TABLE OF CONTENTSTABLE OF CONTENTS

No # Description Page- Introduction to chosen organization 3

Task 1 EXPLORE THE BACKGROUND TO CHANGE AFFECTING THEEXPLORE THE BACKGROUND TO CHANGE AFFECTING THE ORGANIZATION.ORGANIZATION.

4

1-A IDENTIFY A RANGE OF MODELS OF CHANGE MANAGEMENT ANDIDENTIFY A RANGE OF MODELS OF CHANGE MANAGEMENT AND EXPLAIN THE ANY THREE OF THESE MODELS IN DETAIL.EXPLAIN THE ANY THREE OF THESE MODELS IN DETAIL.

5

1-B

IDENTIFY AND LIST THE FACTORS THAT ARE DRIVING YOUR CHOSEN ORGANIZATION TO CHANGE, AND SUGGEST AN APPROPRIATE MODEL OF CHANGE FOR YOUR CHOSEN

ORGANIZAITON WITH REASONS FOR SUGGESTING THE MODEL.

8

1-CIDENTIFY THE VALUE OF STRATEGIC INTERVENTION TECHNIQUES

AND WHAT INTERVENTION TECHNIQUES WOULD YOU APPLY IN INTRODUCING CHANGE INTO YOUR CHOSEN ORGANIZATION

9

Task 2 UNDERSTAND ISSUSES RELATING TO STRATEGIC CHANGE IN THEUNDERSTAND ISSUSES RELATING TO STRATEGIC CHANGE IN THE ORGANIZATIONORGANIZATION

11

2-ADISCUSS THE GENERIC BACKGROUND TO CHANGE THAT EXISTS IN TODAY’S ECONOMY, AND THE SPECIFIC DRIVES THAT MOTIVATED

YOUR CHOSEN ORGANIZATION TO CONSIDER CHANGE.12

2-BCONSIDER THE IMPLICAITONS IN TERMS OF RESOURCES, FOR YOUR

CHOSEN ORGANIZATION IF IT FAILED TO RESPOND TO THE NEED FOR STRATEGIC CHANGE.

14

Task 3 DEVELOP SYSTEMS FOR UNDERSTANDING AND INVOLVINGDEVELOP SYSTEMS FOR UNDERSTANDING AND INVOLVING OTHERS IN THE PROCESS OF CHANGEOTHERS IN THE PROCESS OF CHANGE

15

3-AIDENTIFY THE KEY STAKEHOLDERS IN YOUR CHOSEN

ORGANIZATION AND PROPOSE SYSTEMS TO INVOLVE THOSE STAKEHOLDERS IN THE PLANNING OF CHANGE.

16

3-BANALYSE AND EVALUATE THE ADVANTAGES AND

DISADVANTAGES OF THESE SYSTEMS.17

3-C EXPLAIN HOW WOULD YOU DEVELOP A CHANGE MANAGEMENTEXPLAIN HOW WOULD YOU DEVELOP A CHANGE MANAGEMENT STRATEGY WITH THE KEY STAKEHOLDERS.STRATEGY WITH THE KEY STAKEHOLDERS.

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3-D WHAT WOULD BE YOUR STRATEGY FOR MANAGING RESISTANCEWHAT WOULD BE YOUR STRATEGY FOR MANAGING RESISTANCE TO CHANGE IN THIS ORGANIZATION?TO CHANGE IN THIS ORGANIZATION?

21

Task 4 PLAN TO IMPLEMENT MODELS FOR ENSURING ONGOING CHANGEPLAN TO IMPLEMENT MODELS FOR ENSURING ONGOING CHANGE 22

4-A IDENTIFY APPROPRIATE MODELS FOR IMPLEMENTING CHANGEIDENTIFY APPROPRIATE MODELS FOR IMPLEMENTING CHANGE THAT SUITE YOUR CHOSEN ORGANIZAITONTHAT SUITE YOUR CHOSEN ORGANIZAITON

23

4-B

HOW WOULD YOU IMPLEMENT THIS MODEL IN CHOSENHOW WOULD YOU IMPLEMENT THIS MODEL IN CHOSEN ORGANIZATION WHAT IMPROVEMENTS DO YOU EXPECT TOORGANIZATION WHAT IMPROVEMENTS DO YOU EXPECT TO

ACHIEVE BY IMPLEMENTING YOUR CHOSEN MODEL AND HOWACHIEVE BY IMPLEMENTING YOUR CHOSEN MODEL AND HOW WOULD YOU MEASURE THESEWOULD YOU MEASURE THESE

24

Bibliography 27

INTRODUCTION TO THE CHOOSEN ORGANIZATION:INTRODUCTION TO THE CHOOSEN ORGANIZATION:

AEGON Group (AEGON N.V.), an international provider of life insurance, pensions and other long-term investment products. Based in The Hague, the Netherlands,

AEGON has around 40 million policyholders and approximately 28,000 employees around the world. It has assets, including all revenue-generating investments, of €405 billion (£348 billion).* AEGON’s mission is to help customers secure their

long-term financial futures.

