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Aegon Group international provider of life insurance and pensions

Introduction TO THE CHOOSEN ORGANIZATION:

AEGON Group ( AEGON N.V. ) , an international supplier of life insurance, pensions and other long-run investing merchandises. Based in The Hague, the Netherlands, AEGON has about 40 million policyholders and about 28,000 employees around the universe. It has assets, including all revenue-generating investings, of a‚¬405 billion ( ?348 billion ) . * AEGON ‘s mission is to assist clients procure their long-run fiscal hereafters.

AEGON has three chief established markets: the United States, the Netherlands and the United Kingdom. Recently, AEGON has expanded its international presence, forcing into new growing markets in the Americas, Asia and Central and Eastern Europe. At present, AEGON has concerns in more than 20 markets across the Earth.

AEGON has a clear, chiseled scheme, aimed at making long-run value for all the company ‘s stakeholders. Committed to its nucleus concerns ( life insurance and pensions ) , AEGON seeks profitable, sustainable growing and pursues a multi-channel attack to distribution to give clients entree to merchandises and services in the manner that best suits them.

AEGON was created in 1983 – the consequence of a amalgamation between two Dutch insurance companies – AGO and Ennia. And many of the companies who form AEGON have a long history. For illustration, in the United States, Monumental Life based in Baltimore has been sing people since 1858, while in the United Kingdom, AEGON ( a trade name name of Scottish Equitable plc ) has been in being since the early 1830s.

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

TASK 1 ;

Research THE BACKGROUND TO CHANGE AFFECTING THE ORGANIZATION.

( A ) IDENTIFY A RANGE OF MODELS OF CHANGE MANAGEMENT AND EXPLAIN THE ANY THREE OF THESE 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 & A ; Company in 1978 ( 12Manager, 2007. Harmonizing to this theoretical account there are seven different factors that are a portion of the theoretical account:

Shared values

Scheme

Structure

Systems

Manner

Staff

Skills

Shared values are the Centre of the theoretical account because it is what the organisation believes in and bases for, such as the mission of the company. Scheme represents what the company plans to make respond to any alterations of its external milieus ( Recklies, 2007 ) . The construction refers to the organisational construction of the company. Systems are the part of the theoretical account that represents “ the processs, procedures and modus operandis that characterize how the work should be done ” . Staff is rather obvious in the fact that it is a proper representation of who is employed by the organisation and what they do within the organisation ( 12Manage, 2007 ) . Style signifies the organisational civilization and direction manners that are utilized within the organisation ( 12Manage, 2007 ) . Skills indicate the abilities and competences of either the employees or the organisation holistically.

LEWINN ‘S CHANGE MANAGEMENT MODEL:

This theoretical account was developed in early 1950s by Kurt Lewin a psychologiest. Lewin recognized following three phases of alteration ( Syque, 2007 ) ,

Unfreeze

Ttransition

Refreeze

The bulk of people tends to remain within certain safe zones and is hesitating of alteration ( Syque, 2007 ) . These people tend to go comfy in this unchanging environment and go uncomfortable when any alteration occurs, even if it is a minor 1. In order to get the better of this frozen province, we must originate an unfreeze period, which is done through motive ( Mind Tools, 2007 ) . Motivation is of import in any organisation, even when it is non altering. The passage period is when the alteration is happening, which is a ocean trip and non a step.. The passage period takes clip because people do non like alteration. At the terminal of the transitional ocean trip, comes the following phase: refreeze. This is the phase where the company one time once more becomes stable.

Kotter ‘s Eight Step Change Model ;

Harmonizing to this theoretical account there are eight stairss that must be followed for successful alteration.

