A Critical Analysis of Change Management at Transocean Limited

This report provides a comprehensive analysis of change management within Transocean Limited. It begins by exploring the multifaceted nature of change, examining its causes and effects on individuals, teams, and the organization as a whole. The report delves into individual change, investigating learning processes, behavioral approaches, and cognitive and psychodynamic perspectives. It then examines team dynamics during transitions, differentiating between groups and teams and analyzing project and supervisory teams. The analysis extends to organizational change, highlighting the implementation of Total Quality Management (TQM) and applying Lewin’s force field analysis. The report also explores the roles of managers and change agents in facilitating change, outlining various intervention strategies. Kolb's learning cycle is used to understand how individuals learn, and the behavioral, cognitive, psychodynamic and humanistic approaches are all explored. The report provides insights into the strategies and challenges associated with managing change in a large organization, using Transocean Limited as a case study.

TABLE OF CONTENTS
CONTENT PAGE NUMBER
Introduction 1
Individual change 1
Team change 5
Organization change 7
Kolb’s learning cycle 8
Conclusion 12
References 12

INTRODUCTION
Change is at the heart of everything in the world we live in, irrespective of the
magnitude or complexity of an organization (Goodstein & Warner Burke, 1991).
Changes normally occur due to different reasons. This research investigated the causes
and sources of changes in Transocean Limited. The objective is to understand the
impact of change in Transocean Limited and critically analyze and appraise a
management issue in Transocean Limited.
Transocean had embarked on a deliberate cultural transformation, shifting from an
inwardly centered bureaucratic company towards a flatter, and more dynamic customer-
oriented organization. To make this transition, all front-line and back-office employees
had to adapt how they interacted with consumers and each other (Albring et al., 2019).
The behavioral change strategy will focus on changing the behavior of employees and
management.
INDIVIDUAL CHANGE
While implementing a change, the key point is to understand how the change impacts
individuals and devise strategies to help people through change. To investigate how
individuals go through change, it is important to explore a different perspective on
individual change:
 How do individuals understand something new or adjust to something new or
unlearn?
 How can people behavior be altered using rewards and punishment?
 How do people behave when they experience change, and what are the
implications for their health and wellbeing?
 How can people get the most out of change?
 How people differ to change?
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 Why may people resist change, how can we manage the resistance effectively?
Learning is defined as the process of gaining knowledge by exposure which leads to a
change in actions (Kavanagh & Ashkanasy, 2006). You must learn something new,
adjust to the new situation or unlearn something in all transition scenarios. When
Steven Newman, the CEO of Transocean Limited, resigned in 2015 after a $2.2 billion
quarterly loss, staff needed to learn something new, such as the new boss's likes and
dislikes. People have a worldview, according to gestalt psychologists, in which some
things are at the center of their consciousness while others are in the background.
When employees are in a new situation, a lot of the activities they have been performing
unconsciously needed to go through some practice and experience to understand the
change. It necessitates thinking and presence of mind. When you don't know, the only
method of recognizing a mistake is to make one yourself or when someone tells you
about the mistake. From self-reflection and feedback, one can start learning.
Kolb's Learning Cycle
David Kolb (1984) established a model that explained how people learn and the stages
they go through while doing so. It demonstrates that we learn through doing and
reasoning (Vince, 1998). The person does something, reflects on it, tries to make sense
of it by making broad conclusions, and tries to do things differently in the future. Kolb
contends that meaningful learning cannot occur unless all stages of the cycle are
completed. Trainees at Transocean Limited practice by participating in an activity and
reflecting on what they learned from the activity. They must consider the feedback
they've heard and put what they've learned into practice (Mcleod, 2017).
A behavioral approach to change
The behavioral approach to change focuses on how the management uses reward and
punishment to alter the behavior of employees to achieve the desired results.
Transocean Limited focused on influencing the behavior of employees and supervisors
when through a planned program of cultural transformation. It was critical to use a
combination of rewards and penalties to inspire and align personnel to the change effort
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to assist persons going through the transition (Schiffer, 2011). Shift allowances, food
coupons, and other tangible rewards were used as reinforcement mechanisms. Other
than financial reinforcement, feedback was given to each individual about how they
performed on their task. The feedback will be given. New trainers at Transocean Limited
often spend time studying which behavior attracts which reaction from management.
Social reinforcement through praise, compliments, general recognition was extremely
useful when the organizational culture change was underway.
