity for change must not be overestimated (Balogyn
& Hailey, 2004). Capacity Capacity is the amount of resources
that the organisation can invest in the change plan. This is
divided into three sections; cash time and people (Balogyn &
Hailey, 2004). Management development of the change team can be
expensive, as can marketing campaigns. In order to ensure that
Tasti does not make the common mistake of mimicking larger
companies with more financial backing, Tasti will need to be
tactful about the design of the marketing campaign (Cravens &
Piercy, 2009). Twelve months to will be the given timeframe to
change. The change manager will be expected to perform change
initiatives whilst continuing to deliver normal performance
targets. In order to ensure that the change targets are met by this
time, it is realistic to expect Mr Cook to remove certain
responsibilities for a limited time to ensure the change targets
are met (Balogyn & Hailey, 2004). Tasti has sufficient quantity
of employees to select from, however, the commitment to change will
need to increase and this will be dependent on the change leaders
capabilities (Balogyn & Hailey, 2004). Capacity and design
choice The change path will be dependent of the capacity of
management, which has already been identified as proficient and
capable and therefore this area will require a smaller amount of
investment in terms of financial resources (Balogyn & Hailey,
2004).
- 10. 9 The value-led change involves heavy investment, yet the
reconstruction of this plan has small width, which will save
financial resources. Yet, this value-led change is needed to
achieve the target (Balogyn & Hailey, 2004). The use of Mr
Cooks time will be costly, as he has a high level of involvement in
the business. For this reason the change team will need to be
proficient at working autonomously. His presence will be necessary
in the training and development portion and as a change leader.
However, a certain level of communication and physical presence
must be maintained to ensure the target will be met (Hubbard &
Beamish, 2011). Mr Cook has been chosen for this role because he
holds the position of Marketing Director; therefore this team will
be an imperative part of his work. He has also been identified as
having the time to devote to the leadership of this change process
because this particular target is essentially his professional
responsibility (personal communication, 2012). Readiness At this
stage the level of readiness is reasonable. Public Relations
initiatives have indicated that Tasti is planning to initiate a
campaign to make Tasti a more high profile brand. The level of
public awareness and the flat level management with open
communication between levels would indicate that staffs have been
informed that this change plan is being arranged (Har lee, 2010).
The commitment to change is high at the management level. However,
there is no evidence that staff have been expressing a high level
of commitment to this particular change plan (personal
communication, 2012). This low commitment to change may stem from
staff feeling ambivalent about the change. Employees may fear the
concept of change or fear that it may be disadvantageous for them
(Statt, 2004). Tastis own success may be its downfall in relation
to being able to demonstrate the need for change. According to the
Har Lee (2010) article described increasing profits and proficiency
and
- 11. 10 the Workplace (2011) article described a working
environment which boasted consistency and stability. Readiness and
design choices The style of change can assist in enhancing a more
change ready nature amongst affected staff. The participative
collaboration movement should be coordinated in a top-down fashion
starting with the change agent. The change role will also be
affected; the change agent will need to demonstrate an absolute
belief and commitment to change. The staff need to visibly see this
in action in the hope this will encourage the staff to embrace and
believe in the change themselves (Balogyn & Hailey, 2004).
Power Power examines where the power lies within a company. It
identifies the major stakeholders and sources of power and whether
there will be autonomy of the change agent and others involved in
the change plan (Balogyn & Hailey, 2004). The change agent in
this situation is restricted by one main individual. This business
is privately owned by Simon Hall, executive Chairman at Tasti
Products Ltd. (personal communication, 2012). Cook must ensure he
has the full commitment of this key stakeholder before any plan can
be mobilised (Balogyn & Hailey, 2004). Power and design choices
In regards to roles; the amount of power Cook has as a change agent
can be both beneficial and disadvantageous. To be effective, a
change leader needs to be a reasonably powerful individual to
provide the plan with powerful backing (Hubbard & Beamish,
2011).
