business unit 4 aos 2

change management

the process of monitoring and implementing strategies within a business to assist in change

leadership

The ability to influence or motivate people to work towards the achievement of business objectives. effective leaders need to know where they want a business to be positioned for the future and the changes required to do so

actions taken by leaders during change (PRACTE)

Prepare and communicate- clearly explain change, provide updates, ongoing 2-way communication

Role Model- demonstrate behaviours expected from employees

Act on Feedback- listen to employee input, adjust where appropriate

Commitment- involve employees in change process, build ownership

Training and resources- provide skills, tools, and support needed for success

Empathy- acknowledge concerns, show understanding through change journey

leadership at netflix

senior leaders set a clear vision, explained why they were moving to their own ad tech stack (more control) and set targets for employees to celebrate these milestones.

because ads where a big shift staff could have resisted. clear, transparent updates reduced uncertainty and turned a controversial idea into a highly successful strategy

management strategies to respond to KPI’s (MISSION GROW)

Management Style Changes

Innovation
Staff training

Staff motivation

Increased Investment in Technology

Overseas Manufacture

New Management Skills

Global Sourcing of Inputs

Redeployment of Resources

Outsourcing Globally

Waste Reduction (lean production, improved quality and cost cutting)

management strategies at netflix in response to no of sales

increased investment in tech- by 11% as a result of ad-based subscription which helped seek new business opportunities by attracting advertising revenue in response to decline in sales

management strategies at netflix in response to net profit decline

cost cutting- restructure of gaming division and cutting games to lower costs which allowed Netflix to focus on games that supported their own shows and movies

corporate culture

the shared beliefs and values of the people in the business

real- the actual values and beliefs held by people in the business

official- embodies the values and beliefs senior management would like all people in the business to have

strategies for the development of corporate culture- define and communicate

clearly define the desired values and then to communicate these to employees- improves corporate culture as employees understand expectations and align with the company's goals.

strategies for the development of corporate culture- leading by example

leaders display values they want others to display- improves corporate culture as it encourages employees to replicate those behaviors and strengthens commitment to the company's vision.

strategies for the development of corporate culture- team bonding

encourage employees to build stronger relationships- improves corporate culture by fostering collaboration and a positive work environment

strategies for the development of corporate culture-training

learn new skills and knowledge to perform more effectively- improves corporate culture by creating a culture where employees strive to achieve.

strategies for the development of corporate culture- rituals and celebrations

establishing consistent practices that are meaningful to the business and its values- improves corporate culture as it helps create a sense of belonging and cohesion to the desired values

positive corporate culture

when a business has a positive corporate culture, employees are usually more motivated, loyal and engaged, which can lead to higher productivity, lower staff turnover and better customer service

learning organisation def

a business that facilitates the learning of its members and continuously transforms itself

systems thinking- senges learning organisation

viewing the business as a whole

understanding how all areas are connected and how a decision in one part of the business can affect others

helps business during change as it coordinates actions across all areas, so changes are supported company wide and don’t cause new problems in other areas

how to achieve systems thinking

encourage communication and collaboration between departments

encourage big picture thinking before making decisions

systems thinking at Netflix

provide employees with info about the different parts of business and how they are interconnected, helping employees understand the impact of their work on the company as a whole

personal mastery- senges learning organisation

supporting employees to continually develop their skills, knowledge and abilities

helps business during change as individuals are confident and capable which strengthens businesses overall capacity to implement and sustain change

personal mastery at netflix

by encouraging employees to develop their skills and achieve their personal best, Netflix creates a culture where individuals are motivated to continually improve

how to achieve personal mastery

providing ongoing training, and opportunities for skill development

encourage goal setting and self improvement

mental models- senges learning organisation

assumptions, beliefs and attitudes that shape how people think and act. business can create an environment where employees question existing processes, challenge old habits and suggest new ideas without fear

removes outdates thinking that can block change making employees willing to adapt to new ways

how to achieve mental models

create safe environment for discussing new ideas

reflect on current processes and be open to change

mental models at Netflix

Netflix must always be ad free was a mental model that was challenged

shared vision-senges learning organisation

clear inspiring goal for the future that all staff committed to achieving

common understanding and agreement of the orgs future goals.

gives employees common purpose to work towards increasing motivation and reducing resistance during change

how to achieve shared vision

involve staff in goal setting and regularly communicating the vision clearly.

shared vision at netflix

vision to entertain the world was the driver behind changes and when teams saw how their work serves this goal they stay align through disruption and are more willing to adjust.

team learning- senges learning organisation

work together to share ideas, solve problems and build skills as a group.

builds collective problem-solving skills, helping teams adapt to change when introduced.

