Managing People
Introduction
As per fiscal 2002, Ashland Inc. underwent several change procedures affecting the entire organization. Ashland, Inc. settled for a training technique in enhancing change measures as a result of consistent poor profitability levels encountered between fiscal1998 and late 2003. Changes were made without involvement of the entire organizational system resulting into high turnover rates and reduced productivity. Such occurrences have instigated the need for the organization’s to build competency in to avert cases of poor productivity experienced in the past years. Ashland Inc. is seen to employ great efforts to employ change management procedures amid declining profitability levels from key business units. To explore Ashland’s predicaments, various change management models such as Lewin’s 3-level model, 7-S Model, ADAKAR model, Kotter’s model and Change process model (Buchanam & Huczynski, 2006).
Analysis of the case under Lewin’s 3-stage model
Ashland, Incl. undertook a change process in the oil business which led to tremendous losses. Under the Lewin’s model, the freeze stage was not observed in Ashland Incl. change procedures. For instance, this is evidenced by Ashland move to enter in a joint ventured marketing, selling exploration of oil units, relocating corporate headquarters and restructured resource groups as high note. Seemingly, Ashland HR manager did not create conducive environment to institute the resulting changes among the workforce at gradual pace. As such Ashland Inc. experienced a tremendous turnover. Similarly, transition level of the Lewin’s stage was marred by the perceived confusion created by fears by the unanticipated sudden change of things. For this reason, some employees chose to leave the company hence the witnessed huge turnover rate and consequential performance levels decline (Buchanam & Huczynski, 2006). Poor implementation almost resulted into the organizational breakdown to an extent of temporarily shutting down Ashland Inc’s operations in the West Coast. As a result, Dwight had to undertake a program to establish a competency in change management in order to deliberately revive the organization. A meeting was organized with the executives leading to initiation of change management series for the HR, Distribution management team and the project managers. Refreezing under the Lewin’s model of the Ashland Inc’s business was achieved since the company stabilized again and set up a new approach to change management. With this improved implementation, the company moved from the low productivity levels to higher levels of performance.
Analysis of the case under 7-S Model
�Re-structuring” of Ashland through the adoption of GlobalOne project built a competent change management approach. Formerly, the company style of operation never involved the employees or the staff in any change process, instead, dictatorship was applied. With this restructuring, communication was implemented and employees were made aware and prepared in advance for any organizational changes. This facilitated the entire organization to adapt to the change culture and the organization to adopt a shared value. 7-S model is well applied under Ashland operations due to their SAP implementation through the formation of project team called Global One which was to undertake world-wide deployment. Such an undertaking helped the Ashland to make a collective overhaul on the company (Buchanam & Huczynski, 2006). One of the �strategies” applied was �system training’ which forced Ashland to recruit a specialist certified in change management procedures Under the this model, the values were �shared” in the �strategy implementation” owing to the Dwight plus the leadership team efforts to convince the manager of SAP project. Similarly, the model was evident as Ashland undertook an initiative in total rewards aimed at redesigning of incentive and compensation programs. Due to these changes, other readjustments occurred with introduction to leadership tools of Ashland Inc’s CEO Jim O’Brien. Using those leadership tools, the C.E.O was able to identify his own champions. In collaboration with the HR and communications they formulated a plan targeted to the change sponsors.
Analysis of the Case under ADAKAR change model
Under ADAKAR model, Ashland adopted training system courtesy of SAP project in an attempt to initiate �awareness” for change procedures. This was to go along way beyond what SAP consultant termed as change. As a result, Ashland recruited a certified change specialist for the GlobalOne team in an effort to arouse change �desire” among stakeholders. However, this training did not cater for change resistance understanding, creation of a knowledge body on expectations or reinforcing the same. The GlobalOne also lasted for two weeks only. Ashland wanted to know why Change did not succeed and understood that change management structure was necessary within the project. It was therefore necessary to adopt GlobalOne regionally and also involve people who were embedded in the businesses entrusted with the change procedure realization. Huge investments were done on training programs. All the staff had to undergo a 3-day training program. Later, all the directors followed suite in 1-day training in executive version of program in change management. With this undertaking, Ashland became fluent in its change management within their meetings (Buchanam & Huczynski, 2006).
