You are on page 1of 40

Assignment: Managing Change in Organisations, MBA.

Student name and number -1University of Wales MBA Through Resource Development International (RDI)
85% Comments from examiner stated that the Forcefield Analysis was too long 1 page would have been sufficient.

Managing Change in Organisations


Assignment

Report on Change at Little Chef, Popham, Hampshire


Submitted by: RDI Student No: . University of Wales Student No: . 26 January 2010
Words, excluding Bibliography and Annexures, but including an element of referencing = 4318 words

Assignment: Managing Change in Organisations, MBA. Student name and number -2-

Report on Organisational Change at Little Chef, Popham, Hampshire

Index
Page 1 2 3 4 4.1 4.2 5 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 7 7.1 7.1.1 7.1.2 7.1.4 7.15 Introduction and Terms of Reference Research Abbreviations Little Chef, the case study Background The main objectives of the organisational change Forcefield Analysis Evaluate of change management effectiveness Create a sense of urgency Pull together the guiding team Develop the change vision and strategy Communicate for understanding and buy-in Empower others to act Produce short term wins Dont let up Create a new Culture Assessing change objectives Balanced Score Card Finance Customers Learning and growth Recommendations 3 3 3 5 5 6 7 16 17 18 19 20 21 22 22 23 23 25 25 26 27 27 29 30 36 41

7.1.3. Business

Bibliography Annexures Channel 4 Summaries of TV series

Assignment: Managing Change in Organisations, MBA. Student name and number -3Managing Change in Organisations Report on the Business Process Transformation Of Little Chef, Popham, UK January 2010 1 Introduction and Terms of Reference The purpose of this report is to elucidate on the organisational change that has taken place at Little Chef (LC) Popham, UK as a blueprint for revitalising the Little Chef chain of roadside restaurants in the UK during 2008 and 2009. The chain, a private limited company, was acquired by specialist private investment business, RCapital, a Limited Liability Partnership, in 2007. The objective of the report is to:

describe the organisational changes that have taken place in Little Chef since it has been under new management, and the purpose of the changes

analyse the nature of the change illustrate how change management models could have been used to identify the drivers of change,

evaluate the success of the complex change processes and make recommendations regarding further changes required to reach the objectives that were set out by the management of Little Chef.

Research The following research methods were used to inform this report.

2.1

Channel 4 Television ran a series on the LC transformation process in their TV programmes Big Chef takes on Little Chef and Did Heston Change Little Chef? in 2008 and 2009. This assignment is based on the TV programme. This Two Four Productions Limited series of 4 episodes, is available on podcast from ITunes on the Internet. (Itunes, 2009) and is summarised as Annexure 7.

2.2

Secondary research on the internet and trade media.

Assignment: Managing Change in Organisations, MBA. Student name and number -42.3 Personal visits, as a customer and resident in the area of Little Chef, Popham, over a period of three years

Abbreviations: When referring to

The Change Agent it will refer to the Chief Executive (CE) Mr Ian Pegler The Consultant Mr Heston Blumenthal The Pilot Restaurant or Popham refers to LC Popham Branch, Hampshire on the A303.

The change management team will refer to:

The Little Chef, Mr Ian Pegler and his team and the Consultant, Mr Heston Blumenthal and his team.

The Change Team Protagonists

To understand the context of this case study it is important to understand the term organisational change. Though there is no agreement among academics on the definition of organisational change an influential definition was given by Carter McNamara (1997). He refers to organisational change, as the overall nature of activities e.g. their extent and rate that occurs during a project that aims to enhance the overall performance of the organisation. The activities are often led by a change agent or person responsible to guide the overall change effort. The activities are

Assignment: Managing Change in Organisations, MBA. Student name and number -5often project orientated (a one time project) and geared to address a current overall problem or goal in an organisation. (Management Help 1997:21)

Little Chef, the case study

1mage: Sensitive changes to iconic Little Chef's "Fat Charlie" brand from www.catersearch.co.uk 4.1 Background

Little Chef, a chain of roadside restaurants, was originally created in 1958 to serve British motorists along A roads. The much loved iconic British brand with its Fat Charlie logo has undergone many changes of ownership in recent years. The decline of the chain was however inevitable due to managerial neglect and lack of re-investment from the height of its operational success in February 2003.(Caterer 2009:1) The case study: Little Chef 2007 2010 The premises throughout the chain were shabby, staff morale was low, customer service was poor and the reputation of Little Chef was seriously damaged. The trading environment had changed drastically since the height of the Little Chefs success. Motoring trends had changed and healthier food choices are now preferred. The business had reached a low point. (Wachman R 2008:15)

Complete neglect

Assignment: Managing Change in Organisations, MBA. Student name and number -6-

Rescued The Little Chef chain was rescued from administration in January 2007 when RCapital LLP, a private equity business owned by Messrs. Jamie Constable and Peter Ward, bought 176 Little Chef outlets for less than 10 million. (Caterer, 2009:1) The scale of change needed to restore Little Chef to its former success and profitability was what Ackerman (1997) would term transformational change, affecting Little Chefs structure, processes, culture and strategy. (Ackerman, 1997:2) The change team set about changing LC, albeit amidst great turmoil. 4.2 The main objectives of the organisational change at corporate level in the

short term: To turn the LC Popham restaurants around to profitability within a period of 6 months. The long term corporate objective: To create a culture of excellence that will continue to deliver quality and value to its customers, retain valued employees and generate wealth for its investors. At a functional level: (Tutor2U, n.d.:3) To renew the Little Chef brand including the Fat Charlie logo To create a new menu to cater to their customers changed tastes, To improve the food quality, through a business process transformation To improve customer service To refurbish the Popham restaurant as the blue print for the LC chain, with a budget of 350 000 within a period of 6 months. This report will deal with the short term goals.

