ASSIGNMENT BRIEF

BTEC Level 7 Diploma in Strategic Management and Leadership

Qualification Unit number and title

Pearson BTEC Level 7 Professional

Qualifications in Strategic Unit 2: Strategic Change Management
Management and Leadership

Student name Assessor name

Ms. Hiranthi Rathnayake

Date issued Completion date Submitted on

08.05.2021

Assignment title Strategic Change Management

Learner declaration

I certify that the work submitted for this assignment is my own and research sources
are fully acknowledged.

Learner signature: Date:

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 Assignment brief

Unit number and title Unit 2: Strategic Change Management

Pearson BTEC Level 7 Professional Qualifications in

Qualification
Strategic Management and Leadership

Start date 08.05.2021

Deadline/hand-in

Assessor Ms. Hiranthi Rathnayake

Assignment title Strategic Change Management

Purpose of this assignment

This assignment would enable the learner to build an understanding and appreciation of
contemporary and seminal theories, concepts and models, learners will examine the role
of leaders and managers as strategic agents for change in a chosen organizational
context taking change types and change choices in to consideration. It is encouraged
that the relevant assessment criteria be addressed in relation to the organisation you
currently working for or an organisation that you have knowledge of.

Scenario

The assignment will be ideally based on the learners’ own workplaces/job role and
require you to undertake in-depth research into an organisation. To address each section
of the assignment, you are to select, ideally the organization you work for, or any
another organisation you may be familiar with. It would be useful for you to choose an
organisation that is operating in an environment that requires it to refocus its change
strategy.

Section “A” (LO A, LO B, LO C and AC A.1, A.2, A.3, A.4, B.1, B.2, B.3, C.1, C.2,
C.3, C.4)

Consider that you have been recruited as a Business Analysis in the chosen organization
and you are tasked to present a written report to the board of directors under the title of
“Role of leadership in strategic organisational change”.

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You are required to identify the concepts of strategic change management, different
perspective on change and formulate a suitable change management strategy for a chosen
organizational scenario. You are required to demonstrate understanding on seminal
theories, concepts and models related to strategic change management with proper
evaluation and identify the role of leaders and managers in change context.

You need to provide a review on different types of organizational changes and their effect
on change choices. You are expected to understand and explain the change from different
organisational culture and organisational learning perspectives. Further, you are required
to conduct a situational analysis to find the effect of internal and external factors on chosen
organizational change which the answer is then need to be elaborated by explaining the
involvement of change leaders in change design.

You need strengthen the answer by applying the knowledge of enabling organizational
change through suitable initiatives and analysing the importance of employee engagement.

Your report should have following areas addressed in the light of the selected
organisation:

▪ Critically examine current and seminal theories, concepts and models related to strategic
change management (A1)
▪ Critically discuss the role of leaders and managers as agents for change(A2)
▪ Analyse types and styles of organisational change (A3)
▪ Critically discuss how change context affects change choices for the selected organisation (A4)
▪ Discuss change from an organisational culture perspective (B1)
▪ Discuss change from a power and politics perspective (B2)
▪ Discuss change from an organisational learning perspective (B3)
▪ Analyse the internal and external environments which influence organisational change (C1)
▪ Discuss, in consultation with others, how change transition is designed by strategic leaders and
managers (C2)
▪ Critically evaluate ways in which strategic management enabled the conditions for
organisational change in a given context (C3)
▪ Evaluate the importance of employee engagement to organisational change (C4)
▪ List of references

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Section B (LO D AC D.1, D.2)

You are now required deliver a presentation by designing a suitable change strategy and
justify the chosen change strategy for the organization you have selected in section “A” in
the form of a “Plan for successful strategic change”. You need to produce a suitable
strategic plan inclusive of following: a change management timeline, a clear roadmap
towards the change, insights on change requirement, a plan for supporting employees, a
mechanism for monitoring and measuring change objectives linking leadership
requirement in the change process. The justification should be supported by setting SMART
change objectives, establishing reasons for detail strategic steps followed, provide
supporting evidence, and define clear responsibilities.

The structure of the of the presentation should ideally include following areas:
▪ An introduction to the chosen organisation
▪ Description on the organisational change context
▪ Examine an approach to enabling successful change (D1)
▪ Produce justified change management strategy for an organisation (D2)
▪ List of references

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 Evidence Evidence
Summary of evidence required by student
checklist presented

Report format- Please provide a referencing list using Harvard

Section referencing system. The recommended word limit is minimum
“A” 4,500 words for each of the sections though you would not be
penalized for exceeding word count.

The submission of section B should be a 15-minutes individual

PowerPoint presentation (05 minutes allocated for questions).
The presentation slides and speaker notes should be submitted
as one copy.
You are required to make effective use of signposting
(numbered PowerPoint headings, bullet points and subsections)
Section
in- text referencing as appropriate.
“B”
Your research should be referenced using the Harvard
referencing system. Please also provide a reference list using the
Harvard referencing system. The learner should provide speaker
notes along with presentation slides with recommended word
count of 750-1500, although you will not be penalized for
exceeding the total word limit.

General guidance about assessment evidence

Primary and/or secondary research evidence findings must be appropriately referenced

within the essay and research evidence attached as annexes.

Students must submit a signed declaration that the work submitted is their own – see
the ‘Learner declaration’ box on page 2 of this assignment.

Note to assessor

Section A could be completed in 1 phase, assessed and returned to the student with
summative feedback and Section B in another phase.

