1. Strategy and Change ASSIGNMENT TWO CHANGE PLAN

2. 1 Executive summary This report will assist in the formation of Tasti as a high profile brand. This will be done by assessing the current situation using eight contextual features; time, scope preservation, diversity, capability, capacity, readiness and power. The management style, change design and change target will also be considered. The execution of the strategy will be evaluated in terms of what factors will influence the accomplishment of the strategy. Lastly, the implementation process itself will be outlined.

3. 2 Table of Contents Executive summary.........................................................................................................................1 Executive summary..........................................................................Error! Bookmark not defined. Strategy formulation.......................................................................................................................4 Time.................................................................................................................................................4 Time and design choices .............................................................................................................4 Scope...............................................................................................................................................4 Scope and design choices............................................................................................................5 Preservation....................................................................................................................................5 Preservation and design choices.................................................................................................5 Diversity ..........................................................................................................................................6 Diversity and design choices .......................................................................................................7 Capability.........................................................................................................................................7 Capability and design choices .....................................................................................................7 Capacity...........................................................................................................................................8 Capacity and design choice .........................................................................................................8 Readiness ........................................................................................................................................9 Readiness and design choices ...................................................................................................10 Power ............................................................................................................................................10 Power and design choices.........................................................................................................10 Strategy execution ........................................................................................................................11 Communication.............................................................................................................................11 Resistance .....................................................................................................................................11 Education ......................................................................................................................................12 Strategy Implementation..............................................................................................................12 Recruitment and selection............................................................................................................12

4. 3 Mobilising- Communicating a vision.............................................................................................13 Empowering Action.......................................................................................................................13 Instilling Change............................................................................................................................13 Creating continuity........................................................................................................................14 Appendix .......................................................................................................................................14 1.1 Cultural web of Tasti ...........................................................................................................14 1.2 Future Organisation.............................................................................................................14 1.3 Stakeholders communication requirement .......................................................................15 1.4 Dynamic capabilities............................................................................................................15 1.5 Assets...................................................................................................................................16 1.6 Change summary.................................................................................................................17 References.....................................................................................................................................18

5. 4 Strategy formulation The strategy chosen to build Tastis profile is a brand building strategy. A key issue outlined in the strategic analysis is that Tasti is currently not considered a high profile brand. Consumers are knowledgeable about particular products rather than the brand (Har lee, 2010). A change action team specialising in Marketing will be developed with a change agent managing this team (Balogyn & Hailey, 2004). This will essentially be a form of functional delegation. Marketing outputs will change in order to enhance the value and perception of the brand. Time The strategic analysis recognises that Tasti is in a favourable position and has illimitable time to implement change initiatives (personal communication, 2012). Time and design choices This will result in a reconstruction followed by an evolutionary transition. The reconstruction portion will be limited to members involved. This will be implemented using participation style of management (Balogyn & Hailey, 2004). Senior management can create a particular change path which will allow those involved time to adjust. The need for change is not currently at the forefront, so, this will allow Tasti to use a participation approach to gain acknowledgment of the need for change and encourage participants acceptance of the concept (Balogyn & Hailey, 2004). The luxury of time will enable the change action team to be screened for proficiency and capability with time to improve and train personnel (Balogyn & Hailey, 2004). Scope Scope determines how much change is necessary. The two parts of scope are the depth required and the extent of change across the company (Balogyn & Hailey, 2004).

