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This document discusses models and frameworks for organizational change at Banfield, a veterinary services company. It describes Banfield's history and values, as well as issues that arose from its growth including loss of values and increased competition. It then summarizes several change models including McKinsey's 7S framework, Kotter's 8-step approach, and the 3C model. Additional sections address collecting data, diagnosing organizational climate, setting goals, managing reputation, delivering feedback, and overcoming resistance to change.
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Mergenthaler hrm445 1202 b-07 ph 5 ip
- 1. Executing the Systems of Effective Change HRM445-1202B-07 Organizational Change Phase 5 Individual Project Sabrina Mergenthaler Colorado Technical University Professor Felicia Bridgewater June 25, 2012
- 2. Introducing the Company Banfield •Established in 1955 --Dr. Warren J. Wegert •Values --Improved quality of service to pet owners --Affordable care options --Optimum care for pets --Friendly, knowledgeable staff •Growth of a corporate giant --Loss of values --Focus on financial growth --Destruction of trust --Increase in disastrous competition --Rapid turn-over rate
- 3. Models of Change 7-S Framework of McKinsey a tool for managerial analysis and action that provides a structure with which to consider a company as a whole, so that the organization's problems may be diagnosed and a strategy may be developed and implemented. 8-Step Approach of Kotter -Establish the need for urgency -Ensure there is a powerful change group to guide the change -Develop a vision -Communicate the vision -Empower the staff Ensure there are short-term wins -Consolidate gains -Embed the change in the culture The 3 C’s Model A strategic triangular approach developed by the Japanese which encompasses the consumer, company, and competition in order to identify and facilitate making changing Maintain Apply Educate Plan Analyze
- 4. The 7S Framework of McKinsey
- 5. 8-Step Approach of Kotter
- 6. The 3C Model
- 7. Collecting Data Methods of Data Collection • Questionnaires -Pros -Cons • Interviews -Pros -Cons • Observation -Pros -Cons • Use more than one
- 8. Diagnosing the Organizational Climate What is Organizational Climate? •Work environment •Effects on morale, motivation, productivity •Employee mental states Methods of Determination •Survey Improving Climate •Aligning goals
- 9. Building Plans by Applying Goals Goals are Important •Goals determine success •Set specific goals •Goals should be challenging Producing effective goals •Individualize and divisionalize •Vertical Alignment and Horizontal Alignment •SMART Criteria •Corresponding goals
- 10. The Corporate Reputation Quotient
- 11. Factor Score Overall Score Notes •Emotional Appeal - good feeling about the company - admire and respect the company - trust the company •Products and Services Notes - company believes in its products and services - company offers high quality products and services - develops innovative products and services - offers products and services that are good value •Vision and Leadership Notes - has excellent leadership - has a clear vision for the future - recognizes and takes advantage of market opportunities •Workplace Environment Notes - is well managed - appears to be a good company to work for - appears to have good employees •Financial Performance Notes - history of profitability - appears a low risk investment - strong prospects for future growth - tends to outperform its competitors •Social Responsibility Notes - supports good causes - environmentally responsible - treats people well
- 12. The Power of Feedback Feedback Delivery •Must swing both ways •Must convey messages appropriately •Must understand the needs and desires of members involved •Know the audience The Use of Imagery •Develop stories •Use employees as characters •Create unity and purpose Appreciative Inquiry •Emphasize positivity •Define qualities & strengths •Present in positive manner
- 14. Overcoming Resistance to Change
