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CHAPTER 10: Leading Change in Organizations
Transcript of CHAPTER 10: Leading Change in Organizations
(Ultimate Office Products)
Solution (1st phase)
Richard Kelly (Director of information systems).
He knew the system in UOP was obsolete, he purpose to speed up ordering processing and improve customer service.
He purchased new computer workstations and software package to automate the system.
Equipments and software are unused for months after the purchase.
The managers from various departments disagree about the change!
Richard held meeting to encourage cooperation, but end up with more accusations. (responsibilities for consequences, disagree upon reason of obsolete, and expensive new system)
CEO became impatient, she wants the problems to be solved ASAP!!!!!!
Solution (2nd phase)
Richard gather more detailed information about the problems.
He found out many unnecessary activities could be eliminated to speed up the process of ordering.
The problems are connected to all departments, and this required changes.
CEO agreed with Richard and authorized Richard to begin the dramatic improvements.
Despite of the authority, Richard tend to involve all the managers by using "cross-functional task forces".
Each task force identify different aspect of the problems. (visit customers and competitors)
Outside consultant was hired to advise about the task forces as well.
(Director of information)
Managers from different departments
CEO of Ultimate Office Products
(Problems and Impacts)
Rapid grow of discount merchandisers and office product super-stores.
Affected traditional distribution channel (wholesalers, retail stores).
Superstores forcing manufacturers (UOP) to improve customer service.
Many manufacturers willing to cut price and use electronic orders and billing (favored by superstores).
UOP losing market share and profits declining.
Kotter’s 8-step change model.
Step 1: Create a sense of urgency
motivating the workplace to consider change and get them to buy into it.
Richard’s first step was to gather more information about the reasons for delays in processing and filling orders and he gained the support from CEO.
Step 2: Creating the guiding coalition
Getting the right people in place is about getting the right team, commitment and trust to do the job.
Richard met with the department managers to get their assistance in forming some cross-functional task forces.
1. Why did Richard
in his first attempt to implement change?
actions by Richard that were more effective for implementing change in the organization.
the change leadership provided by the CEO.
Most of the managers realized the seriousness of the problems.
They put aside their functional biases and cooperate in finding ways to improve.
Accepted the plan and systems proposed by Richard.
Within a year, UOP able to eliminated unnecessary steps to process orders and billing process.
Many orders being made electronically, mistakes in billing process reduced.
Many of them volunteered to keep improving in the team.
Kurt Lewin's Change Theory
Three Steps of Change:
- motivate people toward change
- Learn new things
- Start to fit with the change
Reason of Resistance to change:
Lack of trust
Believe that change is unnecessary
Believe that change is not feasible
Fear to unknown
Loss of authority
Step 3: Developing a clear vision
Create a vision to help direct the change effort and develop strategies for achieving that vision.
As people began working together to understand the system, they began realize how serious the problem were.
Step 4: Communicate and share the vision
involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs.
Richard involves more people in the change process so that they would understand and support it.
Step 5: Empower people to clear obstacles
Remove obstacles to the change and unleashing people to do their best work.
When one of the department managers opposed a change, everyone in the meeting looked at the CEO, who made it clear that she supported the task force recommendation.
Step 6: Secure short-term wins
creating visible and unambiguous success as soon as possible.
Within a year, the company eliminated many of the steps formerly required to process an order, and the average number of days to fill an order was reduced by nearly half.
Step 7: Don’t let up
Consolidating gains and producing more change.
Many more orders were being made electronically, and most mistakes in the billing process were eliminated.
Step 8: Make it stick
Anchoring new approaches in the culture for sustained change.
As people discovered that they could actually change things for the better, they continue to look for ways to improve quality and customer service.
2 situations happened.
CEO discuss new responsibilities with Richard (director of info system).
- Explained the issues to Richard
- CEO impatient when failed to reach the outcome
CEO authorized Richard to begin the second plan.
- Shows support
CEO showing 2 types of leadership style
(a) Fielder's contingency theory of leadership effectiveness
Good L-M relations, task structured, high position power --- effective --- Low LPC
Low LPC is more task-oriented
Priority on task accomplishment
When Richard failed, she showed dissatisfaction
CEO shown support when Richard had the 2nd plan
Authorized Richard to implement the plan
Richard and managers --- operational responsibilities, authority
CEO --- ultimate responsibilities – managers look at her reactions when presenting ideas
Leadership style changed ---> organizational change
Changes in competitive strategy
Change is essential for organization to improve
Change required endless effort and every employee involvement in the organization
"You must be the change you wish to see in the world!"
Be a manager like Richard Kelly!