Leadership and Management of Strategic Change - Term Paper Example

Leadership and Management of Strategic Change

Table of Contents

1.0 Introduction4

1.1 Background4

1.2 Purpose4

1.3 Objectives5

1.4 Structure5

2.0 Leadership and Change management5

2.1 Leadership and Corporate Culture impact on success5

2.2 Models related to Change Management and leadership8

2.2.1 Kurt Lewin Change Management9

2.2.2 Contingency Theory11

2.2.3 Hersey-Blanchard Situational leadership Theory12

2.2.4 Lewin’s Force Field Analysis14

3.0 Apple Inc.16

3.1 Changes in Leadership of Apple Inc.17

3.1.1 Transformation Leadership17

3.1.2 Kurt-Lewin Change Model18

3.1.3 Hershey Blanchard Situational Model Theory for Apple Inc20

3.1.4 Lewin’s Force Field Model21

4.0 Impacts of Change Management23

24

5.0 Recommendations26

6.0 Conclusion29

Reference List30

• 1.0 Introduction
  • 1.1 Background

Change management is a process under which, a corporation in order to be compatible with the altering trend and technology, adopts and implements new processes and applications (Cameron and Green, 2015). There are varied types of changes that can be undertaken in the corporation, for instance, change in culture, implementing new technologies or re-engineering the overall process of the corporation (Cameron and Green, 2015). Kreutzer and Land (2015) claims that corporations in order to be competitive and improve their efficiency, comes up with new projects that can fulfil the requirement of consumers. Currently, corporations are operating in a more complex and competitive environment than before to expand its sustainability in the long-run (Geppert, Matten and Williams, 2016). Change management impacts the mental and working capabilities of employees to a great extent. When people’s perception regarding change management is negative, it leads to dissatisfaction and poor performance that affects the overall effectiveness of corporation. Therefore, corporations while initiating change at their work processes must make the people understand the necessity for change and the way it is going to impact the competency of corporations.

• • 1.2 Purpose
• To understand the importance of change management, various issues and challenges faced by corporations while initiating change.
  • 1.3 Objectives
• To identify the importance of leadership and change models in the corporations.
• The role of leadership and motivation in undertaking change in the corporations.
• To understand the way corporation managed to overcome complexities of change and outcomes achieved.
  • 1.4 Structure

The structure of report is divided in four sections; the first section is the introduction under which purpose and objectives of doing the paper is discussed. The next section is literature review that will highlight the importance of leadership and change in corporations with reference to different models. In the third section of paper, the application of change and leadership models on a company is going to be described. Based on findings and the way company underwent change conclusion and recommendations will be made in the last section.

• 2.0 Leadership and Change management
  • 2.1 Leadership and Corporate Culture impact on success

Culture

Verma (2016) explains the term culture as beliefs that influence the behaviour and working of corporations to achieve their stated goals in a desired manner. Hofstede defined culture as “collecting programming of mind that differentiates the members of one group from another” (Miner, 2015). Positive work culture is required in the successful implementation of change where a corporation even if having a best strategy can fail. Terry (2015) argues that negative work culture of the corporation prevents it from undertaking strategic changes that can bring sustainability to the corporation.

Leadership

Leadership is the process under which the followers are motivated and inspired by a leader to undertake a specific path that can lead success to the corporation (Miner, 2015). Leadership theories and traits have always received interest of scholars where early scholars like Thomas Carlyle developed Great Man Theory model (Miner, 2015). The Great Man theory model emphasised the importance of leadership traits that must be present in a leader to encourage his followers. For instance, intelligence and charisma was the two important features that were essentials traits required by the leader in eighteenth century (Miner, 2015). Various scholars and theorists after the eighteen century came up with models that disagreed the concept of “trait” that must be essential for leadership (Miner, 2015). The Post leadership model like contingency theory and transformation leadership has gained importance in twenty first century and is considered essential for effective change management in corporations (Miner, 2015).

Figure 1 illustrates three important components that are required for successful change management in a corporation. These components are culture, people and process that must be incorporated and dealt properly by management to avoid complexities in undertaking change.

