Change+Management

Managers face many challenges when dealing with change within an organisation. As Burnes (2005) suggests managing and changing organisations is becoming more difficult as well as more important. In today's fast paced business environment, change management needs to become a core competence if an organisation wants to remain viable in the long term. The ability for an organisation to adapt to and make the most of new market conditions is a vital part forming a competitive advantage and failure to do so often results in the ultimate failure of the business. The importance of effective change management ranges across all parts of a business, from the corporate decision making process right through to the point of sale. =The Nature Of Change=

Most organisations exist in a pattern of long periods of equilibrium and short occurrences of discontinuity. Depending on what period of the cycle a business is going through often determines the nature of change that they are facing. Incremental change often occurs during periods of equilibrium while transformational or revolutionary change occurs during periods of disequilibrium.

Incremental Change

 * Associated with periods of equilibrium within an industry
 * The main focus is on doing things better
 * Process of continuing tinkering, adaptation and modification
 * Not necessarily small as they can often involve large amounts of resources during their implementation as well as effect large groups of people within the organisation (Nadler & Tushman, 1995)
 * Works on the philosophy of 'kaizen', it builds on previous accomplishments to achieve continuous improvement throughout areas of the business
 * Overtime it can be cumulative and result in deeper organisational change

Transformational/Revolutionary Change

 * Occurs during periods of rapid development within the market
 * Focuses on doing things differently or even doing different things rather than better
 * Brings an organisations core competencies under scrutiny as the external environment changes
 * Across almost all industries these periods of rapid change are occurring more often
 * Difficult for companies to come through periods of change, those which don't invariably fail to survive

Anticipating change
It is possible for organisations to attempt to anticipate when their organisation needs to change, both incrementally and revolutionary. Companies that are constantly and pro-actively seeking out potential opportunities and threats within their external environment are much more effective at anticipating periods of change and as a result are much more likely to form a competitive advantage when the necessary change occurs. Alternatively companies can take a reactionary approach to change. This means that they only change when it's a necessary for them to do so in order for them to still be viable within their industry. By recognizing the need to change sooner, managers have more options available to them which can result in several benefits. These include:
 * More time for planning
 * The ability to involve more of the organisation which can result in an easier transition to the change
 * Can take more experimental and innovative approaches which can then be trialled and improved upon several times
 * They could also benefit from a first mover advantage and influence the market themselves giving them a significant competitive advantage over competitors

Tuning

 * Anticipatory and incremental
 * No immediate need to change
 * Seeks to improve ways of achieving and defending the organisations strategy
 * Helps to maintain any competitive advantage the organisation is currently enjoying
 * Occurs internally to ensure a constant alignment between operations, strategy and the external environment

Adaptation

 * Reactionary and incremental
 * Can be in an attempt to counter a new competitive advantage a rival organisation has
 * Involves doing more of the same but better i.e. finding new efficiencies or adapting to a change in resources available

Reorientation

 * "Redefinition of the enterprise" (Hayes, 2010)
 * Proactive and often initiated by the anticipation of a future transformational force in the industry
 * Done in an attempt to ensure the effectiveness of the organisation in the future
 * Often done to try to create a first mover advantage
 * Need for change may not always be obvious to everyone in the organisation meaning executives and managers have to create a sense of urgency within the organisation themselves

Re-creation

 * Reactionary and transformational
 * Involves a change in the organisation's basic elements and effects all parts of the business
 * Breaks the organisations frame can often result in the destruction of some elements of the business (Nadler & Tushman,1995)
 * Can be disorientating to people within the organisation and as a result is difficult to manage and carry out successfully


 * The ‘Congruence Model’ **

Nadler’s (1995) ‘Typology of Organisational Change’ model (above) had severe restrictions and was incredibly vague. Furthermore, its basic structure and general limitations enhances why this model is no longer congruent with present times. Nadler and Tushman’s newer model, updated in 2012, advances on seventeen years of knowledge, making this model much more effective and more sophisticated than its predecessor.

The model ‘helps us to understand the dynamics of what happens in an organisation when we try to change it’ (Cameron, 2012). The model treats an organization as ‘sets of interacting sub-systems that scan and sense changes in the external environment’ (Cameron, 2012). Viewed below in Figure 1, Nadler and Tushman’s model shows the transformation that an organization can go through to manage change. This is done by turning the 'Strategy' (inputs, resources and environment) into 'Performance' (activities, performance of the system, improved behaviour/attitudes and other outputs) via analysing the core influences listed in the middle.



