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Change Models used in the Takeover

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1.    Introduction

Change is the only thing which is constant, whether it is life or organization. Change is essential for every organization in order to sustain in market and grow. However, it completely depends on how successfully the organization manages change. Change management can be effectively undertaken utilizing various change models developed by great philosophers. However, there may be many hurdles in implementation of these models due to resistance of change from stakeholders. These hurdles can be taken care of using various strategies depending on the situation and the kind of change. 

In this report, the case of Everything Everywhere (EE), the largest mobile producer, takeover by British Telecom (BT), the dominant company in broadband services, has been analysed. After the appointment of Olaf Swantee as the Chief Executive Officer of EE, he laid off many senior level employees. His strategy was to bring cost cut and improve the customer service which will lead to improvement in revenues. Though he took some harsh decisions, EE progressed in revenue and turnover. However, the next move of EE takeover of BT required some improvement for successful takeover(Neate, 2011).

This reports discusses about the various leadership styles, change models and various strategies to manage resistance of employees to change. This report has attempted to recommend the leadership style Olaf Swantee should follow, and change models that can be utilized. In addition to this, this report also recommends various strategies to manage resistance for the EE takeover of BT.

2.    Leadership Style of Olaf Swantee

Over the years of analysis, different styles of leadership have been observed.  Leadership may be situational or transformational depending upon the person implementing it, also the type of work and kind of the working environment.  In a way to see, both the styles are effective and approaches towards organisational leadership. Let us consider both the styles in spotlight.

Situational leadership is a kind of management style which is developed by the gurus like Ken Blanchard and Paul Hersey. Situational Leadership banks on the idea that there is no best style of leadership. Successful leaders are the ones who can adapt their style to any given situation. It consists of following 4 main types(Joseph, 2015):

·       Coaching: This needs great deal of leadership style that involves a lot of hands on involvement in an employees work process. This style would be most beneficial when employee displays his/ her weaknesses that need improvement.

·       Directing: This involves taking over a challenging situation and applying specific knowledge and experience towards the right direction. It also includes framing of goals and objectives for work that are clearly established to the staff.

·       Delegating: This style places more weightage on shoulders of employees than the manager, since manager provides guidance and support only when requested by any of the employees. This style is most effective when staff is more experienced and with the capacity of working independently.

·       Supporting styles: Here, manager plays more of a motivational role, where the main function of manager is to instil confidence in workers, leading them on becoming more self-sufficient and productive.

In transformational leadership, the leader mainly focuses on taking up visionary position and motivates his fellow employees towards the achievement of the goal. It often provides right make up for the team to flourish. It quite well works as an incorporation of different theories to that encapsulates leading through inspiration(EBA, 2015).

A new dimension to this theory was added when it provided the base which was ethical and moral based in leadership and focuses on 3 main ways to transform the fellow people:

·       Inculcating the culture of bringing up importance of the tasks

·       Directing their focus, more towards the team goals than the individual interests

·       Higher order needs activation and motivation for success

Moreover, leaders in this style create succession plans developed by people, whereby allowing them to take up the initiative.

Transformational Leadership model may be considered as following cycle(EBA, 2015):

·       Idealised Influence: Lead by example is the key, while setting up the expectations.

·       Intellectual Stimulation: Encouraging learning and growth.

·       Individual Consideration: Coaching and empowerment towards success.

·       Inspirational Motivation: Motivating to achieve new heights.

Considering Olaf Swantee, Chief Executing officer of EE, in running up the UK’s leading Communication Company. Before this, Olaf was a member of the Orange executive board, heading the Group’s Europe large division. In addition to this, he ran the chain of purchase and sales worldwide of the company(ME, 2015).

He can be considered to be implementing transformational leadership style since he envisions through a future in the field he is active in. He has a vision further also putting up the expectations for the Gen Y employees. Apart setting up the expectations, he also states cost and advantages of the upcoming trends in telecommunication industry. In addition to this, he has persuasive kind of personality. He is very informal and open which portrays his transformational leadership style.

However, for his next role in the Everything Everywhere takeover of British Telecom, it is recommended to adopt the situational style of leadership. He can follow the blend of situational type. This will assist him in managing resistance to change, boost the morale of the employees which will improve their work efficiency. Olaf Swantee should focus on supporting style as this will build confidence among the employees for the takeover and employees in turn will support him in the process of takeover productively.

3.    Change Models used in the Takeover

 

3.1 Change Management

Change Management can be described as process of utilizing various techniques and tools to manage the change in organization in order to achieve desired outcome. Change Management requires alteration in various disciplines of company such as strategy, structure and culture depending on the change in environment. Change Management integrates various change models to utilize tools that assist the organization as well as employees in successful transition and desired result.

3.2 Motives to change

There are various internal and external factors that demand the need for change. These external factors could be change in market environment, technology, macro-economic factors or legal environment. The internal factors that demand change includes restructuring, span of control, upgradation of technology or change in processes of work.

3.3 Change Models

There are various change models proposed by philosophers to manage change in the organization. These models describe the techniques and steps that the organization can adopt in order to conduct smooth transition.

3.3.1 John Kotter’s Change Model

 

Change Models used in the Takeover

Figure 1: Kotter’s 8step Change Model

Source: Nauheimer, H, 2009. Change Model 3: John Kotter’s 8 Steps of Leading Change. 

John Kotter has defined 8-step model for effective implementation of change. This steps are explained below(Nauheimer, 2009):

1.     Form a quick sense to resolve: For the effective result of change, it has to be carried out quickly in order to evade loss of stimulus. The untimely or delay in implementation may lead to inefficiency of the change affecting the aim of change.

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