BSBINN601 Lead and Manage Organisational Change

Review Bounce Fitness’ operational performance

Every centre of Bounce Fitness sells memberships to 120%. This implies that during peak periods it can be crowded, however, experience shows that there is a maximum of 80% use. The retail segment of the business makes up for nearly 30% of the takings from every centre. The fitness company recorded normal growth in 2016 and did not experience aggressive expansion rate. The organization did benefit from the rising demand for fitness in the country (Bounce Fitness. 2017).

Review relevant policies and procedures

Quality policy

The gym uses standard quality control procedures and practices from leading health organizations. Key to ensuring quality control in its operations is to ensure that all the equipment and machines used in the gym are working properly, safe and clean. There are hand sanitizers and wipes available for the members to wipe their handles before using any machine (Bounce Fitness. 2017).

All the employees at the gym are required to have a service calendar which alerts them about the dates on which every piece of equipment should be serviced. At the end of every day, an employee walks-through to examine every equipment for damage and to ensure that everything is functioning effectively (Bounce Fitness. 2017).

WHS  policy

Gym Equipment:

· Periodic maintenance of equipment

· Periodic in-house and external inspections

· Not using obsolete and old equipment (Bounce Fitness. 2017)

Supervision of Users

· The gyms are manned for all operational hours

· Staff training

· User special needs for e.g. disabilities are identified

User Injury

· Induction scheme available

· Emergency response (Bounce Fitness. 2017)

· First-aid facilities available

Access

· No unauthorized access

· Swipe card entry only

· Manned reception (Bounce Fitness. 2017)

Exercise sessions

· Class size is restricted

· All trainers are highly qualified and skilled

· Close supervision by trainers

· Strict criteria for hiring trainers (Bounce Fitness. 2017)

Continuous improvement  policy

The continuous improvement policy of Bounce Fitness involves adopting Business Process Management tools to automate its business processes and obtain higher administrative control. The company uses the PDCA model for continuous improvement. This way it plans, executes, analyses and acts to avoid errors. It employs the PDCA method to enhance the management level via the effective control of activities and processes. With PDCA, the information gets standardized and probability of error during decision making is minimized (Bounce Fitness. 2017).

1.3.4

Customer service policy

Bounce Fitness has underpinned its success on offering remarkable customer service. So, to ensure the provision of excellent service to customers, the company makes sure that the products and equipment listed on the promotional brochures and website are in place. Moreover, there is a very professional environment inside the gym. All the employees wear their assigned uniforms and all employees are familiar with the members visiting the gym. This way, members are comfortable while training. All employees also wear their name tags so if members want specific help from a manager/trainer, they can approach them easily. The communication lines are always open and the employees are properly trained on how to handle customer queries and complaints in a professional manner. The gym sends birthday cards, welcome letters, congratulatory messages to its members on their special occasions (Bounce Fitness. 2017).   

1.3.5

Employee Assistance Programme policy

Bounce Fitness has an Employee Assistance Program in place which provides confidential and free evaluations, referrals, short-term counselling and follow-up services to its employees who are facing professional or personal problems. EAP counsellors also collaborate with supervisors and managers to deal with employee and company needs and challenges (Bounce Fitness. 2017).

1.3.6

Personal development policy

This policy in the organization is applicable to all temporary and permanent employees. Employees who are not short-term contracts may become part of training sessions at their supervisor’s discretion. This policy does not encompass supplementary employees such as consultants or contractors. Training and development programs include:

· Formal trainings

· Employee mentoring and coaching

· On-the-job training

· Job rotation

· Job shadowing (Bounce Fitness. 2017)

· Participation in conferences

1.4

Consider any patterns or trends that may impact the fitness industry (use a Fitness Australian’s published reports to support your discussions)

1.4.1

Past and project growth in the number of fitness instructors

When the company was first started in 2001, it was a single aerobic studio. There were only two instructors at that time. When a second centre was opened in 2004, the number of fitness instructors was 6. Currently there are a total of 150 instructors in whole Australia. Given the rate of expansion, the projected growth in number of fitness instructors is expected to be 50% in coming two years (Bounce Fitness. 2017).

