Premium Essay

Organizational Change in Modern Corporations – Success Strategies and Failures

In: Business and Management

Submitted By Avarnado1
Words 1586
Pages 7
Organizational Change in Modern Corporations – Success Strategies and Failures
Alphonso Varnado
University of Saint Francis
Abstract
Drastic change can be hard for any organization. Even the most powerful leader must realize that it takes the cooperation of others to implement drastic change. This paper looks at effective strategies for drastic change in organizational culture and examines case studies where this has worked and where it has failed.
Keywords: Organizational Culture, Change Management
Organizational Change in Modern Corporations – Success Strategies and Failures
What is Change Management anyway? “The management of change and development within a business or similar organization”. In other words, it is the systematic approach to dealing with change, both from the perspective of an organization and on the individual level.

General Principles of Organizational Change Management
It is the leader’s responsibility to manage change. Employees are only responsible for doing their best. Leaders must provide the necessary tools for employees to execute the change they desire. Change should not be enforced on the people (Kotter, 2008). Whenever people are forced to do things without engagement, there will be problems? Workshops can ease this burden and develop a collective understanding to the new polices approach, and its effect on their lives and work. Surveys are another way to minimize distrust amongst staff. The employee’s direct supervisors must facilitate this, not just convey the information to employees.
Always involve and agree on support from people within the organization and avoid dictating. Understand where the organization is at the moment. Leaders must have a clear vision of where they want to go, when and why, and the steps to get them the company there (Kotter 2008). Leaders must plan and develop towards these goals with…...

Similar Documents

Premium Essay

Organizational Change

...customization of the material. Pfeiffer also recognizes the remarkable power of new technologies in expanding the reach and effectiveness of training. While e-hype has often created whizbang solutions in search of a problem, we are dedicated to bringing convenience and enhancements to proven training solutions. All our e-tools comply with rigorous functionality standards. The most appropriate technology wrapped around essential content yields the perfect solution for today’s on-the-go trainers and human resource professionals. w w w. p f e i f f e r. c o m Essential resources for training and HR professionals S Best Practices in Leadership Development and Organization Change S S S Best Practices in Leadership Development and Organization Change How the Best Companies Ensure Meaningful Change and Sustainable Leadership Louis Carter David Ulrich Marshall Goldsmith Editors Copyright © 2005 by John Wiley & Sons, Inc. Published by Pfeiffer An Imprint of Wiley 989 Market Street, San Francisco, CA 94103-1741 www.pfeiffer.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance......

Words: 29274 - Pages: 118

Premium Essay

Failure Analysis and Change Strategy

...Running head: FAILURE ANALYSIS AND CHANGE STRATEGY 1 Failure Analysis and Change Strategy LDR-531 January 2014 FAILURE ANALYSIS AND CHANGE STRATEGY 2 Failure Analysis and Change Strategy In today’s business market, for a business to succeed, they have to be open to change, be flexible, be technologically savvy, and be able to re-invent themselves to reflect what is happening in the market at the time. “Over the past decade, policy makers and the public have become progressively more concerned as success in information markets has led to a concentration of market power that allows a few firms to dominate what is increasingly seen as a commodity essential to modern life,” (Wright, 2009). The success of the economy is dependent upon the success of businesses. When a company fails, the economy will be affected by the loss of sales, consumer purchases, income, and spending cuts due to the loss of jobs. When a household has more income, spending increases; but when the income decreases for whatever reason, they will tighten the reins on spending which will results in fewer sales. This paper will analyze some of the things that have led different companies to fail and to succeed, and then how they try to apply the lessons learned to avoid repeating the events and strategies that led to failure. Part 1: Failed Business Analysis – Borders Books Business Failure Analysis Former Executive of Borders, Andi Lobdell (2012) states, “As a former executive of......

