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Understanding And Leading Change


In the complex business environment it is very essential for the organisations to understand the need of changes in the firm and adopt strategies accordingly. Change is an inevitable part of organisations. It is essential to analyse issues in the firm and adopt certain  changes which helps them to succeed in future time period. The chosen organisation in the report is AEGON. It is a life insurance, pensions and asset management company which is headquartered in Hague, Netherlands. The project will discuss about the different organisational examples where there has been impact of change on organisation's strategy and operations, internal and external drivers of change which affects leadership as well it also covers steps to minimise  negative effects of change. It also determines various leadership approaches which the company may use in dealing


P5 Apply different leadership approaches to deal with change

Leadership is an art of motivating individual or a group of persons who influences or guide other members within the workplace for achieving goals and objectives of organisation. Leader perform various functions such as communicating clear mission and vision within the employees and provide proper information and knowledge which help to perform business activities efficiently. There are various leadership approaches used by AEGON to deal with changes effectively which are described below-

Situational Leadership- It is an adaptive leadership style in which leader of the organisation adjust their  style in order to influence the followers to behave and work accordingly . In this, style of leadership may change continuously in order to meet the needs of organisation based on situation. In context to AEGON, management use situational approach to deal with change effectively. Such as in case of conflict between the employees within the organisation regarding change in business operation.  Leaders behave according to the situation and develop strategies to resolve issue at the earliest. In such issue, leaders and managers analyse the cause for the problem and develops various rules and regulations and implement them which leads to reduction of conflicts.

Democratic Leadership-  In this type of leadership style, leader involves their followers in decision making process. This makes the followers feel as an important part of the organisation and it also helps the leaders in successfully implementing the change. When employees are involved in taking decision regarding change in AEGON, it makes them analyse the importance of change which helps in successful implementation.

With the help of Lewin's change model, AEGON can implement the change effectively.

Lewin's change model- It is a 3 step model which provides framework to leaders to plan and implement strategies according to the situation. Description of the model is given below-

  • Unfreeze- In this leaders of AEGON, determines the need for change for performing business activities effectively. It ensures with the support of high management that change is required in the respective company and evaluate the issues related to change.
  • Change-In this step, leaders start implementing the change and communicates its employees about the change which leads to change in behaviour and process of working. Leaders plan and implements strategy by involving people and by providing them more information and knowledge about carrying their business operations and successfully implements the change.
  • Refreeze-In this step, AEGON managers develops the ways through which they can sustain change in the organisation and make sure that employees don't revert back to the old ways of performing work. In this step, leaders of respective organisation should ensure that changes are  properly implemented in the organisation and acceptable by all the employees.


From the above described report it has been analysed that leading change in the organisation is very important in order to sustain in this complex business environment. Managers and leaders of AEGON,  analyse and evaluate internal and external factors of changes  which directly impacts the leadership style and individuals within the organisation. Respective company has also taken some measures to minimise the negative impact of changes.  They have also used various leadership theories and models to overcome the problems in implementing changes which allows the company to increase their profitability and growth.

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