- 15. References Barnes, M. (2010). Why It’s Easier to Destroy than Change an Organization-New Home Sales Training. Myers Barnes Associates. Retrieved from http://www.myersbarnes.com/blog/2010/02/why-its-easier-to-destroy-than- change-an-organization-new-home-sales-training/ Clegg, S., Kornberger, M. and Pitsis, T. (2011). Managing and Organizations, Third Edition. Thousand Oaks, California: SAGE Publications, Ltd. Issues in Organizational Change. (n.d.). M.U.S.E. Organizational Change. Colorado Technical University. Retrieved from http://coursebuildercontent.careeredonline.com/Assets/30000/22973.pdf Waterman, R.H., Peters, T.J., and Phillips, J.R. (1980). Structure is Not Organization. McKinsey Quarterly. New York City, New York: McKinsey & Co. 3Cs Model of Ohmae. (n.d.). 12manage. Retrieved from http://www.12manage.com/methods_3C's.html Corporate Reputation Quotient. (n.d.). 12manage. Retrieved from http://www.12manage.com/methods_corporate_reputation_quotient.html Harvard Mentor Manage. (n.d.). Goal Setting: Goal Alignment. Retrieved from http://www.g4sleader.lmmattersonline.com/courses/HMM10%20Courseware/goal_setting/g oal_alignment.html Robbins, S. & Judge, T. (2010). Essentials of Organizational Behavior: Tenth Edition. New Jersey:Prentice Hall. U.S. Fire Administration. (n.d.). Assessing the organizational climate Of the Iowa City Fire Department. Retrieved from www.usfa.dhs.gov/pdf/efop/efo30844.pdf Collaborative Change Management. (n.d.).Interactive Associates. Retrieved from http://www.interactionassociates.com/services/collaborative-change-management
Editor's Notes
- Abstract It is often said in business that it is easier to destroy an organization than it is to change one (Barnes, 2010). Change in any business is an essential function of growing and securing position in the future. However, the amount of planning and preparation necessary for the change coupled with the likelihood and potential for resistance can cripple the advancement of any changing business. Due to the immense threat that implementation of changes carries with it, companies must undergo a series of stages to endure any kind of change. While some of these changes may occur through a natural tendency and adaptation of processes, others are more risky and may require a lengthy duration of time to coordinate, educate, implement, and maintain. For this reason, planned changes should not be rushed, and should encompass procedures in the anticipation for resistance to changes. Throughout this presentation we will investigate the changes pertinent to one company’s progression and analyze the techniques that may assist them in facilitating those changes effectively. To further the understanding of change management, this presentation will also analyze the topics of goal setting, goal alignment, and collaborative work environments as they relate to improving an organizational climate. By the conclusion of this piece, we will identify models of change which could be used to promote these adjustments, provide the company with a course of action for implementing and maintaining the changes, as well as the tools to ensure a culture receptive to changes in the future.
- Introduction Banfield, a veterinary clinic, now more than 800 facilities strong, was established in 1955 by Dr. Warren J. Wegert (About Us, n.d.). In the course of the company’s expansion and evolution into a nationwide corporation, many of the values instilled by Dr. Wegert have been lost. Leadership skills in the form of motivation and experience have been traded in for degree-possessing professionals focusing on financial gain and creation. Teamwork has been threatened with the introduction of monetary reward systems that inspire deception and competition amongst employees. Further, the fast-paced growth of the company has immensely contributed to distrust in future changes for the employees who have witnessed new and old leaders come and go. As familiar faces vanish, and with them the sense of stability, the lower level workers fear losing money, jobs, and opportunities. If Banfield fails to recognize the need for change, they will likely continue to operate even under the conditions that exist, though, with extreme turn-over rates and discontented employees. However, there exists a greater opportunity for further growth if the leaders assess the current conditions and address the changes that could restore employee satisfaction, improve leadership, and generate a culture that is more receptive to changes. Unfortunately, the road to implementing the necessary changes is an arduous one that will require commitment from leaders and employees alike. They are changes that cannot occur overnight. Ultimately, though, these changes will be of great value to all involved members.
