Table of Contents

LIST OF ILLUSTRATIONS

EXECUTIVE SUMMARY (400 Words)

The current report identifies key issues at AMP, an Australian wealth management company, as well as presenting a change initiative to improve organizational reputation and employee wellbeing. It is identified that AMP express a highly unethical culture and must change their corporate culture by addressing issues in their internal and external communications systems, review organizational strategy, and gender inequality. This report proposes that AMP’s Board and executive team undergo ethics training and terminate individuals who have engaged in serious misconduct.

The body of the report addresses key issues present at AMP coupled with a stakeholder analysis to identify who will be affected by and affect the change initiative. Stakeholders such as …. TANVI please add a couple more sentences.

The ADKAR model is utilized in this report to evaluate and explore various dimensions of the change initiative on an individual level. The ADKAR model comprises of five dimensions: awareness, desire, knowledge, ability, and reinforcement. ADKAR was applied to the change initiative of corporate culture to identify gaps, potential areas for resistance of change to occur, and recommendations at AMP.

It was found that AMP expresses a highly unethical culture with a Board and executive team led by corrupt and unethical individuals driven by profits and money. It is recommended that AMP diversify their AMP Board and executive team with women and re-align their organizational values and beliefs. The report recommends that AMP re-evaluate their whistleblowing policies and procedures as well as shift their organizational strategy from profit driven to people driven.

INTRODUCTION (500 Words, Arabic Numbering begins; 1) (Nick)

Major problem – Corporate culture

Symptoms of major problem – misconduct, gender inequality, ect

BODY

STAKEHOLDERS (500 Words)

(A successful change implementation can only be achieved if those parties impacted by the change (i.e., Internal and external stakeholders) are convinced that the change is worthwhile and that the resultant benefits outweigh the costs involved. In relation to the change you have selected, you must clearly state who the stakeholders are, how they are impacted and what their level of interest, power and influence is. (Tip: The stakeholder grid was covered in the unit and remember that stakeholders could comprise individuals and/or teams).

Internal stakeholders:

External Stakeholders:

Stakeholder analysis and stakeholder map

ADKAR (2,000 words)

The ADKAR model is a strategic business framework to provide various dimensions of a change initiative on an individual level (Dana et al. 2016). The ADKAR model has five elements that must be in place for change to be ascertained (Hiatt 2006). These elements are Awareness, Desire, Knowledge, Ability, and Reinforcement which can assist AMP to initiate change in their corporate culture (Hiatt 2006).

Awareness (400) (Emma)

The Awareness element of the ADKAR model represents an individual’s understanding of the concept of the change, why the change is required, and the risks if the change does not occur (Hiatt 2006). AMP’s corporate culture of sexual harassment and discrimination is evidence of a highly unethical and toxic workplace (Howell and Bengough n.d.). As a result of this harmful environment, the call for corporate cultural change has been emphasised from all shareholders including staff, industry analysts, and other corporates (Howell and Bengough n.d.).

Awareness to re-establish an ethical organisational culture can be communicated thoroughly to all employees of the organisation. However, an ethical organisational culture emanates from corporate’s culture of top managers shared beliefs, how they should conduct business and manage employees (Ferrel et al. 2021). Whilst fifty percent of AMP’s top ten male executives are offenders of sexual harassment, it is paramount an ethical corporate culture is clearly and directly communicated to the AMP Board, top executives and managers (Howell and Bengough n.d.). Research shows that leadership is on of the most influential elements of an organisations ethical culture (Ardichvili et al. 2009). Thus, a change in AMP’s corporate culture will require them to re-define organisational values and beliefs coupled with re-assessing their policies and procedures on appropriate code of conduct, sexual harassment and discrimination, whistleblowing, and disputes and resolutions. Additionally, AMP will need to re-assess their internal and external communication procedures and diversify their top executives and managers by including women.

