BSBINN601 Lead and Manage Organizational Change Assignment Help

BSBINN601 Lead and Manage Organizational Change Assignment Help

BSBINN601 Lead and Manage Organizational Change Assignment Help

Introduction

This assignment relates to the simulation of Fit Life which is a chain of health and fitness clubs in Australia by determining the strategic change requirements and opportunities for implementing the change management strategies.

Task 1: Identify Change Issues

1.1 Identify strategic change needs through an analysis of organisational objectives.

The goals and objectives of Fit Life focus to develop strategy for premium pricing and differentiation of its main products and to introduce innovation in fitness and lifestyle grow future Employee Relation and enter new markets through developing retail business and building physic-gym culture. In order to achieve these goals and other financial and marketing objectives the strategic change needs required by the company area s follows:

  • Develop strategic plan of business in line with the marketing plan of company.
  • Training and development of executive management of the company in order to gain expertise in change management.
  • Improvement in compliance processes by framing more and better policies and procedures related to HR, WHS quality etc.
  • Limit the incentive scheme and emphasize on service quality along with sales.
  • Develop a direct distribution channel for international markets of company.

1.2 Review existing policies and practices against strategic objectives

Current Policy & Practice

Contribution

Limitation

Children and elderly exercise and diet programs

Competitive advantage

Only for children and elder people.

Youth swimming classes and recreational activities

A variety of activities available.

No specialization

Availability of many classes and trainers during peak hours

Availability during peak hours

Lack of qualified and experienced trainers

Customized fitness and health programs for specific needs

Consideration and satisfaction of specific needs of each customer

Requires a variety of skills and expertise for tailoring programs according to specific needs

Required policy and practice

Rationale

Introduction of health bar in the highest CGU within next six months

To compete with other health and fitness organizations who already provide on-site extras such as health bar to clients and also achieve the objective of ROI of 20%, gross margin 20% and increase in membership count by 10%

Open the physiotherapy facility at health clubs with at least two physiotherapists within next nine months

To build the physic-gym culture and enrich brand value.

Register as a Registered Training Organization

To provide internal growth and training of employees and grant them nationally recognised qualification.

Introducing innovative health and fitness programs during the year

To accomplish the goal of introducing innovative fitness and lifestyle and enrich brand value

Launching Iron Man loyalty Card Program within next three months

Achieve 5% improvement in customer retention rates every year for five years.

(DAS, 2013)

1.3 Monitor the organizational behaviour and external environment on change strategies.

Organisational behaviours

Impact

Resistance to change by long term staff members

The innovative health and fitness programs will not be implemented effectively.

Lack of expertise of executive management to implement changes

The change strategies will not be successfully implemented and the objectives of Change management plan will not be achieved.

External Factors

Impact

Political

The factors such as VET free help loan scheme, smart and skilled government subsidized training, updates in national standards and training packages change regularly which may affect the compliance processes.

Social

The popularity of fitness shows and Fitness Industry Survey helps in increasing demand of fitness and health clubs and thus increasing growth of fitness clubs of company.

Economical

The growth of fitness industry will result in achieving the financial and marketing objectives of company. Although he decrease in household income may result in shifting of customers to other cheaper alternatives available.

Technological

The increasing use of technologically advanced equipments and products will be a competitive advantage for company since the company is already technologically advanced and developed.

 1.4 Identify major operational change requirements

Operational change requirements

Rationale

Appointment of qualified and experienced trainers and staff members and training and development of existing executives

To achieve the objective of better service quality and customer retention for long term and enrichment of brand value

Inclusion of innovation and creativity in operational policies and procedures through their redesigning

To increase brand value and develop the strategic business plan in line with the Marketing Management and objectives.

(Torppa, 2011)

1.5 Review and prioritise change requirements in consultation with the Business Change Manager.

The change requirements reviewed and prioritised in consultation with Business Change Manager are as follows:

  • Appointment of highly qualified and experienced training.
  • Training and development of executive management and long term staff members.
  • Improvement in compliance processes.
  • Establishing direct distribution channels for international markets through entering into contracts with international agents.

