Managing and Leading Strategic Change

Summary 

The report as highlighted the current trends along with drivers of change influencing the operation of the organization in the retail industry. The grocery sector of Singapore has been rapidly changing with alteration in customer need, technology, customer lifestyle and shopping behaviour. The managers and leaders of the organization operating in the retail sector need to work collaboratively to strategically respond to change. The management decision made in consideration to Fayol theory, Kurt Lewin change model, McKinsey 7S, and transformational leadership approach has become an effective means to manage change in a strategic manner. The skills of communication, effective leadership and approaches of managing change with technology integration, sustainability ethics as well as proper budgeting activities have remained effective means to sustainable response to change in the retail industry.  

Introduction 

Change management refers to the procedure of supporting, helping and preparing teams, individual as well as organization within making operational change. This report aims to provide a brief discussion of the current drivers and trends for change that are impacting as well as influencing the corporate operating within the retail sector of the grocery industry. The change management theories will be applied to guide leaders and managers of the organization functioning within the grocery industry for sustainable change response.  

Section 1 

Select and justify an appropriate focus for the Briefing document

Singapore is the sovereign island city-state within maritime Southeast Asia. The country has emerged as the latest hub for innovation and became the new marketplace for brands of groceries. The grocery sector of Singapore is on increase and assumed to hike by 14.5% on a yearly basis until the year 2023 (Madaan 2020). The retail industry of the nation contributes to nearly 1.4% of towards the GDP and recruits nearly 3% of Singapore's workforce (Guidemesingapore 2020). Conversely, the conventional Singapore retail industry and grocery sector organization are struggling to maintain their competitiveness in the business environment of current trends driving market change. The significant focus on the briefing document of the grocery sector becomes critical as the current drivers and trends of changing bringing the threat of increasing costs as well as decreasing sales. Along with this, the retail industry is disrupted from the e-commerce that needs to be addressed through strategic change management. The retail industry organization operating within the grocery sector require engaging in the strategic change to capitalize on the growth of grocery market that is assumed to reach £8.49 billion by the year 2023. 

Research and identify the current trends and drivers for change that are influencing and impacting on organisations operating within the chosen sector/industry

In terms of size, the grocery sector of Singapore is ranked 23^rd biggest market within Asia (Madaan 2020). The conventional approach of shopping groceries has noted 20% at current. This trend is changing as the sector continues to change to modern technologies. While the grocery sector has continued to flourish at a rate of 3% annually, it is the retail industry involving hypermarket that is likely to suffer. The changing customer needs and government policies are the drivers of change that stress retail organization of grocery sector to emphasize on implementing small outlets as well as bring CAGR of respective business around 1.1% (Madaan 2020). Conversely, there are several factors than only altering customer needs and government policies that are impacting as well as influencing the organization operating in the grocery sector, the retail industry of Singapore. The most important drivers of change and current trends that impact the retail industry organization functioning in Singapore's grocery sector are- 

Social selling and e-commerce: Technology is the current driver of change in the retail sector. The customer trends are shifting more to the online purchase. It has forced the grocery organization to imply a competitive and robust solution to allow the users to buy from the outlets via the internet (Ying et al. 2020). The modification within customer habits would result in the transfer within marketing plans of the corporate, forming them to respond strategically with adequate investment on digital means or platforms. The online stores or outlets need to be reliable, uncluttered and fast to support the customer experience, conversely, the organization need attracting users with efficient effort on product qualities and process. 

Lifestyle change of people: The lifestyles of people in Singapore are changing with no enough time to go to stores and engage in grocery shopping. The retail industry organization operating within the market is impacted to provide the solution that is precise, relevant and fast. The retailer requires to acknowledge that people shopping through the internet, the phone is not available at home for accepting the deliveries. It influences organization functioning in the grocery market to cater to the respective issue and achieve higher user satisfaction.  

Shopping experience: The current trend of omnichannel, multi-sensory stores is driving change in grocery sector impacting the organization to venture into sensors, touch-screens, robots, machine working collaborated to generate human-less, interactive interface for the users (Ying et al. 2020). For instance, the Honestbee has successfully created the impeccable purchase experience area allowing the user to smell, taste, touch various international food variety within nature-inspired interiors.  

