IntroductionChange often seems new and moving faster all the time, yet history is full of stories of non-stop change. The precise definition of change remains controversial among different authors. Leana, C. and Barry, B. (2000) define change as a never-ending process of readjustment and re-adaptation, as man responds to the ever-changing circumstances behaviourally. On the other hand, Conger, Spreitzer and Lawler, (1999), argue out that change is a continuous process of transformation though it is not necessary that man re-adjusts to adapt to this change. Just like animals and plants, organizations and people working in them certainly come across changing conditions that they are unable to control.
Adapting to change may require establishing a strategic method for responding to changes in the business environment such as a threat from a competitor or fluctuation in the economy, or establishing coping mechanisms to respond to changes in the workplace such as new technologies or policies. No single methodology fits every organization, but there is a set of tools, techniques and practices that can be adapted to deal with a range of situations. The rate of change organizations are undergoing has continued to accelerate over the last years and there is no evidence to suppose that this trend will cease.
Most companies are finding out that in order to achieve change, effective leadership is required. As the mounting customer demands, competitive pressures and regulatory pressures impact utilities globally, change is becoming the custom rather than the exception. It is becoming significant for utility managers to work not only on their traditional managerial roles but also as transitional leaders. This poses great challenges for managers throughout organizations and especially to those with responsibility for staff, since they have an extra role that centers on guiding people throughout the changes inherent in our contemporary society.
This study seeks to illustrate a change management report that draws upon the change theories and models that can be implemented to attain change in the organization, and in this case, Telstra Company. The report will identify the nature and the need for change in the organization. The report will also discuss challenges managers face when effecting change and the strategies to overcome the identified challenges.
Nature and need for change in Telstra CompanyThe general objective of introducing change to an organization is to enable it cope with the changing environment (Leana and Barry, 2000), or improve its present state to a better state (Boeker, 1997). Telstra is Australia’s leading company in telecommunication and information services. It deals in the production of mobile phones, broadband internet, home phones and pay television among other products. It is basically an engineering and technology company and focuses on the production of new technologies (Dessler, 2002).
In the recent past, the company has experienced a decline in its sales revenue, a concern that has forced the company’s CEO to restructure the senior management. The changes are meant to regain the lost ground in customer service and restructure its capacity to cope with issues arising from the national broadband network. The increasing pressure on several fronts such as loss in the market share has also motivated the CEO to introduce the management changes. Another factor that facilitated the need for change in this company is the fact that many of its customers who had been using the fixed copper network have now shifted to using the wireless broadband and are increasingly relying on mobile phones instead of landlines.
Therefore, there is need to introduce changes that can ensure the company does not only focus on generating new technologies but also focuses on the production of products that satisfy their customers. The company’s intention is to make customer service, a part of its corporate culture. To prove this fact, Telstra recently announced a one billion US dollar transformation project that is aimed at fighting for customers in mobile phones, fixed broadband and wireless broadband markets.