- 12. 11 Levers can be used to deal with power; breaking and
reforming formal and informal power structures can help to create a
change group that will buy-into the change quicker (Balogyn &
Hailey, 2004). Strategy execution Communication The change plan
must be communicated to all stakeholders involved (Balogyn &
Hailey, 2004). The change agent will be the communicator of this
message. Message repetition will be used to ensure there are no
differences in the understanding of the information. The
stakeholder groups affected need to be aware of the changes and
must guide them to be committed to the change plan (Statt, 2004).
The areas highlighted in appendix 1.3 Stakeholders communication
requirement, represent areas where communication is lacking
(personal communication, 2012). The variety of channels used
depends on the level of involvement in the program. The message
content will also vary between stakeholder groups (Balogyn &
Hailey, 2004). Resistance The main barrier to change is likely to
come from the main organisational stakeholder, Simon Hall. However,
in this case the main stakeholder is committed to the vision (Har
lee, 2010). The
- 13. 12 main barrier expected is if the change group show signs
of resistance due to poor follow- through or no consequence
management. In order to deal with this resistance the change agent
will need to facilitate and support the group through
parcticiaption and involvement to ensure the group is educated and
informed about their roles (Balogyn & Hailey, 2004). Education
Education is useful when you need to create understanding amougst
employees about why the change is needed, how it will effect them
and to prepare them by giving them the tools they need to
accomplish the task. The task group created will need the most
education. Interventions can help to encourage change amounst
people and to motivate individuals towards mobilisation.
Presentations and a change program to illustrate expected changes
can be used to help illustrate the need for this new strategy
(Balogyn & Hailey, 2004). Strategy Implementation Recruitment
and selection A task group must be formed and recruited from within
the company. To ensure the appropriate staff are selected through
recuriement process manageged by Human Resources. HR will be
required to advertise the vacanicies using a selection process.
Candidtates will be sorted, interviewed and fill out profile
questionnaies to identify the final change group (Damian &
Kirkley, 2011).
- 14. 13 Mobilising- Communicating a vision The change agent will
be responsible for motivation management in order to create
momentum. This involves announcing certain information to generate
motivation. The vision must be clearly defined to create an
understanding of what is expected and a universal movement towards
goal attainment within the organisation. Ensure people know what
skills they need and what their roles and responsiblities are
(Damian & Kirkley, 2011). Empowering Action The main obstacle
is increasing involved employees motivation and commitment to
change. In order to ensure the emplopyees understand their goal, a
cutural web showing the company before and after can be used to
give a clear vision (Damian & Kirkley, 2011). A system change
can help to ensure the employees are on task and help
implementation, this will be to design a management by objectives
inititative and ensure that employees understand the dynamics of
this change (Damian & Kirkley, 2011). One ideal which must be
preserved and will be useful during implementation will be the use
of Tastis ritual to actively encourage creative freedem to improve
performance (personal communication, 2012). Instilling Change An
outward in approach will be used to ensure that no changes are made
to rapidly and risk creating a backlash. Start off with objectives
which are easy to reach and communicate rewards and visibly
recognize success when possible to encourage positive performance.
Ensure promotion of the vision and ensure people who actively
believe in the vision are rewarded, even if this is just verbally.
Enhance the new group and ensure they mature professionally
- 15. 14 through giving them more autonomy, ownership and
accountability of the project (Damian & Kirkley, 2011).
