Change ManagementBy, Sundeep Mohanty.Buckle-Up for the changes, it always not causes accident, mostly it is forbetterment....
support, but again in this dynamic and consumer driven market nothingguaranties that changes will bring success.One thing ...
Changes he initiated: Reduced inventories, sold some of the units/factoriesthat were not much profitable for GE, reduced p...
quarter after quarter the result indicated something else, JC Pennyperformed poor in 2012 and its sales reduced, sales wer...
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Change Management

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Change Management in Organizations.

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Change Management

  1. 1. Change ManagementBy, Sundeep Mohanty.Buckle-Up for the changes, it always not causes accident, mostly it is forbetterment. Planning properly and staying prepared for it makes everyone safe.In Organizations change can be initiated at various level, upper management doesnot always initiate changes, sometimes change get initiated by lowermanagement and/or by employees but later gets support from upper levelmanagements.. Not all changes are similar, sometimes it is difficult to foresee theeffect of change and that brings doubt about the change, again not all changesare good or not all are bad. Some changes are hard, difficult, hurt someemployees, partners, etc. but again sometimes that are the right thing to do,and sometimes changes makes no difference but Organizations go for it justbecause management/employees wants to show they were doing somethingdifferent. If changes are initiated after creating proper strategy and backup planthen I don’t feel it will affect much if the Organization takes the U-turn, it’s alldepends on how you are prepared and how you equipped your resources . One ofthe key part of changes is communication, so it depends how effectively thecommunication happening in the Organization. Changes are not all about whatchange you want to bring, the success and failure of changes mostly depends onwho will be involved, impacted or work as catalyst for the change. I seeOrganizations changes are just like products, you need to first market and sale itto internal employees before it get reflected outside of the organization.Sometimes, it also related to Organizations culture- trust, openness, helpingeach other, looking for common goal to make Organization successful,empowering others, knowledge sharing, etc.Some changes also relates to leadership style- sometimes changes are enforced(doesn’t matter whether for good or for bad) and sometimes changes arecollective decision, sometimes it is not widely accepted, sometime you get huge
  2. 2. support, but again in this dynamic and consumer driven market nothingguaranties that changes will bring success.One thing for sure, in Organizations when any change comes, it brings curiosity,fear and for some opportunity, those who things they will get benefited theyadvocate for it, some gets scared as they see the impact on them and all goescurious by thinking what will happen.In summary, any organizational changes need preparedness- it is not restricted toassets, but also the mindset, cohesiveness and need plasmatic employees.Just few examples from history:1. Darwin E. Smith:In 1971 he joined as CEO of Kimbely-ClarkChange he initiated: Decided to sell most of the paper mills and shift focus topaper based consumer products.Reaction: Business journals/media called move is not the right move, WallStreet analysts downgraded the stock, but Darwin was much willful and heenvisioned the effect of change is good for the Organization.Result: Darwin brought success to Kimberly-Clark, it became one of the leadingpaper based consumer product company.2. John Francis "Jack" Welch, Jr. :In 1981 he became CEO of GE.
  3. 3. Changes he initiated: Reduced inventories, sold some of the units/factoriesthat were not much profitable for GE, reduced payroll, every year firing of10% bottom line managers, rewarded those who are in top 20% withbonuses and stock options. He adopted Six-sigma for quality control.Reaction: Dubbed as “Neutron Jack”, fear among the employees, andincreases internal competition between the employees in GE as no onewanted to be bottom 10%, mostly get criticized for layoffs.Result: GE did very good under all these changes. Company’s market valueincreased from $14 billion in 1981 to $410 billion by end of 2004 andregarded as most valuable company in the world.3. Southwest Airlines:Established in 1967 has more than 46000 employees as of August 2012.Southwest is one of the most admired US Corporation and is one of thebest companies to work in USA. In Southwest, employees are empoweredand employees and employee unions drive the changes. Southwest’s keyfocus is establishing good relationship between the employees and withbusiness partners, so they can stand together in good times as well as badtimes.[Read: http://www.theclci.com/resources/TheSouthwestAirlinesWay.PDF]4. JC Penny and Ron Johnson:Started in 1902 is one the American mid-range departmental store, it gonethrough lot of changes since then. Ron Johnson became CEO in June 2011and after becoming the CEO, he wanted to change JC Penny businessmodel. He introduced new pricing model and introduced the concept ofshops within the store (mini-store) to JC Penny. In August 2012, JC Pennybegan rolling out shops strategy in stores and employees and othermanagement where buying into the concept, the market was curious.However, the sales dropped and profit reduced with this transformationalchange. CEO Ron Johnson emphasized his confidence on this change but
  4. 4. quarter after quarter the result indicated something else, JC Pennyperformed poor in 2012 and its sales reduced, sales were of 28.4% fromyear earlier. Finally, in April 2013 JC Penny announced Ron Johnsonremoved from CEO post.5. Yahoo and Marissa Mayer:In 1994, Jerry Yang and David Filo founded Yahoo Inc. Yahoo saw the daysof glory as well as fall from stardom. In July 16 2012, Yahoo appointedMarissa Mayer as its new CEO and gave her a challenging job to reviveYahoo. In February 2013, Mayor announced a major change in personalpolicy associated to Yahoo- Yahoo informed all remote working employeesto start coming office and work from office or may consider leaving Yahoo.However, so far Yahoo is doing well under her leadership but this particularchange decision not gone all well with many insiders as well as by peoplefrom outside of Yahoo. In the coming days we will see how Yahoo is doingand how this change affecting Yahoo.

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