Management communication -change management

The term ‘too big to fail’ is a belief that some organisations should effectively be shielded from collapse as they are of significant economic importance through beneficial financial and economic policies (Richards, 2016, p.28). While Australia Post has historically had a profitable and sustainable business model, the growing popularity of digital communications has driven changes to consumer behaviours.

New paragraph This has identified the need for strategic reform at Australia Post and has enabled them to expand into eCommerce and eGovernment solutions to avoid failure. Proposed Change Management Strategies included teleological and organisational culture change through the Organisational Development Phases to allow effective adaptability to organisation revitalisation (Samson & Daft, 2015, p.454).

NP The strategies include preparation for resistance through a force-field analysis scenario plan and crisis planning. A large-group intervention strategy will allow for organisation engagement, while an ambidextrous approach communication strategy will create centralised and procedural standardisation to achieve strategic alignment.

NP Further, stakeholder engagement strategies enable a cohesive approach. Kotter’s eight Stages of Change provide a tactic implementation strategy to communicate and enable change throughout its life cycle. Finally, sustainability and continuous development strategies maintain the change, and enable Australia Post to engaging in ‘future-proofing’ creating uniformity.

This is quite good, but Exec Summary needs to be in short paragraphs for quick access to key information.

The term ‘too big to fail’ is a belief that , some organisations should effectively be shielded from collapse as they are of significant economic importance through beneficial financial and economic policies (Richards, 2016, p.28). Australia Post identifies as one of these organisations, however technological advancements have brought about radical changes to consumer behaviours, placing significant pressures on its continued success. Major changes in direction at Australia Post are therefore required to avoid failure. Firstly, Australia Post need to diversify the workforce in terms of age and generational influences and secondly, strategic reform to expand into new markets and meet external forces. This Change Management Report will provide background information on Australia Post to investigate the impetus for the changes. The focus will then be on developing a comprehensive strategy to effectively communicate the major changes in company direction. This will incorporate a comprehensive communication strategy through application of existing theories. It concludes by providing recommendations for implementation and sustainability of the plan for the ongoing success and viability of Australia Post. √

Australia Post is a self-funded government enterprise responsible for Australia’s postal services. It operates Australia’s largest retail network and employs over 36,000 employees across 4,000 post outlets (Australia Post, 2015). Established over 200 years ago under ownership and operation of the Commonwealth Government of Australia, it underwent a corporatisation process in 1989 and has since been governed by the Australian Postal Corporation Act 1989 (Philipson, 2016). The Act requires it to meet certain legal and statutory obligations under Community Service Obligations (CSOs) when providing mail services to the Australian public (Customer Service Charter, n.d.). It is also required to conform to performance standards that meet the social, industrial and commercial needs of the community (Customer Service Charter, n.d.). While Australia Post has historically had a profitable and sustainable business model, the growing popularity of digital communications has driven changes to consumer behaviours and called into question its traditional business model (FAQs: Australia Post Reform, n.d.).

The culture ethos at Australia Post was developed when mechanistic organisational structures were considered the most effective business structure, with pyramid shaped levels of hierarchy with decision making and power concentrated at the top (Richards, 2016, p.11). Australia Post reflects this structure strongly today with rigid communication lines and authority based on position (Richards, 2016, p.11). This organisational structure results from a classical perspective as the focus was to achieve efficient, machine like functionality throughout the organisation (Richards, 2016, p.29). This structure has imposed barriers to implementing transformative change and as a result, Australia Post missed the opportunities presented in the recent technology revolution and the information revolution (Richards, 2016, p.36). √

The resulting drivers from external factors include environmental changes such as technology advancement and an increase in competition, with the introduction of globalisation, factors in which Australia Post are not currently adapt to compete. Strategic changes include improving the flow of information; effective redistribution of resources; improving competitiveness; improving entrepreneurial potential; business expansion and increasing co-operation, factors which also are restricted by Australia Post’s current business structure (Richards, 2016, p.58). In summary, society has changed radically, however the culture ethos and business model at Australia Post has remained unchanged (Richards, 2016, p.27), identifying a substantial problem as an impetus for change.

Further analysis into problem identification at Australia Post recognises an aging workforce within the organisation. The lack of age diversity therefore identifies as a further challenge and impetus for change, as continuous knowledge infusion through age diversification can drive organizational innovation, create high-quality problem solving, superior decision making, creativity and implement change more efficiently (Jisung & Seongsu, 2015). Australia Post is therefore planning a strategic reform to expand into eCommerce and eGovernment solutions as a new source of profit generation, a move which will see the recruitment of new staff, an opportunity Australia Post hope to utilise to diversify the workforce in terms of age barriers.

