Change is identified as all-pervading characteristic of organizational existence operating at operational as well as strategic level. Organizations can become sclerotic with well-established routines and practices which often pose challenges towards new changes proposed by managers or CEOs (Morschett, Schramm-Klein and Zentes 2015). However managing organizational change is highly challenging and complex whereby great amount of concern must be taken while implementing change. The following report will focus on SweDigi, a manufacturing company in south of Sweden currently operating as a sub-contractor to digital music industry. The paper intends to evaluate the way its newly recruited CEO, Jan has proposed a new product development to acquire the company’s declined growth and reduced revenue and profit level. In addition to this, the paper will highlight some people management issues while implementing change, steps Jan will adopt in implement strategies of launching the product along with its leadership styles and certain recommendations to gather effectiveness of change management.
Change is evident everywhere, starting from the regular changes to highly complex situations encountered by managers or leaders of the organization. However, one of the challenging factors in the effectiveness of an organization is the competence to embrace the change.According to Goetsch and Davis (2014), for a declined company to recover lost value and effectiveness within market, seeking new niches by developing new product can be identified as a constructive approach towards organizational productivity. However, organizational changes which require personal and professional characteristics will be encountered with resistance from employees. SweDigi newly employed CEO with the vision of launching stimulation game in Sweden’s music industry recently has been encountering people management challenges concerning employee resistance to technological innovation and increasing complexity of the Supply chain.
ADKAR Model of Organizational Change
According to Rajala, Westerlund and Lampikoski (2016), change management is identified as means of empowering and stimulating employees to successfully adopt change in order to attain business objective. Change management is further signified as a constructive bridge between solution and the outcome desired to be generated from the desired organizational transition. SweDigi has been witnessinga significant declined rate of revenue in recent times due to poor management techniques and lack of the new and advanced products launch (Brisson-Banks 2010). Thus an innovative product development can be signified as a constructive approach for the company to acquire its decreased profitability and gain competitive advantages in the Sweden manufacturing sector. Meanwhile, Welch, Sinha and Ward (2016) are of the view technological innovation, reduced expenditures with high revenue growth along with enhanced product and services. Furthermore, to effectively manage change, essential players require considering the elements of change with step-by-step process which will be leading to the proposed change. At this juncture, the ADKAR model is recognized to be accentuating its attention on five fundamental elements in order to prepare employees for the planned change(Brisson-Banks 2010).
Bejinariu et al. (2017) have argued that Prosci’s ADKAR model is a highly extensive used goal-oriented approach which tends to facilitate individual transition by enabling Change management teams to proficiently emphasize on specific outcomes. As ADKAR is primarily based on the premise that organizations do not undertake any transitions, it is the workforce in the organization who undergoes fundamental changes. This according to Amanchukwu, Stanley and Ololube (2015), enables ADKAR to generate successful change at the individual level and further outlines the desired goals or results of the successful change. At this stage, SweDigi’s newly employed CEO will be adopting ADKAR model for efficiently planning change management activities to successfully launch new product in the Swedish manufacturing sector as ADKAR model is identified as an effective tool for planning change management activities along with initiatives from supporting management and leadership style.
Fiaz, Su and Saqib (2017) have noted that the success or failure of organizational change relies on the unique contributions of people engaged. Alvesson and Sveningsson (2015) have further argued that workforce and their skills are identified as primary determinants to deal with change which is responsible for various change processes to be unsuccessful. Leaders are not only inputs while exercising planned change processes but is also regarded as a major game changer competent of leveraging the other inputs related to organizational change objectives with budget required to implement change management with facilities(Goetsch and Davis 2014).. The change management process adopted by newly recruited CEO, Jan will be divided into four stages known as phases of a change project whereby SweDigi will require representing organization’s willingness and inclination towards change. At this juncture, according to Matos Marques Simoes and Esposito (2014), managers highlight the objective of the change project which needs to align with company’s mission as well as vision. As per the case study, Jan must make strategies to align his desired aims of generating innovation with SweDigi’s workforce to mitigate any form of miscommunication. Furthermore, implementation represents the stage of execution of a change project. Organizational leaders must put in place mechanisms to ascertain the efficiency of the change project(Hornstein 2015). At the same time, organizations should circumvent the loss of valued employees and thus, reduce unconstructive impact of change on efficacy as well as company’s clientele base. Meanwhile, Heding, Knudtzen and Bjerre (2015) states that post-implementation step primarily correspond to the final step in the change management process whereby the companymust conduct comprehensive evaluation of the change process that is being implemented in order to proficiently assess successes as well as failures in the process and further distinguish procedures to improve next project of product development(Bridges and Bridges 2011).
