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Concord Bookshop and Change

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The Concord Bookshop and the Change process
Tara Buckenmyer
HCS/587
March 17, 2014
Carol Rohrback

Organizational Change and the Concord Bookstore

Change is inevitable for business owners. External forces like technological advances and consumer demands often places financial hardship on a company. The success of online shopping has forced bookstore owners to become creative in competing with Internet companies. To remain competitive and maintain viability, bookstore owners must be able to adapt quickly and implement organizational changes. Organizational change means introducing a new enterprise resource planning system to co-ordinate and standardize internal process (Spector, 2010). Businesses often turn to strategic renewal changes to improve profit margins and customer relations. An independently owned bookstore, The Concord Bookshop, underwent organizational change processes that led to failure.

The Concord Bookshop The Concord Bookshop was a thriving bookstore in Boston, Massachusetts, until national bookstore chains and the availability of online shopping affected its financial status. To improve the store’s financial position, the owners represented by a board president, elected to implement organizational changes. The owners no longer wanted to use a three-way management system. They elected to demote the existing managers into different positions and hire a new general manager. This came as an abrupt surprise to the current employees. Employees to the proposed organizational changes met the board with full resistance. The Concord Bookshop employees presented their concerns, but the board stood firm in their decision. The board’s lack of involving the employees in key business decisions fueled resistance to the changes they initiated. Employees do not naturally resist change, but they often resist change because of the way change is implemented (Spector, 2010).

Phases of Organizational Change Process
The Concord Bookshop board may have faced less resistance if they had followed a better organizational change process. Kurt Lewin, psychologist, is best known for his three stages of organizational change process: unfreezing, moving, and refreezing (Spector, 2010). Resistance to change was first met from employees because they did not believe their beloved bookshop was in financial distress. Therefore, there was no urgency to change the status quo. The first stage in Lewin’s change model is unfreezing. Announcing the need for change was not enough. The board should have presented the financial statements to the employees, allowing them the opportunity to learn the urgent financial situation of the company. Employees would have seen what needed to be changed and become dissatisfied with the status quo. The second phase of the Lewin change model involves moving from one process to another. The board attempted to do this by prematurely redesigning the role of the top three managers. A better plan would have been to ask them how they could contribute to improving the financial state of the company. The managers could have presented an action plan with suggestions on how to meet the expected outcomes of the board with defined roles to keep employees accountable. Involving the employees in the redesign process would have helped the employees feel a sense of empowerment and stay committed to the change process. The third and final stage of the change model is refreezing. A commitment to enforce the proposed suggestions on the action plan would help reinforce the new status quo. There would have been less resistance to change if the president of the board had realigned management roles at this stage and rewarded employees instrumental in positive change. Mutual engagement at every stage of the implementation process helps assure learning and builds commitment (Spector, 2010).

Conclusion
Businesses face challenges every day. Failure to implement organizational changes can be very costly and lead to the death of a company. Change implementation should begin with a clear understanding of the goals. Getting employees to voice ideas has long been recognized as a key driver of high-quality decisions and organizational effectiveness (Burris, 2012). Effective change requires a commitment by everyone involved. Employees must become good change agents and help maintain the desired change. Leaders must constantly evaluate the change process and adapt accordingly. There may only be once chance to get it right; the viability of the company depends on it.

References

Burris, E. R. (2012, August). The risks and rewards of speaking up: Managerial to employee voice. Academy of Management Journal, 55(4), 851-875
Merrell, P. (2012, Summer). Effective change management: The simple truth. Management Services, 55(2), 20-23
Spector, B. (2010). Implementing organizational change: Theory into practice (2nd ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.

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