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Management of change refers to an approach that encourages employees, team members, and institutional managers to changeover from the current systems that seem ineffective to the best practices that would facilitate the achievement of the desired results in the future (Graetz, Rimmer, Smith & Lawrence 2011, p. 89).
This entails the introduction of several changes to the management aspect in order to improve the performance of the organization in the highly competitive market. In the case provided, Clemenger BBDO Company went through a number of managerial changes owing to the appointment of Rob Morgan as the group’s chairperson.
The organization was the market leader in providing advertising services in the country, but the change of management almost forced the company out of the market since the loyal and long-established clients opted to seek better services from elsewhere. Several customers and clients terminated their contracts with the organization, with some withdrawing their financial support worth millions of dollars.
Since the organization was nearly collapsing, the rate of employee turnover was very high, which affected the performance of the company further. The remaining staff could not realize the desired goals, as the morale was low while some feared for their jobs. Various stakeholders were affected since the underperformance of the organization had serious repercussions to the advertising industry in the country.
The chairperson came to the realization that the organization needed an energetic, talented, motivated, creative, and highly respected leader who would restore the financial glory of the company. Based on this, Peter Biggs was brought in to bring about reforms and ensure that the organization regains its lost glory as the market leader in the advertising industry.
A close analysis of the case shows that the leadership of the organization determines its success in the ever-competitive market. Change management is always considered a structured approach in any organization, which ensures that new ways of doing things are smooth and successful in terms of implementation and goal achievement.
The main challenge facing organizations in the modern market is change management. Organizations are forced to restructure their operations in the globalized world characterized by invariable novelty of expertise.
This article looks at the several aspects of change as far as realizing organizational goals and objectives is concerned. The case of Clemenger BBDO reveals some of the challenges that organizations face in trying to realize their ambitions.
Agents of Change
Change agents play a critical role in the establishment of reforms in the organization, as they act as catalysts. In this regard, they should have certain distinguishing qualities that would inspire other people to adopt their ideas. In the case provided, Peter Biggs had extra-ordinary qualities that facilitated the process of change.
For instance, he was a leader with a clear vision that enabled him to communicate effectively with other organizational members. On the other hand, it is noted that change is not a radical process and leaders are therefore expected to be patient and persistent in what they say and do. Peter Biggs knew that the organization would attain its lost glory through the development of mutual relations, respect, and hard work.
In his view, the organization had become lazy and it was difficult for members to execute their duties freely (Nag, Hambrick & Chen 2007, p. 935).
From the case provided, it is clear that an agent of change ought to be knowledgeable and should try as much as possible to lead by example in order to inspire other members. An agent of change ought to have character and credibility in case he or she intends to bring about new ways of doing things.
Change agents are classified into three major categories, including external agents, internal agents, and external-internal agents. External agents refer to the consultants that organizations often employ their services whenever it is felt that change is needed. External agents are employed on temporary basis and their main aim is simply to introduce and manage change in the organization.
On the other hand, internal agents are employees or clients of the organization with full knowledge of the operations of the organization. Internal agents have adequate knowledge regarding the problems that face the organization hence they are often well placed to institute an efficient change process.
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One characteristic of internal change agents is that they are always drawn from a different department or division within the organization. A good example of internal agent is Peter Biggs who was drawn from oversees subsidiary of the company in New Zealand.
Change Management Perspective
A number of views and theories exist as regards to the best model of change management, but the leadership-change management model best describes the perspective employed in the Clemenger BBDO Company. The model evaluates the relationship between leadership in the organization and the process of management.
Under the perspective, it is determined that understanding the relationship between the two concepts plays a role in the successful execution of the change efforts (Anderson & Anderson 2001, p. 37). The perspective underscores the fact that both internal and external environments determine strategic organizational reformation.
In this regard, the organization has a responsibility of diagnosing these forces through conducting a PEST analysis, as well as other studies, to determine all factors that interfere with the corporate performance. The perspective suggests further that the leader should understand both the internal and external environment since they both have an overwhelming effect on his or her performance.
Therefore, the leader should possess strong managerial skills and qualities in order to be a good role model. Any leader is expected to accept the need for change in the organization hence individual change is mandatory if successful implementation of new policies and principles is to be achieved.
In the case of Clemenger BBDO, Peter Biggs, the new leader of the organization, accepted the reality that change was necessary. He passed the denial phase and understood the importance of change in the organization, as the company was performing dismally.
