Professional Documents
Culture Documents
GUIDE
BSBLDR601
LEAD AND MANAGE
ORGANISATIONAL
CHANGE
AIA- BSBLDR601-SG-V1.0 Page | 1 of
BSBLDR601 Lead and manage organisational change
Contents
Overview 4
Topic 1: Developing a change management strategy 5
Topic 2: Implementing a change management strategy 15
Topic 3: Evaluating the change management strategy 21
Overview
The Student Guide should be used in conjunction with the recommended reading and any further
course notes or activities given by the trainer/assessor.
Learning goals
Learning goals include:
You are able to identify major operational change requirements and assess risks and
opportunities in consultation with stakeholders and experts.
You are able to implement a change management strategy and communicate changes.
You are able to evaluate the change management strategy and modify it.
Change is constant in every facet of life. Change in a workplace can happen for many reasons and
can be initiated by the organisation (internal factors) or change as a result of external factors.
Strategic change needs can be initiated by the organisation itself through an analysis of
organisational objectives. These objectives would be found in a strategic or business plan or even
specific plans such as a marketing plan.
As an example, consider that an organisation’s objectives are to be innovative and efficient. A
manager may decide that in order to achieve these objectives, certain aspects of the business
need to be automated, for example, introducing a new customer relationship management system
or accounting or ICT system. This not only means change in terms of the introduction of the new
technology but may also mean staffing changes such as training and even redundancy of staff who
may no longer be needed as a result of the introduction of the new technology.
Thus, a manager must be able to carefully analyse the organisation’s strategic objectives to identify
where changes are needed and the impacts of this. This will also include reviewing policies and
practices as can be seen in the example above.
No change ever happens in isolation. Change impacts the whole organisation, its people, its
operations and its policies and procedures.
In some cases, the need for change will become clear when considering the negative outcomes
of not making the change. People within the organisation will often be willing to embrace change
when they are dissatisfied with the old way of doing things.
Activity: Reflect
Consider your previous or current job and identify an area in the business where you
think change is needed. Reflect on the following:
What will the benefits of the change be to the organisation and its people?
Activity: Read
consulting with specialists and experts who can assist with change.
There a number of theories and models associated with change management that can add to the
identification of operational change requirements and aid in the understanding of organisational
change. These are discussed below.
Help in decision making regarding future steps to take. When business opportunities for
success are considered in relation to threats to success, appropriate choices can be made.
A stocktake of a business’s strengths and weaknesses can help determine priorities and
possibilities.
Plans can be amended and expanded as new opportunities arise. Alternatively, threat can
close a pathway.
A SWOT analysis can be a good way to organise information gathered from studies or
surveys.
Strengths: These are the positive characteristics within your organisation that give you
an advantage.
Weaknesses: These are the negative characteristics within your organisation that put
you at a disadvantage.
Human resources - staff, volunteers, board members. Also, the motivation, talent,
collaboration levels, effectiveness and efficiency
Activities and processes - programs, systems: employee programs, software systems, and
departmental structures
Opportunities: These are the positive characteristics that exist outside your
organisation that you can take advantage of.
Threats: These are the negative characteristics that exist outside your organisation that
will hinder your success.
There are many external influences that affect an organisation at any given time like the behaviour
of your competitors and also macro-economic forces. The external environment has a significant
impact on change strategies, as it is often the driver for the change strategy. For example, a
change in government regulation may impact on a company’s business requiring staff
redundancies. Therefore, the external environment has driven the change.
The external environment may also need to be considered during a change process. For example,
if the organisation is growing and making changes and requires more staff, if there is a low
unemployment this needs to be factored into the change as the company may have difficulty
attracting staff.
As external factors therefore impact heavily on change, then a manager must ensure they are
constantly monitoring the external environment to identify trends that impact on objectives and may
lead to a change.
There are numerous ways of monitoring the environment from reading articles to reviewing
LinkedIn to attending conferences and so on.
Not setting clear goals and expectations. Employees can’t meet performance standards if
they lack clarity or don’t have clear goals to meet.
Employees are not able to access the information they need to do their job effectively. This
might be due to a lack of training or access to policies, procedures and training resources.
When your business needs, goals, and organisational objectives change faster than your
training programs. Organisational change may require that employees learn the latest cutting-
edge technology or stay up-to-date on the latest best practices and you will need to provide
adequate training and support.
Gaps between the current capacity of the workforce and the predicted requirements can be met
through initiatives such as performance management, individual development plans or training and
education.
Activity: Reflect
Activity: Read
Take any notes to summarise what you have read and keep for future reference.
