Nigel Andrews and General Electric Plastics (A)

Issues

The steering committee is refusing to have a meeting for Workout IV because it is scheduled on Wednesday September 6^th; a day the steering committee decided would be “meeting-free.”  Larry Bossidy (Bossidy) has this date locked into his calendar in order to observe the Workout session. Rescheduling the meeting could take up to three months.

Issue Analysis

Approaching Large-Scale Change

In order to achieve the “lasting and positive large scale change” spoken of by Peggy Holman (Holman), General Electric (GE) had to completely move away from past organizational anchors toward an operation “characterized by ‘speed, simplicity, and self-confidence.’” This organizational change would not simply become an event that was constructed of months of preparation and anticipation only to produce excitement and increased productivity in the short-term. Instead, GE sought for a long-term impact that would, as Holman advocates, become a process of endless dedication and consistency to the revolutionary and systematic operational change.

Systemic, High-Involvement Change

Holman says that achieving large-scale change involves “a wide array of people” who are committed to an approach of systemic change. Nigel Andrews’ (Andrews) staff and the “steering committee” of employees represented roughly 50 to 75 of many of the most dedicated employees within GE to help streamline their most important operational issues. Gathering employees with the greatest conviction to the vision of GE complements Holman’s view on the importance of establishing what, who, and how, through systemic, high-involvement change. Having these preliminary systems in place, with employees from across all functions, ensures the approach to change is likely to be accepted and implemented as the organization renovates operations.

Shared Vision through Asch Conditions

Upon congregating around the issues with Workout, employees immediately began collectively defining their purpose and categorizing the people that would participate in affecting the changes, the steering committee being the most involved. Despite criticism and busy schedules, members of this group met often to understand what they aspired to; doing so organically—without manuals to guide their approach.  This commitment to meet often exemplifies Asch’s conditions to uncovering the conditions for trust within the Workout program. The effectiveness of developing shared vision is demonstrated at the end of Workout I, when a recommendation to make Wednesday free of meetings is supported by virtually all participants. It was noted that the proposal was “greeted with thunderous applause.” This is the type of united energy and shared vision was described by Holman as a bi-product of companies applying Asch conditions when executing a large-scale change.

Informal Caucus

The chair of the steering committee mentioned that the need to reschedule the September session was a matter of principle. He then said that violating the work-free day would “kill Workout.” It would be wise for Andrews to consider how significant the decision to proceed with the workshop is for the committee. This has become a matter of integrity for Andrews. If he moves forward with the meeting, then his commitment will not have as much value to those who support him. This could be a devastating decision for his career—especially when Bossidy has not shown much interest in the program.

Recommendations

Re-scheduling Workout IV

Currently, schedules for both Bossidy and Andrews appear non-negotiable. Therefore, Andrews should arrange to have Bossidy observe a Workout session as soon as his schedule allows. Bossidy should be informed that if a specific date is not available to evaluate the workshops that he is welcome to drop in on a Workout at his leisure. A debriefing e-mail should be sent to Bossidy with details of how the meeting was structured, recommendations that were mentioned, how the recommendations were received, information on how the group is moving forward, as well as details for the upcoming Workout V meeting.

In the meantime, Workout IV should be scheduled for Tuesday September 5^th and not Wednesday September 6^th.  This will maintain the incredible momentum established with the previous Workout meetings. Andrews should contact the steering committee chair immediately to ensure this plan of action sounds reasonable. An outline should then be developed for the Workout. 

Vision: Looking At the End from the Beginning

What Vision Is

A King James Version of the Bible says that “without vision the people perish.” Vision has been a fundamental principle throughout history due to its innate ability to stimulate hope in people. For example, as a fly fisherman vision is cast before a fishing lure in order to ensure the time, resources, and energy are utilized to their fullest capacity. In the movie A River Runs Through It, Paul, a character played by Brad Pitt, beautifully displays his vision each occasion taken to fly fish in the nearby Blackfoot River. With each trip Paul is depicted with a look of determination to bring home not one, but several Brown and Rainbow Trout. This zeal is then executed in an artful display as Paul tactfully casts his line upon the water to entertain and cajole his audience to impulsively act on their instincts and bite the lure.

The culmination of A River Runs Through It is witnessed in Paul’s enduring performance to catch a fish who does not reel-in as easily as others. Paul’s vision becomes tested significantly more than past casts. In order for Paul to catch this fish, he must survive being pulled with the fish down the powerful rushing river containing rapids, rocks, and tree limbs. However, having the image of completely reeling in the fish, every necessary action is taken regardless of backlash, fight of the fish, or bruising from being pulled into oncoming rocks. After a considerable change in traditional fly fishing measures, Paul is rewarded for the strides taken toward his vision.

Jick says the true value of a vision is to guide behavior. There is no question that Paul’s victorious experience with the Hawg-like trout was led by an adapting behavior. In order to become the recipient of Paul’s end objective, it was necessary for him to adjust his behavior by degrees in order to attract, set the hook, and successfully bring home the prize.

