managing strategic change assignment

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Sample - Understanding and Leading Change Assignment

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Introduction of understanding and leading, change assignment.

Get free samples written by our Top-Notch subject experts for taking assignment helper services. It is a well-known fact that understanding and leading change helps participants prepare for the difficulties inherent in starting and executing change. As the business environment is constantly changing, it is critical to recognize market circumstances and make necessary adjustments to guarantee the firm's growth and success (Schell, 2019). Tesco was chosen to illustrate this notion since it is a British multinational retailer of groceries and general products. This study discusses a variety of issues, including how change affects a corporation's strategy and operations, how drivers of change influence organizational behavior, and how obstacles to change impact leadership decision making. Apart from that, it explains how to employ a variety of leadership styles while directing a change project. The study also considers the organizational example of Tesco and Marks & Spencer to analyse and compare the impact of change in each of the organization’s strategy and process. The various leadership approaches that are incorporated to manage change within organizational context are also outlined in the following report. LO1 Compare ways by which change impacts on an organisation's operation and strategy P1 Compare various organisational examples where there has been an effect of change on an organisation'soperations and strategy Organizational process is designed in order to fulfill corporate goals, and it is critical for companies to build an effective plan that is tailored to the operating procedures so that work may be completed efficiently(Choromides, 2018). To flourish in a dynamic environment, it is critical to analyze demand and preferences in order to create policies that promote the corporation's development. Operational procedures differ as per the nature, size, industry, and kind of business. It is needed to do research into the variables that influence and impact the company's management and operations in order to ensure long-term viability in the external environment. Tesco built their brand image on the basis of cheap prices and outstanding service. In contrast to Sainsbury's and Marks & Spencer, Tesco enhanced its brand image by using the brand's power, approval ratings, and originality of brand connection (Awadari and Kanwal, 2019). Tesco achieves customer happiness through improving their employee service, which aligns with the Tesco motto "Everything little helps". Moreover, Tesco generated value for the customer in order to win their lifetime loyalty (Awadari and Kanwal, 2019). This implies that Tesco will do all necessary to meet the customer's needs but will place a priority on service; as a consequence, Tesco will earn the customer's brand loyalty. The significant changes which are adopted by Tesco in comparison to other organizations are listed below:

Basis of Difference Marks & Spencers Tesco

Marks & Spencer outlined its plans to accelerate the pace of change in its company as more clothes and home goods are sold online and more food is delivered directly to the house. The retailer claims that "rapid transformation is the only choice" in light of this channel shift, which is compounded by increasing competition from discount retailers in a difficult consumer market. M&S's strategy now is to decrease expenses by at least £ million by becoming more efficient and reducing waste, while also accelerating its shop closure plans (Heikkurinen, Young, and Morgan, 2019). M&S is also seeking to regain its'special' status in British family life by focusing on "strengthening core shopping objectives with new lines that appeal to a broad range of family age consumers and daily occasions."

A review of th necessary, and introducing a ne goods. This dras as beef, fish, pi appeal to cos partially complete and Mason, 2018 goods was abou rebranding. The operate in this pricing. As a co point, farm an significantly.

M&S is now recommending making changes and creating a new retail management structure that is constantly improved by eliminating role duplication, making clear leadership accountability, and refocusing retail teams on the customer (Bailey et al., 2018). The changes proposed would affect 950 roles along all central support functions in sector and central operations, as well as property and store management.

Tesco has unde result of adap conditions by checkouts to red Mason, 2018). technology that keep their custo spent in queues.

M1 Assess the various drivers for change in each of the given examples

And the types of organisational change they have affected.

largest retailers. Both internal and external factors contributed to the transformation at TESCO. The following sections cover the primary triggers: Effects on leadership: Change drivers may enable Tesco's leaders to explore novel methods for motivating team members and achieving peak performance (Miao et al., 2018). One might claim that at times of transition, organizational leaders may face stiff opposition from their followers. Not only that, but there may be instances when Tesco's leadership should be shifted from democratic to authoritarian in order to forcefully execute the change. Effects on team behaviours: Change drivers may well have a significant impact on team behaviors at Tesco. One might argue that team members may oppose improvements to their functioning and productivity that are needed (Blanco-Portela et al., 2017). As a result, companies and managers may need to rethink their strategies for modifying team behaviors in response to new circumstances. Effects on individual behaviors: When analyzing the implications of change drivers on individuals, it is fair to presume that employers and employees in the organization will become less motivated to participate in the change and acquire a negative attitude about the change (Evans and Mason, 2018).

P3 Evaluate measures which can be incorporated to minimise negative

Effects of change on organisational behaviour.

Tesco may consider a number of steps to mitigate the negative effects of emerging changes on organizational behaviors. These measures are described in more detail below. Effective leadership: Effective leadership is among the most effective strategies for mitigating the negative effects of change on organizational behaviors. As per the research, executives at Marks and Spencer must develop situational leadership in order to successfully execute change strategies within the organization (Al-Ali et al., 2017). Not only that, but leaders within the organization are also required to provide an example of excellence by demonstrating best practices that may be emulated by workers or team members. Thus, leadership style is a critical element in minimize the impacts of change. Strong plan development: In addition to enhanced leadership, Tesco is required to develop plans and strategies that will encourage workers to adopt new practices. Not only has this occurred, but leaders and managers inside an organization have required the development of educational and training programs. This manner, Tesco's workers will become accustomed to the new practices and changes, gradually reducing resistance to change implementation. Effective Communication of Change Plans: Among the worst outcomes of a change management process is the spread of misconceptions and gossip among staff in the devoid of clear and consistent management communication (Stouten, Rousseau and De Cremer, 2018). Having a

communications plan in place and utilizing a variety of communication tools to ensure that the employees are informed well about change's prime purpose is critical for Tesco to minimize negative effect of the change.

M2 critically analyse the longterm implications of external and internal

Drivers of change in an organizational context.

TESCO has been able to deploy its methods successfully and efficiently throughout the years to be one of the world's largest retailers. Both internal and external factors led to the transformation at TESCO. The following sections cover the primary triggers: Creation of Customer Value: As part of TESCO's goal to maintain current existing customers and attract new, the Company decided to add value to their shopping experience. As a response, the self-checkout system was implemented (Awadari and Kanwal, 2019). TESCO wanted to enhance the shopping experience for its consumers. An expanding customer base: TESCO's success may be attributed to a variety of reasons, one of which is its rapidly expanding client base. Self-checkout was developed to alleviate congestion at Checkouts. Customers no longer have to wait in long, tedious lines to pay for their purchases thanks to the introduction of self-checkout (Evans and Mason, 2018). They can utilize self-checkout, which is fast and convenient, particularly if the client just buys a few things. Innovations in technology: With the advancement of technology, it is important for all organizations to improve their technologies if they want to succeed. TESCO introduced self-checkout to increase operational efficiency (Evans and Mason, 2018). Competition: Competition between companies is a frequent catalyst for development in the majority of industries. TESCO developed the self-checkout technology in order to acquire a competitive edge over its rivals (Choromides, 2018). This also resulted in market difference, as TESCO differentiated itself from other shops via the adoption of the self-checkout system.

