Change management “describes a structured approach to transitions from a present to a desired state, in individuals, teams, organizations and societies” (Wisped, 2006). The organization’s leadership must identify the challenges associated with implementing the changes and facilitate a smooth transition.
The following paragraphs examine some of the challenges faced by ajar organizations and detail their responses. Apple C] Andrea Goddard At Apple, it is the people within the organization, not the money or computers, which are innovative and keep Apple successful. As Steve Jobs, CEO of Apple says, “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it. ” (Eliminate, Para. 6, 2007).
Jobs understands the impact that employees have on an organization and has used this knowledge to guide the reparation. This charismatic and transformational leadership has helped Apple to achieve success and remain innovative. Being opinionated and visionary has not always led to success as Apple fired Jobs in 1985 for this behavior. It is this same behavior that led to his rehire in 1997 (anon. 2002). Jobs demonstrates how a leader can change things how things are done by developing a new and appealing vision of the future. This vision and mission set the stage for change and then the teams implement necessary changes.
Boeing D Dearer Locket Boeing has enjoyed enormous success in the field of aviation. The 737 Jumbo Jet actually accounts for more than forty percent of worldwide commercial jet sales. The entire airline industry suffered devastating losses from the 9/11 tragedy in the United States. Along the way, Boeing had to institute a great deal of change to handle cut-throat competition. In addition, an earthquake destroyed a major building at its manufacturing facility in Washington. By account of surveys, there was a big disconnect between aircraft designers and those that actually assemble the crafts.
Part of the response came as a direct result of the earthquake tragedy that at their manufacturing site. Office space was at a premium, so many of the designers were set up offices in the manufacturing plant (Price, 2004). This was a source of resistance as many of the white-collar workers considered their office jobs a badge of distinction. During the 90 days that the designers were in the plant, they were able to analyze the processes and tools to implement the design. What emerged was a revelation to both sides that things are completely different.
In fact, so many successful ideas flowed freely between designer and manufacturer that many did not want to leave the plant after alternative offices ad been set up. Like many large organization, Boeing suffered from vertical and horizontal communication problems. Some of the ideas instituted as response include: Open plan workspaces and common areas Communal cafes with mini-libraries and Whiteboard systems and lounge seating A wide boardwalk joining the factory and offices for impromptu meetings and discussions, emblematic of a more unified work force Productivity increased dramatically thanks to the communications changes.
Productivity increased by 50%, and the time it takes to build a 737 decreased from 24 days to 12. A simple facilities change grew into a great deal more as some engaging ideas, which was new communication between manufacturer and designer, flowed freely for 90 days. The result was changes to the entire organization. General Electric (GE) C] Tools for change management [l Sandra Welch General Electric (GE) understands the need for flexibility, constant change and innovation to succeed. GE has adopted cultural and developmental programs to help the organization foster the cultural change process.
In 1988, GE developed a Work-Out process that helped multidisciplinary teams to ensure that the each process teams were sing were the most efficient and comprehensive (GE, 2007). The strategy of the Work-Out team was to start evaluating the more obvious processes (“low hanging fruit”) that employees did not understand and/or did not make sense. The Work- Out program resulted in a more efficient process with many groups doing more work with fewer resources (GE, 2007). The Change Acceleration Process (CAP) is another program that GE has implemented in order to affect change for the organization.
CAP is a guide for employees to drive effective change and gives tools to the business teams that encourage dialogue. This process increases success and acceleration of organizational change efforts (GE, 2007). GE also uses other tools for employees to ensure quality process and effective change management like the Design for Six Sigma (DOFFS) training. DOFFS gives the framework for teams to refine and improve process so that employees and customers realize the best results (GE, 2007). GE also has an Experience Commercial Leadership Program, (CYCLE), which provides mentors for up-and- coming leaders for GE (GE, 2007).
Senior leaders within GE mentor other leaders in order to share their best practices and develop their skill. This program also allows people to take their experience and training to different levels and different parts of the organization to increase their skills (GE, 2007). This also gives leaders a variety of opportunity to explore different aspects of GE. Green Bay Packers- Vince Lombardi – Sandra Welch It was leadership in the face of adversity helped the Green Bay Packers realize success.
