Change Management in the Australian Post - Case Study Example

PROGRESS REPORT CHANGE MANAGEMENT Student’s Name ID Unit Code and Name: MMH356 Change Management Unit Chair: Tutor: Trimester Submitted: Table of Contents John, J, Aguirre, D & Calderone, M 10 Principles of Change Management 2004, viewed 19 July 2012, 15 Executive summary This report looks into change management in the Australian post. It critically analyses the theory of transformation the management has initiated into the organisation. The analysis involves examining the change in work process as well as the business transaction in the market. It further touches on the improved customer service and product delivery. The potential impact created by this new trend in the market has raised the completion among similar business entities (Stace, & Dunphy, 2001 p. 57). The report gives possibilities of such evolution to be taken up by other upcoming organisations and implemented as part of their changes in management (Dunford, Palmer, Benveniste & Crawford, 2007 p. 40). The approach taken by Australian post depicts how the improvement in the market is achieved. It shows that the process is not pushed individually but rather as a unit in the whole organisation structure. The initiatives addressed in this report shows the kind of strategies has been undertaken by the organisation and the results they have received so far. The major highlight is the integration of information technology into its services as well as the opportunities it has created for this organisation. Therefore the report has compiled the following recommendations. i. The management ought to exercise modest modification in the strategic plans and operations ii. It has to improve in market transparency, capital and revenue flow, and labour mobility. iii. Companies should embrace the changes and still maintain their unique values and sense of identity. iv. The change management approach should fully integrate assessment of the company's history and its economic capacity (Rouse, 2005). Background This report will highly venture in the business transaction of the Australian post. This company is owned by the Australian government and plays the role of offering postal, and retail, services to the public (Australia Post, 2012). The postal corporation is widely spread and reaches more than ten million Australians (Mills, 2011). The Australian post is recognised as the most affordable and reliable letter service. The Australian post is believed to have served the Australians for over two centuries now. In the last 15 years, the company has broadened in service and products offered (Australia Post, 2012). Introduction The economy of today demands change in all sectors of business transactions (Jackson, 2000 p. 7). The world has turned to be reliance on the trend that emerges on a daily occurrence. There are various transformation codes that help organisations to instil change in their daily transaction (Dunford, Palmer, Benveniste & Crawford, 2007 p. 31). The change in these organisations is characterised by the organisational capability and the economic value of the organisational, business transactions (Mills, 2011). This can be simplified into two archetypes; theory O and Theory E (Beer & Nohria, 2000, p. 133). A. Purpose, scope and limitations This report will analyse how Australian post has embraced these theories as well as other modes the company uses to be successful in the market. The theory the company uses is best understood as a guide to transform the organisation (Rouse, 2005). B. Sources and methods During the preparation of the report academic reports and studies were largely utilised. Analysis of previous reports that looked into the same field has also assisted in the build up of this report. C. Report organisation This research on the theories focuses on how and why the transformation happens in this organisation (Palmer, 2007 p. 1835). Furthermore the report will review the changes and structure that has taken effect and how to overcome the shortcomings. Body I. Organisation operations Over the years, the Australian post has transformed its products and services to the Australian public. This company has a significant historical strength in the delivery market. The company has slowly penetrated the international market (Australia Post, 2012). The Corporation has ventured into joint subsidiaries and partnership with China post. Recently the organisation has invested heavily in technology and modern infrastructure. Currently it is the main postal Corporation in Australia (Australia Post, 2012). It handles services such as letters and associated mails, parcels, merchandise logistics and agency services. The delivery services have improved tremendously and are highly rated (Palmer, 2007 p. 1847). This is contributed by the mandate to embrace trends in the market (Mills, 2011). Having improved on technological infrastructure, the internet has become a basic necessity in all business transaction within the organisation (Bryan, 2005 p. 10). The internet has commoditised many companies and nourished their services as well as increasing their revenues. The Australian post has experienced a massive change in consumer pattern (Stace, & Dunphy, 2001 p. 63). The internet trend has encouraged many consumers to buy services and products online (Rouse, 2005). It also raises the confidence on the corporation due to the comprehensive consumer ability (Dunford, Palmer, Benveniste & Crawford, 2007 p. 37). The company concentrates in enhancing delivery choice. The Australian post operates normal mail delivery and express courier service through the online service (Mills, 2011). The post has 