Management of Change - Essay Example

? Management of Change Grade Management of Change Introduction Change management is very essential in any organization (large or small) so that it realizes any form of growth. It is often a great blunder by management to assume that the employees are always going to easily accept changes as required (Bacal, 2012). The difficulty mainly arises from the issues centred on individuals (Carnall, 2007). It is, therefore, important to understand the need for change so that the areas requiring change in the organization are identified with ease. This paper looks at how change can be effected in McDonalds Corporation which is a household brand in the food service industry. Since 1937, the company has grown significantly and brought changes in how food is packaged even before the consumers ever thought of those changes (Leonhardt, 2012). However, with time, many things have dented the image of the corporation and undermined the reputation the owners have worked hard to build. Areas of Change The company needs change in three identifiable and key areas of its operations in order to salvage its reputation and rejuvenate to a brand that is adored by many when it comes to having a meal. First is the area of food processing. The company needs to move more towards healthy foods and abandon its niche of dominant junk food. The company has been associated with food products that are “unhealthy” to the consumer at the time where health issues such as obesity and heart diseases are emerging to be great challenges to the world population. The second area that needs change is the lead time of supply. There should be change in the procedure of sourcing for supply so that the time taken to deliver and, therefore, make it readily available is reduced. The third issue is that of the billing system in terms of its efficiency to eliminate complaints on overcharge in credit cards and how they respond to such concerns. These three issues are among other concerns in the organization that need to be subjected to change so that the organization remains a giant in the industry. Need for Change For every organization, the need for change is a constant requirement rather than a rare once in a year thing. An organization in the highly competitive and sensitive industry, such as Mc Donald, therefore, needs to embrace change through effective change management structures. Companies that engage themselves in all efforts of creating change have benefited a lot financially and in terms of growth. They are likely to be more competitive and even more adapted to external changes in the corporate world (Beer and Nohria, 2000). This, in essence, points the need for the organization to initiate change in the areas mentioned above. This can also be clearly illustrated through the various models of change management. Models of Change Management The two models of change likely to help in going around the change barrier include that of the change curve and Lewin's Change Management Model. The change curve explains the different stages that an organization goes through before an effected change is fully accepted. It helps in making the change implementation to be expedited, thereby increasing its likelihood of success. The change curve proposes that change is approached through people because when they adapt to change fast, the organization also changes rapidly (Mind Tools, 2012). Lewin’s Change Management Model proposes a three pronged process that involves unfreezing, changing and refreezing. The first stage involves anchoring change acceptance through creating an enabling environment. The second change subsequently involves introduction of the change and finally synchronizing the changes in the organization’s structures in the final phase (Mind Tools, 2012). These models show the ease at which various organizations including the one on focus can learn to integrate change in its operations in a more effective and timely manner. They are a good reminder of the need for change in organizations through breaking the barriers created by human nature. The next step is to evaluate and come up with a plan for the said change. Change Plan This paper adopts the Mckinsey 7S Model in preparing an organization in the planning stage of change management. This model proposes that the organization closely examines its strategy, systems, style, structure, shared values, staff and skills so that it understands how to effectively implement change. For an organization to function in an effective way, the seven elements must work in harmony (Manktelow and Carlson, 2012). The model is, therefore, helpful in determination of the areas that need change so that the system works in unison. The problems identified previously include fall in the areas of systems, strategy and staff. After identification of the elements that require change, it is important that a plan is put in place to ensure that there is effective implementation and evaluation. Leadership should view a plan as goal posts for ensuring that every part of the change is implemented as desired. The plan should follow the model or procedure proposed in the eight stages of successful change (Kotter and Cohen, 2002). The first thing is to make sure that the company creates a need for urgency in the relevant personnel. This will prepare them to the next stages of the change. The second phase in the plan is to form a team for the proposed change. The required leadership, skills and drive should be captured in the team. There should be a presentation of the areas that need change or will be affected by it through personalities included in the team. The team should also be able to develop trust so that they are effective. The next is communicating the need for change and the various areas that will need change in the organization. The main aim here is to create a better understanding throughout the organization so that people do not have misconceptions that may hinder implementation. Channels to be used include