Hewlett Packard
Create a sense of urgency.
The case study shows that the Carly Fiorina the C.E.O was unable to create a sense of urgency. Dr. Kotter has listed this step at the top of his change strategy. He emphasizes that a number of companies that initiate a change process, underestimate the importance of this step. It seems like Fiorina too underestimated the need to create a sense of urgency. She seemed completely aware of the consequences if the merger does not take place. But she could not make realize, the staff of the company, how essential it is to initiate this change and what results will it bring out to the company. Even if the efforts were made to create awareness among staff, this was not of sufficient level. (Kotter, 2008)
Ramification: Strong resistance from both the Directors and the staff.
Recommendation: Before initiating the change process Fiona should have launched a wide campaign inside the company to create awareness among the staff regarding the change needed. This way not only she had faced less resistance but would have also found support from within the company.
Generating Short Term Wins
Fiorina was also unable to make short-term wins. Although the merger got along successfully, the board and the staff was not aware of the potential outcomes that the merger could have achieved. The first success came after seven years. However, it was too late to be enjoyed.
Ramification: Majority of the company could not digest and move along with the change.
Recommendation: Fiona should have set short-term wins that depicted that the change made is beneficial for the company. These short term wins had put a new energy in the company to move along with the change.
Developing a change vision
Fiona could not create a change vision. Alternatively, even it was, it could not effectively be conveyed to the company management.
Ramification: The management did not actively participate in the change process.
Recommendation: The company-wide campaign suggested in the first step should have clearly envisioned the results of the change. This would have helped her to win support within the company.
Change Image: Carly Fiorina: The Nurturer, This is because she actually initiated the change process but was unable to ripe the fruits of the change.
Recommended Strategy: An effective awareness campaign should have initiated before the change process inside and outside of the company. This would have created support and enthusiasm from all stakeholders, and the process would have moved on smoothly.
IBM
Creating a sense of Urgency
David Grossman realized the power that the internet would have on the daily life of the people. He should have conveyed his ideas to the board and would have made them understand the need to win the battle of World Wide Web.
Ramification: The process of change was slow due to underground efforts.
Recommendation: The efforts that were carried out to make an underground community, same should have also been carried out to attract management and make them a part of the change process. This would have accelerated the change process.
Creating the guiding coalition
Although, David Grossman and John Patrick, made a coalition towards their manifesto of World Wide Web. The coalition lacked executive power. According to Kotter, it is important to have position power, so hurdles and blockades are easier to manage.
Ramification: The change process took a considerable time to occur.
Recommendation: David Grossman and John Patrick should have consulted their vision to the board. An executive committee should have been formed to address the issue and bring about the change. (Gallagher and Parkin, 2006)
Don’t let up
Samuel Palmisano, the C.E.O of IBM, had been successful at bringing the change. However, the process should not stop or end here. The leadership role is very important here as he has to take the task to root the change in the culture of the company.
Ramification: The change process could hurt, or positive results could reverse.
Recommendation: A detailed analysis of the change process should be done by aligning success to various factions of the company. More projects should be added along with empowering employees and reducing interdependency between functional areas.
Change Image: David Grossman: The director: He had a vision and carried on to it.
John Patrick: The interpreter: He interpreted the ideas to the management and the community
Samuel Palmisano: The Navigator: He led the company to success.
Recommended Strategy: Grossman and Patrick were successful at creating a community that worked for a change, but same efforts were required for the higher management. This would have caused the change process to continue more robustly and efficiently.
Kodak
Developing a change vision
No matter how effective communication or team building is done, the workers who have to leave their job cannot be satisfied by anything else. The main component is to attract the investors to fund a new digital venture. A broad vision that clearly signifies what can be achieved if the change is incorporated and how this will benefit the interest of stakeholders is crucial in bringing a change. (Kotter and Cohen, 2002)
Ramification: Without a clear vision, the investors would be reluctant to continue their investment with Kodak
Recommendation: A detailed strategy need to be created that shows achievable results. It is important that goals are achievable and not merely pipe dreams as stakeholder’s confidence is already shaken.
