CANDIDATE RESOURCE & ASSESSMENT · PDF fileIn an organisational sense, change management to effectively implement new methods and systems is an ongoing task

MANAGE ORGANISATIONAL CHANGE

CANDIDATE RESOURCE & ASSESSMENT BSBINN601A

Precision Group (Australia) Pty Ltd

9 Koppen Tce, Cairns, QLD, 4870

Email: [email protected]

Website: www.precisiongroup.com.au

© Precision Group (Australia) Pty Ltd

BSBINN601A

Manage Organisational Change

ISBN: 978-1-74238-

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1Candidate Resource BSBINN601A Manage Organisational Change © Precision Group (Australia) Pty Ltd

Table of Contents

2 Legend

3 Qualification Pathways

4 Qualification Rules

5 Introduction7 BSBINN601A/01 Identify Change Requirements/Opportunities Key Points

Identify strategic change needs through an analysis of strategic plans

Review existing policies and practices against strategic objectives to identify change requirements

Monitor trends in the external environment to identify events or trends which impact on the achievement of organisation’s objectives

Identify major operational change requirements due to performance gaps, business opportunities or threats, or management decisions

Review and prioritise change requirements/opportunities with relevant managers

Consult specialists and experts to assist in the identification of major change requirements/opportunities

15 ‘True’ or ‘False’ Quiz

17 BSBINN601A /02 Develop Change Management Strategy Key Points

Undertake cost benefit analysis for high priority change requirements/opportunities

Undertake risk analysis, identify barriers to change, and agree and document mitigation strategies

Develop change management project plan

Obtain approvals from relevant authorities to confirm the change management process

Assign resources to the project and agree reporting protocols with relevant managers


29 BSBINN502A/03 Promote Innovation Key Points

Develop communication/education plans in consultation with relevant groups and individuals

Develop communication/education plan to promote the benefits of the change to the organisation and to minimise loss

Arrange activities to deliver the communication/education plans to all relevant groups and individuals

Consult with relevant groups and individuals for input to the change process

2 Candidate Resource BSBINN601A Manage Organisational Change © Precision Group (Australia) Pty Ltd

Legend

This symbol indicates the beginning of new content. The bold title matches the content of the competency and they will help you to find the section to reference for your assessment activities.

Activity: Whenever you see this symbol, there is an activity to carry out which has been designed to help reinforce the learning about the topic and take some action.

This symbol is used at the end of a section to indicate the summary key points of the previous section.

This symbol is used to indicate an answer to the Candidate’s questions or notes to assist the Facilitator.

Use considered risk taking in your ‘grey’ area

...and others will follow you!

Identify and respond to barriers to the change in accordance with risk management plans

Action interventions and activities set out in project plan in accordance with project timetable

Activate strategies for embedding the change

Conduct regular evaluation and review, and modify project plan where appropriate to achieve change program objectives


36 Summary37 Bibliography39 Assessment Pack


“There are always two choices. Two paths to take. One is easy. And its only reward is that it’s easy”. Source Unknown

This unit of competency is provided to meet the requirements of BSB07 Business Services Training Package although it can be used in a range of different qualifications. The BSB07 Business Services Training Package does not state how a qualification is to be achieved. Rather, Registered Training Organisations are required to use the qualification rules to ensure the needs of the learner and business customer are met. This is to be achieved through the development of effective learning programs delivered in an order that meets the stated needs of nominated Candidates and business customers.

Qualification Pathways


Qualification requirements include core and elective units. The unit mix is determined by specific unit of competency requirements which are stated in the qualification description. Registered Training Organisations then work with learners and business customers to select elective units relevant to the work outcome, local industry requirements and the qualification level.

All vocational education qualifications must lead to a work outcome. BSB07 Business Services Training Package qualifications allow for Registered Training Organisations (RTOs) to vary programs to meet:

Specific needs of a business or group of businesses.

Skill needs of a locality or a particular industry application of business skills.

Maximum employability of a group of students or an individual.

When packaging a qualification elective units are to be selected from an equivalent level qualification unless otherwise stated.

Qualification Rules

“You’re either part of the solution or part

of the problem.”Eldridge Cleaver


Introduction

“Whether as an individual, or as part of

a group, real progress depends on entering whole-heartedly into

the process and being motivated to make you a

more deeply satisfiedhuman being.”

Source Unknown

This unit of competency is all about being able to manage your skills and priorities in the workplace. It will help you with the skills you need to demonstrate competency for the unit BSBINN601A Manage Organisational Change. This is one of the units that make up Advanced Diplomas in Business.

This manual is broken up into three distinct sections. They are:

1. Identify Change Requirements/Opportunities: We will begin by looking at considering if a change is necessary.

2. Develop Change Management Strategy: If it is necessary, we will now look at the feasibility, cost and potential methods of implementation of the desired change.

