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Table of Contents
Understanding the background to organizational strategic change...........................2
Different Models of strategic change at organizational level...................................2
Evaluation of relevance of models of strategic change in current economy...........3
Assessment of the value of using strategic intervention techniques in
organisations........................................................................................................... 4
Understanding issues relating to strategic change in Tesco Plc..................................5
Examination of the need for strategic change in Tesco Plc......................................5
Assessment of the Factors that are driving the need for change in Tesco Plc.............5
Assessment of the resource implication of Tesco not responding to strategic
change.................................................................................................................... 7
Leading stakeholders in developing strategic change................................................8
Development of Systems in Tesco Plc to involve Stakeholders in the planning for
Change....................................................................................................................... 8
Development of change management strategy with stakeholders.........................8
Evaluation of the systems used to involve stakeholders in the planning for change..9
Plan for implementation of models for ensuring ongoing change............................10
Creation of a Strategy for managing resistance to change...................................10
Development of appropriate models for change...................................................10
Implementation Plan for the Model of change.......................................................10
Development of appropriate measures to monitor progress....................................11
Bibliography............................................................................................................. 12

Strategic change management


In order to survive and remain stable in a competitive market, all businesses require
management of strategic change. This can be brought about by managing certain forces of
change and utilizing them in allowing the business to make continuous improvement and
success.
This short report will devise a strategic business change plan for the enhancement of the
chosen organization i.e. Tesco Plc. This will be carried out by initially understanding the need of
strategic change, relative issues and role of stakeholders in this change process, and finally
developing and assessing the strategic change model.

Understanding the background to organizational strategic change


Different Models of strategic change at organizational level
There are various models of strategic change which must be followed, depending upon
the situation, for the proper management of change. They are detailed here below:
Kotters Eight Steps. Kotters conducted a study based on 100 organizations, and
formulated a continuous cycle based on eight steps, which must be followed to bring about a
change in an organization. These eight stages are:

Establishment of a need to bring about a sudden change


Formulation of s strong controlling association
Development of a strong vision and sound strategy
Communication of vision within organizations management, authorities and employees
Removal of hurdles faced and authorizing a strong and quick action plan
Planning of short-term objectives and goals
Consolidation of gains (Consulting, 2013) and profits
Anchor in the organizational culture (Consulting, 2013)

Bridges Transition Model (Consulting, 2013). This model is basically a process based
on three stages which assesses the psychological behaviour of workforce toward the change.
First stage is based on sharing the need for the change within the workforce and management.
Second stage is to motivate employees toward acceptance of the change. And last stage is based
on showing and forecasting that how the organization will look after bringing about that change
(Consulting, 2013).
Rodgers Technology Adoption Curve (Consulting, 2013). This model is based on
assessing life cycle of how the new change in product or service and innovation will be treated
and accepted by the audience (employees and consumers). This is made using a Bell-curve,
which shows the different levels of audience who accept and use the product, categorized as
initial adopters (innovators), early adopters, early majority, late majority and laggards
(Consulting, 2013).
Proscis ADKAR model (Consulting, 2013). This model basically assesses the change
management. It is divided into various steps. For example, in first step, an awareness is
developed which describes need for the change. In second step, the management evaluates and
support the changes. In third step, skills are adopted for bringing about that change. In next step,
change is implemented. And in the last stage, change is sustained by maintaining a required
organizational culture.
Evaluation of relevance of models of strategic change in current economy
In order to implement strategic change within organizations operating in current
economy, above models can be applied depending upon the need and requirement of change
within organizations. For example, organizations which tend to change their structure, hierarchy
or want to upsize or downsize itself, can make best use of Kotters eight steps model. However,
this is a costly change approach.
Similarly, Rodgers technology adoption curve can be best implemented within
companies which needs to bring change by introducing or deleting a product or service in the
market, or by initiating a new process within its hierarchy. This model is best suitable for
companies facing sudden decline in the current economy.

Bridges transition model is best suitable for those companies who want to invest less on
continuously improving the organizational performance. Lastly, Proscis ADKAR model is best
recommended for those companies which tend to change the poor performance of their product
or service as soon as possible.
Assessment of the value of using strategic intervention techniques in
organisations
Strategic intervention techniques are highly valuable for organisations. Generally, these
are the intended, carefully measured and focused procedures which tend to enhance the
organisational development, significance and feasibility. Within the current global industries,
such intervention techniques alters the vision, goals and culture of an organisation such that it
can adapt itself to changing global business and technological environment, and gain a
competitive edge in the market. Moreover, intervention techniques are carried out to get desired
outcomes, and assist the sustainability of the organisation.
Such intervention techniques vary from one business and organisation to another. If some
intervention techniques enhance the business and organisational performance of one company,
then they necessarily cannot give similar results in some other organisation. This shows that
every company needs to develop its unique intervention technique, suitable to its organisational
culture and available physical, financial and technological resources etc. However, these
techniques are adopted to get similar outcomes, such as to prosper globally, retain loyal
customers and employees, prevail healthy work culture, and bringing required change for getting
continuous success.