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Strategies for Change: Preparing for Change

The strategic reform identifies as a teleological change, in response to a build-up of external pressures that will include the downsizing and transitioning staff into different roles (Ryan, 2015), changes in senior management and an influx of additional staff being inducted into the organisation. The impending changes are known within the organisation and are feared, which is resulting uncertainty and disruption within the workplace, affecting employee morale, motivation and consequently productivity. A teleological model utilises goal formulation, implementation, evaluation, and modification of goals to adapt to the learning experience of the organisation (Tessier & Otley, 2012). √ However, to achieve this teleological change, a substantial organisational culture change is required as generational diversity will require a major shift of the entire organisations norms, values, attitudes and mindset (Samson & Daft, 2015, p. 451; Graetz et, al, 2011, 41) to accept change and new younger employees entering the organisation. By utilising Organisational Development, systematically planning the change process through behavioural science and knowledge techniques will allow for effective adaptability in organisation revitalisation (Samson & Daft, 2015, p,454).

Progressions through the organisational steps of organisational development allow for successful attitude and behaviour changes (Samson & Daft, 2015, p.456). The first stage is unfreezing, which involves communicating specific problems so that need for change is recognised (Samson & Daft, 2015, p. 456) as there must be a perceived need for change (Samson & Daft, 2015, p.459). This can be achieved by identifying and communicating the performance gap. Utilising a SWOT analysis, that is identifying the strengths, weakness, opportunities and threats, can create recognition and understanding the need for change within an organisational development model. Preparation for resistance can be determined through a force-field analysis scenario plan, to identify the forces which drive and resist change.√ Resistance include self-interest, a lack of understanding and trust, uncertainty and a difference in assessment and goals (Samson & Daft, 2015, p,461). S√ elective implementation tactics will also provide an effective strategy to prepare for change resistance (Samson & Daft, 2015, p.461) with consideration for the three stages of crisis planning; prevention, preparation and containment.

To achieve Organisational Development and overcome the status quo (Graetz, et. al., 2011, p76), a large-group intervention strategy will allow for the entire system of the whole organisation to be rapidly transformed in a timely matter (Samson & Daft, 2015, p.455). The strategic reform includes downsizing, retraining and reallocating employees. An analysis of Psychological Contract Theory establishes that downsizing may be considered a violation of the mutual trust that exists between employees and employers, which can lead to employees reducing their discretionary work effort and negatively impact organisational goals (De Meuse & Dai, 2013). Good point. To reduce the likelihood of breaking this mutual trust, the large group intervention will enable participants from all parts of the organisation to come together to discuss and plan for change collectively (Samson & Daft, 2015, p.455). Communicating humanistic considerations to identify the need for change through utilising participative management as it creates a desire for employees to participate in the solution (Anacleto, 2014). √ Offering voluntary redundancies, will remove violation of trust and the burden of “survivor syndrome” on remaining employees (De Meuse & Dai, 2013).

The second stage of organisational development includes communicating the plan and vision for change (Samson & Daft, 2015, p.457), combining the convergence of planning, organisational development and communication into a cohesive corporate level strategy. The large group intervention strategy will take on an ambidextrous approach, to implement innovative change through centralised and procedural standardisation (Samson & Daft, 2015, p.436). √ To achieve this monumental change, the traditional planning approach of a central planning department will be utilised, enabling guidance to be provided to the managers and employees on a branch level for strategic planning activities (Samson & Daft, 2015, p.299). Branch levels are then able to utilise the guidance for innovative approaches to planning in respect to more functional-level strategy (Samson & Daft, 2015, p.300). This approach will allow for the strategic objectives to be effectively and efficiently communicated throughout the organisation to achieve strategic alignment and defining goals for success measurement (Samson & Daft, 2015, p.312). This is consistent with Barnes & Schmitz’s (2016) recommendation that change programs should be designed and implemented in ways that create stakeholder engagement directly. √

For a cohesive strategy, stakeholder engagement should also play a key role in the changes (Braica, 2013). To re-align its business model and structure to the environment in which it operates, engagement with stakeholders should be targeted to ensure its proposed changes would be accepted and suitable (Dunphy & Stace, 1993). A national stakeholder engagement program should achieve synergy and create value through exploitation of the core competencies (Samson & Daft, 2015, p. 313) through educating, informing and engaging all stakeholders. √ Mayfield (2014, p.68), advises that listening is the ‘most powerful influencing strategy’. He further proposes that organisations must show that they are genuinely interested to break down any barriers to change and encourage a focus on the need for change, principles which apply to both internal and external stakeholders. This is good but include some specific strategies re implementation process across all levels of organisation.

