LEADERSHIP AND CHANGE MANAGEMENT

MODULE CODE –RBP020L063V

JULY- 2020

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 TABLE OF CONTENTS
1.0 INTRODUCTION …………………………………………………………………………………………….…...3
2.0TRIGGERS and CAUSES …………………………………………………………………………………….….4
3.0 ORGANISATIONAL, CULTURAL AND SOCIAL DIMENSIONS OF CHANGE ……………....6
4.0 RECCOMENDATIONS………… ………………………………………………………………………………..9
5.0 CONCLUSION………………………………………………………………………………………………………13
6.0 BIBLIOGRAPHY...……………………………………………………………………………………….……….15

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1.0 INTROUCTION

This report will review the transformation at British Broadcasting Corporation Worldwide.
Analysing the triggers of the changes using PESTEL analysis .The report will review the
Organisational change, and discuss the role of culture within an organisation impacted by
factors such as politics and power. The report will make recommendations on the key levers
required to lead organisational change, focusing on leadership attributes, employee
engagement and organisational development.

To maintain a sustainable competitive advantage organisations need to be prepared to deal

with forced or planned change. Change Management can be a powerful tool used by leaders
as a source of growth for future benefit however many organisations don’t embrace change.
There are a variety of reasons there is a resistance to change. (Williams, 1993) Organisations
that want to be prepared for the uncertainty of the future are change friendly, not resistant
and this allow them to build on current performance while maximising long term potential.
(Kanter, 1997).

BBCW is a wholly owned subsidiary of the BBC. Referring to Minztberg’s 5 Organisational

structures it can be classified as a machine bureaucracy, with a high degree of formalisation.
(Lunenburg, 2012) BBCW had lost relevance with its customer base. Content usage and
customer preference was changing, competition was intensifying and it was an organisation
low in morale and resistant to change. Technology and using innovation as a driver of
change can be met with resistance as many organisations do not spend time understanding
what the root cause of the resistance to change is . (Lee, 2020) BBCW has 1800 staff
members globally spread across 18 offices in the UK, AUSTRALIA, NZ and NORTH AMERICA.
The organisation found it challenging to attract talent with a limited talent pool available
within the media industry. The role of the leader Tim Davie in driving a top down approach
and the change in leadership style of the GLT working closely with WEx were key
components of the transformation and culture change at BBCW.

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2.0 TRIGGERS and CAUSES

The PESTEL framework provides a tool to identify and analyse the changing macro
environment. (Glaister et al, 2009). BBCW needed to identify key factors to complete an
analysis on the macro-environment environment. (Evans& Richardson, 2007) .The “general”
environment affects firms. (Bourgeois, 1980)

Figure 1: PESTEL Analysis Table.

The environmental factors evident from the economic, socio-cultural and technological
changes to the environment were the most evident when considering the requirement for
an evolutionary change at BBCW. All external influences that impact the life and
development of an organisation can be described as its environment. (Andrews, 1971)

The economic factors were driving the need for change at BBCW. The impact of lost
viewership and not offering updated content to the customer has a flow on effect to
profitability in the form of advertising revenue and not attracting a new audience to grow
additional income streams. The ever evolving competitive landscape and the adjusting
cycle of market and economic trends were key indicators.

Implications of economic reform can be extreme and could present larger adaptation
challenges for the employees left in the organisation. (Ginsberg& Bucholz, 1990). BBCW
would need to ensure the redundancy program did not impact revenue and income
generating capability across areas such as sales and marketing. Employee retention,
maintaining and attracting top talent was also an issue for BBCW.

It is important to analyse the Socio-Cultural factors impacting BBCW. BBCW was an

organisation steeped in tradition with unique ways of working which had evolved over a
period of time. Habits take longer to change and develop over time which means change is

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gradual. (Nelson & Winter, 1982) In built core rigidities can impact the capability of an
organisation to change. (Gerick and Hackan, 1990) Shifting from divisional to geographical
lines of management would in time contribute to better ways of working and less silo
activity. Changing and adapting can be costly and difficult to implement. (Argyris &Shon,
1984) Changing behaviours of the audience that used to form part of the BBCW audience
and how they consumed content was a key trigger of the socio-cultural impact. There was
also a negative feelings toward the GLT that manifested itself in limited communications. .