Cameron and Green (2015) have stated that perceiving change as a procedure with clear stages it is easier to arrange and strategies the transition within the organisation. According to Lewin, high-level enthusiasm and impetus for change must be generated prior to the occurrence of change management process. The three step model proposed by Lewin has been associated to organism and machine metaphors(Cummings, Bridgman and Brown 2016). This model primarily comprises three steps namely unfreeze move and refreeze. However the underlying principle of Lewin’s model emphasizes on the stimulating forces which meet to surpass the resisting forces for organisational change to occur. As a result according to Cavusgil et al. (2014) Lewin’s model of change serves as a contributory management tool in order to distinguish and evaluate the driving as well as resisting forces. Jan, CEO of SweDigi at this stage of his proposed change implementation can employ Lewin’s change model as a planning tool to evaluate his planned session, implementation as well as post implementation assessment devoid of any employee participation.
Unfreeze- The primary stage of living theory emphasizes on preparing the organisation to embrace the importance of change within the organisation. This step regarded as unfreeze entails breaking down the current status quo before a newly developed function can be setup. Furthermore authors have emphasized on the importance of communication in this stage(Hornstein 2015). Communication process should focus on sharing the information of the proposed change and highlighting the loopholes of existing procedures which ineffective for the company to attain successful growth. The CEO of SweDigi at the stage of unfreeze must relate the message of the launch of simulation game in the music industry to the declining sales figures, increasing attrition level and poor financial outcomes.
The unfreeze stage should initiate in the core of the organisation which are based on the standards, values, behaviour and mission of the organisation. However Caprar et al. (2015) are of the opinion that the three step model suggested by Lewin on changing of cultural patterns at the very beginning of the change process. Jan while operating the manufacturing of the newly launched simulation game must establish a control crisis in order to create the enthusiasm and involvement required for the change to happen (Brisson-Banks 2010).
Change- Cameron and Green (2015) have found that after the establishment of the control crisis at the unfreeze stage; the organisation has developed a readiness for the following stage, that is to undergo the proposed change. At this stage, as per the McCleskey (2014), employees seek new approaches of exhibiting their skills. However employees need to be well-equipped of the areas which can be beneficial for them at an individualistic level in order to fully hold the change and contribute the company in reaching its goal. Furthermore, time and communication are vital factors which must also be strengthened at this stage. Meanwhile Nanjundeswaraswamy and Swamy (2014) claim that the employee of SweDigi require some time to adapt to the innovative idea of Jan regarding the product launch and what further need to develop a sense of connectivity towards the company throughout the process of the launch of the new product.
Refreeze-The Lewin’s model of change further focuses on the third stage of refreeze where proposed changes have the propensity to evolve. At this juncture, employees are observed to have developed sufficient knowledge of the ongoing change and adapt to the newly developed ways of functioning. Fiaz, Su and Saqib (2017) have claimed that in such a phase, organisations must ensure successful implementation of the new normal in consistent manner and that the organisational development is intrinsically incorporated into regular business process. Organisations implementing change must also take into considerationcomprehensive job description as well as organisational chart with comprehensive details mentioned on them(Kotter 2007). However SweDigi, while mitigating manufacturing errors during the implementation of proposed simulation game must keep a detailed organisational chart(Bridges and Bridges 2011).
Although according to Rajala, Westerlund and Lampikoski (2016) change tends to remain stable in the current environment, a significant sense of stability must be proficiently created while implementing any change. Such consistency within the business underpins a proper persuasion of the processes to their full capacity and ensures employees’ safety during the transition process where they are completely unaware of the proper execution of processes. However the newly recruited CEO of SweDigi, during his aim of acquiring competitive advantage position in the Swedish manufacturing sector must take into consideration certain outward indicators of the refused stage which are based on organisation charts and consistent job description. Furthermore the refreeze stage must aid its employees of organization along with the company in order to internalize the undertakenchanges (Worley. and Mohrman 2014). Such attempt would indicateassurance of the usage of changes and that these changes will be efficiently internalized into the day by day business of the organisation. However with the execution of a new sense of reliability, employees must develop of sense of optimism and high level of comfort and effortlessness with the new traditions of working(Ayhan, Aydin and Öztemel 2015).
