Organizational Change Management - Heinz Australia Case Study

This case study analyzes the transformation of corporate culture at Heinz Australia using change management theory and the Cultural Web tool. It identifies strengths and weaknesses of the current organizational culture, major forces for and against change, and provides recommendations for growth and profitability. The key strengths of the new culture include attitude and behavior changes, transparency and openness, loyalty and commitment, and self-learning mode for continuous improvement.

Running Head: ORGANIZATIONAL CHANGE MANAGEMENT 0
R A A A C A MA A MO G NIZ TION L H NGE N GE ENT

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Executive Summary
The corporate culture at Heinz, Australia was full of problems and negativity until the
Widdow did not make it right with the help of his leadership style. He promotes openness,
fairness, transparency and innovation within the organization and employees.
With the use of the culture web tool, the strengths and weakness of the current organizational
culture can be identified. This tool also helps the management to draw various suggestion for
shaping the future culture.
The key major forces, which are for and against the culture of Heinz, Australia, are also being
identified so that management can take the full strength of the tool.
In the last, several recommendations have been made to help the employees, management
and the organization for the growth and profitability.

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Table of Contents
Introduction................................................................................................................................3
Understanding Organisational Culture.......................................................................................3
Cultural Web of Heinz, Australia...............................................................................................4
Paradigm/Core Beliefs /Assumptions....................................................................................6
Major Forces for and against Change........................................................................................7
Key Strengths of the New Culture.............................................................................................8
Recommendations......................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
In this case, the transformation of corporate culture at Heinz Australia needs to be analysed
so that to find out the issue prevailing in the organization. In addition, the reason needs to
find out for that issue with the help of change management theory i.e. Cultural Web (O'Flynn,
2007). Afterward, various recommendations will be established for refining the situation
according to the interest of the stakeholders.
In an organization, culture is a philosophy including various values, beliefs, attitudes and
practices that define the organization. In addition, corporate culture differs from company to
company which includes several behaviour patterns and business practices found in an
organization where management and the employees interact so that to proceed with business
transactions (Wei, et al, 2008). Any successful transitions in an organization are due to the
role of effective change management standards. It is a formal way of communication with
employees and it occurs in many ways i.e. technological changes, strategic change or
leadership change. Therefore, it is necessary to understand organization culture so that
various strategies can be fit with the operation and activities of the organizations.
Understanding Organisational Culture
Culture consists of patterns, knowledge, morals, behaviour acquired and transmitted by
symbols, leads to the differentiation between different groups of society and human groups
(Milne, 2007). It also leads to patterns of information, which help in the exchange of
understanding. Value derived from the culture, which consists of core principles and ideas. In
a company, corporate culture is defined as the behaviour and beliefs, which is determined, by
the various ideologies and practices. In culture, practices are the tangible methods framed
under ethical principles and due to this company implement its value.
Therefore, from the above various definitions, it can be stated that every company is
constituted of unique cultures and framed under a set of beliefs and the values of the
individual working there. In the modern organization and due to the evolution of the culture,
it also defines various actions and activities in the organization which emphasis decision
making, behaviour of people in the organization (Mosley, 2007). It means now and in the near

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future, culture will be the part of intangible reflection, which is not only written in the explicit
rules but also includes the subconscious assumptions and beliefs. This all shape the behaviour
of the organization from which various business activities and operations sustain. The
organization structure is also framed under these aspects of the culture, which includes the
style of leadership i.e. authoritative or participative, one-way or two-way communication,
flexible or adaptive behaviour, simple or complex definitions and the tall or flat structure of
the organization. It also includes the position of competitive strategy in an organization.
Therefore, when someone talks about the organization culture in the market, it can be stated
that it is more than an HR thing which the management needs to integrate with all activities,
procedure and departments of the organization so that to undertand it from all the dimesnions.
Collectively, it will bring significant productivity to the organization.
Cultural Web of Heinz, Australia
In 1992, Gerry Johnson mentioned a tool called Cultural Web, which helps the organization
to know their existing culture. It is an ideal tool which constitutes of the six elements and all
are integrated and linked to form a paradigm called as web core. Cultural Web is the tool that
helps the organization in the auditing of the culture by diagnosing both strengths and
weakness and thus it is similar to the medical check-ups (Graetz and Smith, 2010). For those
individuals, who are keen in managing the change in the organization, this was an
opportunity for them as to unhidden the assumption, values and beliefs readily available on
the surface.
With the help of this, the change managers can able to easily find the bottlenecks on the path
of business activities and along with this, they will also able to get the various supporters and
allies that can be a part of change management. This process and tool will help them in
prioritizing their objectives of change and so managing the change with the most preferable
algorithm and mechanism. This tool can also highlight which of the component of culture is
tangible or intangible. This whole work together will help in framing the competencies of the
organization collectively and will lead to the development and growth of the business (Smith,
2011).

