Ashland - Leading Organisational Change - Case Study Example

Abstract This report analyzes the company Ashland and the manner in which change management strategies were implemented within the organization so that the different issues which the organization was facing got solved. Different issues different theories and models are also being used so that a proper analysis in relation to change management can be applied to the case. It shows that lack of employee involvement, motivation and use of change agents and sponsors was a major hurdle in the process of change. Using the different models of change would have helped Ashland to ensure better change management process and would have maximized the opportunity in the future to make changes in an effective manner. Table of Contents Introduction 3 Literature Review 3 Case Study 6 Analysis 8 Conclusion 11 References 13 Introduction This report looks at analyzing the company Ashland and the manner in which change management strategies were implemented within the organization so that the different issues which the organization was facing got solved. To analyze the different issues different theories and models are also being used so that a proper analysis in relation to change management can be applied to the case. The report also uses past research and studies to substantiate the manner in which organizational change will have a positive impact on the working and will thereby bring a positive impact in the manner decisions are taken. The report also looks to provide different recommendations and shows the manner in which organizational change perspective can be improved. Literature Review Change process is an integral part of organization and looks towards strengthening the manner in which organization performs. The effectiveness of a change management process largely depends on conscientious judgment of a leader. The leader needs to identify the physical and human resources, the strengths and weakness of those resources and need to reinforce a positive vibe so that people get motivated towards the process of change (Ibbs, Lee and Li, 2008; Pinto, and Kharbanda, 2005). Change is thereby one of the core constituent to be successful as it helps to stay ahead of competition and develops the required tools through which efficiency is gained (Suutari, 2002). Identification of the drivers of change is an important aspect which will determine the manner in which change process is being carried out and determines the long term success. The change process could be in different directions like business market strategy, organizational designs, cultural changes, behavioural changes, and ways of thinking of members of the organization requiring that appropriate strategies based on the changes which is required is adopted (Jay, 2010; Rappe, & Zwick, 2007). To ensure effectiveness in the change process different models and theories have also been developed which concentrates on the manner in which change process will be initiated. Lewin’s Three Step Model of change looks at unfreezing the present situation by identifying the different dimensions which have to be changed. This has to be followed by identifying the action or move which needs to be taken for the process of change (Lewin, 1952; Nussbaumer, & Merkley, 2010). Finally freezing the change by adopting a stance and taking a decision which will ensure that the business functioning improves and the business is able to use the different resources in a better way. The Kolb models of change have been developed on looking at the different reasons for change and finding out the manner in which the change process will being efficiency. This has to be based on the organizational needs and based on it an appropriate strategy which fits the organization needs to be adopted (McAllaster, 2004; May, 2007). This will help to discover the mechanism through which change will be better achieved and will shape the entire process of taking decisions within the organization (Pettigrew, Woodman & Cameron,. 2001; Tiong, 2004). Kotter’s Eight Step Model also lays down the framework which will be used while implementing the change process. This begins with identifying the need of change and creating the urgency for change (Covington, 2002; Kootter, 2010). This has to be followed by creation of a vision and passing on the vision to others so that they understand the manner in which change process will help them. The process needs to be followed by creating short term goals which will help to accomplish the change process and empowering people with different roles and responsibilities so that the entire process of change can be effectively carried out (Kloppenborg, 2011; Mary, 2010). This will help to utilize the resources in the best possible manner and will provide strong imperative and directions through which business efficiency will improve. The process of change as seen in different studies shows that it faces increased resistance from employees and other stakeholders. This is primarily due to the fact that people undermine the process of change and believe that the process will have an adverse impact on them. Proper communication of the future goals and the manner in which change process will benefit them will create the need and helps to carry the change process effectively (Cadle, & Yeates, 2008; Galpin, 2006). The process has to be further matched by a mechanism where special and extra initiative is taken to motivate the workforce towards changes. Using financial and non-financial incentives will help to bring a change in culture and will thereby establish the role within the organization through which efficiency in resources will be achieved (Manning, 2003; Yukl, 2009). Organization to ensure successful transition should further look at using the services of change agents and sponsors. They are specialist in the field and have more knowledge and expertise which will help to develop the process of change in a better way. This will also shape the entire process and ensure that the resources are better used (Huntoon, 2008, Wood, Chapman, Fromholz, Morrison, Wallace, Zeffane, Schermerhorn, Hunt, & Osborn, 2004). Using agents will also reduce the reliance on internal sources and provide an opportunity where external sources can be used and agencies can be consulted for the better development of the process. The development of technology has further provided an opportunity where the change