Strategic Change and Restructuring: A Case Study of Hewlett Packard

This report provides a comprehensive analysis of Hewlett Packard's (HP) strategic change and restructuring initiatives. It examines the company's decision to implement significant job cuts as part of a restructuring plan, focusing on the context, drivers, and impact of these changes. The report delves into the literature review, identifying a specific strategic change and restructuring occurred in the HP, previous strategic frameworks that were unsuccessful, and various change management models and theories, including Kurt Lewin's change model, the Dunphy and Stace Framework, and Kotter's 8-Step Process. The main body of the report includes a stakeholder analysis, assessing the impact of the restructuring on various groups. It offers recommendations for managing the change effectively. The report emphasizes HP's adoption of restructuring plans to minimize costs and focus on growth areas like 3-D printing. The analysis uses change management theories to understand the restructuring's impact and suggest strategies for successful implementation, aiming to improve HP's financial performance and market position.

Strategic Change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Identifying a specific strategic change and restructuring occurred in the HP........................1
Strategic Change 5000 Job Cuts as part of restructuring plan................................................2
Previous strategic framework or model that company adopted but did not work for them.. .2
Change management models or theories................................................................................2
Kurt lewis change model........................................................................................................2
Dunphy and Stace Framework for Corporate Change...........................................................3
Kotter’s 8 Step Process for Change Management..................................................................4
MAIN BODY...................................................................................................................................5
STAKE HOLDER'S ANALYSIS....................................................................................................7
4. Overview of stakeholders...................................................................................................7
RECOMMENDATION...................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hewlett Packard (HP) is an American multinational information technology company
which is situated in Palo Alto. California. HP provides a wide range of hardware components as
well as software services to customers or to small and medium sized businesses. HP has been
found in one car garage in Palo Alto by Bill Hewlett and David Packard and initially produced a
line of electronic test equipment. HP is one of the leading PC manufacturer companies. Further,
report will be discussing company’s restructuring process by applying several change
management theories and concepts. Further, the cited company introduces about their new
restructuring plan that is HP cut out 5000 jobs that is to be implemented through fiscal year
2019. Overall, study helps to re control the matter of fact and also leads in achieving the goals
and maintain reputation of selected company. The main purpose of a project is to accomplish the
targeted objectives or goals. The main purpose behind restructuring process is to minimize the
cost and be more focused on future growth areas such as 3-D printing. The restructuring plan
followed by 2015 splited Hewlett – Packard into Hewlett Packard enterprise which is also known
as HP Inc.
LITERATURE REVIEW
Identifying a specific strategic change and restructuring occurred in the HP
Strategic change is the happeningwhen company undertakes all changes in order to get
the same more innovative work culture. Organisational changes will increase transparency for
these business functions that relates to the company as a strategic roadmap, sharpening and
executive team that focus on customer facing businesses (Al-Haddad, and Kotnour, 2015). HP
will define new creative generation of technologies and software. New strategic change helps
company to reinvent financial resources and flexibility to adapt quick market as well as customer
needs and wants. From the past years, HP has adopted many strategic changes in their business
practices as given below:
Highlights
 HP has built up a new leading position in servers, storage and new networking that leads
in systems growth.
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 HP has also been increasing personal system and printing company with a strong
roadmap in order to introduce new technologies and new computer experiences (Alvarez,
Afuah and Gibson, 2018).
Strategic management change is about how the firm is proceeding in a present and when
the current way is not adequate to the changes anymore. It involves new ways of thinking and
acting to enable an organisation to take advantages of opportunities to address company’s issues.
Strategic change management of HP is also concerned with the change of transformation.
Strategic Change 5000 Job Cuts as part of restructuring plan
In October 2016, HP's board has been approved this plan of restructuring through fiscal
year 2019. In this, it has been expected that company will be laying off 4000 jobs so that they
can focus on innovation (Burke, 2017). On October 31st, the current status of employees was
49,000. Hewlett Packard Enterprise Co is planning to cut around 10 percent of its staff or at least
5000 workers. Thus, to implement the plan of laying off employess from HP affected the
different learning styles and management objectives. This fresh structuring process and new
restricting planning herlps in following the leading approach.
Previous strategic framework or model that company adopted but did not work for them
There are many restructuring implemented strategies that company applied in their
business practices. B y applying this plan company focus on profits in business.
