Report on Organisational Change: A Case Study of Australia Post

BABU RAM ARYAL
CQ UNIVERSITY, AUSTRALIA

 Australia Post Camberwell North | Camberwell Shopping
                                                              

Executive Summary
The report evaluates the change management strategies, drivers and strategies to overcome resistance to change by taking the case of ‘Australia Post’. The case is selected to identify various reforms and changes implemented by the Australian Post. To analyse those changes and reforms, the report concentrates current annual reports with key organisational performances, challenges, governance, and the strategies it has followed. Moreover, it reviews internal news releases and external media sources such as newspapers/magazine and academic journals. Overall, the report finds the significant reform or change in Australia post. Moreover, it identified  globalization, networking, advancement in digital technology and transformation leadership are the major driving factors that contributed to the reform of the Post. Likewise, Australia post’s program on gender parity pay, flexibility, corporate social responsibility, and performance-based culture assisted to overcome resistance to change. Ultimately, ‘future ready strategy’, ‘two-speed postal service’ ‘MyPost Digital Mailbox’, and joint venture program with Aramex, networked with Qantas are the alignment of its future strategies to manage change and innovation to lead the business in global environment.


The major objective of this report is to examine and evaluate the organisational change based on the case of ‘Australia Post’. Moreover, it identifies various reforms and changes implemented by the Australian Post by analysing current annual reportsandinternal news releases and external media sources. Overall, to achieve the goals and objectives of the report, the first part of the report will outline significant reforms or changes that is implemented by Australia Post. Secondly, it will demonstrate the driving factors that contributed to the reform of the Post. The third part of the report identify and analyse the people developmentstrategies which are implemented to overcome from resistance to change. The fourth part of the report discusses the alignment of its future strategies to manage change and innovation to lead the business in global environment. Finally, the lesson learnt will be summarised after analysing the whole case study.

1.1.           Background of the Australia Post

The Australian Postal Corporation which was formerly known as ‘Australian Postal Commission’ commenced in 1809. It is one of the significant government-owned corporation which provides ‘postal services’ in Australia. According to Australia Post Annual Report (2003), “the Postal Act of 1825 allowed the governor to fix postage rates and appoint postmasters outside Sydney, enabling the first organised postal service”. It began the deliveries of the letters in 1828 and in 1831, it starred to posting in boxes. Nowadays, Australia Post collects, processes, and distributes letters for the entire Australian community and overseas. It also offers bulk mail delivery services for businesses and community organisations and provides research, advice, consumer list rental, and profiling and segmentation of services to help businesses target their objectives (Annual Report, 2017).


Back to the 1901, Australia Post merged into postmaster-general’s department (PMG) which was responsible for domestic telephone operation and telegraph. Later, it introduced airmail service and 4-digit postcode system in 1914 and 1967 respectively. In 1989, it was corporatized and became Australian Postal Corporation under Australian Postal Corporation Act (1989). In 2005-2006, all the services and goods (except 250 grams of letters) by Australia post were sold in competitive market and started to work in joint ventures logistic companies including Sai Cheng Logistics International, China Post. In 2008, it had given the authority to check quarantine in parcels and packets.
Australia Post set to introduce live tracking for letters and ...
In 2010, Australia Post initiated major change when it appointed Ahmed Fahour as CEO and MD. This year the post announced “Future Ready” strategy which drastically transformed the Post into a far more sustainable customer driven, high performance, and financially viable business. This program had three major strategies: (1.) build a world-class parcel business, (2.) building physically and digitally sustainable communications business, and (3.) and build a multi-channel customer trusted service (Annual Report, 2013). Likewise, in 2012, it allocated supplementary budget to secure its future. In 2014,it launched ‘two-speed postal service’ according to the implementation of ‘future ready’ strategy (Annual Report, 2014). This service reduced speed service at a lower cost and grew parcel business.

