Successful Change Leadership

Successful Change Leadership

Organizational change is important to many organizations. It is a process that occurs in which the organization may have a negative reaction from employees if not delivered correctly from the leaders of the organization. Therefore, in this organization, we will address and analyze the problems the executive leaders have occurred as a result of organizational change. There are four challenges the leaders are facing, and they are a high turnover of employees,

out dated software, stressful work environment, and low morale.

High Turnover of Employees

The analysis begins with the turnover of employees. As we know every time executive leaders come and implement change in the company. Then a group of employees resign from the company.  The question is, why are the staff members resigning and are resistant to change?

There are many factors to consider, for instance, some employees leave after a short period of time this may be due to personal situations regarding themselves. Some of these factors may include a change in financial status, health, or family issues that may be stressful for the employee to handle. Another possible reason is the job itself. Maybe the work is not interesting enough such as it may be boring. Usually, if the job is not challenging enough it might be the employee’s skills set is to advance for the qualifications for the specific task at hand. In addition, to skill set other problem’s areas may be wages, incentives, company culture or leadership within the organization. Since we are aware of the problems with the software, it does make the employee’s job a little more difficult and stressful to deliver professional work (Intellipath, 2015).

Organizational Development Process Skills the Executives Should Use

Management must first develop trust among the staff members. This does not happen overnight. Apparently, the employees have been through this before and see no positive changes made or broken promises. Therefore, there is a lack of trust. The first step is to build trust within the organization and have a shared vision. The executive leaders have to create a fresh culture in the organization where the company, employees, and the customers can all benefit from. This vision is created together as a single unit and has to be constantly reinforced as to why there is a new change. This new vision should be easy to read and easy to remember. Some companies post the vision and mission statement in the employee lounge, while others post in the front for customers to view too as a constant reminder of why the process of change (Initellpath, 2015).

The executive leaders then have to decide should they focus on team building. Since this is an organizational restructure team building is necessary. The reason is there are existing employees with low morale and new employees who are joining the team. Therefore, the intervention should consist of getting staff to know what is expected of each other. This will help bring out optimism for each member. In addition, reiterating the core values of the company and building a vision for the staff to have as their own that blends into the organization’s culture and vision (Tearie, 2011).

Change Strategies within the Short-Term and Long-Term

In addition, to the changing and intervention of the staff, the company’s organizational structure must also endure change. This can occur by creating goals within the organizational structure of leadership. Setting objectives are to safeguard disappointment within the organization and create an employee-focused management team. This will help lead the employees to set goals for themselves. This is how the company will get the staff into the buy-in of the organizational change.

Short term is a representation of objectives that are met within six months or to a year. The goal should be easily measured, and employees are to be held accountable for their goals. Management is also held responsible as it is the leader who has to follow through with the staff and give praise and redirection when needed. Long-term goals usually extend beyond a year. This long-term objective would include developing a new product or increasing revenue for the company. Since this is long-term and, it can easily be forgotten it is important for management to utilized short-term objectives for the long-term goal. Therefore, the goals are obtainable and employees are more aware of the success of the project (Bradley, 2015).

Evaluate and Present the Impacts of the Resources

Organizations such as this one are constantly trying to adjust to an efficient process to perform and influence team members in the organization. In this situation, management has to communicate to the Human Resources Department to create training and assessment programs for the company. An assessment will help identify causes that would affect the achievement of the required results expected by management. The next step is to design a training program from the assessment test. This would be used as inputs in determining the appropriate training that must be provided for employees, especially in relation to technological change modification in the future. Furthermore, training has to be related to software applications. In addition, to technical training working with teams is an important factor. The next step is to motivate employees with career development possibilities in their career within the organization this will lead to happy and productive staff (Rojas, Laidlaw, n.d.).

To conclude, for the good of the company and the health of the employees, it is always best to have the staff feel important. Furthermore, cross training employees will help them resist change so when it comes for a real change, it will flow easier.