Words: 4073 - Pages: 17

Free Essay

How Failure Breeds Success

...About the case The purpose of this case is to draw attention to how corporations are beginning to understand that being innovative, and taking risks, means coping with the potential of product failure. This case looks at how companies are trying to develop organizational cultures that are innovative, risk taking and able to deal with product failure. It identifies some of the major corporate flops like eVilla Sony Corp’s $500 internet appliance and General Motors crossover SUV. This case also quotes leading business school academics on how failure is important to the experimental process. It outlines how companies can learn from failure and suggests that the challenge is knowing how to balance organizational performance and learning cultures. Moreover it describes how some companies are tackling the issue for example how Corning examined its successes and failures spanning its 150 year history. It also highlights how being involved in learning from failure can impress present and future employers and presents best-practice ideas for getting the most out of failures. Case Analysis Experiential learning process Experiential learning involves learning from experience. According to Kolb, concrete experience provides the information that serves as a basis for reflection. From these reflections, we assimilate the information and form abstract concepts. We then use these concepts to develop new theories about the world, which we then actively test. Through the testing of our......

Words: 761 - Pages: 4

Premium Essay

Organizational Development and Change

...Organizational Development and Change The organizational development (OD) tradition is a practitioner-driven intervention-oriented approach to effecting organizational change via individual change, with view to increasing effectiveness. It is implemented within a problem-solving model, places a heavy accent on survey-based problem diagnosis and subordinates people to a vision of the future. Commitment-based strategies of effecting change assume that the impetus for change must come from the bottom up, whilst compliance-based strategies involve the creation of behavioural imperatives for change. Various ‘employee involvement’ strategies are reviewed, but there is little evidence for their effectiveness either as a means of securing commitment or enhanced performance, or as a means of leverage for change. Culture is assumed to be the primary vehicle for change within the OD tradition, although the relationship between culture and the change process is ill understood. Finally, the assumptions underpinning team development, and its implementation, are critically examined. The organizational culture literature itself is fraught with epistemological debate. Practitioners are interested in management by measurement and manipulation of culture. Theoreticians of culture, however, aim to understand the depth and complexity of culture. Unresolved issues remain regarding how to define culture, the difference between culture and climate, measurement/levels of analysis, and the......

Words: 13780 - Pages: 56

Free Essay

Organizational Change of the Chrysler Corporation in the 1978 Bailout and Lee Iacocca

...Organizational Change of the Chrysler Corporation in the 1978 Bailout and Lee Iacocca Dustin T. Embler BA 401 Research Paper/Case Study Abstract In the year 1978 one of the United States largest corporations was on the brink of financial crisis, the Chrysler Corporation. Hundreds of jobs, billions of taxpayer dollars, and the success of an American company all lay in the balance. Chrysler was overcome in debt due to its subpar decision making, increasing government regulations, and inability to compete with its domestic and foreign competition. Nevertheless, a hero arrived when Lee Iacocca joined as President of Chrysler to aid to its recovery in such adverse times. Fighting his way through the United States legislation for financial assistance to save Chrysler, Iacocca is able to successfully get the necessary legislation passed that will not only help him keep the company afloat but to also change the entire organization into a successful and profitable business in a matter of years. History of the Chrysler Corporation and Lee Iacocca “The Chrysler Corporation was founded in 1925 by Walter P. Chrysler, a former railroad mechanic who rose through the ranks of GM to lead the highly successful Buick Division. Chrysler did not get along well with William Durant, the founder and head of GM, and eventually left to form his own company (Braun).” “Always short of capital in this capital-intensive business, Chrysler was forced to build its cars largely of purchased......

