ORGS: Managing Change Adaptability of Sustainable Business Model

This report provides an in-depth analysis of a world-renowned textile company's transition towards a sustainable business model. It examines the guiding forces behind the change, primarily the environmental impact of the textile industry and growing consumer awareness. The report details the strategies employed, including employee training and incentive programs, and addresses the barriers encountered, such as employee resistance and job security concerns, using Lewin's Force Field Analysis. The implementation of the change is evaluated through the Kubler-Ross model, highlighting the stages of shock, denial, frustration, depression, experiment, decision, and integration. Furthermore, the report assesses the role of the change agent, incorporating Theory E and Theory O perspectives to understand how economic value and organizational capabilities were addressed. Overall, the report offers valuable insights into managing change and adapting to sustainable business practices within a complex organizational context.

Running head: Business Management
ORGS: Managing Change
Adaptability of Sustainable Business Model by the world-renowned textile company

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Table of Contents
Introduction......................................................................................................................................2
What was the guiding force behind the change?.............................................................................3
What strategies were employed?.....................................................................................................4
What barriers to change were encountered? How were the barriers dealt with?.............................5
How well was the change implemented?.........................................................................................7
Examine and assess the change agent’s role? (Theory E and Theory O)........................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
It was a great and interesting experience to work with the world-renowned textile industry and to
observe the change while working for them. The company in which I worked for was changed to
become the more diversified and sustainable business concern from a completely traditional
textile business. Many employees, including the top managers in the company, were more aware
of the technology taking roles of the employees and causing unemployment. However, most
were not aware of business becoming greener and more valuable for the society so, at first many
were a bit reluctant to accept this change and to become more environmentalist as they confused
with unemployment. They were also angry and frustrated to see a change in management and
processes. Although the company had the policy of rewarding greener employees, it was never a
compulsion for the company to fire those people who were not environmentalists.
As soon as people started getting training related to sustainability and to adopting sustainable
practices, water conservation and other training related to sustainable textiles, they started being
more flexible in their approach. They began to accept the changing management structure.
Eventually, after the gap of a one or so after the sustainable breakthrough within the organisation
people ended up accepting the new beginnings within the organisation as company unit had the
ambition to be the best when it came to be the most sustainable company in this world. I
observed the Kubler Ross model applied during this changing process.
By Theory E and Theory O postulates, the stakeholders and shareholders understood the need
of the system, which could address the economic value and organisational capabilities in a
diligent way. Consultants were hired in the factory who gave experts advises the management

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team to adopt sustainable business practices in the company from its manufacturing to retail
level. An incentive system was reinforced to bring a value-added change in the company.
What was the guiding force behind the change?
There is a significant effect of the textile industry on the environment. The raw materials that the
textile firms use to produce fabrics require a huge quantity of water. Again, in order to protect
the plants producing the raw materials like cotton, herbicides and pesticides are used which are
highly dangerous for the environment. Another row material that the textile company needs to
use is Manufacturing rayon (Chyan, 2018). It is an alternative fabric that is made of wood pulp,
and by reckless use of this raw material, a significant loss of several old-growth forests have
been increasing. In addition, several harmful chemicals are used in order to treat those pulps
which are released into the environment, causing a severe effect on it. In the other hand, the
synthetic fabrics like polyester and nylon, nylon and polyester are responsible for creating
greenhouse gasses that are severely harmful to the air that people breathe along with that, those
materials are not at all biodegradable (Chyan, 2018). However, these environmental effects can
affect the reputation of this textile company. In order to address sustainable business growth, it is
highly necessary to minimise the environmental effects caused by this textile company. The
growing concern among people for the environment might not accept that huge environmental
effect caused by the textile organisations (Toprak & Anis, 2017). This may affect the company
reputation in the market. Therefore, taking initiatives in order to mitigate those effects is
essential for both the growth of the company as well as the growth of the individual employees.
Sustainable actives are commercially profitable for a company. As per the organisational growth
and benefits is concerned in the long run, it carries great importance.

