National University of Singapore NUS Business School Dept of Management and Organisation BMA5405: Managing Change Session: Instructor: E-mail: Office location Class location Semester 2, 2012/2013 Visiting Professor Stephen Colarelli scolarelli@gmail.com TBA TBA Objectives This course aims to: Deepen your understanding of the nature of organizational change Increase your knowledge of the theoretical frameworks that can be used to think about and analyze change, and build your ability to apply those frameworks Provide some insights into the processes of organizational change Sharpen your skills for leading, managing and implementing organizational change Course Philosophy There are many ways to learn. I believe that students can get the most learning when they combine reading, reflection, discussion, doing, and learning from others. Much of our class time will be spend discussing the readings and cases. You will also have the opportunity to work together to do a comparative analysis of successful and unsuccessful organizational change. Textbook and other resources The main text is: Managing Change: Cases and Concepts by T. Jick and M. Peiperl. We will use the 3nd edition, published in 2010 by McGraw-Hill. Cases from the text will be supplemented by others that depict change situations. Other reading materials, such as journal articles and chapters from other books, will be assigned. The articles are available for download from e-reserve in IVLE. Course description The course is designed around six modules: 1. 2. 3. 4. Forces for change in organizations and the nature of organizational change Vision for organizational change Strategies for implementing change Recipients of change, individual reactions to change 1 5. Personal aspects of leading change 6. Continuous change in organizations Schedule We will take about two class sessions (two weeks) for each module. Module 1: What is change? Why change? Types of change Levels of analysis Forces for change Different theoretical approaches to change Assignment 1a: Readings: Introduction Forces for change The 12 different ways to innovate Re-structuring the mature organization Cases:1 Change Classic: Changing the culture at British Airways British Airways update, 1991-2000 1. What was life like at the “old” British Airways? What was difficult about making change? 2. What were the critical factors in its successful transformation? 3. Will it be harder or easier to make future changes (such as cost cutting)? Apple: From the Apple II to I-tunes, I-pods, and I-pads (find your own sources)*2 1. Draw time-line charts of Apple's growth (revenue, number of employees), share price, and successful and unsuccessful product introductions from the beginning of the company to the present. 2. What were the critical change points? Discuss the larger context of these points and explain why they were critical? 3. What do you think enabled Apple to change, adapt, and prosper over the years? Readings: Has strategy changed? Case: Haier: Taking a Chinese company global 1 Students are expected to write up an analysis of one case per class. There will be some flexibility in what cases we will use--depending on the size of the class, interests of students, and quality of discussions. For example, half of the students may work on one case, while the other half may work on a different case. Final approval rests with the professor. 2 Cases and readings with an asterisk (*) can be less formal. Find your own sources. Some we may pursue; others we may not. I will give more specific directions in class. 2 1. Why was Haier so successful in China? 2. Was Haier’s decision to globalize into developed markets early on a good strategy? 3. Can Haier build on its success in niche products to become a dominant global brand in highend white goods? 4. Is Haier’s “two thirds” strategy a viable or wise approach? Assignment 1c: Readings: Kotter, John P., “Leading change: Why transformation efforts fail” Harvard Business Review, Mar-Apr 1995:59-67. Available on IVLE e-reserve list. Case: Change failures. Choose one and report on it. Find your own sources. Google in China* HP under Carly Fiorina* MySpace* Yahoo* An example of your own choice* Questions: 1. Provide a narrative overview of the failed change(s). 2. Why did the company fail in it change effort? 3. If you had been in charge, what would you have done? Assignment 1d Readings: Rethinking the social responsibility of business The collapse and transformation of our world Case: GlaxoSmith Kline and AIDS 1. What would you do if you were in Garnier's place at the time of the end of the case? Other cases to discuss, if time. Tom’s Shoes* Kallista Alam and deforestation in Sumatra* Chevron in Ecuador* Case of your choice* Module 2: From vision to reality Visions: bogus, or necessary? Process of creating and communicating a vision Using the vision to inspire change What else do we need besides a vision? Assignment 2a: 3 Readings: Changing the game The vision thing From bogged down to fired up Case: Workplace Safety at Alcoa (A) 1. 2. 3. 4. What was Alcoa's CEO's vision about workplace safety? How did he (and others) communicate that vision? Was it an effective vision? Why or why not What were the effects of that vision? Other cases to discuss, if time. Yingscape and Yangsearch Bob Galvin and Motorola Merrill Lynch Assignment 2b Readings An improvisational model for change management The quest for resilience Creative thinking* Case: Charlotte Beers at Ogilvy and Mather Worldwide (A) 1. 2. 3. 