LO3 Determine how barriers to change influence leadership decision-

P4 elaborate various barriers for change and evaluate how they impact, leadership decision-making in a chosen organisational context.

• Involvement of Employees This is probably the most prevalent impediment to change management that Tesco may face. Employees have an inherent dread of change, and unless they have been actively engaged in the change process, even for the most devoted member of your staff is likely to oppose the change. The most common problem made by some companies is a failure to involve workers in the

Human Resources: Tesco's human resources team's primary objective is to continuously enhance the skills and quality of its workers in order for them to offer as much as possible to the business (Lee, Looi and Woo, 2018). They guarantee that workers maximize their potential and provide their all to the organization's success. The resisting forces for the process of change management and leadership include: Absence of communication strategy: Tesco does not have an effective communication strategy. Indeed, senior executives frequently believe that once a change is announced, people will adjust and be prepared to begin (Stouten, Rousseau and De Cremer, 2018). This is the most illogical way to bring change, which explains why the change faces such tremendous opposition. Ineffective planning: Ineffective planning for change integration is another resistant force that is likely to have an influence on the organization's change implementation and management. LO4 Apply a range of leadership approaches to a change initiative P5 Incorporate various leadership approaches to dealing with change in a range of organisational contexts The transformational and situational leadership approach can be incorporated to manage change in retail organizations like TESCO. Situational Leadership Approach: The situational leadership approach claims that there is no one ideal way to lead people and highlights that a leader's style and conduct must be determined by his or her followers' qualities. Specifically, the situational approach to leadership model teaches leaders how and where to show the most successful leadership style depending on their followers' preparedness. This approach asserts that when a leader's behaviors are matched to his or her followers' skill, willingness, and degree of confidence, the leader will extract optimum performance from them(Walls, 2019). Tesco may adopt this approach to instill organizational culture and promote more effective leadership in order to manage change. Transformational Leadership Approach: Transformational leadership is defined as a leadership style that results in good change for both people and social systems. It’s ideal form leads to significant and beneficial change in disciples, with the main goal of converting followers into leaders. Transformational leadership encourages members of a group in emerging into individuals who look beyond their personal self-actualization and self- interests to the team's or institution's larger benefit (Tabassi et al., 2017).The leader promotes the moral growth of his followers in order for them to absorb these same values and beliefs. Thus, this approach of leadership seeks to encourage employees to follow positive change, which will in turn enable Tesco to effectively manage change in the organization.

M4 Analyse the extent to which leadership approaches can offer organisational change properly applying appropriate models Tesco desired to implement self checkout systems progressively in order to reduce change resistance and improve competitive power. To implement the new initiative, the strategic manager chose Kotters change model since the change initiative should be implemented progressively over a short period of time. Furthermore, this change endeavor involves minor technology changes, and this organizational change is suitable for such adjustments as well. Tesco has launched the following change initiative. Create a sense of urgency Tesco decided that it needed to improve the competitive position and enhance customer service in order to maintain its market leadership position. As a consequence, it sought for new technologies that might help cut costs and enhance customer service, as technology is rapidly evolving (Kang et al., 2020). Market & Spencer launched a new technology self-checkout system in 2002, which Tesco closely monitored. As a result, Tesco decided to implement a self-checkout system as a change initiative. Form a team for a power coalition It formed a group comprised of an area manager, supervisor, and trade union representative with the power and authority to effect meaningful change. Create a distinct vision The company's new vision is to be profitable, to deliver excellent customer service, and to embrace technology. Communicate the vision To create a vision, the team used the company's website and cascaded the information from the area manager to the supervisor, who then held meetings with the other workers to discuss the aims. Empower others to carry out their vision Change managers conduct education and training programs to instill the importance of self out systems and to assist employees in overcoming obstacles. Special education sessions have been organized for workers who were obstructing progress (Rajan and Ganesan,2017). The company announced awards for employees from each store who helped to make the goals a reality. Create short-term wins Following the conclusion of the trail project, Tesco released a report on its website and stories were published in the press. Consolidating gains and generating more change Institutionalize the new approaches

Krzysztof, K., 2018. Attitude toward public sculpture as a group dynamic process adaptation of the Kurt Lewin's force field concept into art theory (Doctoral dissertation, Ulster University). Lee, S., Looi, N. and Woo, C., 2018. Factors that influence consumers’ acceptance towards Self-Checkout System (SCS) in hypermarket Malaysia (Doctoral dissertation, UTAR). Miao, Q., Newman, A., Schwarz, G. and Cooper, B., 2018. How leadership and public service motivation enhance innovative behavior. Public Administration Review , 78 (1), pp-81. Rajan, R. and Ganesan, R., 2017. A critical analysis of John P. Kotter's change management framework. Asian Journal of Research in Business Economics and Management , 7 (7), pp-203. Rinta-Kahila, T., Penttinen, E., Kumar, A. and Janakiraman, R., 2021. Customer reactions to self- checkout discontinuance. Journal of Retailing and Consumer Services , 61 , p. Schell, W., 2019. Leadership and change management. In Traffic Safety Culture . Emerald Publishing Limited. Stouten, J., Rousseau, D. and De Cremer, D., 2018. Successful organizational change: Integrating the management practice and scholarly literatures. Academy of Management Annals , 12 (2), pp-788. Tabassi, A., Roufechaei, K., Bakar, A.H. and Yusof, N., 2017. Linking team condition and team performance: A transformational leadership approach. Project Management Journal , 48 (2), pp-38. Walls, E., 2019. The value of situational leadership. Community practitioner: the journal of the Community Practitioners'& Health Visitors' Association , 92 (2), pp-33.

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STRATEGIC CHANGE MANAGEMENT

2020, Strategic Change Management adapted to the Eastman Kodak Company

The piece of work that follows is focused on strategic change management and is broken into four activities of which the first one deals on the understanding of the background to organizational strategic change. The report being discussed applies to the Eastman Kodak Company and activity one concentrates on the models of strategic change and the use of intervention techniques in the change process. The second activity deals with the strategic changes within the Eastman Kodak Company while the third one sees the contribution of stakeholders in the change process. Last but not the least, the last and fourth activity focus on the models that ensure ongoing change.

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5 Critical Steps in the Change Management Process

• 19 Mar 2020

Businesses must constantly evolve and adapt to meet a variety of challenges—from changes in technology, to the rise of new competitors, to a shift in laws, regulations, or underlying economic trends. Failure to do so could lead to stagnation or, worse, failure.