Technology triggers that can bring about change can be both related to innovation and
digitization within BBCW. A lack of investment previously in content has impacted customer
preferences and magnified the competitors offering. Consumers are using the internet to
obtain significant volumes of information, this style of usage has penetrated households.
(Victorino et al, 2005) Mobile technology enables a far greater reach to a transient customer
base that is not reliant on the traditional channels of entertainment. BBCW needs to evolve
and change or risk becoming irrelevant in a fast paced changing digital economy. Taking up
technology to lead should be a priority for a business. (Fernandez et al, 2011)

The PESTEL framework is easy to understand. It provides a clear indication of the

environment and what particular factors are impacting the business. (Needle, 2010) The
implication is there is a risk of oversimplifying, and given how dynamic the environment is
continuous review could take up too much time and lead to continual reviews, that then
impact the speed of change. (Godfrey, 2015)

After examining the environmental factors it is important to diagnose and review the
change journey undertaken by BBCW. When referring to an organisation as a system that
system is interlinked, beginning with the changes in the environment that leads to a
structural change that is then linked closely to the politics of an organisation that then
contributes to the culture of an organisation.

A way of defining the type of change implemented at BBCW is to combine the speed of
change with the extent of change. (Hailey & Balogun, 2002) From the 4 types of Change
referred to by (Hailey &Balogun, 2002) the nature of change was incremental , resulting in
a transformation that occurred between 2012-2015 and can be defined as an evolution

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rather than a revolution that occurs when a Big Bang approach is undertaken . (Hailey&
Balogun, 2002)

Figure 2: Scope of Change Table. Adapted from (Balogun & Hailey, 2008).

3.0 ORGANISATIONAL , CULTURAL AND SOCIAL DIMENSIONS OF CHANGE

BBCW progressed through 4 main stages of the transformation. In 2012 after a review of the
macro environment BBC implemented a Structure change. A structure allows an
organisation to fulfil its function in the environment. (Nelson &Quick, 2011). In 2013 Tim
Davie the new CEO provided clarity on the Strategy, in 2014 the Cultural change journey
began, the final change was related to Systems and the implementation of a new office in
2015.

The evolution of the transformation at BBCW is exhibited in the force field of change.
(Lewin, 1943) It exhibits the evolution of the journey however critics question how the force
field model is perceived and does it provide the same relevance as when it was first
designed in 1943. (Quinn, 1980, 1982; Gersick, 1991; Wilson, 1992; Romanelli and Tushman,
1994,)The criticism of Lewin’s model is in part to the how old the model is and if the ever
evolving changes in organisations make the model too simplistic and too mechanistic??
(Burnes, 2004) Lewin’s model in relation to BBCW is reflected below.

Figure 3: Lewin’s Change Model. Adapted from Lewin (1951).

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A management consultant Peter Drucker once said “Culture eats strategy for breakfast”. It is
a term used often used to articulate that the best laid strategies and plans can come
unstuck if organisations don’t understand the culture and how things actually get done.
(Favaro, 2014) Culture is engrained and while resistant can evolve and change over time.
(Bate, 1996) There are inherent ingredients of culture within an organisation (Brown, 1995)

Some of the key ingredients inherent within an organisations culture are behavioural and
artefacts, attitudes and values and basic assumptions around what is important to the
members of the organisation. (Schien, 1990) This model of organisational culture is
representative of BBCW.

The structural change from divisional to geographical in 2012 was disruptive for staff. It
included redundancies and the whole organisation had to adapt to the change, this would
entail changing the basic values, assumptions and beliefs staff had in their connection with
BBCW.

