Analysis of the Strategic Changes Initiated by Jay Jameson - Case Study Example

Change Management Models

Rowling Energy PLC

Change is inevitable for any company that wants to remain competitive in the world of business. Companies make changes in their structure and culture to remain relevant and competitive. An example of change that a company can undergo is, being bought or merged with the other company. In the 1990s, merger and acquisition were a common strategy for enterprises to fend off competition. Rowling Energy PLC is an electricity generating and distributing company that was formed by the merger of two electricity generating companies; Goliath Generation PLC, and Bantam Power PLC. Since its formation, the company has seen numerous successes and is regarded as a leader in renewable energy. The company, however, has experienced a lot of problems and challenges as a result of changes along the way. For example the change from the top down style of management under its CEO Samson Steele to the bottom-up style of management under the new CEO Jay Jameson. This paper shall apply the Balogun and Hope Hailey's Change Kaleidoscope model, Johnson's Cultural Web model, and Kotter's 8 Change Steps model to analyze the changes that took place at the Rowling Energy PLC from the time of its formation to March 2016.

• Analysis of the Strategic Changes Initiated by Jay Jameson

Change management in an organization involves transitioning projects, infrastructure, and people from one way of operation to another. The difficulty of the transformation depends on the strategy for the change and approach used. It is harder to implement a change that is focused on modifying the organizational structure than the one focused on solving a particular problem. The model that is focused on changing organizational structure is harder to implement as it focuses more on corporate culture (Mackness 2008, p. 32). It involves a change of technology, products, physical asset, and people. But people are independent and reason differently hence they always try to resist the change (Balogun et al. 2003, p. 4). This section shall apply the Balogun and Hope Hailey's Change Kaleidoscope model to analyze the strategic changes initiated by Jay Jameson

Source: Balogun 2001, p. 5

For the management to succeed to implement the change, they must address the following issues; behavior of the employees, operational context, and the culture of the organization (Balogun 2001, p. 2). In January 2014, the new Chief Executive Officer of Rowling Energy PLC, Jay Jameson, embarked on a strategy to change the style of working and culture of Rowling Energy PLC. The changes took twenty-six months to be fully implemented and by March 2016, the culture and the system of the company had totally changed.

• The extent of change required regarding transformation or realignment also determines the strategy used (Balogun & Hailey 2002, p. 8). When Jay Jameson was appointed the new CEO, Rowling Energy PLC had numerous internal concerns. There were issues of health and safety, lack of skilled manpower, discontent among employees, and understaffing (Johnson et al. 2013). There were complaints of dictatorship and seclusion by the top management where decisions were delivered in the form of rules. Jameson had to conduct an overhaul of the structure and the system of the Directorate with an exception of the policy of keeping the cost low and share price and dividends high.

When transforming an organization, valuable practices and assets are preserved (Balogun et al. 2003, p. 7). The reservations can be in the form of staff, assets, and aspects of culture or a particular competency (Balogun & Hailey 2002, p. 8). When changing the management system, Jay Jameson preserved Samson Steele's policy of low cost and high share price and dividends. Jameson also maintained the staff and reintroduced the training of middle-level managers.

To improve the structure, Jameson made changes to some roles. He replaced three former Bantam officials who held top management positions. The challenge to the structural change, however, was the lack of diversity. Two of the three new appointees were former employees of Goliath while one was an external appointment. The attitude towards employees was good. Jameson spent his time out and about at least once a week, interacted with staff and was viewed by his employees as a good bloke. He spoke to 120 employees and had the video of the event shown to everyone in the company. He had a good relationship with the union and was easily accessible to all the staff. Jameson adapted to a more informal approach to leadership with little bureaucracy.

Regarding capability to change, the change in Rowling Energy PLC can be analyzed in three levels; individual, managerial, and organizational (Balogun 2001, p. 5). At the individual level, there was a good response to the new system for health and safety monitoring. Reporting the health and safety related problems increased, which was viewed as a positive sign of cooperation from the employees. At the management level, the managers were willing to attend further training that equipped them with more skills. They were now viewed as problem solvers and not instructors. The whole organization welcomed the changes and by March 2016, the company was already winning awards.

• Jameson found it easy to implement the changes due to the availability of funds and the willingness of his employees to adapt to the proposed structural changes. He also found support from both top level and middle-level management who helped him to implement the performance management system. At his first month in office, Jay sat down with the executive board members and gained their support (Johnson et al. 2013, p. 3). He further eased his work by involving every employee in the change process. He made the employees feel like they owned the change initiatives.

