Assessment on Leadership Case Study Analysis of Vodafone Digital Transformation
Part 1 – Case study analysis
The background to the change process
In this study, Vodafone has been considered to be analysed as a case study, as it is observed to adopt digital transformation. Considering the case study of Vodafone, the background of the change process and the organisational approach to manage the change process would be critically evaluated.
Vodafone is a globally renowned telecommunications company with operations in approximately 200 nations. The organisation delivers as well as managers’ services in 23 languages in its global network (Vodafone, 2023). In order to respond to the changes in the telecommunications sector, along with satisfying the increasing expectations of global customers, the organisation went through a considerable digital transformation. The digital transformation strategy of Vodafone has its roots in the early 2000s when the company first started to investigate the potential of digital technologies. During the period, with the emergence of advanced digital technologies such as mobile internet and smartphones, and their incorporations, the telecommunications industry was going through a tremendous transformation (Acs et al. 2021).
Considering the ideas of the TAM (Technology Acceptance Model), the decision of Vodafone to incorporate advanced technology and implement change to adopt digital transformation can be analysed. The model indicates that behavioural intentions are considered as one of the significant factors that lead individuals to utilise technology. In this regard, the opinion of Ahmad et al. (2020), consumers usually to continue the usage of technologies, that they found to be more compatible with their requirements, as well as lifestyles. Similarly, according to the Diffusion of Innovation theory, customers are more willing to embrace technologies, when they see their advantages and benefits (Min et al. 2019). Hence, businesses need to offer customers new products and services that are valuable and beneficial for customers in terms of making it easier to use technology or electronic gadgets, which can raise their interest in digital services. Customers’ preferences, as well as expectations from telecommunication companies, have changed since the early 2000s and that influenced telecommunication companies to focus on this aspect in order to satisfy customers (Acs et al. 2021). Therefore, customers’ preferences regarding smartphone internet services and other updated technology have influenced global companies such as Vodafone to be focused on this aspect in order to sustain their business as well as achieve success.
Figure 1: Global revenue of Vodafone
(Source: Taylor, 2023)
Moreover, it is observed that the revenue of the organisation from 2008 to the recent year witnessed fluctuations. For instance, in 2008, its revenue was approximately 35.48 billion Euros, which became approximately GBP 45.88 billion, in 2011 (Taylor, 2023). After that, the organisation again witnessed a decline in its global revenue, as it became approximately GBP 38.04 billion, in 2013 (Taylor, 2023). Hence, in order to sustain the business in the competitive telecommunication industry, by dealing with market competition the organisation has taken the initiative to be focused on change management in order to adopt digital transformation. In this way, the organisation has maintained its market position, as one of the players in the telecommunication industry, by investing in the incorporation of digital technology and creating its digital platforms. Apart from that, the organisation also provided a particular essentiality on modernising its overall business practices. Likewise, in order to adapt to the changes as well as shifts in the telecommunication industry, along with satisfying its customers’ changing expectations, Vodafone has been focused on a digital transformation.
Vodafone’s approach to the management of the change process
Vodafone has a clear vision regarding digital transformation, which is supported by its purpose to connect for a better future (Vodafone, 2023). The approach of the organisation regarding the change process of digital transformation includes its vision, strategy, leadership, governance, employee training and development, continuous improvement, and consumer-centric approach. The aim of Vodafone is to create a sustainable digital society that is inclusive for all, where connectivity, as well as technology, are improving the lives of individuals and enhancing the future (Vodafone, 2023). The mission statement of the organisation indicates that the company has the potential to take positive initiatives that are supportive to make a sustainable digital society. This is the reason that the corporate strategy of the organisation has always been focused on making investments in advanced technology, exploring business models, and developing digital platforms (Vodafone, 2023). This kind of strategic initiative is extremely crucial for ensuring successful change management, as it has the potential to provide a clear direction as well as focus for the company (Correani et al. 2020).
Figure 2: Kotter’s change management model
(Source: Laig and Abocejo, 2021)
Considering Kotter’s change management model, the process of change within a company can go through 8 stages. According to the study by Laig and Abocejo (2021), the stages for change are establishing a sense of urgency, creating the guiding coalition, developing a change vision, communicating the vision, empowering action, generating short-term wins, never letting up and incorporating change into the culture. It is evident that there was an urgency to be focused on digital transformation for the company like Vodafone to positively deal with changed customer preferences (Correani et al. 2020). The organisation has taken initiative to establish a sense of urgency for the change in terms of holding its position in the market. Considering the second stage of Kotter’s change management model, it is observed that Vodafone ensured the support of organisational leaders and guided the digital transformation team.
