(Case Study Analysis on an Organisation)
TrueLocal.com.au is one of the fastest growing online business directory services website in Australia. It operates as its own functioning business unit under the umbrella of News Digital Media (NDM) organisation, a managing group for a cluster of individual digital companies that is owned by Rupert Murdoch’s News Corporation, one of the world’s largest global media companies. This case study examines the change that occurred in Truelocal when almost the entire senior management staff level was replaced including the CEO two years ago. Organisational change is something that occurs throughout an organisation’s life cycle and effects the entire organisation rather than one part of it. Employing a new person is one example. Change is increasing due to a number of forces including globalisation led by rapidly advancing technologies, cultural diversity, environmental resources and the economy; therefore the ability to recognise the need for change as well as implement change strategies effectively, in a proactive response to internal and external pressures is essential to organisational performance. Internal changes can include organisational structure, process and HR requirements and external changes involve government legislation, competitor movements and customer demand (Wood et al, 2010).
Change does not need to be a painful process, as it may seem when observing the amount of failed change management initiatives with reports as low as 10% of researched success rates (Oakland & Tanner, 2007), when successful change management strategies are utilised and planned, including effective communication strategies, operational alignment, readiness to change and implementation, which all lower and overcome resistance (Wood et al, 2010).
There is a great amount of literature on the negative aspects and difficult management with employees resisting change, however Wood et al (2010) challenge this notion by questioning the change management process as people do not resist change itself but aspects of the change that affects them personally such as fear of the unknown, status, remuneration and comfort. Resistance to these changes is a healthy reaction and can be managed effectively in the beginning by ensuring communication and using one of the change initiatives described here.
Truelocal is based in Sydney, with small sales branches in Brisbane and Melbourne. It employs over 150 staff, an increase of approximately 50% over the past two years. It was founded in 2005 by NDM as part of an expanding operation of online websites to provide across the board consumer services, including news and magazine websites; online sport and weather information; and shopping comparison search engine, web-based recruitment, and travel search engine solutions [http://www.newsdigitalmedia.com.au, accessed 25/08/2010].
As the world shifted into what is often referred to as the ‘digital info age’, consumer demand for online media as a way to source information significantly increased and demand for printed media decreased putting pressure on newspaper companies to expand to producing news and information online in digital format. This included News Corporation which decreased its newspaper operations and increased its digital expansion.
As an employee at Truelocal for over six years, I have acquired this information presented here through interviews with management, company information and my own observations internally within the organisation’s sales department working in the roles of sales executive, account manager and senior retention account manager.
The Need for Change – Management & Structure
Truelocal needed to align its culture, values and structure with the parent company in...