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INDIVIDUAL ASSIGNMENT RETAIL MANAGEMENT DEVELOPMENT PROGRAMME STRATEGY AND CHANGE PROCESS AMINA PATEL 8703040052087

INDIVIDUAL ASSIGNMENT STRATEGY AND CHANGE PROCESS AMINA PATEL

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INDIVIDUAL ASSIGNMENT

RETAIL MANAGEMENT DEVELOPMENT

PROGRAMME

STRATEGY AND CHANGE PROCESS

AMINA PATEL

8703040052087

CONTENTS

1. Introduction

2. Question One

a. Strategic intent and direction

b. Alignment of areas of responsibility

c. Map the change

d. Focus areas for strategic achievement

e. Type of strategy for each focus area

f. Leadership commitment

3. Question Two – Identification of weak threads

4. Question three

a. Stakeholder Analysis

b. Risk Analysis

5. Question four – Important Threads

6. References

1. Introduction

Edcon (Pty) Ltd is the leading clothing, footwear and textiles retailing group in Southern Africa trading through a range of retail formats. The first Edgars store was opened on the 6th of September 1929 in Joubert Street, Johannesburg. Since then, the Company has grown to ten retail brands trading in over 1000 stores in South Africa, Botswana, Namibia, Swaziland and Lesotho.

Edcon's retail business has, through recent acquisitions, added top stationery and housewares brands as well as general merchandise to its CFT portfolio. Edcon Financial Services provides credit facilities and financial services products to the Group's over 4 million cardholders. (http://en.wikipedia.org/wiki/Edcon) Accessed on 19 October 2014)

According to Edcon (2014), the vision of the organization is to ensure that Edcon’s stores

remain "The Places to Go" in our chosen markets and to entrench our position as southern

Africa’s largest non-food retailer. http://www.edcon.co.za/about-strategy.php

The organization further articulates it’s Values as: Our core values are people, integrity, performance and professionalism, all of which are never compromised, in the pursuit of strategic growth. http://www.edcon.co.za/about-strategy.php

People: Value our employees and customers, and treat them with respect Integrity: Be open, honest and fair. Performance: We don’t just strive for excellence, we outperform. Professionalism: Approach every day with personal accountability and commitment.

My role at Edcon is a Specialist Buyer employed to look after the Shelley Lingerie portfolio which is the 2nd largest within the organization’s Intimate wear division. The Intimate wear division is an integral part of the organization’s bottom line and contributes 6% to Total Edgars turnover.

The purpose of this paper is to illustrate that there are existing obstacles within the Shelley Lingerie Portfolio and to develop a change management process to effectively implement an “Ease of Shop” service that will effectively aid to increase turnover within the intimate wear division. The change management process will have an impact on the strategic direction and intent of the portfolio and we will demonstrate in this paper the process involved to effectively drive strategic change.

Edcon strategy is driven by Bain & Company who is the current owner of the group. However Edcon’s business strategy has its own unique drivers as they are trying to achieve specific outcomes all aligned to one common goal and that it to be profitable.

Bain is a global strategic management consultancy firm that the world leaders come to when they want enduring results. They find value across boundaries, develop insights to act on and energize teams to sustain success. They define Strategy as: “A proprietary set of actions that enables a company to be worth more than just the sum of its parts.” (www.bain.com)

The different parts include:

Not burden the frontline from delivering results, so “start with nothing, then add back”

Build a compelling vision and set of concrete financial objectives that are embraced by key stakeholders.

Focus on creating a portfolio of leadership positions to generate superior returns and move to more attractive markets over time.

Determine portfolio priorities (between business units) by assessing competitive positions, leadership potential, market attractiveness and economic profit.

Use portfolio priorities to drive differential resource allocation and differential targets across business units.

Strive for systems repeatability, which creates competitive advantage from learning curve effect gained through repetition, reduced complexity by adapting a known pattern and faster and more reliable decision making on investment.

