Managing Organisational Change in Virgin Blue Holdings - Example

Executive Summary Virgin Blue Holdings while looking to change needs to devise strategies that enable them to make the changes as required. This makes it important that businesses look to change the business as Virgin Blue by ensuring the changes will be able to improve their business and ensure better returns for the organization. Virgin Blue while looking to change needs to change as it will help to improve the business as seen from the SWOT analysis. Virgin Blue thereby needs to look towards understanding the change by identifying the cost benefit analysis which will help to deal with the required changes efficiently. Also, developing a communication plan and making the employees understand the benefit of the changes will help Virgin Blue to ensure a strategy which ensures proper development. This makes it important that Virgin Blue looks towards understanding the educational plan, communication plan and evaluation plan. By ensuring the changes Virgin Blue will thereby be able to ensure the changes and by implementing the changes the business will be able to ensure better profits and market share over a long period of time. Contents Introduction 3 Purpose of the report 3 Need for change 3 SWOT Analysis 4 Cost Benefit Analysis 7 Barriers to change 7 Change Management Project Plan 9 Communication Plan 11 Recommendations 12 Conclusion 12 References 13 Introduction Changes are a part of every business which makes it important that Virgin Blue looks towards changing their business is such a way that it helps to improve the business productivity. Changes are important as ensuring the required changes help the business to keep abreast with the changing environment which leads towards growth in business. This report thereby looks into cost benefit analysis, the barriers to change, the action plan, the communication and the evaluation plan. This will help to evaluate the manner in which Virgin Blue is able to benefit and ensure better returns over a longer period of time. Purpose of the Report To identify the reason Virgin Blue needs to change To conduct a SWOT analysis which will help to understand the benefits that the change will provide To identify the different resistance to change so that a cost benefit analysis can be done and areas of improvement could be understood To develop a communication plan, and action plan which will facilitate Virgin Blue to make the changes Need for Change The case highlights that Virgin Blue is looking to change by having new uniforms, business class products and new airport lounges so that more corporate travelers are ensure better opportunities of business. To ensure better business Virgin Blue is also looking towards new and better marketing campaign which will help them to improve their business by 10%. The reason for Virgin Blue looking to change can be gauged on the following reasons Firstly, making the required changes through improved marketing campaign, competitive pricing strategy and better airport lounges will help to attract the leisure as well as the business class which will help to improve the business by 10% Secondly, the changes is required as competition has resulted in a smaller market share and being able to focus on important areas will help to improve the market share and the overall business Thirdly, competitors in the market look towards same competitive pricing strategy so being able to work on the other areas and improving the manner in which the services are rendered will help to attract people from different section of the society and ensure better satisfaction level. Lastly, with changing technology it is important that Virgin Blue looks to accompany the changes as it will help to improve the quality of service which will thereby help them to ensure better business. SWOT Analysis This analysis will help to understand the internal strengths and weakness and working upon which the business will be able to make the required changes which will facilitate Virgin Blue in making the required changes that the business is looking forward Strengths Virgin Blue has a good brand image which has enabled them to be a regular carrier and ensure that they are able to generate good business over a period of time Virgin Blue has ensured a strong pool of employees that are capable of associating them with the company and having proper uniforms will further help in this direction The willingness of the employee in understanding the importance of changes will make it easy to implement the changes and ensure that the business is able to gain maximum advantage due to the changes Weakness The business faces stiff competition from other players performing in the industry as all players look towards offering competitive rates which has thereby intensified competition and made it difficult to distinguish the carrier based on services The organization has not been able to upgrade the lounges and the services according to the changing technology which has pushed the company on the back foot and requires some strategies to combat it The lack of intensity on the part of Virgin Blue to offer products and services which multiplies the satisfaction value for the customers has resulted in a lower market share and profits Opportunities Making the required changes through improved marketing campaign, competitive pricing strategy and better airport lounges will help to attract the leisure as well as the business class which will help to improve the business by 10% Providing specialized serivices to improve the quality of service being offered to the customers so that their satisfaction level multiples and the customer opts for the same carrier again and again. To change with changing technology so that the quality of service improves which will thereby help them to ensure better business and help Virgin Blue over a longer period of time Threats Virgin Blue faces threats from other players in the industry as the offering and services will be copied in a short interval of time leading towards less differentiation and similar offering by all The chances of decrease in the market share if employees don’t accept the change and are reluctant as it will affect the business productivity Cost Benefit Analysis Virgin Blue needs to look at the manner the changes will benefit them by analyzing the cost and benefit involved. Virgin Blue by making the changes will be able to improve their business and ensure higher market share. Also improving the business will ensure better productivity and tapping the different sectors where the airlines don’t perform. This will thereby help to increase the penetration level and ensure better business opportunities. Virgin Blue can look towards that benefit through improved marketing campaign, competitive pricing strategy and better airport lounges will help to attract the leisure as well as the business class. This will help Virgin Blue to develop a strategy that will help them to move ahead and differentiate their services from the competitors. The cost which Virgin Blue has to incur is to make the employees and the management understands the importance of change so that the business is able to benefit over a longer period of time. Ensuring that the changes provide the employees the required authority and responsibility will help them to carry out their duties and ensure maximum growth opportunities for the business. Barriers to Change Virgin Blue while looking to accomplish the changes that will facilitate the growth of their business will face objections and barriers from different areas which need to be dealt in a proper way. Some of the barriers