AOS 5: Implementing Change

Question 1

Leadership in change management & FEATURE

positively influence …
towards…

demonstrate strong …
building a…
and providing…
throughout…

Answer 1

Leadership in change management is the ability to positively influence and motivate employees towards achieving business objectives during a transformation.

FEATURE: A manager can demonstrate strong leadership in change management by building a shared vision and providing ongoing communication and support throughout the transition period.

Question 2

Outline one way a manager can demonstrate strong leadership during business change

define

is through building a …
this involves…

Answer 2

Leadership in change management is the ability to positively influence and motivate employees towards achieving business objectives during a transformation.

One way a manager can implement leadership in change management is through building a shared vision. This involves a manager informing employees of the reasons and benefits of the change, as well as the consequences of not changing.

Question 3

Management strategies (12)

Answer 3

1. Staff training
2. Staff motivation
3. Management skills or style
4. Cost cutting
5. Investment in technology
6. Improved quality in production
7. Initiating lean production techniques
8. Redeployment of resources
9. Innovation
10. Global sourcing of inputs
11. Overseas manufacture
12. Global outsourcing

Question 4

Staff training, 2 IMPACTS/2 EFFECTS

(impacts: number of work accidents & percentage of market share)

ensures employees are…
contributing to …

provides employees with…
that provides the business…
and allows…

Answer 4

Staff training involves a business equipping employees with the knowledge and skills required to perform work tasks.

IMPACT:
Number of work accidents DECREASED
EFFECT:
Ensures employees are equipped with the skills to handle and operate equipment safely, contributing to a safer workplace.

IMPACT:
Percentage of market share INCREASE
EFFECT:
Provides employees with the knowledge and skills to deliver a unique customer experience that provides the business with a competitive advantage and allows a greater proportion of sales to be captured within its industry.

Question 4

Staff motivation/motivation, 2 IMPACTS/2 EFFECTS

(impacts: level of staff turnover & number of sales)

motivating employees…
as managers recognise…

motivated employees…
and contribute…
that increases business’…

Answer 4

Staff motivation involves a manager implementing strategies that encourage employees to work towards the achievement of business objectives.
Motivation is the willingness of an individual to expend energy and effort in completing a task.

IMPACT:
Level of staff turnover DECREASED
EFFECT:
Motivating employees can provide them with a greater sense of achievement and increase their commitment to the business as managers recognise their efforts to achieve objectives.

IMPACT:
Number of sales INCREASED
EFFECT:
Motivated employees may be more willing to enhance their product knowledge and contribute innovative ideas that increase a business’s competitive advantage and attract more customers.

Question 5

Increased investment in technology, 2 IMPACTS/2 EFFECTS

(impacts: number of website hits & number of work accidents)

online services…
increasing the number of…

APL, robotics and CAM…
increasing…

Answer 5

Increased investment in technology involves implementing automated and computerised processes into a business’s operations system.

IMPACT:
Number of wesbite hits INCREASED
EFFECT:
Online services can be used to provide customers with a platform to conveniently purchase products or book services online, increasing the number of customers frequenting a business’s website

IMPACT:
Number of workplace accidents DECREASED
EFFECT:
APL, robotics, and CAM techniques can minimise the number of dangerous tasks that employees are required to perform, increasing their safety at work

Question 6

A change in management style, 2 IMPACTS/2 EFFECTS

(impacts: level of staff turnover & net profit figures)

adopting a less restrictive…
this encourages…
allowing…

adopting a more restrictive…
this can reduce…

Answer 6

A change in management style involves a manager altering the way they direct and communicate with employees.

IMPACT:
Level of staff turnover DECREASED
EFFECT:
Adopting a less restrictive management style promotes employee involvement in decision-making. This encourages employees to feel increasingly valued and considered in the workplace, allowing the business to have greater employee retention.

IMPACT:
Net profit figures INCREASED
EFFECT:
Adopting a more restrictive management style increases the ability of a manager to utilise the business’s resources in an optimal manner. This can reduce the number of resources wasted, leading to a reduction in expenses and improvements in profit.