• Similarities and Differences in Culture at Rowling Energy Under the two Managements

Every organization has a culture that defines their structure. A coherent structure is key to an efficient operation of an organization (Kemp, & Dwyer 2001 p. 3). When a new management comes into an organization, it can either continue with the old culture or change it. When Jay Jameson replaced Samson Steele as the new Chief Executive Officer at the Rowling Energy PLC, he decided to modify the culture and structure of the company. This section shall use Johnson's Cultural Web model to examine the culture of Rowling Energy PLC under the two CEOs and juxtapose the similarities and differences. Finally, the article shall discuss how the cultural changes were achieved.

Source: (Manktelow et al.)

• Rowling Energy PLC under Samson Steele
• When Samson Steele took charge of the leadership of Rowling Energy PLC, he structured the company in a culture similar to Bantam Power PLC. However, he became more bureaucratic and arrogant to his employees. He bullied and shouted at them to the extent that he one day greeted them ‘Good morning overheads’ (Johnson et al. 2013, p. 1). He tended to love operators under skilled manual jobs but showed dislike to office-based professionals. The employees became fearful of him, and only a few people could argue with him. Stories were told among the employees about his behaviors. Despite the bureaucratic form of leadership, the company maintained a high share price and low cost, a factor that attracted the investors.
• The manner of Steele's leadership made the employees afraid of approaching him even if there was a problem they wanted to present to him. The elevator to the CEO's office was exclusive to the chosen few. Employees worked under fear and anxiety as to cut what could be implemented next. They held the view that Steele and his management was cutting too much. The young employees did not have the financial advantage, and they felt that they were being pressured to leave. The firm, however, held its routine of low cost and high share price.

Organizations sometimes have symbols or signs that signify their culture and what they believe in (Kemp, & Dwyer 2001 p. 5). Under Steele's leadership, the CEO's office was symbolic of the top-down dictatorial structure. The private lift signified the lack of empathy from the top management for the people reporting to them. The two full-time secretaries outside his office symbolized how shrewd he was. On matters to do with the organizational structure, Steele had adopted a formal hierarchical and mechanistic structure. In the line of authority, there were excessive formalities and rules. Steele had taken a small team around him, and decisions were delivered in the form of rules.

Steele emphasized on the need for Rowling Energy PLC to keep the share prices high and the cost down. The quality of services to customers was neglected. For example, some key performance indicators such as power reconnection deteriorated. Also, health and safety issues were not given the required attention. Influential decisions were made by the few managers in the boss' circle but still he could sometimes adopt an autocratic approach and dictate what he wanted to be done.

• Rowling Energy PLC under Jay Jameson
• In his first thirty days in office, Jameson met individually with senior teams and toured the company. He became familiar with the financial stories. He concluded that changes were necessary except for keeping the cost low and the share price high. He became popular with his employees and was regarded by his employees as someone who had concern for his workers. He also encouraged managers to hold meetings with their staff. Positive stories circulated about initiatives that employees had taken that boosted the company’s income. The good news stories were publicized and shared among the employees through the intranet site. The company is still known for its high share price and was recently awarded for its health and safety performance.

Jameson adopted a leadership style where he valued the opinion of everybody. He could use at least one day to walk around the company and interact with the employees. He was accessible by all and encouraged the management to form a habit of meeting with their staff to collect their opinion and ideas. People became more open to the management and thus could report health and safety related issues. Under Jameson, the company still continued with the routine of high share prices and low cost.

Jameson relocated to a new office that was more accessible to staff and customers. This was symbolic of the open and interactive approach he adopted. His office was glass walled and on the ground floor close to his senior colleagues. The glass wall was a symbol of transparency whereas its location on the ground floor close to his colleagues was a sign that he recognized that everybody was equally important to the organization. Jameson adapted an informally flat and inorganic structure.

Unlike Steele, Jameson delegated most of the authorities and duties to the managers. He encouraged them to call regular meetings with their staffs to gather their opinions and contributions. He laid emphasis on the quality of service. He improved the quality and speed of services like the reconnection of power to homes. He also rejuvenated the health and safety department. Most of the decisions were made by the managers with input from staff members

Cultural Similarities Difference at Rowling Energy under the two managements

Samson Steele management

Jay Jameson management

• Bureaucratic and loved skilled manual employees.
• The employees became afraid of the management.
• The company maintained high share price but operated at low cost.

• He interacted with all employees.
• The employees were open to the management.
• The company maintained high share price but operated at low cost,

• The employees' morale was low, and the young employees felt like they were being pressured to leave.