process can lead towards better effectiveness. Organizations need to understand and realize the importance and need of change. This will thereby help to develop the required parameters through which better technological changes can be ensured at lower cost (Mallak, Kurstedt Jr., and Patzak, 2007). This will reduce the cost associated with operational aspect of the business and multiply the overall effectiveness so that the process of change looks at strengthening the business fundamental. The overall process of change has thereby to be matched by the use of different resources and challenges which needs to be addressed at the correct juncture. This will help to garner a process through which all the aspect which will multiply effectiveness will be studied (Dent, Goldberg, 1999; Lorenzi & Riley, 2000). The process of change thereby has to start with the top management who are responsible for the strategies of the organization and need to be passed even to the lower level employees. This will act as a point through which the required momentum is gained and changes are better and effective (Ralston, Hallinger, Egri & Naothinsuhk, 2005). Studies have also highlighted that the magnitude of change which the organization need to undergo will determine the strategy which has to be implemented. Small and subtle changes can be easily accomplished but major changes need to be examined properly before making the changes (Franco, 2009; Kane, & Trochim, 2007). These changes have to be further carried out under the help of specialist and proper policies are developed so that successful change management principles can be developed. This will provide the required direction and lead efficiency in the process of change by highlighting the different areas which have to be focussed (Motwani, Kumar and Anthony, 2004). The overall process of change thereby requires a lot of areas to be worked on and being able to develop the required process helps in the long term success of the organization. The process of change is imperative and organization based on their needs and requirements need to develop appropriate strategies which will help to carry out the process of change in the best possible manner. Case Study Ashland as an organization has grown its business due to strong leadership from the management and continuous support from the stakeholders. The business started its operation in 1924 and since then has grown its business to over 100 countries which have helped them to grow their revenues significantly. The revenues of the business have grown from $24 million in 1936 to above $9 billion in 2010. The organization has strived on values which are honesty, integrity, sustainability, responsibility, transparency and innovation which has helped them to develop their business accordingly. In addition to it different ethical principles which look into the requirements of the environment along with customer needs are being addressed. Despite the growing success of Ashland the business faces issues associated with organizational changes The business is facing issues related to high operating cost and redundancy due to the lack of organizational change (Szamosi, & Duxbury, 2002). The major resistance to change came from stakeholders which have thereby impacted the entire process through which change takes place. The different attempts to make organizational change failed which has thereby led to the closure of operations in the coastal regions (Yardley, 2002). In addition to it a large number of employees didn’t understand the need and importance of change in different parts of the globe making it difficult for the business to ensure the same level of efficiency (Cummings & Worley, 2005; Piderit, 2000). Employees were further not clear about the objectives of change which needs to be carried out. The CEO also realized also realized the need and importance of change and looked towards engaging different stakeholders and sponsors so that the process of change could become effective. To ensure efficiency the different leaders were made to attend workshop and seminars so that the process of change can easily implemented (Waldersee, & Griffiths, 2004). The entire process of change thereby looked towards working on the different dimensions through which better change can be managed. The change process which was needed wasn’t developed in a proper and effective manner which thereby had an impact on the overall level of productivity. The performance of the organization started to move down due to the lack of effectiveness which was witnessed within the organization (Pettigrew, Woodman, & Cameron, 2001; Stewart, 2003). The overall process required to ensure that the stakeholders and the employee agree to the manner in which changes need to be made so that the overall business process efficiency can be achieved. This would have a positive impact on the organization and could lead towards better use of resources and ensure better productivity. Analysis There are different issues which have arisen due to the fact that the business was not able to make the required changes to develop the change management process. Ashland has looked towards undergoing the process of change after it realized that the business was not functioning effectively and in the desired way. This led towards a situation where operating cost was increasing continuously and the business was experiencing redundancy in the change process. The CEO adopted a process where they look at engaging the leaders and stakeholders directly in the change process. The organization also provided training to its employees and leaders so that the change process can be effectively implemented. The process ensured that the changes of being successful in the change process were high. Organizational change is an aspect of business which every organization experiences sometimes or later. The fact that the business environment is very dynamic requires that the process of change is continuously implemented and the different market needs are easily met (Bishop, 2001; Frambach, Prabhu, and Verhallen, 2003). The fact that technology is very dynamic and continuous changes and developments take place has made it mandatory that organization also look at being innovative at all times. Bringing the required changes helps to reduce the operational cost and provides efficiency in carrying out the different activities. Organizations thereby need to implement the process