Table of Contents Page Number
Acknowledgement……………………..…………………...…….....……...…....…..I
1.0
Introduction (Purpose of Report)….....................................................................1
2.0Analysis
…………………………………………………….…..…..……...…2-14
2.1
Hope Hailey’s and Balogun Change Kaleidoscope (Faslane)…..…..........…..2
2.2 In the year 2002, Strategic
Change Situation at Faslane…………….….....…3
2.3 Lewin’s Force Field Analysis
(Faslane)…………….....………...….......…4-5
2.4 Comparing and Contrasting the
Internal Features of Faslane………..…......6-7
2.5
Johnson’s Cultural Web of Faslane up to 2001 and from 2002 to 2010..........7
2.5.1 Comparing Cultural
Web up to 2001 and from 2002-2010 of Faslane..8-9
2.6
McKinsey’s Seven S Model (Up to 2001)……………………….…......…10
2.7 McKinsey’s Seven S Model (From 2002-2010)……………………....…..11
2.8 Faslane Strategic Leadership
Style…………………………………..…12-14
2.9 Lynch Strategic Leadership
model…………………………………....……14
3.0
Conclusion …………………………………………………..……………......…15
4.0
References…………………………...…………………………………..……...16
Acknowledgement
I
express my sincere appreciation to our respected Lecturer of this module (Strategy
Choice and Impact) Dr Guru Tej for immense help, suggestion and co-operation.
This case study analysis is impossible to complete without taking the help,
suggestion and recommendation of Dr Guru Tej.
I
would also like to thank to our London Metropolitan University for providing
such a demandable Module and coursework which is really helpful in our career
and to fit in the real world of business. I would also like to thank Islington
College Management Team, especially to Mr. Govinda, Mr. Ashok Dhungana and Dr.
Francisca Tej for their help and cooperation during our studies.
Last
but not the least, I am always grateful to my Parents who always encourage,
motivate and recommend me to be the best one out of the crowd. I would also
like to thank my only brother Mr. Pankaj Timilsina (Sydney), who help and
suggest me what to do and what not to do throughout three years of my
undergraduate study at Islington, always help me financially and emotionally in
my Studies.
PRASANT TIMILSINA
____________________
1.0 Introduction
“Study strategy over the years and
achieve the spirit of the warrior. Today is victory over yourself of yesterday;
tomorrow is your victory over lesser men.”Miyamoto
Musashi.
Faslane was formerly supervised mutually by the
Royal Navy and the MOD (Ministry of Defense), after decided to partnership with
a private sector organization named Babcock Marine before the year 2002. The
key intend of such partnership association was for the intention of improvement
of services as well as cutting down the cost. For improving their operational
effectiveness and to save the cost the responsibility was given to Babcock
Marine. They were agreed that within five years of time target of £76
million saving, which was possible. Though there is a significant change
Faslane was gifted to attain the target and was considered the best.
This
analysis part of report is alienated into three sub sections which are as
enlisted below:
1.
First section dealt with strategic change context using the
strategy models like Hope Hailey’s Change Kaleidoscope and
Lewin’s Forcefield Analysis to measure the changes.
2.
Second section dealt with softer issues. For Example MC Kinsey 7’S
and Cultural Web models are important to apply in order to determine the
barriers to change as well as to analyze the internal features of
Faslane.
3.
Third sections are more related towards the strategic leadership
style during 2002-2010 and compared it to Lynch Leadership Model.
The main
aim of this case study analysis is to identify the students’ knowledge and made
familiar about different analyzing tools of strategy management models in the
case of Faslane and to make familiar with change management models which is
very significant to further analyze the change take place in different other
organizations like Faslane in the real world scenario.
2.0
Analysis:
Faslane submarine base which was formerly managed by
MOD was transfer to Babcock Marine which is the part of organization named
Babcock International, in the year 2002. With the transfer of management and
control, it is essential for the Babcock management team to cutting down the
cost and also to improve their performance.
