Strategic Change

Management

Faisal Mohamed
 Assignment front sheet
Qualification Unit number and title

Pearson BTEC Level 7 Diploma in Strategic

Unit 3: Strategic Change Management
Management and Leadership (QCF)

Student name Assessor name

Faisal Mohammed Abu Tahir

Date issued Completion date Submitted on

Assignment title Strategic Change Management

Evidence
In this assessment you will have the opportunity to Task (Page no)
LO AC
Learning Outcome present evidence that shows you are able to: no.

Understand the
background to Discuss models of strategic change 1
organisational 1.1
strategic change

1 Evaluate the relevance of models of strategic change to

1
1.2 organisations in the current economy

Assess the value of using strategic intervention

1
1.3 techniques in organisations

Understand issues 2
relating to strategic
change in an Examine the need for strategic change in an
2 2.1
organisation organisation

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 Assess the factors that are driving the need for
2.2 2
strategic change in an organisation

Assess the resource implications of the organisation

2
2.3 not responding to strategic change

Be able to lead
stakeholders in 3.1 Develop systems to involve stakeholders in the
3
developing a planning of change
strategy for change

Develop a change management strategy with

3.2 3
stakeholders

3.3 Evaluate the systems used to involve stakeholders in

3
the planning of change

3.4 Create a strategy for managing resistance to change 3

Be able to plan to
implement models for
Develop appropriate models for change 4
ensuring ongoing
change 4.1

4
Plan to implement a model for change 4
4.2

Develop appropriate measures to monitor progress 4

4.3

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Student signature: Date:

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Assignment brief

Unit number and title Unit 3: Strategic Change Management

Qualification Level 7
Start date
Deadline/hand-in
Assessor Abu Tahir

Assignment title Strategic Change Management

Purpose of this assignment

This assignment provides the learner with the understanding and skills to support active engagement in the process of
strategic change management.

Scenario

Achievement Summary

Pearson BTEC Level 7

Diploma in Strategic
Qualification Management and Leadership Assessor Abu Tahir
(QCF) name

UNIT 3: STRATEGIC
Unit Number and title Student
CHANGE MANAGEMENT
name
Faisal Mohammed

3|Page Strategic Change Management

 Criteria Reference Achieved? Comments

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 construction shall be improved)

1.2  Learning outcome has been achieved successfully

1.3  Learning outcome has been achieved successfully

2.1  Learning outcome has been achieved successfully

2.2  Learning outcome has been achieved successfully

2.3  Learning outcome has been achieved successfully

3.1  Learning outcome has been achieved successfully

3.2  Learning outcome has been achieved successfully

3.3  Learning outcome has been achieved successfully

3.4 

4.1  Learning outcome has been achieved successfully

4.2  Learning outcome has been achieved successfully

4.3  Learning outcome has been achieved successfully

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Action Plan

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CONTENTS

Executive Summary ................................................................................................................................ 7

Introduction ............................................................................................................................................. 8
Methodology ........................................................................................................................................... 9
Finding and Analysis ............................................................................................................................ 10
The identification of the need for change ......................................................................................... 10
Need for the Strategic Change .............................................................................................................. 12
Factors driving the need for Strategic Change .................................................................................. 12
Resource Implications of not responding to the change ................................................................... 13
Develop appropriate models of change and plan to implement a model for change ............................ 15
Models of Change ............................................................................................................................. 15
Individual Change – Kolb’s Model ............................................................................................... 15
Team Change – Tuckman’s Model ............................................................................................... 16
Organisational Change Model – Kotter’s 8 Step .......................................................................... 17
Evaluation of Change management models in the current economic scenario ................................. 19
Implementation Plan ............................................................................................................................. 23
Assess the Value of Using Strategic Intervention Techniques in Organization ............................... 24
Strategy to involve Stakeholders in planning the change ................................................................. 25
Developing a change management strategy with the Stakeholders .................................................. 26
Evaluation of the systems used to involve the stakeholders in the Planning of change.................... 27
Strategy for managing resistance to change ...................................................................................... 28
Measures to Monitor Progress .............................................................................................................. 29
Conclusion ............................................................................................................................................ 30
References ............................................................................................................................................. 31
Appendix ............................................................................................................................................... 33
External environment ........................................................................................................................ 33
Swot Analysis ................................................................................................................................... 35
Growth Option .................................................................................................................................. 36

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EXECUTIVE SUMMARY

“Strategic change is the process of managing change within an organization in order to

achieve clearly defined strategic objectives or allow the company to experiment in areas where
it is not possible to define strategic objectives precisely” (Richard Lynch).

Even though organizations in current economy run operations with current strategies, much
will change for future benefit and success. Any change brings doubt and some arrangements
and individuals are better capable to cope with this than others.

This report analyses the internal and external factors that could potentially drive the need for
change. This is undertaken in the frame of a SWOT, PESTLE, and Competitor Analysis.

While analyzing the Ansoff matrix to know the growth option, the need for change was found.

I have chosen an organization, Cybrosys techno solutions private limited which is unstable
in the current market and they need to expand their operations (develop, market) into foreign
countries like Australia, Europe (apart from the UK where they presence) because of high
competition. Their rivals are expanding their market and due to that they have been driven to
extend their market place in order to be a successful company.

This report contains the information about stakeholder management which will provide
details on the stakeholders who are affected by the change and also provide a useful framework
to deal with all types of stakeholders appropriately.

This report also addresses the key strategic change (i.e. market development) that will affect
within Cybrosys due to the shift in the corporate policies, target market, mission, and how
Cybrosys can overcome this strategic marketing problem within the organization and how
they can involve their stakeholders in this change. For that I have used various models of
change and provided the relevance of using that model within Cybrosys.

