Understanding & Managing Change

1. Introduction

In the current business context, a business practice needs to be subtly changed to continue with a fresh face in the face of global business opportunities.Thereby businesses will not be able to achieve the desired outcome as they supposed.Most of the organizations meet their technical requirements within the business context but they are not capable enough to deliver expected results. Therefore, a gap exists between the actual and expected results. This has been the primary reason for introducing change management for the business environment.

Change management is a tool that can be used for the structural and behavioral change of businesses (Gaughan, 2007).Change management shakes up the current direction of a business and creates a new path through well-motivated employees with a new philosophy. Change can be occur in an organization in different aspects, such as leadership, structure, process or technological changes.

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Figure 1: Change Management process

 

By implementing the five step change process successfully the objectives ofchangemanagement can be achieved effectively. First the report evaluate why a change is required for thecompanyand what need to be changed. Under the impact analysis, this report evaluate what are the negative or positive impacts that can be affects to the requiredchange and how the company can overcome them. Based on the analysis, company can decide whether they accept or reject thechange.Implementation of change focusses on the company structure, strategies,processes and employees behaviors. Finally companay need to get the feed backs from the internal and external stakeholders to ensure implemented the changers are properly operates within the organization.

In this report demonstratehow the effective change management process adopt to the Ali BIN ALI Holdings in order to overcome potential challenges.

 

2. Ali Bin Ali

Ali Bin Ali is a privately owned holding company that is engaged in diversified business activities including retail and distribution services in Qatar. The company was founded in 1945 and the company has build-up remarkable relationships with world-recognized brands spread over the world with more than 80 years of trading experience. Ali Bin Ali kept its market leadership by providing quality products to the Qatar market. They have a huge loyal customer base and it is a result of the unswerving commitments of their team of 4000 employees from 66 nationalities. The company has a robust financial background and they have unrivaled market knowledge. Ali Bin Ali Holding Company introduced their vision as, they will be the partner of choice for their customers, suppliers and their people and they will deliver sustained growth. Ali Bin Ali designed their business path within their missions and visions. They always want to maintain their values in order to provide good services to their customers(Ali, 2020).

 

Figure 2: Ali Bin Ali – List of diversified sectors

 

 

3. Types Of Organizational Change.

Change is about moving away from the current status to a new dimension. Change management is methods and manners that how the company implement changers within internal and external processes. Change management concept builds to change the way of management and it involves seven core activities such as, identify the necessity of change and began the process of change, examining what needs to be changed and build a vision, planning how to involved in order to success the identified change, proceeds identified plans and reviewing progress, retention of the recognized change, Managing the issues of the people who affected and learning(Hayes, 2018).

Organizational Changes are those that creates significant impact on organization as a whole. There are four types of organizational changes can be stated as follows.

 

  • Strategic Transformational Change

All changes are affect to some aspect of a company. This change will be affects positively or negatively and it is depending on the strategies use by the management

 

  • People- Centric Change.

This include adoption of new employee policies and procedures.

 

  • Structural Change.

Structural changes include significant changes in management hierarchy, organizational team and their responsibilities.

 

  • Remedial Change.

Ideally remedial change applies, when organization identify specific problems and proper solutions need to be implement.

 

 

4. Reasons To Change.

Technology is rapidly changing and similarly, business strategies also change at a higher rate. Even though,Ali Bin Ali still follow traditional business strategies and processes.They have not yet adopted modern technology to break barriers in the current competitive business world.Due to current pandemic situation most of the Qatar’s consumers going online for their shopping needs. According to the Ministry of Transport and communications found that 60% of consumers in Qatar prefer to shop online (Start, 2020).

 

Qatar retailers adjusted their physical business locations into virtual platforms by introducing online fitting rooms and offering a range of delivery option.On the other hand due to the current situation most of the employees are prefer to work from home.

 

Following forecasted information’s provided the necessity of application of change management concept to the company.

 

Table 1: Expected outcome of coronavirus

 

Assumptions Short Term Medium Term Long Term
Social Distance 6-12 Month Remain 12 Months Remain 12-18 Months
COVID Outbreak Manageable Not manageable Not manageable
Business & Trade Work From Home Work From Home Work From Home
Back to normal 2022 2022 2023

Source: (KPMG, 2020)

 

Current pandemic situation will be continued till 2023, according to table 01. Since Company need to re adjust their traditional business strategies and processes in to new strategic norms.According to the current situation companycan adopt Strategic Transformational Changes in order to overcome current market challenges. Unless competitors may overcome the customers’ requirements.