Approximately 50 percent of all organizational change initiatives are unsuccessful, highlighting why knowing how to plan for, coordinate, and carry out change is a valuable skill for managers and business leaders alike.

Have you been tasked with managing a significant change initiative for your organization? Would you like to demonstrate that you’re capable of spearheading such an initiative the next time one arises? Here’s an overview of what change management is, the key steps in the process, and actions you can take to develop your managerial skills and become more effective in your role.

Access your free e-book today.

What is Change Management?

Organizational change refers broadly to the actions a business takes to change or adjust a significant component of its organization. This may include company culture, internal processes, underlying technology or infrastructure, corporate hierarchy, or another critical aspect.

Organizational change can be either adaptive or transformational:

• Adaptive changes are small, gradual, iterative changes that an organization undertakes to evolve its products, processes, workflows, and strategies over time. Hiring a new team member to address increased demand or implementing a new work-from-home policy to attract more qualified job applicants are both examples of adaptive changes.
• Transformational changes are larger in scale and scope and often signify a dramatic and, occasionally sudden, departure from the status quo. Launching a new product or business division, or deciding to expand internationally, are examples of transformational change.

Change management is the process of guiding organizational change to fruition, from the earliest stages of conception and preparation, through implementation and, finally, to resolution.

As a leader, it’s essential to understand the change management process to ensure your entire organization can navigate transitions smoothly. Doing so can determine the potential impact of any organizational changes and prepare your teams accordingly. When your team is prepared, you can ensure everyone is on the same page, create a safe environment, and engage the entire team toward a common goal.

Change processes have a set of starting conditions (point A) and a functional endpoint (point B). The process in between is dynamic and unfolds in stages. Here’s a summary of the key steps in the change management process.

Check out our video on the change management process below, and subscribe to our YouTube channel for more explainer content!

5 Steps in the Change Management Process

1. prepare the organization for change.

For an organization to successfully pursue and implement change, it must be prepared both logistically and culturally. Before delving into logistics, cultural preparation must first take place to achieve the best business outcome.

In the preparation phase, the manager is focused on helping employees recognize and understand the need for change. They raise awareness of the various challenges or problems facing the organization that are acting as forces of change and generating dissatisfaction with the status quo. Gaining this initial buy-in from employees who will help implement the change can remove friction and resistance later on.

2. Craft a Vision and Plan for Change

Once the organization is ready to embrace change, managers must develop a thorough, realistic, and strategic plan for bringing it about.

The plan should detail:

• Strategic goals: What goals does this change help the organization work toward?
• Key performance indicators: How will success be measured? What metrics need to be moved? What’s the baseline for how things currently stand?
• Project stakeholders and team: Who will oversee the task of implementing change? Who needs to sign off at each critical stage? Who will be responsible for implementation?
• Project scope: What discrete steps and actions will the project include? What falls outside of the project scope?

While it’s important to have a structured approach, the plan should also account for any unknowns or roadblocks that could arise during the implementation process and would require agility and flexibility to overcome.

3. Implement the Changes

After the plan has been created, all that remains is to follow the steps outlined within it to implement the required change. Whether that involves changes to the company’s structure, strategy, systems, processes, employee behaviors, or other aspects will depend on the specifics of the initiative.

During the implementation process, change managers must be focused on empowering their employees to take the necessary steps to achieve the goals of the initiative and celebrate any short-term wins. They should also do their best to anticipate roadblocks and prevent, remove, or mitigate them once identified. Repeated communication of the organization’s vision is critical throughout the implementation process to remind team members why change is being pursued.

4. Embed Changes Within Company Culture and Practices

Once the change initiative has been completed, change managers must prevent a reversion to the prior state or status quo. This is particularly important for organizational change related to business processes such as workflows, culture, and strategy formulation. Without an adequate plan, employees may backslide into the “old way” of doing things, particularly during the transitory period.

By embedding changes within the company’s culture and practices, it becomes more difficult for backsliding to occur. New organizational structures, controls, and reward systems should all be considered as tools to help change stick.

5. Review Progress and Analyze Results

Just because a change initiative is complete doesn’t mean it was successful. Conducting analysis and review, or a “project post mortem,” can help business leaders understand whether a change initiative was a success, failure, or mixed result. It can also offer valuable insights and lessons that can be leveraged in future change efforts.

Ask yourself questions like: Were project goals met? If yes, can this success be replicated elsewhere? If not, what went wrong?

The Key to Successful Change for Managers

While no two change initiatives are the same, they typically follow a similar process. To effectively manage change, managers and business leaders must thoroughly understand the steps involved.

Some other tips for managing organizational change include asking yourself questions like:

• Do you understand the forces making change necessary? Without this understanding, it can be difficult to effectively address the underlying causes that have necessitated change, hampering your ability to succeed.
• Do you have a plan? Without a detailed plan and defined strategy, it can be difficult to usher a change initiative through to completion.
• How will you communicate? Successful change management requires effective communication with both your team members and key stakeholders. Designing a communication strategy that acknowledges this reality is critical.
• Have you identified potential roadblocks? While it’s impossible to predict everything that might potentially go wrong with a project, taking the time to anticipate potential barriers and devise mitigation strategies before you get started is generally a good idea.

How to Lead Change Management Successfully

If you’ve been asked to lead a change initiative within your organization, or you’d like to position yourself to oversee such projects in the future, it’s critical to begin laying the groundwork for success by developing the skills that can equip you to do the job.

Completing an online management or leadership course can be an effective way of developing those skills and inspire several other benefits . When evaluating your options for training, seek a program that aligns with your personal and professional goals; for example, one that emphasizes organizational change.

Do you want to become a more effective leader and manager? Explore Management Essentials , Leadership Principles , Organizational Leadership , and Leading Change and Organizational Renewal —four of our online leadership and management courses —to learn how you can take charge of your professional development and accelerate your career. Not sure which course is the right fit? Download our free flowchart .

This post was updated on August 8, 2023. It was originally published on March 19, 2020.

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Strategic Change Management

Lead and implement change in your organization.

Is your organization experiencing growth, driving innovation or navigating disruption? If so, you’re not alone. Organizational change is inevitable in the modern business world and, for those who want to remain competitive, the ability to manage change is critical.

In this online program, you’ll learn to develop a strategy for sustainable change and gain the knowledge required to implement and oversee change initiatives while managing resistance from stakeholders. You’ll also develop the insight to maintain agility, effectively manage aversion to change, and ensure that change is sustainable through building and leading a learning-ready organization. Most participants can expect to dedicate 4-6 hours per week to watching the lectures, participating in discussions and completing exercises.

"A fantastic course with the proper cadence and amount of strategic content. The instruction was a great mix of reading and video's combined with horizontal learning that made the class invaluable."