Identifying risk and differentiating cultures in terms of the speed of feedback is useful in
classifying cultures into specific classifications and provides a framework for comparing
cultures. (Deal and Kennedy, 1982) These classifications include the Tough guys culture,
macho culture (high risk and rapid feedback), Work hard/play hard (low risk and quick
feedback) and Bet your company culture (high risk and slow feedback)

BBCW can be identified as a Process Culture. The key indicators are slow feedback and low
risk. BBCW is process oriented and unreactive to the changing landscape and market place
evident by its slow response to changing consumer behaviour related to content usage. The
process of running the organisation in divisional departments slows down the decision
making. This type of culture is evident in public organisations. While classifications assist in
providing a framework it is a descriptive explanation that does not allow the opportunity to
truly analyse what the process involved was in the formation of the culture. (Furnham and
Gunter, 1993). Tim Davie in 2013 became CEO. One of the first things he did was to clarify
the purpose, this was the first step in shifting the culture as he focussed on communicating
a clear strategy with the 3 key objectives. Tim Davie views was that day to day difficulties
and lack of clarity was causing unhappiness, and the business was not listening or acting on

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the challenges of the employees. This internal environment contributed to the Process
Culture.

Power and politics are part of the fundamental dynamics of an organisation. (Camm,
2013).While organisations portray themselves as teams pulling together, the workplace is
often embraced in political situations where individuals exercise forms of power. (Camm,
2013)

The use of power is at the core of leadership. (Greenleaf, 1977)There are key sources of
power that contribute to how a leader can change and manage culture within an
organisation. (French& Raven, 1959) used various descriptions to define sources of power.

Positional power is a perception to have a right to influence. (Camm, 2013). This perception
is based on the formal position such as a CEO in an organisation. This power can be acquired
through election such as Tim Davie being promoted to CEO in 2013. Additional uses of this
form of power include controlling decision process and control of teams.

In 2014 BBCW looked to dial up the culture. Tim Davie further enforced this by wanting to
see true alignment by making the workshop sessions compulsory. The culture drive at BBCW
would only be successful if the GLT were “living and breathing “the values’

Expert power can be defined as the skills and knowledge and professional abilities of a
person. (French Raven, 1959). In 2014 Tim Davie creating a dependence on the HR Director
to take the lead in the transformation and cultural journey of BBCW along with the key
strategic hire of Global Director of OD. This appointment provided a resource and created a
dependency that was difficult to replace. Expert Power is related to the concept of
dependence. (Steers, Ungson, & Mowday, 1985).Kristen Furber the director of people is an
example of an Expert power to ensure the investment in dialing up the culture drive was
clear for all of WEx and GLT. This allows the GLT to own and be part of the culture drive.

Expert power also brings about a willingness in an organisation like BBCW to trust the expert
in taking ownership .By employing a professional to implement the changes Tim Davie was
also sending a message to the GLT that the HR functions goal to improve the overall
capability of the team was important to him.

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Power is inextricably linked with politics within organisation. (Vigoda, 2002) . While power
contributes to the cultural dimensions of an organisation politics impacts or contributes to
the social dimensions. Organisational politics can be referred to as acts of social influence
that provide rewards and promote self-interest. (Cropanzano et al, 1995). Social impact of
the politics at BBCW were evident in silo working environments, the impact of lack of
accountability and recognition. Power and Politics can also contribute to emotions felt by
employees and how they share feelings such as motivations and commitment. Employees
who are treated with respect and dignity exhibit behaviours such as increased effort and
loyalty. (Wiesenberger et al., 1986; Eisenberger, Fasolo and Davis-LaMastro, 1990). The
politics played out, including members of the GLT not being known as good leaders and
failing to be tough when required. 360 degree feedback was introduced on the leadership
team as this can identify “who are just playing the game “(CIPD, 2015), a clear example of
internal politics.

Through surveys and town halls employee voice was able to be heard. This contributed to
the 11 broad themes that were identified including taking personal accountability, moving
away from silo working, improving trust and respect, pioneering new ways of working and
recognising and celebrating individual and team success.

