Report on Organisational Change: A Case Study of Australia Post
BABU RAM ARYAL
CQ UNIVERSITY, AUSTRALIA
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.
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 $337 million only
in parcel services (Annual Report, 2015). The differentiation strategy which is
also supported by government created ‘trusted services’ and provided broader
identity services, foreign exchange, financial services and payments, insurance
and travel services as well as passport applications(Cummings, Bridgman &
Brown, 2016).Thus, it provided those services to over 800000 retail customers
and 750 organisations every day.
Delivering of eCommerce program is noteworthy in Australia Post which
make the business easier to sell online and to collect and return their
purchases/products. Digital technology empowered and sophisticated to the customers
to access services and information(Gilani, Kozak & Innes, 2018).
Ultimately, 75% of the parcels Australia post delivered were generated by an
online order (Annual Report, 2015). Moreover, the same year, the government had
announced its ‘support for the regulatory reform in letters service’. This planned reform categorized the priority
service and regular services, however the post was in great loss in 2015.
In 2016, it returned to profit by restructuring and providing strong
services in parcel and courier. It reduced potential losses of A$ 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.
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.
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.
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.
Ahokangas, P. (2014). The practice of creating and transforming a
business model. Journal of Business
Models, 2(1). 22-24.
Al-Ali, A., Singh, S., Al-Nahyan, M., &Sohal, A. (2017). Change
management through leadership: The mediating role of organizational culture. International Journal of Organizational
Analysis, 25(4), 723-739.
Anand, N., &Barsoux, J. (2017). What everyone gets wrong about
change management: Poor execution is only part of the problem. Harvard Business Review, 95(6), 78-81.
Ashta, A., Stokes, P., & Hughes, P. (2018). Change management in
Indo-Japanese cross-cultural collaborative contexts. Journal of Organizational Change Management, 31(1), 154-172.
Australia Post (2013, 2014, 2015, 2016, 2017) Annual Report.
Retrieved From: http://auspost.com.au/annualreport2015/delivering-ecommerce.html
Australia Post (2016). Australia Post Our post – Primary, our
past". Australia Post. Retrieved 30 January 2016.https://auspost.com.au/about-us/corporate-responsibility/our-community/education
Australia Post boss Ahmed Fahour earned $5.6 million last
year". Herald Sun. 7 February 2017. Retrieved 7 February 2017 https://www.heraldsun.com.au/news/australia-post-boss-ahmed-fahour-earned-56-million-last-year/news-story/4122f1651b315d5948b79889cd4cd2c7
Australia Post White Paper (2018). Value to be found in social
procurement. Retrieved from: 14th August 2018 https://auspost.newsroom.com.au/Content/Default/News-Releases/Article/Value-to-be-found-in-social-procurement/-3/27/6225
Begley, S. (2014) PepsiCo’s workplace wellness program fails the
bottom line -study, Reuters. Retrieved From: https://www.reuters.com/article/us-wellness-workplace/pepsicos-workplace-wellness-program-fails-the-bottom-line-study-idUSBREA0510R20140107
Brown, D., Rose, D., & Gordon, R. (2016). De-commoditizing
change management. Journal of
Organizational Change Management, 29(5), 793-803.
Cameron, N. (2015). Bridging the digital divide at Australia Post.
CIO, (Spring 2015), 45-47.
Chung, Frank (8 February 2017). "Australia Post CEO paid $5.6
million in 2016". News Ltd. Retrieved 8 February 2017. https://www.news.com.au/finance/work/leaders/australia-post-ceo-paid-56-million-in-2016/news-story/7e8b26ed0660abf9c7d60b4ec539017e
Cummings, S., Bridgman, T., & Brown, K. (2016). Unfreezing
change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human Relations, 69(1), 33-60.
Durie, John (18 June 2010). "Australia Post expands into
electronic applications". The Australianhttps://www.theaustralian.com.au/business/opinion/austria-post-expands-into-electronic-applications/story-e6frg9if-1225881080697
Gilani, H., Kozak, R., & Innes, J. (2018). A Change Management
Model for the Adoption of Chain of Custody Certification in the British
Columbia Value-added Wood Products Sector. Journal
of Change Management, 18(3), 240-256.
Kash, B. A., Spaulding, A., Johnson, C. E., & Gamm, L. (2014).
Success factors for strategic change initiatives: A qualitative study of
healthcare administrators' perspectives. Journal
of Healthcare Management, 59(1), 65-81.
Kaufman, H. (2017). The limits
of organizational change. Routledge. UK.
Kuipers, B. S., Higgs, M., Kickert, W., Tummers, L., Grandia, J.,
& Van der Voet, J. (2014). The management of change in public
organizations: A literature review. Public
administration, 92(1), 1-20.
Lehmann, S. (2017). Bridging Strategies and Action: Towards a Method
for Change Management in Danish Emergency Management Organizations. Journal of Change Management, 17(2),
138-154.
Perry, J., &Cresswell, M. (2017). Client Driven Change
Management. Proceedings of the 2017 ACM Annual Conference on Siguccs, 131713,
187-190.
Petrou, P., Demerouti, E., & Schaufeli, W. (2018). Crafting the
Change: The Role of Employee Job Crafting Behaviors for Successful
Organizational Change. Journal of
Management, 44(5), 1766-1792.
Ryan, P. (2015). Australia Post to slash 1,900 jobs amid $500m mail
losses; boss warns of 'tipping point' as letters business plunges. Retrieved
From: Updated 26 Jun 2015, http://www.abc.net.au/news/2015-06-26/australia-post-to-slash-1900-jobs-amid-mail-losses/6574752
Sementelli, A. (2016). OD, change management, and the a priori:
Introducing parrhesia. Journal of
Organizational Change Management, 29(7), 1083-1096.
Slater, M., Evans, Andrew L, & Turner, Martin J. (2016).
Implementing a social identity approach for effective change management. Journal of Change Management: An
International Journal, 16(1), 18-37.
Van der Voet, J. (2014). The effectiveness and specificity of change
management in a public organization: Transformational leadership and a
bureaucratic organizational structure. European
Management Journal, 32(3), 373-382.
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.
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 $337 million only
in parcel services (Annual Report, 2015). The differentiation strategy which is
also supported by government created ‘trusted services’ and provided broader
identity services, foreign exchange, financial services and payments, insurance
and travel services as well as passport applications(Cummings, Bridgman &
Brown, 2016).Thus, it provided those services to over 800000 retail customers
and 750 organisations every day.
Delivering of eCommerce program is noteworthy in Australia Post which
make the business easier to sell online and to collect and return their
purchases/products. Digital technology empowered and sophisticated to the customers
to access services and information(Gilani, Kozak & Innes, 2018).
Ultimately, 75% of the parcels Australia post delivered were generated by an
online order (Annual Report, 2015). Moreover, the same year, the government had
announced its ‘support for the regulatory reform in letters service’. This planned reform categorized the priority
service and regular services, however the post was in great loss in 2015.
In 2016, it returned to profit by restructuring and providing strong
services in parcel and courier. It reduced potential losses of A$ 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.
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.
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.
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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million in 2016". News Ltd. Retrieved 8 February 2017. https://www.news.com.au/finance/work/leaders/australia-post-ceo-paid-56-million-in-2016/news-story/7e8b26ed0660abf9c7d60b4ec539017e
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change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human Relations, 69(1), 33-60.
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