Kotter developed a change management model for organizational
leaders and managers to undertake change. The following diagram summarises
Kotter’s model:
Figure 1:
Kotters 8 Step model
Step 1 - Establish a sense of urgency: some of the areas must be urgently changed to make them more efficient and valuable. At ASOS Plc, the areas that require urgent changes are exploring the new organizational structures, entering the new market spaces and opportunities, and managing the sales force to efficiently meet the targets.
Step 2 - Form a powerful guiding coalition: new changes are mostly handled by the new management who are less trustable than the existing employees. ASOS Managers need to tap into the talent of the managers already working and further integrate them into the change. To properly manage the change it is necessary to understand the urgency of change.
Step 3 - Create a vision: When ASOS is implementing the change it needs to communicate the vision of the company employees.
Step 4 - Communicating the vision: ASOS follows a clear cycle of
communicating the required outcomes of the changes at each level.
Step 5 -Empower others to act on the vision: once the vision is communicated everyone should be empowered and communicated regarding the decisions and changes management.
Step 6 - Plan for and create short-term wins: initially change will bring negative results because of the shift from the status quo, hence everyone will be demotivated short-term goals should be made which will lead to long-term goals and higher productivity.
Step 7 - Consolidate improvements and produce more change: ASOS consolidates all of the improvements and further plans the shorter changes.
Step 8 - Institutionalize new approaches: once the improvements are consolidated, now it’s time to constitutionalize change and process.
The
influence of culture on management decisions during the transition (Edgar Schein)
Figure 2:
Edgar Schein Culture model
Basic assumptions: ASOS believes that there are certain values of the employees which are hidden hence they can’t be measured but they still affect the culture. Because there are certain beliefs of everyone that he/she won’t like to disclose hence this also affects the culture of the organization. ASOS believes they can least likely affect the culture if employee loyalty and attachment are created.
Espoused values: ASOS claims that its employee values are highly aligned with the culture of the organization because the organization recruits the employees according to the set criteria of the culture of the organization. Employee values play a great role in the implementation of a strong culture hence proper steps should be followed to create a good fit.
Artifacts: At the first level, the cultural values and characteristics of the ASOS are highly adaptable because they have a friendly and cooperative environment. This encourages employees to attachment and hard work. Furthermore, the organization follows the proper dress code and respect and equality for all the employees are prioritized.
Effectiveness of operational functions (TQM)
Total quality management focuses on the overall quality of the management. ASOS is almost to reach the overall efficiency of the TQM approach because they have excelled in fashion clothing and other related accessories. Furthermore, ASOS is providing quality cloth at a fair price to the other high street stores.
Stakeholder landscape
Employees (internal): ASOS launches different programs regarding its various stakeholders like diversity and inclusion-related programs in terms of employees, and dynamic working policies intended for the betterment of both employees and the organization.
Investor (external): investor relations are made
stronger and enlarged continuously.
Customer: (external) customers are provided the higher value according to their preferred needs further they also use the customized approach regarding different customers in the different geographical locations.
Government (external): various government-related policies
are followed like compliance with the government rules and policies and the set
taxes are also paid.
Figure 3: stakeholder
analysis Power and Influence grid
Most of the
ASOS have been influenced by the government and investors and the least of them
are influenced by the employees and consumers.
Process of stakeholder mapping
Identify
Stakeholders: First, internal and external stakeholders have been identified
Analyse
Stakeholders: then the most influential and least influential stakeholders were
analyzed
Map
Stakeholders: then they were positioned in their particular places on the
positioning map
Prioritize Stakeholders: prioritized stakeholders are investors and consumers