Change Management

Industry Analysis (Nando’s)

Brexit will have harmful economic effects on the operations of businesses in the UK depending on the nature of each industry. For example, Nando’s operates in the restaurant market that will likely experience operation problems due to the high demand for workers (Best Companies, 2019). Brexit will lead to restriction in immigration that will interfere with Nando’s performance since it is a labor-intensive firm. Brexit will limit the access of cheaper skilled workers, increasing its overall costs. Therefore, the high costs will lead to lower profitability (Coulter & Hancké, 2016). 

In the UK, Nando’s operations are growing. The restaurant chain intends to open additional 20 restaurants that will require extra 570 employees (Best Companies, 2019). Currently, Nando’s operates with 220 restaurants in 35 countries, managed by 6, 300 employees (Best Companies, 2019). The nature of its operations proves that Brexit will cause the organization to suffer due to restricted movement of its workers, leading to increased costs. In addition, absence of cheap labor will interfere with the growth and competitiveness of Nando’s (Best Companies, 2019). Therefore, the survival of Nando’s after Brexit remains at risk unless its leadership implements new measures to change the mode of operations.

How to Address the Problem (Change Management):

The company has to update its activities to increase efficiency and the performance of its workforce. Proper Human Resource Management (HRM) actions will lower the demand for labor and increase performance output per worker. If look at figure 1 The 7S McKinsey Model best describes the change strategy that Nando’s has to implement (Kirschenboim, 2018). 

• Strategy: a plan has to be developed by Nando’s that will require its commitment in training existing employees to ensure future uncertainty avoidance. 
• Structure: the chain restaurant has to implement HRM roles to lower the number of leadership participation required, reducing the demand for specialized managers. 
• Systems: the firm has to revisit operational procedures to make working processes simple, leading to speedier accomplishment of tasks.
• Shared values: build a high-performance culture that promotes the fundamental ethical values of respect and trust in order to guarantee excellent coordination among employees.
• Style: Nando’s has to embrace democratic leadership to allow employees to participate in decision-making. Through the leadership, the company has to build motivation models that encourage knowledge sharing, leading to enhanced efficiency in job performance. (Bhatti, et al 2012)
• Staff: Nando must upgrade its human resource practices to link employee capabilities and interests to the specific needs of the organization. The idea will boost motivation and work efficiency, lowering labor demand.
• Skills: the corporation has to advance workers’ skills to enable multi-tasking, which will reduce the number of workers required in each restaurant. Consequently, the uncertainty caused by Brexit will not affect its labor. 

The Action Plan:

Nando’s has to lead its workers towards a smooth transition. A rapid change management transition is required by giving employees incentives to adapt to future uncertainty such as Brexit. Incentives include monetary rewards for tasks well done as well as building the right philosophies and attitudes in employees. Incentives will create a sense of appreciation among the workers, enforcing a need for change in their daily operations. HRM transformation will lower the labor costs, it will guarantee Nando’s survival if Brexit happens. If we look at figure 2, The five dimensions of the ADKAR model include awareness, desire, knowledge, ability, and reinforcement. All points must be in place for change to be realized in Nando’s. (Hiatt,2006) 

• Awareness: Nando’s leadership has to educate workers on the fact that Brexit will remove the availability of cheaper skilled labor. Therefore, an HRM change must exist by allocating incentives to create more skillful employees.
• Desire: the organization has to influence employees to develop the urge and eager to embrace the new form of operation. For example, employees should genuinely accept a pay cut if the companies face problems. 
• Knowledge: Nando’s has to enable employees to execute tasks more efficiently by sharing information and providing training programs. This will encourage them to perform multiple tasks and become skillful.
• Ability: the organization has to turn this knowledge into action. For example, begin reassigning tasks, and it has to implement the new operations mode to allow employee to meet their full potential.
• Reinforcement: the leadership has to define high-performance and flexibility in the performance of jobs as core components that describe Nando’s culture. The idea will create a continuous cycle of the entire change process to make the effects permanent

My Learning Outcomes:

I personally feel that the case of Nando’s has provided me with an exceptional experience. The main lesson is my capability of predicting the impact of major events. I was also able to determine the required change needed for Nando’s. It is now clear to me that transformation in any organization starts with action taken by its leaders. Leaders are supposed to initiate any change management practice that is important for the company (Mehta, Maheshwari, & Sharma, 2014). Therefore, I’m fully aware that effective leadership is about being proactive to implement changes in a timely manner, decrease employees’ frustrations and managerial inefficiencies that may result in organizational losses. Using business models such as the ADKAR and Mckinsey’s 7s model will help address the problem and suggest an action plan when change is required in an organization .

References

References

Best Companies (2019). About Nando’s. Best Companies. Retrieved from http://www.b.co.uk/company-profile/?nando%27s-47682

Coulter, S., & Hancké, B. (2016). A bonfire of the regulations, or business as usual? the UK labour market and the political economy of Brexit. Political Quarterly, 87(2), 148–156. Retrieved from doi.org/10.1111/1467-923X.12245

Creately, (2019, January 29). The ultimate list of change management tools to drive change like a pro. Creately Blog.Retrieved from creately.com/blog/diagrams/change-management-tools-list/

Hiatt, J. (2006). ADKAR: a model for change in business, government, and our community. Prosci.

Kirschenboim, Y. (2018). Rabbi Hirsch values and principles and McKinsey 7 S model. Past and future in Israeli school management. Review of International Comparative Management, 19(3), 306-312. Retrieved from ideas.repec.org/a/rom/rmcimn/v19y2018i3p306-312.html

Mehta, S., Maheshwari, G. C., & Sharma, S. K. (2014). Role of leadership in leading successful change: An empirical study. Journal of Contemporary Management Research, 8(2), 1–22.Retrieved from

Prosci (2019). What is change management and how does it work?Prosci.Retrieved from www.prosci.com/resources/articles/the-what-why-and-how-of-change-management

Ravanfar, M. M. (2015). Analyzing Organizational Structure based on 7s model of McKinsey. Global Journal of Management And Business Research.