4. What is Charlotte Beers trying to accomplish as CEO of O&M Worldwide? What is your assessment of the vision? Evaluate the process by which Beers and her team created the vision What are the key challenges that Beers faces, at the end of the case? Module 3: Implementing change, keeping the context in mind Culture Psychological contracts Social compacts Models of change implementation Processes for managing change Assignment 3a: Readings: Implementing change Organizational frame bending… Why change programs don't produce change Case: Marconi plc 4 1. How difficult and complex are each of the five issues facing Mike Parton in January 2002? What is the toughest to manage? 2. Is it easier or harder to try to implement change in a time of crisis like Marconi? 3. How effective was Parton's management conference for helping to change (and save) Marconi? 4. What else should Parton have done to institute change—at the conference and otherwise? Assignment 3b Readings Changing the deal… Reading: Strebel, Paul. “Why Do Employees Resist Change?” Harvard Business Review, May-June 1996: 86-92. Available on IVLE e-reserve list. Case: Leading Culture Change at Seagram 1. 2. 3. 4. Why did Seagram need to change? Why did it use a values based approach? How well has the change been accomplished, according to information provided in the case? How would you respond to the challenges listed at the end of the case? How feasible or important is it for a multi-national and multicultural organization to have one set of values worldwide? Module 4: Recipients of change Responding to changes that one has no control over The role of politics in change Learning to anticipate and cope with change Assignment 4a Readings: The recipients of change Jeanie Daniel Duck, “Managing Change: The Art of Balancing” Harvard Business Review, Nov-Dec 1993: 109-119. Available on IVLE e-reserve list. Case: Donna Dubinsky at Apple Computer 1. Why was Donna Dubinsky initially successful at Apple? 2. Place yourself in Dubinsky’s position. Why did she respond the way she did to the JIT proposal? 3. What do you think she should have done differently and why? Be specific. Assignment 4b Readings: Back to square zero Managing to communicate Changing the deal while keeping the people Case: Wellcome Israel 5 1. 2. 3. 4. What is Ofra Sherman’s predicament? How did she get into it? How would you evaluate her actions to date? What is likely to happen next? What, then, should Sherman do? Other cases to discuss, if time. Emilio Kornau Mark Margolis Kerstin Berger Module 5: Leading change: Personal aspects Value-based leadership Expectations of change leaders Managing the personal side of change Assignment 5a Readings Bob Knowling's Change Manual Converting Middle Powerlessness... Case: Walt Disney's Dennis Hightower 1. 2. 3. 4. What challenges does Dennis Hightower face in his new position? Prepare a detailed action plan for Hightower to pursue over the next 3 months. Evaluate the pacing and sequencing of Hightower's actions from 1988 to 1994. How would you evaluate Hightower's approach to bringing about change in his organization? 5. What should Hightower do about the apparel business? 6. Learning from Hightower's experiences, what do you think are some of the challenges of building a transnational business? Assignment 5b Readings: Graham, Ginger L. “If You Want Honesty, Break Some Rules.” Harvard Business Review, Apr 2002: 42-47. Available on IVLE e-reserve list. Leadership for Change Cases: Vinesh Juglal: South African Serial Entrepreneur 1. 2. 3. 4. How did Vinesh get where he is? How well does he respond to challenges? How does he handle change? How successful do you find Vinesh? What are your criteria for career success? Given the changes in the South African context, would his kind of success be possible today? 6 5. What should he do with the DCC Campus? To maximize social value? To maximize monetary value? How compatible are these two goals? Given Vinesh's experience, what kind of decisions is he likely to make? Rosabeth Moss Kanter's tenure as editor of the Harvard Business Review* 1. 2. 3. 4. 5. Give a brief history of her time as editor of HBR. How would you describe her style? How did subordinates react to her? Was she an effective leader and change agent or not? What does this episode say about knowing and doing? Module 6: Continuous Change Change as a constant Learning organisms, learning organizations Assignment 6a Readings: Introduction to module 6, Continuous change Seismic Shocks and Systemic Shifts Bringing life to Change Case: Singapore Airlines: Changing to stay ahead 1. What have been the key factors behind the success of Singapore Airlines (SIA)? 2. How has SIA’s success become vulnerable? 3. As the boss of ground crew at Denpasar and Manila, what advice would you give them? How would you respond to Denver’s complaint letter? 4. Which of the two approaches at the end of the case would you support? Why? What do world class organizations need to do to stay ahead? Assignment 6b Readings: Cracking the Code of Change Unlocking the Mystery of Effective Large-scale Change Case: Pick a company of your choice that is a good example of undergoing effective continuous change (e.g., Amazon, Google, Monsanto).* 1. Give a basic chronology of the company (growth, value, reputation, products, and key transitions) from the beginning of the company to the present. 2. Describe and analyze its continuous change processes? 