Organizational analysis looks at the internal/external environments and the methods, techniques and tools of change (Waddell, Cummings and Worley, 2007). The organization needs to take into consideration all the stakeholders in order to avoid entropy. The evaluation research is the process of determining whether a program or intervention has/is producing its intended or best result (Waddell, Cummings and Worley, 2007; Wood et al, 2004). Factors to be looked at are gaps, alternatives, unmet needs, quality, effectiveness, benefits versus costs, quality etc.
An effective evaluation has to be proactive before and during the design of intervention. It involves needs analysis and best practice or benchmarks (Waddell, Cummings and Worley, 2007). Next, the evaluation should clarify intended outcomes, rationale, and logic to the stakeholders. Furthermore, ongoing monitoring and self assessment on an individual level is very important (Waddell, Cummings and Worley, 2007; Wood et al, 2004).
Company X business was performing poorly. Although they were not broken overnight, they experienced a loss of $21.6 million. Another contributing factor was the poor performance in key merchandise areas i.e. womenswear, footwear, menswear and homeware. Furthermore, poor planning, brand positioning the low staff morale were among the factors that influenced the need for change.
Approach to the change strategy
Whether the result of merger, restructuring, new technology, new or developing markets, global pressures or changes in leadership and whether revolutionary or evolutionary, managing change in the workplace paradigm is inescapable (Waddell, Cummings and Worley, 2007; Wood et al, 2004). A paradigm is an unconscious mindset defining the boundaries in thinking and acting in a particular situation giving certainty, acceptance and comfort (Johnston, 1996). Massive changes lead to paradigm shifts which in return create an undermined and confused sense of reality. Paradigm shifts undermine organizational culture and change the mission of the organization inducing change as a result (Johnston, 1996).
Company X developed a realistic action plan that provided them with the structure and direction they needed. This plan was well conceived both short- and long-term and allowed members to know what their roles were, what they must do within those roles, by when, with whom and how. It proved effective as the “gap analysis” concepts were used in order to answer the vital questions. 1) Where do we want to go? – revising vision, goals, objectives, outcomes; 2) Where are we now? – reviewing skills, resources, incentives; 3) How will we go from where we are to where we want to go? – structural components, prioritized tasks, processes, standards, guidelines, constraints, communication, schedules, roles. 4) How will we know how we are doing on the way? – accountability, quality criteria, feedback mechanisms.
Company X went through a radical change and started with improving the stores and service. They performed a consistent execution of layerage, adjacencies and flow to provide an easy to shop experience. In order to improve the service they recruited key people with merchant skills for a clear, consistent visual merchandising. To maintain the cultural focus on operational efficiency they designed new operating procedures for front and back of the shop, and improved the end to end process for stock management.
Company X invested in a sophisticated technology that sends all its transactional data into one warehouse and assists to better understand its customers, maximizing the potential of its Company X loyalty program. This data warehouse has segmented customers according to obvious profile factors such as gender, age, what they buy, in which stores and when. In addition, Company X is addressing store profiling by analyzing which goods sell in what patterns in which locations. This information enables the company to adjust the merchandising plans at a store-by-store level. Having a better understanding of who their customers are and what and when they buy, gives Company X an important foundation on which they can lead the organization towards growth.
With this form of detailed intelligence increasingly available – which is willingly provided by customers when they sign up for the Company X program – the company can now engage in meaningful dialogue with them. They can start building profitable relationships; tell them about new brands which have landed; about special offers they believe will appeal. For example, if the retailer knows that one of its regular shoppers has school-age children, then offers of teenage swimwear as summer approaches makes sense. Conversely, telling the retirement age demographic about deals on skiing equipment is probably a waste of marketing expense.
Company X’s use of customer data extends to finding out its customers’ attitudes at the brand level, their likes and dislikes. At the macro level, Company X knows how customers feel about their shopping experience and how it compares with their experiences when shopping from the competitors. Just three years after the launch of Company X loyalty program its ambitious revenue goals have been fully realized. Compared with industry standards, an impressively high percentage of total sales are attributed to the program, and the company estimates that its investment in the program has been recovered some three-fold.
Culture of organisation pre- and post- change
Wood et al (2004) state that “…through common shared behaviours, values and assumptions, organizational members will clearly understand the organization’s mission, strategies and goals in relation to external environments” (p456).
Company X had a “good old days” form of culture before change. The management was static and hardly changed based on the premise that staff will be less confused of who their leaders are. The stores were allowed to operate autonomous in order to cater for their customers. The overall outlook of the stores was simple and less attractive for customers. There were the same employees waiting for retirement, lacking of training and skill development. The customer service was disappointing due to its lack of truthfulness and professionalism. For example, for the customer to pay for its purchase he/she had to wait until the shop assistant would finish the weekend recount with the other assistant. Furthermore, misleading advertising and staff’s lack of autonomy were part of the old culture.
