Summary C721 – CHANGE MANAGEMENT TASK 1

C721 – Change Management Task Institution C721 – Change Management Task Instructor A. Discuss the need for change for the company in the scenario using either the systems contingency model or the organizational life cycle model. BMG, LLC has experienced record growth over the past decade. The Firm’s success as well as its need to transition from Traditional Organization into a Learning Organization can be clearly illustrated using the Organizational Life Cycle Model. The Model is divided into five stages: Entrepreneurial, Collectivity, Formalization, Elaboration, and Revitalization or Decline. Each are demarcated by an associated Crisis (Acrobatiq, 2017). The firm’s success to date is largely due to its Creativity through the initial Entrepreneurial Stage as well as Clear Direction given by top leadership during the Collectivity Stage of the firm’s life cycle. These facts are clearly illustrated by the Organizational Life Cycle Model. BMG, LLC is currently coming to the end of Stage 2, The Collectivity Stage, and will soon experience “Crises” (Acrobatiq, 2017) due to a lack of Autonomy throughout the ranks of the Firm. In order to sustain and even advance its growth BMG, LLC will need to begin to grant its employees the autonomy required to learn from and adapt quickly to changes in its new global market. B. Describe the differences between a learning organization and a traditional organization. The fist difference between a learning organization and a traditional is the way in which information is shared. Information is passed in a straight line up the management chain and then back down again. In a learning organization open dialogue between different divisions as well as upper management is encouraged. The second difference is that in a traditional organization, employees are not empowered to make decisions that they feel would benefit the firm. Within a learning organization, employees are given the autonomy to make decisions based on their experience and expertise that they feel would benefit the firm. In a learning organization, response times to changes in the market are much quicker than in a traditional organization. This is largely due to a combination of the traditional organization slow communication pathways and its employee’s lack of decision-making authority. They also collaborate with their customers more deliberately enabling them to anticipate their needs and engineer solutions on demand. Within a traditional organization there is an emphasis placed on the hierarchy or chain of command. If an employee takes a risk by altering a process or developing a new product without first seeking approval through the chain of command they will likely be harshly disciplined if the outcome was not positive. In a learning organization the negative outcome is used as a learning experience and is used for furthered development of the employee’s ideas. A learning organization heavily invests both time and resources in providing continuous learning opportunities for their employees. A traditional organization is more focused on ensuring that its employees obey the rules and procedures that were put in place by upper management. Learning organizations enjoy high returns on their investments because they ensure that the learning opportunities align with the organization’s goals. 1. Identify which stage of Woolner’s 5-stage model the company is currently in. BMG, LLC is currently in Stage 2 “Developing the Organization” of Woolner’s 5- stage model. a. Explain why the company is currently in the identified stage of Woolner’s 5- stage model. BMG, LLC is currently in Stage 2 of Woolner’s 5-stage model because management has identified the need for a transition from a traditional organization to a learning organization. This is evident by the fact that they have hired an outside consultant assist with the change and formalize the learning environment. 2. Explain how the company from the scenario would use Senge’s 5 disciplines to become a learning organization. Senge’s first discipline is “System Thinking” (Acrobatiq, 2017). System Thinking is the understanding of how the different divisions within the Organization work together to form the system. When teams are being assembled within the organization employees from each division should be represented so that members can learn from each other. Once employees achieve “System Thinking” they will be able to better understand how their specific jobs affect the organization as a whole. Senge’s second discipline is “Personal Mastery” (Acrobatiq, 2017). Personal Mastery is the individual employee’s improvement of their self. New learning initiatives should provide opportunities for employees to master their roles in the company. When employees join teams in the learning organization they will be representing their division and must be able to convey what it takes to be successful in that division to the team. This will require Personal Mastery. Senge’s third discipline is Mental Models (Acrobatiq, 2017). Mental Models are individual’s perspective of the organization and how they contribute to it. Employee’s of BMG, LLC have based their Mental Models on the principals guiding the currently traditional organization. The