Little Chef Change-MBA Assignment-Reference Mgt-4

Assignment: Managing Change in Organisations, MBA. Student name and number- 1 -

University of Wales

MBA

Through Resource Development International (RDI)

Managing Change in Organisations

Assignment

Report on Change at Little Chef,

Popham, Hampshire

Submitted by:

………………

RDI Student No: ………….

University of Wales Student No: …………….

26 January 2010

Words, excluding Bibliography and Annexures, but

including an element of referencing = 4318 words

85% Comments from examiner stated that the Forcefield Analysis was too long – 1 page would have been sufficient.


Report on Organisational Change

at Little Chef, Popham, Hampshire

Index

Page

1 Introduction and Terms of Reference 3

2 Research 3

3 Abbreviations 3

4 Little Chef, the case study 5

4.1 Background 5

4.2 The main objectives of the organisational change 6

5 Forcefield Analysis 7

6 Evaluate of change management effectiveness 16

6.1 Create a sense of urgency 17

6.2 Pull together the guiding team 18

6.3 Develop the change vision and strategy 19

6.4 Communicate for understanding and buy-in 20

6.5 Empower others to act 21

6.6 Produce short term wins 22

6.7 Don’t let up 22

6.8 Create a new Culture 23

7 Assessing change objectives 23

7.1 Balanced Score Card 25

7.1.1 Finance 25

7.1.2 Customers 26

7.1.3. Business 27

7.1.4 Learning and growth 27

7.15 Recommendations 29

Bibliography 30

Annexures 36

Channel 4 Summaries of TV series 41


Managing Change in Organisations

Report on the Business Process Transformation

Of Little Chef, Popham, UK

January 2010

1 Introduction and Terms of Reference

The purpose of this report is to elucidate on the organisational change that

has taken place at Little Chef (LC) Popham, UK as a blueprint for revitalising

the Little Chef chain of roadside restaurants in the UK during 2008 and 2009.

The chain, a private limited company, was acquired by specialist private

investment business, RCapital, a Limited Liability Partnership, in 2007.

The objective of the report is to:

describe the organisational changes that have taken place in Little

Chef since it has been under new management, and the purpose of

the changes

analyse the nature of the change

illustrate how change management models could have been used to

identify the drivers of change,

evaluate the success of the complex change processes and make

recommendations regarding further changes required to reach the

objectives that were set out by the management of Little Chef.

2 Research

The following research methods were used to inform this report.

2.1 Channel 4 Television ran a series on the LC transformation process in

their TV programmes “Big Chef takes on Little Chef” and “Did Heston

Change Little Chef?” in 2008 and 2009. This assignment is based on

the TV programme. This Two Four Productions Limited series of 4

episodes, is available on podcast from ITunes on the Internet. (Itunes,

2009) and is summarised as Annexure 7.

2.2 Secondary research on the internet and trade media.

http://www.itunes.co.uk/TVProgrammes/Non-Fiction



2.3 Personal visits, as a customer and resident in the area of Little Chef,

Popham, over a period of three years

3 Abbreviations: When referring to

The Change Agent – it will refer to the Chief Executive (CE) – Mr Ian Pegler

The Consultant – Mr Heston Blumenthal

The Pilot Restaurant or Popham refers to LC Popham Branch, Hampshire on

the A303.

The change management team will refer to:

The Little Chef, Mr Ian Pegler and his team and the Consultant, Mr Heston

Blumenthal and his team.

The Change Team Protagonists

To understand the context of this case study it is important to understand the term

organisational change. Though there is no agreement among academics on the

definition of organisational change an influential definition was given by Carter

McNamara (1997). He refers to organisational change, as “the overall nature of

activities e.g. their extent and rate that occurs during a project that aims to enhance

the overall performance of the organisation. The activities are often led by a change

agent or person responsible to guide the overall change effort. The activities are


often project orientated (a one time project) and geared to address a current overall

problem or goal in an organisation.” (Management Help 1997:21)

4 Little Chef, the case study

1mage: Sensitive changes to iconic

Little Chef's "Fat Charlie" brand

from www.catersearch.co.uk

4.1 Background

Little Chef, a chain of roadside restaurants, was originally created in 1958 to serve

British motorists along A roads. The much loved iconic British brand with its “Fat

Charlie” logo has undergone many changes of ownership in recent years.

The decline of the chain was however inevitable due to managerial neglect and lack

of re-investment from the height of its operational success in February 2003.(Caterer

2009:1)

The case study: Little Chef 2007 – 2010

The premises throughout the chain were shabby, staff morale was low, customer

service was poor and the reputation of Little Chef was seriously damaged.

The trading environment had changed drastically since the height of the Little Chef’s

success. Motoring trends had changed and healthier food choices are now preferred.

The business had reached a low point. (Wachman R 2008:15)

Complete neglect

http://www.catersearch.co.uk/


Rescued

The Little Chef chain was rescued from administration in January 2007 when

RCapital LLP, a private equity business owned by Messrs. Jamie Constable and

Peter Ward, bought 176 Little Chef outlets for less than £10 million. (Caterer, 2009:1)

The scale of change needed to restore Little Chef to its former success and

profitability was what Ackerman (1997) would term transformational change, affecting

Little Chef’s structure, processes, culture and strategy. (Ackerman, 1997:2)

The change team set about changing LC, albeit amidst great turmoil.