Manage a conservative capital structure to support growth and provide flexibility. (www.bain.com)

Edcon define their current strategy as: Our strategy is underpinned by four key levers:

comparable store growth, new space growth, margin expansion and credit. We aim to

improve revenue by growing comparable store sales and increasing new space growth, as

we continue to roll out additional stores in South Africa and other African countries.

We strive to leverage the benefit of these increased volumes by improving the margin on

our sales. Our ability to offer credit through our strategic relationship with Absa Bank

Limited (Absa) will enhance customers’ access to the products we sell.

http://www.edcon.co.za/about-strategy.php

It is important to highlight Bain’s and Edcon’s strategy as they drive the strategic intent in the Shelley Lingerie Portfolio. At the end of this paper, the reader will have a clear understanding of how the principles of strategic change and influence are applied to the Intimate wear department focusing on Shelley Lingerie at Edcon, and how this assists in the management of change of implement an “Ease of Shop” service. The reader will also be familiar with the stakeholders, risks, and key strengths and weaknesses that are of importance to the change management process.

Question 1

A) For the purposes of this assignment I will be looking at the intimate wear department focusing on Shelley lingerie a well-established house brand. More specifically on developing and implementing a “ease of shop” service for our clientele for two stores within:

1. Corsetry

2. Undergarments

3. Panties

We envision a roll out to the rest of the product lines upon the successful completion of this

pilot change management process.

We are currently facing the following issues:

1. Customers are not finding desired products

2. Customers are not finding desired silhouettes

3. Customers are not finding desired sizes

4. No clear destination for Shape wear

5. No clear distinction between silhouettes

6. No clear distinction between house brands

7. Retrenchments – less staff to assist customers

8. Poor replenishment of stock from store rooms

The above issues have resulted in:

1. A decline in sales:

Sales forecasted for Shelley lingerie at the end summer 2014 shows a 9% decrease in sales,

13% decrease in gross profit and 24% decrease in stock turn. Shelley contributes 22.3% to

the intimate wear department (as shown in graph below).

22.3%

10.6%

6.0%

4.2%3.1%3.6%1.6%

27.7%

21.0%

INTIMATE WEAR 2014

D 0121 SHELLEY LINGERIE

D 0122 SLEEPWEAR

D 0128 HOSIERY

D 0193 LDS SWIMWEAR

D 0378 FREE 2BU SLEEPWEAR

D 1124 FREE 2BU

D 1125 TEMPTATIONS

D 0120 BRANDED LINGERIE 1

1. The largest product line is the corsetry portfolio which contributes 53% to Shelley

Lingerie which forecasted to end summer 2014 at a decrease of 9.8%

Padded bras are the biggest contributor to the category contributing 45% -

forecasted to end summer 2014 at a decrease of 13.4%.

2. Undergarments contributes 23% to Shelley lingerie - forecasted to end level end of

summer 2014.

Within undergarments shapewear is the biggest contributor, contributing 66% -

forecasted to end summer 2014 at a decrease of 3%.

3. Shelley panties contributes 24% - forecasted to end summer 2014 at a decrease of 16%.

2. Loss of market share:

2013 2014 Loss

Intimate wear -17% -16% 1.9%

Shelley Lingerie -20% -18.7% 2.2%

Target state:

What will stop?

1. Current layout 2. Current signage

3. Current merchandising

4. Current staff interaction with customers

5. Current stock control

What will start?

1. New, clear and easy to understand signage 2. Improved service and customer experience

3. Replenishment of store room stock by size every day

4. Specific destinations for each category (Corsetry, undergarments and Panties)

5. Essential’s for core bras which include your basic bras and silhouettes

6. Panty pack fixtures by silhouettes

What will continue?

1. The same product 2. Same fixtures

3. Staff

B) In order for me to effectively implement the change management process and drive

the “Ease of Store” service I will use my position as a buyer within the Shelley Lingerie

portfolio to influence the necessary role-players by indicating as shown above the loss

in sale and market statistics. I will validate my case with actual data and visuals and

illustrating the benefits to the organisation as a whole.