By analysing each aspect of the transformation process carefully and interpreting its effectiveness for each company, it can be a very useful tool. Below is a break-down of each aspect.

The ‘work’ element is all about understanding, processing and delivering company goals and objectives. It looks into the core tasks that the company needs to complete in order to maintain their brand values and reputation when managing change. Alienating stakeholders is something companies do not want to do, therefore by ensuring they integrate change in a way which does not significantly impact on the business as a whole, would be ideal.
 * Work **

The general attitude and company ethos is assessed in the 'Culture' aspect of the model, as aforementioned it will assess to see whether or not the proposed changes compliments and reflects on the brands image. 'Culture' also stresses the importance of communication, leadership style used by managers that will be affected by the changes.
 * Culture **

The model highlights considerations for the hierarchical changes, rigidity of the company’s base platform (office location, equipment, storage, stock) and employee’s level of authority. Adapting to the necessary requirements (possibly even laws) needed to be approved in order to advance and let the changes occur as smoothly as possible.
 * Structure **

Change in roles, who is in charge of what tasks and changing departments are just some of the considerations that need to be analysed. This is regarding people change and management, ensuring that the staff, managers and directors are all happy with the decisions being put forward. Furthermore, the ‘People’ aspect will look into ethical issues and not breaching employee regulations.
 * People **

In conclusion, effective implementation of change management using the ‘Congruence Model’, can only work if all four aspects are simultaneously ‘attended to’ (Cameron, 2012). The integration of the four aspects ‘stimulates thoughts’ (Cameron, 2012) in order to establish what changes need to be done and when.




 * Moet & Chandon - Case Study **

An example of a company that has utilized this model successfully, by applying ‘Work’, ‘Culture’, 'Structure' & ‘People’ is Moet & Chandon. The luxurious champagne company are renowned for their elegant and sophisticated premium alcohol. Over the years, they have introduced a model based on Nadler and Tushman’s ‘Congruence Model’ known as the ‘M&C Global Brand Strategy’. This model links brand communication with ‘a cinema platform’.

//‘Moet being the champagne of choice of movie stars and the reference for celebration in cinema’ (Moet, 2014)//

Their model combines the strength of their resources and facilities 'Strategy' in order to integrate a model that enhances their output 'Performance' by reaching out to and engaging with a younger target audience. Moet & Chandon aim to reach a younger audience through integrating their renowned image and reputation of premium champagne with the online film industry, by using a ‘cinematic’ platform. The ‘cinematic’ platform is what Moet & Chandon uses to link their product with a younger more sophisticated industry. Linking the industries by hosting Oscar-style events and screenings of film premiers as well as having ‘taster’ sessions of their product range beforehand. This is the result of all four aspects coming together consequently forming these ideas, ideas which will enhance and sustain their brand reputation.

Following the Congruence Model, they have the facilities and resources (as required) to go on and make this campaign an effective and original method to attract their newly established target market. By using this model, the company are recognising the change of consumer buying behaviour and increased demand in the luxury alcohol sector. As a consequence, Moet & Chandon have stabilised against very intense competition from the likes of: Bollinger, Veuve Clicquot and Dom Perignon, which is a reflection of their share price from 60 euros (back in 2009) to 140 euros (at the present date, 2014) as well as increased market share.

The models integration into Moet & Chandon has meant that these four elements have come together as a change management strategy that has continued allowing them to fight rival companies and remain competitive. Furthermore this sort of approach prepares companies like Moet & Chandon for change within such a highly competitive industry. By adapting to a change management strategy that uses resources that they already had, it meant that the implementation was fairly undramatic yet very necessary. Shifting to a younger audience means they can easily modify and more importantly prepare themselves for appropriate marketing and promotional strategies at a younger audience. Using viral marketing campaigns and social media will be a more effective way of targeting a wealthier younger audience which will boost their financial earnings further.


 * ‘Positioning of Change’ Model **

As a counter argument to Nadler and Tushman’s model, the ‘Positioning of Change’ model (as shown below on //Figure 2//) created by Reiss, breaks down change management slightly differently. This is done by establishing all the ‘core conditions from social entities’ (Reiss, 2012). Be that something as significant as a change in economic or political policies to personal troubles and individual experiences.



