Contemporary Organization Evaluation 1 Contemporary Organization Evaluation Alexcia King May 19, 2021 GCU 615 Dr. Donald Leaver Contemporary Organization Evaluation 2 Background History on Dow Chemical The Dow Chemical company is an American chemical and plastics manufacturer. Dow Chemical is one of the leading suppliers of plastics, synthetic fibers, chemicals, and agriculture products. The Dow Chemical company was founded in 1897 by Herbert H. Dow (Tikkanen, 2021.) The company has been under scrutiny since World War I. The company created a mustard gas that was used in chemical warfare. During the Vietnam War it produced Napalam which is a jellied incendiary (Tikkanen, 2021). Dow also created the infamous Agent Orange. The Dow Chemical company has employs all over the world in over 150 countries. Major Change in Company In 2017, Dow Chemical merged with its’ competitor DuPont which two years later split into three organizations, Dow, DuPont de Nemours and Corteva. The merger was initiated by a fall in revenues, challenges in the agricultural and chemical industries and the potential to eliminate redundant operations (Forbes, 2017). Both companies experienced in decrease in revenue over the years because of low crop prices which led to a decrease in demand and falling oil prices (Forbes, 2017). Those are market challenges were able to be eliminated during the merger because Dow and DuPont share market overlap which gives an opportunity to eliminate costs. During this merger DowDuPont planned to focus on 3 key areas: Agriculture, Material Science, and Specialty Products. Stakeholders Affected by Merger Although the Dow-DuPont merger and split might have been good for business, it impacted employees in unspeakable ways. This author was fortunately able to experience the affects of the merger and split, in person. This author worked for the Wellness Center that Dow Contemporary Organization Evaluation 3 provided all its’ employees. During the merger, 10% of DuPont employees lost their jobs (Forbes, 2017). Furthermore, farmers were directly affected by this merger. The merger placed farmers at an economic disadvantage. The organization did not comment on the possibility of lays off but focused on the many jobs that would need fulfillment during the 3-way split. Dow’s Promise Dow communicated the plan for change for a few years. Communication about making Dow more economically resilient has been at the forefront of the company for a few years before implementation. Dow Chemical decided to cut 2,500 jobs globally, 700 of those cuts were right in the author’s backyard of Midland, Michigan (Jordan, 2016). The layoffs were temporary and only lasted during the 2-year merger of the company. Dow Chemical and DuPont believed that in the long run, the cuts would be worth it. Because Dow communicated the possibility of job reductions early on, the community was able to prepare for what was to come to retain talent. Dow was proactive in working with the state and local economic development organizations to try and retain as much talent as possible (Jordan, 2016). Dow and Saginaw Future Inc partnered together to create an online job portal to help match individuals with employers in the area (Jordan, 2016). Saginaw Future Inc and Dow also partnered with local organizations and held inperson and virtual career fairs and developed an entrepreneurship program. The Dow Chemical company was very forthcoming, thoughtful, and engaging when it came to their merger. Companies of this caliber rarely make decisions with the community in mind. Dow Chemical company proved their commitment to the community and their employees over the years, therefore when this change was announced, the community trusted that Dow would take care of them. The merger and split did produce jobs and increased the company’s revenue. Contemporary Organization Evaluation 4 Author’s Thoughts This author was able to personally see the change happen and knew people who were in lay off status. Those same people were able to find employee through Dow sister companies such as Dow Corning or Hemlock Semi-Conductors. When speaking with employees who were laid off, the common language that was presented to the worker was that of, we will be back. The employees knew this would be a temporary change that would create a sustainable future. This author believes that the open communication from the beginning was the key to a successful merger. Communication is a two-way street. Successful communication during the process of change is reflected in both parties (managers and employees) understanding the vision and being clear on the direction. A successful plan is written. Word of mouth can sometimes be misconstrued and taken out of context; a written plan takes away this problem (Heathfield, 2021). The plan must be given out well before the change is initiated. This allows people time to ask questions, offer input, and request clarification (Heathfield, 2021). The plan should be shared with as much information as possible, as quickly as possible. The last major point is that the communication plan should be proactive and not reactive (Heathfield, 2021). Dow Chemical exceeded all the above communication points. Furthermore, Dow Chemical used change agents and guiding teams outside of the organization to help the transition for employees run smoothly. A change agent is an individual who investigates, advocates, encourages, facilitates, mediates, advises, and manages change. Change agents know how to harness goals and activate an organization's vision (Levy, 2011). Some qualities of a change agent are helpful and creative. A guiding team is a group of individuals who are the social leaders of change initiatives. These are the cool kids that everyone Contemporary Organization Evaluation 5 wants to be like. The guiding team brings energy, excitement and are diverse in nature. The diversity creates buy in with the rest of the organization (Katie, 2015). Having employment agencies and the state to back a change initiative, places employees at risk of losing their jobs, at ease. Conclusion In conclusion, the change model that closely resembles what Dow Chemical did is the ADKAR Model of Change. The ADKAR model of change is great for leaders who want to allow their employees to feel included in the change process. ADKAR is an acronym that stands for Awareness, Desire, Knowledge, Ability, and Reinforcement (Connelly, 2020). The ADKAR model of change is goal oriented, and people orientated so employees feel like they are a part of the big decision making. Kotter's 8 Step Process is great for leaders who deal with resistance to change. Kotter's process includes, creating a sense of urgency, building a core coalition, developing a strategic vision, involving everyone in the plan, reducing obstacles, focusing on short-term wins, keeping the momentum going, and add some stability (Connelly, 2020). This process includes a plan to navigate communication and prepare employees for what is to come. Contemporary Organization Evaluation 6 Reference Page Connelly, Mark (September 2020). ADKAR: Simple, Powerful, Action Oriented Model for Change. Change Coach. Retrieved from https://www.change-management-coach.com/adkar.html Forbes (June, 2017). Revisiting Dow- DuPont Merger Motivation as Companies Win U.S. AntiTrust Approval. Forbes. https://www.forbes.com/sites/greatspeculations/2017/06/23/revisitingdow-dupont-merger-motivation-as-companies-win-u-s-anti-trust-approval/?sh=275f53ab6355 Heathfield, Susan. (February 2021) Communication in Change Management. The Balance Careers. https://www.thebalancecareers.com/communication-in-change-managementJordan, H. (June, 2016). Layoffs will make Dow Stronger, Promise Help for workers. Mlive. https://www.mlive.com/news/saginaw/2016/06/business_leaders_prepare_to_he.html Katie. (March, 2015). Change Management - Step 2: Build a Guiding Coalition. ViralSolutions. https://viralsolutions.net/change-management-step-2-build-a-guidingcoalition/#.YJH3oyX3YlQ Levy, J. (Sept 2011). Seven Roles of a Change Agent. Enclaria. https://www.enclaria.com/2011/01/06/seven-roles-of-a-change-agent/ Tikkanen, A. (April, 2021). Dow Chemical Company. Brittannica. https://www.britannica.com/science/petrochemical
