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  1. 1. CHANGE MANAGEMENT Lakeland Wonders (Case Analysis)
  2. 2. Case Overview <ul><li>Cheryl Hailstrom, the CEO is the first person outside the Swensen family to hold the top job. </li></ul><ul><li>She'd been the COO of one of its largest customers and had worked with Lakeland to develop many best-selling products. </li></ul><ul><li>Wally Swensen IV, the previous CEO, chose Cheryl because she knew how to generate profits and because he believed her energy and enthusiasm could take the company to the next level. </li></ul><ul><li>She is, nearing her six-month anniversary, wondering why her expansive vision for the company isn't taking hold. She's tried to lead by example </li></ul>
  3. 3. Problem <ul><li>The problem is that while Cheryl's senior managers are giving her the nod on the surface, they're all really dragging their feet. </li></ul>Question <ul><li>Is Cheryl pushing too much change too quickly? Should she bring in outsiders to speedily adopt the changes she envisions and overhaul Lakeland's corporate culture? </li></ul>
  4. 4. Case SWOT Analysis <ul><li>Strength </li></ul><ul><li>94 Years old organisation </li></ul><ul><li>CEO Proven track record </li></ul><ul><li>Opportunity </li></ul><ul><li>Bull’s- Eye Offer </li></ul><ul><li>Cheap Labour market outside US </li></ul><ul><li>Weakness </li></ul><ul><li>Family organisation </li></ul><ul><li>Labour Relations </li></ul><ul><li>No change desire </li></ul><ul><li>Threats </li></ul><ul><li>Market Dynamics </li></ul><ul><li>Union Pressure </li></ul><ul><li>Growing Cost </li></ul>
  5. 5. Types of Change <ul><li>Fundamental </li></ul><ul><ul><li>Broad </li></ul></ul><ul><ul><li>Core </li></ul></ul><ul><li>Incremental </li></ul><ul><ul><li>Limited </li></ul></ul><ul><ul><li>Localised </li></ul></ul><ul><li>Proactive </li></ul><ul><ul><li>Anticipated </li></ul></ul><ul><li>Reactive </li></ul><ul><ul><li>Unanticipated </li></ul></ul>Planned Unplanned
  6. 6. The Nature of Organisational Change “ Change is a process that is rarely contained within functional, or specialist, boundaries”
  7. 7. Taxes Employment Power Status Compensation Dividends Capital Growth Safe Investment Quality Service Value Job Sat. Compensation Job Security Regular Payments Loyal Business Organisation Suppliers Employees Customers Shareholders Managers Government
  8. 8. “ The common factor is that when something changes, whether or not it has been planned or decided by organisational members, it will have repercussive effects which will be variously welcomed, discarded or ignored by people within and outside the organisation. Their reactions will in turn affect other things.” Dawson, S.
  9. 9. The Ripple Effects CHANGE
  10. 10. Organisational Change Business Processes Current services/products Technology People Management styles Knowledge Skills External Environment Decision/ communication channels Organisational structure Jobs Role Culture MISSION / GOALS / STRATEGY
  11. 11. The Nature of Organisational Change <ul><li>Change is a process that is rarely contained within functional, or specialist, boundaries </li></ul><ul><li>Change in one part of an organisation invariably affects people and processes in other parts </li></ul><ul><li>Organisational change can influence, and be influenced by, several important features of organisational life </li></ul>
  12. 12. The Seven S Framework Staff Skills (Vision) Structure Systems Strategy Style
  13. 13. Pressures for change <ul><li>External </li></ul><ul><li>Internal </li></ul><ul><li>Top down </li></ul><ul><li>Bottom up </li></ul>Implementing change Planning for change Pressures for change Evaluating Change PESTLEM Forcefield Analysis Money Time People Resistance Communication Roles and Responsibilities Continual Change Plan v Actual Success Criteria
  14. 14. Organisation Social Legal Environmental Political Economic Technological Pressures for Change PESTLEM Market
  15. 15. The PESTLEM Model helps to:- <ul><li>Identify significant pressures for change that has occurred in the past </li></ul><ul><li>Think about new opportunities and the conditions under which unit or organisation will be operating in a few years’ time </li></ul><ul><li>Construct a long-term forecast for organisation, department or self. </li></ul>