Cognitive approach
The cognitive approach is focused on the goals. It is concerned with what employees
need to achieve and how they get in the way. The salesperson at Transocean Limited
had set themselves clear targets. They had personal goals to achieve outside of work
with the rewards from their success. Cognitive behavior therapy (CBT) is based on the
understanding that 'cognitions-our thoughts and beliefs-largely determine the way we
feel. CBT seeks to challenge the thoughts and beliefs that generate the feelings or, less
directly, to shift behaviors that negatively contribute to those distressing emotions
(Martins et al., 2015).
Psychodynamic approach
Due to Elizabeth Kubler-Ross's research, it became clear that throughout transition,
human mind goes through a psychological process (1969). The term 'psychodynamic'
refers to the idea that when an individual is confronted with a change in the external
environment, they can experience a variety of internal psychological states (Kets de
Vries & Cheak, 2014). When the new CEO took charge of Transocean limited, there
was a sense of "foreign element". That was a period of chaos. When the restructuring
was taking place, employees had to go through many sleepless nights worrying about
their job, or whether they will have to leave the organization. However, through better
communication, when the thinking of chief executive was made clear, they accepted
that perhaps he did have a point in bringing change within the firm. Employees began to
accept the idea of their new roles and started to play along; it becomes more
experimentation and more of an exploration. The reorganization became established in
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the organization as time passed. Roles and duties have been clarified, new goals and
methods of working have been established, and outcomes have been attained. The
psychodynamic method helped managers understand and cope with their employees'
reactions during the transition process. This allowed management to have an insight
into why people act the manner they do.
How managers and change agents helped to change
The organization and its management should carry out interventions to help the
employees in the transition. While change is taking place in the organization, the
management ensured that the reward policies and performance are aligned.
Behavioral
 Productivity management.
 Policies for remuneration.
 Values that are manifested through actions.
 Management capabilities.
 Style of management.
 Coaching for peak performance.
 360-degree feedback.
Cognitive
 Management based on goals.
 Frameworks for business planning and performance.
 Coaching that is based on results.
 Visioning.
Psychodynamics
 Understanding the dynamics of change
 Counseling those who are going through a transition.
 Bringing to light matters that have been hidden.
 Taking care of feelings.
 Employees and bosses are treated as adults.
Humanistic
 Keeping the values alive.
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 Creating a learning organization from the ground up.
 Taking care of the hierarchy's requirements.
 Taking care of feelings.
 Promoting collaboration and communication.
Managers and employees must understand exactly what they are expected to do and
how they are expected to do it. It's important to define behavior, especially when
Transocean Limited promotes 'the company way.' A manager must use tactics that link
corporate goals, individual goals, and motivation from a cognitive standpoint. This will
result in alignment as well as motivation. Providing continual mentoring during the
transformation process to reframe hurdles and resistances is another method. It's all
about treating people like adults and having mature discussions with them. Managers
can recognize the benefits of digging under the surface of what are going on and
unearthing thoughts and feelings that aren't being stated or communicated using the
psychodynamic approach.
Working through these emotions can help you gain energy for change. According to the
humanistic psychology approach, which is based on psychodynamic ethics, people are
innately capable of adapting to change, but they require enabling structures and
strategies to do so. Individuals can grow and progress in an environment with healthy
levels of open communication and favorable appreciation for them.
TEAM CHANGE
Understanding the concept of teams, identifying how teams behave in transition, and
developing methods for managing teams through change are all key considerations
(Levasseur, 2017). What makes a team and what forms a group has been the subject of
much academic debate. A group is made up of people who form a boundary around
themselves. A team, but on the other hand, is generally clearer about what it is because
of its common objective. Its members are completely aware of who is engaged and
what their objectives are. There is indeed a definite correlation between the task's level
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of uncertainty and the amount of teamwork required. The more ambiguity, the more
teamwork is required. Management teams must be adaptable in terms of team size.
Decisions regarding health and safety, HR decisions are all quite certain, so they can be
handled swiftly. These questions usually have a correct answer. There is no right or
wrong answer, and each alternative comes with its own set of risks. This entails more
collaboration, more exchange of viewpoints, and a clear grasp of what has been agreed
upon and its ramifications for the team (Paton & McCalman, 2008). At Transocean
Limited, project teams are groups formed with the sole objective of completing a project.
As a result, they are given a set amount of time to accomplish their goals and are
expected to do so. It could be a project focused on an external client.
