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Change Management Simulation

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Vinisha Pithia

on 12 May 2015

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Transcript of Change Management Simulation

Spectrum Sunglasses
Change Management Stimulation:
How to obtain critical adoption within 96 weeks...

Phases of Adoption
(1) Awareness
(2) Interest
(3) Trial
(4) Adoption
Kotter's 8-step Process of Organization Transformation
(1) Establish urgency
(2) Form coalition
(3) Create vision
(4) Communicate vision
(5) Empower others to take action
(6) Plan for and create short-term goals
(7) Consolidate, realign, restructure
(8) Develop and institute new approaches
4 Frames of Organization Structure
Human Resource Frame
Email notice
Conduct private interviews
Hold Town Hall meetings
Private resistance confrontation
Reward system
Skill training, internal
Skill training, external
Change Management Simulation
Personal Reflections
Vinisha Pithia
Emma Scymanski
Taryn Smith
*broad scope
*more specific scope
Structural Frame
Coalition of support
Establish goals and deadlines
Restructure organization
Establish goals and deadlines
Pilot project
Political Frame
Coalition support
Consultant support
Conduct private interviews
Hold Town Hall meetings
Private resistance Confrontation
Adoption recognition

Symbolic Frame
Walk the talk
Consultant support
Organization values
Success stories
Pilot project
Establish goals and deadlines
Post progress reports
Restructure organization
Hold Town Hall meetings
Organization Phases of Adoption
(1) Mobilize
(2) Movement
(3) Sustain
Causes of Resistance
(1) Information concerns
(2) Personal concerns
(3) Implementation concerns
(4) Impact concerns
(5) Collaboration concerns
(6) Refinement concerns
Radical Change
Product Change:

new product, new target market, new marketing, etc.
Technological Change:
new behaviors and manufacturing methods, it's difficult to "teach an old dog new tricks", etc.
Strategic Change:

encourage innovation and change, realignment to horizontal leadership, top-down adoption approach, etc.
3 Goals: (1)
25% of waste by redesigning the manufacturing process; (2)
the current level of greenhouse gas emissions by 15%; and (3)
a new product line based entirely on environmentally benign materials; all of which must be complete within the next 96 weeks. The initial response to the idea, as was foreseeable, is adverse. The scale of change, within such a short period of time, is uncharacteristic of Spectrum Sunglass, but vital in response to the unstable status quo.
Contingencies present when implementing change
Profits have been volatile in recent years, due in large part, to the recession. As of late, demand has been restored to pre-recession levels, and as a result, profitable. The present is stable, but uncertain. As Chief Executive of Operations, the future is of the utmost concern. Competitive advantage is achieved through strategic initiatives. The change management simulation demonstrates the actions, and results of said actions, chosen by the CEO of Spectrum Sunglass Company
Without risk, there is no potential of reward.
The initial response to the idea, as was foreseeable, is adverse. The scale of change, within such a short period of time, is uncharacteristic of Spectrum Sunglass, but vital in response to the unstable status quo. The future of Spectrum Sunglass and its products hinges on being sustainable.
Common pitfalls leaders face when managing change, and advice for new managers...
What type of change?
Corporate culture has the potential to become stagnant. Compliance with the status quo is contagious. Employees often become complacent with their current situations, and are less prone to change. External support can help alleviate concerns and validate the suggested change. As a few employees become open to change, others will do the same, and the cultural values can be realigned.
Spectrum Sunglass is made up of 580 employees, 20 of which make up the management team, or leadership. Critical adoption is vital to establish a sense of agreement within the leaders, decreasing the potential of employees to object to the change.
The proposed strategies are less than subtle. The whole organization would be restructured, organizational values would be realigned, workers would be retrained, etc. The proposal, in essence, recreates the organization.
New products require new technologies, new resources, new behaviors, new materials, new manufacturing methods, etc. These technologies require time, which the organization does not have.
The change would mean new suppliers, new clientele, new manufacturers, etc. and employees, of all levels, would need to adjust accordingly.
Acknowledge and understand differences in preference. Concerns, are just, and should be taken into consideration. Hold private interviews and communicate with the management team to alleviate concerns and persuade them to adopt the initiative. Resistance is to be expected, even encouraged, and preparations should be made beforehand
Political jurisdiction is one of the most sought after resources and has the potential to dictate whether or not the initiative is adopted. People are easily influenced by others
Coalition (internal) and Consultant (external) support are both important in attaining adoption
Open, two-sided communication, helps dispel concerns and advocate in support of adoption

