Aegon Group International: Change Management Strategies

INTRODUCTION TOWARDS THE CHOOSEN Business:

AEGON Group (AEGON N. V. ), an international provider of life insurance coverage, pensions and other long-term investment products. Based in The Hague, holland, AEGON has around 40 million policyholders and approximately 28, 000 employees round the world. It has resources, including all revenue-generating investment funds, of 405 billion (£348 billion). * AEGON's objective is to help customers secure their long-term financial futures.

AEGON has three main established markets: america, holland and the uk. Lately, AEGON has extended its international presence, driving into new expansion market segments in the Americas, Asia and Central and Eastern Europe. At the moment, AEGON has businesses in more than 20 market segments across the globe.

AEGON has a definite, well-defined strategy, targeted at creating long-term value for all the company's stakeholders. Focused on its central businesses (life insurance coverage and pensions), AEGON seeks profitable, sustainable expansion and pursues a multi-channel approach to distribution to give customers usage of products and services in the manner that best suits them.

AEGON was created in 1983 - the consequence of a merger between two Dutch insurance companies - AGO and Ennia. And many of the firms who form AEGON have a long history. For example, in the United States, Monumental Life located in Baltimore has been insuring people since 1858, within the United Kingdom, AEGON (a brand of Scottish Equitable plc) has been around existence since the early 1830s.

*Source: AEGON N. V. quarterly results, 30 Sept 2010

TASK 1;

EXPLORE THE BACKGROUND TO CHANGE AFFECTING THE ORGANIZATION.

(A) IDENTIFY A RANGE OF MODELS OF CHANGE MANAGEMENT AND EXPLAIN THE ANY THREE OF THE MODELS IN DETAIL.

McKINSEY 7-S MODEL:

The McKinsey 7-S Model was created by Tom Peters and Robert Waterman whilst these were doing work for McKinsey & Company in 1978 (12Manager, 2007. Corresponding to the model there are seven different factors that are a part of the model
  • Shared values
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills

Shared values are the centre of the model since it is what the business is convinced in and stands for, including the mission of the company. Strategy represents what the business packages to do react to any changes of its exterior environment (Recklies, 2007). The structure refers to the organizational framework of the company. Systems will be the part of the model that presents "the procedures, functions and routines that characterize the way the work should be done". Staff is quite obvious in the fact that it's a proper representation of who's employed by the business and what they do within the business (12Manage, 2007). Style indicates the organizational culture and management styles that are used within the business (12Manage, 2007). Skills point out the capabilities and competencies of either the employees or the organization holistically.

LEWINN'S CHANGE MANAGEMENT MODEL:

This model was developed in early 1950s by Kurt Lewin a psychologiest. Lewin accepted following three periods of change (Syque, 2007),

  1. Unfreeze
  2. Ttransition
  3. Refreeze

The majority of men and women will stay within certain safe areas and it is hesitant of change (Syque, 2007). These folks have a tendency to become comfortable in this unchanging environment and become uneasy when any change occurs, even if it is a one. In order to overcome this frozen state, we must start an unfreeze period, which is performed through desire (Brain Tools, 2007). Inspiration is important in any organization, even though it is not changing. The transition period is when the change is occurring, which is a voyage rather than a step. . The transition period takes time because people do nothing like change. By the end of the transitional voyage, comes another level: refreeze. This is the stage where the company once again becomes steady.

Kotter's Eight Step Change Model;

According to this model there are eight steps that must definitely be adopted for successful change.