This fly fishing event is further supported as the result of vision when Jick identifies various characteristics of vision being memorable, exciting and inspiring, challenging, excellence centered, and tangible. Each of these attributes has been peppered throughout Paul’s story, especially the experience being excellence centered. Paul’s brother Norman said of this awe-inspiring occurrence that “he knew at that moment he was witnessing perfection.” [1]These words hold considerable weight considering the majority of Norman and Paul’s childhood was spent fly fishing together. Over the many years fly-fishing, Paul’s expertise had developed into near perfection in the sport. His ability to visualize his objective, recognize the need to be a creator of circumstances, and shift behaviors to meet the demands of his craft’s vision became incredibly fruitful.

What Vision Is Not

Without a strategic process to meet the demands vision, vision becomes merely a nice thought. If it is not effectively constructed, shared vision can be perceived as being unrealistic and be met with skepticism. Vision is not a whimsically conceived idea in the mind and then quickly announced as the current guiding element for the organization. Rather, in most cases, vision is developed over-time; as an idea is planted in the mind, and then refined and supported with purpose, tactic, and accountability.

How Failure to Create Effective Vision Does Not Lead to Success

In the article The Vision Thing it is said that “vision is considered fundamental for helping a firm, quite literally, visualize its future.” In 2011, an effective visionary forecast was not well executed by Reed Hastings (Hastings), the Chief Executive Officer (CEO) of a popular DVD-by-mail business called Netflix. Rather than craft a vision with a long-term strategy, Hastings announced a change with the hopes for a short-term gain in profit margin. Without considering the end results to his subscriber base, Hastings introduced the separation of DVD and streaming into two payment plans and price increase changes in an e-mail. In addition, the formerly all-encompassing service offered at a reasonable one-time fee, would not be called Netflix anymore, but would be changed to Qwikster. [2]

 Jick says that vision “grabs people” to feel proud of something they can contrast with the realities of today and tomorrow. Hastings decision to make extremely drastic and abrupt changes did not grab people in a positive manner what-so-ever. In fact, almost 800,000 subscribers cancelled their Netflix memberships in the quarter after the e-mail announcement was sent. [3] Additionally, in just a couple of months their stock price plummeted from around $300 per share in July 2011 to about $69 per share in November 2011.[4] As a change implementor, Hastings’s experience not creating an effective vision is analogous to an Indiana Jones movie Jick describes in Implementing Change, “It started out with a real nice beginning. Then suddenly we got one disaster after another. The boulder just missed us, and we got the snake in the cockpit of the airplane—that’s what it’s all about! You’ve got to be down in the mud and the blood and the beer.” However, Jick uses this analogy to describe how implementing visionary changes can lead to success.

How to Develop Vision

According to Jick, visions have been created in many different ways. Sometimes personal experiences and inspiration is sufficient to create effective vision. However, most organizations craft their vision based on a systematic process of information-gathering. Either way, whether this process takes places at a workshop or off-site retreat with key players or via public relations or advertising staff, I agree with Jick when he says that the three most common are: CEO/leader developed, CEO-senior team develop, and bottom-up developed. What these three groups have in common is the leader at the top.

The CEO/leader must be heavily involved in the process of developing effective vision as he/she naturally commands acute communication sensitivity from the constituents involved. When this leader speaks, it is authoritative in nature, and is received as the guiding resource for all upcoming organizational activities.

Warren Bennis discovered that when creating vision for long-term success, a study of the top leaders throughout history indicates that a visionary CEO/leader must adequately search for ideas until there is a clear on concise vision that articulates a strategic direction and cultural values, and then motivate the organization to adopt the vision through as many persuasive communication channels as available. Also, since most of the recipients of change will not understand or embrace the vision immediately, it will be critical that leadership at all degrees advocate an empathetic approach to understand concerns and how the vision affects people as an individual and as a department. The vision should concentrate of the rudimentary strengths of the organization and resonate with how the people being guided by the vision can grow as a bi-product of the implemented vision.  Measures of success must also be enacted in order to assist the organization in being accountable to the end results.

How Creating Effective Vision Can Lead to Success

Effective visionaries are born out of many years of persistence, patience, and improvement. Over the many years fly-fishing, Paul’s expertise had developed into near perfection in the sport. Eventually, he developed an incredible ability to visualize his objective, recognize the need to be a creator of circumstances, and shift behaviors to meet his visionary objective. These characteristics were developed from his childhood.  

In the case of Netflix, Hastings may have had vision, but in order to execute it effectively it should have had the long-term interests in mind for stakeholders. If he would have delineated the impact to the organization in the long-term, considering the role he plays as a change leader, the stock price of Netflix may have risen over $300 a share instead of the 60% decline they devastatingly experienced.

When crafting effective vision, the end result of success must be defined. Next, distinct and measurable tactics should be directly correlated with the end objectives to ensure accountability and to instill an increase in motivation to that end.

Bibliography

1.

