Change Management Strategies at Lakeland Wonders: A Detailed Report

Verified

Added on  2023/04/21

|14
|3409
|321
Report
AI Summary
This report focuses on the change management strategies implemented by the new CEO, Mr. Cheryl, at Lakeland Wonders. It analyzes the reasons behind the organizational changes, the activities required for effective outcomes, and Cheryl's leadership as a change agent. The report delves into relevant change theories such as Lewin's Force Field, evolutionary change, and revolutionary change, linking them to the changes proposed by the CEO. It includes an analysis of the organizational change program, cultural and stakeholder analysis, and recommendations for improvement. The report examines the context of the changes, the type of change pursued, and the strengths and weaknesses of the program, drawing on academic literature to support its arguments. Finally, the report provides recommendations for improving the change management process at Lakeland Wonders.
Document Page
Running Head: MANAGEMENT OF CHANGE
Management of Change
Name of the Student
Name of the University
Author Note
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
1MANAGEMENT OF CHANGE
Executive Summary
The aim of this report is to focus on the case of Lakeland Wonders that is going through a critical
stage with a new CEO Mr. Cheryl. The CEO is implementing strategies of change in the
organization which are hardly being supported by the members of the organization. The report
analyzes the reason behind the change in the organization and what are the activities that needs
to be done for an effective outcome. The analysis of Cheryl as a change leader is also done along
with the management techniques. The various existing change literatures are outlined in the
report and linked with the change the CEO of Lakeland Wonders is proposing.
Document Page
2MANAGEMENT OF CHANGE
Table of Contents
1.Introduction...................................................................................................................................3
2. Discussion....................................................................................................................................3
2.1 Key Concepts/ relevant change theories............................................................................3
Lewin’s Force Field Change Theory........................................................................................4
The Evolutionary Change.........................................................................................................4
The Revolutionary Change.......................................................................................................5
Managing Change.....................................................................................................................5
The psychological concern of Change Theory.........................................................................5
2.2 Organizational Change program of Lakeland....................................................................6
Type of change Cheryl Pursued...............................................................................................7
Analysis of the change.............................................................................................................7
Cultural Analysis......................................................................................................................8
Stakeholder Analysis................................................................................................................9
Leadership and Change Agent Analysis..................................................................................9
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................10
Document Page
3MANAGEMENT OF CHANGE
1.Introduction
The change management is required in every organization because it is the most
important aspect of dealing with the organizational change. The change is mandatory in every
organization because it facilitates business growth, development and increases the ultimate
productivity of the organization. The main purpose off the change management is to
implementing suitable strategies for effectively controlling the organization and controlling the
change (Al-Haddad & Kotnour, 2015). These kind of strategies help an organization to sustain
the change and heightens its ability to adopt the change.
In order to be effective, the change management must consider the adjustments and
replacements of the impacts that might fall on the organization while exercising the change.
There must be a process of planning and communication for managing the change. The present
report will focus on the case of Lakeland Wonders that is going through a critical stage with a
new CEO Mr. Cheryl. The CEO is implementing strategies of change in the organization which
are hardly being supported by the members of the organization. The report will analyze the
reason behind the change in the organization and what are the activities that needs to be done for
an effective outcome. The analysis of Cheryl as a change leader will also be done along with the
management techniques. The various existing change literatures will be outlined in the report and
will be linked with the change the CEO of Lakeland Wonders is proposing.
2. Discussion
2.1 Key Concepts/ relevant change theories
It must be noted that an organization might have various reasons for change and there can
also such situation come where the organization is left with no such option but to change for
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
4MANAGEMENT OF CHANGE
better. The reason behind organizational change might be economic climate change or rising
threat of competition. The understanding of the process and theories relevant to change would
help to know how the organizational changes can be handled in the best possible way. According
to some of the scholars the organizational change is defined as a type of movement of an
organization which is different and away from the current position of the organization (Bondar,
Ruppert & Stjepandić, 2014). The organizational change in a particular form is designed to
increase the efficiency in future. When the organizational change occurs, the managers of the
company must keep the balance in order to improve on the present operations with the
requirements to respond positively to any new and unpredictable events.
Lewin’s Force Field Change Theory
This is a theory that is developed by Kurt Lewin related to organizational change. It is
called the Force Field theory. This theory says that there are a wide variety of forces which arise
from the manner an organization operates. It can be related to the structure of the firm, its
control, its culture which might resist the change. On the other hand, there are also a wide variety
of forces that generate from the changing of task along with environmental aspects that push the
organization to change (Cummings, Bridgman & Brown, 2016). These are the two sets of forces
which are in constant opposition with each other. Hence, the managers or the leaders of the
organization must search for effective ways to reduce the effectiveness of the forces and
facilitate the necessary changes in the organization.