Figure
2.1 Hope Hailey’s and Balogun Change Kaleidoscope (FASLANE)
2.2
In the year 2002, Strategic Change Situation at Faslane:
According to above figure 2.1, to analyze the change
process at Faslane, Change Kaleidoscope model are used. From that we can
evidently examine that the process of change was revolutionary as the key
intention was to change the mindset of workforce. Due to participative program
like “the event in the tent” there are huge participations from the
individuals.
To deliver of £76 million cost saving
within five years, the new management team was arranged to meet the target. In
short period of time it was not easy to achieve. The management team requisite
transfer of capable workforce who has previously faced changes. With such
transfer the time for adaption was delivered and Babcock was capable to attain
the goals. Furthermore, changes arise from the low levels, which make it implementation
process simple or effortless. Talking about the scope the structure process and
the technique of working are totally different of the management team. Previous
to change process, workforce were only concentrated to facilities and
infrastructure rather than people. Throughout the change context, the importance’s
of inward looking are more highlight by the new management team.
At the time of change period, Babcock undertake to
increase the efficiency with no effecting the quality of services being offer
which was possible by changing the mindset of the people and make available of
skilled workforce in the Faslane. Management states that the workforce will be
capable to set up plans as well as maintain themselves. In new terms, there
were set flexibility in the work. On the diversity factor, Management team were
reduced and diversified. On the capability side due to lack of experience,
workforce were not totally ready for change. Formerly it was managed by Royal
Navy and MOD and they did not fell that change is required.
As the budget was fixed the capacity of Faslane was
positive. People are well skilled by which they can overcome the impact of
change. However, there is less managerial time as it has to distribute of £76
million saving within five years. Because of unique skills, formerly experience
and capabilities management was ready for change. Conversely workforce were not
ready for change as they have fear that change will not benefit them and they
never gone through change.
Forcefield analysis is used to describe the change
at Faslane. By observing the above figure 2.3 where two factors for and against
change are illustrated. MOD was in the need to improve the efficiency with
quality service as well as cutting down the cost. Top Level Management and
customers provides a great support for better quality services. The Change was
necessary and appropriate for the future purpose of the organization.
Alternatively, there were resisting factors against
change as well. There are different factors such as Traditional thinking and
working style. Formerly they were passing the time and making money, so change
will be tricky or hard for them. Moreover, workforce has no any attitude to
save money. The structure of the
management was also large via huge amount of money was being spent. In
addition, in the public sector organization existence of bureaucracy was the
vital problem. In particular, the need for change was very basic to cut over
expenses. Therefore, change process was carrying out and it is prepared for
saving money as well as to improve efficiency.
Hence, Faslane change process was cultural and
revolutionary. By referring to Johnson (2011), Revolution is the change which
requires major and rapid strategic as well as cultural change. It is
revolutionary change at Faslane, due to change in the mindset of the people.
2.4
Comparing and Contrasting the Internal Features of Faslane:
As we have applied different internal analysis for
Faslane 2.5. We compare the Johnson’s Cultural web up to 2001 and from
2002-2010 in tables 2.5.1. MC Kinsey 7’s Model was applied to figure 2.6 and 2.7
respectively. After analyzing the cultural web of different years there is the
positive changes in the style of the management which can facilitates to attain
goals and objectives of the organization. Babcock supervises welfare,
commitment and loyalty which appear from the side of the employees. Presently
people are measured as the crucial elements of organization but previously
infrastructure and assets are recognized as crucial. Both good and bad is there
at the time of Faslane was managed by royal Navy and MOD. There is complex
management structure which is huge as well. Creativity and plans are not
properly taken care, only they care about their jobs and assigned tasks. There
is also the huge organizational structure with seven layers and they were
compromised traditional management and organizational structure. Workforce
perceives the change is not necessary or changes as a negative also be
measured. Even if Faslane was oriented towards customer, due to time consuming
style of decision making Faslane was unable to delivering quality services.