Drew. (n.d.). A River Runs Through It Script. Retrieved November 15, 2012, from Script-o-rama.com: http://www.script-o-rama.com/movie_scripts/r/river-runs-through-it-script.html

2. Fox Business. (2011, September 19). Netflix CEO Aplogizes, Renames DVD Division Qwikster. Retrieved November 15, 2012, from FoxNews.com: http://www.foxnews.com/tech/2011/09/19/netflix-splits-in-two-renames-dvd-division-qwikster/

3. Pepitone, J. (2011, October 24). Netflix loses 800,000 Subscribers. Retrieved Novemeber 15, 2012, from CNN Money: http://money.cnn.com/2011/10/24/technology/netflix_earnings/index.htm

4. Reisinger, D. (2011, November 23). How low can Netflix's stock go? Much lower, analysts say. Retrieved November 15, 2012, from cnet.com: http://news.cnet.com/8301-13506_3-57330305-17/how-low-can-netflixs-stock-go-much-lower-analysts-say/

 

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[1] (Drew)

[2] (Fox Business, 2011)

[3] (Pepitone, 2011)

[4] (Reisinger, 2011)

Forecasting the Need for Change

Forecasting the Need for Change

It is noteworthy to recognize the mature stage of James’s leadership. It would seem obvious that a manager should be aware of economic and industry changes comparable to efforts of the executive officers of the organization. However, it has been my experience that most managers focus on the people within their department and develop blinders toward anything externally—as if to hope higher leadership will become aware of potential problematic issues.

GlaxoSmithKline (GSK) is a case example of not identifying an economic or industry change that portended a need to meet the financial needs of their consumers until it was far too late. The results of neglecting initial indications of the financial concerns of AIDS victims, led to a the development of several interest groups who formed similar alliances to campaign against GSK; with the mission to obliterate the unethical prices weighing on the people of South Africa and other developing countries. If GSK had made it a priority to evaluate and discuss potential threats to their organizational success, relationships of trust and profit margins could have been maintained. Instead, neglect of the arduous costs upon consumers necessitated the rise of interest groups whose goal was to “hit where it would hurt the most—GSK’s share price.” Their campaign was so effective that most of the profits within South Africa and other nations in similar circumstances were reduced to almost nothing.

Why Change Now

Given the perspective James has gained in terms of economic and industry changes, it is important to enact change now. It is important for James to realize that change will happen by degrees, but must be initiated as soon as possible in order to prevent potential turbulence that may surface in the near future, as it did for GSK.  In addition, change must begin now—due to the amount of time and resources that may be needed. In Implementing Change, Jick says that “No matter how much effort companies invest in preparation and workshops—not to mention pep rallies, banners, and pin—organizations are invariably insufficiently prepared for the difficulties of implementing change.” Once again, James must begin the change process now in order to gather sufficient organizational necessities to hedge against any unforeseen forces both inside and outside the organization.

In Common Pitfalls of Implementation, survey results of 93 medium and large-sized firms uncovered a trend of seven major problematic issues that developed with at least 60 percent of the organizations. The study revealed that in most cases implementation: 1) takes more time than originally allocated, 2) major unforeseen issues surfaced during the process of change, 3) implementation activities were not effective enough, 4) competing activities and crises detracted from implementing the change, 5) employees involved with change implementation were not sufficient, 6) training was not adequate for lower-level employees, 7) and there were uncontrollable factors in the external environment. Having previously met with his superiors to help them become aware of his concerns, James must consider how these seven points relate to changes that will need to be made in his department.

How to Initiate Change

Having already met with upper management to emphasize the economic and industry alarms, regardless of what is said for or against James’s argument to implement change; he must consider the leaders degree of support based on the information delivered and begin analyzing the seven points as a guide in developing a strategic plan of action. These efforts will assist in implementation of change in his department and will further illustrate James’s desire to improve the organizations growth.

If James’s direct leadership did not agree with his argument what-so-ever, then James must request an additional meeting with the higher authority. Being that the manager is resistant to what the information that surfaced in the previous meeting, this meeting will serve to remind the leader of the respect he has toward this person; and to help the leader understand how important their role would be in making necessary changes now to prevent any future harm to the organization.

 In the meeting, James should simply ask him/her what their perspective is of the current economic and industry status; thereby, applying the principle of “Seek First to Understand, then to be Understood” in Stephen Covey’s book titled The 7 Habits of Highly Effective People. When applied effectively, this habit promotes an empathetic and trusting environment that should then allow James to effectively deliver the primary issues of concern as he perceives them, to layout the seven principles of implementing change as James thinks they apply to his department, and to receive input. The ultimate objective of this meeting is to have two way communications and to dialogue about the potential risks of waiting to make changes.

Why People Resist Change

According to Jick, the initial resistant reactions to the need to make changes to prepare for external forces are a direct result of human behavior. People are prone to perceiving change as a threat to their position, and become immobilized and defensive. James must realize that now that he has stated his opinion of what could be severely detrimental to the organization; that rather than resist those resisting change, it will be critical to create an environment capable of receiving change.  The best managerial example of creating an environment of great camaraderie among her team given the uncertain horizon is Ofra Sherman (Sherman) of Wellcome Israel. Sherman was placed in a position of complete isolation, having identified several discouraging issues with upper management. However, instead of allowing her department to become shaken she too recognized the need to “start developing a strategy” and maintained leading her team forward.

