Fitlife Change Management Project Health and Fitness

Question: Discuss about the Fitlife Change Management Project for Health and Fitness. Answer: Introduction Fitlife is one of the renowned health and fitness organizations that has been operating across various cities of e Australia for the last 40 years. The organization provides personal fitness training courses to their customers and currently employs some of the best personnel of the fitness industry for the same. A recent market study by the Statistica Australian Marketing Research Agency ( or the SAMRA) has revealed that the emergence of various new entrants in the market is challenging the Fitlife s status of Key player. The market research team of SAMRA has advised the higher management of Fitlife to include certain key changes in the organization, the details of which would be discussed in this report. Identify Change Issues Identify the strategic change needs through an analysis of organizational objectives The market study conducted by the research team of Statistica Australian Marketing Research Agency indicated that at present, the organizational goals of Fitlife should be: To increase the number of customers who currently utilize their services. To include new forms of fitness training courses so as to attract new customers. To join hands with corporate houses and academic institutions so as to attract the Gen Y in attending their fitness programs. Besides the above mentioned strategies, the research team of SAMRA has also advised the higher management of Fitlife to make a better utilization of their ICT systems to attract the attention of the new age consumers. Review existing policies and practice against strategic objectives The following section of the report would provide an in-depth analysis of the operational strategies currently utilized by Fitlife and the changes that have been recommended by the research team of SAMRA. Reviewing the existing policies Sl. no Current policy and practice Contribution Limitation 1 Fitlife currently utilizes their own set ups for providing training to the clients. Allows the utilization of world-class physical training facilities Restricts the chances of providing services to that section of the population who do not stay in proximity to the Fitlife training centers. 2 Current working hours are from 10 am to 5.30 pm, with the weekends being off days. In accordance to the Fair Work Act 2009, results in well-rested employees. Restricts the participation of working professionals due the short working hours. 3 Provides basic personal fitness training to the customers Provides well known physical training services to the customers. Does not allow the development of experimental fitness training programs 4. Provides basic information to the customers on the official webpage Helps in providing crucial operational information to the customers. Potential customers are not able to obtain the answers to specific queries or take admissions/ make payments directly through the official website. Suggested policies Sl. no Required policy and practice Rationale 1. Provide fitness training to the customers at their places. Such a strategy would allow providing services to such customers who are unable to travel to the Fitlife gyms. 2. Join hands with corporate houses and educational institutes and provide fitness wellness trainings to their employees and/ or students. Such strategies would essentially help the organization to provide services to a large number of working professionals, besides allowing them to draw the attention of the younger generation. 3 Increase the work hours and make employees work in shifts. Will allow providing services to the office-goers other practicing professionals. 4. Include chat facilities on the official website Will help in resolving queries raised by the customers. 5. Inclusion of new fitness training trends Will help in meeting the demands of potential clients Monitor the organizational behavior and external environment on change strategies The following section of the report would analyze the impact of the organizational behavior and external environment on the strategies recommended by SAMRA. Organizational behavior Sl. No Organizational behavior Impact 1. The individuals working at Fitlife i. Chances of career growth ii. Scope of new employment 2. Organizational groups i. Growth of new leaders ii. Work related stress might increase 3. Organizational processes No significant change External environment Sl. no External Factors Impact 1. Competition The strategies are custom designed for keeping Fitlife ahead in the competitive market 2. Government policies No significant effect 3. Infrastructure New infrastructural set up would be required. 