Measure One: Addition urgency for alteration

Measure Two: Construct a squad for the alteration

Measure Three: A Construct the vision

Measure Four: Communicate

Measure Five: Empower

Measure Six: Create short term ends

Measure Seven: Be relentless

Measure Eight: Make the alteration permanent

A The first measure is to make urgency for alteration. This means that we have to convert the employees that this alteration is necessary for the company to last. This besides means that we must pass on that the alteration is accomplishable without any damaging effects on their occupations. The following measure is to construct a squad for the alteration, which has to be of some respected employees within the company. The 3rd measure is to build the vision, which will demo clear way to how the alteration will break the hereafter of the company and their occupations ( Rose, 2002 ) . The 4th measure is to pass on this vision. In order for the vision to work it must be to the full understand by the employees, which means that it is necessary for the leaders of the alteration group to follow this vision. The 5th measure it to authorise the employees to put to death the alteration. It is still of import that the direction follow the same guidelines as the employees are excessively. By making short term ends, we assist the employees to accept the alteration by demoing them advancement. Wagess are really of import at this measure besides. The 7th measure is about continuity because we should act upon more alteration even after the short term ends are met or the original program for alteration will discontinue and decease ( Rose, 2002 ) . The concluding measure is to do the alteration permanent by traveling suiting it into the company ‘s civilization and patterns, such as publicity ( Chapman, 2006 ) .A

( 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 instance of AEGON UK following are the derivation forces for organisational alteration.

Fiscal restructuring in the United Kingdom.

Growth in population and alterations in demographic properties.

Cultural variegation in the UK.

Changes in societal dimensions of the United Kingdom.

Development of political orientation and policies.

Addition in the domestic buying power.

Institutional and policies neglect sing the fiscal merchandises.

High fight and attendant challenges.

Deficient Management patterns.

Inefficiency in procedures.

In the personal sentiment of the research worker the best pick of alteration theoretical account that should be applicable in instance of AEGON UK is Kotter ‘s Eight Step Change Model. The research worker believes this is the best pick because it is simple manner. Researcher thinks in this manner because it to the full prepares the employees of the company before the vision is even created, which means that the existent passage will be much easier in the long tally. There are fewer disadvantages to this theoretical account than others. Overall it is the best tantrum for most companies because significant alteration is needed for the divisions because it ‘s history. This will besides assist ease the passage because the division has rather a history compared to the remainder of the company, so people are non as set in the ways, as they would be if the division had been around longer.A

( C ) IDENTIFY THE VALUE OF STRATEGIC INTERVENTION TECHNIQUES AND WHAT INTERVENTION TECHNIQUES WOULD YOU APPLY IN INTRODUCING CHANGE INTO YOUR CHOSEN ORGANIZATION ;

There is no inquiry that some signifier of strategic planning is cardinal to an organisation ‘s future public presentation. However, there are several challenges to implementing this type of planning in an organisation. Large group intercessions are one set of methods for turn toing these challenges.

In instance of AEGON UK strategic planning implies be aftering for the long-run. The clip frame associated with this type of planning is from three to five old ages into the hereafter. Due to this timeframe, there are several challenges associated with long-range planning. These include: making a program that is breakthrough in its orientation instead than “ more of the same, ” acquiring all stakeholders to perpetrate to the organisation ‘s schemes and to follow through on execution of critical activities, and diminishing rhythm clip in the planning procedure.

In today ‘s universe, organisations can non afford these challenges. To last, they must be able to rapidly make, deploy, and implement discovery schemes that help them to continually anticipate and fitting current and future client demands. In making so, they must be able to aline all internal and external resources around the program. This kind of orientation necessitates approaches to strategic planning that involve all employees and stakeholders in the planning procedure and a planning procedure that can happen within a sawed-off clip frame.

The research worker will prefer to follow Large Group Interventions Technique to turn to the proposed alteration in the chosen organisation AEGON.

Large GROUP INTERVENTIONS:

Over the past 20 old ages, a figure of big group intercession techniques have emerged that more rapidly consequence large-scale alteration. As such, they have been effectual tools in covering with some of the issues associated with strategic planning. These intercession 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 attacks allow organisations to affect anyplace from 30 to 100s, if non a few thousand, persons in working together to carry through a common result. They may come together for a individual twenty-four hours or multiple yearss or events. In the procedure of working collaboratively, the organisation can more rapidly accomplish what Kathleen Dannemiller has coined “ one bosom and one head ” -a cardinal factor in organisational alliance.