4.2 The main objectives of the organisational change at corporate level in the

short term:

To turn the LC Popham restaurants around to profitability within a period of 6 months.

The long term corporate objective:

To create a culture of excellence that will continue to deliver quality and value to its

customers, retain valued employees and generate wealth for its investors.

At a functional level: (Tutor2U, n.d.:3)

To renew the Little Chef brand including the Fat Charlie logo

To create a new menu to cater to their customers’ changed tastes,

To improve the food quality, through a business process transformation

To improve customer service

To refurbish the Popham restaurant as the blue print for the LC chain, with a

budget of £350 000 within a period of 6 months. This report will deal with the

short term goals.

All the above goals were to be achieved within six months on a budget of

£350 000. (Wachman 2009:14)


It was agreed that once the model dubbed the “Heston Model” proved to be

successful, a further two restaurants would be launched. Thereafter the chain would

be incrementally changed throughout the UK. (RCapital, 2007:4)

The change team engineered the first major change, involving all processes and

systems, in the 50year-history of the Little Chef chain.

5 Forcefield Analysis for Little Chef’s Planned Transformational Change

(Sachs International, n.d:16)

According to Mullins (2005) in order to promote change it is essential to understand

the origin of the need to change and

the nature of any proposed change.

A way to do this would be through a cause and effect approach (Ishikawa’s Fishbone

diagram) (12Manage 2009:5) but the author believes that the forcefield analysis

models is more closely associated with the Little Chef’s circumstances.

The internal and external forces that were brought to bear on the trading environment

of Little Chef can be analysed by Kurt Lewin’s (1982) Forcefield analysis. (12Manage

2009:6) He maintained that conditions are kept in equilibrium by two opposite sets of

forces; those that drive for the change, and those that try to maintain the status quo

by restraining change. For change to take place the forces that drive change should

exceed those that restrain. (Lewin K, 1982)


Forcefield Analysis –The Little Chef

1 Current State: 2 Desired State:

3. Driving Forces

(Help achieve

change)

5. Ways to strengthen

(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

Internal

Skills,

Resources

Strengths

Limitations

1a.176 outlets

throughout the

UK. Basic

infrastructure in

place with 11

million

customers

(2007) walking

through the

doors, albeit

shabby.

Transformational

Change as described

by Ackerman 1997

whereby all

processes were was

required.

(Northumbria U

2009:2)

Abated through

staff consultation

and interaction,

training and

recognition.

(Kotter&Rathgeber

2006)

1 Staff moral was

low, staff turnover

high and

resignations were

endemic

1b New owners

of LC -equity

investors have

Referent Power

Plan for

Transformational

Change if Force Field

Analysis proves

Arrest further

decline through

planned change

Declining profits.

Stakeholders

dissatisfied

1 Loss making operation2 Brand name tarnished 3 Menu outdated4 Poor quality food –all precooked and outsourced 5 Poor service6 Trading premises shabby

1 Profit making operation2 Branding retained and Logo renewed 3 Modern, healthy cost-effective menu4 High quality food, cooked on the premises 5 Excellent service6 Refurbished and modernised premises


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

(French and

Raven 1960)

and look for a

profit

(12Manage.com

2009:17)

feasible

Jarrett 2010

1c LC CE has

Reward Power -

(French and

Raven 1960) to

motivate staff.

12Manage

2009:17) CE

eager to market

to the “lost

generation” who

did not know LC

previously.(The

Guardian

2009:7)

Plan for this market

sector through

revised marketing

strategy when

developing the

change vision and

strategy (Kotter J,

2007:11).


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

1d Change

agent eager to

lead the change

process to

successful

conclusion,

possibly for

reward.(Tutor2U

2009: 15)

The interests of key

stakeholders must be

recognised,

especially those who

may be positively or

negatively affected. A

Stakeholder Analysis

would highlight such

interests.

(RDI Notes,


P 4of 14)

Enhanced

communication

Misunderstanding

and apparent lack

of shared vision

among the change

team created

undercurrents of

distrust. Pettigrew

argues that internal

politics can restrain

change.(Pettigrew A

2001) (Lecturer’s

Handouts 2009)

1e Consultant

seeks success

and to boost

celebrity media

ratings. (Expert

Power) (French

and Raven

1960:17)

Ref:


Force rating for

change = 9

Force rating

against change=5

2a LC’s brand

loyalty is strong

in the UK.

Wachman R

Guardian

2007:8)

Renewing the logo to

illustrate and

symbolise a change

and new

management. The TV

series created

enormous publicity.

Plan for change 2 Poor service and

poor quality

products causing

damage to brand

reputation, if not

addressed urgently.

(Holbeche 2005)


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

(Rodgers J

Broadcastnow,

2009:13)

2b Owners

expressed desire

to keep and

revive the brand.

(Wachman R

Guardian

2007:8)

As above 2a Proposed buy-

out/ acquisition by

competitors (Italy’s

Benetton family)

threatened to scrap

the brand and keep

infrastructure.

(Wachman R

Guardian 2007:8)

Force rating for

change 8

Force rating

against change=3

3a Loyal cost-

conscious clients

demand renewal

of all services.

(Coercive

Power) (French

and Raven

1960)

(12Manage

2009:17)

Consult stakeholders

to ensure their needs

are addressed.

Collect data and

analyse it.

Communicate with all

stakeholders to show

their input is valued.

