BSBINN601 Lead and Manage Organizational Change Assignment Help

Introduction

This assignment relates to the simulation of Fit Life which is a chain of health and fitness clubs in Australia by determining the strategic change requirements and opportunities for implementing the change management strategies.

Task 1: Identify Change Issues

1.1 Identify strategic change needs through an analysis of organisational objectives.

The goals and objectives of Fit Life focus to develop strategy for premium pricing and differentiation of its main products and to introduce innovation in fitness and lifestyle grow future Employee Relation and enter new markets through developing retail business and building physic-gym culture. In order to achieve these goals and other financial and marketing objectives the strategic change needs required by the company area s follows:

Develop strategic plan of business in line with the marketing plan of company.
Training and development of executive management of the company in order to gain expertise in change management.
Improvement in compliance processes by framing more and better policies and procedures related to HR, WHS quality etc.
Limit the incentive scheme and emphasize on service quality along with sales.
Develop a direct distribution channel for international markets of company.

1.2 Review existing policies and practices against strategic objectives

Current Policy & Practice	Contribution	Limitation
Children and elderly exercise and diet programs	Competitive advantage	Only for children and elder people.
Youth swimming classes and recreational activities	A variety of activities available.	No specialization
Availability of many classes and trainers during peak hours	Availability during peak hours	Lack of qualified and experienced trainers
Customized fitness and health programs for specific needs	Consideration and satisfaction of specific needs of each customer	Requires a variety of skills and expertise for tailoring programs according to specific needs

Required policy and practice	Rationale
Introduction of health bar in the highest CGU within next six months	To compete with other health and fitness organizations who already provide on-site extras such as health bar to clients and also achieve the objective of ROI of 20%, gross margin 20% and increase in membership count by 10%
Open the physiotherapy facility at health clubs with at least two physiotherapists within next nine months	To build the physic-gym culture and enrich brand value.
Register as a Registered Training Organization	To provide internal growth and training of employees and grant them nationally recognised qualification.
Introducing innovative health and fitness programs during the year	To accomplish the goal of introducing innovative fitness and lifestyle and enrich brand value
Launching Iron Man loyalty Card Program within next three months	Achieve 5% improvement in customer retention rates every year for five years.

(DAS, 2013)

1.3 Monitor the organizational behaviour and external environment on change strategies.

Organisational behaviours	Impact
Resistance to change by long term staff members	The innovative health and fitness programs will not be implemented effectively.
Lack of expertise of executive management to implement changes	The change strategies will not be successfully implemented and the objectives of Change management plan will not be achieved.

External Factors	Impact
Political	The factors such as VET free help loan scheme, smart and skilled government subsidized training, updates in national standards and training packages change regularly which may affect the compliance processes.
Social	The popularity of fitness shows and Fitness Industry Survey helps in increasing demand of fitness and health clubs and thus increasing growth of fitness clubs of company.
Economical	The growth of fitness industry will result in achieving the financial and marketing objectives of company. Although he decrease in household income may result in shifting of customers to other cheaper alternatives available.
Technological	The increasing use of technologically advanced equipments and products will be a competitive advantage for company since the company is already technologically advanced and developed.

1.4 Identify major operational change requirements

Operational change requirements	Rationale
Appointment of qualified and experienced trainers and staff members and training and development of existing executives	To achieve the objective of better service quality and customer retention for long term and enrichment of brand value
Inclusion of innovation and creativity in operational policies and procedures through their redesigning	To increase brand value and develop the strategic business plan in line with the Marketing Management and objectives.

(Torppa, 2011)

1.5 Review and prioritise change requirements in consultation with the Business Change Manager.

The change requirements reviewed and prioritised in consultation with Business Change Manager are as follows:

Appointment of highly qualified and experienced training.
Training and development of executive management and long term staff members.
Improvement in compliance processes.
Establishing direct distribution channels for international markets through entering into contracts with international agents.