Burke-Litwin Model
The Burke-Litwin model shows the various drivers of change and ranks them in terms of
importance. The model is expressed diagrammatically, with the most important factors featuring at
the top. The lower layers become gradually less important. The model argues that all of the factors
are integrated (to greater or lesser degrees). Therefore, a change in one will eventually affect all
other factors.
Burke-Litwin believes environmental factors to be the most important driver for change. Indeed,
most change can be traced back to external drivers for change.
Important elements of organisational success, such as mission and strategy, leadership and
organisational culture, are often impacted by changes that originate outside the organisation.
The purpose of the model is about how successful organisational change actually happens and
answers the question of how to go beyond simply getting the message across to truly changing
people’s behaviour.
Steps in the model are as follows:
Form a strategic vision and initiative by clarifying how the future will be different from
the past.
Enlist a volunteer army by having massive numbers of people rally around a common
opportunity to bring about large-scale change.
Instituting change by articulating the connections between the new behaviours and
organisational success.
Activity: Read
Read about the impact of change through real life case studies:
https://www.tinypulse.com/blog/sk-case-studies-successful-change-management
Take any notes to summarise what you have read and keep for future reference.
Activity: Watch
Consultation
Change should not occur without consulting the stakeholders of an organisation. A lack of
consultation fails to take advantage of all available knowledge and skills within the organisation and
can isolate employees.
Where effective change management strategies are used, employees are much more likely to
accept and participate in the change. Such strategies can also ensure that any productivity losses
are minimised.
Raise awareness of the intention of the organisation to introduce organisational change to the
enterprise.
Give the workforce an understanding of what organisational change is about, its benefits and
what it can achieve for workers and the business.
Solicit input about matters that need to be addressed by the change strategies to be
developed – for example:
o Organisational production issues.
o Financial performance.
o Failure of organisational practice to align with the public statements the business makes
about itself.
Demonstrate preparedness by management to engage with the staff to include them in the
process and in the broader management of the organisation.
Gain information to help supplement the analysis of the organisation. Sometimes you may
need some help with change management and so you might use a specialist in this area.
Determine who will be allocated pivotal roles and responsibilities for the proposed actions
needed to implement changes.
It is vital to cultivate and select people who will support the initiative and not destabilise the
organisation as part of the process, their selection must be based on factors such as their:
willingness to participate
employees
focus groups.
Activity: Read
A change management project plan is vital for managing change. The plan will include the
activities, responsibilities and timelines for managing changes.
To summarise, a change management plan or project plan should include:
Risk assessment – risks associated with the change are identified, as well as control
measures.
Stakeholder analysis – stakeholders who will be impacted by the change are identified.
Action plan – a detailed action plan to guide the change process is developed.
Training plan – a training plan is developed to ensure that any performance gaps in knowledge
and skills as a result of the change are addressed.
The change management plan can also be a useful way to achieve approval of the change
management process. The plan can be presented to management for approval. Presentation to
management should formal, for example, through a formal report or as part of a meeting or
presentation.
Activity: Reflect
Current workplace policies and practices that can guide the change process.
Activity: Practical
Work in small groups for this activity. Source an example of a change management
plan from the internet or use a plan provided by your trainer.
Take turns presenting the change management plan to stakeholders (in this case,
your small group) for approval. The student presenting should explain the benefits of
the change and use their persuasive skills to ensure stakeholder buy-in. Ask the
presenter questions and provide them with feedback at the end of each practice run.
Once it has been identified that change is required, a change management strategy needs to be
developed.
A change management strategy is essentially a plan to make a change. The purpose of
establishing the strategy is to make sure that the change process is implemented as effectively as
possible. The change management strategy recognises when a change is need, how to approve
changes, how to implement changes and how to monitor changes to ensure they have brought
about the desired effect.
Determine the objectives What are the alternatives Who are the stakeholders
Reporting protocols
In order to drive and monitor change in an organisation, strong governance and associated
reporting arrangements need to be instituted. This involves the setting a framework for roles and
responsibilities suitable to the organisation and its objectives.
General change governance roles are:
A steering committee providing oversight for the change process, setting the direction and
providing leadership.
A change sponsor, such as a managing director who gains the commitment of leaders across
the organisation.
A change agent who manages change management process on a day-to-day basis, ensuring
its successful implementation.
Activity: Watch
What should you articulate when starting a project that involves change?
Activity: Practical
In pairs or small groups, spend some time researching different templates for
performing a cost benefit analysis.