3. Why do you think enabled the company to change, adapt, and prosper over the years? Learners’ responsibilities 7 Each change incident can make you better able to meet the next one, if you learn from it. Using the same principle, this course takes an experiential, interactive approach. You will assume the role of a change agent or change manager, and think and act accordingly. To gain the most from this course, it is imperative that you be prepared for all classes. You should have completed the cases and readings and other assignments for the week, before coming to class. You will be responsible for participating actively in case discussions, critiques, debates or project work. In terms of attitude, be willing to question, think critically and learn from others. Evaluation Preparation and participation 30% Case analysis 35% Project 35% A. Preparation & participation 30% You will be assessed on the quality of your comments, questions and contributions to class discussions and learning. B. Case analysis 35% This is to be done individually, and without any help from others. You are free to submit your analysis anytime before the deadline and are encouraged to plan your work schedule so that you will have enough time to complete the case analysis. Submissions must be done electronically on IVLE. Late submissions will be marked down substantially. Please remember to type your name in your document and to name the document as: (yourname)case.doc. No case gives complete information. You may have to make certain reasonable assumptions. State clearly what your assumptions are and be sure that you can defend them. Do not make more assumptions than necessary. In all your answers, be specific, refer to the facts of the case and be sure that you can justify your conclusions. Your analysis should not exceed 2500 words. Remember this is a word limit and not a requirement so your answers may be shorter than this. If you are not satisfied with your grade, you may ask for your analysis to be re-graded, giving detailed and substantial justifications for your request. Bear in mind that if I accept your request and your case is re-graded, it can be given the same grade, a higher grade or a lower grade than originally assigned. C. Project and presentation 35% In this assignment, your group is to conduct a comparative analysis of two similar organizations (broadly defined), where one changed successfully and the other did not (e.g., Google vs. Yahoo; Ford/Toyota/Kia vs. GM; Apple vs. Sony; Netflix vs. Blockbuster). The case should contain insights into the complexities of managing change and the difficulties that organizations and their employees face during change processes. 8 Requirements Based on your project, you will write a case study and make a presentation. Both are due at the last class session. In class, you should submit a hard copy of the report. You should also upload to the IVLE project workbin the following items: (a) the soft copy of the report and (b) any other materials you used during the presentation – e.g., slides. To write the project report, refer to the guide given below. Subject You will do an in-depth case study of two specific cases of organizational change (where one change was successful and the other was not), and present your findings to the class. Read widely and think about your own work experience to identify possible cases for presentation. Make sure that the cases you have selected are substantial and interesting. The case can be about any organizations that you read about from secondary sources such as newspapers, journals and the web. However, it might be helpful if both of organizations for your case are from the same industry and the period of time of change is roughly the same. The approach in this type of case would be to analyse the situation using relevant concepts and models, to draw learning points from the case. Project report (in the form of a case study) You may use the following questions as a guide to writing the case report. What are the organizations' backgrounds? (Make this brief. Any other information that is interesting but not directly useful to the case can be shown in an appendix). What were the changes about? Why did they take place? What did they aim to achieve? How were they planned? What were the organisational systems involved? Who were the main organisational members/units in this case? Concentrate on analysing how the changes were managed. What was done well and what could be done better? How would you have gone about making the changes? What are the main learning points from this case? A hard copy of the report should be submitted to me at the end of the last class session. Writing the report The main text should not exceed 5000 words. Aside from the main text i.e., the case, your report should also include a complete list of references naming all the sources that you used. You may also any other appendices you judge necessary. The reference list and appendices will not count towards the length limit. You may use any standard referencing and citation style: see http://www.lib.nus.edu.sg/lion/s/citation.html. Just be consistent – adopt one style and use it throughout. Another good writing reference is the booklet, “Writing with Sources” by Gordon Harvey of the Harvard Expository Writing Programme – go to http://www.fas.harvard.edu/~expos/index.cgi?section=resources and click on the link for “Writing with Sources.” Type your case using double spacing, one-inch margins and font size 12. Check grammar and spelling. 9 Credits At the end of your report, please give a short description how each group member contributed to the project. Presentation Plan for a presentation that lasts 20 minutes. This will be followed by questions from the class. Focus on the main points – don’t repeat everything in the report. You may use any format for the presentation: role play, debate, seminar, interaction with the class, etc. Be as creative as you like. Bring a copy of whatever you have read in preparation for this case, to class. Also bring interview transcripts and whatever data you have collected. You will need it to answer questions and verify facts. Grading Criteria for Presentation Clarity Ability of the group to draw learning points from the case Degree to which the presentation provoked further thinking and ideas General quality of the presentation. Enjoy working on the project and presentation! Academic honesty Please acknowledge all references and sources that you use in your work. This is not just good manners but also academic honesty. 10