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INTRODUCTION

Cybrosys Techno Solutions Pvt. Ltd is a technology and software enabled business situated in
the Kinfra Techno Park, Kakkanncherry in Malappuram district, Kerala. They also have
Strategic Business Unit in InfoPark, Kakkanad which is in Ernakulum district. Cybrosys started
its operations in the year 2007, which was founded by Mr. Sainul Abideen, who was very
passionate in information technology field in his college days. Cybrosys current employees
around 50 to 99 employees, who is well determined and committed towards the organization
and to their assigned tasks as well, Cybrosys have several departments in their organization
like; human resource management, finance department, media relation, facility
management, customer service, marketing and security. Each department is carried out by
department assistants and Mr. Sainul Abideen acts as a central head of whole departments. The
strategies involved in the functioning of business are planned by the Mr. Sainul Abideen
(Cybrosys, 2014).

Cybrosys have strategic alliance with IBM, Intel, HP and other global and local
giants which enabled them to gain global presence within a little period of time, in fact,
their products and services are applied with clients across India, USA, UK, Middle East
and Maldives (Cybrosys, 2014).

Cybrosys provides complete product life cycle services, ranging from new product
development and product advancement to product migration, re-engineering and
support, by leveraging their experience working on over several product releases over the last
three years, they bring products to the market faster, with better quality and reduced product
costs (Cybrosys, 2014).

Their focus is about web technologies and windows application as they are being adapted
using leading technologies in the market. Cybrosys specializes in the development of high
end client-server application and robust enterprise applications. Cybrosys have six
patents which are expected to make revolutions in technology and their vision is to achieve a
patent a month (Cybrosys, 2014).

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METHODOLOGY

In order to bring together this report, I had to do various research. This consisted of a number
of primary and secondary techniques.

Firstly, I interviewed Mr. Sainul Abideen who is the current CEO of Cybrosys. He
provided a large amount of first-hand information and was priceless. He was also able to
provide me with a large amount of information about the current organization’s structure and
culture.

Mr. Sainul Abideen is also acting as an advisor for Cybrosys Pvt. Ltd through certain aspects
of the change. I also managed to speak with the head of the marketing team. Mr. Ranjith
Kanakkath is marketing team’s primary contact within Cybrosys and is the marketing manager
too.

I also used a number of textbooks, listed in the Reference, written by respected authors on
Change, Leadership and Management. This is secondary research, but of good superiority.

Finally, I used a number of web resources as another form of secondary research

to back up and strengthen ideas, theories and models. Where possible I have cross
referenced information to ensure data accuracy before including it in this report.

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FINDING AND ANALYS IS

THE IDENTIFICATION OF THE NEED FOR CHANGE

Change is the only thing which is constant (Toffler). Change is happening all around,
individually and organizationally, all the time. Due to globalization organizations are forced to
change if they like it or not and be reactive and proactive towards the change.

It is possible to plan and identify the need for change in advance, which is obviously a much
more favorable approach. Being able to identify the drivers for change are essential in order
for the organization to spot the necessity for making change happen, and also to determine
exactly how you will combat these drivers and produce an effective change plan.

A SWOT analysis is a simple tool which allows an organization to list the Strengths,
Weaknesses, Opportunities and Threats within them in the current climate. These brief
statements put on paper help to identify where the company can improve. The ultimate aim of
an organization would be to reduce its weaknesses and increase its strengths and also avoid
any threats that may occur and explore the opportunities that are available in the market.
These observations organically show both why an organization needs to change and allow an
organization to discuss how they would convert them. These would form the basis of the
organization’s change objectives.

Another tool which can be used to identify drivers for change could be a PESTLE Analysis.
This allows the organization to look at Political, Environmental, Social, Technological,
Legal and Economic factors which could impact the organization, or the environment it
operates in. This type of analysis generally applies to the external environment which the
organization operates in. These observations can structure an organization’s SWOT analysis
(the opportunities and threats, which are generally specific to the external environment) and
allow the organization to group the factors in their SWOT in order to more clearly define these
change drivers.

With both of these analyses, it can be useful to rank the factors in the list of importance. This
could range from financial risk, opportunity for big sales, likelihood, and level of impact
and so on. This had been partially done in my pestle analysis; however, another method could
be used to rank these factors driving change.

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Ansoff matrix gives an organization different method to grow their business. The strategic
options are ‘market penetration’ where they can penetrate the market with existing
products/services, ‘market development’ is developing the market space with the current
products/services, ‘product development’ is developing new products/services in existing
markets and ‘diversification’ are an option where the company can entry a new market and
new products.

Analyzing a mix of all these factors allows the organization to relatively easily identify the
need for change and the organization can then start thinking about how they can bridge the gap
between where they are now and where they want to be, which is the whole point of an
organization’s strategy, and the plan for change.

After obtaining these factors within and outside of Cybrosys and analyzing them.
I have to say that, these are by no means full analysis. Normally these would have been
performed by a team of people over a series of days or weeks and can go into really fine detail.
As I am not part of Cybrosys I do not have enough first-hand knowledge to fully complete
these tools. The important thing to remember is that these tools should not be considered as
static and it would be good practice to review these regularly, perhaps every 6 months. Only
through a regular review you can prevent these issues before they actually exist, or Cybrosys
could further enhance the branding, revenues or cut costs of the company.

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NEED FOR THE STRATEG IC CHANGE

After analyzing the SWOT, PESTLE Analyses and Ansoff matrix of Cybrosys, I have
identified a significant change which is required in the immediate future, let me explain.

In a progressively globalized world, significant complexity and uncertainty is getting attached

to the unprecedented economic crisis. Information technology is what constitutes the most chief
sector in the present day trend of carrying out business. It is because you as an organization
cannot be present all over the place to keep an eye on the work, but with networking and
communications, you can always stay in contact with the other business sites of yours.

After analyzing the Ansoff matrix, I have found that Cybrosys have huge
opportunities to expand their market to countries like Australia and Europe.