Task 2: Develop change management strategy

2.1 Undertake cost-benefit analysis

Category (Cost)	Cost
Appointment of qualified trainers	Salary of trainers at clubs
Training and development of existing staff	Salary of training personnel
Iron man loyalty card scheme	10% discount on eligible purchases
Contracts with international agents for direct distribution channel.	Agents’ commission
Developing online portals	Website development and service charges
Registration as RTO	RTO licence and compliance fees
Increase in operating hours of clubs	Overtime wages

Category (Benefit)	Cost
Appointment of qualified trainers	Increase in membership count
Training and development of existing staff	Increase in profit margin
Iron man loyalty card scheme	Increase in membership count
Contracts with International Environment agents for direct distribution channel.	Increase in market and customers
Developing online portals	Reduction in costs
Registration as RTO	Customer retention for long term
Increase in operating hours of clubs	Increase in ROI

Payback estimation:

The increase in cost of implementing the change strategies will also result in benefits by increase in ROI, increase in profit margin, increase in membership count by 10%, achieve ratio of current assets to current liabilities of 2:1, ratio of 1:1 of owner’s equity to borrowed funds, increase of 5% in customer retention rates and brand enrichment. Thus the initial investment as the cost of implementing changes will be recovered within one or two years by the company.

2.2 Undertake risk analysis to address potential barriers to change

Barrier	Likelihood	Impact	Consequence	Risk Level	Risk Ranking	Risk Mitigation
Substitute fitness centres	½	Loss of customers	Reduction in membership count	High	3	Gain competitive advantage
7/24 open fitness clubs	¾	Reduction in customers	Decrease in profit margin	High	1	Increase hours of operation
Seasonal customers	¼	Reluctant to pay prices when outdoor sports are available in summer	Decrease in profit	Moderate	4	Launching customised seasonal packages
Fitness gadgets and apps and Free health resources on internet	½	Non-availability of services	Decrease in customers	Moderate	3	Establishing online presence.
High pricing structure	¼	Non-availability of services	Decrease in customers	Low	5	Discount schemes and incentives on products.
Lack of manager expertise	3/4	Failure to achieve objectives	Loss of reputation and brand image	High	2	Training and development of mangers

(Bradley, 2016)

2.3 Schedule the Change Management Project

The change management project along with the details of activities and duration of those activities for successfully implementing the change management initiatives can be represented by the following table and Gantt chart:

Activity	Description	Duration (in days)
1	Training and development of executive management and long term staff members and Appointment of highly qualified and experienced trainers	15
2	Entering into contracts with international agents for establishing direct distribution channels	10
3	Developing online portals and internet presence	14
4	Registration as RTO	6
5	Framing policies and procedures for strategic business plans	8
6	Launching Iron man loyalty card program	1
7	Adopting methods of cost reduction and cost control	7
8	Monitoring and evaluation	10

Gantt chart

BSBINN601 Lead and Manage Organizational Change Assignment Help, Assignment Help

2.4 Assign resources and matrix to the Change Management Project

Parent task	Sub task	Labour	Capital	Cost (AUD)	Time	Outcome
Training	Appointment of training personnel	Trainers	NA	Salary	15	Better service quality
Agents contract	Establishing terms of contracts	Agents	NA	Commission	10	Access to international market
Online portals	Developing websites and portals	Web developer	Websites	Service charges	14	Internet presence
RTO Registration	Compliance procedures	Legal personnel	Registration Certificate	Licence fees	6	Increase in brand value
Framing policies	Preparation of plan	Managers	Policies and procedures	NA	8	Development of strategic business plan
Cost reduction	Implementing methods	Employees and executives	NA	NA	7	Increase in profits

(Burr, 2010)

2.5 Develop draft communication plan including reporting protocols

Reporting Protocols	Management	Customer	Government	Employees
Outcomes	Achievement of organizational objectives	Better quality services through satisfaction of needs and fitness goals	Compliance of laws and regulations	Improvement in performance and increase in knowledge and skills
Key message	The project will result in increase in performance of company by achieving the goals and objectives through customer satisfaction.	The services are provided to improve your health through appropriate and accurate means using best training health and fitness practices.	The project has been undertaken in adherence of applicable regulatory framework and compliance of applicable laws related to health and safety	The project aims at increasing the overall performance through development of skills and knowledge of employees through training and development programs.
Channel	Project Plan	Advertisement	Compliance Report	Employee notices
When/Frequency	Monthly	Once	At the start of project	At the start of project

