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Assessment Task 2: Change management briefing report
Carefully read the following:
Samson Media is a publisher of several upmarket fashion magazines. It has strong links with a number of high profile fashion houses whose products are featured in the magazines and also provide a significant source of advertising revenue. Readers of the magazines are predominantly 35 to 54-year-old women.
Readership has fallen over the last two years. This is due in the most part to due to competition from a range of other fashion magazines and consumers switching to digital media. Due to the decline in readership, profits have also fallen by 20% and there has also been a decrease in the share price.
As a consequence, a new CEO, Amir Johnson, has been appointed. Amir was the former Marketing Director for a well-known successful media business that included a national newspaper, magazines and a subscription television channel. Publications are focused mainly on sport and celebrity gossip. The business is able to undercut its competitors with low prices, enabled by a ruthless approach to achieving high levels of efficiency.
Amir and his team of Managers have developed a Strategic Plan that includes the following objectives.
- Increase return on capital employed to 8% within 2 years
- Enact a transformational change of the company that will convert all magazines to a digital format only.
- Close the printing and distribution site.
- Achieve cost efficiencies through relocating the head office to a smaller office.
- Restructure head office staff through moving to a smaller core of permanent staff and more contract staff.
It is intended that the new digital magazines will have the following features:
- Focus on health and beauty, fashion and celebrity gossip.
- Some free content but full access available only on a subscription basis.
- Additional features available to subscribers such as video clips, podcasts and discussion
All staff are full-time permanent staff and their total salary costs per annum to Samson Media are as follows
- General Manager: $200,000
- Finance Manager: $150,000
- Marketing Manager: $150,000
- Customer service manager: $100,000
- Customer service assistants (4): $240,000 (total salary costs for each assistant is $60,000)
- Online Marketing Coordinator: $120,000
- Human Resources Manager: $110,000
- Editor: $85,000
- Art Editor: $80,000
- Journalists (3): $270,000 (total salary costs for each journalist is $90,000)
- Graphic designers (3): $240,000 (total salary costs for each designer is $80,000)
- Editing Assistant (2): $120,000 (total salary costs for each assistance is $60,000)
- Photographer (2): $150,000 (total salary costs for each assistance is $75,000)
- Senior Designer (2): $240,000 (total salary costs for each journalist is $120,000)
- Senior Production Controller: $95,000
- Printing and distribution (20 staff): Total $1,000, 000
The cost of running the printing and the distribution site, plus staff costs is currently approximately $1,500,000 per annum. It has been identified that given the change to the new medium of publication it will be an immediate priority to shut down the site and make all of the staff redundant. The current office rent is $500,000 per annum.
Employment contracts are in place for all staff members employed in Head Office. Printing and distribution workers are employed under an award. The CEO has indicated that he is interested in moving towards an enterprise agreement arrangement for all remaining staff and would like to have this reviewed as part of the change management process.
Current human resources policies and procedures include a recruitment, selection and induction policy and procedures and a termination policy and procedures. There is an ad-hoc performance review process in place which occurs as issues arise. There are no formal processes for training needs analysis or professional development.
As the General Manager, you have been asked to lead the development and implementation of the change management plan with the first step being to consult with an organisational change expert to discuss issues and strategies for change management for the company.
It is anticipated that while there will be some cost savings in making the change, there will also be costs involved including:
- Redundancies: anticipated cost is $300,000
- Upskilling staff: $100,000
- Consulting with experts: $100,000
- Communication throughout change with key stakeholders: $100,000
Complete the following activities:
- Review scenario and conduct research on best practice change management strategies.
Analyse the company’s organisational objectives as outlined in the scenario information and consider the strategic changes needs that will need to occur based on strategic objectives. Make notes on your analysis for use in your briefing report as outlined below.
Review the current human resources policy and procedures used within Samson Media against strategic objectives and the need for change. In the light of the changes required to the organisation, consider changes that may need to be made to the human resources policies and procedures and any gaps. Make notes for use in your briefing report.
Using the Internet, research change management, issues and practices including barriers that can impact on change and best practice change management strategies. Make notes for inclusion in your briefing report and to assist you in identifying best practice change manage strategies for Samson Media.
You will also need to identify at least three sources of information in your briefing report to show that you have identified expert guidance on change management so make notes on all the sources of information you identify and use.
