Lead and Manage Oorganizational Change Fitlife Gym

Question: Discuss about the Lead and Manage Oorganizational Change for Fitlife Gym. Answer: Identify the change Issues Identification of the strategic change and analysis of the organization objectives Fitlife Gym is known for its state of art facilities and privileges provided to the members of the club. The gym has also provided certification and also posses certified trainers for guidance in cross fit programs, kickboxing, weight training, aerobics and stepping. For getting a strategic edge, Fitlife needs to introduce fitness programs such as Posturology and guidance with nutrition and supplements. In order to implement this company needs to appoint an expert in Posturology from a certificated expert from American Posture Institute (API). For providing recommendations related to nutrition and supplement, the company needs to appoint personnel who have a diploma in nutrition from NutritionSociety ofAustralia(NSA), Dietitians Association ofAustralia(DAA) and similar institutions (Stanley 2016). Reviewing of the existing policies and practices against strategic objectives Current Policy Practice Contribution Limitation Hiring of training personnel for weight training, aerobics and cross fit training regime Certified professionals in the respective areas to provide guidance in the respective areas Lack of regulation due to increase in the number of membership Required Policy Practice Rationale Hiring more people in required fitness area Improve the attention given to the individual, members Taking feedback from the clients To know about the improvement which needs to be made in the facilities Hiring certified trainer for Posturology and nutritional expert To get an competitive advantage Table 1 (Source: Glass et al. 2013) Monitoring the organizational behavior and external environment on change strategies Organizational behaviors Impact Performance monitoring of trainers Improved quality of training Feedback monitoring of the clients Making improvement in the gym facilities Subscription monitoring of the members Increasing in revenue through new subscriptions Table 2 (Source: Gutnick et al. 2014) External Factors Impact Taxes Increase/decrease in then taxes will have a positive/negative impact on the revenues Competitors The company needs to implement changes based on the new entrants New technology Fitlife needs to keep its equipments updated with the latest technology Table 3 (Source: Phang et al. 2015) Indentify major operational change requirements Operational Change Requirements Rationale Updating the equipments based on new technology To keep the equipment updated to the latest technology Changing training regime by introducing Posturology and nutritional guidance To be able to compete with the existing market Keeping the price of the service competitive This is important to be able to compete with the new entrants as it is more likely for them to keep the price more competitive Sourcing of suppliers for best price To obtain then equipments at a lesser quote and positively affect the revenue generation of the company. Table 4 (Source: Buckworth 2016) Review and prioritize change requirements The main priority, for the development process should be given to the various types of the changes that are to be made in the training program already stated in the project. The priority should be also given to the upgrading of the equipments based on the modern technological innovations. In order to ensure then best price available from the suppliers the company should rely on the old suppliers and opt for the best price (Buckworth 2016) Develop change management strategy Undertaking cost benefit analysis Category (Cost) Cost Rent $ 1500 Utilities $ 560 Wages $ 3875 Gym Equipment $ 1000 Marketing $ 1300 Total cost $ 8235 Table 5 (Source: Created by Author) Category (Benefit) Cost Revenue from membership fees $ 8000 Revenue from Yoga Studios $ 2000 Income from fitness DVD production $ 1200 Revenue from sale of online sporting apparels $ 750 Revenue from Kickboxing subscriptions $3500 Total of category $ 15450 Total Benefit $ 7215 Table 6 (Source: Created by Author) Undertake risk analysis to address potential barriers to change Barrier Likelihood Impact Consequence Risk Level Risk Ranking Risk Mitigation Legal Moderate Tax Increase in the cost Average 3 Knowing about the government policies from beforehand Technological Normal Quality of equipment Reduced interests of the members Low 2 Making sure to use upgraded of equipments Financial Moderate Bearing Cost of the expenditures Availability of capital High 4 Using budgeting for optimum usage of the financial resources Competitors and new entrants High No. of club membership Increase/Decrease in club ownership High 5 Keeping the strategies up to date Table 7 (Source: Lawrence 2014) Schedule of change management Task No. Project phase Start Completion 1 Hiring of training personnel for weight training, aerobics and cross fit training regime 1/7/2016 3/8/2016 2 Updating the equipments based on new technology 4/7/2016 6/8/2016 3 Hiring certified trainer for Posturology 2/7/2016 3/9/2016 4 Sourcing of suppliers for best price on equipments 7/7/2016 9/10/2016 5 Advertising campaign for club membership 9/7/2016 11/8/2016 6 Hiring certified trainer for and nutritional expert 9/17/2016 11/8/2016 7 Hiring instructor for dietary supplements 11/12/2016 11/24/2016 8 Financial budgeting for cost components 12/12/2016 12/24/2016 Table 8 (Source Created by Author) Task Name Start End Duration (days) Task 1 1/7/2016 3/8/2016 61 Task 2 4/7/2016 6/8/2016 62 Task 3 2/7/2016 3/9/2016 31 Task 4 7/7/2016 9/10/2016 65 Task 5 9/7/2016 11/8/2016 62 Task 6 9/17/2016 11/8/2016 52 Task 7 11/12/2016 11/24/2016 12 Task 8 12/12/2016 12/24/2016 12 Table 9 (Source Created by Author) Assign resources and metrics to the change management project Parent Task Subtask Labor Capital Cost(AUD) Time Outcome Hiring Activities Hiring of cross fit trainers Hiring of supplement experts Hiring of posturolgy expert Trainers with appropriate certifications from different industries Human Resource $ 3875 61 Days Improvement in the quality of service Innovation strategies Introducing newer equipments Introducing new machines such as Matrix G7 S70 Leg Press, Kamachi Multi Gym equipments and elliptical cross New tools which matches with the latest development in the equipments $ 1000 62 Days Improving the quality of equipments and attracting new member subscriptions. Table 11 (Ahmad 2014) Reporting Protocols Reporting Protocols Stakeholder 1 Stakeholder 2 Stakeholder 2 Stakeholder 4 Outcomes Improving the quality of the