Figure 1: Elements of Change Process

(Source: Miner, 2015)

Reasons for Change management in response to strategic change

• Change management is required to be undertaken by corporations in order to create place against its competitors in the external environment (Miner, 2015).
• Adapting to the new innovative techniques and processes creates competitive edge over competitors but also helps in generating loyalty among consumers (Miner, 2015).

Management Issues That Arises from Strategic Change and to overcome them

Though change management is essential step to be undertaken by corporations, yet it faces certain issues in its implementation as:

• Perception of people differs as per their personality and thought process so they react differently to change (Verma, 2016).
• Personnel have different fundamental needs to fulfil that create difficulty for corporations in implementing change (Verma, 2016).
• Change management often creates uncertain fear in the minds of people that must be dealt properly by administration to achieve growth (Verma, 2016).
• Adaptive work culture requires adaptive leadership in order to control the situation by offering proper directions, managing conflicts and motivating the personnel for change. Often, leaders fail in dealing efficiently with requirement of situation (Verma, 2016).
  • 2.2 Models related to Change Management and leadership

Figure 2 illustrates a framework of change management which includes series of activities like culture of organisation, suitable leadership, people capabilities in adapting changes, execution and proper communication for effective performance of corporations. There are various models related with implementing change and proper leadership that is going to be described in this section. Verma (2016) claims that in order to have co-ordinating approach in implementing change, manager must be known about the steps required for creating positive work environment.

Figure 2: Framework for Change Management

(Source: Miner, 2015)

• • • 2.2.1 Kurt Lewin Change Management

Kurt Lewin is among the initial scholars that invented the model of change as shown in figure 3 which consist of three steps i.e. unfreeze, change and refreeze. In opinion of Booth (2015) change management requires proper communication among the persons that are going to be affected by change. When communication among people regarding the change is not done efficiently, it creates a sense of fear and mental instability that leads to failure (Geppert, Matten and Williams, 2016).

Figure 3: Kurt Lewin Change Model

(Source: Streeter, 2015)

Unfreezing before change

This is the first step of change management where employees are informed regarding the type of change that is going to take place in the corporations’ environment. Booth (2015) argues that when employees knows the reason for change, when it is going to be undertaken and what is the motive behind sudden change they feel more comfortable. Preparing the employees mentally requires proper plan where their suggestions must also be taken into consideration to convince employees for change (Geppert, Matten and Williams, 2016).

Executing Change

Under this stage, a corporation implements change in areas like technology, structure, corporate culture and leadership. Geppert, Matten and Williams (2016) claim that proper implementation of change require efficient support and management that eliminates numerous obstacles taking position in the work culture.

Refreezing

This is the last stage of change management in which after execution of change the top personnel and managers ensures that the change undertaken becomes permanent. In order to ensure the success of change in the corporation, management can undertake certain things like publicising the results and success achieved from implemented changes (Rothaermel, 2015).

• • • 2.2.2 Contingency Theory

Contingency theory, developed by Fiedler, emphasises the impact of situation on leadership traits (Rothaermel, 2015). Under this model, there are three features that influence the yield of leaders:

• Leader-Follower alliance: The relationship which a leader shares with his follower describes the magnitude up to which the employees have trust on leader (Rothaermel, 2015). This also implies the level to which a leader can motivate his followers to initiate change and actions (Rothaermel, 2015).
• Task framework: This defines the type of tasks that are assigned to the followers, whether they are repetitive or are new for the employees (Rothaermel, 2015).
• Authority: It states the power of leaders on his followers where he frames and directs the employees to undertake actions (Rothaermel, 2015).

Geppert, Matten and Williams (2016) claims relation between leaders and employee, task and authority to a great extent depend on situations where leaders must adapt to skills. For instance, democratic leadership is followed in those corporations that want to include employees in decision-making; whereas, corporations those believe in hierarchy and authority undertakes authoritative leaders (Bucciarelli, 2015).