You may review the following information about performing a cost benefit analysis:
https://www.prosci.com/resources/articles/cost-benefit-analysis-change-management
and
https://www.knowledgehut.com/blog/project-management/cost-benefit-analysis-
approach-steps
Make sure you understand the steps involved and methods used in a cost benefit
analysis. Make notes to share with the group.
Come back as a group and discuss your findings.
A constant in the development of a change strategy is the need to prepare communication plans.
These are necessary to ensure all information you want passed on to stakeholders is shared with
in a timely and an appropriate way.
An effective communication plan can provide the following benefits:
provides opportunities for feedback and a basis for adapting to changing circumstances
A communication plan describes what an organisation wants to achieve with the information it
shares. It will include objectives, methods of communication and target recipients. Communication
can be a make-or-break aspect of change management. A communication plan will describe the
following:
Target audience?
The details that need to be communicated, related to a particular aspect of the change.
The staff members who need to be informed about the particular aspect of the change.
The different modes to be used for communication such as meetings, emails, memos, etc.
The person who will be responsible for communicating the change to all concerned
stakeholders.
Protocols for and progress on topics such as issue identification, problem solving, conflict
management and staff training and development.
The contact details of stakeholders and their preferred method for receiving information.
Different messages, communication channels and methods may be required for different groups of
stakeholders. Stakeholders can be grouped according to their relevant importance to the
organisation. Once you have determined who your key stakeholders are, and prioritised them,
there will be some key messages you need to develop to address their exact concerns and
questions.
This is done to ensure that your communications are relevant to them and they get a sense that
you understand their point of view.
Plan and design the message considering the content, mood, language, and design:
Consider the emotional appeal. Usually, if the mood is too extreme (too
negative/frightening/making audience feel too guilty), people will not engage.
Language needs to be relevant to the target audience, i.e. formal or informal, simple or
complex, referring to popular figures and ideas or to obscure ones.
For speakers of languages other than English, print material in both English and the language
of the audience you’re hoping to reach, and provide translation for spoken or broadcast
messages.
You have to reach your intended audience by placing your core message where they’ll see it.
These can include:
Once a plan is implemented, you need to know if it is working to achieve the objectives you set.
Your key messages and communications tactics should be reviewed as the need arises and
improvements should be made on a continual basis.
Activity: Watch
Activity: Read
An action plan is needed, outlining specific activities and timing for executing the communications
plan. It will contain the details about who’s responsible for different steps including review of
content and design, printing, mailing, distribution, and delivery of presentations or information to
employees.
An organisation needs leaders from every stakeholder group to actively participate in the change
process.
Leaders need to serve as champions for change – always aware that they are role models.
Employees want their senior leaders to communicate:
Employees want their supervisors to communicate the personal impacts of the change and how it
will affect their job.
A participative management style is a form of management style that allows for employees to get
involved in decision-making. When used in the context of organisation development, this type of
management style is important as employees are involved from the outset about the decision to
implement organisation development and can input their feedback and suggestions all the way
through the process.
Organisational culture/behaviours
Organisational cultures and behaviours should also be reviewed as part of the change process as
they can have an impact. For example:
The organisation’s learning culture. How staff learn within an organisation will need to be
taken into account in training requirements as a result of organisation development. For
example, workers may learn better through practical on the job training.
Resistance to change – if the workforce is resistant to change, this will need to be taken into
account in the development of the organisation development plan. For example, there will
need to be a strong focus on communication and consultation.
Diversity – in an organisation that is diverse in terms of cultural backgrounds, this will need to
be taken into account in organisation development planning and implementation so that
everyone no matter what their background can understand the processes occurring. Thus,
communication must be clear and concise.
After considering the input of all stakeholders and the cultural aspects specific to the organisation,
it is time to implement your communications plan. Keep in mind that key communication contacts
need to be prepared and be ready to provide support.
Activity: Watch
Techsoft 3D CEO Ron Fritz talks about the importance of working to enhance his
company's culture to help drive business results. Learn why culture matters and how
to lead the way to use it to improve and sustain results.
Video: https://www.youtube.com/watch?v=u_OGO8pkw2o (02:00)
This clip explores the different layers and definitions of corporate culture, with
commentary from Robert Murray, CEO of Firemint, and Paul Higgins, Managing
Director of Oakley.
Video: https://www.youtube.com/watch?v=sO2vNyBroco (05:44)
If you were implementing an Internet Usage Policy which included a clause that
all staff should refrain from using personal social media in the workplace,
discuss two reasons why employees may resist this change. How would you
overcome these?
Activity: Reflect
identify
assess
monitor and
Risks are events, situations or circumstances which lead to negative consequences for a
business.