Financial Services Executive - Investments

Incentives available for groups and teams of four or more attending open enrollment programs. Learn more

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Who Should Attend

• Senior and middle managers who want to drive strategic change at a company, as well as team level
• Decision makers who need to navigate disruption in their industry with a change management strategy
• Professionals in change management and HR who need to implement large-scale change in an organization
• Leaders of small businesses looking to effectively manage growth and scaling

Key Benefits

• Develop a strategic approach to change management that aligns with your organizational strategy and design
• Gain the practical tools for implementing sustainable change in your business, while managing resistance from stakeholders
• Understand how to build a learning-ready organization in order to remain agile and gain a strategic competitive edge
• Learn from expert Kellogg School of Management faculty
• Engage with an international network of like-minded professionals

Program Content

Module 1: Formulating a Strategy for Change

Understand the importance of strategy to create change and learn to write an effective strategy statement

• Identify the key elements of an effective strategy statement
• Practice writing a strategy statement
• Critique an organization's strategy statement
• Interview with Juli Duty, Founder and Executive Director, United Sound, Inc. – "Redefining Executive Strategy"

Module 2: Organizing for Change

Explore the importance of designing an organization effectively to manage change

• Relate the importance of an organization's structure to its competitive advantage
• Articulate the best approach to change an organization's design

Module 3: Metrics and Motivating for Change

Explore how the application of metrics can create motivation for change

• Use metrics and measurement to motivate for change
• Analyze data to determine the alignment between an organization's strategy and structure
• Determine how an organization should change to align its strategy and structure

Module 4: Organizing for Execution and Innovation

Explore the use of social network structures as a way to foster execution and innovation

• Articulate how to organize for closure versus brokerage
• Determine whether an organization is designed for closure or brokerage
• Analyze an organization's informal social networks and deduce whether it is structured for execution or innovation
• Recommend changes to an organization's informal social networks to foster execution and innovation

Module 5: Building and Leading Learning-Ready Organizations

Develop a framework for creating a learning-ready organization for a competitive advantage

• Identify the core concepts of a learning-ready organization
• Determine the learning-readiness of an organization
• Apply the concept of learning-readiness to organizational alliances
• Deduce appropriate social networks to facilitate a learning-ready organization

Module 6: Becoming and Remaining Agile

Discover the importance of strategic and organizational agility to implementing change

• Identify what agility is and discuss it in the context of organizational strategy
• Indicate ways to become more agile
• Apply tools to increase strategic and organizational agility

Module 7: Managing Resistance to Change

Examine the hurdles to implementing change and ways to overcome them

• Identify different types of innovation and how innovation leads to resistance
• Determine the risks associated with stakeholder perception to disruptive innovation
• Recommend ideas to manage resistance to change
• Interview with Adam Galinsky, Vikram S. Pandit Professor of Business; Chair of Management Division, Columbia Business School, Columbia University – “Creating a Sense of Disruption”
• Interview with Loran Nordgren , Associate Professor of Management & Organizations – “Managing Resistance to Change and the Importance of Persuasion”
• Interview with Nicholas Pearce , Clinical Associate Professor of Management & Organizations – “Leadership, Purpose and Courage”

Module 8: Making Change Sustainable

Ensure the long-term survival of your change management plan

• Understand the difference between installing change and implementing change
• Investigate an organization's ability to sustain change
• Predict whether a change management plan is likely to be sustained or not
• Interview with Sally Blount , Michael L. Nemmers Professor of Strategy – “Sustaining Change”
• Interview with Stephen King , Adjunct Professor of Executive Education – “Forming a Culture and Using Dialogue that Sustains Change”

Edward (Ned) Smith - Associate Professor of Management and Organizations, Kellogg School of Management; Associate Professor (by courtesy) of Sociology at Northwestern University; Faculty Affiliate, Northwestern Institute for Complexity (NICO)

What is the learning experience?

Strategic Change Management integrates rich, interactive media – such as videos, infographics, and e-learning activities – along with traditional didactic components such as study guides (program notes). There will also be opportunities for collaborative learning through discussion forums.

The introductory orientation module is designed to introduce participants to the online teaching and technical support network and help connect participants to each other.

What is the program format?

The program consists of 8 modules delivered over 2 months online. Learners can expect to dedicate 4-6 hours per week to watch videos, complete assignments and participate in discussions. Each module is opened weekly, allowing a flexible but structured approach to learning, with quizzes throughout to assess your learning process. Learners may choose to engage with the program module all in one sitting or in smaller segments of time throughout the week. While the modules do not close, access to assignments is closed each week.

Could a learner choose to opt out of some topics?

No. This is an online program in which a topic module is introduced each week and the learner is expected to watch the video lectures, participate in the live webinars, complete the exercises/activities and take the mastery quiz at the end of each week to progress to the subsequent week’s topic.

What methods will be used for grading and evaluations?

Program tutors and success managers will review assignments, discussions and exercises to determine participants’ understanding of the material, as well as ensure a positive learning experience in the online learning platform.

How much time is allocated to complete assignments?

The due date for submitting assignments is typically within 7 days of the module opening, but can be as long as 14 days, depending on the scope of the assignment. However, learners may request deadline extensions to accommodate for business and personal conflicts that may arise during the program timeframe. Reach out to the program tutor or success manager to discuss any challenges you may have in completing assignments.

Can participation in this program be counted as credit toward a degree, either at Kellogg, Northwestern University or another academic institution?

No. Executive Education offers only non-degree programs and each participant receives a certificate of completion at the end of the program. This certificate does not count as credit toward a degree. In addition, at this time, our online programs do not count as credit toward a Kellogg Executive Scholar Certificate.

Does the program offer community engagement for learners?

Yes, participants can create a profile, connect and collaborate with peers. In addition, in the live webinars, participants can interact with the head tutor and other content experts.

What are the requirements for accessing the program?

Participants will need the following to access the Strategic Change Management program:

• Valid email address
• Computing device connected to the internet (Mac/PC/laptop, tablet or smartphone)
• The latest version of your preferred browser to access our learning platform (though not required, we recommend using Google Chrome when accessing the Online Campus for optimal experience)
• Microsoft Office Suite (PowerPoint, Word, Excel) and PDF viewer to access content such as documents, spreadsheets, presentations, PDF files, and transcripts
• Additional software and resources may be required for certain programs – this will be communicated upon registration and/or at the beginning of the program
• PLEASE NOTE: Google, Vimeo and YouTube may be utilized in the program delivery.

Do the programs offer a certificate?

Yes. Participants will receive a digital certificate of completion from Kellogg following a successful conclusion to the program. Since this program is graded as a pass or fail, participants must receive 70% satisfactory feedback on submitted assignments and assessments in order to obtain the certificate. This digital certificate can be shared with colleagues and posted on LinkedIn. (PLEASE NOTE: We do not provide reports of assessments, or “transcripts,” since this is a non-degree program.)

Who is 2U, Inc./GetSmarter and what is their relationship with Kellogg Executive Education?