After change Company X embraced the concept of globalisation and the new demand of thinking globally and acting locally (Chiavenato, 2001).However, with the series of managerial changes, which were not welcomed by staff, Company X provided managers and employees with training and seminars. This in turn provided a behavioural and attitudinal adjustment changes and helped transform their traditional work values to a re-engineered work values. .For example, the boss pays your salary, so keep him happy (traditional). Customers pay our salaries, so help keep them happy (re-engineered); another example is when things go wrong, pass problems to others (traditional) to accept ownership for problems; help solve them. These have helped reduce the amount of managerial changes (Wood el at, 2004). The company promotes a culture of diversity and the new employees are from a variety of ethnic and social backgrounds and cultures.
Management and leadership styles
Managing change is the key to change and it is suggested that, rather than change itself, it is often ineffective management of change that creates stress among those called upon to implement it (Wood et al, 2004). Indeed, the writer proposes that if people and organizations do not learn how to effectively manage change, they will find themselves managed by the changes that are as inevitable as the passing of time. The organization’s management plays an important role in managing the ambiguities and uncertainties associated with change. Planning for the future can be proactive. If managers recognize and communicate that change is inevitable, and everyone’s flexibility in joining to plan the future as a team, will contribute to a smoother transition (Suter, 1992). Change is a continual process, according to George and Cole (1992), and can create a number of negative feelings among personnel. In general, there is strong resistance to change.
People in the Company X were afraid of the unknown, thinking that things were just fine and did not understand the need for change. Many were inherently cynical about change or doubt there are effective means to accomplish major organizational change (George and Cole, 1992). Often there are conflicting goals in Company X. For example, to increase resources to accomplish the change, yet concurrently cut costs to remain viable. Organization-wide change often goes against the values held by the members in the organization and changes the organizational culture (Johnston, 1996; Waddell, Cummings and Worley, 2007).
Leading is an art and the way managers use their position, authority and power concludes whether they are in fact leaders (George and Cole, 1992). The qualities of a leader influence directly the organization. Successful leaders are a positive role model and continuous communicators. As Deveson (1995, p19) suggests “leaders must keep learning and … to understand risk taking. Create a risk environment – a calculated risk. Fear of failure should not be allowed to impede innovation”. Furthermore, leaders should counsel staff on performance and integrate communication tools by means of technology.
Company X as the learning organization has its base in the vision of and the search for a strategy to promote individual self-development within the organization’s continual change. In today’s Company X continuous learning is vital in order to gain competitive advantage. Learning can occur on individual, team and organizational level (Starkey, Tempest and McKinlay, 2004).
Relevant work practices
Company X managers used empowerment strategies to enhance their employees’ belief that they can perform adequately in a situation. This belief is known as self-efficacy and if employees do not believe they are capable of achieving particular goals, they are less likely to do so even if the organization says they ought to. Wood et al (2004) address that “empowerment strategies are designed to improve self-efficacy by providing employees with greater autonomy and by increasing knowledge and control over factors directly related to job performance” (p164). Company X structured training and organizational learning so that employees acquired new skills.
To be paid a salary is the primary reason most employees in Company X hold their jobs but it may not be the reason why most of them do superior work. An exceptional raise of salary might drive a brief spurt of energized behaviour, sales would be up and customer service may be come exceptional, but ardour diminishes after sometime. The dark side is that diminishing them is very demoralising; on the other hand, so withholding a rise from someone who has every reason to expect one can have a very negative effect on the person’s motivation too ( Deeprose,2007). Admittedly, a promise of bonuses based on clear criteria motivates people to perform at their peak.
Suggestion for improving the outcomes of the change process
The change process in Company X was radical and successful in meeting all the parameters set in the action plan. However, without ongoing evaluation processes, a change initiative is doomed to remain static: it will reach a plateau and stay there. Even if it starts out strong, it will eventually reach a point that, while perhaps acceptable, does not enable optimal performance. Without ongoing evaluation, progress may be achieved, but the original vision or purposes may not be fulfilled and the change effort may not be able to keep up with the times. It is important therefore that each aspect of "managing change" has associated with it evaluation components that look specifically at midstream and ongoing performance, and outcomes in general.
CONCLUSION
Managing change has been an occurring theme in humans and organisations for as long as the history attests. It is important to remember that substantial change does not occur overnight. Implementing the key change components at a high level of quality will require significant, continuous efforts from the individual level to multiple individuals and sometimes institutions – probably over many years. In keeping with the philosophy of academy and practice between partnerships, this paper was written as a venue to explore varied aspects of change agendas and human responses to those agendas. It aims to remove or significantly reduce the negative impacts of change upon the work required to be done in order to manage change.
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