Change management and leading

The British government plans to leave the European Union on March 19, 2019. (Sampson 2017, pg. 7). There have been numerous discussions between the government and EU officials since the country indicated interest and voted in 2016. (Sampson 2017 pg.7). Concerns include both the plight of EU nationals residing in the UK and those of British nationals doing so. Additionally, it is unclear how much compensation will be paid by the UK to the EU for Northern Ireland based on prior agreements and transactions (Hobolt & Sara 2016 pg. 1259) United Kingdom government is interested in understanding future trading relations within the EU nations(Hobolt & Sara 2016 pg. 1270). It is also interested in borrowing a transition time of approximately two years (Hobolt & Sara 2016 pg. 1270). So far EU leaders have agreed on discussing the type of association UK will have with EU after the departure (Sampson 2017 pg.8). However, EU leaders are still reluctant discussing the future trading relations citing future uncertainties. Britain collectively through a referendum voted to exit from the European Union (Hobolt & Sara 2016 pg. 1272). The process saw the resignation of David Cameron and the appointment of Theresa May as the new Prime Minister. May was against the exit but after the appointment was pressured to support the will of the people. The country is facing economic crisis since the referendum to leave EU was passed (Hobolt & Sara 2016 pg. 1277). The pound is standing at 15 percent lower compared to Euro and 10percent lower compared to the dollar (Peers 2016, pg.2). However, financial predictions argue that the country economy is on the uptrend. The growth experienced in 2016 is relatively similar to that of 2017 with a growth of 0.1 %%( Sampson 2017 pg.9) The real estate’s prices are on the downtrend while the unemployment rate has drop by 4.3%% ( Sampson 2017 pg.9).In this regard, this essay applies change management practices, models, and theories to evaluate critically how the United Kingdom government is managing and leading the Brexit process. The essay will be completed with summaries and conclusions of the main findings.

Critical Evaluation of the UK Government Leadership and Change Management Practices

Sources have it that the UK government may not be fully prepared for Brexit (Armstrong 2017). In fact, the government has acknowledged lack of profound assessment of the impact of the exit on the financial sectors and the economy at large (Burns 2017). Theresa May appointed David Davis for the newly created Ministry of Brexit (Burns 2017). However, the appointed leader lacks concrete details about Brexit impact on the economy. Davis recommends the nations to brace for a financial crisis with a similar impact to that of 2008(Sampson 2017 pg.240). Following these insights and comparing to the concept of change management. It is clear that the UK government has failed in following a clear change management process. For transformational change and leadership to be implemented in UK leadership is vital for leaders to use the best tools to initiate and spearhead change in the nation. It starts with transforming the stakeholders, partners, private owners and business leaders who influence others to adapt to change (Dibella 2007pg.239). One weakness in creating the universality of the transition process is that UK leadership is diverse characterized by differing strategies and styles (Virgilio and Ludema 2009pg. 78).The evolvement of the UK economy after the exit may have a merciless impact on the businesses and economy at large (Virgilio and Ludema 2009pg. 78). In this regard, the businesses, stakeholders, and partners should be prepared to change. Change in this context means the modification or the review of the business structures and the management process (Hunger & Wheelen 2011pg.11). The United Kingdom will require reformulating the strategy of a model previously used in the EU trading agreement. Therefore, for maintaining economic competitive advantage and survival rate then the government need to adopt a fundamental strategy that will take care of the gaps created (Doolin 2003pg.89). Armstrong (2017) explains the economic impact of UK departure from EU. The author points out the devastating condition of the UK economy after departure from EU. However, the author feels that the economic set back will have an impact at the initial period by after stabilization UK economy is expected to grow above the usual rates. The scenario is illustrated below

Figure 1: The Economic Impact of Brexit (Armstrong 2017)

McKinsey 7s Framework

The Mckinsey developed the McKinsey 7 model for employees change management (Dunford & Jones 2000 pg. 34).The model is broken down into; styles which means the behaviours of the leaders in achieving the anticipated result(Dunford & Jones 2000 pg. 34). The skills which mean the set of capabilities that are evident in a group (Dunford & Jones 2000 pg. 35). The staff which means the personnel working in a given environment, the system that stands for the existing procedures that need to follow in a controlled setting and a strategy that stands for the number of resources that need to be allocated to win the anticipated results. The model also contains the shared values which are the common concept that is universal to all (Eden and Ackermann 1998). In regard, to the Brexit, the nation needs to combine the importance of the values with the aim of forming a functional and congruent system. The model focuses on the internal components which may limit to the effect of the external factors such as how the UK citizens residing in other EU nations will be treated and compensated. However, following the insight of the model, it is possible to concentrate the economic operators of the nation into a single system that may promote growth against the projected crisis.

