SBINNGO1 ~ Manage Organisational Change 9 Introduction Blockbuster LLC, formerly Blockbuster Entertainment, Inc, and also referred to as Blockbuster Video or simply Blockbuster, is an American-based provider of movie and computer game rental services through a video rental shop, DVD-by-mail, streaming, video on demand, and cinema theatre, Blockbuster began to lose significant revenue during the 2000s, and therefore the company filed for bankruptcy protection in 2010. the subsequent year, its remaining 1,700 stores were bought by satellite television provider Dish Network. In November 2013, the last 300 company-owned stores were closed. Blockbuster under the group of Dish Network must change so as to still be relevant and to compete in an arena that has been greatly disrupted by giants like Netflix, Apple TV, Disney + and YouTube. As such, we've planned to develop a new product that can safeguard the Blockbuster’s position and increase its sales revenues. Project ynsor Adarsh ~ Change Project Sponsor Adarsh will be implementing these changes based on his management of the project and different facets of the project. He will be observing the performance of the project and managing his team. Project Objectives The organisation will create a development department and develop a replacement product Innovative to the buyer market. 1, Mobile and television Application or streaming service which customers can watch movies online and download (by limit of data to observe it offline, 2, Online Website which the services are going to be almost like application and may be used an equivalent login account. PRAVESH BHATTARAL ~00004911 3SBINNGO1 ~ Manage Organisational Change 10 The measurable objectives for the project are: > the merchandise completed consistent with deadline, > The project are launching consistent with deadline, > Team morale remains high, > The increasing of company profit. 3, Determine the type of streaming specificity. Video streaming service on demand is a general conception, and you should understand what niche in this area you will choose, What types of movies or TV programs your website or mobile app will contain, or maybe you plan to build a streaming service for kids and it will include cartoons and developing TV shows, Change Objectives and Principles > The team is expected to abide by the team cohesiveness and communications policy and Procedures. yv We are expected to be formed on the sole basis of innovating the new product and ensuring the organisation is coming on board to the new changes. v Effective change doesn't just happen by chance, and any plan you make has to be right for your organization. The way that change projects are managed can vary from organization to organization. Some have very rigid change methodologies, while others are more open and flexible in their approach. v Sponsorship: How will you secure, engage and use high-level support and sponsorship of the change? 7 Involvement: Who is best positioned to help you to design and implement the change? For example, will you need external expertise? Or can you use internal resources? v Buy-in: Change is most effective when you are able to win support from people across the business, How do you plan to achieve this? v Impact: Finally, think about what success should look like. How will you predict and assess the impact of the change that you need to make? What goals do you need to achieve? v Respond to the customer's changing business requirements while maximizing value and reducing incidents, disruption and re-work > Ensure that changes to configuration items are recorded in the Configuration SS PRAVESH BHATTARAL ~00004911SBINNGO1 ~ Manage Organisational Change uu Change Plan Elements ‘The elements for the change plan include human resources ie. training and hiring, the overall Systems of operating including product development, and the people and culture to be innovative, Successful change formulas involve (vision, benefits, sponsorship, resources and methodology. If any of these five ingredients are left out, the outcome won't taste all that great. For example, if aligned vision is lacking confusion sets in quickly. The key word being aligned. If senior leaders have varying ideas of what success looks like, things get messy really fast. When the benefits aren't clear (or not clearly communicated), ambivalence occurs. Without full sponsorship from leadership, resistance spreads. Without resources, frustration, Without a clear methodology and approach, procrastination becomes the norm. Rationale for the Change The drivers for the change lie in the company’s current status, The company has been deteriorating greatly due to a shift in the consumer trends and demands. As such, there has never been a greater demand for change in order to re-invent itselt. The Risks for these change processes are Risks Identified Impact Likelihood | Control Poor product igh Medium Ensure that the product development development is carried out effectively. Continuously improve Poor customer High Medium Ensure that there is a marketing plan awareness of new developed and Conducted. Implement product continuous improvements Non-productive High Medium Ensure that the product development financial investments is carried out effectively. Continuously