Organization Change Plan

Questions: 1. Develop a organizational change plan that:a. Discusses the strategic changes that need to be made following a merger.b. Monitor trends in the external environment to identify trends that may impact the success of the merger. You should research data from government websites, statistics affecting the industry, etc for up to date current trends affecting the financial industry today. c. Looks at potential/ hypothetical operational change requirements following the merger.d. Lists the change requirements in order of importance. This plan should be written with the financial institution board of directors in mind as you will have to present this plan to them. Once approved, you will have to develop and implement this change management strategy.2. Develop your communication/ education plan to promote the benefits of the change to the organization. The plan should aim to minimize loss and focus in implementing the strategy to bring the two companies together. You should also prepare a d raft schedule of activities as a platform from which you can deliver the communication plans to all relevant groups and individuals in the financial institution. 3. How will you consult with relevant groups and individuals for input to the change process before and after the implementation commences?4. What barriers to the change do you see as possible? Develop a risk management and mitigation plan for each.5. In your change management plan, include action plans and activities and the project timetable. You may use Critical Path Analysis or Grant Chart for this, but may choose to use another method. 6. How would you action interventions and activities set out in project plan according to project timetable.7. How will you activate the strategy and start the process for change?8. How and when will you conduct evaluation and review? When would you modify the change management project plan to achieve change program objectives? Answers: 1.a. Strategic Changes needed during merger Most important thing needs to assess the total market by considering growth factors evaluating of future opportunities in the market, current trend of market and the feedback of customers. The consent of management of both companies is required in integration process. The decisions regarding restructuring of plan and parameters for the future should be taken by exchanging of information and knowledge from the both side. 1.b. Trends in the external environment According to report, it is observed that fitness centres have greater impact on Australian economy. It has improved health and productivity in Australia. The revenue fitness industry is $1.2 billion in 2012 and the contribution towards Australians GDP is $1.4 billion (Majumdar, Moussawi and Yaylacicegi, 2013). At present, Aerobic, fitness and gym activities are in second position in the forms of exercise. As growing of fines industry, sport recreation are also growing in faster rate. There is even has large opportunities for growing this industry. 1.c. Potential / Hypothetical changes Managerial hierarchy level would be changed. At present, all Centre Managers report to the CEO. But, post merger there will be involve of two entities. Decision will be taken with consent of both companies. Business procedure is required to be changed. 1.d. List of changes required i) First is required to set a new name and logo for the centre. ii) The size of organization should be increased because day by day the number of members increasing and it is becoming very congested. iii) Routine schedule should be changed according to customers. iv) New modern machines should be installed for practice. v) New fresh employees need to recruit. 2. Communication Plan Good communication is vital for merging two companies. It is needed to make understand staff and owners the actual reason for merger and what is their future role and the role of organization. A clear set of message should be developed from day one. Messages may be in any language which can make them easier to understand (Lind and Stevens, 2004). It is very important to work together in all planning. It is needed to co-ordinate in timing and messaging. In all communications process, senior management should in front for demonstrating effective leadership and clear future vision and also should be trained for face-to-face communication and media communication. The communication should not be one way. Listening of peoples responses is also vital. Any issues (both internally and externally) cannot be ignored and it should be monitor in well manner (Lind and Stevens, 2004). 3. Consultation with relevant groups and individuals The various process of communications can be use to interact with the group and individual such as newsletter, e-mail messaging, conducting of briefing of each team, doing group workshops and arranging of meeting for consulting to group or individual. External communication can also be used. 4. Barriers to the change Merger process is very complex and time-consuming. It can increase the operating cost of the organization due to changing of technology, providing training to workers, leaving of employees, etc. Employees can resist changing of present culture. Merger process depends on economic factors such as GDP, current situation of economy, legislative and administrative procedure, current interest rate and political environment of non-economic aspect. The management of styles of both companies may be different (Hrebiniak, 2005). Employee resistance can be overcome by taking proper actions. Management can do preliminary research regarding the financial possibilities of the company. Employee resistance can be mitigated through informing the employees about the changes and its benefits. Every decision should be made with consultation of both companies. 5. Actions plans and activities and the project timetable Activities related with change management are organizational restructure, communication, training, management of resistance and implementation. Every activity cannot be done in one day. Each activity has its own duration to complete it which can be calculated through Critical Path Analysis. Longest path will be selected which includes the all the activities. 6. Set out of action interventions and activities If any delay is found in critical path according to expected, the reason should be find out and necessary action should be taken. Such as, if there is any issue arise in communication process. The reason of it should be find out and possible action should be taken (Majumdar, Moussawi and Yaylacicegi, 2013). 7. Implementation of strategy The strategy developed by the consent of both organizations is implemented. Instructions are provided to the staffs about the operations. According to those operational plans, everyone starts to work individually and collaboratively (Glass, 1991). 8. Evaluation and review Company starts its operation according to the activated strategy. Evaluation and review is required to improve any changes. In evaluation process, the every activities and operations are checked whether any fault or deviation arise according to the standard. If any deviation is found, the step for modification is taken to overcome that (Gleich, Kierans and Hasselbach, 2010). Reference Lists: Glass, H. (1991)Handbook of business strategy, Boston: Warren Gorham Lamont. Gleich, R., Kierans, G. and Hasselbach, T. (2010)Value in due diligence, Farnham, Surrey [U.K.]: Gower. Hrebiniak, L. (2005)Making strategy work. Upper Saddle River, N.J.: Wharton School. Pub. Lind, B. and Stevens, J. (2004) Match your merger integration strategy and leadership style to your merger type,Strategy Leadership, 32(4), pp.10-16. Majumdar, S., Moussawi, R. and Yaylacicegi, U. (2013) Merger Waves and Firm Growth: Contemporary Historical Evidence.Annals of Public and Cooperative Economics, 84(1), pp.1-16. Maksimovic, V., Phillips, G. and Prabhala, N. (n.d.) Post-Merger Restructuring and the Boundaries of the Firm.SSRN