6. 5 The scope of change necessary is more depth intensive, predominantly in the marketing division. This will consist of a mixture of an adaption and evolutionary approach. The target of change is the marketing output and value of the organisation in the eyes of both the consumers and staff (Balogyn & Hailey, 2004). Scope and design choices The change path will be a reconstruction with regards to the development of the change group and evolutionary in regards to the amount of time allowing for a gradual implementation which will ultimately result in a proficient strategic marketing team (Balogyn & Hailey, 2004). Preservation Tasti endowed many assets which must remain present. Both tangible and intangible assets must be considered, please see appendix 1.3 for details. The assets which must be preserved are shown in italics in the appendix. The three assets which need to be changed are intangible assets; they are customer loyalty, and market share in New Zealand and Australia. The current progress made in these three departments must be preserved, but improvement in these areas is expected and desirable (Har lee, 2010). An important asset discovered is the flat management structure. It has allowed Tasti to make decisions quickly and react to market changes efficiently (Har lee, 2010). This feature has been discovered to be an important competitive advantage (personal communication, 2012). The knowledge and skills acquired by Tasti staff are also a significant. In particular the multi- disciplined senior management team has been identified to be a core competency of Tasti (Har lee, 2010). Preservation and design choices The preservation of particular skill sets of certain staff members have been described as desirable preservation choices and therefore a collaborative style to change has been identified as a safer route as this emphasises the importance of these individuals (Balogyn & Hailey, 2004).

7. 6 Diversity The degree of diversity amongst the staff that will be affected by the change is essential to understand. The organisation as a whole is heterogeneous; however the group being targeted is likely to be more homogeneous with heterogeneous elements (personal communication, 2012). The extent of uniformity within Tasti is low. Different national cultures, subcultures and professional groups exist (personal communication, 2012). The change action team and Mr Cook himself will be the main focus of this assessment of diversity. Within this group, there will certainly be professional diversity between Mr Cook and this team. It can be expected that the group will have different national cultures and subcultures will exist (Statt, 2004). The change agent will ultimately be responsible for deciding on the levels of diversity and the extent of diversity will ultimately be governed by the intended outcomes of this change procedure (Balogyn & Hailey, 2004). The level of diversity will ultimately affect the level of loyalty amongst the team. There must be a shared vision and a shared direction amongst the change group. As Cook will be sourcing from within the company, the extent to which staff identifies with their peer group over the change leader may affect the outcomes (Balogyn & Hailey, 2004). A recent trend of declining loyalty towards corporations and senior management could negatively affect the ability for the team to work cohesively with Mr Cook. Mr Cook will need to ensure there are no assumptions made about the level of loyalty felt by staff, as it is likely that this will be overestimated. The recent increase in production and internationalisation may have made units of the company become more autonomous and feel less connected with the senior management team (Balogyn & Hailey, 2004).

8. 7 Diversity and design choices If the level of diversity is disruptive, a target of value-led change will be appropriate. The values statement can be installed throughout the operations. This value statement will need to voice respect and acceptance of other cultures and religion (Balogyn & Hailey, 2004). The level of professional diversity amounts the group will call for an initiative which will enhance the ownership of change. This will be a change style that advocates collaboration amongst group members (Balogyn & Hailey, 2004). Capability Tasti has shown a capacity for operational change with the introduction of its modern facilities and production lines. The company has also claimed to have a high capacity for change at senior management level, having a multi-disciplined skill set and a shared attitude that embraces change (Har lee, 2010). The staff have shown an ability to handle organisational transition with the smooth transition of new operational procedures and a high capability of change with their increased proficiency resulting from active participation in numeracy and literacy programs (Workbase, 2009). The organisation itself is also capable of change. This has been shown by the successful integration of Tasti products into the Australian market. It has been acknowledged that change was necessary to be accepted by the Australian market. It is also important to note that Tasti has successfully maintained its market share in this new market which emphasised that this company is capable of maintaining change on a continual basis in response to an environmental change (Har lee, 2010). Capability and design choices The high capacity for change amongst this organisation influences the change path. Tasti has exemplified a capability for change which would suit transformational change and evolutionary change (Balogyn & Hailey, 2004).