Kurt Lewin’s Change Model

According to the model change in an organization can be represented in the form of freeze-movement-refreeze (Meaneyand Pung 2008 pg. 8). It means that there is a state of introducing change in the organization, then the change is given time to integrate and then solidify (Meaneyand Pung 2008 pg. 9). It means that change occurs in four stages before it solidifies. In relation to Brexit situation, the government must reconsider the insight of the model for transformative change. It means that the stakeholders, partners and the government must consider areas of the economy that will be affected by the exit from the EU. After the identification of the economic factors that need to be planned to avoid the economic crisis then a process leading to solution need to be laid down (Meaneyand Pung 2008 pg. 10). The remaining two stages is the management of the implementation of change and the evaluation of the impact of the implemented change. So many factors need to be considered to avoid a crisis. Organizations need to be prepared. The stakeholders and shareholders must have the vivid picture of the Brexit repercussion. After a projected overview then a solution can be implemented. It is not clear whether the solution can completely eradicate crisis but can mitigate. For the practical implication of the model in the UK Brexit process, the government and all the stakeholders need to determine the expected change of departure of EU. It includes the benefits derived from the UK citizens and organizations after such departure. Then a strong leadership policy that includes insight from stakeholders management need to be taken into consideration (Meaneyand Pung 2008 pg. 11). There is a need for strong strategy and vision to ensure the transition process is workable (Senior and Swailes 201 pg. 7). A set of communication channel previously used need to refurbished and reconsidered without the input from the EU guidelines and provisions. Planning is very paramount for Theresa May. It is important to combine all the resources the UK has in ensuring the separate economy will function on its own. It means establishing a partnership and another form of future trading with EU nation. UK government needs to know how to dispel rumours, empower actions and involve all the stakeholders. In the freezing state, the nation will need to revisit the UK culture and incorporate financial and trading decisions that align with the Britain culture. It means identifying areas that support culture and driving away areas that discourage cultural integration (Senior and Swailes 201 pg. 9). The most viable process of sustaining culture include the establishment of a working feedback system, supporting leadership, reward system and training(Senior and Swailes 201 pg. 9).

Ansoff Matrix as a model for change

Another informing model for the UK is the Ansoff matrix (Singleton and Straits 2010 pg.12).The model informs strategic positioning for an organizational growth. It can be applied by UK government in establishing the new partnership for future growth and expansion. It means that the government should provide options on how existing products should be traded and also on ways of establishing more business partnership. The following is an example of Ansoff matrix is described below;

Figure 2: ANSOFF Matrix

From the Ansoff matrix, the UK government should consider sales and trading of its products and services to the existing markets (Singleton and Straits 2010 pg.13). As discussed the government is proposing for negotiations about the future trading. The other strategy of interest is developing new markets and products through diversification (Singleton and Straits 2010 pg.14). The country should also strategize in enabling more market in the existing market through better terms of an agreement.UK must consider more new market and emerging products and technologies.

Kotter and Kanter change model

Buckhead, (2013) discuss the several change management model. The author expounds on the model by Kotter and Kanter (1995). According to the author, the best process of dealing with change understands the urgency of the matter. For instance, UK needs to understand the urgency of departing from EU and the economic repercussions that are set to befall the nation. The need to understand about competitive realities and markets now that it is not merged in EU. The other strategy the government should undertake is a strong coalition (Hobolt & Sara 2016 pg. 1260). It means striking a memorandum with the stakeholders, the shareholders and business partners of the United Kingdom. It means the government needs to come up with a powerful coalition that can negotiate its business with other emerging markets and states. The other strategy as borrowed from the model is establishing clear communication channels and eliminating all obstacles preventing change (Hunger & Wheelen 2011pg.11).Lastly, the government need to on methods of evaluating its performance and recognizing success.

Conclusion

In conclusion, United Kingdom is not fully prepared for Brexit. However, the Prime Minister Theresa May is working level best to ensure the nation transition smoothly following the will of the people. The essay identified leadership and change management processes that are important and that can work for Britain for a transformative transition period. In this regard, the essay has applied strategic change management from the concept of Kurt Lewin’s Change Model which describes change management in three stages of freeze-movement –refreeze. For a more strategic approach to change management, the Ansoff Matrix as a model was equally important. It means that the UK government must consider new strategies for future growth and expansion. It means the government should be taking the nation in the process of establishing new business partnership and markets. The government must also be strategically ready to lead the nation to the diversion of products and services for strategic competitiveness and expansion. Lastly, the essay identified Kotter and Kanter change model which means the UK must treat the Brexit with urgency. It means that the government must establish a new coalition that will strengthen its economy after departure from the EU. The coalition will work best with a strong communication channel and strategies that incorporate the nation’s culture.

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