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 Assignment Summary

Assessment Summary - Criteria and Summative Feedback

In this assessment you will have the

Achieved
LO Outcome(s) AC opportunity to present evidence that Section Yes/No Feedback
shows you are able to: (Indicate page
numbers)

Critically examine current and

Understand seminal theories, concepts and
A.1 A
the concept models related to strategic change
of strategic management
change Critically discuss the role of leaders
A A.2 A
management and managers as agents for change
in an Analyse types and styles of
A.3 A
organisationa organisational change
l context Critically discuss how change context
A.4 A
affects change choices
Discuss change from an
B.1 A
Understand organisational culture perspective
different Discuss change from a power and
B B.2 A
perspectives politics perspective
on change Discuss change from an
B.3 A
organisational learning perspective

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 Analyse the internal and external
C.1 environments which influence A
organisational change
Prepare
Discuss, in consultation with others,
change
C.2 how change transition is designed by A
management
strategic leaders and managers
C strategy in a
Critically evaluate ways in which
given
strategic management enabled the
organisational C.3 A
conditions for organisational change
context
in a given context
Evaluate the importance of employee
C.4 A
engagement to organisational change
Be able to Examine an approach to enabling
D.1 B
design a successful change
change
D Produce justified change
management
D.2 management strategy for an B
strategy
organisation

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 Assessment Feedback

Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor signature Date

Student signature Date

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Section “A”

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 Role of leadership in strategic
organisational change (Name of
the Organisation)

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Contents
Section “A” ................................................................................................................................ 9
1. Introduction ...................................................................................................................... 12
2. Critically examine current and seminal theories, concepts and models related to strategic
change management in …………………….. (name of the selected oraganisation) (A1) .............. 13
3. Critically discuss the role of leaders and managers as agents for change in ………………………
(name of the selected oraganisation) (A2) .............................................................................. 17
4. Analyse types and styles of organisational change in ………….(name of the selected
oraganisation) (A3).................................................................................................................. 17
5. Critically discuss how change context affects change choices for the selected organisation
(A4) 20
6. Discuss change from an organisational culture perspective (B1) .................................... 22
7. Discuss change from a power and politics perspective (B2) ............................................ 23
8. Discuss change from an organisational learning perspective (B3)................................... 24
9. Analyse the internal and external environments which influence organisational change in
………………..(name of the selected oraganisation) (C1) ............................................................ 26
10. Discuss, in consultation with others, how change transition is designed by strategic
leaders and managers (C2) ...................................................................................................... 29
11. Critically evaluate ways in which strategic management enabled the conditions for
organisational change in a given context (C3) ......................................................................... 29
12. Evaluate the importance of employee engagement to organisational change (C4) .... 32
Conclusion ................................................................................................................................ 33
List of references...................................................................................................................... 34

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1. Introduction

Zurich is a leading multi-line insurance company in Switzerland found in 1872. Operating in

both local and global markets Zurich is a pioneer in multichannel
insurance solutions with a worldwide network. Offering a diverse
variety of products and services worldwide, Zurich is ranked 112
in the Forbes' Global 2000s list in 2021. Individuals, small
businesses, mid-sized and large firms, as well as global Figure 1: logo of Zurich

corporations, are among Zurich's customers. (Zurich, 2022)

Vision statement: Be the best insurance company to its customers, partners and employees.
Mission statement: Help customers to understand and to protect themselves from risks.

The company generated a profit of US$ 69.87 billion in 2021

and is a market leader in many domains gives solutions in the
Personal Lines (e.g., vehicle, property, and life insurance),
Financial Lines like D&E, E&O, Social Responsibility, and
Warranty and often adapts portfolio requirements of its
customers.

Figure 2: values of Zurich

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2. Critically examine current and seminal theories, concepts and models related to strategic
change management in Zurich (A1)

Critical evaluation of different change situation is vital for a business to understand their
current position, where they aim to be and what the gap is and what need to be done in order
to reach the company’s expected level.
Zurich has been evaluated under different change situation by applying four models relating
to current and seminal theories of change management.

McKinsey’s 7S framework
With the use of McKinsey’s 7S framework the current position and the readiness for a change
of Zurich can be assessed. (Channon and Caldart, 2014)
After being in operation for a while the company became bureaucratic and quite slow moving
compared to the industry. Zurich Life also found it challenging to adjust to changing market
dynamics and customer behaviours.
Description Readiness
Shows the direction of the company over the long term. Zurich
Strategy aimed to be the best through acquiring more clients and while 7/10
lowering the operational costs.

Is the basic organization of the company. Zurich has a rigid

Structure hierarchical structure where it was a top-down decision making 3/10
process.
System simply is the formal and informal procedures that govern
System everyday activities of the company. Zurich has a very dull and well 4/10
defined governance which was strictly followed.
Skills are simply the core competencies of the Zurich. The insurance
Skills company had the basic skills they possed over the decades but there 3/10
was no development taking place.
Bureaucratic leadership where the company was rigid and not
Style 4/10
flexible. Individuals had no power to make decisions
Staff is the people resources of Zurich and how they are developed.
Staff The staff had the minimum power and authority and limited space 5/10
for skill development.
Values drive and shape the mindset of entire business and its
Shared
people. Zurich, noted that the employees does not feel valued. 5/10
value

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Based on the assessment Zurich needs to improve in all the aspects except for strategy to
improve the performance of the company. Also the analysis gives insights as to what is wrong
and needs to be changed completely and also to it shoes which areas need alterations and
little improvement to reach the expected level in each aspect to meet future goals and meet
market dynamics.

When using McKinsey’s 7S framework the support of senior management is needed as it

requires there consultation on adjustments and improvement strategies needed for setting
future goals and also it is an internally focused tool.

