Question

Toolkit Exercise 10.3

Application of Simon’s Control Systems Model

Consider a change you are familiar with (higher education change).

1.      Describe the control processes and measures that were used with the change (i.e., the belief, interactive, boundary, and diagnostic controls). When and how were they used and what was their impact?

      a.    During the earlier stages of the change initiative

      b.    During the middle stages of the change initiative

      c.    During the latter stages of the change initiative

2.      Were there forbidden topics in the organization, such as questions related to strategy or core values? Were those limits appropriate and did anyone test those limits by raising controversial questions or concerns? Were small successes celebrated along the way?

3.      What changes could have been made with the control processes and measures that would have assisted in advancing the interests of the change?

Answer 1

1) Describe the control processes and measures that were used with the change. When and how were they used and what was their impact?

Best Buy is undergoing strategic changes to respond to competition from online retailers. The company is changing its business strategy to use showrooming to their advantage.

Best Buy is developed a diagnostic control system that will allow their change agents to understand critical performance variables and can modify systems to encourage new, desired behaviors while discouraging dysfunctional ones. The old diagnostic controls were focused on producing sales and not so much on the customer. With showrooming, Best Buy is adding new diagnostic controls to build relationships with customers and gain their business. They are focusing on measuring progress and taking corrective action and learning as they go in the beginning stage. They develop milestones and tactics to help with their change. In the middle, the company evaluates the milestone progress and assess if the systems and processes are working, as they should. As they assess showrooming, they will determine if the project is completed and if the new systems and changes are working appropriately.

The belief system allows the change leader to appeal to higher-order values of individuals and the core values of the organization and helps to motivate behavior and overcome resistance to change. During the earlier stages, they assessed congruence between their core values, mission, and the purpose of the change project, showrooming. They had to communicate with every employee how important the change was and how it relates to their values and mission. Best Buy did not accept online price matching previously to this change project. This was a new concept, and employees had to be informed about this new belief that price matching was the right choice to compete. As they are in the middle of the change, they reaffirm their core values to ensure they are on path with their mission. Towards the latter stages, they reassess and reaffirm the core values and mission based on what they learned from showrooming.

The boundary system is used to set the limits of authority and action and determine acceptable and unacceptable behavior. Best Buy has approved price matching in stores. This is a boundary that was not available to employees before. They are able to match online prices from customers who request them, giving them the power to decide if the price is legitimate. Best Buy also does not work off commissions. This is a boundary that is not acceptable. Employees are paid on an hourly rate and are focused on helping customers to the fullest extent, instead of focusing on making commission off them. Best Buy will reassess risks and re-establish boundaries in the middle if necessary. They can also test new boundaries where appropriate. At the end stages, they re-evaluate the boundary limits to see if it was effective.

Interactive controls sense environmental changes crucial to the organization’s strategic concerns. This will allow them to modify change plans to face environmental factors. Best Buy is using showrooming as an interactive control as well. They are changing the store layouts to be more interactive with customers. They are providing information sessions in their stores so customers know how the product is suppose to work and be used. Customers are able to learn more about the product and become knowledgeable on all aspects. In the middle stages, Best Buy will monitor to see if they are on track with competitors. In the end stage, they obtain feedback regarding the success of showrooming relative to sales and online competitors.

2) Were there forbidden topics in the organization?

There were no forbidden topics in the organization. Employees were encouraged to speak out if they saw something that needed to be addressed. Everyone’s opinion was respected and put into consideration if it was thought to benefit the organization.

3) What changes could have been made with the control processes, and what measures that would have assisted in advancing the interests of the change?

If Best Buy had allowed price-matching boundary early on, it would have resulted in more sales for the company in the past. Instead, they lost several opportunities over the years on customers leaving the store to buy online. If they would have price matched for these customers, they would have purchased the product when they went in. They also would have become more loyal customers as well. Also if they had changed diagnostic controls to accommodate showrooming early, they would not be in the same situation they are now. They did not focus on environment factors and competitors. They are currently taking corrective action and learning as they go now. They are a late mover to showrooming because they ignored the threats from online competitors.

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