ADAKAR model allowed ECM to establish training sessions for the executives, supervisors, intact project teams, employees and managers in order to initial change �knowledge”. Similarly, the training sessions availed specific sponsorship responsibilities for the executive leaders. In addition, the ADAKAR model approach allowed for certification programs which were taught by Prosci and delivered to senior and mid-level managers. As a result of these trainings, Vonda Melton and Mark Lambeth were certified as trainers of Prosci methodology. Competency building was evident when Peter Rijneveldshoek became the president to Ashland Europe. Peter requested all the 200plus managers to attend training on change management. However, these trainings did not impact the substantial and competent knowledge targeted among consultants. Similarly, it resulted into confusion to the folks (Buchanam & Huczynski, 2006).
Case Analysis under Change Process theory and Implication under Kobler’s Ross Curve
Ashland’s change process between fiscal 1998 and 2003 did not involve the entire system in change implementation actions. According to change process theory, management should have involved everyone within the organization to avoid resistance which eventually led to high turnover and reduction in performance. Ashland’s formerly dictated changes and the employees only hoped for the best after implementation. Under such condition, change theory was not adhered to, since its dictates that any change undertaken must involve the entire organizational system (Buchanam & Huczynski, 2006). Actually, 5years ago, initiating change within Ashland only require the change initiators to dictate something and possibly it will be done. This is as a result of perceived intimidation among the then juniors. As drawn from Kobler’s Curve, no one had an opportunity to air any opinion, objection or suggestions. The initiating group was final. Due to devastating repercussions of the then change approach, the management established training sessions for the whole organization in preparation of anticipated occurrences.
Analysis of Ashland under Kotter’s Model
According to Kotter’s model, Ashland would have avoided the rubbles of 1998 and fiscal 2003 change implementation if they had applied the eight steps in managing. The change initiators used to dictate, and the workforce had no opinion or objection. For instance, this is observed in the sale of oil, refining and coal business plus corporate headquarters relocation. As a result, decline in performance were experienced plus huge unwanted turnovers. Kotter’s model second phase was not adhered to since the organization was not involved in the implementation decision. If the entire organization was involved, then even the 3rd stage of vision creation would have been achieved since the perceived resistance could have been averted. Communication regulation demonstrates dictatorship where the change initiator only passed the information on already implemented change for rubber-stamping reasons (Buchanam & Huczynski, 2006). At the same time, the organization had only to agree and hope for the best. Better communication should have been applied in the 4th phase according to Kotter’s model. Constraints or obstacles to change in the 5th phase would not have been experienced if proper communication was done. In line with the 6th stage of this model, Ashland workers could have been prepared probably through proper communication or preparation to organize them for the change. With such prior preparations, aligning with 7th stage of Kotter’s model, proper and successful change process would have been reached as the management had purposed. Lastly, with proper planning and training, effective change culture would have been built among the employees creating friendly environment for any change that Ashland would have undertaken.
Conclusion
From the above case analysis, it’s evident that change management models are in high application in business. Ashland has been linked to the management models largely in its operations. If Ashland had consistently aligned and fulfilled most of the requirements under these models, the results would have been tremendously great and attractive. Failures and rubbles experienced in the past years, for example in 1198 to 2003 were as a result of poor change implementation and implementation. For this reason, every organization must apply effective change management procedures by involving employees or other stakeholder from initiation procedures to execution level. Poor change implementation made Ashland experience resistance from the organization leading to high staff turnover and reduced productivity (Buchanam & Huczynski, 2006).
References
Buchanam, D. & Huczynski, A. (2006). Organizational Behavior with CW Gradetracker Student Access. London, U.K: Pearson Education publishers.