All the above goals were to be achieved within six months on a budget of 350 000. (Wachman 2009:14)

Assignment: Managing Change in Organisations, MBA. Student name and number -7It was agreed that once the model dubbed the Heston Model proved to be successful, a further two restaurants would be launched. Thereafter the chain would be incrementally changed throughout the UK. (RCapital, 2007:4) The change team engineered the first major change, involving all processes and systems, in the 50year-history of the Little Chef chain.

Forcefield Analysis for Little Chefs Planned Transformational Change

(Sachs International, n.d:16) According to Mullins (2005) in order to promote change it is essential to understand the origin of the need to change and the nature of any proposed change.

A way to do this would be through a cause and effect approach (Ishikawas Fishbone diagram) (12Manage 2009:5) but the author believes that the forcefield analysis models is more closely associated with the Little Chefs circumstances. The internal and external forces that were brought to bear on the trading environment of Little Chef can be analysed by Kurt Lewins (1982) Forcefield analysis. (12Manage 2009:6) He maintained that conditions are kept in equilibrium by two opposite sets of forces; those that drive for the change, and those that try to maintain the status quo by restraining change. For change to take place the forces that drive change should exceed those that restrain. (Lewin K, 1982)

Assignment: Managing Change in Organisations, MBA. Student name and number -8-

Forcefield Analysis The Little Chef 1 Current State: 2 Desired State:

1 Loss making operation 2 Brand name tarnished 3 Menu outdated 4 Poor quality food all precooked and outsourced 5 Poor service 6 Trading premises shabby

1 Profit making operation 2 Branding retained and Logo renewed 3 Modern, healthy cost-effective menu 4 High quality food, cooked on the premises 5 Excellent service 6 Refurbished and modernised premises

3. Driving Forces (Help change)

5. Ways to strengthen Plan)

6 Ways to weaken Plan)

4.Restraining (working change) against

achieve (Potential

Action (Potential

Action Forces

Internal Skills, Resources Strengths 1a.176 outlets Transformational throughout UK. place million customers (2007) through doors, walking the albeit for Arrest decline further through infrastructure with Basic by Ackerman Abated 1997 and all training

Limitations

through 1 Staff moral was interaction, high endemic and were

the Change as described staff in whereby

consultation low, staff turnover and resignations

11 processes were was recognition. required.(Northumbria U 2009:2) (Kotter&Rathgeber 2006)

shabby. 1b New owners Plan of LC -equity Transformational Analysis investors (French

Declining Stakeholders dissatisfied

profits.

have Change if Force Field planned change proves and feasible

Referent Power

Assignment: Managing Change in Organisations, MBA. Student name and number -93. Driving Forces (Help change) 5. Ways to strengthen Plan) 6 Ways to weaken Plan) 4.Restraining (working change) against achieve (Potential Action (Potential Action Forces

Raven profit

1960)

Jarrett 2010

and look for a (12Manage.com 2009:17) 1c LC CE has Reward Power - Plan for this market (French and sector strategy developing CE change strategy lost 2007:11). vision (Kotter through marketing when the and J, Raven 1960) to revised motivate staff. 12Manage 2009:17) to the eager to market generation who did not know LC previously.(The Guardian 2009:7) 1d Change lead the change process successful conclusion, possibly 2009: 15) reward.(Tutor2U The interests of key Enhanced recognised, may be positively or negatively affected. A for Stakeholder Analysis would highlight such interests. (RDI P 4of 14) Notes, Stakeholder Analysis Misunderstanding and apparent lack of shared vision created of Pettigrew among the change team distrust. undercurrents

agent eager to stakeholders must be communication to especially those who

argues that internal politics can restrain change.(Pettigrew A 2001) (Lecturers Handouts 2009)

Assignment: Managing Change in Organisations, MBA. Student name and number - 10 3. Driving Forces (Help change) 5. Ways to strengthen Plan) 6 Ways to weaken Plan) 4.Restraining (working change) against achieve (Potential Action (Potential Action Forces

1e seeks and

Consultant success to boost media (Expert (French Raven

Stakeholder Analysis

celebrity ratings. Power) and 1960:17)

Ref: Force rating for change = 9 2a LCs brand Renewing the logo to Plan for change loyalty is strong illustrate in the Wachman Guardian 2007:8) R and series (Rodgers Broadcastnow, 2009:13) 2b to Owners As above keep and R and new created J UK. symbolise a change management. The TV enormous publicity.

