Managing Change in Organizations - Example

Internal business proposal

Executive summary

This is a business proposal that seeks to highlight the process of planning and implementation of proposed solutions to the problem of poor relationship with suppliers which has in the past turned out to be detrimental to the company’s profitability. The problem is clearly stated in the proposal and how it affects the business of the company. The main problem areas are lack of enough spare parts, raw materials as well as unavailability of stock for customers and this affects the customer very much. The main proposed solutions to this problem are having a strong communication with suppliers and customers, have in place a proactive approach, rather than being reactive, have strong internal processes, management of vendor and also perform risk management. The top three solutions out of these five are highlighted and their pros and cons discussed within the proposal. The proposal also discusses the key stakeholders in the implementation process and how they impact on the process. Also, evaluation strategies of the success of the solutions are also highlighted.

Purpose Statement

The business proposal is being made so as to provide the best solution to the problem of the company. The problem that needs to be solved is why the company is not doing well in terms of delivery of raw materials from suppliers, and this has gone to an extent that the company cannot create a reputable name in the market for its products. This proposal seeks to identify the real problem and then come up with the best solution to the problem. For instance, the company has had issues with spare parts, raw materials as well as unavailability of stock for customers and this affects the customer very much. This paper will also offer the best solution to this and ensure that the customer is timely and competently served and avoid delays through effective relationships with suppliers.

Problem statement

The company faces the challenge of delivery of raw materials from suppliers whereby there have been delays and this has really affected the business. First, customers are very much inconvenienced and this has really affected the company’s image and reputation. In addition, the company has experienced a stagnant production as a result of the unavailability of raw materials, store units and spare parts as indicated in the chart below:

What the chart shows is that there have not been any significant growth of spare parts units, store units, raw materials, work processes and production units since for the periods between 2010 and 2015. This is a big issue and has to be resolved so as to ensure progress of the company. If the same problem is not solved, chances are that the business will continue to stagnate or decline and may lead to closure at the end.

Data and Research findings

To address the same problem, a previous research was conducted within the company so as to assess the efficiency and effectiveness of previous solutions undertaken. This section presents a summary of what was learned in the research. The graph below represents the results obtained from the survey conducted on 50 individuals from the company. These participants included employees, departmental managers as well as members of the top management.

From the chart, it can be learnt that the previous solutions were not efficient enough to solve the problem. In addition, many participants of the survey stated that they were not satisfied with the previous solutions. In terms of whether the previous solutions were cost effective, majority stated that the solutions were too costly for the company and didn’t offer much for the company. The other question was on whether the previous solutions maintained service quality and majority answered ‘No’. Customer satisfaction was considered in the previous solutions. To conclude on this, it can be stated that the previous solutions did not benefit the company much and that there was no any significant growth in the company after the solutions were implemented. This calls for a more effective and efficient solution to the same problem. The findings (as indicated in the chart) are a clear picture that the previous solutions were ineffective and most of them proved to be costly, thus, a less costly and more effective solution need to be offered and implemented by the company.

Proposed solution

There are several solutions proposed to solve the problem facing the company. This part summarizes the top three solutions considered to address the problem as well as the pros and cons of each of the proposed solutions to the problem. The solutions considered here originate from what other companies have been able to undertake and in a way have been successful. The solutions are presented in the graph below;

The graph shows five major solutions that can be implemented by the company and help reduce delays in securing raw materials from suppliers and ensuring that strong relationships are created with both suppliers and esteemed customers. These solutions are having a strong communication with suppliers and customers, have in place a proactive approach, rather than being reactive, have strong internal processes, management of vendor and also perform risk management. The top three solutions that can be effective for the company if implemented are strong communication with a success percentage of 96%, performing risk assessment with a success rate of 94% and lastly have strong internal processes, with a success rate of 92% (Garfein, 2013).

The best solution for the company is to have a strong communication with the suppliers. The advantages of this strategy is that whenever materials are not available, the company knows in advance and can manage the customers. Strong communication also increases the reputation of the company. The disadvantage is that the suppliers may not be willing to cooperate at all times. Performing risk management allows the top management to understand the risks of not offering goods and services at the right time and place to customers and then take measures. Risk management may not be profitable on the short run. Strong internal processes helps the top management to be proactive and take control measures. However, this solution may not be cost effective for the company.

Stakeholder Analysis and Benefits

This part of the proposal summarizes relevant data and information related to the company’s key stakeholders and how they will be affected by the proposed solutions when implemented. Also, benefits to be gained by the stakeholders once the solutions are successfully implemented will also be summarized.

The main stakeholders of the company are employees, suppliers, customers as well as members of the management team of the company. The solutions implemented will in one or another affect every stakeholder of the company. For example, the solution of the problem will benefit all the organization’s stakeholders including the employees. It is important to note that the solution to the problem features the aspect of inclusivity which is essential in an organization that accommodates varied stakeholders. It provides an opportunity to employees to air their suggestions about the problem. Since the solution only costs the employees their time of participation, it will be for their best interest to buy the solution. Employees are most affected by the current problem in that the unavailability of materials delays their work processes and this means that if the solutions are implemented successfully, then the employees will be happy and definitely will work hard for the benefit of the company.

