I would propose to use 5Ps Model.
The first “P” is purpose. The purpose of change management is to meet the organisation’s goal or vision. From the vision, we can identify the design of the new organisation. With purpose, decisions about what to change or the level of change can be identified since the gap is known and communication to rationale the change is going to be manageable.
The second “P” is priorities for change which involve identifying and selecting the target of change. In this example, the priorities are on the issue to centralize Finance and HR and de-centralize the products department.
The third “P” is people which is the leaders in the organisation who are going to implement the change and also affected employees. To make this change successful, the leaders need to change first. They need to support and believe on the changes are for the betterment of the organisation.
The fourth “P” represents the process to be used for implementing the change. There are three strategies:
1. Autocratic – managers simply announce the change.
2. Participation- those affected will be consulted, asked for ideas and input.
3. Consensus approach involves group commitment and responsibility for the outcome. This is a risky style because it is not easy to get an agreement when it involves an affected employee.
For this process, a combination of autocratic and participation styles would be good because it shows that the organisation is serious to move forward (autocratic) and it involves the participation of all employees.
The final “P” is for proof and this is a critical stage because leaders should provide proof that change management has achieved the desired results or not. At this stage, transparency is required – open about failure, active engagements with employees to improve results, provide support and motivation to empower employees. The positive new work environment, helps employees to realise, engage, accept and own the change and transformation.
For this case, I believe the process to execute the changes is manageable because everyone is not affected by retrenchment. Based on this, I trust all 5Ps -purpose, priorities, people, processes, and proof method is suitable for the change management exercise and will bring continued success to IS company.
