Change Management - Bicycle Department at Wilders Department Store - Case Study Example

Running Header: Assessment Item- Change Management Report Student’s Name: Name of Institution: Instructor’s Name: Course Code: Date of Submission: Executive Summary This paper highlights a case study on Wilder’s department store, a business organization that deals with the sale of bikes to clients. The paper looks at the changes that the Wilders department store is currently experiencing and the changes that might occur in future. This report has made use of the models of diagnosis for change so as to highlight on particular aspects of change within the organization and find out how the organization can deal with the changes it is facing. The report also uses change management models to explain how the organization can manage the changes that it is going through. Change is a very risky activity that has been found to be inevitable in very many aspects of human life. In organizations, changes take place in different ways, almost on a daily basis. There are many different factors that give an organization the pressure to change. These factors may include external factors, which arise from the environmental pressures such as geopolitics, competition, market decline, reputability and credibility, and internal factors which are brought about by pressures coming from the organization. Internal factors may include the need for integration, collaboration and growth. In order to remain successful in this ever-changing business environment, managers must adopt strategic change management practices that will ensure their organizations respond effectively to both internal and external pressures. Table of Contents Executive Summary 2 Table of Contents 3 Change in organizations 4 Background Information on the Wilder Department Store 6 The Scenario at the Bicycle Department at Wilder Department Store 6 Diagnosis for Change Model 7 Models of Implementing Change 9 Action Plan 12 Conclusion 14 Introduction Just like any other organization, the Wilder department store has been experiencing a number of changes over the years. This report is based on the realization of the fact that the pressure for change within organizations is ever so constant according to Limerick & Cunnington (1993). These pressures lead most organizations to shape and develop their capabilities so as to enhance their capacities to improve their outcomes (Dawson 2003). The pressures for change within organizations can be very small or very large. It is the duty of the managers to enhance the capacities of their organizations to be able to deal effectively with change (Gallos 2006). Managers need to understand the role of both external and internal factors that bring about change in organizations so that they can know how best to deal with these changes. This may also involve finding out which of the factors, whether internal or external, inhibit the process of change within an organization. Both the internal and external forces of change can either promote change in the organization or hamper it as argued by Beer & Nohria (2000). Change in organizations In many organizations, change is sometimes met with a lot of resistance while in others, it is embraced and accepted well. Managers must therefore be ready to deal with both of these scenarios when their organizations are undergoing through major or minor changes. Resistance usually implies that not every worker is comfortable with the changes taking place and the entire change program as illustrated by Dawson (2003). Managerial skills and experiences can be use deal with resistance to change. In any change program within an organization, resistance is an outcome that should be expected and managers should be able to overcome this resistance, even though this is not always possible as argued by Birchall & Lyons (1995). All in all, resistance is a short-lived affair that cannot stop the process of change. Change is bound to take place within any given organization, whether there is resistance or not. It is up to the managers to show the others that resistance does not help the organization in any way. Change should be effectively managed to ensure that organizations continue to thrive in the highly competitive business environment according to Farias & Johnson (2000). When change is not interpreted or communicated well, resistance is definitely bound to occur because change will be seen as a bad thing. The managers therefore have to clarify the meaning of change to their workers and make them understand that change is good for the organization and for them as argued by Limerick & Cunnington (1993). Research shows that resistance is one of the greatest challenges facing the process of change in organizations. Most of the time, those that oppose change are quick to find faults, ridicule, appeal to fear and be very critical of the entire process of change as illustrated by Birchall & Lyons (1995). People resisting change tend to use facts selectively and they end up accusing or blaming others for things that are not even their fault. They sometimes try to sabotage the change process by distorting facts, intimidating or threatening others, manipulating them, undermining or trying to block the process of change, and starting rumors or false arguments as argued by Farias & Johnson (2000). Research has shown that change is resisted because of a number of reasons. The most common reason is the uncertainty that comes with the unknown. People resist change because they do not know the outcomes of that change according to Limerick & Cunnington (1993). Another reason is that people get used to a particular way of doing things within an organization. They get attached to organizational cultures and ways of conducting business to such an extent that they consider change as interference. In this report, the Wilders Department Store has been studied and analyzed so as to bring to light the various changes taking place in the organization. The report has also used a diagnosis model to explain the change process and another model to explain the process of implementing change within the organization as argued by Birchall & Lyons (1995). Background Information on the Wilder Department Store The Wilders department store sells bicycles to its customers. It has a whole department charged with the responsibility of assembling and selling bicycles. The Wilders department store sell already assembled bicycles (Hamel & Prahalad 1994). It also sells boxed bicycles to customers who prefer to take home boxed bicycles. The store charges an extra $ 25 for the assembly of bicycles. The bike section has been moved recently and is now near the sporting goods and toys section. The Scenario at the Bicycle Department at Wilder Department Store The organization is currently faced with many challenges such as: high number of customers with Christmas coming soon; selling more bikes than the man can assemble in a day; moving the bicycle department next to the sporting goods and toys sections; the same cashier desk is being used to process the sales for these three departments; all dockets on assembled and unassembled bicycles as well as lay-by dockets being placed by clerks in the back of the notebook; congestion at the desk which is increasingly getting to the nerves of customers and sales personnel; bicycles needed by several department stores all being obtained from the same warehouse; lack of storage space for storing unsold boxed bicycles; bicycles on lay-by and assembled bicycles; and bicycles not being adequately assembled in time for Christmas among many other problems. With all these in mind, it is clear that a problem exists within the Wilder department store and the problem calls for drastic changes to be made so as to ensure that the department remains effective in its service delivery as illustrated by Birchall & Lyons (1995). Diagnosis for Change Model This is an instrument that can be applied to the management of change at Wilder to ensure that the process of change is successful. The model used here will also help to reduce the complexity of the situation that the organization is facing. The aspects of the organization that need the most urgent change will be identified so as to give room for the most appropriate action to be taken by the management as illustrated by Birchall & Lyons (1995). The organizational characteristics will also be discussed in great detail, thereby allowing the management to know what to do to change the situation. The model will also provide a reliable guide to the sequence of events that need to be undertaken so as to achieve the desired changes that will ensure the organization is rescued from its current situation (Limerick & Cunnington 1993). The actions taken by the organization will be guided by the model that is chosen because the model is meant to act as a diagnosis to the problems faced by the organization according to Hamel & Prahalad (1994). The model that has been used for the case of Wilder department store is the six-box organizational model. This model was proposed by Marvin Weisbord and is one of the earliest change diagnostic models that have ever existed. This model is based on six important variables, namely: Purpose, Structure, Rewards, Helpful mechanisms, Relationships and Leadership (Limerick & Cunnington 1993). The purpose has to do with what the organization is about. The department has to identify what its core business is specifically about. This will help the company to remain on track and do exactly what is expected of it according to Hamel & Prahalad (1994). In this case, the core business of the department is to sell bicycles to its clients. It should remain focused on doing this and nothing else. The structure has to do with how work is divided up in the organization. The management has to establish a clear structure whereby every personnel understand their duties, roles and responsibilities. In the rewards section, the management has to change the way it gives incentives to its workers. Each worker is supposed to receive incentives for their efforts and every task they accomplish. Helpful mechanisms have to do with the technologies that are used to coordinate all the useful activities of the department. In this case, the department should invest in useful mechanisms to help the young man who singlehandedly assembles the bikes. This will ensure that the process is much faster and reliable. Relationships are concerned with how people treat each other and how conflicts are managed within the organization. The organization has to come up with ways of ensuring that conflicts are resolved in the best way possible (Hamel & Prahalad 1994). It can use technology to do this. The misunderstandings lead to the organization being ineffective since a lot of time is used in resolving conflicts instead of working and doing other meaningful duties (Limerick & Cunnington 1993). The last variable in the model is leadership. Here, the organization has to have an effective management team that will ensure everything is on track. The management team will be responsible for coordinating all the activities of the department and harmonizing the functions of the department (Limerick & Cunnington 1993). These changes are pro-active changes because they have to keep reoccurring from time to time so as to be fruitful. The many problems faced by the organization can be solved in a number of ways. First, the personnel who assemble the bikes can be increased so that one man is not left with all the work since he it is too much for him to be effective and efficient. The department can also ensure that it assembles bikes in time for the preparation of Christmas so that they are ready by that time. Other warehouses can be opened up to increase the storage space and also to stop the scenario where all bikes have to be picked from one warehouse. The congestion at the desk can be reduced by coming up with an electronic system where the workers will not have to go to a notebook at the cashier. Models of Implementing Change Such models are meant to guide the process of change. The model selected here is the Anderson and Anderson (2001) nine phase change process model. This model has several variables such as the preparation for leading the change, creating organizational vision, commitment and capacity, assessing the situation and determining design requirements, designing the desired state, analyzing the impact, planning and organizing the implementation, implementing the change, celebrating and integrating the new state and finally learning and correcting the course as argued by Limerick & Cunnington (1993). This model is suitable for this scenario because it breaks down the entire process of change into simple and manageable phases or stages that are meant to achieve one particular goal at a time. The model is also designed in logical and sequential steps where one