Business Transformation and Performance Objectives
Discuss about the Business Transformation and Planning.
Business transformation is regarded as a business-led, technology-enabled transformation programme in order to implement the infrastructural process and competence of the organization to deliver a contemporary revenue system. In a globalized era of unprecedented rate of disruption along with market turbulence, transformation in recent times have been revolving around the demands to generate improved standards and values in order to develop avenues and to drive improved growth and further deliver new productivity and efficiencies (Aspara et al., 2013). An effective business transformation can be regarded as an opportunity which surpasses the incremental transition by establishing opportunities to re-instate the business and operate models to deliver advanced value and growth. The process of business transformation incorporates strategic decision-making which influence the functioning of the organization along with the rate of performance improvements (Jeston, 2014). Leaders in business transformation implement well-established strategies which underpin a wide-encompassing range of enterprise-wide investment decisions, resource distributions along with performance expectations. It aids to shape an executable transition purpose whereby the value will reflect from the transformation (Mamic, 2017). Business enterprises which have provided funding for effective articulation of the transformational strategy can interpret the strategic objectives into pragmatic transformation which can further be executed by the organization (Müller & Pfleger,2014). Furthermore, these organizations develop an inclusive understanding and awareness of the way the business operations will be formulated, delivered and enhance their organizational value. The purpose of the paper is to provide a thorough evaluation of the importance of performance and organizational aims along with the interest of stakeholders in business change by relating one of the renowned supermarket chains called New World. The organization situated in New Zealand has gained a considerable degree of recognition for its customer service and wide range of products to accomplish the essential needs and demands of its customer base (Newworld.co.nz, 2018). In addition to this, the paper will focus on the requirements and demands of internal as well as external compliance requirements and risks relevant to organizational change and development by further providing a communication plan in order to highlight the process of transformation.
Internal and External Stakeholder’s Engagement in the business transformational procedure
Organizational management is influenced in a greater degree by the views and opinions of internal and external stakeholders which is referred to any group, individual or association that is further being impacted the business organization and thus has been considered as a fundamental entity of the organization (Storbacka et al., 2013). As employees are considered to be primary internal stakeholders, they tend to provide a contributory role to the development of strategy approaches as well as the functioning of the business (Mamic, 2017). Thus modern theorists tend to highlight a greater level of consistency which perceives that inclusion of employees is perceived as one of the most significant success factors of transformation along with the implementations of unique organizational concepts (Cameron & Green, 2015). It has noted that the engagement of employees enhances the situations such as the level of resistance within the process of business transformation. However, it has been identified that major proportion of change management strategy approaches were unable to achieve success because around 70% of neglecting the importance of human needs while the rest encouraged the involvement of proficient and methodological domains (Ceulemans, Lozano & Alonso-Almeida, 2015). Thus modern business enterprises have been promoting active participation of employees in the decision-making processes. Suppliers and distributors being one of the fundamental stakeholders influence and is influenced by the success of the organization’s goals (Weiss, 2014). As suppliers and distributors of a business is essentially concerned with long-term decisions, it is prudent to encourage the involvement of these stakeholders in the process of planning as well as execution of transformational business for the implementation of overall organizational success (Waddell et al., 2016).
Importance of involvement of internal and external stakeholders in the planning for the transformation process
Stakeholder Management and Organizational Change
Stakeholders can be regarded as any association or individual who tend to impact or further get influenced by the organizational accomplishment (Weiss, 2014). Thus stakeholder management has been considered as a procedure underpinned by set of standards which further ascertains the attainment of the strategic goals of the business organization by construing and persuading the external as well as internal environments by establishing positive associations with the stakeholder base through the appropriate management of the organization’s set of expectations (Ceulemans, Lozano & Alonso-Almeida, 2015). Thus the idea concerning the involvement of both internal and external stakeholders suggests that organizational leaders must effectively formulate and execute transformational procedures which would aim to satisfy all the members of the organization who possess a stake in the business (Storbacka et al., 2013). Furthermore, the management of the organization must effectively correspond to the requirements and demands of the business to the stakeholder base in order to ensure consistent achievements of the organization.
Performance and organisational objectives to achieve business transformation for New World Company
It has been noted that all business enterprises possess standard operational objectives which have been applied to each types of operation. However, these standard aims have been distinguished as ‘performance objectives’ and are further drawn into the assessment of current degree of performance to the following five years performance (Waddell et al., 2016). However the range of comparison has been formulated for the standardized purpose and can further facilitate the understanding of the performance level of the business. The two primary performance objectives can be analysed in accordance with New World.
- Quality- This objective indicates the production process of the business enterprise through distinctive approaches which facilitates the satisfaction level of consumer base and developing the efficacy of the internal operation procedures (Weaver, 2014). Quality being recognized as one of the essential entity in the domain of outbound products and further permits the organization in reducing expenditures (Weiss, 2014). New World Company must demonstrate enhanced quality performance among all the operational activities because of the implementation of supply chain management in past years further aim for the increase in satisfaction of final customer with minimal costs.
