BSBLDR601 Lead and manage organisational change

Assessment Task 1: Knowledge Questions – New Answers

1. Explain four events or trends that may impact whether or not organisational objectives are achieved.

• Technological disruption: New software, automation, artificial intelligence or cyber threats can change how work is performed. If the organisation adapts well, it may improve efficiency and service quality; if it does not, productivity, security and customer satisfaction may decline.

• Economic conditions: Inflation, interest rates, labour shortages, exchange rates and changes in consumer spending can affect revenue, operating costs, cash flow and the organisation’s ability to fund planned initiatives.

• Legislative and regulatory change: New or amended laws, standards and compliance requirements can require changes to policies, procedures, reporting, training and resourcing. Failure to comply can result in penalties, reputational damage and interruption to operations.

• Market, social and environmental trends: Changing customer expectations, competitor activity, demographic shifts, sustainability expectations and flexible-work preferences may require new products, services, processes or workplace practices to remain competitive and achieve strategic goals.

2. List at least five existing practices that may be used to guide organisational change.

• Strategic and operational planning processes.

• Current organisational policies and procedures, such as human resources, work health and safety, quality and communication policies.

• Performance management systems, key performance indicators and regular reporting processes.

• Risk management processes, risk registers and incident reporting systems.

• Continuous improvement practices, such as audits, lessons-learned reviews and customer/staff feedback.

• Project management frameworks, implementation plans and approval procedures.

• Consultation mechanisms such as staff meetings, surveys, committees and stakeholder briefings.

3. Describe the process to conduct a cost-benefit analysis. In your answer, explain which methods are relevant and useful to complete the particular process step.

• Define the change proposal and scope: Describe the change, the problem or opportunity it addresses, expected outcomes, timeframe and assumptions. Useful methods include reviewing the business case, strategic plan and stakeholder requirements.

• Identify costs: List one-off and ongoing costs such as equipment, technology, licences, consultants, staff time, recruitment, training, communication and disruption to normal operations. Useful methods include supplier quotes, payroll data, budget estimates and comparison with previous projects.

• Identify benefits: List tangible and intangible benefits such as increased revenue, reduced labour time, fewer errors, improved compliance, better customer service, higher staff capability and reduced risk. Useful methods include benchmarking, process mapping, customer feedback, performance data and stakeholder consultation.

• Quantify and time the costs and benefits: Convert items to dollar values where possible and identify when they occur. Useful methods include spreadsheets, cash-flow forecasts, time-saving calculations, sensitivity testing and estimates based on reasonable assumptions.

• Compare alternatives and make a recommendation: Calculate net benefit, return on investment, payback period or net present value where appropriate. Consider non-financial benefits and risks before recommending whether to proceed, modify, delay or reject the change.

4. Explain how effective change management strategies can assist with embedding change in an organisation. Give an example of an effective change management strategy in your answer.

Effective change management strategies help embed change by making the new way of working clear, practical and supported. They reduce uncertainty, involve employees in the process, build capability through training, align systems and policies with the change, and reinforce the desired behaviours through leadership, coaching and performance measures. This helps the change become part of everyday practice rather than a temporary project.

For example, if an organisation introduces a new customer relationship management system, it could use change champions in each team, role-based training, quick-reference guides, help-desk support, manager check-ins and usage KPIs. These strategies help staff understand why the system is needed, learn how to use it and continue using it consistently.

5. Outline one approach (or process) that can be used in the workplace to communicate and embed change.

One suitable approach is the ADKAR model, which focuses on supporting people through the change process:

• Awareness: Explain why the change is necessary, what problem it solves and what will happen if the organisation does not change.

• Desire: Build commitment by explaining the benefits, listening to concerns and involving staff in decisions where possible.

• Knowledge: Provide training, procedures, FAQs and clear instructions about the new process or system.

• Ability: Give employees opportunities to practise the new way of working, access support and receive coaching from managers or champions.

• Reinforcement: Embed the change through updated policies, performance measures, feedback, recognition and ongoing review.

6. Explain the risk management process. You may answer using a labelled diagram or in words (or both) and must include a definition of risk management, a list or illustration of the steps in a risk management process, and a description of what each step involves including methods.

Risk management is the structured process of identifying, analysing, evaluating, treating, monitoring and communicating risks that could affect the achievement of organisational objectives.

• Establish the context: Confirm the objectives, scope, stakeholders, legal requirements and risk criteria. Methods include reviewing strategic plans, policies, budgets, project documents and compliance obligations.

• Identify risks: Determine what could happen, why it could happen and what the consequences may be. Methods include brainstorming, stakeholder consultation, SWOT analysis, checklists, process mapping, audits and incident history reviews.

• Analyse risks: Assess the likelihood and consequence of each risk and consider existing controls. Methods include a likelihood/consequence matrix, scoring system, root-cause analysis and expert advice.