John P Kotter's eight steps to successful change

The John Kotter's 8 steps model describes a step-by-step process for introducing and
eventually establishing change in a company. The concept has previously been used in a
variety of business organisation. (Baloh et al., 2018; Kumar et al., 2018; Vokes et al., 2018)

The first step of the process is to establish a sense of urgency to make the parties realize that
there is a need for change. Along with it is necessary to develop a powerful coalition to get
people on board with the change. Zurich understood that they needed to uplift there game
as they well the company was a slow moving. They took charge and informed the necessary
people and got them on board to build in a new technological advancement to be upto date.
Zurich create a vision for change within the company. Which is also the third step in the
Kotter’s 8 steps. The vision should be imaginable, desirable, feasible, focused, feasible and
communicable (Laig and Ferdinand T. Abocejo, 2021). This gave people a clear idea of what
the change will look like and how it will improve the organization. After the vision was created
and effectively communicated to the people the next step is to empower others to act on the
vision.

Also when changing and working towards a new goal it is necessary to create short-term wins,
which is also the next step according to Kotter. Zurich also set small milestones and for the

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employees who accomplished such were rewarded for their performance and appreciated.
This motivated the employee towards change even more.

The next was to consolidate gains and produce more change. This step allowed Zurich to
ensure that the change is sustainable and that the organization is continuously improving. As
the last step it is to anchor new approaches in the organization's culture. This allows the
change to becomes a part of the organization's culture and that it persists to improve in the
future. For this Zurich shared knowledge regarding the outcomes of the change and how it
reasons for success. Through Zurich was able to build a positive attitude toward change
among employees and support the changing goals of management in the future. (Leading
Change, 2017)

Prosci’s five building blocks (ADKAR)

ADKAR can be defined as a fundamental tool for comprehending "how, why, and when" to
employ various change management strategies.
The letters stands for Awareness of the need for change, Desire to participate and support
the change, Knowledge on how to change, Ability to implement required skills and behaviors
and Reinforcement to sustain the change respectively. (Hiatt, 2006)

Looking at Zurich and their process for change management, ADKAR model is was visible
when they discovered that the company struggled to adapt with the dynamic market
conditions as well customer behaviors which resulted in the company to be slow moving.
First the company created awareness within the organization. Zurich informed that the
company needs to uplift their game, and clearly stated the nature of the change which was a
to challenge and change the unnecessary processes and employee habits. The company also
informed the employees regarding the risks of not changing through effective communication
regarding the change.

This resulted the employees to desire for the change and provided motivation towards the
change. As the current state has been there for a while there were some resistance. And
Zurich did manage to handle it. After this sufficient knowledge should be provided about the

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change to move from the current place to the new change. How the change will happen, what
will be the milestones and what skills are needed and how to use the new change are few
important criteria that Zurich spoke to the employees when moving changing to the new
state. Because without this the employees would fear the change and resist it.

Afterwards the ability to implement the new skills will be accessed. The demonstrated ability
to implement the change, the barriers existing and how the skill development will take place.
Zurich provided on-the-job training and coaching supervisors to assist in enhancing skills.
Finally it is the reinforcement step. The changes that place should sustain over time.
Recognition, rewards, incentives, successes are important for change to perceive over time
and to encourage the change move forward.

Lewin’s Three-Step Model For Implementing Change

When managing change Zurich also used the Lewin’s Three-Step Model For Implementing
Change. This model discusses change under Unfreezing, Change, Refreezing. ) (Bakari, Hunjra
and Niazi, 2017)

Kurt Lewin developed a change management framework in the 1940s named the Lewin's
Three-Step Model for Implementing Change. The three steps model for change is easily
understood and used in many industries for change management. (Burnes, 2020)

Unfreeze: Setting up the organization for change. Expressing the need for change and the
advantages of the suggested changes Awareness Programs, Group Meetings, Workshops or
emails is the usual process. This entails creating a feeling of urgency and overcoming
resistance to change. Zurich also followed this step and informed the employees through
meeting and memos.

Change: This step includes putting the recommended changes into practice. This involves
reorganizing the business, introducing fresh procedures, or changing employee behavior.

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Refreeze: The last stage is to stabilize the changes and confirm that they are properly
integrated into the organization. This requires for assessment and on the changes to assure
their functionality and providing assistance and training when needed. Zurich also monitored
their changes continuously through Feed backs, progress reports and Financial rewards to
identify any parts that are irrelevant for the new change. Through this Zurich was able to
successfully implement their desired changes and improve performance.

3. Critically discuss the role of leaders and managers as agents for change in Zurich (A2)

A leader plays a crucial role in promoting process reflection within an organization. A leader
can support the team in determining areas for improvement and streamlining their work for
improved productivity by critically evaluating the processes that have been in place. The
leadership of Zurich played in huge role over the years in the change process at different
situations. (Caldwell, 2003)

Zurich made a massive change in its operations when they implemented a new software that
allowed the agents to see their clients’ investments in one place. When moving towards this
implementation and change leadership of Zurich played a huge role towards its successful
implementation.

The leaders encouraged a culture of transparency and open communication. This was able to
foster an open and honest work environment and it also encouraged the employees to reflect
on the process and provide constructive feedback. As a new system implementation comes
with doubts and reluctance and issues from the users aspect, this open environment allowed
the company to succeed in this situation and the leaders or managers were an facilitator for
developing a network of committed people through a shared vision. In this situation the
leaders of Zurich promoted a culture of learning and adaptation by fostering of a growth
mindset and proving support and coaching for continuous learning and encouraged
individuals to evaluate their techniques and make necessary modifications. But the leaders
should have been a strategist, who strategically anticipates the possibilities and plan ahead
and prepare for them. As this changed had a lot of difficulties and could have minimized them
further.

