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Welcome Aboard (But Don't Change a Thing)

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Caron Y

on 14 July 2015

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Transcript of Welcome Aboard (But Don't Change a Thing)

Opportunities to create High Quality Connections
Company events to bring employees together
BBQ
Holiday parties
Wellness programs (Loving-Kindness Meditation)
Structured team-building activities within departments
Promote team work by creating Cross-Functional teams
Performance appraisal with a teamwork component instead of individual appraisals
Make employees feel valued
Understanding and meeting employees' developmental needs through career coaching
Employee voice to foster procedural justice
Communicate everyone's roles and responsibility clearly and how this contributes to the vision

Analysis of the problem
Agenda
Overview of the Company
Problems
Step 3
Weaknesses
Create a Vision & Strategy for Change
Shape a vision and strategy to help steer the change effort

INTERVENTION:
Develop a strategy for change through Appreciative Inquiry (fosters collaboration)
Help shape the culture to be more change-ready and less change resistant
Fulfills basic needs of autonomy, competence and relatedness. Leads to increased motivation
Employee involvement in developing the strategy
HR Function: Enhancing Employee-Management Relations
Step 5
Kotter's 8-Step Change Model
Create Urgency
Communicate the great opportunity to all employees and stakeholders, including the union, to stimulate excitement and gain support

INTERVENTION:
Arrange a company-wide conference where Cheryl can speak about this exciting opportunity
Solicit ideas from employees for ways to acquire and fulfill the Bull's Eye contract
Resourcefulness
Fulfill basic needs of employees: autonomy, competence, and relatedness
HR Function: Employee Relations
Welcome Aboard (But Don't Change a Thing)

By: Shanice Anim-Boateng, April Dang and Chu Yan
Overview of the Company
Identification of Problems
Recommendations
Risks and Contingencies
Evaluation of Interventions
Questions from Panel
94-year old manufacturer of high quality wooden toys
Employs almost 5,000 employees in 3 plants
Cheryl Hailstorm, current CEO, approaching her 6 month with the company
GOALS:
Meet board's aggressive sales objectives
Going beyond Lakeland's core upscale market and launching into the mid-market with an exclusive toy contract with a new customer
Acquire Bulls-Eye store's contract - sell to the growing mid market
CEO- Cheryl Hailstorm
Was COO of Kids&Company - one of Lakeland's largest customers
Driving force behind the growth of Kids&Company
Infectious enthusiasm and energy
Walter Swensen IV (previous CEO of Lakeland) selected Cheryl because he believed she could take this company to the next level
First CEO to be hired outside the Swensen family
Always ahead of the market and knew how to generate profit
Risks
Contingencies
Evaluation of the Interventions


Positive lens
- Cheryl fails to adopt a unique lens and or alternative perspective on how to achieve the board's business plan
Positive Deviance
- Cheryl is very concerned about completing the board's goals and less concerned about other ways to exceed common or expected performance
Virtuousness -
Cheryl's failure to solict the opinions of others, who are not passive, is impeding employees and the organization ability to reach their full potential
Resourcefulness
- the lack of participation at all levels in strategic decisions impedes resourcefulness and
competence
of employees
Cheryl wants to expand its manufacturing from domestic to overseas companies
It is too expensive to manufacture in the United States while meeting Bull's-Eye's pricing arrangements
Union negotiations will occur at the same time that the company may offshore
Offshoring might cause union to react through costly strike or work slowdown
Hiring Pat and Cecil (she needs to gain the companies trust and support first)

Develop plans to Overcome Resistance to Change
Employee empowerment and involvement
Recognize and reward people for making change happen

INTERVENTION:
Use of participative management
Promote change leaders who are responsible for implementing change initiatives
HR Function: Employee Relations, HR planning, Compensation (incentives)
Step 7

Build on change
Foster idea champions and build on what went right while identifying what can improve

INTERVENTION:
Create focus groups to determine what employees are enjoying, through the change process and identify opportunities for making it better
Basic human needs: autonomy, competence, relatedness
Resourcefulness, virtuousness
HR Function: Employee Relations
Lakeland Wonders

Employee Resistance
Strong traditional culture that resist change
Cheryl feels most of her managers are "agreeable to her face, but are deliberately moving slowly behind her back"
Mark Dawson (VP of Operations) doesn't understand Cheryl's vision and has no interest implementing her strategy
Lack of trust and communication between Cheryl and her team
Cheryl cannot gain support from her team
Engagement and commitment issues
Lack of common vision between Cheryl and her management team
Cheryl's view of employees relates to Theory X and the Hard HRM model
More reactive planning and not enough of proactive planning
Lack of cooperation/soliciting opinons
Recommendations
Overview
Leadership: from transactional to transformational
Building a strong relationship with the employees
Kotter's 8 step Change Model
McKinsey 7-S Framework
Change Management
Source: https://whittblog.wordpress.com/2011/04/24/mckinsey-7s-model-a-strategic-assessment-and-alignment-model/
Aligning all these elements to support the change initiative
Step 2
Form a Powerful Coalition
Assemble a group with the power and energy to lead and support a collaborative change effort

