Change Methodology - Mitsubishi Corporation - Case Study Example

Organizational Change Methodologies Name: Institution: Abstract This report explored extant literature to detail the dynamics of organizational change and transformation management. Change methodology is greatly influenced by organization’s configuration, therefore understanding of an organization’s structure is important in that it defines controls, directs communication flows, outlines people’s roles and shapes the manner in which resources are to be utilized. A case scenario: Mitsubishi Corporation was selected owing to the wide diversification it has adopted and organizational configuration endowed with capacity to coordinate its different operations across the globe. The organizational configuration of the Mitsubishi Corporation is relatively complex owing to its wide diversification of activities in the global markets. The open space methodology employs a strategy that involves a group of people in the deliberation of proposed change initiative, in which they practice open communication and exchange of ideas. Through the ideals of the open space concept: conferences and workshops, stakeholders from the Mitsubishi Corporation can exchange ideas, identify goals and actions, potential problems and outline the best methods for resolving them in order to contribute to the achievement of the groups’ shared vision. Organizational Change Methodologies Introduction In the increasingly complex and sophisticated corporate realm, business enterprises prevail in diverse shapes or structures, sizes, organizational cultures and transformation needs. This is to imply that for change need to be adequately managed, the choice of the transformational approach and method is pivotal, and no particular concept is conventionally suitable for the dynamic business world. It is thus imperative that the selection of methodology in organizational change has critical implications on the change implementation process and the intended outcomes. Change methodology is greatly influenced by organization’s configuration which determines various important aspects of change. Understanding of an organization’s configuration or structure is important because it defines controls, directs communication flows, outlines people’s roles and shapes the manner in which resources are to be utilized (Kenton & Penn 2011). In this case, the choice of change methodology must fit into the organizational configuration in order for the change initiative to be successful. The choice of method in any organizational change initiative requires consideration of organizational objectives under every organizational structure level and the interplay between organizational strategies and the specific configuration. Problem Overview The competition precipitated by the globalization dynamics puts businesses across the world in very different environment than never before. The contemporary corporate environment is increasingly characterized by continual change needs especially those inculcated by the fast technological evolutions and adaptability of entities. Despite being different for all companies, the change need is universally very fast and bears diverse opportunities for entities to optimize their incomes while at the same time presenting them with unprecedented operational risks. Although change is common across the corporate world, it is not restricted to micro-organizations only and it presents varying opportunities and challenges for businesses of all configurations and sizes. Organizations: companies, government departments, are fast changing, which connotes the inevitable task for managers to customize the change methodologies to initiate fitting methods for sustained change management. Organizations differ in their configurations, a factor that explains the ubiquitous lack of a universally effective change methodology. Corporate entities across the globe operate within configurations characterized by common units: divisional, functional, and hybrid structures that combine both functional and divisional configurations. This paper explores the literature on change to deduce the appropriateness of alternative methodologies for a case company: Mitsubishi Corporation. Case Company Description: Mitsubishi Corporation Mitsubishi Cooperation is famously described based on its diversified business ventures and operations across the globe. The Mitsubishi corporate interests sprawl across several industries: machinery, merchant banking, information systems, chemicals, fuels, metal and living essentials such as construction materials, agricultural products, textiles and food products (Mitsubishi Corporation 2012). Owing to the wide diversification, the corporation has adopted an organizational configuration endowed with capacity to coordinate its different operations across the globe. The company’s business operations are spread across eighty countries around the globe offering a wide range of products and services in the world markets. As one of the giant Japanese firms, Mitsubishi Corporation is based on the Keiretsu structure, which entails formation several groups operating under the same brand name. On top of the corporation’s structure is the general meeting of shareholders followed by the board of directors, president, executive committee and the different group chief executive officers (CEOs) (Mitsubishi Corporation 2012). Following the existence of several groups dealing with different products and services, the corporation applies the hybrid organizational structure to facilitate coordination of its activities across the globe. Change Methodologies Open Space Organizations apply different approaches in initiating and implementing changes for operational transformations. Many companies approach to change factor focusing on the entire system in which adopted strategies are deployed across the core functions purposively to instill desired transformation and inculcate positivism in the target aspect (Greenlinger 2008). Extant literature lists common change methodologies: open space, future search and appreciative inquiry, which are consulted for the purpose of this paper. The open space methodology employs a strategy that involves a group of people in the deliberation of proposed change initiative, in which they practice open communication and exchange of ideas. The methodology can work with a large population ranging from 5-1000 people, and can incorporate more people with technological support. Additionally, the open space concept can involve conferences comprising that bring together participants from different subsidiaries or corporation departments (Boonstra 2008). Application of this approach involves invitations for people to volunteer to participate in the change initiative discussions in which at the end of the deliberations, the organizers or the change lead team is able to record or take up the agreed actions. The open space approach is based on the principle of letting go of the control of the agenda or proposed change initiative and leaving it on the participants to deliberate on the best way forward. The main intrinsic advantage of the open space method is that it minimizes the potential of resistance in the process of the change implementation