Executive Summary
This paper discusses KFC, also referred to as Kentucky Fried Chicken. Specifically, the paper examines how the company is proposing certain changes in its menu offerings and the removal of antibiotics from its chicken. The paper looks at these proposed changes through the Lewin model and describes the challenges that the company will face both internally and externally in terms of these changes actually remaining given the context of the company being that of serving home-style cuisine.
Recommendation
The paper makes recommendations of how the company can effectively make sure that it does not falter on the proposed changes in terms of convincing the general population and its employees that these changes are indeed needed given the changes in consumer preferences.
1. Introduction
1.1 Background
According to KFC (2016), the company is one that boasts a rich and complex history that is full of ingenuity. Specifically, "it all started with one cook who created a world famous recipe more than 70 years ago, a list of secret herbs and spices scratched on the back of the door to his kitchen" (p.1). KFC is a company that has become one of the most well-known fast food restaurants around the world. Built on the concept of offering delicious, family meals, with reasonable prices the company specializes in a variety of chicken dishes.
Over the years, the corporation has made a significant amount of changes, but more recently has stepped up its evolution considerably. Recent changes include a shift in its menu offerings to provide healthier options and a proposal to remove the use of antibiotics in its chicken.
1.2 Scope of the Changes
This paper shall discuss the changes that KFC has done and will execute with an emphasis on the concept of change management models. The primary framework that will be used to discuss the changes that KFC has made and will make is the Lewin model.
1.3 Challenges of the Change
Naghibi & Baban (2011) describe that companies face a tremendous amount of challenges in terms of changes that they attempt to implement. This is due primarily to the fact that workers become use to certain procedures and practices. It is critical for companies to thoroughly understand that this will undoubtedly occur and prepare for it (p.542). For KFC, the company's mission is to provide delicious, home-style meals and the changes that have been made recently differ from that particular dynamic in the sense that it is seeking to become healthier in the eyes of consumers. The challenge then is to revamp the strategy so that fried chicken is seen by consumers as being healthy.
Jenkins (2011) writes that home-style cooking is a guilty pleasure for many and that many lovers of food tend to love finding restaurants that have over-rich, over-salted and over-sauced foods. In fact, they seek it out. As such, having a restaurant with home-style cooking mirrors something that they can cook up in the comfort of their own homes (p.1). Much of the appeal associated with KFC is related to the rich aspect related to its foods. The menu is extensively centered on home-style dishes that include mashed potatoes, baked beans, green beans, macaroni and cheese and corn to name a few. Along with its signature friend chicken, and sandwiches, the company is incomparable when it is operating within a lane that it is familiar with. As such, trying to change the underlying elements - or rather foundation presents a unique challenge to the entire vision that it is grounded in.
2. KFC & Change Management
The purpose of this section is to discuss organizational and change management, and how each applies to KFC. According to Lawler III (2003), van Dyck et al. (2005), and Spaho (2013), organizational management is a specific framework that explores companies to express accountabilities, responsibilities and the varying job activities. They offer the company structure in order to effectively and efficiently deploy and organize their resources. Essentially, organizational management allows companies to deal with the planning, leading and controlling that takes place. The concept is given a significant amount of consideration within the context of change management. This is due to the fact that companies have to plan for changes that are made within their internal infrastructure and the effects that these changes will have on their external reputation.
Change management is a particular approach or framework that an organization executes that allows them to sensitively implement specific measures that correct issues and problems within their infrastructure. The changes that are proposed must be achievable, measurable and realistic. The organization is stated to need to conduct a thorough and extensive analysis of how the proposed changes will affect the corporate environment as well as their reputation within the particular industry that they happen to be in.
According to Businessballs.com (2016), should the changes that are proposed entail new processes, objectives and actions, it is important that the principles associated with the overall change management approach are considered. These principles are involvement, which allows for a thoughtful assessment of the best people who will be involved in the changes to ensure that the right ones are made; the impact, which is an addressing of how the changes will affect those within the organization primarily; and communication, which is the actual informing process of those who will be affected by said changes.
