Managing Change at Faslane - Case Study Example

? Managing Change at Faslane Table of contents 0 Introduction 3 2.0 Case Study Analysis 2 Strategic change context in 2002, at the start of the change process at Faslane 3 2.2 Internal features of the organisation when it was run by the MOD and Royal Navy (up to 2001) with when it was run by Babcock Marine (2002-2010) 7 2.3 Strategic Leadership style that was evident at Faslane during 2002 to 2010 11 3.0 Conclusions 12 4.0 References 12 1.0 Introduction The implementation of changes in modern organizations can be developed using different approaches. However, the success of the relevant initiatives can be influenced by a series of factors, which are differentiated in firms within different industries. At Faslane, a naval base in UK, the introduction of changes in regard to a variety of processes has been unavoidable. However, the terms under which this project could be established are not clear. The use of a series of strategic analysis tools has allowed the identification of the change context in the organization. It has been revealed that from 2002 to 2010, when the organization operated under the control of a private contractor, the performance of the organization in promoting change has been quite high, compared to the past when such initiatives were avoided. 2.0 Case Study Analysis 2.1 Strategic change context in 2002, at the start of the change process at Faslane The strategic change process at Faslane has been developed in several phases, being influenced by the market pressures and the organization’s potentials to face internal and external challenges. The strategic change context in 2002 would be understood through the following strategic models: a) Balogun and Hope Hailey’s Change Kaleidoscope and b) Lewin’s Forcefield Analysis. If related to the specific organization, the above strategic models would have the following forms: a) the Change Kaleidoscope; the specific model incorporates eight elements, representing the aspects of each organization that need to be reviewed before deciding on the changes that will be implemented in the specific organization. These elements are presented in Figure 1 below, where a common form of the Change Kaleidoscope is presented. In Figure 1a, the Change Kaleidoscope has been transformed, reflecting the change context at Faslane. Figure 1 – Change Kaleidoscope of Balogun and Hailey (source: http://www.marketinginsight.ch/diverse/change-mba-and-change-kaleidoscope/) Power Readiness Time Capacity Scope Capability Preservation Diversity Figure 1a – Change Kaleidoscope at Faslane The findings of the above analysis are aligned with the rules on which the Change Kaleidoscope is based. Indeed, the specific tool is based on the view that ‘change is not homogenous but it can have various approaches’ (Lynn & Rathbone 2012, p.4). In addition, the decisions on the changes that will be required within each organization cannot be taken before ‘all aspects of these changes are diagnosed and analyzed’ (Cameron & Green 2012, p.221). Moreover, all elements of the Change Kaleidoscope are of equal importance in regard to the change process (Balogun 2008, p.103). This means that giving emphasis on one or more elements of the model and ignoring other elements would lead to the failure of the particular process. The Change Kaleidoscope, as presented above, reveals the following fact: the key aspects of change on which the contractor at Faslane should focus would be: Scope, Capability and Change. Workers at Faslane should adopt a different mindset in regard to their work. In this way, their readiness to support change would be secured increasing their capability in regard to the relevant project. Similar findings would be retrieved using the Lewin’s Forcefield Analysis. The above model, as presented in Figure 2 below, would lead to the following findings in regard to Faslane Naval site: in the particular site there are two opposed forces: industrial forces and political forces. The former support change while the latter set obstacles to any attempted change. Figure 2 – Lewin’s Force Field Analysis (source: http://www.change-management-coach.com/force-field-analysis.html) For Faslane site, the Lewin’s Force Field Analysis would be developed as follows: Forces supporting change Forces opposed to change Figure 2a – Force Field Analysis of Lewin, as applied at Faslane The Lewin’s Force Field Analysis, as related to Faslane, leads to the following assumption: the success of the change process at Faslane is depended on the power of the opposing forces. Even if all elements of the Change Kaleidoscope, as analyzed earlier, are carefully reviewed, the chances for the successful implementation of changes in Faslane can be significantly reduced, even eliminated, if the Positive forces, i.e. the forces supporting change, are proved unable to face the Negative forces, i.e. the forces opposed to change. Moreover, the following case exists: the Naval staff may agree finally with the civilian staff of Faslane in the following context: people belonging in a group, in this case the workforce of Faslane, often tend to behave in the same way believing that their differentiation would lead them to a conflict with the other members of the group. Such problem is common in the Force Field Analysis where the power of certain members of the workforce to resist change is stronger than the willingness of their counterparts to support change (Miner 2007). At this point, reference should be made to the following fact: the management team at Faslane, up to 2001, did not support change but not clearly. Certain of the team’s members supported change but they did not try to take initiatives so that changes are implemented. For this reason, the organization’s management team has not been incorporated in the above diagram. 