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What strategies were employed?
In spite of the positive effect of sustainable activities, there were several employees in the
organisation, who could not understand its significance. They found it unnecessary to them, and
that led to the lack of employee participation in this regard. However, it should be mentioned
here that the company has taken a smart and needful strategy to convince or motivate their
unwilling employees (Bocken et al., 2014). In this regard, if the company wanted, it could easily
fire those employees who were not willing to participate in those sustainable activities,
introduced by the company. Instead of doing this company strategised to motivate the employees
by rewarding the employees who were cooperating management to make that organisational
change. This strategy proved to be highly beneficial, resulting in gradual growth in employee
participation in this regard. Another important strategy that the company took is to provide
training to the employees regarding sustainability and how to adopt sustainable practices in an
organisation (Bocken et al., 2014). After being trained gradually, the unwilling employees began
to more flexible towards the organisational change. It is undeniable to mention that the company
truly succeeded in making the employees understand the importance of sustainable activities for
both the sake of organisational purpose as well as for the individuals.

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What barriers to change were encountered? How were the barriers dealt with?
Force Field Analysis
Figure 1: Model of Lewin’s Force Field Analysis
(Source: Berthaume et al., 2014)
Plan: The importance of developing a sustainable business environment is to ensure that the
business in commercially profitable. Environmental friendly products attract the attention of the
consumers with a unique value proposition to the business. The success of the business into the
future is also achieved through sustainable business models. The resources used in sustainable
business models are also available for the perceivable future and ensures the long-term running
of the enterprise. It is possible to provide the return of business to the environment and help in
the replenishment of the resources within the environment.
Forces of Change: The growing consciousness of the consumers in the textile and fashion
industry about environmental sustainability requires a business value. This provides customers
with the ability to obtain better and unique products that align with their values. Improvement of

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the supply chain and distribution network can be obtained by experimenting with different
sustainable materials with new suppliers (Berthaume et al., 2014). Increasing competition in the
market also induces the companies to bring about changes within its business model. The textile
industry in Canada is highly competitive in nature increases the pressure on the organisation to
bring about the value in its business models to maintain future sustainability. The downstream
processes affect the environment and disrupt the CSR values of the company in the end. In the
context of the organisation, the environmental impacts of waste management, fabric selection,
water and energy consumption are harmful to the environment. The creation of product demand
in the market would be easier with the implementation of the change in the business model. This
way, the company can increase the output volume of its products and services within the
Canadian market. Long term cost reduction with the implementation of energy saving
equipment and settings within the organisation.
Forces against Change: Some of the driving changes for the implementation of the sustainable
business model in clued the increasing cost of production after the e implementation of the new
system. I addition to this, the company would face the loss of production time with the training
and development programs adopted by the company (Berthaume et al., 2014). The staff
resistance towards the change implementation is also an inhibiting factor for the company. In
the case of the company, there was a sudden uncertainty among the workforce regarding the
loss of jobs post implementation of the business model (Cania, 2014). This would influence
employee morale within the organisation and ultimately lead to staff dissatisfaction. There
might also be a possible change in the organisation structure among the middle managers post
the implementation of the sustainable business model.

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Strategies: Emphasis of the cost-saving strategies in communication channels could be
implemented to mitigate the cost burden. The moral of the staffs could be increased with the
increasing incentive structure and creating a supportive environment for all the employees would
ensure change management (Cania, 2014). In order to cover the risks of sustainable business
model, the engagement of the downstream staff members could be initiated. In order to support
the sustainability of the business model, the equipment and the systems need to be put in place.
The enrolment of the participative leadership approaches to ensure the engagement of the
stakeholders.
How well was the change implemented?
Kubler-Ross Model
Figure 2: Diagrammatic representation of the Kubler-Ross Model
(Source: Cameron & Green, 2015)