Question 7

Cost cutting & FEATURE, 2 IMPACTS/2 EFFECTS

(impacts: level of wastage & rate of productivity growth)

eliminating resources that…
can minimise…
therefore…

merging the roles…
therefore…

Answer 7

Cost cutting is the process of reducing business expenses. Managers will utilise cost cutting to decrease unnecessary expenses within a business’s operations, allowing for maximised profits and the achievement of business objectives.

IMPACT:
Level of wastage DECREASED
EFFECT:
Eliminating resources that do not add value to the operations system can minimise the number of inputs required in production, therefore reducing the amount of wastage

IMPACT:
Rate of productivity growth INCREASED
EFFECT:
Merging the roles of employees and streamlining operations processes can reduce the number of inputs required in the production process, therefore increasing a business’s overall efficiency.

Question 8

DON’T LEARN

A change in management skills, 2 IMPACTS/2 EFFECTS

(impacts: number of work accidents & net profit figures)

DONT LEARN

Answer 8

A change in management skills involves a manager altering the way they approach business tasks and collaborate with employees.

IMPACT:
Number of work accidents DECREASED
EFFECT:
Utilising management skills that clearly convey instructions and work tasks, such as communication, can ensure employees are aware of their responsibilities and understand how to complete their roles safely, reducing the likelihood of injury from unsafe work practices.

IMPACT:
Net profit figures INCREASED
EFFECT:
Utilising management skills that provide a manager with a high degree of control, such as planning and decision-making, can allow the business to effectively manage resources and reduce waste-related expenses, contributing to higher profit margins.

Question 9

Innovation, 2 IMPACTS/2 EFFECTS

(impacts: number of sales & net profit figures)

Developing innovative goods…
and allow the business to…
therefore…

a business that promotes…
as their needs…
therefore, generating…

Answer 9

Innovation is the process of altering and improving, or creating new products or procedures.

IMPACT:
Number of sales INCREASED
EFFECT:
Developing innovative goods and services may allow a business to better meet customer needs and allow the business to establish a competitive advantage through its unique offerings, therefore attracting more customers.

IMPACT:
Net profit figures INCREASED
EFFECT:
A business that promotes and sells innovative products is likely to attract and retain more customers, as their needs are readily satisfied by the business, therefore, generating more sales and profits.

Question 9

Improving quality in production, IMPACTS/2 EFFECTS

(impacts: rate of productivity growth & percentage of market share)

improving production quality…
therefore…

higher quality goods…
increasing a business’…

Answer 9

Improving quality in production involves a business implementing processes that increase
the perceived value of its good or service.

IMPACT:
Rate of productivity growth
EFFECT:
Improving production quality can minimise the number of errors and defective products that a business produces, therefore decreasing its number of discarded resources and improving productivity.

IMPACT:
Percentage of market share INCREASED
EFFECT:
Higher quality goods and services can promote repeat purchasing as there are greater levels of customer satisfaction, increasing a business’s competitive advantage.

Question 10

Initiating lean production techniques, 2 IMPACTS/2 EFFECTS

(impacts: number of customer complaints & number of website hits)

a business that strives for…
can minimise…

promoting the use of…
as they are more likely to…

Answer 10

Initiating lean production techniques involves a business adopting lean management strategies to systematically reduce waste in all areas of production while also improving customer value.

IMPACT:
Number of customer complaints DECREASED
EFFECT:
A business that strives for zero defects and constantly looks for ways to improve its quality can minimise its number of defects in production and improve overall customer satisfaction.

IMPACT:
Number of website hits INCREASED
EFFECT:
Promoting the use of sustainable and environmentally friendly practices can attract more customers to a business’s website as they are more likely to engage with socially responsible businesses.

