This cluster describes the performance

outcomes, skills and knowledge required

to sustain and develop an environment in
which continuous improvement,
innovation and learning are promoted
and rewarded to determine strategic
change requirements and opportunities;
and to develop, implement and evaluate
change management strategies.

ASSESSMEN
T1
Change management

Pablo Andres Sandoval Saavedra

 Assessment 1 – Fast Track
Part A
1. Scenario Information Review

Fast Track Couriers Pty Ltd is a New South Wales based courier packages
business operating for last 15 years to medium to large enterprises. The
company has decided to increase its market share for Sydney operation by
7.5%. The increment in the share for Sydney market would ordinarily mean
that Fast Track achieve operational efficiency by cutting the lead time in
delivery and improving the distribution system.
2. Reporting Preparation

Based on the above background the Fast Track management decided to

hire a change management and implementation consultant. The consultant
will be tasked to prepare a report for approval of the process. And the
report will include analysis of organizational objectives, identification of
change requirements, link establishment with strategic plans, review of
current resources and policies, review of current performance against new
direction of strategic goals, external trends, major operational change
requirements, stakeholder consultation and finalization of plan.

3. Analysis of organisational objectives and identification of the

change requirements

The organizational change requirements should always be governed by the

business objectives. Without a properly defined objective none can validate
the change requirements. In case of Fast Track courier, below are the
analysis of organizational objectives and identified change requirements.
 A. Change requirements B. Linking organizational
identification strategic goals
-Increasing marketing share in Sydney
by 7.5% 1.To increase market share by
-Increasing efficiency 7.5%
-Reducing delivery lead time
-Conducting needs assessment for
distribution system improvement
2.To develop integrated
-Buying 8 new trucks
distribution system
-Incorporating PDA and GPS in all
trucks
-eliminating lifting injuries by making
the workplace safer and WHS
compliant
-Incorporating dialogs with trade union 3.To have cohesive workforce
-Introducing professional development
-Introducing facilitative workforce
management approach
 4. Current state of policies, practices and operations

According to the case literature the current state of policies, practices and
operations include:
Particular Status
Communication Head office employees use email and drivers get
monthly newsletters. Besides the organizational
policies and guidelines are documented. All trucks
have a documented policy book known as driver’s
manual. All office have a copy so that everyone can
have access to it.
Vehicle fleet All trucks have GPS and PDA for monitoring but it is
not performing at full scale. They are mostly used to
precisely locate the pickup and drop point for
deliveries. It is less used in monitoring task
completion and job progress monitoring.
Operational & To lift packages and cartons, the truck drivers needs
Technical help, this is why two truck drivers work at a time.
This is planned to get changed with automatic lifting
machine and relocating the expired drivers with new
trucks for the expansion plan.
Work Environment Current state of working environment is liked by both
the head office and drivers. However, the
management is keen in making the drivers role more
meaningful to the company by increasing their
involvement in other organizational matters. Head
office workers are cohesive while drivers are highly
resistant to change. Each truck has two drivers as a
team and the team performance is good.
 5. Performance against objectives

Organization performance has to be always in accordance with the

objectives otherwise attainment of the work goals become difficult and
challenging. The same can be said in another way that organizational goals
should be picked on the basis of organizational performance abilities.
Below reviews the Fast Track’s performance against objectives:

Objectives People Process Technology Structure

Increasing 1 General -Sales and -improved Existing
market Manager, 1 marketing, distribution structure
share by Office Team customer system
7.5% manager, 5 relationship -improved
Office team -Professional operational
members development efficiency
-Slacking
down the
delivery lead
time
Developing Office team -Elimination of - PDA and Structural
integrated members 5, lifting injuries, GPS change –
distribution Truck drivers - More - Automatic making
system 20 representative lifting spare
union and machines drivers work
elimination of for new
industrial trucks
relations
 problems
Having a GM, CFO, Facilitative -creating Existing
cohesive Accountant, workforce opportunities Structure
workforce Truck Drive, management, for learning
Office Team empowered and
Manager union, WHS development
and compliance -higher
Members and facilitative employee
professional engagement
development

6. External Trends

Upon reviewing the case literature, very little information on external trends
were found. Though external trends can impact a change management
project very deeply to result in attainment of unwanted goal. Therefore, it is
very important to account the external trend. In the case literature it was
said that Fast Track carried marketing research prior finalizing its change
project. So, below table lists external trends that are contextualized in the
case literature.