organization must ensure its employee’s mental models shift based on the change to a Learning Organization. The change initiative is reliant on everyone in the organization’s buy in and without a Mental Model shift that want happen. Senge’s forth discipline is Shared Vision (Acrobatiq, 2017). Having a Shared Vision means that everyone in the organization is on board with the new Learning Organization’s vision statement. The current Traditional Organization’s vision statement is based on top down management approach that didn’t require its employees to share in its vision. In the new Learning Organization, having a Shared Vision throughout the company is crucial to the success of the change initiative. The new autonomous management style of the Learning Organization will require that everyone work with a Shared Vision. Senge’s fifth discipline is Team Learning (Acrobatiq, 2017). When a team is formed with the goal of working together and learning from each other’s achievements the output of the team is greater than the sum of the output of each team member if they were working alone. Learning Organizations rely heavily on teams to work together and formulate innovative new ideas and solutions. Team Learning will allow the team members to be more effective than they could have been on their own. C. Identify the end result and nature of change to take the company from a traditional organization to a learning organization using Balogun and Hope-Hailey’s model. BMG, LLC should use the Evolutionary (Balogun and Hope Hailey’s Model) approach for its transition to a Learning Organizations. 1. Explain why the end result and nature of change would be appropriate for the company in the scenario using Balogun and Hope-Hailey’s model. The Nature of Change, according to the Balogun and Hope-Hailey’s model, should be Incremental (Acrobatiq, 2017). BMG, LLC is currently experiencing substantial growth and should not risk any unnecessary disruption to the firm’s processes. An Incremental approach will allow the changes to be well planned and scheduled. BMG, LLC will also retain the ability to make slight modifications as needed throughout the change process. The End Result of the change will be Transformational (Acrobatiq, 2017). BMG, LLC is currently a traditional organization and as such employees a top down management and development approach. When the Firm has fully transitioned to a learning organization the management structure will be flattened and development ideas will come from learning teams with the ability to quickly communicate with upper management. BMG, LLC will be completely restructured from the top to the bottom. D. Discuss how four steps of the action research model could be applied to the change process (traditional organization to learning organization) for the company in the scenario. Step one, Identify the Problem or Opportunity, of the Action Research Model was applied to BMG, LLC’s change process when the management team identified the need to improve multiple areas in the firm’s structure (Acrobatiq, 2017). They realized that without adding diversity to their ranks they would not be capitalize on the new global markets. They also realized that their IT platforms and inventory management systems were not sufficient to support the firm’s rapped worldwide growth. If BMG, LLC management had not Identify the Problem or Opportunities the firm would not be able to maintain its growth. Step two, Consult with OD/Change Management Expert, of the Action Research Model was also applied to BMG, LLC when management made the decision the contract a change management consultant. (Acrobatiq, 2017) The Firm recognized that their expertise did not lie in the Change Management Process and was not able to determine what direction the Firm needed to go in. A change management consultant will be able to evaluate the Firm and its process from an outside and holistic point of view. Step three, Collect Data, of the Action Research Model will be applied to the change process by the Change Management Consultant during the initial assessment of BMG, LLC and will continue throughout the process (Acrobatiq, 2017). Collecting Data will be accomplished through conducting interviews, reviewing current organizational chart, evaluating IT platforms as well as many other methods. In order to create a comprehensive plan for BMG, LLC’s transitions to a Learning Organization data must be collected to ensure as many outcomes as possible are anticipated. Step four, Formulate Preliminary Diagnosis, of the Action Research Model will be conducted once all necessary data has been collected (Acrobatiq, 2017). In this step the Change Management Consultant will identify what issues currently exist within the organization that are causing the need to change. The Preliminary Diagnosis is the culmination of the first three steps of the Action Research Model and can be used to communicate progress to the BMG, LLC management team. It will also provide the basis for which the change process plan will be built. E. Recommend two innovation strategies that management could use to transition the company in the scenario from a traditional organization to a learning organization. I recommend using the Exploration and Innovations Roles strategies. 