Unit 710 Organisational Change Strategies

Sample Answer

Organisational Change Strategies

Introduction

In today’s fast-changing business landscape, organisational change is no longer optional. Companies must constantly adapt to shifts in technology, consumer expectations, and global competition to remain relevant and profitable. The purpose of this essay is to explore how organisations plan, lead, and manage change effectively at a strategic level. The discussion focuses on Tesco PLC, one of the largest retail chains in the United Kingdom, which has undergone major transformations in structure, culture, and leadership style to remain competitive.

This paper analyses the need for change at Tesco, evaluates key change management models, examines leadership’s role in driving transformation, and identifies the main barriers faced during implementation. Finally, it outlines a strategic change plan and discusses methods to review and evaluate outcomes.

Analysing the Need for Organisational Change

Change within Tesco has been shaped by a combination of internal and external forces. The retail industry has faced major disruption from online competitors such as Amazon and changing consumer preferences for convenience and value. Tesco’s need for transformation became urgent after a period of declining profits between 2014 and 2016, a high-profile accounting scandal, and growing criticism about its corporate culture (Wood, 2017).

External Drivers of Change:

Key external factors include technological innovation, shifts in consumer behaviour, and economic uncertainty following Brexit. The rise of e-commerce and mobile shopping apps forced Tesco to integrate digital technologies into its operations. Environmental concerns also pushed the company to adopt more sustainable practices, such as reducing plastic waste and sourcing responsibly (Tesco PLC, 2023).

Internal Drivers of Change:

Internally, Tesco faced cultural and leadership challenges. A lack of employee engagement, inefficiencies in store management, and poor communication between departments limited productivity. The arrival of CEO Dave Lewis in 2014 marked a turning point, as he introduced a new strategic focus on simplification, cost-efficiency, and restoring trust among employees and customers (Smith, 2019).

In short, Tesco’s need for change stemmed from the demand to rebuild its reputation, modernise its operations, and realign its culture with a customer-first mindset.

Evaluating Change Management Models

Understanding and applying established change management models helps organisations structure and monitor the change process effectively. This essay compares Lewin’s Change Management Model, Kotter’s 8-Step Model, and the ADKAR Framework, exploring their relevance to Tesco’s transformation.

Lewin’s Change Model (1951):

Lewin’s model involves three key stages: unfreezing, changing, and refreezing. It provides a simple, structured approach. At Tesco, the “unfreezing” stage occurred when management acknowledged declining profits and recognised the need for new strategies. The “changing” phase included staff restructuring, digital investments, and new customer service standards. Finally, the “refreezing” stage came as these practices became embedded in the corporate culture (Cummings et al., 2016). While Lewin’s model offers clarity, it can oversimplify modern change processes that are continuous rather than linear.

Kotter’s 8-Step Model (1996):

Kotter’s approach is particularly suited to large-scale change in complex organisations like Tesco. His model emphasises creating urgency, building a guiding coalition, and communicating a clear vision. Tesco applied similar principles by setting clear goals to regain customer trust and establishing leadership teams across departments to drive transformation. Regular communication campaigns kept employees informed about progress. Kotter’s model also highlights the importance of sustaining momentum, which helped Tesco maintain focus during the restructuring process (Kotter, 2012).

The ADKAR Model (Hiatt, 2006):

ADKAR focuses on individual transformation through Awareness, Desire, Knowledge, Ability, and Reinforcement. Tesco used training and engagement programmes to build awareness and ability among staff. The ADKAR model is especially relevant in addressing employee resistance and ensuring behavioural change.

Overall, combining Kotter’s structured framework with ADKAR’s focus on employee engagement provides a balanced, practical strategy for Tesco’s continuous transformation.

Assessing Leadership Impact

Leadership plays a central role in shaping how employees respond to change. At Tesco, CEO Dave Lewis demonstrated transformational leadership, focusing on motivation, trust, and clear communication. He redefined the company’s vision around simplicity and customer focus.

Transformational leaders inspire employees to align their personal goals with organisational objectives (Bass & Riggio, 2006). By reducing layers of management and promoting open dialogue, Lewis encouraged accountability and collaboration. For instance, he introduced “Listening Sessions” where employees could share operational challenges directly with senior management.

However, effective leadership during change also requires emotional intelligence. Tesco’s leadership team worked to rebuild morale after job cuts and restructuring by introducing new reward systems and focusing on staff recognition. These actions aligned with Goleman’s (1998) concept that emotionally intelligent leaders are more successful at managing change, as they understand and respond to employee emotions during uncertainty.