Understanding issues relating to strategic change in Tesco Plc


Examination of the need for strategic change in Tesco Plc
Change management. Tesco has currently been facing a sudden need for change after
the resignation of its leader Sir Terry Leahy. Tesco needs change in order to gain competitive
edge in the market; to be adaptable to changing market and sustain focus for the accomplishment
of the future goals and objectives (Strategic change management, n.d.). Various political factors
(government laws and regulations), economic factors (employees problems), sociological
factors (consumers demands), technological and environmental factors drive the Tesco
management toward change. Thus, it needs to follow Kotters eight steps for bringing a
productive change within its organisation.
Crisis management. Recently, in start of the year 2013, Tesco was faced with failure of
trust between itself and consumers when horse meat was found within its beef products. In order
to manage this crisis, the Tesco management investigated and accepted their fault since the
suppliers were found responsible for supplying unhygienic horse meat. Beside acceptance of this
fault, this crisis has put great pressure on Tesco to regain its consumers confidence on its
products, since it was Tescos responsibility to check products delivered by the suppliers, before
delivering them to customers (Lewis-Jones, 2013).
Creativity and innovation management. With new entrants and rivals in the food
retailing industry, there is great need for Tesco to manage and introduce creativity and innovation
among its products and services. It requires adoption of top-rated technologies, diversity within
its products, strengthening relationship with consumers (Innovation drivers, 2013) and quick and
easy delivery to the target consumers.

Assessment of the Factors that are driving the need for change in Tesco Plc

In order to bring about a change in an organization, certain things, matters and situations
exist, either internally or externally, which affects the organizational business in both positive
and negative ways. These factors for change are categorized into external factors and internal
factors, as stated below:
Internal factors. These factors exist within a company and are controllable by it. They
include factors such as administration, problems related to employees, organizational culture and
finance management (Viper1usmc, n.d.). These internal forces for change are explained as
follows:
Administration. Administrative factors, such as decision making, leadership and
motivational approaches force organizations to bring about change. Whether a company has
problems dealt while making decisions, or faces poor leadership or requires proper application of
motivation, all of these situations demands an establishment of change and its proper
management.
Employees. Employees play an important role in change management. When an
organizations sees that its business is not being productive and needs change within its hierarchy
and management, it requires a better coordination among its employees. It needs to offer better
facilities and establish trust with its workforce, so that they improve their performance and prove
productive for the company.
Organizational culture. The culture within an organization is one of the major internal
demographic force. A company needs to revise its culture and assess that whether its helping it
its accomplishment of goals or need revision. It can introduce diversity in order to deal better
with the change management.
Finance management. The financial status of an organization is of great importance. The
better handling of stocks, revenues, profits, sales etc. requires spontaneous changes in order to
adapt to the current market status.

External factors. These factors exist outside a company and are beyond its controllable.
These driving factors are comprised of certain factors such as technology, market place,
government rules and regulations, labour market and economic changes (Lunenberg, 2010).
Technology. With advent of latest technologies in each era, a quick change is always
demanded, as consumers attract to those businesses products and services which are based on
up-to-dated and top-rated technologies.
Market place. The current market status, introduction of new rivals etc. demands an
organization to make relevant changes for gaining competitive edge in the industry.
Government rules and regulations. With passage of time, every states government issues
new laws and regulations related to employees pays, promotions and hiring policies (Lunenberg,
2010). So, every organization needs to bring about relevant change in its operations accordingly.
Labour market. Education, expertise and skills of the labour market are among those
driving forces which require an organization to manage a proper change in its workforce.
Macroeconomic changes. Macroeconomic factors also demand changes within an
organization. These factors include growth and exchanges rates, money and credit, total profit
and income earned etc. (Viper1usmc, n.d.).
Assessment of the resource implication of Tesco not responding to strategic
change
Various resources exist within Tesco which does not respond to strategic change. For
example, in order to expand the newly established Self-checkout system, Tesco needs more IT
staff and infrastructure. However, lack of IT infrastructure and workforce is hindering the
diversification of implementation of this process in all of its retail stores.
Secondly, human resource management also hinders the timely implementation of
strategic change. Their less cooperation and partial participation elongates the implementation,
resulting into more wastage of time and money.

Thirdly, leaders who oppose the strategic change do not lead and train their teams well,
who due to less motivation are not inspired to quality performance and outcomes.
Lastly, extra time and money to be spent while hiring new IT staff is also another hurdle.
In case Tesco has to downsize its workforce, such as in case of recruiting IT staff and firing lesseducated cashiers for the new Self-checkout system, more redundancies will arise.