AEGON has three main established markets: the United States, the Netherlands and the United Kingdom. Recently, AEGON has expanded its international

presence, pushing into new growth markets in the Americas, Asia and Central and Eastern Europe. At present, AEGON has businesses in more than 20 markets

across the globe.

AEGON has a clear, well-defined strategy, aimed at creating long-term value for all the company’s stakeholders. Committed to its core businesses (life insurance and pensions), AEGON seeks profitable, sustainable growth and pursues a multi-

channel approach to distribution to give customers access to products and services in the way that best suits them.

AEGON was created in 1983 – the result of a merger between two Dutch insurance companies – AGO and Ennia. And many of the companies who form

AEGON have a long history. For example, in the United States, Monumental Life based in Baltimore has been insuring people since 1858, while in the United

Kingdom, AEGON (a brand name of Scottish Equitable plc) has been in existence since the early 1830s.

*Source: AEGON N.V. quarterly results, 30 September 2010

TASK 1;TASK 1;

EXPLORE THE BACKGROUND TOEXPLORE THE BACKGROUND TO

CHANGE AFFECTING THECHANGE AFFECTING THE

ORGANIZATION.ORGANIZATION.

(A) IDENTIFY A RANGE OF MODELS OF CHANGE(A) IDENTIFY A RANGE OF MODELS OF CHANGE

MANAGEMENT AND EXPLAIN THE ANY THREE OF THESEMANAGEMENT AND EXPLAIN THE ANY THREE OF THESE

MODELS IN DETAIL.MODELS IN DETAIL.

McKINSEY 7-S MODEL:

The McKinsey 7-S Model was created by Tom Peters and Robert Waterman whilst

they were working for McKinsey & Company in 1978 (12Manager, 2007. According

to this model there are seven different factors that are a part of the model:

Shared values

Strategy

Structure

Systems

Style

Staff

Skills

Thomas (1992) Shared values are the centre of the model because it is what the

organization believes in and stands for, such as the mission of the company. Strategy

represents what the company plans to do react to any changes of its external

surroundings (Recklies, 2007). The structure refers to the organizational structure of

the company. Systems are the portion of the model that represents "the procedures,

processes and routines that characterize how the work should be done". Staff is quite

obvious in the fact that it is a proper representation of who is employed by the

organization and what they do within the organization (12Manage, 2007). Style

signifies the organizational culture and management styles that are utilized within the

organization (12Manage, 2007). Skills indicate the abilities and competencies of

either the employees or the organization holistically.

LEWINN’S CHANGE MANAGEMENT MODEL:

This model was developed in early 1950s by Kurt Lewin a psychologiest. Lewin

recognized following three stages of change (Syque, 2007),

Unfreeze

Ttransition

Refreeze

The majority of people tends to stay within certain safe zones and is hesitant of

change (Syque, 2007). These people tend to become comfortable in this unchanging

environment and become uncomfortable when any change occurs, even if it is a minor

one. In order to overcome this frozen state, we must initiate an unfreeze period, which

is done through motivation (Mind Tools, 2007). Motivation is important in any

organization, even when it is not changing. The transition period is when the change

is occurring, which is a voyage and not a step.. The transition period takes time

because people do not like change. At the end of the transitional voyage, comes the

next stage: refreeze. This is the stage where the company once again becomes stable.

KOTTER'S EIGHT STEP CHANGE MODEL;

According to this model there are eight steps that must be followed for successful

change.