Question 10

Redeployment of resources, 2 IMPACTS/2 EFFECTS

(impacts: level of wastage & prate of staff absenteeism)

reallocating resources increases…
reallocating labour resources…
where staff…
can…

Answer 10

Redeployment of resources involves reallocating natural, labour, and capital resources to different areas of the business to improve productivity and effectiveness.

IMPACT:
Level of wastage DECREASED
EFFECT:
Reallocating resources increases productivity and reduces the number of resources that are wasted in a business’s operations system.

IMPACT:
Rate of staff absenteeism
EFFECT:
Reallocating labour resources to another area of business where staff have different roles and responsibilities can motivate employees to attend work.

Question 11

Overseas manufacture, 2 IMPACTS/2 EFFECTS

(impacts: number of sales & net profit figures)

utilising highly skilled…
may increase…
thus…

a business can minimise…
therefore increasing…

Answer 11

Overseas manufacture involves a business producing goods outside of the country where its headquarters are located.

IMPACT:
Number of sales INCREASED
EFFECT:
Utilising highly skilled overseas workers in the operations system may increase the quality of a business’s final output, thus increasing customer satisfaction and sales.

IMPACT:
Net profit figures INCREASED
EFFECT:
A business can minimise its labour expenses and operation costs by manufacturing overseas, therefore increasing its ability to make a profit.

Question 12

Global sourcing of inputs, 2 IMPACTS/2 EFFECTS

(impacts: number of sales & net profit figures)

sourcing authentic…
can provide a business with…
and entice…

a business can source…
this can reduce…

Answer 12

Global sourcing of inputs involves a business acquiring raw materials and resources from overseas suppliers.

IMPACT:
Number of sales INCREASED
EFFECT:
Sourcing authentic and unique resources that are not available domestically can provide a business with a competitive advantage, and entice customers to purchase its products.

IMPACT:
Net profit Figures INCREASED
EFFECT:
A business can source its inputs at a cheaper price from overseas suppliers. This can reduce production costs and increase profit margins.

Question 13

Global outsourcing, 2 IMPACTS/2 EFFECTS

(impacts: rate of productivity growth & net profit figures)

when a business…
who are often capable of…
allowing the business…

a business can minimise its…
as the cost…
therefore increasing…

Answer 13

Global outsourcing involves transferring specific business activities to an external business in an overseas country.

IMPACT:
Rate of productivity growth INCREASED
EFFECT:
When a business outsources its tasks overseas, it can utilise the expertise of highly skilled workers who are often capable of performing tasks more efficiently than local workers, allowing the business to use its time more productively.

IMPACT:
Net profit figures INCREASED
EFFECT:
A business can minimise its operations expenses through global outsourcing as the cost of wages is often cheaper overseas, therefore increasing the business’s ability to make a profit.

Question 14

Corporate culture & FEATURE

creating a positive…
as it can help…

this can allow…
to increase…

Answer 14

Corporate culture is the shared values and beliefs of a business and its employees.

FEATURE: Creating a positive corporate culture during times of change is important, as it can help a business’s employees become more open to change, and therefore help create a culture of continual growth.

This can allow a business and its employees continue to approach change with their shared views and values in mind to increase the likelihood of the success of the transformation.

Question 15

Official corporate culture, 2X STRATEGIES & IMPACT

Answer 15

Official corporate culture involves the shared views and values that a business aims to achieve, often outlined in a written format.

…………

One strategy that a business can implement to develop a positive corporate culture is creating a vision statement, which outlines the aspirations of the business.
Vision statements are an example of an element of official corporate culture, as they are a formal, written statement of a business’s shared views and values. Vision statements can be used to outline business expectations and set an example for employees to follow, therefore guiding their approach to work. (2 marks)

One strategy that businesses can implement to improve official corporate culture is creating a new Code of Conduct that outlines expected employee behaviour at work. A Code of Conduct can act as an example for employees to follow to ensure they are fulfilling their roles and meeting a manager’s expectations.
Another strategy that can be implemented at a business to improve official corporate culture is introducing new uniforms. Uniforms can help employees identify with the business and become recognisable as representatives of the business, fulfilling its aspirations in their work. (2 marks)

STRATEGY:
Creating a vision statement
IMPACT:
Vision statements are an example of an element of official corporate culture, as they are a formal, written statement of a business’s shared views and values. Vision statements can be used to outline business expectations and set an example for employees to follow, therefore guiding their approach to work.