These attacks have several specifying features. They are best used when:

Time is of the kernel.

The issue is complex.

The intent of the intercession is clear.

There is committed and involved leading.

Benefits can be reaped from stakeholder engagement and ownership.

A design squad that is representative of the whole is engaged to develop the content and procedure pieces of the intercession every bit good as its followup, support, and communications program.

Real work occurs during the event.

Large group intercessions have been used successfully in diverse industries hence the research worker believes this type of strategic intercession technique will be effectual for AEGON UK.

Undertaking 2

UNDERSTAND ISSUSES RELATING TO STRATEGIC CHANGE IN THE ORGANIZATION

( 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 incorporating economically, politically and culturally. Irrespective of the national boundaries immense developments in information, communicating and engineering has taken topographic point. Ownership spiels of corporate sector all over the universe have become more complex like joint ventures, cross-border acquisitions etc. Global schemes have emerged in the production of goods and services, distribution and direction of labor. These have had an huge impact on concern activities. The universe economic system is now more closely interlinked and the finance has become a planetary resource.

In the current economic fortunes organisations are confronting both external and internal forces that finally make alteration ineluctable. External forces such as new work force demographics ; altering outlooks about quality, productiveness, and client satisfaction ; and new engineerings are dramatically impacting the operating environment in organisations globe wise. Internally, fiscal restrictions, the status to make more with less, cross-functional groups, amalgamations and acquisitions and empowered employees all influences organisations ‘ place to vie in the planetary market place.

Outsourcing, mechanization, best patterns, retrenchment, globalisation, shifting, re-engineering, and all other such footings refer towards change to your work force. It does non count how make you specify this alteration the fact is that challenge to the organisation is inevitable ; equilibrating the demands and hopes among the stakeholders including client, employees, direction and stockholders. Without balance, an organisation risks an dying work force that may give worsening end product. The magnitude of the success of the organisation depends how an organisation decides to motive, correspond and integrated alteration into the work force.

So we can state that alteration is a procedure non an event. In the corporate universe, when any or all of the factors such as ; environment, engineering, undertaking, construction or people are altered to the full or partly, the phenomenon is called as alteration.

Whenever in the corporate environment deducing forces and keeping forces are non in equilibrium, there is a demand for the alteration.

In instance of the AEGON UK there were many deducing forces that caused the background of alteration in AEGON UK. AEGON UK was although was bearing international reputation but still it did n’t had band awareness by the name of AEGON in the United Kingdom. The doctrine of the fiscal services merchandises that were being sold by AEGON UK or its rivals were rather hard to understand by the possible clients. Life anticipation in the United Kingdom has increased in the recent old ages so people can anticipate to be retired for longer age and likewise many single ne’er think it worthy to be after about their retirement decently, on the other manus there was a derive from the authorities to cut down dependence on the province in old age so at that place was a demand to do a societal consciousness among the people for the benefits of holding the fiscal merchandises sold by the AEGON UK to procure there future because benefit of these investings normally realised in ulterior old ages. AEGON was non good recognised in the countries other than pensions. Above stated grounds are the few of those that lead direction to present alteration in the corporate construction and scheme 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 accomplishments required to implement the scheme, current and possible beginnings of these resources. Besides, other capacity demands required such as internal systems, direction constructions, engaged spouses and Network NOs and POs, and a supportive legal model etc.

Fiscal Requirements – The support required implementing the proposed direction scheme, current and possible beginnings of these financess, and the most critical resource and support spreads.

Risk Assessment and Mitigation Strategy – What hazards exist and how they can be addressed.

Estimate of Project Lifespan, Sustainability, and Exit Strategy – How long the scheme will stand implemented, after how long and why scheme will necessitate alterations ( if executable to make so ) , and how it will guarantee sustainability of the corporate nonsubjective accomplishments.