(Kotter J, Rathgeber

H 2006, P132)

Implement

healthy, cost-

effective menu

targeted towards

consumers needs

and freshly cooked

on location giving

choice of service

(e.g. sit down or

fast food

3 Entrenched

culture of putting

profit before quality

food was

outsourced and

came pre-cooked.

(Strebel, P 1996)


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

Force rating for

change = 10

Force rating

against change=5

4 Poor quality

food

“Business process

transformation is the

fundamental

rethinking and radical

redesign of business

processes” to change

the total product on

offer; complete with

sensory effects.

(RDI Study Notes,

Managing Change,

Unit 3, P5 of 20)

Empowerment of

Staff through

interactive training.

Staff were reluctant

to learn new

catering skills at first

as they faced a

culinary clash of

cultures

Force rating for

change = 9

Force rating

against change=5

Interactive and

hands-on training

with a receptive

group of

employees that

can influence

fellow workers

(Carnall C 1999,

P254)

New service format

moved staff out of

their comfort zones

and caused

resignations


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

5 Customers

demanded

service choice;

fast food and sit

down

(Guardian

2008:14)

Entrenched culture

and work ethic had

seen little change in

last 50 years.

Force rating for

change = 9

Force rating

against change=3

6a Owners

eager to

implement

refurbishment

programme

to act as catalyst

to turn business

to profitability

Implement Pilot

programme as a

model for successful

throughout the chain

and invest

incrementally into the

revitalising the whole

chain.

Renovate and

modernise

L C Popham as a

pilot scheme,

complete with multi-

sensory effects to

encourage sales.e.g.

musical toilets, coffee

aroma

Communication

strategy to target

all stakeholders

Market forces in

operation e.g.

a small but hard-

core of old-faithful

Little Chef

customers did not

welcome change


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

6b Investment

funds available

and owners in

favour of change

Prove change is valid

through data and

capital budgeting

analysis.

Force rating for

change = 10

Force rating

against change=1

External

3. Driving

Forces

(Help achieve

change)

5. Ways to

strengthen

6 Ways to

weaken

(Situation if no

change is made)

4.Restraining

Forces

(working against

change)

People, places,

environment

People, Things,

conditions

1 Owners eager

to see a

profitable

operation

Plan for change 1 Economy in

recession

2 New

competitive

brands had

established

themselves in

the market

Careful planning of

business process

transformation

2 Porters Five

Forces (Porter M

1979) describe this

market force as new

entrants – e.g.

Moto, Roadchef,

Welcome Break

Substitute products,

e.g. Costa Coffee

competing for the


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

same customers

and resources.

(QuickMBA2009:18)

3 Menu outdated

and overpriced.

Research new trends

3 Globalisation

have changed

consumer eating

habits e.g.

MacDonald’s,

Burger King, a

fast food culture

Research new trends 3 Persistent

consumer demands

had to be

accommodated on

new menu (e.g.

foregoing smoked

salmon and serving

baked beans with

breakfast)

4 Food

excellence

The Capital

Budgeting process

with realistic cash

flow forecasts

illustrating

favourable Net

Present Value and

IRR, tax rebates

and government

incentives, could

provide the

necessary

decision-making

information for

risk- averse

4 Unexpected

capital investment

was required, in

turbulent economic

conditions, to equip

kitchens to cook on

the premises.


3. Driving Forces

(Help achieve

change)


(Potential Action

Plan)

6 Ways to weaken

(Potential Action

Plan)

4.Restraining

Forces

(working against

change)

investors.

(Jarrett, 2010)

5 Research

highlighted

customer

preferences on

service choices

5 Customer

complaints

6 Customer

complaints and

decline in profit

Address the change

process as described

above.

Revitalise the LC

Popham branch to

prove feasibility,

test technological

changes e.g. Wi-Fi

links. Cloud

computing

installed

(Little Chef,

2009:10)

Competitors

Strengthening their

own market share

as LC posed no

competition.

Integrating the forces:

In weighing up the forces for and against change, the team should ask whether

issues are valid, significant and could the forces be changed. Once it is clearly

identified that change is desirable and that most stakeholders are ready for it, the

planned transformational change would be feasible. (Carnall C 1999) Please see

annexure 1 and 2.

6 To evaluate how effectively the process of change was managed, two

frameworks stand out, being the 7-S Model and Kotter's 8 step process of change.

The McKinsey’s (1980) 7-S models is centred around shared values and consider


business performance around strategy, systems, skills, structure, staff and style.

(12Manage 2009:9)

Kotter’s model is however specifically tailored to manage change in

organisations and therefore this model will be used as a guide, as explained

in their book “Our Iceberg is Melting”. (Kotter J and Rathgeber H, 2006).

Strebel’s Resistance to Change guidelines (Strebel P, 1996) is attached as

annexure 3 and guides resistance to change.

1 2 3

12

34

56

78

Pull together the guiding team

Create a sense ofUrgency

Get the desired change vision and Strategy

Communi-cate for understan-ding and buy-in

EmpowerOthers to act

Create short- term wins

Do not let up

Create a new culture/Make it stick

RDI Notes Drivers of change linked to

http://www.dcsf.gov.uk/everychildmatters/strategy/deliveringservices/servicedirectories/models/changemanagementmodels/?#relatedBase

Set the stage

Decide what to do and make it

happen

Make it stick

Kotter and Rathgeber’s 8-Step process of successful change for

LC




6.1 Create a sense of urgency

Kotter and Rathgeber advocate the importance of dealing with change urgently. They

propose that information should be presented logically so that thinking can begin to

change, which, in turn, can change behaviour. (Kotter and Rathgeber 2006 P131)

In accordance with this advice the CE addressed 250 LC managers on the LC’s

financial and operating status which, after the take-over, was in serious financial

trouble.