Being a Change Implementor

James’s strategy should be similar to Sherman’s in how he fulfills his duties to his department. Also, Sherman was faced with the question of how to approach upper management regarding several issues as they related to the future. Because her company was transitioning into an acquisition with GSK with no real notice, she was uncertain on which leader to communicate to and support. James is fortunate in that, even if an acquisition occurred, he has time to communicate and support his leaders.

Jick would recommend James to generate a sense of urgency “without appearing to be fabricating an emergency, or crying wolf.” After creating urgency and a shared vision in the second meeting with upper management, James’s intent should be to gain an alliance with this leader as a change advocate. In addition to creating a culture that can adapt to change, the most effective thing James can do as a change implentor is to recognize that any large-scale change must be undertaken with an authoritative leader who can command a greater margin of support. James can seek to understand what the leader would want James to do within his department and begin identifying what Jick calls the enabling structures.

Preparing Change Recipients

Whether or not James gains the support of leadership to support a strong leader role, it is strongly advised that James begin preparing change recipients within his department. He should begin establishing enabling structures to mitigate uncertainty given the economy and the industry conditions. The most relevant issues within the seven points mentioned by Jick relate to training lower level employees and identifying current processes that could be done more effectively in order to reduce the amount of time and focus given an unforeseen even. These two points should be introduced and discussed within James’s department to understand how his team thinks they should be handled. Then as a team, they should schedule measures of implementation in front of the group on a calendar so as to improve focus and accountability. Enacting these enabling structures will further prepare the department for future change and also help to stimulate the urgency for others within the organization to give adequate consideration to preparing for what could be developing economy and industry-wide forces of change. 

Wellcome Israel Case Study

Wellcome Israel Case Study (A)

Issues

Ofra Sherman (Sherman) is in a predicament foreign to anything she has ever encountered. With the acquisition between Wellcome and Glaxo, she is striving to determine whether or not to succumb to a new cultural environment, due to the upcoming merger, or to begin sending resumes to find new work. Her decision to stay or leave has caused her great anxiety primarily because of the commitment she has demonstrated to Wellcome, and because of the loyalty she has to her team of employees. In order to determine whether or not to remain with the upcoming changes on June 1, she must decide whether or not to speak to the general manager of Glaxo to understand what the firm is interested in doing with their department.

In order to develop an effective strategy moving forward, it is important to understand how Sherman has handled the various changes within Wellcome to date, as well as the managerial atmosphere of trust she has instituted thus far. This analysis will supply a foundation of influential options to create reliable, relevant, and product decisions in creating an environment capable of effective change.

Issue Analysis

Change Stages

It seems natural for a person in Sherman’s circumstances to be in and out of shock. Currently, her last five years of time and efforts within her managerial position are in jeopardy or are being placed at a standstill. In addition, it is no wonder that it has been difficult to know how to act considering a conflicting argument between a former leader and current leader within Promedico on how to act for the best interests of the marketing department.

Confusion and ambiguity may have been a trending pattern within both Wellcome and Promedico as seen in the lack of concrete organizational structure with items such as reporting lines. Employees identified Sherman as someone with incredible autonomy. Her display of independence could be a defensive retreat due to the unstable appearance of her working environment where she was unable to delineate her allegiance due to being in the middle of two companies with an undefined relationship.

Sherman displays and uncanny ability to execute her role as the manager of Wellcome Israel, despite the fluctuating degrees of change and responsibility. In the midst of change, the ability Sherman has to earn the trust and respect from her team is admirable. She is not only a manager to the 14 people she leads, but also a friend. This is due to her efforts to effectively communicate and empower the employees. Her exertions seem a result of a pattern being reciprocated—where the more energy she puts into the growth and development of her department, the more energy, comfort, and assertiveness she develops to take proactive risks for herself and for her team.

Managerial Atmosphere

Communicating the vision for the marketing department—given the abruptness of an unpredictable situation, is the most important role for Sherman. She has been remarkable in being quick to access the needs of the team given the circumstances. One of her strongest attributes has been her discipline to filter the message she delivers to her department. It has been her advantage not to engage employees in the conflicting messages of Sherman’s various managers. Involving employees in this dialogue could destroy moral. However, it may be in the best interest of the department to allow for people to vent their frustrations before she decides whether or not to approach Glaxo management. It will be important to understand where members of her team are as recipients of change; in order to gaining the mental framework and synergy to prepare for a departmental change.  Once the environment has been created for people to be capable of transitioning, Sherman’s talent of motivation will be ripe for execution.

Recommendations

Creating the Capability for Change

Sherman has already begun rethinking positive steps toward change. She has collected many critical insights to provide her with the energy and options of how to move forward in the change process. She must now gather her department employees for a meeting to council together. She should encourage the department to ask questions and should seek to understand the degrees of frustration that have surfaced in their work and family lives as a result of the unplanned event. Because there is a culture of trust and respect established, team -members are likely to be open to explaining their perspective on the situation, dialogue back-and-forth in order to identify current and potential options, and to explore risks. The success of the meeting will be directly correlated to the atmosphere Sherman and employees have created together, where sharing and collaboration is a natural occurrence. However, it will be important for Sherman to be the mediator of the discussion in order to ensure that in the end of their meeting people have felt listened-to and validated, options have been entertained sufficiently, and a mutual understanding of action is obtained.