Amanchukwu, Stanley and Ololube (2015) have indicated that any attainable organisation must implement change which should be executed at three different levels such as individual group and organizational level. However at all the levels of performing change management, a leader must manage its employee base and guarantee their endeavours align to the proposed change for the organisation. From the case study it has been revealed that Jan, the newly recruited CEO of SweDigi is facing several challenges in the manufacturing plant while planning to launch its new product with a wide gap between management level and his leadership style. Jan has noted that in this competitive market place, leadership success is typically measured on the basis of its contribution on attaining a common good that is at a social ethical and international level, while simultaneously act responsive towards global changes. As a result, it is essential to look beyond the company’s current environment and envisage the potential which will enable in forming a working climate whereby creative ideas can arise and be successfully shared and co-developed (McCleskey 2014). A new product launch primarily aims to improve a company’s current market positioning and sales growth along with the work environment.
However, these goal oriented developments must align to a trait-driven leadership approach. According to Fiaz, Su and Saqib (2017) democratic leaders tend to have a vision along with a significant personality which motivates followers or subordinates to perform according to the vision of a leader. Thus democratic leadership style has been identified as one of the most valued leadership approach in any change management procedure. Such leadership technique further has been regarded as participative one, where by members of an organisation efficiently participates in the decision making procedures(Bridges and Bridges 2011). This integration however results to improve outcomes with better contributions from group members along with an augmented group value. McCleskey (2014) have insisted that effective leadership style necessitates development of accurate organisational culture within the company which refers to set of beliefs, norms, ideologies and principles which are shared by the organization’s employees.In the case of new product development and further to improve SweDigi’s current financial position in the Swedish manufacturing sector, Jan must proficiently lead from the front and integrate management along with other employees and should avoid making unilateral decisions which may result to create ramifications to the efficacy of the organisation (Cameron and Green 2015).However Welch, Sinha and Ward (2016) have claimed that it is chiefly the roleof the management to efficiently form the urgency by providing comprehensive explanations to the workforce the reasons of the implementation of change. Though, the democratic leadership techniques involve considerable amount of time it can be a challenging work but undoubtedly guarantees improved outcome of the change management process.
Kuipers et al. (2014) have stated that to execute successful change management and avoid employees resistance towards the planned transition in the organisation, efficient leaders must involve right resistance managers in order to align the ideas with them. As the managerial unit of SweDigi has exhibited a significant lack of inclination and dedication towards the launch of the new simulation game resulting to a disruptive manufacturing process at the plant, Jan as a goal oriented leader must engage supervisors as well as managers of the company into the proposed strategy in order to make them aware of their significance within the organisation. CEO can help to engage the right resistance managers by offering data related to the areas from where the resistance has originated and further cast light on the significant causes of resistance with potential techniques for seeking the wide gap between the management level and proposed change. However through such an involvement, proficient leaders can successfully execute actions in order to see objections as well as advance employees in the change process(Goetsch and Davis 2014).
Conclusion
Therefore, from the above discussion it can be stated that in order to attain sustainable competitive advantage and reduce employees’ turnover in the market, SweDigi along with its newly appointed CEO must primarily aim at satisfying consumer desires. Thus a newproduct such as simulation game for the Swedish music industry can be identified as a purposeful strategy to regain its lost position in the market. The new product will proficiently enable to reach exceptional results in the product development as well as higher efficiency level to increase the rate of its revenues. Exceptional results can be witnessed with proper implementation of the product at the very beginning as it will tend to satisfy the needs of consumers desiring for it to come to the market. However, resistance or lack of knowledge has been observed by Jan during the manufacturing process which is resulting to inefficiency of the product launch. For such scenario, the paper has offered comprehensive insights of Strategies and change model frameworks which Jan can employ while dealing with change development in the company. For successful change management the paper has mentioned the importance of two important change management theories which can be implemented namely ADKAR model of organizational change and Lewin’s change management. Furthermore, proper leadership style also plays a decisive role in leading any kind of change. With strong goals in mind Jan can employ democratic leadership techniques and involve his management units to proceed with his planned change or product development to acquire improved results and effectiveness of the company.
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