4 Demographic factors Services can be provided to a larger section of the population 5 Social, Cultural and technological No significant effect Identify major operational change requirements The following section of the report would provide information regarding the changes that would be included in the operational activities of Fitlife s so as to implement the strategies developed recommended by SAMRA. Sl. no Operational change requirements Rationale 1. Changes in working hours Longer working hours would allow the organization to serve the office goers and practicing personnel. 2. Introduction of contemporary physical training forms like that of yoga, zumba, pilates, etc. Meeting customer demand 3. Conducting physical fitness training classes in collaboration with corporate organizations and academic institutes Would facilitate the process of catering to a larger section of the population. 4. Providing physical fitness training classes at the homes of the customers who are unwilling or unable to attend Fitlife fitness centers. Would facilitate the process of catering to a larger section of the population. Review and prioritize change requirements in consultation with the Business Change Manager The prioritization of the changes mentioned in the sections above have been done in the following table: Sl. No Change requirements Rationale Priority 1 Provide fitness training to the customers at their places. 1. Increase number of customers 2. Unique service, would help to stay ahead in competition 4 2 Join hands with corporate houses and educational institutes and provide fitness wellness trainings to their employees and/ or students. 1. Cater to the working adults 2. Draw attention of young generation customers, who are more likely to be interested in fitness trainings 3 3 Increase the work hours and make employees work in shifts. Encourage the working class to attend the fitness classes 2 4 Include chat facilities on the official website Provide real time answers to queries generated by students 1 5 Inclusion of new fitness training trends Cater to the demands of customers interested in contemporary fitness regimes. 1 Develop change management strategy Undertake cost benefit analysis Sl. no Category (cost) Cost (in AUD) 1. Development of infrastructure for new training sessions 55,000 2 Development of infrastructure at corporate houses and or academic institutions 34000 3 Employment of new employees 10,000 4. Developing ICT infrastructure 3400 Sl. no Category (benefit) Cost 1. Meeting the demands of clients 1, 00,000 2 Increase in number of customers 50, 000 3. Providing services to larger number of customers 30, 000 4 Encouraging more fitness freaks to join Fitlife 5, 000 Payback estimations: Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Initial Investment $ 102,400.00 Cash flow $ 180,000.00 $ 170,000.00 $ 180,000.00 $ 200,000.00 $ 230,000.00 $ 260,000.00 Cumulative cash flow $ (102,400.00) $ 77,600.00 $ 247,600.00 $ 427,600.00 $ 627,600.00 $ 857,600.00 $ 1,117,600.00 Payback period 6.728695652 years As mentioned in the table above, the payback period is expected to be approximately 7 years. Undertake risk analysis to address potential barriers to change Sl. No Barrier Likelihood Impact Consequence Risk Level Risk ranking Risk Mitigation 1. Lack of finances Moderate High The entire project might stall for an uncertain period of time Significant 1 Taking financial help from sponsors 2 The current employees of the organization might resist the changes Minimum High The project might fail due to lack of employee support Significant 2 Encourage employees to participate in change management process 3 The changes incorporated by the organization might not be financially beneficial Moderate High Failure of the project Significant 1 Optimized branding of the services Schedule the Change Management Project The schedule of the change management project has been provided below: Outline Number Task Name Duration Start Finish Predecessors 0 Fitlife Change Management Project 153 days Tue 11/1/16 Thu 6/1/17 1 Start date 0 days Tue 11/1/16 Tue 11/1/16 2 Market study 30 days Tue 11/1/16 Mon 12/12/16 2.1 Conducting market survey to collect information about the contemporary fitness training programs in trend 15 days Tue 11/1/16 Mon 11/21/16 1 2.2 Conducting surveys among working adults to collect information about their fitness requirements 15 days Tue 11/1/16 Mon 11/21/16 1 2.3 Conducting surveys among aged adults to collect information about their fitness requirements 15 days Tue 11/1/16 Mon 11/21/16 1 2.4 Conducting market surveys regarding the facilities available for these groups 15 days Tue 11/22/16 Mon 12/12/16 3,4,5 3 Strategizing changes 47 days Tue 12/13/16 Wed 2/15/17 3.1 Developing strategies for meeting the requirements of these three groups 20 days Tue 12/13/16 Mon 1/9/17 6 3.2 Estimating the costs required for implementing the strategies 15 days Tue 1/10/17 Mon 