of change to reduce cost. This has to be matched by the fact that stakeholders should be involved in the change process. This will help to ensure that the stakeholders understand the need and importance of change and can be thereby motivated so that the change process is carried out effectively (Thach, & Thompson, 2007). This will require that employees are also involved in the change process. Ashland looked towards the process of change by engaging the stakeholders but didn’t involve the employees directly. This resulted in increased resistance from the employees as they were not willing to get engage in the process of change. This made it difficult for the organization to carry out the process of change rendering the entire process to be ineffective. Since, the process didn’t look at involving the employees in the process of change so the entire steps which the organization took weren’t providing the expected results. Another important facet while looking at organizational change is the motivational level of employees. It is imperative that employees have to be highly motivated so that the process of change can be initiated easily (Weiner, 2009). The process of change should be accompanied by a dialog within the employee so that the need and importance of change can be clearly understood. Employees should understand the need and importance of change and should clearly understand the manner in which the change will benefit the business and employees. In addition to it the employees have to be highlighted the different aspect of change and the barriers which they will face (Chapman & Ward 2007; Chapman, 2010). This will help to create the required fundamentals and will help to create the required urge for employees to be able to deliver better performance. This has to be matched by the different monetary and non-monetary benefits like salaries, allowances and other benefits. This will thereby help to create the required dimensions through which better business will be achieved. Ashland hasn’t been able to work on the required fundamentals and develop the required motivation which will make employees to achieve the different fundamentals. The process also impacted the overall mechanism through which employees were not motivated to carry out the different functions and thereby had an impact on the long term prospect of the business (Lawson & Price, 2003). Ashland inefficiency to develop the required process which looks at developing the parameters which will help to motivate the employees is having an impact on the overall performance of the organization making it difficult to develop the process of change properly. The process of change also requires looking towards the process of change by using external consultants and audits. Despite the firm having their own consultants it is imperative that the help of external agencies and parties are also used. Since external consultants have different viewpoints and experience they can contribute positively towards the long term goal and bring the required changes through which the process of change can be properly initiated (Bridges, 2003). This was an aspect which was missing in case of Ashland as the organization relied on the internal personnel to carry out the work. The lack of efficiency and effectiveness to deal with the different needs and requirements made it difficult to make the required changes in the change process (Stefanovic & Shenhar, 2007). The overall impediments thereby had an impact on the long term prospect of the business and made it difficult to bring a change in the overall perspective of carrying out business. Ashland ineffectiveness to have the required personnel who are capable of handling the required change process resulted in hampering the overall process of change. Ashland also didn’t define or determine the different financial strategy which needs to be used making it difficult for the change process to be carried out effectively. The lack of efficiency to use the different change models and theories was a hindrance in their path towards change. This has an impact on the overall performance as the resources were not used in the correct and desired ways (Davenport, 1993; Duncombe, 2004). This resulted in wastage of time and money and was faced by continuous resistance from all directions. The overall impact of such a decision was worse and made it difficult for Ashland to carry out its different functions (Milosevic, & Srivannaboon, 2006) Ashland thereby had to face several issues associated with the manner in which change management aspect were being used. This required proper introspection and developing strategies which were based towards strengthening the overall process of change so that the different hurdles are better attained and the mechanism through which changes can be ensured is fully developed. Conclusion Ashland could have achieved the effectiveness in the process of change by using different approaches. Some of the approach would have provided an opportunity of better assessment of change process which was involved and would have improved effectiveness in the change process. Some of the approach could have been Dialog with employees and motivating employees: Ashland involved the leaders and stakeholders but employees at the lower cadre were not involved. They just worked on what was provided to them and consulting them would have helped to understand the goals better and would have helped to carry out the work in a better way (Burke, 2003; Baca, 2005). This had to be matched by financial and non-financial incentives so that employees could have been motivated to carry out the different functions. This would have improved productivity and ensured better interaction with the employees during the change process. External Consultancy & Outsourcing: Outsourcing and external consultancy is used to gain effectiveness in change process and to minimize the operational cost (Andersen, Grude & Haug, 2004; Abell, Springer & Kamata, 2009). Ashland should have taken the help of external consultancy and outsourced some of the aspect for better decisions making and improving the change process. Using different theories and models: Ashland while looking towards the process of change could have used different change theories like Lewis three step models, Kotter 8 step model and other to gain effectiveness (Yamamura, Birk, & Cossitt, 2010). 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