2.6 The Change Management Cycle

The change management cycle refers to as the process of initiating the change, implementing the change and monitoring and evaluating the performance to recognise the impact of change. Thus change management is a continuous process. The Change Management Cycle is represented as follows:

BSBINN601 Lead and Manage Organizational Change Assignment Help, Assignment Help

(Brown, 2015)

2.7 Obtain approval from the Business Change Manager

The modifications need to be made in the Change Management plan in order to ensure successful implementation of changes in the policies and procedures of the organization. The cost involved for modification and the delay in time duration of the project likely to be caused will also is included in the report. This report will be used to obtain approval from Business Change Manager.

Task 3: Deliver the communication Plan

Meeting with Management

The meeting will include presentation of project plan to the management of Board of Directors of Fit Life formally through business presentation and receiving their suggestions and recommendations for the project plan in order to obtain approval from them.

Meeting with Employees

The meeting with the employees including the trainers and other staff will be done in order to define the roles and responsibilities of each of them for implementing the changes. The Activities to be performed by them will be defined along with determination of expectations for achieving the organizational objectives.

Task 4: Monitor and adjust change management activities

Evaluation Report

Performance gaps

Parent task	Subtask	Labour	Capital	Cost (AUD)	Time	Actual Outcome	New Outcome
Training	Appointment of training personnel	Trainers	NA	Salary	15	Better service quality	Increase in expertise
Agents contract	Establishing terms of contracts	Agents	NA	Commission	10	Access to international market	Increase in popularity and brand value
Online portals	Developing websites and portals	Web developer	Websites	Service charges	14	Internet presence	Broad market access
RTO Registration	Compliance procedures	Legal personnel	Registration Certificate	Licence fees	6	Increase in brand value	Loyalty of customers
Framing policies	Preparation of plan	Managers	Policies and procedures	NA	8	Development of strategic business plan	Efficiency in processes
Cost reduction	Implementing methods	Employees and executives	NA	NA	7	Increase in profits	Growth of company

Risk management Outcome

Risk	Root causes	Risk Control measures (Actions to be taken)	Monitoring Procedures	Responsible person	Timeline
Financial loss	Decrease in sales	Reduction in excessive costs	Budgeting	Financial manager	Throughout the year
Non-compliance of health laws	Lack of information about regulatory framework	Identifying applicable health and safety laws	Compliance check	Legal and compliance manager	Before and during implementation of plan
Technology failure	Fault in technology	Installing technically advanced equipment	Maintenance and repair on regular basis	Purchase manager	Life of machinery
Delay in schedule	Not meeting the deadlines	Flexibility in schedule	Putting a regular check on deadlines	Project manger	Throughout project implementation

(Garde, 2010)

Conclusion

From the above mentioned Change Management Plan and communication plan developed for FitLife as a Business Change Development Officer it can be concluded that the recommendations determined through the strategic review of company can be incorporated through the change management plan which can be implemented into the organization effectively and will help Fit Life in achieving the objectives.

References

Bradley, G. 2016; 2012;2010;, Benefit Realisation Management: A Practical Guide to Achieving Benefits Through Change, 2nd;2; edn, Gower, Farnham.
Brown, M., Kulik, C.T., Cregan, C. & Metz, I. 2015, "Understanding the Change-Cynicism Cycle: The Role of HR", Human Resource Management, , pp. n/a.
Burr, B.B. 2010, "Public plans ramping up risk management; Central oversight, consultants, hirings among changes", Pensions & Investments, vol. 38, no. 25.
DAS survey project schedule and change management plan 2013, , SyndiGate Media Inc.
Desmond, C. 2016, "Project to plan for significant process change", IEEE Engineering Management Review, vol. 44, no. 2, pp. 15-16.