//Figure 2//
The idea is that he has created a tool to understand the relevant changes in people management, through integrating 3 core elements which overlap. The larger the problem (higher up the graph) the more people are likely to not only be required to help make the change, but also more time is needed as well as an increase in the amount of organisation to see effective change. The categories are:

The society level identifies threats or changes within a macroeconomic environment, this could be anything from natural disasters, attitudes or cultures. These larger external threats are the most fundamental factors that consider how meaningful and efficient the proposed strategy will be for that company. In recent years, globalisation and technological impacts have drastically changed the way businesses manage and integrate change in order to better their company for the future.
 * Society **

The organization level is more complicated and is broken down further (shown on //Figure 3 below//) in more detail.
 * Organization **

The individual level could be something like getting married or being offered a job promotion. These personal differences can effect the performance and productivity among the staff for the company. Training efficiency, teamwork and change in the attitude among the staff are also areas which need to be measured to get the most from managing change. The HR and operations departments can combine in order to assess and record the impacts and affects that the change is having based on pre and post changes. This is required in order to evaluate if the company needs to change more, less or remove the strategy all together.
 * Individual **

//Figure 3//

The ‘Organisation’ level of Reiss’ ‘Positioning of Change’ model is broken down even further as shown above (//Figure 3//). The 3 parts round the outside are the most influential areas which consolidate with the company’s core set-up and mission statement which is the 'Corporate Change' element. Below is an explanation of each section in more detail.

Drawing attention to and focusing changes that occur within the market at all times. Constantly analysing where and when the next big event or influence will come from and act accordingly to meet the demands from all the companies stakeholders.
 * Market Focused Change **

Assessing if the company has the tangible assets to progress in the future when a new strategy is proposed. This could be done by either looking into stock, equipment, machinery, land or offices that may need to be added or removed. This will allow the company to run operationally smoother and more effectively if assessed correctly.
 * Resource Focused Change **

Chain of Command and Span of control are important areas that need to be assessed for suitability, when changing the structure of a business. Furthermore, looking into making sure all staff are aware of there responsibilities, who they delegate work to, their line of communication and identifying whether or not they have the necessary skills to carry on with their role in the company.
 * Structure Change **

Communicating with shareholders, projecting forecasts of growth for future and expansion strategies are all corporate decisions that a business must consider with their long term goals from a marketing point of view.
 * Corporate Change **

In conclusion, anything from system changes, human resources, financial budgeting, new company software, strategy implementation, customer promotion and/or the hierarchy of communication will all impact on the company. The 'Positioning of Change' model is aware of this and aims to take a slow and cautious approach when applying changes within a business, carefully assessing the level of risk which may occur due to changes before hand in order to introduce changes as effectively and efficiently as possible afterwards.




 * EasyJet - Case Study **

The ‘Organization’ element of Reiss’ ‘Positioning of Change’ model can be related and applied to EasyJet. EasyJet have changed all three areas of their core business over the years to develop an iconic brand in various sectors. From transport, to hotels, to flights, EasyJet can adapt Reiss’ model round their own business model. This is done through identifying and focusing their ‘Market’, ‘Resources’ and ‘Structure’ by analysing what they have and what they need. This has allowed them to prepare for inevitable changes that may occur in the future to any of their businesses. Be that internal or external, Reiss' model strongly emphasises that companies need to prepare for future change, regardless of how big or small it is, due to the long term impacts that might occur. EasyJet can either expand on their current range of products and services or ‘diversify’ even further. Diversifying is ‘a form of change management’ (Kenny, 2009) and is the idea that a company moves out of their core product sector and ‘shift to new markets, using new products or services’ (Kenny, 2009).

By diversifying, it has allowed EasyJet to incorporate a business model where the risks are spread across variety different sectors. This allows EasyJet ‘leeway’ if a certain part of the business where to start struggling or fail all together, then they will still have confidence in other areas to fall back on. By slowing building a portfolio of businesses, EasyJet have applied a model similar to Reiss’ incredibly efficiently and effectively thanks too slow and steady progress and careful analysis of their resources. The cheap airliner has been growing their operating routes across Europe since 1995. The two most significant influences that have affected EasyJet in the last 19 years has been technological and macro-economic change. Stelios Haji-Loannou (CEO) knows that technology is an area where EasyJet have a lot of their assets invested in and where they have also capitalised from very successfully in the past. Strong relationship agreements with Boeing, who supply the latest technology within their planes including logistical systems, distribution channels as well as methods for international communication purposes. These are all areas in technology that are vital to the success of EasyJet, areas which have been developed off the back of the 'Positioning of Change' model. Therefore, EasyJet need to maintain their drive in order to stay competitive and at the forefront of change management, against the likes of Ryanair who also offer customers a very similar set-up as EasyJet do.