7950 postal routes serviced by 10000 posties (postmen) (Australia Post, 2012). Their main objective is to collect process and distribute bulk mail deliveries for businesses and different communities. In addition, the post diversifies its operation by including chain management, business to business integration and agency services (Australia Post, 2012). The evolution of information technology has driven the pace competition a notch higher (Jackson, 2000 p. 40). Despite the massive shift towards emails, the post also has opened a portal where government entities, customers and corporate entities communicate through (Australia Post, 2012). In addition, it has a mobile application that eases the burden for hundreds of its consumer who cannot access internet at ease (Australia Post, 2012). The service is a secure digital portal where customers can also store relevant documents. The Australian post has considered the fundamental change to maintain the advantage in the competition (Dunford, Palmer, Benveniste & Crawford, 2007 p. 28). The manager is responsible for designing and executing the several changes in the management (Australia Post, 2012). All the changes he purports are aligned to the company’s culture and people behaviour and values (Australia Post, 2012). His long term structural changes and company transformation are beginning to take shape as the company prospers in all its online business activities (Mills, 2011). The general manager believes that the enthusiastic style and the refreshing organisational culture brought in by the change will raise standards in terms of performance (Australia Post, 2012). The resource allocation within the operations cultivates to give the company acceptable results in the projected values (Stace, & Dunphy, 2001 p. 45). II. Code of Change in the organisation Most organisations have stressed focus on economic value when they impact changes in the business transactions (Beer & Nohria, 2000, p. 133). However, the Australian post has incorporated both organisational capability and the strength of the economic value and stretch (Australia Post, 2012). The transformation of Australian post redeploys human, financial and physical resources within and out of the organisation (Rouse, 2005). The general manager believes the integration of external variables such as consumers, competitors, and the internal resources will make Australian post a success in the market. The strategy oriented process eventually pays attention to the operations (Australia Post, 2012). A. Economic value Change in the economic value in any organisation is measured by the shareholders strength in that organisation (Jackson, 2000 p. 20). In addition, the economic change in that the organisation will lead to layoffs, downsizing and restructuring of the entire operation. The Australian post has made significant changes in the economic value of its business transactions (Mills, 2011). The company has resorted to use its assets and resources to make a profit and to self-fund most of the future projects it intends to pursue. The dividends and profits it makes are returned to the shareholder hence making the company a successful business in the eye of the shareholder (Beer & Nohria, 2000, p. 133). The company offers financial services such as paying of bills through its banking and retail network (Mills, 2011). In addition, the logistics and fulfilment service has gained confidence from most of its clients (Australia Post, 2012). These unique services have also been incorporated in the e-retail services hence making it much affordable for millions of its consumers. By selling these product and services to over ten million Australians, the company is comfortable in the much competitive market (Australia Post, 2012). The general manager believes that the e-commerce sector of the corporation holds a fundamental future success of the organisation (Mills, 2011). These key sectors are set to nature and nourish investments as returns in the near future (Australia Post, 2012). The Australian post has also gone ahead to include middle sized businesses which are not on eBay in their integrated business (Mills, 2011). By placing consumers’ interest as priority Australian post stands out to be unique in the market (Australia Post, 2012). Changing the organisation business activities goes line in line with change in functions and objectives of the company (Rouse, 2005). B. Organisational capability The main aim of this change is to develop a strong corporate culture and a respectable image to the public (Beer & Nohria, 2000, p. 132). The organisation has initiated a new strategy which has revamped the organisational structure. This strategy is known as future ready. It transforms the whole organisation into a digital business where all its services are under the e-service sector (Palmer, 2007 p. 1834). The e-retail boom has revitalized the old fashion of sending packages and mail (Mills, 2011). This organisation is responsible for delivering purchases parcels and mail. The Australian post enjoys a wide coverage of the distribution chain in the country (Australia Post, 2012). This has assisted the company to offer a complete solution of parcel delivery. The e-retail allows online consumers to track and monitor their deliveries (Mills, 2011). It also saves them time since with the click of a button they are able to pay bills and make orders of different products. The e-retail also allows consumer leverage on the product and services (Mills, 2011). The online self support systems for consumers enhance relationship and improves management inventory (Australia Post, 2012). According to the general manager, the company is