Change management models or theories
Kurt lewins change model
Kurt Lewin formed a change model which consists of three steps to resist changes and
innovative strategies to get developed (Cameron and Green, 2015). Unfreezing, changing and
refreezing. This overall change model helps to create the perception that a change is needed. In
order to move towards new desired process.
Unfreezing
In this first process, company needs to analyse the environment and leading new sources
development goals. Such as HP conducted an internal review process in order to analyse the
causes of failure ERP project. After the evaluation process, it has been found that major problem
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did not relate the problem. The major reason to implement new changes is to focusing on the
consumer faces hardware business, including sales of PCs and printers (Hayes, 2018). Due to
facing lack customer dissatisfaction HP decided to restructure the new plan that includes laying
off 5000 employees. Before implementing the plan, company needs to communicate with
employees to adopt new changes and implement goals.
Changing
It is a critical stage where all changes are implemented within company’s structure. This
phase is also known as move stage in which plan has been executed in a proper manner. It gives
ripple effect within company’s structure process (Nilsen, 2015). In order to start the process of
cutting of jobs or employment has to be communicated with the company employees.
Refreezing
This stage refreezes the changes and identify weather changes has affected positively or
negatively on the company structure. It is necessary to make proper arrangement and carry out
interim evaluations or monitor the project plan to make sure their success. HP is also needed to
revise plan to get the satisfaction level.
Dunphy and Stace Framework for Corporate Change
Defining the scale of change
Type 1: Fine Tuning: Structure change which is ongoing within the ongoing process, it has been
set by Fit or match with the current structure people and process (Nilsen, 2015).
Type 2: Incremental Adjustment is another scale of change which is characterized by
incremental adjustment to the changing environment. That HP needs to follow plan In order to
ensure the success.
Type 3: Modular Transformation: It is another style of change which is measured by
realignment of one of more departments/divisions. This style focuses on sub parts rather than the
whole.
Type 4: Corporate Transformation. This style reflects that, this style of manageable helps to
make corporate change that helps in focusing on the innovations, customer better services etc
(Nilsen, 2015).
4 styles of change Leadership
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Collaborative Style: This approach helps HP to attract a large involvement of employees
towards the implementation of restructuring plan. This helps in making effective decision
making approach.
Consultative Style: This style helps to consult HP employees before implementing new changes
in management by knowing them about the scope of change.
Directive Style: This style of leadership helps to get less involvement of employees in decision
making process. In this context, leader itself taking authority to decide what is needed to do or
what is not.
Coercive style : This is the another leadership style to implement HP new structuring plan in
which leadership exercises coercion or force for implementing organisational change.
Kotter’s 8 Step Process for Change Management
Step 1: Create Urgency
HP needs to clear the idea of new changes that helps them to make aware of an existing
problem and needs to take new change in the structure. After observing lack of customer
satisfaction, innovation in software's, hen company decided to reduce employees and plan
restructuring process.
Step 2: Form a Powerful Coalition
It is necessary to form a powerful coalition to lead the effective management change. HP
needs to make effective change implementation process to take the better effective growth.
Coalition helps to make HP reach skills and range of experience to get the good result target.
Step 3: Create a vision for change
A change management tool helps to recollect a change which is likely to be very
complicated in order to implement the alteration. Overall, HP needs to make sure vision for
change in order to implement the new level of effective performance.
Step 4: Communication vision
Creating vision needs to be communicated to all employees, also it helps to re control the
proper changing management goals. This style of managing provides excellent opportunity to
utilise the coalition (Sharkey and McArthur, 2014).
Step 5: Remove Obstacles
While implementing the plan, HP needs to remove all hurdles or issues that they might be
facing during the implementation process.
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Step 6: Create short term wins
In order to implement changes, and get success in the implementation plan. HP needs to
make short term goals to achieve long term effects.
Step 7: Consolidating Gains
Achieve continues improvement by analysing the success stories, this helps in improving
employee productivity.
Step 8: Anchoring Change in the corporate culture
In this step they needs to discus success stories related to change with employees.
Mentioning change is the integral part of company success.
MAIN BODY
Change management
Change management is the process or technique that is used by company to manage
change in order to achieve required business outcome (Markwardt, Lopez and DeVol, 2016).
This process incorporates tools of organisation that are used in order to help individuals in
making personal transactions successfully by resulting in adoption and realization of change.
These theories help in organization’s movement from current to desired future state. Change
management mainly focused on changes that impact people.