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The culture web value can be identified by analysing the nature and dimension of the culture
with its composite parts. This will help the management to find out to which extent the
change can be possible in the existing culture of the organization (Holt, Armenakis, Feild, and
Harris, 2007). The management of the organization need to understand the procedure of
implementation in a deep manner relating to the culture operating now in the organization or
exists within or with the culture; the company is planning to reach. This will help them in the
process of re-adaption.
Stories
Routines and
Rituals
Symbols
Control
Systems
Organizational
Structure
Power
Structure
The Paradigm/ Web Core

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Paradigm/Core Beliefs /Assumptions
In the central of the culture web paradigm, the real core of the culture persists. This paradigm
includes those parts of the life cycle of the company that are undercover or hidden and cannot
be seen by any individual or it is hard for the management to explain about them (Langley,
2013).
In the Heinz, one of the major problems is the change in attitude and the dominant behaviour.
This also results in the fear that the change will be negligible by the individuals unless and
until these assumption that are hidden and deep seated are not brought to the surface and
challenged.
Even before the Widdow’s change, the paradigm was not positive at Heinz Australia and the
disciplinary of the culture is aligned with the low risks. In the internal environment, the
things were perceived to be very challenging due to the high inward focus. The confidence of
the employee is being filled with the approach of Widdow and this also brings the positive
and transparency in the company.
 Routines and Rituals – Widdow defined the mantra which states that it was a great
place for working. The organization routine behaviour is formed by the various rituals
in which one show respect towards another, give cooperation and assist by giving
support to everyone opinion (Sun, Aryee and Law, 2007).
 Stories – The senior management used the approach of “Walk the talk” in each
behaviour and thus transmit the stories throughout the organization. In a certain
behaviour, where the people need to behave and expect the behaviour of the other
person, Widdow was the leader. He also perceived by every individual including staff
and the top management in the organization as a role model.
 Symbolic Aspects – With the relation of working in a great place, the symbolic
expression of the employees is reflected in the behaviour of employees. In the
organizational environment, they are always ready to face challenges, innovating new
ideas with creativity and thus ready to make sustainable contributions (Anderson,

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Potočnik and Zhou, 2014). The work of the Widow was seemed to be a challenging task
but it can be achieved by constantly communicating with the employees.
 Power Structures – Widow make believe the employees that the organization and the
management are caring for them and he also emphasises on removal of the power
structure. It can be seen through the various initiatives, which lead to the good relation
between the management and the employees like – removing monitoring of staff,
flexibility in the working weeks and options to take Friday as off. This also promotes
mutual trust and understanding between the employer and employee.
 Organizational Structures – Various changes and modification were brought into
the light at Heinz, Australia through the decrease in the salary of staff by 25%,
reformation of the members of the board by making their presence in the middle level
of the board. With this decision, it can be easily analysed that the major source of the
innovative idea was the middle and bottom level employees (Guthrie and Parker, 2014).
The management can also able to change the attitudes of the employees with the help
of this.
 Control System – The reward system is measured by control system. Top
management and Widows give a reward to all the employees and individuals who
came up with their innovative and creative ideas and this can also be seen as a
motivating factor from organization perspectives. This all is for the betterment of the
organization as due to the individual contribution in the form of ideas and actions.
This is a continuous process where all the people are the part of this activity i.e.
finding an innovative way of doing the task and gives recommendations to the
superiors. This situation is very different from the previous scenario where all
individuals are afraid to take any decision or to speak. This shows that there was now
more openness in the positive culture of the business enterprise.
Major Forces for and against Change
The various key forces for and against the change can be identified with the tool of cultural
web in an organization. It can be clearly analysed with the help of all constituted parts of the
paradigm that it forces for or against the change. In the system of organisation change, the
reformation in the organization structure is taken place by accepting suggestion of middle
level people and giving them encouragement to their innovative ideas. As here, the