Cybrosys currently require to expand their market to these countries, because of high
demand and huge competition from the local and global IT companies and due to that Cybrosys
will have to go through various changes within the organization and this report documents and
addressed the change process involved in Cybrosys and how can manage change effective and
efficiently.

FACTORS DRIVING THE NEED FOR STRATEGIC CHANGE

In the current business environment there is a huge competition from the local as well as foreign
players. The competitors of Cybrosys are expanding their market space and in order to be a
market leader Cybrosys will also have to expand their market. The IT companies are offering
wide range of services to foreign clients along with their IT product, which can be an added
advantage for the company.

Cybrosys is a private limited company with huge potential and they have some issues in the
market in which they operate too, so the company needs to phase out its current market. The
products and services offered by Cybrosys are provided by various competitors and due that
there is huge competition in the current market.

The imbalance in the economy in which Cybrosys operates is also another factor. Cybrosys
performs its operation in India and provide services to other countries. Cybrosys will have to
review their existing mission, vision and strategy and they have asked their strategic team,

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whether their current strategy is effective, whether the existing vision, mission statement is
effective enough to need the demands in the market and by reviewing these factors.

The structure of the Cybrosys is very rigid for their existence and the future growth. There is a
communication barrier between the different levels within Cybrosys. Of all the things Cybrosys
can change, this is by far the most difficult to undertake. The needs and wants of the clients
are different and are changing rapidly. Some of them will require more technically advanced
products/services; someone else will prefer something different.

Cybrosys can’t compete with their existing product in the existing market, so this makes
an urgency to make an overall change in the Cybrosys. As of now, since Cybrosys is operating
in four different countries, in order to survive in the IT industry, it is important for them to
develop a new market either with existing products/services or with new and diversified
products/services (Cybrosys, 2014).

The reasons pointed out above are the foremost reasons, which has prompted the higher
management of the company to look and decide for marketing strategy, which cater the current
and future need of the business.

RESOURCE IMPLICATIONS OF NOT RESPONDING TO THE CHANGE

There will be high implication on the Cybrosys’s business and operations; if the resources of
Cybrosys do not respond to the marketing strategy. The resources involved in this strategic
change are the workforce, the IT infrastructure, and the department heads of marketing. The
implications of not responding to the change will be as follows:

Lack of marketing strategy will cause difficulty in completing the implementation of

expanding the market ahead and may ultimately lead to failure of the whole marketing plan, if
not dealt with them. If the marketing department head is not giving full cooperation and
participation, then the time to develop the marketplace will increase, so the strategic
marketing team will not be able to meet its time deadline and which in turn will not only impact
the marketing strategy but will exceed the estimated cost of the whole plan.

If the marketing team is not well motivated and passionate of the plan, then there will be a lack
of enthusiasm, and this will have an impact on the quality and the planning of the market
development. If market development is not implemented properly, then it will not serve the
whole purpose of the plan and this may cause the scrap of whole plan. If the workforce is not

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given proper training and motivation about the new marketing plan, then the workforce will
not be able to fully utilize the benefit of the foreign market because of lack of knowledge about
the market and it may even make the work more complicated for them and can also cause
various errors in the marketing plan as they will not be educated enough to work properly in
foreign conditions.

Cybrosys as a whole will have to bear serious issues and consequences, if the
marketing plan does not go well, as it will not only be a monetary loss to Cybrosys, but
will impact the future growth process and the morale of whole organizations. It will
also impact the business operations of Cybrosys, as the morale and motivation of the
workforce will be impacted a great deal.

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DEVELOP APPROPRIATE MODELS OF CHANGE AND PLAN TO
IMPLEMENT A MODEL FOR CHANGE

MODELS OF CHANGE

The three standard models of Individual, Team and Organisational strategic change has
been discussed below.

INDIVIDUAL CHANGE – KOLB’S MODEL

In 1984 Kolb published his learning styles model. Kolb’s model of learning styles has four
distinct learning styles (Diverging, Assimilating, Converging and Accommodating) which
are further based on four stage learning cycles also known as learning cycles.

Knowing a person's learning style allows learning to be orientated according to one’s

preferred method. The brief description of Kolb’s model is as follows:

http://www.talentsprint.com/insights/experiential-learning-1

 Diverging (Feeling and watching): Cybrosys will have dealt with people with
diverging styles who are sensitive and they prefer to watch rather than to do. They
have broad cultural interests and tend to work in groups, to listen with an open mind
and are usually imaginative and emotional.

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  Assimilating (watching and thinking): They are the people with logical approach
and concise and give more importance to ideas and concept than people. They are
the one who excels at understanding wide-ranging information and organizing it a clear
logical format.
 Converging (doing and thinking): These kinds of people are interested in technical
tasks than in people and interpersonal aspects. They tend to solve issues based on their
past experience and learning. People with a Converging style like to experiment with
new ideas, to simulate, and to work with practical applications.
 Accommodating (doing and feeling): These people don’t work on logical analysis,
but believe on their intuitions, they tend to rely on others information and then carry
out their own analysis. They work in teams and actively try out new ways to achieve
the objective.

