Understanding and Leading Change

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 Table of Contents
Introduction

Part 1

Overview of the Organisation and its Change Processes

A PEST Analysis to Identify Drivers of Change

Evaluation of the Drivers of Change and their Impact on Organisational Strategy

Comparison of the Impact of Change and the effect upon the Organisation’s Strategies and
Operations

Evaluation of the Effect of Changes on Leadership, Individual and Team Behaviour

Evaluation of the impact of change and its minimisation and the application of appropriate
models applied to plan for and process change efficiently

Critically evaluated the long- term implications of change to form conclusions and
recommendations for minimising effects of change through effective planning and managing
change and identification of potential risks of change

Part 2

Application of Force Field Analysis to determine opposition and support for change

Use of force field analysis to make valid recommendations for meeting the organisation’s
objectives

An explanation of the different barriers to change and how they influenced decision making
and leadership

Accomplishment of Changes and its Success

Advantages and disadvantages of different leadership approaches to dealing with change,

illustrated by application to a range of examples

Critical evaluation of different leadership approaches and models of change management

Conclusion

References

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Introduction

Understanding and Leading Changes helps a company or the leaders to understand the change
in processes and the problems to be faced along with such changes. It will also help to determine
the various approaches to bring changes and the factors that bring about such changes. Change is
inevitable to survive and grow, thus it is very important to bring changes for the better. Some
changes may appear to become worse with time but that provides a lesson about what to avoid.
This study will help to understand the processes of change, drivers of change and its effect on the
decision making of British Airways. The PEST Analysis will be helpful to determine the reasons
for changes and its effects on leadership,individual and team behaviour. This study will also
explore the application of Force Field Analysis, the barriers of change and the assessment of
various leadership approaches with examples along with change models of an organisation.
British Airways is the “flag carrier” airline with its base in the United Kingdom. This airline
company is the second largest carrier of the UK with reference to its fleet size and passenger
carrying capacity.

Part 1

Overview of the Organisation and its Change Processes

British Airways is an air passenger and cargo carrier company of the United Kingdom that is
registered with the country but enjoys certain privileges given by the government. They have
their headquartersisin London, England and its main centre is at Heathrow Airport. It is the
second largest cargo and passenger plane in the UK with respect to the number of planes and
the passenger capacity. It was initially named as Aircraft Transport and Travel Limited in 1919
and later converted to British Airways on 31st March 1974. It is an alliance of Oneworld. Sean
Doyle is the new CEO and Chairman;Stephen William LawrenceGunning is the CFO and
Director. British Airways hasUnited Kingdom Civil Aviation Authority Type A Operating
Licence and has the permission to carry passengers, cargo and mail with 20 or more seats.
Initially, the merger of British European Airways and British Overseas Airways Corporation,

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they both had different branding but were unified under the British Airways. The British
Airways with Air France had started a supersonic Airliner- Aerospatiale-BAC Concorde, and
the world’s first supersonic passenger airline had flown but it was later shut down following
the collapse of World Trade Centre and the crash of Air France Concorde. The airline was
privatised by the Thatcher Government; they expanded through acquisitions and formed the
third largest alliance in the world. Bob Ayling’s leadership brought a 750 million pounds cost
savings but British Airways suffered a loss 84% which led to the removal of Ayling and he was
succeeded by Rod Eddington. Eddington made more cuts in the workforce as it was suffering
losses after 9/11. British Airways earned a bad reputation of not providing quality service, thus
the requirement of change in management was required. Sean Doyle after taking up the chair
has announced that they have made new advertisements that have the team who have worked
hard to make testing and flying a better experience for all (British Airways, 2021).

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5
A PEST Analysis to Identify Drivers of Change

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Elements Factors Impact

Political 1. Brexit British Airways has adopted a

2. Political Changes “green/blue/red”channel system
to understand the declaration of
goods and the countries from
which they come from. The red
channel is for people who may or
may not declare their goods, the
blue channel is for people who
belong from the EU and have no
goods to declare, the green
channel is for passengers who
belong from non-EU countries
and do not want to declare their
goods. For the Chinese belonging
to the EU they can bring non-
contaminated fruits, vegetables,
meat, and dairy products
purchased in their country to the
UK (British Airways, 2021).
British Airways suffered losses
due to closing down of borders.
British Airways cancelled several
flights. The British Airways have
partnered with the Kenya
Airways (British Airways, 2022)
to connect with East and Central
Asia.

