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Management Excellence – Managing Change

FIRST SLIDE (Managing Change)
 
 
EXPLANATION OF THE SLIDE
 
Interest             Over and over again we hear the charge ‘Things are changing faster than ever”. And our experience confirms it – changes in what we do, how we do it and who is involved leave us breathless and overwhelmed.
 
What is happening to colleagues caught in the middle of all these changes? Stress, poor morale, attitudes of non-commitment and reactance – colleagues everywhere feel that teams and empowerment are just so many words to justify more work for less pay. Yet the need for change is evident. Companies have to change their focus to survive – from the mass production models of the industrial revolution to complex information system in a global economy. We are overwhelmed and stressed, we want to go forward, but fear we are slipping back.
 
 
Need                 They say, “Change is the only constant in business…” without change there will be no growth.
Jumeirah recognizes the importance of change in one of our Guiding Principles

 
 
 
SECOND SLIDE (Guiding Principles)
Innovation
We are open minded, challenging conventional thinking, improving our processes and implementing new ideas faster than our competitors.
 
EXPLANATION OF THE SLIDE
But change must be managed correctly, or you can destroy what you have. Remember no person thinks exactly like another and by managing change effectively and by being an open-minded team player, we can make change successful.
 
Whether you are an executive, supervisor, coach, project team leader or manager of any type where your job is to manage people, you are likely to experience resistance to change from colleagues, which will make it more difficult for you as a manager to drive the change and to get commitment from your colleagues.
 
Managers often do not recognize the role that they can play in preventing that resistance and leading change. Most managers do not make this connection until they have personally experienced failure in an important change project.
 
Change and change programmes are, however, necessarily difficult and complex to manage, and even sometimes difficult to understand.
 
This programme will give you a good understanding of the basics to managing change.
 
 
Range               Today we will look at:
 

Change and the 21st Century
Reacting to, preparing for, or driving change
Change management core competencies
Change management models
And finally you will start thinking about an action plan for

implementing change in your department within a model framework.

The session will include some syndicate work.

 
 

THIRD SLIDE (Learning Outcomes)
By the end of this module you will be able to:

List reasons for managing change
Identify strategies to facilitate change successfully
List the steps of implementing change
Identify barriers to implementing change
Identify components of a change model
Manage the effects change has on individuals and teams

Successfully complete a change project
 
 
EXPLANATION OF THE SLIDE
 
Few people welcome change unreservedly and the process tends to be fraught with uncertainty and emotion. This module uses models of the change process to help explore the challenges and opportunities involved.
 
This module will help you to identify the three basic phases involved in any programme of change:

Preparation for change
Implementation of change
Consolidation of change

 
It will also help you to consider the most common reasons why people resist change and enable you to review some ways to overcome this resistance.
 
 
To begin, let’s look at Change and the 21st century…
 

FORTH SLIDE (Change and the 21st Century)
 
EXPLANATION OF THE SLIDE

 
Why do we change as persons?
What happens when we do not change?
Discuss
 
Change means making or becoming different, difference from previous state, substitution of one for another, variation.
 
The emphasis is on making something different. This could be a major change or something very small, as long as it makes a difference.
 

 
How important is change in an organisation?
Discuss
 
In an organisation change occurs when the balance between capability and challenge shifts and the status quo is disrupted.
Therefore, change in organizations is important to ensure they adapt to new challenges and to remain competitive.
Typical change situations are:

Merged companies/departments
Introduction of new technology
Introduction of new systems, procedures, practices and policies
Change in corporate structure
Increased levels of responsibility
Changes in duties
Increased levels of work or work pressure
Reductions in rewards, benefits, remuneration in real terms

 
 
FIFTH SLIDE (Change in Organizations)
Incremental Change

A process of evolution, rather than revolution
Seen as a continuum from the old state to the new
For example: changes of work methods or processes, new product launches, etc

Fundamental Change

A transformational metamorphosis
Resulting in a noticeable impact
For example: process re-engineering, mergers, acquisitions, disinvestment or the movement into completely different activities

 
 
EXPLANATION OF THE SLIDE

Incremental change

 
Is the act of increasing or changing in a series of small, often regular planned steps.
 