services Improving the quality of the training Improving the infrastructure Improving club membership Key Message Improvement based on the quality of the equipments and technologgy Sourcing of the trainer for the appropriate exercise Making expansion opportunities in the existing facilities Advertising about the availability of the new products and focused guidance for training Channel Suppliers Communicating with the training institutes for sourcing appropriate trainers Communicating with the board members Media, Internet When/Frequency Half- Yearly Basis On yearly basis 5 yearly basis Weekly basis Table 12 (Source Created by Author) Change management cycle The change management cycle involves the following process Preparation for change in various type of areas such as hiring of then trainers Planning of then change with the use of techniques such as Gantt chart and milestones analysis Implementation of the change process by the reviewing the time and the cost involved Sustaining the change through forecasting the benefits with tools such as payback period, IRR and capital budgeting techniques Obtain approval from the business change manager The approval from the business change manager needs to be taken in form of email and HRMIS. Delivering communication plan The communication plan should be able to flow in various departments of the management. It is important that the communication process take place with the stakeholders of the FitLife. The key point, which needs to be discussed with two stakeholder of the company, is discussed below as follows: Michael Abrams (Director and CFO of Fitlife) Some of the key points which need to be discussed with the CFO and the director of FitLife, which needs to be discussed, which includes the following key points: Proposing the changes which needs to be made in the equipments for the purpose of making improvement in accordance with the latest technology available in the market Preparation of the budget analysis and the presenting the same to the chief financial officer clearly stating about the various type of the cost involved in financing of the change management activities. Making scope for the changes required for various type of the improvement opportunities such as the trainer hiring cost, cost involved for therapist and the hiring of the nutritional experts Estimating the cost of the various type of the expansion activities in the health centers The CFO should provide the guideline for reducing the cost involved in the business. Some of the opportunities for the reducing of the cost involve in the sourcing of the suppliers for the newer equipments. As per the cost benefit, analyses previously calculated the company would be able to assess the areas of the higher cost. As per the cost benefit analysis it was found that, advertising expenses involved a higher amount of cost than the other cost components. The company needs to put more focus online for the purpose of minimum cost allocation. Lewis Jaffe(Independent director) Some of the key points discussed with the independent stakeholder of the company are discussed below as follows: Discussing about the plans related to the various types of the change management process relating to the need for improving the number of the subscriptions in the fitness centers. The meeting should also discuss about managing of the threat due to the new entrant of and discussing the changes, which needs to be made in the several type of the strategic opportunities such as hiring of therapists for the Posturology and expert guidance for dietary supplements and nutrition. The various types of the change management process should be based on the schedule prepared for the implementation of the same and the effects of the various changes needs to be discussed with the stakeholders of the company. Monitor and adjust changes for the activities Performance gaps Parent Task Subtask Labor Capital Cost (AUD) Time Actual Outcome New Outcome Hiring activities It was found that the appropriate supplements experts lacked relevant experience in the fitness industry Difficulties in the sourcing of quality trainers It was observed that the highest amount of the cost involved was in the hiring of the trainers $ 3875 The time required is also more than two month which is observed to be one of highest New trainers in cross programs, supplements experts, posturology experts Excluding the experts in the supplements Innovations Strategies Problem in sourcing the suppliers giving the best price for products based on the newer technology Availability for the appropriate supplier and lack of knowledge of the latest innovations The cost involved was significantly high. The capital required need to be adjusted with the sourcing of the new suppliers in order to keep the cost under $1000 $ 1000 Then time required is also more than two months and this need to be significantly reduced due to the threat of the new entrants in the industry Improved facility according to the latest technology Increase in the budget for the newer equipments to $2500 for a particular month Table 13 (Stanley 2016) Risk management outcome Risk Root Causes Risk control measures (Actions to be taken) Monitoring Procedures Responsible Person Timeline Availability Limited availability of the staffs Sourcing from the different institutes conducting the diploma courses Addressing the risk to the board of directors Human Resource manager 1 month Availability of capital Increased costs involved in the hiring of the trainers an d the new equipments Sourcing of the suppliers for the new equipments for the purpose of selecting of items on best price possible Addressing the risk to the board of directors and monitoring of the same Chief financial officer 2 months New Entrants Low cost margin set by the new entrants in the market Keeping the membership costs competitive enough to and making innovative change in the services provided by FitLife Addressing the risk to the board of directors and monitoring of the same Chief operating officer 3 months External Risk Rise in the tax level due to change in the various types of monetary an d fiscal measures taken by then Government of Australia Forecasting of the risk from beforehand and making necessary changes in the price level according to the changes k nth economic measures Analysis of the stock prices of the relevant competitors in the fitness industry and regularly monitor the stock price of the various types of the other competitors existing the market Financial manager 6 months Table 14 (Source: Pearson et al. 2013) Reference List Ahmad, S.H., 2014. 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