1.4.2

The number of fitness instructors in the respective Australian states

The bounce fitness gyms are located in Sydney, Cairns, Brisbane and Melbourne in Australia. Cairns has the highest number of instructors i.e. 50. Brisbane follows closely at 38 instructors across different facilities. Sydney has 33 instructors while Melbourne has 29 (Bounce Fitness. 2017).

1.4.3

The qualifications of the fitness instructors

To become a Bounce fitness instructor, individuals are required to have elite fitness ability and a qualification as a Personal Trainer or Fitness Instructor and ideally an experience in gymnastics or dance. They must have a Certificate III or IV in fitness. All its employees are also trained in First Aid and CPR (Jason et al., 2017).

1.4.4

The fitness instructors’ level of experience in the industry

The average experience of a fitness instructor in the Australian industry is 4 years.

1.4.5

The nature of employment of fitness instructors

One third of the fitness instructors are employed on casual basis. Only 20% have full-time employment (Andreasson and Johansson, 2014).

1.5

Consider any external environment factors that may impact the Australian fitness industry.

1.5.1

Political/ legislation issues affecting the way fitness industry operates/ compliant to new regulations

The degree of regulation is light in the Australian fitness industry. The companies only need to abide by the fair-trading rules, health and safety norms, have personal indemnity insurance and public liability insurance. Plus, the trainers have to qualified certificate 3 or 4 in fitness.

Assistance from the government is law, there are merely initial amenities to access, however, the trend in rising as greater government grants would be assigned to this sector (Mercer, 2015).

1.5.2

Economic issues affecting the way consumers spend in the personal fitness and health/ competitive pressures

· Lower per capital income

· Higher interest rate

· Industry growth is expected to be high with customer confidence returning (Deloitte. 2012)

1.53

Social expectation issues affecting the way consumers relate to personal health/ wellbeing/ knowledge and understanding of personal fitness

· Interest in fitness and exercise as a way of better health is increasing. This implies more people are likely to join a fitness centre to stay fit

· Rising rate of obesity

· Ageing population – Majority of the population is ageing which may mean lower demand on their part and among the young people many are not able to afford the membership fee (Fast, 2011).

1.5.4

Technological advancement issues affecting the fitness industry/ alternative personal fitness convenience

· Advancement in equipment used in gym allows consumers to stream music, browse internet, monitor heart rate, watch TV and many other facilities.

1.6

Identify what are major operational change requirements on the following;

1.6.1

Performance gaps

· Ineffective relations between management and trainers

· Challenges of over-scheduling

· Inability to function on a high-volume business framework

· Cost of attracting bigger corporate client

· Employee skills are not source of competitive advantage

· High cost of customized personal service

1.6.2

Business opportunities

· Participating in a growing market

· The great rise in client base which follows with the acceptance of Bounce Fitness’s programs by a single organization

· The potential to capitalize on future quantitative assessment which promotes the belief that long-run wellness programs have a considerable, positive effect on the bottom line of a company (Mercer, 2015).

1.6.3

Business threats

· It is not immune to financial crisis

· Potential rivalry from bigger, well-established companies

· A change in lifestyle wherein people start taking greater responsibility for their health maintenance.

· Lower per capita income will lead to reduction in demand (Deloitte. 2012)

1.6.4

Management decisions

Management decisions would be regarding improvement of services to clients, reduction in unnecessary costs and improved relations between management and trainers.

1.6.5

Bounce Fitness’ need for change

Bounce Fitness needs to incorporate the use of technology to enhance its customer service as well as record keeping. It’s current record-keeping and operation system is tedious and slow. Trainers have to leave their sessions to attend potential clients and record their data. This causes unwarranted delays for existing clients who have to wait for their trainers to return. Resultantly, work scheduling and customer satisfaction gets affected. Also, trainers and the management relationship ought to improve.

1.0 
Discuss in consultation with Bounce Fitness’ stakeholders to review and prioritize change requirements to support its business objectives.

Bounce Fitness Management Meeting