Incremental change is almost self-evident and covers the hundreds of situations that managers face throughout their careers. It includes changes of work methods and processes, factory layout, new product launches and other situations where most people would see continuity from the old state to the new.
 
Another example would be the change from manual recording of information (written) to electronic recording on computers. This change occurred incrementally through several steps. Each step is incremental, requiring skills training and capital outlay.
 
It is progress by evolution rather than revolution and although after a long period an observer would see a great difference between the organisation as it was and as it now is. This does not suggest that these changes are all easy to implement, nor that there will be no resistance to them.

 
What are some examples for Jumeirah?
 

Fundamental Change

 
Is of a greater nature and impact. It makes a noticeable impact on the organisation or that part of the organisation undergoing change.
 
Consider metamorphosis, for example, which requires a complete change of state and represents a severe shock to the status quo (in this case requiring a sleeping phase to cope with the change).
 
 
If it is successful, the difference will be noticeable inside and outside the organisation.
Such changes are usually large, dramatically affect the future operations of the organisation and frequently involve major upheaval.
 
In an organisation examples of major change could include:
The results of a business process re-engineering activity that alters the entire way in which a business operate.
 
A merger with another company, or the movement of the organisation into completely different activities.
 
25%+ reduction in staff – commonly this involves large-scale redundancies/closures/relocation
 

What are some examples for Jumeirah?
(ie Key Account Sales introduction in 2001, becoming part of Dubai Holding, rebranding from Jumeirah International to Jumeirah)

 
What influences and/or causes change in business?
 

New Competition
Price charges
Technology
Regulation
Consumer demand

 
Is change driven internally or externally?
Have a discussion here before following up with the next slide.
 
 
 
 
 
 
 

 
SIXTH SLIDE (Change Drivers)
 
 
 
EXPLANATION OF THE SLIDE
 
A globalised economy is creating both more hazards and more opportunities for everyone, forcing organisations to make dramatic improvements at a rapid pace, not only to compete and prosper, but also merely to survive.
 
Globalisation is being driven by a broad and powerful set of external forces:
 

Technological change

 

Changing markets (diversification of markets and products offered to expand business opportunities)

 

Market maturation (this is reached when demand and supply are equal and stable and there is no longer a dynamic market growth). For an organisation this implies that they now more than ever need to distinguish themselves from the competition to attract new customers and to retain customer loyalty.)

 

Economic Integration (dealing with other organizations to gain stronger market presence, ie. trade organizations)

 
Any of these may in turn lead to internal drivers (such as growth, mergers and acquisitions, new management and technological changes which may lead to reengineering and restructuring) that force change on an organisation.
 
 
 
Internally, change can be driven from top-down (CEO/GM initiative) or bottom-up (coming from front line colleagues) or start somewhere in between.
 
In your table groups, please discuss what effects these external and internal changes have on you and your colleagues personally. And what effect they have on Jumeirah.
Space for notes in workbooks on page 6/7.
Allow time for debrief and discussion.
ALTERNATIVELY, have an open discussion instead of group work.
 
A survey in 1999 (Buchanan, Claydon, Doyle) found that where change initiatives had been investigated people agreed that:
 

63% Felt fatigue
67% Felt that there had been so much change, with few benefits, that most people are cynical about benefits.
72% Were suffering from information overload
78% Felt that the fear of the unknown was a major cause of resistance to change…

 
 
Let’s look at some barriers to change.
 
 
 

SEVENTH SLIDE (Some Barriers to Change)

Employee resistance
Inappropriate culture
Poor communication/plan
Incomplete follow-up
Lack of management agreement on strategy
Insufficient skills

 
 
 
EXPLANATION OF THE SLIDE
 
A recent survey in the US (by William Schiemann and Associates Inc.) found that the biggest obstacles to change were:

Employee resistance
Inappropriate culture
Poor communication/plan
Incomplete follow-up
Lack of management agreement on strategy
Insufficient skills

Discuss through these points.
 
 
The above factors could lead to more barriers such as:
 

Unwillingness to compromise
Power imbalances
Not knowing what steps to follow
People not sticking to agreements
Fear of success (requiring repeats)

 
Where barriers exist, they must be negated, got round or climbed over. This means understanding the culture, readiness to change and the people.
 

Is change positive or negative?
Encourage a discussion here, what is positive about change? What is negative about it? Who is most likely to adapt better to change? What factors do you need to consider when you need to change?
 