Words: 3022 - Pages: 13

Premium Essay

Failure Analysis/Change Strategy: Blockbuster vs Netflix

...Failure Analysis/Change Strategy: Blockbuster vs Netflix LDR/531 Failure Analysis/Change Strategy: Blockbuster vs Netflix Organizational Behavior Theories The organizational behavior theories which explains Netflix’s success are two; decision-making and systems approaches. Netflix made the monumental decision to become a virtual dvd rental versus a brick and mortor provided a solution in the company’s goal and vision to be ahead of technological advances in the industry. Netflix took on the systems approach in understanding and measuring the company’s input and output processes. Netflix uses the systems approach to integrate and drive processes in developing adaptive capacities, driving innovation. Blockbusters organizational behavior theory focus was on scientific leadership. The company placed a great deal of focus on how to become more effective in the company’s brick and mortor business, redefining company objectives and direction. How employing this theory failed the company was the leadership decision to not pledge the same level or more focus on the click initiative which the company could not capture the needed momentum in becoming competitive with Netflix. Blockbuster could have had a more competitive edge over Netflix sustaining its presence in the industry if only the company could define better performance practices leveraging its click business over its brick and mortor presence. Role of the organization on the Fail/Success So how did an upstart......

Words: 1224 - Pages: 5

Premium Essay

Organizational Change

...Organizational Change If you are a business leader today there is one thing that constantly runs through your mind, “How can we continue to succeed and grow.” In today’s society it has become harder and harder to accomplish such a task. The world is ever changing and it does so in a pace that is far more rapid than that of 20 years ago. Business leaders know that change is inevitable, but where the problem lies is how to manage the change in a way that will allow for continued growth and success, but at the same time they want to be able to do so with as little stress as possible to the employees. There are hundreds of ways to make changes in an organization, and plenty of people out there pitching their ideas as the best. It is up to the business leaders to find a technique that will best suite their needs as an organization, a technique that will give them the results they are looking for, this is the case with General Motors. General Motors is made up of four different auto makers (Buick, GM, Pontiac and Chevrolet) and each one runs independently from the others. GM decided that having four independently ran divisions, which competed against one another was more costly than beneficial and they searched to find a way to change this for the better. ...

Words: 1858 - Pages: 8

Premium Essay

Talent & Firms Success/ Failure

...Talent and Firms Success/ Failure Prepared for GB 540: Economics Prepared by Amare Ayalew Student in Kaplan University Talent and Firms Success/Failure Talent is the main driving force for business success. Talent management is a process by which an organization identify, attract, manage, utilize, retain, develop and engage people to meet current and future needs (Mucha, 2004). Business need to understand and respond to their employees needs in the workplace. The completion to acquire talented workforce become more strategic than ever before. Companies in today’s talent market faces a curious paradox In both economic downturn as well as at the height of a boom. Effective talent management is essential to achieving organizational excellence. If a firm cannot keep its talent, it will be buffeted by the storms of recession or in highs of a boom, it will fail to maximize competitive edge. The ability to execute business strategy is rotted in the ability to find, attract, retain, and develop key talent. Talent management strategy needs both performance and potential. Performance is about looking back on what has been done and what was contributed and it is measured against specific objectives. Performance may or may not be an indicator of potential. Potential is about looking forward and predicting what an employee may be capable of doing in the future. It is assessed by a joint combination of observations, assessments and discussions (Mucha, 2004). Although pay and......

Words: 1691 - Pages: 7

Premium Essay

Failure Analysis/ Change Strategy

...Failure Analysis/ Change Strategy Danyel Spencer LDR/531 May 12, 2014 Mr. Ricky Owen Failure Analysis/ Change Strategy The organizational behavior basically predicted the failure of the Movie Gallery Corporation. The company begins operation in Dothan, Alabama with one store and quickly grew to five stores within the next few years. The company then embarks in diversifying their business by selling franchise rights. In the new found success the company decided to buy back these franchise stores to continue the growth of the company. The organization behavior identity became one of growth without the market research and development that would have provided them with the information that would have assist them in their continue desire to grow. The company continued to acquire other video chains and opening new stores, when their focus should have been on the changing market environment. The leadership failure to monitor the evolution of the market and poor organizational strategic planning, force the company to encounter financial difficulties. In September of 2007 Movie Gallery had to close five hundred and twenty stores, which they had four thousand and five hundred stores at the time. Within a month of the closing of the five hundred stores the company filed for chapter eleven bankruptcy protections under the United States Bankruptcy Code. (Wikipedia, 2014). Stock prices drop to all time lows which unfortunately lead to the company being liquidated to settle......