He gave them assurances that though they may be criticised for the state of the

present LC operation, that he valued and respected them and “forgave them for

mistakes”. His charisma, enthusiasm and drive won them over and the high staff

turnover was arrested. (Bowler S, 2009:7)

Strebel asserts that resistance to change manifests itself when staff consider that

management have reneged on the psychological contract which is the implied mutual

obligations employers and employees have towards each other. Once contravened

staff consider the arrangement to be broken and they have no obligation to cooperate

until they have reviewed their contract. (CIPD 2009:22)

6.2 Pull together the guiding team


Kotter and Rathgeber (2006) stress that the team need authority, analytical and

leadership skills with excellent communication abilities.

The change agent, an experienced manager in the roadside restaurant field, together

with expert food and service consultant, Blumenthal formed a powerful and credible

team with both individuals well respected in their own right. (Guardian 2009:8)

There was however conflict between the Change Agent and the Consultant from the

beginning. Scenes depicted tension between the Change Agent and the Consultant

because the Change Agent had unique situational knowledge, being the inner

workings of the business, its workflows and issues and was not willing to share this

with the consultant. (Annexure 7 Episode 1, scene 2A and 5)

Change agents and consultants need to be highly sensitive to their environment. A

breakdown of these skills are attached as Annexure 4.

Furthermore, these experienced leaders should have recognised that the scale of

change pervaded the following spheres, and are likely to cause turmoil.

Supplier contracts had to be negotiated with local suppliers. New procurement systems had to be put in place.

Kitchens had to be equipped and financed, Chef’s training, restaurant and fast food services training, amidst unsettling circumstances.

Systems

Processes

People and Culture

Organisation

Markets and Customers

Regulatory

Strategy

New Health and Safety regulations e.g. food recycling,

Staff needed re-assurance during unfamiliar training and trading conditions

LC customers had become more health and cost-conscious, living a fast- lane, cost-conscious lifestyle. Market research was done to ensure the new menus would satisfy customers’ preferred consumer tastes. . The “lost generation” had to be reached through new marketing campaigns.

The spheres of influence on LC during Change ManagementRDI Notes Organisational Development and change P9 of 15


The consultant overcame staff scepticism through his sheer passion for pursuing

excellence. He was also willing to compromise on his own high standards.

6.3 Develop the change vision and strategy

Kotter and Rathgeber (2006) stress that it is essential that the change team showed

staff what the food-service product future will look like. Senior and middle

management were consulted and through trial and error, the ideal menus, brand

revival, refurbishment programmes were gelled into the central vision.

Despite this, some disagreement still surfaced (Annexure 7 Episode 2, Scene 6)

possibly a play on power (Strebel 1996) which was overcome through negotiation.

Upon evaluation it is clear that the vision should leave no doubt as to what success

will look like. The Consultant insisted on quality and the Change Agent insisted on

profit. It was therefore essential to secure top management support. Middle

management ensures standards are maintained but it is not sustainable if top

management is not on board. (RDI Notes: Unit 3 Strategies and Models for Change,

Business Process Transformation and Total Quality management P14 of 20)

Please see annex 6 for further evaluation.

6.4 Communicate for understanding and buy-in

http://www.ouricebergismelting.com/wallpapers/Heroes.jpg


Kotter and Rathgeber state that as many stakeholders possible should be aware of

the changes and promote their buy-in.

To this end, a selection of talented LC grillers were selected to become involved in

the new vision for LC and they became the change heroes.

The Consultant demonstrated the essence of good quality food. Staff tasted, was

trained and tested to recognise excellence and poorly cooked food.

The authors state that the message of change should be spread widely to get

acceptance. It is important to remind the staff how they fit into the organisation.

(Kotter and Rathgeber 2006, P130)

In evaluating the success of getting the message out, the change team cannot be

faulted. The message of change at LC was most

effectively dealt with through the TV series and was

viewed by millions. This national interest has led to

unprecedented growth for the group.

Unfamiliar procedures, insecurities and fear of failure,

can take their toll on sensitive staff members as it did

at Popham when staff members walked out.

This self-explanatory change iceberg illustrates that

there is a wealth of hidden factors below the surface,

in the sea of change. The relatively small area of

management issues which break through is literally

the tip of the iceberg. (Kruger W, 2008)


(12Manage 2009:24)

6.5 Empower others to act

The Consultant removed the barriers that stand in the way of staff who want to

embrace the vision. (Kotter J 2006)

A model team was trained to become trainers for other LC outlets. Once mastered,

the LC staff team trained other staff in the other two LC outlets in Kettering and York.

The consultant embraced and recognised the staff as the bedrock of the

organisation. And enabled their professional growth through learning.


6.6 Produce short term wins

In line with Kotter’s advice, staff training and empowerment sessions were quick wins

to gain staff confidence.

A substantial landmark was the official relaunch of the first “Heston Model” which

generated much publicity and renewed interest in the brand.

The next motivating factor was the announcement that two further restaurants will be

launched, based on the Heston Model.

6.7 Don’t let up

The Consultant agreed to supervise progress for three months and then

management would decide whether to roll out further outlets.