How to Act

 After meeting with her team, Sherman should make time to consider both the advantages and disadvantages of carrying the team into the transition or searching for employment elsewhere. She must consider the overall mood at the end of the meeting, specific points of action the group would adopt given best and worst case scenarios, and how this change would be good personally and for the individuals of the group.

Upon collecting the most influential advantages and disadvantages moving forward, Sherman should contact Glaxo management and inform them of her desire to understand the vision for the company acquisition. She should then prepare for a meeting, acknowledging that the points of discussion that surfaced when counseling with her team may help to persuade management to retain the marketing department. She should also e-mail a list of items and minutes she would like to review. Also, in her preparations, she should consider the tremendous growth she would undertake during and after the merger. Realizing the amount of growth and accomplishment that will take place personally will stimulate an increased level of security and capability given abrupt and ambiguous circumstances in the future.

Leading Culture Change at Seagram

Issues

Seagram’s senior management’s greatest business challenge has been maintaining an image of who they are to both the world and to employees. Much of this challenge is due to a lack of effective communication as a culture. Additionally, the company has been structured in a hierarchical fashion. This configuration has not allowed for a culture that is innovative, cooperative, communicative, and customer focused.

Issue Analysis

So far Seagram has quickly and commendably executed their cultural change. Since 1992, when operating income growth experienced significant sobriety, Bronfman and executives have successfully reinvented their image, not only culturally; but have expanded globally, stimulated the excitement and enthusiasm of hundreds of employees throughout Seagram through their reengineering efforts, and have developed a strategy to improve behavior and business processes by listening and responding to employees through vehicles such as focus groups.

Additionally, Bronfman has increased the innovative efforts of his departments by virtue of his actions to identify the true needs of customers via examination best practices of other companies. This process took almost nine months to adequately achieve. Over the course of this examination, Bronfman’s efforts must have inspired senior executives and other employees innovate and become more collaborate in many departments.

One of the most pivotal steps Bronfman has taken to gain the trust and support for developing an underlying set of values has been involving his constituents in the process of developing the values in focus groups. This intimate setting allowed employees who represented all businesses, all functions, at all levels, to have a voice on whether or not creating a set of values was important in improving the day-to-day work environment. Not only did management ask for their opinions, but they went a step further to involve individuals by inviting them to make suggestions about how to introduce and communicate the values. As an employee this communicates that their opinions are valued, and that leaders want to develop qualities worthy of promotion in the company. Employees may take this principle of “focusing on what the person is becoming” and then apply it to their customers.

Bronfman has provided senior and general management a great mentor and exemplar of how to lead. He has especially demonstrated this in how to act in uncertain and unfavorable circumstances. The 1990’s were full of setbacks and disappointments for Seagram as they faced increased taxes on liquor, a recession, increased regulation, etc. and yet the company is moving forward enthusiastically toward becoming the “best managed company and growing 15 percent. If a member of the senior management executives becomes Chief Executive Officer (CEO), they will know how to respond to competitive forces without having to read a description of duties written of what makes a successful CEO at Seagram.

Bronfman’s understanding of the root motive for effective implementation of the cultural differences was not completely accurate or effective. Often he would emphatically declare that values will be the primary stimulus in changing behavior. This is a fallacy. There is a better way. Rather than focus as much time and attention as they have creating a “corporate religion,” it seems that the focus of the corporation should be to continue moving the new organizational context forward. This context has been developed within the new business processes.

Developing new business processes will cause the change in attitudes and behaviors senior management wants to have as a driving force of affectivity.  As processes are more distinctly adopted with the departments of the company, new roles will be imposed, new responsibilities, and new relationships of communication will be direct results of placing and guiding people into the new organizational context.

Recommendations

The most time, cost, and emotionally effective decision executives can make moving forward is related to how management will adopt the cultures of various departments within the company. Leadership should advertise “The Seagram Values” to be used only as a measuring stick of how to act given department-related circumstances. The values should be used as a method of communication of what type of employees work within Seagram, but not as a measure of success.

The true measure of success will be in the growth of individual departments within the company. Each department will be expected to meet with their direct manager in order to determine how the values specifically apply to their department. Even more specifically, individuals will sit down with management to determine how the values relate to their distinct operational, day-to-day tactics within their role. Employees will be expected to provide a measurable goal that includes a date to achieve various objectives.

Management’s role in assisting success will not be through micromanaging the goals developed by individuals within their department, but will consistently create a climate of that empowers the team with resources that can help facilitate needed changes. Additionally, management will be expected to report the overall direction of the department as it relates to a company-wide objective, examples of how employees are implementing the values of the company within their sector of operations, and how individuals are going to grow within the company. This meeting will often result in higher management sharing other lessons of both success and failures of other various departments. Lastly, after discussing the needs of the division, it may be determined that specific employees need to be moved into another role within the department or into another area within Seagram in order to continue to stimulate a climate for change.

