Project #55227 - Change Model Assignment

Imagine that you are an executive for XYZ, Inc., a high-end retail chain that sells luxury watches, jewelry, and hand bags.  You’ve just been put in charge of the company’s first international expansion, opening a store in Shanghai, China.  This will be a short-term, small-scale change for the organization.  After one year, you will be expected to begin opening additional stores in Brazil, Russia, India, and China (also known as the B.R.I.C. countries).  This will be a long-term, large-scale change. 

In 3 -  4 pages, explain which change model you would follow for the short-term change and which you would follow for the long-term change.  Provide rationale for your decision and discuss the effects that these changes would have on the employees, managers, and executives within the organization.  Include at least three references and follow standard APA formatting for your paper.

 

Below is some information that may be able to further assist you in regards to the change model. There are about 9 or so parts to the change model but here is a breakdown.

The Wake-Up Call: Preparing to Lead the Change

According to Ackerman and Anderson leaders generally embark on a change effort from a wake-up call. In Ford Motor's turnaround, it was Chairman William Clay Ford Jr. who got that call as he observed the stock, cash, and competitiveness of the company tumble. He called Mulally to lead the charge to change because the officers in the company were not moved to take urgent action.

Mulally's mission was, then, to turn Ford Motors around. Preparing to lead the change, he began by learning the reality of the situation, studying the facts, numbers, and details, and then began to create a case for the change while identifying the desired outcomes. He also, according to Ackerman and Anderson, was building his capability to lead the change, which required examining and ensuring that he had the relevant skill sets, expertise, and experience to lead the change. Because he had been coached and learned how to deal with enterprise-wide change while at Boeing, Mulally seemed ready for the tasks. He also was charged with clarifying an overall change strategy and creating an infrastructure with the conditions to support the change effort. In this regard, he devised a turnaround strategy, the "Way Forward Plan" that centralized and modernized plants to handle several models at once and that sold vehicles in several markets.

Creating Vision, Commitment, and Capability

Mulally's overall vision was to return Ford to its preeminent status in the global auto industry. He stated, as quoted earlier, "I am here to save an American and global icon." His commitment and persistence were evident in his statement that he "expects the very best of himself and others, seeks to understand rather than to be understood." And, as Bill Ford said about him, "Alan is not a very complicated person. He is very driven

Mulally built the necessary capability by reorienting the top-level global officers and 12 functional area managers to the company's long-term goals and short-term operating objectives. He ensured this alignment, as stated earlier, by providing ". . . a constant stream of data where all managers saw weekly reports of Ford's global operations that compared executives' performance against profit targets."

Assessing the Situation: Determine Design Requirements and Desired State and Analyze the Impact

Mulally never stopped assessing Ford's situation, that is, its financial position, sales, and marketing status and capabilities in relation to global competitors, and with regard to his vision to get Ford back to the top of the industry. In the turnaround described in the opening scenarios, Mulally's "One Team, One Plan, One Goal" was the road to his desired state of seeing Ford as the top global competitor in as many vehicles as possible. While he depended on his managers' input to help determine design requirements of vehicles based on customer demand, as leader he ensured that the culture of the company would not return to the splintered state of bickering and isolated control based on different officers' preferences.

In more stable planned changes, it may be easier to analyze the impact of a change, as Ackerman and Anderson suggest. In turnarounds like Ford's situation, Mulally's method reflected a more continuous examination of the ongoing impact of his changes. His use of continually changing data, information, and analysis, interpreted at the Thursday morning meetings, was the basis for analyzing the impact of Mulally's vision, goal, and operational systems globally.

Plan, Organize, and Implement the Change

Mulally's plan centered on the implementation of his "One Goal, One Plan, One Team" mantra. Simply, that plan was, "Focus on the Ford brand ('nobody buys a house of brands'); compete in every market segment with carefully defined products (small, medium, and large; cars, utilities, and trucks); market fewer nameplates and become best in class in quality, fuel efficiency, safety, and value. Easier said than done. As Mulally said when he first arrived at Ford, It's the toughest environment I've ever seen. But we will make it through if we stick to the plan.

Implementing this plan and change required the preparation of all the phases discussed above. In the roadmap shown in Figure 3.1, implementation occurred after the preparation of the organization to support the implementation was made, based on the development of the master implementation plan. Because Mulally had Bill Ford's and the Board of Directors' support, and because Mulally painstakingly prepared himself with the financial, organizational, cultural, and operational detail, he knew he was ready to implement.

It is very important to state that Mulally had also met and debriefed the officers, managers, and many employees at Ford before and while planning the change. Mulally had also met several times with Bill Ford and discussed Ford's situation before accepting the job. It all seemed to "pay off." As Joe Hinrichs, a manufacturing supervisor, said, Alan brings infectious energy. This is a person people want to follow Mulally's practice and insistence on transparency through open and continuous communication with and among all professionals at Ford was based on his insistence that Everyone has to know the plan, its status, and areas that need special attention. So, while the change was not easy, neither was it impossible or unrealistic. Mulally was ready and had used a roadmap and a plan as well as his intuition, discipline, and confidence.

The results and aftermath of the change have proven successful to date, as shown in Ford's financials and Mulally's 2011 stock bonus. Mulally and Ford Motors have "Celebrated and Integrated the New Change" as phase VIII in Figure 3.1 shows. Moreover, the road ahead may prove even more challenging as Mulally and Ford continue the journey through phase IX: "Learn and Course Correct." The remainder of this chapter discusses in more detail how other planned changes are implemented.

 

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Due By (Pacific Time) 01/31/2015 12:00 am
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