There are extensive goals of a well planned change. Basically the goals are directed to increase the capability of the company to adjust to changes taking place in the environment. Change in employee's habit is expected and these changes to lead to improvement in organizational efficiency and efficiency.
In this project we will discuss a case study on the proper change management in the AEGON Company. As we've discussed in the training presentation the various aspects and reasons of proper change management and the process of proper change management involves developing an progressive vision for where the company must be, and then expanding an equally impressive path for attaining the goal. This can only be achieved through the blended effort of all company, its employees and the stakeholders.
Develop systems to involve stakeholders in the planning of change and create a change management strategy with stakeholders.
Evaluation of the systems used to involve stakeholders in the look of change.
Explanation of what systems and processes would need to be/have been developed to ensure participation of the stakeholders in the change.
Strategy creation for taking care of level of resistance to change
Review of the potency of management actions to triumph over any identified cases of resistance
Discussion of the most important features in the successful implementation of organizational change, attracting upon at least two organizational models
Plan to implement a model for change and develop appropriate steps to monitor improvement.
With the changing potential clients of customers, organizations persistently require to adapt to stay competitive. Managers might look for situations which are common to them when experience stresses for change. It includes civilizing the practices where they function, little by little. This is incremental change. But improving gradually may well not be adequate. The necessity is to adapt to all of the main changes in the surroundings. Lack of it results in strategic drift. Whenever a company undergoes strategic drift, it generally does not make hard and major decisions to deal effectively with all of the changes in its business environment. Professionals within the organization have to accept the change completely to let alone tactical drift. It results a responsive organisation. (AEGON-Embracing and seeking change, n. d. )
AEGON Group is one of the world's largest life insurance and pensions companies. AEGON owns pensions, life insurance, advantage management and adviser businesses in the united kingdom.
The AEGON Group has 27, 000 employees and over 25 million customers worldwide. Its major markets are in america and Netherlands. Since 1994, the UK is becoming another major and increasingly important market. In 1994 AEGON bought a sizable stake in Scottish Equitable. Scottish Equitable was a strong brand with a traditions that returned to the 1830s. Since then AEGON's UK business is continuing to grow both naturally and by acquiring other businesses. As almost all of the purchased companies held their existing identities, knowing of AEGON in the UK continued to be relatively low. AEGON became aware that such low degrees of awareness could impact on its ability to attain its ambitions. Therefore, it had a need to combine the global power of its parent with the knowledge and reputation of the domestic company brands, like Scottish Equitable, that made up AEGON in the UK. (AEGON-Embracing and pursuing change, n. d. )
In this assignment we'll discuss the success that recognizing and doing change has brought to AEGON in the united kingdom. This change is supporting AEGON move towards its goal to become 'the best long-term personal savings and cover business within the UK'.
Kurt Lewin's change model
In early on 1950s Kurt Lewin a psychologist developed a style of change management. He described the freeze model of change which implies that change involves a shift from one still condition by means of a state of activity to a different still condition. This involves a three-stage procedure for handling change: unfreezing, changing and re-freezing.
Source: http://www. strategies-for-managing-change. com/kurt-lewin. html
Stage 1: Unfreezing
This stage implies getting ready to change. It will involve getting to a spot of account that change is compulsory and getting ready to alter from our current comfort zone. (Kurt Lewin change management model, n. d. ).
Stage 2: Change - or Transition
The second level of transition is recognized as change. Move is the inner faction or voyage we make in response to an alteration. This occurs as we acknowledge and make the changes that are needed. (Kurt Lewin change management model, n. d. ).
Stage 3: Freezing (or Refreezing)
The third level is freezing, while many people make reference to it as 'refreezing'. As the name advises this stage is about instituting stableness when the changes have been made. The changes are recognized and become norms. People form new contacts and be contented with the routines. This will surely take some time. (Kurt Lewin change management model, n. d. ).
The 8 steps of John Kotter's change model
Each stage of Kotter's change model acknowledges a key principle discovered by him linking to people's response and method of change, and in which people see, feel and then change. For change that occurs, it can help if an sufficient number of men and women within an organisation want it. By developing a sense of urgency around the necessity for change it helps management to start out the initial creativity to get things moving. (John Kotter's guiding concepts for leading change, n. d. ).
Source: http://www. strategies-for-managing-change. com/john-kotter. html
According to John Kotter the major obstacle before leadership in a change process is merely getting visitors to change their patterns. People change their behavior when they are encouraged to take action, and that can be done when you speak to their emotions. " (John Kotter's guiding ideas for leading change, n. d. ).
AEGON UK had the following driving a vehicle causes for organizational change.
