MMH365 CHANGE MANAGEMENT
Final Case Study Report
Change Management concerns within Fairfax, interventions, process and strategies,
including unambiguous suggestions for the management of the continuing internal and
external change
Madeline Stevens, 213357986, MMH356, Final Report
Table of contents
TABLE OF CONTENTS
II
ILLUSTRATIONS
III
EXECUTIVE SUMMARY 250
IV
BACKGROUND 100
1
1. INTRODUCTION 100
2
2. FAIRFAX ORGANISATIONAL CHANGE
3
2.1 Environment
4
2.2 Key Change Issues
5
2.2.1 Cultural Change
6
2.2.2 Structural Change
7
2.3 Strategic Processes
9
2.4 Process Interventions
11
CONCLUSION 100
13
RECOMMENDATIONS 200
14
REFERENCES
15
Madeline Stevens, 213357986, MMH356, Final Report
II
Illustrations
Page
Figure 1: Australian Metro Media Financial Snapshot
8
Figure 2: Application strategies for Transorganisational Development
9
Figure 3: Strategic Analysis 2011
10
Figure 4: Communications in Human Resources
12
Madeline Stevens, 213357986, MMH356, Final Report
III
Executive Summary
This report provides an evaluation and analysis of the current management of change
within Fairfax Media Limited. Due to the shift in online technology Fairfax have proven
that there is a need for constant change management. Within Fairfax there has been
not only the management to assist with all types of change but interventions around the
cultural and structural issues faced in their over 180 years existence. The approaches of
managing change have been developed over some time with the findings of information
analysed being seen as the digital industry develops even faster then first anticipated
causing printing manufacturers to branch out into alternative options to sustain survival.
Finding that the printing industry of Fairfax has had to remodel the entire business that
once use to be a standalone corporation, this restructuring has caused some retaliation
predominantly within the community directly linked to the diminishing printing
production. Reviewing financial reports and analysing some valuable statistics it is
apparent the dedication and drive Fairfax have, with the support of employees and
stakeholders whom have finally realised this was the only chance at staying afloat. With
their strategic acquisition of several newly adopted businesses within the media and
advertising they have attempted to redesign their image.
Overall there has been a fight within the organisation to hold their position that has now
shifted to an online media business. In this report there are clear recommendations and
successfully executed strategies within the organisation but they are fully aware of the
capability of the unknown and continuously developing online network combined with
the driving force of the consumers that is cause forfuture limitations.
Madeline Stevens, 213357986, MMH356, Final Report
IV
Background
A more comprehensive understanding of Fairfax Media is essential due to over 180
years existence within the media industry but also their change in ownership and
struggles with obstacles like the introduction of mainstream technology and our evolving
population.Like most formerly established newspaper printing organisations there has
been an ongoing struggle with entering and succeeding in the growing online world.
Due to the size of Fairfax the struggle was constantly in the news headlines and stock
markets suffered immensely (Jaspan, 2012). Launching from the first Sydney
newspaper back in 1953, to the struggles and adaption to the newly styled paper to
broaden their reach the struggle within this empire has not been entirely stress-free
(Sydney Morning Herald, 2013) yet with all the hurdles faced they have been able to
evolve into the media giant they are today (Fairfax Media, 2015).
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1. Introduction
This report will be focused on Fairfax Media Limited and the struggle to maintain its
presence within the market and what interventions have been implemented to keep not
just afloat but continue as a market leader (Fairfax Media, 2015).Within this paper I will
provide the key details with the application of three specific interventions applied, and
provide a comprehensive analysis using historic information, reports, articles and results
based on strategic key change management concepts. This will help to gain a greater
understanding of the evolving technology within the media industry and how Fairfax has
been able to survive and restructure successfully.
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2. Fairfax Organisational Change
Leading Australia and New Zealand in the media industry Fairfax now provides the
largest range of diverse divisions referred to as a multi platform media group their
market share current price at $0.88 (Invest Smart, 2015) the several branches now
being specialised include newspapers, magazines, radio, Domain group and digital
media (Fairfax Media Limited SWOT Analysis, 2015, p6). These branches mentioned
are only a brief description into the numerous popular and highly recognised online and
printed content along with the ongoing attainment of already well-established
organizations to add to the plethora of media outlets. When looking at the multitude of
what Fairfax now covers it is easy to understand how and why the efficient
implementation of change management has been necessary, change itself is expected
and regardless if organisations are proactive in business operations it is not a guarantee
of success. Caution is needed for balance in the amount of change that is pushed into
each project decision and also avoidingthe risk of too little. It can be seen as a waste to
plan too far into the future in regards to change anda waste of vital resources, hence the
importance around balance.