Force

rating

against change=5 2 Poor service and poor products damage to if reputation, quality causing brand not

addressed urgently. (Holbeche 2005)

2a Proposed buyout/ acquisition by competitors Benetton (Italys family)

expressed desire revive the brand. (Wachman Guardian 2007:8)

threatened to scrap the brand and keep infrastructure. (Wachman Guardian 2007:8) R

Assignment: Managing Change in Organisations, MBA. Student name and number - 11 3. Driving Forces (Help change) 5. Ways to strengthen Plan) 6 Ways to weaken Plan) 4.Restraining (working change) against achieve (Potential Action (Potential Action Forces

Force rating for change 8 3a Loyal cost- Consult stakeholders Implement conscious clients to ensure their needs demand renewal of all services. (Coercive Power) and 1960) (12Manage 2009:17) are Collect analyse data healthy, addressed. effective and targeted menu

Force

rating

against change=3 3 Entrenched cost- culture towards food of putting was and pre-cooked. profit before quality

it. consumers needs outsourced

(French Communicate with all and freshly cooked came their input is valued. (Kotter J, Rathgeber H 2006, P132) choice of service (e.g. sit down or fast food

Raven stakeholders to show on location giving (Strebel, P 1996)

Force rating for change = 10 4 Poor quality Business fundamental rethinking and radical redesign of business processes to change the total product on offer; complete with sensory effects. (RDI Study Notes, process Empowerment

Force

rating

against change=5 of Staff were reluctant to as learn they new a of catering skills at first faced clash culinary cultures

food

transformation is the Staff

through

interactive training.

Assignment: Managing Change in Organisations, MBA. Student name and number - 12 3. Driving Forces (Help change) 5. Ways to strengthen Plan) 6 Ways to weaken Plan) 4.Restraining (working change) against achieve (Potential Action (Potential Action Forces

Managing

Change,

Unit 3, P5 of 20) Force rating for change = 9 Interactive with group employees can fellow P254) 5 Customers choice; Entrenched culture and work ethic had seen little change in last 50 years. demanded service down (Guardian 2008:14) Force rating for change = 9 6a eager implement refurbishment programme to act as catalyst to turn business Owners Implement to programme as Pilot Communication a strategy to target all stakeholders Force rating fast food and sit a Force rating

against change=5 and New service format

hands-on training moved staff out of receptive their comfort zones of and that resignations workers influence caused

(Carnall C 1999,

against change=3 Market forces in

operation e.g. a small but hardcore of old-faithful Little Chef customers did not welcome change

model for successful throughout the chain and invest incrementally into the revitalising the whole

Assignment: Managing Change in Organisations, MBA. Student name and number - 13 3. Driving Forces (Help change) 5. Ways to strengthen Plan) 6 Ways to weaken Plan) 4.Restraining (working change) against achieve (Potential Action (Potential Action Forces

to profitability

chain. Renovate modernise L C Popham as a pilot sensory scheme, effects to complete with multiencourage sales.e.g. musical toilets, coffee aroma Prove change is valid data and budgeting Force rating and

6b funds

Investment

available through

and owners in capital favour of change analysis. Force rating for change = 10

against change=1 External to 6

3. Forces (Help change)

Driving 5. achieve

Ways

Ways

to 4.Restraining Forces against change)

strengthen

weaken change is made)

(Situation if no (working

People,

places, Plan for change

People,

Things, in

environment 1 Owners eager to see a profitable operation 2 competitive brands had New

conditions 1 Economy recession

Careful planning of 2 business transformation

Porters (Porter

Five M

process Forces

1979) describe this

Assignment: Managing Change in Organisations, MBA. Student name and number - 14 3. Driving Forces (Help change) 5. Ways to strengthen Plan) 6 Ways to weaken Plan) 4.Restraining (working change) against achieve (Potential Action (Potential Action Forces

established themselves the market in

market force as new entrants Moto, Welcome e.g. Break Roadchef,

Substitute products, e.g. Costa Coffee competing for the same and 3 Menu outdated and overpriced. 3 Globalisation Research new trends changed e.g. 3 had new Persistent to menu be on (e.g. Research new trends customers resources.

(QuickMBA2009:18)

have habits

consumer demands accommodated foregoing

consumer eating MacDonalds, Burger King, a fast food culture

smoked

salmon and serving baked beans with breakfast) 4 Unexpected investment required, in was

4 excellence

Food

The

Capital

Budgeting process capital with realistic cash flow illustrating favourable

forecasts turbulent economic conditions, to equip Net kitchens to cook on

Present Value and the premises. IRR, tax rebates and government could incentives,

Assignment: Managing Change in Organisations, MBA. Student name and number - 15 3. Driving Forces (Help change) 5. Ways to strengthen Plan) 6 Ways to weaken Plan) 4.Restraining (working change) against achieve (Potential Action (Potential Action Forces

provide necessary

the

decision-making information riskinvestors. (Jarrett, 2010) 5 Research 5 Customer highlighted customer preferences on Address the change above. Revitalise the LC Competitors Popham branch to Strengthening their prove feasibility, own market share as LC posed no test technological links. computing installed (Little 2009:10) Chef, Cloud service choices 6 Customer decline in profit complaints for averse

complaints and process as described

changes e.g. Wi-Fi competition.