• • • 2.2.3 Hersey-Blanchard Situational leadership Theory

Hersey-Blanchard came up with another situational model of leadership where the leader must come up with varied skills to manage the employees (Rothaermel, 2015). Figure 4 illustrates the model of situational leadership theory in which supporting, coaching, delegating and directing are the main skills of dealing with people.

Figure 4: Hersey-Blanchard situational leadership theory

(Source: Rothaermel, 2015)

• Supporting: This leadership is required to be followed by leaders when people in the corporations are of high capabilities and different commitment level (Rothaermel, 2015).
• Coaching: This skill is suitable to deal with people those have moderate level of competency and skill and requires coaching from the leader for completing an activity (Rothaermel, 2015).
• Delegating: Leaders adapt to delegating style when the people have high capabilities and commitment towards their responsibilities. Bucciarelli (2015) claims that when people are responsible and understand the way they have to initiate tasks to have success, leaders can depend on their capability to make the work done.
• Directing: This skill is compatible for people with low competence and high commitment level. Leaders in order to make the corporations’ accomplish its motive require directing their action regularly (Rothaermel, 2015).

Bucciarelli (2015) emphasises the importance of transformational leadership in a corporations’ work culture that offers direction, supports and delegates responsibilities to personnel to make the things done. However, Booth (2015) argues with the concept of transformational leadership as it involves unethical practices where rather than giving importance to tasks, the focus is on building good relationship with employees by portraying emotions.

• • • 2.2.4 Lewin’s Force Field Analysis

As per model shown below, there are forces present in environment of a corporation that motivates and restraints the corporation for undertaking change.

Figure 5: Lewin's Force Field Model

(Source: Bucciarelli, 2015)

Streeter (2015) claims that when corporations think of undertaking change, there are two aspects linked with the transformation that can be both positive and negative. These aspects are highlighted in the table in 1:

Figure 5: Forces for Change

Forces that supports Change

Forces that restraint from Change

Globalisation

Political factors and frequent changes in exchange rate.

Level of competition

Fear of losing goodwill if not being able to compete effectively.

Requirement for efficient cross-functional teams

Lack of understanding among the personnel involved in the cross- functional teams.

Change in CEO

Fear of incapability to take the new role.

Technological Change

Not being able to implement right technological changes in order to fulfil the demand of consumers.

Social Trends

Concerned regarding Job Security.

(Source: The Forbes, 2011)

• 3.0 Apple Inc.

Apple Inc., one of the foremost companies in expertise came into existence in April, 1976 by Steve Wozniak and Steve Jobs (Bucciarelli, 2015). The company is known for its innovative technological competence and fast processors throughout the globe (Apple Inc., 2016). Apple Inc.’s tagline “Think different” shows the vision of the corporation which by regular innovation and user-friendly accessories encourage its target consumers (Apple Inc., 2016). Apple Inc. as accompany has not only initiated change management in technologies but have also experienced the shift in leadership in recent years. This section is going to highlight different leadership approaches and change company adapted in order to initiate change in the corporation.

• • 3.1 Changes in Leadership of Apple Inc.
    • 3.1.1 Transformation Leadership

Apple Inc. has experienced change in leadership pattern under three levels, in 1976 with Wozniak, in 1997 Steve Jobs and in 2011 Tim Crook as leaders (Rothaermel, 2015). Steve Jobs personality and leadership skill is considered among best personalities of century (Fortune, 2015). The corporation underwent transformation in work culture with sudden death of Steve Jobs and was replaced by Tim Crook (Fortune, 2015).

Steve Jobs as a leader was very charismatic and design-driven who with his dynamic personality transformed the digital industry from computers and android appliances to iPhones and iPads (The Forbes, 2011; Fortune, 2015). During 1970s, Apple Inc. I was launched by Wozniak which was a huge success in the market and converted the founders of the company into millionaires (Fortune, 2015). However, with introduction of numerous competitors like IBM, Dell and Compaq, the corporations started losing its market demand. Macintosh, an operating system of personal computers was launched which gradually created a niche market (Apple Inc, 2016). Steve Jobs then hired John Sculley as a partner to run the company when the company’s core identity changed as a brand offering high quality product at premium prices. Steve Jobs is perceived as a transformational leader who inspired the employees to act and imagine differently by offering his support and suggestion in completing tasks (Apple Inc., 2016). As a leader, Steve Jobs influenced the industry belonging to wireless phones, retail and computers and inspired the personnel to initiate and innovative technologies.

