Awareness of a Need For Change in an Organisation

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Table of Contents

Introduction
Internal parties
External parties
Guiding coalition and reason for their participation
Conclusion
Reference

Introduction

Windex Supermarket is a private limited company that was established in 1999. The firm is located in Sydney, Australia. In its operation, the firm deals with a wide range of assorted consumer products. Over the past decade, the firm has had an efficient performance increasing its level of profit. The increase in profit is also associated with a high rate of economic growth in Australia over the past few years. This has culminated in an increase in the consumer’s disposable income. However, the intensity of competition in the Australian retailing industry is increasing. This is a result of an increase in the number of both domestic and foreign firms venturing into the industry. Managements of firms in this industry are continuously formulating strategies on how to remain competitive.

To improve on its competitive advantage, it is paramount for the management of Windex Supermarket to improve its relationship with the customers. According to Arezu and Alizera (2006, p.8), this will result in increased customer retention. As a result, the firm will benefit by attaining a higher competitive advantage thus attain its goal as a going concern entity.

Currently, the organization does not have an efficient customer relationship strategy. To integrate a good customer relationship, the management of the firm should consider incorporating customer relationship management. According to Kimberly (2008), customer relationship management enables an organization to retain and attract new customers. One of how the firm can attain this is by integrating information technology in its operation such as the Customer Relationship Management (CRM) software. According to Peter (1999, p.1), implementing change in an organization can be a challenging task for the management. Peter (1999, p.1) asserts that this is because some numerous procedures and structures require to be adjusted. This can result in resistance amongst the various stakeholders.

To effectively implement change in an organization, the needed change must be communicated to the various stakeholders. The discussion of this paper is aimed at analyzing the importance of communicating change to the various stakeholders. The objective of the discussion is to illustrate a communication strategy that the management of the firm should adopt in communicating the change.

The management of the firm should communicate the needed change to the following stakeholders.

Internal parties

Employees

According to Arezu and Alizera (2006, p.7), customer relationship management identifies the customer as a key element in the success of a firm. There is a need for the employees to understand the importance of meeting the customers’ demands. The CRM software will enable the employees to be effective in their activities since they will be inline with the market demand. The effect is that there will be increased customer satisfaction. The communication strategy should be aimed at ensuring that all the employees in the various departments understand how the CRM software works. The CRM software will enable effective communication within the firm. Understanding how the CRM software works will ensure that there is correct interpretation of customers needs by employees of the various departments such as sales, marketing, finance and the production department. The result will be that the employees in individual departments will be able to work towards meeting the customers’ requirements. The total effect is that all the operations of the firm will be geared towards meeting the needs of the customers.

This strategy will be communicated to the employees during the formulation phase. This will reduce the possible resistance during the implementation phase.

Shareholders

CRM software can contribute towards the maximization of the shareholder’s wealth. The management of the organization should ensure that the shareholders understand how CRM software will increase the firm’s profitability. In addition, the CRM will enable the management to predict the future needs of the customers effectively. According to Arezu and Alizera (2006, p.7), this will enable the firm to be proactive in meeting the needs of the customers. For example, the management will be able to adopt an effective product differentiation strategy. The effect is that the shareholder’s wealth will be maximized in the long term. Because there is an agency relationship between the managers and the shareholders, the strategy should be communicated during the strategy formulation phase for approval.

External parties

Customers

The customers should understand how to use CRM software. The communication will entail how the customers will use the CRM software which will be integrated with the internet. This will enable the customers to communicate with the firm’s management. This will enable the management to understand their product preferences and other product-related opinions such as the price.

Action plan

Task	Time duration	Communication strategy	Party to undertake the task
Communicating the change to employees and training employees them how CRM software works.	-Training will be organized according to the various departments and will take 2 months.	-Internal memos and the use of the intranet will be used to communicate the change. -Training will be conducted via the organization’s intranet for efficiency.	-Training will be conducted through outsourcing services of professional firms.
Communicating to the shareholders	1 month	-Use of prospectus that will be made accessible before the annual general meeting.	The executive management.
Training and communicating to the employees.	Continuous	Public relations, Online, television, radio, and print media advertisements.	Marketing department.

Cost involved

Cost item	Amount in $
Cost of communicating to various parties	150,000
Professional cost of training	50,000
Cost of purchasing CRM software	100,000
Implementation cost	50,000
Total expected cost	400,000

Guiding coalition and reason for their participation

According to John (n.d, p.1), implementing change in an organization demands that there be a team of individuals who will effectively lead the process of change. To implement the CRM software in the organization, the guiding coalition will consist of employees from the marketing and information technology departments. Employees from the marketing department will help in the identification of the critical marketing variables to consider in implementing the software. In addition, they understand the customers more effectively.

On the other hand, the members of the team from the information technology department will enable effective implementation of the software. These individuals have vast information technology skills. They will use these skills to implement CRM in the organization. This will enable the software to run efficiently. In addition, they will also deal with the maintenance of the software.

Conclusion

Customer relationship is a key element in ensuring that a firm succeeds in the long term. Customer relationships can be improved by incorporating the concept of Customer Relationship Management. To achieve this, the management of Windex Supermarket should consider integrating the CRM software. The change should be effectively communicated to the various parties to ensure it is effectively implemented. A comprehensive action plan should be devised to illustrate the requirements of implementing the change.

Reference

Arezu,G.& Alizera, O.(2006). The impact of CRM on customer retention. Lulea, Sweden: Lulea University of Technology. Web.

John, K. (n.d). Leading change. 2009. Web.

Kimberly, C.(2008). CRM hype continues but maturity and adoption of enabling technologies varies widely. Gartner. Web.

Peter, B. (1999).How organisations cope with the winds of change. Gelsenkichen, Germany: Institute Arbeit. Web.

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