Critically review the attached ASDA case entitled “Cracking the Code of Change
managing-engagement-during-structural-change
1. The problem
How does an organization handle employee
engagement as two workforces unite? In Deloitte’s
Divestiture Survey Report 2013, 93 percent of executives
cited “sensitivities with employee morale of the for-
sale business” as a challenge when undergoing a
merger or acquisition with 46 percent noting it was very
challenging.
Why it matters
When managing structural change, leaders must
recognize the importance of employee engagement
in the success of the transformation. As employees
struggle to deal with ambiguity in roles and lines of
accountability, anxiety is heightened and engagement
dips. Left unaddressed, low morale places the success of
the integration at risk, resulting in a failure rate of about
50 percent. Effectual leaders take steps to mitigate the
challenges.
Managing Engagement during Structural Change
A Tailored Change Management Solution can Mitigate Challenges
Is a merger or acquisition in your organization’s future? As 2013 swings into high gear,
so has U.S merger and acquisition activity. Reinvigorated by the renewed availability of
financing, high corporate cash balances, low interest rates and an upswing in the stock
market, organizations are once again considering strategic buying decisions – but on a
much larger scale. While trends indicate that the number of M&A deals is down, the value is
up, raising the stakes and making it more important than ever that decisions are supported
by a sound strategy.
Insights
2. Insights 2
Managing Engagement during Structural Change
What to do about it
Managing engagement through a period of corporate transformation
demands an effective organizational growth strategy with a comprehensive
change management solution across the enterprise – one that focuses on
business effectiveness, engagement, performance, retention, leadership,
resilience and agility. It includes a wide range of services that help
individuals manage change and the subsequent effect on their careers while
providing managers with the skills needed to lead others through periods of
uncertainty.
Ideally, methodologies should focus on and reinforce individual choice,
accountability, commitment, and action. To meet the various needs of
employees, it can be offered through a portfolio of blended-learning
delivery channels: instructor-led sessions, webinars, and/or e-learning.
While addressing diverse learning styles, blended learning solutions are
also flexible, cost effective, environmentally friendly, and easily tailored
to the organizational culture. To further enhance communication efforts,
a corporate “transformation” portal provides a platform for information
sharing and the dissemination of redeployment opportunities within the new
organization.
The goal is to retain key talent, improve employee engagement, and maintain
high levels of productivity − all of which are hallmarks of a successful
integration.
Each person handles change in a very personal and individual manner. Some
employees with highly developed coping skills will move through change
quickly, while other employees will be thrown off balance and take more
time to reach acceptance. Still, there are definable stages through which
everyone moves when experiencing both personal and professional change.
An effective change management model respects individual differences,
addresses each stage, and provides employees with the tools needed to
tackle change through increased resilience and adaptability. The goal is
to move all employees through the stages as quickly as possible, thereby
maintaining healthy engagement levels and minimizing the negative impact
on productivity.
Retention,
engagement
and high levels
of productivity
are hallmarks
of a successful
integration.
3. Insights 3
Managing Engagement during Structural Change
To this end, the change management solution must be enterprise wide,
including manager and employee training along with sustainability
coaching to ensure ongoing resilience and workforce productivity. And it all
starts at the top. Senior leaders may require training on when and how to
communicate changes to individuals and teams. The Deloitte Report reveals
that 82 percent of the executives surveyed rated “lack of communication
within the organization on future plans for the business for sale” as a
challenge. Executive Coaching for senior leaders has proven effective for
improving integration communication, as well as clarifying goals, assessing
change readiness, and overseeing cultural alignment.
The executive team will also benefit from guidance on an often-overwhelming
array of transformational challenges: crafting corporate strategy and
objectives related to a changing operating environment or business direction,
planning for and supporting impacted and retained employees, and driving
high performance in the new organization.
Leading a department through reorganization and/or a period of uncertainty
can be a daunting challenge for middle management. Not only are they
dealing with change themselves, but they’re also directly responsible for
implementing cost reductions and monitoring the engagement level of
a distracted and anxious workforce. Often caught in the middle without
adequate training, these front-line personnel are nevertheless required to
communicate changes to individuals and teams while assimilating new
teams and maintaining departmental productivity. A comprehensive change
management solution will bolster engagement and retain intellectual
capital by equipping managers with techniques for leading simple, strategic
conversations that communicate the corporate strategy, allay fears, and re-
direct the employees’ attention back to departmental work priorities.
Individuals and teams in the broader workforce benefit from change
management programs that develop and build personal resilience. The
corporate paradigm is shifting and employees are expected to adjust their
expectations, work processes and mindsets. This is more difficult for some
than others. To retain top talent, some organizations opt for short-term,
performance-based retention incentives. This “band-aid” fix may keep
employees in place through the merger, but it doesn’t do anything to prepare
them for the on-going periods of uncertainty to follow. Introducing employees
to the components of personal resilience and helping them develop action
plans for maintaining or increasing self engagement has long-term benefits
for the transformed organization. Employees must be able to track their
progress as they navigate the change and prepare themselves to assume
new roles and responsibilities.
Sensitivity to
employee morale
is a top challenge
when undergoing
a merger or
acquisition.