- Models of Change Study of organizational changes has brought about the acknowledgement of many systems for facilitating change. However, as many companies have discovered, the wrong approach can lead to failure. Any failure in business is costly, but in some cases the ultimate price is paid: elimination of the company. To avoid such heavy consequences, companies must determine the right approach for the changes they need to make. Here, we discuss three different models: the 7-S Framework of McKinsey, Kotter’s 8-step approach, and the 3Cs model (Robbins & Judge, 2010). While each model carries with it a name and series of ideal processes, the systems all undergo a staple concept for facilitating changes. First and foremost an analysis of the current conditions must be coordinated. Once the analysis is complete, plans can be developed to reflect the necessary changes to be made. Once a plan is designed, there will be a method of educating the organization’s managers and employees to aid in implementing the plans. After adequate education has been provided, the planned changes can be applied. They may afterwards be subjected to a series of testing to assure accuracy of the implemented plans, however, the final step is going to be the maintenance of the changes. This stage may include various support tools to motivate the staying power of the changes (Clegg, Kornberger, & Pitsis, 2011). Let’s take a closer look at these models.
- The 7-S Framework of McKinsey The 7-S framework of McKinsey, focuses on change within an organization that requires attention to many different factors (Issues in, n.d.). First mentioned by Richard Pascale and Anthony Athos in 1981 during an investigation of the Japanese industry, the model of organizational change was adopted by a global management consulting agency known as McKinsey. The approach, which describes seven factors to organizing businesses in a holistic and effective manner, from then on became known as the agency’s 7-S model. The underlying concept of the 7-S model infers that leaders and managers must pay close attention to all factors (in which there are seven) that will be affected by any changes. The seven factors, which determine the way an organization operates, are interdependent of one another, and thus, are important considerations to be mindful of during the implementation of any strategy (7-S Framework, n.d.). According to the model, at the core of all the factors are the shared values. The shared values make up the identity of the organization: what the company believes in; goals the company works towards; the central attitudes of the company; and the overall personality the company is trying to express. Connected by this central component, the other factors (strategy, structure, systems, staff, style, and skills) are reliant upon each other during changes to reflect and maintain the shared values of the company (7-S Framework, n.d.). These factors are divided into two categories, hard and soft. The hard elements are those which are considered stable and unchanging company traits. This category is made up of: Strategy—the plan of allocating resources Structure—the hierarchy, or layout of leadership Systems—the processes carried out by the company (Waterman, Peters, & Phillips, 1980). The soft elements are those which are more complex, and typically developed by direct influence of the company culture, environment, and individuals. This category includes the remaining factors: Shared Values—the central values of the organization Style--the style of leadership and management of the company Staff--the employees Skills—the talents and abilities of the employees (Waterman, Perters, & Phillips, 1980). The process of this model requires organizations to conduct in-depth analyses of the elements to determine what works well and what needs adjusted. Because each element depends on aligning with the other elements adjustments to these factors must be continuously monitored and analyzed to ensure success (Waterman, Peters, & Phillips, 1980).
- Kotter’s Eight-Step Plan Kotter's eight-step plan for implementing change is a more analytical or specific plan for implementing change than McKinsey’s plan. Kotter preceded his plan with a list of common failures that management tends to exhibit when attempting to introduce change initiatives. This list included the lack of ability to relay a sense of urgency regarding the need for change; an inability to develop an association for administering the change processes; the lack of foresight or imagination in regards to change and the inability to express such concepts; failure to eliminate barriers that could obstruct or hinder successful realization of change process goals; inability to develop short-term, interim or obtainable goals; the inclination to proclaim success too quickly; and not securely embedding the modifications into the company's corporate culture. Failure to complete any one of the aforementioned tasks could impede progress and success, (Robbins & Judge, 2010). With these obstacles in mind, Kotter responded with an eight-step plan designed to assist organizations in implementing change initiatives. The eight steps include: creating an atmosphere of urgency by providing an imperative reason as to why the changes are necessary; creating an association that has the ability to direct proposed changes; developing a new plan to guide the changes and methods required to implement the plan; disseminating the plan throughout the organization; authorizing others to make decisions and actions regarding the plan by eliminating obstacles to the proposed changes and by advocating creativity and risk taking; contemplating and developing short-term goals which encourage continuous movement toward overall changes; incorporating and centralizing improvements, reexamining modifications, and implementing required adjustments; and finally, fortifying the changes by exhibiting the correlation between new behaviors and organizational achievement (Robbins & Judge, 2010).