References

Bradley, J., (2015), Strategic management with long and short term objectives, retrieved from, www.smalbusiness.chron.com

Intellipath, (2015), Designing Interventions: Creating a Vision Change, AIU Online

Rojas, K., Laidlaw, J., (n.d.), Evaluating the performance of an organization, retrieved from, www.betterevaluation.org

Tearie, R., (2011), Organizational Development Interventions, retrieved from, www.changedesigns.net

 

 

Posted by Carmel Speruggia in Team Development, 0 comments
The Meaning Of Communicating Trust

The Meaning Of Communicating Trust

According to Levin, Cross, Abrams, and Lesser (2003), establishing trust between management and employees takes a bit of work. Quite often, employees have not been given a reason to trust the company, and it is up to the managers and leaders to establish trust. Lack of trust is one of the key reasons employees resist the change process. For this reason, it is in the best interest of the company to make sure that they create ways to genuinely establish an environment of trust.

Trust can be facilitated through creating a common understanding of how the change effort needs to take place. Managers can also model the desired behaviors, so employees are constantly exposed to the desired behaviors needed to ensure successful change. Managers must also bring their people together to rally for the change process. This requires input and feedback from employees at all levels of the company. When employees feel as if they are a part of the process, they rally to make sure the changes are implemented quickly and efficiently. Resistance is then reduced.

Communication

Quite often, a failure to communicate can cause a change effort to fail. Obviously, every company has different levels of information that should or should not be shared. However, communication about the change, including the reasons, methods, and vision of the future are imperative to avoid or reduce resistance. The idea of operating on a “need to know” basis will only create suspicion and mistrust, and this will hamper effective change. This is why all information that will have an impact on employees should be shared and discussed.

This is also called transparency. Transparency means information that is vital to the change is shared rather than withheld. The value of communication lies with the way information is communicated. When a company is seeking complete change, including behavioral changes, communications should be open and honest, and managers should solicit feedback and questions (Richardson and Denton, 1996).

Management should respond to employees quickly and honestly about how the change will impact them. Communication should take place using several different types of channels, including

  • face-to-face
  • memos
  • newsletters
  • e-mail
  •  company intranet
  • telephone
  • posters
  • signs
  •  modeling

Ironically, even the company grapevine can be used as a method for communicating the need for change as long as the information passed through it is accurate. Whichever channels are used, the need for change should be placed as a constant reminder.

Shared Vision or Participation

It is one thing for the leaders of a company to have a vision of the future and an entirely different thing to instill that vision throughout the organization at every level. Visions of the future must be shared, but the question becomes: how is this done? If the management and change agents have worked on establishing trust and communication, then sharing the vision should be easier in the long run. However, this may not always be the case. One way to share the vision is to involve employees in the process of creating the vision.

This can be done through discussion, interaction, involvement, and feedback.  When managers encourage organizational members to be a part of the process of creating a vision, the credibility of the vision increases because employees will believe in it. Collaboration on the process encourages buy-in from organizational members. This collaboration can include people from all of the stakeholder groups

It is one thing for the leaders of a company to have a vision of the future and an entirely different thing to instill that vision throughout the organization at every level.

Visions of the future must be shared, but the question becomes: how is this done? If the management and change agents have worked on establishing trust and communication, then sharing the vision should be easier in the long run. However, this may not always be the case. One way to share the vision is to involve employees in the process of creating the vision.

 How do you share your company’s vision to your employees?

Abrams, L. C., Cross, R., Lesser, E., & Levin, D. Z. (2003). Nurturing interpersonal trust in knowledge-sharing networks. Academy of Management Executive17(4), 64­–77.

Richardson, P., & Denton, D. K. (1996). Communicating change. Human Resource Management35(2), 203.

 

 

 

 

 

 

Posted by Carmel Speruggia in Commuication, 0 comments
Change Management Models

Change Management Models

 

The objective is to elaborate on main points of change models within an organization. Therefore, this report presents two well-known change management theories of Dr. John Kotter’s eight-step theory and Kurt Lewin’s three-step theory of how it can be applied to any industry.