Leading stakeholders in developing strategic change

Development of Systems in Tesco Plc to involve Stakeholders in the planning


for Change

In order to enhance quality standards and promote continuous improvement and change
within Tesco, its change management needs to apply a system, based on various steps, as detailed
here below:
Engagement of employees in change management. Any change is either welcomed or
disagreed by the employees of an organization. In order to deal with this uncertainty, the change
management must engage all employees in the change process and assess their reaction toward
it. They must take proper measures in understanding and convincing them by showing them
productive output that could be gained by leaving old tactics and adopting the new one through
change process (Successfully implementing change, 2006).
Motivation through Communication. The change management must motivate
employees by properly communicating with them the need and future prospects of the change.
They must welcome their critics in order to make necessary amendments wherever possible and
desired.

Assessing using a Trial Model. The change management must conduct and apply change
process on a small group of people who approve it, in order to assess and evaluate its working
and success, and thus make necessary amendments where needed.
Sharing the Results. The most important process is sharing the feedback of the
evaluated process to the audience. This will ultimately bring attention toward the change activity
(Successfully implementing change, 2006).
Development of change management strategy with stakeholders
In order to develop a change management strategy with stakeholders, following steps
must be taken:
Suggestion sessions. Different focus groups should be made within the management
which present ideas and change plans to the stakeholders. All of them must be allowed to
participate in making suggestions.
Semi-structured panel interviews. In these interviews, a stakeholders group should be
presented in front of the panel where relative issues and queries are discussed, and decision
making is done.
Analysis of stakeholders interests. The reviews and interests of all stakeholders must
be sought, complied and saved for future uses, such that whenever a need for change is required,
it can be consulted for making required decisions.
Time lines and Visual representation. Tesco management should develop a timeline
after consultation with its stakeholders, which draw light on past, present and forecasted change
outcomes. Moreover, visual aids must be sought to better reflect on the ongoing change
procedures.

Evaluation of the systems used to involve stakeholders in the planning for


change

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Tesco believes in establishing proper two-way communication with tits stakeholders


while introducing and developing a change. According to Change management (n.d.), Tesco
considers the engagement of its stakeholders as a tool to measure the risk and opportunities
associated with bringing about that change. By involving stakeholders in issues discussion
through formal and informal meetings, websites, questionnaires, various events etc., they are
found to be more motivated toward bringing out that change. Moreover, the stakeholders are
welcomed while discussing the control and development plans of the change at Tesco. This also
inspires them to present innovative ideas regarding the process for change plan. Furthermore, the
company has its own site (www.tescoplc.com) which shows updates and details about related
plans. This keeps the stakeholders continuously updated of the ongoing change process. The
stakeholders are further facilitated by communication with investor relation teams (Change
management, n.d.) who email them the private details. In this way, stakeholders feel greatly
engaged when they are invited over events for enhanced interaction with the organization.
Plan for implementation of models for ensuring ongoing change
Creation of a Strategy for managing resistance to change
In order to manage resistance to change, Tesco needs to adopt following strategy to
minimize the resistance:
Firstly, it must collaborate with interested stakeholders groups and seek their associated
recommendations. Secondly, strategic change plan must be presented in both oral and written
documented forms to the stakeholders. Thirdly, presented change model must not contradict the
fulfilment of personal and professional needs of any of its stakeholders. Next, change plan must
be evaluated regularly for making amendments wherever possible. Furthermore, required
training must be provided for getting positive outcomes and minimizing resistance.
Development of appropriate models for change
Firstly, the Tesco management must show need and requirement of the strategic change to
be implemented. This can be done by setting discussions panels, presenting factual data,
engaging into collaborative debates and, welcoming and defending criticism from all
stakeholders.

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Secondly, it must arise the need for implementation of strategic change by forecasting
poor outcomes of suspected threats. Furthermore, the company should present opportunities
which must be availed in time. The leaders must be convincing enough to motivate teams toward
approval and desired performance. Moreover, it must seek approval from both external and
internal stakeholders to better reflect need for change.
Implementation Plan for the Model of change
Tesco Plc must set a Change management strategy based on various guiding principles
while setting the change. These include:

Implementation of change through Kotters 8 steps model which creates urgency for change,
forms a strong coalition, develops and communicate the vision for desired change, removes

obstacles and continually improves the change plan.


Gaining assistance from top (executive) to bottom (workforce) management.
Setting goals and objectives which are forecasted to be gained from the continuous process of

change.
Gaining commitment of people for success of the change process (Successfully implementing
change, 2006).

Development of appropriate measures to monitor progress

Tesco must monitor the change process further by adopting following steps:

The change processs progress must be supervised by continually observing new threats and
opportunities in the industry.

The change processs outcomes must be presented with utmost transparency of financial
performances to general public, governmental bodies, employees, customers, suppliers,
investors, shareholders etc.

The organization must design its change process after evaluating the skills of the competitors,
which they must surpass in order to get competitive advantage in the industry.

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Tesco Plc should monitor its change plan by continually examining its target audience; the types
of existent and required resources, and their need and sources; and associated action plans.

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