that Virgin Blue has to encounter are as follows (Chew, Cheng & Petrovic-Lazarevic, 2006) The major hurdle for Virgin Blue will come from employees which makes it important that Virgin Blue looks to make the employees understand the manner in which the change will benefit them by changing the manner in which the work is carried out (Albert, 2010). This will require training both on and off the job so that they employees understand their role better The other hurdle for Virgin Blue is the difficulties which they will face while changing the system as it is inherent part of the process (Kotelnikov, 2010). Since, Virgin Blue while changing will have to understand the smaller difficulties which they will have to face and need to develop a strategy before hand which allows the process to pass with limited problem. Virgin Blue will also find it difficult to make the employees understand that the changes won’t affect their working pattern by resulting in job loss. The employees need to understand that the changes would in fact help them to find their correct job position in the organization and lead towards their carrier development (Dargan, 2009) Virgin Blue would also face difficulty in executing the changes on the scheduled time plan as restrains and problems from the different areas will take time to be solved. This makes it important that a properly designed scheduled plan is made so that Virgin Blue is able to change at the desired time which will ensure maximum business opportunity for all Virgin Blue thereby needs to look at the above stated barrier carefully and need to design a mechanism which will help them to deal with the changes and ensure an opportunity of growth for the business. Change Management Project Plan Virgin Blue has to ensure that the change management plan developed by them is understood by all and the process passes smoothly so that everyone associated with the organization benefits. For this Virgin Blue needs to follow the following steps Setting Objectives: Virgin Blue needs to clearly state the objective that the business is looking to achieve through the changes and also have a time frame designed for each so that efficiency can be ensured. This can be as Ensure that the business is able to implement the changes within a period of 6 months so that they are able to gain productivity in business Provide training to the employees both on and off the job so that customer satisfaction can be multiplied and the business is able to deal with the contingencies better Ensure increased profitability by at least 10% due to the change they are implementing Ensure better services and products so that customer looks to avail the services of Virgin Blue again and again which will help the business to grow and ensure loyal customers Strategy for Change: Virgin Blue needs to understand the fact that changing will help their business and help them to keep abreast with the changes which will act as a differentiator between Virgin Blue and others. This will also act as a point where the customers are able to get better services IT Provider: Virgin Blue needs to engage into an agreement with an IT provider who looks to provide the required changes so that the business is able to deal with it in a proper way and ensure maximum efficiency for the employees. Allocating Resources: Virgin Blue needs to allocate the funds for various purposes so that the business is able to get the required returns they are looking for and will help to develop the business accordingly This can be achieved in the following manner Providing the required training to the employees both on and off the job so that they are able to understand the customer requirements and ensure better delivery of services. This should be achieved within the period of changes so that the business is able to integrate the changes easily Allocate the funds for different purposes so that having specialist in different areas helps Virgin Blue to make the required changes and ensures that the employees are ready to take on the challenges for the future. Develop Communication Plan: Virgin Blue needs to develop a communication plan which looks towards spreading awareness among the employees so that they are able to undrstand the importance of change and implement it accordingly. Develop Educational Plan: Virgin Blue needs to develop an educational plan where they look to educate the employees from week 1 and should continue till the changes are implemented by the business Develop Reward Program: Virgin Blue needs to develop a reward program where they look to provide incentives to employees that are able to understand and implement the changes in the correct and desired manner Evaluation Plan: Virgin Blue finally needs to develop an evaluation plan which will help them to check the manner the changes have benefitted them and will thereby ensure growth for the business (Evaluation Plan, 2010). Communication & Education Plan Virgin Blue needs to develop a communication plan where they look towards explaining the objectives and the results they are looking to achieve by fixing the responsibilities on the employees (Mayhall, 2010). This can be designed as under Firstly, Virgin Blue needs to communicate clearly to the employees they want to achieve which will help to ensure better productivity and clarity of goals for the employees Secondly, provide training to the employees both on and off the job so that the business is able to work effectively on the growth of the business Thirdly, provide the employees with the different responsibilities and authority which will help them to carry out their function and ensure higher productivity for the business Recommendations Virgin Blue can look forward towards ensuring that they go ahead with the change plan as it will help their business. The changes will result in better facilities for the customers and will also help to improve the profits. This will also translate into increased market share and will help the business to deal with it in an effective manner. Virgin Blue while looking to change the business needs to make the employees understand the importance of changes and designing a program which facilitates the required changes can ensure that the business provides the required profitability they are looking at. Thus, the change management plan highlights an excellent opportunity for Virgin Blue and being able to work on it will improve productivity and business for the airline operator. Conclusion Virgin Blue thereby looking to improve the productivity of the business and ensuring maximum customer satisfaction needs to develop a strategy of change. This will involve educating the employees about the importance of change and ensuring that the changes in done within the stated time frame. Further, strategies need to be developed to ensure that the barriers are dealt in the most positive manner so that the changes that Virgin Blue is looking forward to can be achieved. This will help to improve the way business is conducted and will help Virgin Blue over a long period of time References Albert, F. 2010. Employee Resistance to Organizational Change. Winthrop University Chew, M.M.M., Cheng, J.S.L. & S. Petrovic-Lazarevic. 2006. Managers’ Role in Implementing Organizational Change, Journal of Global Business and Technology, 2 (1), 23-29 Dragan, C. 2009. Factors that causes resistance to organizational change. Word Press Evaluation Plan. 2010. Evaluation Plan. Retrieved on March 25, 2012 from www.learnersassociate.net Kotelnikov, V. 2010. Resistance to change. Ten 3 Business e-coach Mayhall, R. 2010. How to develop a communication plan. The Ney York Times Company Read More