Overall, the ‘Positioning of Change’ model is different to the ‘Congruence Model’ because it provides the company with a far more structured and logical approach to analysing change management, as it includes factors such as personal or macroeconomic factors.

=The Process Of Change Management=

Due to the fact that a state of perfect alignment within an organisation is immensely difficult to accomplish, Miles and Snow (1984) suggest alignment is instead a process which organisations are constantly going through in order to operate more effectively with the external environment as well as the internal elements of the business. This process is understandably difficult to manage regardless of whether a business is proactive or reactive when approaching change. There is never a guarantee that a change in an organisation will be successful and have a lasting impact on operations. If certain forces within the organisation are preventing gradual change from happening it may be necessary for the company to carry out more drastic planned change.

Lewin's Model For Change
Kurt Lewin (1951) suggests that periods of no change are not situations in which everything is stationary but that it's instead in a condition of 'stable quasi-stationary equilibrium'. This means that there are a constant set of both external and internal forces at play which have an effect on an organisations operations. This creates a forcefield in which there are both forces pushing toward change and those resisting change. Changes in these forces can then in turn effect the equilibrium in which the organisation exists. These forces can sometimes create a problem which needs to be balanced out in order for the company to continue developing. This can be done in two ways: they can either add to the driving force or they can attempt to diminish the opposing force. Lewin advocated the latter option which he argued would result in less conflict and ultimately result in a more sustainable change. Simply pushing the change through without addressing the opposing force will simply result in greater resistance making the change harder to achieve. Lewin's force field analysis is a useful tool for managers planning a period of change as it can help them build a picture of all the issues surrounding a change and in turn help them address them in an effective manner.

Lewin suggested a three step process for successful change which is still widely regarded as the underpinning of any subsequent model for change.


 * 1) Unfreezing - The first step of the process involves the organisation essentially destabilising the current balance between the driving and restraining forces. As stated above this can either be done by pushing the change through or by addressing the restraining forces in an attempt to lessen the influence they have over the force field. If it is an internal change, this can be done by alerting members of the organisation of the need to change and by creating a new vision which places the organisation in a better position which is beneficial to those effected (Kotter, 1996). If the change will effect external stakeholders the organisation can listen to any concerns and attempt to come to a compromise.
 * 2) Movement - This is the period in which the change takes place and is arguably the most difficult part to manage as the the success or failure of the change is often determined during this phase. It is here where the forces are rebalanced in order to form a new equilibrium which better aligns the organisation with their environment. The forces which are typically adjusted are often performance related (Ford and Greer, 2006) which means that typically movement involves the adjusting of beliefs and attitudes as well as the processes, systems and structures that exist within the business.
 * 3) Refreezing - The final phase of the process involves the reinforcing of the new processes and behaviours in order to maintain the change. This is essential if the organisation is to prevent the equilibrium from regressing to where it was before the change. Managers can use incentives and positive feedback to help ensure that the new practices are continued.

It is worth stating that more recent theorists (Dawson, 2003 and Kantor et al, 1992) have suggested that the third stage of the process is becoming less relevant in today's business environment given the speed at which change occurs. They suggest that in order for business to remain competitive they need to remain in a constant state of fluidity that is constantly willing to exist in a state of change as opposed to existing in a permanent state.

Change Within the Music Industry
Environmental factors can sometimes result in an industry wide change. The recent developments within the music industry provide a good example of this, with technology forcing all the actors within the industry to change many aspects of their operations. Before the internet the music industry was in a state of equilibrium in which featured:
 * 4 major record labels resulting in high market concentration
 * Vertical integration was central to their business model
 * High barriers to entry for new entrants

When the external development of the internet threatened their existing paradigm the major record labels were faced with a choice: adapt or perish. They did this in several ways, firstly they went on the defensive by filing lawsuits to try and prevent copyright infringement but this was only partly successful due to the open nature of the internet. This meant that a more radical change was necessary in order for them to survive. By following Lewin's model we can track the industries process of change. Firstly they had to destabilise the current balance of forces within the industry which proved a challenge considering the highly complex nature of the major labels operations. Many within the industry believed they could fight the piracy which plagued the industry but as continual falling profits proved this would not be entirely possible, this would have instilled the feeling of urgency required to start the unfreezing process. The movement phase is arguably still occurring as the industry is still transitioning to the new business models that the majors have had to develop and follow. The shift from selling music as a product to selling it as a service is still visibly happening with streaming services such as Spotify becoming increasingly popular with physical record sales still falling. It is arguable whether the process of refreezing will ever truly occur within the music industry but as the change in business model continues to develop it is likely that the industry will settle into a new equilibrium allowing for small incremental changes to help improve the operations of the majors.

