Charlotte Beer's CEO Ogilvy and Mather Worldwide - Essay Example

Charlotte Beer Case Study Introduction Communication networks within and outside organization remains a critical component in nurturing good interpersonal communication and infusing cultural change. Communication network simply refers to the various media that connects leadership with employees or even within employees. While communication may see as a mere tool of coordination, it should also be recognized as a linkage of departments and its impact on the overall organization is undoubtedly immense. In addition, while introducing a cultural paradigm shift, the message crafted should present a resonating message to the target audience. The effectiveness of communicating change strategy played well during the initial attempts of Charlotte Beer at Ogilvy & Mather (O&M) to introduce organizational culture change. Part One Ogilvy Mather (O&M) is one of the worldwide leading adverting agencies. When Beer took over as the new CEO and Chairman, the organization was on the verge of collapsing (Beer 2011). Notably, the organization, there was a breakdown in communication channels, and the overall performance of the organization had significantly deteriorated. According to Beer, the efforts to restructure the organization back to its initial position were messy, painful and chaotic. While introducing the change within the management tier, the "Brand Stewardship" faced enormous challenges. Beer stewardship refers to the new agency philosophy that was intended to build brands within the organization. Sadly, the philosophy was poorly understood due to various communication shortcomings. Firstly, when Beer took over there was great excitement and a time to introduce change was ripe. In her first attempt in launching stewardship, she concentrated much on involving customers and investors. While this could be a strategy to regain back the lost customers and invite new investors to the organization, the need to create a motivated staff should have form the primary responsibility. In addition, customers had opted out of the organization due to inconsistency and fall in products quality. Matha & Boehm (2008) state that the standards of service are proportional to the staff capability and motivation. Certainly, the focus should have been a direct two-way communication with the employees. In addition, Beer greatest undoing was uncertainty of who to seek help from in charting a new organization discourse. In fact, the press and companies focused on her solo effort in bringing up Beer Stewardship. Lack of teamwork and shared decision-making contributed to the slow development of the change program. In any organizational change strategy, the stakeholders must be involved in needs identification. Communication is an essential component of initiating and sustaining change process. In addition, the channel of communication should create a vertical and horizontal integration of communication (Matha & Boehm 2008). In addition, Beer insisted on charting a clear path for the organization at a time when organizational structures were totally disengaged. While Beer steward change intentions were widely speculated as a recipe to infusing energy to "beleaguered" company, Beer failed to initiate deliberate change by putting the management team in the mode of the new dispensation. Besides, she adopted a strategy of allowing employees to more without giving the employee incentives such as titles and increased pay. The total omission of motivation and inconsistent communication she created unclear lines of job performance that stirred insubordination. In addition, Beer failed to operate on formal structures, and the majority of employees found it unnerving. Besides, in selecting "Thirst for change” group, she totally focused on working with those who had it right. This was certainly a wrong move by the CEO at the time that the organization wanted a change. In O&M organization, change would be achieved easily by involving employees at every level across the organization agencies. By selecting a few into thirst for change group, Beer portrayed leadership of exclusivity, and those left out fell out of the change program (Beers 2011). Beer (2011) states that strengths of the O&M communication channel became the beacon of the infusing change. The managers often discussed and inquired facts on the priority areas. One of the biggest debates was either structural changes or employees' morale. By sharing information with every department head, the organization will instil responsibility and authority of the sections, heads. However, the weakness in communication practices lied heavily on the entire employees' body. The change was seen as Beer's sole responsibility and employees’ untimely communication, and lack of involvement in policy and structural changes caused complaints and resistance towards change (Beers 2011). Lastly, the greatest undoing in the first attempt to introduce Beer stewardship was the speed at which it was executed. It omitted the route of competitive advantage and focused solely on structural and cultural change. The disagreement on designing a vision significantly slowed the stewardship. Notably Harry Reid and Reimer expressed displeasure in the Beers crafted vision shows poor communication of vision to the employees (Beers 2011). At O&M, it was impractical