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Application of change models in SMEs

College: EDENZ Zealand Colleges

Task:

Identify, analyse and apply change models and processes to an entity undertaking change.

Answer

Introduction

In this assignment, it is carried out about certain changes that help in the development of the existing small medium enterprises (SMEs) in New Zealand. Moreover, it is focused about the main change process models that are mostly applicable at SME level. In this assignment, it has been focused about the usefulness of the process model changes that helps in the huge progress and development of small business. In this context, Pita Pit - a food restaurant company is taken and two of the Triple Bottom Criteria is taken to evaluate the change management models in favor of the change in booking system of the organization.


Task 1:

Comparing the main two changes process applicable in the SME level

The change process models are followed with the framework of the models based on small medium enterprises in the company of Pita Pith. The change process models in building the model of development of the small business. The change process models helps in bringing the changes that helps to make the exact framework with the flow in action and movement. Moreover, the process model provides the paths, which are followed to secure the future condition of business (Radineh, 2017). These paths are followed by proper designing and securing the condition of future. While carrying out the changes process, there are requirement of transformation that are used in following the path. The main causes of the change process model are based on the transformation changing.  Moreover, leaders need an effective changing process model theory to get the exact transformation. These models are applicable for the contents and people at the time of using this theory. The successful change model theory is based on the dimensions that are made by the effective change in leadership. Leaders can only the ideas of transformation that reflects the main principles of the model. The change process model helps in thinking of the betterment of the discipline (Cramer, 2013). Three models that help in the operation of the company follow the change management models. These are as follows as-

a)  Kotter’s 8 model change.

b)  Lewin’s change in the model of management

c)  McKinsey 7-S Model

This entire model helps in bringing changes in the management and better working of the company. Comparing and contrasting the changes that helps in the changing model theory with the McKinsey 7-S Model and Kotter's 8 Step model changes. 


Kotter’s 8 Step model change:

The Kotter’s  8 step changes help in building the changes followed by the 8 steps theory. John Kotter of Harvard University (Burke & Noumair, 2015) creates this model. This models helps in building the changes that are brought by the leaders in the organization. These 8 steps are followed to reach the successful carrying out of the model. 

  1. It is based on creating the short goals in achieving the success of company. 
  2. In order to make the change there is a high requirement of communication among the employee.
  3. There is a high requirement of changes that helps to increase the urgency.
  4. In order to complete the task, a highly dedicated team is required.
  5. The change might be followed as permanent things that would help in the growth of the Pitha Pith Company.
  6. The employees need to make the changes as their ability.
  7. The staffs might stay persistent at the time of doing of task.
  8. These changes in the model might build up the Pitha Pith vision, for long-term progress of the firm. 


Kotter’s 8 step models helps in making the changes followed with the certain advantage and disadvantage. The advantages of these models are followed as:-

  1. This model planning process is conducted by the easy eight steps that helps the company Pitha Pith to bring a high success. 
  2. In this model, transition is made to carry the better working of the model. 
  3. This model has been focused on accept and prepare of changes, not based on the changes on the actual level (Kuipers et al. 2014).

There are certain disadvantages that are followed as-

  1. All the eight steps need to be followed accurately.
  2. In order to carry out this process model, takes a lot of time.


McKinsey 7-S Model:-

This model provides the better approach for the betterment of the company. This change model is followed by seven factors that help in the operation of the company. These are as follows:-

1. The employee's skills that is highly required to carry out the operation in Pitha Pith Company.

2. Requirement of employees that helps in managing the work at a given time

3. In order to perform the better working there is a requirement of sharing of values.

4. The exact performance depends on the set strategy that are made by the management.

5. The proper style helps in making the better working among the employees. 

6. In order to perform the better performance, the company needs to make the good structure that helps in the growth of Pitha Pith.