Mortar and Brick store is going to stay: While online grocery purchase is increasing, it would take time to surpass the mortar, brick stores opened through Singapore. For instance, the Dairy Farm and Fair Price has dominated offline grocery sector with emphasizing on opening several stores in future (Madaan 2020). Conversely, the new entries offering a premium price for the establishment has gained certain success. Nonetheless, the small-size grocery stores or retail marts might struggle due to higher rental costs and in-depth discounted costs to put up to lure users.  

Reclaiming the older sense: The increased level of education, affluence, targeted government campaign along with historical food safety is impacting the organization operating in the Asian retail industry (Kuijpers et al. 2018). The retailers are emphasizing to response to the current trend with depicting freshness and healthy ranges utilize concept, innovative and layouts. The grocery sector organization within Singapore are at the current going back to the older process by serving the fast-food, ready-made food and implementing the restaurant for the buyers adjacent to the outlets.  

Given the trends identified above identify two or three key areas of change that managers/leaders within organisations may be required to work with 

In accordance with trends recognized above, the two critical areas of alteration that leaders and managers in the organization need to focus on addressing the issue of changing customer needs as well as advancement within technology. Lim and Srai (2018) determined that the organization leaders operating within the retail sector is needed to work with managers in increasing grocery purchase convenience and offer same-day deliveries to achieve higher customer satisfaction. For the purpose of meeting changing customer needs and demands, the organization operating within the grocery sector need to rework the hypermarket, supermarket experience along with adding the branches of complementary retail (Tivasuradej and Pham 2019). The enterprise in the retail industry needs working with online partners including eBay, Amazon or others to benefit shopper receive products in a timely manner. Moreover, the managers and leaders in the organization to lead strategic change of satisfying diverse customer demands are likely to stay profitable with implementing click as well as collect points in the grocery stores.  

The increment within mobile shopping has derived the change in the retail industry and the grocery sector. The managers and leaders in the organization require working with IT teams to enhance brand effectiveness through spending on modern technologies or lose marketplace share to the top rivals. The leaders of grocery retailer addressing the marketplace tussle require making extra efforts to operate continuously, innovate and adopt the market change to please profitable customer base. Dey (2019) opined that as per the challenge brought by development in technology, the managers in the organization require working with marketing leaders to enhance sales with stores and websites providing efficient retail services. The modern technology becomes effective to grow user experience, where the corporate manager in retail sector invest carefully in technology areas of the speedy supply chain, coupon-at-till modernized platforms and enhanced self-service checkouts (Niels and Zagel 2017, July). The process in grocery outlets would profit users to have choices of check-out, speed-up queuing time for customers with small baskets. Moreover, the managers and leaders working collaborated to enhance grocery sales of the company operating within the retail industry need implementing a loyalty programme, mobile scan and go initiates as a strategic response to change drivers.  

Section 2 

Apply ideas and theory from appropriate academic sources in order to evaluate how managers/leaders and organizations may respond effectively to key aspects of the organizational dynamics likely to be generated by the areas of change identified

With respect to the changes being occurred in the retail sector within the industry of Groceries in Singapore market, it could be analyzed that application of key change management, leadership and managerial theories could be helpful for the managers of the organizations under the sector to ensure successful innovation in the business. It might also help in managerial staffs in gaining strategic targets of the business. 

In response to the emergence of digital technologies such as e-commerce leading to change in the customers' lifestyle and buying behaviour, application of transformational leadership approach could be helpful for the corporate leaders to encourage its teams in effective identification of changes, developing a shared vision for guiding change by inspiration and thereby executing it in tandem with task-focused team members. Freeborough and Patterson (2016) argued that team members might resists changes in technology as it might cause fear of losing job amongst them. However, effective communication by leaders through synthesis sessions with their followers could help in raising awareness for the relevance of change and innovation in business for ensuring growth in the groceries retailing industry. 