Contingent upon the size of the venture the group may include people on a full or low
maintenance premise. Ordinarily, there is an undertaking administrator, chosen for their
subject matter expert or administrative abilities, and venture support. People report to
the task supervisor for the span of the venture (even though assuming they work low
maintenance on the undertaking they may likewise be answering to a line
administrator). The venture administrator reports to the task support, who regularly is a
ranking director. The venture group has been fruitful when it conveys the particular task
on schedule, top quality, and inside the financial plan. Brown and Eisenhardt (1995)
noticed that cross-useful groups, which are groups that included people from a scope of
authoritative capacities, were found to upgrade project achievement. Project groups are
particularly connected with carrying out change (Cameron & Green, 2019).
Finally, the supervisory committee is responsible for the association's overall
presentation. Supervisory groups are like work for groups as far as a conveyance of the
current functional arrangement, however are significantly more prone to be in a place of
planning and delivering change additionally. The senior supervisory crew in any
association is the group probably going to be considered answerable for the
association's definitive achievement or disappointment. It is in a crucial situation inside
the association. From one viewpoint, it is at the highest point of the association, and
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subsequently, colleagues have an aggregate administration obligation (Wiersema &
Bantel, 1992).
ORGANIZATION CHANGE
Transocean Limited began TQM (total quality management) activities in 2013, which
included a focus on customers and process improvement across the board. Focus
groups were hopping, and ideas from the front lines were pouring in. Several issues had
been resolved.
When Transocean Limited began its TQM activities, to speed up the process, the
driving forces had to outweigh the resisting forces for this change to happen. TQM to
succeed, participation of all employees was the main pillar. Employees need to ensure
that the quality is maintained at each level. Change should not be about focusing on a
single department but about every level of the organization. Each employee needed to
take ownership of their role (McIvor & McHugh, 2000). Employees should be made
aware of the time they would free up and customer satisfaction the change can bring.
More time needed to be spent by the management in supporting the employees to
adjust to this new position. For a change to happen in an organization, according to
Lewin’s force field analysis, the organization had to go through three steps. The first
step involves defining the current state. The next step is about moving to a new state
through the involvement of everyone. And the last step focuses on maintaining the new
state of affairs through rewards and establishing new standards.
Backhard & Harris (1987) developed a change formula. They say if the person or group
is neither fully dissatisfied with the current state, nor eager to achieve the proposed
change, then the cost of change will be too high: i.e. the person will resist change.
Transocean Limited used this formula as a starting point. The vision was built and was
communicated to hundreds of people at a large-scale event. Employee dissatisfaction
was measured using a survey and was discussed at team meetings.
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William Bridge’s ideas help to understand what is happening when a transition is in
place. According to Bridge, transition consists of three stages. In the first stage, you
need to identify who is losing what and acknowledge the staff’s feelings. In the neutral
zone, people get de-motivated. The managers must ensure that people see it as a part
of the process. The beginning stage needs to be supported and encouraged. To make a
beginning, the employees need to understand the purpose behind the change, how the
organization will look after the change, step by step to reach there and their part to play
at the end (Van de Ven & Sun, 2011).
The success of Transocean Limited in managing the change helped me to understand
Lewin’s ideas were valuable when analyzing the change process at the start of the
movement. The use of his force field analysis and current/end state discussions has
helped in the transition. The change formula was extremely useful to analyze what was
going on at any point in the change process. Bridge’s model of endings, neutral zone,
and beginnings are extremely helpful while tackling resistance.
PART B
KOLB'S LEARNING CYCLE
David Kolb (1984) established an experiential learning model that explained how
learning occurs and the stages that a typical person goes through during learning. It
demonstrates that we learn through doing and reasoning. The individual performs
something, reflects on specific experience, attempts understand what happened, and
makes strategies for the future. True learning, according to Kolb, cannot occur unless
someone goes through all stages of the cycle.
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Furthermore, Kolb's research revealed that different people have various learning
preferences or styles. Some students take a very activist approach to learning. Some
people like to consider it first. Theorists might want to explore or see how the act ties to
other sorts of activity. The pragmatists want to be able to apply what is going on to their
own situation.
Concrete Experience:
In concrete experience, a learner experiences a new situation or interprets an existing
experience differently. According to Kolb, learning begins when the learner is met with a
new situation. In a workplace, an example can be a new task an employee is met with
while carrying out his work. Kolb believed for a listener to acquire knowledge, he must
engage in the task rather than just reading it or having seen the situation unfold.