Financial restructuring in the United Kingdom.
Growth in population and changes in demographic features.
Cultural diversification in the UK.
Changes in public dimensions of the United Kingdom.
Evolution of political orientation and plans.
Increase in the local purchasing electricity.
Institutional and regulations neglect about the financial products.
High competitiveness and consequent difficulties.
Deficient Management procedures.
Inefficiency in processes
The the most suitable change model fitting to AEGON UK is going to be Kotter's Eight Step Change Model. Since it fully prepares the employees of the business before even the eye-sight is established that will eventually helps in the change over time. There are some down sides as well to this model. This model is mostly suitable for the firms due to its ease and applicablity as considerable change is required for the divisions. This can also accomplish in the changeover because the department has a long history much like remaining company and folks aren't as set in the ways, as they might be if the section had been around much longer. (Strategic change management, n. d. ).
AEGON UK proper planning implies planning for the long-term. Enough time framework associated with this type of planning is from 3 to 5 years in to the future. Due to this timeframe, there are several difficulties associated with long-range planning. Included in these are: creating an idea that is breakthrough in its orientation rather than "more of the same, " getting all stakeholders to invest in the organization's strategies and to follow through on implementation of critical activities, and reducing cycle time in the look process. 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 inside a shortened timeframe. The researcher will favor to adopt Large Group Interventions Strategy to address the proposed change in the chosen organization AEGON. (Strategic change management, n. d. ).
In case of the AEGON UK there were many deriving makes that brought on the backdrop of change in AEGON UK. AEGON UK was although was bearing international repute but still it didn't possessed band recognition by the name of AEGON in the United Kingdom. The philosophy of the financial services products which were for sale by AEGON UK or its competitors were very difficult to understand by the actual customers. Life expectancy in the United Kingdom has increased in the modern times so people can get to be retired for much longer age and likewise many individual never think it suitable to plan about their retirement life properly, on the other hand there is a are based on the government to lessen dependency on the state in later years so there is a need to make a social awareness among the people for the benefits associated with having the financial loans sold by the AEGON UK to secure their future because profit of these investment funds usually came to the realization in later years. AEGON was not well recognized in the areas apart from pensions. Above stated reasons will be the few of those that lead management to expose change in the organization composition and strategy of the AEGON UK Limited. (Strategic change management, n. d. ).
Involve them in problem solving.
Keep them current of located towards commercial objectives
Take activities on feedback received by them
Mobilize the correct resources at the right second to recognize the execution plan (Strategic change management, n. d. ).
Involvement of stake holders to the procedure of change was done by the new chief executive officer of AEGON who carried out the following actions;
Simplification of Financial Services
The Chief Executive Officer of AEGON used a customer focused way. The CEO simplified the intricate financial services in terms of the understanding and it was now made very simple to comprehend.
The clients which know that what they are trading into and what investment they reunite at the end of the agreement. To date back customers have always been disturbed doing complicated calculations. Now the clients are happy because they don't really need any financial interpreter to comprehend the intricacies of the products offered by the AEGON. (Strategic change management, n. d. ).
The most significant stake holder of the organization is the employees'. They are the people who are virtually liable make the change process successful. New CEO had taken the employees in confidence and informed them about the fact that what AEGON stands today and what AEGON needs to stand in the foreseeable future. He discussed the factors behind this change. The CEO created job rotation that involves prospects in one job to the other job. Hence it provided individual employees' with a profession avenue. CEO also set up a Management Development Program in cooperation with a respected management college for working out of the labor force. (Strategic change management, n. d. ).
Creating Distinct Market Place
To let revisit the brand personal information of AEGON in to the minds of people, the CEO completed an external promotional advertising campaign to highlight the partnership between the locally famous Scottish Equitable and AEGON. The CEO spoke to the media stating the reasons for the change and the way the change will be good for the stakeholders. (Strategic change management, n. d. ).
As we know that the stakeholders are critical to the success of initiating change in the business. Stakeholder Management Strategy is an important self-discipline that successful people use to win support from others. Stakeholder Examination is the technique used to identify the key people who have to be triumphed in over. Stakeholder Planning is performed to create the support that helps corporation to succeed. (Strategic change management, n. d. ).
The great things about using a stakeholder-based approach
The viewpoints of the most strong stakeholders to shape change execution at an early on stage. They will support the business as well as their source can also increase the quality of the project
Getting support from strong stakeholders can enable you to gain more resources You will discover more chance to accomplish strategic goals efficiently.
By communicating with stakeholders early, you can ensure that they fully understand what you are really doing and understand the benefits associated with your aim. By this they'll throughout support you positively.
