Blog 3: Change Management

A business organization operates in a rapidly changing environment, while focusing on achieving two ideal goals that are maximising profits and having competitive advantage. To attain these goals an organization needs to acquire the skill of managing and adapting to change within the organization. (Malek and Yazdanifard, 2012)

According to Mullins (2010) a few people resist to these changes and strongly affix to the status quo, depending on their individual personalities which management can not help. However, Waddell, D., Sohal, A. (1998) state that for effective and efficient management change, resistance is vital as it maintains equilibrium between the need for change and stability of the organization. Therefore, helps obtain momentum for the organization’s survival.

This blog will discuss about change management and its implications. Thoroughly examining the impact of Brexit on businesses which has led to change in an organization. Further considering potential solutions and action plan for resistance towards change. Brexit has affected a number of London based companies, but has significantly affected UK based departmental stores, for example. I will be discussing about John Lewis in this blog.

Impact of Brexit on John Lewis & Partners

A chain of high-end departmental stores John Lewis & Partners is a public limited company which has suffered due to Brexit. The company is facing a fall in the rate of profit by 99% as Brexit has led to rise in prices and also reduced the customers purchasing power due to inflation, says Kollewe (2018). Furthermore, Sir Charlie Mayfield, the chairman mentions that it creates uncertainty in the economy making it difficult for the business to predict or plan for the future and take decisions. (Butler, 2018) He also adds that the costs incurred by the company has increased as Brexit has weakened the pound to euro, reducing company margins. (BBC,2018) Therefore, a need for change is seen in the operation of this organization.

Solution for John Lewis & Partners

A planned change is necessary to settle organizational struggles, by using Lewin’s well integrated change model that comprises of 3-steps: Unfreezing, change and Refreezing. (Burnes, 2004) John Lewis & Partners can use unfreezing to solve operation issues by implementing a different method of being efficient and reducing cost while increasing sales. This could be by adapting multi-channel propositions to create sales. All employees work towards driving cross channel sales even if it viewed as a threat to their sales opportunity. According to Lewin’s, next step will be change, to enforce employees to adapt to transformation in management to make operation cost effective, promote sales and retaining customers. Further refreezing this change as employees start to embrace it and organization is stabilized. However, this modification is until required as Brexit has uncertain results on the company.

As I mentioned above the change in an organization should be effective similarly Kotter (2012) believes that for successful transformation a rigid model, which is the 8-step change model should be followed as it focuses on creating major change while overcoming barriers. Adapting this method could be beneficial for John Lewis & Partners as the company makes strategic changes to its costs, sales techniques and customer approach which employees need to accept effortlessly to survive global competition during Brexit.

Action Plan to Overcome resistance to change

In an organization change is constant to survive, although this is necessary the company faces resistances to change by some of its employees. To overcome this

The company needs to interact with employees, making them more involved and help them go through the change. (Lawrence,1969) Developing confidence in employees towards change by managers following the Change Commitment Process established by Corporate leadership Council, will result is a positive reaction towards change by Employees.

Learning Outcomes

Overall, Brexit has an effect on business operations due to which John Lewis & Partners need to make obligatory strategical changes. Therefore, these changes can be implemented by Lewin’s and Kotter’s change models as its suitable for the John Lewis & Partners company environment. Additionally, following the action plan by managers will help the organization to successfully deliver the solution with commitment from employees rather than resistance.

In conclusion, John Lewis & Partners can tackle change during unforeseen circumstances like Brexit which brings uncertainties to the business. As Managers and leaders take appropriate action towards changing environment. Thus, application of change management models and action plans bring positive outcomes and support from employees. Hence, companies must be ready for continuous change as the industry is affected by a number of external and internal factors.  

References

Harvard Business Review. (2018). How to Deal With Resistance to Change. [online] Available at: https://hbr.org/1969/01/how-to-deal-with-resistance-to-change [Accessed 26 Dec. 2018].

Extracted from “Building Employee Commitment to Change” (2009) Corporate Leadership Council, HR Practice. [Accessed Dec 15. 2018].

Burnes, B. (2004). Kurt Lewin and the Planned Approach to Change: A Re-appraisal. Journal of Management Studies, 41(6), pp.977-1002.

BBC News. (2018). John Lewis boss rejects Raab Brexit jibe. [online] Available at: https://www.bbc.com/news/business-45506500 [Accessed 27 Dec. 2018].

Malek R., Yazdanifard R. (2012) Overview of Change Management and Its Implementation. In: Zhu M. (eds) Business, Economics, Financial Sciences, and Management. Advances in Intelligent and Soft Computing, vol 143. Springer, Berlin, Heidelberg

Waddell, D., Sohaw, A. (1998). “Resistance: a constructive tool for change management”, Management Decision, Vol. 36 Issue: 8, pp.543-548.

Kotter, J. (2018). Leading Change. Boston, Massachusetts: Harvard business review press.

BBC News. (2018). John Lewis profits fall by more than half. [online] Available at: https://www.bbc.com/news/business-41264277 [Accessed 27 Dec. 2018].

Butler, S. (2018). John Lewis profits dive by 99% as Brexit row erupts. [online] the Guardian. Available at: https://www.theguardian.com/business/2018/sep/13/john-lewis-profits-dive-99-percent [Accessed 27 Dec. 2018].

Kollewe, J. (2018). Five reasons why John Lewis profits have dived. [online] the Guardian. Available at: https://www.theguardian.com/business/2018/sep/13/five-reasons-why-john-lewis-profits-have-dived [Accessed 27 Dec. 2018].