• The employees were happy and motivated and could contribute ideas.

• The CEO's office was in a large oak paneled room which was located at the top of the building.
• Operated on a formal, hierarchical and mechanistic structure.

• The CEO was based in a glass-walled office on the ground floor.
• Worked with an informal, flat, and inorganic structure.

• The quality of service to the customer was neglected.
• The health and safety sector was not given the required attention.
• The boss could make some autocratic decisions.

• The quality of service was given emphasis.
• Health and safety sector was rejuvenated.
• All decisions were based on consultation.

The Change Process at Rowling Energy between January 2014 and March 2016

Changes in an organization follow a step by step process. Various models have been developed on how the changes can be effectively managed. Among the commonly used models to explain change is the Kotter's eight change steps model. Webster (2012, n.p) divides the Kotter's eight change steps model into three phases. The three phases are; a phase for creating an environment for change, phase to engage the organization and enable change, and the phase of implementing the change. The Kotter's model involves eight steps that the management must ensure that the company passes through or a complete transformation. The eight steps involve; establishing a sense of urgency, forming a powerful coalition, creating a vision, empowering others to act, communicating the vision, planning for and creating shortcut wins, consolidating improvements, and institutionalizing the new approaches (Gilley 2005, p. 35; Manktelow et al. n.d). This section shall apply the Kotter’s 8 step model to evaluate the change process of Rowling Energy under the stewardship of Jay Jameson.

Source: (Nauheimer, 2009)

The change process starts by identification of the crisis or the potential crisis that the organization is facing (Nauheimer 2009, n.p). The new management also examines the competitive market realities. Creating urgency also involves identification of threat and opportunities. When Jameson took over from Steele, he met individually with his senior team and also toured the company (Johnson et al. 2013, p.3). After thirty days of interaction with his employees and consultation with the senior managers, he established the urgency for change in culture. Jameson also utilized the Kotter’s second step of building the guiding team. He sat down with his executive board to gain support and discuss his conclusion.

Jameson created a vision and developed a strategy for achieving the vision. His vision was to significantly change the company culture. He wanted Rowling Energy to become the frontrunner of the energy industry. His vision aimed at doing away with the formality, bureaucracy, and excessive rules, in favor of teamwork. His strategy to achieving this vision was to let the managers hold meetings with their staffs and gather their opinions. He made the workers feel that the company valued them hence he gave priority to solving health and safety issues. He communicated his vision to the executive board to gain buy-in.

After communicating the vision, the next step in the Kotter’s model is empowering others to work on the vision (Gilley 2005, p. 35). Jameson empowered his managers and encouraged them to hold regular meetings with their staffs. He also empowered all the employees to report any issue related to health and safety concern. Jameson planned and achieved his short-term objectives within a very short period. For example, he planned to improve the health and safety and within three months, great improvements had been made.

For the change to reach its completion, the management should consolidate the achievements made and initiate even more changes (Gilley 2005, p. 35). Besides his success in changing the management structure from top down to bottom up and rejuvenating the health and safety policy, Jameson re-introduced the management training. In his efforts to make the changes stick, Jameson introduced the performance management system. He also replaced three of the managers as he worked to ensure that the new structure was followed. The change process at Rowling Energy followed all the steps of Kotter’s model.

Conclusion

Rowling Energy PLC has had two CEOs since its formation in 1990. The first management was under Samson Steel. The management under Samson Steele was characterized by bureaucracy and dictatorship. When Jay Jameson took over in January 2014, he tried to change the structure of the company from the mechanical dictatorial top down structure to an informal, flat and inorganic structure. He introduced several changes that favored the workers and the customers. The changes focused on changing the whole organizational structure. However, under both Steele and Jameson, the company kept the operation cost low and the share price high. The first change that Jameson made was the change on health and safety measures. His strategy of tasking every employee with the duty to report any issue to do with health and safety worked very well.

Jameson created harmony within the company by solving all the problems that were of internal concern. His greatest strategy was the fact that his doors were open to every employee. Nonetheless, Jameson found it very smooth to implement his policies and strategies due to the willingness of the workers to assist and the availability of funds. Under the leadership of Jameson, life was seen to be smooth compared to life under Steele. The employees were free and happy with the new boss. Everyone regarded him as someone who easily gets things done. The low morale started to change and within three months, he had already won the hearts of many employees. The Kotter’s eight step model was very resourceful for the change process. All the steps were followed which in turn led to quality results.