Managing Change Issues - Case Study Example

1. Executive Summary There have been overlapping roles and rights of different stakeholder as far as the operations of AgeCareFirst (ACF) are concerned. This analytical paper involves impending resolution of issues concerning to stake holding in ACF management. The central focus is on change in the organizational holding, with respect to management, security and development. This paper carries out the stakeholder analysis and then highlights their respective involvement in different aspect of project implementation. Differences in perceptions are reasons why stakeholder analysis before interaction at all levels is so important. Understanding of this interpretative element needs to be fed into the governance for regional development. 2. Introduction ACF is a not-for-profit organization working for elderly people. It is a 10 year old and has 70 staff members. Most of the staff members are locals. The non traditional business services in which ACF is involved are home nursing, respite care, meals, cleaning services, transport, rehabilitation services and recreational activities. As a matter of fact, ACF has a reputation for providing good quality, cost effective and professional service. Taking into consideration the ever increasing demand of such services, it is now trying to diversify out to provide some of these services to other disabled members of the community who are not aged. Right now the services are heavily subsidised on the account that resources are provided by the parent organisation which in fact is a large religious organisation. It is an endeavour of the organisation to segregate different business unit strategically, of which ACF is also a part. This will make ACF as stand alone organisation which will become a profit centre from being a cost centre. But there seems some apprehensions among the staff member in this transition from cost to profit centre. This includes lack of support from parent organisation. 3. Expected outcomes Considering the scenario presented in the case study there are three exhaustive outcomes possible. They are: ACF remains with church as its strategic business unit which will be self financing profit centre. ACF is sold off to altogether different company and its fate to be decided by the purchasing organization. Though bleak but last option can be that ACF continues to be a cost centre being charity run by the parents. The first option is what the staff likes the most and is best for all the parties involved. Thus this assignment will put forward analysis and arguments to achieve this as a goal. To ascertain this goal, a proper stakeholder and governance analysis has to be done. This wills corroborate to what can be the boundaries for stakeholders’ influence or what can be realistic for stakeholders to demand. 4. Identification of stakeholders The following is the stakeholder matrix which will depict the various stakeholders, their interests, influences and capacity as far as this project is concerned. Stakeholder Categories Relevant Stakeholders Interests in relation to policy (effects on / effects of policy) Influence on policy (H=High, M=Medium, L=Low) Capacity to participate Government Government & Concerned Ministry Regulatory compliance High As Business regulatory Body Implementing agency staffs Parent organization and ACF management Project planning and implementation High As Authority Organized Interest Groups Staff of ACF Prolonged and beneficial employment with parent organization Medium Supporters and executioners Civil Society Local indigenous communities, Social well being Medium As Intended Beneficiaries and Adversely Affected Parties Financial sources & Donors Banks & Investment firms along with parent organization Financial Incentives High As fund raiser 5. Stakeholders’ map/ management sheet 6. Communication Chart Forward Communications Feed back and reporting 7. Scope of Analysis (Aim) The scope of this stakeholder analysis is explicit by design. The main aim or the purpose is to recognize and depict the players that this project involves. The identification has a connotation of varying intensity of influence over the project completion. By investigating the individual interests and influences, this analysis will portray the zone of influence of people, groups and organizations that should be taken into account when conducting impact analysis for this project. 8. Context of Analysis Context of this analysis is concerned with the effected and effecting stakeholders. Those who are in opposition as well as those who are in favour are both in the target frame of this analysis. It can be also used to evolve the financial and revenue model of the concerned project. 9. Significance of Analysis Even and flawless planning of the project, layout of individual roles and duties and the limitations, is what signifies this project. Once done, the proper execution has a very high probability of success and desired goal can be achieved. 10. Issues involved Change Management: This involves staff psychology which needs critical analysis as their attitude needs to change when ACF will itself change from cost centre to profit centre. For an example right now they are not that competitor and customer oriented. Neither have they had any concern for profitability. This need to change. Cost benefit analysis: This involves the financial perspective of the services being rendered by ACF. The parent needs to analyze the resources which it must provide and then it should also consider the extent of returns that it can expect. This will need a through market research to be undertaken and then must be backed by customer research and competition analysis. Determination of selling off price for ACF: In case the parent needs to sell off ACF in that case it should be ready with a negotiable price tag. Moreover the selling off per se will be difficult with just a tag of charity organization. Thus ACF need to be branded in a way that it should attract suitable and lucrative buyers. Human resource: Whether ACF remains with parent organization or it is sold off to different party, the fate of human resource need to be analyzed. The conversion of ACF into a profit centre itself needs fresh recruitment, and training of the staff. Moreover a new set of performance based incentive also need to be devised so that the financial goal are met effectively and efficiently. Trade off between service and profit: ACF in its heart is a social service organization. The priority must not be switched from service provision to profit making. Leadership: As a new CEO is going to be appointed there are issues which need to be analyzed pertaining to leadership management and succession planning. 11. Risks involved A project by definition ahs some inherited risks. Though these risks can be identifiable sometimes. Proper determination of risk and its involved effects can help the project mangers to devise a mitigation plan. As far as ACF is concerned the project management has following risks involved: Failure of staff to work under pressure to register profits. The very core of service provision may take a back seat if returns are given undue priority. Lack of support for ACF from parent organization. Lost market because of changed price quotes. No buyer for charity organization. High initial cost for training and staff development. Project scope creep because of unrealistic delineation of the project per se. Risk of erroneous business forecasting. Risk involved with poor communication channel within the organization. Risk involved with poor leadership as a new CEO is being appointed. Conclusion & Recommendations There is a very intricate relationship between different parties involved in this project. They have different vested interests and different influence. They need to act according to their capacity so that the project can achieve its goal of sustainable development. The authority on this project should be passed down whereas the information should be send upwards. This feedback mechanism will insure that all the stakeholders are interacting in a way which will lead to the achievement of the goal. A proper gap analysis should be done at every stage of the project and the concerned stakeholders should be held responsible if at all there remains any gap in performance. Read More