A good risk management plan with appropriate risk management strategies can minimise costly
and stressful problems and may also reduce insurance claims and premiums.
A risk management plan:
includes risk strategies to help the business reduce the consequences if the event occurs.
Risk management plans should be regularly reviewed to ensure they accurately reflect current
potential risks to the business.
It is vital that an organisational change management strategy identifies risks associated with the
change, as well as barriers to change.
impacts on customers
impacts on suppliers
poor morale.
A possible strategy is to ensure that there is a communication process in place to explain the
benefits of change to all stakeholders, including outlining a promising future vision based on
the change processes.
Another strategy is consultation, that is involving stakeholders in the change from beginning to
end and allowing them to voice their concerns and opinions. It would also be beneficial to
incorporate employee suggestions into the change process.
Another strategy is to gain support by outlining negative effects if change does not occur. For
example, that the business may become less competitive and therefore that this may mean
job losses.
Activity: Read
Activity: Watch
As part of identifying risks and barriers to change, it will be important to apply problem solving and
innovation skills. It is important that management create avenues for employees to discuss ideas
and that they involve them in the process of creating change.
Some ways to do that are:
Employees are given freedom to generate ideas both individually and in teams, within the strategic
vision provided by management.
To guarantee that good ideas are generated and developed, organisations can create discussion
frameworks, such as platforms like the Intranet, innovation days, contests and challenges.
Management needs to provide guidance, mentoring, and resources, making sure ideas aren’t shut
down by others and that employees who fail are not disadvantaged.
There are a range of types of techniques and tools that can be used such as:
Software
Brainstorming Mind mapping Workshops Focus groups
programs
Brainstorming
Brainstorming is a process used for generating solutions. It uses a free-for-all group discussion. All
members of the group are encouraged to participate, suggesting as many ideas as possible, no
holds barred. It is only after the brainstorming session that the issues/ideas raised should then be
analysed and discussed in further detail.
Make sure the person facilitating the brainstorm has access to flip charts, white boards, or smart
boards to capture essential words, phrases, and explanations that can be used in the key
messages.
Mind Maps
Mind maps are used to map out the basic ideas from a central problem. They are used in
brainstorming sessions or individuals use them to visualise ideas.
The basic problem is written in the centre and then the ideas are branched out from it in order to
arrive at a number of different possible approaches.
This provides a spatially visual overview, which can be easier to then understand or approach.
Activity: Read
Review the article on Edward de Bono’s six thinking hats which provides a
perspective on looking at problems/issues in a different way:
http://www.debonogroup.com/six_thinking_hats.php
Take any notes to summarise what you have read and keep for future reference.
Activity: Brainstorm
Imagine that you have to communicate the change of implementing a diversity policy.
Brainstorm some strategies that you could use to effectively communicate and
embed change during this organisational change process.
Activity: Watch
Making sure the core message is communicated consistently and with clarity.
Ensuring leaders and supervisors are equipped and have up-t-date information to
communicate to employees.
Keeping employees in the loop by making sure they are updated on a regular basis and
managing the uncertainties.
It is important when introducing change, to regularly evaluate the change management strategy as
a whole and to modify the change management project plan as required.
There could be a number of ways that feedback could be collected to assess how successful the
change management process is.
A plan, do, check and act model can be a useful tracking tool for continual improvement of the
change strategy.
Act
Plan
Check
Do
Plan – this includes revisiting the internal and external stakeholder needs and ensuring that
the organisation is meeting those needs through its strategy.
Check – this is necessary to evaluate the outcome after each plan or change is implemented.
Act – the program is revised and updated to better suit the organisation goal and objectives.
Providing feedback to the staff is important when they have been involved in any stages of the
continuous improvement process.
It is important to ensure that team members are informed of service improvements, savings or any
other benefits to the organisation that is a result of continuous improvement efforts.
If revisions are made, these may need to go through any approval processes that are in place and
it will be of the utmost importance to communicate such changes to all stakeholders, describing the
revisions that have occurred and the impact and the updated procedures that must be followed.
Embedding change
A change management programme can be considered successful when the change in processes
become embedded in the day-to-day operations of the business. This demands that key
employees and managers are emotionally engaged with the change in business outcomes.
Employees are motivated by:
Building trust through transparency and good communication with your employees, setting
appropriate standards of performance and providing training and support will embed change into
the company culture.
Activity: Develop
In small groups, write a change management plan for implementing a change within
an organisation.
Start out by identifying the need for change, explain the reasons for it and justify
allocating resources to it.
Submit all work as professionally written documents within the timeframe allocated.
Your trainer/assessor will provide your group with feedback.