step leads to the next. It is therefore effective in implementing the much desired change. In the first step, the preparation for leading the change, the management of Wilder department store should select a team that will be in charge of the entire process of implementing the change. This team will head and lead the rest of the staff members in making the desired changes for the overall good of the organization. The team that is chosen to head the change implementation process must ensure that it understands why the changes are necessary and how to implement them through others. The next step, creating organizational vision, commitment and capacity, involves ensuring that every member of the organization is committed to implementing the changes. This involves creating common goals that all the members of an organization are expected to work towards so as to implement the changes. This also makes the members of the organization to remain committed to the process of implementing the changes. The third step in the Anderson and Anderson nine phase change process model involves assessing the situation and determining design requirements. This entails critically analyzing the situation that has led to the need for change and determining the requirements of implementing the desired changes. Assessing the situation will lead to a better understanding of what is going on and what should be done in terms of implementing the changes within the organization. It also highlights the risks involved and presents an opportunity for the organization to mitigate and control these risks. The organization can know the requirements of the change implementation process. The fourth step involves designing the desired state. After the assessment has been done and the design requirements established, this next step involves designing the actual requirements according to the result of the assessment to determine the design requirements. This is basically putting up the designs that were recommended through the prior assessment process. The fifth step in the Anderson and Anderson nine phase change process model is about analyzing the impact. This involves carefully assessing the impacts that the change implementation process may have on the organization. Assessing and analyzing the impact will put the company in a position of knowing the best actions to take when implementing the changes. This can also be used to determine the actions to be taken in case a problem arises when the company is in the process of implementing changes. The sixth step is all about planning and organizing the implementation. This involves putting down of steps and strategies that the change implementation process will follow. It also involves making arrangements for the provision of all resources and materials that will be needed during the change implementation process. The seventh step in this model entails implementing the change. This is the actual implementation of the proposed changes after all the other steps have been taken. After careful analysis, preparation and provision of requirements, the actual changes must now be implemented. They must be made to take effect in the organization. The next step in the Anderson and Anderson model of change implementation is the celebrating and integrating the new state. It is said that if these steps are correctly followed, the organization is highly likely to be successful in the implementation of the desired changes. The organization therefore needs to celebrate the success so as to encourage the members to continue implementing positive changes successfully. This step also involves the interpretation of the new acquires state so that it can be understood by all that changes have taken place in the organization. The last step in the Anderson and Anderson model involves learning and correcting the course. This acts as a follow up to the entire change implementation process. It also aids in the correction of any mistakes that might have occurred during the process or that may occur afterwards. Action Plan Project Name: Wilder Department Store Case study report Prepared by: Date (MM/DD/YYYY): 09/26/2011 1.0 Purpose Change Management Plan objectives To review and approve the processes of change management To help in the coordination of changes in the entire project To inform major stakeholders of the approved changes 2.0 Goals Change Management Plan goals: To consider the requests made to implement changes. To identify changes, evaluate them, view the progress, define changes and approve them. To make adjustments to project plans. To facilitate dialogue among major stakeholders To make deliberations on changes and pass on this information to the concerned parties 3.0 Responsibilities Members to Change Management Their Responsibilities A Project Team and Change Manager To Design the Change Management Plan Departmental Manager To Facilitate and execute change management activities. To Review change management activities together with the seniors. The Executive Committee Ensuring adequate allocation of resources and funding for change execution. Monitoring Change Management Plan implementation process 4. Process The Change Management process: 1. Submitting Change Request (CR) 2. Reviewing CRs for approval or disapproval 3. Developing recommendations on the approved CRs. 4. Approval or rejection of the recommendations 5. If accepted, updating of project documents follows. 6. Notifying all the stakeholders to the change process. 1. CRs reviewing Reject: Defer to a date: Analysis consideration by change team: 2. reviewing pending CRs. Reject: Defer to a date: Accept for analysis: 3. Reviewing of the analysis possible outcomes: Reject: Accept: Return for further analysis: 4. Accepted CRs are forwarded to the change manager. Possible outcomes: Reject: Accept: Return for further analysis: Conclusion In conclusion, the Wilder department store is in a crisis because of the situation that it is facing. The department needs to change the way it operates so that it can continue to thrive among its competitors. Change is necessary because the company has been experiencing some problems that need to be resolved. The problems with meeting deadlines, assembling bicycles and recording of information have to be dealt with. The models discussed above can be used to diagnose the problems that call for changes and also to implement the proposed changes. 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