Nike Company - How to Mastermind Change in an Organization - Case Study Example

How to Mastermind Change in an Organization How to Mastermind Change in an Organization Nike Company: Background Informationand Justification Since the establishment of Nike Company in 1964, the company has been keen on the American and European market. The company makes all assortments of sports equipment and attires. These include footwear, training kits and sportswear for football, basketball, tennis and other outdoor activities amongst others. The sports apparel Nike sells are usually sold through a traditional distribution channels. The company also makes customized team sportswear for various clubs where it has contracts. The United States counts for the largest market share that Nike enjoys in its sales and marketing. Apart from North America, the company also operates in Western Europe, China, Central and Eastern Europe, Japan and other emerging markets. Every geographic area has a target market segment. Such geographic segments are the ones that execute direct consumer supplies (Nike Annual Report, 2013). Nike has not taken the African market as seriously as it should. It is in this regard that this paper shall analyze the organizational change using Kotter’s Eight Step change in the context of Nike Company. The assumption in this approach is that the indecision to invest in and reap returns from the African market makes the company ineffective in global competition with other competitors like Adidas. The desired change in the company would be best executed through Kotter’s approach (Kotter, 2012). This is a change seen through the prism of strategic leadership and strategic operations of the company. Using Kotter’s Model to Mastermind Change in Nike Company Having analyzed the nature of operations of Nike Company, marketing strategies and the distribution segments, it is observable that any change has to be approached carefully. This is particularly so since the current practice has rather become a culture of the organization. The intended change, therefore, should flow downwards from the CEO to the board, the senior management, other management organs, team leaders and employees of the company. Creating Urgency In order for the Nike CEO to sell the idea successfully, he will have to create a sense of urgency within the context of the context of the organization. As far as the operations of Nike are concerned, the sense of urgency in this new market (Africa) is preemptive. From the fact that other companies such as Coca Cola have been keen on improving advertisement on the African continent, and from the fact that market analysts have predicted the growth of African market, the CEO should convince the board and the senior management on this market. The motivation for this market should be the anticipated future prospects as it grows. It may be expensive to enter this market when other competitors such as Adidas and Puma amongst others have entered. The sense of urgency in this case is the need to invest in this market while it is still cheap to do so. Forming a Powerful Coalition Through strategic leadership, the CEO should move from the initial point where the decision was briefed to the company decision makers and stakeholder. At the board level, the CEO should identify the members who are very positive, unbiased and less skeptical about the new project. He should discuss with them in details all the possibilities in this proposed new market. This can take place at individual level. The same should happen internally at the senior management level and other management levels all the way to the employees. Those who strongly support the idea will make the best team with which to execute the idea when the time comes. The CEO should go out of his comfort zone to get the feeling of employees on this issue in person. This also helps in making sure that he is easily understood through individual interaction. Creating a Vision for Change While interaction with the various levels of management at the company, the CEO should have created a vision for the change that he seeks. Such a vision should entail the values of the company. It should also be presented in a manner that is easily understood to all employees and stakeholders. For instance, the CEO in this case should emphasize his vision that as an emerging market, the company and employees stand to benefit a lot in this new environment. At the formative stages for this project, the CEO may also incorporate ideas and views of stakeholders to the extent that they are consistent with the wider vision. This will help ensure that the proposed Nike subsidiary picks on smoothly. Communicating the Vision It is only after the CEO has gathered relevant information that he can communicate the final vision to stakeholders. The initial stage of vision creation should be more of a brainstorming phase in which he gets to know the feeling on the ground. As the owner of the original idea, the CEO should be clear about his vision of the venture. For instance, he should have done research and settled on which area to establish the new subsidiary. In this case, the CEO should communicate his change vision why exploiting the Eastern and Central Africa through an establishment in Nairobi-Kenya is a good start before investing in South Africa. The essence of African market is likely to receive support since it is also a counter for Chinese Li Ning in the face of China’s invasion of the African markets. Frequent communication on the progress and development of the vision through memos and other communication mechanisms will be an appropriate step towards achieving the change. Removing Obstacles It is quite a common thing to find those who do not share the same vision during a change process. For this Nike case, the CEO should keep in touch with his project teams that he had appointed earlier and weed out those resisting the change. If at all the company is going to implement the proposal, then the CEO is better placed to work with those who believe in his vision for the new market. The new market presents a turning point for sales and expansion. This sort of change has the potential to plummet or improve profits for the company. Making quick decisions and keen follow-ups is critical during this stage of change. Any barrier that potentially threatens establishment of the new subsidiary if the board had given a go ahead should be removed immediately. Creating Short-Term Wins It would do the company better if it makes the ground works for the establishments part of the initial short term wins. This should be in the form of making inquiries and conducting pilot assessments. Having a project management timetable should help a lot with the short-term wins. For instance, the CEO should mandate the team to visit the selected country and report back. Advanced assessment of labor related issues, government bureaucracies and other cost factors are critical areas that the Nike CEO should task the project team to finish within a short period. Meeting such targets should is an indicator the company is on the positive track after being given a go ahead by the board. The short-term wins should be critical deliverables that are achievable within a short time. Building on the Change The CEO should be careful not to declare success on the project too soon. Instead, he should continue working with the implementation team on the change. Even where something may go wrong, such should provide an opportunity for sealing all the loopholes that may exist. It is also important that the company launches the new market on a medium scale and gives it more room to grow. The change that the CEO seeks on behalf of Nike should be built with time. What is important is the takeoff of the change. This is achievable through setting the right goals and working towards achieving such goals for the change. Even where there is a win, the change process should allow for assessment of where there is a need for improvement. Anchoring the Changes in the Corporate Culture As a subsidiary of Nike Incorporation, the CEO should assure employees that the new subsidiary would function with the structures and culture of the current organization. The CEO can do this through public recognition of the members of the implementation team that have made commendable contributions to the project. The new team that is being trained in readiness for the management of the new market should also be trained based on the values of the organization. The change should be visible in every aspect of Nike operations so that the concept is sold until it is part of the organization in the employees’ hearts. References Burke, W.W. (2013). Organization Change: Theory and Practice. Thousand Oaks: SAGE Publications. Kotter. P.J. (2012). Leading Change. Boston: Harvard Business Review Press. Mataen, D. (2012). Africa - The Ultimate Frontier Market: A guide to the business and investment opportunities in emerging Africa. Petersfield: Harriman House. Nike (2013). Nike, Inc. Annual Report On Form 10-K. Read More