The author’s visits have proved that standards remained consistently high.


Look to the future and anticipate change. (Jarrett 2010)

6.8 Create a new culture

Care in this crucial part of the change process begins to form the basis of the new

culture in the organisation. The consultant’s input illustrated his genuine interest in

the staff members, their growth and skills development, quickly resolving conflict as it

arose.

Conclusions:

The Popham pilot programme was considered a success and the owners plan to

launch a further twelve restaurants based on the Popham Model. (Catersearch 2009:

20)

Change Management is a highly skilled job. It is now recognised that more than

industry expertise is required to transform complex business problems.

Consultants are expected to have business insights first before being able to

generate strategic change.


New Look Olympic Breakfast

7 In assessing the extent to which the change at LC was successful in meeting

its objectives it is necessary to recall the change objectives as listed in 4.2.

The tangible objectives of the transformational change was highly visible.

The renewal of the LC Brand and Logo and

The Old but cherished British Logo

(Manchester Evening News 2006)


New Look

the refurbished premises

the new menu.

7.1 An appropriate model to assess the change at LC in its strategic entirety

would be the Balanced Score Card (Kaplan and Norton, 1992). (12Manage 2009:12)

This model places the organisation’s vision and strategy at the heart, which drive the

performance of the organisation. The four perspectives are:

Financial

Customer


Business

Learning and growth

The Little Chef vision is:

Good food on the go

to be the motorist's friend, serving up quality

food and offering great value for money.

The author telephoned the LC Head Office for information on structures, a balance

sheet, and staff retention but this request was turned down. In its absence the author

will report on secondary research findings.

7.1.1 Finance

Their profit forecasts were widely publicized in the media. As the case study was

televised, the public interest was strong. At take-over in 2007 LC was reported to

have lost £3 million p.a. However an increase in sales of 250% was announced

during the TV series.

The LC website reports that since the Blumenthal intervention their sales are up

500% with a 150% year on year increase. (Little Chef 2009:10)

Further reports announced that the group had “bounced back, stronger than ever”

and had forecasted a profit of £3million for the year till December 2009. (Catersearch

2009:29)

The financial aspects of the Balanced Scorecard suggest that organisations also

have intangible values that are not reported on in Financial Results. The Scorecard

makes provision for branding and other intangible assets to be monitored.

The owners of Little Chef have stated that their long term objective is to build up the

brand and then sell it. R Capital bought LC for £10million, but it was previously sold

for £52m when it changed hands. Their strategy to build up the brand is to increase

its value and therefore the transformational change was a crucial step in its recovery

of profits. Jarrett 2010. (Shares Magazine 2009:19)


7.1.2 Customers

Media reports stated that LC, despite its decline, still had 11 million customers(2007).

In assessing the success of achieving an improved service objective, it is reported

that LC has more than 20 million customers walking through its doors since the

changes were brought about at the Pilot Restaurant. This figure will undoubtedly be

increasing as sales increase.

Personal visits to the Little Chef have proved to be an enjoyable, value for money

experience, true to its vision statement.

7.1.3. Business

LC underwent a transformational business process transformation as can be seen

from the preceding parts of this report. The organisation is now fully geared to base

their business model on quality food and service, (Annexure 7, 4/5) Because of the

scale of the business the Consultant negotiated supplies from local suppliers. This

will be generating a great deal of goodwill in the local areas around the 176 outlets.

Change has stimulated the business profitability and growth objectives.

7.1.4 Learning and growth

The growth of the business is evident in further media reports that the Consultant will

be opening a further 12 LC outlets in 2010 (Catersearch, 09:30)


Camaraderie in learning

Undoubtedly structures were altered to cope with the business process

transformation. This was unfortunately not obtainable. A change in structure is known

to change the culture of the organisation as well, as management often become

more accessible in flatter structures that are more responsive to their customers. As

the organisation changes the culture changes to keep abreast of its environment and

staff do not get stagnant. (RDI notes Unit 1 Lesson-Drivers for change P 13 of 15

Drivers for change)

M.Jarrett 2010. personal experience.

A further development is apparent in evaluating the change process. Ackerman

(1997) states that a transitional change takes place within the scope and context of

the transformational change. From this change LC has emerged as a learning

organisation.

The Consultant‘s transfer of knowledge and skills has changed the staff’s perception

and approach to their end product. The skills they had gained through exposure to

improved processes, represents a source of power and pride in the staff.

(HRPlatform 2009:23)

Organizational level change does not follow a linear pattern that can be duplicated

and applied restaurant after restaurant. Each one will have their own unique


character and a crucial emergent element. It is therefore necessary to capture the

leaning experience gained to be applied and refined where needed. Such actions

will lead to the LC becoming a learning organisation and one of excellence as the

change team becomes more skilled. (RDI Notes Module Managing Change in

Organisations Drivers for Change P13)

In conclusion, it can be stated that LC had achieved the objectivises they set

themselves to change.

Business Process Transformation is not a panacea for an ailing business and needs

ongoing refinement making the company agile in meeting the constant changes

occurring in the business environment.

(RDI Notes Business Process Transformation and Total Quality Management Top

Tips P9 of 20)

Throughout the analysis of the LC case study the author observed that no direct input

was given to staff except to interact and train them for the new job descriptions. Little

Chef, could be well advised to deal with staff issues more sensitively by

implementing Human Resource policies that support staff through the enormous

changes that lie ahead for the LC staff.