People view change as positive when they believe it can be controlled.

 
Why does change need to be a positive experience?
To ensure that the people in an organisation are ready, able and willing to accept and implement change, and to regard it as an ongoing requirement to achieve future success.
 

 
So what then is ‘Change Management’?
In essence Change Management is the process of facilitating the move from the current state to the “vision” of the future. It involves a planning, implementing and consolidating stage, which we will look at in more detail.
 
 
 
8th SLIDE (Change Management)
Change Management is a continuous effort, not a project or a programme. It helps people move from the past to the future –  from a position of holding on to letting go.
 

 
EXPLANATION OF THE SLIDE
Change Management is a continuous effort, not a project or programme.
It helps people move from the past to the future – from a position of holding on to letting go.

 
 
 
 
Why is it important to manage change?
It will increase buy in and commitment from everyone involved, it will take away the insecurity and fear that some people feel towards change. It will support the change to be effective and lasting, effective change management also offers guidance and support for everyone involved.

 
What happens when change is not managed effectively?
Your team members may not commit to the idea or even oppose it, it will become difficult and lengthy to push change through in this environment, you may even end up not having been able to carry through the change.

 
Why is change not always managed effectively?
We may not have the necessary skills. We may not be convinced of the change itself. We may not realize how important our role is when managing change.

 
What skills and attitudes are needed for effective change management?
(park these skills and attitudes on a flipchart as we will get back to these skills throughout the module)
 
Attitudes:
Open mindedness
Proactivity
Seeing it as an opportunity rather than a threat
 
Not being afraid
Willingness to learn
Being visionary
 
Skills:
Open communication and transparency
Motivating and inspiring others
Listening
Team building
Encouragement
Involvement
Action planning
Creativity
 
 
It is essential that you are a positive role model for everyone else to follow. You may not always agree with the changes made or fully understand them, however, then you should be proactive in finding out
more about the change and reasons for it rather than oppose it and get your team to work against the change. We do not always know the full picture when decisions of change are being made.
 
 
 
9th SLIDE (Why does change fail?)

Allowing too much complacency
Not understanding the power of vision
Not communicating the vision
Allowing distractions
Not creating a sufficiently powerful change team
Declaring victory too soon

 
 

 
EXPLANATION OF THE SLIDE
 
There are eight main reasons for change to fail:
 

Allowing too much complacency

We underestimate how hard it is to drive people out of their comfort zones. We won’t recognize how our own actions can inadvertently reinforce the status quo.
Think about a frog in water, if you gradually heat it up the frog dies. If you throw it into hot water it jumps out immediately and survives.
 

Not understanding the need for a clear vision

 
What does this imply?
Vision plays a key role in producing useful change by helping to direct, align and inspire actions on the part of large numbers of people.
Without an appropriate vision, a transformation effort can easily dissolve into a list of confusing, incompatible and time-consuming projects that go in the wrong direction or nowhere at all.
 

Failing to clearly communicate the vision

Communication is essential to keep people informed and to start to create commitment.
Communication comes in both words and deeds. The latter is generally the most powerful form. Nothing undermines change more than behaviour by important individuals that is inconsistent with the verbal communication. And yet, this happens all the time, even in some well-regarded companies.
 
 

Allowing distractions

 
What can distract us from the overall vision?
What effect does this have?
If we do not keep the overall vision in mind, it can easily happen that we are side tracked from it. We may loose focus and then concentrate our energy on other areas. This may prevent us from reaching where
 
we wanted to go or cost a lot of unnecessary time and energy before reaching our goal.
Also consider the de-motivating effect it has on those around who once they buy into the change and then get disappointed.
 

Not creating a sufficiently powerful change team

It is important to get some strong back up when you try to implement change, this will help you to get some support when you need it. It is difficult to bring about change when you do not have any support.
 

Declaring victory too soon

 
What is the effect?
How do you know when your change is successful and completed?
While celebrating a win is fine, any suggestion that the job is mostly done is generally a terrible mistake. Until changes sink down deeply into the culture, when it is “the way we do things around here”, which for an entire company can take years, new approaches are fragile and subject to regression as we will also discuss later.
If we get complacent with a change too quickly, we may not see the signs of regression, when people fall back into their old habits.
 