To persuade the AMP Board and top executives why a change in corporate culture must occur is that this change will align with their organisational strategy in yielding high profits and expanding globally (Howell and Bengough n.d.). Research has identified that organisations that integrate strong ethical values and positive business practices within their corporate culture are found to increase group creativity, job satisfaction, and decrease turnover (Ferrell et al. 2021). Moreover, employees who perceive their company as having a strong community involvement are more loyal and positive to their employer. These research findings demonstrate that organisations that have and are perceived to have a highly ethical corporate culture will generate high productivity and profits. The benefit of an ethical culture emphasises the need for AMP to change their culture to maintain a positive reputation and high productivity. Furthermore, investors will see less risk in AMP with an ethical culture (Ferrell et al. 2021).

If AMP do not change their corporate culture and continue to engage in serious misconduct of sexual harassment, discrimination, and bullying, AMP’s reputation will plummet, employees will be less productive, lose customer loyalty, experience high turnover, and experience potential lawsuits costing millions (Qaisar et al. 2018).

Awareness of AMP’s need to change corporate culture generates the desire for change (Hiatt 2006).

Desire (400) (Emma)

Desire is the second component of the ADKAR model and depicts the motivations and ultimate choice for an individual to support and participate in a change initiative (Hiatt 2006). Initiating desire for change presents challenges at AMP such as resistance, uncertainty, fear for the unknown, and potentially and perceived threat to the roles of individuals (Shepherd et al. 2014). There are four factors that contribute to the desire to change that may be applied to AMP. These four factors are (1) the nature of change, (2) the organizational or environmental context for change, (3) an individual’s personal situation, and (4) what motivates them (Hiatt 2006).

The nature of change highlights that individuals at AMP will determine if a change in corporate culture represents an opportunity or threat (Hiatt 2006). Employees may view a change in corporate culture and organizational processes such as improved communication system and whistleblowing policies to be highly beneficial. Research has shown that when an organization increases employee wellbeing, mental health, and safety, employees experience higher levels of productivity and happiness (Qaisar et al. 2018). Additionally, research in social psychology highlights that employees experiencing positive emotions at work are more likely to protect and give constructive feedback concerning their organisation (Shepherd et al. 2014). Whilst there are many benefits for employees to take on the change, resistance may occur in top management and AMP’s board and executive team. Establishing an ethical corporate culture begins from top leadership, and to achieve such culture, AMP will need to terminate Parahi as well as AMP’s top executive males who are offenders of sexual harassment and discrimination (Howell and Bengough n.d.). This poses an imminent threat to their careers and will cause a resistance to change.

Resistance of change can occur in the organizational and environmental context for change. Top executives and the board will argue that Parahi has ‘made a lot of money for the company and its employees’ in the past and terminating Parahi will cause loss in profits (Howell and Bengough n.d.:4). Additionally, the board and top executives may resist change due to loss of status, loss of pay, and/or loss of comfort (Dent and Goldberg 1999). This presents an opportunity to have face-to-face consultations to discuss these psychological barriers resisting change and engage these individuals in the change process (Hayes 2018).

An individual’s personal situation has significant impact in their decision-making process regarding the change (Hiatt 2006). Personal situations include financial security, relationships, career aspirations, health, and age (Hiatt 2006). Additionally, intrinsic motivations is a strong element for change and is unique for all individuals which must be explored within AMP’s board and executive team.

Knowledge (400) (Emma)

Implementing corporate cultural change within AMP can be achieved through knowledge, the third element of the ADKAR model (Hiatt 2006). Knowledge throughout AMP can be established by providing knowledge about the change via training and development or transferring knowledge via mentoring, coaching, and formal training (Boca 2013). Establishing the effective transfer of knowledge regarding the change is influenced by four elements (Hiatt 2006).