There has been an entire shift in the media industry and the need for change has been
recognised and evidently implemented throughout. Change management can be seen
as both long-term and short term with the two complimenting each other overall, the
purpose of this allows for adjustments and improvements as they are shifted into a more
permanent culture and core values. With the focus on change and adaption, there
should be extra attention on ensuring any negative repercussions are monitored with
the main purpose of the change implementation being positive and proactive. There are
so many levels and sub levels when dissecting the actual functioning process of
change, sometimes focusing on the weaknesses are not the most productive but the
opportunities and strengths that directly link help maintain the competitive edge (Fairfax
Media Limited 2015).
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2.1
Environment
The general environment is viewed as everything outside of the organisation yet has
direct influence on the whole operational component; there are three specific
environments, which can be either direct or indirect. Due to the open system within
organisations there must be a relationship with their environments if functionality and
success is desired. Organisations can also directly or indirectly impact the environment,
which is where laws and regulations must be followed and promoted within the business
to create a positive and favorable brand (Waddell et al. 2014 p.261-273).
The overall environment directly linked to Fairfax includes technological, social, political,
and economical. The technological dimensions would be viewed as the most important
direct element (Porter, M 1985) within the media industry having to adapt and evolve
from the declining paper hard copy (Christensen, N, 2014) to not only online but
creating a diverse branch of alternative services to offer to the audience to keep up
within the media market’s shift towards digital interaction. The internal environment
must process information in order to better understand the current environment, this has
been found to be slightly ambiguous but no matter how much you try to reduce this
there will always be some kind of uncertainty (Waddell et al. 2014 p.262-283).
The never ending needs and consumersatisfaction is a key task environment, by
developingthis core objective it could possibly be the most significant environmental
influence. Internally with the driving force being competition Fairfax have product
innovation and expansion, which is done to keep afloat, if not to keep ahead of
competition which are all apart of the external task environment. The direct relationships
whether through, customers, suppliers, competitors, financial institutes, are all mutually
influencing on each other, which can be taken advantage of if managed properly
(Waddell et al. 2014 p.262-264).
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With all of the above-mentioned in mind Fairfax has a solid brand and market imprint
contributing to its enacted environment, which is why the organisation is still standing
steadily with two feet. Through all of its struggles and victories there is a strong
environmental culture where we see risks taken and new ideas constantly emerging,
which drives everyone involved to continue building and remodeling the facade of this
empire. With such a forward foot to survive in the future, which is evident with
simulations applied like the Monte Carlo sensitivity analysis to test the growth rates
finding out the strength of their models (Sydney Investment Group, 2011).
2.2
Key Change issues
Fairfax can be viewed as a leader in change within the corporate organisation
community, with some of the changes either internally and not viewed by the external
buyers or sometimes not as successful or implemented as originally planned.No matter
how successful the outcome,what this does show is Fairfax are willing to fight for their
position within the market and overall there has been a stable position held due to the
awareness of their key change issues (The Financial Times LTD, 2015).
There are three key interventions, which have been how the organisation has
developed through numerous interrelated issues all based around diversity, interaction
of human behavior and technology. With a key focus on both structural and operational
changes incorporating the interventions Fairfax have claimed to be well ahead of their
plans to being a modern media company (CEO Speech). However, Fairfax’s previous
and ongoing changes still require extensive monitoring and refining which ensures they
will bemuch more confident inthe ability to work through any future issues that may arise
and how they have adapted and grown with the additional industries added to the
organisation.
It is important to keep an open mind and look at the Macroeconomical position with the
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introduction of the online world wide when looking at the key change issues presented
in Fairfax. As impacting e-commerce has been on the industry this scenario has
impacted the entire world causing a shift in the way businesses need to function. With
incorrect management guiding the journalistic based company it actually hasn’t steered
too far from the style and underlying tasks being completed. The decline cannot be
focused based on only the technological world, but the shift in wants, needs and desires
along with the core subscribers including more females and change in interests. These
types of assumptions are not always entirely true nor do they predict the change I
direction would actually benefit the papers subscribers, on the other end of the
spectrum there are the loyal readers who no long find the paper informative or struggle
to read its more modern layout and smaller print.The actual driving revenue was the
advertisements placed, and the management behind all significant decisions have been
criticized for blaming it all on the shift to online rather then the possibility of just bad
management (Green, 2012).