1/30/17 8 3.3 Conducting discussion with employees regarding the changes 7 days Tue 1/31/17 Wed 2/8/17 9 3.4 Including any changes suggested by the employees 5 days Thu 2/9/17 Wed 2/15/17 10 4 Change management phase 1: increasing the work hours 43 days Thu 2/16/17 Mon 4/17/17 4.1 Deciding the official working hours of Fitlife fitness centers 5 days Thu 2/16/17 Wed 2/22/17 11 4.2 Finalizing shift hours 5 days Thu 2/23/17 Wed 3/1/17 13 4.3 Estimating the number of new employees to be recruited for this process 5 days Thu 3/2/17 Wed 3/8/17 14 4.4 Interviewing new resources 10 days Thu 3/9/17 Wed 3/22/17 15 4.5 Recruiting new employees in the fitness centers 3 days Thu 3/23/17 Mon 3/27/17 16 4.6 Providing necessary training to them 15 days Tue 3/28/17 Mon 4/17/17 17 4.7 Commissioning the fitness centers with new work hours 0 days Mon 4/17/17 Mon 4/17/17 18 5 Change management phase 2: include chat facilities on the official website 40 days Thu 2/16/17 Wed 4/12/17 5.1 Communicate with the ICT service provider 5 days Thu 2/16/17 Wed 2/22/17 11 5.2 Deciding on the services to be availed and cost to be paid 15 days Thu 2/23/17 Wed 3/15/17 21 5.3 Implementation if new system 20 days Thu 3/16/17 Wed 4/12/17 22 5.4 Commissioning new chat system 0 days Wed 4/12/17 Wed 4/12/17 23 6 Change management phase 3: inclusion of new fitness training trends 76 days Thu 2/16/17 Thu 6/1/17 6.1 Finalizing the new fitness training to be included in Fitlife 10 days Thu 2/16/17 Wed 3/1/17 11 6.2 Interviewing training personnel having specialization in the said fitness trends 10 days Thu 3/2/17 Wed 3/15/17 26 6.3 Finalizing financial contracts with the selected trainers 10 days Thu 3/16/17 Wed 3/29/17 27 6.4 Employment of new trainers 5 days Thu 3/30/17 Wed 4/5/17 28 6.5 Developing the infrastructure required for the newly incorporated sessions 40 days Thu 4/6/17 Wed 5/31/17 29 6.6 Finalizing the timings and schedules for the new physical fitness training sessions 1 day Thu 6/1/17 Thu 6/1/17 30 6.7 Commission the services to the customers 0 days Thu 6/1/17 Thu 6/1/17 31 7 Change management phase 4: join hands with corporate houses and educational institutes 60 days Thu 2/16/17 Wed 5/10/17 7.1 Communicating with corporate houses and/ or educational institutes 20 days Thu 2/16/17 Wed 3/15/17 11 7.2 Proposing the plans to set up fitness training classes for the employees and/ or students of the organizations 5 days Thu 3/16/17 Wed 3/22/17 34 7.3 Finalizing discussions 5 days Thu 3/23/17 Wed 3/29/17 35 7.4 Setting up infrastructure required for conducting fitness training classes 30 days Thu 3/30/17 Wed 5/10/17 36 7.5 Commissioning classes for the corporate clients/ students 0 days Wed 5/10/17 Wed 5/10/17 37 8 Change management phase 5: provide fitness training to the customers at their places. 50 days Thu 2/16/17 Wed 4/26/17 8.1 Identify services that can be provided to the customers at their homes 15 days Thu 2/16/17 Wed 3/8/17 11 8.2 Developing specialist team for providing such facilities to the potential customers 10 days Thu 3/9/17 Wed 3/22/17 40 8.3 Deciding on the financial aspects of the services 5 days Thu 3/23/17 Wed 3/29/17 41 8.4 Marketing the uniqueness of the services 20 days Thu 3/30/17 Wed 4/26/17 42 8.5 Commissioning the services to the customers 0 days Wed 4/26/17 Wed 4/26/17 43 9 End Date 0 days Thu 6/1/17 Thu 6/1/17 19,24,32,38,44 Figure: Gantt chart of the project (Source: Developed by author in MS Project). Assign resources and metrics to Change management Project Parent Task Sub Task Labour Capital Cost (AUD) Time Outcome Market study Conducting market survey to collect information about the contemporary fitness training programs in trend Business analytic team N/A 150 15 days Collecting information relevant to the project Conducting surveys among working adults to collect information about their fitness requirements Business analytic team N/A 150 15 days Collecting information relevant to the project Conducting surveys among aged adults to collect information about their fitness requirements Business analytic team N/A 150 15 days Collecting information relevant to the project Conducting market surveys regarding the facilities available for these groups Business analytic team N/A 150 15 days Collecting information relevant to the project Conducting market survey to collect information about the contemporary fitness training programs in trend Business analytic team N/A 150 15 days Collecting information relevant to the project Strategizing changes Developing strategies for meeting the requirements of these three groups Business analyst, marketing team, N/A 500 20 days Finalization of strategies Estimating the costs required for implementing the strategies Business analyst, marketing team, project manager N/A 1000 15 days Finalization of costs Conducting discussion with employees