In 1958, the first year with the organization, Vince Lombardi leadership transformed the team that had only won one game the previous year to success within three years (bombardier. Com, n. D Lombardi “brought direction, enthusiasm, and the impetus to succeed. He has the remarkable ability to put people ahead of the organization, allowing each individual to do what he does best without losing sight of team goals. He gained a reputation for being tough, yet fair; uncompromising, yet supportive.
The individual qualities and character of Vince Lombardi are exciting to witness” (bombardier. Com, Para. 4, n. D. ). Strong leadership transforms organizations to succeed. Vince Lombardi said, “A leader must identify himself with the group, must back up the group, even at the risk of displeasing superiors. He must believe that the group wants from him a sense of approval. If this feeling prevails, production, discipline, morale will be high, and in return, you can demand the cooperation to promote the goals of the company. Lombardi was no less than charismatic leader that transformed the Green Bay Packers. Now Vince Lombardi Jar. Travels to organizations and groups around the world sharing the philosophies and encouragement of his father. The messages are clear, in order to affect change a leader must help build the teams, help them understand the goals and give them the tools to meet these goals. Integrity and authenticity were among the many character traits of Vince Lombardi and, in hose times of scandals like Enron, are in great demand by organizations and customers.
Lockheed Martin C] Dearer Locket Lockheed Martin had grown from modest beginnings to the world’s largest defense contractor. The growth continued, as Lockheed began to consume competitors. Some of the results (besides gaining new products) included a dilution of the pre-Fortune 500 heritage of the organization. According to Locoweed’s own studies, they experienced a 60 percent reduction in workforce (L. M. Dully & Co. 2006). Employee trust and confidence in management was extremely low according to an internal survey.
According to this same survey, some of the following challenges outlined: Day to day workplace communication was rated extremely poor by the majority Less than 20 percent believed senior management openly communicated with employees Less than 25 percent believed management had a clear vision of the company’s future. Inter-department/elementariness communication was extremely poor Upward communication was poor due to fear of retaliation. The fear of retaliation had gotten so bad that many employees decided to communicate to upper management indirectly via the formal media.
Lockheed Martin decided to institute a I-company culture throughout all of its departments and divisions. The first thing they instituted was a two-way communications initiative to better deliver the message from upper management on down and vice-versa. Once the team identified critical issues via the results from the survey, the team determined the root cause of the critical issues. The results are as face-to-face communication with top management, with the understanding that concerns are resolved.
Approved recommendations would then be instituted, tracked, and reviewed for progress at the company level. To better prepare the employees for hanged management, the company instituted the concepts of Lean and Six Sigma in the framework of the two-way communication initiative. They trained their experts (green and black belts), and included success stories from various parts of the organization. In 5 years, Lockheed Martin was able to attain a certified savings of 4 billion dollars. With weakling classes, they prepared over 5,000 of their new leaders.
By instituting the two-way communication initiative, they were able to deliver the company’s messages to a diverse audience. Lean and Six Sigma utilized the new and improved communication structure, and brought hanged to the entire organization. Microsoft D Andrea Goddard Microsoft recently released a commercial outlook of its software for robots. The company was hoping to revolutionize this market by providing tools that will make it easier to write robot applications. One issue, however, surfaced with the timing of this new product.
Production of this software happens during the holiday season when productivity is typically much lower than the rest of the year. As a result, Microsoft was unable to produce numbers that it had projected. Crystal, like Microsoft, has many new products, which it needs to release in a imply manner. Crystal can learn from the mistakes made by the software giant by understanding that technology within itself was only one part of the equation since the people that make up the company. Microsoft could not understand why their productivity was down but the plants were far from full capacity.
Once the company looked closely at the true causes of the shortages they soon realized it was due to the holidays and the vast numbers of employees who were off during this time of the year. Microsoft now looks closely at the timing of its new product roll outs to ensure there are no dates where the production acclivities will not be properly staffed to allow them to meet the stated projected goals. Ramada – Employee Satisfaction and Retention- Ron Huntington Crystal, like Ramada in the late sass, has finds itself in a precarious situation.