Identified Trends Impact of Trends on objectives

Growing market size Fast Track needs to continue increasing its
market operation to stay competitive,
otherwise growing market size will turn the
 company into small enterprise
Fast Track needs to cope with the changing
demand posed from market size expansion
by including new type of service offerings and
customization to remain competitive with its
distribution system
Responding to the trending opportunities will
result in more profitability and business
sustainability for Fast Track and employees
will stay more with the company
Intensive usage and adoption of technology in
the business is minimizing the costs of doing
and operating the business.
Intensifying usage of Higher dependence on advanced monitoring,
technology reporting and tracking technology will ensure
efficiency and optimum performance
It will help to improve workforce management
situation by making the environment cohesive

7. Major operational change requirements

Based on above discussion and analysis the Fast Track Courier will have
changes as per followings:

Reasons of Identified change requirements

change
Performance gap -optimizing the distribution system with increased
employee engagement, ensuring participation of
learning and development, purchasing new lifting
machine and new trucks
Business -potentials to exploit and secure market growth by
opportunities 7.5%
Threat -workplace injury related workplace healthy and
safety compliance implementation and maintaining
congenial workplace environment
Management -bring change to existing system to run more
decision profitably with efficient and effective technology
utilization and resources optimization

8. Identification of consultant for consultation

Given the issues few things are clear that Fast Track is having increasing
number of safety incidents, so the consultants list for consultation will
include a Workplace Health and Safety expert. The type of consultation will
be based on risk auditing and assessment. Secondly, the new growth
market will require intensifying marketing activities which will call for
marketing communication expert and the consultation can take the form of
comprehensive generation of marketing plan. Lastly, other noted areas in
the change requirement can be done internally with the help of all the
stakeholders like employees, suppliers, management and drivers. To
consult with them the model would be discussion, orientation and feedback
in regular meeting forms.
9. Consultation with the Change Management Specialist
Identified change requirements Specialist feedback
-optimizing the distribution system with Agreed
increased employee engagement, ensuring
participation of learning and development,
purchasing new lifting machine and new
trucks
-potentials to exploit and secure market Continue exploring more
growth by 7.5% markets and thickening
marketing penetration
-workplace injury related workplace healthy Agreed, provide personal
and safety compliance implementation and safety gear to drivers
maintaining congenial workplace
environment
-bring change to existing system to run more Agreed, hire expert
profitably with efficient and effective consultant in WHS and
technology utilization and resources marketing aspects
optimization

10. Change Management Review Plan with identified

stakeholders

Who? When? How?

Fast Track Throughout the project Discussion, email
Management correspondence,
meeting
Fast Track Employees Implementation phase Meeting, office order,
emails, discussion,
 orientation
WHS Consultant Prior and after Contract, based on
implementation deliverables
Marketing Consultant Prior and during Contract, based on
implementation deliverables

11. Change requirements prioritization

Identified change Priority Justification

requirements
-optimizing the distribution Third It will be achieved with time
system with increased employee
engagement, ensuring
participation of learning and
development, purchasing new
lifting machine and new trucks
-potentials to exploit and secure Second This will help the workers to
market growth by 7.5% see the clear goal to
 communicate at individual
levels.
-workplace injury related First Workers will see their
workplace healthy and safety benefits and will step in
compliance implementation and implementing the change
maintaining congenial workplace project
environment
-bring change to existing system Fourth Try to incorporate a
to run more profitably with continuous improvement
efficient and effective technology system
utilization and resources
optimization

12. Finalization

Based on the feedback from the specialist on prioritization of identified

change requirements and presented the justification, the change
management plan is now ready to share with others to start
implementation.
Part B
1. Key Processes and Systems in Supply Chain and Operational
levels

Supply Chain: The AC Gilbert did not use any market research study prior
finalizing or preparing their plan. The production ran based on assumption
and designing considerations. Even to that, the purchasing of the raw
materials and packaging were sourced without following any policy. On
supplying the goods to the stores, the company followed traditional
methods of raising orders from customers, arranging delivery and selling
those toys directly to retailers and users.
Operational System: Given the quality reputation of AC Gilbert products
prior to the takeover Gilbert Junior; the company called for change in all
parameters and aspects of the business without assessing its resources
allocation and measuring the achievability of business goals.

