Managing Organizational Change at Apple Inc - Assignment Example

Name: Professor: Course: Due date: Executive summary Apple Inc. has been in the electronic industry for 36 years now and is known to among the first company to manufacture computers. The company’s success is attributed to the quality of services they offer and level of technology they employ to serve the customers with a variety of products to meet diverse demands. However, with the changing business environment where the customers have continued to change and also competition has continued to dominate, change is considered very critical. The change implementation that has been considered in this case is Kottler’s 8-Steps Model. This is to ensure that the company is able to become more innovative and fashionable in the world of technology. However, it has also been established that even though change is good, resistance is likely to emerge if the employees feel that they are likely to loose. At the same time change is continuous and no single time change can stop taking place. It with this regard that it is recommended that strong, inspiring and motivating leadership is established to ensure that change is incorporated to culture and also employees are encouraged to accept change. 1. Introduction It is almost certain that almost every person is always nervous about change. This makes some of them resist it either consciously or subconsciously. The fear that causes many people to resist change is founded on the fear that change will have negative impact on them. In an organizational level and more especially at strategy level, change is feared because of the uncertainties that it brings about. This is because it cannot always be ascertained to what extent the proposed changes cannot fair in the company performance. However, what is remaining as a fact is that change is constant and must always take place and if organizations cannot be able to adapt, then they are likely to remain irrelevant and definite collapse. In the world of computer and software change in the operating environment, has been very significant and this fact has been cultivated by the advancement in technology (Smith, 2006). One company in the electronic industry that has been forced to embrace change in order to survive in a very competitive business environment is Apple Inc. it is through change that Apple has managed to be among the leading companies industry by developing highly quality communication devices like iPads and iPods. With this in mind therefore, this study is aimed studying the change management scenario at Apple and try to introduce the suitable change implementation in reference to Kottler’s. The study will also seek to identify three major channels that can be used to communicate change, development of the memo to communicate change description of the reaction and feedback from employees and also time-line for the implementation. 2. Company overview Apple corporation was founded in 1976 at California in the united states by Steve Job was the first person to become the company CEO. Formally since foundation, the company was known as Apple Computers Inc. for almost three decades before it could change to Apple Inc. in 2007. This was done purpose to help the company become diverse in its product base by going beyond the manufacturing of computer to other electronic products like phones. The company is well known in the electronic industry and is among the leading companies in terms of technological innovation something that has helped it develop such devices as Music Players, IPod and Macintosh as well as personal computers. Currently, the company runs over 150 franchises world over and has succeeded to do much of its business online. In general, the company that has been in business in business over 36 years now has managed to develop diverse products running from computers to MP3s, iPads and iPhones. The launch of the 3 G in 2008 was a major breakthrough for the company in the market alongside the development of the iPod which is the latest computer that the company has managed to manufacture (Nostoptechnology 2012). 3. Change issue at Apple Inc. Fashion has been a major issue in the electronic industry. This is because more than ever before, the market has continued to place in, new demands to what they expect from the manufacturers and what they think should be able to serve their needs in a more convenient way. This is what has led to highly developed products which include IPods and iPhones which can serve many functions at the same time. These products even though small in size, they are very powerful and they can be used as both computer and communication devices. Developing new and highly advanced products, is almost significant since they help company competitively operate in the industry. This is because the customers are yearning for more convenient and comfortable lives. This is the reason as to why Apple which developed Macintosh PC’s as its first computer in 1984 has continued to advance it until it has the latest screen made of in a very small screen. Because change has continued to take place Apple is expected to create an environment where open-minded thinking is encouraged so as to embrace change by adjusting accordingly. Change at Apple is required to facilitate innovation which in return will lead to the development of more advanced products like iPod and digital music players (IndustrialWeek 2012). However, even though these advancements are looking attractive to the customer, it is becoming absolutely very necessary for the organization to consider employing the most appropriate strategy to implement the required change. This is especially important in ensuring that the all the company stakeholders has a stake in implementing the desired change to the business (Axelrod, 2000). 