People

Technology Processes and

Systems

Finance/Budget: Are we on target?

Infrastructure (Fixtures &

Signage): Impacts our

Merchandising

Information / Ease of

purchase

Staff competence: Skill

Culture: Impacts on

service

Staff Turnover: Impacts

on service

Alignment of Area of responsibility - Process flow

1. Product development & purchase

2. Sign Off

3. Suppliers

4. Planning

5.Retail stores

Buyer responsible for product line: Design and

Stock aligned to budget set at financial year

Layout to senior managers and general

managers

General Managers and Senior Managers approve

product range

Suppliers make the stock and deliver to the

distribution centres:

1. Direct supplier : Local or China

2. Indirect supplier: Agent

Technology: The supplier makes a booking on the

E Supply chain database which alerts the planner

Planner allocates the stock to the different retail

stores by store grid.

Allocations are made on the E Supply chain

database.

Planner can track what is delivered and what is

outstanding

The stores receive stock

Stock scanned onto the

system

Merchandising on the

floor

Problems faced in this

area:

Fixtures, packaging and

signage not visible

Staff not skilled

Staff demotivated due to

retrenchments – bad

customer experiences

Staff put all the

merchandise together, no

clear distinction of

product making it difficult

for the client to shop

C) The graph below indicates the decline in sales for 2014 in corsetry, undergarments and

panties and the need to implement change.

The strategic change implemented is the “ease of shop” service. This strategy needs to map

the change as follows:

Map of change in my area of responsibility

Work with marketing to design new signage and packaging for retail stores

Buy in and sign off from senior and general managers

New signage and packaging to be delivered to stores

Clearly marked signage and packaging of product

Upskills of staff - Educate staff:

o Merchandising

o Customer Experience

Store receives stock

Stock scanned onto the system

Merchandising on the floor in accordance to destinations of each category

Increased customer satisfaction due to ease of shop experience

Maintaining stock levels by working closely with suppliers to ensure that lines are

constantly replenished

Increase in turnover

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

C 1416 SHELLEY CORSETRY C 1417 SHELLEY U GARMENTS C 1419 SHELLEY PANTIES

SHELLEY LINGERIE

% Cont. to Intimate Wear % Sales Growth to 2013

D) Below are the specific areas of focus to ensure successful change and strategy

achievement.

1. CORSETRY

The focus area within corsetry is the padded bras as this product contributes 45% to

corsetry and has forecasted a decrease by 13.4% at end of summer 2014.

2. UNDERGARMENTS

The focus area within undergarments is shapewear as this product contributes 66% to

undergarments and has forecasted a decrease by 3% at end of summer 2014.

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

R 01 S CORSETRYPD BRAS

R 02 S CORSETRYUNPD BRAS

R 03 S SPECIALITYBRAS

R 07 S CORSETRYBOTTOMS

CORSETRY

% Cont. to intimate Wear % Sales Growth to 2013

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

R 03 S VESTS SPENCER R 84 SHELLEY SLIPS R 87 SHELLEY SHAPEWEAR

UNDERGARMENTS

% Cont. to Intimate wear % Sales Growth to 2013

3. PANTIES

The focus area within panties are the panty packs as this product contributes 65% to

panty packs and has forecasted a decrease of 9.2% at end of summer 2014. Panty Packs

feature across bikinis, hi cuts, full briefs, thongs and boyleg’s.

