Transformational change within an organisation can be challenging to achieve successfully, and the role of managers or team leaders is critically important. Managers lead the change process, and it is their responsibility to bring their team members along in accepting and welcoming the change. In particular, SBL managers as team leaders should communicate the reasons for the change, such as reduction in profit before tax for the past three years down by 16% and 2020 down by 40% over 2019. Reduction in profit before tax is a sustainability challenge that can be a reason for a change in the current business operating model. This would also ensure the team members’ trust so that they are willing to believe and accept what the team leader says and follow where the team leader takes them. It is also important that SBL allow team members to participate in the planning and implementation of the change.

The Gemini 4Rs model was introduced by Gemini Consultants to support managers such as SBL directors when dealing with transformational change. The 4Rs elements are:

1. Re-frame:
   • Create the desire for change, for example, reduction in sales by 30% over the last three years with 2020 performance reduced by 14.28% over 2019.
   • Create a vision of what the entity is trying to achieve, such as SBL’s vision to be a leading pharmaceutical company in Ghana and become a significant global player by providing high-quality, affordable, and innovative solutions in medicine and treatment.
   • Create a measurement system to set targets for change. For example, the optimal plant operational level should be satisfactory to the market and management to ensure adequate, timely, and quality supply of products.
   • Measure performance by clearly defining the target market share of each division of manufacturing, retailing & distribution, and export to allow for actual performance against the target by SBL.
2. Re-structure:
   • Examine the organisation’s structure and create an economic model showing how value can be created by the entity and where resources should be used.
   • Re-design the processes so that they work better to create more value. For example, SBL needs to review staff deployment as part of restructuring.
3. Revitalise:
   • Commit to the future by funding new products and new markets that fit well with the entity’s environment, such as a clear strategy to expand its footprint in Africa.
   • Inventing new businesses should be the responsibility of all directors, not just the Director of Overseas Operations or Manufacturing & Commercial Director.
   • Change the rule of competition by making use of new technology, including digital opportunities.
4. Renew:
   • Develop individuals within the organisation beyond the directors’ level. Ensure employees have the skills that are required and that they support the change process.
   • Create a reward system to motivate individuals to seek change.
   • Develop individual learning and creativity within the organisation, to be spearheaded by the Human Resources Director, including organisational development at SBL.

Transformational change: 2 marks
Explanation of the 4Rs elements: 2 marks for each element, totalling 10 marks