When employees are moved into new roles they will have opportunities to develop new competences and be provided with greater opportunities to innovate and grow into the future leadership of Seagram. This pattern interrupt will increase participation in Seagram’s vision to continue diversifying in their market segment and will better equip the individual to adapt to change in the future. This person should become a significantly greater asset to the company and in society as they increase their capability to adapt to a changing competitive environment. 

Marconi Case Study

written by Eddie Glines, Lance King, Masimba Ruwo

                For the Marconi case we will analyze the case reading against “The Ten Commandments of Implementing Change” in Jick and Peiperl.

The first commandment is to analyze the organization and its need for change. Part of this task is to understand how effective implementation will be based on the history of other changes. Marconi was somewhat unique in that they went through a very long period of control under a conservative to a fault managing director. By the time the shareholder had enough of the slow growth the company was near crisis resulting in a quick transition from little change over decades to many large changes quickly. Lord Simpson the new CEO “quickly set about restructuring”. These large and quick changes created a threatening environment for the employees as the case author describes the changes sent a clear message that “things would ‘not be the same again’” Given the past history of the company moving so slowly in the past, a better approach would have been to start small and simple with incremental success to bringing those skeptical of the change into the fold. The next CEO, Mike Parton continued to make this same mistake. However, he was in a corner with the financials of the company and needed to make the changes quickly to keep the company afloat. Even so these sweeping changes seemed to take place before he had extensive meetings to communicate and convert his top leaders to his vision for the company.

Indeed creating a shared vision and common direction is the second commandment for implementing change. Mike Parton took things out of order by creating an action plan and acting quickly without apparently providing his vision of where he was going. His short term action plan was described as selling non-core businesses, cut jobs, and use cash from these cuts to bring down the debt. All this he did within the first quarter of being CEO. Little wonder morale was after all these cuts. Had Parton explained his vision to employees at all levels in the company and the logic behind what he was doing, the ones left after all the cutting would have been more confident of what was happening and the future of the company. Indeed a survey was taken and 62% of the top managers had considered leaving the company. I believe if Parton would have explained his vision effectively before all the cuts, that number would be significantly lower.

Another source of dissatisfaction among employees had to have been the inability of the company to create a current identity with employees as evidence by the lack of integration of the systems and processes as described by Parton “We have many companies with different processes that are not integrated.” This is the third commandment of integration to separate from the past. I know from personal experience being in a company for the last seven years that has been acquired, and then acquired several other companies that when the systems are slow to integrate there is confusion, insecurity, and low moral as the result.

Another aspect Parton could have done better was in creating a sense of urgency, the fourth commandment. While it was not hard to see a real sense of urgency due to the cuts Parton was making, some middle managers still felt, “if they keep being quiet and go about their business…the world will forget and leave the company alone” Amidst the drastic cost cuts the managers still felt this way? They must have not understood the financial situation fully even in the face of what was going on around them. This was a result of not starting with the vision and converting them to urgency of implementing the vision in the first place.

Moving forward, Parton is going to have to use his leadership position to stir the company in a good direction. However, the position and the authority inherent with it are not going to be adequate. He is going to have to use his experience in senior managerial position and his understanding of finance matters to navigate the companies trying times. For the implementation of the change process, Marconi as a whole must rally behind its change visionary.

It is of utmost importance that the board of directors and any stakeholders of the company are onboard. This allows for the creation of swift communication channels and great teamwork. The strength of the management team formulating and executing the change procedures needs to be versatile enough to tackle the different barriers that might arise.  The negative reception of the change policies and the already existing low morale might be two crucial barriers.

During the conference Parton failed to convey a sense of importance of all goals to external stakeholders. One of the most important measures of Parton’s change success is going to be the increased value to shareholders and external investors. The general perception of Marconi, as a company, is a vital aspect of a successful transition.

Two very important areas that Parton succeeded with the Conference is getting out a general sense of what needs to be done and to prepare his counterparts of what was to come. In the future, this process is going to go through several microscopic analysis to guide the changes. The first is the creation of a document that acts as a mission statement. This document could outline the specific communication channels that employees will use to interact with senior management. One complain that was brought up during the conference was the accessibility of senior management. A document of this nature clears up any ambiguity that a general undocumented goal might possess. This can be followed by the dictation of boundaries. These boundaries will guide the day-to-day company activities: an example is a code of conduct. By providing boundaries Parton insures that the path each and every Marconi employee envisions of the goal is set within predetermined guidelines. This solidifies the importance of the goals and could also be a motivating factor. Progress can then be measured using a diagnostic system that provides metrics. This is a very complex part of the whole process. This is due to the underlining relationships that exist between internal success and external criticism. The company could potentially create a positive image by increasing overhead expenses, an action which would not be favorable with external critics of company performance. Finally, a system that allows the change to be monitored interactively becomes very important. The business in which Marconi operates in not a stagnant one therefore the inability of the company to regularly inspect its success metrics and reevaluate them accordingly is crucial.