Kellogg Executive Education is partnering with GetSmarter, a brand of 2U, Inc., an online education provider, to develop and deliver this program. By working with 2U, Inc./GetSmarter, we are able to provide broader access to Executive Education, beyond our on-campus offerings, in a collaborative and engaging format that is consistent with Kellogg’s standard of quality.

Additional questions?

Please contact us by calling 847-467-6018 or email us at [email protected] .

What Participants Say

“I thoroughly enjoyed my experience taking this course. I thought the content was both engaging and informative. The mix of forums, readings and videos kept me engaged throughout the course. I've already identified several ways in which I plan to bring information learned via this course back to my organization to better arm us to adapt to a rapidly changing business environment.”

Global Operations Director, Energy BBDO

“It was really impressive. The knowledge was jumping out of the videos, the articles and the case studies. It seemed so real you forget that it was an online course. An excellent learning experience, not too easy and not too hard. The interaction with the classmates was very interesting and helpful, very glad to share experiences and opinions with other people with different perspectives.”

Unit Manager, Sunlight European Battery Assembly

“My company is currently going through several deep change initiatives to position us for future success. This program has prepared me to help lead my company through these initiatives. This is a must take program for anyone looking to progress their careers in leadership!”

Business Strategy & Operations Manager

“Having worked in strategy for a little while now, I’ve always been highly interested in how organizations – and mostly the humans in them – can navigate ambiguity and change.  The capacity to align, on an ongoing basis, the strategy to an organizational structure and culture is critical to drive success and react to disruption.  I wanted to get better at understanding how to achieve this.

I’ve been lucky enough to complete the Strategic Change Management program from Northwestern University’s Kellogg Executive Education. In addition to being the perfect mix of theoretical backbone and practical tools & thoughts – it made me think about how much I could become a better leader.   Hats off to Prof. Ned Smith, PhD for building this program, it exceeded my high expectations.

Not only am I very happy to have completed it, I am now looking about what’s the next step to pursue that interest as it sparked a desire to explore even more.

Director, Strategy & Business Design at Nurun

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Managing Organizational Change

Change management is the systematic approach and application of knowledge, tools and resources to deal with change. It involves defining and adopting corporate strategies, structures, procedures and technologies to handle changes in external conditions and the business environment. Effective change management goes beyond project management and technical tasks undertaken to enact organizational changes and involves leading the "people side" of major change within an organization. The primary goal of change management is to successfully implement new processes, products and business strategies while minimizing negative outcomes.

Overview Background Business Case The Roles of Management and HR Steps in the Change Management Process Overcoming Common Obstacles Encountered in Implementing Change Managing Varied Types of Major Organizational Change Legal Issues Global Issues

This article discusses the management of large organizational changes that may have far-reaching impacts on the organization and its workforce, including the following topics:

• The nature and extent of organizational change.
• The business case for a systematic approach to change management.
• The roles of management and HR during major change initiatives.
• Steps to take in managing organizational change.
• How to overcome common obstacles encountered during organizational change.
• Legal and global considerations in managing change.

This article also highlights some of the special issues and challenges in implementing certain types of major organizational change, including mergers and acquisitions, downsizing, bankruptcy, business closure, outsourcing, and changes within the HR function.

To keep pace in a constantly evolving business world, organizations often need to implement enterprisewide changes affecting their processes, products and people. Change is a fact of life in businesses today. It can be difficult, and people often resist it. But to develop an agile workplace culture, organizations should follow a systematic approach to managing major change. Organizational development experts have established approaches for successfully navigating through change.  See  How to Manage Change .

Organizational leaders must identify and respond quickly to market changes and unexpected challenges, but most are not in a position to create an agile culture. Yet agile leadership—from CEOs down to line-level managers—separates high-performing from lower-performing organizations. Companies that consistently outperform competitors in profitability, market share, revenue growth and customer satisfaction reported much greater agility than lower performers. 

Business Case

The rate of major organizational change has accelerated dramatically in this decade. Global research and advisory company Gartner reports that the average organization has undergone five enterprise changes in the past three years and 73% of organizations expect more change initiatives in the next few years. 1 

As change initiatives have become more frequent and widespread, the importance of managing individuals through change has gained credence. Major changes can affect organizations across all levels. Many corporate leaders have concluded that failing to manage employees through change can be costly: Employees who are dissatisfied with or upset by change are generally less productive.

An employer that is serious about change management should develop a communication plan, a road map for change sponsors, integrated training programs and a plan for dealing with resistance. 

HR should be involved in major organizational changes from the beginning and can assist by influencing the following:

• Improving employees' understanding of change.
• Increasing communication between management and employees.  
• Identifying and mitigating risks.
• Enhancing employee satisfaction.
• Boosting trust between management and employees.
• Improving employee skills and proficiency through change-related training initiatives.

The Roles of Management and HR

Business managers who want to undertake major transformation to stay competitive must work with HR staff to gain employee acceptance and support.

Management's role

Having the right leadership and buy-in from the executive team is critical to unifying the organization behind a common strategic direction.

Another key is making sure all managers are equipped to coach their direct reports toward commitment. One-on-one conversations help individual team members analyze how the change will affect them, determine their level of commitment and choose how they will act. Questions managers should address with employees include:

• What is changing?
• Why is it changing?
• How will it affect your area?
• How will it affect you directly?

Unfortunately, many managers are not adept at change management. The lack of change management skills among managers can make change initiatives difficult to achieve. A Towers Watson Change and Communication ROI Survey found that 87 percent of employers train managers on effective change management; however, only one-quarter of those employers found the training to be effective. 2 To increase managers' skills, HR should provide training that is tailored to the specific change initiative and the competencies necessary to lead successful change. 

HR's role

HR can play a dual role in change management by initiating and leading the change and by serving as a facilitator for changes that other leaders and departments initiated. 

The HR department performs a variety of functions associated with the communication, implementation and tracking of major changes. Most commonly, HR professionals assist employees by serving as a point of contact for questions and concerns and by explaining any impact on staffing. In addition, HR often coordinates meetings and communications about the change and related initiatives. Other common HR roles and responsibilities include:

• Providing initial employee communications about changes.
• Developing training programs.
• Preparing informational documents.
• Assessing readiness before the change.
• Analyzing potential impact.

HR can also play a strategic role in change management by calculating the post-implementation return on investment by identifying key performance indicators (KPIs) to be measured and by tracking and communicating these results.

By championing change, HR can help the organization increase buy-in, comfort and support for change across departments, thereby increasing the success of change initiatives.