The change earned them much sought-after recognition in British Good Food Guide.

The change has not just affected the processes and systems but the staff had

changed in the process of adapting to change. The stakeholders of Little Chef face

an optimistic future.

7.1.5 It is therefore RECOMMENDED that:

1 Human Resources Policies be developed to deal with the human process

when Little Chef

2 Those e-learning opportunities be created for staff who are eager to

embrace the vision and open themselves up for professional growth,

personal development and career opportunities within the group.

Jarrett 2010.


Bibliography

Books and e-Books

Beitler M, 2009 Strategic Organizational Change (Second Edition) The strategy

driven approach Chapter 1 E-book [Online] available from

http://www.mikebeitler.com/strategic-organizational-change/Strategic-Organizational-

Change-Chapter-1.pdf

Carnall C 1999, Managing Change in Organisations Forcefield Analysis, Europe,

Prentice Hall,

Holbeche L, 2005 Understanding Change, Theory, Implementation and Success

Imprint: Butterworth Heinemann Paperback, 432 pages, publication date: OCT-2005 ,

ISBN-13: 978-0-7506-6341-0 ISBN-10: 0-7506-6341-3

Kotter, J & Rathgeber, H (2006) Our Iceberg is Melting, London UK, MacMillan

Mullins, L (2005) Management and Organisational Behaviour 7th edition Pearson

Education Limited

Journal

Strebel, P. (1996, May/Jun). Why do employees resist change? Harvard Business

Review 86-92. Strebel, P. (1998) Why Do Employees Resist Change? In Harvard

Business Review on Change. Boston: Harvard Business School Publishing, pp. 139-

157. (originally published in May/June, 1996 issue of Harvard Business Review)

Podcasts:

TV Programmes, Big Chef takes on Little Chef and Did Heston change Little Chef:

available from: www.itunes.co.uk/TVProgrammes/Non-Fiction, Two Four productions

Limited, 4 episodes,

Internet:

1 Corporate Author, 2009 Companies: Little Chef, Article, Caterer [Online]

available from http://www.caterersearch.com/Companies/33957/little-

chef.html [accessed 20 November 2009]

http://www.caterersearch.com/Companies/33957/little-chef.html

http://www.caterersearch.com/Companies/33957/little-chef.html


http://www.mikebeitler.com/strategic-organizational-change/Strategic-Organizational-Change-Chapter-1.pdf

http://www.mikebeitler.com/strategic-organizational-change/Strategic-Organizational-Change-Chapter-1.pdf


2 Ackerman (1997) Northumbria University for JISC, Change Management

Types of change articlehttp://www.jiscinfonet.ac.uk/infokits/change-

management/types-of-change

3 Corporate Author n.d. Tutor2u Strategic planning setting objectives [Online]

available from http://www.tutor2u.net/business/strategy/objectives.htm

accessed 8 Jan 2010

4 Unknown, n.d. Growth Finance RCapital website [Online] available from

http://www.rcapital.co.uk/growth.html

5 Iskikawas K Fishbone or Cause and Effect Diagram 12Manage.com [Online]

available from

http://www.12manage.com/methods_ishikawa_cause_effect_diagram_es.htm

l accessed 14 January 2010

6 Lewin K, 1982 Forcefield Analysis available from [online]

http://www.12manage.com/methods_lewin_force_field_analysis.html

7 Bowler S, 2009 The Guardian The Friday Interview 16 January 2009 Faith,

hope and fast food. The big chief getting Little Chef motoring - Ian Pegler,

visionary with evangelical determination to drag his roadside diner chain back

from the brink. [Online] available from

http://www.guardian.co.uk/business/2009/jan/16/friday-interview-ian-pegler

accessed 3 Oct 09

8 Wachman R 2007 The Observer, Guardian.co.uk Business Little Chef

makes a stand over logo Sunday 8 July 2007 edition

http://www.guardian.co.uk/business/2007/jul/08/theobserver.observerbusines

s2

9 Peter T & Waterman R, 1978 7-S Framework (McKinsey) 12Manage.com

[Online] available from http://www.12manage.com/methods_7S.html

accessed 12 January 2010.

10 Corporate Author 2009, Little Chef Home Page Did Heston change Little

Chef? [Online] available from http://www.little-chef.co.uk/promo/channel4

accessed 20 January 2010

http://www.little-chef.co.uk/promo/channel4

http://www.12manage.com/methods_7S.html

http://www.guardian.co.uk/business/2007/jul/08/theobserver.observerbusiness2

http://www.guardian.co.uk/business/2007/jul/08/theobserver.observerbusiness2

http://www.guardian.co.uk/profile/richardwachman

http://www.guardian.co.uk/business/2009/jan/16/friday-interview-ian-pegler

http://www.12manage.com/methods_lewin_force_field_analysis.html

http://www.12manage.com/methods_ishikawa_cause_effect_diagram_es.html%20accessed%2014%20January%202010

http://www.12manage.com/methods_ishikawa_cause_effect_diagram_es.html%20accessed%2014%20January%202010

http://www.rcapital.co.uk/growth.html

http://www.tutor2u.net/business/strategy/objectives.htm%20accessed%208%20Jan%202010

http://www.tutor2u.net/business/strategy/objectives.htm%20accessed%208%20Jan%202010