- The 3C Model The 3C's model was engineered by Kenichi Ohmae, a famous Japanese strategist. He stresses that an organization should focus on three key factors for implementing successful changes. According to Ohmae, only by integrating the three C's in a strategic triangle can a sustained competitive advantage exist. Those 3C factors include: The corporation The customer, and The competition (3Cs Model, n.d.) That is to say, strategies must be corporate based, customer based, and competition based. Corporate-based strategies aim to maximize the corporation's strengths relative to the competition in the functional areas that are critical to achieve success in the industry. They may include selectivity and sequencing, cases of make or buy decisions, and improving cost-effectiveness. The customer-based strategies focuses on the importance of the consumer rather than that of the company’s stockholders and other parties. According to the strategies at this stage, the corporation that is genuinely interested in its customers will be interesting for its investors. Concepts may include segmenting by objectives, customer coverage, and even in the same market more than once. Finally, the competition-based strategies are constructed by looking at possible sources of differentiation in functions such as: purchasing, design, engineering, sales and servicing (3Cs Model, n.d.).
- Collecting Data A method of change cannot be selected if the changes to be made have not been determined. The need for changes are recognized in several ways. All methods that deliver results that will lead to change are a form of data collection. There are three main methods of data collection: questionnaires, interviews, and observations. Each method has advantages and problems. Additionally, no single method can fully expose all needed changes, because they are subject to certain biases. For example, questionnaires and surveys are open to self-report biases, such as a respondent’s tendency to give socially desirable answers rather than honest opinions. Equally, observations are susceptible to observer biases, such as seeing what one wants to see rather than what is actually there. Because of the biases inherent in any data-collection method, it is best to use more than one method when collecting diagnostic data. The data from the different methods can be compared, and if consistent, it is likely the variables are being validly measured. Questionnaires are one of the most efficient ways to collect data. They contain fixed-response questions about various features of an organization. These on-line or paper-and pencil measures can be administered to large numbers of people simultaneously and can be analyzed quickly. They can be easily be fed back to employees. Questionnaires can be standard-based on common research or they can be customized to meet the specific data gathering need. However, responses are limited to the questions asked in the instrument. They provide little opportunity to probe for additional data or ask for points of clarification. They tend to be impersonal and often elicit response biases (Robbins & Judge, 2010). Interviews are among the most widely used technique for collecting data. They permit the interviewer to ask the respondent direct questions. Further probing and clarification is possible as the interview proceeds. This flexibility is invaluable for gaining private views and feelings about the organization and exploring new issues that emerge during the interview. Though, interviews may be highly structured, resembling questionnaires, or highly unstructured, starting with general questions that allow the respondent to lead the way. Interviews are usually conducted one-to-one but can be carried out in a group. Group interviews save time and allow people to build on other’s responses. Group interviews may, however, inhibit respondent’s answers if trust is an issue. Interviews can consume a great deal of time if interviewers take full advantage of the opportunity to hear respondents out and change their questions accordingly. Personal biases can also distort the data. The nature of the question and the interactions between the interviewer and the respondent may discourage or encourage certain kinds of responses. Finally, it takes considerable skill to gather valid data (Robbins & Judge, 2010).
