Rowling Energy: Analyzing Strategic Choices and Changes Report

This report examines the strategic choices and changes implemented at Rowling Energy, focusing on the application of the Balogun and Hope Hailey Change Kaleidoscope model and Johnson's Cultural Web model. The analysis evaluates the impact of these changes, particularly the merger of ...Read More

STRATEGIC
CHOICES AND
CHANGES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1) Application of Balogun and Hope Hailey’s Change Kaleidoscope model to Rowling
Energy.....................................................................................................................................1
2) Application of Johnson’s Cultural Web model to Rowling Energy.................................4
3) Critical evaluation of change process that took place in Rowling Energy........................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business world is reforming and developing on a regular basis. Companies are adopting
effective and different means of working with the aim of enhancing profitability and growth
within the market. Economies are shrinking in terms of organizational reach which has enhanced
competition widely (Borrás and Cristina, 2009). Strategic development of business is the need of
the hour. Strategies may be defined as the process of developing a winning edge within the
market. Companies are focusing on managing employees and developing strategic management
plans to ensure growth and profitability. This helps the business units in developing a
competitive edge within the market (Cascio and Aguinis, 2008).
The present study will focus on developing an in-depth study about different strategies
and measures adopted by Rowling Energy to create a competitive edge within the market. The
case helps in determining the facts and figures regarding employee performance and its impact
on strategic growth. It will also evaluate different strategic measures adopted by two different
leaders and its impact on the organizational culture. The study will also understand the
implementation of different tools and techniques for enhancing internal business operations and
its impact on organisational culture and management.
1) Application of Balogun and Hope Hailey’s Change Kaleidoscope model to Rowling Energy
Change is an integral part of business operations. Business units develop their operations
by creating a wide impact of strategic change on daily business activities. Change generally is
not readily accepted by employees working within the business (Paiva and Vieira, 2011). They
resist change in order to maintain their comfort zone and it even minimize the insecurities
associated with change. Rowling electronics enhanced the business operations through strategic
decisions of merger. This strategy helps the business in expanding the reach of business in two
additional geographic regions. However, merger demands redefining organizational operations
and business activities to stabilise the strategies and policies according to new business to attain
positive results for the company (Hacklin, Battistini and Von Krogh, 2013).
The old CEO of the company adopted some common influential measures to implement
change and redefine organizational policies however, after January 2014 new CEO Jay Jameson
adopted some effective measures to develop organizational growth. Change Kaleidoscope model
provides an audit mechanism for designing and managing change (Anderson, 2009). The stated
1

model considers sensitive factors essential while implementing and adopting change within the
business. The application of the proposed model will help in analysing the factors which are
essential to develop positive impact on employees (Finkelstein, Hambrick and Cannella, 2009).
Illustration 1: Balogun and Hope Hailey’s Change Kaleidoscope model
(Source: Managing strategic change. 2015)
The evaluation of the change model implemented by Jay Jameson could be evaluated on the
following factors: Time: Rowling Energy demanded effective change in January 2014 as employee’s
morale was low and retention rate in the company was low. There were many internal
conflicts which were resulting in low productivity and performance of the company
(Venkatraman and Huettel, 2012). Scope: The scope of change implemented by the new CEO was wide and effective which
resulted in effective results and high efficiency of people (Allison and Kaye, 2011).
2

Change was implemented gradually and positively through developing policies and
procedures. Preservation: The CEO focused on preserving the positive impact of the merger of
Bantam power and Goliath Generation. In order to influence the same and retain skilled
employees in the company, Jameson developed organization culture positively which was
a crucial need and challenging task for the firm (Simsek, Heavey and Veiga, 2010). Diversity: Managing diversity was one of the significant challenges for the company.
Steele did not effectively consider this factor which resulted in loss of potential and
valuable employees however, Jameson keenly analysed the diversity factor and replaced
ineffective employees with better performing people to develop productivity. Capability: Rowling Energy was well equipped with skilled and talented team of
employees with high capacity. In order to influence change efficiently within the
company, Jameson developed leadership to ensure high participation and positive growth
within the company (Andjelic, 2008). Capacity: Merger increased the capacity of the company. CEO appointed talented
employees through external measures and also implemented effective internal
recruitment measures to develop high and effective organizational change. Readiness: Changes were widely accepted and implemented in the company. The process
adopted by Jameson resulted in low resistance to change as compared to that of the
previous CEO. Hence, the change was favourable for the business. Power: The restructuring of the company was not immediate and it was one man process.
CEO focused in delegating well developed means of power and authority to enhance
change. In addition to this, change agents (Line managers, leaders and unions) were well
developed and equipped in ensuring positive impact of the same.
Design choices
Change design was well developed and structured for implementing effective change
within the business. The management approach adopted by Jameson for the same includes: Change path: To implement change within the business, Jameson implemented well
developed measures and strategy. This helped the company in attaining gradual positive
results (Nair and Boulton, 2008). The path adopted by CEO was for long term impact on
the company growth which was attained in 26 months.
3

