Strategy: Choices and Change

Assessment Brief: Individual Strategic Change Case Study Analysis

Student ID

Tutor’s Name

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.0              Introduction

This report is based on Rowling Energy Plc, a major generators and electrical and gas power provider in Europe. The company has more than 10 million customers and extensive distribution networks. The company is a leader in the generation of renewable energy. It has also experienced some strategic transformations 2014 and 2016, such as changes in health and safety culture, change from formal and autocratic leadership to more informal and proactive leadership, and empowering of managers (Beech & Macintosh, 2012). The purpose of the report is to analyse Rowling Energy Plc. case study based on three strategic change models. The models applied to understand the change process are: Balogun and Hope Hailey’s Change Kaleidoscope model, Johnson’s Cultural Web model, and the Kotter’s 8 Change Steps model. The first part of the report takes the form of an analysis of the company based on Balogun and Hope Hailey’s Change Kaleidoscope model, to understand the strategic change initiated by Jay Jameson. The second part is based on the Johnson’s Cultural Web model whereby a comparison and contrast of the culture of Rowling Energy during the tenure of Samson Steele and Jay Jameson is conducted. The third section is based on the application of Kotter’s 8 Change Steps model between January 2014 and March 2016.

2.0              Case Study Analysis

1)       

The Balogun and Hope Hailey’s Change Kaleidoscope model was developed to assist managers in undertaking a context sensitive approach to facilitate change within an organisation (Balogun, 2001). The outer ring is composed of the organisational strategic change context. The centre ring is composed of elements such as power, time, scope, preservation, diversity, capability, capacity, and readiness. The inner ring correlates with the design choices for changed agents when the implementation process is initiated. Figure 1 below is the model to be applied

 

 

Figure 1: Hailey’s Change Kaleidoscope model. Source: Balogun and Hope-Hailey (2002).

 

Elements

Transformation processes

Time

Time for change was a not restricted

Scope

The change was for the entire organization because culture was to be changed

Preservation

Health and safety culture was to be changed, employees trained, and cost reduced. No preservations

Diversity

Changed needed across the production part of the company

Capability

Individuals coped with transition

Managers needed training

Organization had necessary resources

Capacity

Changed needed for all staff members, the company had money for investment, and no extra time for managers to devote to the change

 Readiness for Change

Negative, managers high, employees very low

Power

 Positive, because the directors, and managers have the power to initiate change

 

            From the table above, there were some challenging aspects of the change context and most enabling or helpful aspects that enable the change by Jay Jameson. For instance, managers and change agents lacked the necessary experience for change, hence the training and development that was initiated under the leadership. Johnson et al. (2013) contends that lack of skills and experience are some of the major aspects that may hinder the change process. However, training and development increase skills, and hence a successful change process (Johnson & Scholes 1998). The company was taking a proactive change within a given time, but not under any specific constraint. The scope of the change involved entire organizational culture change, whereby the leader anticipated a decrease in costs and share and dividends. The organization was ready for the change given prior leadership and management. Nonetheless, most of the managers with prior experience had left the company under the leadership of Steele. The success was thus facilitated by a series of management training courses designed to develop the management population.  Equipping them with skills made them coaches and problem solvers.

Rowling Energy is a successful company at and the time change was initiated, it was profitable. Thus, the company had the capacity to invest in the change process. In other words, the organization had money for investment, and no extra time was required for managers to devote to the change process. This made it possible to undertake the change process (Balogun & Hope-Hailey, 2008; Balogun, Hope-Hailey, & Gustafsson, 2016). The other advantage that Rowling Energy had was that power was vested in the CEO and he was supported by the members of Board of Executives. Moreover, the CEO shared the power with line managers by empowering them to be coaches and agents of change. As Balogun and Hope-Hailey (2008) puts it, the role of Change Champions is “a key pivotal figure on which the success of a change program depends” (p. 20). The line managers became coaches and assisted in building and sustaining the confidence of the change champion.