Moreover, there are difficulties of unclear roles and responsibilities to
workforce. Slow adaptation to change was noticed from management level to
employee. Only few people are benefited because of the bureaucratic leaders.
Most, of the management and the employee’s level shown the ethnocentricity
behavior as they know better than others.
Face of the Faslane was changed after the private
company named Babcock was given the management. This company can able to change
the mindset of the people. New employees are bought by the management who
previously work with changes and worn them to effectively implement the change.
Due to active participation of employees the change process became successful.
Employees are request to collaborate and to highlight the importance of change.
Currently staffs were give the power to select their own team and formulate
business plan also the management became strong. At present people were also
consider and they were having mutual goals and objectives. Due to flexibility
there were unique management teams, with various skills and low power distance.
At the same time management structure reduce from 7 to 4 through which the cost
was also reduced. Furthermore, management made the significant decision in the
reduction of review period from 56 days to only six days. Company attain its
goals year by year by cut off in jobs or reappointment all the jobs which was
also the crucial key factor which facilitates the company to attain its goals,
missions, visions and objectives.
However,
cutting down the cost may hamper the value of service being provided by the
organization. At the time of formal management, individual can generate their
own concepts and implement it. In addition, hierarchy of organization may
damage by such flexibility in organization and also form a serious problem.
There is huge loss of career because of change process. This may decrease the
workforce performance because of fear.
To conclude, Faslane has entirely changed its
organizational structure and management after going through the change process
which is fruitful for accomplishing the organizational goals and effectiveness
with the specified time period. That’s why changed is support for the
organization named Faslane.
2.5 Johnson’s Cultural Web of Faslane up to
2001 and from 2002 to 2010
Figure
2.6 McKinsey’s Seven S Models (Up to 2001)
Figure
2.7 McKinsey’s Seven S Model (From 2002-2010)
2.8 Faslane Strategic Leadership
Style:
At the time of 2006, Craig Lockhart
was the managing director. Previously From 2002-2006, John Howie was the
managing director. There has been a major change process after the period 2002.
The key intention of giving away the management of Babcock was they gain
experienced management skills, more competitive, various targets which has
entirely dissimilar from that of service sector. By referring to figure 2.9 we
can evaluate the organization against the five elements of successful and
effective leadership model which is also popularly known as Lynch Model.
The five elements of successful and
effective leadership model are examined as follows:
1.
Managing
organizational decisions and human resources:
The roles of
leaders are very crucial for motivating, developing key talents and skills and
managing the workforce.
Through cutting
down the cost and reducing the jobs Babcock was able to manage their Human
Resources. Number of review period was reduced to 6 days from 56 days by the
management team, which saves a lot of money and time. On the other hand,
employees were not motivated because of the fear of losing the jobs.
Furthermore,
more training to workforce lead to increase in the cost which directly affects the
organization to accomplish their goals and objectives.
2. Setting Ethical Standard:
Lynch Model
suggests that, leaders are responsible of setting corporate social
responsibility as well as monitoring ethical standard of the organizations. The
MOD made a contract of five years with Babcock to reduce the cost by
restructuring the organization, which is clearly been observed in the case of
Faslane. In there is unethical to spend tax payers money is save to set the
standard of ethics. Furthermore, the management team was capable to encourage
employees that they are available to treat and develop them.
Conversely, due
to increase in the budget of Faslane with corporate social responsibility it
may hamper the organizational objectives.
3. Defining and delivering to Stakeholders:
As, we know
leaders need to maintain and preserve good relation with their stakeholders
inside and outside the organization, which is suggested by Lynch strategic
Leadership model. Faslane was capable to offer the better quality services. The
service of Navy was better than that of before. By satisfying both the stakeholders
Babcock was able to attain the desired target on time.
Conversely, it
was not competent to satisfy their employees because of frequent Job losses.
