Managing Change - Coursework Example

Managing Change Concept of ‘Hard’ and ‘Soft’ issues of change with example of Canon Inc. and reasons why managing change is difficult College/ University Date Introduction Every organization needs to implement or manage changes with changing environment. When organization fails to manage changes, it will be labeled as obsolete by the market. Change management is a set of processes that is applied to ensure that significant and required changes are implemented in an orderly, controlled and systematic way to effect organizational change (tech-faq.com). This piece of research work is an attempt to describe the concept of soft and hard issue for change management. With the examples of Canon, this work analyses hard issues of change management and it explains why it is generally difficult to manage hard issues. Change management of soft and hard issues Changes within an organization can be of different nature like merger or acquisition, leadership change, customer orientation, product differentiation etc. When thinking about changes and related issues, we think about ‘hard’ changes like new processes, new firm leadership or merger come to the mind. There are soft issues that are invisible in nature. Solving communication troubles, breaking down barriers among various groups and improving management effectiveness are examples of soft changes (Paulson, 2007). According to McCalman and Paton (1992), hard issues of change management are purely technical or mechanistic and are scientific or engineering problems. In soft issues, personal relations and emotional responses are predominated (Managing change, p 83). Paton and McCalman (2008) emphasize that pure technical changes, that are 100 % hard issues, will be characterized by a reasonably static change environment, clear quantifiable objectives and constraints and immediate implications. These sorts of problems are uncommon because some form of human interface can generally be found when one digs deep enough (p. 23). Where there are situations in an organization that have 100% people orientation, it can be termed as ‘soft’ issues of change management. Objectives and time scales will be unclear and the affected environment will be dynamic or difficult to be specified (Paton and McCalman, 2008, p. 23). Canon and ‘hard issues’ of managing change Canon Inc is a Multinational Company based in Japan leading markets for compact digital cameras and personal use printers. According to Tyson (1997), Canon’s business development strategy was a blueprint for successful management activities. Its efficient management strategy helps Canon access a strong market and establish its niche market (p. 186). Canon has proved as No 1 in Total Copier market, A 3 color copier and its segments. It could achieve this long term objective of becoming No 1 in copier market through continuous restructuring and effective change management as well. Heller (2005) emphasized that the force behind Canon’s growth to world level stature was Ryuzaburo Kaku and he acted on the basic principle that change is always opportunity. He waited for technological advance (thinkingmanagers.com). Canon was successful in using typewriter opportunity effectively, but IBM’s behavior was of rich and powerful company and it was reluctant to change from their traditional path. Canon’s example shows that by managing ‘hard’ issues effectively it could become market leader and successful in creating its own brand. For years, Xerox Corporation was dominant in the US copier market with its strategy by emphasizing fast machines to those buyers who need copier for corporate use. But in 1975, Canon identified a way that can help them enter US market and the management planned effective ‘change’ in its management and marketing strategy. Canon found and discovered a market which was hidden and untouched by Xerox. Xerox had concentrated on corporate buyers. Canon uncovered this hidden sector of the potential market and developed strategies for creating a market for personal copiers. It can be viewed as ‘hard issue’ of change management that Canon changed its products, market and overall process to personal copier. Pietersen (2002) described the way that Canon managed its ‘change’ from photocopier to personal copier and personal printer markets. ‘Deciding not to go head- to head with Xerox on its home domain, Canon emphasized the price and quality of its machines and it targeted mostly to individual consumers and small business. This has proved to be successful strategy which built up higher reputation for Canon among customers (p. 83). Canon’s ‘change’ management strategy to move from competitive strategy to Co-operative strategy can be said to characterized by quantifiable objectives, system based problem and limited range of solutions, and therefore, it was ‘hard’ issue of change management for Canon. Canon thought to discover new horizon of the market that is uncovered by Xerox and to design, develop and establish new product that can attract a large number of customers. It is purely technical, engineering and scientific change and hence it is merely a ‘hard’ issue of change management. The market share of Xerox was accounted to be around 86% in 1974, but when Canon entered the US photocopier market with its effective ‘change management’, Xerox’s market was declined to around 17% in 1984 and 9% in 2006. Lynch (2006) described that Canon developed technology that was totally different from Xerox’s technology and patents and it discovered a small photocopier market that was not served by Xerox (p. 500). The fundamental principle of change management is that the change must be clearly understood and communicated (Heller, 2005). Canon was very clear what led them make changes in their overall business activities and it was clearly communicated to the management levels as well. Why Managing ‘hard’ issue is difficult Kurt Lewin investigated the phenomenon of change and he described three-stage model of change which is useful in understanding change process. The first stage is ‘unfreezing’ that involves initial resistance. The current situation can be understood because it is deficient is some ways. In the second stage called ‘movement’, the new plan is introduced and the transitional period is a period of upheaval and confusion. The third stage is ‘refreezing’ in which the new mindset is reinforced and new patterns of behavior become part of the organizational process (Managing change, p. 87, Menezes, 2007). It is observed that managing change is difficult because spearheading change projects in organization are in effect of very difficult. Maintaining and keeping the change in this middle ground is getting very difficult. In most large business organizations, there are a number of both internal and external factors that force them to make changes in their business activities and this in turn to be difficult process. Pyzdek (2003) argue that change is difficult, disruptive, expensive and major cause of errors. Organizations face difficulties with managing change because of leadership as some organizations choose to maintain product leadership. Competition causes difficulty of change because competitors tend to improve their products. Technological advances, training requirements, rules and regulations and customer demands are some other factors that make change difficult to the organization concerned. Conclusion This work details change management with the example of Canon Inc. This research work analyses factors related to soft and hard issues of change management and finds out why managing change is difficult. References Heller R (April 2005), Managing Change: Preparing for the unexpected in business Thinkingmanagers.com, retrieved from http://www.thinkingmanagers.com/management/managing-change.php Lynch R (2006), Corporate Strategy -4th. Edition, FT Prentice Hall Menezes J.P (Sep 2007), Why is managing change so difficult?, Retrieved from http://www.itworldcanada.com/blogs/cio/2007/09/27/why-is-managing-change-so-difficult/48297/ Paton R and McCalman J (2008), Change Management: A Guide to Effective Implementation, Illustrated 3 rd edition, SAGE Publications Ltd Paulson T (July 2007), "Dont struggle against change; learn to use it to your advantage", Change management - getting business prepared, deloitte.com, Retrieved from https://www.deloitte.com/view/en_LU/lu/services/consulting/hcas/change-management-corporate-culture/press-release/8dc7071de11fb110VgnVCM100000ba42f00aRCRD.htm Pietersen W (2002), Reinventing strategy: using strategic learning to create and sustain breakthrough performance, John Wiley and Sons Pyzdek T (2003), The Six Sigma handbook: a complete guide for green belts, black belts, and managers at all levels, revised and Iluustrated 2nd edition, McGraw-Hill Professional, Tech-faq.com (2009), What is change management, Retrieved from http://www.tech-faq.com/change-management.shtml Tyson K W M (1997), Competition in the 21st Century, CRC Press Read More