 
Change Management Models

Change management is a very wide-ranging discipline. In today’s business world, it is inevitable for a company to change in order to keep up with the times. However, the concept of change will vary from company to company. The results of transformation within the structure of an organization can be beneficial if it is understood by management and communicated in the correct manner to the team members in the firm. Therefore, how does a manager influence the models of change in the organization, what are these change management models, and how do they influence success. Two management models to discuss are Kotter’s eight-step model for leading, and Lewin’s change management model.
Kotter’s Eight-Step Model

We begin with Dr. John Kotter’s eight-step theory. According to Dr. Kotter, 70% of change efforts in an organization fail (Kotter International). The reason for the failure is that the leaders do not explain the approach to change in the enterprise and follow through with it. Therefore, the eight-step theory gives a clear and concise map on the on the functions of organizational change if utilized correctly.
The first step is establishing urgency. By explaining and showing the need for the change in addition to distinguishing possible risks of not proceeding with the transformation of how the business as it is functioning now? Investigate potential opportunities such as possibly increasing sales, by hiring more staff.
Second is creating an effective team. It is significant to the company to place the right people on the team. First, they must believe in the company’s vision and trust the leaders and each other as the change occurs. Developing a team of specialists and trailblazers who are committed to the result is essential in creating change in the organization.

 
The third step is developing a vision to the change. An organizational vision helps team member’s develop a sense of direction of where the company is to move to. Therefore, creating a vision will help motivate the staff by utilizing it as a guide to success. In addition, all decisions within the organization are centered from the vision statement.

 
The fourth step is communicating the vision. Every organization must share the company’s goals and vision to staff daily. The vision of the establishment should be placed wherever employees read, such as company newsletters, email, and at every meeting associated in the organization. Leaders have to follow through with the vision; leaders are influential and have to set the example for the team. Another point the vision should be straightforward, engaging, and clear.

 
The fifth step is removing obstacles. As stated leaders are influential, however, not all will follow the change. Therefore, an assessment is required of the transition in progress. What to look for is resistance. If there is resistance, take action immediately. Next is the formation of the organization this includes benefits; job descriptions and compensation programs are all aligned with the vision of the company.

 
The sixth step, creating wins for the organization. Setting goals is vital in organizational change. There are two category ranges in planning. One is short-term and the other is long-term. Wins are motivational to the staff. Therefore, by establishing short-term goals and achieving them excites the team. They feel the victory and will want to resume with the winning.

 
The seventh step is keep moving change. Sometimes when we see an improvement, we tend to sit back and let it flow on its own. This method is not correct. Keep transforming the organization. Continuously, show the efforts of change in addition to how successful the team is by living the vision and implementing the plan to reach a goal. Add in new projects to stimulate productivity and empowerment. With consistent exchanging of ideas and modifications now and then, change will become more acceptable.

 
Step eight, the last step secure change into the culture of the organization. Lastly, to join change into the enterprise it must be part of the culture of the business. Culture is the values within the organization’s vision. In addition, it will ensure change to be a continuous part of the company’s culture (Kotter International, 2012).

 
Lewin’s Three-Step Change Theory

Kurt Lewin was a psychologist and had a philosophical approach on social psychology. Lewin viewed behavior as a balance of influences working opposite directions. Motivating energies make a smooth the progress of change since they push employees in a preferred direction. Therefore, his research led to three focusing dynamics (Smith, 2001).

 
Stage 1: Unfreezing

Lewin’s first step is unfreezing also can be called the comfort stage. When employees are feeling comfortable in their work situation, they become frozen, resistant to change. To unfreeze employee’s motivation has to take place. In this stage as leaders, we have to prepare ourselves to move on, therefore, we can help set up success for employees in the organization. In addition to preparing teams for change trust and recognition must be first be met to move forward for the need of change (Gizzellis, 2007).

 
Stage 2: Transition

Lewin’s second stage is the transition stage. In the transition, staff there will be some resistance from a few employees. However, once they see the benefits of change refusal to go along will be a thing of the past. Employees will take possession of the circumstances and get-up-and-go for themselves and the organization. Remember, in the transition stage staff is looking for a new way of doing things. Therefore, they will start performing better, which leads to motivation.

 
Stage 3: Freeze

 

Finally, the third stage is the freeze. Once the team is motivated and moving in the right direction, it is vital for the company to lock in the success only for a short period. However, locking the process of successful change does not involve a slowdown. The development of change management has to continue to be maintained. Furthermore, this freeze period is a good time to celebrate success, review performance and reward on merit (Kaminski, 2001).