TEAM CHANGE – TUCKMAN’S MODEL

Dr. Bruce Tuckman published his four stage model of team change in 1965. It consists of:

Source: http://www.the-happy-manager.com/articles/teamwork-theory/

 Forming: This is a stage where the whole responsibility of change is on the leader, as
individual roles and responsibilities are unclear and team members are highly
dependent on leader for guidance and direction.
 Storming: This is a description of the dynamic that occurs when a team of individuals
come together to work on a common task, and have passed through the phase of being

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 nice to one another and not voicing their individual concerns. This dynamic occurs as
the team strives or struggles to answer fully the questions postulated in the forming
stage. To a team decision does not come easily in the start. Every member seeks a
position in team with respect to other members and leader in order to avoid challenges
later. This is very important part of the process as this defines and enables a common
understanding of purpose and roles to be achieved.
 Norming: During this phase agreement and consensus is largely formed among the
team. Roles and responsibilities are clear and accepted. The major decisions are taken
by team discussions and agreement.
 Performing: This is the final stage of team development. The roles are clear now and
the team knows clearly about the vision and the goal they are working upon. The team
works in a collective and mature manner to achieve the goal.
 Adjourning: A fifth stage was later added which acknowledged that teams do not last
forever. This stage represents the period when the team’s task has been completed and
team members disperse. Some practitioners call this stage mourning, highlighting the
emotional component. Others call it transforming as team members develop other ways
of working

(Source: Infed – 2011, mind tools)

ORGANISATIONAL CHANGE MODEL – KOTTER’S 8 STEP

Kotter’s (1995) eight steps to transforming Cybrosys go a little further than the basic machine
metaphor. Kotter’s eight-step model derives from analysis of his consulting practice with 100
different organizations going through change. The model addresses some of the power issues
around making change happen, highlights the importance of a ‘felt need’ for change which
Cybrosys may have, and emphasizes the need to communicate the vision and keep
communication levels extremely high throughout the process (Mike Green). They are as
follows:

 Create urgency: To spark the initial motivation to get the change moving, managers
will have to create a sense of urgency within Cybrosys. This happens by identifying the
potential threats and developing a future scenario.
 Form a powerful coalition: To lead a change, all the influential people, the team and
the management within Cybrosys need to be convinced and a coalition is to be formed.

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  Create a vision for change: Defining a clear vision helps people to understand the
objective of the change and it gives them motivation as they know what they are trying
to achieve.
 Communicate the vision: By communicating with the key person and every
stakeholder of Cybrosys honestly about the vision to expand the market, a momentum
is being created to achieve that Change.
 Remove obstacles: If any structure or processes are becoming problematic for the
change, then define a strategy to remove those barriers. Clearing obstacles can empower
the people who are required to execute the vision of change for Cybrosys.
 Create short term wins: Cybrosys will have to create a short term target, as success
of achieving these short targets will keep the team and people motivated to keep the
momentum for the required change.
 Build on the change: Kotter argued that most of the change fails as success is declared
too early. With every success a new plan and strategy to be formulated to continue that
success and the area of improvements.
 Anchor the changes in corporate culture: Continuous effort need to be ensured to
keep the change in every aspect of Cybrosys. The change should be brought into the
corporate culture and should often be discussed and talked about by the leaders in the
organization.

Source: http://holistika7.com/member/kotters-8-phases-change/

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EVALUATION OF CHANGE MANAGEMENT MODELS IN THE CURRENT
ECONOMIC SCENARIO

Kotter’s model of change suggests that change is a slow but sure process and it should be dealt
likewise. The change itself starts when urgency in Cybrosys is created either to accomplish the
new requirement or need to resolve current issues. This leads to formation of vision and clear
objectives which defines the change to be taken forward.

In the current economic scenario, where the IT industry is in very competitive in nature and
the economic downturn has further tightened its position, it becomes necessary for Cybrosys
to win the confidence of the workforce and keep them involved and engaged with the proposed
marketing strategy. Any failure in the marketing plan will further dry out the overall business
growth of Cybrosys and this could occur if Cybrosys does not consider taking the change
seriously and following a standard approach of handling change at an organizational level. To
resolve this scenario, Kotter’s 8 step change model has a great relevance to it. There should be
a proper communication between the key stakeholders of Cybrosys on the need of taking
change. When change occurs at an organizational level, then every member of Cybrosys
directly or indirectly gets affected and henceforth to avoid any sort of hurdle a change model
should be used at the organizational level, to prepare and plan to resolve the unwarranted
situation.

Similarly, the change model of team has its relevance because, the change in Cybrosys is
initiated by a team and it’s the responsibility of the team to take the change forward and bring
it to an organizational level. Keeping this in view, the Tuckman’s model of learning styles
becomes important as it discusses the stages of team development and henceforth, by focusing
on these stages, it becomes easier to prepare for the change. The stages of Forming, Norming,
Storming, Performing, adjourning defines the five stages and this in turn helps to identify
where and at which stage what policy and strategy to be considered. The team consists of
individuals and every team member is an individual first and then a part of the team and
therefore, it becomes important to consider how to involve individuals first in the change. Of
individuals are not ready for the change, then a strong team can never be formed and if the
team fails, then the change at organizational level can never be successful. And this gives high
importance to consider the individual change model. By evaluating and studying the current
economic scenario, it becomes necessary for every organization to consider the change models

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of organization, team and individual and then to form a marketing strategy. No change can
become successful if these approaches to managing change at various levels are not considered.

John Kotter’s 8 step change process can be used to explain the proposed change process.

Source: http://driverlayer.com/img/kotter%20s%208%20steps/146/image
1. Create a Sense of Urgency – At this level in first a conversation needs to be built up as
the reason for a change. Accordingly, the board members of the ‘Cybrosys’ needs to be
aware as to what are the changes that are taking place in the market and what are the plans
of the competitors. By doing so it enables to motivate the top management and other
stakeholders of Cybrosys to accept that a change is needed in order to survive in the market.
It is said that in order to change to be taken place at least 75% of the management needs to
be believed that a change is goods and is needed for survive.

Accordingly a conversation needs to start as to why it is necessary to start a web based news
site to survive in the market and to reduce operational cost.

2. Creating/forming a good coalition – In this step a good coalition needs to be built up from
leaders within Cybrosys who have respect and good recommendations. By doing so,
Cybrosys can maintain and develop the conversation about the change and obtain the input
of those leaders to the change process.

After forming a good committee the change process can be implemented effectively. In order
to form a good coalition following activity can be used,

 Search for leaders within the organization who are respected by the employees

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  Ask for faith and good dedication
 Work as a team to plan the change
 Identify strengths, Weaknesses, and opportunities

Once the team is building up it should make sure that the team as a whole use one change
models to plan the change and team members needs to have sound knowledge on the model
apply for the change.