Words: 666 - Pages: 3

Premium Essay

Performance Excellence and Organizational Change

...PERFORMANCE EXCELLENCE AND ORGANIZATIONAL CHANGE Performance Excellence Profile: Park Place Lexus Click below link for Answer http://workbank247.com/q/performance-excellence-and-organizational-change/3411 http://workbank247.com/q/performance-excellence-and-organizational-change/3411 At its two locations in Plano and Grapevine, Texas, Park Place Lexus (PPL) sells and services new and pre-owned Lexus vehicles, and sells Lexus parts to the wholesale and retail markets. PPL is part of the family of Park Place Dealerships (PPD), which includes eight dealerships with 12 franchises. In 1994, PPL began benchmarking business practices outside of the automobile industry, with the intent of emulating the best business practices it could find and bringing innovation to the industry. Four years later, the company conducted its first internal assessment using the Baldrige criteria for performance excellence to identify areas for improvement, and adopted the brand “Experts in Excellence” as a sign of its dedication to quality. Today, PPL ranks among the country’s top Lexus dealers. With its mission, “To provide an extraordinary automotive purchase and ownership experience” as a foundation, the dealership’s “House of Quality” graphically depicts the organization’s direction and represents its culture. The four Core Convictions—integrity, outstanding client experience, commitment, and winning—provide the structure of the house. Known as “The Big Hairy ...

Words: 10049 - Pages: 41

Free Essay

Failure Analyis/Change Strateg

...Failure Analysis/Change Strategy Learning Team A LDR/531 Organizational Leadership October 21, 2014 Dr. Nancy Atkins Failure and Change Strategy for a Business Circuit City was one of the top selling electronic retailers in the United States. The company was based out of Richmond, Virginia started by Samuel S. Wurtzel in 1949. Some say bad real estate deals, lack of focus on being the low cost seller, mistakes with its sales force and straying from its core led to their demise in 2009. The success of Amazon has much to do with Jeff Bezos, the founder and Chief Executive Officer (CEO). His unique combination of character traits and business strategy has driven Amazon to the top of the online retail world. In 2011, Amazon.com was posting revenues of nearly $50 billion per year (Price III, 2013). Part 1: Business Failure/Success Analysis Circuit City Objective (Carolyn Whitaker) Circuit City is dedicated to the highest quality of customer service which is done with the highest respect. With a highly praised customer service and satisfaction, it will improve our sales performance. For Circuit City to effectively sell products to customers, sales representatives will try to understand and fulfil the customers’ needs. With a highly trained team of associates, Circuit City will be successful in the long run. Circuit City Vision/Mission Statement (Carolyn Whitaker) Respect - “Our Associates are our greatest assets. We expect every Associate to demonstrate that they...

Words: 2215 - Pages: 9

Premium Essay

Organizational Change

...Journal of Change Management Vol. 5, No. 4, 369 –380, December 2005 Organisational Change Management: A Critical Review RUNE TODNEM BY Queen Margaret University College, Edinburgh, UK ABSTRACT It can be argued that the successful management of change is crucial to any organisation in order to survive and succeed in the present highly competitive and continuously evolving business environment. However, theories and approaches to change management currently available to academics and practitioners are often contradictory, mostly lacking empirical evidence and supported by unchallenged hypotheses concerning the nature of contemporary organisational change management. The purpose of this article is, therefore, to provide a critical review of some of the main theories and approaches to organisational change management as an important first step towards constructing a new framework for managing change. The article concludes with recommendations for further research. KEY WORDS : Critical review; theories and approaches Introduction Change management has been defined as ‘the process of continually renewing an organization’s direction, structure, and capabilities to serve the ever-changing needs of external and internal customers’ (Moran and Brightman, 2001: 111). According to Burnes (2004) change is an ever-present feature of organisational life, both at an operational and strategic level. Therefore, there should be no doubt regarding the importance to any organisation of...