Integrating the forces: In weighing up the forces for and against change, the team should ask whether issues are valid, significant and could the forces be changed. Once it is clearly identified that change is desirable and that most stakeholders are ready for it, the planned transformational change would be feasible. (Carnall C 1999) Please see annexure 1 and 2.

Assignment: Managing Change in Organisations, MBA. Student name and number - 16 6 To evaluate how effectively the process of change was managed, two

frameworks stand out, being the 7-S Model and Kotter's 8 step process of change. The McKinseys (1980) 7-S models is centred around shared values and consider business performance around strategy, systems, skills, structure, staff and style. (12Manage 2009:9) Kotters model is however specifically tailored to manage change in organisations and therefore this model will be used as a guide, as explained in their book Our Iceberg is Melting. (Kotter J and Rathgeber H, 2006). Strebels Resistance to Change guidelines (Strebel P, 1996) is attached as annexure 3 and guides resistance to change.

Assignment: Managing Change in Organisations, MBA. Student name and number - 17 -

Kotter and Rathgebers 8-Step process of successful change for LC

2
Decide what to do and make it happen

3
Make it stick

Set the stage

1
Create a sense of Urgenc y

3
Get the desired change vision and Strateg y

4
Comm unicate for unders tanding and buy-in

Pull togeth er the guiding team

Empow er Others to act

Create shortterm wins

Do not let up

Create a new culture / Make it stick

RDI Notes Drivers of change linked to

http://www.dcsf.gov.uk/everychildmatters/strategy/deliveringservices/servicedirectories/models/changemanagementmodels

6.1 Create a sense of urgency Kotter and Rathgeber advocate the importance of dealing with change urgently. They propose that information should be presented logically so that thinking can begin to change, which, in turn, can change behaviour. (Kotter and Rathgeber 2006 P131) In accordance with this advice the CE addressed 250 LC managers on the LCs financial and operating status which, after the take-over, was in serious financial trouble.

Assignment: Managing Change in Organisations, MBA. Student name and number - 18 He gave them assurances that though they may be criticised for the state of the present LC operation, that he valued and respected them and forgave them for mistakes. His charisma, enthusiasm and drive won them over and the high staff turnover was arrested. (Bowler S, 2009:7) Strebel asserts that resistance to change manifests itself when staff consider that management have reneged on the psychological contract which is the implied mutual obligations employers and employees have towards each other. Once contravened staff consider the arrangement to be broken and they have no obligation to cooperate until they have reviewed their contract. (CIPD 2009:22)

6.2

Pull together the guiding team

Kotter and Rathgeber (2006) stress that the team need authority, analytical and leadership skills with excellent communication abilities. The change agent, an experienced manager in the roadside restaurant field, together with expert food and service consultant, Blumenthal formed a powerful and credible team with both individuals well respected in their own right. (Guardian 2009:8) There was however conflict between the Change Agent and the Consultant from the beginning. Scenes depicted tension between the Change Agent and the Consultant

Assignment: Managing Change in Organisations, MBA. Student name and number - 19 because the Change Agent had unique situational knowledge, being the inner workings of the business, its workflows and issues and was not willing to share this with the consultant. (Annexure 7 Episode 1, scene 2A and 5) Change agents and consultants need to be highly sensitive to their environment. A breakdown of these skills are attached as Annexure 4. Furthermore, these experienced leaders should have recognised that the scale of change pervaded the following spheres, and are likely to cause turmoil.

New Health and Safety regulatio ns e.g. food recycling, Staff


needed reassurance during unfamiliar training and trading conditions

Strate gy
Regulatory Markets and Customers

LC customers had become more health and cost-conscious, living a fast- lane, cost-conscious lifestyle. Market research was done to ensure the new menus would satisfy customers preferred consumer tastes. . The lost generation had to be reached through new marketing campaigns.

Organisation People and Culture

Kitchens had to be equipped and financed, Chefs training, restaurant and fast food services training, amidst unsettling circumstances. Supplier contracts had to be negotiated with local suppliers. New procurement systems had to be put in place.

Processes
Systems

The spheres of influence on LC during Change Management RDI Notes Organisational Development and change P9 of 15

The consultant overcame staff scepticism through his sheer passion for pursuing excellence. He was also willing to compromise on his own high standards.

6.3

Develop the change vision and strategy

Assignment: Managing Change in Organisations, MBA. Student name and number - 20 Kotter and Rathgeber (2006) stress that it is essential that the change team showed staff what the food-service product future will look like. Senior and middle management were consulted and through trial and error, the ideal menus, brand revival, refurbishment programmes were gelled into the central vision. Despite this, some disagreement still surfaced (Annexure 7 Episode 2, Scene 6) possibly a play on power (Strebel 1996) which was overcome through negotiation. Upon evaluation it is clear that the vision should leave no doubt as to what success will look like. The Consultant insisted on quality and the Change Agent insisted on profit. It was therefore essential to secure top management support. Middle management ensures standards are maintained but it is not sustainable if top management is not on board. (RDI Notes: Unit 3 Strategies and Models for Change, Business Process Transformation and Total Quality management P14 of 20) Please see annex 6 for further evaluation.