- Diagnosing the Organizational Climate Using all of the described methods for collecting data, one can begin diagnosing the company’s climate. However, before one can diagnose an organization's climate, he or she must be familiar with what the concept entails. An organization's climate can be described as its work environment and the effect it has on morale, motivation, and ultimately its productivity. Organizational climate is a psychological climate which relates to employee's mental states. This type of climate must be measured subjectively. Once an individual understand what it is that comprises an organizational climate, then it will be possible to perform diagnostic procedures to measure it. One method that an organization could use to measure its corporate climate is a survey. There are many types of surveys that can be utilized for this purpose. An organization should design an appropriate survey that will provide useful information regarding the current status of its corporate climate. With this information, a plan can be developed to make the necessary changes toward creating a more goal-aligned organization, (U.S. Fire Administration, n.d.). In order to improve an organization's climate and direct it toward an organization that focuses on goal alignment the following areas should be addressed: building on employee strengths, rewarding more than punishing, and emphasizing vitality and growth, (Robbins & Judge, 2010). Concentrating on these areas and implementing plans for their enhancement will greatly improve the overall organizational climate.
- Goal setting is a very important aspect in regards to determining an organization's success. It is not enough to simply tell employees to "do their best." Setting specific goals establishes exactly what is expected of each employee. This eliminates ambiguity and usually results in higher performance rates. In addition, setting difficult goals has been proven to increase creativity and employee motivation. If a goal is challenging, an individual will generally work harder to achieve it. Often times this will lead to the discovery of new and improved methods of performing tasks or processes, (Robbins & Judge, 2010). In order for goals to be even more effective, both individual and divisional goals should be aligned with the goals and objectives of the organization as a whole. In addition, goals need to be clearly defined and include the following SMART criteria: be Specific, Measureable, Achievable, Realistic, and Time-limited. Advocating a more collaborative work environment will assist in aligning an organization's goals due to increased communication and cooperation. Collaboration and goal alignment enables employees to understand his or her goal, how it corresponds to the division's goals, and how the division's productions contribute to the overall, strategic objectives of the organization, (Harvard Manage Mentor, n.d.). When we discuss alignment, we are indicating the vertical and horizontal aligning of goals. Vertical alignment is essentially a hierarchical structure, in which a company brings together all its parts under a single strategy and focus decided by the board of directors and other upper-level management teams. Vertical alignment helps larger companies that struggle with cohesion and have different departments that do not agree or do not communicate with each other. Horizontal alignment, though, is primarily concerned with autonomy within organizations, allowing different departments or branches to set their own goals and use resources to accomplish them (Robbins & Judge, 2010).
- Defining the Plan for Changing Banfield With our newly developed understanding for the components that contribute to successful change, we can evaluate the conditions of the work environment, see the changes that need to be made, implement a course of action, support the transition, and maintain satisfactory results with proper measurements. Though we have identified a few of the change models available, I would like to introduce the idea of the corporate reputation quotient. It is my contention that being a corporate business, Banfield must focus on the reputation it is generating. This reputation will stem from employees—both old and new—clients, and stockholders. The Corporate Reputation Quotient of Harris-Fombrun is a comprehensive measuring method of corporate reputation that was created specifically to capture the perceptions of any corporate stakeholder group such as consumers, investors, employees, or key influencers. The instrument enables research on the forces of a company's reputation, and allows comparison of reputations both within and across industries. There are six drivers of the corporate reputation quotient (Corporate Reputation Quotient, n.d.): Emotional Appeal - good feeling about the company - admire and respect the company - trust the company Products and Services - company believes in its products and services - company offers high quality products and services - develops innovative products and services - offers products and services that are good value Vision and Leadership - has excellent leadership - has a clear vision for the future - recognizes and takes advantage of market opportunities Workplace Environment - is well managed - appears to be a good company to work for - appears to have good employees Financial Performance - history of profitability - appears a low risk investment - strong prospects for future growth - tends to outperform its competitors Social Responsibility - supports good causes - environmentally responsible - treats people well This model allows for continuous testing of the companies reputation in the six different areas. Using the valuable tools of data collecting, the company can assess these areas and make adjustments as needed. Because the overall goal of this model is to improve relations with all interested parties, it is one that will greatly interest the leaders of Banfield (Corporate Reputation Quotient, n.d.). The following slide presents a data-collection worksheet for using the Corporate Reputation Quotient, as well as instruction on how to use it.