Fortune (2015) claims that Steve had foresightedness at his approach where he hired John Sculley to incorporate professional management in the corporation for being competitive. Moreover, the results of good leadership are often measured by performance and in the case of Apple Inc., it can be declared that the reason behind corporation’s success was efficient leadership and creative personality of Steve Jobs (Geppert, Matten and Williams, 2016). Even after the death of Steve Jobs, Tim Crook is offering its best capabilities to Apple Inc. and has kept the motivational level of employees high. The corporation recently launched i-Phone 6 and i-Phone 6s in the market which were a great success. The corporation is still now promoting the tagline of “think different” by coming up with innovative features in its gadgets and the reason behind success of the corporation was mainly because of dynamic leaders (Geppert, Matten and Williams, 2016).

• • • 3.1.2 Kurt-Lewin Change Model

Apple Inc. has experienced the change of leadership and technological phases numerous times. The application of Kurt Lewin model in Apple Inc. can be elaborated in both leadership and technological improvement where the corporation after the sudden death of CEO (Steve Jobs) and facing stiff competition from numerous competitors underwent change management.

Unfreeze

In 1997, Apple Inc. incurred a huge loss of $ 1 billion and was on the border of bankruptcy (Geppert, Matten and Williams, 2016). The sudden death of Steve Jobs in 2011 took the company in a shock as the employees became horrified with what will the future of company (Geppert, Matten and Williams, 2016). This was the unfreezing stage in Apple Inc. where the leader explained employees that the company was going to undertake change and they must not be scared as the company is not going to lose its name in the future. Tim Crook were replaced the designation of Steve Jobs was under great pressure as he was facing challenges to maintain the position of Apple Inc. as the leader (The Telegraph, 2016). Moreover, Apple Inc. under the leadership of Steve Jobs was following the blue-ocean strategy where people’s focus was more on developing innovative products where the strategy also underwent the change (The Telegraph, 2016). As per research, it is claimed that Tim Crook rather than innovating technologically focuses more on protecting the existing business model of Apple Inc. (The Telegraph, 2016).

Change

Under this stage, the change management was implemented by the company leader where Tim Crook through proper communication with employees motivated them to not lose hope on capabilities of the corporation (Miner, 2015). Tim Crook through his effective leadership capability inspired the employees to have faith and work hard for future. The leader inspired the professionals to continue with their technical innovations and launched models of i-Phone 6 and 6s successfully (Miner, 2015).

Freeze

The last step of change management is freeze under which the corporation the change and performance permanent. Launching further improved versions of i-Phones led the company to maintain its position as market leader in the market (Miner, 2015). The results of change management can be seen in figure 5 where the corporation continued to earn higher revenue and profit which reached to $ 233.7 billion and $ 53.4 billion respectively in 2015.

Figure 6: Profit and Revenue of Apple Inc from 2011 to 2015

(Source: The Telegraph, 2016)

• • • 3.1.3 Hershey Blanchard Situational Model Theory for Apple Inc

Krapfl and Kruja (2015) claim that Steve Jobs’ often used to change his leadership style as per situations. Though Steve Jobs was famous for his innovative and motivating personalities, yet there were many incidents when he practiced autocratic leadership to get the work done by his employees (Streeter, 2015). Verma (2016) argues that employees of the corporation feared to interact with Steve Jobs personally where his angry behaviour often led his employees to tears and instant firing.

An interview on Steve Jobs stated that the Apple Inc. is employing capable team that have potential to become successors but needs to be pushed to get results by implementing aggressive visions (The Telegraph, 2016). This shows the delegating skill of Steve Jobs where he believed that hiring capable people can be trustworthy, as they can take care of situations when required. Moreover, participating style of Steve Jobs can be highlighted where he involved employees for sharing their suggestions and motivating them for their good performance.