6.4

Communicate for understanding and buy-in

Kotter and Rathgeber state that as many stakeholders possible should be aware of the changes and promote their buy-in. To this end, a selection of talented LC grillers were selected to become involved in the new vision for LC and they became the change heroes. The Consultant demonstrated the essence of good quality food. Staff tasted, was trained and tested to recognise excellence and poorly cooked food.

Assignment: Managing Change in Organisations, MBA. Student name and number - 21 The authors state that the message of change should be spread widely to get acceptance. It is important to remind the staff how they fit into the organisation. (Kotter and Rathgeber 2006, P130) In evaluating the success of getting the message out, the change team cannot be faulted. The message of change at LC was most effectively dealt with through the TV series and was viewed by millions. This national interest has led to unprecedented growth for the group. Unfamiliar procedures, insecurities and fear of failure, can take their toll on sensitive staff members as it did at Popham when staff members walked out. This self-explanatory change iceberg illustrates that there is a wealth of hidden factors below the surface, in the sea of change. The relatively small area of management issues which break through is literally the tip of the iceberg. (Kruger W, 2008)

(12Manage 2009:24)

Assignment: Managing Change in Organisations, MBA. Student name and number - 22 6.5 Empower others to act

The Consultant removed the barriers that stand in the way of staff who want to embrace the vision. (Kotter J 2006) A model team was trained to become trainers for other LC outlets. Once mastered, the LC staff team trained other staff in the other two LC outlets in Kettering and York. The consultant embraced and recognised the staff as the bedrock of the organisation. And enabled their professional growth through learning.

6.6 Produce short term wins In line with Kotters advice, staff training and empowerment sessions were quick wins to gain staff confidence. A substantial landmark was the official relaunch of the first Heston Model which generated much publicity and renewed interest in the brand. The next motivating factor was the announcement that two further restaurants will be launched, based on the Heston Model. 6.7 Dont let up

Assignment: Managing Change in Organisations, MBA. Student name and number - 23 The Consultant agreed to supervise progress for three months and then management would decide whether to roll out further outlets. The authors visits have proved that standards remained consistently high.

Look to the future and anticipate change. (Jarrett 2010) 6.8 Create a new culture

Care in this crucial part of the change process begins to form the basis of the new culture in the organisation. The consultants input illustrated his genuine interest in the staff members, their growth and skills development, quickly resolving conflict as it arose. Conclusions: The Popham pilot programme was considered a success and the owners plan to launch a further twelve restaurants based on the Popham Model. (Catersearch 2009: 20) Change Management is a highly skilled job. It is now recognised that more than industry expertise is required to transform complex business problems. Consultants are expected to have business insights first before being able to generate strategic change.

Assignment: Managing Change in Organisations, MBA. Student name and number - 24 -

New Look Olympic Breakfast

In assessing the extent to which the change at LC was successful in meeting

its objectives it is necessary to recall the change objectives as listed in 4.2. The tangible objectives of the transformational change was highly visible. The renewal of the LC Brand and Logo and The Old but cherished British Logo (Manchester Evening News 2006)

Assignment: Managing Change in Organisations, MBA. Student name and number - 25 -

New Look

7.1

the refurbished premises the new menu. An appropriate model to assess the change at LC in its strategic entirety

would be the Balanced Score Card (Kaplan and Norton, 1992). (12Manage 2009:12) This model places the organisations vision and strategy at the heart, which drive the performance of the organisation. The four perspectives are:

Assignment: Managing Change in Organisations, MBA. Student name and number - 26 Financial Customer Business Learning and growth The Little Chef vision is: Good food on the go to be the motorist's friend, serving up quality food and offering great value for money. The author telephoned the LC Head Office for information on structures, a balance sheet, and staff retention but this request was turned down. In its absence the author will report on secondary research findings.

7.1.1

Finance

Their profit forecasts were widely publicized in the media. As the case study was televised, the public interest was strong. At take-over in 2007 LC was reported to have lost 3 million p.a. However an increase in sales of 250% was announced during the TV series. The LC website reports that since the Blumenthal intervention their sales are up 500% with a 150% year on year increase. (Little Chef 2009:10) Further reports announced that the group had bounced back, stronger than ever and had forecasted a profit of 3million for the year till December 2009. (Catersearch 2009:29)

The financial aspects of the Balanced Scorecard suggest that organisations also have intangible values that are not reported on in Financial Results. The Scorecard makes provision for branding and other intangible assets to be monitored.

Assignment: Managing Change in Organisations, MBA. Student name and number - 27 The owners of Little Chef have stated that their long term objective is to build up the brand and then sell it. R Capital bought LC for 10million, but it was previously sold for 52m when it changed hands. Their strategy to build up the brand is to increase its value and therefore the transformational change was a crucial step in its recovery of profits. Jarrett 2010. (Shares Magazine 2009:19)

7.1.2

Customers

Media reports stated that LC, despite its decline, still had 11 million customers(2007). In assessing the success of achieving an improved service objective, it is reported that LC has more than 20 million customers walking through its doors since the changes were brought about at the Pilot Restaurant. This figure will undoubtedly be increasing as sales increase. Personal visits to the Little Chef have proved to be an enjoyable, value for money experience, true to its vision statement. 7.1.3. Business LC underwent a transformational business process transformation as can be seen from the preceding parts of this report. The organisation is now fully geared to base their business model on quality food and service, (Annexure 7, 4/5) Because of the scale of the business the Consultant negotiated supplies from local suppliers. This will be generating a great deal of goodwill in the local areas around the 176 outlets. Change has stimulated the business profitability and growth objectives.