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Zurich changed wanted to change their hierarchical structure and make it less rigid. In this
instance for the company to get accustomed with the new culture, leadership played a huge
role. They lead by example by reflecting on their own work processes and made
improvements to the way they make decisions and in their tasks. This set an important
example for the team a standard for others to follow. The role of leadership from the leaders
and managers were massively highlighted as it was something that needed to go from the top
to the bottom. And if the leaders and the mangers did not play their part an agent to this
change it would have been a failure.

Apart from the above mentioned situation, Zurich life changed to a culture where the
employees were given the autonomy to make decisions. This was a change that was
constantly guided by the leaders of the organization. They set clear goals and objectives
through effective communication. The team was then helped to comprehend the significance
of efficient procedures and how they contribute to the success as a whole. After this Zurich
allowed the employees to make decisions. facilitator, advocate and an influencer in this
situation to the others. But

In the above three scenarios the leaders of Zurich played different roles and acted differently
to make the change a success. If they did not act accordingly the company would not have
been able to establish the change and even would have driven the business to a worse
situation. But even so there are a few measure that could have been d one to make the
change more effective.

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4. Analyse types and styles of organisational change in Zurich (A3)

Zurich life, as a company with decades of operations realized that they were struggling to
adapt with the changing market conditions and this was resulting the company to be slow
moving in their performance.

While the type of organizational change determined the scope and nature of the change, the
style of organizational change determines how the change is being led and executed within
the organization. The combination of both the type and style of organizational change has
impact on the the success and resistance to the change within the organization.

For this Zurich followed a reactive organizational change. Reactive organizational change
refers to changes that an organization makes in response to external or internal pressures,
rather than proactively seeking out and implementing change. Zurich followed a reactive
organizational change to address specific issues which arose from the market. The change in
Zurich took place during a financial crisis that resulted from changes in consumer demand,
and in conform to new laws. A new technology of system was introduced by the firm to allow
the agents to see all of their clients’ investments. In this Zurich followed a collaborative style
to execute the change. As this introduction of new technology was to reposition themselves
in the market and as the collaborative method is to create the change with them rather than
doing the change to them this style was the most suitable. So the entire company changed to
react to this market change. Though this took time reactive change through collaboration
aided the businesses to develop and adapt. Even so there was a small integration of
transformational type organizational changed involved when moving towards the new
technology.

Zurich also realized that the organization has a very strict organizational structure. And Zurich
wanted to reduce bureaucracy within the organization and decentralize decision making
power and responsibility. This is a type of a structural type in the organization as this change
influences on how the organization is operated. Structural changes in Zurich included changes
in the hierarchy, where the levels were decreased and a the hierarchy became comparatively
flatter. Also the rigidities in the chain of command were lessened and employees were

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encouraged to make more decisions. The job structure of the people were was made more
flexible and gave for scope for people to get engaged and encouraged a bottom-up flow of
information as well. When making all these changes under the structural type of organization
change Zurich, followed a push style option of directive to lead this change. Directive change
is a top-down approach, where change is imposed and directed by those in positions of power
or authority. Although this kind of change can be successful in solving problems, it can also
engender resistance and unfavorable emotions among staff members who feel they have
little influence over the change process. However, as this structural change was to diversify
power, clear communication as to the goal of the change needed to be communicated for the
change to be effective and to overcome resistance.

As seen above different situations require different organizational change types and different
styles for the change to be to be executed properly. Even then conditions, alterations will be
needed for the success of the change.

5. Critically discuss how change context affects change choices for the selected organisation
(A4)

The decisions that companies make while implementing change are substantially influenced
by the context in which it takes place. The context of change and the options available to
businesses are influenced by a number of factors, including the internal and external
environment, organizational culture, and the nature of change being done.

When making changes to the organization Zurich life also paid attention to the context in
which change takes place. Power, Readiness, Time, Capacity, Scope and capability where few
important area that Zurich focused on.

when implementing a new software to the organization to assist the agents in managing their
clients’ investments Zurich was very careful to assess all of the above areas. Considering time,
the questions as to “How much time does the organization have to achieve this change?” and
“Is this a short term or long-term concerned strategic development?” were asked while
thinking about how long it will take to reap the return of the investment. Also in terms of the
aspect of scope Zurich was concerned whether the effect of the change will be upon the

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whole organization or only on certain departments. When implementing this change they
identified only sales and finance department will have direct impact through this change.

The organization's resources both human and other, and past experiences can affect the
choices made during change by limiting or enabling certain options. For example, an
organization with limited resources may choose to implement smaller, incremental changes
instead of large-scale transformations. Zurich also assessed their capability and capacity to
implement this system change to identify how competent is the organization at managing
change.

Looking at another example from Zurich when they wanted to conform with the changes in
public policy, regulation in the industry, the organization was highly concerned with their
readiness for such a change. “How willing and motivated are the employees towards the
change?” and “How much support generally is there for the change?” were the asked
questions. Also, they were concerned with the power, as to where the power in the
organization was concentrated.

Based on the identified features in the change context the design choices for change in two
scenarios changed. Though both changes were top down, the change styles used for
implementation was different. A top down approach was used over a bottom up because the
initiative comes from the top. Though there could be a resistance Zurich made sure to involve
the agents of the company to make it a little collaborative and reduce the negative area of
this approach. The implementation of system required a Collaboration implementation with
high employee involvement on decision of what and how to change. But the change to
conform with regulations were more of a Coercion where the change was imposed with
authority. The main reason for the second change to have a cohesive approach was because
regulations may necessitate changes to organizational processes and systems.

In conclusion, the context in which change occurs can significantly influence the choices
available to organizations, and organizations must carefully consider change context and the
nature of change being implemented when making decisions about change.