One of the key aspects of the cultural and social journey was the opening of the new office
in 2015, it was symbolic. Culturally , the importance of having everyone on one floor ,
breaking the silo habit of working with TV screens up actually made people feel more part
of a media company . Implementation of the Global rewards programs, development
opportunities like “Hot Shoes “and evolution of the transformation was evident.

4.0 RECCOMENDATIONS

Leadership

Leadership theories have evolved over the last two decades that help explain what roles
leaders play in initiating organisational change, shaping culture and managing social
impacts. (Balkundi & Kilduff, 2005; Balkundi, Kilduff, & Harrison, 2011; Hannah, Lord, &
Pearce, 2011; Marion & Uhl-Bien, 2001; Uhl-Bien & Marion, 2009). Leaders have the ability

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to shape behaviours that guide how groups behave within an organisation in a top down
direction. (Mayer, Kuenzi, Greenbaum, Bardes, & Salvador, 2009; Schaubroeck, Hannah,
Lord, Trevino, Kozlowski, et al., 2012).

A key theory of leadership focuses on a model that encompasses four types of leadership.
Directive, transactional, transformational and empowering. (Manz & Sims, 1991) This is on a
perspective that leaders use certain styles depending on the situation. Leaders requires
strong vision and excellent communication to drive commitment to an organisational
change.

Transformational types of leaders exhibit certain behaviours encompassing charisma, are

engaging role model the behaviours and have high expectations of the team to drive
outcomes. (House, Howell, Shamir, Smith, & Spangler, 1993; House & Shamir, 1993). A
recommendation for Tim Davie would as part of being a transformational leader is to
provide clear direction for the team. By implementing initiatives such as HOT desking and
and HOT Shoes he was setting the expectation that his investment in culture was to drive
better business outcomes.

Transactional leadership focusses on the exchanges that occur between leaders and the
teams. Increasing flattening of management structures within organisations share the
responsibility of leadership and empowers teams. (Mohrman, Cohen, & Mohrman, 1995)

Leaders cannot do everything. That would make them an ineffective leader and at best part
of a broader management team that gets “stuff done “ .What is critical in understanding
leadership is the effectiveness of a leader in his style and approach to empower teams to be
more effective . (Hollenbeck, Ilgen, & Sego, 1994; Pearce & Sims, 2000) Davie needs to
continue to work on this with the GLT, they need to own and drive business outcomes with
the help of an engaged workforce.

Both transformational and transactional styles have implications in design. Transactional can
be overly directive and reliant on a rewards framework. While transformational styles lack
impact of the situation on the effectiveness of leadership. (Yukl, 1998)

Leadership and the style of leadership in BBCW was a critical component of driving
transformational change. The journey from unfreezing to freezing include the CEO

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displaying transformative leadership which needed to develop from a transactional style
that had been exhibited across the GLT previously. GLT previously were an ineffective group
that were not aligned to the organisational priorities. Tim Davie style communicated
improvements and commitment to team development and strong relationships. As part of
his leadership style the further recommendation would be to continue to look for global
excellence with a continued investment in his top talent.

Organisational Development

Change is constant and it needs the process of Organisational Development to successfully

implement. (Burnes, 2004)

Leaders of organisations that drive transformation should have a clear understanding of

culture pertinent at the start of the transformation. OD can help guide the organisation with
this journey and is a critical piece of ensuring the organisation has the capacity to be
sustainable in the long term (Cumming & Worley, 2013)

Kotter’s 8 step model focussed on the holistic approach connected to the change journey of
an organisation. (Jalgat, 2016) A transition from present state to desired state needs to
consider maximising resources and minimising cost to be beneficial. (Hotho, 2008)

Figure 4: Kotter’s 8 Step Model. Adapted from Kotter (1996).

Implementing the model is important but can be ineffective unless the benefits of change
help sustain competitive advantage in dynamic global environment. (Jalgat, 2016) Some of

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the key benefits that define this can be development of best practices, leadership and team
development. This enables an organisation to meet the changing customer demands.
(Jalgat, 2016). BBCW created the climate for change.