9. 8 A change style of collaboration will require the ability to facilitate others. The change roles will therefore involve the change leader, as Mr Cook will need to compensate for any lack of capacity for change amongst the marketing team. This is due to the fact that, although the organisation has shown a high capacity for change, the capacity for change must not be overestimated (Balogyn & Hailey, 2004). Capacity Capacity is the amount of resources that the organisation can invest in the change plan. This is divided into three sections; cash time and people (Balogyn & Hailey, 2004). Management development of the change team can be expensive, as can marketing campaigns. In order to ensure that Tasti does not make the common mistake of mimicking larger companies with more financial backing, Tasti will need to be tactful about the design of the marketing campaign (Cravens & Piercy, 2009). Twelve months to will be the given timeframe to change. The change manager will be expected to perform change initiatives whilst continuing to deliver normal performance targets. In order to ensure that the change targets are met by this time, it is realistic to expect Mr Cook to remove certain responsibilities for a limited time to ensure the change targets are met (Balogyn & Hailey, 2004). Tasti has sufficient quantity of employees to select from, however, the commitment to change will need to increase and this will be dependent on the change leaders capabilities (Balogyn & Hailey, 2004). Capacity and design choice The change path will be dependent of the capacity of management, which has already been identified as proficient and capable and therefore this area will require a smaller amount of investment in terms of financial resources (Balogyn & Hailey, 2004).

10. 9 The value-led change involves heavy investment, yet the reconstruction of this plan has small width, which will save financial resources. Yet, this value-led change is needed to achieve the target (Balogyn & Hailey, 2004). The use of Mr Cooks time will be costly, as he has a high level of involvement in the business. For this reason the change team will need to be proficient at working autonomously. His presence will be necessary in the training and development portion and as a change leader. However, a certain level of communication and physical presence must be maintained to ensure the target will be met (Hubbard & Beamish, 2011). Mr Cook has been chosen for this role because he holds the position of Marketing Director; therefore this team will be an imperative part of his work. He has also been identified as having the time to devote to the leadership of this change process because this particular target is essentially his professional responsibility (personal communication, 2012). Readiness At this stage the level of readiness is reasonable. Public Relations initiatives have indicated that Tasti is planning to initiate a campaign to make Tasti a more high profile brand. The level of public awareness and the flat level management with open communication between levels would indicate that staffs have been informed that this change plan is being arranged (Har lee, 2010). The commitment to change is high at the management level. However, there is no evidence that staff have been expressing a high level of commitment to this particular change plan (personal communication, 2012). This low commitment to change may stem from staff feeling ambivalent about the change. Employees may fear the concept of change or fear that it may be disadvantageous for them (Statt, 2004). Tastis own success may be its downfall in relation to being able to demonstrate the need for change. According to the Har Lee (2010) article described increasing profits and proficiency and

11. 10 the Workplace (2011) article described a working environment which boasted consistency and stability. Readiness and design choices The style of change can assist in enhancing a more change ready nature amongst affected staff. The participative collaboration movement should be coordinated in a top-down fashion starting with the change agent. The change role will also be affected; the change agent will need to demonstrate an absolute belief and commitment to change. The staff need to visibly see this in action in the hope this will encourage the staff to embrace and believe in the change themselves (Balogyn & Hailey, 2004). Power Power examines where the power lies within a company. It identifies the major stakeholders and sources of power and whether there will be autonomy of the change agent and others involved in the change plan (Balogyn & Hailey, 2004). The change agent in this situation is restricted by one main individual. This business is privately owned by Simon Hall, executive Chairman at Tasti Products Ltd. (personal communication, 2012). Cook must ensure he has the full commitment of this key stakeholder before any plan can be mobilised (Balogyn & Hailey, 2004). Power and design choices In regards to roles; the amount of power Cook has as a change agent can be both beneficial and disadvantageous. To be effective, a change leader needs to be a reasonably powerful individual to provide the plan with powerful backing (Hubbard & Beamish, 2011).