The other group of stakeholders affected are the customers. Remember that in any business, the customer is everything and if the customer are not served well, then the company may find itself not having enough customers for its survival in the market, especially at a time when competition is on the increase. Customers are not satisfied with delayed product and services and they are always after efficiency. If the company does not meet the needs of customers, then chances are that they will prefer competitors. Thus, is the solutions proposed are implemented successfully, customers will be happy and indeed they will be loyal to the company.

The other group of key stakeholders of the company are the management staff who will always be blamed if the company undergoes losses. From the data collected, the company has been stagnating as a result of this problem and this puts the management staff in a bad state as the management of the company lies in their own hands. Thus, if the solutions are implemented successfully, then the management staff will benefit a lot and their image and reputation will improve (Garfein, 2013).Suppliers are also part of the key stakeholders of the company. With the current situation at the company, suppliers are not able to deliver raw materials properly and on time and this means that their business is also at stake as they are losing a lot when it comes to delivering raw materials. If the proposed solutions are implemented successfully, then the suppliers will benefit a lot as they will be in a position to agree with the company and ensure that they deliver raw materials on time. This will also increase their profitability since they are still in business to make profits.

Change management plan

For the best solutions to be implemented, several changes have to be made on the organization and as it is known that changes need to be managed well and ensure that employees as well as other key stakeholders accept the changes. This section clearly highlights the specific strategies and methods that can be utilized by the organization so as to manage changes that come with the selected solution implementation. Managing organizational changes has been one of the greatest challenges faced by managers. Before the implementation of selected solutions to certain problems associated with organizational changes, it is important for managers to address several issues(Garfein, 2013).

First, the moist important thing that need to be provided are the resources required for the successful implementation of the proposed solutions. The employees and the various departmental managers will require training on how to use some of the technological equipment suggested in the solution. Human resources (experts in training) will be used for that purpose. Technological resources, such as mobile phones, advanced calculators, and computer software will be used to make the implementation of the problem successful. Time is another valuable resource that will be required from all stakeholders involved especially the employees. Though this, chances are that the changes will be easily accepted within the company. In case of any resistance, various techniques can be used to overcome any form of employee resistance. One of the ways that will used to overcome employee’s resistance to change will be education and communication(Garfein, 2013). Workers need to be educated about the change before it implementation. The second method involves participation and involvement. When employees are engaged about the change, it will be difficult for them to resist it. Thirdly, incorporating negotiations and agreements will also be significant in lowering resistance among the employees about the change(Garfein, 2013).

Methods of implementation

This section highlights the specific strategies that will be applied in the implementation of the solutions to the problem, such as costs as well as time resources associated with the process of implementation. Time is a very important resource in the implementation of any strategy in a company. For example, employees and other key stakeholders of the company need to be given time so as to absorb changes made and help reduce the chances of change resistance. Time is required for employees to adapt slowly and then be able to accept changes. This is one major aspect of change management and proves to be an effective one. When employees accept he change, then the probability of a successful implementation of proposed changes increases (Garfein, 2013).

Another aspect that need to be considered is cost effectiveness of the proposed solutions. The top management is advised to ensure that the implementation of the solutions does not prove to be much costly at the end and that, the most cost effective solutions need to be adapted. For example, introducing new internal processes may prove to be costly especially in the short run, though it may be effective in the long run. To avoid spending a lot in the process of implementation, the company can prioritize on the proposed solutions and make sure that the most cost-effective ones are implemented first, For example, having a strong communication is not costly and thus it is one of the most cost effective solutions that can be implemented first.

Evaluating success

When the solutions have been implemented, evaluation need to be conducted so as to measure the effectiveness and success of the solution to the problem. This part summarizes the specific measure applied at the end of the implementation process so as measure the success of the problem solution. One of the major strategies that need to be used to measure the success of the problem solutions is to measure the effectiveness of the solution implemented, both in the short-term and in the long run. For example, if the solution “strong communication” has been implemented, then efficiency and effectiveness of the delivery of raw materials is expected to improve. Thus, to determine if the process of implementation has been successful, then the rate at which raw materials are being delivered ought to change. For example, the company can look at how frequently they make contact with suppliers and compare it with the previous. Timely delivery of raw materials from suppliers is also another strategy that can show if the implementation process has been successful or not. Cost-effectiveness can also be used to measure the success of the problem solution. For example, if the solution proves to be too costly, then chances are that it is not successful especially in the short run.

Conclusion/call to action

The process of implementation of the proposed solutions requires key stakeholders to get involved in the process and ensure that it is a success at the end. Employees and the management team are the most important stakeholders since the get involved directly through undertaking various roles in the process. For example, employees operate machines whereas management makes informed decisions and makes work easier. The implementation process also requires money and other resources and this can be provided by the company’sfinanciers and sponsors.