 
Both Kotter and Lewin’s models are rational and goal orientated. Even so, there may be feelings and negative responses from employees. On the other hand, there will be enthusiasm and feelings of ownership with other employees. Therefore, leaders of an organization must have a clear vision of what it takes to lead an organization to success. Which model will you use in your organization?

 

 

 
References
Gizzells, J., (2007), Behavior Change Theories & Models, Retrieved from www.csupomona.edu
Kaminski, J., (2001), Theory applied to informatics – Lewin’s Change Theory, Retrieved from, www. cjninet.com
Kotter International, (2012), The eight-step process for leading change, Retrieved from, www.kotterinternational.com
Smith, M., ( 2001), Kurt Lewin groups experiential learning & action: Research the encyclopedia of informal education, Retrieved from, www.infed.org/thinkers/et-lewin.htm

Posted by Carmel Speruggia in Management, 0 comments
What Is Marketing Strategy?

What Is Marketing Strategy?

What is a marketing strategy?images (29)

An organization has limited human, financial, technological, and other resources available to produce and market its offerings—it can’t be all things to all people!

Every organization must develop strategies to help focus and direct its efforts to accomplish its goals. However, the definition of strategy has been the subject of debate among management and marketing theorists.

For our purpose, strategy is an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

All organizations set a strategic direction. And marketing helps to both set this direction and move the organization there.

Posted by Carmel Speruggia in Marketing Strategy, 0 comments

Want To Be An Entrepreneur?

WANT TO BE AN ENTREPRENEUR

Some things to think about when developing an organization that will lead to success.

(1) The kinds of organizations that exist

(2) What strategy is?

(3) How this strategy relates to the three levels of structure found in many organizations.

So what do we know?  First, an organization is a legal entity that consists of people who share a common mission. This motivates them to develop offerings such as, products, services, or ideas. This creates value for both the organization and its customers by satisfying their needs and wants. Today’s organizations can be divided into business firms and nonprofit organizations.

A business firm is a privately owned organization such as Target, Nike, or Volkswagen that serves its customers to earn a profit so that it can survive.

Profit is the money left after a business firm’s total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings.

Whereas, a nonprofit organization is an organization that serves its customers but does not have profit as an organizational goal. Its goals may be operational efficiency or client satisfaction. Regardless, it also must receive sufficient funds above its expenses to continue operations.

Many organizations make strategic decisions that reflect the dynamics of the industry to create a compelling and sustainable advantage for their offerings relative to those of competitors to achieve a superior level of performance.

The foundation of an organization’s marketing strategy is having a clear understanding of the industry within which it competes.images

Organizations have limited human, financial, technological, and other resources available to produce and market its offerings—it can’t be all things to all people!

All organizations must develop strategies to focus and direct its efforts to accomplish its goals. However, the definition of strategy has been the subject of debate among management and marketing theorists.

For our purpose, strategy is an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals. All organizations set a strategic direction, and marketing helps to both set this direction and move the organization there.

What’s your organization’s strategy to attain a higher level of performance?

 

Posted by Carmel Speruggia in Entrpereneurship, 0 comments

How to Make Good Decisions

The primary role of managers is to make decisions. Good business managers are separated from the average ones by their ability to consistently make wise decisions.

Decisions have different scopes, perspectives, or degrees of urgency. The scope of a decision being made can apply to one particular department in a company, such as whether to add or reduce personnel, or it can have company-wide complications, such as deciding to change the compensation plan.images (28)

The perspective of a decision being made could have a short-term or long-term impact. Routine expense decisions have a short-term impact, whereas capital equipment purchases have long-term ramifications.

Decisions can also have different urgencies. Decisions that could affect whether or not you obtain new business from a large customer will likely have a different sense of urgency from the decision to have the CEO visit a small customer as a gesture of goodwill.

They can be technically based. They can have human relations components, like deciding to hire from outside or promote from within the company or should overtime work be voluntary or mandatory?