As Chief Executive of Operations, the future is of the utmost concern. Competitive advantage can be achieved through strategic initiatives. The purpose of change is to retain relevance in the presence of global economic change. The change management simulation demonstrates the actions, and results of said actions, chosen by the CEO of Spectrum Sunglass. As the CEO, it is pertinent to use interpersonal relations to persuade the management team to adopt the strategic change. Relations, in all capacities, formal and informal, fashion political alliances, and therefore, control. With an alliance, adoption of the radical change is feasible. Establishing a coalition of support through one-on-one interviews, as well as consultant support, and therefore, political jurisdiction, can influence the entire organization to adopt the initiative.
The first attempt was inconclusive and wasn’t of much use in preparing for the second, and final, attempt at critical adoption. The first attempt was based on a mechanistic approach to leadership management. The second attempt was based on an organic approach to leadership management. The goal, critical adoption, was not attained in either of the attempts, but 13 out of 20 employees adopted the initiative in the second attempt. Of the 7 remaining employees, 6 were in the trial stage, one phase short of adoption. Having been given a few more weeks, I am confident that I would have been able to attain critical adoption. The results, and in particular, the “news” following each decision, strengthened the argument in support of persuasion through interpersonal relationships. One-on-one interviews were able to create trust, open communication, and fashion receptive responses to change. By including the management team in the beginning stages of change, members’ dispositions turned out to be more amenable. Being “in control” and being “controlling”, are not one in the same. Being influential, versus powerful, yields the best-case scenario. As awareness and interest grew, it was crucial to realign the organization’s values, train employees of new behaviors and techniques, as well as restructure the organization as a whole, to dispel concerns and tip the scales in support of adoption.
For the most part, the simulation was realistic, with a few instances in the simulation that, in my opinion, were not representative of real world results. First and foremost, the whole management team “ignoring an email notice”, was not plausible. As colleagues, and in certain instances more, there is a certain level of respect that one can assume a CEO would be given, by at least one person on the management team, if not by all. Second, when confronting resistance, the negative and even, audacious, responses were improbable. Disagreement is understandable, and encouraged, but juvenile responses are those that would be expected from amateurs, not the management team. These inconsistencies, although not prototypical, are common examples of simulation shortcomings. With that being said, there are shortcomings in all situations, and in that respect, makes the inconsistencies accurate representations of real world situations.

Spectrum Sunglass is a young organization. It was established ten years ago and is still considered new to the sunglasses market.
Employees are unaware of the problem, and are naive to what changes need to be made. The speed and magnitude of change overwhelms employees, and can cause them to second guess their capacity
In the Change Management Stimulation, acting as the CEO of Spectrum Sunglass I was tasked with selecting levers to aid me in convincing a critical mass of my population to adopt change. In working through the stimulation I found myself applying the classroom concepts we have learned throughout the semester and really thinking about the way I have seen seen strategic change implemented in my current place of work, Safeco Insurance. As an HR Business Partner I am often tasked with assisting Senior Leaders to roll out new initiatives and brain storming on what would be the best communication plan, how the employees will react, how we can make them feel valued etc. - my prior knowledge and experience was helpful throughout this stimulation. The learnings from this stimulation are also things I can easily take back and apply to my day-to-day work.

To achieve critical adoption I started with some private interviews, tried to walk the talk and build a coalition of support. Once I had some initial buy-in I held a Town-Hall (Week 13), however I did so too soon and did not achieve anything. After having some more private interviews, telling success stories and achieving some adoption I had another town hall (Week 50) that proved to be much more successful. From there I posted progress reports, continued to walk the talk, provided internal skill building (Week 65), conducted more private interview and concluded with revising the reward system (week 80) and then finally announcing the goals & deadlines (week 91). My critical adoption was achieved slowly and aided by 32 private interviews on my 19 employee population, with the most radical changes of announcing a revised reward system and the goals & deadlines once there were already a large number of employees adopted and in the trail phase.
As the C.E.O. of Spectrum Sunglasses it was my responsibility to lead the cultural transition into a more eco-friendly organization by utilizing political power and structural change in the organization. My task was to utilize leadership levers to ensure that the entire organization fully understood and adopted the new values of Spectrum Sunglasses. As the acting C.E.O. it was also my responsibility to gauge individual employees progress throughout the process.

Whilst going through the simulation I noted that there was a high response to the private interviews, town hall meetings, walking the talk, announcing the goals and deadlines, getting consultant’s support, and conducting a pilot project. These levers initiated the phases of adoption. I found that communicating to the employees was the most successful lever in not only creating awareness but also bringing employees to the adoption stage. Though my first and second attempt were not successful in achieving critical mass adoption I learned that political power/authority can influence masses. The town hall meeting was both effective and pertinent in delivering the message of change.

Things began to disintegrate when I utilized the recognize an adopter, this was not taken positively but in fact it upset the employee. Confronting a resister had a similar response and caused my credibility to decrease. The e-mail process was completely disastrous in that no one read the e-mail nor was there any reaction, again the result was a decrease in my credibility. Employees did not show any interest in the progress report even though this is an important step in attempting to gather where improvement needs to occur.

All in all I see that there is no correct method of transitioning any organization but it is crucial to understand how each employee is reacting to the changes. Along with understanding employee’s needs you must also respond to each of their needs. It is also important to utilize the levers to enhance the political power. The way to a successful change in process is through the utilization of leadership frames in conjunction with changes lever. This method will prevent missteps from occurring.

This simulation allowed me to put things in perspective at my place of work, Enable Healthcare Inc. I now understand the importance of leading by example and showing employees how and explaining why things are done or should be done in a certain manner.
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