- Using the Worksheet It is imperative for organizations to be able to not only formulate data, but to have a method for reviewing and analyzing the data they have collected. The worksheet above acts as a scorecard for using the Corporate Reputation Quotient. Combined with questionnaires, interviews and observations, companies can rank themselves in each of the factors measured by the Corporate Reputation Quotient. The score must be meaningful to them, and must correlate with their methods of data collection across the board. For example, if a questionnaire is being used and requires the respondent to make a selection on a scale of one to five; the scale for this worksheet would need to reflect the average of the responses between one and five. The averages of those scores in each of the factors would reflect the current conditions. Once current conditions are recognized, data collectors can make notes on items that contributed to each score. For instance, if a company scored low in emotional appeal (which focuses on the feelings of the employees), the data collector could note why particular feelings were felt and what types of adjustments may correct the emotional well-being of the employees. If a company were to use three or more data collectors each with a collection worksheet, the information could be compiled and reflected upon. Each person would either concur with a particular action or would disagree on the existence of a problem or measure of correction. From this reflective component of data-collecting, the analysts could define a method of action that addresses all the areas that may need change. It is important, however, to understand that there is no particular worksheet that stands alone. This one is no different than any other that requires additional supportive documents. Just as any data-collecting method requires analysts to use a variety of techniques to generate findings, this data-collecting worksheet requires the same backup documentation. These other documents may include questionnaires given to employees, surveys provided to clients, interviews conducted with managers and leaders, and self-observations notes. Most importantly, though, these documents must all agree with one another in the sense of how they measure. For example, requiring employees to answer a questionnaire on a scale of one to five would not correspond well to requiring clients to participate in a survey in which measures were listed as “good,” “fair,” or “poor.” This concept is especially crucial in the interviewing process. Most interviews will allow for a more interpreted response. The data collector would not ask a manager to rank his answers on a one to five scale. Rather, they would ask specific questions, and get specific answers. It would then be up to the interviewer to make a score selection while maintaining adequate notes that represent the determination for the score. There are many options for conducting analysis on a company with the Corporate Reputation Quotient in mind. Using a variety of tools to conduct the research that will discover the problems and potential solutions is only the tip of the iceberg in facilitating change. Keeping in mind that repetition is essential to creating and maintaining change, analysts would be wise to use methods that are static and simple, so that the process of data collection can be carried out quickly and effectively.
- The Power of Feedback Communication is a major component of facilitating changes. An organization can plan, prepare, and design the implementation of change, and even have all the right tools for progressing changes; but if they fail to communicate at any point during the process, the entirety of the process could collapse. The communication we are addressing at this stage refers to feedback. Feedback must go all ways—leaders must provide feedback to managers and employees, and managers and employees must provide feedback to leaders. This feedback can be delivered in many ways, though; and the method with which the organization pursues this delivery could be just as damaging as not delivering feedback at all. When giving feedback to an organization, it is important to know your audience as much as possible. One must fully understand the needs, wants, and desires of an organization's members in order to effectively communicate with them. One method of presenting feedback to an organization is through the use of stories. Communication that uses images rather than words or concepts is usually more powerful. Relaying stories accomplishes several tasks within an organization. First, they solidify the present in the past which gives members a better understanding of the current situation. Next, they sustain cohesiveness. This means that the stories provide individuals with a sense of unity and a common purpose. Lastly, they demonstrate why circumstances are the way they are (Clegg, Kornberger, and Pitsis, 2011). Referring to members of an organization as characters within the story or identifying their roles with the outcome of the story can make them feel more important in the processes being implemented. Another method of presenting feedback to an organization is through appreciative inquiry (AI). The basic theory behind this type of feedback is to emphasize the positive. This method includes finding the unique qualities and strengths of an organization with which to build upon, rather than focusing on the problems. Most people will more readily accept changes if they are presented in a positive manner (Robbins & Judge, 2010).