‘Strategic Change Management Plan ‘ may merely be considered complete when these constituents have been defined, at least in wide footings. As the undertaking moves into alteration execution, several of these constituents are so defined in more item and tested in world.

Undertaking 3

DEVELOP SYSTEMS FOR UNDERSTANDING AND INVOLVING OTHERS 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.

Stake holders are the people who are straight affected by the determinations of an entity. Stake holder may be internal ( direction, employees etc. ) or external ( authorities, providers, Bankss, media, stockholders etc ) . Different interest holders have different outlooks from the organisation. In the procedure of alteration, interest holders can be involved in a figure of ways suck as ;

Involve them in job resolution.

Keep them up to day of the month of standing towards corporate aims?

Take actions on feedback received by them?

Mobilize the right resources at the right minute to acknowledge the execution program?

In order to affect the interest holders to the procedure of alteration the new main executive officer of AEGON carried out the undermentioned actions ;

Simplification of Financial Services ; for the intent of affecting the clients to the procedure of alteration the Chief Executive Officer of AEGON adopted a client focused attack. The CEO simplified the of all time complex fiscal services in footings of their apprehension and it was now made really simple to understand. Now the clients know that what they are puting into and what return their investing is expected to give at the terminal of the contract. Earlier clients have ever been confused between the complex computations. Now the clients are happy because they do n’t necessitate any fiscal translator to understand the Immigration and Naturalization Services and outs of the merchandises offered by the AEGON.

Workforce Development ; An-other really of import interest holder of the organisation is the employees ‘ . These are really the people who are practically responsible for to do the alteration procedure successful or non. Before implementing the alteration the new CEO took the employees in assurance and brief them about the fact that what AEGON stands today and what AEGON wants to stand in the hereafter and he besides address the forces concluding this alteration. Following measure is to develop the new skilled required to implement the alteration, the CEO introduced occupation rotary motion which involves patterned advance from one occupation to the other occupation. Hence it provided single employees ‘ with a consistent calling way. CEO besides arranged a Management Development Programme in coaction with a prima direction college for the preparation of the work force.

Making Distinct Market Place ; To review the trade name individuality of AEGON into the heads of the people the CEO carried out an external promotional run to foreground the relationship between the locally celebrated Scottish Equitable and AEGON. Besides the CEO spoke to the media saying the grounds for the alteration and how the alteration will be utile for the stakeholders.

( B ) ANALYSE AND EVALUATE THE ADVANTAGES AND DISADVANTAGES OF THESE SYSTEMS.

The systems stated above in portion ( A ) were used to affect the different people into the procedure of alteration. The demand for this alteration was really those external and internal forces that were impacting the public presentation of the AEGON. The AEGON concern was non traveling good due to a figure of cardinal issues. Due to those issues the Chief Executive Officer had to convey some alterations into the line of operation and the manner of operations by AEGON.

The Chief Executive Officer related this alteration programme being to the full client focused and associated this whole alteration undertaking with certain behaviors which are ; believe client ; embrace alteration, encourage excellence, act with unity, decisive action, work together, learn and turn & amp ; relate and communicate. The employees ‘ were trained about these behaviors by a prima direction institute.

Another ground for this system of alteration associating to the job that AEGON was confronting was that the consumers were non cognizant about the merchandises and services provided by AEGON. The clients had ever been confused about understanding their investing policy. They had ne’er been able to do comparing among the services provided by AEGON neither about the possible result if they invest into them. As to the reaction of the fact the Chief Executive Officer simplified the description of the merchandise to the extent that every individual could understand and cipher the fiscal flows sing the merchandises offered by AEGON. This scheme truly worked and AEGON have a really positive response from its clients.

The other system that the Chief Executive Officer developed was to develop the work force. First the employees ‘ were addressed about the demand for the alteration and the possible proposed alterations and before implementing the alteration it is really indispensable that the work force is capable plenty to execute their responsibilities into the new environment. For the purpose work force was developed with revolving occupation descriptions and Management Development Programme was conducted by a prima direction college to develop the employees about how to react to the alteration.

