** PLEASE READ ALL INSTRUCTIONS **
Develop a change plan based on the scenario uploaded (see Organizational Change Case Scenario). Use the change plan outline attached – start with #6. No sources are needed. Use Kotter’s eight steps in the plan. You should not suggest changes, this should be a plan of the changes that you are going to make. There should be specific steps – who is doing what and when. The timeline for changes should be in 18-months or less.
Read these journals:
Humphreys, J., & Langford, H. (2008). Managing a corporate culture slide. MIT Sloan
Management Review, 49(3): 25-27.
Kotter, J.P. (2007). Leading change: Why transformation efforts fail. Harvard Business Review,
85(1): 96-103.
Kotter, J.P., & Schlesinger, L.A. (2008). Choosing strategies for change. Harvard Business
Review, 86(7): 130-139.
Emails with suggestions from the instructor:
A few thoughts about the change plan you are conceptualizing for Rural Bank. First, remember, this is a conceptual exercise. You must conceptualize the organizational transformation before you start putting pen to paper. Think about organizational change as tossing a pebble into a pond. When the pebble hits, you’ll see ripples from where it landed that will slowly work their way throughout the pond and eventually, they may reach the bank. Change works similarly. In your case, the strategy is changing, which will change the culture, will change the organizational structure (i.e., strategic business unit structure), will change organizational processes, will change the people needs (impacting every HR function), will change the technological needs, will change the marketing needs, will change the management of personnel, etc. One of the reasons that many organizations fail at change as that they approach it way too superficially. We must conceptualize the change comprehensively and intentionally script the plethora of actions/steps/events necessary to effectively implement change (i.e., creating a sense of urgency, communication a compelling vision, etc.). And here is the test. Once you have the conceptualization on paper, if it is sufficient, you can hand the document to a complete novice that knows nothing about the firm, or the change, and they could implement it by simply following the actions/steps/events along the timeline that you have laid out. If they can’t, your plan lacks the specificity and detail needed to deliver organizational transformation.
Don’t try to write your plan without having conceptualized the change. That won’t work. Using Kotter’s eight steps in your plans, focus squarely on specific actions and events that can be implemented. For example, Kotter’s first step is to create a sense of urgency (we will cover Kotter’s steps on Monday). So, given that, what are the four or five events that you will use to create urgency? First, maybe the CEO announces the change plans (e.g., change in technology and products, leading to a change in strategy, leading to a change in structure) at an annual event. Second, maybe you create and make available a brief video from the executive team about the coming changes and the timeframe for it. Third, maybe the division heads have events to describe how the timeline and changes will impact their specific division. Fourth, maybe you create focus groups for specific work disciplines within divisions to elaborate the changes and receive feedback (Of course, you will need to decide who will lead these groups, how participants will be selected, where and when they will be held, etc.). Fifth, maybe you send a daily e-mail to all employees as to the coming changes and why they are needed to thrive. Sixth, maybe you send a mailer out to homes on a prescribed schedule. Seventh, maybe HR holds meetings with specific groups of employees to talk about job changes (e.g., compensation changes, recruiting changes, etc.) and reductions (i.e., CSRs) and timelines. Eighth, maybe you hold some retirement celebrations with those CSRs who have decided to do so rather than move to new locations. So, if I assume these are the events/steps/actions I conceptualize to create urgency, then who does these steps? When? In what order? In what format? Until these events are fleshed out and put on a calendar/timeline, they aren’t implementable. But once they are, then you can hand the plan off to anyone and they can implement because the plan tells them exactly what will be done, how, and when. And this will get complex, especially when getting to communicating the vision and managing resistance to change. Think it through. If this organization is going to flourish, you must comprehensively conceptualize the changes, make appropriate decisions, and lay it out for stakeholders.
We are now in full planning mode and the operative word is plan. I don’t want papers, essays, and summaries of the case. I want a PLAN that focuses on Kotter’s eight steps. So, you can’t just tell me that you are going to create urgency. What are the actions/steps/events that you will undertake to create urgency? Who will perform them? On what timeline? In what order? Through what format and/or channel? If you are involving employees, for example in focus groups, which employees? How will they be selected? Who will select? From the case, you know you’ll have to terminate a large group of customer service representatives. Who will determine who stays? Based on what criteria? When will it happen? What will be offered to those that are going? The same with business analysts. How will they be chosen? By whom? When? How? For those becoming money salespeople, how will you determine who needs training? What will the training look like? Who will conduct it? How will you train managers to become sale managers? You are clearly going to have to recruit differently. From different places. You’ll need to rework compensation and incentive systems. The list could go on and on. The plan must come from your brains. How will you manage resistance? What specific communication, education, participation, when, on what schedule, by whom? All I’m pointing out is that the PLAN will be very specific and will list all of the actions, steps, and/or events that will serve as a guide to implementation. So, stop writing papers and start focusing on conceptualizing an implementable plan. You can do this, but it will require time, effort, and most of all, thought.
I can tell you where my past students have tended to come up short. Although all eight of Kotter’s steps are important, put a lot of your planning energies into three areas. One, communicating the vision. This will be huge to the success of the change effort and will require continual, consistent messaging through multiple modes. Two, managing resistance to change. Developing numerous steps and layers of communication, education, and participation will be key to a successful change effort. And three, planning for and celebrating early wins. This requires some forecasting, but this step will prove critical to sustaining and advancing the change efforts. Make sure you think through these steps as far as actions, events, and proper order (timeline).