how to achieve team learning

creating cross-functional teams, hold regular team meetings, and encourage knowledge sharing to encourage collaboration and reduce misunderstandings, building a supportive enviro where change is embraced

team learning at netflix

Netflix- pilots, learns and then scales. e.g. homepage redesign was trialled, refined from feedback and rolled out in stages, ensuring mistakes were smaller, lessons spread faster and each iteration lifts performance

adv of senges learning org

boosts level of innovation in businesses

business responds to issues quicker in the future

continuously striving to improve, improving quality of outputs at all levels

disadv of senges learning org

large businesses struggle to share ideas and knowledge between all members

expensive particularly for small or resource constrained businesses

resistance to change

an attitude or behaviour that reflects an employee’s unwillingness to support a desired change

low risk strategies to overcome change

tactics that don’t have neg outcomes, as employees are involved, informed or supported through the change

slower but builds lasting commitment

communication-low risk strategies to overcome change

remove rumours, communicate benefits to develop employee understanding

adv- become informed and have questions answered, building trust between employee and manager

disadv- time consuming when lots of employees

empowerment- low risk strategies to overcome change

employees given power to be involved in change process

adv- fresh ideas=more effective change and employees less likely to resist as involved

disadv- conflict due to differing ideas or views may arise, time consuming to discuss and debate these

support- low risk strategies to overcome change

training, time to adjust or complete work, redeployment, listening and giving them opportunities for feedback

adv- motivates and imporve relationships, improving morale and corporate culture

disadv- time consuming to identify what support employees need and expensive

incentives-low risk strategies to overcome change

bonuses or pay rises, additional leave, promotions to gain their support for the change

adv- employees feel valued, improve motivation

disadv- may only support because of what they have been given not because they actually agree which will act as a restraining force later

low risk strategies to overcome change at neflix

c- explained why changes needed to be made

e-teams provided the opportunity to solve problems

s- training and mentorship

high risk strategies to overcome change

tactics that can result in neg outcomes, particularly permanently damaging staff and management relationships

faster, but damages trust and morale

manipulation- high risk strategies to overcome change

covert tactics to influence employees such as exposing them to a selective set of facts

adv- employees told benefits not knowing negatives, reducing resistance

disav- employees increased resentment against managers, reduced morale and motivation leading to negative culture

threat- high risk strategies to overcome change

uses force to gain acceptance by enforcing neg consequences on employees who resist e.g. loss of promotion

adv- achieve compliance quickly as employees fear the consequences, cost effective

disadv- neg corporate culture, breeding distrust and poor relationships

unfreeze- lewins 3 step change model

open up business to state where it has momentum to undergo change. communicating a vision and benefits of change to employees to get them on board and creating sense of urgency

unfreeze at netflix

highlighted challenge of reduction in sales, creating agency toward the basic with ads.

change- lewins 3 step change model

providing ongoing support and assistance, ensuring there is enough resources available to implement change to provide a smooth transition

refreeze- lewins 3 step change model

reinforcing change into the business so it will not revert to old ways. anchoring changes to culture and making adjustments

ongoing training

adv of lewins 3 step change model

clear simple structured process for implementing change

emphasises importance of preparing employees before implementing change

reduce resistance by involving staff in the change process early

disadv of lewins 3 step change model

dynamic everchanging business environment the refreeze stage may be too slow and business may need to adapt again

assumes change occurs in linear stages thus not suiting agile and dynamic businesses

stakeholders

groups or individuals who have a direct or vested interest in a business

owners- effects of change on stakeholders

return on their investment

change have potential to cost significant amount, negatively impacting profits in short term

if changes are successful the owners are likely to benefit in the long term

managers- effects of change on stakeholders

often the ones who have to deal with any resistance to change

may need to respond to media attention

employees- effects of change on stakeholders

often ones affected most by change as ones that carry out new processes

fear job security and may be forced to change roles, or even made redundant

possibility they will embrace change an become more productive or effective

customers- effects of change on stakeholders

purchase goods and services form the business

if change successful. better quality products and lower prices

if change neg, less customer satisfaction

suppliers- effects of change on stakeholders

provide resources to a business

if business increase tech use, they will require resources at a faster rate and suppliers now need to keep up with increased demand

or due to lean management, business needs less supplies, reducing revenue of supplier

general community

employ local people, significant impact on local economy

outsource results in job losses meaning less money will flow to local businesses.

expanding into new location stimulates the local economy

corporate social responsibility

the obligations a business has over and above legal requirements to the wellbeing of employees and customers, shareholders and the community as well as the environment

impact on employees- CSR considerations when implementing change

minimise impact change has on employees e.g. training and support, compensation and benefits, redeploying

impact on community- CSR considerations when implementing change

how change may affect local residents e.g. potential neg impacts on environment, availability of resources, traffic congestion

consider potential benefits such as creating new opportunities or supporting local economic development

long term sustainability- CSR considerations when implementing change

evaluating environmental impact e.g. carbon emissions or waste generation, and considering ways to minimise these impacts

impact on customers- CSR considerations when implementing change

impact of quality and availability of products or services

e.g. any potential delays or disruptions in service

supply chain- CSR considerations when implementing change

potential impact of supplier made redundant

open communication- CSR considerations when implementing change

express benefits of change in order to gain momentum and support from stakeholders

reviewing KPI’s to evaluate effectiveness of change steps

1. 1. identifying business objectives and then using KPI’s so the success can be measured

2. 2. whether change achieved business objectives, and thus whether strategies has been effective or whether modifications need to be made

3. 3. maintain momentum of changes made. stakeholders should be informed of the progress, which entrenches the change into the culture of the business