regarding the changes Project team manager N/A 200 7 days Including the employees in the change management process Including any changes suggested by the employees Business analyst, marketing team, project manager N/A 100 5 days Including relevant ideas put forward by employees Change management phase 1: increasing the work hours Deciding the official working hours of Fitlife fitness centers Fitness experts associated with project management team N/A 200 5 days Finding options regarding the probable working hours Finalizing shift hours Project manager N/A 100 5 days Finalization of working hours Estimating the number of new employees to be recruited for this process Fitness experts associated with project management team N/A 200 5 days Finalization of the number of employees who would be recruited Interviewing new resources Project manager, HR team N/A 300 10 days Short listing of employees Recruiting new employees in the fitness centers Project manager, HR team N/A 100 3 days New employees recruited Providing necessary training to them Fitness experts associated with project management team N/A 600 15 days Well trained employees, ready to serve customers Change management phase 2: include chat facilities on the official website Communicate with the ICT service provider Fitness experts associated with project management team N/A 200 5 days Collecting information regarding the cost of including a chat service Deciding on the services to be availed and cost to be paid Fitness experts associated with project management team N/A 600 15 days Finalization of the services to be availed and the cost associated with it Implementation of new system ICT service provider N/A 3000 20 days Developing and implementing real time chat options Commissioning new chat system ICT service provider, Project manager, 3000 450 5 days Real time chat options included in website Change management phase 3: inclusion of new fitness training trends Finalizing the new fitness training to be included in Fitlife Fitness experts associated with project management team N/A 500 10 days Finalization of new fitness training programs Interviewing training personnel having specialization in the said fitness trends Project manager, HR team N/A 700 10 days Short listing of training personnel Finalizing financial contracts with the selected trainers HR team N/A 100 10 days Finalization of the payments and other facilities to be made to the newly recruited trainers Employment of new trainers HR team N/A 50 5 days Employment of new trainers Developing the infrastructure required for the newly incorporated sessions Project management team 50, 000 5000 40 days New infrastructure developed Finalizing the timings and schedules for the new physical fitness training sessions Project management team N/A 100 1 day Schedules of new classes finalized Commission the services to the customers Project manager N/A N/A 0 days Services commissioned Change management phase 4: join hands with corporate houses and educational institutes Communicating with corporate houses and/ or educational institutes Project management team N/A 500 20 days Identification of corporate houses or academic institutes who might be interested in setting up fitness training centers Proposing the plans to set up fitness training classes for the employees and/ or students of the organizations Project management team N/A 250 5 days Sharing of business proposals Finalizing discussions Project management team N/A 1000 5 days Finalizing the proposal Setting up infrastructure required for conducting fitness training classes Project management team 30000 4000 30 days Setting up the fitness training centres Commissioning classes for the corporate clients/ students Project manager N/A N/A 0 days Services commissioned Change management phase 5: provide fitness training to the customers at their places. Identify services that can be provided to the customers at their homes Fitness experts associated with project management team N/A 1500 15 days Services finalized Developing specialist team for providing such facilities to the potential customers Project management team N/A 1000 10 days Specialized team developed Deciding on the financial aspects of the services Project management team, Project manager N/A 1500 5 days Finalization of charges to be made Marketing the uniqueness of the services Project management team 1500 1000 20 days Potential customers well informed Commissioning the services to the customers Project manager N/A N/A 0 days Services commissioned Develop draft communication Plan including reporting protocols Sl. No Reporting Protocol Stakeholder 1 (Sponsor) Stakeholder 2 (Client) Stakeholder 3 (Employees) Stakeholder 4 (Customers) 1 Outcomes Awareness regarding the progress of the project and the utilization of funds Awareness regarding the: 