Effective and Ineffective Points of Kier Construction - Term Paper Example

Successful Organisation Lead Change, They Don’t Just Manage It 00 Executive Summary The primary objective of the study is to critically explore theconcept of organisational change management and how it has been applied by the modern leaders in the competitive business environment. In order to critically evaluate the notion of leading changes, the research report tends to include the business strategy of Kier Construction in the context of its continuous success by accepting and leading changes. In order to critically explore the key subject of the study, the discussion section tends to include differentiating the factors of leading and managing along with examining how the successful Kiers are within position. Moreover, the discussion also includes highlighting few effective and ineffective points of Kier in the competitive construction business industry. In addition, the discussion also provides a critical explanation of the market share of Kier and determines effective way that could execute by the organisation to lead change in its business operations. Table of Contents 1.00 Executive Summary 2 2.00 Introduction 4 3.00 Differences between Leading and Managing 4 3.01 Leading Change 5 3.02 Managing Change 6 4.00 Evaluating Business Strategies of the Organisation in Respond to Deliver Change 7 5.00 Examining Successfulness of Kiers’ Position 8 5.01 Good and Bad Points of Kier 9 6.00 Market Share Performance of Kier 11 7.00 Explanation of the Organisational Strategies that could focus its Employees and Lead Change by Developing Leadership Strategy 11 8.00 Conclusions and Recommendations 12 9.00 References 14 2.00 Introduction The success of an organisation can be recognised as an ultimate achievement at the time when it undertakes effective implementation of strategic decisions and functions in accordance with the changing trends along with rising competition in the respective business markets. In relation to the present competitive business scenario, attaining organisational success is quite a challenging task due to the existence of numerous internal as well as external influencing drivers (Cameron, 1994). In the context of current competitive construction business industry, Kier Group Plc. can be considered as one of the strong market leaders in terms of dealing with different construction and engineering projects. With regards to the business success of Kier, the continuous achievement of financial goals along with operational objectives can be widely recognised than any other corporation operating in the global construction business industry (Kier Group plc., 2014). However, the aspects considering the changes in strategic and operational directions have certainly enabled Kier to face major complexities while attaining its commercial goals. During different business stages throughout the decades, the management strategies along with the key roles of leadership have played a crucial role for Kiers to remain its sustainable position in the fiercely growing construction business industry (1Kier Group Plc., 2014). 3.00 Differences between Leading and Managing Major differences between leading and managing change have been provided in the following discussion: 3.01 Leading Change In order to understand the process of leading organisational change, the eight steps model of John Kotter can be duly accepted as a major framework to make comparison with managing change. The following eight steps model of Kotter details about the process of leading change in an organisation: Step1. Sense of Urgency: The step includes a process of identifying and using an opportunity in the form of encouraging individuals for changing business processes of the organisations (Kotter International, 2014). Step2. Build a Guiding Coalition: The step significantly involves building or assembling competent teams with the influence of leading and supporting a collaborating effort in respond to the change (Kotter International, 2014). Step3. Form Strategic Vision and Initiatives: Shaping or forming a strong vision of steering change delivery efforts and formulating strategic initiatives for successfully accomplish that vision (Kotter International, 2014). Step4. Enlist a Volunteer Army: The step significantly involves a process of enlisting competent individuals with a common interest and willingness to deal with the organisational change (Kotter International, 2014). Styep5. Enable Actions by Removing Barriers: The step involves a process of eradicating barriers or obstacles and enables to effectively deal with organisational change (Kotter International, 2014). Step6. Generate Short-term Wins: The step includes activity such as tracking, evaluating and celebrating the small along with large accomplishments and correlate them in accordance with the results (Kotter International, 2014). Step7. Sustain Acceleration: The step significantly involves using credibility in respond to the formulated change system. In this context, structuring policies and aligning them in line with the vision is also a major process in this step (Kotter International, 2014). Step8. Institute Change: The step helps to articulate links between organisational success and new behaviours and formulate effective leadership approach to lead the team in respond to change (Kotter International, 2014). 3.02 Managing Change In comparison with the process of leading, the course of managing change significantly determines the fundamental management practices in order to deliver change. The major programs that management covers in order to deliver change include the following practices: Strategic Positioning: The management process defines clear operational objectives to deliver change and increase efficiency of the operations. Readiness of Change: The procedure significantly determines the capability of adopting change by the individuals involved with the same. Integration of Change Agendas: In this procedure, the management is accountable to incorporate changes into the business processes, work practices and systems. Project Management: The procedure includes the practice of using confirmed methodology and implementing initiatives in accordance with the organisational needs. Communication: The communication aspect in the management procedure often includes both formal and informal approaches with a continual manner while dealing with changes. Measurement: The measurement function in the management includes recording performance of each activity for addressing issues derived from changes. 