Royal Mail Group Ltd Examination and Evaluation of its Modernisation Programme

More detailed figures show that “each week Royal Mail Group serve 28 million customers through a network of some 14,300 Post Office® branches and deliver some 337 million parcels a year” (Opportunity Now, 2010). However, the company has been going through a phase of the financial crisis in recent years. This, in turn, has alerted the management to bring about significant changes in the operations of the company. The present report aims at identifying the reasons for changes in order to outline a comprehensive modernization program for Royal Mail Group, Ltd. Attempts will be made to describe the stages of planning, implementation, and evaluation. The report will also discuss the factors resisting changes and undertake an assessment of the effectiveness of the changes. During the course of analysis, Lewin’s three-step change model will be used as the theoretical foundation and additional literary sources will be extensively referred to.

Organizational change is initiated by various driving forces that are either external or internal. The external drivers comprise “forces that are outside the organization and usually fall into one of the following four categories: economic, political, socio-cultural, or technological” (Proehl, 2001, pp.123). In contrast, the internal drivers “are those forces within the organization that propel the organization towards change, and they include such categories as strained finances, the limited skill level of employees, inadequate equipment, changes in leadership, and high turnover and absenteeism rates” (Proehl, 2001, pp.123).

The financial performance of the company appended above reflects the incremental trends that it has shown in terms of turnover,&nbsp.operating profit, and net operating assets. However, the annual profits have been dwindling since 2008 and in 2009 the company reported a loss of £ 373 million.