Step One: Increase urgency for change

Step Two: Build a team for the change

Step Three:  Construct the vision

Step Four: Communicate

Step Five: Empower

Step Six: Create short term goals

Step Seven: Be persistent

Step Eight: Make the change permanent

Christian (2008) The first step is to create urgency for change. This means that we

have to convince the employees that this change is necessary for the company to

survive. This also means that we must communicate that the change is achievable

without any detrimental effects on their jobs. The next step is to build a team for the

change, which has to be of some respected employees within the company. The third

step is to construct the vision, which will show clear direction to how the change will

better the future of the company and their jobs (Rose, 2002). The fourth step is to

communicate this vision. In order for the vision to work it must be fully understand by

the employees, which means that it is necessary for the leaders of the change group to

follow this vision. The fifth step it to empower the employees to execute the change.

It is still important that the management follow the same guidelines as the employees

are too. By creating short term goals, we assist the employees to accept the change by

showing them progress. Rewards are very important at this step also. The seventh step

is about persistence because we should influence more change even after the short

term goals are met or the original plan for change will cease and die (Rose, 2002).

The final step is to make the change permanent by moving fitting it into the

company's culture and practices, such as promotion (Chapman, 2006). 

(B) IDENTIFY AND LIST THE FACTORS THAT ARE DRIVING

YOUR CHOSEN ORGANIZATION TO CHANGE, AND

SUGGEST AN APPROPRIATE MODEL OF CHANGE FOR

YOUR CHOSEN ORGANIZAITON WITH REASONS FOR

SUGGESTING THE MODEL.

In case of AEGON UK following are the deriving forces for organizational change.

Financial restructuring in the United Kingdom.

Growth in population and changes in demographic attributes.

Cultural diversification in the UK.

Changes in social dimensions of the United Kingdom.

Evolution of political orientation and policies.

Increase in the domestic purchasing power.

Institutional and policies neglect regarding the financial products.

High competitiveness and consequent challenges.

Deficient Management practices.

Inefficiency in processes.

In the personal opinion of the researcher the best choice of change model that should

be applicable in case of AEGON UK is Kotter’s Eight Step Change Model. The

researcher believes this is the best choice because it is simple mode. Researcher thinks

in this way because it fully prepares the employees of the company before the vision

is even created, which means that the actual transition will be much easier in the long

run. There are fewer disadvantages to this model than others. Overall it is the best fit

for most companies because substantial change is needed for the divisions because it's

history. This will also help ease the transition because the division has quite a history

compared to the rest of the company, so people are not as set in the ways, as they

would be if the division had been around longer. 

(C) IDENTIFY THE VALUE OF STRATEGIC INTERVENTION

TECHNIQUES AND WHAT INTERVENTION TECHNIQUES

WOULD YOU APPLY IN INTRODUCING CHANGE INTO YOUR

CHOSEN ORGANIZATION;

Michael (2006) There is no question that some form of strategic planning is key to an

organization’s future performance. However, there are several challenges to

implementing this type of planning in an organization. Large group interventions are

one set of methods for addressing these challenges.

In case of AEGON UK strategic planning implies planning for the long-term. The

time frame associated with this type of planning is from three to five years into the

future. Due to this timeframe, there are several challenges associated with long-range

planning. These include: creating a plan that is breakthrough in its orientation rather

than “more of the same,” getting all stakeholders to commit to the organization’s

strategies and to follow through on implementation of critical activities, and

decreasing cycle time in the planning process.

Karen (2008) In today’s world, organizations cannot afford these challenges. To

survive, they must be able to quickly create, deploy, and implement breakthrough

strategies that help them to continually anticipate and meet current and future

customer requirements. In doing so, they must be able to align all internal and

external resources around the plan. This sort of orientation necessitates approaches to

strategic planning that involve all employees and stakeholders in the planning process

and a planning process that can occur within a shortened time frame.

The researcher will prefer to adopt Large Group Interventions Technique to address

the proposed change in the chosen organization AEGON.

LARGE GROUP INTERVENTIONS:

Shiela (2004) Over the past 20 years, a number of large group intervention techniques

have emerged that more quickly effect large-scale change. As such, they have been

effective tools in dealing with some of the issues associated with strategic planning.

These intervention techniques include: Design, Participative Design, Simu-Real,

Work-outs, and Open Space Technology. As summarized in the book, Large Group

Interventions, by Barbara Benedict Bunker and Billie Alban, these approaches allow

organizations to involve anywhere from 30 to hundreds, if not a few thousand,

individuals in working together to accomplish a common outcome. They may come

together for a single day or multiple days or events. In the process of working

collaboratively, the organization can more quickly achieve what Kathleen

Dannemiller has coined “one heart and one mind”—a key factor in organizational

alignment.