3. Develop/ Crate a change vision – In this step Cybrosys needs to develop a vision change.
Vision provides three valuable purposes,
 It summarizes and simplifies many decisions
 It provides motivation to people to execute actions.
 It helps to coordinate activities of many persons in an efficient manner.

In order to expand the market Cybrosys needs to create a vision that has the following
characteristics,

 Imaginable
 Desirable
 Feasible
 Focused
 Flexible
 Communicable

Vision: “To be the creative brains behind every innovation”.

4. Communicate the vision – The created vision in the previous step needs to be
communicated throughout “Cybrosys” from board of directors to lower level employees.
By communicating the vision to the employees it is very helpful to perform the change
activities effectively. Cybrosys may use any type of communication method that is used for
internal communications. Methods such as emails, newsletters, and meetings can be used
to communicate the vision of the change.

The vision such communicated needs to have the following characteristics,

 Simple – It should be simple without any technical jargons.

 Vivid – The expression should be done in a way that memorize to the audience.
 Repeatable – The vision should be able to spread from one person to another.

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5. Empower people to act on the vision and remove barriers- At this stage, Cybrosys need
to empower the individual to act in order to achieve its vision. Further at this stage Cybrosys
needs to take steps to remove barriers that act against to change activities these may be
individuals or processes of Cybrosys.

6. Create short term wins – In the long process of change it is essential to incorporate some
short term achievements to motivate the people involved in the change process. Further by
incorporating short term achievements the Cybrosys can ensure that the change process is
taking place effectively, for example company can incorporate following short term
achievements.
 Plan out the format and layout of the new web site
 Procure the latest technology and proper people

7. Build on the change/don’t let up - It is said that before completing the job declaring the
victory is too risky. Thus the work needs to be completed before the success is declared.
For a success is sustainable the organization needs to build upon changes continuously.

8. Institutionalize the change - In this last step Cybrosys needs to ensure that the change is
evident through every aspect of Cybrosys. This will helps to maintain the change activities
continuously all parts of the Cybrosys.

By following above mentioned eight steps Cybrosys will be able to implement the change
process effectively and efficiently.

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IMPLEMENTATION PLAN

The implementation plan becomes the stepping stone for any plan and it determines the success
and failure of the marketing plan. Therefore, implementation plan achieves high importance
and should be planned and decided by considering all the business factors which includes
internal and external and all the stakeholders should be taken in confidence. The widely
accepted implementation plan for strategic change being suggested by Johnson, Scholes and
Whittington has been considered. The steps are given below:

 Gaining support of the key stakeholders of Cybrosys, who include key decision
makers and the facilitators. They should be provided with enough relevant information
on the needs and benefits of adopting the planned change.
 A full detailed plan should be prepared by Cybrosys with proper start and end date
and should include and define the various stages of the change process with the time
frame. This detailed implementation plan should be agreed by all the department heads
and the decision makers.
 A strategy should be planned by Cybrosys to obtain the commitment of the staff to
make this strategic change feasible and achievable.
 The ground level workforce and strategic plan should be brought in, in the market
development plan and should be asked for their feedback and reviews.
 The workforce should be given proper recognition and reward on the success
of developing the market.
 The workforce should be given development and training programs with the new skills
required, which will help in making the implementation plan successful.
 The changes happening at various stages should be analyzed and evaluated as well.
 The areas which are causing problems and are creating hurdles in the plan should be
studied and be removed.
 The whole implementation plan should be monitored and reviewed and governance
model need to be defined to handle the escalation and the key decision processes.

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Assess the Value of Using Strategic Intervention Techniques in Organization

Strategic interventions contribute to align Cybrosys with its environment. Cummings and
Worley (2001) state, “link the internal functioning of the organization to the larger
environment; transforming the organization to keep pace with changing conditions”.

Strategic intervention help organizations to gain a better understanding of their current state,
and their environment, that allow them to better target strategies for competing or collaborating
with other organizations.

Kormanik (2005) is included under the umbrella of strategic interventions, the following:

 Mission/Vision/Purpose.
 Strategic planning and goal setting.
 Visioning/scenario planning.
 Benchmarking.
 SWOT.
 Communication audit/strategy.

Cybrosys is a company who has a presence in more than four countries and working on more
than 1000 projects in a year. Strategic intervention techniques will help Cybrosys to find their
own core of strengths and is helpful doing the process of change. Strategic intervention
techniques will help Cybrosys to involve every stakeholder and prepare them for the planned
change i.e. Market development. By adopting these techniques, Cybrosys would be able to
achieve successful change process.

The strategic intervention plays a vital role in the enactment of the company.

Cybrosys uses several interventions to gain many advantages. Following is a brief

summary how strategic interventions are valuable for Cybrosys, (Oxford Journals, 2011):

 Team Development: Team development and group process interventions aim at

improving different aspects of a group performance, such as goal setting, development
of interpersonal relations among team members, role clarification and analysis, decision
making, problem solving, and communities of practice, among other. According to
Robbins (1994), Team building is applicable where group activities are interdependent.
By designing team development programmers, Cybrosys is able to help the team to

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 develop the maturity and effectiveness of the marketing plan. The objectives of team
developments are setting goals, prioritizing and examining the relationship among the
people doing the work.
 Survey Feedback: Feedbacks helps Cybrosys to analyze the current situation of the
change process and Cybrosys can are gathered information using personal interviews
or survey questionnaires.
 Inter-Group Problem solving: To avoid conflicts among the groups, Cybrosys can
conduct regular meetings and discussions on what should be happening between the
groups, so that problems should be resolved and the members are able to work
collectively in achieving the set objectives of the change.
 Role Playing: It is one of the best contingency plans which Cybrosys can adopt, where
the group is prepared to work even in the absence of the key stakeholders. It is widely
defined as a way of behaving.

