Resistance
One of the challenges that Ngai Tahu may encounter during the implementation phase of the proposed change is resistance. The customers may reject and refuse to adopt the increased costs. Even though the services will have been improved the customers may be reluctant to adjust to the increased costs for the services offered.
Conflict
Moreover, conflict may arise due to the changes made by reducing some difficult activities. Customers have varying tastes and hiking or fun preferences. Therefore, some customers may prefer difficult activities and reducing these activities creates a conflict. Also, another conflict may arise shortening time for iceberg hiking. Customers that value iceberg hiking as their main important event that attracts them will be disappointed when the time for iceberg hiking is reduced and this may cause a disagreement as they will demand for the time for iceberg hiking to be lengthened.
Strained financial resources
Since that the change will involve increasing hours the helicopter will fly which will automatically increase fuel costs and more costs will be encountered as the pilots will be paid more, the company may end up straining its financial resources. The Ngai Tahu may run short of funds due to the increased costs which may further lead to reduced profits and increased losses.
Disruption of schedules
Schedules are may be disrupted by the changes implemented leading to confusion and poor service delivery. Changes such as increasing the hours that helicopters will fly will definitely interfere with the existing schedule that the customers are familiar with. This may lead to confusion and customer dissatisfaction.
Lewin’s Change Management Model
This is a change management model that Ngai can adopt in order to ensure an effective change. This model helps in understanding organizational change and is made up of three stages which include; unfreeze, change and refreeze (Cameron & Green, 2015). Using this model to avoid the challenge of resistance, Ngai has to begin the change process from the initial stage, unfreeze stage where he has to prepare for change by gathering all the required resources, then going to the next stage ‘change’, whereby he will focus on undertaking the actual actions for change given that he has obtained all necessary resources and then finish on the last stage ‘refreeze’, whereby he will motivate and influence both the customers and employees to embrace and accept the change and things begin to get back to normal(Cameron & Green, 2015).
McKinsey 7 S Model
Ngai Tahu can also use this framework to ensure successful change by avoiding conflict. This framework consists of seven steps to managing change. To address the issue of conflict created, Ngai will have to being from the first step whereby he will have to develop a strategy, then proceed to develop a vivid structure, then ensure that he creates a system of tasks done, he also has to develop a set of shared values within the company that will help in creating cooperation between employees and customers. He will also have to identify an appropriate style of leadership and management, define staff or workforce and then ultimately determine appropriate skills to exploit in the change management (Cameron & Green, 2015).
Kotter’s change management theory
This theory can also be used to address the issue of disrupted schedule so as to ensure an effective change. This theory focuses on people’s response to change and is divided into eight stages. To address this issue, Ngai will have to begin by increasing the urgency of the change, then develop a change management team to redesign and manage the schedule, then establish a precise vision (Cameron & Green, 2015). He will also have to communicate with the employees and customers about the changes to be made in the schedules in advance, empower the action made to alter the schedule and at the same time focusing on short term goals. Also, Ngai will have to persist on key to success by ensuring that the schedule is convenient for everyone.
ADKAR model
This model is a goal-oriented tool which Ngai Tahu can use to avoid the challenge of strained financial resources since it enables diverse change management teams to concentrate on initiatives that are directly associated with the goals being targeted and are cost effective (Cameron & Green, 2015). Using this model, Ngai can develop various change management teams to manage and plan for the financial resources to be used in the change process so as to avoid straining the company’s financial resources. Moreover, this model will enable him to identify gaps and financial needs in the change process so that he can work on it in time.