Ramada learned through a customer satisfaction survey, which published that the mid- tier hotel industry received very poor marks. While Armada’s numbers continued to look strong in this area, the senior leadership realized that they needed to act quickly or this phenomenon would soon spread to their own franchises. Crystal has a customer service dilemma of its own as it battles low morale and he urgent need to introduce multiple new products into the market. Without the hard work and support from a happy employee base, however, the plan may be doomed from the start and the future of the company grim at best.
Analyzing how other companies handled similar problems will help Crystal identify its own weaknesses and decide how to resolve its own employee morale and retention issues. Ramada faced with answering the question of how to improve its hiring, training, employee motivation processes, and the corporate culture as a whole. Other companies have also discovered that focusing on improving the corporate ultra can pay huge dividends in the long run. “At Great Plains, focusing attention on the culture has paid off by helping to keep employee turnover to just 6. Percent in 1997 compared with about 20 percent in the software industry at large. This saves money on recruitment and training and also helps preserve the company’s valuable intellectual capital” (Duffy, 1999). A special team developed to help the organization look at other successful companies and to determine the correct actions needed to improve in these key areas. The team decided to approach leaders in customer service such as Disney and Southwest Airlines to see what their formula of success was. The company also contacted Carlson Hospitality in an effort to learn how that business manages such a low employee turnover rate.
Ramada, however, did not stop with these simple inquiries as they decided that they needed a grass roots interaction with all 31,000 of its employees. (Cooper and Schneider, p. 749) The research team had six months to visit all 900 franchised locations and come up with employee and local management responses to the three main topics. Once this is accomplished, the hotel’s headquarters compiled all of the data and completed a thorough analysis that showed where weaknesses were in the hiring and training processes, and revealed how to truly motivate and keep its employees.
Ramada found the only sure way to run a top of the line organization and maintain a high customer service rating is to hire good people, train them well, and be able to retain them for a long time. WebTV 0 Managing Change while Retaining Employees- Ron Huntington Crystal is at an important crossroads for the company in that it must look to introduce new products and change its focus in order to grow as an organization and meet the demands of a changing market place.
WebTV was facing a similar dilemma of how to grow the business and redirect its focus to what the customer market wanted while trying to retain its core people, restructure the organization, and keeping the employee base at ease before it successfully re-structured itself. It was then bought by Microsoft and has flourished into a $100 million dollar branch of the software mega giant. WebTV was also very successful in retaining the vast majority of its employees and keeping its infrastructure during the changes. ‘One of the defining realities of the new economy has been that few things worked out the way people leaned.
In 1995, when WebTV Networks Inc. Made its debut, it was supposed to make TV a portal to the Internet. Six years later, that vision has yet to materialize. Instead, WebTV has undergone multiple reinventions as it seeks to determine the sweet spot between TV, the Web, and audience interactivity” (Dahl). The company handled its employee base well as it acknowledged the hardships, and struggles the company was facing while it was progressing through the constant changes. The leadership within Crystal needs to pull off a similar transformation if it wants the business to be around in the future.
While it is not in jeopardy of being bought out, Crystal can learn a significant lesson on how to handle employees during uncertain times from an established company such as WebTV. The leaders within the company remained very close to the employees and addressed the fears of the changes head on. They were open with communication and honest with the employees while telling them about the pros and cons of becoming a large company and why the business needed to change its focus and structure somewhat in order to survive and prosper.
WebTV set up a sound support system to address the concerns of its employees, which pet the workers feeling like they were a valued member of the organization. As a result of the way the leadership within WebTV handled the changes, the company quadrupled in size before being acquired by Microsoft, and most of the 200 people including the original founders of the company were retained and still work for the company today.
Leadership and Change Management at Crystal With the advent of the internet, a global economy and highly competitive industries Creates telecommunications needs constant change and enhancement to keep up with, and supersede the competition. This constant state of change s challenging for organizations so there is a need to ensure that people are receiving more positive forces (thrusters) for the changes than negative forces (resistors) (Kicking and Grittier, 2003). One way to tip the balance towards the positive is to focus on people-centered practices.
Studies indicate that people are more likely to want an organization that focuses on people-centered practices (Kicking and Grittier, 2003). People-centered practices have helped organizations realize higher profits and decrease employee turnover (Kicking and Grittier, 2003). As Crystal goes through changes, it will be important to remain people- entered and keep communication open, as WebTV has modeled through recent years. Another example, GE has demonstrated that a focus on people- centered practices has helped to realize international success.
