Management of Change – Final Assignment
1. Executive Summary
This assignment is based on the proposed change scenario for PCCW, which underwent crises in the past, leading it to experience needed changes in its internal management and operations. As stated and discussed in the previous assignment, both external and internal factors were considered to be the major driving forces that encouraged the company to undergo such changes in its structure and culture. The proposed change scenario in the previous assignment was deemed a good recommendation for PCCW to cope with the demands of its customers and the demands from its industry. As such, a vision for the renewed organization would be emphasized in this assignment, focusing on the appropriate approach that can be used by the company in order to effectively implement its strategy.
In addition, aside from discussing the prescription for change for the company, this assignment would also discuss, present, and analyze the proposed actions to be implemented by PCCW. Such would include the discussion on the company’s organizational culture, importance of the change process, the business model to be used, the objectives of the strategy, and the time schedule needed. Such elements of the discussion would be needed, as they emphasize the main components of the change process to be implemented in the organization or company. At the end of the discussion, a conclusion would be provided in order to cite the limitations of the change program proposed.
2. Prescription for Change
2.1 Vision for renewed organization
It has been reported that an organization that has mastered change will develop a vision that will be a detailed, valid business model that can be achieved with a high degree of confidence because of the organization’s track record of change1. Based on this, it can be perceived that along with the changes that must be facilitated in the organization, a change in its vision must also be fostered. This means that PCCW wants to be ahead in the industry, not only in terms of the products and services that it offers, but also in terms of how it manages its workforce in the organization. After the implementation of the proposed change, the company wants to realize that it can maximize its full potential to further improve and develop as a tightly bonded organization that does not only focus on its image in the industry, but also focusing on how it would be able to provide a safe and convenient working environment for its workforce. Currently, the vision of PCCW is to become “committed to providing organizations with extensive connectivity and integrated global communications solutions, and act as preferred partners to bring their business to different countries in Asia, most particularly to China, which can take its business to other parts of the world”2. With the renewed organization, it can be perceived that aside from the focus of the organization to provide effective connectivity and means of communication to many different organizations, it also now includes the focus on providing an effective means of communication, improvement, and development to its own workforce.
2.2 Direction and Scope of Change
It has been emphasized that the term ‘mission’ is often used to express the purpose of organizations in order to distinguish and elaborate its overall aims and philosophy, through a short sentence or passage3, termed as the mission statement. The mission statement makes understandable the possible clear and realistic business objectives of the organization, defining its long-term vision in terms of what it wants to be and whom it wants to serve4. Thus, the role of the organization’s mission/mission statement in its strategic change management is that it sets the direction and trend for the organization to cope with changes. From this, it can be perceived that the macro view of the organization towards its proposed change is aligning its mission/mission statement with the plans, objectives, and philosophy of the organization. Aligning the direction of the proposed change with the mission/mission statement of the organization means that all political, economic, technological, and sociological factors must be given emphasis and consideration. Being proactive means that in order for the organization to effectively manage its coming crisis, it must be able to set goals and deadlines and focus on them5. Such goals and deadlines must therefore be in line with the external and internal drivers of change. On the other end, the scope of change involves the agenda of the proposed change program, and in stating the agenda of the organization, the 7S Framework or the Managerial Molecule made by McKinsey can be used. The 7S Framework is composed of 7 elements, namely, Structure, Strategy, Systems (Hard elements), Staff, Skills, Style, and Shared values (Soft elements). The Hard elements are strategy statements, organization charts, reporting lines, formal processes, and IT systems, which are directly influenced by the management. On the other hand, Soft systems can be more difficult to describe, less tangible, and more influenced by culture. Shared values is placed in the middle of the model because such values are central to the development of all the other critical elements. The organization’s structure, strategy, systems, style, staff, and skills all stem from why the organization was originally created, and what it stands for. The original vision of the company was formed from the values of the creators, thus, as the values of the organization change, so do all the other elements6. All the elements in the model are the scope or agenda of the proposed change because the formation of the new PCCW involves the change in organizational culture. Thus, it can be perceived that along with the change in organizational culture, change in values and other elements would follow.