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6. Discuss change from an organisational culture perspective (B1)

Organizational culture can have a significant impact on change within an organization. Culture
can shape the attitudes, beliefs, and behaviors of individuals within an organization, and can
either facilitate or hinder change efforts.A strong, positive organizational culture can provide
a foundation for successful change by fostering trust, collaboration, and innovation. In this
type of culture, employees are more likely to embrace change and be willing to adapt to new
processes and procedures. (Elsmore, 2017)

However, a negative or resistant organizational culture can pose significant challenges to

change efforts. Also, change could challenge the existing culture of the organization and this
could been seen as a threat from some stakeholders. In such an instance employees may
resist change due to fear of the unknown or a belief that the current way of doing things is
the best way. Resistance to change can lead to delays, reduced effectiveness, and even failure
of change initiatives.

Organizations looking to implement change must be mindful of their organizational culture

and take steps to align cultural values and norms with the change they wish to make. What
ever the culture, leaders play a major role in managing change. They should understand the
culture of the organization and ensure that all parties are informed about the change and its
benefits to get their support in the change. This may involve creating a culture of continuous
improvement, promoting open communication and collaboration, and encouraging
employees to embrace change and new ideas.

In conclusion, change from an organizational culture perspective is a complex issue that

requires careful consideration and planning. Organizations must understand and work with
their existing culture to create a supportive environment for change and ensure that
employees are on board with the changes being made.

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7. Discuss change from a power and politics perspective (B2)

A power and politics perspective on change analyzes how authority, resources, and influence
are distributed within an organization and how they affect on people and groups to initiate
change. In many businesses, a few people, such as top executives or department heads, hold
the power to make decisions and lead change projects. These individuals may use their
influence to resist change that would harm their interests or to promote change that will
actually benefit them.

There are different types of power within an organization that can affect change. Coercive
power is one such and it is the ability to impose penalties or make demands in the event of
noncompliance. It is often used to enforce rules and regulations by the organizations.
Managers or supervisors tend to posses such coersive power and they use this to make
change forcefully. In contrast to that the reward power exists where it offers incentives or
prizes for desired behaviors is what is meant by the term "reward power." It is frequently
used by people in power positions to motivate employees to promote compliance towards
change.

Expertise, talents, and experience are indeed the foundation of a kind of authority. Individuals
with expert power are generally valued members of the organization and they can influence
in change due to their expertise knowledge.

Also the kind of influence is based on a person's characteristics is referred to as Referent

Power. Such charisma is frequently possessed by leaders and may strongly impact on others'
attitudes and conduct. change can be easily rough into a work environment when such people
are leading the change process.

Legitimate power is based on formal authority, including a leadership position or a directive

from higher-ups. Individuals who have legal authority are frequently considered as having the
right to make judgments and apply laws. When change is taking place such power can enforce
the change to fostered in the organization through the legal power they hold within the

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organization. Another power is informational power, where one has power based on specific
information they know.
High performance pressures ,Scarcity of resources, Self-serving senior managers ,Unclear
evaluation systems and role ambiguity could contribute the organization to take a political
behavior and would threaten change. Self-serving behaviors tends to undermine fairness and
issues with the organizational structure brings political perspective. Along with this comes
interest conflicts both horizontally and vertically within an organization making it hard for
change to take place in the event when change has effect on people in different scale.

Looking at change from a power and politics perspective emphasizes how crucial it is to
comprehend and control how influence and power are distributed inside an organization.
Organizations must take steps to ensure that change initiatives are inclusive, fair, and
transparent while being conscious about power dynamics and political pressures. (Munduate
and Bennebroek Gravenhorst, 2003)

8. Discuss change from an organisational learning perspective (B3)

From an organizational learning perspective, change can be viewed as a continuous process

of acquiring new knowledge and skills, adapting to new and challenging situations, and
continuously improving processes and systems. Organizational learning helps organizations
stay competitive in the dynamic market by promoting a culture of continuous improvement
and adaptation. This involves creating a learning environment that motivates employees to
share ideas, collaborate, experiment, and take risks.

The key elements of organizational learning can be described as below. Knowledge

management is one which involves creating and maintaining a system to store, communicate,
and use information and data within the organization. Storing and sharing of information to
facilitate learning is not sufficient in an organization which is changing or hoping to change.
Performance improvement is also needed. This refers to continuously monitoring and
evaluating the organization's performance and making adjustment to improve it. And past
knowledge of successes and failure assist to select methods.

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When discussing about change in a learning perspective promoting a culture that values
continuous learning and encourages employees to continuously develop their skills and
knowledge is important. Because this motivates employees to reflect on their skills and
master them personally as well as encourages team learning among employees as well.
Continuous improvement through evaluating learning curve analysis identifies opportunities
for improvement, experimenting. New ideas and approaches, and continuously refining
processes provides scope for change.

In order to remain timely and competitive in a changing environment, an organizational

learning perspective on change emphasizes the importance of creating a learning-oriented
culture, continuously refining processes, and acquiring new information and skills.