Crystal can start by looking at departments that are communicating effectively to help other departments see what the team is doing well, and what the overall benefits of the communications have on the team. For example, open communication and a sense of empowerment is happening within the Technology department at Crystal. The team has sub-teams that are responsible for their own parts of the goals. By modeling this department, communication will increase and more teams will realize the positive results. Other forces that affect organization effectiveness are differentiation and integration.
Differentiation is the division of the organization into teams split by labor and technical specialization (Kicking and Grittier, 2003). Integration occurs when specialist within teams of the organization come together to achieve common goals (Kicking and Grittier, 2003). For Crystal balancing these organizational forces will be key for their success. There are signs of decline within Crystal. Signs of decline are a decline n the resource base like excess personnel and low morale (Kicking and Grittier, 2003).
The Sales and Delivery department has not realized success because the multi-team approach is unbalanced with many senior ranking officials (excess personnel) to report to and leaders do not coordinate efforts well (leading to low morale). One way for Crystal to address this concern is to restructure the department and decrease the number of people that employees and the teams need to report. Process and productivity are important facets of change management and can be a starting point for integration for teams to address as common goal.
Implementation of a Work-Out and/or Six Sigma type program, like that of GE and Lockheed Martin, where members of the specialized teams within Creates streamline and enhance the processes will increase empowerment and integration of the teams. A special team, like the one formed by Ramada, may also prove to be a way to focus on people and process. Overall, the results will be a refinement of processes and will increase performance and productivity of the organization and, therefore, increase the success of Crystal. Another important aspect of the organization will be the depth and skill of the leadership.
As Vince Lombardi demonstrated with the Green Bay Packers, strong leadership can transform an organization. Characteristics of successful leaders include trustworthy, dynamic, decisive and intelligent (Kicking and Grittier, 2003). Charismatic leaders add impact, results by being visionary, inspirational, and confident, and “leader expectations for follower self-sacrifice and for performance beyond the call of duty” (Kicking and Grittier, p. 614, 2003). This leadership affects the intrinsic motivation of people to create and inspire change.
While Lombardi was a charismatic leader, it is not always necessary for leaders to e charismatic to make positive changes for an organization and, in many cases; it takes more than being charismatic. If a charismatic leader is autocratic or does not give the tools necessary to bridge to a common vision, the organization will not have what it needs to manage changes effectively. Transactional leadership is a focus on interpersonal interactions to reward and/or correct behaviors in relationship to the goals of the organization (Kicking and Grittier, 2003).
Leadership at Crystal can use a combination of these leadership styles in order to help the organization grow and change. Apple’s Steve Jobs demonstrates ND then the implementation of the changes done by setting challenging goals for employees to complete (anonymous, 2002). For Crystal a clear vision that sets the tone and then a mission statement that motivates the teams will prove to be a step in the right direction. Then, with clear goals and the “how” to implement and drive the changes the organization will move to the next phase.
For Crystal, as with Apple, the need for innovation will continue and the teams will need to update the goals to encourage the teams. To realize continual success Crystal can further help the organization foster development of leaders with leadership orgasm. GE has demonstrated the effectiveness in building teams, leadership and focusing on people in order to help the corporation through necessary changes. GE uses leadership mentoring as a tool to increase leadership skills. Like GE, Crystal has found mentoring programs an effective tool to help foster leadership development and share best practices.
The Human Resource department within Crystal proactively counsels and motivates employees to help them with changes within the organization. A formal leadership development plan created by the HER department at Creates can be a catalyst for the organizations leadership development. Closing Crystal, like so many businesses today, is in a state of constant flux out of necessity and not due to choice. Today’s society quickly forgets products as new technology and services constantly changing.
Only those companies who can quickly adapt and re-invent themselves will be able to survive in the future. Transforming an organization’s vision or core product offering is never an easy transition, but it is a vital part of doing business today. While Crystal is facing many daunting challenges as it continues to develop and introduce new goods ND services to the market they can look at other successful companies such as GE, Lockheed Martin, and Ramada to help them navigate through the complex business world.
Utilizing the knowledge from other businesses, helps Crystal ensure that they will not make the same mistakes or else they will pay the price for making these mistakes.