Change management report on Vodafone plc

Vodafone is highly growing mobile company in the world since 1985. It is world’s leading telecommunication company. Today it has more than 359 million customers around the world. Their network provides facilities to share images and videos, to share feeling and thoughts. Most customers prefer Vodafone as compare to fixed line and broadband services. Vodafone recognized that day to day new things are being inventing and customer’s needs are changing rapidly. Vodafone understand that to success in business changes must be med in organization. It is looking for new and innovative ways to facilitate the customers and provide every opportunity in simple way. The connectivity of technology with telecommunication industries supports the economic development of a country.

ROLE OF CHANGE MANAGEMENT IN ORGANIZATION

According to researches conducted on many top organizations shows that the main reason for project failure is that peoples have different dimension of change. The effective implementation of change management is considered one of the top three factors in a successful project.

Change Management

Some simple definitions:

Change management: making change in a designed and controlled way.

Organizational change: any modification, amendment in people, organizational structure or technology.

Types of change:

Normally there are four types of change which can be made in any organization:

Operational change: Applying changes to way of continuing operations of the business. For example: change from manual to automation of any particular area.

Strategic changes: Modifications that take place towards the intentional business direction.

Cultural changes: Those change which affect the basic values and beliefs of the organization on which business objective can be achieved.

Political changes: These types of changes normally occur in government organization with political influence.

DEALING WITH RESISTANCE TO CHANGE

People refuse to accept change, whenever management intends to change in organization. Large investment is made for company changes, and for their efforts towards change, the only reason that try to stop the process of change is resistance among employees. Sometimes change may be dangerous for the employees working in organization, but changes also have positive effects at higher level management for advantage of organization. Some of the reasons for resistances are following. in detail should be discussed later.

It is obvious that people don’t like those changes which are against their needs and interest. There are three main reasons on which people resist change.

Hesitation or ambiguity

Worry about personal loss

Think that the change is not better for organization’s objectives.

Techniques for reducing resistance:

For reducing resistance, different approaches are adapted by management. These approaches may include:

Contribution

Facilities and support

Awareness and education

Negotiation

Forceful and friendly behavior

Different approaches at different times are used by management depends on source and type of modification.

ADVANTAGES OF CHANGE MANAGEMENT:

The advantages of change management include:

Understanding of surrounding: It is important for managers to understand assess the environment and outside surrounding in order to establish better relationship with government and other stakeholders. For change management it will benefit that what is going on in surrounding.

Objectives, policy making and completion: Other advantage is that by knowing the impact of change at irrelevant level on internal environment, the managers can set policy and implement change after careful consideration.

Human resource: The recipients of the change are the employees of the organization, whenever change is implanted. Senior managers should make organization most reliable for high performance of employees in competitive environment.

Technological problems: It is great and tough challenge for organization to acquire and combine the technology with organization’s tactic, structure and course of actions. In today’s environment, we can say that technology is the heart of economic growth.

CHANGES IN VODAFONE

Operational change was incorporated by Vodafone in order to achieve operational brilliances in the field of telecommunication industry; the operational change was implemented with greater level of management by Vodafone due to good experiences in telecommunication industry for many years. The continuing process of the organization may me disrupted by unplanned implementation of change ad may discontinue the ongoing operational process. Normally operational changes in organization make modification in work process. People do not want to accept changes because they don’t want to change their daily routine of the processes.

BEST APPROACH ADOPTED BY VODAFONE

Before adopting change, Vodafone shared the methods and consequences of change with employees. Vodafone considers the opinions shared by employees, and other stakeholders with great responsibility.

Operational changes:

The change was implemented by Vodafone in various sessions. Before implementing change in whole business unit, Firstly the change was implemented in one department of business unit system. The benefit of this is that it provides the opportunity to employees of Vodafone to understand, and recognize the change is occurring around them. This process of implementing change in slow and balances way helps Vodafone employees gain knowledge of new process rapidly and efficiently as possible. For this purpose the operational change was implemented in organized and planned manner by Vodafone.

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Strategic changes:

When there is real and extensive need for strategic change in organization structure, Vodafone realizes and incorporates the strategic change. Strategic changes are very sensitive in internal and external environment, the strategic changes makes strong effects on the strategic policy of the company and in establishing the brand name of the company in the eyes of consumers. The strategic changes were handled by Vodafone for acquiring new marketplace and industries for their satisfaction. The problem faced by Vodafone in handling the change is changing to spirited environment, the ability to change quickly, competently, and fruitfully in all the incidences.

