Question

In: Operations Management

You now have been tasked with mapping out an organizational culture change Delta Pacific Company (DPC),...

You now have been tasked with mapping out an organizational culture change Delta Pacific Company (DPC), another role and responsibility as a change leader for the organization. It's important to have a change plan set before the change actually occurs. This is for a few reasons:

Increases the probability of success

Enables you to weigh options

Provides knowledge so you can make an informed decision

Allows for proper identification of the change and steps needed

Allows for identification of what might occur during the change

Since you are the change leader, your first step is to map the change using a change management model. You are aware of the extensive change the organization is undertaking with a shift in production to consulting. However, profitability has still declined even with training and resources in place.

As the change leader, select one of the change management

models and map out the organization's goal of changing the culture from the more traditional manufacturing environment to one of a contemporary consulting environment.

Conduct academic research and create a proposal to the CEO and board in which you complete the following for approval of the change plan:

Explanation for why the change model being used is most effective for this change.

Description of the change map to include details for each step.

Examples of what to expect during the change process.

Explanation for each of your recommendations in each step of the change model.

Remember that this is a proposal. Make sure to format your paper properly for your proposal. A proposal is a persuasive document, so make sure to use proper language and tone. Remember, you are the change leader and you are writing to the CEO. So use a tone in your proposal that is specific to your audience (the CEO).

Include your APA-formatted reference page with at least two credible sources.

Here is the case study:

Project Case Study: A New Direction for Delta Pacific

Introduction

In a global business environment where organizations can no longer rely on traditional factors that historically lead to a competitive advantage such as access to proprietary technology, exclusive rights to raw materials, or proximity to customers and markets, many organizations have re-structured to capitalize on new success factors. In the United States that has resulted in a shift in many cases from product or service-based businesses to knowledge-based businesses (OECD, 1996; Powell & Snellman, 2004). Powell & Snellman (2004) define the key components of a knowledge economy as. .a greater reliance on intellectual capabilities than on physical inputs or natural resources." (p. 201). This case presents the challenges facing an organization as it transitions from its traditional business model to one that incorporates greater reliance on the knowledge of its workforce. The focus of this case is on the role of the organizational behavioral system in facilitating a successful transition to the new corporate strategy.

The Case Scenario

The Delta Pacific Company (DPC) has a long history of success. The company has been at the fore front in the development of information technology since the 1970s and led the market in technology development, manufacturing and sales throughout the 1980s to the mid-1990s. DPC was a success story. They consistently met or exceeded their profit targets, successfully integrated new technology into their products, and they were considered one of the best employers in the country. With generous benefit packages, a high quality of work life, industry leading salaries, and a corporate culture that considered its employees to be part of a family, potential employees were lined up for opportunities to join DPC.

However, with the advent of globalization, freer trade, and low cost overseas labor, DPC found itself slowly losing market share for its primary product: computer hardware. DPC had prided itself on producing and selling the best products and training its sales force to develop long term relationships with clients that brought them back year in and year out for DPC's technology. Along with hardware, DPC also sold service contracts and training classes for the end users of their products. By the late 1990s it became clear to the leadership at DPC that they could no longer compete with less expensive products being produced overseas. At one time they could sell their higher priced goods on the premise that they were of higher quality, but that was no longer the case. Foreign-made products were now being produced to match or even surpass the quality standards set by DPC. However, conversations between sales representatives and their clients did indicate one thing: the clients valued the personal interaction they had with the sales reps and the personalized advice that they could provide to their clients to help them to reach their goals. DPC recognized that they needed to make a change and they believed they had a new vision for their company.

As they entered the 21st century DPC moved away from hardware solutions to business challenges and shifted instead towards knowledge-based solutions. Rather than selling equipment, DPC began to market the extensive knowledge of their workforce. DPC would no longer sell the equipment; they would instead provide integrated knowledge-based solutions to information management problems. Essentially they would become a consulting firm that would assist their clients to set up systems that would facilitate information management. But now their solutions would go beyond hardware and encompass software, organizational design, data collection management, work flow and overall information management re-engineering. Sales reps underwent significant training to prepare them for their new roles. However, the redesigned jobs were not a good fit for all of the sales reps. some moved on to other types of positions within the company, but others left to pursue opportunities elsewhere.

As expected, profitability declined during the initial introduction of this new organization mission as employees became accustomed to their new roles. Due to the time taken to train employees, they were spending less time in the field with their clients generating revenue and more time in the classroom being oriented to their new roles. However, the decline persisted much longer than anticipated and the company's leadership team, board of directors and the shareholders were growing impatient with the slow returns. It became increasingly apparent that while the training, resources, and equipment were in place, significant changes in the organizational behavior system at DPC were necessary to ensure long term success.

Solutions

Expert Solution

With unprecedented advances in communication technology, businesses had to adapt to operating within a global environment, ensuring sustenance and growth by introducing strategies which are dynamic in nature and conducive to implementation of change. The major challenge facing Delta Pacific is its inability to initiate a transition from a conservative business model to a global one which encourages Innovation and talent within the workforce. Delta Pacific company, had a very successful run, since the 1970 right up to mid 1990s, this consistent performance had at its basis superior development and sales of Technology which was not met by competition at a global level, leading to a sense of complacence in DPC and a tendency to rest on it's laurels. The major challenge that DPC faces presently is of successfully implementing transition from the traditional to the modern, dynamic, global environment and culture. This can be done by adopting Kotter’s model of change.

