Wednesday, May 29, 2013

Week 30





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

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.


Figure 2.3 Lewin’s Force Field Analysis (FASLANE) 




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.

4.0 References:




       1.    Frazer, J. G., 2006. The Golden Bough. Sydney: NuVision Publications, LLC.

     2.    Gapes, M., 2010. Global security: UK-US relations, sixth report of session 2009-10, report, together with formal minutes, oral and written evidence. Norwich: The Stationery Office.

     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.

    7.    Schank, J. F. et al., 2005. Ministry of Defense roles and required technical resources, Volume 1.California: Rand Corporation.


    8.    The Great Britain, et al., 2009. Engineering: Oral and written evidence. Norwich: The Stationery Office.


    9.    The Stationery Office, 2010. Managing the Defense Budget and Estate. Norwich: The Stationery Office.



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