Managing And Leading Change Within An Organisation
No matter what level of change an organisation is going through, it can have a profound effect on employees. This in turn makes effective management an essential component to implementing a successful change.

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In his TED talk, Professor Mueller Eberstein outlines a useful model for managing transition within an organisation which can be effectively applied to any degree of change. The model is made up of 5 stages:
 * 1) Identify vision - It is very important from the outset for any change to be clearly defined in order to prevent any ambiguity around the change arising. Setting out clear reasons for the need for change and creating clear and concise objectives for those involved to work towards is an important part of the identifying process.
 * 2) Clarify impact - In order to effectively implement a change it is important to understand all the potential impacts, both positive and negative, in order to capitalise on the benefits as well as lessen the importance of the drawbacks. By identifying any issues here it can help the organisation prevent them from worsening or even manifesting and help to ensure that employees are not only prepared for the change but also happy with it.
 * 3) Communicate - As with any decision in business which has an impact on employees, effective communication is essential. It is important for mangers to not only inform workers of change but also facilitate a dialogue between the employees and the management. This stage can then also help to feed into the first two and ensure that employees concerns are being taken into consideration throughout the process of change.
 * 4) Team up - Building a team that effectively works together to implement the change can help to ensure a successful transition. By having a team in which the members compliment one another who offer different perspectives can help create a more comprehensive and achievable strategy.
 * 5) Lead - In order to successfully implement the change, arguably the hardest part of the whole process, strong leadership is absolutely necessary. If employees see change filtering down from the management they are much more likely to implement the change themselves. By leading by example managers and actively striving towards completing the objectives set out earlier in the process, they will encourage those beneath them to follow and may even reduce the impact of any resistance towards the change.

Throughout the process, trust between employees and management is vital. If trust does not exist, employees will be more reluctant to embrace any change, especially if they feel that it may jeopardise their job. However, if trust does exist it is important for management to prove that it is not misplaced. They must ensure that employees concerns are actively and seriously addressed to allow trust to continue to grow.

Eberstein finishes his talk by stating that although leading and implementing a successful change is not easy, the more times you do it the better you will become at it. This is becoming increasingly important in today's business world with change management often being a major part of strategic planning given that the external business environment is constantly shifting to the point where organisations can no longer settle into a long term paradigm.

From the extensive research that Dr John Kotter has conducted in to change management with in business and has found that 70% of major changes within business fail due to the companies not taking a holistic approach to successfully implement the change (Kotter International, 2013). What he means by this is that business will focus on the individual parts of the business changing and not think about the business as a whole entity and what it wants to achieve. Kotter has identified an 8 stages process of leading change that will help organisations to avoid this high failure rate by becoming proficient to change.

By following these 8 stages of change, a business’s ability to regiment change in the future will be improved and the skill to adjust continuously and stay in competition with its competitors and remain successful will be enhanced. He is aware that change is not always possible due to many different factors which could include the costs being too high or the product or service just not being good enough. The first four steps of the process are about identifying and thinking of ways in which to change could be implemented. Stages five to seven are focusing on introducing these ideas to the business and the final stage ensures that the changes which have been implemented are permanent with in the business (Kotter, 1996).

The 8 Stages which he identified are: (Kotter, 1995), (Kotter International, 2012)

1. ** Establish a sense of urgency ** This stage has been introduced to inspire the employees and employers of a business to realise change is needed. Businesses should examine the business operations and the current market the business is operating in and be aware of the competition within this market. From this examination of the business they can identify if there is a crisis or one developing or discover potential prospects for the business to undertake.

2. ** Creating a guiding team ** Kotter developed this stage to ensure that companies will be aware that not one person, however competent is able to successfully implement change on their own. For the greatest chance of success a team should be formed which will have enough power and resource to lead change. It is the responsibility of the team leader to ensure the group works well together. As well as an effective leader the team should include member with vast knowledge of the business and its current operations and innovative and original individuals to help push the change.

3. ** Developing a vision and a strategy ** This next step is has the aim to create a clear vision to direct change towards. This overall vision helps to streamline the other decisions that need to be made. This vision will also motivate employees and ensure they are working towards the same goal which coordinates them to produce effective and efficient work. This clear vision will help a company to develop a strategy to achieve their overall goals. The vision must be imaginable, desirable, feasible, focused, flexible and communicable to ensure the best chance of success, (Kotter International, 2012).

