Assignment 2: Stories of Change Case Analysis 1
HP
Scale
●
●
Scope
●
●
Depth
●
IBM
Kodak
Large/organization ●
al due to the
merging of two
companies.
This is most
challenging because
inheriting more
resources that may
be difficult to
●
handle.
Small/peripheral;
started with David
Grossman who
recognized the
benefits of the
internet and its
application for
business within IBM.
Least challenging
because Grossman
was adding a new
product line (ebusiness).
●
Broad/multidimensi ●
onal. Fiorina
focused on
changing the work
culture of HP upon
the merging of
Compaq.
●
Most challenging:
the impact of
revamping company
culture with
existing culture
affects multiple
dimensions in the
change process (i,e.
Structure)
Specific/narrow; goal
was to adopt and
expand web
technology helping
IBM to the “internet
era” (Palmer, 2009).
Least challenging.
IBM specifically
focused on launching
into the internet age.
●
First-Order;
Changing HP work
Second-order; IBM
modified original
●
●
●
●
McDonald's
(McD)
Large/organizati ●
onal;
●
implementation
of launching into
digital
technology and
abruptly ending
traditional film. ●
Most
challenging
because Kodak
is changing their
business model
entirely.
Small/peripheral
McD focused on
existing resources
to revamp their
business model
rather than
expansion.
Least challenging
since McD
focused on adding
a new product line
(healthy foods)
and readjust
business model
based on old
practice (“back to
the basics with
customer service”,
Palmer 2009).
Broad/multi●
dimensional;
organizational
strategy and
changed
structure by
cutting
dividends.
Most
●
challenging.
Kodak changing
their production
to digital
technology
impacted their
structure,
process, and
human
resources.
Narrow/specific.
The goal for McD
was to have menu
items relatable to
the consumer and
improve the
quality of their
services.
Least challenging.
McD recognized
that expanding
their business will
not address
internal issues (i.e.
unhealthy foods)
therefore the
changes were
necessary.
First-order;
switching from
First order: offer
healthy food
●
●
●
Continuity ●
●
Direction
●
culture to create
“synergy” (Palmer,
2009) of both
companies.
Second-order; Hurd
undid radical
●
changes and handed
back clear
direction/responsib
ilities with
managers resuming
focus on efficiency
and execution.
The first order is
least challenging
because Fiorina was
specific on what
needs to change.
Implementing the
new cultural vision
for HP was difficult
because it
challenged existing
norms.
mental modules
related to
communication style
between staff and
executives.
●
Most challenging since
IBM did a
“Readjustment to
compensation”
(Palmer, 2009).
●
Cutting the CEO
bonus to close the gap
between staff and
executives. Difficult
to change this mental
module and norm.
traditional film
products to
digital
●
technology.
Second-order;
downsizing
facilities and
reducing
employees.
Most difficult
●
because the
change in
implementing
new business
was “half
hearted” barely
giving assurance
to their
employees &
stakeholders
(Palmer, 2009).
items relatable to
the consumer.
Second-order:
Offer healthy
options such as
salads. Increase
the customer
service
experience.
Least challenging.
McD decided to
add new menu
items and improve
customer service
and menu variety.
Radical/discontinuo ●
us. Fiorina was
unable to
communicate HP’s
vision post merger.
Most difficult:
●
because the
company was
changing the vision
of what HP is
known for by
challenging norms.
Incremental/evolution ●
ary. IBM extended
communication
amongst executives
and staff.
Able to share ideas
multidimensionally
within different
departments
internally making this
endeavor least
challenging..
Discontinuous; ●
Kodak abruptly
made the
●
decision to
change business
from traditional
film to digital
technology. This ●
radical decision
was challenging
because this
meant changing
core business
lines.
Incremental/evolu
tionary.
McD wanted to
get “back in
touch” (Palmer,
2009) with the
consumer needs.
Least challenging
since McD
focused on
evolving their
business into
healthy food
options.
Changes occurred ●
from top down. The
changes impacted
efficiency of HP
execution in sales.
Bottom-up: Grossman ●
and Patrick campaign
and effort for web
technology succeeding
in bridging IBM into ebusiness.
Topmanagement
made the
decision for the
changes.
Top-down;
management
made the decision
to make internal
changes using
existing resources
●
Mode
●
Most challenging
because the
changes occurring
from top down can
be met with
employee
resistance.