4. Change implementation model Kotter’s 8-Step change model provides for a very important tool to implementing change in different organizations. This is because it is identified to provide the most suitable strategy to ensuring new business initiatives are proposed and executed to drive the continuing changes in an organization. The 8-Steps that are identified in this model and that are important in implementing change at Apple Inc. include creating urgency, forming a powerful coalition, creating a vision for change, communicating the vision, empowering staff, ensuring short-term wins, consolidating wins and embedding the change into the organizational culture. At each step according to the Kottler’s Model there are a number of activities that have to be executed to ensure that the intended change has been achieved (Black, 2002). Step 1: Creation of urgency First and most important step and which gives the direction change will take, is the creation of urgency. Creation of urgency entails the process of creating the need as to why change should take place. The purpose of this step is to ensure the necessary spark for motivation is started so as to have things move. More important at this step is to try and embrace dialogue with different members especially the employees so as to get to convince them of the situation in the market and why change is considered critical. What the company should do in this case is to identify potential threats and opportunities and encouragement of discussions to convince the rest of the members and request support different stakeholders including the customers and other industry players. Step 2: Ensuring that a powerful coalition has been formed The most important task at this step is to ensure that appropriate structures within organization have been developed. This is to ensure that the company has the right organizational structures under organizational development that will help the team to drive the desired change. Further, in the case of Apple, creating powerful coalition will entail the process of integrating important business functions such as marketing, design and operation which improve product delivery to the market. Step 3: Developing a vision Developing a vision for a given task or project according to Kottler is aimed at providing direction on where the company is headed. A clear vision is however, required for everyone to understand the reason as to why you are asking them to take on a given task. This is because the individuals in a team are likely to make sense of what you are intending to do if they can be able to see what you are intending to do. In the case of Apple Inc. for instance, the vision of the change will be able to provide fashionable and high quality electronic goods into the market so as to be able to compete favorably with the rest of the industry players. This is important in motivating the staff to be creative and innovative. Step 4: Communicating the vision Communicating the vision to the rest of the team members in the organization is very critical. This is because in the organizations there are numerous communications taking place and that can obstruct the communication of the vision for change. With this regard therefore communication of vision need to be done more frequently and in a very powerful way so that it can be imbedded in everything that is being done. This outcome can be achieved by many different ways which include talking about the vision frequently, being honest and leading by example. Step 5: Empowering the staff In any change taking place in an organization, the staff plays a very significant role either in its success or failure depending on how they are handled. Empowering the staff as depicted by Kottler’s model, entails removing those organizational policies and structures that can the hinder achievement of the vision by prohibiting risk taking. In this kind of situation the company will be expected to identify and hire individuals who can deliver on the anticipated change, revising organizational structures and job descriptions as well as performance and other compensation systems, rewarding positive efforts, identifying barriers and taking quick action to remove all the barriers. Step 6: Achieving short term wins Nothing can motivate the team more than the first wins. Short-term wins are clear indication of being successful. For instance in the first year, the company may review and report on what has so far been achieved. However, most important to be noted here is that short-term targets have to be identified and if they can be achieved, then they could be used as prediction for overall results for change. Step 7: Consolidating gains It is expected that as an organization continues to implement change, some obstacles will be emerging and that will be required to be management for complete success. For instance, is expected a company like Apple which has numerous branches worldwide will be experiencing barriers in terms policies and process of coordinating all functions. With this regard it is expected that for success implementation of change, the business will have remove some barriers by ensuring that all branches are operating as one family and also establishing new and related projects like further training that will support the new changes to the organization. Step 8: Incorporating change into organizational culture One important aspect of what should be done to ensure successful implementation of organizational change include making change part of organizational culture that at all times the team should strive to achieve excellence. What this means therefore, is that change has to be linked to organizational performance and leadership for continued support. This is because will always be seen as an aspect of an organization and which every individual must support. 5. Channels for communicating change Communication of change is very critical in any organization as it ensures that each and every party is involved in the process. This is because each and every party is expected to play a role in the process. Among those who are expected to be communicated to are the customers, employees and other major stakeholders who include the investors and other industry players. Communication is a process and if not communicated using the most suitable channel, then it is almost assured that information about change may not be communicated appropriately (Galpin 1996). However, most important is the use of that channel that can create curiosity among the audience. Despite having numerous channels that can be used for communication, there are those are more specific and can suit the case of Apple Inc. and they include company website, social media and newsletters. 