1.Progress of the report 2. Issues associated with the project Awareness regarding the: 1. organizational changes 2 new processes to be followed Awareness regarding the services provided by Fitlife 2 Key Message 1.Progress reports 2.Financial reports 1. Progress reports New operational instructions Promotions of new services 3 Channel 1.Official meetings 2.Well Documented reports 1. Official mails 2.Well Documented reports and presentations Official mails E marketing, branding using social media and news media 4 When/ frequency Once in a month Once in every 15 days As and when required As and when required The Change Management Cycle The change management cycle that has been utilized in this project has been depicted below: Figure: The Change Management Cycle (Source: Developed by author) Obtain approval from the Business Change Manager Name Description Signature Date Service Owner Name I hereby approve the change management plan Please insert Please insert Business Change Manager I hereby approve the change management plan Please insert Please insert Project Manager Name Plan approved by Business Change Manager Please insert Please insert Deliver the Communications Plan The meetings to be conducted with the stakeholders of the project ( the employees and the client of the project) would include discussions on the following points: The aims and objectives of the project The potential benefits of the project The changes being incorporated The modes and manner in which communication between stakeholders is conducted. Monitor and adjust change management activities Evaluation Report Performance gaps The performance gaps of the project have been provided in the following table: Parent Task Sub Task Labour Capital Cost (AUD) Time Outcome New Outcome Market study Conducting market survey to collect information about the contemporary fitness training programs in trend Business analytic team N/A 150 15 days Collecting information relevant to the project As expected Conducting surveys among working adults to collect information about their fitness requirements Business analytic team N/A 150 15 days Collecting information relevant to the project As expected Conducting surveys among aged adults to collect information about their fitness requirements Business analytic team N/A 150 15 days Collecting information relevant to the project As expected Conducting market surveys regarding the facilities available for these groups Business analytic team N/A 150 15 days Collecting information relevant to the project As expected Conducting market survey to collect information about the contemporary fitness training programs in trend Business analytic team N/A 150 15 days Collecting information relevant to the project As expected Strategizing changes Developing strategies for meeting the requirements of these three groups Business analyst, marketing team, N/A 500 20 days Finalization of strategies Strategies not finalized Estimating the costs required for implementing the strategies Business analyst, marketing team, project manager N/A 1000 15 days Finalization of costs Not finalized Conducting discussion with employees regarding the changes Project team manager N/A 200 7 days Including the employees in the change management process As expected Including any changes suggested by the employees Business analyst, marketing team, project manager N/A 100 5 days Including relevant ideas put forward by employees As expected Change management phase 1: increasing the work hours Deciding the official working hours of Fitlife fitness centers Fitness experts associated with project management team N/A 200 5 days Finding options regarding the probable working hours As expected Finalizing shift hours Project manager N/A 100 5 days Finalization of working hours Resisted by employees Estimating the number of new employees to be recruited for this process Fitness experts associated with project management team N/A 200 5 days Finalization of the number of employees who would be recruited As expected Interviewing new resources Project manager, HR team N/A 300 10 days Short listing of employees As expected Recruiting new employees in the fitness centers Project manager, HR team N/A 100 3 days New employees recruited As expected Providing necessary training to them Fitness experts associated with project management team N/A 600 15 days Well trained employees, ready to serve customers Change management phase 2: include chat facilities on the official website Communicate with the ICT service provider Fitness experts associated with project management team N/A 200 5 days Collecting information regarding the cost of including a chat service As expected Deciding on the services to be availed and cost to be paid Fitness experts associated with project management team N/A 600 15 days Finalization of the services to