Economical 1. GDP Economic changes have a direct

2. Inflation rates impact on the aviation industry,
the financial crises faced by
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 Table 1: PEST Analysis to Show Changes by the British Airways
(Source: Created by the Author)

Evaluation of the Drivers of Change and their Impact on Organisational Strategy

Brexit has an ever-lasting effect on British Airways with the restrictions that have forced them to
make changes in their capacity and fleet. Many operational changes have been undertaken to
keep the business running even through the tough times. British Airways have continuously
worked with the suppliers to maintain their operations.Competition, Government Regulations
have been dynamic resulting in the internal network working strongly to ensure minimum
impact on the customers. The Covid Regulations have led the business to suffer significant
losses (BBC, 2020), but the airline is trying to reduce the distance between their customers and
their families. British Airways has increased their fund allocation in cybersecurity and also
have tried their best to remove any IT related crisis with the help of Artificial Intelligence. This
has led them to take debts to keep their operations running.
The Company has to face a lot of uncertainty due to the travel restrictions, the travellers have to
be self-quarantined and the travellers from countries that have been exempted or added to the
list at a short notice are to receive different facilities. Many of the aircraft have been shut down,
operations are restricted to certain countries and cargo flights are mostly in operation. The
capacities of the flights were reduced by 88% and the revenue has also been down by 87% due
to Covid (The Guardian, 2021).

Comparison of the Impact of Change and the effect upon the Organisation’s Strategies and
Operations

The Aviation Industry is a small but important part of the country’s economic growth. The
impact of Covid-19 has forced a lot of changes in the strategies of British Airways. There has
been a significant drop in the number of customers but the losses suffered by British Airways
regarding their cargo planes are comparatively low. The British Airways had to abolish a number
of aeroplanes to reduce their operational cost. The pilots, cabin crew, ground staff are threatening
to go on strikes as BA had declared loss of jobs due to low income. The changes brought to
increase sustainability by making significant changes in the environmental structure which were
not taken into account earlier. With increase in the awareness for a greener environment the

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British Airways have developed ways to reduce the greenhouse gas emission and adopt new
technologies. Earlier, travellers had to stand in a long queue of check-in at the airport which the
British Airways have changed by the use of technology. They have developed a reservation slot
system to manage the flow of incoming passengers (Walesonline, 2021). This development is
groundbreaking and will be used in the UK for the very first time. The British Airways has also
developed Digital Health Verification App (British Airways, 2021) post Covid; this was not a
requirement before the onset of the pandemic situation.
British Airways has been giving constant effort to make large scale environmental change; they
have hosted the COP26 Climate Summit and teamed up with NATS, Heathrow, Glasgow, and
Airbus to exhibit how the industry is moving towards “Perfect Flight”. Carbon neutral flight
from London to Glasgow duplicated the flight taken 11 years ago to show the new technology
and operations. The “Perfect Flight” is a combination of uninterrupted ascend and descend,
sustainable aviation fuel and electrically automated ground operations vehicles (British Airways,
2021).

Evaluation of the Effect of Changes on Leadership, Individual and Team Behaviour

The biggest change brought about by the British Airways is the change of CEO from Alex Cruz
to Sean Doyle. This change has certain positive and negative impacts. The change of head has
inspired many working in the organisation to work harder to reach to the topmost position.
Patience is something the employees will be able to learn on a personal level. The loss of jobs
has affected the team and individual behaviour negatively. Many employees have lost their
friends which will create a hindrance in the performance. Covid has led to the shortage of
employees as they were not working at their full capacity. The leaders had to lose competent
team members; the team’s unity was also affected. Their change of management has led to
resistance of workers and the method of operations has also changed. With new leaders, the
resistance is indirect and the line of authority is compromised. The changes have made British
Airways more customer-oriented.
The establishment of a smooth communication channel is hampered with change in leadership.
The competency of the employees are checked at regular basis, if proven incompetent the
employee faces the risk of losing job, the leader’s hard work of training to make the team
according to his requirement is at risk and the team is forced to work more than their pay.

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Change in company can seep down to the behaviour of the leaders, team members and
individuals. The leaders must understand the change to manage them accordingly and delegate
the same understanding to the individuals. The leaders of the British Airways company
understood the financial crises and found out ways to make their company run more cost
effectively. With the growing situation, the leaders of British Airways did not pay attention to
the ideas, requirements of their employees.

Evaluation of the impact of change and its minimisation and the application of appropriate
models applied to plan for and process change efficiently

The Kotter’s 8 Step Model is a proven way of minimising the impact of change. This model will
help the employees to understand the need for changes. It is very important for the employees to
believe in changes to bring about that change effectively within the company. The effect of
Brexit on British Airways is negative with the changes in the system of managing the passengers.
The employees themselves must be ready to accept the process of Brexit to bring about stability
in their working conditions. Brining change is not possible by one person; it is a team process
where every individual must be invested equally. With the British Airways running in losses it is
the requirement of the employees and leaders to find out ways to coerce the passengers towards
their airlines. It is the duty of the management to train staff for high-class customer service.
The Company must train their employees to take up various roles at the same time when they are
working with fewer employees. It is easy to keep the vision of change within the management,
but it must be clearly documented for the lower levels of the management to understand. It is
important for a company to identify the places that require change; British Airways stopped the
flights to the USA due to safety issues over 5G networks (Independent, 2022).