 

For that company can introduced new technological changes to their business process such as online marketing, online fitting rooms, and goods distribute through drones. Further company can adopt changes to the existing working environment by introducing new working structures such as group task achievements, stress less working hours. Under the Strategic Transformational Change company can replace more automated mechanism rather than depending on human capital. Especially company can use artificial intelligence in order to increase the effectiveness and efficiency of business processes.

5. Force Field Analysis

When applying the Strategic Transformational Change toAli Bin Ali it is essential to consider,

  • The forces for the change
  • The forces resisting change
  • The driving forces
  • The restraining forces

 

Figure 3: Force Field Analysis for Strategic Transformational Change(Five point rating Scale)

 

 

 

Strategic Transformational Change

 

Digitalization of operations

 

Restraining forces
Driving forces
+04
High initial investment.

 

+05

 

 

 

 

 

 

 +03
+04

 

  Fear of losing jobs.

 

 

24/07 Service Available

 

+05

 

 

+02
Performance Pressure

 

 

Web Based Platform

 

 

+04
+03

 

       Government rules

 

Improve the efficiency

 

 

 

13
16

 

According to the analysis Ali Bin Ali can decide whether they continue with the strategic transformational change or not.It is a must that, driving forces need to always exceed the restraining forces to get the expected results from the transformational change management process.Companycan implement strategies to reduce the restrictive forces.

 

With the replacement of automated techniques, existing employee’s fear that they cannot performed given task with newly introduce techniques.    To reduce the performance pressure and to gain experience,Companycan hire professional qualified person to conduct training and development to the staff to make them confident on transformational change.

 

Due to the automation of business processes, employees may be fear that they will lose their jobs. To reduce the fear of losing jobs: company can demonstrate to their employees, transformational change is essential to have a perpetual succession of the company. Further, company need to build up their confidence by giving assurance, this new implementation will not be cause to losing their job.

 

For the transformational change, Company requires to incur high initial investment on new plants & machineries, high technological equipment’s, software’s. To reduce the negative impact on high initial investment: Company needs to have a proper short term, midterm and long term financial plan.To implement the transformational change process successfully, Company needs to aware of financial and non-financial resources, legal and regulatory requirements, consent of employees, and other stakeholders, and its benefits of the change (Unit, 2013). Then company Can reduce the impact from restraining forces while strengthningthe driving forces.

 

6. Time For Change

Even though change management is a commonly discussable topic, its implementation is more challenging. Most companies restrain from implementing change as they believe change will adversely effects on day today operations of the business. Nevertheless, organizations which capture the pattern of the change properly, thrives and survive.

 

7. Lewin’s Three-Step Process.

Lewin introduced a three-step model for successful change management and that involves the stages of unfreezing, moving/Changing, and refreezing. Un-freezing is breaking the current situations, change/moving involves balancing of driving and restraining forces that have identified, and refreezing involves adopting new behavior to the company’s business environment.If you have cubic of ice but you want to cone of ice first you need to melt the cubic (Unfreeze) of ice and then, that water needs to fill into the particular shape that you want (Change). Ultimately, we can be ending with a new shape that we want (Refreeze). This is simplifying”Lewin’s Change Model”(Hayes, 2014).

 

Ali Bin can use “Lewin’s Change Model” to avoid barriers to change and to implement Strategic Transformational change successfully.

 

 

Figure 4: Lewin’s Change Model to Strategic Transformational change.

UN FREEZE

 

 

·   Established new vision.

·   Motivation for change.

·   Create new policies.

·   Develop new strategies.

·   Manage uncertainties.

 

CHANGE

 

 

·     Report to the management

·   Encourage new change

·   Knowledge Sharing

·   Engage people

RE FREEZE

·   Implementation of Change

·   Manage the change

·   Sustain the new change

 

7.1 Unfreeze

The first, company must prepare for a position to accept strategic transformational change. In doing that management requires to challenge the current status and to communicate proposed changes to the internal environment of the organization. For that they have to introduce short term and long term strategies to overcome (Sarayreh, et al, 2013). Top management can conduct meetings and adhere to their staff members to remove all the previous practices and they can develop new business strategies.