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9. Analyse the internal and external environments which influence organisational change in
Zurich (C1)
A framework for analyzing the environment in which a business operates is the PESTEL
analysis. The PESTEL analysis for Zurich was as below.
PESTEL Analysis

Pestel analysis
Government systems (local The local governments in different
Political

governments) countries which Zurich operates

Political environment vary. As a result the company need
to adapt accordingly.
Downward pressure on consumer The changes in the economical
spending conditions which is resulting from
Economical

Rise of Inflation rate the world crisis and the war has a
Rises in Exchange rate direct influence on Zurich as
Economic cycles insurance companies are correlated
with the economic performance.
Demographics Demographic changes and the
Influence of media sources attitude towards insurance has a
Social

Attitude towards health and safety relationship with insurance and so

does public opinion.
Maturity of technology The insurance industry has not yet
5g and its potential matured, and the majority of players
Technolo-gical

Latest technology-based innovations are trying for innovation while

implemented by competitors integrating the latest. Improving
user experience with increasing
speed and access is becoming a
must.
Extreme weather conditions The fluctuations in the climate also
Environmental pollution affects Zurich as these changes
Environ-

Crime rates influence people to care about

mental

Limiting carbon footprints danger. Safety level has a direct

impact.
Health and safety policies The rules and regulation of a country
Labour laws affect the operations of Zurich as
Legal

Data protection laws they have to adhere with them

The PESTEL analysis shows what kind of changes in the external environment has effect on
Zurich. By this analysis the company can identify key drivers that causes impact on the
organization. Also, it will show which and give a guidance as to what changes needs to be

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 made to either maximize the opportunities or minimize the threats from the external
uncontrollable environment.
TOWS MATRIX
A organizational strategic tool called the TOWS matrix evaluates a company's strengths,
weaknesses, opportunities, and threats to decide on possible strategies to be implemented.
(Weihrich, 1982)

WEAKNESSSES
INTERNAL STRENGTHS
Factors o Brand Equity
o Niche markets and local
o Product portfolio
monopolies
o Global presence
EXTERNAL o Diversity in the
Factor o Strong R&D
Workforce

OPPORTUNITIES Maxi-Maxi (SO) Mini-Maxi (WO)

▪ AI & technological 1. Leveraging brand recognition in new 1. Investing into customer-
advancements segments oriented services
▪ Upward trend in Digital 2. Integrate AI features into the systems 2. Reduce cost and improve
marketing 3. Introduce new product mix performance using natives
▪ Local Collaboration as leaders to manage each
subsidiary
THREATS Maxi-Mini (ST) Mini-Mini (WT)
▪ Competition 1. Loyalty marketing 1. Develop flexible insurance
▪ Regulatory threats 2. Creating value in data economy plans
▪ Exchange rate fluctuations 2. Build partnerships
▪ Changing demographics

Based on the TOWS matrix the strengths and weaknesses of the company can be identified
and the opportunities and threats that is there. With the tows matrix strategies can be build
to face the opportunities and threats through maximizing the company’s strengths and
minimizing the weaknesses.

According to both the internal and external analysis restructuring the processes and making
Cultural changes within the organization would help Zurich to flourish.
Power Matrix

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The power-interest matrix is a tool used to identify who the key players are in a given situation
and to assess their influence and level of involvement in the issue at hand. (Weihrich, 1982)
Table 1: new technology implementation for agents of the firm

1. High power, highly 2.High power, less The identified stakeholder in each
interested people interested people
category should be treated accordingly.
Shareholders Union
Local government
The department The 1st quadrant represents those parties
which the system is who are both very powerful and very
being implemented
interested in the change and they need to
3.Low power, highly 4.Low power, less be fully informed. Also, Zurich need to
interested people interested people
Customer Other departments engage and make the great effort to
IT businesses which is not changing satisfy them and constantly updated.
Lenders community
The 2nd quadrant represents the parties
1.High power, highly 2.High power, less that has significant control over is
interested people interested people
not really interested in the change. and
Shareholders Other legal
Union organisations such parties should be kept informed and
satisfied, but does not require constant
3.Low power, highly 4.Low power, less
interested people interested people interaction.
Customers Customers
Competitors Community

Table 2: Reduction in bureaucracy

The 3rd quadrant represents those who have a limited power but is highly interest in the
change. And they need to inform and should get them involved as they can be useful.
In the final quadrant the who has low power and little interest and keeping them informed is
sufficient.
Looking at the two situations the stakeholders in each category are different. So, Zurich needs
to identify where they fall in the given situation and treat them accordingly.

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10. Discuss, in consultation with others, how change transition is designed by strategic
leaders and managers (C2)
Change transition is a process through which an organizations move from one state to
another through planned and organized deliberate efforts. Strategic leaders and managers
play a crucial role in designing change transitions. It is mandatory to effectively communicate
throughout the process with all key holders.

Zurich, when wanting to adapt with changing market conditions needed a change as their
current mechanism were not suitable for the customer demands. In this situation strategic
leaders and managers assessed the current situation and determined a change is necessary
to improve performance, and address the challenge. After which Zurich create a clear and
compelling vision of the desired future state, which serves as a guide for the change
transition. And this was be clearly communicated to all parties to empower others to take
part on acting on the vision by removing any identified possible obstacles.

Change transition is a psychological and it is not just implementing a new mechanism but
helping people to embrace the new. Changing happens individually and collectively as an
organization therefore, strategic leaders and managers should address the concerns of
keyholders. Therefore, it is necessary to that the strategic leaders design a comprehensive
plan that outlines the steps and activities required to achieve the desired change by
considering and defining leaders roles, reason for change, the redefining of systems, and
structures and also required skills and Zurich made a plan by sequencing their change
activities. (Norzailan, Shazlinda Md Yusof and Othman, 2014)

From the point of creating awareness within the organization to the point of monitoring the
change was planned out. While planning Zurich, identified possible resistances to change and
decided on methods to address those resistances. To engage stakeholders and to create
support for the change Zurich communicated the plan to the stakeholders and informed them
to the needed level based on Stakeholder positioning.
After the change transition begins to be implemented the strategic leaders of Zurich was
looking over process to ensure that it is executed effectively and efficiently. During this the

Page 29 of 43
leaders and managers where addressing issues with under-utilization of resources, and needs
or reallocation of resources.