Steps in the Change Management Process

Organizations should systematically prepare for and implement major organizational change. John Kotter, a Harvard Business School professor, developed a well-known and widely adopted approach for managing organizational change. This approach, updated in Kotter's book Accelerate , involves the following eight stages: 3

1. "Create a sense of urgency." Successful transformation efforts usually begin when leaders examine the market for changes that may lead to new competitive realities for the organization. These changes can stem from demographic shifts, social trends, new technology, market or competitor changes, or new government regulations. The leaders should explain that a potential crisis or major opportunity is imminent, and they should encourage frank discussion throughout the organization. Creating a sense of urgency that the status quo is no longer acceptable is essential to gain the workforce's energetic cooperation.

2. "Build a guiding coalition." Once employees feel a sense of urgency, leaders should establish a group with enough power to lead the change. Members need substantial authority based on position, expertise, credibility and leadership, as well as effective management skills and proven leadership abilities. This coalition must learn to work together based on trust and set a common goal. Many guiding coalitions build trust through offsite meetings, joint activities and conversation.

3. "Form a strategic vision and initiatives." The guiding coalition should craft a clear vision for the future, motivate people to take appropriate actions and coordinate their actions. An effective vision is imaginable, desirable, feasible, focused, flexible and communicable, according to Kotter. Creating an effective vision takes time and can be a challenging process, but the end product provides a clear direction for the future.

4. "Enlist a volunteer army." Once the guiding coalition has developed the vision, its members should provide extensive communications about how the change will improve the business and how those improvements will benefit employees. Key elements in effective communications include simplicity, use of examples, multiple forums, repetition, explanation of apparent inconsistencies and two-way communication. The group should model the behavior expected of employees.

5. "Enable action by removing barriers." To empower workers to support change and act on the vision, change leaders should identify and remove obstacles. Four categories of important obstacles are:

• Formal structures that make it difficult for employees to act.
• A lack of needed skills.
• Personnel or information systems.
• Supervisors who discourage actions toward implementing the new vision.

6. "Generate short-term wins." Successful and enduring change takes time, which can be discouraging to employees at all levels of the organization. To maintain urgency, leaders should create conditions that support early successes and visible improvements. The key is to actively search for opportunities to score early achievements and to recognize and reward those who made these accomplishments possible. Good short-term wins have unambiguous results, are visible to many people and are clearly related to the change effort.

7. "Sustain acceleration." Until major changes are embedded in an organization's culture (which could take up to a decade), they remain vulnerable to resistance and regression. It is important to use the early successes as a foundation for larger challenges and to revise all systems, structures and policies that do not fit the change vision. HR can consolidate gains by hiring, promoting and developing employees who can implement the transformation vision. Additionally, the change process can be reinvigorated with new project themes and change agents.

8. "Institute change." The final stage in Kotter's model for successful change is linking the changes to two key components of corporate culture—norms of group behavior and shared values.

Another model for organizational change includes a four-phase change management process:

• Define —Align expectations regarding the scope of the change as well as timing and business impact.
• Plan —Understand how the change will impact stakeholders and design a strategy to help them navigate it.
• Implement —Engage with leaders and associates to execute the change.
• Sustain —Work with leaders and employees to track adoption and drive lasting change.

A large global retailer uses this model to increase the speed and impact of change initiatives while reducing the downturn of performance, thereby achieving desired outcomes quicker. 

There are numerous change models available for employers to consider. For a general overview of different models, see the Confident Change Management website. 

Overcoming Common Obstacles Encountered in Implementing Change

Organizations can have a clear vision for changes and a technically and structurally sound foundation for making changes, but the initiatives can still flounder due to obstacles that arise. Employee resistance and communication breakdown are common obstacles faced during major organizational change. See  How to Avoid Common Mistakes in Change Management .

Employee resistance

Successful change starts with individuals, and failure often occurs because of human nature and reluctance to change. Employees may also lack the specific behavioral traits needed to adapt easily to changing circumstances, which could decrease employee engagement and effectiveness and put organizational productivity at risk. How organizations treat workers during a change initiative determines how successful the change—and the organization—will be.

There are six states of change readiness: indifference, rejection, doubt, neutrality, experimentation and commitment. Organizations about to embark on a transformation should evaluate workforce readiness with assessment instruments and leader self-evaluations to identify the areas in which the most work is needed.

Leaders should have a solid strategy for dealing with change resistance. Some actions to build employee change readiness include:

• Developing and cascading strong senior sponsorship for people-focused work. In the absence of visible sponsorship, leaders should build alliances, meet business needs and promote wins.
• Developing tools and information for front-line supervisors and managers. Organizations should involve them early—train them, prepare them and communicate regularly.
• Coaching employees to help them adapt and thrive during change.
• Rewarding desired behaviors and outcomes with both tangible and intangible rewards.
• Relying on insights from both those in the field and subject-matter experts.

Communication breakdown

Sometimes decisions about major organizational changes are made at the top management level and then trickle down to employees. As a result, why and how the company is changing may be unclear. According to a Robert Half Management Resources survey, poor communication commonly hinders organizational change-management efforts, with 65 percent of managers surveyed indicating that clear and frequent communication is the most important aspect when leading through change.

To avoid this problem, HR should be involved in change planning early to help motivate employees to participate. Effective communication promotes awareness and understanding of why the changes are necessary. Employers should communicate change-related information to employees in multiple forms (e.g., e-mails, meetings, training sessions and press releases) and from multiple sources (e.g., executive management, HR and other departments). See  Why United Airlines' Lottery-Based Bonus Idea Fell Flat .

To avoid communication breakdowns, change leaders and HR professionals should be aware of five change communication methodologies—from those that provide the greatest amount of information to those that provide the least:

• "Spray and pray." Managers shower employees with information, hoping they can sort significant from insignificant. The theory is that more information equates to better communication and decision-making.
• "Tell and sell." Managers communicate a more limited set of messages, starting with key issues, and then sell employees on the wisdom of their approach. Employees are passive receivers, and feedback is not necessary.
• "Underscore and explore." Managers develop a few core messages clearly linked to organizational success, and employees explore implications in a disciplined way. Managers listen for potential misunderstandings and obstacles. This strategy is generally the most effective.
• "Identify and reply." Executives identify and reply to key employee concerns. This strategy emphasizes listening to employees; they set the agenda, while executives respond to rumors and innuendoes.
• "Withhold and uphold." Executives withhold information until necessary; when confronted by rumors, they uphold the party line. Secrecy and control are implicit. The assumption is that employees are not sophisticated enough to grasp the big picture.

Experts estimate that effective communication strategies can double employees' acceptance of change. However, often companies focus solely on tactics such as channels, messages and timing while failing to do a contextual analysis and consider the audience. Some of the specific communication pitfalls and possible remedies for them are the following:

• The wrong messengers are used. Studies have found that employees tend to trust information from managers. Understanding the organization's culture will dictate who is the best messenger for change—the manager, the senior executive team or HR.
• The change is too sudden. Leaders and managers need to prepare employees for change, allow time for the message to sink in and give them an opportunity to provide feedback before a change is initiated.
• Communication is not aligned with business realities. Messages should be honest and include the reasons behind the change and the projected outcomes.
• Communication is too narrow. If the communication focuses too much on detail and technicalities and does not link change to the organization's goals, it will not resonate with employees.