These approaches have several defining characteristics. They are best used when:

Time is of the essence.

The issue is complex.

The purpose of the intervention is clear.

There is committed and involved leadership.

Benefits can be reaped from stakeholder involvement and ownership.

A design team that is representative of the whole is engaged to develop the

content and process pieces of the intervention as well as its follow-up, support,

and communications plan.

Real work occurs during the event.

Large group interventions have been used successfully in diverse industries hence the

researcher believes this type of strategic intervention technique will be effective for

AEGON UK.

TASK 2TASK 2

UNDERSTAND ISSUSES RELATING TOUNDERSTAND ISSUSES RELATING TO

STRATEGIC CHANGE IN THESTRATEGIC CHANGE IN THE

ORGANIZATIONORGANIZATION

(A) DISCUSS THE GENERIC BACKGROUND TO CHANGE

THAT EXISTS IN TODAY’S ECONOMY, AND THE SPECIFIC

DRIVES THAT MOTIVATED YOUR CHOSEN ORGANIZATION

TO CONSIDER CHANGE.

World appears to be integrating economically, poli t ically and

culturally. Irrespective of the national boundaries huge developments

in information, communication and technology has taken place.

Ownership patters of corporate sector al l over the world have become

more complex l ike joint ventures, cross-border acquisit ions etc.

Global strategies have emerged in the production of goods and

services, distr ibution and management of labour. These have had an

immense impact on business activit ies. The world economy is now

more closely interl inked and the finance has become a global

resource.

Ricky (2009) In the current economic circumstances organizations are

facing both external and internal forces that ult imately make change

unavoidable. External forces such as new work force demographics;

changing expectations about quali ty, productivity, and customer

satisfaction; and new technologies are dramatically affecting the

operating environment in organizations globe wise. Internally,

f inancial l imitations, the condit ion to do more with less, cross-

functional groups, mergers and acquisit ions and empowered

employees all influences organizations’ posit ion to compete in the

global marketplace.

James (1957) Outsourcing, automation, best practices, downsizing,

globalization, reposit ioning, re-engineering, and all other such terms

refer towards change to your work force. I t does not matter how do

you define this change the fact is that challenge to the organization is

inevitable; balancing the demands and hopes among the stakeholders

including customer, employees, management and shareholders.

Without balance, an organization risks an anxious work force that may

yield declining output. The magnitude of the success of the

organization depends how an organization decides to motive,

correspond and incorporate change into the work force.

So we can say that change is a process not an event. In the corporate

world, when any or al l of the factors such as; environment,

technology, task, structure or people are altered fully or part ial ly, the

phenomenon is called as change.

Dianna (2005) Whenever in the corporate environment deriving forces

and restraining forces are not in equil ibrium, there is a need for the

change.

In case of the AEGON UK there were many deriving forces that

caused the background of change in AEGON UK. AEGON UK was

although was bearing international repute but st i l l i t didn’t had band

awareness by the name of AEGON in the United Kingdom. The

philosophy of the financial services products that were being sold by

AEGON UK or i ts competitors were quite difficult to understand by

the potential customers. Life expectancy in the United Kingdom has

increased in the recent years so people can expect to be retired for

longer age and similarly many individual never think i t worthy to plan

about their ret irement properly, on the other hand there was a derive

from the government to reduce dependency on the state in old age so

there was a need to make a social awareness among the people for the

benefits of having the financial products sold by the AEGON UK to

secure there future because benefit of these investments usually

realised in later years. AEGON was not well recognised in the areas

other than pensions. Above stated reasons are the few of those that

lead management to introduce change in the corporate structure and

strategy of the AEGON UK Limited.

(B) CONSIDER THE IMPLICAITONS IN TERMS OF

RESOURCES, FOR YOUR CHOSEN ORGANIZATION IF IT

FAILED TO RESPOND TO THE NEED FOR STRATEGIC

CHANGE.

Human and other Capacity Requirements – The human capacity and skills required

to implement the strategy, current and potential sources of these resources. Also, other

capacity needs required such as internal systems, management structures, engaged

partners and Network NOs and POs, and a supportive legal framework etc.

Financial Requirements – The funding required implementing the proposed

management strategy, current and potential sources of these funds, and the most

critical resource and funding gaps.

Risk Assessment and Mitigation Strategy – What risks exist and how they can be

addressed.