Figure 1: Transformational leadership approach

Source: (Freeborough and Patterson 2016)  

Under the approach, leaders might establish the challenging working process and develop motivation and sense of determination amongst the team members to act effectively thereby produce standard outcomes to the company. It might also support the team members to develop innovative working ideas for making a significant contribution towards transforming business functions. Furthermore, effective training and development opportunities, regular supervision and timely feedback of performances might help the leaders to manage work quality and coordination amongst employees. Additionally, to celebrate success in transforming business functions under Singapore groceries retailing industry, leaders could arrange reward schemes for team members to encourage them to perform their job effectively further to administer changes in business properly. Ultimately, the use of ROI could be helpful for the leaders to measure innovation success and take further corrective actions to respond positively towards gaps. 

Considering the management of recent trends in the Singapore industry of groceries’ retailing, application of McKinsey 7S model categorized as Hard and Soft, might be applied in business to accomplish targeted goals.

Figure 2: McKinsey 7S model

Source: (Shaqrah 2018) 

Strategy

The leaders of the company are aimed at providing the most effective retail services to the customers by having the key strategy of applying the changes like digital marketing, e-business and others trends thereby improve financial performance and service quality.   

Structure

The managers under the organization engaged in groceries and business usually follow divisional stricture where the staffs are placed at different functional divisions reporting to their divisional managers. Shaqrah (2018) opined that it helps them to perform well in their departmental jobs thereby provide effective service to customers.  

System

The HR, communication, document storage and the financial systems of the help leaders to make use of ROI approach, or 360-degree feedback system to review the performance levels of staffs thereby exercise significant control on the change management processes.

Shared values

The leaders following task and person culture tend to encourage their staffs to perform well and represent extra-ordinary results towards change management in business. Shared values amongst team members and leaders help in strengthening workplace relations. 

Style

Use of participative and transformational approaches of leadership might help the leaders to encourage innovative ideas of team members while forming decision associated with managing changes in the business. These ideas could be related to the use of effective e-commerce application and payments options for the customers to provide them with effective services. Such approaches increase cooperation amongst staffs and make them competitive important for controlling changes in the business. Performing beyond limits and delivery of extra-ordinary results is helpful to team members to make a positive contribution towards business.  

Staff

Staffs under the industry and usually represent key skills towards the performance of job and supply of effective services to the targeted customers. However, the arrangement of attractive reward and training sessions for them could help leaders to monitor their performance quality. Furthermore, the establishment of performance targets along with proper performance evaluation approaches might supports leaders to identify and address performance gaps for succeeding in business innovation. 

Skills

Sound intellectual skills along with communication and problem-solving capabilities of the employees help the leaders to meet strategic targets of business in a successful manner. Furthermore, reward and benefits might help the leaders to increase motivation staffs and encourage them to produce extra-ordinary outcomes in the business

Change is a common thread, which functions through the business of all size, and scope as well. Singapore market is facing key changes in the groceries' retailing industry that is essential to be adopted by the organization to respond positively towards market requirements thereby create a competitive edge in the industry. Application of Kurt Lewin’s change management model might help managers or the leaders to balance their activities amongst unfreezing change and refreezing with respect to ensuring innovation.

Figure 3: Kurt Lewin’s change management model

Source: (Cummings et al. 2016) 

Unfreeze

Under this step, the managers could involve its staffs to the current state assessments for making them identify needs of change implementation in the business. Cummings et al. (2016) opined that it might involve breaking down status quo, conducting revision of prevalent practices, challenging existing behaviour towards groceries retailing as well as forming latest innovative ways for carrying out business. Effective communication regarding development strong vision of between managers and staffs along with effective involvement of staffs' views in the decision-making process could establish creativity in business.   

Change

Under this phase, activities the performance by the staffs could be developed and the leaders could form teams of creative and skilled members that could make an effective contribution towards successful change implementation in the business. Furthermore, leaders could maintain effective relations with team members through proper interaction. It could help them to manage the performance quality of staffs by having regular supervision on their job roles and control on their frequency of mistakes committed. Proper rotation of jobs could support leaders in reducing work burden and increasing workplace coordination amongst team members for successfully implementing change in business.  