 

Further management needs to convince their employees and other stakeholders of the necessity of strategic transformational change management and the message can be kept at a strong position. This can be achieved by explaining the possible future challenges and its impact on the companyand ultimately to the employees. This is the hardest part of change management by introducing a new behavior by replacing current practices.

 

7.2 CHANGE

After unfreezing Company should change its operations to ensure the success of the company.During thechange period, Ali Bin Ali’s management needs to evaluate the change curve and implement immediate actions accordingly. To accept the strategic transformational change,it is important to have the peoples’ consent and belief that the newly adopted changes are more beneficial for them. All the people encourage to share their new knowledge among others.Leaders need to encourage all the staff members to adjust their self to new change and they need to prepare the mind set of stakeholders.This will be crucial for Ali’s management to manage the change.

 

7.3 Refreeze

Ensure internal and external stakeholders are widely accept the new change and they embedded with new structural change. Subsequent to the change process,people get adapted to the new processes and operations of Ali Bin Ali. This proves thatthe organization is ready to refreeze. Now the company can ensure that the newly adopted procedures are operating effectively and efficiently on all business streams in a smooth manner.

 

8. Strategic Transformational Changes.

Change management can be implemented by Ali Bin Ali by giving prominence to the following areas.

8.1 Digital Marketing

The current context of the business

In the current business practice customers need to visit the seller’s business location to have the company’s goods and services. This creates inconvenience for both sellers and customers. As a solution, they can apply the fully digitalized marketing approach.

Propose Strategic Transformational Change

Ali bin can sell their products through a virtual environment. They can update the stock availability of their products services promptly.Company can create a virtual 4D platform and virtual shopping platform. Then the customers can select fashionable items, Luxury items without going to the seller’s locations and they can check the suitability of fashionable items such as clothes under the virtual fitting rooms by using their smartphone app. Further, they can check the availability of goods from their home.

In addition to that they can provide customized services by using a robot system. The customer only needs to open up their webcam and the speaker. Without typing anything they can verbally tell their requirements to the robot system. Within one-second,it will able to find out most suitable products to the customer upon their customized specialties.

Gaining Competitive advantage through strategic transformational change

Artificial Intelligence can be programmed with different languages(No limitation on language), skills. It can support the customer on the customer’s verbal commands. Anyone can place their order without confusion on language. This will lead to a good business opportunity and as well as to capture a massive market share. Another hand 4D platform makes it easy to choose goods according to customers’ requirements. Customers can select goods by themself. By offering these facilities company can overcome their competitors. Further, Ali Bin can improve its service quality and productivity.

8.2 Logistics

The current context of the business

Currently, Ali Bin uses traditional distribution methods. This is creating, difficulties such as the cost of distributions, difficult to distribute goods to the customer’s location under the current COVID- 19 pandemic situation.Instead of current distribution channels, Ali Bincan deliver goods to the door end of the customers by using new technology.

Propose Strategic Transformational Change

For the fast-moving consumer goods, beverage and sports relates products and be distributed by using drone technology.Nowadays this concept can be used effectively due to COVID- 19 19 pandemic.People are trying to keep social distance due to this outbreak. Ali can grab this opportunity and by utilizing that can reach to the customers’ place by using drones.

Gaining Competitive advantage through strategic transformational change

This reduces unnecessary distribution costs. Further due to the prevailing pandemic situation most competitor’s temporarily hold their operations to minimizehuman involvement. Using drone technics Ali Bin can limit human involvement and they can distribute their products in a safe manner. Further, Ali Bin can protect its customer base by continuing the supply of goods and services.

8.3 No Boss &No Time

The current context of the business

Currently, the company focuses on human capital. All the workers are strictly monitoring by the management. Employees need to report on time and they can leaveonly after completing the recommended day-to-day works. In any circumstance, lower-level managers need to report upper-level management. These practices lead for an employee demotivation. Instead of the current application, they can apply a new employer-employee relationship in order to motivate their workforces.

Propose Strategic Transformational Change

Ali can use this concept to all its business streams. No individual is identified as a boss. All the employees are working independently. All the employees are work in a sense of subordination to no one. This allows the employee to work with self – motivation as well as self – esteem about their career. Further, they donot bound for a recommended fixed working time slot.