- Encountering Resistance At any stage of the change process, leaders must anticipate resistance. Identifying early on the types of resistance that may occur can help to design interventions that alleviate the concerns causing the resistance. Historically, Banfield has created an environment which fears change because it often has lead to discharges of leadership and co-workers. Even changes to the reward systems has inspired animosity and competition amongst employees. These types of resistance should be expected. However, even in the delivery of feedback, when attempting to encompass a positive transmission, can be met with resistance. There are several types of resistance an organization may face when providing feedback to its members. Some of these types of resistance can include a lack of understanding, selective perception, fear of the unknown, lack of motivation, cultural barriers and filtering. In this instance, filtering refers to a sender intentionally altering information so it will be received more positively by the receiver. Similarly, selective perception refers to an individual selectively hearing and processing what they want to due to their wants, needs, experiences, motivations, background, and various other individual characteristics, (Robbins & Judge, 2010). Considering the composition of the organization consisting of so many different individuals that exhibit different behaviors, thoughts, ideas, and beliefs it is virtually impossible to please everyone at the same time. People react to different forms of communication in different ways. They also receive and react to communication in different manners. For this reason, it is imperative that management obtain feedback regarding what individual members think about the information that they have been given. If an organization is not aware of how members are receiving and reacting to their ideas or initiatives, they will not know if they are being carried out effectively. Obtaining this type of feedback should be an ongoing process so that changes in communication practices or methods can be modified as needed.
- Overcoming Resistance to Change It is inevitable; people resist change. Leaders often react to the resistance with frustration and intolerance—which does little to inspire employees to embrace change. More resistance often follows, which triggers more leader frustration. This fuels a vicious cycle in which change breaks down. During the planning stage, this resistance should be anticipated and interventions should be designed to accost the resisting forces. Though there is no right way to approach intervening, there are wrong ways. Initiating interventions that fail to educate and help members participate typically regards the wrong interventions. An approach Banfield should take to address resistance includes involvement of all stakeholders and a focus on the whole system. Because people tend to support what they help to create, effective stakeholder involvement is the most important variable in overcoming resistance to change. In this approach, leaders are responsible for three interconnected areas of interest: direction, capability, and commitment. In the role of providing direction, leaders assure clarity and alignment among the change leaders on vision, goals for change, strategy, leadership behaviors, and decision-making. Next, leaders must demonstrate their commitment. Commitment has to do with building support, overcoming resistance and instilling a sense of ownership through maximum appropriate involvement of stakeholders. If leaders do not reflect this commitment to the people of their organization, they cannot expect the same amount of commitment in return. Of equal importance, though, is the company’s capability. Capability focuses on organizational and individual skills necessary to achieve the desired future state—especially capabilities for collaboration and problem solving. If there is inadequate capabilities, they must be generated or put in place by other means (Collaborative Change Management, n.d.). This may mean a need to drop forces that inhibit change, or a need to hire new personnel that is responsive to the changes being made.
- Conclusion Enduring changes within an organization is difficult for leaders and employees alike. When the results of a failed change can ultimately spell the undoing of an entire company, it is without a doubt that all sides have a certain level of fear to overcome. This is often why change in business is considered a greater challenge than destroying a business entirely. However, when organizations build an environment that not only adopts change, but looks forward to new changes, any change can be implemented. Banfield has, unfortunately, inspired a change-resistant culture over the years. While much of this environment is a result of bad implementation and strategy, there is still an opportunity for the company to reinvent itself. By considering the components of their reputation, Banfield may see the inherent benefit of focusing more on reputation than profit. Reputation is generated from all parties involved: employees, leaders, clients, patients, stockholders, and so on. When the facility puts effort into addressing their relationship with all the party members, they may see where their flaws lie. Though in their address of these flaws they may be met with great resistance, their reflection of commitment, their provision of direction, and their application of capabilities will greatly influence changes. While the company may continue to operate just as well without making these necessary changes, the company culture will continue to take major blows. There is a larger benefit in producing such valuable changes, and failure to recognize that may ultimately be the change that does not occur, and in the end becomes the downfall of the company.