The next significant change is that in 2015, Australia post started to provide all the customers different services including express mail services, priority service and regular letter service which operated at range of prices, speeds and frequency. Another program which is most popular is ‘MyPost Digital Mailbox’ which is secure and free online portal. Additionally, it encouraged to electronic communications and online payment of bills in place of counter bill payment method. In this way, the Post earned $337 million only in parcel services (Annual Report, 2015). The differentiation strategy which is also supported by government created ‘trusted services’ and provided broader identity services, foreign exchange, financial services and payments, insurance and travel services as well as passport applications(Cummings, Bridgman & Brown, 2016).Thus, it provided those services to over 800000 retail customers and 750 organisations every day.
Australia Post TravelSIM

Delivering of eCommerce program is noteworthy in Australia Post which make the business easier to sell online and to collect and return their purchases/products. Digital technology empowered and sophisticated to the customers to access services and information(Gilani, Kozak & Innes, 2018). Ultimately, 75% of the parcels Australia post delivered were generated by an online order (Annual Report, 2015). Moreover, the same year, the government had announced its ‘support for the regulatory reform in letters service’.  This planned reform categorized the priority service and regular services, however the post was in great loss in 2015.

In 2016, it returned to profit by restructuring and providing strong services in parcel and courier. It reduced potential losses of A$ 138 through reformation.Later, this year, it started joint venture program with Aramex, networked with Qantas airfreight and invested majority in Mail plus as well as digitalised the National Police Check process. Consequently, it exceeded 94% on time targeted delivery of letters and reduced carbon emissions by 17% (Annual Report, 2016). Moreover, it identified 7,950 postal routes to work by motorcycles, bicycles and electric-assisted cycles. According to Annual Report of (2016) it generated revenue of $ 6.562 billion through the handling of 4.02 billion mail items.
Coronavirus travel bans to delay Australia Post deliveries reliant ...
The second month of 2017, CEO Ahmed announced his resignation because of his excessive comment on high salary of $5.6 million a year. In 2016/2017 the post has launched the strategy of ‘Everyone, Everywhere and Everyday’and in 2017/18 it iscontinuing the ‘Tomorrow Strategy’by ensuring more easy safe online shopping and help small business to grow. In 2018, according to Bob chief operation officer of the Post, “it is running development programs for all 25,000 frontline employees across the eCommerce Delivery business, focusing on leadership, empowerment and customer mindset (Annual Report, 2017, P. 35).”


Kuipers, Higgs, Kickert, Tummers, Grandia& Van der Voet (2014) explore the public organisations in their research and identified the technological advancement and digitalisation are the driving forces for change in any organisation.  Furthermore, Anand&Barsoux (2017) focusing on leaders argue that the organisation should establish change priorities by addressing three key factors: the underlying quest, catalyst for change, and capabilities which are essential for change. Thus, the Australia post digitalised its business and developed world class-delivery and eCommerce for business solutions.
Australia Post eParcel

Organisational age and size, survival and extinction, decentralization and centralization and evolution are also the factors that drive for organisational change(Kaufman, 2017). Besides,Kash, Spaulding, Johnson& Gamm (2014) acknowledged the (1) people and engagement, (2) culture and values, and (3) business process as three key significant drivers for client satisfaction and service quality in change process.For instance, Australia Post launched ‘Meeting the needs of our customers’ strategy and e-commerce marketplaces like, Google and eBay, it announced to deliver parcel on Saturdays from November 2014 (Annual Report, 2014).Ultimately, it ‘engages shareholders, people, community, and customers and strengthen culture through shared values’ (Annual Report, 2017). Thus, alignment with cultural values, effective communication and efficient human resources are driving factors that assisted to achieve change results in Australia Post.
Digital iD™ by Australia Post - Apps on Google Play
Ashta, Stokes & Hughes (2018) by analyzing the Japanese globalized commercial context identified that transformation of technology, labor, service, product and capital are the major driving factors for change. Thus, by collaborating with global online companies and providing the global service, the Australia Post established its great market in Australia as well as in global postal market. The complexity of modern organisations and its volatile nature proves the necessity of organisational change for its productivity and survival (Kaufman, 2017).  Brown, Rose & Gordon (2016) identified the new innovative management related skills are drivers for change management. As Australia Post has successfully planned change management in its structure and strategies, it minimized the costs, managed resources and identified avenues to create value for its customers.


There is no doubt that organisations must change constantly in the contemporary time. The major strategies that is adopted to ensure the effective change are management skills that should be thoroughly followed by skills of communication, delegation, planning, leading, decision-making and interpersonal skills(Ahokangas, 2014). Moreover, Petrou, Demerouti& Schaufeli (2018) identified communication is one of the most influential strategy to improve employee adjustment to change.For instance, Australia Post has implemented marketing and communication strategy to overcome from resistance to change which is open and flexible.