 
Which of those 6 reasons can you link directly back to the skills and attitudes of effectively managing change?
Managing change is not easy, and therefore requires a process to assist in the management. This is what Change Management is all about.
 
Successful change management is about taking your colleagues with you. Unless the people in an organisation – at all levels from senior management to operational colleagues are committed to the change then it will fail. This is not an option and without this commitment any project is doomed for failure.
 
 
 
Slowing down the new initiatives, creating unnecessary resistance, frustrating employees endlessly and sometimes completely stifling needed change could cause an organisation to fail to offer the products or serviced people want at prices they can afford.
 
 
Managing change can usually be divided into 3 stages:
 
 
 
 
 
10th SLIDE (Kotter’s – Eight Steps of Change)
 
 
 
 

 
EXPLANATION OF THE SLIDE
 
This is not necessary a linear process, where one steps takes place after another, some of the steps may occur simultaneously or even reoccur.
 
The first phase is the planning stage, where you create the climate for change
 
Step 1 – Increase Urgency

 
What does this imply?
Raising a feeling of urgency is the first and most critical step in a successful change effort. Reports and spreadsheets are not enough; you need to demonstrate actions that make people realize the need for change.

 
What would the desired outcome be?
People start telling each other, “Let’s go, we need to change things!”
It creates more buy in and commitment to the change if people understand the reasons and the urgency behind it.
 
Activities:

Highlight performance gaps.
Obtain evidence from customers and stakeholders that change is

needed.

Bombard with future opportunities and rewards.
Reduce complacency.
Set stretch goals.

 
What works:
Create dramatic presentations with compelling objects that people can actually see, touch, and feel; provide evidence from outside the
 
 
organisation that change is required; find cheap and easy ways to reduce complacency
 

Step 2 – Build change agents
 
What are change agents?
People who are committed and enthusiastic about the change.
 
In the past, change was smaller in size and moved slowly. Today, a single individual cannot effectively handle large scale, fast-paced change alone.
 
It is important to get the right people in place who are fully committed to the change initiative, well-respected within the organisation, and have power and influence to drive the change effort at their levels.
 
Activities:

Find the key change champions.

Clarify program goals and critical success factors.
Define measurements for key milestones and progress.
Display enthusiasm and commitment.
Model the trust and teamwork needed.
Integrate with other teams and initiatives

 
What Works:
Attract key change leaders by showing enthusiasm and commitment; model the trust and teamwork needed in the group; structure meeting formats that minimize frustration and increase trust
 
Step 3 – Get the right vision
 
Step 3 is all about demonstrating how to provide a relevant vision, and making it work for your change effort.
 
People often have the mistaken perception that a vision is not related to business realities, and is a waste of time. While creating a shared need and urgency for change may push people into action, it is the vision that will steer them into the new direction.
 
Activities:

Paint a clear picture of the future state.
A vision that can be articulated in one minute or written up on one

page.
 
 

Describe bold strategies that can be executed quickly enough to

make the vision a reality.

Point to specific areas that need to change.
Appeal to the long-term interests of all stakeholders.

 
What Works:
Literally seeing/visualizing possible futures; visions that are moving; visions that are so clear they can be articulated in one minute or written up on one page; bold strategies that can be executed quickly enough to make the vision a reality.
 
 
The second phase is the implementation stage where you engage and enable the whole organisation:
 

Step 4 – Communicate for Buy-in
 
Who do you want to ‘buy-in’?
All stakeholders, everybody involved: both internal and external.

 
What’s the challenge at this stage?
People begin to see some changes and amend their behaviour accordingly. This could be positively or negatively. In communicating and creating buy in you can overcome resistance and ensure that colleagues develop the correct and necessary behaviour to support the change.
 
Sending clear, credible, and heartfelt messages about the direction of change establishes genuine gut-level buy-in, which sets the stage for the following step: getting people to act.
 
It’s important that this step should be revisited throughout the change effort. In Kotter’s experience, this is probably the most important step in the entire process.
 
Activities:

Cascade messages.