improve, Non-adherence to Medium [High Monitor project closely. Allow for timeframe some margin of errors. PRAVESH BHATTARALSBINNGO1 ~ Manage Organisational Change R Poor team High High Develop team buildings. Cohesiveness. Continuously improve. Resistance to change is | High High Achieving incremental, demonstrable a common risk factor. success with small-scale change projects. This helps build credibility in the organization and facilitates the implementation of future projects. Work-related stress [Medium | Medium Monitor conditions and _ provide counselling and day Operational Medium Medium ‘One strategy to minimize the impact is disruptions are to determine —the_—right another risk factor of implementation pace, which will vary organizational change depending on the size of the company and the complexity of the project Key Stakeholder Analysis The company staff, manager and CEO who are waiting for the new changes. The consumer who expected the innovative of servicing would be change their experience. Some stakeholders might be more interested in the financial management aspects while others will have a greater stake in the technology side. Then, there will be those who are looking at the change from a C-suite point-of-view and are concerned with the greater implications on your company’s enterprise strategy. It’s important to recognize the different internal stakeholder groups. While this will differ from company to company, these groups usually include: Key executives, Project sponsors, Subject matter experts, Process owners, Business unit leaders, Individual end users. A stakeholder analysis allows you to understand the needs and perspectives of these decision makers, as well as other individuals who influence different stages of the projectWhat are their motivations and objectives? What changes would they like to see? When you consider how each person might feel about the current state and what they expect from organizational PRAVESH BHATTARAL -0SBINNGO1 ~ Manage Organisational Change B change, you can balance their needs with the overall business needs. You can also identify any barriers or misalignment that might impede your progress With any enterprise-wide change, you run the risk of experiencing change resistance. Even if the change will benefit the company and solve pain points, employees often hold tight to the familiar, This is especially the case when new technology, such as an ERP system, is introduced. A stakeholder analysis helps you craft compelling messages that resonate with each identified stakeholder, Your messaging will correspond with each individual's pain points, attitude toward change and level of influence, The messaging you use for change advocates will, of course, be different than your messaging for end users. While the basics of your elevator pitch will stay the same, you will need a different emphasis depending on each group's pain points. You also will be setting different expectations depending on each person's role in the project. Assessment of Readiness to Change A change readiness assessment helps you gauge how ready your organization is for a change. It looks at things like awareness, receptivenes ;, and capacity as it relates to an upcoming business transition. This guide is designed for Organizational Change Management Practitioners, HR, Project & Program Leads, Business Readiness Consultants, Organizational Readiness Analysts, and other practitioners for conducting the most effective readiness assessments for a business change. A change readiness analysis is a critical component of change management as it increases the success of the business change. ‘The company staff and CEO are waiting for these changes as they know that the golden age of video renting model has ended. The remaining staffs are technology-focused and innovations- focused therefore they are spearheading for change in the company's conduct and communication, PRAVESH BHATTARALSBINNGO1 ~ Manage Organisational Change 4 Key Change Messages v We will be losing our largely customer support and retail department. y However, there will be a new product development team. v Products will be developed to be marketed to the current consumers. v Consumer groups expect to drive sales by $10million by this product. v The product will be tested and go through focus groups prior to launch. y The organisation will look intodigitalisation of its contents. Identify Change Elements There is no need for transitional arrangements as the team is already ready for these changes. There will be a need to provide a beneficial voluntary separation. The impact will be minimal on workloads as the current team is hired and managed on these changes. *Create sense of urgency “Enable Action by removing barriers *Sustain Acceleration *Build Guiding coalition R ibiliti Arun-Human Resources Manager Arun will be implementing the changes through encouraging buy-ins from employees, facilitating communicative conduct, and ensuring all employees are trained to conduct these changes, rsh - Change Proj nsor Adarsh will be implementing these changes based on his management of the project and different facets of the project. He will be observing the performance of the project and managing his team. Pravesh -Operations