Managing change is scary as well as challenging for managers whether it is overt or covert, however Perry &Cresswell (2017)recommends employees’ goals (personal development) should be aligned with the company’s strategy and assistive to develop and learn new skills for the change management strategy. Thus, in 2015, Australia post has announced 1900 voluntary redundancies because of losses in its mail delivery and financial loss (Annual Report, 2015). In addition, since 2013 to 2015 it transitioned 4000 staff into different roles (including administration and support management staff) with ‘an emphasis on its fast-growing parcels deliver business’. Thus, the Post has changed the corporate culture and remove obstacles by hiring change leaders as well as created vision to overcome from resistance to change.

Al-Ali, Singh, Al-Nahyan &Sohal (2017) find that change oriented leadership has positive impact on planned change especially in public organisations. In the context of Australia Post, it established strong leadership and managed diversity very well. It adopted the transformation strategy. For instance,in 2015, the Sydney and Melbourne Expos, the post presented 250 customers and 1000 employees as an interactive showcase in 30 programs (Annual Report, 2016). Additionally, it significantly improved in overall transformation strategy by implementing gender pay parity in workforce in 2017.

The next significant strategy to reduce the change resistance that Australia post implemented is employee engagement program.Lehmann (2017) by studying in Danish emergency management suggests that social interaction and group structures are important strategies for to overcome the resistance to change and organisational development. According to Petrou, Demerouti, & Schaufeli (2018), employee work engagement is positively associated with the productivity of the business and better employee performance.Thus, the Post by releasing whitepaper highlighted the workforce engagement program and increased the socio-economic and environmental values as well as decreased the resistance to change.


One of the major challenges in organisational development (OD) and change management is intervention and set the diagnostic tools (Sementelli, 2016). For instance, Australian Prime Minister Malcolm Turnbull in 2017, criticized the $5.6 million annual salary of CEO of Australia Post, “as the Prime Minister and a taxpayer, I've spoken to the chairman today. I think that salary, that remuneration, is too high.”.Innovation is having new idea which has great value, to create and disrupt competitive advantage in business(Slater, Evans, & Turner, 2016). It integrated the working culture with mainstream business.The new CEO and executive GM applied the digital transformation as an opportunity which emphasizes on sustainable change and customer-led innovation.

They implemented cross functional leadership and enabled the network-centric service and customer-centric business. It embraced and integrated marketing technology which is interwoven with the customer’s lives. In addition, the web and digital, contact center, and social and post office development have been integrated into one unit. Additionally, the Post listened the problems of customers, take feedback, launched quality improvement programs and developed new parcel delivery networks through channelized marketing as a future strategy.


After analyzing the whole case study, I knew the history and practice of postal and mail service of Australia’s oldest operating service organisation.  In addition, it provided the knowledge on change management theories, practices, and strategies to overcome resistance to change. Similarly, the application of those theories and practice in Australia Post taught me the skills to manage the change in organisational context. Lastly, driving factors of change in global context and planning of strategic change management of Australia post, provided me the practical application in the global context.


In conclusion, Australia Post as a self-funding corporation of Australian government has been broadening its service range, product and investing in technology-based infrastructure programs. The significant strategies that the Australia post implemented are ‘future ready strategy’, ‘supplementary budget’, ‘two-speed postal service’, ‘MyPost Digital Mailbox’, ‘Everyone, Everywhere and Everyday’, joint venture program, and networking from 2014 to 2018. 

Those strategies changed the delivery business focusing on ‘leadership, empowerment and customer mindset.’ The major drivers for those change in the Post were technological advancement and digitization, diversity management, people engagement, and globalization. The change resistant that is seen in this organisation is solved through entrepreneurship and innovation’ transformation of technology, labor, service, product and capital. The operations in retail merchandise and agency services, direct marketing, retail production, security of database management, time management, long call and accessibility and transparency are the major challenges it is facing which can be solved by the following recommendations:
·         Fast Complaint Review Process
·         Simpler Compensation Process
·         Shorter Call Waiting Process
·         Updated Website with Easier Lodge of a Complaint
·         Ensure Online Security
·         Better Accessibility and Transparency. 


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