Link all messages to the vision.
Use metaphors and analogies to describe strategic direction.
Keep communication simple and heartfelt.
Talk to stakeholders and find out what they’re feeling.
Discuss anxieties, confusion, anger and distrust.
Align leadership actions to communications

 
 
What Works:
Keep communication simple and heartfelt; find out what people are really feeling and speak to anxieties, confusion, anger and distrust; rid communication channels of junk so important messages can get through; use new technologies to help people see the vision
 
Step 5 – Empower Action

 
What does this mean with regards to the Change process?
Assigning responsibilities to colleagues, allocate tasks to support the change and decide who should execute which step and enable them to act upon it. Check with the colleagues to ensure that they can handle the allocated steps and to gain their commitment.
This should inspire, promote optimism and build confidence around the change effort.
Activities:

Change systems that contradict new vision.
Define and train stakeholders for new skills.
Deal with and resolve individual resistance.
Create recognition and reward systems that inspire, promote,

optimism, and build self-confidence.

Give constructive feedback.

 
What Works:
Allocate clear roles and responsibilities, train colleagues in the upgraded skills set required, monitor progress. Consult rather than direct.
 

Step 6 – Create Short term wins
 
Why is this important?
Short-term wins nourish faith in the change effort, emotionally reward the hard workers, keep the critics at bay, and build momentum.
 
 
By creating short-term wins, and being honest with feedback, progress is achieved and people are inspired.
 
The challenge, therefore, is to produce enough short-term wins fast enough to energize the change helpers, enlighten the pessimists, defuse the cynics, and build momentum for the effort.
 
 
 
Activities:

Plan visible performance improvements.
Solve small problems dear to the heart of people to boost morale.
Seek consistent results (every few months).
Communicate wins visibly.

 
What Works:
“Cheap and easy” wins that are visible, timely, unambiguous, and meaningful to others
 
 
The last phase is the consolidation change where you implement and sustain change to last:
 
Step 7 – Don’t let up
 
Some change initiatives take months, possibly years, to complete, so it’s important to remember that you’re not done until the change has been entrenched in the very fiber of the organisation.
 
So the challenge is to continue with wave after wave of change, not stopping until the vision is a reality-no matter how big the obstacles.
 
In successful change processes, people build on this momentum to make the vision a reality by keeping urgency up, and a feeling of false pride down; by eliminating unnecessary, exhausting work and by not declaring victory prematurely.
 
Activities:

Create the supporting organisational infrastructure.
Transition resources and use opportunities to launch the next wave

of change.

Eliminate or delegate non-priority work.
Sustain leadership involvement.
Show people powerful reasons to keep urgency up.

 
What Works:
Eliminate or delegate non-priority work; show people powerful reasons to keep urgency up; use new situations opportunistically to launch the next wave of change
 

Step 8 – Make it stick
 
What does this imply?
Anchor the change, monitor and evaluate.
To ensure that the change is permanent – that it sticks and becomes part of ‘the way we do things around here’.
 
By creating a new, supportive, and sufficiently strong organisational culture, the change should remain. A supportive culture provides roots for the new ways of operating.
 
Activities:

Achieve tangible results quickly.
But do not declare victory too soon.
Tie results to new behaviours.
Support sustained performance of systems,   infrastructures and

informal processes.

Reinforce the vision.

 
What Works:
Refuse to declare victory too soon; use new employee orientation, the promotions process, and vivid stories to visibly and compellingly reinforce the vision.
 
Kotter suggests that all of the steps in the process must be taken to effect permanent change. The order in which they are done is not critical.
 
However, doing all is essential.
 
Step 4 (communicating change) and step 8 (transforming culture) are the most significant. Change can’t happen without effective communication and won’t be permanent without acceptance into the culture of the firm.
 
Individual exercise or in work groups:
Think of a change that you would like to implement in your workplace or a change that comes from above and you need to implement.
Go through the 3 stages of change also involving Kotter’s 8 steps and list down activities that you will do in each stage. Also work on an approximate timeline by then you will start all these actions.
You have space in your workbooks on page 23
 
 
Encourage some participants to share their plans to commit to action.
 
 
11th SLIDE (The Change Cycle)
 

 
 
 
 
EXPLANATION OF THE SLIDE
 
Stage 1 – Precontemplation
A person in this stage may say “they can’t make me learn that programme”, “I have seniority, I’ll be here forever”, or “Other companies have implemented this, but we never will”. Precontemplation is denial or unawareness of the need for change. There may be rumours floating about the big move or downsizing, but the individual in the precontemplation stage denies, ignores or avoids the information.
 
