Reference: 11Executive summaryTelstra plans to restructure its senior management team to strengthen its customer service as well as address the problems occurring due to the possible implementation of the national broadband network in the next few years. The company is expected to undertake various comprehensive management changes in order to shift the focus of the company from technology to improved customer service and relations. In the past few years, customers are seen to be migrating to wireless broadband services and mobile phones from fixed-line telephony. This has resulted in decline in revenue and profits for the company in its fixed-line telephony business, which is also the core business of the company.
Thus, the company has decided to undertake a change management plan to re-establish its dominance in its core business segment. This report would identify the nature and need for change and propose change strategies that could be reasonably considered by the organization. The report would also discuss the challenges the managers might face when initiating the change and provide strategies on how they might effectively manage the change process. IntroductionTelstra, a leading Australia-based telecom company, is planning to initiate change management strategies by restructuring its senior management team.
In order to strengthen its customer service and its market position in fixed-line telephony, the organization is planning to implement various changes. It is also shifting its image from being a technology company to a company driven by quality customer service and customer relationship. Due to the continued migration of the customers from fixed-line telephony to mobile phones and wireless broadband services, the company has been witnessing decline in its revenue and profits in the past few years.
However, on the other hand, its competitor Optus has added new subscribers to its fixed line telephony, indicating that it is not technological shift that is impacting Telstra’s business. Instead, it is internal organizational issues that might be hampering the company’s profit in its core business segment, fixed-line telephony. Thus, the company plans to undertake change management strategies and regain its lost market in fixed-line telephony by emphasizing on customer service and realigning its higher management. In this report, the nature and the need for changes within the organization would be identified and thereafter, several change strategies would be proposed.
The report would also focus on various challenges that the managers may face while implementing the change strategies. Thus, the report would also provide various strategies to effectively manage the change process. Nature and need for change The process of change management involves creating a planned approach for initiating changes within an organization. The major objective of change management is to provide maximum benefits to all the stakeholders involved in the change process as well as minimize the risks associated with the implementation of the change (Paton & McCalman, 2008).
The subject of change management mainly deals with the changes in human capital and therefore has many psychological and perception-based implications (Anderson, 2010). The process of change management requires through planning and implementing the changes in a sensitive manner so that the people involved in the change process are not impacted. In case the changes are forcibly introduced, it might result into various issues within the organization. Therefore the changes need to be realistic as well as achievable (Green, 2007).