The Evolutionary Change
The evolutionary change is described by then scholars as the incremental, gradual and
narrowly focused change. It is not the sudden or drastic type of change but it is rather a persistent
approach to change for better and improve. The total quality management can be considered as
Document Page
5MANAGEMENT OF CHANGE
an evolutionary change. It is a constantly applied process and shows improvement too over the
long term.
The Revolutionary Change
It has been found that there are some organizations which needs fast change. When there
is sudden ups and downs in the organization, there is no other ways for the organization except
implementing change (Kuipers et al., 2014). This type of change is rapid, broadly focused and
dramatic too. The sudden technological advancement in the industry as well as in the
organization or the sudden climate change can be the reason behind this rapid change.
Managing Change
Change is necessary in any organization and so is the management of that change. The
management process might be difficult, but it must be exercised in order to experience better
outcome. Hence, first of all, the organization must do the assessment of the need to change
through the recognition that a significant problem actually exists. The second task is to identify
the change that needs to be implemented (Lines et al., 2015). It must consider the obstacles too
which might come on its way. The third task is to apply the change in the organizational process
and evaluate whether the change would bring in desired outcomes or not. The last point is to
evaluate the results of the change and compare between the prior situation and the later situation.
The psychological concern of Change Theory
The huge range of change occurring within an organization irrespective of the size of the
organization might leave greater impacts on the employees themselves. The employees might
feel uncomfortable with the change and feel themselves trapped in a diverse and frustrating
situation. The perspective of Lewin addresses this entire process of organizational change
without much pain. Lewin’s three stages of change are considered to be an ideal ad most
Document Page
6MANAGEMENT OF CHANGE
influential models for leading the organizational change. His concept of change revolves around
the idea of freezing, changing and freezing(Verhulst & Lambrechts, 2015). It is a type of triple
play of the modifications of the human attitudes and manages the balance between protecting the
human ego and implementing the change effectively. His theory suggests to unfreeze or release
the way a given strategy has always been approached. The next step asks to change or adopt the
contemporary way of accomplishing the task and lastly the freezing technique asks to lock or
freeze. It asks to lock the new mindset of change in the organizational process. This is an
effective theory of organizational change.
2.2 Organizational Change program of Lakeland
The need for change or the triggers of change can be based on either the internal reasons
or the external reasons within or outside of the firm. As far as internal shifts are concerned,
Cheryl who is the CEO of the company persistently elaborates that the board of directors in the
company have set wrong and aggressive growth targets for the company to be achieved. Cheryl
points out that this high goal cannot be achieved if the situation stays as it is and the operations
stay as they are. Cheryl is a highly active CEO and in the due course of her career she has been a
positive personality. One of the most important aspect of the nature of Cheryl’s character is that
she is a great pursuer of new opportunities and the energy along with enthusiasm she possesses
has helped her to succeed in each step of her career.
As far as the external market is concerned, it has been mentioned that the market’s
middle price segment is the only segment which was projected for huge growths and the
customers of these products were also buying like the Bull’s –Eye at the Big Chain’s. The
Lakeland Wonders is recently an expert in the exclusive toys and those toys which were bought
and sold at the specialty stores. Hence, Cheryl made a point based on the internal and external
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
7MANAGEMENT OF CHANGE
analysis of the Company’s environment. She decided to change certain aspects of the company
in order to achieve some specific objectives.
Type of change Cheryl Pursued
In order to achieve certain objectives, Cheryl planned to get entry in a new type of market
segment of middle-priced toys. She also wanted to outsource the production of this new segment
in far off countries and change from the current designer of Lakeland to the Sampsen Design
which is also award winning. It would subsequently recruit other employees into the Lakeland
Company in order to support the plans made by Cheryl. She wanted the change to be done
immediately and it would have some consolidation with the suppliers too. Thus, Cheryl is
apparently pursuing the reconstructive type of change that does not change the core concepts and
strategies of the Lakeland Wonders but adds some more opportunities that requires new changes
and methods to deliver the expected outcomes. Since, she wants everything to be done as quickly
as possible, this initiative is called a reconstruction.
Analysis of the change
It has been argued that in terms of driving organizational change, “a renewable process
goes typically nowhere until the leaders of the company are promoted to higher or senior levels
of jobs”. Kotter has asserted that it is difficult to judge the case of Lakeland as Cheryl has the
attractive credentials which might support to function as a true leader in bringing the change.
Notably, the modern commercial organizations the strategic change can never be attributed to be
the result of the “revolt of the slaves”. Hence, from the perspective of Smollan (2015), the
actions of Cheryl are right and suitable to lead the organization towards change.