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

R 01 SHELLEYBIKINIS

R 03 SHELLEY HI-CUTS

R 04 SHELLEYFULL BRIEFS

R 05 SHELLEYTHONGS

R 06 SHELLEYBOYLEGS

PANTIES

% Cont. to Intimate Wear % Sales Growth to 2013

E) Type of strategy for each focus area:

Corsetry: Padded bras

The strategy for corsetry is do increase the sales of the padded bras across the retail stores,

this can be done by ensuring the following:

Clearly marked signage and packaging of product

Merchandising on the floor in accordance to destination category

Destination category for padded bras will be called Shelley Essentials

Key silhouettes in basic ranges will be placed up on back wall for display

Easy access and feel of product to enhance the customer experience

Maintaining stock levels

Undergarments: Shapewear

The strategy for undergarments is do increase the sales of the shapewear across the retail

stores, this can be done by ensuring the following:

Clearly marked signage and packaging of product

Merchandising on the floor in accordance to destination category

Destination category for shapewear will be called shapewear world

Merchandise two silhouette per fixture, this is clearly defined silhouettes to ease the

customer shopping experience

Maintaining stock levels by working closely with suppliers to ensure that lines are

constantly replenished

Panties: Panty Packs

The strategy for panties is do increase the sales of the panty packs across the retail stores,

this can be done by ensuring the following:

Clearly marked signage and packaging of product

Using existing fixtures but will merchandise one silhouette per fixture

Promotional activity around the panty packs to increase sales

F) Leadership buy in:

Challenges/Concerns Test against the business case

1. Budget: Leadership will query the cost

for new signage and packaging.

Will advise managers that cost will be deducted from

the portfolio cost and be implemented only in two

key stores to identify success or failure ratios.

2. Infrastructure: Floor space

Floor space is allocated based on

turnover of product

With the destination categories you would need

more floor space allocated to the product. This can

be achieved from a trade off with another product.

Chat to operational managers of the store to

increase space as a trade off with another product

for a 3 month period. If success the store gains

increase sales of product. If the result is failed the

product that you traded off with will get a bigger

space for the following 3 months.

3. Staff resistance: Retail store staff not

trained and equipped for change

Buyer to develop product protocol and induction

manual for retail staff. Training will be done by the

buyers responsible for the change management

process.

Question 2

Weak Threads:

The following weak threads for the “Ease of Shop” strategy has been identified using the holistic

analysis – a systems perspective derived from the RMDP notes Understanding the pressure of

change by Dr Chris Lombard. The weak threads are common for all three departments.

Dimension Sub-Dimension Strong /

Weak

Impact/Effect of Weak Threads

Operations

Infrastructure W Fixtures are not compatible in

current set up resulting in stock not

being sold to desired target

audience.

Control of stock W Lines not adequately replenished

resulting in no sizes on the floor for

customer to purchase. Furthermore

results in overstock and loss of sales.

Facilities W Floor space for a product line is

dependent on turnover of the

product. Currently the portfolio is

down on targets hence a reduced

space allocated.

Marketing

Understanding customer

needs

W Currently poor merchandising and

customer service resulting in a bad

customer experience in store.

Demographics of customer not

properly understood.

Customer service W Lack of skills and product knowledge

of retail store staff results in the

customer not adequately being

informed about the product.

Product Differentiation W All merchandise is bundled in one

place. No distinction between

product types and the silhouettes in

the ranges.

Customers

Relationships W The profiles of customers are widely

diverse. They all have different

requirements where different sizes

and need special assistance as our

products are specialised. However

the in store experience does not

take cognisance of the diversity of

customer’s needs.

Perception of service /

product

W The current perception is that the

Shelley range does not cater for a

youthful demographic, does not

have a wide variety of sizes and

often deemed an inferior brand.

Human Resources

Employee Development W Staff are under skilled and have poor

product knowledge resulting in

customers being lost to competitors.

Employee turn over W Staff retrenchments have also

impacted on the service culture as

staff are demotivated and this is

being translated to the type of

service the customer is

experiencing.

Areas

Merchandising W All merchandise is bundled in one

place. No distinction between

product types and the silhouettes in

the ranges.

Store layouts W Fixtures are not compatible in

current set up resulting in stock not

being sold to desired target

audience.

Floor space for a product line is

dependent on turnover of the

product. Currently the portfolio is

down on targets hence a reduced

space allocated.

Question 3

a. Stakeholder Analysis

Stakeholder identification

Internal What do we

want from

them?