1. Explain how one recommended innovation strategy would be used by management in the company's change process. The Exploration innovations strategy should be used to foster Creativity within the organization (Acrobatiq, 2017). Creative employees will provide fresh and effective ideas for new products as well as improvements to the manufacturing process for existing product lines. A Bottoms-up approach will allow innovations at all levels of the organization to surface. The employees at the bottom of the organizational chart are more often familiar with the problems that exist and spend more time pondering potential solutions. Internal contests should be held to motivate employees that may be struggling to shift their Mental Model’s to align with the new Learning Organization (Acrobatiq, 2017). The contests will also provide a forum for ideas to be communicated. F. Discuss how four steps of Kotter’s 8-step model could be applied to the change process for the company in the scenario. BMG, LLC management will need to communicate and establish a sense of urgency from the very beginning of the Learning Organization transition. They will need to convey to the organization that if the transition is not successful BMG, LLC will not be able to continue the growth that it has enjoyed over the last decade and may have a negative financial impact on its employees. A powerful guiding coalition will be formed early in the transition. This coalition will be made up of management personnel from all levels of the firm. These individuals will be in the position to effect change where necessary and have the motivation to do so. They will also receive daily feedback and identify areas of the transition process that many need to be adjusted. Once the guiding coalition has been formed a Shared Vision and Strategy (Acrobatiq, 2017) will be established. A vision is vitally important because it will become the guiding light for the organization before, during, and after the Learning Organizations transition is compete. The strategy for affecting the change must also have complete buying from the guiding coalition. The change consultant will coordinate and mediate workshops that focus on the Vision and Strategy to ensure the coalition is onboard. After the guiding coalition has established a Shared Vision and an effective Strategy, they will hold company programs conducted by upper management as well as the lower level managers in each division. The focus of these programs will be to communicate the new Vision and importance of the transition to a Learning Organization. Flyers that outline the Vision will also be posted in breakrooms and common areas to drive home the key points. G. Explain how each of the five pillars of sustainable change could be applied to sustain the learning organization environment of the company in the scenario. The first pillar of Sustainable Change is Leadership (Acrobatiq, 2017). In a Learning Organization, leadership is required a all levels of the firm. Team members as well as lower level managers will find themselves leading their peers in the new more flattened structure. They will be empowered and able to make decisions that effect the company as well as their fellow employees. This new reality will necessitate frequent leadership training for all employees, not just upper management. The second Pillar of Sustainable Change is Strategy (Acrobatiq, 2017). The organization will develop an ever-evolving plan of action and policy designed to achieve the major or overall mission of the Learning Organization. The BMG, LLC guiding coalition will continue to focus on strategic planning. This will be key roll of leadership in the effort to stay ahead of market trends and customer needs. The third Pillar of Sustainable Change is Culture (Acrobatiq, 2017). For BMG, LLC to sustain positive change the culture of the organization will need to change to better align with that of a Learning Organization. Culture is the deeper understanding that the employees of the organization have for the overall vision of the organization. A strong culture will ensure that everyone is working to achieve common goals without the need for micromanagement. The fourth Pillar of Sustainable Change is Structure (Acrobatiq, 2017). Structure is the base of the organizational chart design. The structure of BMG, LLC has changed from a top down hierarchical format to a more flattened structure. This is key to the success of any Learning Organization. The flattened structure allows ideas and information to flow quickly and freely throughout the ranks of the organization. The fifth Pillar of Sustainable Change is Systems (Acrobatiq, 2017). These are any of the IT, or manual platforms that the organization uses to maintain databases, complete processes, or process transactions. BMG, LLC is now operating on a state-of-the-art inventory management system. A team consisting of representatives from the IT, Operations, and Purchasing department will meet quarterly to review all systems and plan for updates and upgrades where needed. This will ensure BMG, LLC systems continue to meet the operational needs in the most efficient manner. References Acrobatiq. (2017). Change Management. [Learning Resource for C721-Change Management]. Available from