• Evaluate and prioritise risks: Compare analysed risks against the organisation’s risk appetite or risk criteria to decide which risks require treatment first. Methods include risk ranking, heat maps and management review.

• Treat risks: Select and implement actions to avoid, reduce, transfer/share or accept the risk. Methods include new procedures, training, supervision, system controls, insurance, contracts, contingency plans and resource allocation.

• Monitor and review: Check whether controls are effective and whether risks have changed. Methods include KPIs, audits, review meetings, incident reports, staff feedback and updates to the risk register.

• Communicate and consult: Keep stakeholders informed and involved throughout the process. Methods include meetings, reports, briefings, emails, workshops and consultation records.

7. Explain four options that an organisation may use to mitigate or control risks.

• Avoid the risk: Stop the activity or choose a different approach so the risk no longer exists, such as not proceeding with a change that is unsafe or not financially viable.

• Reduce the risk: Introduce controls that lower the likelihood or consequence, such as training, supervision, system access controls, revised procedures or staged implementation.

• Transfer or share the risk: Shift part of the risk to another party through insurance, outsourcing, warranties, service level agreements or contract clauses.

• Accept the risk: Decide to tolerate the risk because it is low or treatment is not cost-effective, while continuing to monitor it and maintaining contingency plans.

8. Complete the table below to identify and describe two organisational policies that may relate to change management and guide organisational change.

Policy	Description
Change management policy	Sets out how organisational changes are proposed, assessed, approved, implemented and reviewed. It usually covers roles and responsibilities, consultation, documentation, risk assessment, communication and approval requirements.
Communication and consultation policy	Explains how information is shared with employees and stakeholders, including communication channels, timing, responsibilities, confidentiality requirements and expectations for consultation and feedback during change.

9. Outline three examples of content that could be included in a communication and education plan.

• Key messages and purpose: what is changing, why it is changing, the expected benefits and the impact on each stakeholder group.

• Audience, channel and timing details: who needs to receive information, when they need it, who will deliver it and which channels will be used, such as team meetings, emails, intranet updates or workshops.

• Training and support activities: training sessions, user guides, FAQs, coaching, help-desk support, feedback methods and follow-up activities to confirm understanding.

10. Explain why promoting the benefits of organisational change should be included as part of a communication and education plan.

Promoting the benefits of organisational change helps employees and stakeholders understand the value of the change, not only the tasks they must complete. It can reduce fear and resistance, increase motivation, clarify how the change supports organisational goals and show employees how the change may improve their work, customers or future opportunities. When benefits are communicated clearly and honestly, people are more likely to participate in training, provide feedback and adopt the new behaviours required for the change to succeed.

11. What is meant by “organisational behaviour” and how does it impact change strategies?

Organisational behaviour refers to the way individuals and groups act, communicate, make decisions and respond to leadership within an organisation. It includes culture, values, motivation, power relationships, informal networks, leadership style, attitudes and team norms. Organisational behaviour impacts change strategies because these factors influence how people interpret the change, whether they trust the message, how strongly they resist or support the change, and which communication and leadership methods will be most effective. A change strategy should therefore be tailored to the organisation’s culture, employee readiness and likely sources of support or resistance.

12. How does the external environment impact the change strategies used in an organisation? Provide an example to illustrate your answer.

The external environment influences the urgency, scale, direction and communication of organisational change. Factors such as legislation, technology, competition, economic conditions, customer expectations, labour market trends and environmental pressures can create risks or opportunities that require the organisation to change. Change strategies must respond to these conditions by setting realistic timelines, allocating resources, managing compliance obligations and communicating why the change is necessary.

For example, if a new privacy law requires stronger protection of customer information, an organisation may need to update its data-handling procedures, introduce mandatory privacy training, change software access controls and communicate the new requirements to staff quickly to avoid non-compliance.

13. List at least four components that should be included in a change management plan.

• Description of the change, the reason for the change and the intended objectives or outcomes.

• Stakeholder analysis, roles, responsibilities and approval requirements.

• Implementation activities, milestones, timelines and reporting arrangements.

• Resource requirements, including budget, people, technology, equipment and external expertise.

• Risk assessment, barriers to change and mitigation or contingency strategies.

• Communication and education plan, including key messages, channels, training and feedback methods.

• Success measures, KPIs, monitoring arrangements and review/evaluation process.

References

International Organization for Standardization. (2018). ISO 31000:2018 Risk management – Guidelines.

Kotter, J. P. (2012). Leading Change. Harvard Business Review Press.

Lewin, K. (1947). Frontiers in group dynamics. Human Relations, 1(1), 5-41.

Prosci. (n.d.). The Prosci ADKAR Model.

Standards Australia. (2018). AS ISO 31000:2018 Risk management – Guidelines.

BSBLDR601 Lead and Manage Organisational Change