  16. 16. Forcefield Analysis Driving Forces Restraining Forces E Q U I L I B R I U M
  17. 17. Driving Forces Restraining Forces Relative Strengths EQUI L I BRI UM
  18. 18. Driving Forces Restraining Forces No change Relative strengths EQUI L I BRI UM
  19. 19. Driving Forces Restraining Forces Change Relative strengths
  20. 20. Approaches to overcoming resistance to change <ul><li>Educative </li></ul><ul><li>Facilitative </li></ul><ul><li>Participative </li></ul><ul><li>Persuasive </li></ul><ul><li>Manipulative </li></ul><ul><li>Coercive </li></ul>
  21. 21. Present State Desired State Transition State Unfreezing (Pain) Refreezing (Remedy) Change is a Process
  22. 22. <ul><li>Low Stability </li></ul><ul><li>High Emotional Stress </li></ul><ul><li>High, often undirected energy </li></ul><ul><li>Control becomes a major issue </li></ul><ul><li>Past patterns of behaviour become highly valued </li></ul><ul><li>Conflict increases. </li></ul>Some characteristics of the Transition State
  23. 23. Essential elements in the Change Process <ul><li>Conceive - have a clear view of what the change is that you are trying to bring about </li></ul><ul><li>Construct - you must devise systems, mechanisms or plans allow this to happen </li></ul><ul><li>Convert – old beliefs, behaviours and systems into new ones consistent with your required change. </li></ul>
  24. 24. Stages in the Change Process <ul><li>Unfreezing – the need to change existing attitudes towards working practices and processes before the change can begin to take place </li></ul><ul><li>Changing – the implementation stage. Its success will depend on the thoroughness of the planning and preparation in the first stage </li></ul><ul><li>Refreezing – consolidation. The change has been incorporated into the working culture. </li></ul>
  25. 25. The Three Step Model Disequilibrium Softening of procedures Equilibrium restored by: Sticking to old ideas and behaviour Exploring new ideas Looking at alternative behaviours Consolidation of ideas and behaviour which return to the old equilibrium. Consolidation of new ideas and behaviour reaching new equilibrium. UNFREEZING CHANGING REFREEZING
  26. 26. Integrated Four Phase Model Organisation becomes aware of a need for change Begins to explore the resources needed EXPLORATION Information collection Identification of goals Identification of support required PLANNING Action Implementation Evaluation Adjustment Control ACTION Integration Feedback Monitoring behaviour Reinforcing desired behaviour Consolidating behaviour INTEGRATION
  27. 27. Levels of Change <ul><li>Organisational </li></ul><ul><li>Group or Team </li></ul><ul><li>Individual. </li></ul>
  28. 28. High Low Group Individual Organisation Degree of difficulty Length of time Levels of Change
  29. 29. Change, whether in products,services, market strategies, technological processes or work practices, are designed and implemented not by machines, but by people”
  30. 30. Jeanie Daniel Duck
  31. 31. Jeanie Daniel Duck Stagnation The Monster in Hibernation
  32. 32. Jeanie Daniel Duck Preparation Waking the Monster
  33. 33. Jeanie Daniel Duck Implementation The Monster Emerges
  34. 34. Jeanie Daniel Duck Determination The Monster Roams the Hallways
  35. 35. Jeanie Daniel Duck Fruition The Monster is tamed.
  36. 36. 5 Phases of Change Curve <ul><li>Stagnation – The Monster in Hibernation </li></ul><ul><li>Preparation – Waking the Monster </li></ul><ul><li>Implementation - The Monster Emerges </li></ul><ul><li>Determination – The Monster Roams the Hallways </li></ul><ul><li>Fruition – The Monster is tamed. </li></ul>
  37. 37. Recommendations <ul><li>Lakeland Wonders CEO must convince Management Team </li></ul><ul><li>CEO must chart all the Process and Steps involved </li></ul><ul><li>Time- Span, considering Past, Present and Future calculated out </li></ul><ul><li>Change must be carried out in Steps in due course of time </li></ul><ul><li>Quality and Standard of product must be maintained </li></ul>
  38. 38. <ul><li>By: </li></ul><ul><li>Anubhuti Gupta </li></ul><ul><li>Kanika </li></ul><ul><li>Rimpy </li></ul><ul><li>Maitreyi Sahoo </li></ul><ul><li>Soumya Gupta </li></ul><ul><li>Surya Kanta Jena </li></ul>Thank You !!!!