Organization Effectiveness and Change Management

Question: Discuss about the Organization Effectiveness and Change Management. Answer: Introduction From the given scenario it is seen that the organization is currently having troubles in two sections. First of all their sales are decreasing and secondly their operating costs are going up. In this situation it is difficult to reduce operating cost. According to Maroofi et al. (2017), reducing operating can increase the profitability of an organization; however, only if sales price and number of sales remain constant. Sales are already down for the organization; therefore if cost reduction result in a lowering of the quality of the company products, then the company will be affected further. As a result in this report, a strategy is suggested that can cut cost without affecting the quality and can improve overall sales for the organization. Strategy to improve sales Change management In the current situation it is important to implement a change in the organization. However, it is not possible to flip a switch an expect it to happen. Slowly but steadily the departmental structure of sales team must be changed. Establishing customer personas It is time to learn again the problems and concerns of the customers. It is important to find out from where they gather information about products and services. Surveys must be conducted in order to find out personal goals and demands of the consumers. According to Balassa (2014), these are known as personas. Personas of the customers will become valuable for the sales team as they will understand how to attract potential customers. It will improve the overall sales of the organization. Redevelop sales and marketing with customer centricity Once all the information related to consumers are gathered, sales team must work back from the perspective of those customers. The organization will have to adapt a customer-based go to marketing approach that far too few companies execute. From a recent Customer Engagement Report provided by e-Consultancy with CScape, it is found that only 45% companies have implemented a customer engagement strategy (Maroofi et al 2017). Therefore, doing this will help the organization to gain a competitive edge over its rivals. Mechanize sales processes with business software system One redevelopment method is in place, management must look for software and tools to mechanize new methods. Software to figure out triggering events like lead management can be considered that includes Aprimo, Marketo, Eloqua and Pardot (Kondalkar 2013). Strategy to cut operating cost Embracing technology A number of online systems and software programs are there that can reduce operating cost (Hayes 2014). Accounting, website hosting, payroll and more have all benefited from programs and services that make it easier to administer facets of business. Outsourcing The organization can shift its additional responsibilities such as packing and delivering to another business or consultant. However, according to Balassa (2014), one area that will be mostly benefited from outsourcing would be advertising and marketing. It is evident that the amount of time and money that is spend on advertisement and marketing does correlate to the return on speculation. Go green Within the office space, it is necessary to go green as much as possible. Replacing regular light bulbs with dense fluorescent lighting or reducing heating and cooling costs by enhancing insulation can cut back on the amount of physical waste. Employees must be motivated to communicate through email or other electronics means (Maroofi et al. 2017). It is expected that this will reduce the cost related to the monthly office supply order. Paying invoice It is found that most of the vendors offer a discount for the companies that pay their invoice early (Bradley 2016). Even a savings of two or three percent can really help the organization to deal with the problems related to operating cost. Figuring out inefficiencies Training programs must be implemented in the organization for the employees. It will help the management of the organization to identify inefficiencies. Once the inefficiencies are identified, it will help the organization to reduce or eliminate them which will not only save money and time, but also will improve productivity. Recommendation It is clear that in order to deal with the current problems of the organization, downsize cannot be a solution. All the solutions that are mentioned above can only be implemented if a workplace restructure process takes place (Hechanova and Cementina 2013). It is recommended that a workplace restructure process must be implanted as a form of change management. Recommendations related to this problem are mentioned below. Planning for restructure It is important to understand the rationale for the restructure, the new model of the organization and the primary stakeholders who will be affected. Over the years, it is seen that most of the organization fail to achieve their desired KPIs that they set for their restructure (Balassa 2014). It happens mostly because companies fail to manage human impact of change. Therefore before setting a goal, it is important to recognize the measurements of success relevant to the company. It will help to drive the creating of a successful restructuring plan. Skills required for restructuring process Employees will receive advices and assistance from human resource personnel of the organization (Gollenia 2016). Therefore, it is highly important that they have a clear understanding of the role they play in leading and assisting the human impacts of change. Issues of employees for this restructure process The issues that the employees will be facing at the time of restructuring must be identified by the HR team. It will help them to determine the support services that will be required to deal with those issues. Some support services that must be implemented at the initial stage of the restructuring process are training for the management team, stress management support to the existing employees and outplacement support for employees who are willing to quit (Hornstein 2015). Effective communication about the change method Once the entire planning process is determined and the management understands how the change will impact key stakeholders, then it will be important to promote transparent interaction. This interaction process must continue throughout the restructuring process. Conclusion In the end, it can be said that downsizing will not be a proper idea in the current scenario as it will carry a negative message for the employees. After analyzing the situation and exploring several ideas that suit the current scenario of the organization, the best option would be a restructure process. Through the restructure process, the organization will be able to implement all the mentioned strategies in the workplace which will enhance the sales and reduce the operating cost. References Balassa, B., 2014. Development Strategies'.International Economics and Development: Essays in Honor of Ral Prebisch, p.159. Bradley, G., 2016.Benefit Realisation Management: A practical guide to achieving benefits through change. CRC Press.. Gollenia, L.A., 2016.Business Transformation Management Methodology. Routledge. Hayes, J., 2014.The theory and practice of change management. Palgrave Macmillan. Hechanova, R.M. and Cementina-Olpoc, R., 2013. Transformational leadership, change management, and commitment to change: A comparison of academic and business organizations.The Asia-Pacific Education Researcher,22(1), pp.11-19. Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity.International Journal of Project Management,33(2), pp.291-298. Kondalkar, V.G., 2013.Organization effectiveness and change management. PHI Learning Pvt. Ltd. Maroofi, F., Ardalan, A.G. and Tabarzadi, J., 2017. The Effect of Sales Strategies in the Financial Performance of Insurance Companies.International Journal of Asian Social Science,7(2), pp.150-160.