dedicated to speeding and price of delivery (Australia Post, 2012). Most consumers regard this as an excellent customer service since they have the mandate to choose the time and place for their delivery (Australia Post, 2012). The partnership with other click and mortar companies such as eBay has raised its standard a bit higher (Jackson, 2000 p. 54). The organisational capability used by Australian post is very much acknowledged as being better than the direct management control practices utilised in many companies (Palmer, 2007 p. 1835). This theoretical approach utilised in this company intensifies profit and revenue generation and at the same time control of employees preferences (Stace, & Dunphy, 2001 p. 109). The innovation in the contemporary workplace within the post is an added advantage since it offers managerial power to attract special consumers. In addition, the high trust in the employees’ involvement is also a boost in attracting more investment into the company (Palmer, 2007 p. 1835). This has also raised labour innovation in terms of productivity and methodology in the workplace. The new form of organisation is surely a perspective that ought’s to be adopted by upcoming and competitive organisations (Stace, & Dunphy, 2001 p. 101). C. Advantages of the code of change in the management The changes initiated in its operation have enabled the company to sustain its revenue in a rather competitive market (Mills, 2011). The external opportunities and threats have made the company pursue the changes in management before the changes are forced on to the management. Hence, they increase the chances of having resources to invest (Jackson, 2000 p. 38). The company is now able to track the deliveries as they happen (Mills, 2011). In line with its vision and mission, Australian post has proven to provide high quality mail and parcel services to all Australians. Their main customer service charter is to play a crucial role in raising the standards of Australian community (Australia Post, 2012). The e-retail service provides an opportunity for other subsidiary agents and partners to develop and prosper on the market (Rouse, 2005). This is an advantage to small sized enterprises since they are able to form a strong base in the online retail sector (Australia Post, 2012). The changes also allow the post to provide research, profile and segment their services. In addition, they advice the consumer about the rental list and assist businesses reach their target (Australia Post, 2012). D. Disadvantages of the code of change in the management The failure of the e-retail mechanism in some towns questions the credibility of their services (Mills, 2011). The organisation has assumed that the changes will take effect in all its branches simultaneously. However, some branches are taking too long to effect the changes. Australian post lacks self proclaimed market hence it looses out high number of its consumers to its competitors (Mills, 2011). In addition, the company has a low desire to achieve new levels of value through the exploitation of the global market through the technological opportunities it has. The company has only one international merger, yet it has prospered well in the local scene (Mills, 2011). The changes have not been received well with the communication workers union (Jackson, 2000 p. 56). The union feels the services are unsatisfactory during peak seasons such as Christmas and other festive season. During such times, it is reported that there is a delay in deliveries and customers are forced to visit their local post offices to collect their parcels. The union also raises the voice on the massive downsizing and layoffs attributed to the organisation move to embrace technology. The competition in the market proves to slow the development of the online services. Its main competitor, Fastway is coming out strong by capitalising on its weak point on e-retail. Fastway has set out 25 hub stations around the country (Mills, 2011). However, the exploitative organisational form Australian post has taken is less alienating and intensifies work ethics and productivity (Mills, 2011). The organisation also lacks adequate, experienced staff in the information and technology sector (Jackson, 2000 p. 70). The few that are present are overstretched and are expected to offer services for the millions of Australian citizens. This has led to unexpected failure of the projected gains of value and achievements. The instance change in purpose and objectives encounters considerable difficulties in implementation especially if the change has to do with replacement of employees (Bryan, 2005 p. 10). III. Principle of change management There are various principles that management of Australian post has implemented in order to ensure the changes they put in place are successful (John, Aguirre & Calderone, 2004). These principles have assisted the company to diagnose the shortcoming they are experiencing in economic and organisational stability (Rouse, 2005). These principles have enabled employees to realise the necessity of the changes effected in the organisation (John, Aguirre & Calderone, 2004). For instance, the downsizing was a way to keep the business viable in the market (Australia Post, 2012). The employees have been revitalised and improved the urge of pushing the company on top (Mills, 2011). The adoption of the principles transforms the business activity within the organisation (Palmer, 2007 p. 1840). The most crucial principal is taking feedback positively. The organisation has set out measures to ask consumers the changes they wish to be effected in the company. This ensures that all changes will be inline