With extensive progress witnessed within the IT sector, which is the segment our organization operates within, the requirements of customers have undergone a major change. This has also resulted in advent of fresh competition from global markets. Considering the current scenario, the requirement for end to end solutions seem to be highest on the list of customer demands within our sector, making a parallel diversification into the software market should enable us to tap into this emerging opportunity, to capture substantial market share. . We need to include software and knowledge base solutions integrated into information management systems. This is the perfect time for making a foray into the IT consultation market, which is a huge draw presently. This can be achieved through the undermentioned plan:

  • Build the team – The change in product requires a strong technical team, therefore, we need to ensure fresh high quality talent with innovative ideas, and requisite talent is recruited. The existing technical staff need to be apprised of the situation and all members meeting the criteria for the new software development should be moved to higher positions within the new product to manage the fresh talent. Within the sales team, the members capable of adapting to change quickly with excellent marketing skills, need to be put in charge of the sales of the new product, with fresh talent beneath them, and old sales staff working parallel to them to aid the transition. The sales and marketing managers need to understand the importance of leading the team, effectively and delivering excellent results by keeping them motivated. The leaders need to be focused on the results to be achieved while, charting a roadmap for the team to be able to achieve the required results. Effective utilization of input data of customer feedback and implementing the required control to change in plan, should be a part of any transitional management. The technical managers are an important profile for the organization considering the dependence on the supremacy of the product for their success in the Global Arena. Technical managers therefore should understand the requirement for innovation as well as ideas which require out of the box thinking along with talent. The manager should be highly motivational as creativity requires motivation as a primary input.
  • Get the vision correct – It is essential to inform all employees of the change and convince them it is for the best of all confirmed, to involve them in the change by active participation right from the planning stage. The aim is to ensure growth of the organization, and this shall lead to career growth for all connected with the organization. They are necessary for the success of the transition, for the change to happen smoothly without any obstacles and so that we can hit the ground running. All Sales staff can be trained by the time the product is rolled out. A cross functional team for technology development with sales can help match the product to customer requirements perfectly. This will ensure involvement of the sales team with production making them familiar with every aspect of the product, which will facilitate better marketing. Feedback to production will help them modify the product in initial stages to satisfy customer demand and beat competition. Considering the shift in product and its marketing strategy it is very important that the marketing team and the Salesforce be changed into a cross functional unit to be able to better meet customer requirements, as well as optimize sales.
  • Communicate – Communication within the organization needs to be opened up by creating fresh channels of communication which flow in parallel as well as, perpendicular manner right up to top management. During the transition period swift identification and reporting of deviations can result in immediate control through quick action from the required management. This requires multi-directional flow of communication, without barriers created by hierarchy. The leader of the organization is always responsible for the organization and carrying it forward with implementation of a well-planned strategy and a focused approach, along with, effective management. He is a major motivating force exemplifying the attitude required for successful transformation and ensuring that the change becomes a challenge rather than a fear. The managers of each department of sales, marketing, as well as, technical are motivated by such a leader and many of the qualities as well as tactics are copied by these leaders. Each department implements the required changes and there is a perfect flow of communication within the organization enabling informed and strategic planning, as well as, control and subsequent action, in case of deviation.

  • Get things moving – All required delegation of responsibility should be implemented with awarding independent charge with accountability. The technical, production and sales departments should all be awarded adequate freedom for implementing the change, by educating them on the goals to be achieved and the accountability expected. A system of reporting needs to be introduced, through which the management can be aware of all activities and ensure goals are being accomplished within their given time frames.
  • Focus on short term goals – We need to understand the qualms of the employees regarding the change, hence, their targets can be broken down into smaller short term goals which do not appear too daunting and discouraging to those concerned due to apprehensions regarding their personal ability to make the transition with the organization successfully.
  • Don’t give up – The leaders need to all lead from the front and stay motivated while motivating all beneath them. Each leader required to be most effective at the level of his responsibility and accountability structure. Chief executive officer is responsible for the entire organization and accountable to the shareholders, his effectiveness is most prominent in strategic planning of the goals of the organization and implementation to ensure objective are successfully obtained. Along with this leader is responsible for performance of every other department and employee within the organization, through exemplary performance. Managers of each department need to be most effective in maintaining focus on the objective to be achieved by the department and ensuring the required output is achieved in the most efficient manner. Sales targets need to be met or exceeded, marketing strategy framed through adequate market research and analysis, technical developments should be innovative and superior to the products existing in the market. Therefore, each manager and leader needs to be effective, in achieving the respective goals, as well as, assure effectiveness of all below them.
  • Incorporate change – Successful implementation of the transformational model requires a dynamic organizational setup such as, adhocratic, led by a visionary and strategic leader who will ensure inclusive management and motivation through exemplary performance. The transformational change requires significant involvement of staff at every level of the organization, control structure being top down, with effective flow of communication throughout. It is essential to ensure that the entire organization understands the requirement for the transformation, the objective it is to achieve, the impact on every employee and the importance of the entire organization moving forward as a whole. For any change to be effective it is essential that the leadership be extremely exemplary to ensure motivation of the entire organization and successful implementation of the change at every level. Therefore top management which institutes the change has to be dynamic and not only initiate the change but be the change itself.

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