7. The proper system of the company helps in building the prosperity of the firm.


There are certain advantage and disadvantage that are followed in the McKinsey 7-S Model. The main advantage of the McKinsey 7-S Model is as follows:-

1. This model provides a guidance that helps in the change of models.

2. This model provides an effective method to understand the main changes that are required in the model planning.

3. All the models parts are managed in the proper manner (Cramer, 2013).


There are certain disadvantages that influenced in model theory. These are as follows:-

            1. The basic differences are completely ignored at the time of making of models. 

            2. This model is based upon the complex process. 

            3. While carrying out the model, if one part is changed then the total parts needs to be changed. 

 

Explaining the one model of this level better suited in the company

There are several change model theory that are applied in the betterment and growth of the firm. The most successful model theory that helps in the change of the company belongs with Kotter 8 step model planning (Hornstein, 2015). This change process is the most important things that help to build the successful change of the company. The 8 important steps that assist in the effective change plannings follow this theory model. Moreover, these eight steps makes a huge change in the company's management. The company Pitha Pith provides the quick restaurant by serving their foods among the customers.  In order to increase, the growth of Pitha Pith there is huge requirements of Kotter 8 step models. This model would provide a new direction of service of the food especially sandwiches among the customers. While carrying out this model, helps in the development of business in small medium enterprises (Cooney, Pernick, Rice & Monago, 2016). Moreover, by carrying out this model eight steps properly assist in the progress of the business planning. As the 8 steps of Kotter is followed as:-


1. Creating of vision statement that helps in changes:-The vision statement assist in determining values that makes in changing the ideas. Moreover, this creates in creating a high strategy to execute the vision of the firm. The exact company vision helps in making the changes that helps in making a huge effort for the development of the Pitha Pith. The Pitha Pith Company could use this vision statement to make a huge change for serving the food among the customers. The vision develops the strategy that helps in implementing the better performance of the Pitha Pith firm.


2. There is a need for the establishment of high urgency:-The establishment of the high urgency assists to examine the market and to know the market competitiveness. This creates the huge change for the catalyst that appears in the company. 


3. Empowering the act in vision statement:- The vision acts removes the obstacles that rises at the time of changes made by the company (Small et al 2016). Moreover, this creates in changing the structure or the building up of systems that helps in the growth of the firm. The vision statement helps in encouraging new ideas and planning that help in making of proper action and carrying out certain activity. The empowering of the vision statement helps in Pitha Pith firm to spread their influence on the foods.  


 4. Building up of powerful coalition:- The building up of powerful coalition assist in making of changes in the group or communities. This makes in assemble of the community that are influential for making the changes in the organisation. In order to form powerful coalition there is high requirement to develop new planning in the strategy to achieve the company's vision.    

 

5. New Approaches:- In order to make the changes, there is a huge requirements of making new approaches. These new approaches in Pitha Pith company assists in making new connections with the employee and management. This development of the new approaches helps in building new channels that assist new succession and progress of the working of leadership. The new approaches help in the development of firm and assist in making huge success. 


 6. Planning to build up the short winning:- The exact planning helps in making the creating a huge improvement of the working plan in Pitha Pith company. This planning assist the leadership of the firm to make the working more clearly set in order to increase high progress of work among the staffs (Ceptureanu, 2015). This planning involved with providing motivation among the workers. These includes with rewards, incentives etc provided by the management followed by the working of employees. This helps in providing a huge change of working in the Pitha Pith Company and provides motivation among the workers to serve the food products more efficiently in the restaurants. 

 

7. Properly communication of vision statement:- The company’s vision statement could be spread properly by the management among the staffs. By communicating the vision statement among the employees helps in mitigating the communication gap. All the new modes of communications need to adopt by the firm to reduce the problems of communication. This problem creates a huge problem at the time of working in the company. In this firm of Pitha Pith, a high quality of communication is required to communicate among the customers, visiting regularly in restaurant.


 8. Improvement in the structure:- There is a high requirements of changes at the time of making certain change of the systems. These changes are used at the time of improving the process of hiring, development among the staff. This includes with change in planning of the set policy made for the development of company structure.

This eight steps of Kotter helps in the development of the small medium enterprises business especially for Pitha Pith restaurants. 