Task 2: Develop change management strategy

2.1 Undertake cost-benefit analysis 

Category (Cost)

Cost

Appointment of qualified trainers

Salary of trainers at clubs

Training and development of existing staff

Salary of training personnel

Iron man loyalty card scheme

10% discount on eligible purchases

Contracts with international agents for direct distribution channel.

Agents’ commission

Developing online portals

Website development and service charges

Registration as RTO

RTO licence and compliance fees

Increase in operating hours of clubs

Overtime wages

Category (Benefit)

Cost

Appointment of qualified trainers

Increase in membership count

Training and development of existing staff

Increase in profit margin

Iron man loyalty card scheme

Increase in membership count

Contracts with International Environment agents for direct distribution channel.

Increase in market and customers

Developing online portals

Reduction in costs

Registration as RTO

Customer retention for long term

Increase in operating hours of clubs

Increase in ROI

 Payback estimation:

The increase in cost of implementing the change strategies will also result in benefits by increase in ROI, increase in profit margin, increase in membership count by 10%, achieve ratio of current assets to current liabilities of 2:1, ratio of 1:1 of owner’s equity to borrowed funds, increase of 5% in customer retention rates and brand enrichment. Thus the initial investment as the cost of implementing changes will be recovered within one or two years by the company.

2.2 Undertake risk analysis to address potential barriers to change

Barrier

Likelihood

Impact

Consequence

Risk Level

Risk Ranking

Risk Mitigation

Substitute fitness centres

½

Loss of customers

Reduction in membership count

High

3

Gain competitive advantage

7/24 open fitness clubs

¾

Reduction in customers

Decrease in profit margin

High

1

Increase hours of operation

Seasonal customers

¼

Reluctant to pay prices when outdoor sports are available in summer

Decrease in profit

Moderate

4

Launching customised seasonal packages

Fitness gadgets and apps and Free health resources on internet

½

Non-availability of services

Decrease in customers

Moderate

3

Establishing online presence.

High pricing structure

¼

Non-availability of services

Decrease in customers

Low

5

Discount schemes and incentives on products.

Lack of manager expertise

3/4

Failure to achieve objectives

Loss of reputation and brand image

High

2

Training and development of mangers

(Bradley, 2016)

2.3 Schedule the Change Management Project

The change management project along with the details of activities and duration of those activities for successfully implementing the change management initiatives can be represented by the following table and Gantt chart: 

Activity

Description

Duration (in days)

1

Training and development of executive management and long term staff members and Appointment of highly qualified and experienced trainers

15

2

Entering into contracts with international agents for establishing direct distribution channels

10

3

Developing online portals and internet presence

14

4

Registration as RTO

6

5

Framing policies and procedures for strategic business plans

8

6

Launching Iron man loyalty card program

1

7

Adopting methods of cost reduction and cost control

7

8

Monitoring and evaluation

10

 Gantt chart

BSBINN601 Lead and Manage Organizational Change Assignment Help, Assignment Help

2.4 Assign resources and matrix to the Change Management Project

Parent task

Sub task

Labour

Capital

Cost (AUD)

Time

Outcome

Training

Appointment of training personnel

Trainers

NA

Salary

15

Better service quality

Agents contract

Establishing terms of contracts

Agents

NA

Commission

10

Access to international market

Online portals

Developing websites and portals

Web developer

Websites

Service charges

14

Internet presence

RTO Registration

Compliance procedures

Legal personnel

Registration Certificate

Licence fees

6

Increase in brand value

Framing policies

Preparation of plan

Managers

Policies and procedures

NA

8

Development of strategic business plan

Cost reduction

Implementing methods

Employees and executives

NA

NA

7

Increase in profits

(Burr, 2010)

2.5 Develop draft communication plan including reporting protocols 

Reporting Protocols

Management

Customer

Government

Employees

Outcomes

Achievement of organizational objectives

Better quality services through satisfaction of needs and fitness goals

Compliance of laws and regulations

Improvement in performance and increase in knowledge and skills

Key message

The project will result in increase in performance of company by achieving the goals and objectives through customer satisfaction.

The services are provided to improve your health through appropriate and accurate means using best training health and fitness practices.