since it gives individuals and group time and opportunities to reconcile disagreements at different stages of the change initiative. The open space change methodology has been enhanced by the current technological advancement, which enable people to exchange change ideas without necessarily meeting physically. Video conferencing or open space-online real-time conferences can allow managements and people from different subsidiaries to engage in interactive discussions about a change initiative. The open space method anchors on the tenets of the Emergent Pragmatic Approach (EPA) in which the change process involves a collaborative effort. This method is built on the Argyri’s theory, which emphasizes on the need to keep those directing the change process in open communication with those whose operations are affected by the change (Greenlinger 2008). The EPA supports the notion that organizational change should lead to significant improvement of the whole system. Future Search Methodology The future search change method is commonly applied in large corporations in which stakeholders meet and analyze the current state of the organization and deliberate on the best way forward (Dean 2008). Stakeholders may meet and synthesize proposed change initiatives by the management and establish an agreed position on any necessary transformation measures. The method involves a consultant that guides the stakeholders’ deliberations but at the same time allowing them to make all decisions by themselves. Conferences are the best instruments applied in this method at and at the end of the conference all stakeholders are able to list a list of action steps unanimously agreed upon by all the stakeholders (Kenton & Penn 2011). This method appears to be significantly appropriate methodology for corporations comprising of different groups with varied interest, in this context the Mitsubishi Corporation. Since the organizational structure of the Mitsubishi Corporation comprises of the shareholders meetings at the top to deliberate on the way forward about the corporation, the future search method can be an effective way of initiating change that is acceptable across the stakeholder populace. Through conferences and workshops, stakeholders from the Mitsubishi Corporation can exchange ideas, identify goals and actions, potential problems and outline the best methods for resolving them in order to contribute to the achievement of the groups’ shared vision. Another commonly applied change methodology is the large-scale interactive method in which the change initiative is driven by a change agent, tailors the entire change process (Greenlinger 2008). However, the change agent may decide to adopt an all-inclusive technique in driving the change incases more-immediate results are desired. The Full Cycle Full Participation and the Conference Technique The full cycle full participation and the conference technique forms an effective alternative methodology in which conferences are held to enable stakeholders to analyze the current situation, forms change teams, and set timelines for the change initiative (Krattenmaker 2001). This methodology involves organizational research aimed at identifying factors likely to influence the change implementation, requirements and creation of the strategy actualization. The whole system change approach is crucial in ensuring that all stakeholders realize the benefits of the change initiative as well as ensuring that the change is fully supported throughout the organization. Inclusiveness in the implementation plays a critical in addressing factors that invite resistance that undermine the success of the change implementation process such as resistance from some stakeholders (Miller 2008). Appropriateness of the Whole System Approach Methodologies in Mitsubishi Corporation The organizational configuration of the Mitsubishi Corporation is relatively complex owing to its wide diversification of activities in the global markets. The Corporation is divided into several groups headed CEOs under the corporation president and executive committee. In this case, any change in the corporation would require involvement of all subsidiary groups and stakeholders. The applied method must show the consideration of the global component of the company in the change initiation, planning, and implementation (Greenlinger 2008). The future search change method emerges as the most appropriate for the case of Mitsubishi Corporation. Change in this corporation would require involvement of all stakeholders in its various groups in order to ensure positive change outcomes. Although the Mitsubishi groups operate independently, their stakeholders hold one shareholders meeting including all those participating in charting the corporations’ future. The large conferences held to enable stakeholders to deliberate on the organization’s play an important role in assisting people to understand the operations of the organization and how the proposed change is likely to impact on the corporation (Boonstra 2008). Through this methodology, the corporation will ensure that all its internal and external stakeholders understand importance a change initiative and the expected impact in order to receive full support in driving any change initiative within the corporation. The approach would play a critical role in eliminating limitations to the implementation of any change initiative associated with perceived boundaries the various corporation groups. Conclusion The choice of change methodology is greatly influenced by the configuration or structure of an organization. Change methodologies in turn influence the success of any organizational change initiative with the success highly depending on the choice of method. Mitsubishi Corporation comprises of a unique organizational structure consisting of several groups dealing with different products and services in different parts of the world. Shareholders emerge at the top of the organizational structure hence the need for a methodology capable of providing both the internal and external stakeholders to participate in the initiation, planning and implementation of the corporation’s change initiative. Such requirements are readily met by the future search methodology applied for whole system change initiative. References Boonstra, J 2008, Dynamics of organizational change and learning. John Wiley & Sons. Hoboken. Dean, R 2008, Leadership communications and organizational change: a case study of the effect of leadership communications in shaping employee perceptions of change efforts at two nuclear power facilities. ProQuest, London. Greenlinger, K2008, Successful organizational change in a large, complex, government organization from the provider's perspective. ProQuest, London. Kenton, B & Penn, S 2011, Change, conflict and community: challenging thought and action. Routledge, London. Krattenmaker, T 2001. ‘Change through appreciative inquiry’, Harvard Management Communication Letter, pp. 5-6. Miller, K 2008. Organizational communication: approaches and processes, Cengage Learning. Stamford. Mitsubishi Corporation 2012, ‘Organizational structure’, Mitsubishi Corporation, (Accessed October 22, 2012) < http://www.mitsubishicorp.com/jp/en/about/org/> Read More