Thus, it can be
said that they have utilized the Lynch model properly and Faslane was very
beneficial by utilizing all its resources and its objectives and goals which is
cost reduction. Due, to good performance it was able to manage the entire
submarine fleet as well as able to meet its targets.
4. Sustaining competitive advantage
over time:
Managers and leaders
considered to be responsible for preserving and maintaining organizational
competitive advantage. Management team was able to reduce hundred millions of
pounds in five years, which is reflected in the case of Faslane.
This is one of
the crucial competitive advantages to management as well as quick and unique
team decision style is the competitive advantage of people. In addition, the
Babcock employed those workforces who have previously faced the process of
change. The finest evidence is that of Babcock is a privately owned
organization which has been experienced in transferring culture to public owned
organization from private owned organization. Due to this, Faslane gain a
competitive advantage may not maintain for the long period of time as Babcock
is the private company, they can withdraw their management team at any moment.
As, this happen the MOD might not be capable to maintain competitive
advantage.
5. Developing and Communicating the
Organizational Purpose:
Referring to
Lynch model the key and foremost task of the leader is to decide the purpose of
the organization and as to attain the purpose it should be communicate to each
and every part of the organization. Faslane management allows the employees to
come up with unique business plans s well as make their own teams.
Furthermore,
they motivate and encourage their employees by arranging various events like
“the event in the tent” and also organizing the open discussion.
As per example:
For improving quality of services as well as saving cost management provides
the clear instruction to their employees.
Alternatively, due to change
process various employees lost their job. The reduction of 400 full time posts
and decreasing the management structure layer from 7 to 4 has impact negatively
to work efficiently to the employees.
2.9
Lynch Strategic Leadership model or Five Elements of Successful and effective
strategic Leadership Model
3.0
Conclusion:
After analyzing various models and
strategic concepts it is comprehensible that implementing change process is
successful to the Faslane. It has been quite clever to perform well by
attaining its goals and objectives although there is the change in the mindset
of the people. Permitting flexibility and freedom to the staffs that has really
struggle a lot to transform Faslane into a booming organization. Due to public
sector organization was managed by private sector; we can conclude that it has
been an evolutionary transformation.
Conversely, some
negative aspects were observed in the Faslane change process but the management
team was experienced and strong. Thus, change process can perform with the help
of employees.
Furthermore,
comparing internal features, it was evident that previously Faslane was managed
by the Royal Navy and the MOD there was no proper Services as well as
creativity. Only routines are followed by the employees. Only after the year
2002, employees were given a chance for discovering themselves. Babcock
recognized that the most important assets of the organization was only the
employees i.e. the human capital. Management structure was reduced and
employees were having clear roles and responsibilities. The cost of the
organization is cutting down with the help of change process.
In addition, five elements of
successful and effective strategic leadership model were properly utilized by
the Faslane. By communicating clear purpose of the organization to be
Stakeholders Company can attain its objectives. Faslane was also successful to
managing human resource and maintaining ethical standard in the organization.
Due to better performance, Faslane was capable to meet its objectives and also
manage the entire UK submarines fleet successfully.
Finally, due to adaptation of change process and its
unique management style, Faslane was able to achieve well. Relatively than
cutting the profession of employees of Faslane, the management can offer job opportunities
in other various sectors, so that it will help to accomplish organizational
goals and objectives by encouraging and motivating the employees.
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3.
Hunter, A.P., 2007. Breaking the Mould
True Stories about Ordinary People Becoming Powerful. Delhi: Sterling Publishers Pvt. Ltd.
4. J.
Balogun and V. Hope Hailey, Exploring
Strategic Change, 3rd edition, Prentice Hall, 2009.
5.
Johnson,
G. Whittington, R. & Scholes. K. (2011) „Exploring Strategy‟,
9th Edition, Prentice Hall, p492
6. Lynch,
R., (2009) Strategic Management, 5th
Edition, Prentice Hall, chapter 16.
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Defense roles and required technical resources, Volume 1.California: Rand Corporation.
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