These organizational changes may involve in most of the cases different types and levels of loss for the organization and employees. For example, some extra efforts and input from different people are required in every type of change in organization for understanding the change in operation, the employee think that it is waste of time and resources, it can be used any other activity. On the other side most of the employees welcome the change and think that it’s a learning opportunity, some employees do not want to contribute time and energy required for change unless change is for the benefit of the employee and employees are dissatisfied with the current activities of the organization. Other reason for acceptance of change is some employees may like to discover any decency in the change.

IMPORTANCE OF CHANGE MANAGEMENT:

Change management is very important concept. It is an integral part of business management, but due to increase in information technology it creates seriousness. Good business can be operated by good change management system. Change management was very important for Vodafone because it has to compete with other telecommunication organization. Change management is not only to implement the new approach but it also include control of technology infrastructure telecommunication system in which changes are handled with organized, efficient, consistent, precise and limited approach. In Vodafone changes caused fro technology, increase in competition and new facilities which are required by customers. To provide high class of services like multimedia, good voice quality, rapidly connecting with people, high speed GPRS etc, changes are very important for providing these services.

REASONS FOR CHANGE:

There are many reasons which cause the change in Vodafone. Because the business of the Vodafone is depend on technology, the main factor for change is technology. Some of the other factors are following:

Purpose: In today’s environment changes are occurring in place of work. It is very important for the organization for the competition with other organizations to remain flexible and find new ways of doing business from which purpose can be achieved. The purpose of Vodafone is to provide competitive facilities to customers, so it causes the change management program.

Facilities: The change basically refers adjustment in services and facilities such as new policies, new need of customers, the services provided by competitor, implementing new technology for providing new facilities, change in structure fir providing new facilities, making new departments etc. Vodafone regularly changes the technology and implement the change for providing new facilities.

Exterior causes: Organizational change may occur due to pressures of environment like change in market demands, competitors new facility, financial limitation etc. due to technology and competitors new services cause the Vodafone to change the technology and provide new services.

Environment: The changes in environment also caused the organization to change such as political influence, legal problems, and availability of resources. Vodafone also needs changes in some services because legal environment may restrict in some conditions.

Involvement of third party: The investors may make pressures on management to take actions for improvement, it may cause change. When profits of Vodafone was low in initial stage the investors got involved, that cause a great change in organization structure.

Strategy: To increase the business value, the management may consider that to run the business effectively, some changes may be necessary in the strategies to achieve the business objective.

REASONS FOR THE COMPANY TO EMBRACE THE CHANGE

Those people who see on past and present only, can miss the benefits of future. We can say that change is law of life. Change is unavoidable. Every thing is changing regularly such as world, globe, procedure of business, method of communication etc. most of the people resist the change without analyzing it. The main reason for change e in Vodafone is technology. Due to this reason Vodafone has to change its structure, hire new employee, changes in facilities and services, training to employees, change its working environment. In short the increase in technology development everything has to change for using that technology effectively in Vodafone.

CHANGE MANAGEMENT PROCESS:

The change management process is the sequence of actions or steps which a change management tam has to follow for applying the change management to a plan or modification.

The phases of change management process:

The Vodafone must use following change management process model in order to achieve success in implementing change:

Phase 1: Preparing for change: In this step the management should first of all describe and explain the change management approach, select the members for team and prepare a change management team, develop finance model.

Phase 2: Managing change: It is a detailed planning and it also includes change management implementation. For managing change the change management team should develop plans for change management, and then take necessary actions for implementing those plans.

Phase 3: Reinforcing change: This process normally includes data gathering and steps taken for remedial actions. To strength the change the change management team should obtain feedback and evaluate it for effective change implementation, identify gaps, manage resistance, implement remedial action and when change gets success celebrate it.

STAKE HOLDER’S ANALYSIS

The organizational chart and relevant external bodies can be used for identification of the types of stakeholders. Before beginning the project formation it is necessary to identify all the relevant stakeholder groups for ensuring that all the items have covered. After identification the organization should discuss with stakeholders to identify their desires and views, consider them into the overall project requirement. We can say that this step is a consultative approach with each stakeholder to identify different needs, desires and wants of stakeholders and then include them in the project for change management. Considering the significant importance of individuals, their requirements, wants, desires and needs is a susceptible area and most organizations avoid discussing the relevance and importance of the other peoples. If the change management team has decided to discuss with stakeholders then the organization shall determine the best approach or way for implementing change. All stakeholders must e informed and have reasonable knowledge of what is expected form them and about their reaction. After consideration of stake holder’s level and project requirement level, management tam has the sufficient information of each factor of change plan and these factors contribute in making key decisions.