MindTools (2016) suggests that companies and organizations utilize what are referred to as change management activities in order to make sure that the specific changes that are proposed are executed properly. These activities operate similar to project management activities and involve milestones for when certain parameters and/or measures will be implemented. The activities include: the design of the changes (i.e. any kind of prior research, surveying of those within the industry on the proposed changes); the planning that addresses the impact of the change; a specific understanding of what success will look like once the changes are made (i.e. measurement and accountability); and any kind of training preparation connected to the changes (p.1).
KFC is making significant changes to its menu in an effort to appeal more to health conscious consumers. According to Bowling (2015), as a part of its 75th anniversary, the company is said to have completely changed the design of both the Colonel Sanders and KFC websites, added baked beans with pulled chicken as an offering, started selling lemonade and strawberry lemonade as a beverage option and began offering what is known as the Finger Lickin' Good Sauce. Additionally, the company is seeking to change the way that its stores look, with a new layout that is both modernized and simple (p.1). These are just a few of the changes that the company is making. The company is also encountering other issues related to the quality of its food.
According to FoodSafety Magazine (2015), KFC is facing pressure to alter its use of antibiotics in chicken. This is not the first time the company has encountered considerable pressure to alter its use of antibiotics. However, with the change that McDonald's recently made, it has prompted a new level of scrutiny and has contributed to a significant amount of decline in sales by the company. The parent company, Yum Yum Brands, is said to have recently severed ties with roughly 1,000 farmers who were using antibiotics in their chickens in an effort to proverbially make nice with consumers and increase the quality of food that they purport to serve. Research suggests that much of the issue of antibiotics in KFC chicken is domestic within the United States, rather than international given the difference in suppliers. Recent information, though, contends that the company as a whole is encountering a tremendous amount of issues related to antibiotics usage even international as evidenced by a news agency in 2014 (p.1). To this end, the company is attempting to remove antibiotics from all of the chicken that it serves to consumers. Thus, a change management model is needed in order to fully prepare for the significant and extensive changes that will take place once this occurs.
3. The Lewin Model & KFC
There are multiple different models within change management that KFC should consider, however, for the purposes of this report, the selected model is Lewin model. Burnes (2004), Kritsonis (2005), Brisson-Banks (2010), Sarayreh, Khudair & Barakat (2013), and Mourfield (2014) explain that the Lewin Change Management Model includes three stages: an unfreeze phase, the change phase, and a refreeze. The unfreeze stage specifically involves a breaking down of the existing protocols and way of operations. The key to this phase is that the organization must articulate a message that is compelling to show why the way of doing things currently needs to be changed, and cannot continue. This can be framed around customer satisfaction surveys, financial data, etc. Moreover, the organization needs to be prepared as effectively as possible for the changes that are going to be implemented. This means explaining how the beliefs, attitudes, values and behaviors will be affected by the changes are implemented. This part of the model is considered to be the most difficult to execute because it puts every individual within the organization on notice that the way things are done currently will be cut and removed. Simply put, the idea within this part of the model is to relay that the foundation of the company will be changed to a certain extent.
In order for KFC to successfully and effectively ensure that the changes to its menu are accepted by consumers and internal personnel, the company needs to communicate said changes. Hayes (2010) and Naghibi & Baban (2011) both explore how change is often painful, but also straightforward. Specifically, in terms of individuals. Within the Lewin model, communication is key in the unfreezing stage. This is where the organization or company makes it a point to strategize how it will handle its resources as it relates to integrating the changes. It might be argued that the shifts to the menu of KFC was easily accepted by consumers and internal personnel, but because the home-style foundation was in place for many decades, the new system of operation is something that requires a systematic shift in beliefs about the types of ingredients that are used in the foods, as well as the facts associated with KFC.
