Clemenger BBDO – Change Management Case Study Analysis
Introduction
Change management refers to the structured processes of ensuring the smooth incorporation of change in the organization. The basic principle behind change management is that the change is inevitable and that it does not works in isolation (Graetz et al, 2011). Change impacts the processes and functioning of the whole organization and the people associated with the organization including the employees, clients and end-users. In order to be manage change successfully, it is first necessary to understand that change has a very wide range and impacts many spheres of the organization. To manage change successfully, Lewin’s Change Management Model is one of the most effective models.
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Lewin’s Change Management Model
The Lewin’s change management model states that it is important to follow a logical process for incorporating change (Hotho and Champion, 2011). It is first important to understand that why change is happens, the why change is important and then how to implement change. This change management model consists of the following three tools-:
- Unfreeze-: With this tool the change mangers identify why change is happening. They also analyze is that what needs change and then create support and need for change.
- Change-: With the help of this tool, the change managers device the strategies and tools through which they can bring about the change management.
- Refreeze-: Through this process the change managers incorporate change into the culture of the organization and then develop strategies to sustain the change (Andrews et al, 2008).
What are the drivers of change? Who are the agents of change?
In an organization change is inevitable and it is important for the company to adapt and modify its policies and strategies to be able survive the competition. Organizational change is driven by the internal and external factors (Graetz et al, 2011).. The overall transformation of the organization is the sum total of the several changes that occurred across the whole organization. The three primary triggers of change include-:
- Understanding the microeconomic environment of the business and the developments happening in the market.
- A through research and analysis of the industry’s accepted practices and complete knowledge of the framework.
- The realistic and time-bound assessment of the organizations strength, weaknesses and performance.
These three primary triggers of change are together known as the EIC or the Environmental-Industry-Company drivers of change. The environmental change drivers are measured by the PESTEL analysis. The Industry change drivers are measured with the help of Porters Five Force Model and the Company change drivers are measured by the SWOT Analysis.
PESTEL ANALYSIS (External Change Drivers)
The PESTEL Analysis refers to the external environment analysis of the company. The PESTEL analysis stands for the political, environmental, social, technological, economical and legal factors that may affect the growth and business of the company in future (Karp and Helgø, 2009). Let us now conduct a PESTEL Analysis on Clemenger BBDO-:
- Political Factors-: Since, Clemenger BBDO is a leading advertising and communication organization the trade regulations, policy regulations and the stability of the government hugely affects its business. The government policies affect the market and change the dynamics of the business (Andrews et al, 2008). Hence, the advertising and marketing strategies of the business also changes.
- Environmental Factors-: The environmental factors include the external dynamics of the market the organization operates in. In Australia, the advertising industry has witnessed a huge boom and it’s at its peak today (Hotho and Champion, 2011). But, it has started to reach its saturation level. Hence, to survive the competition and maintain its leadership the company would have to produce new and innovative marketing ideas to retain original clients and to attract new ones.
- Social Factors-: The social factors include the factors like the practices of the society in which the company operates.
- Technological Factors-: The technological factors are the most critical factors because they are the hardest to keep pace with. With the advancement in technology, the advertisement and marketing community witnessed a dynamic and constant change in the medium through which a product is marketed or sold. In order to retain the clients and in order to survive completion, Clemenger BBDO needs to keep pace with the change in technology and upgrade its advertising and marketing plans accordingly (Andrews et al, 2008).
- Economical Factors-: The economical factors include the average economy of the end users of the product and hence their preferences for a particular type and range of products. Thus, to an end user or community, the marketing solutions need to focus on the specific trends in each community.
- Legal Factors-: The legal factors in case Clemenger BBDO, do not have much complexity and do not pose any threat to the organization
SWOT Analysis (Internal Analysis)
Strength
The strengths of Clemenger BBDO, can be identified has the huge resource pool and an industry experience of more than 25 years. The company has a strong foothold in the market and holds accounts with some of the most profitable businesses in Australia (Jick and Peiperi, 2011).
Weakness
Although Clemenger BBDO has a strong foothold on the communications industry, it started to decline due to its weaknesses like no intention of adapting change and low-risk taking polices (Zirpoli and Becker, 2011).
Opportunity
The advertising and communicating industry is growing leaps and bounds with clients on an aggressive look out of new ideas to lure and attract the consumer (Zirpoli and Becker, 2011). Thus, with a dedicated strategy of risk-taking, Clemenger BBDO has huge opportunities to make and attract newer clients.
Threats
The economic slowdown and the emergence of new companies, who offer similar marketing solutions at much lower prices, pose a great threat to the business of Clemenger BBDO. Since the investment required to enter the communication markets is not much, new and younger organizations are emerging (Jick and Peiperi, 2011). The organizations target Clemenger’s leading position in the market by creating more exciting and lucrative business solutions.
Which of the Perspectives on Managed Change is most appropriate to this case?
Perspectives are the organized concepts and ideas that give shape to the strategies and framework of an organization. Perspectives develop an organizations attitude towards business and fundamentally shape up the basic understanding of the events and things of an organization. An organizational change can be defined as a machine, an organism or maybe even a game of chess. These are all perspectives of organizational change and have a vast and broad reach. In fact these broad perspectives of change can be further simplified to metaphors and specific analogies. Although it is said that metaphors and analogies aim to cultivate in-depth insight of change management, their effect is majorly negative as they confuse even the most clear-thinking and radical person (Graetz et al, 2011). Most perspective ends up encouraging fragmentation and hence leading isolated processes of thinking within an organization. In case of Clemenger BBDO, we will discuss the following most suitable perspectives-:
The Rational Perspective-: The rational perspective of change refers to strategic change and is concerned with aligning the organization’s structure with its environment. The alignment of competencies with the environment is completely in hand of the organizational leaders. The leaders are responsible for the optimal use of resources to achieve the goals and objectives of the organization (Karp and Helgø, 2009). The most important strength of rational perspective of change is that it follows logic. According to the perspective, the change comes for a reason and it is the responsibility of the change manager that they identify the right reasons through a logical process. In case of Clemenger BBDO, it can be clearly seen through the case study that the rational perspective of change worked well when the new manager took all the responsibilities in hand and identified that the employees had become lazy and unreceptive to change. Hence, he managed change with a rational perspective
