Introduction
Study of change is the study of how organizations and individuals use different approaches in transitioning to new ways of doing things. A world-renowned change management expert and professor at Harvard Business School, John Kotter, introduced an eight-step change process in the 1995 book, “Leading Change”. The process is mainly referred to as Kotter’s model for change management. Scholars of change and other people studying change use the change management model. Leading directors and managers of companies to fasten the change process can also apply it.
The Three Significant Errors
Various significant errors are made out from these change stories. Firstly, the management and all the stakeholders in these companies failed to form a powerful coalition. Forming a powerful coalition is Kotter’s step two towards change. For instance, in the case of Hewlett-Packard, Fiorina had a problem relating well with the staff. It was because the customers were expressing concerns regarding the merits of the merger. They thought that the merger would be unsuccessful. , Fiorina realized this and changed the leadership style to ‘management by walking around’. When Mark Hurd replaced Fiorina in 2005, Mark changed all that Fiorina had done and introduced a more powerful coalition. With Hurd’s actions, HP announced a best sales growth for seven years (Sabri, 2006).
In addition, IBM did not see the urgency for a change. They were supposed to ensure that they change immediately and embrace the internet. IBM did not see how the internet could at one time become an central part of the business. David Grossman realized this and became persistent. Grossman realized the need for a change and thus created urgency. Therefore, Grossman convened a meeting with the head of marketing Abby Kohnstamn and gave a detailed explanation of the importance of the internet. Grossman met John Patrick after a certain presentation about the internet. Consequently, they became friends leading to the formation of a powerful coalition (Anderson, 2010).
Grossman and Patrick managed to transform IBM coupled with the leadership of Lou Gerstner. Samuel Palmisano took over IBM’s leadership in 2002. Palmisano led by emphasizing on teamwork and collaboration, managing to propel IBM to greater heights in terms of completion and thus became a global leader.
The third error made by these companies was failure to create short-term wins. It is Kotter’s step six towards a successful change. The McDonald’s change story did not contain the aspect of short-term wins. During the early years, McDonald’s was making only losses. It was specific during the leadership of Jack Greenberg and Cantalupo. However, with the taking over of Jim Skinner in 2003, Skinner introduced the ‘Plan to win strategy’. It included the proposing of 300 new stores and the advertising campaign, “I am loving it”. They also introduced an online training program for all U.S-based employees solely to address customer service issues. These short-term strategies worked and by 2007, McDonald declared sturdiest business outcomes in a period of 30 years (Vogelsang, 2012).
Recommendations to the Change Stories
There are several recommendations that can be brought forward for each change story. First, Carly Fiorina in HP was supposed to have reduced the jobs, and assigned each product division. Consequently, HP would have reduced the extra expenses on paying employees. With reduced expenses, the company would now focus more on the product divisions. The competition would reduce with other players in the field thus success. Mark Hurd was successful in applying this strategy. Secondly, with IBM change story, they were supposed to create that urgency for a change. This urgency was supposed to come in such a way that the stakeholders of IBM would realize the importance of the urgency. They were also supposed to function as a team. Palmisano saw this and worked on it. He wanted to work with the average employees and treat everybody equal and thus called it reducing bureaucracy and hierarchy in the organization, which was one of the best strategies that propelled IBM forward (Anderson, 2010).
Furthermore, Kodak needed to remove the change barriers. In this case, the change barriers were the investors and the employees. The management needed to enlighten and educate the employees and investors on the importance of shifting from analogue to digital technology. The actions taken were supposed to scale up competition with other players in the field, taking into consideration the investors. For the employees, this would reduce the time they worked but for a better pay. As for the case with the McDonald’s, they were supposed to create short-term wins for the employees to counter the losses they were experiencing in the past. Jim Skinner tried the strategy, and it was very much successful. It also countered the reactions to the movie Super-Size Me.
Attributes of the leading managers and directors
In Kodak, David A. Carp is seen as a dreamer and an ambitious. Carp dreams of a digital Kodak despite the obstacles brought about by the investors and staff. Cantalupo and Antonio Perez tend to share the same features. With the case of the McDonald’s, Jack Greenberg can be described as not being insightful. Greenberg went ahead and implemented the “Made for You” kitchens that came out very unsuccessful. On the other hand, James Cantalupo can be seen a reformist who works from past mistakes. Cantalupo analyzes the future and the past and comes up with a very comprehensive approach.
A Different Strategy for Managing the Change
A different strategy was supposed to be applied in managing change in Kodak. It included bringing together all the stakeholders in the Kodak family and highlighting the advantages and disadvantages of digitalization. For instance, Carp said that they were supposed to develop a model that would make Kodak compete favorably in the digital markets. It was through reducing of employment and the square footage of Kodak facilities worldwide.
Conclusion
The studies of change are very broad and very insightful. Basing on Kotter’s 8-step change model, the management needs to start with creating urgency for change. Secondly, management needs to form a powerful coalition with the employees and shareholder, which is then followed by creating a visionary change. Fourthly, communicating the vision and removing obstacles on the way, need to be done. Consequently, there is the creation of short-term wins and strategies, building on the change to be achieved and finally anchoring the changes in corporate culture or world. From the above, those managers who applied the steps, ended up successful.
References
Dean Anderson, L. A. (2010). Beyond Change Management: How to Achieve Breakthrough Results Through Conscious Change Leadership. Hoboken,: John Wiley & Sons.
Ehap H. Sabri, A. P. (2006). Purchase Order Management Best Practices: Process, Technology, and Change Management. Fort Lauderdale: J. Ross Publishing,.
John Vogelsang, M. T. (2012). Handbook for Strategic HR: Best Practices in Organization Development from the OD Network. New York: AMACOM Div American Mgmt Assn.