2.2 Internal features of the organisation when it was run by the MOD and Royal Navy (up to 2001) with when it was run by Babcock Marine (2002-2010) In order to understand the potentials of the organisation to support change it is necessary to identify and analyze the key features of internal organizational environment. Of particular importance are two periods, the period during which the organisation was under the control of MOD and Royal Navy (up to 2001) and the period from 2002-2010, i.e. when Babcock Marine ran the organisation. The different control units, as described above, reflect, at a first level, a difference in organisation culture and a difference in the organisation’s internal features. This issue can be checked using two strategic models: Johnson’s Cultural Web and McKinsey’s Seven S framework. Each of these models will be developed twice, representing the two different periods of organizational life, as described above. The common form of cultural web, as developed by Johnson is presented in Figure 3. Then, the cultural web is developed for the particular organization, in regard to the two periods mentioned above, i.e. ‘up to 2001’ and ‘for 2002-2010’, see Figures 3a and 3b below. Figure 3 – Cultural Web of Johnson (source: http://www.new-paradigm.co.uk/culture-complex.htm) For the period ‘up to 2001’ the cultural web at Faslane would be described using the Framework presented in Figure 3a. In the relevant framework the elements of the cultural web have not been incorporated within circles allowing space for more analysis. Routines: Each change should be documented and reviewed, at least at four different phases, each of which should last 14 days the maximum; At least 56 days were required for any change to be implemented in the organization. Stories & myths: Stories were not common, a fact that has been related to the nature of the organization, as part of the defense network of UK Symbols: Up to 2001 Faslane were one of the most known naval bases in UK; the base has been related to the Trident weapon system, a nuclear weapon system of advanced potentials. Power structures: the orders of the Commodore had to be followed strictly; the management team could also set rules and assign tasks; the naval and civilian staff were not given the chance to take initiatives Organisation structures: the staff, civilian and naval, had to report all their activities to the management team Control systems: no specific performance control system was in place Figure 3a – Cultural web at Faslane for ‘up to 2001’ For the period ‘2002-2010’ the cultural web at Faslane would be described using the Framework presented in Figure 3b. Routines: employees were given only the general framework of their duties; then, they could decide on the ways used for completing the tasks assigned to them; blank business plans allowed the increase of trust between managers and employees Stories & myths: The organization’s management team has enhanced truth; in the past, truth was avoided but this trend has affected trust between employees. Symbols: Now Faslane has become the basis of all UK submarines, not just of the fleet of nuclear submarines, as in the past Power structures: cooperation and communication was promoted; the decisions of the organisation’s management team should be respected and followed but they did not have the form of orders, at least not clearly, as in the past Organisation structures: the management team was reduced by 50% while a four-layer management structure was set; changes were promoted mostly at lower levels so that they can be implemented faster Control systems: a performance scorecard has been established for monitoring performance; also, all outputs are measured. Figure 3b – Cultural web at Faslane for ‘2002-2010’ The key characteristic of cultural web is the following: in the context of the cultural web, change is not considered as feasible unless all aspects of organization’s paradigm are supportive to change (Beech & MacIntosh 2012). In addition, the cultural web promotes the idea that within each organization change is not feasible unless ‘a shared language is adopted’ (Doherty & Horne 2012, p.135). In Faslane, the culture web reveals the following facts: in the past, up to 2001, organizational processes were strictly defined, no flexibility was allowed, while the distinction of roles was quite clear. From 2002 to 2010 a different culture has been introduced in Faslane. This culture was ideal for the promotion of change. In this way, it is derived that the implementation of changes in Faslane could not be achieved without radical changes in the organization’s culture. Figure 4 – McKinsey’s 7 S Framework (source: http://www.mindtools.com/pages/article/newSTR_91.htm) The value of culture in the promotion of change at Faslane could be also made clear through the McKinsey’s 7 S Framework, as presented in Figure 4 above. As in the case of cultural web, the McKinsey’s 7 S Framework would be alternated responding to the characteristics of the organization in two different periods: ‘up to 2001’ and ‘from 2002 to 2010’. The relevant graphs are presented in Figures 4a and 4b below. Strategy: Effort was made to keep productivity high without monitoring costs Structure: The Commodore and his management team had the power to define the rules of work and the organisation goals Systems: Each employee was given specific tasks without the option to take any initiative Style: A rather bureaucratic leadership style Staff: Naval staff and civilian staff worked together for supporting organizational operations Skills: Skills depended on the organizational sector in which each employee was engaged; highly experienced workers have been the high majority of staff Figure 4a – McKinsey’s 7 S Framework, for ‘up to 2001’ period Strategy: Changes have been set as the priority; particular emphasis has been given on the reduction of costs without decreasing the quality of services Structure: The Commodore has kept its powers; four management levels have been introduced for improving control Systems: A general business plan is developed; each employee can decide on the methods used for performing the tasks assigned to him Style: A transformational leadership style Staff: Naval and civilian staff is still used; a reduction of staff, especially naval staff has been unavoidable Skills: Emphasis is given on the skills of employees Figure 4b – McKinsey’s 7 S Framework, for ‘up to 2001’ period In general, the McKinsey’s Framework is used for showing the effectiveness of management, according to the goals and the needs of the organization (Montana & Charnov 2008). In addition, the above Framework reveals the level at which a particular organization is capable of managing change or not (Nijssen & Frambach 2000). In the case of Faslane, the particular Framework reveals the following facts: a) the strategy that the firm followed up to 2001 could not support change; this strategy has resulted to the limitation of employee performance, at the level that each employee felt restricted in regard to his powers; b) also, in the above period, the relationships between employees were problematic, a fact that has been reflected in the practice of the firm’s managers to avoid telling the truth to employees; in such environment, the promotion of change would not be feasible. In the period from 2002 to 2010 the introduction of new organizational structure and culture had a key role in the successful implementation of change. The McKinsey’s 7 S Framework helps to understand that without the intervention of Babcock Marine, the implementation of changes in Faslane would be not feasible. 2.3 Strategic Leadership style that was evident at Faslane during 2002 to 2010 The successful implementation of changes in Faslane has been related to the organization’s leadership style, as this leadership style has been alternated compared to the past in order to meet the conditions in the organization’s environment. The quality and volume of resources available has been another issue that was effectively addressed by the organization’s leader from 2002 to 2010. The strategic leadership style at Faslane from 2002 to 2010 can be understood using the Lynch’s Successful and Effective Strategic Leadership model. The particular model can be used for identifying those elements of the Strategic Leadership style at Faslane that mostly contributed in the success of the change process. According to Lynch (2008) a strategic leadership style can be considered as successful only if the terms related to five elements are met. These elements can be analyzed as follows, using the particular model of Lynch (2008): a) Communication of Purpose: a leader needs to be able to explain to his followers the criteria on which his decisions are based (Van Wart 2005). Only in this way, followers would be willing to support the efforts of the leader to promote change (Van Wart 2005). In the case of Faslane this requirement has been met. Employees have been given clear explanations in regard to the necessity of the changes attempted, a fact that has secured the participation of the employees in all the phases of the change process; b) Support of ethics; the promotion of ethical standards needs to be the key priority of a strategic leader (Lynch 2008). According to the case study, the key reason for the development of the agreement with Babcock Marine has been the promotion of ethics, as it would be related to the reduction of costs at all operational levels; c) Management of HR and of the decision making process; the new management team, as developed by Babcock, has focused on the reduction of staff, where necessary, and the improvement of organizational processes so that the organization is more effective; the limitation of the time required for the review of changes is an indicative example of this practice; d) establishing a competitive advantage in the long term; as noted in the case study, by 2010 the total fleet of UK submarines could use the Faslane base; this achievement is related to the reduction of costs and the change of organizational structure and culture, as promoted by Babcock from 2002 to 2010 and e) Increasing the value of stakeholders; the excellent performance of Babcock in this field is reflected to the extremely positive responses of trade unions and of community to the organization’s change initiatives. 3.0 Conclusions Up to 2001, the introduction of changes in Faslane was quite difficult, a fact that has been related to the refusal of the organisation’s Commodore and of his management team to promote changes, at least in practice. As noted in the case study, the organization’s leader seemed to support changes but avoided to take particular initiatives. In this context, it was only after 2002, when the control of the organization was given to the contractor, Babcock Marine, that the implementation of changes in Faslane was actually realized. In any case, during the change process the need for changes on the structure and the culture of the organization, as in up to 2001 period, was made clear. However, these changes were unavoidable, in order for the relevant project to be effectively developed. The analysis provided above, through appropriate strategic management tools, shows that the requirements of the change process were many, a fact that could possibly set the agreement between Babcock Marine and MOD in risk. However, by following a carefully designed plan, the managers in Babcock Marine have been able to support all phases of the change process leading the organization to a significant growth. 4.0 References Balogun, J. (2008) ‘Exploring strategic change’, 3rd Edition, Pearson Education Beech, N. & MacIntosh, R. (2012) ‘Managing Change: Enquiry and Action’, Cambridge University Press Cameron, E. & Green, M. (2012) ‘Making Sense of Change Management: A Complete Guide to the Models Tools and Techniques of Organizational Change’, 3rd Edition, Kogan Page Publishers Doherty, T. & Horne, T. (2012) ‘Managing Public Services - Implementing Changes: A Thoughtful Approach to the Practice of Management’, Routledge Lynn, C. & Rathbone, H. (2012) ‘Ready For Change?: Transition Through Turbulence to Reformation and Transformation’, Palgrave Macmillan Lynch, R. (2008) ‘Strategic Management’, 5th Edition, Prentice Hall Miner, J. (2007) ‘Organizational Behavior Four: From theory to practice’, M.E. 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