with consumers’ preferences (Stace, & Dunphy, 2001 p. 99). The employees are also involved in the management and decision making (Palmer, 2007 p. 1845). Another crucial principle is working with anticipation of unexpected shift of the market. The organisation is comfortable in making drastic decisions whenever they face unexpected occurrence in the market (John, Aguirre & Calderone, 2004). For instance, this organisation should expect criticism from consumers and declining revenues and profits (John, Aguirre & Calderone, 2004). This principle also enables them to analyse the market and maintain the momentum of business by adjusting key areas (Jackson, 2000 p. 61). Making the organisation a premium brand is also another principle which drives the company into prosperity (Mills, 2011). The company has a culture of producing consumer goods and services that are profitable to the organisation. This has been enhanced with enthusiastic marketers who have ensured that the marketing plans are well undertaken (Stace, & Dunphy, 2001 p. 71). The Australian post has created ownership of various businesses in the e-retail sector (Mills, 2011). The ownership is based on creating solutions for its consumers in terms of the parcel and mail deliveries. However, there is still more to be done to ensure that further exposure should be undertaken in order to keep the competitors at bay (Australia Post, 2012). In addition, the organisation has involved both the shareholders and consumers in ensuring that the changes drive the company to success in the market. This approach is a superb measure in determining the future steps and plans to venture in (Bryan, 2005 p. 26). Moreover, the restructuring of operations have led to repackaging consumer goods and services (John, Aguirre & Calderone, 2004). This has sparked the rise in returns and earnings for the organisation (Palmer, 2007 p. 1830). The Australian post total quality management devises new business strategy which reengineers daily business processes. The principles have enabled the management of Australian post to recognise their massive potential and the confidence they have in their clients (Bryan, 2005 p. 52). The effective changes have become a normal, integral business activity in Australian post (Mills, 2011). Conclusion In order for a successful thrive in the market all organisations ought to adapt new economies by ensuring the changes they initiate are in sync to the organisation capabilities and the economic stretch of the same organisation (Ross, 2005 p. 20). There are immense opportunities in online delivery market since the area is emerging to be strong issue in management change (Mills, 2011). The changes effected by Australian post is viewed by most likewise organisation vexing the issue as a high revenue return in terms of management inventory (Palmer, 2007 p. 1831). The lessons learnt from Australian post management changes will assist many struggling managers to affect such measures in their companies (Mills, 2011). Recommendation In order for a business, to capture the best organisation stability and satisfy shareholders earnings the management ought to exercise modest modification in the strategic plans and operations (Palmer, 2007 p. 1835). The management has to improve in market transparency, capital and revenue flow, and labour mobility. By concentrating on these key areas, the companies have a clear chance to prosper in the global competitive market (Beer & Nohria, 2000, p. 135). In addition, companies should embrace the changes and still maintain their unique values and sense of identity (Bryan, 2005 p. 34). The managers should also avoid evading problems as they arise. This will make them repeat similar mistakes (Ross, 2005 p. 18). The change management approach should fully integrate assessment of the company's history and its economic capacity (Bryan, 2005 p. 79). Furthermore, the management should be prepared for the unexpected. They should be ready to face external environmental shift as well as opposition forces from within the organisation (Jackson, 2000 p. 44). Effective change management requires regular reassessment and willingness and ability to adapt to change (Mills, 2011). This should be complimented with effective marketing plans and campaigns. Lastly financial pressures stiff competition and the inability to react to changes should not deter the management from pushing ahead with the implementation (Palmer, 2007 p. 1835). References Australia Post 2012, viewed 18 July 2012, Beer, M & Nohria, N 2000, ‘Cracking the code of change,’ Harvard Business Review, May/June, pp. 133‐141. Bryan, L 2005, ‘The 21st century organization’, McKinsey Quarterly, no. 3, pp. 24‐33. Dunford, R, Palmer, I, Benveniste, J & Crawford, J 2007, ‘Coexistence of ‘old’ and ‘new’ organisational practices: Transitory phenomena or enduring feature’, Asia Pacific Journal of Human Resources, vol. 45, no. 1, pp. 24‐43. Jackson, D 2000, Becoming dynamic: Creating and sustaining the dynamic organization, London: Macmillan Business. John, J, Aguirre, D & Calderone, M 10 Principles of Change Management 2004, viewed 19 July 2012, Mills, K 2011, ‘Trend: The Internet redistributes revenue’, BRW, 8 June, retrieved 26 June 2012, . Palmer, I 2007, ‘New organizational forms: towards a generative dialogue’, Organization Studies, vol. 28, no. 12, pp. 1829‐1847. Ross, E 2005, ‘Why managers fail’, Business Review Weekly, vol. 17‐23, pp. 86‐87. Rouse, W B 2005, ‘A theory of enterprise Transformation’, retrieved 18 July 2012, Stace, D & Dunphy, D 2001, Beyond the boundaries: Leading and recreating the successful enterprise, 2nd edn, Sydney: McGraw‐Hill Book Organisation. Read More