4.00 Evaluating Business Strategies of the Organisation in Respond to Deliver Change In relation to the theoretical context, the notion of transformational change refers to an approach of reorientation of business policies that develop by the organisations to attain superior competitive position. The radically different nature of business models including corporate structure or employment policies that are likely to convey a major reorientation of the operational process can be defined as a transformational change (Leonard, 2005). In the context of changes in Kier, the rapid transformation in the construction business industry is one of the major challenges that made the organisation to bring major changes in its operations. The strategic measures developed by the company have also witnessed to effectively manage the changing way of controlling and directing different construction related activities. In this context, building a sense of urgency and forming effective guiding coalition among each individual should highly emphasise by Kier to rejuvenate operational efficiency in line with the changing competitive environment. The development of strong strategic vision would enable Kier to streamline strategic and operational policies and align them with the changing business settings (Cole & Kelly, 2011). In contrast, the change can also be considered as an emergent approach, which may lead the Kier to face numerous hurdles while performing its construction related business activities. Although the developments relating to the strategic measures such as merger and acquisition have substantially developed the capabilities of Kier, maintaining appropriate control and measurement of different business approaches have certainly lowered the standards of its business operations by a certain level. In this regard, the organisation should also need to focus on consolidating its accomplishments and adopt exclusive changes in its construction business. The process of fastening new approaches of change in the operational culture might help Kier to maintain its dominant position in the respective construction business industry. Therefore, the process of leading change should be highly focused by the organisation in order to collectively develop its major changes across different strategic and functional areas (Daft & et al. 2010). 5.00 Examining Successfulness of Kiers’ Position Managing change is duly considered to be a major problematic and most complex factor, which has major bearing on the performance of the employees as well as their long-term commitment with the organisational goals and vision. In relation to the recent competitive scenario, organisations are frequently observed to face major challenges due to lack of effective change delivery functions (Mullins, 2013). In relation to the current growth of global construction business industry, the business operations of Kier involve several strong capabilities that lead the organisation to set its own benchmark. According to the current business phenomenon, the operational process of the organisation generally includes six major divisions including construction, support service, property, housing, project investment as well as framework and alliance. Throughout its emergence in the construction industry, Kier has been witnessed to achieve rapid growth by satisfying the needs and requirements of the clients ranging from governmental agencies, private enterprises and communities as well. However, the business divisions of the organisation are also observed to adopt collective transformation due to changing trends and rising competition in the industry (1Kier Group Plc., 2014). 5.01 Good and Bad Points of Kier In order to critically assess the current business practices, the following are few of the major strengths or good points of Kier in the recent global construction and support service industry: Strategic Board of Directors The Executive Board members or hierarchical Directors can be regarded as a major set of competencies or a good point of Kier. The competitive decision making capabilities along with focusing on making continuous changes in the operational process are few of the major initiates that undertook by the organisation’s Board members. Moreover, structuring appropriate and widely accepted governance system and continuous development of the business policies in line with the changing trends and opportunities are also few of the major indicators that led the organisation to build its long-term sustainability (1Kier Group Plc., 2014). Leadership Approach The strategic measures integrated within the operational procedures of Kier eventually supported the organisation to efficiently build its dominant position in the global construction and service providing business industry. The unmatched strategic measures and leadership principles can be duly considered as few of the major competitive resources that enabled Kier to consistently foster its performance across different business segments. In relation to determine the leadership skills and practices, the leaders of the organisation tend to maintain a cooperative culture in the form of improving performances of each individual staff member associated with its construction or other business segments (1Kier Group Plc., 2014). In relation to the present business performance of Kier, there are few other determinants that substantially enable Kier to transform its operational efficiency in terms of dealing with changes. However, the organisation also possessed few determinants in its strategic and operational processes that weakened its competitive position by a certain level. These have been elaborated in the following discussion: Appropriate Alignment of Strategic Visions with Change In relation to the recent business operations of Kier, the organisation has been witnessed to undergo major decline in its few operational segments due to inappropriate alignment of changing principles with its strategic vision. Throughout its business operations as a promoter or an equity investor in the context of project management, the organisation faced obstacles in aligning necessary initiatives relating to change management with its strategic visions (1Kier Group Plc., 2014). Communication Flaws In the context of communication process, inadequate measure of transmitting change related information to the valuable stakeholders can be regarded as one of the major strategic flaws of Kier, which substantially lowered its credibility in the construction industry. In order to deal with the issue, the strategic change delivery process should maintain a clear and integrated process of sharing with its major stakeholder groups (1Kier Group Plc., 2014). 