 Change start point: Jameson analyzed that majority of employees were young and less
experienced and they adopted bottom up approach which resulted the company in
providing positive and effective result for quick acceptance and low resistance by
employees. Change style: This helps the companies in attaining high level of participation and
support from the employees (Droege and Marvel, 2009). As per the given case, Jameson
adopted participative and informal style of change management which helped the
company in gaining wide support of the employees and thus attaining positive results for
the business. Change interventions: This factors focuses on analysing the method of change adopted
by the company to influence the change (Ganesan and et.al., 2009). In order to train and
develop employees within the business, effective training and development measures
were adopted by the business.
 Change roles: Change roles and responsibilities were distributed in an effective and well
planned manner. The organizational structure was developed to create wide impact to
enhance change management roles.
By analysing the stated model, it can be effectively analysed that Jay Jameson the new
CEO of Rowling Energy implemented effective and well planned means of change which
resulted in delivering favourable results for the company.
2) Application of Johnson’s Cultural Web model to Rowling Energy
Organization culture is a significant part of the business. It helps in designing and
developing means of working for the employees. Culture of the company helps in defining the
structure, behaviour, code of conduct and communication system of the company. It is an
influential measure to attain high profitability measures for the business (Paton and McCalman,
2008). The Cultural Web, developed by Gerry Johnson and Kevan Scholes in 1992, provides
approach for looking at, and changing organization's culture. The elements of the model help in
attaining effective reflection of business working and growth as well.
4

Illustration 2: The web culture
(Source: Managing strategic change. 2015)
The given case of Rowling Energy helps in analysing the impact of change management
effectively for the business. The evaluation and analysis of the same is significant to determine
the growth and development prospects for an organization. The impact of culture web for the
company during the tenure of two CEOs can be stated as follows:
Elements Samson Steele Jay Jameson
Routines and
rituals
Until January 2014, the business
activities were done in directive and
in an ineffective manner (Green,
2007). The CEO adopted non
participative manner which spread
fear and non cooperation in
employees.
From March 2014, CEO analysed
negative culture and thus adopted a
participative manner for the same.
Frequent meetings and participative
approach was adopted by Jameson
to enhance productivity and results.
Stories and myths Ineffective shouting and using foul
language with outrageous gestures
Jameson in initial 30 days adopted
highly participative and influential
5

developed negative stories about
Steele. Employees feared in
communicating or discussing issues
with him.
approach for the employees that
helped them in developing trust and
loyalty for the company and
developing positive image for the
manager.
Symbols The manager developed a formal and
restrictive culture within the
organization. Individual office of
CEO and personal lift clearly
represented directive and
authoritative symbol for the
employees which developed power
culture within the company.
Jameson developed high and
effective communication measures
with the employees. He gave access
of private lift to all the employees
that depicted a cooperative and
informal code of conduct as well
(Young, 2006). The strategy of
painting wall for representing ideas
developed creativity and innovation
within the business.
Power structure The distribution of roles and
responsibilities was limited.
Decisions were taken by the top
management and they were
communicated to employees that
represented Steele adopted a
bureaucratic approach by giving
employees least power and flexibility.
Jameson built a participative
leadership style within the
company. The organizational
culture adopted by the business was
role culture where every individual
acted and responded as per the roles
assigned to them. He adopted
informal and organic hierarchy
within the business.
Organisational
structure
The structure of the company was
rigid and non cooperative. The power
was confined to higher level
authorities and employees were not
involved in the decision making
process (Zott, Amit and Massa,
The structure of the company was
flexible and evenly distributed. The
leadership style was participative
and communication system was
strong and deliberate. The level of
hierarchy was well defined and was
6