12. 11 Levers can be used to deal with power; breaking and reforming formal and informal power structures can help to create a change group that will buy-into the change quicker (Balogyn & Hailey, 2004). Strategy execution Communication The change plan must be communicated to all stakeholders involved (Balogyn & Hailey, 2004). The change agent will be the communicator of this message. Message repetition will be used to ensure there are no differences in the understanding of the information. The stakeholder groups affected need to be aware of the changes and must guide them to be committed to the change plan (Statt, 2004). The areas highlighted in appendix 1.3 Stakeholders communication requirement, represent areas where communication is lacking (personal communication, 2012). The variety of channels used depends on the level of involvement in the program. The message content will also vary between stakeholder groups (Balogyn & Hailey, 2004). Resistance The main barrier to change is likely to come from the main organisational stakeholder, Simon Hall. However, in this case the main stakeholder is committed to the vision (Har lee, 2010). The

13. 12 main barrier expected is if the change group show signs of resistance due to poor follow- through or no consequence management. In order to deal with this resistance the change agent will need to facilitate and support the group through parcticiaption and involvement to ensure the group is educated and informed about their roles (Balogyn & Hailey, 2004). Education Education is useful when you need to create understanding amougst employees about why the change is needed, how it will effect them and to prepare them by giving them the tools they need to accomplish the task. The task group created will need the most education. Interventions can help to encourage change amounst people and to motivate individuals towards mobilisation. Presentations and a change program to illustrate expected changes can be used to help illustrate the need for this new strategy (Balogyn & Hailey, 2004). Strategy Implementation Recruitment and selection A task group must be formed and recruited from within the company. To ensure the appropriate staff are selected through recuriement process manageged by Human Resources. HR will be required to advertise the vacanicies using a selection process. Candidtates will be sorted, interviewed and fill out profile questionnaies to identify the final change group (Damian & Kirkley, 2011).

14. 13 Mobilising- Communicating a vision The change agent will be responsible for motivation management in order to create momentum. This involves announcing certain information to generate motivation. The vision must be clearly defined to create an understanding of what is expected and a universal movement towards goal attainment within the organisation. Ensure people know what skills they need and what their roles and responsiblities are (Damian & Kirkley, 2011). Empowering Action The main obstacle is increasing involved employees motivation and commitment to change. In order to ensure the emplopyees understand their goal, a cutural web showing the company before and after can be used to give a clear vision (Damian & Kirkley, 2011). A system change can help to ensure the employees are on task and help implementation, this will be to design a management by objectives inititative and ensure that employees understand the dynamics of this change (Damian & Kirkley, 2011). One ideal which must be preserved and will be useful during implementation will be the use of Tastis ritual to actively encourage creative freedem to improve performance (personal communication, 2012). Instilling Change An outward in approach will be used to ensure that no changes are made to rapidly and risk creating a backlash. Start off with objectives which are easy to reach and communicate rewards and visibly recognize success when possible to encourage positive performance. Ensure promotion of the vision and ensure people who actively believe in the vision are rewarded, even if this is just verbally. Enhance the new group and ensure they mature professionally

15. 14 through giving them more autonomy, ownership and accountability of the project (Damian & Kirkley, 2011). Creating continuity In order to ensure that the strategy endures and is a success, change capacity must be filtered throughout the organisation and its values. This will ensure that the company is capable of keeping up with changes in the external environment. The development of strong and consistent leadership is also an important capability (Damian & Kirkley, 2011). Appendix 1.1 Cultural web of Tasti (Tasti, 2012) 1.2 Future Organisation Paradigm Family business Quality & service focussed Proud Adaptive Advanced (Technology) Symbols 'Wholesome' atmosphere Caring Up and coming under- dog Power Structure Privately owned company Family business Unions Organisational Structure Flat management structure Centralised Control Systems Communication between senior management. No filteringof information due to a lack of middle managment. Routines and ritual 'quality-minded' culture Staff involvement Actively encourage creative freedom to improve performance Stories Story of founders which emphasises humble kiwi beginnings

