In your first submission to the Module Project requirements of this module, you produced a proposal that
would identify a relevant change driver impacting upon an organisation with which you are familiar.
The proposal would:
�Suggest a suitable change process that would appropriately respond to that change driver
�Identify likely stakeholder reactions to the change process you advocate
�Describe how an existing organisational design might be amended to best accommodate the planned
change.
In this week�s activity, you will design an expanded change management framework to support your
intended change process. This will, in turn, function as a base for the final change management project
plan, due in Week 7.
ODC PROJECT WEEK 5 2
Organizational profile
The organization I intend to use in identification of a relevant change driver affecting it is
TLC Fashion Store. The real name of the company is not applicable to avoid misinterpretations.
TLC Fashion Store is located in Oxford Street, London, and its core business is the sale of cloths
and accessories. The company is strategic in offering high-end clothes, women shoes, jewelry,
handbags, and also sunglasses for both men and women. As a small sized firm, the firm targets
young adults between the ages of 18 to 35 with income averaging $30,000-40,000. Currently,
TLC store has 11 employees with the number expected to increase over the years.
Organizational structure
TLC configures its resources, financial, human, and physical, in a way that it meets the
demands of the industry and its stakeholders (Cavalcante 2014). Financial resources are handled
by the accounting department, and continuous audit is carried out to ensure that the existing
funds such as cash balances, working capital, and debt; and the potential of raising extra funds
from investors and listing of the firm in Stock Exchange are consistent with the firm’s strategies.
Human resources are managed by HRM manager who is mandated to recruit, select, and train
employees to match to the needs of the various job categories. Finished products are bought from
suppliers and stored in-house while the marketing and logistics department is given the role of
warehousing, distribution, and advertising the products to potential customers.
Each department is managed by a manager who reports to the executive director. The
executive manager is responsible for the design of strategic vision of firm including change
processes. He then decentralizes operational decisions to the departmental managers. Since it’s a
small firm, the CEO handles the corporate vision of the firm and the departmental are mandated
ODC PROJECT WEEK 5 3
with decisions specific to their functional units, which have to be in line with the overall firm’s
strategic vision as illustrated in the diagram.
Source: Cavalcante, 2014.
Change drivers
TLC Fashion Store uses the traditional brick-and-mortar model of carrying out business.
Customers have to come to the store to order and purchase products. With the evolution of
technology and the rise in consumer bargaining power, it is impeccable for the firm to adopt the
online business model. Apart from quality, affordability, and differentiation, modern consumers
prefer time and place convenience (Reeves and Deimler 2011). Thus, the need to increase
consumer’s value through the offered products is a significant change driver to TLC Company.
To align the firm with the vision of becoming multinational, it is necessary to change the current
organizational structure, which, according to the principle of punctuated equilibrium, will give
the company a solid foundation in case of random market changes. The firm’s vision is clear and
demonstrates the ability to perform tasks in different ways to achieve different results or the
same results sustainably. Therefore the firm is in need of change due to the realization that
customers are the most paramount stakeholders, and their changing needs have to be sustained.
Moreover, the transformation is a long-term event that should be carried at the onset to avoid
incurring heavy expenses, and if done at the right time, it is possible to align other stakeholders
ODC PROJECT WEEK 5 4
without much resistance. A firm aligned with the principle of punctuated equilibrium has
sustained growth amidst periods of changes, and since TLC’s financial, human, and physical
resources are strategically aligned and equipped to its vision, it is possible to initiate a change
without disrupting its core structures.
TLC is supposed to combine the conventional model with the online business model so as
to operate a multi-channel framework so that consumers can use either of the models or combine
both of them at their convenience. An online platform allows consumers to order, purchase, and
make payments online using their phones and other computerized gadgets (Mayfield 2014). It is,
therefore, recommendable for TLC to institute an online model so that customer’s value is
increased.
Key stakeholders
Customers, employees, shareholders, creditors, suppliers, employees, and the government
constitute TLC’s stakeholders. All of these stakeholders are likely to be affected when TLC uses
a multi-channel model to run its operations. Customers value is going to be increased since they
will be able to purchase and pay for products online using their phones. Employees especially in
the logistics, accounting, and sales department would have to be trained on the model to
maximize its profitability and use. New employees may be added in the IT department or tasks
added to some of the employees which would involve additional incentives to motivate them.
Thus, human resource and operational management would have to assimilate the new model in
the day to day activities of the firm which would require a change management program for the
employees to understand its importance. Executive manager is endowed with the mandate of
facilitating the implementation and maintenance of change process thus his he would also be
ODC PROJECT WEEK 5 5
impacted. Shareholders would likely get an increase in dividends and the firm’s share price, and
public confidence would increase leading to sustainable growth.
Most of the stakeholders are likely to react positively to the change initiative with the
exception of competitors who are already using the online model. Also, some employees may not
perceive the change positively if extra tasks are added thus requiring the management to carry
out extensive change management education to ensure that all employees are in line with the
change (Muchanan 2011). Some questions that would be asked by employees is how the change
would impact their roles in the firm, and customers might seek to know whether the price of
goods will vary depending on the channel used to purchase them. For such, it is important to note
to the employees that their roles may change depending on their functional unit; for instance,
sales team would have to include online marketing and selling of the goods in their assignments.
Price for goods may have to include distribution costs depending on the location of the customer.
The change initiative involves the formation of a multi-channel business model that
combines the mortar-and-brick concept with the online platform. The change is aimed at
increasing customer’s value and aligning the firm with the principle of punctuated equilibrium
which will make it grow amidst market changes at a sustainable level. The initiative is
categorized as an e-governance approach that encompasses all the functions of a firm to produce
positive results. The success of the initiative will be measured by the changes in sales level,
employee productivity, and the overall growth of the firm. To ensure the initiative is successful
and aligned with the goals of the firm, ethical considerations that need to be considered include
the provision of correct information about a product to customers, safeguarding customer’s
confidential information while doing transactions, and maintenance of high levels of integrity.
ODC PROJECT WEEK 5 6
References
Banks, S 2014, Drivers of change: Retail industry in Australia. SIES Journal of Management, 14,
1, pp. 3-8, Business Source Complete, EBSCOhost, viewed 29 August 2016.
Buchanan, DA 2011 Reflections: Good practice, not rocket science – understanding failures to
change after extreme events. Journal of Change Management, 11(3): 273-288
Cavalcante, SA 2014, Designing business model change. International Journal of Innovation
Management, 18(2): 1-20
Mawby, E 2011, How to succeed in the retail industry. Journal Of Business & Retail
Management Research, 6, 2, pp. 1-12, Business Source Complete, EBSCOhost, viewed 27
August 2016.
Mayfield, P 2014, Engaging with stakeholders is critical when leading change. Industrial and
Commercial Training, 46(2): 68 – 72
Overstreet, J 2013, What’s driving change in retail? Retail insiders on the evolution of the
industry. Ekonomski Anali / Economic Annals, 54, 209, pp. 105-127, Business Source
Complete, EBSCOhost, viewed 28 August 2016
Reeves and Deimler, 2011. Adaptability: The new competitive advantage. Harvard Business
Review, 89 (7).