e mails, internal memos and other organizational communication tools such as the newsletter. There should be persistence in the way the message is relayed so that all people understand and recognize the forthcoming change (Burnes, 2009). The next stage is creation of empowerment through crediting everyone with a responsibility in ensuring that the change is successful. Everyone should own the process of change and, therefore, drive its development faster. In this way, time frames are able to be followed and resistance can be reduced. The last three stages involve creating short term success yardsticks where the accomplishments are recognized and even rewarded, building momentum and creating a culture of change in the organization. These stages may come with a lot of financing needs and therefore, the organization should be able to recognize the need to allocate funds for elements such as communication, team work formation and training, and purchase of new systems. Motivation of members of the team to work towards the target may also require top management’s involvement and input. The other stakeholders such as suppliers and shareholders should be adequately informed of the change and frequently updated so that they are aware of the consequences and future benefits of the proposed changes (Hayes, 2010). Implementation of Proposed Change The changes are to be implemented within a period of six months provided all issues discussed above have been taken into account. Management should be charged with communicating the required shifts to the various departments so that the organization works in harmony. There should be performance reviews on a monthly basis to check whether the changes are being effected. This can be done through customer surveys on the billing system, for instance. External independent audit should also be sought after some time so that evaluation is done in a transparent manner. Management should also consider rewarding the individuals or departments that have effectively implemented their part on the change process so that there is competition that drives the change further. The changes should be gradual rather than sudden to eliminate the shocks that might come with rapid change. A department may be identified for the pilot stage. The identified department should be able to reflect the real situation in other departments so that the problems experienced during implementation are handled before progressing with the change in other departments. This can also be done through a sample of the restaurant chains from the areas having diverse client backgrounds. The next phase is to gradually implement the changes in other chains as response becomes clear to management. Care should also be taken to ensure that the needs of the different market segments are taken care of so that they do not feel left behind. Research should be done to ensure that international best practice is affected as well as emerging customer preferences so that the change implementation is not seen as an effortless initiative. Resistance can be dealt with through education and sensitization on the need for the change. This can be done through groups rather than the leaders so that there is no conflict between management and the employees (Cameron and Green, 2009). There should be a culture of changing the status quo in the organization so that resistance will be reduced because people will probably understand that it is an organization-wide focus rather than an individual one. A lot of employees’ gatherings should be encouraged so that there is constant communication on the ongoing changes and their significance. Through such forums, employees may also communicate and contribute on matters that need to be integrated in the system during the process of change implementation (Brown and Osborne, 2009). The main objective is to ensure that the changes are effected in the most appropriate and timely manner and according to organizational goals. Another objective should be that of ensuring that the costs of effecting this change does not exceed one percent of the total revenue of the organization. Another objective is that of ensuring that the level of positive customer response is increased significantly. The three main objectives should, therefore, act as the means of ascertaining whether the change implementation process is successful. References Bacal, R., 2012. Understanding the cycle of change, and how people react to it. [Online] Available at: http://work911.com/articles/changecycle.htm [Accessed 12 November 2012]. Beer, M. and Nohria, N., 2000. Breaking the code of change. [Online] Available at: http://hbr.org/2000/05/cracking-the-code-of-change/ar/1 [Accessed 12 November 2012]. Brown, K. and Osborne, S., 2009. Managing change and innovation in public service organizations. New York: Routledge, ISBN: 0415328985. Burnes, B., 2009. Managing change: a strategic approach to organizational dynamics. London: Financial Times Prent. Int, ISBN: 0273683365. Cameron, E. and Green, M., 2009. Making sense of change management. London: Kogan Page, ISBN: 0749453109. Carnall, C., 2007. Managing change in organizations. New York: Prentice Hall. ISBN: 0273704141, 9780273704140. Hayes, J., 2010. The theory and practice of change management. New York: Palgrave Macmillan, ISBN: 0230210694. Kotter, J. and Cohen, S., 2002. The heart of change: real-life stories of how people change their organizations. Boston, Mass.: Harvard Business School Press. Leonhardt, D., 2008. McDONALD'S can it regain its golden touch? [Online] Available at: http://www.businessweek.com/1998/10/b3568001.htm [Accessed 12 November 2012]. Manktelow, J. and Carlson, A., 2012. The McKinsey 7S Framework: ensuring that all parts of your organization work in harmony. [Online] Available at: http://www.mindtools.com/pages/article/newSTR_91.htm [Accessed 12 November 2012]. Mind Tools Ltd, 2012. Models of change management. [Online] Available at: www.mindtools.com [Accessed 12 November 2012]. Read More