Decisions can have an operational perspective as well:

  • Should a job be run on machine A, B, or C, considering that machine C runs the fastest but needs a lot of maintenance?
  • Should management meet with a new customer at the customer’s or at management’s location, where they can give them the grand tour of the facility?
  • Should the organization switch from vendor A, a long-time supplier, to vendor B, who has better pricing?

Decisions can also have a long-term strategic aspect, like deciding to focus on tweaking a currently profitable product line or focusing energies on developing new technology. Should the firm try to penetrate two new international markets or focus its energies on increasing its market share domestically?

Harold Geneen coined the term unshakable facts (Economist, pg.1). Every decision he or his managers may be asked to make should be based on concrete, objective data or unshakeable facts rather than emotional, subjective feelings. This means that assumptions upon which decisions are based should be tested and researched first to confirm their validity.

This is particularly true in human relations decisions. For example, an employee is to have committed some serious offense, such as hitting another employee, practicing sexual harassment, or stealing, which are clearly dischargeable offenses based on the firm’s employee handbook.

A supervisor or manager called to the scene of one of these incidents is faced with several choices. Untrained managers may view the superficial evidence, listen to some initial witness accounts, and simply terminate the employee on the spot.

Because these are sensitive human relations issues that the entire workforce is likely to become aware of very quickly, it is crucial to diffuse the situation immediately. At the same time, it is important to consider the legalities of the human relations issues.

The best way to approach situations like this is to do the following:

  • Quickly diffuse the situation by suspending the employee pending a full investigation. This removes the employee from the situation, restoring calm to the workplace.
  • Over the next several days, conduct a calm, rational investigation.
  • Make the appropriate decision based on concrete, objective facts.

Another parameter of good decision-making is to make every decision from a range of options, including the option to do nothing. Every option that is being considered should be evaluated for its pros and cons., for example, before the sales department decides to open a new store in the Pacific Northwest, it should consider whether the effort and expenditures may be better spent by focusing on an existing region.  Instead, should these costs be devoted to a national TV campaign that may increase sales in all regions?

 

Economist.com, (1997), Harold Geneen: Harold Sydney Geneen, emperor of acquisitions

Posted by Carmel Speruggia in Management, 0 comments

Strategic Pricing

WHAT IS STRATEGIC PRICING?

The word “strategy” is used in various ways to imply different things. Here we use it to mean the organization of otherwise independent activities is to achieve a mutual goal. For strategic pricing, that objective is profitability. Achieving outstanding profitability requires managing much more than just price levels. It requires ensuring that products and services include features customers are willing to pay for, without unnecessary drive up cost by more than they add to value. It requires transforming the differentiated benefits your company offers into customer perceptions of a fair price for those benefits.
It requires the business owner to be creative in collecting revenues so that customers receive more value from your differentiation to pay more for the product or the service. Although more than one strategy can achieve profitable results, even within the same industry, nearly all successful pricing strategies include three principles and they are value-based, proactive, and profit-driven.
Let us look at each principle and what it means.
Value-based means that differences in pricing across customers and changes over time reflect differences or changes in the value to customers. For example, many managers ask whether they should lower prices in response to reduced market demand during a recession.images
The answer is if customers receive less value from your product or service because of the recession, then prices should reflect that. However, the fact that fewer customers are in the market for your product does not necessarily imply that the customers value it less than before. Unless a close competitor has cut its price, giving customers a better alternative, then there  no value-based reason for you to do so.
Proactive means that companies anticipate disruptive events and develop strategies in advance to deal with them. For instance, foreseeing, that a recession or a new competitor is entering the market will cause customers to ask for lower prices so, a proactive company develops a lower-priced product or service.
Profit-driven is that the company evaluates its success at price management by what it earns relative to alternative investments rather than by the revenue, it generates relative to its competitors.
Pricing strategically is essential to the success of any business. Reflecting, on the rise of competition, and the increased information that is available to customers today it is more of a reason to reflect on pricing strategy.

Hogan, J. E., Ph.D., Zale, J. (2011), Strategy and Tactics of Pricing: A Guide to Growing More Profitably
Posted by Carmel Speruggia in Pricing Strategy, 0 comments
Load more