Creating continuity In order to ensure that the strategy endures
and is a success, change capacity must be filtered throughout the
organisation and its values. This will ensure that the company is
capable of keeping up with changes in the external environment. The
development of strong and consistent leadership is also an
important capability (Damian & Kirkley, 2011). Appendix 1.1
Cultural web of Tasti (Tasti, 2012) 1.2 Future Organisation
Paradigm Family business Quality & service focussed Proud
Adaptive Advanced (Technology) Symbols 'Wholesome' atmosphere
Caring Up and coming under- dog Power Structure Privately owned
company Family business Unions Organisational Structure Flat
management structure Centralised Control Systems Communication
between senior management. No filteringof information due to a lack
of middle managment. Routines and ritual 'quality-minded' culture
Staff involvement Actively encourage creative freedom to improve
performance Stories Story of founders which emphasises humble kiwi
beginnings
- 16. 15 1.3 Stakeholders communication requirement Awareness
Understanding Support Involvement Commitment Senior managers Yes
Yes Yes Yes Yes Shareholders Yes Yes Yes Yes Yes Supervisors Yes No
Neutral No No Staff Yes No No No No Customers Yes Partial Unknown
No No Suppliers Yes No No No No (Personal communication, 2012). 1.4
Dynamic capabilities -competitive advantage features. Knowledge
management Multi-disciplined senior management team used to create
competitive advantage Adaptability Fast decision making. External
factors reacted to quickly and efficiently Flexibility Paradigm
Family business Quality & service focussed Proud Adaptive
Advanced (Technology) Strong CSR Trendy health concious marketing
Symbols 'Wholesome' atmosphere Caring Up and coming under- dog
Power Structure Privately owned company Family business Unions
Strong marketing influence Organisational Structure Flat management
structure Co-manufacturing Centralised Specalised marketing group
Control Systems Strong communication Strategic Planning (Marketing)
Management by objectives Routinesand ritual 'quality-minded'
culture Staff involvement Actively encourage creative freedom to
improve performance Stories Story of founders which emphasises
humble kiwi beginnings
- 17. 16 Speed of response to external changes Flat management
structure allows Tasti's senior management to make decisions
quickly Resources Large modern facility R&D Fast response to
changes in consumer demands Customer relationship strategy Close
relationship with customers allows for up-to-date analysis of
consumer behaviour trends Multi-stage warehousing system Rapid
response supply chain Employees Investment in competency and
motivation (Tasti, 2012) 1.5 Assets Tangible assets Employees
Multi-disciplined senior management team Diverse range of products
Large modern facility with sophisticated and reliable product lines
Intangible assets Heritage of the company Past success B2B success
with bakery consumers Efficient productivity Flat management
structure Established itself as a healthy brand Customer loyalty
Change required: Increase Pick the tick initiative
- 18. 17 Co-manufacturing with Weight watchers Numeracy and
literacy programs for employees Australian market share Change
required: Increase NZ market share Change required: Increase
Logistics which provide competitive service Capability to react
quickly to changes in the market Save the kiwi CSR initiative
Family business with Son recently becoming more involved.
Management and employee knowledge and experience (Har lee, 2010).
(Tasti, 2012). 1.6 Change summary Change Design: Reconstruction of
a change group and reconstruction of Mr Cooks role. Followed by
evolution of the brand and how it is perceived both internally and
externally. Change targets: Creation of a trained change group
resulting in an output of effective marketing which builds the
brand profile. This is all three organisational levels at which to
intervene. Behavioural because the change group will have a
different work environment, value because the brand will become a
high profile brand and therefore will change the way people think
about their work and lastly, outputs in the form of marketing.
Change roles: In-house sourcing of a change group and development
of Adrian Cook as a change agent Change levers: Systems power as a
change mechanism, breaking and reforming formal and informal power
structures, attitude-led change. Change style (Management Style):
Change style of collaboration and participation Change start-point:
The organisation wide start has already occurred. Each stakeholder
is
- 19. 18 aware; however the pilot sites at which understanding
and commitment are needed are beginning to be exercised. (Balogyn
& Hailey, 2004). References Har Lee, Y. (2010, November 12).
Success: Biting off as much as they can chew. NZHerald. Retrieved
from
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10688622
Hubbard, G., & Beamish, P. (2011). Strategic Management (4th
ed.) French Forest. Australia: Pearson Australia (Hubbard &
Beamish, 2011). Balogun, J., & Hailey, H, V. (2004). Exploring
Strategic Change (2nd ed.) Essex, UK: Prentice Hall Damian, R.,
& Kirkley, B. (2011). Strategy and Change: Massey University.
Auckland, New Zealand: Pearson. Cravens, D. & Piercy, N.
(2009). Strategic Marketing (9th ed.) New York: America: McGraw
Hill. Cook, A. (2012). Personal communication. Auckland: New
Zealand. Statt, A. D. (2004). Psychology and the World of Work (2dn
ed.) London, UK: Palgrave Macmillan Tasti Products Ltd. (2012).
Retrieved from http://www.tasti.co.nz/ Workbase. (2011). Retrieved
from http://www.workbase.org.nz/case-studies/tasti-products-
ltd.aspx