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. (Strategic change management, n. d. ).
Strategy for handling resistance to improve in the organization
Following strategies can be implemented for managing amount of resistance to improve in the AEGON.
There is a workflow process to be able to achieve results for common benefits for employees and company.
There will be an Expert Process in order to direct action in the pursuits of the organization and its individuals.
There will be a Reward and Charges Process to stimulate people to react in away required by the interests of the organization and its individuals and / or to behave in a way making associated activity possible.
There will be a Perpetuation Process to maintain, replenish, and make sufficient the number and quality of interpersonal and natural resources employed by the organization and its participants.
There must be an Id Process to build up an idea of the wholeness, uniqueness and significance of the organization.
You will see a communication process to provide for the exchange of information, ideas, feelings and beliefs etc employed in all activities to the stakeholders.
There should be an analysis process which establishes conditions for and defines levels of power and value for folks, materials, ideas, and activities and which rates them and allocates these to these levels. (Strategic change management, n. d. ).
Model for implementing change in the organization
Model for change signifies towards the overall strategy to integrate become the organizational culture. Model of change is usually integrated into the pursuing steps;
Access the necessity of change
Forming a robust alliance
Creating a concept for change
Communicate the vision
Incorporate the change into company. (Strategic change management, n. d. ).
The CEO of AEGON applied the same model to inculcate change into the business. The CEO realized the necessity for change and he deducted that the business is not doing well much like its competition.
The legislative limitation of price decreased the profitability
Lack of brand awareness getting worst
And difficulty of the customers understanding the target of the services made available from AEGON
The above mentioned were the factors that required an instantaneous change into the organization at a sizable scale. The CEO conducted a SWOT analysis of the business and made a decision to create a new behavioral framework for the personnel that was known as 8 behaviors construction and also organized managerial training for the workforce. He further dealt with the stakeholders of the business to talk his perspective to them by simplifying the financial services, developing a workforce and getting a brand awareness campaign. (Strategic change management, n. d. ).
The CEO also communicated to the mass media about this change process and the reasons for change. Hence model carried out by the CEO of AEGON UK helped bring about evident positive change to the organization and provided it a fresh line of way towards the desired goals and aims. (Strategic change management, n. d. ).
Implementation of the model in the corporation, expected advancements and appropriate procedures to keep an eye on progress
The arrange for the change was integrated into the different stages like finding phase to analyze where in fact the AEGON is right now, where it needs to be and what activities must meet the aims set by the head to become the best long-term cutting down and cover business into the UK. First period revealed the reason why for changes and weaknesses and strengths of the business. After the breakthrough phase the next step was to entail the correct stake holders into the process of change. The head of the AEGON involved various stakeholders in different effective manner as stated earlier. The CEO further redeveloped the organizational behavioral construction and arranged the training of the staff members. (Strategic change management, n. d. ).
The final results of the initiatives made by the CEO were extremely cheering and fulfilling for the business. Before the change there was confusion among the people about the identification of AEGON but after the strong promotion of the brand AEGON with Scottish-Equitable created a more reliable image of the AEGON into the minds of the people. In addition the brand carried a new better and esteemed look as AEGON Scottish-Equitable. (Strategic change management, n. d. ).
The habit of the employees changed altogether. They respond with more customer oriented approach. Now the employees are worried to provide beneficial services to existing and potential customers and the business is obviously doing its level better to do what is absolutely important to their customers. (Strategic change management, n. d. ).
AEGON providing the levels of return guaranteed and being responsible for any risks associated with doing this it reflects more likelihood about levels of income for the customers. Due to the change applied by the CEO of AEGON, the company reconstructed its brand reputation, became more customer oriented, began to provide more innovative services and became more popular amidst the consumers and lastly the business has grown to a huge amount. The CEO organized to develop a fresh organizational behavior construction to align the brand prices of AEGON. (Strategic change management, n. d. ).
Work with integrity
Learn and grow
Relate and speak. (AEGON-Embracing and going after change, n. d. )
There is nothing everlasting except change. It really is continuous. The procedure of change can be an expedition. Business organizations will be influenced by exterior factors. AEGON taken care of immediately these factors by simplifying, clarifying and building up its brand in the united kingdom. As organizations change, their patterns of tendencies and business culture flourish. For AEGON, this is a routine where the business uses its knowledge to learn from its experiences. It has helped AEGON as an company to move favorably towards obtaining its full probable and stay competitive in a steadily difficult market. (AEGON-Embracing and pursuing change, n. d. )
AEGON acknowledged a need to provide itself a greater market existence. The change has made the company much more customer focused. As a result it works more effectively.
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