STRATEGY:
Publishing an employee code of conduct
IMPACT:
Vision

Question 16

Real corporate culture, 2X IN STRATEGIES & IMPACT

Answer 16

Real corporate culture involves the shared values and beliefs that develop organically within a business, and are practised on a daily basis by its employees.

…………

A strategy a business can implement to develop a positive corporate culture is creating open working environments. Open working environments are an example of an element of real corporate culture, as open workspaces are focused on employee interactions.
Open work environments can encourage greater employee collaboration and higher levels of employee engagement and productivity, meaning that employees are better able to complete work and share ideas to foster positive relationships between employees. (2 marks)

A strategy that businesses can attempt to implement to improve real corporate culture is celebrations, which are used to recognise employee successes at work and other personal milestones. They can act as a source of motivation for employees to become more productive as they seek recognition and approval for their work, therefore creating a culture of progress and high performance.
Moreover, another strategy implemented within businesses to improve real corporate culture is creating open workspaces, which encourage employee collaboration, and sharing of knowledge to complete work tasks.

Question 17

Sims/Diffs developing official and real corporate culture

Answer 17

Sims:
One similarity between strategies to develop official and real corporate culture is that strategies used to improve both would relate to a business and its employees’ shared values and beliefs.

Diffs:
However, one difference between the types of strategies is that developing official corporate culture often involves changing or publishing a business’s aspirations and intentions, and is usually contained in formal written documents.

In contrast, strategies to develop real corporate culture use more informal methods, such as business rituals, that are based on organic daily interactions between employees.

Question 18

Learning organisation and FEATURE
MVPST

Answer 18

A learning organisation is an organisation that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.

FEATURE: A learning organisation promotes the adaptability of all of its members through the five principles of systems thinking, mental models, shared vision, team learning, and personal mastery.

MVPST (Most Valuable Player (on the) Soccer Team):
Mental models, Vision, Personal Mastery, Systems thinking, Team learning

Question 19

Mental models and FEATURE

Answer 19

Mental models are existing assumptions and generalisations that must be challenged so that learning and transformation can occur in an organisation.

FEATURE: This principle ensures that people within the business are able to challenge the way they think and behave so they can discover more effective processes.

Question 19

Shared vision and FEATURE

Answer 19

Shared vision is an aspirational description of what an organisation and its members would like to achieve.

This principle creates a sense of commitment among employees to work towards a collective long-term objective.
A strong and clearly communicated vision can provide a unified focus for employees and their work activities, contributing to a positive corporate culture where employees value teamwork and collective progress towards stated goals.

Question 20

Personal mastery and FEATURE

Answer 20

Personal mastery is the discipline of personal growth and learning, aligned with one’s values and purpose.

FEATURE: This principle encourages the business to develop an environment that facilitates employees’ learning.
A business promoting personal mastery can improve its performance as its employees are committed to continuously developing and improving themselves.

Question 21

Systems thinking and FEATURE

Answer 21

Systems thinking is a management approach that considers the interrelationship between the parts of a whole system.

FEATURE: This principle involves analysing a business as a whole rather than as its separate parts.
It also considers the fact that a business is connected to external structures, such as the specific industry and wider economy in which it operates.

Question 22

Having a positive culture for change (learning organisation) encourages:

Answer 22

• taking risks and pursuing new opportunities.
• desire to build skills and capabilities to evolve and transform.
• employees to be passionate about their jobs as they work towards a shared vision.