The first element that influences change is an individual’s current knowledge base (Hiatt 2006). Identifying knowledge gaps at AMP is essential to increase the likelihood that the change initiative will be successful (Hiatt 2006). It would be highly effective to conduct one-on-one, in person meetings with each employee on the AMP Board and executive team to establish their current knowledge base on ethical decision making and culture. These one-on-one meetings can address the second element of knowledge by establishing one’s capability to learn to ensure an effective training and development session is presented to the Board and executive team (Hiatt 2006). A third element in providing knowledge to AMP is ensuring there are enough resources available to provide an ethics training session. AMP will need to establish how much they would like to invest in an effective ethics training session and how many individuals should attend. To heighten the importance of AMP’s situation, research has shown that training and development in organisations is a large contributing factor to organizational effectiveness (Jehanzeb and Bashir 2013). Moreover, training and development sessions can be utilized to re-establish desired behaviours and attitudes. This is essential at AMP to ensure an ethical corporate culture is generated. Additionally, an ethics training and development session may assist in reducing cognitive biases, which refers to systematic errors in thinking when processing and interpreting information, may be present in the AMP board (Cherry 2022). Parahi’s past performance in yielding high profits positively reinforces AMP’s decision making and heightens resistance to change corporate culture (Hayes 2018; Howell and Bengough n.d.). An ethics training and development session will enable AMP’s Board and executive team in commitment to compliance and corporate integrity as well as adopting ethical decision-making skills improving the alignment of personal and corporate goals (Gross-Schaefer et al. 2000). The last element of knowledge in implementing change at AMP is access to or existence of required knowledge (Hiatt 2006). AMP must ensure that employees have access to all information from the ethics training session and consult an individual for ethical advice. Thus, it may be beneficial for AMP to hire an individual with ethics training to manage future ethical decisions and queries.

Awareness

The successful implementation of your change initiative is a critical undertaking for AMP and therefore;

AMP has stipulated that you must utilise the PROSCI ADKAR methodology to guide your implementation project. Drawing from the unit content and further research, you must explain and apply each phase of the methodology in detail.

Within the above discussion, how will you know the outcome of each phase has been achieved in relation to the major stakeholders?

R (400) (Nick)

Talk about KPI’s to measure performance/results/outcomes

Rewards and incentives for desired behavior

References (Together)

Ardichvili A, Mitchell J.A and Jondle D (2009) ‘Characteristics of ethical business cultures’, Journal of business ethics, 85:445-451.

Boca G.D (2013) ‘Adkar model VS. quality management change’, International Conference Risk in Contemporary Economy, 14^th edn

Cherry K (7 November 2022) What is Cognitive Bias?, Very Well Mind, accessed 24 April 2023.

Dana B.G, Mukaj L and Vishkurti M (2016) ‘Creating a model culture of management change’, Annals of the University of Oradea, Economic Science Series, 25(1):871-880.

Dent E.B and Goldberg S.G (1999) ‘Challenging “resistance to change”’, The Journal of applied behavioural science, 35(1):25-41.

Ferrell O.C, Fraedrich J and Ferrell L (2021) Business Ethics: Ethical Decision Making and Cases, 13th edn, Cengage.

Gross-Schaefer A, Trigilio J, Negus J and Ro C.S (2000) ‘Ethics education in workplace: An effective tool to combat employee theft’, Journal of business ethics, 89-100.

Hayes J (2018) The Theory and Practice of Change Management, 5th edn, Bloomsbury Publishing Plc, London.

Hiatt J (2006) ADKAR : a model for change in business, government and our community, 1st edn, Loveland, Colorado.

Howell A and Bengough M (n.d.) MMH356: AMP Case Study [pdf], Change Management MMH356, Deakin University.

Jehanzeb K and Bashir N.A (2013) ‘Training and Development Program and its Benefits to Employee and Organization: A Conceptual Study’, European Journal of Business and Management, 5(2):243-252.

Shepherd M.L, Harris M.L, Chung H and Himes E.M (2014) ‘Using the Awareness, Desire, Knowledge, Ability, Reinforcement Model to build a shared governance culture’, Journal of Nursing Education and Practice, 4(6):90-104, https://doi.org/10.5430/jnep.v4n6p90

Qaisar M.N, Mariam S, and Ahmad F (2018) ‘Employee Wellness as Predictor of Productivity from Public Sector Management Perspectives: Conditional Process Analysis’, NUML International Journal of Business & Management, 13(2):104-116.

https://www.verywellmind.com/what-is-a-cognitive-bias-2794963