The leaders monitored the progress of the change transition and also made necessary
adjustments to its success. Most importantly the strategic leaders should foster and
environment for the change to sustain in the organization. Contemplating the actions,
acknowledging the outcomes and realizing the reasons for failed attempts need to be
evaluated for further action.

Strategic leaders and managers need to carefully plan, communicate, and exercise strong
leadership in the process of designing change transitions.

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11. Critically evaluate ways in which strategic management enabled the conditions for
organisational change in a given context (C3)

When Zurich realized that they were not able to compete in the dynamic environment, the
company decided to change. And the mane change they did was to Implement a software
that would allow the agents to see all of their clients’ investments in one place. When doing
so the senior mangers played a major role making it a success.

The senior management of Zurich built the correct context for change. After considering the
resistance that could come due the fatigue and stress, the level of communication needed
and the training of people related issues the context would be set.
Most importantly, Zurich practiced relational leadership to collaborate as a community to
foster teamwork. Also the senior management was able to get everyone dedicated to a
common goal, divide the work. And they made efforts to recognize each member's
contribution and value it.

The middle management of Zurich was playing a role of intermediaries in the change. They
also undertook and helped the others through the process of change. The middle managers
played the role of manger through communication and mobilization and performance
evaluation as well as a role of leader through being considerate of feelings and securing
resources.

When implementing the system the Human Resource Management (HRM) also played an
important role by planning and providing training and evaluating employee progress. As
organizations use performance management to increase the success of the change process
handling this was a huge task.

strategic management enabled the conditions for organizational change through methods of
diagnosing resistance and dealing with them. Zurich identified that change resistance
happened in this implementation because of an issue with perception. The perspective of the

Page 31 of 43
agents, the users of the system, differs from that of the change's initiators, resistance to
change occurs.

In order to deal with the identified resistance, Zurich used the common method of providing
education through clear communication as to why the change is needed and how doing
nothing is a higher risk to them and how it will benefit their work. Also, both senior
management and the middle management supported the people throughout to familiarize
with the change and adapt to the system.

12. Evaluate the importance of employee engagement to organisational change (C4)

The ability of the company to achieve its objectives and goals is directly impacted by level
of employee engagement, making it essential to the success of organizational change.
Employees need to be a part of the vison of the organization and should sense of ownership
and purpose as individuals for the organization. Below are some of the factors that make
employee involvement crucial to organizational development.

Motivated employees are more inclined to support and welcome change since they are aware
of the benefits of the change to them and has an understanding on the background of the
organization and this will benefit the organization as they will not need to hire new people
for the change as it comes within. Also giving the chance for employee voice is very important.
Communication with employees and allow the employees to be transparent, inclusion of
opinions leads to a more collaborative and inclusive change process. (Benson, Kimmel and
Lawler, 2013)

When getting employee engagement, it is important to put the right person in the right place
provide necessary training when needed. Investing in employee growth and development and
taking a notice their contributions helps to build trust and commitment towards company
goals and objectives making change implementation more effective through and efficient
change processes. (Bhuvanaiah and R. P. Raya, 2014)

Page 32 of 43
When getting employees actively engaged, they tend to rethink resistance employees are less
likely to leave the organization during times of change which will result in a more stable
workforce and thus yield the best outcomes.

Employee engagement is essential for the success of organizational change since it ensures
that employees are aware of and supportive towards change. they will be inspired to take
part in the process and focused on attaining the desired results.

Conclusion
Leadership and organizational change are interrelated and crucial to any organization's
success. Since leaders are important in creating a vision, communicating change, and
motivating and assisting employees during the change process, effective leadership is
required to drive and manage change within an organization. Organizational change, on the
other hand, is essential for companies to thrive over the long term, remain competitive, and
adapt to market and technology developments. Clear communication, active employee
participation, and the adoption of a flexible and innovative mindset by leaders and employees
alike are essential for a successful organizational change. F or maximum effect and success,
organizational change and leadership must both be approached from a strategic and
comprehensive perspective.

Page 33 of 43
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Planned Organizational Change? The Role of Employees’ Perceptions: Integration of Theory
of Planned Behavior and Lewin’s Three Step Model. Journal of Change Management, 17(2),
pp.155–187. doi:https://doi.org/10.1080/14697017.2017.1299370.

Benson, G.S., Kimmel, M. and Lawler, E.E. (2013). Adoption of Employee Involvement
Practices: Organizational Change Issues and Insights. In: Research in Organizational Change
and Development. [online] pp.233–257. doi:https://doi.org/10.1108/s0897-
3016(2013)0000021011.

Bhuvanaiah, T. and R. P. Raya (2014). Employee Engagement: Key to Organizational

Success. [online] Available at:
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a56m2i4Bi1zaujpwuft8eFITFwU0~syGAdC2RXeEHP8hAA3OE8vboyZrXQDU4VA5XjHk
HXJI7PBoOFXQkAQzuxM96M2wc46yefl1hk8OGfyK3G4PlXEtvqtKIS9cpaUwxOBpPcw
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Burnes, B. (2020). The Origins of Lewin’s Three-Step Model of Change. The Journal of
Applied Behavioral Science, [online] 56(1), pp.32–59.
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Caldwell, R. (2003). Change leaders and change managers: different or complementary?

Leadership & Organization Development Journal, [online] 24(5), pp.285–293.
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Channon, D.F. and Caldart, A.A. (2014). McKinsey 7S model. Wiley encyclopedia of
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https://projects.iq.harvard.edu/files/sdpfellowship/files/day3_2_choosing_strategies_for_chan
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Laig, R.B.D. and Ferdinand T. Abocejo (2021). Current Issue - Volume 6, Number 2, May-
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%20in%20a%20Mining%20Company.pdf [Accessed 2021].