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receptiveness of the people towards change is increased; the change in the organization
culture can be easily implemented (Chen and Huang, 2009). On the basis of symbolic aspects,
with the change in the behaviour of middle management and showing the positive attitude to
the new ideas, it represents the trust and confidence in the vision of the company and this
behaviour will be shown by the middle level to their subordinate and staff both inside and
outside the organization. The positive environment of attitude and work of the company has
played an important role in the change implementation as per suggestions by Widdows. The
increase in the loyalty for the company can be seen by the diminishing rate of attrition.
Routine and Rituals in one of the most negative aspects of paradigm which includes
depressing and negative working environment, lack of confidence in the top management as
all task requires too many efforts and decrease in the faith and optimism moving out of the
organization. There was also a high degree of autonomy as the ideas and opinions of the
middle management were not valued and included by the top management derived from the
power structure. For the sustainability growth in any organization, one of the major important
factors is innovation (Cetindamar, Phaal and Probert, 2009). However, at Heinz, Australia, the
lack of creativity and innovation was there before the joining of Widdow. This makes the
organization to be dull and dead by slipping it in to the mode of complacency.
Key Strengths of the New Culture
Any change which is happening as a part of change management strategy needs to be aligned
with the company overall strategic objectives. These changes result in the creation of a
positive environment in the company including the openness and trust building and this all
belongs to the basic ingredients of a strong culture (Oke, 2007).
 Attitude and Behaviour Changes – It ensures that the organization should move
from the inbound to the innovation and experimentation. Here, no one should be taken
as granted. The senior management of the organization also sent a clear
communication that they need to change, survive and grow with the aid of efficiency
in operations and employee commitment.
 Transparency and Openness – With the help of a cultural norm, a type of particular
knowledge is transmitted in a particular situation. It can include rules, rewards,
punishment and expectations. The culture at Heinz, Australia was characterised by

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transparency and openness and with the help of this, the positive knowledge is
facilitated to every right person having capability to handle issues in the future (Kang
and Snell, 2009).
 Loyalty and Commitment – The high engagement with the superiors results in the
development of the sense of loyalty, which helps the organization to retain new
learnings and knowledge and also to spread this among various individuals.
Employees find the organization as a great place to work and they achieve the
organization goal before the common goal.
 Self-Learning Mode for Continuous Improvement – The organization try hard to
achieve strategic goals with the help of better learnings from previous mistakes (Alves,
Dinis-Carvalho and Sousa, 2012). This will make them gain the competitive advantage
over the others companies.
Recommendations
 Sustaining the positive as well as Innovative Environment – One of the major
factors needs to be ensured by Heinz, Australia that the negative culture is not to be
brought back into the company so that it will always be the excellent place for the
working. The employees can meet the external market challenges only when they
were given a platform, which is made of a positive atmosphere, openness, creativity
and innovation.
 Avoidance of Complacency – The basic behaviour of the management should always
be lie in the environment of trust and mutual respects as it will lead to the success and
growth of the organization. Even after getting growth and profitability situation, the
company should avoid becoming complacent (Seran and Izvercian, 2014). The reason
for this is because; many researchers found that when the organization gets mature
with the successful growth and profitability, they were attracted to the tendency of
complacency. The staff and employees need to understand and communicate the
vision, mission and strategic goals of the organization.
 Fairness and Transparency – The organization should always achieve their
corporate objectives and ethics by providing fair treatment to their employees. In
response to the control system of the cultural web, the reward and recognition should
be given to the competent employee so that the better performance can be fetched out.
 Lead by Example – Widdow makes many extra efforts for changing the attitudes and
minds of people so that to attain best for everyone and thus increase the corporate

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profitability (Beugelsdijk, 2008). The innovation is facilitated by the flexibility and
Heinz, Australia can be sustained by beings flexible and innovative.

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Conclusion
An organization that is inward focused can never be sustained. The condition was similar at
Heinz, Australia until the Widdow leadership did not come in the light. This transformation
helps the company in its development and sustainability of Heinz, Australia. Widdow
successfully identifies the problems and issue through which the change will be possible. He
also undertakes various steps to change the mind-set and attitudes of people by identifying
the problems lies in the negative paradigm, inward approach and lack of confidence. Widow
promotes openness and flexibility with the help of experimentation and exploration.

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