7.1.4 Learning and growth The growth of the business is evident in further media reports that the Consultant will be opening a further 12 LC outlets in 2010 (Catersearch, 09:30)

Assignment: Managing Change in Organisations, MBA. Student name and number - 28 -

Camaraderie in learning

Undoubtedly

structures

were

altered

to cope with the business

process

transformation. This was unfortunately not obtainable. A change in structure is known to change the culture of the organisation as well, as management often become more accessible in flatter structures that are more responsive to their customers. As the organisation changes the culture changes to keep abreast of its environment and staff do not get stagnant. (RDI notes Unit 1 Lesson-Drivers for change P 13 of 15 Drivers for change) M.Jarrett 2010. personal experience. A further development is apparent in evaluating the change process. Ackerman

(1997) states that a transitional change takes place within the scope and context of the transformational change. From this change LC has emerged as a learning organisation. The Consultants transfer of knowledge and skills has changed the staffs perception and approach to their end product. The skills they had gained through exposure to improved processes, represents a source of power and pride in the staff. (HRPlatform 2009:23)

Assignment: Managing Change in Organisations, MBA. Student name and number - 29 -

Organizational level change does not follow a linear pattern that can be duplicated and applied restaurant after restaurant. Each one will have their own unique character and a crucial emergent element. It is therefore necessary to capture the leaning experience gained to be applied and refined where needed. Such actions will lead to the LC becoming a learning organisation and one of excellence as the change team becomes more skilled. (RDI Notes Module Managing Change in Organisations Drivers for Change P13) In conclusion, it can be stated that LC had achieved the objectivises they set themselves to change.

Business Process Transformation is not a panacea for an ailing business and needs ongoing refinement making the company agile in meeting the constant changes occurring in the business environment. (RDI Notes Business Process Transformation and Total Quality Management Top Tips P9 of 20)

Throughout the analysis of the LC case study the author observed that no direct input was given to staff except to interact and train them for the new job descriptions. Little Chef, could be well advised to deal with staff issues more sensitively by implementing Human Resource policies that support staff through the enormous changes that lie ahead for the LC staff.

Assignment: Managing Change in Organisations, MBA. Student name and number - 30 The change earned them much sought-after recognition in British Good Food Guide. The change has not just affected the processes and systems but the staff had changed in the process of adapting to change. The stakeholders of Little Chef face an optimistic future. 7.1.5 1 2 It is therefore RECOMMENDED that: Human Resources Policies be developed to deal with the human process when Little Chef Those e-learning opportunities be created for staff who are eager to embrace the vision and open themselves up for professional growth, personal development and career opportunities within the group. Jarrett 2010.

Assignment: Managing Change in Organisations, MBA. Student name and number - 31 -

Bibliography Books and e-Books Beitler M, 2009 Strategic Organizational Change (Second Edition) The strategy driven approach Chapter 1 E-book [Online] available from http://www.mikebeitler.com/strategic-organizational-change/Strategic-OrganizationalChange-Chapter-1.pdf Carnall C 1999, Managing Change in Organisations Forcefield Analysis, Europe, Prentice Hall, Holbeche L, 2005 Understanding Change, Theory, Implementation and Success

Imprint: Butterworth Heinemann Paperback, 432 pages, publication date: OCT-2005 , ISBN-13: 978-0-7506-6341-0 ISBN-10: 0-7506-6341-3 Kotter, J & Rathgeber, H (2006) Our Iceberg is Melting, London UK, MacMillan Mullins, L (2005) Management and Organisational Behaviour 7th edition Pearson Education Limited Journal

Assignment: Managing Change in Organisations, MBA. Student name and number - 32 Strebel, P. (1996, May/Jun). Why do employees resist change? Harvard Business Review 86-92. Strebel, P. (1998) Why Do Employees Resist Change? In Harvard Business Review on Change. Boston: Harvard Business School Publishing, pp. 139157. (originally published in May/June, 1996 issue of Harvard Business Review) Podcasts: TV Programmes, Big Chef takes on Little Chef and Did Heston change Little Chef: available from: www.itunes.co.uk/TVProgrammes/Non-Fiction, Two Four productions Limited, 4 episodes, Internet: 1 Corporate Author, 2009 Companies: Little Chef, Article, Caterer [Online] available from http://www.caterersearch.com/Companies/33957/littlechef.html [accessed 20 November 2009] 2 Ackerman (1997) Northumbria University for JISC, Change Management Types of change articlehttp://www.jiscinfonet.ac.uk/infokits/changemanagement/types-of-change 3 Corporate Author n.d. Tutor2u Strategic planning setting objectives [Online] available from http://www.tutor2u.net/business/strategy/objectives.htm accessed 8 Jan 2010 4 Unknown, n.d. Growth Finance RCapital website [Online] available from http://www.rcapital.co.uk/growth.html 5 Iskikawas K Fishbone or Cause and Effect Diagram 12Manage.com [Online] available from http://www.12manage.com/methods_ishikawa_cause_effect_diagram_es.htm l accessed 14 January 2010 6 Lewin K, 1982 Forcefield Analysis available from [online] http://www.12manage.com/methods_lewin_force_field_analysis.html 7 Bowler S, 2009 The Guardian The Friday Interview 16 January 2009 Faith, hope and fast food. The big chief getting Little Chef motoring - Ian Pegler, visionary with evangelical determination to drag his roadside diner chain back from the brink. [Online] available from