Key performance areas of the SME from specific Triple Bottom Line criteria

Pita pit provides excellent food facility with all clients all over the globe. The above change management process includes Kotter’s 8 step model and Mckinsey 7-S model with the synchronization of Triple Bottom Line. Triple Bottom Line is an accounting framework inculcating three areas of performance mainly social, environmental and financial (Nielsen et al.  2013). The TBL has three Ps: people, profits and planet. The following two models are taken from the Triple Bottom Line criteria to analyze the changes in management of Pita Pit in order to increase its organizational competency.


Social Impact: 

Pita Pit is in the way to develop an online booking system to take orders from all round the world in order to increase the volume of orders. The main analysis lies in the small business changes that bring transitional market recovery for overall development purpose. In this context, the required area for the changing strategy of the business is highlighted. Pita Pit is a major contributor in the restaurant industry and to gain a good social and economic stand in the market as well as society, the company wants to digitalize their products through internet and sell it worldwide. The company wants to develop a new aspect comprising of online booking and door-to-door delivery. The online delivery module can enable the company to endorse its products throughout the globe. Company can take orders online and initiate the business circle of global clients to increase the productivity (Frankenberger, Weiblen, Csik, & Gassmann, 2013). 


Implementation of the following change requires the consent of clients and the inside management of the company. The management and the authority need to take care to ensure the smooth implementation of the change and that the business runs same before and after the change. The Social Impact of the following change is linked with the influence of the change on the prospects of business. The business changes are linked with several technological changes, implemented to reach a broader range of society. The change can be maintained with accurate market standards, if it follows efficient communication with the customers. The Social position of the company is a factor of better quality service. The company can thrive in the global market only if it acquires proper changes required to evolve as a business entity in the social market. All these changes need to be adopted to expand their market and popularity in the market. The company Pita Pit implemented stuffs to increase market compatibility with lower operational cost and expansion of business through Internet. The main aim is to focus on the organizational transformation with profound leadership management to increase the resistance of the employees. The Kotter’s 8 model can be used to adopt Organization Development with value based collaborative process and multi-organization system. Kotter 8 step model helped to visualize the specific advantages and disadvantages of the vision of change and its subsequent implementation. It will totally lead to a newer dimension of customer acquisition combined with sustainability and reliability.

 

Financial Impact: 

The easy going of the project by the undertaking of budget allowance influences a great part of the decision. Most of the board members agreed in the incorporation of the change in organizational behavior (McDonnell & King, 2013). The analysis is based on the evaluation of theory based on Kotter’s principle on the financial aspect. The company Pita Pit wants to introduce a new online book system for the sale of foods and beverages and to take a large number of orders. As shown in the accounting framework there are eight steps required to determine the consequences of a particular change. Some of the impacts of the application of Kotter’s model in the following aspect are:


Establishing a Sense of Urgency:

The organization behavior of the company Pita Pit in response to a particular change in business process is marked by high uncertainty level. Kotter highlighted the sense of urgency in absence of the particular change of the organization. The change depicted here is the modification of booking system by establishing a online booking counter to take orders from all around the globe and also giving door to door delivery service (Egan, 2013). However, if the change is not adopted the major drawback lies in the limiting of particular service to a particular area. The brand value of the products will be significantly reduced with limited endorsement.


Plan For and Creating Short-Term Wins:

As the short-term wins create a sense of encouragement to the members of the organization, it becomes possible to transform passive members of the organization into active one. In this context, we are going to evaluate the short-term gains of adopting the change in the organization and the benefits obtained from it. In both ways, it gives a great opportunity to the company to endorse brands worldwide.


 Conclusion:

In this project we covered various change management models like Kotter’s 8 - Step Model and Mckinsey 7 - s model is followed in depth (Hsu, Kuo, Chen & Hu, 2013). The change management models are taken to analyze a particular change in the organization. In the end we concluded that the change must be adopted in the online booking system should be adopted to cater the change in marketing policies.



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