With reference to preservation, the health and safety culture was to be changed in the whole organization and managers were to be trained in order to reduce costs. Thus, no preservations were made. On the issue of diversity, the people were diverse in terms of norms, values, and attitudes, but they all needed change. In line with Balogun and Hope-Hailey (1999), the two stages of the scope and timescale mad it possible to follow a path culture of change in order to generate the needed levels of readiness, and the full term of change. The change was top-down because it started from the top downwards. The use of collaborative and participative change style was effective because the CEO was able to delegate and promote the change across the organization. The use of effective communication through the use of videos and meetings enabled cultural interventions in the organizations (Balogun et al., 2016; Balogun & Hope-Hailey 2008; Hailey & Balogun, 2002). As Balogun (2001) puts it, “communication, education, training and personal development initiatives will also be required to help individuals undertake the changes required of them” (p. 9). Moreover, roles and responsibilities were assigned to different leadership, who played the roles of change agents.

2)       

The Johnson’s Cultural Web model is made up of stories, symbols, power structures, routines, paradigms, controls, and organizational structures. According to Johnson (1992), the A culture web is a representation of culture as an interlinked set of subsystems in an organisation which are used to drive a paradigm of a visible manifestations of culture. If the changes need changes to some of the primary assumptions and beliefs in the paradigm, the planned changes are transformational (Johnson et al., 2008). To undertake transformational change, it is imperative that individuals are part of the change. On the other hand, in order to change the culture of a company, it is important to change the manner in which individuals take time to change, think about work, and behave (Johnson, 2000).  The Model is presented in figure 2 below.

 

 

Figure 2: Johnson’s Cultural Web model: Johnson, Whittington, and Scholes (2008)

The table below presents the culture of Rowling Energy when Samson Steele was CEO and at the end of the case when Jay Jameson was the CEO.

 

Samson Steele

Jay Jameson

Stories

CEO a villain

Skilled and experienced people left

Negative stories

 

The CEO is the Hero

Approachable by visitors and employees

Won an award for its health and safety performance,

Positive stories

Symbols

The oak panelling and furnishings

Secluded office

walls painted with paint \

A glass walled office

Power Structures

Elitist and remote with a top down, dictatorial approach and a lack of empathy

Top down delegative approach

Organizational structure

Formal

a hierarchical divisional structure to hierarchy and decision making,

Informal

A more organic approach to hierarchy and decision making,

Controls

High costs and low high market share and dividends

High bonuses

Low costs and high market share and dividends

Routines and Rituals

Not approachable by visitors

There was excessive rules and bureaucracy

Approachable by visitors and employees

Delegation of roles and responsibilities

Little bureaucracy

Paradigms

cost control

Cost control and consistency of supply are the capabilities of the company

 

Based on the table above, there were similarities and differences between the leadership and management of the two leaders. For instance, the paradigms focused on cost control and consistency of capabilities which were capabilities for the company. Nonetheless, the routines and rituals were all different under the leadership of the two CEOs. For instance, Steele was not approachable by staff and visitors, which was contrary to Jameson. In addition, Jameson delegated responsibilities and roles and trained employees so that they can easily execute their duties. Contrary, Steele applied excessive rules and bureaucracy.

With regards to symbols, both CEOs had personal offices which were enclosed. However, under Steele his office was formal and it was a large panelled room, which was located at the top of the building. On the other hand, Jameson was in a small office at the bottom of the office and accessible by staff and visitors. This was contrary to Steele which was guarded and only accessible by private lift. Under the leadership of Jameson, the lift was accessible to all staff members.

Organizational structures can be formal or informal and define the relationships that take place in the company (Johnson et al., 2008). Within the organization, the structure was formal and Steele adopted a hierarchical divisional structure to hierarchy and decision making. On the other hand, Jameson applied informal organizational structure that was based on a more organic approach to hierarchy and decision making.