Executive leaders and HR professionals must be great communicators during change. They should roll out a clear, universal, consistent message to everyone in the organization at the same time, even across multiple sites and locations. Managers should then meet both with their teams and one on one with each team member. 

Leaders should explain the change and why it is needed, be truthful about its benefits and challenges, listen and respond to employees' reactions and implications, and then ask for and work to achieve individuals' commitment. See  Keep it Clear: Three Ways to Help Communicate Change in Your Organization and Managing Organizational Communication .

Other obstacles

Employee resistance and communication breakdowns are not the only barriers that stand in the way of successful change efforts. Other common obstacles include:

• Insufficient time devoted to training about the change.
• Staff turnover during the transition.
• Excessive change costs.
• An unrealistic change implementation timeline.
• Insufficient employee participation in voluntary training.
• Software/hardware malfunctions.
• Downturn in the market or the economy.

Change management experts have suggested that unsuccessful change initiatives are often characterized by the following:

• Being too top-down. Executives relate their vision of what the end result of the change initiative should be, but do not give direction or communication on how the managers should make the change happen.
• Being too "big picture." The organization's leaders have a vision of the change but no idea of how that change will affect the individuals who work there.
• Being too linear. Managers work the project plan from start to finish without making even necessary adjustments.
• Being too insular. Most organizations do not seek outside help with change initiatives, but businesses may need objective external input or assistance to accomplish major changes.

Successful change management must be well-planned, well-timed and well-integrated. Other critical success factors include a structured, proactive approach that encompasses communication, a road map for the sponsors of the change, training programs that go along with the overall project and a plan for dealing with resistance. Change leaders need to be active and visible in sponsoring the change, not only at the beginning but also throughout the process. Turning their attention to something else can send employees the wrong message—that leaders are no longer interested.

Managing Varied Types of Major Organizational Change

Organizational change comes in many forms. It may focus on creating new systems and procedures; introducing new technologies; or adding, eliminating or rebranding products and services. Other transformations stem from the appointment of a new leader or major staffing changes. Still other changes, such as downsizing or layoffs, bankruptcy, mergers and acquisitions, or closing a business operation, affect business units or the entire organization. Some changes are internal to the HR function.

In addition to the general framework for managing change, change leaders and HR professionals should also be aware of considerations relating to the particular type of change being made. The subsections below highlight some of the special issues and HR challenges.

Mergers and acquisitions

A merger is generally defined as the joining of two or more organizations under one common ownership and management structure. An acquisition is the process of one corporate entity acquiring control of another by purchase, stock swap or some other method. Nearly two-thirds of all mergers and acquisitions (M&As) fail to achieve their anticipated strategic and financial objectives. This rate of failure is often attributed to HR-related factors, such as incompatible cultures, management styles, poor motivation, loss of key talent, lack of communication, diminished trust and uncertainty of long-term goals.

HR professionals face several challenges during M&As, including the following:

• Attempting to maintain an internal status quo or to effect change—either to facilitate or thwart (in the case of a hostile takeover) a possible merger or acquisition, as instructed by upper management.
• Communicating with employees at every step in the M&A process with appropriate levels of disclosure and secrecy.
• Devising ways to meld the two organizations most effectively, efficiently and humanely for the various stakeholders.
• Dealing with the reality that M&As usually result in layoffs of superfluous employees. This process entails coordinating separation and severance pay issues between the combining organizations.  
• Addressing the ethical dilemmas involved, such as when an HR professional may be required to eliminate his or her own position or that of a co-worker or an HR counterpart in the combined organization.

Successfully implementing a layoff or reduction in force (RIF) is one of the more difficult change initiatives an HR professional may face. Tasks HR professionals will need to undertake include:

• Planning thoroughly. Each step in the process requires careful planning, considering alternatives, selecting employees to be laid off, communicating the layoff decision, handling layoff documentation and dealing with post-layoff considerations.
• Applying diversity concepts. HR should form a diverse team to define layoff criteria and make layoff selections.
• Addressing the needs of the laid-off. This step involves reviewing severance policies, outplacement benefits, unemployment eligibility and reference policies.
• Dealing with the emotional impact. HR professionals should understand and prepare for the emotional impact of layoffs on the downsized employees and their families, on the managers making layoff decisions, on other HR professionals involved, and on remaining employees and managers working with the post-layoff workforce. In some situations, an HR professional may even be responsible for implementing his or her own layoff, a case calling for the utmost in professional behavior.
• Managing the post-layoff workforce.

See  Managing Downsizing by Means of Layoffs .

Filing for a business bankruptcy and successfully emerging from the process is generally a complex and difficult time for all parties. HR may have to cut staff, reduce benefits, change work rules or employ a combination of such actions. A major strategic concern during a Chapter 11 bankruptcy is retaining key personnel.  

Compassion, frequent communication and expeditious decision-making will help reduce the stress an organization's employees are likely to experience during this difficult organizational change. Showing genuine respect for people and treating them with honesty, dignity and fairness—even as difficult decisions are being made about pay, benefits and job reductions—will drive the success or failure of an organization post-bankruptcy. See  Managing Human Resources for a Company in Bankruptcy .

Closing a business operation

Businesses make the difficult decision to close all or part of their operations for many reasons, including economic recession, market decline, bankruptcy, sale, a realignment of operations, downsizing, reorganization, outsourcing or loss of contracts.

HR professionals will play an integral role during such business closures, from developing the plan for the closure through the final stages of shutdown. Some of HR's major responsibilities during this type of organizational change are listed below:

• Following facility-closing notification laws. HR must determine whether and to what extent the business must comply with notification requirements under federal or state laws for mass layoff and facility closings. HR will also lead the announcement process and participate in all aspects of employee communications, which may include all-employee meetings, written announcements and media interviews.
• Announcing the closure news. HR has an important role to play in anticipating and responding to workforce reactions by having as much information and resources on hand as possible. To avoid hostilities or other destructive behavior, HR should consider using an employee assistance program or an outplacement firm.
• Providing employee benefits information. After the shock of the announcement subsides, the most frequently asked questions involve benefits, including unemployment compensation, health care continuation, pension plan issues, and retirement plan distributions and rollovers.
• Coordinating outplacement services. Offering outplacement services for departing employees may enable business owners and managers to provide much-needed support and protect the organization's reputation. If financially feasible, the organization may offer departing employees outplacement services from a private outplacement consulting firm or, in some states, a state agency.
• Negotiating with unions. In unionized facilities, employers have a duty to bargain about the effects of a business closure decision. These negotiations typically involve assistance benefits, seniority issues, pension plan issues and employment opportunities at facilities not affected by the closure.
• Costing the closure. Anticipating the costs of a business closure is critical from an early stage of the process and will fall heavily on HR. This procedure involves assessing the cost of winding down employee benefits, assistance benefits, payroll and administrative costs, severance payments, union demands, unresolved employee claims or charges, security precautions, and any closing notification penalties.
• Disposing of company property. HR should know the organization's policy for disposal of company property and respond to employees' requests for office furniture, equipment, machinery and other tangible business assets. If the business does not sell or transfer assets or is not in debt to creditors, HR may help determine whether to give items to employees, community groups, schools or other potential recipients.
• Complying with legal requirements. Numerous legal issues surround the closing of a business. Depending on the number of employees and the employer's commitments to employee benefits programs, legal compliance may require following closing-notification requirements, sending out COBRA notices and termination letters, issuing final paychecks, making any required severance payments and communicating unemployment compensation. HR must know how to comply with the laws and avoid litigation risks.