It appears as though KFC understands this significantly because the changes are being implemented over a period of time rather than all at once. The unfreezing phase of the Lewin model does not explain that there is a specific time frame associated with how the changes are conducted and implemented, but rather that they should be done sooner rather than later. This of course requires as stated by Naghibi & Baban (2011) communication to all areas of the organization. The authors write that "in today['s] organizations there will be more changes for different facts that applying the skill of interpersonal communication is both useful and helpful in both the short and long term. Management and those at the top of the company need to be able to implement certain changes with minimum hassle and decrease the time in which they initially planned their change (p.543-544). Therefore, KFC's changes in the menu, and the proposed removal of antibiotics is essential in terms of planning when it will happen. The company must express this so that those within the company can begin planning for both the acceptance and backlash internally and externally.
The change phase of the Lewin model explains that this is where the changes take place. Since the menu shift has already taken place, the analysis of the literature suggests that the company made the changes gradually in terms of certain locations not beginning to carry the baked beans, lemonade, etc. at the same time. This affords the company a sequenced time frame of rollout of its healthier options. It can be argued that much of the proposed changes are indeed healthier in terms of broadening the company's relevance among consumption conscious consumers.
These are individuals who enjoy KFC offerings, but want a diverse amount of offerings and items that are brought about from a vegetarian viewpoint. Regarding the removal of antibiotics from its chicken, the company is said to be coming to terms with the shift in consumer tastes and preferences. Consumers are more and more looking to eliminate unhealthy items from their diet, and the context of antibiotics in their chickens does not bode well for the company in both the short and long term. Therefore, making the change, or at least eliminating any discussion about the use of them in their items is key to their continued relevance and viability among many other fast-food companies, who are shifting how they operate.
MindTools (2016) discusses that there is often a level of uncertainty during the change phase as to whether the proposed changes will make the company better. The proposed transition is not something that occurs overnight. Both external and internal stakeholders take time to embrace a new direction. There is a model that is related to this particular phase known as the change curve, which is expressed as how individuals within an organization transition within a specific aspect in more detail. So the proposed changes are accepted more readily, the management at the company must ensure that they take the necessary time to prepare each individual within the company. This means all departments and entities that will be both directly and indirectly affected (p.1).
The messaging for the changes must be explained in a detailed manner so that everyone is on the same page as far as what will be taking place and when all of the proposed changes will be completed. This involves a timeline or a project of some type that describes the changes in a list format and a timeline associated with each change. By giving this to each individual within the company, there is room for them to ask questions and to be able to come to terms with the proposed changes that are being made with respect to KFC.
The final phase of the Lewin model is the refreezing phase. Simply put, this is when the changes have taken place and are continually being evaluated. Regarding KFC, the company needs to carefully assess whether the baked beans, new sauce and lemonade are being welcomed by consumers over a certain amount of time so that they can thoroughly make a decision as to whether their health conscious shift was indeed needed. Both Hayes (2010) and MindTools (2016) consider the refreezing phase, a time when there is a considerable amount of integration of the changes. Essentially, this is when those within the company are making adjustments according to the changes that have been made.
4. Recommendation
It can be said that KFC should evaluate how well the current implementation of the sauce, lemonades and baked beans are performing in the locations where said items have been integrated. The company should conduct consumer surveys and interview individuals to gain feedback. This will help them to determine the effectiveness of the new items. The company will be able to effectively take into consideration whether additional healthier items should be introduced based on the feedback from the consumers. While it is one thing to obtain feedback from internal stakeholders such as employees, it is quite another to obtain additional insight directly from the individuals who are purchasing the items.
Regarding the removal of antibiotics from the chicken, the company should immediately make these changes. This will ensure that consumer groups and the like do not harass them to make the necessary changes. The company will more than likely face a lot of backlash if it does not comply with the changes associated with the antibiotics. The company should obtain third party observations after they remove the antibiotics, so that they can provide significant and substantial proof to consumers that they are not using antibiotics of any kind in their foods.
5. Conclusion
This paper discussed the changes that KFC has made and is making regarding its menu offerings and removal of antibiotics from its chicken. The paper described what change management is and how the specific theory/model that KFC used to make the changes regarding its revamp and rebranding. The paper went into detail about how the company made use of the Lewin model in making these changes, and how the framework specifically applies to the organization as a whole. The paper also made recommendations as to how the company can make sure that the proposed changes remain after the final phase of the used framework.
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