Assignment: Managing Change in Organisations, MBA. Student name and number - 33 http://www.guardian.co.uk/business/2009/jan/16/friday-interview-ian-pegler accessed 3 Oct 09 8 Wachman R 2007 The Observer, Guardian.co.uk Business Little Chef makes a stand over logo Sunday 8 July 2007 edition http://www.guardian.co.uk/business/2007/jul/08/theobserver.observerbusines s2 9 Peter T & Waterman R, 1978 7-S Framework (McKinsey) 12Manage.com [Online] available from http://www.12manage.com/methods_7S.html accessed 12 January 2010. 10 Corporate Author 2009, Little Chef Home Page Did Heston change Little Chef? [Online] available from http://www.little-chef.co.uk/promo/channel4 accessed 20 January 2010 11 Kotter J 2007 Change step Cards, Step 3 Develop the Change Strategy and v vision available from http://ouricebergismelting.com/html/card3/html accessed 3 January 2010 12 Kaplan and Norton, 1992 12manage.com The Balanced Score Card [Online] available from http://www.12manage.com/methods_balancedscorecard.html accessed 13 Jan 2010 13 Rogers J 2009, C4's Big Chef attracts a tasty 3.1m 20 January, Article [Online] available from http://www.broadcastnow.co.uk/news/multiplatform/news/c4s-big-chef-attracts-a-tasty-31m/1970007.article acessed 12 December 2009. 14 Wachman R, 2008 Guardian.co.uk The Observer Little Chefs healthier recipe [Online] available from http://www.guardian.co.uk/business/2008/jul/13/fooddrinks.retail/print Accessed 13 Nov 2009 15 Corporate Author, n.d Tutor2U, Principal agent problem website [Online] http://tutor2u.net/economics/content/topics/buseconomics/principal_agent.htm accessed 12 December 2009

Assignment: Managing Change in Organisations, MBA. Student name and number - 34 16 Corporate Author, n.d. Sachs International Forcefield Analysis Template [Online] available from http://www.sachinternational.com/library/higher_diploma_seminars/tim_mills2. htm#proforma accessed 11 December 2009 17 French and Rave (1960) maintain that societies hold unseen Bases of Social Power that are all pervasive [Online] available from http://www.12manage.com/methods_french_raven_bases_social_power.html 18 Porter M 1979 QuickMBA strategic management Porters Five Forces theory [Internet} available from http://www.quickmba.com/strategy/porter.shtml accessed 2 Jan 2010 19 Corporate author, April 23, 2009, Shares Magazine, Bouncing back Article [Online] available from http://www.sharesmagazine.co.uk/node/5186 [accessed 29 October 09] 20 Corporate Author 09, Catersearch Heston Blumenthal to overhaul 12 more Little Chefs article [Online] available from http://www.caterersearch.com/Articles/2009/07/27/328898/hestonblumenthal-to-overhaul-12-more-little-chefs.html accessed 15 January 2010 21 McNamara C, 1997. Handout: Mr Ian Norman, Lecturer, Blakehall College, London, UK, Management Library, [Online] http://www.managementhelp.org/org_chng/keyterms.htm accessed on 25 September 2009 22 No author 2009, CIPD, Psychological contract Guidelines, [Online] http://www.cipd.co.uk/subjects/empreltns/psycntrct/psycontr.htm? IsSrchRes=1 23 Corporate Author, n.d. articles HR Platform, What is meant by change? [Online] available from http://www.hrplatform.com/content/c/change_management_primer/3.html 24 Kruger, W 1980 Change Management Iceberg, 12Manage.com [Online]

Assignment: Managing Change in Organisations, MBA. Student name and number - 35 Available from

http://www.12manage.com/methods_change_management_iceberg.html
Accessed 10 January 2010

Annexure 1 Charles Carnall 1999 contends that Increasing the strengths of driving forces runs the danger of ignoring those stakeholders who are apprehensive about what the changes will lead to. The changes undergone by Little Chef have been drastic and therefore the turmoil this will cause during the human process interventions such as conflict management, team building, management development, organisational learning and communication will require perceptive and insightful management. The technical processes such as operational issues, food production, marketing, finance, logistics and technology processes will require skilled attention as this enormous scale of change will affect all these aspects.(Beitler M, 2009) Annexure 2 An alternate way to analyse L Cs drivers for change could be the application of Hamel and Prahalads Core Competence model applied to establish competitive advantage. These could be used to build on LCs internal strengths as opposed to being based on internal and external forces that drive change. Hamel and Prahalads Core Competence model theorises that competiveness emerges from