Transocean Limited offers different methods, ranging from lectures to skill practice, to
help you get more involved. Individuals could be divided into groups and given difficult
tasks to perform. They'll have to put their leadership skills to the test in a real-life
situation. At this level, it's critical to retain an inquisitive mind and the flexibility to alter
during learning circumstances.
Reflective Observation:
According to Kolb, for learning to take place, learner exposed to a new situation is not
enough. The learner has to analyze and review what has changed and then the learning
cycle will start. The learner needs to make note of what happened and should be able to
describe the new experience. Analyzing the new experience can be done by asking
questions to oneself: what has changed for this situation to come up? Why does it
happen? The learner needs to review what has happened and a good vocabulary will
aid him in this process.
Each member in the course can evaluate their performance after finishing a task. They
share the event with the training supervisor. They can also make notes about what
worked well, what didn't, and how they think they can improve.
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Abstract Conceptualization:
Abstract conceptualization begins from the question the learner asked in the previous
stage: how do I improve by doing better compared to last time. When met with the
situation, the learner comes up with different strategies to approach if the situation
arises again. This is the stage where the learner should talk to his colleagues and
bosses to get a good understanding of what is best for the situation. Individuals can
integrate their activity experience with any other knowledge they have that can be used
to the situation.
Active Experimentation:
Active experimentation is a type of scientific experimentation where an individual tries to
understand what he has learned when he met with a new experience. Learner tests his
theories and strategies in this stage because the learner needs validation. Employees
who had learned strategies must apply these ideas and evaluate through this process.
This stage helps to increase effectiveness. The learner must track the change and
develop best practices. People would return to the start of the workout. They would,
however, look for new ways to address the difficult problem based on the ideas created
in steps two and three.
How to implement the experiential learning method:
 Encourage learner interaction
Experiential learning necessitates the creation of an engaging learning environment.
You must do more than simply listen to a lecture from an educator. Find strategies to
get employees to engage with the learning environment instead. Their own hands-on
experience should aid in their learning. Allowing them to experiment with solutions and
evaluate the outcomes. They should then be given another chance to try depending on
what they've learnt.
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 Make use of all five senses
During an immersive learning moment, find strategies to engage all five senses.
People's sense of sight will be activated by default. However, the other senses are
equally vital. Give learners tangible tools that they can feel and manipulate. Recreate
the sounds they'd hear in a real-life scenario. This is due to the fact that activating the
senses might aid in the retention of knowledge. The sense of smell is the one that
brings up the most memories. Find a way to incorporate fragrance into your learning.
 Make an atmosphere that looks and feels like the actual thing.
Provide employees with an atmosphere that is as near to real-world situations as
possible to tie it all together. Using your senses is already a step in the correct direction.
However, if we can have people learn in the same context in which they will perform, we
should do so. They will gain direct experience with the material as a result of this. If this
isn't practicable, attempt to mimic the real world as closely as possible. Give learners a
real chance to lead while teaching leadership skills.
Workplace advantages of experiential learning
 Reduces the risk of having unskilled employees in high-pressure circumstances.
 Allows participants to rehearse key situations they may face in the future in a
safe atmosphere.
 Allows participants to assess their performance and act on any feedback
received right away.
 Ability to customize the training experience to the participant's specific demands.
 Participants' levels of involvement are increased.
 As they become physically involved in the programme, they become emotionally
committed in it.
 Obtaining feedback and mentoring.
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CONCLUSION
Managing change is a difficult task, with most studies estimating that 70% of change
attempts fall short of their original goals. Excellent planning, effective systems, and a
clear vision appear to be required for successful change. Energy, passion, and constant
communication are all considered necessary. You will be able to comprehend the
nature and context of the change, identify its important characteristics, and adopt
suitable strategies and styles if you enter the change consciously, whether it is planned
or spontaneous.
When evaluating change progress by focusing on measures, the results will be different
than when focusing on feedback. It will also guide what lessons are learned from the
review and what a leader should do if things aren't going smoothly. Organizations in this
century are distinct, and change is even more rapid. This has sparked fresh views about
where leaders should focus their efforts. In a merger and acquisition situation, the role
of the leader is to make his employee understand that things will change and
communicate new responsibilities to them in a clear way and encourage them to see
things from a different perspective.
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