To continue, the ‘Changing’ phase of Organisational Development, implementation of tactics and tools will develop a framework for the changes to be made. Kotter’s Eight Stages of Change provide a tactic for programed implementation to strategically address the changes and overcome turbulence, generally experienced during this rapid and unpredictable phase. Firstly, through creating a sense of urgency, motivation for change will be created through broad and dramatical communication, resulting in aggressive cooperation throughout the organisation and as a method of challenging the status quo (Appelbaum, et. al., 2012). The second stage involves creating a coalition of change champions or leaders, demonstrating visible and continuous support from the top, throughout the organisation for strategic transformational change (Appelbaum, et. al., 2012; Brown and May, 2012). Change leaders must establish direction, align the people, motivate and inspire and finally produce change (Graetz et. al., 2011, p.145). Development and communication of a clear vision to empower and encourage (Appelbaum, et. al., 2012), are essential stages of Kotters framework and will enable strategic alignment throughout Australia Post and additionally demonstrate preventative measures to reduce change resistance by overcoming potential uncertainty. Kotter also recognises empowering people culture and short term achievement will instil confidence in the change, therefore a bottom‐up approach through empowered front line employees is important for successful cultural and organisational change (Appelbaum, et. al., 2012).

The final two stages focus on the “Refreezing” phase of organisational development and include consolidation and efforts to maintain momentum for change with employees beginning to regard the changes as normal. Anchoring the change prevents old habits returning through demonstration and reflection the benefits of change (Appelbaum, et. al., 2012). √ The ‘Open Systems Theory’ principle of Homeostasis defines an organisation will strive for stability and routine, achieving sustainably following change. Utilising the Kotter’s framework as a tactic for implementation will enable both organisational structure and culture change to support the strategic reform of the organisation revitalisation and generational diversification at Australia Post. Continuing stakeholder engagement by communicating completion of the change will firstly, establish the brand in the eye of the public and secondly, reiterates the change vision internally, further endorsing the finality and completion of the change. Continuous investment into ongoing staff training and development will ensure it maintains a workforce with the skills and competencies required to maintain the changes implemented and remain competitive in the constantly changing environment (Miles & Snow, 1994; Xu et. al., 2006). √ This will enable Australia Post to engaging in ‘future-proofing’ to sustain the change, creating uniformity. Comment by Anne Richards: Wrong word. Rephrase

Yes but include specific ongoing monitoring strategy. How will this be gauged?

In conclusion, radical changes to achieve age and generational influence diversification and an organisational restructure to enable strategic reform for expansion into eCommerce and eGovernment, Australia Post must achieve this through teleological and cultural change. Engaging the three Organisational Development Phases including Freezing, Changing and Refreezing will enable effective adaptability to the organisation revitalisation. Applying a crisis management approach, crisis planning including prevention, preparation and containment will address resistance to change within the organisation. Application of large-group intervention strategy will enable the entire system of the whole organisation to be rapidly transformed in a timely matter, with stakeholder engagement creating comprehensive strategic alignment. Implementation of the changes through Kotter’s eight Stages of Change will enable successful cultural and organisational change to accept the strategic reform and diversification incentives. Communication initiatives to consumer stakeholders will establish change and continuous investment into ongoing staff training and development through the momentum of the change initiatives will drive stainability and continuous development to sustain change and allow Australia Post to remain competitive.

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1. Apply the change management strategy of Organisational development to achieve attitude and behaviour change (Samson & Daft, 2015, p.465).

1. Engage in scenario planning and crisis management to consider external influences and internal responses to potential changes (Konno, Nonaka & Ogilvy, 2014).

1. Apply Kotter’s eight Stages of Change for programed implementation and large-group intervention strategy to rapidly transform the organisation to strategically address the changes and overcome turbulence of the strategic reform.

1. Continuously engage in stakeholder engagement communication strategies to enable co-creation of value and strategic alignment with external pressures (Davis et al., 2011).

1. Invest in continuous staff training and development to ensure continuous development and sustainability (Buchko, 1994; Day-Yang, Shou-Wei, & Chou, 2011).

1. Continuously re-assess alignment with the external environment and technology developments to implement regular incremental changes, allowing revolutionary change (Davis et al., 2011).

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