Step One: Increase urgency for change

Step Two: Build a team for the change

Step Three: Construct the vision

Step Four: Communicate

Step Five: Empower

Step Six: Create short-term goals

Step Seven: Be persistent

Step Eight: Make the change permanent

The first step is to generate urgency for change. This means that we must influence the employees that change is essential for the company to survive. This does mean that people must talk that the change is possible without any detrimental effects on their jobs. The next thing is to build a team for the change, which needs to be of some respected employees within the business. The 3rd step is to create the vision, which will show clear course to how the change will better the future of the company and their jobs (Rose, 2002). The fourth step is to communicate this vision. In order for the eyesight to work it must be fully understand by the employees, which means that it's important for the market leaders of the change group to follow this eye-sight. The fifth step it to empower the employees to implement the change. It is still important that the management follow the same rules as the employees are too. By creating short-term goals, we assist the employees to simply accept the change by demonstrating them improvement. Rewards are very important at this step also. The seventh step is about persistence because we should impact more change even following the short term goals are attained or the initial arrange for change will cease and pass away (Rose, 2002). The ultimate step is to help make the change permanent by moving appropriate it into the company's culture and tactics, such as advertising (Chapman, 2006).

(B) IDENTIFY AND LIST THE FACTORS THAT HAPPEN TO BE DRIVING YOUR CHOSEN ORGANIZATION TO IMPROVE, AND SUGGEST AN APPROPRIATE MODEL OF CHANGE FOR YOUR CHOSEN ORGANIZAITON WITH REASONS FOR SUGGESTING THE MODEL.

In case of AEGON UK following are the deriving forces for organizational change.

Financial restructuring in britain.

Growth in human population and changes in demographic attributes.

Cultural diversification in the united kingdom.

Changes in communal dimensions of the United Kingdom.

Evolution of politics orientation and procedures.

Increase in the domestic purchasing vitality.

Institutional and plans neglect about the financial products.

High competitiveness and consequent troubles.

Deficient Management techniques.

Inefficiency in processes.

In the personal thoughts and opinions of the researcher the best option of change model that needs to be applicable in case there is AEGON UK is Kotter's Eight Step Change Model. The researcher believes this is the best choice because it is simple mode. Researcher thinks in this manner because it completely prepares the employees of the company before the eyesight is even created, meaning the actual transition will be much easier in the long run. You will find fewer disadvantages to the model than others. Overall it's the best fit for most companies because large change is necessary for the divisions because it's background. This will also help relieve the changeover because the section has quite a history set alongside the rest of the company, so people are not as occur the ways, as they would be if the division have been around longer.

(C) IDENTIFY THE WORTHINESS OF STRATEGIC Treatment TECHNIQUES AND WHAT Involvement TECHNIQUES WOULD YOU APPLY IN INTRODUCING BECOME YOUR CHOSEN Corporation;

There is not a question that some form of strategic planning is paramount to an organization's future performance. However, there are several difficulties to implementing this type of planning in an business. Large group interventions are one set of methods for handling these difficulties.

In case of AEGON UK proper planning implies planning for the long-term. Enough time structure associated with this kind of planning is from 3 to 5 years in to the future. For this reason timeframe, there are several issues associated with long-range planning. These include: creating an idea that is breakthrough in its orientation somewhat than "more of the same, " getting all stakeholders to invest in the organization's strategies and follow through on implementation of critical activities, and decreasing cycle amount of time in the planning process.

In the modern world, organizations cannot afford these obstacles. To survive, they need to have the ability to quickly create, deploy, and implement breakthrough strategies that help them to continuously foresee and meet current and future customer requirements. In doing so, they must have the ability to align all interior and external resources around the plan. This type of orientation necessitates approaches to proper planning that entail all employees and stakeholders in the look process and a planning process that can occur in a shortened time frame.

The researcher will choose to look at Large Group Interventions Strategy to address the proposed change in the chosen group AEGON.

LARGE GROUP INTERVENTIONS:

Over the past 20 years, a number of large group intervention techniques have surfaced that quicker effect large-scale change. Consequently, they have been effective tools in working with some of the issues associated with strategic planning. These intervention techniques include: Design, Participative Design, Simu-Real, Work-outs, and Open Space Technology. As summarized in the book, Large Group Interventions, by Barbara Benedict Bunker and Billie Alban, these approaches allow organizations to involve from 30 to hundreds, if not really a few thousand, individuals in working together to accomplish the outcome. They may get together for a single day or multiple days or events. In the process of working collaboratively, the organization can more quickly achieve what Kathleen Dannemiller has coined "one heart and soul and one mind"-a key factor in organizational position.