STRATEGY TO INVOLVE STAKEHOLDERS IN PLANNING THE CHANGE

Stakeholders should be taken in self-assurance and should be convinced properly to make the
change successful at the organizational level. The Stakeholders of the planned marketing
strategic change in Cybrosys are:

 Managing Director
 Finance head and team
 IT Director and team
 Marketing Head and team
 Sales Head and team
 Supply chain and logistics head and team
 Human resource director and team
 Admin head and team

The activities which are planned needs to be undertaken to convince and involve the above
stakeholders in planning the change are, (Knowhow Non Profit, 2011):

 Communication Strategy: By forming an effective communication strategy to involve

and educate the stakeholders for the need for strategic marketing, half the job of
completed. Some of the best methods adopted in the communication strategy include:

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 Meetings, Discussions, E-Mails, and Face to Face interaction, Presentations,
Interview, Voting and Questionnaire. By following these activities, the stakeholders
will feel more engaged and attached to the change process and they will give their inputs
and show motivation and enthusiasm in taking part in the change.
 Sending formal invitation to the key stakeholders of Cybrosys, regarding the meeting
and presentation on the need for bringing the strategic marketing change in Cybrosys.
 Doing a formal presentation to the key stakeholders, explain them the needs and
benefits of developing the market to foreign market.
 Minutes of the meeting should be prepared and mailed to the key stakeholders so that
feedbacks could be asked of them on the same.
 After receiving the feedbacks, a strategy should be planned to resolve the key issues
raised by the stakeholder and then they need to be educated and convinced of the need
for change.
 A change team should be selected involving representatives from different departments
and they should have key influence. This team would be responsible for initiating the
change.

DEVELOPING A CHANGE MANAGEMENT STRATEGY WITH THE

STAKEHOLDERS

To any strategic decision, there will always be some who will be enthusiastic about the change
and will be ready to adopt, while there will be some who will be reluctant at the first moment
and then there will be people who will be putting resistance to the change and it could because
of individual behavior and emotional responses or could be another factor due to which they
will be resistant to change.

Source: Entrepreneurs Friend, 2011

Considering the above defined model on the behavior of the stakeholders and people on the
response of the change, a planned strategy need to be discussed and decided upon. A well
common standard theory of management used widely in the business industry has been used to
involve the stakeholders in the change. It is as follows, (Knowhow Nonprofit, 2011):

 Leverage Strategies: This strategy is basically defined and planned by Cybrosys for
those who are among the early adopters and are ready to embrace the change which

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 Cybrosys undertake. Their support and influence has a significant value for Cybrosys,
as they develop their cooperation and support to influence the mindset of the reluctance
on adopting the change.
 Engagement Strategies: This strategy suggests to focus and concentrate on those key
stakeholders of Cybrosys like shareholders and people who have significant influence
and are part of reluctant majority. The strategy should be adopted to convert those
influences into adopters and then to utilize and leverage their influence on those who
are with less commitment interest and commitments.
 Containment Strategies: Cybrosys will have to apply this strategy basically on those
people who are resistant laggard and are not ready to adapt the change brought by
Cybrosys but since they are the one who has high experience, skills and competence,
so they are the one who still contribute to the change process of Cybrosys.
 Outplacement Strategies: For this strategy, the most virulent and the high influential
resistant laggards are the one who are focused. These people are provided with an
opportunity to accept and show their commitment to the change process undertaken by
Cybrosys, however, if they still don’t agree to adopt the change brought by Cybrosys
and are reluctant to accept then they are dealt with unambiguous consequences.

EVALUATION OF THE SYSTEMS USED TO INVOLVE THE STAKEHOLDERS

IN THE PLANNING OF CHANGE

Development of the market will be a marketing strategy decision involving change process at
the organizational level. It will change the overall of work process and operations of Cybrosys.
Each and every stakeholder of Cybrosys will be directly or indirectly related and impacted with
this change. Henceforth, it becomes important for Cybrosys to plan out a marketing strategy
which involves the stakeholders (like employees and shareholders) in the planning of the
change. The change process itself can initiate only with the help of the shareholders and the
loyal employees of Cybrosys. If they, the stakeholders (employees/shareholders) are against
the change, then no change process can become successful. As discussed above, the
shareholders and employees of Cybrosys should be taken into confidence, by keeping them
well informed and educated about the requirement of bringing the marketing change. They
should be involved in all the major decision making process. The feedbacks and the reviews
given by the stakeholders should be considered and this all can be achieved by a proper
communication strategy. The stakeholders involved should be well informed about the various

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stages of the change process and the progress being made. They should always be involved and
their feedbacks should be taken in every major decision involving the change. The employees
and shareholders will feel more confident, engaged and motivated when they are being heard
and are given importance and this in turn will make the change process smoother. The
stakeholders should always be provided with accurate information on the impact and effects of
the change. They should never be dealt in a manner where they feel neglected.

STRATEGY FOR MANAGING RESISTANCE TO CHANGE

Resistance to change is part of the change process. It is something which can have both positive
as well negative impacts on Cybrosys. Kotter & Schlesinger (1979) explained the importance
of strategy to handle the resistance in Cybrosys. As per their theory, the principles are:

 Education and Communication: By properly educating and communicating with the

concerned employees and shareholders about the change, their misconceptions and
confusions can be sorted out without which they are full of questions and worries.
People tend to accept the change once they become aware of the change.
 Participation and involvement: A strategy need to be devised to facilitate the
participation and the involvement of the employees and shareholders in the change
process. This gives them motivation and a sense of involvement makes them feel part
of the change to which they don’t try to become a resistance.
 Negotiation and agreement: When Cybrosys goes for strategic marketing, then lots of
things are at stake. And it becomes equally important to move towards change by
forming an agreement among all the members and the management through proper
negotiations.
 Facilitation and support: By facilitating and supporting the people who are initiating
and managing the change process, the motivation level of people is increased and boosts
their confidence which in turn becomes an example for others as well to be a part of
change and taking it forward.