What do they want from

us?

Potential to

influence ( high

/ low)

Importance (

high / low)

Store assistants /

specialist

To make every

customer feel

important. They

need to have

product

knowledge.

Support from head office.

They need buyers to send

them the correct product in

the correct quantities. They

need to be trained on the

product and how to layout

the merchandise.

HIGH

HIGH

Suppliers

We need on time

deliveries of good

quality product

Orders placed on time by the

buyer. Sales feedback.

Accurate projections by the

planner and stock forecast HIGH HIGH

Marketing

Highly visible and

attractive

promotions that

catch the

attention of the

customers. Good

looking signage

and packaging

Clear and organised briefs.

Product direction and

knowledge. You cannot

innovate and develop

campaigns around a product

if you do not understand the

product.

HIGH HIGH

External What do we

want from

them?

What do they want from

us?

Potential to

influence ( high

/ low)

Importance (

high / low)

Customers

Loyalty and

support. Increase

in purchases.

They would like to be

understood and receive

superior service. Staff with

good product knowledge

who understand the client

demands.

HIGH HIGH

b. Risk Analysis

Risk Description Internal

/

External

Probability Impact Risk

Factor

Action Plan

Facilities (Floor space) INT 5 9 45

Chat to operational managers of the store

to increase space as a trade off with

another product for a 3 month period. If

success the store gains increase sales of

product. If the result is failed the product

that you traded off with will get a bigger

space for the following 3 months.

Infrastructure

(Fixtures) INT 9 9 81

Changing the layout of fixtures to

enhance the space, look and feel. In this

manner the product line will be enhanced

and provide a better shopping experience

for the customer.

Merchandising INT 7 9 63

Clearly marked signage and packaging of

product

Merchandising on the floor in accordance

to destination category

Maintaining stock levels by working

closely with suppliers to ensure that lines

are constantly replenished

Staff resistance INT 7 8 56

Buyer to develop product protocol and

induction manual for retail staff. Training

will be done by the buyers responsible for

the change management process.

Staff turnover INT 8 8 64

Employee acknowledgement efforts to

increase motivation levels - example

employee of the month initiative to be

started with gift vouchers from the store.

Customer EXT 5 9 45

Launching a customer campaign to clearly

demarcate the destination categories.

This initiative will be driven with the

marketing division

Probability: 1 -3 (Low) 4 – 6 (Medium) 7 – 10 (High)

Impact: 1 -3 (Low) 4 – 6 (Medium) 7 – 10 (High)

Question 4

There are two important factors that I need to convert with regards to the “Ease of Shop”

strategy into strong threads, they are are operations and area.

1. OPERATIONS

Control of stock

Problem:

Lines not adequately replenished resulting in the following:

Insufficient sizes on the floor

Insufficient stock on the floor

Products not sold (overstock)

Loss of sales

The staff are under skilled and do not have the adequate product

knowledge which results in them not knowing the stock codes and

allocating incorrect codes to products. This in turn results in stock

being misplaced or kept in the store room which then impacts on

sale of product.

Solution:

Buyer to develop product protocol and induction manual for retail

staff which effectively details all products and how these products

need to be merchandised. Training will be done by the buyers

responsible for the change management process.

Action Plan:

Buyer to identify the full product range sent to each store

grid with the product codes.

Buyer to map codes with images to have a visual

representation.

Buyer to document the full process in a manual

Buyer to approach Management team and present manual

and process flow.

Management to sign off process and advise HR that this is a

new requirement to be added to store specialist training

programme when starting with the business.

Buyer to initiate the change management process with the

two stores identified for the pilot process

Buyer to evaluate the change and see if it has a positive

impact comparative to other stores, positive impact as

follows:

Customer can find their sizes on the shop floor

Customer can find all the different products on offer

HR to roll out process with rest of stores

Problem:

Staff retrenchments have impacted on employee performance. Staff

have reduced in number and the existing staff are demotivated and

working at a slower place impacting on stock control.