3. Implement Change Management Strategy: Finally, we will look at how to plan and implement the change.

At the conclusion of this training you will be asked to complete an assessment pack for this unit of competency. The information contained in this resource will assist you to complete this task.

On competent completion of the assessment, you will have demonstrated your ability to identify organisational strategic change requirements and opportunities, and to develop, implement and evaluate change management strategies.



Key Points Section 1 The changes to be managed lie within and are controlled by the organisation.

Organisations must review their systems, work practices, suppliers and other elements of the business in an attempt to improve their ‘bottom line’.

The primary focus of strategic planning is to create a broad outline of sustainable actions that the organisation will undertake for attracting more customers and increasing sales volumes.

Policies which had been developed in response to meeting the requirements of the strategic plan must be reviewed to identify those that require change.

PART 1: Identify Change Requirements/Opportunities


Part 1: Identify Change Requirements/Opportunities

Key Points Section 1 continued The external environment directly affects each organisation and each

organisation affects the environment.

The SWOT Analysis is a useful tool for understanding and decision-making for all sorts of situations in business and organisations.

There should be a compelling reason whether capitalising on an opportunity or meeting a requirement, which can convince all participants and, in due course, the target population.

The final choices should be checked by a specialist or expert to ensure that the change is going to be appropriate and successful providing the expected outcomes.



What is Organisational Change?

In an organisational sense, change management to effectively implement new methods and systems is an ongoing task. The changes to be managed lie within and are controlled by the organisation.

Organisations should place high importance on ensuring that organisational change, when required, is implemented in a timely and professional manner. Where organisational change is implemented correctly the benefits include:

Employee participation

A greater understanding of the change

A better informed decision is made

Trust is maintained throughout the process

Loss of productivity is minimised.

It is imperative that the work area understands that organisational change is about allowing employees to influence the decision maker through a consultative process.

Why Initiate Change?

Organisations must constantly review their systems, work practices, suppliers and other elements of the business in an attempt to improve their ‘bottom line’. By keeping their practices current, they are able to capitalise on opportunities or to manage threats more quickly and with better outcomes. The review process generally begins with the strategic plans.

Analysing Strategic Plans

It is said that strategic plans are merely lists of what must be done over a given period of time. Many feel that strategic planning is not useful when the organisation is faced with having to make a difficult, major decision. Or, still others feel that strategic planning doesn’t really assist the organisation to face the future. People tend to feel this way because organisations do not conduct a thorough strategic analysis as part of their strategic planning process. Instead, they plan only from what they know now which makes the planning process much less strategic and more like a guess.

The whole point of strategic planning is to build a broad outline of actions that the organisation will undertake to increase its business and profits. Strategic planning helps achieve desired results because it is put together after analysing existing demand for the product or service as well as analysing the threats posed by competitors.



The key objective is to create measures or standards based on the organisation’s existing strengths and weaknesses in terms of the product or service they offer. Aside from defining the goals and objectives, strategic planning also defines the way or method to reach planned objectives and identifies the ‘who’, ‘what’, ‘when’, ‘where’ and ‘whys’ of implementing the plans.

Strategic planning is basically finding ways to serve customers better. However, it is very difficult to assess the precise needs of customers. Strategic plans must be measurable and have preset measures in satisfying customer needs and expectations to help the organisation in monitoring the effects of the plans. Strategic planning also deals with the formulation of contingency plans that help in preventing revenue loss in case a specific customer-centric plan fails to attract customers and generate the requisite amount of revenue. Value addition is another important aspect of strategic planning and can be described as a process through which organisations are able to understand, promote, and deliver the relevant ‘value’ desired by the customers.

Strategic planning helps in retaining customers who could be captured by competitors. By identifying opportunities, leaders will be better able to predict the areas where competitors are most likely to appear in the near future. Strategic planning may not always be successful because it has to function in an ever changing environment such as changing market conditions, customer preferences, and competitive attack. Regular and timely monitoring and evaluation is necessary to ensure the success of the strategic plans.

Asking questions like those following will help clarify necessary changes:

Identify issues by addressing questions such as:

a) “What external changes could affect the organisation?” Consider changing demographics of stakeholders, including number, values, resources, power, etc.;

Changing rules and regulations; expectations and resources from customers, vendors, etc.;

Expected shifts in needs for products and services; availability of leadership and staffing; and what other current or new organisations provide similar services?

b) “What could be the effects of these changes in terms of threats or opportunities?”

c) “What changes must we make to address the threats?”

d) “What strengths can we build on to take advantage of the opportunities?”

Policy and Practice Reviews

Once reviewed, policies which had been developed in response to meeting the requirements of the strategic plan must be reviewed to identify those that require change.