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Shock: In this phase, the initial reaction of the employees is expressed, immediately after the
announcement of the change within the organisation. The expression of the emotion is through
shock or surprise. The expression of the initial shock is generally short-lived and sharply lowers
the productivity within the organisation (Cameron & Green, 2015). This was seen in the case of
the employees when the environmentally sustainable business model implementation was
announced in the company. This was mainly due to the lack of proper information, fear of
unknowns and fear of loss of competency in the workforce. In this regard, creative alignment of
the employee perceptions could be introduced within the organisation.
Denial: In this phase of the change implantation, the employees are in disbelief of the news and
start looking for instances to deny the truth of the situation. It is common in an unfamiliar
situation that brings about massive changes to convince their minds to sway from the situation
and facing the truth. It is essential for the senior executives to maximise the communication
strategies to ensure the engagement of the employees (Ganiron Jr, 2015). The transfer of the
information regarding the forward planning of the processes within the business change needs to
be provided to the employees.
Frustration: The frustration among the employees regarding the different environment,
including the outrage and outbursts of anger within the workforce is common (Cameron &
Green, 2015). Anger and frustration is a way of avoiding confrontation with the problem and
blaming someone else for the problems that lie ahead. The managers need to work to improve
the suspicion, scepticism and frustration towards the uncertainty within the organisation.
Depression: In the depressive stage, the employees have expressed their disagreement, lack of
energy that directly influences organisational productivity. The managers would be engaging the
employee workforce towards elevated motivation levels to ensure that the performance is

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maintained (Cameron & Green, 2015). The managers can fixate on the smaller issues within the
organisation and help them to recover from the target barriers within the organisation (Ganiron
Jr, 2015). The implementation of the incentive structures can be used to motivate and encourage
the employees within the organisation.
Experiment: In this stage, the employees are experimenting with the new changes in the
organisation implemented by the senior executives. In this case, the development of employee
capability is effective (Cameron & Green, 2015). The capabilities can be implemented by
training and workforces to evaluate the effectiveness of the change implementation.
Decision: In the decision stage, the employees learn to develop their skills and work in the new
situation by feeling positive about the changes. The resistance has evaporated in this stage, and
the collaborative environment has returned in the organisation (Ganiron Jr, 2015). The
engagement of the decision-making would ensure the trust of the stakeholders within the
organisation.
Integration: The integration of the changes has improved the working efficiency within the
organisation. The renewed strategies improve productivity and the adjustment to the new
changes. The knowledge sharing improves the integration of the change within the organisation
for longer periods.
Examine and assess the change agent’s role? (Theory E and Theory O)
Considering the scenario, it can be identified that the employees of the textile company were
moderately satisfied with the norms and policies laid down by the management. In fact, it has
been noticed that most of the middle managers were well aware of technological implications,
and some were not. Rather, most of them were ignorant about the benefits of being greener and

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getting an opportunity of being recognised in the society. Besides, others were indisposed to
agree with the concept of sustainability and the greener concept. According to these existing
practices examined in the textile company, it seems to be relied upon implementation of the E
Theory, in providing the stakeholders with the economic incentives for motivating the
employees. Additionally, it has also focused on the participation of external consultants as well.
Further, it seems to be observed that the company has adopted some of the implications of
Theory O stressing upon improving the employee capabilities through the learning process by
introducing training programs for creating sustainable practices through water conservation and
other training relevant to textile business. Theories can be better understood with the help of the
below diagram:-
Figure 3: Theory E and O for organisational change
(Source: Vaara, Sonenshein & Boje, 2016)