Most importantly, in the digital transformation of Vodafone, the change agent was its digital transformation team that was responsible to drive the change (Correani et al. 2020). In addition, the digital transformation team was also responsible for ensuring that the transformation is aligned with the overall business strategy of Vodafone. The team is supported by strategic direction, organisational vision, and leadership while driving the change. The digital technology management team of Vodafone continued to identify further cost savings as well as opportunities for efficiency improvement (Vodafone, 2023). Moreover, Vodafone had committed teams of change management experts, who were responsible to control the transition process. The teams comprised organisational managers, change managers, communication specialists, and digitally savvy staff (Holienka et al. 2021). The change managers were responsible for observing the change process, ensuring that stakeholders were engaged, and spotting and addressing any potential risks to the change process. In addition, the strategic partnership of the company has also been helping it to foster innovation by providing a great focus on research and development (Vodafone, 2023).
Figure 3: Market capitalisation of Vodafone
(Source: Companies Market Cap, 2023)
The organisational managers of Vodafone have ensured clear communication with employees of every level of the organisation to encourage them to work efficiently to ensure the success of the change process. The company has ensured short-term wins, as in the figure 3, it is reflected that despite different fluctuations in early 2000 the organisation has ensured a significant market capitalisation (Companies Market Cap, 2023). Relating to this, the current market capitalisation of the company is $30.73 billion, which makes it the 564th most valuable organisation (Companies Market Cap, 2023). The organisation aims to ensure its business growth through continuous investment in digital technology incorporation to foster digital transformation and achieve long-term success.
In 2021, the CEO of Vodafone business, Vinod Kumar ensures that Vodafone has the “Fit for the future” (FFTF) mindset. According to the CEO, the organisation has a positive attitude to change and it is always open to incorporate new technologies (Vodafone, 2021). There was a great focus of the organisational management to create an activity plan for technology and it had a detailed strategy for digital transformation. The organisation has always been focused on coming up with emerging trends and a collaborative working culture supported the transformation. According to the report of Vodafone, approximately 89% of FFTF companies have a digital transformation roadmap (Vodafone, 2021). The report indicates that “Fit for the future” companies are in a significantly better place in order to accelerate digitally during the pandemic. Hence, it can be stated that even during the Covid-19 pandemic the organisation has been provided a significant focus on continuous improvement in its digital transformation initiative. Likewise, this is indicating that the organisation is determined to never let up, as observed to be beneficial, as per Kotter’s change management model.
The company effectively managed the change process by using different change management strategies, including communication, stakeholder involvement, training, and other techniques. In this way, the organisation ensured a positive organisational culture that is supportive of the change process. This is the reason that 71% of employees at the company are happy and satisfied, which also ensured their engagement rate at work (Refer to appendix) (Comparably, 2023). Active participation of employees in the change process as well as stakeholder engagement ensured the continuous improvement in its business activities to support change. The organisation has also transformed its global operating model by being digital “First” in order to deliver a fundamentally improved consumer experience that is powered by advanced technologies. On the other hand, through the new operating model, the organisation has also ensured the lowering of its cost base without compromising the improvement in customer experience (Vodafone, 2023). The organisation also continuously increases the utilisation of updated technologies such as AI (artificial intelligence) powered chatbot and TOBi to communicate with its consumers and assist them to solve queries as well as other issues (Vodafone, 2023).
The roles of the change management agent or the digital transformation team were crucial to Vodafone’s change process. The company has been capable to handle the change process effectively, with budget and service quality management. Despite having a great focus on continuous improvement, the organisation has been witnessing great market competition (Global Data, 2023). Hence, there is a great need for the company to enhance its focus on ensuring profitability by increasing its efficiency in terms of satisfying customers, as in this dynamic business environment market and customer preferences can change every now and then.
Justified recommendations
The current business environment is extremely dynamic and in order to sustain business in this environment and achieve success companies like Vodafone needs to be focused on continuous improvement, which would help them to ensure competitive advantages. Hence, considering the lessons learned from the change process, some justified recommendations are provided below for Vodafone to increase its efficiency in ensuring the outcome of change in the future –
Empowering employees through improved organisational culture
Risk-taking, creative, and experimental organisational culture is necessary for digital transformation. Hence, Vodafone needs to be focused on promoting an innovative culture by empowering staff to try new things, offering technologies and tools for innovation, and recognising accomplishments. Based on the ideas of Edgar Schein’s model of organisational culture, organisational culture plays a social role in influencing employees to solve issues in terms of external adaptation as well as internal integration. Organisational culture includes 3 levels such as artifacts, basic assumptions, and assumed values (Khripunov, 2023). Considering the idea of the basic assumptions, as per Edgar Schein’s model, it is observed that the values of employees can influence the organisational culture. Therefore, the organisation is recommended to focus on improving its organisational culture in a manner to increase communication and collaboration. This is because employees can feel valuable while they can share their valuable ideas, which in turn, can also ensure the company fosters innovation.