The Marconi Way may be considered both a practical and a symbolic structure that it enables individuals toward the vision of the firm. It starts as a literal symbolic structure as it helps people identify the shared beliefs of the company. When put into practice, these added beliefs can become a collective driving force leading the company toward the standards and expectations. This shift of paradigm leads to a literal shift in attitudes and behaviors. However, the only way the actions of the Marconi people will once again illustrate the passion of individuals for customers, colleagues, communities, and the stakeholders experienced prior to the dotcom disruption, is if they adopt a similar methodology of defining the company. This evaluation can be similar to the initiative launched by John Mayo and Rob Meakin in 1999.

After identifying the most important departments that have struggled within the company, a list should be created of people who subscribe to the vision outlined by Parton. These people should then be enlisted to help re-establish The Marconi Way. And because some middle managers have chosen to keep quiet instead of surfacing department-related issues, an award system should be instituted. Not only will incentivizing management assist in ultimately improving profit margins, but it will also help to benefit the company as employees begin re-committing to individually help stimulate the values and culture of the company. Option plans have proven to be effective in the past, Incentives might begin with an option-plan that vests in five years and is correlated with a target to increase the value of the firm by twenty percent.

A similar incentive would be granted to remaining employees subject to a twenty percent increase in management selected metrics in various departments over a six month period. Though this is a short period of time, it may provide the stimulus the culture needs to thrive again in the competitive telecommunications industry.

These two sequential incentive-based structures would be most effectively implemented by micro-managing employee tasks until management felt shared beliefs, attitudes, and standards increase and are maintained for at least a quarter.

Parton’s effectiveness in his conference stated a clear and concise message, style, and intent to management—so much so that not a single person applauded when he finished speaking. His objective in delivering his address was to speak to individuals who wanted to make the most of their current situation.

The silence of his audience may have been due to a distinct recognition of the need to get back to the fundamental principles of what set the company apart from competition. Additionally, these leaders may have felt a sense of sorrow for their lack responsibility in being a change leader when it was needed most. Parton was brutally honest in his judgment of the current circumstances and knew that not all of his leadership would subscribe to the upcoming objectives. Parton outlined the vision of getting back to the basics with beautiful simplicity as he identified management’s need to build confidence in the employee’s perspective of the business model, processes, and culture. This will need to be executed from the ground up and will not be easy due to the disrupted confidence of a former enthusiastic, motivated, and ambitious Marconi team in mid-2000.

Of all the employees at Marconi, Parton’s management was impacted the most.   To supplement his objective description, he provided specific cues that are poignant, but that will need to be consistently addressed throughout the implementation of the strategy recently introduced; especially because Parton mentioned that leadership must be relentless on commitments. This must be a top down tactic applied on a day-to-day basis. It is recommended that the company is results-oriented in, not only establishing dates to fulfill various strategy tactics, but also in establishing what the specific roles employees are within various departments. Micromanaging may be needed for the first few months of getting fundamentals re-established as they pertain to the successful implementation of employee’s roles.  

As dramatic changes occurred within the telecommunications industry, many employees may have felt removed from the responsibility to reinforce the company vision tactics due to a lack in understanding of their role given the circumstances at hand. Therefore, in order to ensure that each employee becomes accountable for their fiduciary duty to make a difference in acting and not merely being acted upon, individuals must be aware of their focus, specific objective, and measurable goals. This awareness can be developed and reinforced by creating a document that outlines the said parameters. This document can be kept in a departmental file for management to utilize when an area within that sector of the organization is not in harmony with the vision of the company. A change leader may then meet with an employee and ensure they are acting according to their primary results areas. This form may also be used to award and incentive team members when they meet their measurable goals. This process has been proved to be effective by the Dave Ramsey Corporation.

Fuhrer (Adolf Hitler) Cast Study

Immediate Issues

 In most cases, self-interest surfaces when an individual is in the pursuit of an ideal objective. When on the path toward a particular vision, it is reasonable to desire to gain personal utility. However, when the function of a person’s mission becomes condemning to the purposes of other individuals, significant reevaluation should be considered. Adolf Hitler (Fuhrer) became an extremist in his vision to create an elite society of men and women who received direction under an aristocratic dictator.

Associated Issues

The costs in order to fulfill a vision should be things such as time, talent, and often monetary and other tactical supplementation. The Fuhrer’s Volk movement came at such a cost that led a man to elevate himself to a seemingly God-like stature when compared to those who followed his leadership. More importantly, as they moved closer to the objective of having an Aryan race, the cost became a people who were massacred by the millions.

Issues Analysis

Vision of the Fuhrer

The Fuhrer strongly believed that Germany, and others who consented, would become the most elite society to be known in history. In fact, he believed that every tactic executed toward the elite society was history in the making. Fuhrer demonstrated his conversion in how quickly the strategy was implemented. In fact, just two years (1935) after having been granted the Enabling Act, The German legal system was reorganized for supplementary power to the Nazi regime, concentration camps were established for thousands of the regime’s opponents, The German labor movement was dissolved, and civil rights were withdrawn from the Jews. The eventual outcome of the vision constructed for humanity was unrealistic and egocentric. What the Fuhrer was striving to achieve went against any organic process that human beings are designed to fulfill. People should not have to live in a constant state of fear and inequality no matter how different their background.

