Change is inevitable in an organization because of the dynamic nature of the environment where businesses operate. An organization must take new initiative and depart from the old ineffective practices (Nickols, 2016). In this scenario, the corporation is having an issue, which is evident through the increased turnover of employees and a decline in profitability. Top managers are creating more chaos and headaches on the solution without understanding the problem. Notably, there is a need to find the underlying cause of the issue, which the corporation is experiencing. The possible cause of the issue in the scenario is mismanagement, where employees are not motivated. Thus, senior managers must understand the underlying cause and apply a change model that suits the problem.
The appropriate change model
The change model suitable for the corporation is Kotter’s eight-step process. Using Kotter’s eight-step, the objective is to try to transform the corporation into an operational one. For the sake of this failing corporation, there is no room for individuality, and the model will aid the corporation in working as a team. Kotter posits that a business organization should use its underlying structures and tools in managing the change efforts (Kotter, 2017). One of the changes required at the corporation is co-operation. This will involve making sure that the senior managers and employees are working together in solving issues within the corporation.
Kotter’s model provides a framework that can help the corporation promote the relationship between managers and employees using the following steps.
- Creating a sense of urgency
- Form a powerful coalition
- Creating a change vision
- Communicate the vision
- Remove obstacles
- Create short-term wins
- Build on the change process
- Anchor changes in corporate culture
A plan of action for the corporation
The first phase is creating a sense of urgency. It involves stakeholders examining and discussing issues or major opportunities (Kotter, 2017). One of the main factors during a change process is getting everyone to the mood of change. Discussion on threats posed by employee turnover rate as well as the opportunities that the corporation stands to gain are more likely to inspire employees to demand change. The process would increase production and stop the confusion between top managers. In addition, the move will help trigger the initial motivation within the corporation to get things moving in the right direction. Senior managers and employees working in the corporation will see the need for change.
After identifying the crisis, the corporation should major on the second step, “form a powerful coalition.” It involves building a team that would spearhead the intended change (Kotter, 2017). This is where the corporation should bring together a powerful group like senior leadership, human resource managers, and employees, among others working to initiate the transformation by developing realistic and achievable objectives. The third step is creating a change vision to spearhead the process (Kotter, 2017). Change usually comes with great ideas and solutions floating around. Connect the ideas generated to a vision that people can use. The corporation’s vision should involve promoting stakeholder relationships by creating a conducive working environment that favors the employees.
The fourth step involves communicating the set vision (Kotter, 2017). Communication plays a major role during the transition. The vision of fostering relationships, motivating employees, and adopting any change within the corporation should be communicated more often to move the employees in the same direction. For instance, the CEO should have involved the employees in the change process of replacing the president of sales, directors, and sales manager. Communicating the change allows an organization to discuss and align the stakeholders in the same course. Thus, communicating the vision will make sure that every stakeholder within the corporation works towards creating a conducive environment.
Moreover, the fifth step involves removing obstacles. Removing obstacles can motivate the employees who want to execute the vision of the corporation and assist in pushing the change forward. Any obstacle to the adoption of the changes should be eliminated. The sixth step is creating short-term wins to motivate the employees in the direction of the change (Kotter, 2017). Most employees will not continue the long walk unless they see compelling evidence indicating that the journey is yielding some good results. In the absence of short-term wins, some employees would easily give up and join the people resisting the change. In this, the corporation would analyze the pros and cons of the objectives.
The seventh step involves building on the change process (Kotter, 2017). Based on this, the corporation would identify success factors to build on to facilitate the change process. The leaders of the corporation should use the credibility attained by the short-term wins to handle even bigger problems. They should focus more on who is promoted, hired, as well as how employees are developed. The corporation should recruit people who have the right skills that can help in solving its problems. For example, the sales manager should have team-building skills to promote good relationships among employees.
The eighth step is to anchor the changes in corporate culture. At this level, the corporation would integrate the system and make it a culture. There are factors that are important when integrating change in corporate culture (Kotter, 2017). First, a cautious attempt to show the employees how the new strategies and attitudes have helped improve success. The corporation should assist employees in creating connections. Second, the corporation should take ample time to ensure that new management adopts the approaches. The top managers of the corporation should adopt ways of creating a positive relationship with the sales team.
A solution to the scenario
Whenever a corporation is experiencing a problem, management and employees need a strategy that can aid in solving such a problem. One of the main problems with the corporation is employee turnover resulting in poor performance. The table provided shows the link between employee turnover and performance of the corporation. For example, when the number of the sales staff was at 20 the profit recorded was 28% whereas 12 sales staff recorded a 23% profit. First, the corporation should strive to offer competitive pay and benefits. Employees need to be compensated well to help cover standard expenses such as housing, food, and other utilities. Second, employees need motivation and recognition (Krøtel & Villadsen, 2016). The new managers and directors of the corporation should learn ways of engaging and motivating employees.
Most importantly, the corporation should develop a culture of teamwork. Upon the implementation of the above strategies, the corporation should expect a positive increase in profit as it retains more sales staff. The table below shows sales performance from July after integrating appropriate changes.
|Month||Number of sales staff||Sales/rounded ($)||Profits||Items per receipt|
The main problem with the corporation was employee turnover brought by the poor relationship between top managers and sales staff. Therefore, there is a need to restore the corporation using Kotter’s eight-step strategy. Kotter’s change model will help the organization develop and integrate changes in creating a good working environment for employees and boost teamwork. With these strategies, the corporation will retain the sales staff by improving its performance.
Kotter, J. P. (2017). LEADING CHANGE WHY TRANSFORMATION EFFORTS FAIL. Accountancy SA, 19-29. Retrieved from https://search-proquest com.ezproxy.trident.edu/docview/1937382081?accountid=28844
Krøtel, S. M., & Villadsen, A. R. (2016). Employee turnover in hybrid organizations: The role of public sector socialization and organizational privateness. Public Administration, 94(1), 167-184.
Nickols, F. (2016). Four strategies for managing change. Retrieved from: http://nickols.us/four_strategies.pdf