When the aspect of Cheryl trying to implement the change immediately is concerned in a
94 years old company has different suggestions. It has been suggested that the business strategies
Document Page
8MANAGEMENT OF CHANGE
must be designed in the manner of ‘logical incrementalism ‘where the steps of change in the
process is implemented with an incremental effect. Scholars claim that during the change
process, the managers of the organization must prioritize the processes that offer fast and
significant improvement in the organization. The same scholars also suggest that a turnaround
strategy that elaborates the rapid cost reduction and sped of change or the revenue generation.
There are in total seven specific elements of the turnaround strategy:
The Crisis stabilization
Gaining the stakeholder support
financial restructuring
management changes
clarifying the target market
prioritization of the critical improvement areas
Cultural Analysis
In terms of the topic of change in the Lakeland Wonders company, the most significant
literature would be to consider the thoughts of Matos Marques Simoes and Esposito (2014).
These scholars’ claim that there are distinctively two theories regarding the change in the
business. The first theory is the E theory that is founded on the economic value whereas the O
theory is based on the capability of the organization to hold the change. As per the view of
Smollan (2015), the O theory is the soft type of approach where the main objective is to grow the
corporate culture and capability of human through the organizational learning along with the
changing process, reflecting, receiving the feedback and also making further changes. The E
theory on the other hand is the hard approach that takes into account the shareholders’ value as
the only factor for the success of a corporation. In the case of Lakeland Wonders it is anticipated
Document Page
9MANAGEMENT OF CHANGE
that if the CEO Cheryl fails to appreciate the culture of the company that is long standing, might
shake the roots of some employees. Those employees would be severely scared off who have
been working in the company by generation through the rapid change that Cheryl tries to bring.
Here Cheryl seems to be applying the E theory which might take huge toll on the established
culture of the organization.
Stakeholder Analysis
The theory E that Cheryl is probably applying might fundamentally disturb the structure
of the organization. Moreover, the E theory significantly ignores one of the most important
stakeholders: the employees. This is one of the reasons why Cheryl experiences rigidity from the
employees in implementing the change. This is because she has not discussed to the about the
new change that is going to be introduced in the organization neither she has asked for their
consent. She has displayed less concern regarding the viewpoints of the managing director on the
overseas outsourcing matter (Van der Voet, 2014). For a well –established and old company like
Lakeland Wonders such approach is unsuitable. Hence, the way Cheryl is trying to implement
the change needs to be slowed down as it is challenging the current environment.
2.3 Leadership and Change Agent Analysis
The cases of Lakeland Wonders and the leadership technique of Cheryl can be analyzed
and evaluated by many ways. Cheryl can be considered to be appropriate in her approach to
bring change in the organization in order to achieve the objectives. However, the approach she
followed to bring change is not suitable for this organization. She has adopted the E theory
which prioritizes the shareholders the most and runs the organization in the autocratic leadership
style. She might be the CEO of the company but she had acquired the position only six months
ago and a new leader of the company is trying to dictate terms to the older employees of the
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
10MANAGEMENT OF CHANGE
company is not digestible for the organization. Cheryl’s leadership technique is not accepted by
the employees of the company and she is well aware of the fact. In spite of knowing the facts
properly and resolving them, she is constantly hiring new and suitable employees for her plan.
There are many instances in the relevant literature regarding the failure of the leaders due to not
understanding the organizational process and culture properly and addressing them during their
business operations (Verhulst & Lambrechts, 2015).
Recommendation
Hence, in such a situation it is recommended that the Cheryl must change her leadership
and management style and have to be more receptive to the feedbacks from the colleagues. She
will have to work on her communication skills and establish a two –way feedback system so that
the employees do not become hostile towards her and understand the reason behind change in the
organization. The transparency in the flow of information helps to build the relationship stronger.
The feedback system is the most useful approach to know and make others know about specific
concerns. Cheryl needs to start afresh and not from the scratch. She needs to support the 94 years
old enterprise. Hence she will have to change her methods to deal with the operations. She can
also make use of the McKinsey 7 –S model that clearly states the stages of formulating desired
change in the organization along with ensuring that the change actions are conducted properly
addressing the important factors. She must go through the characteristics of participative
leadership and adopt it.
Conclusion
Therefore, from the above discussion, it can be said that change is important in any
organization but at the same time proper management of the change and its subsequent effects on
Document Page
11MANAGEMENT OF CHANGE
the organization and its people also need to be taken seriously. The report provides clearly how a
sudden organizational change can leave impact on the people who have the foundation through
decades. The case of Lakeland Wonders has been properly analyzed addressing the culture, the
people and the shareholders. The leadership style of the CEO has also been examined which is a
key driver of employee motivation and their support. The report has concluded with appropriate
recommendation to the CEO Cheryl that can help her to lead the change properly.
chevron_up_icon
1 out of 14
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]