http://www.jiscinfonet.ac.uk/infokits/change-management/types-of-change

http://www.jiscinfonet.ac.uk/infokits/change-management/types-of-change


11 Kotter J 2007 Change step Cards, Step 3 Develop the Change Strategy and v

vision available from http://ouricebergismelting.com/html/card3/html accessed

3 January 2010

12 Kaplan and Norton, 1992 12manage.com The Balanced Score Card [Online]

available from http://www.12manage.com/methods_balancedscorecard.html

accessed 13 Jan 2010

13 Rogers J 2009, C4's Big Chef attracts a tasty 3.1m 20 January, Article

[Online] available from http://www.broadcastnow.co.uk/news/multi-

platform/news/c4s-big-chef-attracts-a-tasty-31m/1970007.article acessed

12 December 2009.

14 Wachman R, 2008 Guardian.co.uk The Observer Little Chef’s healthier recipe

[Online] available from

http://www.guardian.co.uk/business/2008/jul/13/fooddrinks.retail/print

Accessed 13 Nov 2009

15 Corporate Author, n.d Tutor2U, Principal agent problem website [Online]

http://tutor2u.net/economics/content/topics/buseconomics/principal_agent.htm

accessed 12 December 2009

16 Corporate Author, n.d. Sachs International Forcefield Analysis Template


http://www.sachinternational.com/library/higher_diploma_seminars/tim_mills2.

htm#proforma accessed 11 December 2009

17 French and Rave (1960) maintain that societies hold unseen “Bases of Social

Power “ that are all pervasive [Online] available from

http://www.12manage.com/methods_french_raven_bases_social_power.html

18 Porter M 1979 QuickMBA strategic management Porters Five Forces theory

[Internet} available from http://www.quickmba.com/strategy/porter.shtml

accessed 2 Jan 2010

http://www.quickmba.com/strategy/porter.shtml%20accessed%202%20Jan%202010

http://www.quickmba.com/strategy/porter.shtml%20accessed%202%20Jan%202010

http://www.12manage.com/methods_french_raven_bases_social_power.html

http://www.sachinternational.com/library/higher_diploma_seminars/tim_mills2.htm#proforma

http://www.sachinternational.com/library/higher_diploma_seminars/tim_mills2.htm#proforma

http://tutor2u.net/economics/content/topics/buseconomics/principal_agent.htm%20accessed%2012%20December%202009

http://tutor2u.net/economics/content/topics/buseconomics/principal_agent.htm%20accessed%2012%20December%202009

http://www.guardian.co.uk/business/2008/jul/13/fooddrinks.retail/print

http://www.broadcastnow.co.uk/news/multi-platform/news/c4s-big-chef-attracts-a-tasty-31m/1970007.article

http://www.broadcastnow.co.uk/news/multi-platform/news/c4s-big-chef-attracts-a-tasty-31m/1970007.article

http://www.12manage.com/methods_balancedscorecard.html%20accessed%2013%20Jan%202010

http://www.12manage.com/methods_balancedscorecard.html%20accessed%2013%20Jan%202010

http://ouricebergismelting.com/html/card3/html%20accessed%203%20January%202010

http://ouricebergismelting.com/html/card3/html%20accessed%203%20January%202010


19 Corporate author, April 23, 2009, Shares Magazine, Bouncing back Article

[Online] available from http://www.sharesmagazine.co.uk/node/5186

[accessed 29 October 09]

20 Corporate Author 09, Catersearch Heston Blumenthal to overhaul 12 more

Little Chefs article [Online] available from

http://www.caterersearch.com/Articles/2009/07/27/328898/heston-

blumenthal-to-overhaul-12-more-little-chefs.html accessed 15 January 2010

21 McNamara C, 1997. Handout: Mr Ian Norman, Lecturer, Blakehall College,

London, UK, Management Library, [Online]

http://www.managementhelp.org/org_chng/keyterms.htm accessed on 25

September 2009

22 No author 2009, CIPD, Psychological contract Guidelines, [Online]

http://www.cipd.co.uk/subjects/empreltns/psycntrct/psycontr.htm?

IsSrchRes=1

23 Corporate Author, n.d. articles HR Platform, What is meant by change?


http://www.hrplatform.com/content/c/change_management_primer/3.html

24 Kruger, W 1980 Change Management Iceberg, 12Manage.com [Online]

Available from

http://www.12manage.com/methods_change_management_iceberg.html

Accessed 10 January 2010

http://www.12manage.com/methods_change_management_iceberg.html

http://www.hrplatform.com/content/c/change_management_primer/3.html

http://www.cipd.co.uk/subjects/empreltns/psycntrct/psycontr.htm?IsSrchRes=1

http://www.cipd.co.uk/subjects/empreltns/psycntrct/psycontr.htm?IsSrchRes=1

http://www.managementhelp.org/org_chng/keyterms.htm

http://www.caterersearch.com/Articles/2009/07/27/328898/heston-

http://www.sharesmagazine.co.uk/node/5186


Annexure 1

Charles Carnall 1999 contends that Increasing the strengths of driving forces runs

the danger of ignoring those stakeholders who are apprehensive about what the

changes will lead to. The changes undergone by Little Chef have been drastic and

therefore the turmoil this will cause during the human process interventions such as

conflict management, team building, management development, organisational

learning and communication will require perceptive and insightful management. The

technical processes such as operational issues, food production, marketing, finance,

logistics and technology processes will require skilled attention as this enormous

scale of change will affect all these aspects.(Beitler M, 2009)

Annexure 2

An alternate way to analyse L C’s drivers for change could be the application of

Hamel and Prahalad’s Core Competence model applied to establish competitive

advantage. These could be used to build on LC’s internal strengths as opposed

to being based on internal and external forces that drive change. Hamel and

Prahalad’s Core Competence model theorises that competiveness emerges from

the strengths of the core competences of a business. Building on these strengths is a

cost-effective way of building the business’s capacity.