Ensuring employee engagement and performance improvement
In accordance with the study of Riyanto et al. (2021), employee motivation and job satisfaction play the most significant role in terms of improving employee performance as well as their engagement at work. Relating to this context, the ideas of Herzberg’s two-factor theory indicates that employee motivation depends on some hygiene as well as motivational factors (Siruri and Cheche, 2021). Job dissatisfaction among employees can be caused by the negligence of hygiene factors such as working conditions, salary organisational, policies as well as rules and relations with co-workers. On the contrary, job satisfaction can be ensured by motivating factors such as recognition, responsibility, growth opportunities, and others (Yousaf, 2020). Based on the ideas of this theory, it is recommended to Vodafone to be focused on both hygiene factors as well as motivational factors in order to motivate employees. In particular, the company is recommended to ensure positive working conditions where employee health and safety are the priority, providing proper salary, benefits, and compensation, and maintaining diversity, inclusion and equality at the workplace. This kind of initiative would help the organisation to ensure better management of employees that would increase the level of employee satisfaction, which would further increase employee engagement as well as performance.
Increasing focus on customers’ needs and satisfaction
Considering the ideas of the TQM (Total Quality Management) theory, it is observed that there is a significant cruciality in observing and making improvements in the overall management process. In accordance with the study of ANGGADINI et al. (2021), TQM emphasises the idea of continuous improvement. Considering this, the organisation should access its digital process as well as systems from time to time in order to identify the areas for improvement. By identifying the areas for improvement along with considering the market trends and the needs of customers, the organisation can ensure taking positive decisions. However, in order to emphasise TQM it is extremely crucial to use data for making informed decisions. Hence, the company needs to enhance its focus on gathering consumer data and using them for further performance improvement. In this way, the organisation can ensure customer satisfaction by improving customers’ experience.
Part 2 – Case study analysis
Reflection of your own leadership approach/skills
Presently, I possess some of the leadership skills like relationship building, innovation and creativity, employee motivation and critical thinking, which further needs to be polished to increase my efficiency level as a leader. Moreover, I strictly follow the transformational leadership approach where I tend to push boundaries to think and work in a new and collaborative manner. From the studies of Putra et al. (2020), I have learnt that skills of relationship building would help me to develop a sound team, which is essential for group work and aligns with my leadership approach. Although building relationship is a skill of mine, I still lack from the skill of open communication. I find myself not so collaborate at the vey moment when I am introduced to a new face or a team and it takes me time to maintain the flow of communication. In regards to the study of Moldoveanu and Narayandas (2019), I learnt that communication need to be fluent and transparent in a leaders so that they can bind the whole team together and walk on the same direction. Hence, lacking from open communication is one of the major loopholes, which I possess as leader. However, once I gain conform in a new team I tend to communicate more and try to motivate the team to achieve common goals. I always provide support and encourage my team members for providing the best performance in their work.
I also hold updated technological knowledge that further powerup my innovation and creativity skills. I also follow the innovation and creativity skills of Tim Cook, the CEO of Apple, even the leader follows transformational leadership. Due to the gap in my communication skill, I fail to make appropriate decision at a critical situation as I lack from confidence. I have faced the issues of decision-making while engaging team members. In reference to the study of Saputra (2019), I learnt that lack of skill in decision-making increases the issues of loss of time, agility, and loss of personality. Moreover, the skill of conflict management helps in controlling a critical situation that highly affects the business objectives and create issue in managing other team members. Thus, to improve my existing leadership kills and overcome my loopholes in leadership I would like to implement the ideas from Transformation Leadership Theory as it will help me in promoting of consistent vision, mission, and also set values to the members.
Recommendations for future leadership skills development
Improving my critical thinking skills
Considering the transformational leadership theory, leaders should be able to think critically in order to create a valuable as well as positive change, along with guiding followers to be focused on the achievement of goals (Busari et al. 2020). While working on Vodafone’s digital transformation, I observed that change agents can play a crucial role in making effective decisions in ensuring the effective outcome of an organisational change process, in which critical thinking is required. Based on this, I have realised the cruciality of critical thinking for a leader. I am planning to improve my critical thinking skills by practicing always having deeper research on any aspect before making any conclusion or decision. From now on, I do not believe everything that is told to me, before researching about that. I will be focused on researching and evaluating both sides of the issue before drawing a conclusion.
Improving my communication skills
Effective communication is one of the most significant skills for transformational leaders (Yue et al. 2019). Based on my experience of working on the case study of Vodafone’s digital transformation, I have realised that for change management agents as well as organisational leaders’ communication is key. Hence, I would practice active listening and choosing my words carefully. I would provide a significant focus on professional talking, along with considering human emotions and needs during communication.
Improving my decision-making skill
Decision-making skill is one of the most important skills for a leader to take the right decision in the right situation (Guo, 2020). I observed during the study that the lack of decision-making skills increases some difficulties that creativity in developing good leadership. For improving decision-making skills, I have to make a proper plan for taking any decision. I have to set deadlines for completing any task with a proper decision-making approach, on the other hand, I should involve in a brainstorming process that also enhances my decision-making as well as critical thinking power. Moreover, I can ask experts and learn from them regarding decision-making skills.
References
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Appendix: Employee satisfaction at Vodafone