Estimate of Project Lifespan, Sustainability, and Exit Strategy – How long the

strategy will stand implemented, after how long and why strategy will require

modifications (if feasible to do so), and how it will ensure sustainability of the

corporate objective achievements.

Thomas (1992) ‘Strategic Change Management Plan’ may only be considered

complete when these components have been defined, at least in broad terms. As the

project moves into change implementation, several of these components are then

defined in more detail and tested in reality.

TASK 3TASK 3

DEVELOP SYSTEMS FORDEVELOP SYSTEMS FOR

UNDERSTANDING AND INVOLVINGUNDERSTANDING AND INVOLVING

OTHERS IN THE PROCESS OF CHANGEOTHERS IN THE PROCESS OF CHANGE

(A) IDENTIFY THE KEY STAKEHOLDERS IN YOUR CHOSEN

ORGANIZATION AND PROPOSE SYSTEMS TO INVOLVE

THOSE STAKEHOLDERS IN THE PLANNING OF CHANGE.

Karen (2008) Stake holders are the people who are directly affected

by the decisions of an enti ty. Stake holder may be internal

(management, employees etc.) or external (government, suppliers,

banks, media, shareholders etc). Different stake holders have different

expectations from the organization. In the process of change, stake

holders can be involved in a number of ways suck as;

Involve them in problem solving.

Keep them up to date of standing towards corporate objectives?

Take actions on feedback received by them?

Mobilize the correct resources at the right moment to recognize

the implementation plan?

In order to involve the stake holders to the process of change the new

chief executive officer of AEGON carried out the following actions;

Simplification of Financial Services; for the purpose of involving

the customers to the process of change the Chief Executive Officer of

AEGON adopted a customer focused approach. The CEO simplified

the ever complex financial services in terms of their understanding

and i t was now made very simple to understand. Now the customers

know that what they are investing into and what return their

investment is expected to yield at the end of the contract . Earlier

customers have always been confused between the complex

calculations. Now the customers are happy because they don’t need

any financial interpreter to understand the ins and outs of the products

offered by the AEGON.

Workforce Development; An-other very important stake holder of the

organization is the employees’. Mark (2005) These are actually the

people who are practically responsible for to make the change process

successful or not. Before implementing the change the new CEO took

the employees in confidence and brief them about the fact that what

AEGON stands today and what AEGON wants to stand in the future

and he also address the forces reasoning this change. Next step is to

develop the new skil led required to implement the change, the CEO

introduced job rotation which involves progression from one job to

the other job. Hence i t provided individual employees’ with a

coherent career path. CEO also arranged a Management Development

Programme in collaboration with a leading management college for

the training of the workforce.

Creating Distinct Market Place; To refresh the brand identi ty of

AEGON into the minds of the people the CEO carried out an external

promotional campaign to highlight the relationship between the

locally famous Scott ish Equitable and AEGON. Also the CEO spoke to

the media stat ing the reasons for the change and how the change will

be useful for the stakeholders.

(B) ANALYSE AND EVALUATE THE ADVANTAGES AND

DISADVANTAGES OF THESE SYSTEMS.

The systems stated above in part (A) were used to involve the

different people into the process of change. The need for this change

was actually those external and internal forces that were affecting the

performance of the AEGON. The AEGON business was not going well

due to a number of key issues. Due to those issues the Chief Executive

Officer had to bring some changes into the l ine of operation and the

way of operations by AEGON.

The Chief Executive Officer related this change programme being

fully customer focused and associated this whole change project with

certain behaviours which are; think customer; embrace change,

encourage excellence, act with integrity, decisive action, work

together, learn and grow & relate and communicate. The employees’

were trained about these behaviours by a leading management

insti tute.

Another reason for this system of change relating to the problem that

AEGON was facing was that the consumers were not aware about the

products and services provided by AEGON. The customers had always

been confused about understanding their investment policy. They had

never been able to make comparison among the services provided by

AEGON neither about the possible outcome if they invest into them.

As to the reaction of the fact the Chief Executive Officer simplified

the description of the product to the extent that every person could

understand and calculate the financial f lows regarding the products

offered by AEGON. This strategy really worked and AEGON have a

very posit ive response from its customers.

Mark (2005) The other system that the Chief Executive Officer

developed was to train the workforce. First the employees’ were

addressed about the need for the change and the possible proposed

changes and before implementing the change i t is very essential that

the workforce is capable enough to perform their duties into the new

environment. For the purpose workforce was developed with rotating

job descriptions and Management Development Programme was

conducted by a leading management college to train the employees

about how to respond to the change.