OTHER PROCESS FOR SUCCESSFUL CHANGE:

We have many experiences for change which we have faced during work and life, then why in initiating change struggle most off the organization fail. We observe that only 20% to 25% changes get success. The change is very important to remain competitive in the market. Due to nature of the business of Vodafone it is necessary for it to remain flexible and make modifications regularly. Whether the change is of an amalgamation or acquisition, reformation, main system implementation, or a shift. Change management is becoming a desirable main proficiency for businesses, it enable in achieving competitive improvement supported by their capability to change rapidly, and help in maintaining high performance and confidence. There are following key steps to ensure successful change:

Establish an unambiguous business underlying principle: Normally organizational change resulted from a business requirement or opportunity. The ambiguous in the underlying principles results in plan that seep away from their objective, gradually withdraw. For doing change every organizational proposal should be combined with business case. In this way the fluctuations in business situation can not be caused by change struggle. The features of change in business policy can only result in alteration or amendment in change proposal.

Review organizational promise: It motivates the employees to alter work. To ensure successful change the organization should know employee’s issues, determine their willingness, and study existing barriers.

Determine and express obvious outcomes: For improving organizational performance, workers satisfaction, faithfulness and efficiency, take some actions and be brave in stating them to achieve change. The organizations should attempt to determine in order to take appropriate action for successful change. Normally most of the organizations gauge satisfaction levels, not gauge the behaviors which will normally made from satisfaction. In every case we support our customers with organizational change whether the desired outcomes are quantifiable on not.

Put out the change: To success in this step some of the approaches must be followed. These approaches depend upon:

content of change

nature of change

culture of organization

Some of the specific approaches are following:

A complete development plan should be developed which starts from the change stage to point where results are able to seen.

Organization’s existing system and policies should be connected with the change efforts, if possible, and spontaneously make it as part of organization’s structure and policy and procedures.

For confirming the success of people in change situation, necessary performance support must be provided.

Above four steps basically cover the route for efforts in successful change. For success of the organizational change, there are also two extra continuing activities.

Managing organizational culture

Recovery from problems of individual and organization

RECOMMENDATIONS:

Vodafone should focus on long term business problem solution

Vodafone should consider the stakeholders both internally as well as externally (at local level)

for improvements in future and managing change Vodafone should:

provide training to employees dealing with customers and handling query

Vodafone’s current status of compliance with code of conduct should be available at local operating corporations

Vodafone should use the technique for reducing resistance and provide the employees any kind of incentive for accepting change

For achieving success in change implementation, Vodafone should adopt change management process.

Vodafone should determine the reasons for change and make analysis for their solution.

Vodafone should also consider both the advantages and disadvantages of current system and desired system.

Before any modification, Vodafone should know the stakeholders who will be affected from change and discuss with them for a better result.

Vodafone should observe the reasons for change and consider how these caused influence the organization.

CONCLUSION:

This report contained change management aspects of Vodafone and some general concepts. There are many approaches for change management provided by different theorist. One of the best approaches for Vodafone which they have applied is apply the operational change in different sessions. The change management plays very important role in organization because change is unavoidable. Every thing is continuously changing for example technology, our communication style, need of customers etc. so the organization should know the importance of change and for achieving desired result considers the how we can achieve desired result by changing ay aspect of the organization. There are commonly four types of change. In this report we analyzed the two changes in Vodafone and their approaches. Employees refuse to accept change because there may be ambiguity in reporting or hesitation among employees or think that change is wastage of time and resources or the change is not better for the organization’s objectives. For getting success in implement ting change the Vodafone can follow the change management process which contains three steps. For changing effective it is a good tool for preparing, managing and making the change. Its steps include preparing for change (select members for change management teal and define the change), managing change (development of plan and then implementation of change by using those plans) and reinforcing change (obtain feedback, identify gaps, take remedial action for implementation). Another model for successful change may include these steps. First establishment of a clear business rule or underlying principle, then determine the outcomes, review the promises impliedly or expressly done by the organization and in final stage carry out the change. The main cause for change in Vodafone is that the needs of customers and the services of the competitors are regularly changing, so for serving the customers and fulfilling the needs of customers and compete with the other organizations it is necessary for the Vodafone to modify its services. Other factors also cause the change in Vodafone which may include the purpose because it was very difficult for Vodafone to achieve its purposes easily so it becomes reason for change, another reason is the change in facilities, external causes and environmental conditions cause the situation for change, third party intervention in performing procedures for achieving desired result change in strategy causes the overall change in the organization. For future success in change management the Vodafone should consider both stakeholders internally and externally, observe the influence of environment, consider advantages and disadvantages, discuss with all effectors and should introduce incentive plan for reducing resistance.