Executive Parvesh is the operations executive who is the team member who will be provided with specific areas of responsibilities according to the action plan. PRAVESH BHATTARALSBINNGO1 ~ Manage Organisational Change 1s Develop Change Plan Actions Who When Performance Measures Briefing on the | Project sponsor 10/1/2021 Employee engagement, changes. buy-in and participation measures,Employee readiness assessment results Training on the | Project sponsor 10/1/2021 Compliance and changes. adherence reports Developing the new | Technology 4/5/2021 Issue, compliance and products, Specialist error logs,Help desk calls and requests for support Consolidation Our current policies and procedures have newly been created to reflect the change management required. There are limited barriers to change as the organisation team is ready for the change and there are adequate resources The change will provide a turnaround for the company that is deteriorating and losing its position fast. This stage is about monitoring and reviewing how the change has gone and what further or additional work and support is required, for example, if staff in the new structure have the skills and support required to undertake their roles etc. evaluate and understand > Whether the original objectives have been met > Identify any lessons learnt for the future. Seeking Feedback : You can begin to seek feedback from those involved when people remember the most ~ hortly after the restructure or change is complete and when most of the problems have been resolved. However, to fully assess the impact you will need to wait PRAVESH BHATTARAL -0SBINNGO1 ~ Manage Organisational Change 16 long enough for the changes to properly take effect. This may mean waiting a few weeks or months to seek feedback and report on your findings. Evaluation The change management process will be evaluated based on the objectives and key performance indicators: > The product completed according to deadline, e change of departments according to deadline, v ‘Team morale remains high. v Sales of the company increases. v Clarify And Re-evaluate Your Objectives y Collect Feedback From Employees 7 Transaction volume v Quality of work done in new state. v ‘Audit and compliance findings Ways to asses change management strategies include assessing points like > Has the business need been met? What were the gaps, and how will they be closed? > Is the project sponsor satisfied with the outcomes? > How does the end result compare with the original plan, in terms of quality, timetable and budget? > Has the restructure or change fully solved the problem it was seeking to address? > What lessons were learnt during the restructure or change? How could these contribute to future restructuring/change processes? > Determine how satisfied the key stakeholders are with the end results. > Review staff wellbeing through a post-change wellbeing risk assessment to identify any actions required. v Review equality impact to identify any actions required. v What has been the impact on customer satisfaction? PRAVESH BHATTARALSBINNGO1 ~ Manage Organisational Change vv Evaluations conducted will be summarised and provided in a report to the key stakeholders via email. We will continue to capitalise on these evaluations by performing continuous improvements. Environmental Analysis rom Blockbuster to Redbox, all video rental shops have one thing in common: they provide a service to their clients. These firms do not create the films they rent out; rather, they just supply them. This implies that it is a relatively simple idea to replicate, and with technological advancements and the arrival of the Internet, the way firms strategy and join the market is more dependent on customer behavior. On the supply side, high-tech means higher efficiency, lower overhead (labor, rent, etc and more customized, yet faster service for consumers, causing consumer behavior to shift toward the Internet, which has opened the doors for consumers to price shop and compare products beyond what is carried on the shelf. By altering the old business with innovation and delivering lower-priced, more convenient rentals, this approach allowed Redbox and Netflix to break into the video rental market. PEST ANALYSIS Government The government is abiding by all World ‘Trade Regulations & | Organization laws and regulations. There is uniformity in Deregulations both policy formulation and policy execution. Political Political According on the evidence presented in the Blockbuster Governance System | Video case study, the country appears to have a stable political structure. Blockbuster may devise tactics based on a stable political climate. Economic | Foreign Exchnage | A number of firms have suffered losses in recent years as Factor rate a result of currency risk in Venezuela, Brazil, and Argentina. Before entering a new market, Blockbuster should consider the history of currency risk, Many US firms have PRAVESH BHATTARAL ~00004911 v7SBINNGO1 ~ Manage Organisational Change 8 suffered losses in Mexico as a result of the country's ongoing currency issue. Employment rate If the employment rate is high, it will have two effects on Blockbuster's strategies: first, it will supply enough customers for Blockbusters Blockbuster products, and