Controls have been defined by Johnson and Scholes (1998) as the rewards and measurement systems applied to monitor elements that are significant to the organisation, as well as to reward the staff.  With reference to Steele, he used high costs and low high market share and dividends, while on the other hand, Jameson the CEO’s aim was to cut down costs and bonuses given to top executives and senior managers. Thus, Steele’s operations added costs of the operation via highly paid consultants, while Jameson did away with the consultants, hence cutting down costs.

Although Steele and Jameson achieved greater heights in terms of share price, the stories were different. For example, the stories were negative for Steele and positive for Jameson who perceived as a hero, while former as a villain. Under Steele, skilled and experienced people left, while Jameson trained the inexperienced. Lastly, Jameson efforts made the organization win an award for its health and safety performance.

3)       

Kotter’s 8 Change Steps model is composed of 8 steps that are followed when initiating change in an organisation. These steps are: creating a sense of urgency, creation of a guiding coalition, change vision development, communicating the vision, empowering broad-based action, generating short-term wins, consolidation of gains and production of change, and making the change stick (Kotter, 2012; Kotter, 1995). Table 3 below summaries the change that took place at Rowling Energy in between January 2014 and March 2016.

 

Steps

Transformation processes

Increase in urgency

Change the approach after familiarization with the company operations

Change the culture and style of working across the organisation.

Build the Guiding Team

Sat with the Executive Board members

Get the Vision

The vision was to change the culture of the company

Communicate for By-in

Communicated through the use of a video

Empowering Action

Made the CEO office into a meeting room

Delegation, empowerment of managers, and new structures and systems

Create short term wins

Made his office accessible by visitors and staff

 Do Not Let Up

Introduced performance management system

Replace managers and executives

Make Change Stick

 New management training courses to develop the management population.

 

All the 8 steps of the Kotter’s 8 Change Steps model were applied in the case of Rowling Energy Plc. and they were counterproductive. This resulted in the intended change, which was to reduce costs and maintain the share price and the dividends of the company. Under the urgency stage, the aim is to identify the need for change based on market realities (Kotter 2012). In the case study, Jay Jameson familiarized with the company operations and established the urgency to change the culture and style of working across the organisation. The second phase is building the guiding team and this was achieved when the Executive Board was informed of the change and it was time to initiate the change process. The CEO also communicated with the senior managers in the company.

The third phase was to build a vision which according to Kotter (1995) is used to direct the change effort. It also entails the development of strategies to build the change. Jay Jameson established a vision which was to change the culture of the organization. For instance, the CEO developed “New processes and systems for health and safety monitoring were introduced with a focus on the reporting and early detection of potential problems” (Beech & Macintosh, 2013, p. 3). In addition, training of line managers on safety matters was part of strategies to build the change.

The fourth phase of the model is communicating the new vision and strategies and stakeholders. According to Kotter (2012), the communication must be simple and to the point. Additionally, the staff must be taught of the new behaviours needed in the company. In this regard, the CEO communicated with the 120 key employees via a video. Meetings were also held with senior managers and board executives to communicate the change and its necessity. The CEO employed a series of training sources for line managers in order to make them problem solvers and coaches instead of being instruction givers.

The fifth phase is the empowering action whereby obstacles to change are removed and structures and systems that may work against the vision changed (Kotter 2012).  In the case study, this was achieved via delegation, empowerment of managers, and new structures and systems. For instance, the office of the CEO was accessible and the regular meetings were held. There was introduction of new processes and systems for health and safety which were used to detect and report of potential problems. Training and development of staff to make mangers problem solvers and coaches was also carried out (Johnson 2000).

The sixth step is the creation of short-term wins through rewards and recognition and others means. In this case, the CEO removed bonuses, but introduced new ways in which employees felt appreciated. For instance, they had access to the CEO, competencies of leaderships, and the private lift was made more accessible to all staff members. This step did not work so well because appreciation of the employees in monetary terms, leaves, and among others was not applied.