INTERVENTION:
Hire Pat and Cecil as consultants, as they have expertise in the area
Orientation for Pat and Cecil to understand the culture of the organization
Create a team within the organization dedicated to offshore operations
Help alleviate Mark's concern about taking the focus off manufacturing operations in the U.S.
Resourcefulness, positive lens, positively deviant
HR function: Employee Selection, Training and Development, HR Planning
Step 4
Communicate the Vision
Address people's concerns and anxieties

INTERVENTION:
Use surveys to find out what those concerns and anxieties are
Management can address concerns openly in weekly meetings
Fosters communication and build engagement
Relatedness
Resourcefulness
HR Role: Employee Advocacy
Leadership
From Transactional to Transformational
Building a Strong Relationship
Thank-You
Step 6
Create Short term Wins
Produce, track, evaluate and celebrate small and large accomplishments

Anchor Change in Corporate Culture
Talk about progress every chance you get by telling success stories about the change progress

INTERVENTION:
Employees newsletters to communicate successes
Rewarding employees for supporting and initiating change
"Employee of the Month"
Incentives for successful change initiatives
HR Funtion: Compensation, performance management
Step 8
INTERVENTION:
Create proximal goals and celebrate when those goals are met
Allocate a fund to each department and allow them to celebrate accomplishments in their own ways
Autonomy, competence, and relatedness
Resourcefulness, virtuousness, positive deviance
HR Function: Performance Management, Compensation, Training and Development
LEADERSHIP COACHING:
1. Individualized Consideration
Participatory management to fulfill basic lower level needs
2. Intellectual Stimulation
Autonomy in work design, encourage employees to challenge the status quo, and give them more decision latitude
3. Idealized Influence
Earn employees trust for Cheryl by being an authentic leader
4. Inspirational Motivation
Understanding the capabilities and resources of the team
Use business storytelling to help people understand the impact of their vision
Cost of time (chance of weakening ties with Bull's-Eye)
Loss of productivity (too much of an emphasis on changing)
Union striking which slows down production and delivery
Damage to the culture if the change initiative is not sucessful or occurs to rapidly
Employee Engagement Surveys
Measure their perception regarding the fulfillment of basic needs
Example: "I was allowed input on change direction" and " I have a clear vision of the future state"
Benchmark results to previous company surveys and to other companies (Positive Deviance and Virtuousness)

Transformational Leadership Survey
Taken before and after leadership coaching to measure the difference in fulfilling the four aspects of transformational leadership

Cost of time
Time management (delegating task and prioritizing tasks)
Loss of productivity
Goal setting theory: (1) Goal acceptance (2) Goal specificity (3) Goal difficulty (4) Feedback on progress
Damage to the culture
Kotter's Adaptive Culture: Behaviors and Values
Positive culture through compassion

More high-quality connections interventions
Mentoring program
Strike

and slow down production
Strike contingency planning teams
Implementation of Contingencies
Cost of time
Human Resource Planning
Loss of productivity
Performance management and Employee Performance Appraisals process (enhance performance)
Performance conversations/constructive feedback
SMART goals
Damage to culture
Mentoring program
Strike and slow downs
Dynamics of Labor relations
Contingency planning (contingent work force)
Strengths
- Strong culture
- Long-term employees
- Company history
- Cheryl's credentials


ASC Consulting Presents...
References
Clear Logic Consulting Professionals. (2013). Adaptive culture: behaviours and values. Retrieved from http://clearlogic.ca/adaptive-culture-behaviours-and-values/

Engage. [Screen Name]. (2013, March 5). Why employee engagement matters. [Video File]. Retrieved from youtube.com/watch?v=dSfDROxCuxl

Kotter, J, P. (1995). Leading change: why transformation efforts fail. Harvard Business Review. 73(2) 59-67.

Manketelow, J. (2015). McKinsey 7-S framework. Mind Tools Club. Retrieved from http://www.mindtools.com/pages/article/newSTR_91.htm

McNulty, E. (2002, 10). HBR case study: Welcome aboard (but don't change a thing). Harvard Business Review, 80, 32-40.

Redmond, B. F., & Padgett, L. N. (2014). Goal setting theory overview. Confluence. Retrieved from https://wikispaces.psu.edu/display/PSYCH484/6.+Goal+Setting+Theory

Trevino, L. K., & Brown, M.E. (2007). Ethical Leadership: A developing construct. In D.L. Nelson and C.L. Cooper (Eds.), Positive organizational behaviour (pp. 101-116). Thousand Oaks, CA: Sage.
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