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MEASURES TO MONITOR PROGRESS

Monitoring the progress becomes important as it helps to find out and analyze the current status
of the change happening and the performance. It helps to find out, what steps need to be taken
to improve the performance, so Cybrosys can achieve its objective successfully.

To monitor the performance, the management of Cybrosys should follow given methods,
(Teachmebussiness, 2011):

 Cybrosys should set SMART objectives for every individual team, which should be
reviewed on a monthly basis.
 Balance scorecard: It is a performance management approach that focus on various
overall performance indicators within Cybrosys, often including customer perspective,
internal-business processes, learning and growth and Financials, to monitor progress
toward Cybrosys's strategic goals, this KPIs should be measured.
 Benchmarking: It is basically looking outside Cybrosys to examine how others achieve
their performance level and to understand the processes involved. Benchmarking
facilitate improved performance within Cybrosys and the key business processes of
Cybrosys. The objective of benchmarking is to ideally understand and evaluate the
current position of Cybrosys in relation to "best practice" and to identify areas and
means of performance improvement (The best organization for Cybrosys to benchmark
is ‘Infosys’ who is the market leader in India, in the sector of Information Technology).
 Reviews and evaluations: By setting up model of weekly and monthly reviews of the
process, to keep an eye on the status of the progress. The evaluation will help to find
out the weaknesses or the strengths of the project (i.e. Market development).
 180 and 360 degree feedback: By setting up this model of feedback from the individuals
and the team, management of Cybrosys will be able to get the actual performance and
efforts of each and every resource involved with the project.

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CONC LUS ION

This report refers to the strategic change management in the case of Cybrosys Pvt. Ltd. It
identifies much useful information attempts to internally change towards to the environmental
change. However, it is a primary research. This report helped to identify the need to involve
the stakeholders and various strategies to engage them in the change process, which is of utmost
importance to make change process a success at the organizational level. To implement
strategic change management, it may need a further investigation in order to achieve the
effectiveness of business development for the implementation.

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REFERENCES

 Managing change – Bernard Burners (4th edition) – Approach to change management

– Kurt Lewin and planned changes – Page no. 274 – Three step model.
 Make Sense of Change Management – Esther Cameron & Mike Green (2th edition) –
Lewin, three-step model: organism, machine – Page no 110 – 112.
 Make Sense of Change Management – Esther Cameron & Mike Green (2th edition) –
Gestalt approach to individual and organizational change – Page no. 47–50.
 Change Management Master-Class – Mike Green - Force field analysis – Page no. 50–
52, 50, 172.
 Kubler-Ross, E (1969) On Death and Dying.
 Kolb, D (1984) Experiential Learning, Prentice Hall, New York.
 Make Sense of Change Management – Esther Cameron & Mike Green (2th edition) –
The Kubler-Ross model – Page no. 32–35, 34, 37, 244, 247, 253.
 Make Sense of Change Management – Esther Cameron & Mike Green (2th edition) –
Bullock and Batten, planned change: machine– Page no. 113 – 114
 Bullock, R J and Batten, D (1985) It’s just a phase we’re going through, Group and
Organization Studies, 10 (Dec), pp 383–412
 Make Sense of Change Management – Esther Cameron & Mike Green (2th edition) -
Kotter, eight-steps: machine, political, organism – Page no. 114–16, 135, 166, and 168.
 Managing change – Bernard Burners (4th edition) – WHAT TEAM CHANGE LOOKS
LIKE – Tuckman’s model of team change – Page no. 78 – 82.
 Johnson, Gerry, Scholes, Keven and Whittington, Richard. (2008) Exploring corporate
Strategy 8TH Edition London Prentice Hall.
 Mullins, L (2010) Management and Organizational Behavior 9th Ed. Harlow: FT/
Prentice Hall.
 Maslow, Abraham (1970) Motivation and personality. New York: Harper and Row.
 Esther Cameron & Mike Green, learning and the process of change – page – 14
 http://www.change-management.com/tutorial-adkar-overview.htm
 Tuckman, B (1965) Development sequences in small groups, Psychological Bulletin,
63, pp 384–99.
 John Kotter 2011, change management, Kotter international, Cambridge, viewed 18
April 2012, < http://www.kotterinternational.com/kotterprinciples/changesteps>

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  Carnell, C, (2007), Managing change in organizations, 5th edition, Essex, Pearson
Education,
 Daft, R, (2006), The New era of management, Ohio, Thomson
 Grundy, T, (1993), implanting strategic change, London, Kogan page
 Burnes, B, (2004), Managing change, Essex, Pearson Education
 Kotter, JP, (1996) Leading change, Boston, MA, Harvard business school press
 Duck, J.D, (1993) Managing change – the art of balancing, Harvard Business review,
void 71, no. 6, pp. 109-18
 http://www.learning-theories.com/experiential-learning-kolb.html
 http://www.infed.org/biblio/b-explrn.htm
 http://www.talentsprint.com/insights/experiential-learning-1#sthash.0fDGS1oH.dpuf
 http://www.the-happy-manager.com/articles/teamwork-theory/
 Leading Change, With a New Preface by the Author – John P. Kotter – November 6,
2012.
 The Heart of Change: Real-Life Stories of How People Change Their Organizations -
John P. Kotter, Dan S. Cohen – November 6, 2012.
 Force for Change: How Leadership Differs from Management - John P. Kotter – April
1, 1990.

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APPENDIX

EXTERNAL ENVIRONMENT - In order to scan the environment I have conducted

PESTLE Analysis.