Finally the Chief Executive Officer had to respond to the most vital

reason for the change that is the fact that AEGON was trading under

many different trade names into the same geographical location. This

was the greatest reason because of which AEGON had not taken a

dist inct market place despite of such a historical background and

multinational presence. The CEO for the purpose spoke to the media

and addressed the whole si tuation, besides that many others measures

were taken to establish a brand posit ion, for instance Scott ish

Equitable was changed to AEGON Scottish-Equitable representing the

repute of the local company and the brand of AEGON similarly

external promotional campaign was incorporated into the system.

(C) EXPLAIN HOW WOULD YOU DEVELOP A CHANGE(C) EXPLAIN HOW WOULD YOU DEVELOP A CHANGE

MANAGEMENT STRATEGY WITH THE KEYMANAGEMENT STRATEGY WITH THE KEY

STAKEHOLDERS. STAKEHOLDERS.

"Stakeholder management is critical to the success of introducing change in the

organization .The more people are being affected by change, the more likely it is that

your actions will impact people who have power and influence over your projects.

These people could be strong supporters of your work – or they could block it.

Harriet (2005) Stakeholder Management Strategy is an important discipline that

successful people use to win support from others. It helps them ensure that their

projects succeed where others fail.

Rob (2008) Stakeholder Analysis is the technique used to identify the key people who

have to be won over. You then use Stakeholder Planning to build the support that

helps you succeed.

The benefits of using a stakeholder-based approach are that:

The opinions of the most powerful stakeholders to shape change

implementation at an early stage. Not only does this make it more likely

that they will support you, their input can also improve the quality of your

project

Gaining support from powerful stakeholders can help you to win more

resources – this makes it more likely that your projects will be successful

By communicating with stakeholders early and frequently, you can ensure

that they fully understand what you are doing and understand the benefits

of your project – this means they can support you actively when necessary

By anticipating what people's reaction to your project may be, and build

into your plan the actions that will win people's support.

(D) WHAT WOULD BE YOUR STRATEGY FOR MANAGING(D) WHAT WOULD BE YOUR STRATEGY FOR MANAGING

RESISTANCE TO CHANGE IN THIS ORGANIZATION?RESISTANCE TO CHANGE IN THIS ORGANIZATION?

The researcher has developed following strategy for managing resistance to change in

the AEGON.

There will be a workflow process in order to achieve results for mutual

benefits for employees and organization.

There will be an Authority Process in order to direct behaviour in the interests

of the organization and its participants.

There would be a Reward and Penalty Process to induce people to behave in a

way required by the interests of the organization and its participants and / or to

behave in a way making associated activity possible.

There will be a Perpetuation Process to maintain, replenish, and make

adequate the quantity and quality of social and natural resources utilized by

the organization and its participants.

There must be an Identification Process to develop a concept of the wholeness,

uniqueness and significance of the organization. This is usually accompanied

by efforts to select and define clearly understood emotionally toned symbols,

concepts, or other such factors which will help individual participants identify

the uniqueness of the organization as a whole, which in turn automatically

helps to define the uniqueness of the organization in the larger environment in

which it is embedded.

There will be a communication process to provide for the exchange of

information, ideas, feelings and values etc utilized in all activities to the stake

holders.

There must be an evaluation process which establishes criteria for and defines

levels of utility and value for people, materials, ideas, and activities and which

rates them and allocates them to these levels.

TASK 4TASK 4

PLAN TO IMPLEMENT MODELS FORPLAN TO IMPLEMENT MODELS FOR

ENSURING ONGOING CHANGEENSURING ONGOING CHANGE

(A) IDENTIFY APPROPRIATE MODELS FOR IMPLEMENTING(A) IDENTIFY APPROPRIATE MODELS FOR IMPLEMENTING

CHANGE THAT SUITE YOUR CHOSEN ORGANIZAITON.CHANGE THAT SUITE YOUR CHOSEN ORGANIZAITON.

Jane (1998) Model for change refers towards the overall strategy to

incorporate change into the organizational environment. A model of

change is usually implemented into the following steps;

Access the necessity of change

Forming a powerful al l iance

Creating an idea for change

Communicate the vision

Remove barriers

Incorporate the change into organization

The Chief Executive Officer implemented the same model to

incorporate change into the organization. The CEO realised the need

for the changed and he came to know that company is not doing well

as compared to i ts competitors, the legislative restrict ion of price has

decreased the profitabil i ty lack of brand awareness gett ing worst and

difficulty of the customers understanding the soul of the services

offered by the AEGON were the factors that required an immediate

change into the organization at a large scale. I t was what AEGON was

at the moment. The CEO conducted a SWOT analysis of the firm.