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Critically evaluated the long- term implications of change to form conclusions and
recommendations for minimising effects of change through effective planning and
managing change and identification of potential risks of change

Changes in the long term can be positive as well as negative. The changes in the leadership styles
and theories are a must as most of the problems have arisen due to ineffective leadership skills.
The decisions of the management have forced the employees to go on strikes, thus proving that
the leadership skills are incompetent (BBC, 2021). British Airways has appointed a new Brand
Ambassador Emma Raducanu, who is the first and the youngest woman to be appointed to this
post. This move has given the company a chance to present their airline at the different tennis
tournaments that will be played by her. She will be promoting the services provided by British
Airways. They have presented a new selection of cocktails for the customers to sip and enjoy
their flights which has increased their cost of flights. British Airways have developed their new
relaxation zone with high class sleeping pods to attract customers (British Airways, 2022). They
have cut-off their staff to increase efficiency but increased their resistance towards changes
(Forbes, 2021).

Part 2

Application of Force Field Analysis to determine opposition and support for change

Force Field Analysis is a tool used for the determination of the pros and cons of change brought
about in the organisation. The drivers of British Airways are as follows:
1. Need to increase profitability: In 2020, the British Airways have suffered a loss of 3.5
billion pounds. The company monitors the revenue and has to find effective ways to
increase the sale of seats; they have appointed a Brand Ambassador and have helped in
her touring facilities for her tennis tournaments to attract more players.
2. Technological Advancements: The technological slack has led them to cyber attacks.
They have outdated jets and the movement of aircraft has been difficult at short hauls.
3. Customer Orientation: To gain new customers the British Airways have modernised
their operations to increase the sense of punctuality. The risks of cyber threats to
customers have been noticed.

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 4. Covid - 19:Covid has led to a lot of disruption in the operation of the business. They
have developed travel guides and made changes in the ways they handle passengers.
Covid has also led to the loss of customers.
5. Competition: The level of competition has increased with a number of companies
joining the airlines business. The biggest competition of British Airways is easyJet; they
are providing better services against the reputation of poor quality service of British
Airways (easyJet, 2021).
6. Environmental Concerns: The world is moving towards a greener place where pollution
and carbon-emission can be controlled. British Airways is upgrading them to release less
Chlorofluorocarbon to reduce air pollution and greenhouse gas emission.
The Restraining Forces of Change in British Airways are as follows:
1. Lack of Funds: British Airways have faced serious losses in the last few years. They had
to raise debts from the market to increase the liquidity of the company. A loss of 7.4
billion pounds has been incurred by the company with rising fuel prices, retirement of
jets etc (The Guardian, 2021). There has been a sharp increase in the fuel prices.
2. Threat of Strike: The pilots and workers are threatening the management to go on
strikes; the pilots are refusing to fly because of the management’s decision to cut-off jobs
at the time of Covid (BBC, 2020).
3. Fall in Passengers: British Airways is facing major issues as the number of customers
flying has decreased considerably. The Company is trying to bring attractive offers to
attract passengers for their flight.
4. Unstable and Rigid Management: The management of British Airways is very rigid,
they are not always ready to understand the requirements of their employees or
customers. After suffering losses the charge of heading the company was given to Sean
Doyle. The job cut of 12000 people led to criticism of the previous CEO Alex Cruz. With
this change they have started to accept the “new normal”. The company urged Sean
Doyle to make changes in immediate effect as the company was facing the biggest loss in
history The management had taken up the “fire and hire technique” (Economic Times,
2021).

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Use of force field analysis to make valid recommendations for meeting the organisation’s
objectives

British Airways should definitely opt for changes in their management system; they should be
more promising towards their employees. The management should understand the needs of the
employees and give them reassurances of their job once the period of crisis is over. To increase
the number of travellers British Airways must give discounts on their booking prices. The quality
of services provided by them are unsatisfactory to the customers, this must be improved with
immediate effect. British Airways must try to improve their technologies to reduce the cost of
fuel use by them.

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Forces supporting the change Forces resisting the change

Need to increase profitability

Changes in Lack of funds

Technological advancement
British
Airways PLC

Customer orientation
Threat of strike

Competition

Fall in number of passengers

Covid-19

Unstable and rigid management

Environmental concerns

Figure: Field force analysis

(Source: Created by the author)

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An explanation of the different barriers to change and how they influenced decision
making and leadership

The most significant restrictor to change is the non-availability of funds to run the operations of
the business. British Airways has raised 1.4 billion pounds to run the activities of the business
(Reuters, 2021). Due to the losses faced by them they had to retire a number of jets, restructure
their management. With the restructuring came the risk of loss of jobs by the employees. The
customer services have decreased with their poor behaviour towards the customers. The leaders
are responsible for the strategic planning to recover the losses and save the jobs of the employees
at the same time. With the increase in prices of fuel, British Airways were able to increase their
fuel efficiency by 28% (Reuter, 2021). With the losses, the company had taken up the concept of
“fire and hire” where the employees who were fired are taken back at downgraded terms. This
was complete disregard to the human resource.