2. Product / Service Delivery

The company heavily changed its product service delivery model. Prior to
the takeover of Jack Wrather the brand utilized traditional means and
remained successful. However, when sixties specialized business product
service delivery models emerged and the business landscape for toy
industry was rapidly changing it adopted aggressive sales approach without
realigning its capabilities and reengineering its processes and systems.
The results were quick, increasing number of complains, quick fall of sales
revenue impacted the business.
 3. Key System and Processes Review Strategy

Upon reviewing the provided case literature, we find below details as

strategy for review considering continuous improvement through quality
management involving performance standardization and sustainability
practices:
Key Results Performance Service Level Key
Area Review Process Agreement Performance
Indicators
Production -utilizing -continual -number of
innovative sourcing of qualified vendor,
design and competitive vendor
production vendors for raw performance
process materials analysis
Marketing -conducting -defining proper -sales revenue,
market research market segment earnings before
for targeting tax, dealers
stocking rate
Management -utilization of -leading the -retention of
continuous team and highly qualified
information resources based manpower,
system at real on objective, establishment of
time empowering and greater business
developing skills presence

4. Evaluation of Review Strategy Effectiveness

Referred to the quality management and continuous improvement theory, a

business has to continue its activities for continuous improvement through
quality management approach, not only for production but also for workers
safety, will ultimately become sustainable. This is the key formula for
business sustainability because when a business tries to continually
improvise itself, it results in increasing customer satisfaction, retention of
higher number of customers and growth in sales and profit. The proposed
review strategy included three areas, production, marketing and
management. In production utilizing innovative design and production
processes a business can continually look for competitive vendors which in
turn can be measured with vendor auditing tools. This will work as a
sustainable sourcing state. Secondly, in marketing we found AC Gilbert to
continually ignore conducting market research. If it could conduct proper
market research, it could gather lots of information for easier and data
driven decision making. Thus, with those information analyses the business
could increase its marketing performance and reflect the same in sales
revenue, earning before tax and in profitability. Last of all, we find the AC
Gilbert management in awful state without utilizing continuous improvement
and enabling information access and investing in developing capacities of
the workforce. If the management could have wiped out all the distortions
the employees could have perform better.

5. Performance Variance

In production as key results area the quality of the products were bad, and
customers were complaining and returning the toys. The sales, based on
marketing performance results area, shifted significantly and the profit
policy was revised to slack down the margin. The supply chain for delivery
of products were also revised and different approaches were tried with time
without giving enough efforts in mapping the market. The business growth
missed to be objective oriented because profit is not always the concern
but profitable sustainability which AC Gilbert lacked at all levels. We saw
the company to quickly hire lots of employees to boost sales and when the
expenses rose up, it abandoned resources. Overall there was a complete
lacking planned management. The management was not sure what to do,
when to do, how to do, where to do and who will do the business.

6. Trends Analysis

Given the information and data provided in the case literature, we can see
AC Gilbert to completely failed to assess the market trends. The toy market
while was growing rapidly, for AC Gilbert the market share was reducing at
alarming rate. New companies with newer diversified and target oriented
product line started to do better and quickly built market reputation. While
AC Gilbert with its half a century reputation badly performed to capitalize on
the reputation. In terms of processes, systems and policies adoption, AC
Gilbert remained shifting from one end to another without demonstrating
business depth and stability. It was panicked. The company made a daring
move with its profit when business was doing worst, it modified its profit
orientation, leaving all the scopes closed. The sales fall due to lacking
salespersons performance, absence of good distribution system and more
importantly, failure to attract new customers. The company was completely
unable to adapt to the change. The customer service standards also fall.
The innovation in production and in business processes and in marketing
communication was never tried. Employees got demoralized and their
performance also fall, and they were handshake off the company. There
was no prospect for the employees. The production and manufacturing
system remained age old without being reengineered.
If the company could carry out market research, it could know the trend in
toy demands and based on that information, it could identify key
characteristics and services model that are attracting the customers. It
spent heavily into advertisement, but it did little to sustain the demand
created from the advertisement. If it could streamline the production, using
innovating, distribution and new sales technique and market exploration,
the people would have remained motivated and it could get positive results
from the market.

7. Specialist Consultation

If AC Gilbert could manage somehow to continue its operations until today,

then the possible specialist advice would be to:
 Engineer: Reengineer the production processes and manufacturing
systems.
 Manufacturing staffs: To meet production target with the highest
quality consistency.
 Sales Personnel: To continue selling the products, exploring new
markets, new product lines and carrying market research.
 Human Resources Personnel: To create facilitative, congenial and
the best working atmosphere and conditions.
 Marketing Consultant: To continually provide guidance on marketing
matters and oversee the same with objectivity.
 Advertising Experts: To continue establishing the brand through
creative communication content.
 Designers: To assess the demand driven designing trend and
designing innovating products that create lust in market.
 IT Consultants: To create information system for real time data
analysis and faster decision making.