Leading Change. (2017). Macat Library. doi:https://doi.org/10.4324/9781912281022.

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Page 37 of 43
Section “B”

Page 38 of 43
CONTENT

Section “B”............................................................................................................................... 38
1. An introduction to the chosen organisation .................................................................... 40
2. Description on the organisational change........................................................................ 40
3. Examine an approach to enabling successful change (D1) .............................................. 40
4. Produce justified change management strategy for an organisation (D2) ...................... 40
5. Conclusion ........................................................................................................................ 42
List of references...................................................................................................................... 42

Page 39 of 43
Slide 01

Name of the programme

Module code and the name
Topic :Plan for successful strategic change …(Name of the Organisation)

Student Name
Pearson ID

1. An introduction to the chosen organisation

Zurich is a leading multi-line insurance company in Switzerland found in 1872. Operating in

both local and global markets Zurich is a pioneer in multichannel insurance solutions with a
worldwide network. Offering a diverse variety of products and services worldwide, Zurich is
a renown company who caters insurance need of idividuals, small businesses, mid-sized and
large firms, as well as global corporations.

2. Description on the organisational change

Over the decades of operation Zurich has become slow-moving and bureaucratic. This
resulted in a point where the company was struggling to adjust to shifting market dynamics
and consumer trends. The leadership team finally saw the necessity to accept change.

3. Examine an approach to enabling successful change (D1)

When Zurich is making a change “Plan for successful strategic change”, would be as follows.
Setting a clear vision: It is mandatory that the strategic management set a clear as to where
the company is aiming to reach through the change. It should not be vague a but very
through and specific about the end goal and will outline what will change and what will
remain the same for the organization, the team, and individuals.
Define a strategy: A strategy is essential before, during, and after for a
successful organizational change. Before : For this it is necessary to gather all the
information regarding the expectations and capabilities of the company. Zurich's readiness

Page 40 of 43
for change was assessed using McKenzie's 7S framework, and can uses focus groups, survey
interview to gather details.
Establishing a change team , Recruiting a task force or plans for Training should be
determined, determining necessary resources for change are decided before the change
takes place.
Developing a plan with a task list , a timeline , and needed project management tools also
happens before change.
Possible resistances should also be evaluated before change.
Mechanism to evaluate performance should also be decided upon.
During : During the change setting milestones and celebrating wins would help the change
to be successful and the employees to put effort into the change.
It is necessary to be transparent get all the assistance and support required.
Necessary training and employee support for change should be provided. And the short
terms goals should be evaluated and celebrated.
After : After the change has been implemented using surveys or questionnaires that assess
the success of the change is useful to reinforce the initiative's goal. Evaluate the responses
to decide if additional action is needed and performance reports could also show deviations.
When implementing change Zurich can follow Lewin’s three step model for change
management which is, to Unfreeze, Change and Refreeze.

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 4. Produce justified change management strategy for an organisation (D2)

When producing a justified change management strategy, the first step is to give
logical reason for the need of change. In here Zurich needs to say that the company is
lagging behind and to sustain in the market and to thrive they need change in both
new procedures as well as management.
Next reasons for the Strategy should be said. The Lewin’s approach was used because
it is Simple and flexible so it’s suitable for a firm with strict hierarchy as complications
are limited. Also as it emphasizes preparation and provides structure it’s the most
suitable.
As Lewin’s approach has been used in many change situations, there are sources to
get guidance.
A through timeframe should be introduced to complete each task on the three stages.
Setting bench marks and targets are also vital. The establish goals should be SMART.
Eg: Improve the agents’ technical competencies by 40% in three months
After the goals are established and the change management approach decided,
responsibilities needs to be assigned to the right people. As it is a key factor to ensure
the selected approach is implemented correctly and change.

5. Conclusion

• Zurich needed a change to sustain in the dynamic market.

• Before making change, the leaders of Zurich had to follow a few steps to
understand their capabilities as an organisation to reach the expected vision
through change.
• Change is not a easy, it is well planned and executed process.
• For change to be viable it is necessary to monitor progress and take corrective
measures when needed.

List of references
Al-Haddad, S. and Kotnour, T. (2015). Integrating the organizational change literature: a
model for successful change. Journal of Organizational Change Management, 28(2),
pp.234–262.

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Bakari, H., Hunjra, A.I. and Niazi, G.S.K. (2017). How Does Authentic Leadership Influence
Planned Organizational Change? The Role of Employees’ Perceptions: Integration of Theory
of Planned Behavior and Lewin’s Three Step Model. Journal of Change Management, 17(2),
pp.155–187. doi:https://doi.org/10.1080/14697017.2017.1299370.

Bjerke, M.B. and Renger, R. (2017). Being smart about writing SMART objectives.
Evaluation and Program Planning, 61(1), pp.125–127.
doi:https://doi.org/10.1016/j.evalprogplan.2016.12.009.

Kotter, J. and Schlesinger, L. (1979). Choosing Strategies for Change. [online] Available at:
https://projects.iq.harvard.edu/files/sdpfellowship/files/day3_2_choosing_strategies_for_chan
ge.pdf.

Norzailan, Z., Shazlinda Md Yusof and Othman, R. (2014). Developing Strategic Leadership
Competencies. Journal of Advanced Management Science, [online] 4(1).
doi:https://doi.org/10.12720/joams.4.1.66-71.

Ward, J. and Elvin, R. (2001). A new framework for managing IT-enabled business change

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