Assignment: Managing Change in Organisations, MBA. Student name and number - 36 the strengths of the core competences of a business. Building on these strengths is a cost-effective way of building the businesss capacity. Little Chef have core competencies which meet the criteria of the theory. They are: Having access to a wide variety of markets Contribute significantly to the end product benefits Be difficult for competitors to imitate and Hamel 1990, Core Competence Model QuickMBA

Prahalad

http://www.quickmba.com/strategy/core-competencies/ 2 Jan 09

Little Chef infrastructure and intangible assets include: 1. 176 trading premises throughout the UK where planning permission for similar projects would no longer be granted by local Councils. Competitors would not be able to imitate this.

2. L C are co-located with several Travelodge Hotels and Burger King franchise
holders, thereby contributing to end-product benefits.The British iconic Little Chef brand with its The Fat Charlie logo, which provides competitively priced food into the heart of the the UK road network reaches a wide variety of markets.

Corporate author, 2009 Bouncing Back, article in the Shares Magazine, April 23, 2009 edition, [internet] available from http://www.sharesmagazine.co.uk/node/5186 accessed on 2 November 2009. Though Hamel and Prahalad applied their theory to using core competence which would feed into various end-products it could be argued that Little Chefs core competencies meet their theoretical criteria.

Assignment: Managing Change in Organisations, MBA. Student name and number - 37 Their Core Competences being a network of 175 Established co-located trading Outlets could therefore be a Driver for change Prahalad and Hamel 1990, Core Competence Model QuickMBA

http://www.quickmba.com/strategy/core-competencies/ 2 Jan 09 Annexure 3 Strebels Resistance to change model In assessing resistance to change Look for: Closed attitudes Entrenched cultures Inflexible arrangements and methods and procedures (like e.g.cutting quality of food) Clashing attitudes towards change efforts or goals Look at re resistance to change for forces that may be correlated with each other Describing the resistance threshold in terms of power and resources needed to deal with the resistance (Strebel P, 1996) Lecturers Handout , Mr Ian Norman, Blakehall College, obtained from

www.ln.edu.hk/mgt/staff /change EMBA Lecturers Handouts 2009 Mr Ian Norman, BHC, Leading Change, from slides of Barbara Senior Organisational Change Lecturers Guide 2002, available from http://www.ln.edu.hk/mgt/staff/robin/Change/EMBA%206%20amended1.ppt accessed September 2009. Annexure 4 Change consultants should possess the following competencies: Excellent rapport among all stakeholders, and should have especially good collaboration within the change team, have the ability to manage change, data collection,

Assignment: Managing Change in Organisations, MBA. Student name and number - 38 problems solving and reporting to clients.

RDI Notes, 2009 Unit 2, Identifying, Understanding and Involving others in Change, P2 and P8 of 19 Understanding Change through Consulting. Once the nature of the change has been identified the change team should possess and be suitably equipped to: Recognise the emotional response to change, even in management ranks, to ensure the commitment to and acceptance the change. Demonstrate top management s visible and active support for the changes Listen and communicate consistently with those involved to build commitment Provide the required support for the processes in terms of new skills and resources that may be required. RDI Notes Unit 1 Change Management :The Business Context, Organisational Development and Change P12 of 15 Furthermore, the change team should possess project management skills, a thorough understanding and agreeing on the change objectives, then the skills to orchestrate people, processes and systems. In studying the case study it became apparent that the communication among the change agent and consultant was sorely lacking. RDI Notes Managing the Change Programme P 1 of 16 Kotter J and Rathgeber (H 2006) P 130 Annexure 5 Furthermore, if the Penningtons Proposed change matrix below had been applied to LC, it would have been clear that the proposed changes would cause high disturbance and was high risk. The changes were radical, especially at the core of the business. Staff who had been preparing food out of packets for years were called on the cook and serve food of a high standard from quality raw ingredients, in a very short period of time and expected to perform under duress.

Assignment: Managing Change in Organisations, MBA. Student name and number - 39 -

Proposed Change Pennington (2003)

Radical
High Disturbance High Risk Moderate Disturbance Lowish Risk

Core
Moderate Disturbance Moderate Risk Low Disturbance Low Risk

Peripheral

Incremental
Own Illustration on Proposed Change. Pennington theorizes that if the character of the planned change could be plotted on the graph, the change agent would sense how the change may affect the organisation. This radical changes brought about in LC were substantial. (Northumbria University 2009 :23) Annexure 6 The Consultant insisted on the best quality of food to hang his strategy onto and the change agent kept looking at using cheaper ingredients to satisfy the profit motive. This could be ascribed to the principal/agent problem whereby the change agent and consult do not share a common goal and their goals are not known to the owners. (Tutor2U,n.d:) In evaluating the teams effectiveness their persistence, which to the casual TV viewer may appear to be petulant behaviour, became clear. The Consultant was adamant that for business process transformation to be established the quality of the food was crucial to the success of the new model.

Assignment: Managing Change in Organisations, MBA. Student name and number - 40 -