Question 23

Senge’s learning organisation PROS/CONS

Answer 23

Pros:
1. By being adaptable and flexible, the business can respond quicker to issues in the future

2. Staff motivation is likely to increase as a result of boosting skills and empowerment

Cons:
1. The approach requires cultural change which can take time

2. Large businesses can struggle to share ideas and knowledge between all the members

Question 24

Low risk strategies and FEATURE

Answer 24

Low-risk strategies are gradual management approaches that encourage employees to accept and participate in a business change.

FEATURE: Managers will typically use low-risk strategies when they have a longer period of time to implement the change, and are aiming to maintain a positive relationship with employees.

Question 25

Communication as a low-risk strategy and FEATURE

Answer 25

Communication as a low-risk strategy involves managers openly and honestly transferring information to employees, and listening to their feedback so that employees are fully aware of the reasons for, and impacts of an upcoming change.

FEATURE: Managers must use two-way communication, whereby employees are able to ask questions, voice their concerns, and receive feedback regarding the potential change to effectively use communication as a low-risk strategy

Question 26

Empowerment as a low-risk strategy and FEATURE

Answer 26

Empowerment as a low-risk strategy involves managers providing employees with increased responsibility and authority during times of change.

FEATURE: Managers can allow employees to contribute to the transformation, decreasing the likelihood of their resistance as they develop a sense of ownership towards the change and are invested in its success.

Question 27

Support as a low-risk strategy and FEATURE

Answer 27

Support as a low-risk strategy involves managers providing employees with assistance as they move from current to new practices.

FEATURE: Managers can provide assistance to employees using a variety of support strategies, including staff training or counselling.

Question 27

Incentives as a low-risk strategy and FEATURE

Answer 27

Incentives as a low-risk strategy involves managers providing financial or non-financial rewards to encourage employees to support change.

FEATURE: To implement incentives and reduce employee resistance, a manager can offer financial rewards, such as bonuses, pay rises, and commissions, or non-financial rewards, such as career advancement and leadership opportunities.

Question 27

pros/cons of low risk strategies

Answer 27

Pros:
Communication, empowerment and support, all result in a higher chance of change being successful in the long term due to increased trust and cohesion between managers and employees

If employees feel valued by the business and trust their manager, they are more likely to stay at the business, reducing costs associated with hiring new employees

Cons:
All low-risk strategies are not useful in crisis situations (such as support) as they take a longer period of time to be effective

Incentives lead to financial expenses for the business, which can therefore reduce overall profit.

Question 27

high risk strategies and FEATURE

Answer 27

High-risk strategies are autocratic management approaches used to influence employees to quickly accept and follow a business change. ‘

FEATURE: A business can utilise high-risk strategies to rapidly reduce employee resistance to change by influencing them to support a high-priority business transformation

Question 28

Manipulation as a high-risk strategy and FEATURE

Answer 28

Manipulation as a high-risk strategy involves influencing employees to support a proposed change by providing incomplete and deceptive information about the transformation.

FEATURE: . This strategy aims to coerce employees to agree with and quickly accept the proposed change by selectively omitting information to distort their thoughts.

Question 29

Threat as a high-risk strategy and FEATURE

Answer 29

Threat as a high-risk strategy involves forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to do so.

FEATURE: managers could implement threat by making statements that aim to intimidate employees and exploit typical fears that they hold, including losing their job and financial security.

Question 30

pros/cons of high risk strategies

Answer 30

Pros:
Change is implemented in a way that the manager desires as there is no employee input

High-risk strategies are effective in crisis situations where change must occur rapidly.

Cons:
Implementing these strategies may lead to the development of a negative corporate culture in the future, due to long-term distrust

There may be low morale in the workplace, and employees are more likely to leave or be absent from work.

Question 30

Lewin’s Three-step Change Model and FEATURE

Answer 30

(Kurt) Lewin’s Three-step Change Model is a process that can be used by a business to implement change successfully.

FEATURE: The three stages of this process include unfreezing the business, so the need for change can be identified and communicated to relevant stakeholders, changing the relevant processes or practices, and refreezing the business, so the change is adopted and maintained in all areas of the business.