Refreeze

Under this stage, success in applying changes in business could be faced by the leaders of the companies under the Singapore groceries retailing market. The corporate leaders could arrange rewards for staffs to appreciate their strong contribution and effort towards change implementation. Furthermore, for ensuring sustainable management of change in the business, managers could make use of key approaches of performance evaluation like ROI, balance scorecard, KPIs and other. It could help in determining and mitigating gaps in governing business innovation for exercising significant influence on buyers' behaviour. 

Fayol’s Administrative theory

Figure 4: Fayol’s Administrative theory

Source: (Edwards 2018)

The theory is established by Fayol that assumed that a business is effectively governed by the help of 14 key principles. Edwards (2018) argued that these principles are helpful for managers to implement and administer innovation or change in the business sustainably. It might help managers to converse efficiently with staffs regarding needs and objectives with respect to change management. The principles indulge remuneration, centralization, equity and esprit de corps and scalar chain and other. It could help managers in ensuring shared vision in placing staffs to the job role where they are specialized, which helps in reducing workload and increase employees' efficiency. Furthermore division of work, a proper job rotation could also increase workforce motivation and behaviour towards change management. Rajković (2017) opined that esprit de corps and centralization improves cooperation and coordination amongst employees to work effectively and generate excellent results for the business. With the initiative principle, managers could take encourage employees to form their work decisions on their own thereby plan their activities effectively. It could be helpful in gaining the targeted objectives of the business.     

Section 3 

Evaluation and discussion within the Briefing document to establish the key elements of learning in terms of approaches, skills and qualities etc for leading/managing sustainable responses to change

The managers of the retail companies engaged in groceries' retailing might practice certain key approaches to manage change in the business with respect to technology, ethics and sustainability. They might establish effective communication with stakeholders including the customers from the very starting of the change management processes through conducting research as well as inviting their response. Aryshev and Ivanyuk (2020) stated that another approach adopted by managers and leaders groceries retail organization could be sufficient budgeting activities with respect to change management like marketing and training as it could help in controlling overall costs of business and maintaining the financial performance of the business. 

The skills required for managing changes are evaluated as follows:

Communication

Communication skills of leaders and managers of the company are helpful in raising awareness regarding the relevance of change within business amongst staffs. It involves the effective development of a shared vision. Sound communication skills help managers to mitigate staff resistance and develop their motivation with productivity as well. 

Leadership

This skill helps leaders to drive change program forward. It is an essential quality needed for organizing staffs, mobilizing their support and accomplishing targeted objectives as well.

Recommendation 

Change has been inevitable within each niche, segment within the retail industry as well as the grocery sector. The strategic change management process becomes helpful for the brand to satisfy customer needs and keep the workforce productive during change. The organization operating within the retail sector is likely to make improvement through following strategies- 

Enhance communication: In the business setting of change industry practices, the two-way communication across employees and employer becomes critical. For the newest staffs, the leader needs to assign particular work, consistently offer feedback and experienced staffs may provide for the higher delegation with receiving continuous feedback. The process benefits in sustainable response to alteration and managing change. 

Consider the effect: It becomes important for the organization to remain successful while operating in the retail industry that is changed by the emerging trend. The impact on employees and shopper needs to be considered by the manager in case of market change impacting the sense of belonging of certain staffs. The negative influence of current trends driving change in the grocery sector needs to be addressed by keeping staffs motivated through strong incentive schemes, the IT team skilled to enhance marketing effectiveness and brand image.  

Distribute ownership across staffs: It is important to make staffs, managers, leaders and subordinates employed in the organization to have the accountability of their work. The grocery retail corporate needs to have their teams on board and encourage innovative ideas, listen to their views to enhance business performance even in the uncertain business setting.  

Conclusion 

It is concluded that Singapore retail industry organization leading business in the grocery sector has encountered current trends involving ultimate convenience, partnership shaping the online business, social shopping, technological transformation and lifestyle has derived change. In the process of a strategic response to changing retail business trend, the managers and leaders of the organization operating in the grocery sector need to outline further decision making under change management theories.