Restructuring plan of HP
Thus, HP adopts Restructuring Plan of laying off 5000 employees. Restructuring plan is a
corporate management term for act of arranging legal, ownership, operational and other
structures of a company in order to make it more profitable (Sharkey and McArthur, 2014).
Company also follows this plan in order to respond to major change that affects business such as
bankruptcy, repositioning or buy out. Thus, risk involved in such plan hire legal and financial
advisories that helps in assisting details regarding transactions and negotiations.
The restructuring plan of Hewlett-Packard includes expectation of 4500 to 5000
employees leaving company. Thus, when Hewlett-Packard split up their focus was on consumer
that were running hardware business that includes PC and Printers. This raised one-time expense
anticipations that is related increase in lay-off target. This company launched various models of
PC in market lines of EliteBook, Spectre and pavilion Wave in last years. They plan this change
in order to enable competitive and sustainable cost structure for new company. HP was on the
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top position in worldwide PC shipments with 22.6% market share. Restructuring plan is adopted
in order to improve value creation and profit growth. Several resource implications would have
harm HP if they didn't responded to change.
Requirement of a plan
HP required lay-offs because of rapid change in technological market. As there is an
entry of new technology, they have to restructure labour force to low cost locations. In this plan,
they will break companies into two separate firms. One is focusing on service of enterprise and
one is dedicated to legacy hardware business. This will impact on workers of HP enterprise
services, business and technology service unit. Since cited company is trying to reset procedures
of sales and stabilize profits through restructuring initiatives.
Change Management Efforts
HP has adopted change management strategy in order to focus on innovation of products,
its differentiation, activities of pricing, marketing and sales in order to encourage demand for its
products (Cohen and Feigenbaum, 2014). It has launched and used various techniques to attract
various customers towards product. This efforts made by company pulled it up by displacing
Lenovo into market segments.
Thus, efforts of company in terms of change management theory regarding revamp of
printing business have also been successfully appreciable. With the help of change management
theories, they strengthen accountability and empower account executives and their main focus is
to optimise cost structure. They are fortifying its 3D printing business applicabilities that will
target all types of customers. HP lags behind in 3D system since it has been operating in this
sector from 5 years.
Strengths of restructuring plan
The positive aspect of lay-offs is that it focuses in helping to achieve cost structure and
also helps in expanding profit margin (Missonier and Loufrani-Fedida, 2014). This plan of
restructuring plays an important role as it takes business to the next phase of journey. According
to the manager of HP, company would return to profit. The separated company focus on
competitive sharpness and helps in achieving right capital structure. HP expects that it will save
around 2.7 billion a year. Furthermore, it also expected to grow shares of workers that are
employed overseas from 60 percent by 2018 and has become 42 percent in recent times. With
help of these plan, company now implements plan to subject a total of $700 million pre-taxes
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charges related to retrenchment and with these cut offs company seems to have an improved
margin.
Weaknesses of restructuring plan adopted
There are many consequences of layoffs that include innovation and intellectual property
loss, weakening of business relationships, reduced trust among employees and it might cause
huge turnover of important talented employee of a company. Thus, it also includes one of the
most important consequences that includes that if lay-off plan is structured it creates anger in the
employees mind which may later result in staining the brand of a cited company. They may post
nasty reviews regarding to stories that leads to long lasting harm for a selected company. Thus,
employees must have knowledge of avoiding such situations, but they lack because layoff plan
makes them feel betrayed and insulted.
Thus, to overcome such situations of both achieving right results and protecting
reputation they have to make a proper plan as follows-
Think through the plan- Before taking such action, HP has to go through whole plan like
number of employees for layoff, sharing of message, place and process to conduct layoff and
resources that are offered by them.
Communicate with compassion- HP must communicate with compassion regarding the
process in order to provide training to them those who are involved in this process.
Offering of a unique support- HP must support employees who are exiting with lower
cost services and have ability of finding new job opportunities. They must also support them
with various other services like resume writing, career coaching or financial planning.
STAKEHOLDER'S ANALYSIS
4. Overview of stakeholders
There are several systems to involve stakeholders in the process of alteration because
they are affected by change made in HP (Missonier and Loufrani-Fedida, 2014). Thus,
stakeholder analysis provides detailed information about requirements of them. It is a process in
which system and potential changes are assessed as they are related to stakeholders. Suppliers- Restructuring plan adopted by HP may affect suppliers of business so the cited
company has to consider those effects involved in harming suppliers.