Question 31

The unfreeze step and FEATURE

Answer 31

The unfreeze step involves moving a business to a state where stakeholders are prepared to undergo change.

FEATURE: During this stage, a manager communicates the need for, and benefits of the change to gain support from stakeholders.

Question 32

The change step and FEATURE

Answer 32

The change step involves moving a business towards its desired state.

FEATURE: Managers can provide ongoing support and resources to equip employees with the required knowledge and skills to implement the change, reducing the stress associated with new practices, allowing the change to be implemented smoothly.

Question 33

The refreeze step and FEATURE

Answer 33

The refreeze step involves ensuring a change is sustained within a business for the long term.

FEATURE: During this stage, managers should introduce new policies and job descriptions, or implement other strategies to reinforce the new culture and solidify it, as part of the business’s daily operations.
Management should constantly monitor and evaluate the change during this stage, ensuring that business is performing as desired.

Question 34

Effect of change on owners, pos/neg effects

Answer 34

Owners are the individuals that establish, invest, and have a share in a business, often with the goal of earning a profit from its operations.

pos effects:
1. A successful business change can provide a business owner with an increased return on their investment and greater financial security.

2. Business change can provide opportunities for business owners to use their leadership skills to connect with employees and develop stronger interpersonal relationships.

neg effects:
1. If change is unsuccessful, a business owner may experience personal and financial implications.

2. A business owner may become overwhelmed and stressed by the increased workload and responsibilities that may be associated with business change.

Question 35

Effect of change on managers, pos/neg effects

Answer 35

Managers are the individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives.

pos effects:
1. Business change can provide opportunities for a manager to develop new skills or advance their career.

2. A business may provide a manager with financial and non-financial rewards if the change is successfully implemented.

neg effects:
1. Increased workloads associated with change can lead to stress which may negatively impact a manager’s wellbeing.

2. If a business change is unsuccessful, a manager may lose their job and financial security.

Question 36

Effect of change on employees, pos/neg effects

Answer 36

Employees are the individuals who are hired by a business to complete work tasks and support the achievement of its objectives.

pos effects:
1. Employees may be provided with new responsibilities and opportunities for career advancement that improve their motivation and overall job satisfaction.

2. If a business change is successful, employees may experience improved job and financial security.

neg effects:
1. A business change may require employees to develop complex skills and learn difficult processes, which may increase stress levels and negatively impact their wellbeing.

2. If a business change is expected to result in redundancies employees may fear for their job or financial security.

Question 37

Effect of change on customers, pos/neg effects

Answer 37

Customers are the people who purchase a business’ goods or services.

pos effects:
1. If change improves the quality of a business’s goods and services, customers may experience increased satisfaction.

2. Customer satisfaction may increase if the change allows the business to offer lower prices for its goods and services.

neg effects:
1. A business that sources cheaper inputs to reduce business costs may compromise the quality of its product, leading to customer frustration and reduced satisfaction.

2. Customers may be dissatisfied if a business change increases the price of its products.

Question 38

Effect of change on suppliers, pos/neg effects

Answer 38

Suppliers are the individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.

pos effects:
1. Supplier demand may increase if a business requires a greater amount of resources
to meet its production needs.

neg effects:
1. If a business decides to switch to a different supplier or discontinue a product, a supplier’s sales may decrease due to a lower volume of orders from the business.

2. A business change may require its suppliers to involuntarily adjust their processes to meet the new demands of the business.

Question 39

Effect of change on general community, pos/neg effects

Answer 39

The general community are the individuals and groups who are impacted by a business’s operations and decisions, often because they are located in close proximity to the business

pos effects:
1. If a business change creates job opportunities, local employment rates may increase which can improve the overall wellbeing of society.

2. Business change that involves opening
   or expanding into a new area can increase customer traffic and sales for surrounding businesses.

neg effects:
1. A business change that results in redundancies may increase local unemployment rates and poverty levels, thus negatively impacting societal wellbeing.