Words: 5198 - Pages: 21

Premium Essay

Organizational Development and Change

...Chapter 5 Organizational Development and Change Chapter Overview The organizational development (OD) tradition is a practitioner-driven intervention-oriented approach to effecting organizational change via individual change, with view to increasing effectiveness. It is implemented within a problem-solving model, places a heavy accent on survey-based problem diagnosis and subordinates people to a vision of the future. Commitment-based strategies of effecting change assume that the impetus for change must come from the bottom up, whilst compliance-based strategies involve the creation of behavioural imperatives for change. Various ‘employee involvement’ strategies are reviewed, but there is little evidence for their effectiveness either as a means of securing commitment or enhanced performance, or as a means of leverage for change. Culture is assumed to be the primary vehicle for change within the OD tradition, although the relationship between culture and the change process is ill understood. Finally, the assumptions underpinning team development, and its implementation, are critically examined. The organizational culture literature itself is fraught with epistemological debate. Practitioners are interested in management by measurement and manipulation of culture. Theoreticians of culture, however, aim to understand the depth and complexity of culture. Unresolved issues remain regarding how to define culture, the difference between culture and climate,......

Words: 13784 - Pages: 56

Premium Essay

Organizational Change

...Organizational Change in the Insurance Company The organizational change which will be discussed in this paper involves a large insurance company who wants to increase market share from the sale of their cutting edge variable annuity product. The outside sales force, known as wholesalers have set territories throughout the United States. Current studies have determined that many of the existing leads, who are Financial Advisors, are not being contacted and so therefore potential new business and new relationships are being missed. Upper Management has decided to institute a major organizational change in the form of creating smaller territories for existing wholesalers and hiring new, inexperienced wholesalers with the objective that there will be more effective penetration and an increase in business. The key stakeholders who will be involved are all employees, management and shareholders. The stakeholders with the most significant impact will be the existing internal and external wholesalers and the training department staff. These departments will have challenges such as maintaining current business while finding new business, hiring new people will create challenge for the managers and the training department. The existing wholesalers will need to restructure their business which will meet with resistance. This paper will address the change management approach, recommended action steps as wells as overcoming various obstacles in order to effect the change and......

Words: 2421 - Pages: 10

Premium Essay

Success Is Not Failure

...Success Is Not Final, Failure Is Not Fatal What is failure? William Zinsser doesn’t believe that just because you drop out, doesn’t mean you just failed the toughest class you would ever take called life. Confucius once said, “Success depends upon previous preparation, and without such preparation there is sure to be failure.” Just like Zinsser Confucius also thought that one’s success doesn’t have to depend on working hard it could also depend on failing at something that doesn’t work. There’s rarely such a thing as failure usually it’s success at finding what doesn’t work. William Zinsser was a writing professor at Yale University in the 1970. William Zinsser was also a writer, columnist, editor, and critic. William Zinsser thought that, one shouldn’t be afraid to fail, because sometimes one will find what one is really looking for in failing. College isn’t for everybody one should standup for oneself and do what one really love to do. It’s okay to dropout but it shouldn’t be a goal of yours. Sometimes one has to fail to succeed. One should also stay true to who one’s self to succeed. “For the young, dropping out is often a way of dropping in.” William Zinsser stated in ‘The Right To Fail’ as an over all conclusion to what a dropout is defined as. Consequently, success is simply a matter of luck confined in anybody that has once failed then succeeded. “I only mean that failure isn’t bad in itself, or success automatically good.” Zinsser stated in passage......

Words: 811 - Pages: 4