After accepting the change process, the leader is expected to communicate the new vision of the organization clearly, as it is clear that any change agent should have a clear vision. Communication should be through several channels in order to reach many people meaning that creation of a communication plan is a necessity that would encourage stakeholder participation.
The model suggests further that the agent should always strive to do away with the negative elements of organizational culture that might impede effective implementation of the change process. The role of the management at this stage is to ensure the implementation of the communication plan.
Peter Biggs realized that effective communication of the new vision was critical as far as improvement of the organizational performance was concerned (Mulcaster 2009, p. 68). The model confirms that leadership and change are closely related concepts, which means that the leader is charged with the task of transferring and establishing change in the organization.
Dunphy and Stace’s Five Dilemmas of Change
The two identified some of the challenges that managers often face when trying to implement change management. One of the dilemmas is adaptive versus rational strategy development meaning that execution of change policies is not an easy undertaking.
While the manager expects employees to adapt the new policies, he is also faced with the dilemma of ensuring that new ways of doings are reasonable and practical (Bradford & Burke 2005, p. 112). The second challenge pertains to cultural change versus structural change. In fact, change people’s culture is almost impossible, but the manager has to find ways of achieving success on this issue.
To realize structural change, the culture of people should be adjusted. Third dilemma is related to continuous improvement versus radical transformation. This implies that the leader has to ensure that the introduced changes should be continuous while at the same time they should be thorough.
The fourth challenge facing any leader, including Peter Biggs, is empowerment versus leadership and command. Any leader should be a role model implying that he or she has to empower employees through offering the best managerial practices.
However, the leader should offer leadership through command. Finally, leaders are often faced with the challenge of economic development, which must be balanced off with social goals. The owners of the organization would demand adequate profits, but the leader has to ensure that social relationships are maintained through.
In the case provided, Peter Biggs had to interact with employees in order to understand their major problems that might affect the performance of the organization. However, he was a hands-on leader meaning that he always demanded instant results from employees, something that is challenging and irrational (Beer, Eisenstat & Spector 1990, p. 160).
In the case provided, there is evidence that the management had strategic intent and thinking concerning the introduction of change. Strategic thinking entails a thought process that aims at achieving certain desired results. Peter Biggs generated and applied several unique managerial insights and opportunities that gave the organization a competitive advantage in the market.
The leader employed collaborative strategic thinking, which facilitated the generation of the proactive and creative ideas in the organization. Strategic intent is a term used in management to refer to means through which an organization would achieve its desired goals and objectives.
In the case provided, the Peter Biggs came up with systematic approach that re-energized several programs, as well as the organization. For instance, he introduced the idea of dialogue and creativity, which are the two important aspects of change (Wells 2011, p. 17).
From the case provided, it is evident that organizational culture plays a critical role in ensuring that change management is successful in any organization. Peter Briggs started by changing the views of employees regarding the management. He ensured that the management was responsive to the wishes of the majority stakeholders in the organization.
From the case, it is true that financial underperformance and employee turnover are the two major causes of change. Again, the case proves that change should be gradual and it must start with the leader.
Based on this, change can be utilized effectively to bring about success since Clemenger BBDO regained its lost glory in the advertising industry in the country. It is finally concluded that the case presents a model that explains the change process.
List of References
Anderson, D & Anderson, LA 2001, Beyond Change Management: Advanced Strategies for Today’s Transformational Leaders, Jossey-Bass, San Francisco.
Beer, M, Eisenstat, R & Spector, B 1990, “Why Change Programs Don/t Produce Change”, Harvard Business Review, Vol. 1, no. 12, pp 158-166.
Bradford, D & Burke, W 2005, Reinventing organizational development: New approaches to change in organizations, Pfeiffer, San Francisco.
Graetz, F, Rimmer, M, Smith, A & Lawrence, A 2011, Managing organisational change, John Wiley & Sons, Milton.
Mulcaster, WR 2009, “Three Strategic Frameworks,” Business Strategy Series, Vol. 10, no 1, pp 68 – 75.
Nag, R, Hambrick, DC & Chen, MJ 2007, “What is strategic management, really? Inductive derivation of a consensus definition of the field,” Strategic Management Journal, Vol. 28, no. 9, pp 935–955
Wells, G 2011, Sustainability in Australian business fundamental principles and practice, John Wiley & Sons, Milton.