The project has been undertaken in adherence of applicable regulatory framework and compliance of applicable laws related to health and safety

The project aims at increasing the overall performance through development of skills and knowledge of employees through training and development programs.

Channel

Project Plan

Advertisement

Compliance Report

Employee notices

When/Frequency

Monthly

Once

At the start of project

At the start of project

2.6 The Change Management Cycle

The change management cycle refers to as the process of initiating the change, implementing the change and monitoring and evaluating the performance to recognise the impact of change. Thus change management is a continuous process. The Change Management Cycle is represented as follows:

BSBINN601 Lead and Manage Organizational Change Assignment Help, Assignment Help

(Brown, 2015)

2.7 Obtain approval from the Business Change Manager

The modifications need to be made in the Change Management plan in order to ensure successful implementation of changes in the policies and procedures of the organization. The cost involved for modification and the delay in time duration of the project likely to be caused will also is included in the report. This report will be used to obtain approval from Business Change Manager.

Task 3: Deliver the communication Plan

Meeting with Management

The meeting will include presentation of project plan to the management of Board of Directors of Fit Life formally through business presentation and receiving their suggestions and recommendations for the project plan in order to obtain approval from them.

Meeting with Employees

The meeting with the employees including the trainers and other staff will be done in order to define the roles and responsibilities of each of them for implementing the changes. The Activities to be performed by them will be defined along with determination of expectations for achieving the organizational objectives.

Task 4: Monitor and adjust change management activities

Evaluation Report

Performance gaps 

Parent task

Subtask

Labour

Capital

Cost (AUD)

Time

Actual Outcome

New Outcome

Training

Appointment of training personnel

Trainers

NA

Salary

15

Better service quality

Increase in expertise

Agents contract

Establishing terms of contracts

Agents

NA

Commission

10

Access to international market

Increase in popularity and brand value

Online portals

Developing websites and portals

Web developer

Websites

Service charges

14

Internet presence

Broad market access

RTO Registration

Compliance procedures

Legal personnel

Registration Certificate

Licence fees

6

Increase in brand value

Loyalty of customers

Framing policies

Preparation of plan

Managers

Policies and procedures

NA

8

Development of strategic business plan

Efficiency in processes

Cost reduction

Implementing methods

Employees and executives

NA

NA

7

Increase in profits

Growth of company

Risk management Outcome

Risk

Root causes

Risk Control measures

(Actions to be taken)

Monitoring Procedures

Responsible person

Timeline

Financial loss

Decrease in sales

Reduction in excessive costs

Budgeting

Financial manager

Throughout the year

Non-compliance of health laws

Lack of information about regulatory framework

Identifying applicable health and safety laws

Compliance check

Legal and compliance manager

Before and during implementation of plan

Technology failure

Fault in technology

Installing technically advanced equipment

Maintenance and repair on regular basis

Purchase manager

Life of machinery

Delay in schedule

Not meeting the deadlines

Flexibility in schedule

Putting a regular check on deadlines

Project manger

Throughout project implementation

(Garde, 2010)

Conclusion

From the above mentioned Change Management Plan and communication plan developed for FitLife as a Business Change Development Officer it can be concluded that the recommendations determined through the strategic review of company can be incorporated through the change management plan which can be implemented into the organization effectively and will help Fit Life in achieving the objectives.

References

  • Bradley, G. 2016; 2012;2010;, Benefit Realisation Management: A Practical Guide to Achieving Benefits Through Change,  2nd;2; edn, Gower, Farnham.
  • Brown, M., Kulik, C.T., Cregan, C. & Metz, I. 2015, "Understanding the Change-Cynicism Cycle: The Role of HR", Human Resource Management, , pp. n/a.
  • Burr, B.B. 2010, "Public plans ramping up risk management; Central oversight, consultants, hirings among changes", Pensions & Investments, vol. 38, no. 25.
  • DAS survey project schedule and change management plan 2013, , SyndiGate Media Inc.
  • Desmond, C. 2016, "Project to plan for significant process change", IEEE Engineering Management Review, vol. 44, no. 2, pp. 15-16.