2011). The organization culture
reflected power culture within the
business.
managed by the leaders and line
manager thus effective
opportunities of growth and
succession was given by the CEO.
Control system Monitoring, controlling and
development were based on the
autocratic basis. Line managers and
leaders directed the employees which
reduced the level of their efficiency
(Businessballs.com, 2015). Moreover,
training programs were limited.
Reward system was designed in a
biased manner where few officials
were rewarded financially and non-
financially without developing any
well structured format.
Jameson adopted participative
approach of management where
control was not rigid and confined.
A team of experienced employees
were given the role to train, coach
and develop employees. This
enhanced the efficiency of
employees. The reward and
recognition was given on the basis
of effective structure and well
developed measures. This helped in
motivating employees for meeting
targets of the company and
developing productivity as well.
3) Critical evaluation of change process that took place in Rowling Energy
Change is a crucial part of the business growth and development within the market. It
focuses on creating an effective brand image of the company by influencing proper means and
measures of working within the market. Change may be enforced or demanded, in both the
situation; success of the company depends on effective evaluation and proper analysis of
business activities (Finkelstein, Hambrick and Cannella, 2009). Balance between implementation
and control is to be critically analysed and evaluated. For the present case, the success and
growth of the company was well determined by high sales prospects and growth measures within
the economy. The change management process implemented by Jameson was effective and
positive. The evaluation of the process will be undertaken by adopting Kotter's 8 step model.
7

Illustration 3: Kotter's 8 step model
(Source: Kotter's 8-Step Change Model. 2016)
 Create urgency: This is the initial and crucial stage of change management. It demands
effective change and new policies for the business. Jameson after joining Rowing Energy
immediately analysed the demand for change by meeting senior team of management and
touring the company (Kotter, 2008). He analysed the demand for high profitability and
growth. High productivity and low cost was attained by business which was a challenging
task. Form powerful coalition: This stage of change focuses on convincing people about
change and its increasing need within the market. The core focus of this stage is to
develop and manage change within the business. Jameson introduced change by
developing a video after speaking to 120 key people of the company. He revealed a need
of quick change in the company. Create vision of change: This stage of change requires effectively analyzing ideas and
effective measure to implement change within a company (Simsek, Heavey and Veiga,
2010). Rowling Energy created and communicated the vision of the company by
8

analysing crucial needs and demands of the employees. Health and safety processes and
needs were developed for the business against the same requirements. Communicate the vision: Communication of changing process is another significant part
of the business growth. Effective and well developed communication helps in effectively
implementing changes by attaining high employee support for the same. This stage also
minimizes the resistance for change within the market. Jameson implemented strategic
change in the company by developing a team of employees who are efficient to coach
and train people. These employees and leaders acted as change and communication agent
for the company. Empower action: This stage demands that the management and leaders should focus on
removing obstacles that are coming in the way of effective growth and profitability of
business. Jameson implemented this stage by analysing major problems and resolving
that issue on the priority basis. The health and safety issues were initially focused upon
by the company for which every suggestion and problem was invited and resolved by the
management. Create quick wins: Here, the demand of the company is to develop high measures of
growth and success to motivate and influence people for developing business (Anderson,
2009). This was effectively handled and managed by the management of Rowling Energy
as the results of the company were positive and employees took active participation in the
change process. Moreover, effective and well managed on the job training and leadership
program helped in developing job security and employee loyalty for the business. In
addition to this, providing access of private lift to employees and painting walls to
express views of the company was an effective and positive measure as well. Build on change: This is a critical stage of change for the business as ineffective control
or lack of path may be created if management consider their victory too early. Jameson
worked effectively for the same and thus regularly worked for the same (Ganesan and
et.al., 2009). Effective and well managed leadership program helped the business units in
infusing change and development efficiently. New recruitment and continuous
development of favourable policies helped the company in enhancing performance of the
organization at this stage of change. It helped the company in increasing productivity,
controlling cost and controlling rate of retention for the company.
9

