The Role of Risk in Change Management

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The Role of Risk in Change Management

MGT 362

Change Management and Implementation

RISK ASSESSMENT MATRIX

  RISK RATING KEY LOW MEDIUM HIGH EXTREME
    0ACCEPTABLE 1ALARP (as low as reasonably practicable) 2GENERALLY UNACCEPTABLE 3INTOLERABLE
    OK TO PROCEED TAKE MITIGATION EFFORTS SEEK SUPPORT PLACE EVENT ON HOLD
TOLERABLE UNDESIRABLE INTOLERABLE
EFFECTS ARE FELT, BUT NOT CRITICAL TO OUTCOME SERIOUS IMPACT TO THE COURSE OF ACTION AND OUTCOME COULD RESULT IN DISASTER
MEDIUM MEDIUM HIGH
Specific Dietary NeedsExpansion of Hours – 6 – – 10 –
MEDIUM HIGH EXTREME
– 5 – – 8 – – 11 –
HIGH HIGH EXTREME
– 7 – – 9 – – 12 –

Change management involves a guided process to transition individuals, teams or organizations from one state to another. The ultimate goal of change management is to achieve the desired change with the maximum of positive benefits and minimum of negative effects on all stakeholders. It is important to adopt a process for managing change that is appropriate to the nature and context of the change being managed as well as the culture of the organization. This basic process includes establishing a need for change, implementing new procedures and policies, and monitoring results. The main risk of any change process is that the new systems and ways of doing things will not work and the company will potentially end up worse than it was before.

It is important to identify any risks that may be associated with any change process. Identifying project risks is a process that consists of identifying potential risks and how they can be harmful to the organization. It is important to identify and analyze the potential project risks to determine the probability of an event occurring that could create either a positive or negative effect. It is also important to ensure a plan is in place to deal with both types of risks. In the chart below, we have outlined various risks associated with change management, specifically within the restaurant industry.

Risk 1: Residents Dealing with Change

In a retirement home, any kind of change can be very difficult to deal with for residents. Some residents have their specific routines and can be very resistant to change, which poses a large risk in making changes at all. Though, if they are presented with upcoming changes before they actually take place, it may help the transition and help them be more welcoming. A few of the main changes include closing of one restaurant, expanded hours in one restaurant, changes in prices depending on dining in or taking out, and new menus. For those who enjoy the restaurant that is closing, the risk response initiative recommended would be to incorporate the most popular entrees in the new restaurants.

Presenting the expansion of hours in a positive light to residents will also be important, as older residents have a routine of eating at a certain time every day. Changes in prices may also play a rather large risk depending on each resident’s budget and expenses. Lowering prices for to-go orders so residents can enjoy their meals in their room is a positive way to present the change. Incorporating some of the more popular items on the new menus will help with the transition, however, menus should be distributed to all residents, prior to the re-opening so they have an idea of their meal options. This will give them an opportunity to ask questions if they have any dietary restrictions.

Risk 2: Specific Dietary Needs

As we get older there are risks in every aspect of our lives. As our bodies change, so can our dietary needs. When running a restaurant that primarily serves the elderly population, it is important to understand their dietary needs and ensure the restaurant can accommodate those needs. Due to the closure of one restaurant, the burden to serve more within the community has been placed on the remaining restaurants, this increases the risk of not being able to keep up with potential dietary needs presented. It is important to keep both the restaurants and the clientele in mind when making these changes.

There are many factors when considering dietary needs. One consideration is increased cost associated ensuring the food is prepared properly. Another is ensuring the kitchen is large enough to accommodate the clientele’s diets, such as celiac disease, better known as gluten intolerance. Additionally, when preparing food for these individuals, you must have a separate preparation area to ensure the food is not contaminated by gluten in any way, or there could be costly repercussions. Lastly, clients could become frustrated with the limited choices available to them or the inability for the restaurant to meet their dietary needs.

Risk 3: Varying Restaurant Offerings

When closing a restaurant for construction, residents must be redirected to another location. They expect to be offered the same items at the other venues when they dine there. That may not be possible for many reasons: it is a different style restaurant, with different people and different service; storage may be limited to the head chef and his team, forcing the staff to make provisions.

Risk 4: Menu Options

When consolidating restaurants, the goal is to effectively accommodate the same amount of people within the retirement home. This is done through use of the “to go” menu. The remaining restaurants add more items to their “to go” go menus to ensure the customers do not have to wait in line as well as give them the ability to take the food back to their rooms. The risk associated with this is not everything they serve within their restaurant is actually on their “to go” go menu. So, what if a customer wants something that is not only the actual to go menu but is served within the restaurant? One way to solve this problem accept special requests from the customers. This ensures they receive their food in a timely manner, without having to wait in line, and hopefully will want to return again.

Risk 5: Ordering Systems

Another risk to consider when down-sizing restaurants is the operating systems that take the orders potentially crashing. It seems it would be more efficient to have more operating and ordering systems to pick up the extra customers/orders from the restaurant that closed. However, you risk this operating system crashing and being left with no way for customers to order. Utilizing a completely different ordering system that is not on the same software is one way to combat this problem. This will ensure the restaurant can take orders without making customers wait. Another plan to have in place is a paper ordering system just in case the electronic ordering systems do crash.

Risk 6: Expansion of Hours

Expanding restaurant hours creates new risk in different ways. One risk of expanding hours of a restaurant will be having to either hire new employees or expand current employee’s hours to account for the new hours. By doing this there will be an increase in labor cost. If not enough customers make purchases during these expanded hours, the restaurant could end up losing money. There is more risk involved than just labor cost. Essentially all cost will increase by expanding hours such as food purchases and utilities. Another risk involved in expanding the hours of the restaurant will be scheduling for employees. As mentioned previously, the restaurant will either need to hire more employees or try to expand current employee’s hours. Staffing can always be an issue and cause problems. By expanding the hours you currently operate at, it can potentially make the process more difficult.

Conclusion

There are many risks associated with the closing and consolidating of a restaurant. Because this particular restaurant is within a retirement home, there are many factors involved that differ from other restaurants in the food industry. All of the risks discussed in this document should be considered when taking on this transitional project. During this time, the number one goal is customer service. It is crucial to have systems in place to expedite the food service efficiently and effectively. Analyzing the potential risks as well as preparing and having a plan in place to minimize those risks, will ensure the best possible outcomes for all stakeholders.

References

AYGÜN D, GÜNGÖR İ. Why is Alzheimer disease confused with other dementias? Turkish Journal Of Medical Sciences [serial online]. September 2015;45(5):1010-1014. Available from: Academic Search Complete, Ipswich, MA. Accessed May 18, 2018.




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