2.2.1
Cultural Changes
Culture tends to be overlooked as a highly strategic method to implement change
indirectly forcing greater effectiveness, with values and assumptions to be incorporated
allows for less liability when implementing changes in such turbulent environment as
Fairfax. The correct and satisfactory management of culture would see a higher team or
group participation rate along with open communication, security and equality, all of
these additional aspects although not always a clear representation of how an
organisation is functioning the change in culture is recommended to be observed
strategically (Waddell et al. 2014 p.322-332).
Downsizing of the organisation (Appelbaum, Everard, Hung, 1999) is attempted
strategically to maintain a presence and avoid complete extinction but the goal to
ultimately redeploy as many multi skilled employees within new and merged rolls
throughout the entire organisation (Hurst, 2012). When applied correctly it can improve
the fit between individual abilities and the demands of the shifting jobs. When it was
announced in 2013 that the plan was for a 3-year implementation of one-fifth of Fairfax’s
Madeline Stevens, 213357986, MMH356, Final Report
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workforce to suffer job cuts it was hard to see past the employee’s potential loss of jobs,
when regrettably it was the only way the struggling printing division of the organisation
was to survive (The Australian, 2013).
Within the internal environment there are struggles like job security and resistance to
change which are tackled by working with the employees and promoting realistic
expectations and support incorporating programs like health promotion and career
planning also create a positive and safe environment when there is such uncertainty
around (Waddell et al, 2014, p.157-161). The key focus within the working culture is
equality (Hywood, 2015), which is clearly displayed by each division leading the industry
with awards and recognition (Fairfax Media, 2015).
The internal and external drivers of implementing an innovative and diverse culture
creates a multidimensional and productive environment, these are forces that drive
change within all levels of the organisation (Kennedy &McComb, 2014). The SWOT
analysis has helped assess and minimise any impacting influences (Fairfax Media
Limited SWOT Analysis, 2015, p4). The organisational development interventions used
are practical and achievable models that are designed to solve goals or improve
productivity, which creates a positive and motivated working environment.
2.2.2
Structural Changes
The restructuring of the business (Zappone, 2008) gives structural direction as it
evolves and recreates itself, which allows for the organisation as a whole to develop
and hold a presence within the previously dying print industry in the new online era
(Hatch, 2013). The social and technological systems within an organisation should both
be supported when looking at the organisational design not only to address problems
but also to create alternative results (Waddell et al, 2014, p.150-155). The
organisational system of the technical model is always a risk resulting in some barriers
to job enrichment, the limits of technology can cause an enrichment ceiling with barriers
of the overall process and procedures.
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The better the knowledge of the over all environment the more understanding we have
on our audience, although Fairfax wouldn’t have originally been considered to be
dynamic and unpredictable the external factors have causedso much uncertainty
resulting in the whole industry needing tobe restructure. Fairfax’s entered the media
industry formerly with their infamous news papers and that particular section of the
business has now faced all kinds of restructuring to gain efficiency and maintain their
position within the printing market, it is only with the internal environmental changes and
the success of implementing online alternatives has there managed to be a profit within
this section.
Figure 1: Australian Metro Media Financial Snapshot
(Source: Fairfax Media Annual Report, 2015)
Although outside of our control the general external environment can have a direct
influence on the whole operational component, the technological dimensions would be
undoubtedly the most important element (Porter, M 1985). Fairfax is constantly in the
Madeline Stevens, 213357986, MMH356, Final Report
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news headlines for the reshuffles and changes promising it will drive revenues and
efficiency. Implementing these types of changes Fairfax need to ensure they are the
correct changes to the business processes, Fairfax is a tall hierarchy structure and is
slowly transitioning over to a more flat organisational structure which will help
management and employee relationships internally (CEO Speech, 2013, p.5). Another
way Fairfax is working with external environments is to actually improve the operations
are drivers like the Fairfax Mobile Network Survey conducted in November 2014, this
report providedessential insightsinto their users which would assist with improvement
and restructuring if deemed necessary (Fairfax Mobile Network, 2015).
2.3
Strategic processes
By transforming to an online presence (NewsHound report, 2005) and keeping up to
date with new trends and technology within the media industry helped assist with
maintaining a competitive edge in the rapidly changing conditions (Porter, M 1985). This
strategic process was Fairfax’s way of adapting to the online culture, which added
multiple branches to their business expending the overall reach and brand. This also
enabled an extended audience reach along with the ability to amalgamate some
employee roles together.Transorganisational development has been applied to
collaborate the now multi-organisation, this creates a stronger relationship and
competitive strategies resulting in improved services and a stronger economic position
(Waddell et al. 2014).