Finally the Chief Executive Officer had to react to the most critical ground for the alteration that is the fact that AEGON was merchandising under many different trade names into the same geographical location. This was the greatest ground because of which AEGON had non taken a distinguishable market topographic point despite of such a historical background and transnational presence. The Chief executive officer for the purpose radius to the media and addressed the whole state of affairs, besides that many others steps were taken to set up a trade name place, for case Scottish Equitable was changed to AEGON Scottish-Equitable stand foring the reputation of the local company and the trade name of AEGON likewise external promotional run was incorporated into the system.

( C ) EXPLAIN HOW WOULD YOU DEVELOP A CHANGE MANAGEMENT STRATEGY WITH THE KEY STAKEHOLDERS.

“ Stakeholder direction is critical to the success of presenting alteration in the organisation.The more people are being affected by alteration, the more likely it is that your actions will impact people who have power and influence over your undertakings. These people could be strong protagonists of your work – or they could barricade it.

Stakeholder Management Strategy is an of import subject that successful people use to win support from others. It helps them guarantee that their undertakings win where others fail.

Stakeholder Analysis is the technique used to place the cardinal people who have to be won over. You so utilize Stakeholder Planning to construct the support that helps you win.

The benefits of utilizing a stakeholder-based attack are that:

The sentiments of the most powerful stakeholders to determine alter execution at an early phase. Not merely does this do it more likely that they will back up you, their input can besides better the quality of your undertaking

Deriving support from powerful stakeholders can assist you to win more resources – this makes it more likely that your undertakings will be successful

By pass oning with stakeholders early and often, you can guarantee that they to the full understand what you are making and understand the benefits of your undertaking – this means they can back up you actively when necessary

By expecting what people ‘s reaction to your undertaking may be, and construct into your program the actions that will win people ‘s support.

( D ) WHAT WOULD Be YOUR STRATEGY FOR MANAGING RESISTANCE TO CHANGE IN THIS ORGANIZATION?

The research worker has developed following scheme for pull offing opposition to alter in the AEGON.

There will be a workflow procedure in order to accomplish consequences for common benefits for employees and organisation.

There will be an Authority Process in order to direct behavior in the involvements of the organisation and its participants.

There would be a Reward and Penalty Process to bring on people to act in a manner required by the involvements of the organisation and its participants and / or to act in a manner doing associated activity possible.

There will be a Perpetuation Process to keep, refill, and do equal the measure and quality of societal and natural resources utilized by the organisation and its participants.

There must be an Identification Process to develop a construct of the integrity, uniqueness and significance of the organisation. This is normally accompanied by attempts to choose and specify clearly understood emotionally toned symbols, constructs, or other such factors which will assist single participants place the singularity of the organisation as a whole, which in bend automatically helps to specify the singularity of the organisation in the larger environment in which it is embedded.

There will be a communicating procedure to supply for the exchange of information, thoughts, feelings and values etc utilized in all activities to the interest holders.

There must be an rating procedure which establishes standards for and defines degrees of public-service corporation and value for people, stuffs, thoughts, and activities and which rates them and allocates them to these degrees.

Undertaking 4

Plan TO IMPLEMENT MODELS FOR ENSURING ONGOING CHANGE

( A ) IDENTIFY APPROPRIATE MODELS FOR IMPLEMENTING CHANGE THAT SUITE YOUR CHOSEN ORGANIZAITON.

Model for alteration refers towards the overall scheme to integrate alteration into the organisational environment. A theoretical account of alteration is normally implemented into the undermentioned stairss ;

Access the necessity of alteration

Forming a powerful confederation

Making an thought for alteration

Communicate the vision

Remove barriers

Incorporate the alteration into organisation

The Chief Executive Officer implemented the same theoretical account to integrate alteration into the organisation. The Chief executive officer realised the demand for the changed and he came to cognize that company is non making good every bit compared to its rivals, the legislative limitation of monetary value has decreased the profitableness deficiency of trade name consciousness acquiring worst and trouble of the clients understanding the psyche of the services offered by the AEGON were the factors that required an immediate alteration into the organisation at a big graduated table. It was what AEGON was at the minute. The CEO conducted a SWOT analysis of the house.