6.00 Market Share Performance of Kier Based on the recent business phenomenon, the construction business operations of Kier have witnessed continuous growth in terms of achieving strong market capital. The current market capital of the company has been recorded as £811.73 million, which is significantly lower than the rate of capital during the first quarter of the year 2014 (London Stock Exchange plc., 2014). 7.00 Explanation of the Organisational Strategies that could focus its Employees and Lead Change by Developing Leadership Strategy Based on an in-depth understanding of the business processes of Kier, it can be apparently observed that the strategic directions and practice guidelines prevalent in the organisation include an exclusive set of approaches that develop its different construction and service delivery activities. The leadership approach and practice in Kier is observed to play a decisive part in Kier in the form of leading change by improving capabilities of its employees irrespective of their assigned operational segments. According to the current leadership approach, the construction operations of the company are executed with a competent leadership approach, which helps in developing the business performance of each individual employee towards successfully obtaining their postulated goals (1Kier Group Plc., 2014). However, the leadership roles of the superiors in Kier could focus on fostering cordial relationship between the managers and the subordinates along with other hierarchical members for ensuring the conduct of smooth construction operations. This particular strategy would certainly help the leaders and subordinates to mutually and successfully achieve the operational goals of the organisation. Moreover, the strategy could also promote establishing effective communication and sharing of individual ideas and thoughts regardless the culture and demographic barriers of individual staff. The process would help the organisation to integrate innovative business approaches in the competitive construction business industry. The senior team in operations and strategic departments of Kier should also need to maintain structured and cooperative behavioural pattern which can also increase the capability of the employees in terms of dealing with changes (1Kier Group Plc., 2014). The senior team in the organisation often observes to offer continuous support to each level of the operations in construction and other business segments. The behaviours of the senior team in this regard often play an imperative part in communicating various examples of change delivery processes adopted by the organisation to gain competitive advantage. The examples are communicated by the senior teams through statistical representation about the influence of change and way to avert negative impacts from the same. Moreover, ensuring continuous learning of change delivery approaches and practices through relevant examples is also observed to be a major role of senior teams in Kier (1Kier Group Plc., 2014). 8.00 Conclusions and Recommendations Leading and managing change in the organisational processes are observed to be major influential factors for the organisations to sustain in this competitive business world. In relation to the recent business phenomenon, change is one of the most common scenarios for the market leaders to develop their respective competitive positions. In order to successfully deal with change, organisations are more likely to undertake strategic and operational activities that encompass leading and managing strategies. However, both leading and managing change can also be differentiated into various aspects encompassing their nature, process and outcomes. In order to avert future challenges derived from the change adopted, the strategic department of the organisation should highly emphasise leading change. In this regard, ensuring continuous focus on creating and guiding coalition with the nature of change and promoting effective delivery process would substantially help the organisation to avert negative impacts of change. Moreover, formulating strong vision of the change delivery actions and aligning them in line with the business objectives would also help Kier to successfully obtain competitive advantage in the changing construction business environment. 9.00 References Cameron, K. S. (1994). Strategies for Successful Organizational Downsizing. Human Resource Management, Vol. 33, No. 2, pp. 189-211. Cole, G. A. & Kelly, P., 2011. Management Theory and Practice. Cengage Learning. Daft, L. & et al. 2010. Management. Cengage Learning. Kier Group Plc., 2014. Kier Group Capabilities. Annual Reports and Accounts. [Online] Available at: http://www.kier.co.uk/~/media/Files/K/Kier/documents/investor-relation/reports-and-presentaions/ar-2014a/ar2014-strategic-report.pdf [Accessed December 12, 2014]. 1Kier Group Plc., 2014. A Culture of Good Governance. Investors Relation. [Online] Available at: http://www.kier.co.uk/~/media/Files/K/Kier/documents/investor-relation/reports-and-presentaions/ar-2014a/ar2014-governance-report.pdf [Accessed December 12, 2014]. Kotter International, 2014. The 8-Step Process for Leading Change. I8 Steps Process. [Online] Available at: http://www.kotterinternational.com/the-8-step-process-for-leading-change/ [Accessed December 12, 2014]. Leonard, A., 2005. Transformational Change Management and Change Communication. Chapter 2. [Online] Available at: http://upetd.up.ac.za/thesis/submitted/etd-09282005-135714/unrestricted/02chapter2.pdf [Accessed December 12, 2014]. London Stock Exchange plc., 2014. KIER GROUP Currency GBX Premium Equity Commercial Companies. Summary. [Online] Available at: http://www.londonstockexchange.com/exchange/prices-and markets/stocks/summary/companysummary.html?fourWayKey=GB0004915632GBGBXSTMM [Accessed December 12, 2014]. Mullins, L., 2013. Management and Organisational Behaviour. Pearson. Read More