Accomplishment of Changes and its Success

The successful changes brought by the company was the recovery of their debt, they have 10
billion euro of liquidity that reduces their risk to a considerable amount (Reuters, 2021). They
have been able to reduce their fuel sustainability by 28%, they have been able to lower their
noise impact reducing the effect of noise pollution. British Airways have also increased their air
quality performance with 20% reduction in the emission of nitrogen oxides (British Airways,
2020). The airline company has reduced the risk of cyber threats by their increase in investments
in cybersecurity as they had been fined 20 million pounds for data theft (BBC, 2021). They have
been technologically advanced to have electronic vehicles that help to push the aircraft back on
short hauls (British Airways, 2020). The British Airways have introduced fully electric taxis in
London that are driven by chauffeur and will take premium customers so that they do not miss
their connecting flights. The vehicles will have charging points for laptops, tablets and a
panoramic roof (British Airways, 2021). British Airways has taken part in the COP 26 Climate
Summit and has launched their latest Airbus A320 neo that has been directly powered by
sustainable aviation fuel.

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Advantages and disadvantages of different leadership approaches to dealing with change,
illustrated by application to a range of examples

Situational Leadership: Leaders are of various types, some leaders take decisions based on the
situations they face. Advantages: British Airways under the leadership of their new management
understood that they needed to cut costs; they took up various developments to retire jets that are
no longer working. Disadvantages: The leaders of British Airways on their need to cut costs have
terminated their employees and this has caused a long-term issue. The management is unable to
establish a strong relationship with the employees. Based on the environmental conditions the
company has taken up several steps to reduce carbon emission, noise pollution, and release of
greenhouse gases. The management has understood the difficulty of pushing the planes
manually, so they have developed electronic vehicles to push aircrafts.

Lewin’s Change Model: This change model dissects the various parts or stages of change which
helps to understand where exactly the change required is and how they can help in increasing
efficiency. Lewin’s Change Model has three stages: Unfreeze, Change and Freeze. The Unfreeze
phase states that the management should conduct surveys to understand the change required,
British Airways has conducted surveys to collect the data of passengers who have flown with
them and have asked them to share their experiences. The Change Phase is the phase where the
problem has been detected and new measures to bring positive changes are initiated, British
Airways on their survey they have come to know the dissatisfaction of their customers regarding
their service.This has given them the chance to correct their faults and increase their customer
service system (The Guardian, 2020). The Refreeze Phase is where the management is able to
show growth in their change brought and the people are embracing the change. British Airways
have improved their customer services, they have provided help to people who have cancelled
their flight and can book them or apply for vouchers. They have given a number for people to
contact them directly and have politely requested to bear the time consumption due to high call
volume (British Airways, 2021).

Advantages: With the help of Lewin’s Change Model the management of British Airways can
understand and identify the changes required in every stage. The effect of better connection of
the managers with the employees has seen an increase to 73% (Bennet and Soylu, 2021). It

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helps to understand the psychological and behavioural change of the employees. The employees
are dissatisfied with the management for their poor leadership and management skills, which
must be resolved as the poor communication will affect the efficiency of the company in its
operations. Disadvantages: The model does not help the management of British Airways to
understand every situation in depth. The management of the company on its way to shaking
things up have made the situations more aggressive than nurturing. The management in its idea
of reducing the cost has terminated many pilots, cabin crew, ground staff etc. this has led to the
aggressive behaviour of the terminated and existing employees of the company.

Critical evaluation of different leadership approaches and models of change management

The situational leadership encourages the leaders of British Airways to show their skills and
innovations at the time of facing the situation, but sometimes the approaches of leadership fail
when faced with resistance from the subordinates. The decisions taken by the leaders may not
favour the employees leading to rise in aggression. The Kotter’s 8 Step Model can prove to be
expensive when the need for change is required. The change brought does not always take in
account the effects of the external forces on the implementations of change. Lewin’s Model of
Change if adopted by British Airways may look simple with clear understanding of steps but that
might bring revolt within the organisation with the implementation of changes (Galli, 2019).

Conclusion

From the above study it can be concluded that there are certain necessary steps to be undertaken
by the management of British Airways to implement the changes. The effects of changes are well
discussed and the accomplishment to the changes undertaken gives a positive hope to the
company to revive its place in the global market. It must be seen by the Company that the
restrictors of change are studied well; strategies must be developed to curb the restrictions for the
betterment of British Airways.

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