Managing Change at Coca Cola Company - Assignment Example

Managing Change at Coca Cola Company Introduction Managing change entails an approach taken by organizations,for purposes of transitioning into a state that commensurate with the current market trends. In any organization, the change agent needs to engage in assessing the organization’s performance since market trends change and hence; the need to conform to current changes. In addition, change management allows an organization to keep competitors at bay by adapting new strategies geared at improving performance. When making changes in an organization, it is important for the change agent to come up with a plan that ensures a smooth implementation of new plans geared at achieving lasting benefits. As a result of globalization and emerging technologies, the business environment continues to evolve and thus; the need for organizations to adapt to the new changes and change management. In addition, during the change management process, organizations need to engage in a thoughtful planning and a sensitive implementation that involves consulting with persons affected by the new changes (Schein 1993, p.27). In a multinational company such as Coca Cola, managing change should encompass a process that involves consulting with stakeholders concerning the proposed changes to improve the firm’s performance. This is because, the stakeholders form part of the Company and any change affect their interest in the Company. Among the stakeholders that the firm needs to consult in regard to change management include the shareholders, the firm’s personnel, suppliers and customers of Coca-Cola products. How to manage change Consulting stakeholders during a change management process is important in the sense that it helps to deal with dissenting voices not comfortable with the proposed changes. Consultation in essence helps to raise concerns that need to be resolved before adapting new plans to improve performance. Prior to implementing any change, the Company need to consider various factors that include assessing the proposed change and what the change may achieve in the long run. Further, it is important to determine the persons who might be affected by the proposed changes and their reaction to such change. This assessment will help the organization come up with an implementation plan acceptable to all major stakeholders of the Coca-Cola Company. The change agent in this sense, should come up with strategies to make the people affected by proposed changes understand the reason for change. This is a way of enabling the people affected to play a role in decision making regarding change management (Schein 1993, p.35). It is also a way of allowing major stakeholders of the Company to participate in the planning and implementing the change process. On this note, communication is vital in change management. Implementing a new change in the organization require everyone involved to speak in one voice. This is enhanced by creating proper channels of communication in all levels of the organization. In order to convey meaning and understanding, the change agent needs to engage in a face-face communication with the people or personnel helping in the change management process. Talking directly with the Company stakeholders’ acts as an encouragement to support new changes within an organization (Boje 1991, p.12). As a multinational company, any change implemented by Coca Cola Company affects many people who are either involved with the company directly or indirectly. As such, stakeholders may look at different issues that may emerge because of implementing a new change. The considerations in this sense by stakeholders include how the change may impact on sales, profits, the company’s image, and performance in a competitive market of soft drinks globally. In this sense, showing good leadership by the management helps to ease tension and enhance confidence among stakeholders of the Company concerning implementing new changes. During the process of implementing new plans, the management of the Company need to participate directly in the change process. The management should take the responsibility of ensuring that new plan work successfully in all the levels of the Company that they manage. To achieve successful results with the new plans, the management should involve everyone in the company in identifying the existing problems and how to solve such problems (Boje 1991, p.15). Coca-Cola as a company produces a variety of soft drinks that are sold across the globe. As such any proposed plan by the top management at its headquarters in Atlanta, affects management in its all branches across the globe. In such a case, any change proposed by the top management requires support from other branches across the globe. This is important if the proposed changes are to meet their objectives (Boje 1991, p.15). Prior communication of the proposed changes is critical in terms of informing other branch managers of the proposed changes. Change takes a gradual process and if not conducted in a proper manner, may result in failures. As such, any change need to be integrated in all levels of the company that is important in enabling the personnel working for the Company to understand and support the new changes. Other than selling soft drinks to the public across the globe, the company also engages in corporate social responsibility and any change in the Company also affect the support that the company provide to the community (Boje 1991, p.17). A change in the Company may also mean changing the personnel tasked with various responsibilities of the Company. As a result, the Company needs a strategy where the communities supported by Coca Cola are well represented in the change management process. This allows the communities supported by Coca Cola to understand the changes taking place. In addition, involving such communities improves the company’s support in the social corporate world. Empathy as a strategy in change management process help in achieving success with new strategic plans. In this sense, the Company’s management should engage in understanding the people affected by the new changes. This helps the management to get a clear picture of what other people need or feel concerning the implementation of new changes in the organization. Other than work, new changes also influence the personal life of people involved in the daily operations of the Coca Cola Company. These are issues that the management need to take into consideration before implementing a new plan (Vince & Martin 1993, p.210). Models associated with managing change The change process in a large company such as Coca Cola can be chaotic if proper mechanisms are not in place to facilitate a smooth transition. As such, there are models related to change management that the Company can rely on in realizing a smooth and successful transition. According to Lewin’s model of change management, it is possible that a company such as Coca Cola is susceptible to resistance from persons not ready to accept change. In this sense, overcoming such a tendency requires the management to motivate other members of the organization. Further, when change is implemented, it is possible for the transition period to take a while. As such, this period requires good leadership from the management of Coca Cola Company. Further, reassurance is important during this period for the company to achieve success with the new changes. This model can also assist the company to refreeze under new guidelines of operation. However, a limitation of this model is that it takes considerable time to implement which may slow the Company’s plan for change. For major changes, the company can adapt to this model because it is easy to apply (Wrench 2005, p.77). On the other hand, where the changes in the company require a holistic approach, the 7-S model by McKinsey is advisable. The benefits that the Coca-Cola Company can derive from this model include facilitating proper diagnosis and understanding the firm’s operation. This model further ensures proper guidance in times of implementing organizational change. Additional benefits concerning the model include accommodating both rationale and emotional components associated with change management. The Company also has the opportunity of assessing all parts of the firm in a unified way. However, a limitation of this model is its complexity, may result in higher rates of failure and differences are often ignored when an organization applies this model (Wrench 2005, p.82). Another model that the Company can consider using is the Kotter’s Model. This model involves eight steps that the management can use to convince employees and other interested parties why change is needed in the Company. This model compared to the other two aforementioned models, is important for the Company to adapt. This is because this model plays a significant role in terms of preparing employees and other stakeholders of the company to accept the proposed changes. In addition, this model allows easier transition of the company concerning the implemented changes (Kotter 2007, p.96). The Coca Cola Company can exploit the Kotter’s Model that involves eight steps by first, the change agent leading the process. Leadership is important in any organization in terms of offering directions on the way forward for the Company. Coca-Cola being a multinational company, needs a management team that has the ability to lead other team members in regard to improving the performance of the Company. In this regard, any change implemented by the Company requires the top management to lead from the front. This acts as an example that the junior employees of the Company can emulate in enhancing the change process. In order to achieve a successful implementation of a new plan by relying on the Kotter’s Model, the management needs to carry out the organization’s affairs with urgency (Kotter 2007, p.98). This may involve orienting the staff and other interested parties regarding the need for change. In essence, such an endeavor allows the management to convince employees and other stakeholders of the need to act with urgency concerning any proposed change within the Company. This model further advocate for teamwork which is necessary for achieving the desired objectives. Teamwork further help in consensus building regarding the changes implemented by the organization. In addition to this, teamwork enhances support for the personnel responsible for carrying out organizational change. Support from other employees and interested parties is a motivator in improving organizational performance (Kotter 2007, p.101). In order for the Company to avoid failures with a new strategy, the management should set a clear vision that aids in directing the change process. This vision should be communicated to all members of the Company as a way of enhancing understanding concerning the organization’s proposed strategy plan. To this point, it is necessary for the firm to change structures that impact negatively on the established vision. Change management according to Kotter’s Model further requires risk taking and adoption of unconventional ideas so long as they are in tandem with the Company’s plans to improve performance. The strategic plan adopted by the management should focus on realistic goals as a way of avoiding failures with untested plans. Employees, on the other hand, play a significant role in the sense that, their competency impacts on the Company’s performance. As such, a successful change process requires the input of employees with the ability to implement the organization’s vision. In any organisation, success in implementing changes depends on introducing the new changes to the organisation’s culture. This is made possible by encouraging leadership development in the organization (Kotter 2007, p.103). Conclusion Change management within any organization should consider ways of coming up with a strategy to enable a smooth and successful transition. Resistance to change in an organization often arises because of a lack of proper communication channels with employees and other interested parties. In essence, for change management to achieve its objectives, it is important to involve all people affected by the change in a consultative process. This allows everyone in the organization to reach a consensus on the strategies to utilize during the change management process. References Boje, D.M 1991, ‘Consulting and Change in the Storytelling Organisation’, Journal of Organizational Change Management, Vol. 4, no. 3, pp.7 – 17. Kotter, J 2007, Leading Change, Why Transformations Efforts Fail. Harvard Business review, Boston. Schein, E. H 1993, ‘On Dialogue, Culture, and Organizational Learning’, Reflections, Vol. 4, no. 4, pp.27-37. Vince, R & Martin, L 1993, ‘Inside action learning: an exploration of the psychology and politics of the action learning model’, Management Education and Development, Vol. 24, no. 3, pp. 205-215. Wrench, J 2005, ‘Diversity Management Can Be Bad For You’, Race and Class, Vol. 46, no. 3, pp.73-84. Read More