to rush through change strategy as Beer did because it came at a time when employees were facing moral fatigue and displeasure. Part Two While Beer Steward change was timely and desirable at the O&M, there was a need to invest in effective communication strategies so as to generate acceptance and avoid the resistance from some quarters (Beers 2011). Sadly, Beer Stewardship was rushed through, and little time was given for employees' to inquire facts and seek clarification. In addition, Beer relied heavily on horizontal channels of communication, thus limiting the need for downward and upward communication strategies. In order to successfully relaunch Beer Stewardship change package, Beer and the top tier managers ought to adopt vertical communication. When opinions from bottom-level employees are collected in the areas to change structurally, they will be a feeling of recognition, and this would significantly infuse morale of employees. Although, the need for change was Beer's primary responsibility, she would have motivated the employees in recognition of the change. For a smooth transition, the need to undertake crucial change should come from the employees. Secondly, the organization should adopt honest communication to the employees. Honest communication strategy refers to relying on trustworthy information in a timely manner. By creating a two-way communication strategy, Beer would have created a mechanism of obtaining reliable feedback from employees. In creating a feedback mechanism, Beer would be able to diagnose areas of operational challenges for the employees and working on their suggestion would help create a relevant Beer Steward change package. Certainly, the armchair change strategy would not lead to meaningful strategy (Matha & Boehm 2008). O&M Six-month Communication Plan Within the first six months of Beer Stewardship change strategy, the main objective of communication is to develop an upward and downward communication systematically. O&M Six-month Communication Plan should involve creating an internal communication policy that is steamed on creating upward and downward communication. In any change process, the CEO should be willing to listen to employees, share the organization new vision, mission statement, and explain the relevance of the need for change. In addition, the effectiveness of managing change comes from practicing precise and timely communication. Nothing substantial will yield from a dictatorial push for change. The primary concern of the Beer stewardship change strategy was the perception that the CEO failed in adopting a systematic approach to change. The failure of critical communication was a serious omission that made employees mere spectators in a change program that they were to execute. The first six months, should see the creation of a serious, consistent communication (Matha & Boehm 2008). The initial six months should focus on eliciting communication from the employees through giving an assignment on areas the feelings change is inevitable. The period should see an open door policy that allows the suggestion for critical areas of change. Needs identification should take the first six months. The results should be comprehensive and precise on why and when should the change be executed. In addition, the list of areas of change should resonate across the departments (Matha & Boehm 2008). Secondly, after needs identification, the management should embark on collecting suggestion on a better approach to improving brand on the Beer Stewardship package. During this two-month phase, the communication line should include three-tire communication channels. These are vertical, horizontal and external channels. External channels will involve expert policy advisors and structural organization advisors. This is a critical stage of communication in organizational change strategy. Lastly, the next two months should see the execution of Beer Steward change. While executing the change communication is a critical component of success. Through monitoring and evaluation, the two-way communication strategy will create a close monitoring of the project and the CEO and management team remains updated. The employees should understand that the organization has been consistently underperforming, and the Beer Steward strategy is a purposeful action that would see the organization back to its original position. In addition, the employees should know that change is not Beer's personal making, but a collective effort will be needed. It is only through realizing the goal and overall purpose of the change that employees will offer meaningful support and reduce resistance tendencies. The employees, therefore, will be motivated by this inclusive approach. Conclusion Communication is certainly an important element in executing change. The report on O&M advertisement agencies points out to a new CEO Beer excitement on changing structural and brand of the company and total disregard of employees' involvement.. While the goal was worth pursuing, the CEO failed to build change on sound communication. References Beers, C. (2011). Charlotte Beers CEO Ogilvy & Mather Worldwide, at Harvard Business School, November 1995. Boston, Mass.: Harvard Business Pub. Corp.. Matha, B., & Boehm, M. (2008). Beyond the babble leadership communication, that drives results. San Francisco: Jossey-Bass. Read More