Seventh step is on not letting go the change process and this is achieved through visible performance improvements and reinforcing behaviours (Kotter 2012). This step was successfully executed when the CEO introduced performance management system and replace managers and executives who have been laid off. Also, training employees fostered was a step toward the realization of the vision for the change process. The last phase is the institutionalization of the change and this entails making the change formal of the organization and are put into place (Appelbaum, Habashy, Malo & Shafiq 2012). New management training courses to develop the management population were put into place to ensure the change is fully adopted.

3.0              Conclusions

Rowling Energy Plc. is a major generators and electrical and gas power providers in Europe. The Balogun and Hope Hailey’s Change Kaleidoscope model, Johnson’s Cultural Web model, and the Kotter’s 8 Change Steps model have been applied, analysed and discussed. Based on the Balogun and Hope Hailey’s Change Kaleidoscope model the success of the change was promoted by a series of management training courses that equipped line managers with skills made them coaches and problem solvers. Communication, training, and leadership skills of Jameson promoted the change process. The change was top-down and collaborative and participative change style were applied. The applicability of effective communication via the use of videos and meetings promoted cultural interventions. Thus, personal development initiatives, training, education, and communication helped individuals undertake the changes.

The Johnson’s Cultural Web model is composed of stories, symbols, power structures, routines, paradigms, controls, and organizational structures. The change was transformational and well-planned. There were similarities and difference in Jameson and Steele tenure at Rowling Energy Plc. For example, there were cost control and consistency of capabilities. The organisation under Jameson had positive stories, while under Steele, the stories were negative. Kotter’s 8 Change Steps model was successfully applied in between January 2014 to 2016.

 

 

 

 

 

 

 

 

 

 

 

 

 

4.0              References List

Appelbaum, SH, Habashy, S, Malo, JL & Shafiq, H (2012), ‘Back to the Future: Revisiting Kotter's 1996 change model”  Journal of Management Development, vol. 31, no. 8, pp 764-782.

Balogun, J. (2001). Strategic Change [Online] available at: < http://www.tomorrowsleaders.com/A5569D/icaew/content.nsf/DocumentLookup/ICAEWSTR0109/$file/MQ10+Strategy.pdf> (Accessed 19 July 2016)

Balogun, J., & Hope-Hailey, V (2002). 'Devising context sensitive approaches to change: The example of Glaxo Wellcome.', Long Range Planningvol. 35, no. 2, pp.153-178.

Balogun, J. & Hope-Hailey, V. (2008). Exploring Strategic Change. UK : FT Prentice Hall.

Balogun, J., Hope Hailey, V. and Gustafsson, S. (2016) Exploring Strategic Change, 4th edition, Prentice Hall.

Beech, N. & Macintosh, R. (2012) Managing Change: Enquiry and Action, Cambridge University Press.

Hailey, V. H., & Balogun, J. (2002). Devising Context Sensitive Approaches To Change: The Example of Glaxo Wellcome. Long Range Planningvol. 35, no. 2, pp.153-178.

Johnson, G. (2000). ‘Strategy through a Cultural Lens’, Management Learning, vol. 31, no.4, pp. 403-426.

Johnson, G. (1992). "Managing strategic change— strategy, culture and action." Long Range Planning, vol. 25, no. 1, pp. 28-36.

Johnson, G & Scholes, K (1998) Exploring Corporate Strategy, Pearson Education, U.S.

Johnson, G. Whittington, R. & Scholes, K. (2013) Exploring Strategy, Pearson Education, London.

Johnson, G, Whittington, R & Scholes, K (2008) Exploring Corporate Strategy, Pearson Education London.

Kotter, J. (1995) 'Leading Change: Why Transformation efforts fail' Harvard Business Review, Vol. 73(2) pp.59-67

Kotter, J. (2012) Leading Change, Harvard Business Review Press

 

 

 

 

 

 

 

 

GET A PRICE
£ 10 .00