The first change that Norman implemented was aimed at modifying the managerial structure. This is the introduction of a structure through which the heads of departments are directly answerable to the top manager. This has lead to the downsizing of the number of employees and has eliminated work duplication. From there, a mid-long term plan that covers three years was developed. The first year included redefining the brand and hiring of a new team. Second year included changing the trading style, expansion of business and innovation of new trading ways. The third year plan was of price reductions which positioned Asda as a store which had quality products. It included the finalization of the expansion program (Weber, 1998).
A new strategy has been developed which includes the display of food in the stores for the customer’s eyes strategically. Commodity prices have been reduced leading to customer attraction. This has brought an upswing of sales, raising hopes that there would be even more price reductions in the near future. The use of Information Technology, design of a different store layout, and innovation are amongst the changes envisioned for the business (Weber, 1998). The next change dimension is through the development a different working system for Asda. In this, the manager and the staff at the stores get to be aware of the store goals and their roles in achieving the same. Great emphasis is directed towards team cohesiveness and setting up of personal goals that are aimed at improving the staff quality. The staff will be trained to develop good relations with the customers. This system is to be known as the Asda way of working.
Company values that has been developed emphasize on respect amongst the staff members, they place more responsibilities on everyone, caution against resource wastage and highlight the need for everyone to better the business. Finally, the introduction of notice boards greatly improved on the store communication. They contain information that help the staff be up to date with the store’s past and future goals. Other communication methods like face to face have been slotted in on the new changes that are to be adopted (Weber, 1998).
The program addresses issues regarding the scope and staff awareness of the need for change. The style of change management and the roles of everyone in the changed environment are highly emphasized. The program fits perfectly well with other literature models in regards to the shared values (Hailey & Balogun, 2002).
Leadership is required to tap into the staff diversity of skills and talents. Communication development is a key role that the leadership plays in change. By ensuring face to face interaction as a communication strategy and use of notice boards, the leader develops effective communication. The leaders are responsible for the supervision of the implementation of Asda’s best way of working. This means that they have to treat the staff with respect as well as provide them with regular updates. Leaders also have to propose staff training mechanisms and lead by demanding staff performance. Leaders are in charge of the long term goals implementation (Kaufman, 2003).
Change program is effective in turning around a business entity’s profit status. It has brough about a leaner system of management and staff thereby reducing on the amount of money that goes to recurrent expense. Change has developed a sense of security for the business. This is important to the financial institutions as loans are easier to secure. The staff members feel like they are part of the store due to the regular communication (Hailey & Balogun, 2002). Business plans for the future and sets up the entity for any upcoming competition and improvement of it’s market share. What remains to be done is the introduction of a system that collects data in every store. The data will be important in redefining future goals as well as managing resource wastage. Finally, there is need to develop a system that preserves the gains that will be achieved by change (Weber, 1998).
References
- Hailey, VH & Balogun, J 2002, Devising Context Sensitive Approaches To Change: The Example of Glaxo Wellcome, Journal of Long Range Planning, vol. 35, pp. 153–178.
- Kaufman, RA 2003, Strategic planning for success: aligning people, performance, and payoffs, San Francisco, Jossey-Bass/Pfeiffer.
- Weber, J 1998, 9-498-007 1998 Asda (B):course notes, HAVARD Business School,Boston.