Outsourcing

For several reasons, including cost savings and freeing staff to focus on more strategic efforts, an organization may decide to outsource HR or other business functions. Outsourcing is a contractual agreement between an employer and a third-party provider whereby the employer transfers the management of and responsibility for certain organizational functions to the external provider. Many types of outsourcing options are available to employers, from outsourcing one aspect of a single function to outsourcing an entire functional department. This change can have a similar impact on employees as downsizing or closing a department.

When deciding whether to outsource, an organization should carefully consider questions about its needs in a particular functional area, current processes, business plan and outsourcing options, including:

• Does the situation merit outsourcing?
• Is the department providing excellent service with existing staff and processes? Is it meeting the organization's needs?
• Can the affected department handle outsourcing without disrupting operations?
• Will the CEO and top management team support and pay for an outside vendor?
• How might an outsourcing arrangement fall short of expectations? How can such risks be mitigated?

During an HR outsourcing process, HR professionals may be asked to identify solutions to guide organizations through vendor selection and management of the outsourcing relationship. See  Outsourcing the HR Function .

Changes within HR

HR professionals frequently help other parts of the organization respond to change, but what happens when the HR department becomes the epicenter of change? These kinds of transformations, such as moving to a shared services model, integrating with another HR function following a merger or delivering new services to new clients, can be more difficult for HR professionals to manage than other types of organizational changes.

During major changes within the HR function, HR should do the following:

• Lead by example. Do exactly what HR asks other leaders and managers to do during major change initiatives.
• Remember that HR professionals' responsibilities never cease. The HR department must continue to serve employees while contending with the discomfort, confusion and demands that department-specific change creates.
• Keep in mind that few organizational changes occur in isolation. If senior leaders decide to implement an HR shared services model, for instance, the information technology, finance and procurement functions also could move to a similar model or initiating efficiency projects.
• Measure the degree to which HR staff is prepared to change before plunging into the change. HR leaders should assess staff readiness and engagement through interviews and surveys. After evaluating the results, they should make necessary adjustments in staff readiness and engagement levels before proceeding.
• Realize that most HR transformations require fresh, or refreshed, talent. HR leaders can fire and hire, or they can retrain and develop.

Legal Issues

In addition to managing the "people side" of organizational change initiatives, HR professionals should keep leadership informed of any applicable employment laws and the potential legal implications of various types of change. Typically, HR will be responsible, in consultation with legal counsel, for ensuring compliance with pertinent federal, state, local and international employment laws and regulations.

Legal compliance requirements may vary considerably based on the nature of the change initiative, the location(s) and size of the organization, whether the employer is unionized, and other factors. Federal laws that may apply to particular organizational change initiatives include:

• Title VII of the Civil Rights Act of 1964.
• Age Discrimination in Employment Act (ADEA).
• Americans with Disabilities Act (ADA).
• National Labor Relations Act (NLRA).
• Worker Adjustment and Retraining Notification Act (WARN) of 1988.
• Employee Retirement Income Security Act (ERISA).
• Health Insurance Portability and Accountability Act (HIPAA) of 1996.
• Consolidated Omnibus Budget Reconciliation Act (COBRA).  

See  Federal Statutes, Regulations and Guidance .

HR professionals may also be responsible for negotiating contracts with unions, service providers or vendors. In such cases, they need to be familiar with key contract terms and issues and be able to represent the organization's interests effectively in contract negotiations and management.

Global Issues

Significant organizational changes can create ongoing conflict between two locations in the same country. But conflict is more likely to occur, and is harder to address, when differences in language, time zones, institutions and business practices exist. According to research conducted by the Economist Intelligence Unit, companies will continue to become larger and more global, handling operations in more countries than they do today. 4

Culturally based assumptions about customer needs, infrastructure, competitive threats and other factors make it more difficult to find common ground during a cross-cultural change initiative. What differentiates an organization's products or services in one country may not be the same elsewhere, and the strengths that it has in its home market may not be easily replicated in other countries.

Common problems in cross-cultural change initiatives include:

• Lack of a partnership approach. It is natural for an organization to consider its home market and its largest customers when planning change efforts. However, those voices can easily drown out the needs of employees or clients in distant markets, including those that could have high growth potential. By partnering with all employees and clients from the beginning and considering future potential for revenue, profit and growth, an organization can build an approach to change that integrates the patterns of past successes with future directions.  
• Misreading similarities and differences in markets. Multinational organizations might project solutions suitable for one country onto another country or assume that customers abroad want to behave "more like us." To make matters more complicated, foreign products may have considerable appeal in some markets but often for reasons that only make sense in the local context. Companies may expect the same competitive landscape, yet the largest competitive threats may come from companies that are unknown back at headquarters.
• Not enough accountability. Establishing accountability at the local level is difficult when employees lack a sense of ownership for a new initiative. This situation can be exacerbated by the typical matrix organizational structure at many global companies. Employees who report into both a global business unit and a local management structure frequently pay the closest attention to the managers they encounter every day who are most likely to affect their futures.

Leaders of global change initiatives should consider these potential problems and plan to address them in advance. They will be far more likely to avoid change-related pitfalls; achieve their objectives; and build business partnerships characterized by mutual learning and superior business results.

1 Gartner. (2018). Change Management. Retrieved from https://www.gartner.com/en/insights/change-management

2 Willis Towers Watson. (2013, August 29). Only one-quarter of employers are sustaining gains from change management initiatives, Towers Watson survey finds. Retrieved from https://www.towerswatson.com/en/Press/2013/08/Only-One-Quarter-of-Employers-Are-Sustaining-Gains-From-Change-Management

3 Kotter, John. (2014). Accelerate: Building strategic agility for a faster-moving world. Boston, MA: Harvard Business Review Press.

4 Economist Intelligence Unit. (2010). Global firms in 2020: The next decade of change for organisations and workers. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/10-Economist%20Research%20-%20Global%20Firms%20in%202020.pdf

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