Stage 2 – Contemplation
In the contemplation stage, the individual considers the information and begins to think about it. “Some day I suppose I’ll have to learn that programme…” or “Perhaps I’ll have to take a class…” or “I suppose our company will have to change its process…”. Like the government, which seems to be in a perpetual contemplation phase, a contemplator will say “Some day we’ll have to do something about inefficiency and waste”. In this stage, commitment to change increases and ambivalence decreases until a decision is made and the next stage begins.
 
Stage 3 – Determination
The person has decided to change and begins to make plans and envision the future. The person begins time management strategies, scheduling, training, and other ‘preaction’ activities in preparation for the change.
 
Stage 4 – Action
In this stage, the individual is actually performing, practicing, or executing the change. For example, the person might be using the new programme, or new teams have been formed and are meeting, or the new marketing plan is in effect.
 
Stage 5 – Maintenance
The change won’t really feel comfortable or ‘natural’ for a period of months, or even years. Individuals need to go through a period of Maintenance in which new skills may be needed to manage a new way of behaving and to handle old habits that begin to creep back. The change cycle may end here, or may go to the next step.
 
Stage 6 – Recycling
Finally, but not necessarily, there may be relapse or Recycling. Perhaps there was not enough support from upper management, perhaps it was a halfhearted implementation, or perhaps the training
was inadequate. For whatever reason, the individual slips back and goes through the cycle again as in “I’ve quit smoking…..10 times!”
 
The 6 steps must be gone through in succession. Too fast a progression will hinder the process.
Remember that real change takes time and commitment!
 
 
 

What actions can you take in each of those stages to effectively manage the change cycle and help your colleagues to move on to the next stage? What skills and attitudes of change management do you need for each stage? (refer back to flipchart exercise at the beginning)
Have an open discussion here or allocate different stages groups to discuss and present back if you have enough time.
Stage 1 – help them to see the need for change, give them the needed information. Do not insist on the change at this point as this will cause resistance. Speak to them about why the change is necessary, what benefits it will have, the effects it will cause when there is no change. Give them the clear facts of the situation. Increase the trust level and approach the need for change in a matter of fact way. Let people know that they have a choice – no matter how limited that choice may be.
Corresponds with Planning stage in the change model.
 
Stage 2 – Recognition begins to dawn and colleagues will need someone to listen to their ambivalence and to reinforce their motivation. Listen to their concerns, fears and analyse the pros and cons with them. Keep motivation levels up.
Corresponds with Planning stage in the change model.
 
Stage 3 – While they envision the future, colleagues need to b be listened to and supported. Don’t tell them how to proceed but let them construct their own plans and make their own choices. Choices made by the employee are motivating. Help them to solve problems and resolve difficulties before they actually arise by envisioning the future change. “what changes do you see in how you spend your day?” or “how do you see the new technology affecting our interaction with our guests”, “what problems do you think you will encounter”
Corresponds with Implementation stage in the change model.
 
Stage 4 – the individuals may need very little support especially if the previous stages have been thorough. Occasional “how is it going” check ups and short discussions of problem solving will be all that are needed.
Corresponds with Implementation stage in the change model.
 
Stage 5 – Maintenance is critical. Remember that previously we said one of the main reasons that change fails is when we proclaim victory too soon and the change is not yet anchored in our organizational
culture ‘the way we do things around here’. It takes a long time to truly change behaviour and the care and nurturing of a new behaviour can make the difference between success and relapse. Continue trainings
 
 
in ‘soft skills’ that will help colleagues to deal with the changes, this could give them new tools and new ways to look at situations.
Corresponds with Consolidation stage in the change model.
 
Stage 6 – When a relapse occurs, people need to examine their commitment. Where on the cycle are they now? Probably back at contemplation – I know I should but….. Excuses and delaying tactics appear again. People in this stage need more listening, perhaps some skill-building and help with resolving their ambivalence. It is not uncommon for people to recycle many times. The Change Cycle can be though of as a spiral rather than a circle. Each time you go around, the trip is shorter, your ambivalence decreases, your commitment increases, and you will reach the goal.
Corresponds with Consolidation stage in the change model.
 


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