Solution :

Employee acknowledgement efforts to increase motivation levels -

example employee of the month initiative to be started with gift

vouchers from the store

Action Plan:

Engage with HR to Identify the store specialist roles and

responsibilities

Allocate importance and targets against the duties

Allocate rewards and recognition on performance

Present the process to management and explain the cost

benefit ratio.

Management to approve

Buyer to initiate the change management process with the

two stores identified for the pilot process – this is the

employee of the month initiative with gift vouchers from the

store.

Buyer to evaluate the change and see if it has a positive

impact comparative to other stores, positive impact as

follows:

Committed staff working to ensure correct stock control

Motivated staff that ensure high commitment to customer

service

HR to roll out process with rest of stores

Problem:

Insufficient stock holding by suppliers results in short stock in stores.

Solution:

Maintaining stock levels by working closely with suppliers to ensure

that lines are constantly replenished

Action Plan:

Planner to send suppliers accurate weekly forecasts

Penalties and loss charged to supplies if items out of stock

2. AREA Merchandising

& Store Layouts

Problem:

All merchandise is bundled in one place. No distinction between

product types and the silhouettes in the ranges.

Solution:

Clearly marked signage and packaging of product

Merchandising on the floor in accordance to destination category

Action Plan:

1. Corsetry: Padded bras

The strategy for corsetry is to increase the sales of the padded bras

across the retail stores, this can be done by ensuring the following:

Clearly marked signage and packaging of product

Merchandising on the floor in accordance to destination

category

Destination category for padded bras will be called Shelley

Essentials

Key silhouettes in basic ranges will be placed up on back wall

for display

Easy access and feel of product to enhance the customer

experience

Maintaining stock levels

2. Undergarments: Shapewear

The strategy for undergarments is do increase the sales of the

shapewear across the retail stores, this can be done by ensuring the

following:

Clearly marked signage and packaging of product

Merchandising on the floor in accordance to destination

category

Destination category for shapewear will be called shapewear

world

Merchandise two silhouette per fixture, this is clearly

defined silhouettes to ease the customer shopping

experience

Maintaining stock levels by working closely with suppliers to

ensure that lines are constantly replenished

3. Panties: Panty Packs

The strategy for panties is do increase the sales of the panty packs

across the retail stores, this can be done by ensuring the following:

Clearly marked signage and packaging of product

Using existing fixtures but will merchandise one silhouette

per fixture

Promotional activity around the panty packs to increase

sales

Problem:

Floor space not adequate for product line. Floor space for a product

line is dependent on turnover of the product. Currently the portfolio

is down on targets hence a reduced space allocated.

Solution:

Product line that has sufficient place and visibility.

Action Plan:

Engage with operational manager to identify if more store

space can be allocated.

Advise the operational manager of the store to increase

space as a trade off with another product for a 3 month

period.

If success the store gains increase sales of product.

If the result is failed the product that you traded off with will

get a bigger space for the following 3 months.

Critical Success Factors for the Ease of Shop Strategy

Management Support

Managers need to be inspired by this new plan of action. They need to share the same

vision for this strategic change in order for an effective change management process to take

place. Once we achieved success in the pilot stores we will gain respect from the other

stores in the region and division.

Staff Support

All the staff in the store needs to be addressed and made aware of this new change in

strategy of the store. Once they see the value in it for them, it will get them more involved

and a sense of ownership is then established with them. This will not only benefit the

company, but their pockets as well.

HR Support

HR needs to assist in effectively driving the change. They need to develop employees and

motivate them to reach desired targets. HR buying is very important and they need to fully

understand their role to drive change.

Leadership

All of the great leaders of the past did not get where they are because of how smart they

are. They got where they wanted to because of their ability to influence according to me.

This is one the most important critical factor of success. Influence according to

www.businessdictionary.com can be defined as follows;

The activity of leading a group of people or an organization or the ability to do this.