Communicating the vision for Buy-in
Without effective communication, the change process cannot go smoothly. The change process is not effectively being communicated to the main stakeholders that are the consumers. The market is already captured by giants like Hewlett Packard and Canon Inc. without effectively communicating the change to stakeholders and consumers the effects of change would not be apparent.
Ramification: Market has less confidence in the change process, and it believes that this could also prove to be like previous failed venture by Kodak.
Recommendation: The vision needs to be communicated to consumers and stakeholders such as Investors and media. This could be done by an effective advertising campaign that also describes the short term goals that have been achieved until now.
Empowering Broad Based action
The steps being taken by Kodak are so radical that without effectively removing the barriers the change process cannot take place. The intense reaction from within the company due to layoffs and restructuring will become the largest hurdle in the process of change.
Ramification: The Company cannot take the change measures effectively. (Tsoukas and Chia, 2002)
Recommendation: A detailed analysis Is required that define the causes of hurdles and barriers. These barriers then need to be removed, whether the hurdles are from employees or top management. The change process is crucial for the survival of the company.
Change Image: David A Carp: Nurturer: He actually initiated the change process.
Antonio Perez: Caretaker: He carried on with the policies of Carp.
Recommended Strategy: Clear objectives need to be set out and then effectively communicated to those whom these may concern. Short-term goals should be set, so it is easier to calculate how effectively the change process is going.
McDonald
Communicating the vision for Buy-in
Ramification: Customers, specifically women are hesitant to try mc Donald food due the fear of obesity. (Polman et al., 2005)
Recommendation: McDonald should launch a campaign that defines that its food is not only delicious, but healthy too. Certifications from health institute may also be obtained and presented as proof.
Don’t let up
If the change is going smoothly and the objectives are being achieved it is important not to stop but produce more results and initiate new projects. The consequences of Letting up my not only negatively affect the change process but may also hinder it.
Ramification: The change process may reverse, or positive effects may start to fade.
Recommendation: Introduction of more diet based food could be initiated, so the change process does not halt and resistance from within the organization may not stop it.
Make it Stick
The new change process needs to become the culture of the firm and worldwide; the result producing strategies need to be adopted.
Ramification: The resisting forces will dominate If the new change which is healthier for consumers does not become a culture of the company in the longer run.
Recommendation: Company should take several steps to make sure that customer health is considered the top priority along with a taste. A policy can be devised to provide incentives and promotions to employees for working towards these objectives.
Change Image: Jim Skinner: The coach, he devised the strategies and rules of the game according to which team McDonald played and succeeded.
Recommended Strategy: The McDonald organizational change is effectively giving its results, but a change is required and that is effective communication. The consumers need to be aware of the change. This will accelerate the sales and profits.
References
Gallagher, W. and Parkin, S. (2006). Development of the magnetic tunnel junction MRAM at IBM: From first junctions to a 16-Mb MRAM demonstrator chip. IBM Journal of Research and Development, 50(1), pp.5--23.
Kotter, J. (2008). A sense of urgency. 1st ed. Boston, Mass.: Harvard Business Press.
Kotter, J. and Cohen, D. (2002). The heart of change. 1st ed. Boston, Mass.: Harvard Business School Press.
Polman, C., Reingold, S., Edan, G., Filippi, M., Hartung, H., Kappos, L., Lublin, F., Metz, L., McFarland, H., O'Connor, P. and others, (2005). Diagnostic criteria for multiple sclerosis: 2005 revisions to the “McDonald Criteria”. Annals of neurology, 58(6), pp.840--846.
Tsoukas, H. and Chia, R. (2002). On organizational becoming: Rethinking organizational change. Organization Science, 13(5), pp.567--582.