Monitor the external environment by researching and analysing trends in magazine publishing/on-line magazine readership and their impact on Samson Media’s organisational objectives as per the scenario information. This should also include a PESTLE analysis, reviewing political, economic, social, technology, legal and environmental factors. Make notes on sources of information, as well as general findings for inclusion in your briefing report.
Consider major operational change requirements and recommended order of priority based on your review of the scenario information and human resources policy and procedure. Make notes for use in your report.
- Develop change management briefing report
Using your research and analysis as above, develop a briefing report for the CEO using the template provided to you by your assessor. The purpose of the change management report is to identify change requirements and opportunities and to inform the development of the change management plan.
- Your briefing report must address:
- An overview of the current situation facing Samson Industries including:
- Analysis of the company’s organizational objectives and identification of strategic changes needs.
- A review of the current human resources policies and procedures and practices at Samson Media against strategic objectives and report on required changes.
- An analysis of the external environment relevant to Samson Media and its objectives, including events/trends that impact on strategic objectives, including trends in magazine publishing, as well as trends in on-line magazine readership. Your analysis should reflect a PESTLE analysis approach, reviewing political, economic, social, technology, legal and environmental factors.
- An outline of the major operational change requirements for Samson Media based on your analysis and review, as well as recommended priorities for change.
- Sources of information you identified about best practice change management strategies, as well as an overview of best practice change management strategies. Summarise each source of information and briefly outline how it has assisted in identifying major change requirements and opportunities.
- An analysis of the potential risks/barriers to change for Samson Media and strategies to overcome risks and barriers to In identifying risks and barriers to change and solutions to address these, you must demonstrate high level problem solving skills to identify all possible risks, as well as innovative approaches to risk mitigation. Use the risk assessment template provided to you.
- A cost-benefit analysis of the high priority change requirements and Research and document any costs for the change requirements you are recommending.
- Recommended communication and education strategies to inform all stakeholders of the change, as well as promote the benefits of the change.
- Submit change management briefing report
Submit the following along with draft an email to your assessor as though they are the CEO, as well as the other Senior Managers. You should attach your briefing paper and risk assessment to the email. The text of your email must include a brief overview of the purpose of the briefing paper and risk assessment.
Your assessor will review your report and email you regarding the date and time of the meeting to discuss your report and risk assessment, and to provide input into the change management process.
- Participate in change management plan meeting
In this final part of the assessment, you are required to participate in a role-play meeting to discuss your briefing report and risk assessment prior to developing a change management project plan and communication and education plan.
At the meeting, carefully explain each part of your briefing report and risk assessment, including best practice change management strategies and the expert sources of advice you identified to establish the best practice change management strategies.
Seek input on the change requirements/opportunities you have identified, including your recommended priority for the changes.
During the meeting, you will need to demonstrate effective communication skills including:
- Discussing information
- Asking questions to identify required information
- Responding to questions as required
- Using active listening techniques to confirm information
Your assessor will provide you with feedback, which you must use in the development of the change management plan, as well as communication and education plan.
Following the meeting, Submit the following along with draft an email to the CEO (your assessor) confirming the feedback that has been provided.
Assessment Task 2 Checklist
|Student ID:||Student’s name:|
|Did the student:||Completed successfully||Comments|
|Demonstrate the ability to identify change requirements and opportunities, including:
· Outlining strategic changes needs for Samson Media based on an analysis of organizational objectives?
· Reviewing specific policies/practices against strategic objectives and explaining where changes are required?
· Explaining the major operational change requirements for Samson Media, as well as recommended priorities for change?
· Outlining potential risks/barriers to change for Samson Media and strategies to overcome risks and barriers to change?
|Identify and use relevant and appropriate sources of expert advice on change management issues and practices to inform change management?||¨||¨|
|Analyse all risks associated with the change to enable documentation and implementation of appropriate risk mitigation strategies?||¨||¨|
|Demonstrate problem-solving and innovation skills in the identification of risk and risk mitigation strategies through identifying relevant risks and developing innovative solutions for treating risks?||
|Undertake a cost benefit analysis of each of the identified high priority change requirements?||¨||¨|
|Consult with the CEO on change requirements and opportunities?||¨||¨|
|Seek input from the CEO on changes identified, as well as order of priority?||¨||¨|
|Demonstrate effective communication skills including:
· Discussing information
· Asking questions to identify required information
· Responding to questions as required
· Using active listening techniques to confirm information?
|Task Outcome:||Satisfactory ¨||Not Satisfactory ¨|
|Student signature and date|
|Assessor signature and date|