second, it will make it more costly for Blockbuster to acquire talented and skilled staff. Social Changing Every company in the film business is dependent on Preferences customer interests, The industry must understand what satisfies the client and choose the appropriate genres for this procedure. Because the majority of the population is made up of Millennials who grew up during a period of transition, it is likely that they have different goals and expectations than the preceding generation, Demographics | Its competitor Netflix, has covered most of the globe almost over 190 countries. However, there are countries which are Netflix free. It was found that over 70% of the population who continue to age and belongs to filming industry in 2000 are still relying on Blockbuster for movies. ‘Attitude towards | The saving culture in the United States and China is Saving completely different. While the savings rate in China is above 30%, it is considerably below 15% in the United States. This consuming and saving culture has an influence on both consumption and amount of consumption, Technology | Integration of] Uber failed in China because it attempted to penetrate PRAVESH BHATTARAL ~00004911 18SBINNGO1 ~ Manage Organisational Change 19 Technology into | before smartphones were widely available in the country. Society & Business Blockbuster should develop a strategy that integrates social ideals, infrastructure, and the Blockbuster business model. ‘Acceptance of | Mobile payments is one of the areas where the United Mobile Payment States lags behind China, Blockbuster should analyze and mobile app what mobile payment options are favored in the local economy and base its business strategy on them. Migration to Digital | This is more economical than having printed copies of Filming movies ie CD & DVDs. Blockbuser should more focus on saving cost by making the movies available to customer digitally. Competitor analysis (at least two comparable competitors) Netflix: Netflix is a prominent streaming video on demand (SVOD) provider with 130 million customers that operates in 190 countries. In the video streaming sector, the product and income model are highly clear and straightforward, Users may view TV shows, movies (on- demand), or other video material on a range of devices such as tablets, laptops, and smartphones. Netilix, as one of the early pioneers in this market, has built a strong user base as well as a business strategy that generates significant income for the company. As the potential of development increases and certain large markets (such as Asia-Pacific) remain largely untapped, the video streaming field is becoming a more competitive industry. To retain and attract users, businesses will need to provide popular content. As a result, there is strong rivalry among firms to get popular licensed material from media companies or to produce their own content. PRAVESH BHATTARALSBINNGO1 ~ Manage Organisational Change 20 Key Takeaway: © Instead than focusing on providing amazing (and inexpensive) entertainment to its viewers - something Netflix has mastered - Blockbuster placed more emphasis on the model they were most comfortable with. * Blockbuster did (at some point) see that the Netflix model was the way of the future. They did, however, make modifications to remedy it. In the end, though, it was too little, too late. Amazon Prime Video ‘Amazon's foray into video streaming comes as no surprise given that it is the largest e- commerce firm in the United States. In 2018, Amazon renamed its video services as Prime Video, and Prime members now have access to a huge collection of movies and TV series. Prime Video, which is similar to Netflix, provides immediate streaming on Amazon products, major gaming consoles, set-top boxes, and devices that support the Amazon app. Key Points * Prime have more movies offered than Blockbuster. bbscription is annual or monthly unlike blockbuster per movie rental charge. Specify major change requirements in company’s operations due to planned changes Currently, Blockbuster is focusing more on commercial and some of the most popular networking sites like as Facebook and Twitter, as well as telephone, mail, in-store promotions, and applications for smart phones and tablets. Around 2007, Netflix transitioned from video distribution to online-streaming content. Their objective was to nip technology in the bud and prepare for a technological revolution in personal computer and internet usage. Netflix became popular among consumers since they charge a membership fee and do not charge late fees (Blockbuster used to charge late fees), giving Netflix total control over the new sector. PRAVESH BHATTARALSBINNGO1 ~ Manage Organisational Change 2 Below is the list of some major changes required in Company's operation: * Customer service altered, more customer support online and in charge within timelines such as within 24 hours ‘* Platform of service changed from rent in store to online rental «Establish an after hours team to provide customer support after business hours Cost Benefit Analysis Blockbuster derived value by having physical copies of movies that could be leased enough times to cover the cost of purchase. Renting a movie usually costs between $2 and $5, with