BBCW ensured an understanding of the change process by all employees. This will improve
performance and change management can help an organisation identify challenges and
respond in an effective manner.

In respect to BBCW the most important first step that we can relate to the model is
increasing the urgency for change. World class development is identified for staff. The
workshops generated this urgency as a key first step .The scenario for change was created
for the change to occur. (Jalgat, 2016).

Employee Engagement

When referring to employee engagement there is a belief that an organisation needs to

understand what motivates, drives and inspires employees to want to work and create
discretionary effort. It can be impacted by many factors connected to the relationship
between employee and organisation, both rational and emotional. (Perrin’s Global
Workforce Study, 2003)

One of the most important factors of Employee Engagement is that it is a two way street.
It’s a positive relationship the employee has with the organisation where trust and
awareness of the business context inspires improved performance. It is imperative an
organisation develops and builds on this to ensure the reciprocal relationship (Robinson et
al, 2004)

While experiencing organisational change a variety of emotions both positive and negative
can wither contribute or impact employee engagement. Leaders need to be able to identify
emotive responses to change and the impact caused. Changes connected to transformation
make individuals extra sensitive during uncertain times. (Saunders and Thornhill, 2003 )

A limitation of Employee engagement could be related to follow through and measurement.

When survey results are tabulated they can be summed up which could indicate preference

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for a particular factor. The challenge facing leaders is the follow through post engagement
survey and the cadence of measuring employee engagement.

Managing the engagement of the workforce and promoting results of the engagement
surveys and benefits would be a key recommendation for BBCW. A key consideration would
be to continue to build and promote a strong culture where goals and values are aligned
across all regions and a measurement of success is put in place. (Markos and Sridevi,2010 )
Employees could strive and exert extra effort and time, and initiative to contribute to the
success of BBCW. (Baumruk and Gorman, 2006)

A focus from BBCW on talent management and retention of top talent would be another
strategy utilised within BBCW to promote employee engagement. High performing
organisation focus on engaging this cohort. Investment in training and external education
could be an attraction for top talent. This reduces the turnover and contributes to improved
and sustained business performance. (Watson Wyatt Worldwide, 2004)

A continued focus from BBCW on employee engagement can be closely linked to sustaining
competitive advantage and improving organisational performance.

5.0 CONCLUSION

Embedding policies around diversity and inclusion to expand the creativity and thought
process are critical for the leadership team at BBCW. Employees from diverse background
help and organisation perform financially better than the competition (Eswaran, 2019)
Similarity bias drives same thinking, diversity leads to better decision making and outcomes
for an organisation. Tim Davie could mentor women to develop the diversity talent pipeline.
He could work with HR to develop frameworks to ensure the talent pipeline is identified
through the hierarchy of the organisation .Developing talented female leaders and
managing diversity are key priorities for UK organisations. (Vinnicombe, Singh ,2003 ) .A
recent survey from the Chief Learning Organisation found 87.5% of senior male leaders
want to help women advance their careers but are unsure how to help .

A study from BCG in 2018 found that diverse management teams have 19% higher revenue
driven by innovation. (Forbes, 2018) This is particularly powerful for BBCW as it is very

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relevant in industries where innovation is key to growth. The leadership team will need to
exhibit high levels of EI to understand the challenges staff will be encountering during these
times. Women are positioned to relate with the ability to connect, engage and relate
emotionally in many positive ways. (Hess, 2020)

The challenges the COVID pandemic has created will convert initiatives into imperatives in
the digital space. Digitisation and the structure of the working environment changing in the
short to medium term will challenge any thinking on Leadership and Change Management
at BBCW. Measuring the cultural impact of changed working conditions and ensuring the
technology is fit for purpose will be a key driver of engagement.

Leading with ethics, trust and flexibility could become the key characteristics of a next
generation leader. Moving ahead will require a leader to have an ethical vision to take the
organisation forward step by step. (Thomas et al 2004)

Leaders need to act quickly to ensure employees feel protected, safe and provide a vision
for the future. While the pace of change is ever increasing, driving change during uncertain
times can also create opportunities.

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