Figure 2: Application strategies for transorganisational development
Madeline Stevens, 213357986, MMH356, Final Report
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(Source: Waddell et al. 2014 p.271)
The results found in the “CFA Institute Research Challenge” provided a deeper insight,
which showed one specific reoccurring piece of evidence, and that was the importance
and impact online technology has affected, and will continue to guide the entire
industry(Sydney Investment Group, 2011).
Figure 3: Strategic Analysis
(Source: Sydney Investment Group, 2011)
In conjunction with time quality management (TQM) and a strategic analysis
implemented internally we would see the internal driving force improved as it seeks
efficiency and productivity within the organisation (Douglas, 2013), meaning the way
executives respond to the improved environment. A perfect example of strategic
implementation within Fairfax is the new acquisition of Property Data Solutions (PDS), a
property data and mapping provider shows the ability and intellect behind strengthening
the brand creating prospects as a tactical investment, which provides product offerings
and variety in its income base (Fairfax Media Limited, 2015).
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2.4
Process interventions
The actual process of the interventions must be noted as an important part of the whole
method used, as it is the employees tool for achieving the organisational goals (Tearle,
2011). The key interventions for Fairfax that are utilized differently throughout are,
performance management, appraisals, reward system and goal setting. All of the
interventions mentioned above are built into the Fairfax program but as most other
organisations this must be closely watched and altered if required (Ads Centre, 2015).
The effective management of people can also be referred to as performance
management, this is the actual management of the performance of the workforce in an
organisation. This particular type of management can be the teams performance or
individual and is very dependent on individual factors, with alignment as one of the key
component when looking at successful performance management systems. There
should be a clear and defined link between the organisational goals and objectives and
the management of performance, which must also align itself with the appraisals
conducted. A top down approach is being moved away from and there is a push
towards a multichannel communications process. The issues of underperformance
should also be mentioned as a usually overlooked issue, this should be solved with an
internal systematic approach to address the matter (Ashdown, 2014).
Figure 4: Communications in Human Resources
(Source: Performance Management, 2007 p.80)
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In implementing performance management and appraisals to educate the employees it
always needs to be followed by evaluation and rewards, this compliments the process
as a whole and provides guidance and incentives to maintain this level of standard. The
biggest issues faced are conflict and encouraged competition, which in return causes a
negative working environment (Roth, WF 2014). The reward system itself can be either
intrinsic or extrinsic, where intrinsic are internal forces driven from challenge,
improvement and accomplishment opportunities found in the workplace. Extrinsic is the
various kinds of monitory based rewards but the behaviors behind the drive of these
should be regularly reinvented to keep the workers interested (Waddell et al. 2014
p.174-177). It is the role of the human recourses and management to try and combine
the two within the personal and group satisfaction. This model is the root to the reward
theory and must always be observed, as there has been studies presenting undesirable
relations between the two and its relation with motivation and
performance(Harackiewicz&Sansone, 2000 p14-18).
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Conclusion
Throughout Fairfax’s history there have been many struggles within the changing
environments implemented through the whole organisation that has proven to maintain
the consumers satisfaction. This being the core objective and possibly the most
significant environmental influence the task environment is one of the key management
concepts as the driver of the organisation. Although technology is a major component
and should not be overlooked the cultural influence would almost outweigh the
importance of controlling the decision-making and further understanding within the
unstable environment.
Fairfax has all the right intentions in managing the change environments, although
successful in implementing these initiatives there is still a large amount of unknown,
which is driven by external forces. With the brand holding such a strong position it would
be impetrative that the correct steps are continued to be taken for enduring success.
Madeline Stevens, 213357986, MMH356, Final Report
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Recommendations
It is evident that the change management strategies employed by Fairfax have
displayed to be proactive and allowed them to be a key player within the multidimensional media industry; they have restructured and expanded exploiting their
stronger abilities to maintain the market leader.
Based on the research and critical analysis of information the following
recommendations are made:

External environment has been the greatest battle for Fairfax and the early
detection and proactive battle is the reason why the business still stands, this
strategy should continue to ensure it is ready for any change from external sources
that directly link back.

Internally there needs to be a greater implementation of understanding and
management due to the uncertainty around the restructuring and closure of so
many of their printing branches, with a focus on redeployment and role
restructuring.

The trans-organisation system should be religiously tracked and applied to assist
with the cost and benefit challenge faced, and also to create a stronger brand and
image within the Fairfax community.

The process interventionsmotioned within this reportcreate value and a unique
realignment of the employees and organisational goals and objectives, by creating
a culture where employees feel support motivation is achieved.
Madeline Stevens, 213357986, MMH356, Final Report
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