- Cost- In the retail industry, the cost driver is regarded as a potential mechanism to develop competitive advantage as lower or economical price range tends to attract greater range of customers and further improve the prospective target in order to develop the structural formation of the organization (Lawrence & Weber, 2014). New World must focus on the sustainability of economical costs within the operation procedures because of its internal system that further purposes to facilitate the achievement of enhanced quality of product but higher cost rather than focusing on reasonable cost range with the outsourcing assessments by its biggest competitor Napier Supermarket in New Zealand. Furthermore, New World will endeavour to establish in an economical market because of competitive supply chain formulation that further is immensely responsive towards its customer demands thus gaining high margin profits.
Business enterprises can distinguish the areas of concern and establish the essential objectives for their organizational functioning but further necessitate specific strategy approaches in order to enhance the level of advancement (Bocken et al., 2013). The transformational planning stage incorporates courses of action and identifies the outcomes which the company aims for (Katzenbach & Smith, 2015). In order to sustain the rate of transparency within transformational planning, New World Company must take into consideration two primary objectives in the course of this transition process.
- Sales and Profit- Financial goals are identified as fundamental to every business as they underpin the level of sales growth influencing the revenue generation of the organization (Bocken et al., 2013). Thus it is essential for New World Company to engage into both sales as well as profit objectives as increased rate of sales does not necessarily develop to a lucrative business. As a result, New World Company must aim to formulate its monthly sales outlooks and progress along with the amount of revenue it will generate.
- Production-Companies must sustain the level of their production with the elevating rate of their sales growth (Jay, 2013). Thus, New World Company must ascertain the process of its new system which can supply in accordance to the customers demand and needs. However, this organization must keep in consideration the persistent delays which might result New World Company to lose primary clients and get involved in poor reputation in the industry. Furthermore, if the New World Company effectively strategises production objectives in correspondence to its sales growth, the company will successfully develop a system to accomplish customer satisfaction and further provide superior customer service.
An ethical decision-making framework to overcome ethical challenges that could be caused due to business transformation decisions made by New World Company
Lewin’s Model of Change and Ethics
Change management is a similar concept implemented in all forms of organization whereby it incorporates the conceptualization of business transformation and the areas of ethical dilemmas faced by the organization. Lewin’s Model of Change and Ethics is recognized as a cornerstone theory of organizational transition. Lewin’s model of change and ethics involves three significant stages namely unfreeze, change and refreeze (Hayes, 2018).
- Unfreeze- This stage, recognized as the initial phase engages into reducing the forces which tend to sustain the current status quo pertaining within the organization with either the rise of the motivating forces further condensing for of control or implementing the amalgamation of both. Thus in order to successfully prepare New World Company for an effective transition, it is essentially important for the company initiate from the core (Cummings, Bridgman & Brown, 2016).
- Change- It primarily focuses on relating actions concerning the target system to the anticipated state of equilibrium and further creates intervention in the system in order to develop new behavioural, attitudes, principles and ideologies by implementing transitions within the organizational structure or processes (Hayes, 2018). The managers of New World Company must shed light on the course of individual transition in the changing environment.
- Refreeze- The third stage essentially aims to assist people in order to institutionalize the organization and further inculcate necessary and desired transformations. Thus New World Company must focus on strengthening new patterns and further institutionalize them through the means of both formal as well as informal tools (Cummings & Worley, 2014).
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Stakeholder engagement strategy |
Stakeholder mapping |
Action plan |
Lewin’s Model of Change and Ethics
Stakeholder Management Strategy
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Through several distinctive sustainable programs, New World Company has successfully established a strong framework for the company’s organizational engagement with distributors on vital challenges such as climate resilience. Furthermore, multitude of communication as well as media networks establish platforms for such engagement programs whereby the company anticipates to raise knowledge and awareness relating to the essential sustainable areas of concern. |
New World Company might encounter several forms of challenges in the process of implementing change. Thus the company must implement stakeholder mapping (Bocken et al., 2013). |
SMART GOALS Specific- In the process of supply chain management system, New World Company must formulate insistent goals for reducing the defects in products and further enhance effective communication plan. |
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The company aim to establish an enhanced society through the means of innovation as well as sustainable development. |
Identify- Identification of stakeholder who is involved in the outcome of the transition process of the company. The managers of New World Company must take into consideration that failure of the identification of stakeholders will have severe impact the delay of the processes (Fulton et al., 2013). |
Measurable- New World company must implement similar importance in the process of demonstrating design to an increased rate of ordinary tasks of business execution and attain successful outcomes (Cummings & Worley, 2014). |
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New World Company must develop their effective stakeholder management competencies in order to provide contribution to a successful outcome. |
Analyze- This step signifies the roles and anticipations of the stakeholders who possess a considerable rate of potentiality to act in the organization’s transition process (Sayce et al., 2013) |
Achievable- Through the achievement of the experience, the company establish, aim to reach to attain more sustainable objectives. |
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Prioritize- New World Company through the segmentation of stakeholders can formulate strategic plans into appropriate levels and focus on the following questions-How to manage stakeholders closely? How to keep them informed? How to formulate proper supervision? |
Realistic- Whether a team within the company is establishing goals in order to reduce time and further enhance the level of customer satisfaction. |
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Engage- In this final stage, the New World Company aims to involve their stakeholders in order to attain their support and understanding further creating a foundation of a successful communication plan. |
Timeframe-Establishing controllable timeline and sustain effectivecommunication comprising all entities tend to elevate the company’s goal establishment strategies. |
Analysis of 2 internal and external risk factors associated with organisational transformation
Factors related to which can be defined by demonstrating to any element which can reveal pose threat or may create limitations to the competency of organisational growth.