4. ** Communicating the change vision ** The fourth step was developed to ensure that all member of an organisation understand and accept the changes that are being proposed. When implementing change many companies do not communicate this will all their employees which is a reason why change will fails due to the lack of communication and inconstancy in the work produced. Organisations should use every communication method available to ensure that everyone in the business is aware of the changes occurring, this include meeting, emails and company newsletters. Having a leader who is clear and concise with what the vision entails and what the expected behaviour from employees will ensure the continuing operations of the business. 5. ** Empowering broad-based action ** For this step the business will need to identify and remove any obstacles which can prevent or slow down the changes that are being implemented. This step is a good chance to identify systems or structures with in the business that have the ability to undermine the change. This could be the managers who have demonstrated that they are resistant to change and would be unwilling to cooperate. Solution to this can range from re-training to dismissing those who are unwilling to change. Kotter encourages through this step for companies to identify the risk takers and those with original none traditional ideas as these are the employees which will have the best ideas for change.

6. ** Generating short term wins ** Whilst organising and implementing a big change to a business it is important for companies to focus on the short term success that are involved in the process, these small wins that come with the change help a company to show they are on the right track to achieving the overall goal, this then in tern helps to increase moral and motivation with the team organising it. These wins show cynics and those against the change how successful they can be which makes it difficult for them to oppose the change. Kotter suggests objectives and goals should be set to achieve these short term wins otherwise they will not occur. These wins also take the pressure off the team as they can see the change strategy develop successfully. This goal also suggests that those who are most responsible for the achievement to the small wins should be recognised and rewarded for their hard work, giving employees something to work towards.

7. ** Consolidating gains and producing more change ** Often referred to as the don’t let up stage, this step focusses on implementing the changes in all areas of a business to increase the credibility of the changes. All areas of the business need to be reached this include changing all systems, structures and policies and do not work together and do not fit into the transformation vision. It is essential when developing changing that the company employees are being utilised efficiently therefore hiring, promoting and developing those members of staff that will successfully be able to implement the change vision.

8. ** Anchoring the new approach into the culture ** The final step is ensure that this new vision remains strong in the company, its design was to create better performance through customer and productivity orientating behaviour, more and better leadership and more efficient management. Changes no matter how big or small are always difficult to implement into a company and change its culture; managers must ensure that the changes stick. The connections between the old and new culture must be identified and from there it will be easier to link the two and make the changes. The changes which have been implemented can only be considered successful through the organization truly embracing the new values of the business.

Virgin Media's Re-brand and the Need for Change
In February 2007 Richard Branson's Virgin group combined three of their largest companies, NTL (a telecommunications company), Telewest (an internet and cable TV supplier) and Virgin Mobile (a mobile phone network) into Virgin Media. It became the largest Virgin company with 10 million customers and 13,000 employees, a far cry from Branson's early ventures and a completely different philosophy to his "small is beautiful" ideology.

With the merger came the great challenge of restructuring the resulting business in order to have a consistent culture running throughout all the aspects of the new business. The challenge was particularly apparent in NTL, a company with a dire customer service record whose staff weren't empowered or inspired to help customers. If the re-branding was to be a success a change was obviously needed.

Branson recognised the importance of having in place an effective management team in order to implement a successful change. Any managers who were sceptical or lacked confidence and enthusiasm for the change were considered as being counter-productive and as a result did not receive any empathy from Branson. This allowed him to build an effective team who were in a position to both empower staff underneath them and inspire them. He encouraged his managers to "find ways to inspire all employees to think like entrepreneurs" as he believed it would result in them taking more of an active interest in their work which would in turn lead them to work more effectively. In the case of improving Virgin Media's customer service he wanted to enable staff to be able to solve a customers problem in just one phone call. This involved reallocating certain resources so that staff were in a better position to immediately help customers, either by offering additional perks to their service or providing them with more information. This is an example of lower level staff being allowed to think for themselves and would have cut down on the levels of bureaucracy allowing for a more efficient service. This in turn had positive impacts for the consumer who was treated better. This small incremental adaptation of the businesses internal operations would of had a profound impact on all those involved in the change. Managers would no longer have to waste time on trivial problems allowing them to focus on more important issues, lower level staff would get more job satisfaction from the greater level of trust and responsibility being placed on them and customer's received better, more efficient service, all serving to improve the brand image and help Virgin make a success of the significant re-branding.