Political  Political factors that may affect Cybrosys can be government rules and
regulation in the business environment that Cybrosys operate.
 For IT industry the political structure is stable in the foreign countries.
 In India, decision making in parliament is quick because the majority
of votes is enjoyed by single party i.e. BJP.
 The U.S. government has declared that U.S. firm that outsources IT
work outside the U.S. will not get tax benefits; this has caused reduced
revenue from the U.S.
 Likewise the IT sector does not have any influence of the political
stability of the industry.
 And if the foreign government policies change, there is little effect on
the industry.

Economic  The Economic analysis of Cybrosys is that, Domestic market grows by

20% and IT spending has been increased approx. USD 20 billion in
2008-09 (NASSCOM).
 Decline in real estate prices has resulted reducing the rental
expenditures and due to the recession, the layoffs and job-cuts have
resulted in a low attrition rate.

Social  Social factors for Cybrosys are English is widely spoken language in
India, English medium being the most accepted mediums of education,
especially in Kerala where the literacy is very high. Thus, India boasts
of a large English speaking population.
 In the foreign countries the above resource is already available.
 Working age population in India compared to other countries is very
high and the number of technical institutes and universities over the
country offer IT education.

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  So the Social factor very positive for a company like Cybrosys.

Technological  Technological factors are very positive for Cybrosys as it is located in

India because, India has the world's lowest call rates, is expected to have
a total subscriber base of about 500 million by 2016.
 India has the second largest telephone network after china and
enterprise telephone services, 4G, Wi-Max and VPN are poised to grow
in a vast manner.
 Internet Backbone is also a technological factor to consider due to IT
revolution of the 90s, Indian cities and India is well connected with
undersea optical cables, new IT technologies: Technologies like SOA,
Web 2.0, High-definition content, grid computing, etc. and innovation
in low cost technologies is presenting new challenges and opportunities
for Indian IT industry like Cybrosys.
Legal  Legal factors to look at for Cybrosys are, IT SEZ requirement: IT
companies can set up SEZ with minimum area of 10 hectares and enjoy
a host of tax benefits (like Kinfra and InfoPark) and fiscal benefits this
may benefit Cybrosys.
 Contract/Bond requirements: Huge debates surrounding the bonds
under which the employees are required to work, which is not legally
required.
 IT Act: Indian government is strengthening the IT act, 2000 to provide
a sound legal environment for companies to operate esp. related to
security of data in transmission and storage, etc.
 Companies operating in the Software Technology Park (STPI) scheme
will continue to get tax-benefit.

Economically  Environmental factors that may affect Cybrosys and needs to focus is,
Energy Efficient processes and equipment: Companies are focusing on
reducing the carbon footprints, energy utilization, water consumption,
etc.

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SWOT ANALYSIS

SWOT analysis is the factor that may internally and externally affect Cybrosys and it stands
for Strengths, Weaknesses which are the internal part or can be controlled by Cybrosys by itself
and Opportunities and Threats are the external part which are neglected by the companies like
Cybrosys but need to give maximum attention, the SWOT of Cybrosys is:

Strength Weakness

 Strategic software partnership with IBM,  Lack of marketing experience.

Intel, HP.  Lack of Brand awareness.
 A very bright future because of the  Lack of awareness in small business
demand of online presence. firms about web designing, web
 High quality products and good services. promotion and other web services.
 Innovation and leadership.  Low R & D spending as compared to
 Ease of scalability – more than half of global IT companies – only 1.3 % of total
India’s population is less than 25 years revenues.
old. English speaking IT – ITES  Excessive dependence on the USA for
professionals growing at a good pace. revenues – US Companies are cutting
 Since the company is based in India its down IT budget, hence revenues to be hit
competitive advantage is enhanced. The hardest of Indian IT firms like Cybrosys.
Indian economy, despite weak economic  Rising wage bill – 42.9 % to 44.8 % of
indicators such as relatively high rates of revenues.
inflation, has low labor cost.  Low expertise in high end services like
Consultancy and KPO.

Opportunities Threats

 Redesign websites according to Web  Political, legislative and regulatory

Standards for international clients. change in different countries.
 Provide more security and effective  The global economic slowdown may
database environment. continue for several years – hence low IT

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  Greater scope for product innovation has spending globally US Govt. against
increased focus on high end work like outsourcing
consulting and KPO.  Rupee-dollar movement affects revenue
 Domestic market set to grow by 20%. and hence margins.
 Greater scope to service domains other  Increased competition from foreign firms
than BFSI such as Transportation, like Accenture, etc.
Infrastructure, etc.  Increased competition from low-wage
countries like China, Indonesia etc.
 The economic environment, pricing
pressure and rising wages in India and
overseas

GROWTH OPTION

To know the growth option for Cybrosys, I have used Ansoff Matrix:

Market Penetration Market Development

 Cybrosys can ‘Penetrate the Market’  Markets which Cybrosys can exploit
with existing product in the existing are Europe (apart from the UK),
market. Australia etc.
 For Cybrosys current market is India,  Where they can sell their current
USA, UK, Middle East and Maldives and products/services as this region are
product/services are Web Application & fast developing IT market.
Designing, Android Development, and  Cybrosys needs a paradigm shift in
Business & Technology Consultation. focus from USA and UK markets to
 As most large clients in foreign countries these markets.
are cutting costs, I would like to
recommend that Cybrosys can be more
aggressive about cost and quality front.

Product Development Diversification

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  There is a huge scope for a vast range of  Cybrosys can focus on developing new
products/services like KPO services, and improving product and services like
healthcare products, life sciences and KPO services, healthcare products, life
aviation sector. sciences and aviation sector which they
 They can concentrate on building can sell to new markets.
expertise in these domains by strategic  Cybrosys relies heavily on big businesses
acquisitions. and corporation as their customers.
 The company should develop strategies
to target individual customers and
expand their customer base.
 Youth market being a highly sought after
market, Cybrosys should put to use its
R&D team to develop technologies that
appeal to them.

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