Internal Risk Factors
- Technology- The developing rate of advanced technologies can be recognised as one of the critical factors which can pose immense risk to transformation procedure of the organisation (Mohan & Paila, 2013). In the globalised era whereby certain technologies have lost its importance well-established organisations such as the New World Company must implement appropriate knowledge management system (KMS) in order to condense the impact of potential risk associated with organisational transition process (Fulton et al., 2013). It is important to note that all technology adoption projects do not have the capacity to function in an effective manner does resulting to downside risk.
- Operation- Operation risk management can further play a crucial role in the process of organizational transformation (Porter & Heppelmann, 2015). Operation risk management includes evaluation and implementing risks resulting to the acceptance mitigation or avoidance of risk.
External Risk Factors
- Political factors can act as risk agents which initiate at the high level management. Higher level management must comprehend the understanding of local as well as global directives within the nation in which they want to start the capitalisation further developing knowledge related to local regulations which can create direct influence towards organisational transformation process (Mohan & Paila, 2013).
- Competitor- Knowledge of competitive organisation and their level of proficiency is regarded as an initial point in dealing with competitive risks in the organisational transformation process (Porter & Heppelmann, 2015). Thus effectively monitoring development of competitors can help organisation mitigate any unanticipated situation and further evaluation of innovations of rivals allows organisation to recognise market position and further implement effective decision making process.
Analysis of Internal and External compliance requirements for organizational transformation
The execution of external and internal compliance operates in most of the organizations for several years. With the recent advancement of operational risk management as a fundamental discipline in its own right, the association between the two disciplines require thorough understanding.
Internal compliance requirements
- Streamline Compliance- The most effective approach to mitigate violations has effectively been embedded in the compliance performance into the core of the business procedures. This further initiates with the range of management activities and further persists through the distribution operational activities and further accomplishes way to financial document reconciliation. Streamline compliance is immensely effective for product and service flow of any organization.
External compliance requirements
- Retail compliance- It facilitates their level operations as they execute their operations towards the configuration of retailer requirements. Furthermore, transformation of procedures must accomplish the demands of the retailer base and further be perceived as an appropriate opportunity for distributors to create developments to the company’s supply chain management.
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Purpose |
Compliance requirements to be communicated to internal stakeholders |
Two (2) roles and two (2) responsibilities of internal stakeholders to ensure compliance with organizational policies for organizational transformation |
Performance indicators required to keep track of employee performance |
Training required for employees to reduce their resistance to change during transformation process |
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The organizational structure will transform from August 1. |
Streamline Compliance- Top-level electronic data interchange can facilitate the retailer-specific strategies as well as packing slips. In the upcoming days New World will be able to update the entire essential a distributor demands and requirements in order to understand the way New Company is evaluating the data. |
Change management team must develop change management strategy as well as approaches. Executives and senior managers- Must aim to initiate transitions which affect the regular work of the New World Company. |
Financial Metrics- Revenue- It is recognized as one of the vital performance indicators to comprehend the achievement of the organization. Costs of Products Sold- Through tally and evaluation, company can get improved knowledge of product gains. |
Education and effective flow of communication: Wide range of strategise approaches can be constructive and further capitulate effective consequences with proper implementation of communication. |
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Increase the communication process with profit and loss accountability. |
Retail compliance- In order to make the change management more proficient, New World must influence the knowledge as well as ideas of the wider range of teams. |
Process Metrics Customer Support Tickets- Evaluation of a series of new receipt will aid the company to formulate enhanced customers service in the retail industry in which New World Company is operating. Percentage Of Product Defects: Aim to evaluate the percentage level of sales in the time frame we are assessing. It will aid us to understand the percentage level of defective products. |
Agreement & Negotiation: This process of induction involves proper process of negotiation with the resistors in transition process by establishing mutual working environment and formulating transition within the employee base |
Conclusion
It is to conclude that transformation is a universal entity which influences all organizations. However, it has been noted that the rate of transition has never been greater and decisive than in the present persistent developing business environment. Thus successful business transition is recognized as an immensely required skill. Though current organizational transformation processes have a propensity to be reactive thus the paper has evaluated the level of performance and organizational goals along with identifying the engagement of internal and external stakeholders towards change management. Furthermore, the paper provided a stakeholder management strategy approach in order to formulate the strategy approaches of the stakeholders with mapping framework and SMART Goal plan. The paper has explicitly identified the internal and external compliance requirements as well as the risks associated with organizational change management by further providing a communication plan to formulate strategic communication strategy.
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