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Theory E is considered to be the hard approach of change emphasising on economic value,
hierarchical, focussing on restructuring an organisation through a change in planning and
programming (Vaara, Sonenshein & Boje, 2016). In addition, it also focuses on financial
incentive facilities to the employees and hiring consultants for guiding expert solution to the
management team. On the other hand, Theory O is the initiative taken by an organisation with a
soft approach involving the stakeholders actively to coordinate with the management accepting
the organisation culture for driving dramatic change in the system (Al-Haddad & Kotnour,
2015). The relevant theories applied by the management of the textile company indicate that the
company has a wider scope of flourishing in business or it can face some challenges while
carrying out suitable theoretical practices.
The change assessment can be examined by estimating the future risks and potential barriers that
can possibly impact on the textile business of the mentioned company in the case scenario.
Positive and Negative Impact of Theory E: From the scenario studied above, it can be
measured that Theory E seems to be beneficial to some extent in the case of stakeholders'
motivation and recognition. The motivation of employees can increase the efficiency of work for
an organisation (Salas et al., 2017). It can be assumed that the employees of the textile company
would be encouraged if the company continue to attempt an E theoretical concept for business
sustainability. On the other hand, it also has some negative impact; if the management sticks to
this theory for a long time, then the textile company might have painful remedies left for its
associated internal stakeholders in terms of cost of production and excessive economic incentive
benefits.
Positive and Negative impact of Theory O for the Textile Company: According to the
situation understood from the scenario, Theory O seems to be suitable for the stakeholders for

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learning provision through training facilities conducted by the management. The process of
learning and feedback analysis helps in controlling and managing the workforce effectively
(Simsek, Fox & Heavey, 2015). Relevant to this theoretical concept, it can be understood that the
organisational decision taken for providing the staffs with training advantage would be beneficial
for future growth in learning sustainable practices proficiently. However, it can have a negative
impact if the employees fail to understand the new concept of change appropriately. If the
management of the textile company avoids risk assessments and the weaknesses between the
employees, then it would be difficult to maintain employee behaviour, attitudes and
commitments towards change management process. Hence, it can be suggested here that, if the
textile company can adopt switching capacity in merging both the theories, as per the situation of
the business then it would be advantageous for stabilising the business with sustainability in
future. In other words, if the textile company combines hard and soft approaches together, it can
manage profitability and productivity and gain a sustainable competitive advantage in the
business.
Conclusion
Implementation of the change brought about the resistance from the employees, which initially
disrupted the organisational performance. The approach adopted by the executives to implement
the sustainable business model within the enterprise was initially by adopting Theory E by
incorporating the incentives systems and using external experts for managing the conditions.
However, the understandings provided by Theory O would increase the profitability of the textile
business.

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References
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for successful change. Journal of Organizational Change Management, 28(2), 234-262.
Berthaume, A. L., Romoser, M. R., Collura, J., & Ni, D. (2014). Towards a social psychology-
based microscopic model of driver behavior and decision-making: Modifying Lewin's
field theory. Procedia Computer Science, 32, 816-821.
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
develop a sustainable business model archetypes. Journal of cleaner production, 65, 42-
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Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to
the models, tools and techniques of organisational change. Kogan Page Publishers.
Cania, L. (2014). The impact of strategic human resource management on organisational
performance. Economia. Seria Management, 17(2), 373-383.
Chyan, A. (2018). 'Fast Fashion': environmental impacts and what you can do as a consumer.
Retrieved from https://globalnews.ca/news/4774400/fast-fashion-environmental-impacts-
tips-consumers/
Ganiron Jr, T. U. (2015). Towards model integrations of tools and techniques for project
management success. International Journal of u-and e-Service, Science and
Technology, 8(7), 49-62.

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Salas, E., Prince, C., Baker, D. P., & Shrestha, L. (2017). Situation awareness in team
performance: Implications for measurement and training. In Situational Awareness (pp.
63-76). Routledge.
Simsek, Z., Fox, B. C., & Heavey, C. (2015). "What's past is prologue" A framework, review,
and future directions for organisational research on imprinting. Journal of
Management, 41(1), 288-317.
Toprak, T., & Anis, P. (2017). Textile industry environmental effects and approaching cleaner
production and sustainability: an overview. J Textile Eng Fashion Technol, 2, 1-16.
Vaara, E., Sonenshein, S., & Boje, D. (2016). Narratives as sources of stability and change in
organisations: approaches and directions for future research. Academy of Management
Annals, 10(1), 495-560.

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