 Make it stick: The last and final stage of change demands that the process of change and
development must be effectively implemented by the company (Nair and Boulton, 2008).
This stage focuses on ensuring that the employees effectively control organizational
operations to make the change permanent within the company. Jameson used
transformational leadership style for developing people and convincing them to adopt
changes permanently within the business. This widely helped in the growth and
development of the business.
CONCLUSION
The above report reflected an effective need and demand of change for the company.
Case analysis of Rowling Energy was an effective approach for evaluating the implementation of
theoretical approach in actual business situations. The analysis of business operations helped the
company in analysing that the two significant leadership styles was widely different for the
business but effective change management and culture development by Jameson was effective
for the business. Hence, it can be said that strategic choices of change management by Jay
Jameson helped the business unit in developing a unique and effective brand image within the
market by enhancing employee productivity and support thus it brings high success factors for
the company.
10

REFERENCES
Books and Journals
Allison, M. and Kaye, J., 2011. Strategic planning for nonprofit organizations: A practical guide
and workbook. John Wiley & Sons.
Anderson, J.G., 2009. Strategic choices for global energy: Constraints from feedbacks in the
climate system. ChemSusChem. 2(5). pp.369-376.
Andjelic, A., 2008. Transformations in the media industry: Customization and branding as
strategic choices for media firms. Management and innovation in the media industry.
pp.109-129.
Borrás, S. and Cristina, C., 2009. The challenges of globalization: strategic choices for
innovation policy. The Innovation Imperative: National Innovation Strategies in the
Global Economy.
Cascio, W.F. and Aguinis, H., 2008. Research in industrial and organizational psychology from
1963 to 2007: changes, choices, and trends. Journal of Applied Psychology. 93(5).
p.1062.
Droege, S.B. and Marvel, M.R., 2009. Perceived strategic uncertainty and strategy formation in
emerging markets. Journal of Small Business Strategy.20(2). p.43.
Finkelstein, S., Hambrick, D.C. and Cannella, A.A., 2009. Strategic leadership: Theory and
research on executives, top management teams, and boards. Oxford University Press,
USA.
Ganesan, S. and et.al., 2009. Supply chain management and retailer performance: emerging
trends, issues, and implications for research and practice. Journal of Retailing. 85(1). pp.
84-94.
Green, M. 2007. Change management masterclass. London: Kogan Page
Hacklin, F., Battistini, B. and Von Krogh, G., 2013. Strategic choices in converging industries.
MIT Sloan management review. 55(1). pp.65.
Kotter, J. P., 2008. Force for change: How leadership differs from management. Simon and
Schuster.
Nair, A. and Boulton, W.R., 2008. Innovation-oriented operations strategy typology and stage-
based model. International Journal of Operations & Production Management. 28(8).
pp.748-771.
Paiva, E.L. and Vieira, L.M., 2011. Strategic choices and operations strategy: a multiple cases
study. International Journal of Services and Operations Management, 10(2). pp.119-135.
11

Paton, R. A. and McCalman, J., 2008. Change management: A guide to effective
implementation. Sage.
Simsek, Z., Heavey, C. and Veiga, J.J.F., 2010. The impact of CEO core self‐evaluation on the
firm's entrepreneurial orientation. Strategic Management Journal. 31(1). pp.110-119.
Venkatraman, V. and Huettel, S.A., 2012. Strategic control in decision‐making under
uncertainty. European Journal of Neuroscience. 35(7). pp.1075-1082.
Young, C. A., 2006. Soul Power: Culture, Radicalism, and the Making of a U.S. Third World
Left. Duke University Press.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
Businessballs.com, 2015. Change management principles, process, tips and change theory and
models. [Online]. Available through:
<http://www.businessballs.com/changemanagement.htm> [Accessed 24th February 2016].
Managing strategic change. 2015 [Online]. Available through:
<http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Managing%20strategic
%20change.aspx> [Accessed 24th February 2016].
Kotter's 8-Step Change Model. 2016 [Online]. Available through:
<http://www.businessballs.com/changemanagement.htm> [Accessed 24th February 2016].
12