After gett ing the si tuation the CEO decided to develop a new

behavioural framework for the staff which was known as 8 behaviours

framework and also arranged managerial training for the workforce.

The CEO further addressed to the stakeholders of the organization to

communicate his vision to them by simplifying the financial services,

developing a workforce and arranging a brand awareness campaign.

The CEO also spoke to the media about this change process and the

reasons for the change. Hence model implemented by the CEO of

AEGON UK brought about considerable posit ive change to the

organization and gave i t a new line of direction towards the desired

goals and objectives.

(B) HOW WOULD YOU IMPLEMENT THIS MODEL IN(B) HOW WOULD YOU IMPLEMENT THIS MODEL IN

CHOSEN ORGANIZATION WHAT IMPROVEMENTS DO YOUCHOSEN ORGANIZATION WHAT IMPROVEMENTS DO YOU

EXPECT TO ACHIEVE BY IMPLEMENTING YOUR CHOSENEXPECT TO ACHIEVE BY IMPLEMENTING YOUR CHOSEN

MODEL AND HOW WOULD YOU MEASURE THESE?MODEL AND HOW WOULD YOU MEASURE THESE?

The plan for the change was implemented into the various steps such

as discovery phase to analyze where the AEGON is r ight now, where

i t wants to be and what actions are required to meet the objectives set

by the Chief Executive Officer to become the best long term saving

and protection business into the United Kingdom. Discovery phase

revealed the reasons for changes and weaknesses and strengths of the

organization. After the discovery phase the next step was to involve

the appropriate stake holders into the process of change. The chief

executive officer involved various stakeholders in different effective

manner as discussed previously. The CEO further redeveloped the

organizational behavioural framework and arranged the training of the

staff members.

The outcomes of the efforts made by the CEO were extremely

encouraging and rewarding for the company. Before the change there

was confusion among the people about the recognition of AEGON but

after the heavy promotion of the brand AEGON with Scott ish-

Equitable created a more reliable image of the AEGON into the minds

of the people. Further to that the brand carried a new more powerful

and prestigious look as AEGON Scottish-Equitable. The behaviour of

the employees changed altogether, now they behave with more

customer focused approach. Now the employees are concern to

provide useful and relevant services to their exist ing and potential

customers and the organization is always doing i ts level best to do

what is really important to their customers. By the change into the

structure of AEGON now the customers are being offered more

choices of services. AEGON launched new and ground-breaking

products l ike the 5 for Life annuity has facil i tated to change the way

in which consumers can look at their ret irement income. AEGON

providing the levels of return promised and being responsible for any

risks associated with doing so i t provides more certainty about levels

of income for the consumer.

In short as the result of the change implement by the CEO of AEGON

the company rebuil t i ts brand reputation, became more customer

focused, started to provide more innovative products and became more

popular among the consumers and ult imately the business has grown

to a gigantic extent.

In order to become more customers’ focused the new Chief Executive

Officer decided to develop a new organizational behaviour framework

to support the brand values of AEGON. Behavioural framework is the

structured pre-defined codes of behaviour how the individuals

working within the organization are suppose to behave among

themselves and to the people outside the organization. Presence of the

behavioural framework gives rise to the similar behavioural and

ethical values of al l the individuals at al l levels with in the

organizational. Behavioural framework developed by the AEGON was

mainly focusing 8 behavioural values which are;

THINK CUSTOMER;

EMBRACE CHANGE;

ENCOURAGE EXCELLENCE;

ACT WITH INTEGRITY;

DECISIVE ACTIONS;

WORK TOGETHER;

LEARN & GROW;

RELATE & COMMUNICATE

As the part of their strategy AEGON also undertook an audit to look

at the two aspects which were the internal posit ion of the company

and how AEGON was posit ioned internally into the market

respectively. The audit revealed that AEGON was firmly posit ioned

within the market. I ts workforce was known for their considerable

expertise, innovation and clari ty of communication. The external audit

also helped to determine where AEGON was placed in relation to i ts

competitors. This audit provided a very important vision to the

decisions that were needed to init iate the change process.

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