The time taken to determine whether a policy or procedure is operating correctly will depend on the purpose of the review. For example, if an organisation has a greater number of product faults, or there is a need to improve the profit margins, policies relating to each must be examined.



A timeline needs to be determined with which to establish whether the policy is working, and dates set for review. The procedure should also establish the acceptable standard and how it is to be measured, as well as the actual process of monitoring this.

Monitoring the initial and ongoing implementation of policies and procedures is essential to ensure that the new policy is meeting the desired standard. This may be in the form of a questionnaire or survey completed by those involved in the operation of the procedures and can be used to discover whether the goals, objectives and outcomes of the policy are being met, and the purpose achieved. Any problems or difficulties identified in such a review process should automatically lead to a repeat of the process of policy analysis, redesign and implementation. This process therefore follows the cyclical model outlined.

The policy and/or associated procedures developed may not be quite right and need modification (fine-tuning). With input and assistance from the people actually involved in the process it will be easy to adjust them. Any changes or modifications to the policy require further notification to all stakeholders, and new version of control information may need to be added.

It is important to note that internal auditing of all policies, procedures and systems within an organisation and the process of policy review may be incorporated into the wider audit schedules and system of the organisation.

External Environmental Trends

The external environment affects every organisation because no organisation operates in a vacuum. Therefore, the external environment must be taken into account as decisions are made in regard to strategic planning.

The external environment can be divided in to four main categories: the socio-cultural environment, the economic environment, the political-legal environment and the technological environment. The societal environment can greatly impact a company, and the way it manages its human resources.

An effective tool to aid in this part of the planning process is the SWOT Analysis.

The SWOT Analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organisations. SWOT is an acronym for:

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS.



The SWOT analysis provides a framework for reviewing the strategy, position and direction of a company or business proposition. It is a subjective assessment of data which is organised by the SWOT format into a logical, but subjective order that helps analyse an organisation’s environment.

The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities and Threats.

“Innovation is the ability to see change as an opportunity - not a threat”.

Source Unknown



Strengths A new and exciting product or service.

Your specialist sales technique.

Your attention to quality.

Excellent customer service.

Convenience of parking.

Opportunities A new international market.

Merging with a complimentary

business.

Moving into new product range.

Internet sales.

Market opening due to the closure of

an ineffective competitor.

Weaknesses No new products.

Poor customer service

Lack of quality systems.

Poor location.

Poor reputation.

Threats A new cheaper competitor.

New computer systems of a competitor

to follow up in your market.

Competitors can ship cheaper and

quicker.

A competitor has a new product or

service.

Lack of product availability.

SWOT Analysis

Determining Change Requirements

Every Change Management project needs compelling reasons for changing. Whether taking advantage of an opportunity or meeting a customer need, a reason for change needs to convince all those involved and, eventually, the stakeholders and customers. If everyone agrees that the project has a good and necessary purpose, they should be far more supportive of the changes.

This is not the same as the project’s main business benefit case. The business case is likely to be founded on financial results which are not usually the most influential argument for those in the workforce.

The reasons for change should be clear that there are better ways of doing things for the organisation, workforce customers and (maybe) suppliers.



The reason for change is developed in conjunction with relevant managers who will be or are affected by the change, are participating in the change project or hold a position of leadership in the organisation. It is essential that these managers be included to provide ‘buy-in’, which will make it easier for them to take ownership of the project and enact the change management program to be initiated. They may simultaneously develop a list of priorities.

Specialist or Expert Opinion

Change management is an expensive process and it is therefore important that the expertise of accountants, lawyers or other experts in various and appropriate fields be utilised.

The final choices should be checked by an expert to ensure that the change is going to be appropriate and successful in providing the expected outcomes.

Another area which may require greater expertise is the change management initiative itself. There are many models and the selection and application of the best model to achieve the desired outcomes is essential. There are businesses and individuals who focus solely on conducting change management processes for organisations.

Activity OneYou are going to be invited to participate in a SWOT activity. Follow the instructions of your Trainer.



Section 1 - ‘True’ or ‘False’ Quiz

Please tick True False

There is no need to develop a compelling ‘Case for Change’.

Policies must be reviewed to identify those that require change.

The external environment directly affects each organisation and each organisation affects the environment.

There is only one model for change.

The SWOT analysis is not useful for reviewing strategy, position and direction of a company or business proposition, or any other idea.

A timeline needs to be determined with which to establish whether the policy is working, and dates set for review.

Strategic planning is, by and large, ‘worker centric’.

The ‘Case for Change’ is developed solely by the CEO.

A review should establish acceptable standards and how it is to be measured, as well as the actual process of monitoring it.

Change management is an expensive process.

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CANDIDATE RESOURCE & ASSESSMENT · PDF fileIn an organisational sense, change management to effectively implement new methods and systems is an ongoing task