Leadership involves

(1) establishing a clear vision,

(2) sharing that vision with others so that they will follow willingly,

(3) providing the information, knowledge and methods to realize that vision, and

(4) coordinating and balancing the conflicting interests of all members and stakeholders.

A leader steps up in times of crisis, and is able to think and act creatively in difficult

situations. Unlike management, leadership cannot be taught, although it may be learned

and enhanced through coaching or mentoring

It is with influence that this strategy will succeed in the pilot stores. Using all the tools and

knowledge in this assignment I can present a case to the management team to influence the

change. The analysis of the store and the current margins indicates the validity and research

done to strengthen my recommendations.

The change management framework that I have identified that could effectively assist in

driving the change is Kurt Lewin’s three phase approach of Unfreezing, moving and

refreezing as depicted in the diagram below:

This model assumes that change will encounter resistance. Therefore, executing change without prior preparation is likely to lead to failure. Instead, organizations should start with unfreezing, or making sure that organizational members are ready for and receptive to change. This is followed by change, or executing the planned changes. Finally, refreezing involves ensuring that change becomes permanent and the new habits, rules, or procedures become the norm (www.web-book.com)

Stage 1: Unfreezing

It involves getting to a point of understanding that change is necessary, and getting ready to move away from our current comfort zone. It is about preparing ourselves, or others, before the change and motivating the change (and ideally creating a situation in which we want the change).

Unfreezing and getting motivated for the change is all about weighing up the 'pro's' and 'con's' and deciding if the 'pro's' outnumber the 'con's' before you take any action. (www.change-management-coach.com//kurtlewin)

Stage 2: Change - or Transition

Kurt Lewin was aware that change is not an event, but rather a process. He called that process a transition. Transition is the inner movement or journey we make in reaction to a change. This second stage occurs as we make the changes that are needed.

People are 'unfrozen' and moving towards a new way of being.

That said this stage is often the hardest as people are unsure or even fearful. This is not an easy time as people are learning about the changes and need to be given time to understand and work with them. Support is really important here and can be in the form of training, coaching, and expecting mistakes as part of the process. (www.change-management-coach.com//kurtlewin)

Stage 3: Freezing (or Refreezing)

Kurt Lewin refers to this stage as freezing although a lot of people refer to it as 'refreezing' and is about establishing stability once the changes have been made. The changes are accepted and become the new norm. People form new relationships and become comfortable with their routines. This can take time.

Lewin's concern is about reinforcing the change and ensuring that the desired change is accepted and maintained into the future. Without this people tend to go back to doing what they are used to doing. This is probably what Kurt Lewin meant by freezing - supporting the desired change to make sure it continues and is not lost. (www.change-management-coach.com//kurtlewin)

More modern models of change, such as the model, are more explicit about this step and include Reinforcement as one of their phases. I've also read this final step of freezing referred to as the lock-in effect. Establishing stability only happens when the new changes are locked-in.

In what ways do I think this model might be useful for Edcon?

Above is the explanation of the model and below is an illustration of how the model will be

applied to the ease of shop change being implemented in the Shelley range of intimate wear

at Edcon.

I would “unfreeze” management and leadership position by demonstrating the need for

change and illustrating the benefits of the change in the short, medium and long term.

I would “move” their behaviour by running the change as a pilot project at two of our stores

and affording them the opportunity to engage with all the stakeholders in order to fully

appreciate and understand the strengths of the target state.

I will refreeze their position by asking all stakeholders to write a report that details their

reaction to the change and how this has had an immediate and positive influence on the

organisation. The management and leadership of the organisation are likely to commit and

“refreeze” their position in relation to the change once they have seen a clear and obvious

benefit to the key stakeholders involved in the change.

References

Change capacity PowerPoint notes

Websites:

http://www.bain.com/consulting-services/strategy/corporate-strategy.aspx

www.businessdictionary.com

www.change-management-coach.com//kurtlewin)

http://www.edcon.co.za/about-strategy.php

www.web-books.com