Gaining Competitive advantage through strategic transformational change

Employees can work 365 days via the internet. Employees areencouraging to do task-based activities.Due to the freedom of the working environmentemployees, will not frustrated and they will perform their job roles more than the expectation of management. None of the employee is trapped in a time frame. Then the company can get maximum output from their workers than their competitors.

8.4 Fewer Employees.

The current context of the business

Ali Bin Ali holding company has a large workforce of about 4000. Managing a large number of employees is a complex and costly endeavor. It is also risky to handle and bring in a large number of employees in the event of a pandemic like COVID- 19. This will have a very detrimental effect on the business.

Propose Strategic Transformational Change

The labor power needs to be rearranged with artificial intelligence as a new person. Here, Robots can be used instead of employees and it will deliver the same outcome with increased accuracy. Further the inefficiencies due to fatigue, human error, health problems can be avoided.

Gaining Competitive advantage through strategic transformational change

By using robot technics, they can improve the level of quality of services and robots are rarely make mistakes.Therefore, they can reduce the wastages and they can save time since robots can work at unbroken speed continously.

 

9. Resources to implement the transformational change successfully

9.1 Internal Resources

  • Adequate capital Investment.
  • Adequate internal workforce commitment toward change management.
  • Introduce new softwares and other infrastructures.
  • Expert’s knowledge of change management.

9.2 External Resources

  • Customer’s feedbacks.
  • Advanced communication infrastructures
  • Flexible Government rules and regulations.

 

 

10. Risk & Managing Change

Success and full change always beginning from the points where the stress and strain exist(Randell, 2004). Quality is the final result of change management processes. Therefore, Ali Bin Ali has to focus on managing the quality of proposed changes. For that company can use following principles,

  • Customer focus
  • Strategic focus
  • Leadership focus
  • Process focus
  • People focus
  • Scientific focus
  • Continues improvement, innovation, and learning
  • System thinking(Knowles, 2011)

When considering the hospitality stream of Ali Bin Ali, due to continuous changes in customer consent and the changing of the business environment it is essential to pay their attention to uncertainties of individuality. According to (Morten & Sund, 2017) found that service providers have to attempt major changes in their strategies, leadership, and culture in order to satisfied customers’ requirements. Followings areas need to consider when managing customer uncertainty.

  • External Relation and Customers
  • Challenge of Digitalization
  • Frontline Employees
  • Set of Guiding Principles
  • Seen in a holistic view
  • Knowledge sharing and education

Further companies can use some of the theories introduced by experts. Even newly adopted processes not familiar to the employees of the company. Ali’s management tries to follow some of the basic principles introduced by Philip.B.Crossby ( Suar, 1992).

  • Do it right the first time.
  • Zero Defects and Zero Defects Days.
  • Four Absolute qualities.

Every time they try their bestto do the right thing in first time even it is difficult to do so. In order to achieve expected returns from proposing changes it is essential to do everything correctly for the first time (Dinsmore & Cooke, 2005) . They can arrange some training programs for their employees to adjust themselves to these newly added changes.

Defects are one of the important aspects that management needs to conceder. The reason is defective services or items may lead to flues company reputations and customer satisfaction. Company needs to improve their quality condole procedures and they need to examine every single defect closely by keeping records on defects and make sure that similar defect will not happen again.

11. Conclusion

For the effective implementation of change management company should haveright leadership, effective communications, segregation of duties, analyzing, and track keeping of the entire process (Okemba, 2018). Ali Bin Ali has to evaluate how these changes affect their employees. Existing employees will negatively react when they got to know that their job will be change. The worst case is tendency of firing employees who have worked for years. This is an acceptable situation (Turner, 2017). The effort, commitment, duration, and creating a framework is another aspect that the company needs to focus(irkin, et al., 2015). Finally,Ali Bin Ali can properly manage their technical innovations, employee commitments, and efforts irrespective of how the world change. They can move forward and this is accepted by some researchers from their research findings(Stouten, et al., 2018). As a consulter we believe that after adopting our recommendations, the company can be successful in change management and it will lead toachieve their vision, missions, and their targets properly.

 

 

 

 

 

 

 

 

 

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