These solutions have several defining characteristics. They may be best used when

Time is of the essence.

The concern is complicated.

The purpose of the treatment is clear.

There is dedicated and involved command.

Benefits can be reaped from stakeholder engagement and possession.

A design team that is representative of the whole is engaged to develop the content and process pieces of the intervention as well as its follow-up, support, and communications plan.

Real work occurs through the event.

Large group interventions have been used effectively in diverse market sectors hence the researcher thinks this type of strategic involvement technique will succeed for AEGON UK.

TASK 2

UNDERSTAND ISSUSES ASSOCIATED WITH STRATEGIC CHANGE IN THE ORGANIZATION

(A) DISCUSS THE General BACKGROUND TO CHANGE THAT EXISTS IN TODAY'S ECONOMY, AND THE PRECISE DRIVES THAT MOTIVATED YOUR CHOSEN Corporation TO CONSIDER CHANGE.

World appears to be integrating economically, politically and culturally. Regardless of the national limitations huge improvements in information, communication and technology has occurred. Ownership patters of corporate and business sector worldwide have become more technical like joint ventures, cross-border acquisitions etc. Global strategies have emerged in the development of goods and services, circulation and management of labour. These experienced an immense impact on business activities. The planet economy is now more carefully interlinked and the fund has become a global source.

In the existing financial circumstances organizations are facing both external and internal pushes that finally make change inescapable. External pushes such as new employees demographics; changing goals about quality, production, and client satisfaction; and new technology are dramatically impacting the operating environment in organizations earth smart. Internally, financial limits, the problem to do more with less, cross-functional organizations, mergers and acquisitions and empowered employees all affects organizations' position to contend in the global software industry.

Outsourcing, automation, best practices, downsizing, globalization, repositioning, re-engineering, and all other such terms refer towards change to your work force. No matter how do you determine this change the fact is that challenge to the organization is inevitable; managing the requirements and hopes on the list of stakeholders including customer, employees, management and shareholders. Without balance, an organization risks an anxious work force which may yield declining productivity. The magnitude of the success of the organization depends how a business decides to motive, correspond and integrate change into the task force.

So we can say that change is a process not an event. In the corporate world, when any or all the factors such as; environment, technology, activity, composition or people are changed fully or partly, the phenomenon is named as change.

Whenever in the organization environment deriving causes and restraining pushes are not in equilibrium, there is a dependence on the change.

In circumstance of the AEGON UK there were many deriving causes that caused the background of change in AEGON UK. AEGON UK was although was bearing international repute but still it didn't possessed band consciousness by the name of AEGON in the United Kingdom. The beliefs of the financial services products that were for sale by AEGON UK or its competition were very difficult to comprehend by the actual customers. Life expectancy in britain has increased in the recent years so people can get to be retired for longer age and similarly many individual never think it suitable to plan about their retirement living properly, on the other hand there was a are based on the government to lessen dependency on the state in old age so there is a need to make a social awareness among the list of people for the advantages of having the financial loans sold by the AEGON UK to secure there future because good thing about these assets usually realised in old age. AEGON was not well recognized in the areas apart from pensions. Above explained reasons are the few of those that lead management to add change in the corporate composition and strategy of the AEGON UK Limited.

(B) CONSIDER THE IMPLICAITONS WITH REGARDS TO RESOURCES, FOR YOUR SELECTED Company IF IT FAILED TO RESPOND TO THE NECESSITY FOR STRATEGIC CHANGE.

Human and other Capacity Requirements - The individual capacity and skills necessary to put into action the strategy, current and potential sources of these resources. Also, other capacity needs required such as interior systems, management buildings, engaged associates and Network NOs and POs, and a supportive legal construction etc.