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 Investors- It becomes important for selected company to involve investors while taking
decisions regarding change decision and integrate thought of stakeholders. Employees- Restructuring of a plan greatly affects employees of HP. So, company must
consider suggestion from workers regarding change process because they are the one who
are going to implement it. Customers- Customers are integral part in organisation, so company has to focus on
customers so that it may not affect them. It becomes necessary for HP to involve
stakeholders in the change process. Society and Government- Society and government, both are equally and majorly affected
by change made in company. Thus, company has to consider both and accordingly, start
planning process.
 Creditors- Creditors have complete information about company's routine as they are the
one who get affected extremely by losses. So, it is mandatory to involve creditors in
change process of a company.
Systems to involve stakeholders in planning Communication/consultation strategy- Communication is the best source in order to
start change process (Harrison, Freeman and Abreu, 2015). Effective communication
helps in solving half problems regarding change. This can be done with the help of
meetings, group discussions, mails, presentation and personal interviews. If they are
communicated effectively then they will show positive attitude towards restructuring plan
and feel as involved in it. Group meeting and team building- HP must select group of stakeholders from different
operational departments so that they would get confidence for working in a team and
accept the plan. Coaching and mentoring- Stakeholders have to be trained well by creating a positive
image of restructuring plan so that they will accept and get involved in it easily.
 Delegation of responsibilities- Stakeholders have to be involved in the activities
performed in planning process. This will help them in accepting the change and work
actively on various activities.
Change management strategy with stakeholders
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 Leverage strategy- This strategy is mainly used for those who are interested in planning
process and for those who easily accept alteration. These types of stakeholders will
motivate others in terms of modification. Engagement strategy- This is used for them who are part of unwilling majority. This will
help HP to make them adopt plan and commit others in this. Containment strategy- it is used against restructuring plan of HP, but being capable, they
are contributors of this process.
 Outplacement strategy- This is used mainly for them who are not at all ready for such
plan. Thus, HP provides them various opportunities so that they will accept this process.
RECOMMENDATIONS
It has been recommended to company to make sure the effective changes in business
objectives. Overall, also HP needs to evaluate the change strategies in order to measure success
of the company. Applying restructuring change by removing jobs ratio would help to reconcile
new management change. Company also needs to evaluate institution success or needful growth
area in the management process. They also need to move forward in an innovative way to ensure
the productive environment task. To ensure proper implementation process goals. It requires to
take right change agents, make the change desirable, make the change relevant, communicate the
change on all levels.
CONCLUSION
Thus, from the above report, it has been analysed that HP has to face various types of
challenges in order to conduct restructuring plan that includes layoffs up to 5000 employees.
This plan includes extreme strength and weaknesses as it creates negative aspects in mind of
exiting employees. They feel neglected and insulted so they can affect the brand of a company to
great extent. Furthermore, above report also highlights on various strategies to involve
stakeholders in this process because they are the one who are affected mostly.
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REFERENCES
Books and Journals
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Talent Brand. IAP.
Cohen, P. R. and Feigenbaum, E. A. eds., 2014. The handbook of artificial intelligence (Vol. 3).
Butterworth-Heinemann.
Missonier, S. and Loufrani-Fedida, S., 2014. Stakeholder analysis and engagement in projects:
From stakeholder relational perspective to stakeholder relational ontology. International
Journal of Project Management. 32(7). pp.1108-1122.
Hovardas, T., 2018. A methodology for stakeholder analysis, consultation and engagement in
large carnivore conservation and management. In Large Carnivore Conservation and
Management (pp. 97-114). Routledge.
Harrison, J. S., and et.al, 2015. Stakeholder theory as an ethical approach to effective
management: Applying the theory to multiple contexts. Revista brasileira de gestão de
negócios. 17(55). pp.858-869.
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model
for successful change. Journal of Organizational Change Management. 28(2). pp.234-
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Alvarez, S., Afuah, A. and Gibson, C., 2018. Editors’ Comments: Should Management Theories
Take Uncertainty Seriously?.
Burke, W. W., 2017. Organization change: Theory and practice. Sage Publications.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Hayes, J., 2018. The theory and practice of change management.
Nilsen, P., 2015. Making sense of implementation theories, models and
frameworks. Implementation Science. 10(1). p.53.
Online
HP sees up to 5,000 job cuts as part of restructuring plan. 2018. [Online]. Available through:
<https://www.reuters.com/article/us-hp-layoffs/hp-sees-up-to-5000-job-cuts-as-part-of-
restructuring-plan-idUSKCN1J12YJ>.
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