16. 15 1.3 Stakeholders communication requirement Awareness Understanding Support Involvement Commitment Senior managers Yes Yes Yes Yes Yes Shareholders Yes Yes Yes Yes Yes Supervisors Yes No Neutral No No Staff Yes No No No No Customers Yes Partial Unknown No No Suppliers Yes No No No No (Personal communication, 2012). 1.4 Dynamic capabilities -competitive advantage features. Knowledge management Multi-disciplined senior management team used to create competitive advantage Adaptability Fast decision making. External factors reacted to quickly and efficiently Flexibility Paradigm Family business Quality & service focussed Proud Adaptive Advanced (Technology) Strong CSR Trendy health concious marketing Symbols 'Wholesome' atmosphere Caring Up and coming under- dog Power Structure Privately owned company Family business Unions Strong marketing influence Organisational Structure Flat management structure Co-manufacturing Centralised Specalised marketing group Control Systems Strong communication Strategic Planning (Marketing) Management by objectives Routinesand ritual 'quality-minded' culture Staff involvement Actively encourage creative freedom to improve performance Stories Story of founders which emphasises humble kiwi beginnings

17. 16 Speed of response to external changes Flat management structure allows Tasti's senior management to make decisions quickly Resources Large modern facility R&D Fast response to changes in consumer demands Customer relationship strategy Close relationship with customers allows for up-to-date analysis of consumer behaviour trends Multi-stage warehousing system Rapid response supply chain Employees Investment in competency and motivation (Tasti, 2012) 1.5 Assets Tangible assets Employees Multi-disciplined senior management team Diverse range of products Large modern facility with sophisticated and reliable product lines Intangible assets Heritage of the company Past success B2B success with bakery consumers Efficient productivity Flat management structure Established itself as a healthy brand Customer loyalty Change required: Increase Pick the tick initiative

18. 17 Co-manufacturing with Weight watchers Numeracy and literacy programs for employees Australian market share Change required: Increase NZ market share Change required: Increase Logistics which provide competitive service Capability to react quickly to changes in the market Save the kiwi CSR initiative Family business with Son recently becoming more involved. Management and employee knowledge and experience (Har lee, 2010). (Tasti, 2012). 1.6 Change summary Change Design: Reconstruction of a change group and reconstruction of Mr Cooks role. Followed by evolution of the brand and how it is perceived both internally and externally. Change targets: Creation of a trained change group resulting in an output of effective marketing which builds the brand profile. This is all three organisational levels at which to intervene. Behavioural because the change group will have a different work environment, value because the brand will become a high profile brand and therefore will change the way people think about their work and lastly, outputs in the form of marketing. Change roles: In-house sourcing of a change group and development of Adrian Cook as a change agent Change levers: Systems power as a change mechanism, breaking and reforming formal and informal power structures, attitude-led change. Change style (Management Style): Change style of collaboration and participation Change start-point: The organisation wide start has already occurred. Each stakeholder is

19. 18 aware; however the pilot sites at which understanding and commitment are needed are beginning to be exercised. (Balogyn & Hailey, 2004). References Har Lee, Y. (2010, November 12). Success: Biting off as much as they can chew. NZHerald. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10688622 Hubbard, G., & Beamish, P. (2011). Strategic Management (4th ed.) French Forest. Australia: Pearson Australia (Hubbard & Beamish, 2011). Balogun, J., & Hailey, H, V. (2004). Exploring Strategic Change (2nd ed.) Essex, UK: Prentice Hall Damian, R., & Kirkley, B. (2011). Strategy and Change: Massey University. Auckland, New Zealand: Pearson. Cravens, D. & Piercy, N. (2009). Strategic Marketing (9th ed.) New York: America: McGraw Hill. Cook, A. (2012). Personal communication. Auckland: New Zealand. Statt, A. D. (2004). Psychology and the World of Work (2dn ed.) London, UK: Palgrave Macmillan Tasti Products Ltd. (2012). Retrieved from http://www.tasti.co.nz/ Workbase. (2011). Retrieved from http://www.workbase.org.nz/case-studies/tasti-products- ltd.aspx