new releases fetching higher pricing than older films. When a client rented a movie, they agreed on a return date and time. If a client did not make the return on promised date, late penalties were applied to their account, accounting for an estimated 70% of earnings. Total Access is Blockbuster's mail rental service, and it allows consumers to swap DVDs through mail or in-store for a fixed monthly fee. Blockbuster Express kiosks may now be found in over 2,000 places around the country. Today, the business has just 6,000 shops worldwide, with additional closures anticipated for this year. Blockbuster began this year with $984 million in debt, which investors and experts fear it will not be able to repay (Associated Press, 2010). As a result, Blockbuster's stock is presently trading on the NYSE for about $0.40 (Yahoo! Finance, 2010). Despite declining performance as a result of rising competition, Blockbuster remains the market leader. Blockbuster will not sell advertisements or rely on subscription fees to generate income. The firm expects to earn $830 million from its domestic streaming service in the second quarter of the year, accounting for up to 25% of overall earnings. PRAVESH BHATTARALSBINNGO1 ~ Manage Organisational Change 2 k Analysi Risk Matrix’ usi ‘© Risk analysis and risk mitigation strategies ‘S/N Risk sk Mitigation Risk 1 Software failure 8 Troubleshoot plan and technicial always on standby Risk 2 ‘Availability of old and cla 5 Good inventory decision movies Risk 3 Unwillingness of customers to |7 Promotions and marketing rent movies with 48-hour expiry Risk 4 Competitors taking over loyal | 10 More offer and provide upto date customers movies for customers Risk 5 Customer complains during | 8 Opened afterhours service to afterhours: resolve any issues after business hours Risk 6 Lack of adaptability and keep | 8 Continuous Market scan and up to date with customer analysis to be performed requirement Risk 7 Technological advancement | 8 Try to keep up to the advancement and use state of the art technology Risk 8 Change in video streaming and | 41 Keep uptodate with the current law rental regulation and law and government policy Risk 9 ‘No customers to stream (no | 6 new videos) PRAVESH BHATTARALBSBINNGO1 ~ Manage Organisational Change 23 Risk Level are based on below risk Matrix SEVERITY mp | ACCEPTABLE TOLERABLE UNDESIRABLE | INTOLERABLE LITTLE TO NO EFFECT) EFFECTS AREFELT. | “SERIOUSIMPACT COULD RESULT ONEVENT | BUTNOT-CRITICAL TO THE IN DISASTER TOOUTCOME | COURSE OF ACTION + {AND OUICOME LIKELIHOOD |__ IMPROBABLE RISK IS UNLIKELY TOOCCUR POSSIBLE RISK WHE LIKELY “OCCUR | PROBABLE | pusk wi occur Communication/ Education Plan * Acommunication or an education plan to promote the benefits of the change to the organization Communication objective Saturday from 12:00 to 17:00 from 1/08/2021 confirm and educate the people about changes in trade times Involved Member Y Board of directors v Managers Y Change Managers People that influence the| |“ Change manager communications plan Y Managers Y Stats ¥ Customers PRAVESH BHATTARAL ~00004911 23SBINNGO1 ~ Manage Organisational Change 24 7 Delivery staffs People involved in the implementation process of ‘Change manager Managers Staffs Activity of communication Meeting will take place at 9.30 am. on 25/08/2021. Send all participants emails and messages Talk about key messages 7 Change in time < Extra benefits and changes in salary Methods for customer service New personnel lists Policy and procedural changes SANK Training Need for staff training and learning to implement the new itive Need for staff training PRAVESH BHATTARAL 1. Employees are involved in the decision on information, skills and abilities to be acquired The employees participate in the learning activities 2. The representative's earlier learning and work insight is connected with new material 3. The employees are given an opportunity to support their work by rehearsing,SBINNGO1 ~ Manage Organisational Change 25 Resources required for implementation 0 Management of the customer. of the project 0 Safe storage of data. © Management of the transaction. © Tools for analysis. © Management of incidents or inventory. Strategies for implementing or actioning the change at the company and its Stores «Keep all employees involved in the business plan. © Connect with its representatives where the company cycle is genuinely engaged. * Establish the hierarchical culture for development and change. ‘* Ensure that all representatives understand the premise and focus on project goals of the fundamental interaction Implement New Ideas (strategies and resources) Strategies for implementing the changes include measurable targets, timelines and required resources Team rules and protocols. «Absence notification, To tell its quick manager how powerless it can be and the likely span of non attendance, a representative who is too sick to even consider going to work needs to be able. This warning is necessary if re-planning is to be taken into consideration and if appropriate, for electing staff. + Non-Attendance, Non-attendance refers to employees with unchanged stays for a range of reasons that may include minor illnesses, which are truly dependent or arranged, deprivation or PRAVESH BHATTARAL -0