• • • 3.1.4 Lewin’s Force Field Model

Technological and leadership change in Apple Inc. is related with certain driving forces that can be applied with the model described in figure 5. In case of Apple Inc. there were many driving forces that supports the need for changing the strategies and operations which are going to be highlighted below:

Drivers for Change:

• Competitive innovation: Innovation was required by Apple Inc. in order to have sustainable growth. Cameron and Green (2015) claim that for a corporation to be strong and create place among the competitors, it requires innovating its techniques and products with recent trends. Apple inc. was formed with a vision of bringing creative and innovative products for consumer ranging from students, educators to professional working in IT industry (Cameron and Green, 2015). The corporation in order to have growth and build its brand name as an innovative entity required to come up with new products. Moreover, the corporation with entry of several other competitors in the market like Microsoft Corporation and Amazon.com required adapting technological advances. For this, Apple Inc. came up with innovative items like iPod, iPhone and Mac with features of touch-screen and 3G in 2007 (Cameron and Green, 2015). Even today, these products are highly demanded in the market as the corporation has the first mover advantage where it primarily came up with these items in the market and create history in music and technology field (Cameron and Green, 2015).
• Needs for change in Supply Chain and Working conditions: Apple Inc. was facing issues with high-tech systems where working conditions for the Manufacturing units were reported poor (Cameron and Green, 2015). For instance, Foxconn factories, the largest accumulating partner of Apple Inc. were reported of not having proper working conditions for the employees (Verma, 2016). As per research, the factory consisted of more than 900,000 workers, majority of which were students between 16 to 18 years and were forced to labour for period of 2 years (Verma, 2016). Wall Street Journal published a report that the corporation was not having friendly relations with its suppliers (Verma, 2016). Samsung was among the largest supplier that offered LCD screens that stopped their business on grounds of non co-operation on part of Apple Inc. (Verma, 2016). This led to dissatisfaction in Apple’s target consumers where the corporations made them wait for the delivery of problems for almost months (Verma, 2016).
• Creating Sustainable growth and Goodwill in the market: Change in technological aspects as well as leadership was the requirement for the corporations. The company was facing allegations from the society for not implementing ethical code of conduct by forcing the youth for work (Verma, 2016). Moreover, late delivery of items due to non-availability of suppliers required to change the work culture as well as performance of corporations (Verma, 2016).
• 4.0 Impacts of Change Management

In order to experience success in the market, Apple Inc. implemented change in leadership, work culture and technology which gave significant results in driving growth for the corporations. After facing allegations for not having good working conditions and relationship for suppliers, the corporation implemented corporate social responsibilities activities throughout the globe. For instance, in China, Apple Supplier EHS Academy was launched that provided training to its suppliers to improve their health (Verma, 2016). In favour, students who were working in the corporations, vocational schools were implemented in which 12,000 students participated in nearly 130 schools to ensure on-the-job training was imparted to them (Apple Inc, 2016).

Apple Inc. developed a code of conduct for improving working conditions for personnel related with the company in any way (Apple Inc, 2016). This code of conduct was published publically in 2005 in order to promote transparency and inform its stakeholders regarding every minute detail (Apple Inc, 2016). The new work culture and leadership of Apple Inc. promoted employees and suppliers in co-operating with the company as shown in figure 7. The cumulative and annual participation from the workers is illustrated in the figure where the number increased from 2K in 2007 to 3.8 Million people in 2013. Bucciarelli (2015) claim that the corporation offer numerous learning opportunities to its workers that has helped it to overcome drawbacks and create loyalty. As the company started taking care of its stakeholders with an integrated approach, the returns and financial performance of Apple Inc. increased constantly.

Figure 7: Participation in Workers' Right Training

(Source: Apple Inc., 2014)

The annual sales for the corporation’s products in various regions like Europe and Greater China from 2013 to 2015 have been shown in annual report of Apple Inc. in figure 8. Apple Inc. has experienced an increase in product sales throughout the areas served wherein 2013, the total net sales was $ 170, 910 millions which increased to $ 233,715 in 2015.

