OVERVIEW AND SUMMARY OF COMBINED CHAPTERS
● Topline:
o Chapter 5: What Changes? Focuses on the different categories of change, their implications and significance to
organizational culture.
o Chapter 6: Purpose and Vision: Focuses on the purpose or mission statement of an organization.
o Chapter 7: Change communication Strategies: Focuses on communication process and how gender, power, and emotion
affect change communication process.
● Chapters and Sections:
o Chapter 5: What Changes? Deals with change that involves an individual as well as the organization. Example: Yellow
Card for Thai Union.
o Chapter 6: Purpose and Vision: Deals with identifying the characteristics of an effective vision by applying different
methods and processes. Example: Purpose and Performance at Unilever
o Chapter 7: Change communication Strategies: Deals with key elements in the change communication process,
appropriate strategies for communication change, and range of different communication channels. Example: IBM’s
Script for Offshoring Jobs
BOX: CHAPTER 5 – WHAT CHANGE?
 Thai Union: World’s largest producer of canned tuna based in Thailand.
o $4.5 Billion dollars in revenue. 50,000 employees. Half of the shareholders and 90% of sales are from outside Thailand.
o Thai Union brand names such as: Chicken of the Sea in United States, John West in United Kingdom, Mareblu in Italy,
and Petit Navire in France.
o In 2015, the Associated Press (AP) issued a report accusing the company of exploiting slave labor in its shrimp peeling
sheds. Migrant workers from Myanmar, including children were working long hours for low pay in dirty and cramped
conditions and were in debt to labor brokers.
 Course related question: What changes did the Thai Union implemented in relation to the exposé by the Associated Press?
o The exposé by AP damaged the image if Thai Union. The seafood conglomerate was pressured by American companies
such as Costco, Walmart, and British companies such as Tesco and Sainsbury. The U.S. State Department downgraded
Thailand’s ranking on Trafficking in Persons to the lowest score. The European Union gave Thailand a “yellow card” for
fishing practices and threatened to ban its exports.
● Recommended actions:
o Canceling contracts with shrimp processors who exploit workers.
o Introduce “zero recruitment fee” policy, to prevent predatory labor brokers from exploiting migrant workers.
o Introduce “traceability” of all tuna
o Improve working conditions on fishing fleet
TABLE 7.3: BARRIERS to EFFECTIVE ORGANIZATIONAL COMMUNICATION
Table 7.3 - Barriers to Effective Organizational Change Communication
https://online.vitalsource.com/reader/books/9781264071579/epubcfi/6/32[%3Bvnd.vst.idref%3DChapter07]!/4/128/1:63[cha%
2Cnge]
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Table 7.3 – Barriers to Effective Organizational Change Communication depicts that communication’s process might appear
simple, but it is prone to errors arising on both sides of the exchange.
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Example: The Barriers to Effective Organizational Change Communication was experienced by a chief executive at HewlettPackard (HP), from the Billing Department – which eventually was sorted out by the Billing Department’s manager.
Recommended action:
o Communications should be open
o Relationships are based on mutual understanding and trust
o Interactions are based on cooperation rather than coemption
EXERCISE 6.3: CTHE ROLES OF VISION AT MENTOR GRAPHICS
● 1. Mentor graphic keeps changing their vison to react to market situation instead of having their own forecast beforehand.
● 2. It weakened the company since Mentor graphics were blinded by focusing on beating Daisy rather than focus on what
they can actually achieve.
● 3. From Table 6.7: Because Mentor’s vision was – too vague, inadequate, irrelevant, and unrealistic.
● 4. Vision was placed to encourage more innovative practices, but employees were unable to relate to the vision and the
innovative possibilities it suggested
● 5. Mentor Graphics became more influenced by external pressures over time. Later modifications of vision disrupted the
ability to make sound financial judgments and hindered change. Gerard Langeler was successful in communicating the
vision initially. He became the heroic leader of the organization. Mentor Graphics was not a “heroic organization” in the
since it did not have an embedded vision that was lasting.
● 6. Image – Director. There is a need for clear mission/visions to drive change linked to strategy and goals.
WSJ.COM
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Peloton Says U.S. Safety Watchdog Plans to Seek Fines Tied to Treadmill Recall, by Dean Seal, September 7, 2022, at 10:52
AM ET. https://www.wsj.com/articles/peloton-says-u-s-safety-watchdog-may-seek-fines-tied-to-treadmill-recall11662557550
Peloton, What Went Wrong?
○ Peloton Interactive, Inc: Public company, HQ in New York City, New York, and it was founded in 2012. 8,662
employees work for Peloton. It has over 5.9 million members and 2.33 million people subscribe to Peloton’s
connected fitness membership. $4.02 B in revenue in 2021. https://backlinko.com/peloton-users
○ Exercise Equipment Industry: Main competitors of Peloton are: Mirror, Equinox Fitness, SoulCycle, and Bitmovin.
Currently the exercise equipment industry is affected by Inflation, supply chain shortage.
https://www.akfit.com/blogs/own-your-fitness/supply-shortages-in-the-fitness-industry-why-is-my/
○ IHRSA (International Health, Racquet & Sportsclub Association), National Fitness Trade Journal.
https://www.precor.com/en-us/resources/5-fitness-industry-organizations-gym-operators-should-know
○ News: Peloton laid off 2,800 employees in February 2022 and its ongoing struggle with U.S Safety Watchdog.
○ Chapter Concept: Chapter 6: Purpose and Vision: I chose this chapter since the new CEO, Barry McCarthy, might
employee clearly set out purpose and vision to steer Peloton to a steadier water.
Recommended action: TABLE6.1 – Change Management Image, Mission, and Vision: Links and Focus
PODCAST
 Boeing will pay $200 million to settle SEC charges over 737 Max crashes, by David Schaper, September 22, 2022, at 6:39 PM
ET. https://www.npr.org/2022/09/22/1124617261/boeing-will-pay-200-million-to-settle-sec-charges-over-737-max-crashes
 My Title: Boeing Paid for Costly Mistake!
 Brief summary: Two 737 Max crashed in 2018 and 2019, killing 346 people. Investigators found that both crashes were
caused in part by flawed automated flight control system called MCAS (Maneuvering Characteristics Augmentation System.
The SEC (Security and Exchange Commission) charged the Boeing company and its former CEO, Dennis Muilenburg,
with "making materially misleading public statements" following the crashes.
 Example and Brief Company Info: Boeing, headquartered in Arlington, VA, is an American multinational corporation that
designs, manufactures, and sells airplanes, rotorcrafts, rockets, satellites, telecommunication equipment, and missiles. In
2021, Boeing recorded $62.2 B in revenue. Boeing has a market share of 52% while its main competitor, Airbus has a
market share of 48%.
 Chapter 5 – What Changes? This chapter applies to the vulnerabilities experienced by Boeing on their MCAS System on the
737 and what the company changed to address the issue so that it never repats.
 Recommended action:
o Chapter 7: Change Communication Strategies – this will address the need to be transparent and communicate,
which the Boeing CEO, did not do initially. https://www.npr.org/2022/09/22/1124617261/boeing-will-pay-200million-to-settle-sec-charges-over-737-max-crashes
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