1. Company website The company website is expected to be rich in information and showing what is new from the company, its strategies and what it tends to achieve and by what means. Use of company website is preferred because it less costly and at the same time can reach wider market within a very short time and at the same time can be used for interactive process. 2. Social media The social media entails use such sites as face book, twitter and YouTube to communicate with the audience. This is an interactive channel and also has wide coverage. 3. Company newsletters The company newsletters carry detailed information about the company events and they are effective in situations where interaction is not big issue. The newsletters can be dispatched through company retail outlets and branches worldwide. 6. Memo for communicating change To: Company employees and all other stakeholders From: Executive Vice President and Chief Operating Officer-Apple Inc. Date: 8th December 2012 Re: Organisational change The company over years has continued to record positive returns in different areas of our business and this achievement is attributed to the role that is being played by each and every stakeholder. However, with the change in the operating environment and the industry that we are operating which is considered among the most competitive, it is becoming increasingly very necessary to consider re-evaluating our business strategies in order to determine where we need to be in the market. With this regard therefore, the company is intending to restructure itself in a way that it can be able to embrace innovation and technology as core strategies for the success of our business. First and most important thing that the company consider potential for change is the organizational structure. This is to ensure that despite the numerous branches that the company, the new structure is developed that will allow them to operate as one family and also ensure that operational, design and marketing functions are aligned and power distributed accordingly so as to allow responsibility in whatever business risk taken. Further, senior leadership is considered for restructuring to ensure a lean but a very effective team with high level of experience and determination to organizational performance. At Apple Inc. we are not intending to change to keep up with the rest of the competitors but strive to set a new course for others to follow and therefore I ask each and every person to provide the leaders who will be in charge the necessary support as they plan to lead in style to make the company the leader in the industry in innovating most fashionable products. 7. Reaction and feedback from the employees Despite the fact that the change may be a good thing to do for the business, this initiative may not be welcomed by the employees. This is because there is that element of fear that some employees will be affected. So the first thing to be experienced from the employees is the resistance. Employees are likely to respond by refusing certain tasks and responsibilities, wondering about their job security if technology is to be used, increase in anger towards the senior management, increase in gossip, panic and quitting if the situation does not seem to be promising unto them Kotter and Dan, 2002). 8. Timeline for change Even though cannot be said to have an end, there are some parts of implementation that have to completed in order to ensure that the change has become part of the organizational culture. However, it approximated that to attain reasonable success from change at Apple Inc. the process will take a maximum of years starting 1st of January 2013. Within a period of five years it is expected that the necessary restructuring will have been complete and adaptation brought into being. 9. Conclusion and recommendation The purpose of this report was to take a detailed study into concept of managing organizational change in relation to Apple Inc. and report on the best strategy to implement the desired change. Kottler’s 8-Step model has been used in this case. However, what has emerged is that change is always there and can never come to an end and that is incorporating change into organizational performance and leadership is considered very critical. Further, resistance is very likely especially if the employees are meant to feel that change will not favor them. So as to help ensure that change is continuous and resistance from the side of employees is reduced, it is recommended that a strong and inspiring leadership be introduced which will be able to establish organizational culture that always supports change and also inspire the employees to accept change and take it positively. References Axelrod, Richard H. Terms Of Engagement: Changing The Way We Change Organizations. San Francisco, California: Berrett-Koehler Publishers, Inc., 2000. Black, J. Stewart and Hal B. Gregersen. Leading Strategic Change. Upper Saddle River, New Jersey: Financial Times Prentice Hall, 2002. Galpin, Timothy. Connecting Culture to Organizational Change, HRMagazine, 1996, 41, 85 - 90. IndustrialWeek, Apple Corporate Reputation Shines: Harris Poll, retrieved on 8th December 2012, available at: http://www.industryweek.com/articles/apple_corporate_reputation_shines_harris_poll__2 6619.aspx Kotter, John P. and Dan S. Cohen. The Heart Of Change. Boston, Massachusetts: Harvard Business School Press, 2002. Nostoptechnology. The Apple Fan Site: The history of Apple Inc., retrieved on 8th December 2012, available at: http://nostoptechnology.com/ Smith, Douglas K. Taking Charge of Change: 10 Principles for Managing People and Performance. Reading, Massachusetts: Addison-Wesley Publishing Company, 2006. Read More