be availed and the cost associated with it As expected Implementation of new system ICT service provider N/A 3000 20 days Developing and implementing real time chat options As expected Commissioning new chat system ICT service provider, Project manager, 3000 450 5 days Real time chat options included in website Task postponed by 2 working days Change management phase 3: inclusion of new fitness training trends Finalizing the new fitness training to be included in Fitlife Fitness experts associated with project management team N/A 500 10 days Finalization of new fitness training programs As expected Interviewing training personnel having specialization in the said fitness trends Project manager, HR team N/A 700 10 days Short listing of training personnel As expected Finalizing financial contracts with the selected trainers HR team N/A 100 10 days Finalization of the payments and other facilities to be made to the newly recruited trainers As expected Employment of new trainers HR team N/A 50 5 days Employment of new trainers As expected Developing the infrastructure required for the newly incorporated sessions Project management team 50, 000 5000 40 days New infrastructure developed As expected Finalizing the timings and schedules for the new physical fitness training sessions Project management team N/A 100 1 day Schedules of new classes finalized As expected Commission the services to the customers Project manager N/A N/A 0 days Services commissioned As expected Change management phase 4: join hands with corporate houses and educational institutes Communicating with corporate houses and/ or educational institutes Project management team N/A 500 20 days Identification of corporate houses or academic institutes who might be interested in setting up fitness training centers As expected Proposing the plans to set up fitness training classes for the employees and/ or students of the organizations Project management team N/A 250 5 days Sharing of business proposals Plan Approved by only 2 corporate houses Finalizing discussions Project management team N/A 1000 5 days Finalizing the proposal As expected Setting up infrastructure required for conducting fitness training classes Project management team 30000 4000 30 days Setting up the fitness training centres As expected Commissioning classes for the corporate clients/ students Project manager N/A N/A 0 days Services commissioned As expected Change management phase 5: provide fitness training to the customers at their places. Identify services that can be provided to the customers at their homes Fitness experts associated with project management team N/A 1500 15 days Services finalized As expected Developing specialist team for providing such facilities to the potential customers Project management team N/A 1000 10 days Specialized team developed Additional 5 days were required Deciding on the financial aspects of the services Project management team, Project manager N/A 1500 5 days Finalization of charges to be made As expected Marketing the uniqueness of the services Project management team 1500 1000 20 days Potential customers well informed As expected Commissioning the services to the customers Project manager N/A N/A 0 days Services commissioned As expected Risk management Outcome The outcome of the risk management process of the project have been provided in the following table: Sl No Risk Root causes Risk Control measures (actions to be taken) Monitoring procedure Responsible person Timeline 1 Lack of finances Inappropriate budgeting Taking financial help from sponsors Supervision of the budgeting process Project manager Within 15 days of the issue being noticed 2 The current employees of the organization might resist the changes The employees might not be able to accept the changes being incorporated in the organization Encourage employees to participate in change management process Appropriate communication with the employees. HR manager Within 5 days of the issue being noticed 3 The changes incorporated by the organization might not be financially beneficial Inappropriate market survey Optimized branding of the services Supervision of the marketing/ branding procedure Project manager Within 90 days of the issue being noticed Conclusion The preceding sections of the report provide insight into the change management project being implemented in Fitlife. Section 1 of the report emphasizes on the identification of the issues that need to be considered on an emergency basis, while the change management strategy has been discussed in section 2 of the report. Section 3 sheds some light on the manner in which the changes would be communicated with the stakeholders while the last section essentially highlights the process of monitoring the change management activities. 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