If the Volk would have become a reality, society would not live in reality. A healthy society does not consist of moving a nation forward only to build a leaders reputation. Instead, communities are organized in a manner that allows individuals to become empowered, as individuals, to act according to the God-given gifts and talents they were born to use. Additionally, as a person discovers various attributes being distilled upon their natures, a distinct realization may develop that motivates this person to utilize their abilities for the benefit of the society. Fuhrer’s desires were rooted upon a personal history deprived of experience lifting people within his circle of influence rather than only lifting his own mission to get gain. In addition to being a subscriber to many of Charles Darwin’s beliefs about survival of the fittest—a considerable amount of Fuhrers motive-for-action may have been largely obtained due to economic circumstances and the perceived need to out-survive others competing with seemingly unfair conditions.

Economic Conditions

The German society cried for a savior to rescue them in and from the series of disheartening events that had showered upon them. With little financial security in the economy came little self-esteem in the people. Germany was in a severely venerable state. Fuhrer had a gift of being able to sense the mood of an environment and upon doing so witness opportunity to stage a power he had been harboring since his adolescence.

Rise of Power

It has been said that “[Fehrer] was a man without roots, with neither home nor family; a man who admitted no loyalties, was bound by no traditions, and felt respect neither for God nor man.” This is a person who had lived a life insecurity and low self-esteem; someone who most likely felt a sense of value only when another’s value was being mocked and censored.  Analysts have said that throughout his career “Hitler showed himself prepared to seize any advantage that was to be gained by lying, cunning, treachery, and unscrupulousness.” Fehrer’s rise of power stemmed from a desire that may have been viewed being deeper than love—respect.

Fehrer’s rise in power may be identified as being most recognized in 1933, when Fehrer recognized that his political influence on the masses had graduated from what started as his Mein Kapf memoir written in prison, to a three-fold active platform toward anti-Semitism, anti-Bolshevism, and pan-Germanism. Building the master Aryan race was becoming a reality. A distinct contrast may be considered when evaluating the influence of Fehrer at this moment in his life.

Although Fehrer may have considered himself to be one of the greatest leaders the world had ever encountered; whether or not a being leader denotes that masses must be moved is arguable. It is true that masses may move due to an inherent need to satisfy insecurity or because they fear life consequences may result if they do not move. However, if a person arrives in a position of authority and guides the masses in a manner that does not lift and inspire, then a leader is not a leader but only a guide.

Leadership is a persuasive power that helps people register their potential to succeed. Indeed Fuhrer brought the renewal of full employment to Germans, and due to the deflation of the Versailles settlement German national self-esteem was restored, his leadership was not being activated. To have leadership is to have followers who want to become like you—who are constantly seeking to be close to the leader. When the leader is not around, people are actively striving to emulate and move the leaders cause forward, because by doing so they know they will develop more gifts, talents, and abilities that will stimulate their life’s enjoyment.

Unfortunately, those who followed Fehrer did so primarily because they feared what would happen if they did not. These were not people who talked highly of him and sought to emulate his admirable characteristics when he was not around; but instead, these were people who mocked and challenged Fuhrer. Though he was extremely charismatic and brilliant in being able to discover astoundingly simple solutions for challenges which appeared as being unsolvable, Fehrer’s intentions were that of stimulating his own self-interest of becoming more powerful. This rooted desire for power was masked by the Volk movement.

Effective Leadership

Fuhrer’s most effective quality in motivating German citizens was the mastery of his communicative abilities. Otto Strasser said that his extraordinary power as a speaker is attributed to his ability to “diagnose the ills from which his audience is suffering.” Fuhrer said that words are devises for manipulating emotion. He talked of how essential oratory skills were in penetrating the hearts of the hearers. This skill used to almost magnetize his audiences toward his various tactics in pursuit of Volk. Though the message of the Volk was artificially delivered into the hearts of the German people, this is not effective leadership. Audiences of Fuhrer were led based on the emotion of the words and not their context for personal power.

A modern example of effective leadership is in the late Sam Walton (Walton). There was nothing forceful or selfish about how he lead his team at Wal-Mart. Though he might not have had the oratory gifts of Fuhrer—when he spoke it was often to an individual or to employees at one of hundreds of Wal-Mart stores. Walton’s leadership was effective because the people knew he cared about what they were becoming. Walton mentioned often that he was grooming his team members to become merchants. In addition to Walton’s personal appearances to hundreds of his stores within a year, information about the company’s direction was always available for employees to further their understanding of the vision of Wal-Mart.

In contrast, Fuhrer was secretive in how information flowed to his constituents. His personal approach was to only reveal a little information, on a need-to-know basis, in order to stimulate action for the next strategy tactic. Also, instead of being among the people, Fuhrer lived in a secluded area in the Bavarian mountains. Effective leadership was not so much about what the people were becoming, but how the image of Volk was being portrayed and implemented. If leadership like Walton would have been actively applied to the followers of Volk, they would have known in their hearts that their actions were for a greater good. This goodness would have been seen in the eyes of Fuhrer as it was in Walton’s smile. Instead, Fuhrer’s influential demeanor and moral virtue only made the hearts of his closest allies sink into their boots with fear.