Financial Requirements - The funding required employing the suggested management strategy, current and potential sources of these funds, and the most critical resource and money gaps.

Risk Examination and Mitigation Strategy - What dangers exist and how they could be addressed.

Estimate of Project Life expectancy, Sustainability, and Exit Strategy - Just how long the strategy will stand put in place, after how long and why strategy will require modifications (if feasible to do so), and how it will ensure sustainability of the organization objective achievements.

'Strategic Change Management Plan' may only be considered complete when these components have been described, at least in wide-ranging terms. As the task steps into change execution, several of these components are then defined in greater detail and tested in reality.

TASK 3

DEVELOP SYSTEMS FOR UNDERSTANDING AND INVOLVING OTHERS IN THE PROCESS OF CHANGE

(A) IDENTIFY THE KEY STAKEHOLDERS IN YOUR CHOSEN Group AND PROPOSE SYSTEMS TO INVOLVE THOSE STAKEHOLDERS IN THE PLANNING OF CHANGE.

Stake holders are the people who are directly afflicted by the decisions associated with an entity. Stake holder may be interior (management, employees etc. ) or external (federal government, suppliers, banks, multimedia, shareholders etc). Different stake holders have different targets from the organization. In the process of change, stake holders can be involved in several ways suck as;

Involve them in problem resolving.

Keep them current of standing up towards corporate goals?

Take activities on reviews received by them?

Mobilize the correct resources at the right instant to recognize the execution plan?

In order to involve the stake holders to the process of change the new chief executive officer of AEGON completed the following actions;

Simplification of Financial Services; for the intended purpose of relating to the customers to the procedure of change the principle Executive Official of AEGON followed a customer centered methodology. The CEO simplified the ever sophisticated financial services in terms of the understanding and it was now made very easy to comprehend. Now the customers know that what they are investing into and what give back their investment is expected to yield at the end of the contract. Earlier customers will always be confused between the complex computations. Now the clients are happy because they don't really need any financial interpreter to understand the intricacies of the products provided by the AEGON.

Workforce Development; An-other very important stake holder of the organization is the employees'. These are actually the individuals who are practically in charge of to make the change process successful or not. Before putting into action the change the new CEO had taken the employees in self-assurance and brief them about the actual fact that what AEGON stands today and what AEGON needs to stand in the foreseeable future and he also talk about the makes reasoning this change. Next thing is to build up the new skilled necessary to put into action the change, the CEO released job rotation which involves progression in one job to the other job. Hence it provided specific employees' with a coherent profession journey. CEO also set up a Management Development Program in cooperation with a leading management school for working out of the workforce.

Creating Distinct Market Place; To refresh the brand identification of AEGON into the minds of people the CEO completed an exterior promotional marketing campaign to highlight the partnership between the locally famous Scottish Equitable and AEGON. Also the CEO spoke to the multimedia stating the reason why for the change and the way the change will be useful for the stakeholders.

(B) ANALYSE AND MEASURE THE BENEFITS AND DRAWBACKS OF THE SYSTEMS.

The systems mentioned above partly (A) were used to involve different people in to the process of change. The necessity because of this change was actually those external and internal pushes that were impacting the performance of the AEGON. The AEGON business was not going well anticipated to lots of key issues. Due to those issues the Chief Executive Officer was required to bring some changes in to the line of procedure and just how of functions by AEGON.

The CEO related this change program being completely customer focused and associated this whole change project with certain behaviours which are; think customer; embrace change, encourage excellence, function with integrity, decisive action, work together, learn and grow & associate and talk. The employees' were trained about these behaviours by a leading management institute.

Another reason for this technique of change associated with the problem that AEGON was facing was that the consumers weren't aware about the merchandise and services provided by AEGON. The clients had been lost about understanding their investment insurance plan. They had never been able to make evaluation on the list of services provided by AEGON neither about the possible results if they commit into them. As to the reaction of the fact the Chief Exec Official simplified the information of the product to the amount that each person could understand and compute the financial flows regarding the products made available from AEGON. This plan really did the trick and AEGON have a very positive response from its customers.