2. If a business change involves store closure or relocation, customer traffic and sales for surrounding businesses may decrease.

Question 40

CSR

Answer 40

Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

Question 41

Considering employees, change & consideration (2x) & other considerations

Answer 41

Considering employees involves a manager addressing factors that promote staff wellbeing during periods of business change.

CHANGE:
* Downsizing, store closures, or the introduction of new technology, which leads to employee redundancies.

CONSIDERATION:
* Offering outplacement services to help employees find alternative employment.

CHANGE:
* Introducing new equipment and machinery that employees must adapt to

CONSIDERATION:
* Providing extra training and support to employees so they understand their new roles and responsibilities when adapting to new business practices.

EXTRA CONSIDERATIONS:
* Reallocating employees to different roles (maintain job and financial security)
* Engaging in two-way communication to help reduce any misunderstandings or anxiety related to the redeployment

Question 42

Considering general community, change & consideration (2x) & other considerations

Answer 42

Considering the general community involves a business reducing or eliminating practices that are detrimental to the wellbeing of society.

CHANGE:
* Changing suppliers

CONSIDERATION:
* Choosing local suppliers to create employment opportunities and improve the local economy.

CHANGE:
* Introducing new technology that replaces human labour.

CONSIDERATION:
* Redeploying employees to other roles in the business to minimise unemployment rates.

EXTRA CONSIDERATIONS:
Globally sourcing inputs for the operations system –>
* Sourcing materials from businesses that provide employees with fair pay and working conditions.

Question 42

Considering environment, change & consideration (2x) & other considerations

Answer 42

Considering the environment involves a business reducing the negative impacts of its activities on the planet.

CHANGE:
* Introducing new technology

CONSIDERATION:
* Purchasing technology that reduces the number of errors in production can minimise the amount of waste a business generates.

CHANGE:
* Changing suppliers

CONSIDERATION:
* Choosing a local supplier to minimise carbon emissions produced during transportation and support the local economy.

EXTRA CONSIDERATIONS:
Building a new facility –>
* Building a facility that creates minimal waste and pollution during construction, utilises sustainable and energy-efficient practices, and has positive impacts on local wildlife and the overall environment.

Question 43

Explain the importance of reviewing KPIs to evaluate the effectiveness of business transformation: (4 marks)

Answer 43

Key performance indicators (KPIs) are criteria that measure a business’s efficiency and effectiveness in achieving its different objectives.

Following a business change, one reason why it is important for a business to review its KPIs is that it allows the business to objectively determine whether the transformation successfully achieved set objectives. Furthermore, another reason why reviewing KPIs after a change is important for a business is that it may identify that the change has negatively affected another area of business performance.

Therefore, this indicates to the business that the change must be more carefully considered so the business is able to achieve its objectives. Finally, a third reason why reviewing KPIs is important is that whether the business change is successful or not, KPIs can enable a business to determine its future course of action as the quantifiable data can provide a holistic understanding of each area of business performance.

Thus, a business can identify both strengths and weaknesses in its performance and establish objectives for the future.

Question 43

By reviewing KPIs, a business can evaluate the effectiveness of its transformation by:

Answer 43

• analysing the size and extent of its change.
• identifying whether the change has successfully achieved its objectives.
• identifying whether the change has negatively impacted another area of performance.
• determining whether more effort and time are required for the change to achieve desired objectives.
• considering alternative management strategies to achieve the desired result or improve areas that were negatively impacted by the change.

Question 44

what KPIs should a business assess, analyse and examine if:

1. they have implemented strategies to improve employee morale
2. opening up a new store location

Answer 44

1. If a business that has implemented strategies to improve employee morale:
   how: celebrating employee birthdays and fostering collaboration through teamwork

what KPI should be analysed:
rates of staff absenteeism and level of staff turnover following the change

why:
to determine the overall success of these strategies.

A business that opens a new store location:

what KPI should be analysed:
percentage of market share and number of sales

why:
to evaluate the effectiveness of its transformation