After acquiring the state of affairs the CEO decided to develop a new behavioral model for the staff which was known as 8 behaviors model and besides arranged managerial preparation for the work force. The CEO farther addressed to the stakeholders of the organisation to pass on his vision to them by simplifying the fiscal services, developing a work force and set uping a trade name consciousness run. The CEO besides spoke to the media about this alteration procedure and the grounds for the alteration. Hence theoretical account implemented by the CEO of AEGON UK brought about considerable positive alteration to the organisation and gave it a new line of way towards the coveted ends and aims.

( B ) HOW WOULD YOU IMPLEMENT THIS MODEL IN CHOSEN ORGANIZATION WHAT IMPROVEMENTS DO YOU EXPECT TO ACHIEVE BY IMPLEMENTING YOUR CHOSEN MODEL AND HOW WOULD YOU MEASURE THESE?

The program for the alteration was implemented into the assorted stairss such as find stage to analyse where the AEGON is right now, where it wants to be and what actions are required to run into the aims set by the Chief Executive Officer to go the best long term salvaging and protection concern into the United Kingdom. Discovery stage revealed the grounds for alterations and failings and strengths of the organisation. After the find stage the following measure was to affect the appropriate interest holders into the procedure of alteration. The main executive officer involved assorted stakeholders in different effectual mode as discussed antecedently. The CEO further redeveloped the organisational behavioral model and arranged the preparation of the staff members.

The results of the attempts made by the CEO were highly encouraging and honoring for the company. Before the alteration there was confusion among the people about the acknowledgment of AEGON but after the heavy publicity of the trade name AEGON with Scottish-Equitable created a more dependable image of the AEGON into the heads of the people. Further to that the trade name carried a new more powerful and esteemed expression as AEGON Scottish-Equitable. The behavior of the employees changed wholly, now they behave with more client focused attack. Now the employees are concern to supply utile and relevant services to their existing and possible clients and the organisation is ever making its degree best to make what is truly of import to their clients. By the alteration into the construction of AEGON now the clients are being offered more picks of services. AEGON launched new and ground-breaking merchandises like the 5 for Life rente has facilitated to alter the manner in which consumers can look at their retirement income. AEGON supplying the degrees of return promised and being responsible for any hazards associated with making so it provides more certainty about degrees of income for the consumer.

In short as the consequence of the alteration implement by the CEO of AEGON the company rebuilt its trade name repute, became more client focused, started to supply more advanced merchandises and became more popular among the consumers and finally the concern has grown to a mammoth extent.

In order to go more clients ‘ focused the new Chief Executive Officer decided to develop a new organisational behavior model to back up the trade name values of AEGON. Behavioural model is the structured pre-defined codifications of behavior how the persons working within the organisation are suppose to act among themselves and to the people outside the organisation. Presence of the behavioral model gives rise to the similar behavioural and ethical values of all the persons at all degrees with in the organisational. Behavioural model developed by the AEGON was chiefly concentrating 8 behavioral values which are ;

THINK CUSTOMER ;

EMBRACE CHANGE ;

ENCOURAGE EXCELLENCE ;

Act WITH INTEGRITY ;

DECISIVE ACTIONS ;

WORK TOGETHER ;

LEARN & A ; GROW ;

RELATE & A ; COMMUNICATE

As the portion of their scheme AEGON besides undertook an audit to look at the two facets which were the internal place of the company and how AEGON was positioned internally into the market severally. The audit revealed that AEGON was steadfastly positioned within the market. Its work force was known for their considerable expertness, invention and lucidity of communicating. The external audit besides helped to find where AEGON was placed in relation to its rivals. This audit provided a really of import vision to the determinations that were needed to originate the alteration procedure.

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