The other system that the Chief Executive Officer developed was to teach the workforce. First the employees' were tackled about the necessity for the change and the possible suggested changes and before employing the change it out is very essential that the workforce is competent enough to execute their duties into the new environment. For the purpose workforce was developed with spinning job information and Management Development Programme was conducted by a respected management college to train the employees about how to respond to the change.

Finally the Chief Executive Officer was required to react to the most vital reason behind the change that is the idea that AEGON was trading under various trade names in to the same physical location. This was the greatest reason because which AEGON had not taken a distinct market despite of such a historical record and multinational occurrence. The CEO for the purpose spoke to the media and addressed the whole situation, besides that many others actions were taken to establish a brand position, for occasion Scottish Equitable was modified to AEGON Scottish-Equitable representing the repute of the neighborhood company and the brand of AEGON similarly external promotional campaign was incorporated in to the system.

(C) EXPLAIN HOW DO YOU DEVELOP A CHANGE MANAGEMENT STRATEGY WITH THE KEY STAKEHOLDERS.

"Stakeholder management is critical to the success of bringing out change in the organization. The more folks are being affected by change, the more likely it is that your actions will impact people who have power and impact over work. These people could be strong followers of your work - or they could obstruct it.

Stakeholder Management Strategy can be an important self-control that successful people use to succeed support from others. It helps them ensure that their assignments succeed where others fail.

Stakeholder Research is the strategy used to identify the key people who have to be gained over. Afterward you use Stakeholder Planning to build the support that helps you succeed.

The great things about by using a stakeholder-based way are that

The opinions of the very most powerful stakeholders to form change execution at an early stage. Not only will this make it much more likely that they will support you, their type can also improve the quality of your project

Gaining support from powerful stakeholders can help you to gain more resources - this helps it be much more likely that your projects will be successful

By communicating with stakeholders early and frequently, you can ensure that they grasp what you are really doing and understand the benefits of assembling your project - this implies they can support you actively when necessary

By anticipating what people's a reaction to your project may be, and build into the plan the actions that will succeed people's support.

(D) WHAT WOULD BE YOUR STRATEGY FOR MANAGING RESISTANCE TO CHANGE IN THIS ORGANIZATION?

The researcher is rolling out following strategy for managing resistance to improve in the AEGON.

There will be a workflow process in order to attain results for shared benefits for employees and firm.

There will be an Specialist Process in order to direct behavior in the hobbies of the organization and its members.

There will be a Reward and Charges Process to cause people to react in ways required by the pursuits of the organization and its participants and to behave in ways making associated activity possible.

There is a Perpetuation Process to keep up, replenish, and make adequate the quantity and quality of social and natural resources employed by the organization and its own participants.

There must be an Recognition Process to build up a thought of the wholeness, uniqueness and need for the organization. This is usually accompanied by work to select and define plainly understood emotionally toned symbols, ideas, or other such factors which can only help individual individuals identify the uniqueness of the business as a whole, which automatically helps to identify the uniqueness of the business in the bigger environment where it is inlayed.

There will be a communication process to give the exchange of information, ideas, feelings and beliefs etc employed in all activities to the stake holders.

There must be an evaluation process which establishes requirements for and defines levels of utility and value for people, materials, ideas, and activities and which rates them and allocates them to these levels.

TASK 4

PLAN TO IMPLEMENT MODELS FOR ENSURING ONGOING CHANGE

(A) IDENTIFY APPROPRIATE MODELS FOR IMPLEMENTING CHANGE THAT SUITE YOUR CHOSEN ORGANIZAITON.