Little Chef have core competencies which meet the criteria of the theory. They are:

Having access to a wide variety of markets

Contribute significantly to the end product benefits

Be difficult for competitors to imitate

Prahalad and Hamel 1990, Core Competence Model QuickMBA

http://www.quickmba.com/strategy/core-competencies/ 2 Jan 09


Little Chef infrastructure and intangible assets include:

1. 176 trading premises throughout the UK where planning permission for

similar projects would no longer be granted by local Councils. Competitors

would not be able to imitate this.

2. L C are co-located with several Travelodge Hotels and Burger King franchise

holders, thereby contributing to end-product benefits.The British iconic Little

Chef brand with its The Fat Charlie logo, which provides competitively priced

food into the heart of the the UK road network reaches a wide variety of

markets.

Corporate author, 2009 Bouncing Back, article in the Shares Magazine, April 23,

2009 edition, [internet] available from http://www.sharesmagazine.co.uk/node/5186

accessed on 2 November 2009.

Though Hamel and Prahalad applied their theory to using core competence which

would feed into various end-products it could be argued that Little Chef’s core

competencies meet their theoretical criteria.

Their Core Competences being a network of 175 Established co-located trading

Outlets could therefore be a Driver for change

Prahalad and Hamel 1990, Core Competence Model QuickMBA

http://www.quickmba.com/strategy/core-competencies/ 2 Jan 09

Annexure 3

Strebel’s Resistance to change model

In assessing resistance to change

Look for:

Closed attitudes

Entrenched cultures

Inflexible arrangements and methods and procedures (like e.g.cutting quality

of food)

Clashing attitudes towards change efforts or goals


Look at re resistance to change for forces that may be correlated with each

other

Describing the resistance threshold in terms of power and resources needed

to deal with the resistance (Strebel P, 1996)

Lecturer’s Handout , Mr Ian Norman, Blakehall College, obtained from

www.ln.edu.hk/mgt/staff /change EMBA Lecturer’s Handouts 2009 Mr Ian Norman,

BHC, Leading Change, from slides of Barbara Senior Organisational Change

Lecturers Guide 2002, available from

http://www.ln.edu.hk/mgt/staff/robin/Change/EMBA%206%20amended1.ppt

accessed September 2009.

Annexure 4

Change consultants should possess the following competencies:

Excellent rapport among all stakeholders, and should have especially good

collaboration within the change team,

have the ability to manage change,

data collection,

problems solving and

reporting to clients.

RDI Notes, 2009 Unit 2, Identifying, Understanding and Involving others in Change,

P2 and P8 of 19 Understanding Change through Consulting.

Once the nature of the change has been identified the change team should possess

and be suitably equipped to:

Recognise the emotional response to change, even in management ranks, to

ensure the commitment to and acceptance the change.

Demonstrate top management ‘s visible and active support for the changes

Listen and communicate consistently with those involved to build commitment

Provide the required support for the processes in terms of new skills and

resources that may be required.

http://www.ln.edu.hk/mgt/staff/robin/Change/EMBA%206%20amended1.ppt


RDI Notes Unit 1 Change Management :The Business Context, Organisational

Development and Change P12 of 15

Furthermore, the change team should possess project management skills, a

thorough understanding and agreeing on the change objectives, then the skills to

orchestrate people, processes and systems. In studying the case study it became

apparent that the communication among the change agent and consultant was sorely

lacking.

RDI Notes Managing the Change Programme P 1 of 16

Kotter J and Rathgeber (H 2006) P 130

Annexure 5

Furthermore, if the Pennington’s Proposed change matrix below had been applied to

LC, it would have been clear that the proposed changes would cause high

disturbance and was high risk. The changes were radical, especially at the core of

the business. Staff who had been preparing food out of packets for years were called

on the cook and serve food of a high standard from quality raw ingredients, in a very

short period of time and expected to perform under duress.

Own Illustration on Proposed Change.

Pennington theorizes that if the character of the planned change could be plotted on

the graph, the change agent would sense how the change may affect the

Radical

PeripheralCore

Incremental

High DisturbanceHigh Risk

Moderate DisturbanceLowish Risk

Low DisturbanceLow Risk

Moderate DisturbanceModerate Risk

Proposed ChangePennington (2003)


organisation. This radical changes brought about in LC were substantial.

(Northumbria University 2009 :23)

Annexure 6

The Consultant insisted on the best quality of food to hang his strategy onto and the

change agent kept looking at using cheaper ingredients to satisfy the profit motive.

This could be ascribed to the principal/agent problem whereby the change agent and

consult do not share a common goal and their goals are not known to the owners.

(Tutor2U,n.d:)

In evaluating the team’s effectiveness their persistence, which to the casual TV

viewer may appear to be petulant behaviour, became clear. The Consultant was

adamant that for business process transformation to be established the quality of the

food was crucial to the success of the new model.

Little Chef Change-MBA Assignment-Reference Mgt-4

Documents

Transcript of Little Chef Change-MBA Assignment-Reference Mgt-4