●
●
Speed
●
Top-down: Palmisano ●
changing management
style by “closing the
gap between
executives and his
team” through
●
readjusting
compensation and
sharing ideas using
“jams” (Palmer, 2009).
Unfortunately,
the transition
plans were “halfhearted”
(Palmer, 2009).
Management
●
did not reassure
employees
regarding the
transition which
makes this
change most
challenging
(employee
resistance).
(i.e. stores) and
focusing back on
McD value of the
company which is
the consumer.
Making the
decision as an
executive to
change the
business direction
is most
challenging but
McD was able to
see growth in
business never
seen before (i.e.
women
consumers opting
for fresh salad
options).
Episodic. When
●
CEO Fiorina was
ousted by HP, the
new CEO Hurd
reverted back to
HP’s old culture
that thrived for
them.
Least challenging.
CEO Hurd was able
undo his
●
predecessor’s
changes and HP
was able to resume
normal business
effectiveness.
Continuous. IBM
displayed constant
change of business
through
communication and
shared ideas which
increased their
innovation potential
with e-business and
management style
Least challenging
given the drive for
innovation up the
hierarchy chain.
Continuous.
●
There was no
defined start or
end point for the
transition.
Kodak went
ahead and
downsized
facilities and
●
employment
despite
concerns from
stakeholders
and experts
making this
most
challenging..
Episodic. McD
clearly defined
their change
approach step-bystep with their
“Plan to Win”
strategy (Palmer,
2009).
Least challenging.
The shift from fast
food serving only
unhealthy foods
radicalized McD’s
to offer healthy
foods per
consumer
preferences.
Fast/concurrent.
●
Fiorina’s vision
required multiple
changes in how
sales were
conducted with the
PC department
Slow/sequential. IBM ●
planned and
implemented multiple
projects at the same
time but accumulated
interest with the web
technology project.
Fast/concurrent ●
. Didn’t heed
warnings from
stakeholders
and experts
●
quickly making
the executive
Slow/sequential.
Using the “Plan to
Win” (Palmer,
2009).
Focused on
healthy food
options first
●
●
●
●
upon acquiring new ●
staff from post
merger.
●
Fiornia expected
changes to occur
smoothly during
post-merger but the
quick change in
vision was not
realized by other
staff and met with
resistance (most
challenging).
Increased shared ideas
through innovation.
Least challenging.
IBM already has a
“boundaryless” culture
making it easier to
share ideas
multidimensionally.
●
decision to cut
dividends and
resources in
order to stay
competitive
with other rival ●
companies.
Most difficult as
Kodak
executives were
hasty with their
decision despite
expertise
concerns.
before switching
the focus to
training staff on
quality customer
service.
Least challenging:
McD has an action
plan and strategy
where to begin
making changes
internally (i.e,
health food)
before adding
more changes (i.e.
customer service).
How did the analysis above confirm or change your initial assessment of challenges managing
these changes?
1) HP: Per my assessment above, I was surprised to see that this change was episodic.
HP’s Fiorina believed that obtaining resources from Compaq also meant changing HP’s
culture and vision. When Hurd resumed normal operations and undid Fiornia’s change
framework, HP was able to be profitable using the existing organizational framework
prior to the merge.
2) IBM: My assessment for IBM did not change my initial assessment but rather confirmed
IBM’s culture of “boundaryless” (Palmer, 2009) across different departments. Different
experts worked together to fuel innovation and pave the way for IBM to incorporate ebusiness. Additionally, IBM also encouraged facilitation of innovation gathering shared
idea’s through “jams” (Palmer, 2009) showing that this company can handle complex
changes.
3) Kodak: The analysis above did not change my initial assessment for Kodak. Kodak’s
change framework involved complex changes including change of vision, product,
human resources. The only solution they projected was cutting dividends and increasing
capital in digital technology without expliciting stating start and endpoints leaving experts
appalled and employees fearful of no assurance for their jobs.
4) McDonald’s: The analysis above changed my initial assessment because although McD
driver of change was due to the institutional environment, the complexity of this change
was handled effectively by executives making the decision to focus on internal changes
rather than expansion.
Resource:
Palmer, I., Dunford, R., Akin, G. (2009). Managing Organizational Change Second Edition. McGraw Hill.