Model for change relates towards the overall strategy to combine change into the organizational environment. A style of change is usually executed into the next steps;

Access the need of change

Forming a powerful alliance

Creating a concept for change

Communicate the vision

Remove barriers

Incorporate the change into organization

The Chief Executive Officer executed the same model to include change into the organization. The CEO realised the necessity for the altered and he emerged to learn that company is not successful as compared to its challengers, the legislative limitation of price has reduced the profitability insufficient brand consciousness getting most detrimental and difficulty of the customers understanding the heart and soul of the services proposed by the AEGON were the factors that required an immediate change into the business at a huge scale. It was what AEGON was at this time. The CEO conducted a SWOT research of the organization.

After getting the situation the CEO made a decision to develop a new behavioural platform for the personnel which was known as 8 behaviours platform and also established managerial training for the labor force. The CEO further dealt with to the stakeholders of the organization to converse his perspective to them by simplifying the financial services, developing a workforce and getting a brand awareness campaign. The CEO also spoke to the advertising concerning this change process and the reason why for the change. Hence model executed by the CEO of AEGON UK caused extensive positive change to the business and gave it a new line of route towards the required goals and aims.

(B) HOW COULD YOU Put into action THIS MODEL IN CHOSEN Firm WHAT IMPROVEMENTS DO YOU EXPECT TO ACHIEVE BY IMPLEMENTING YOUR SELECTED MODEL AND HOW WOULD YOU MEASURE THESE?

The arrange for the change was carried out into the various steps such as discovery phase to analyze where the AEGON is right now, where it desires to be and what activities must meet the objectives set by the Chief Executive Officer to be the best long-term saving and safety business in to the UK. Discovery phase revealed the reasons for changes and weaknesses and advantages of the business. After the finding phase the next phase was to require the appropriate stake holders in to the process of change. The principle executive officer involved various stakeholders in several effective manner as mentioned recently. The CEO further redeveloped the organizational behavioural framework and arranged working out of the staff members.

The final results of the work made by the CEO were extremely stimulating and rewarding for the company. Prior to the change there is confusion one of the people about the identification of AEGON but after the heavy advertising of the brand AEGON with Scottish-Equitable created a more reliable image of the AEGON into the minds of the folks. Further compared to that the brand carried a new better and prestigious look as AEGON Scottish-Equitable. The behavior of the employees changed totally, now they react with more customer focused strategy. Now the employees are concern to provide useful and relevant services to their existing and prospective customers and the organization is always doing its level best to do what is actually important to their customers. By change into the composition of AEGON now the clients are being offered more options of services. AEGON launched new and ground-breaking products like the 5 forever annuity has facilitated to improve the way in which consumers can look at their pension income. AEGON providing the degrees of return guaranteed and being in charge of any hazards associated with doing so it provides more certainty about levels of income for the buyer.

In brief as the result of the change put into practice by the CEO of AEGON the company rebuilt its brand reputation, became more customer concentrated, started to provide more progressive products and became more popular among the consumers and ultimately the business has grown to a gigantic amount.

In order to be more customers' targeted the new CEO decided to develop a new organizational behaviour framework to aid the brand principles of AEGON. Behavioural framework is the structured pre-defined rules of behaviour the way the individuals working within the organization are suppose to react among themselves also to the people outside the organization. Existence of the behavioural platform gives surge to the similar behavioural and honest values of all individuals in any way levels with in the organizational. Behavioural construction developed by the AEGON was mainly centering 8 behavioural prices which can be;

  • THINK CUSTOMER;
  • EMBRACE CHANGE;
  • ENCOURAGE EXCELLENCE;
  • ACT WITH INTEGRITY;
  • DECISIVE ACTIONS;
  • WORK TOGETHER;
  • LEARN & GROW;
  • RELATE & COMMUNICATE

As the part of their strategy AEGON also undertook an audit to check out the two aspects that have been the inner position of the company and how AEGON was positioned internally into the market respectively. The audit discovered that AEGON was tightly positioned within the marketplace. Its labor force was known because of their considerable expertise, advancement and clearness of communication. The exterior audit also helped to determine where AEGON was located in relation to its competition. This audit provided an essential vision to the decisions that were needed to initiate the change process.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)