Figure 8: Unit Sales of product in Target Segment

(Source: United States Securities and Exchange Commission, 2015)

Apple Inc.’s product demand is good where consumers like the innovative features offered by the corporation. The market share of Apple iPhone in smartphone sales is shown in figure 9 where the corporation experienced the highest market share in 2011 to 2012 with 23% share.

Figure 9: Market Share of Apple's iPhone in the industry

(Source: The Statistical Portal, 2016)

Based on discussions, it is observed that Apple Inc. has managed to undertake change in its leadership, work culture and technology efficiently.

• 5.0 Recommendations

Apple Inc. has undergone various changes in its culture, leadership and technologies which can result in fear and stress among the employees. Undergoing changes so frequently in any corporation can lead negativity among employees and the leaders must be capable to manage the team to implement further change.

Apple Inc. can undertake the change management step by step as described by the Kotter’s change management model. The model follows an integrated approach where the reason behind the change is highlighted and based on it, certain parameters are created. For Apple Inc. to come up with more frequent changes, the steps that can be followed are:

• Create Urgency: External and internal environment of any corporation are unpredictable where change can be initiated anytime. For instance, sudden strike from employees, increased competition in the field or change in consumers’ trends can affect the working of entities. Apple Inc. if faced with any of these issues should create urgency for implementing change in the work culture or strategy immediately.
• Build a coalition: The supporting activities that must be required for implementing change must be integrated. For instance, in case of increased competition from other players, Apple Inc. can strategise to come in strategic alliance with one of the leading player of the region that can help it to retain its position.
• Form Strategic Vision and objectives: Corporation undertaking change management must frame a clear vision for the employees in order to protect the activities from unethical initiatives. Apple Inc. before doing change can create a separate code of conduct on as how they are planning to improve the current scenario of corporation and what will be their ultimate benefit to the personnel involved in the process.
• Enlist and Inform people regarding change: After developing a code of conduct for initiating change, Apple Inc. should publish and report the employees and shareholders regarding change. Shareholders and the employees are the most essential element of corporation and therefore the company must implement transparency in informing the change. A detailed description regarding how the leader is going to initiate actions, what is the requirement for change and benefits that the corporations is going to have after the change must be thoroughly communicated to them. For this, meetings and reports can be published by Apple Inc. that will highlight the main issues and benefits of the change.
• Empower Action: After proper planning and communication, Apple Inc. should initiate and implement change in small scale basis. The change must be limited to a small group at the starting to check the consequences of activities. Suppose, the undertaken change did not provide results as per expectation, then it can be modified before implementing the change throughout the globe. Having proper feedback mechanism will help the corporation to move in desired direction without facing major difficulties.
• Generate Short Term Wins: Result obtained from undertaking change management on small scale basis must be informed by the corporation in order to create positivity among the people.
• Sustain Change: Apple Inc. should try to sustain the change in the work culture by making things permanent. Under this, training and educating people must be done by executives regarding how to be more open to change.
• Make it Global: The efficiency of Apple Inc. for making change in its operations and work culture should be planned, structured and integrated in order to be victorious in the long-run.
• 6.0 Conclusion

Change management is a multifaceted process that must be initiated by corporations in its structure and culture through proper planning and communication. The literature review of the paper described the need and reasons behind change and that employee and personnel generally have fear and confusions regarding these transformations. In order to know the change taking place, Apple Inc. was selected in the paper that has experienced change in leadership as well as work culture after it being launched in the industry. Based on leadership and change models like Hersey Blanchard and Kurt Lewis, change management for the corporation was discussed. The result of adapting change in corporation is illustrated in section 4 where current performance of Apple Inc. has improved where it also take CSR activities to improve its relation with suppliers and employees. Lastly, on the basis of overall discussions and findings, recommendations to improve change management in Apple Inc. has been highlighted.

• Reference List

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Streeter, T., 2015. Steve Jobs, Romantic Individualism, and the Desire for Good Capitalism. International Journal of Communication, 9, p.19.

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Verma, P., 2016. Change Management and Certain Implementation Perspectives: What Went Wrong? The International Journal of Business & Management, 4(2), p.233.