2.3 Speed of Change
The approach to be used by the organization must be a step-by-step approach that would entail a gradual change implementation. This is because PCCW is still recovering from the large debts it had in the past. It cannot use a quick transformational change because PCCW must be able to carefully and effectively assess the measures and change programs that it would use in order to lessen the risks for mistakes and crises. Moreover, a gradual implementation of changes must be employed in order to carefully assess the needed resources for each change program that must be done. In order to illustrate the speed of change, Lewin’s 3-Stage Model of Change or the Unfreezing-Change-Refreeze Model would be used. In the Unfreezing stage, the previous beliefs of the workforce or employees of PCCW are said to be the source of anxiety of the organization, thus, determining the source of crises. The Change stage involves the change of the organizational culture, along with the beliefs of the employees. This stage involves the implementation of the change programs needed for instilling the needed change. The last stage is the refreezing stage, wherein new behavior, beliefs, and culture becomes habitual, thus, involving the development of a new self-concept and identity, and establishing new interpersonal relationships7.
3. Proposed Actions
3.1 Organizational culture and Its Importance in the Change Process
It has been reported that organizational culture is defined as the unique language, values, celebrations, history, and norms each organization has. At a deeper level, organization members create and/or are indoctrinated into unique beliefs and assumptions that form the basis for acting together. These beliefs and assumptions may operate at a conscious level, while basic assumptions such as those about human nature and human relations are more likely to operate at the unconscious level 8. Thus, in this sense, it can be understood that the organization’s culture depends on many factors, including the personal backgrounds of the employees and unofficial and unwritten goals and objectives9. Organizational culture is important in the change process of an organization because through setting a common and appropriate organizational culture, the organization would be able to help establish relationships among all the employees, facilitate effective communication in all levels of the company, and determine overall goals and objectives of the organization.
3.2 Business Model Chosen and Its Implications
The business model chosen for the change of organizational culture, vision, and mission of PCCW is the Loyalty Business Model. This business model is said to be used in strategic management in which the resources of an organization are utilized to increase the loyalty of the customers and its stakeholders in the expectation that the corporate objectives of the company are being met or surpassed. A typical analysis that can be associated with this business model is the fact that the improvement of the quality of a particular product or service would lead to customer satisfaction, thus, leading to customer loyalty, and in turn to profitability. In addition, this business model particularly emphasizes the strength of the business relationship between the company and its customers, wherein its strength is determined by the level of satisfaction of the customers with recent experiences, overall perceptions of quality, commitment of the customer to the relationship, and the bond that exists between the two parties10. In this sense, it can be perceived that the critical elements present in this type of business model include the customer, the organization itself, and the concept of loyalty and satisfaction. This is because the interaction of such elements determines the success of the organization in its industry. This model was chosen because it can be deemed that the customers of PCCW are also its primary customers. If the company is able to satisfy the needs and wants of its labor force or its workforce based on the products and services that it can provide, then it can be perceived that the company would be effective and efficient in satisfying the needs and wants of its customers in the market. Thus, in this regard, the satisfaction and loyalty that the workforce of the company can establish would be indicative of the type of relationship the company can establish with its overall customers in the market and in the industry. Based on this model, it can be predicted that the organizational culture that can exist in the company or organization would be a type of organizational culture conducive for the improvement, development, and communication of employees. This is because through loyalty and satisfaction, the company can establish a trusting relationship with its employees, thus, leading to success and internal harmony.
3.3 Desired Culture and Its Strategy of Change
The focus of the proposed change scenario of PCCW is on the establishment of communication means, such as through IT and IS, performance management and supply chain management. Based on such proposed change programs, it can be perceived that the desired culture for the organization would involve the effective cooperation and coordination of the employees in every level of management. This means that the communication process in the organization involves the different levels of management, from the top management to the middle level, and up to the lowest level of management in the organization. This is because communication must be facilitated in all parts of the organization in order to conceive, establish, and sustain a common organizational culture that would benefit the entire organization. From the past evaluations, it can be observed that the values of the current culture of PCCW are focused in the lower half of the scorecard, which emphasizes on the evolution, culture, and social contribution of the company. Given the proposed change program, the values of the desired culture will now be focused in the upper half of the scorecard, which involves the finance, fitness, and client relationships of the organization, being the arenas of basic business. This is the desired culture for the organization at present because it has been reported that when organizational culture is focused in the higher levels of consciousness, cultural transformation involves developing stronger systems and processes, thus, providing more attention to finances and money11. In essence, it can be emphasized that the focus of the values of the desired culture of PCCW in the implementation of the change program would provide more profits, customer satisfaction, and success of the company in its respective industry.
3.4 SMART Approach
The objectives of PCCW must be S.M.A.R.T, which stands for Specific, Measurable, Achievable, Realistic, and Time-Bound. Specific objectives mean that the objectives must be concrete, detailed, focused, and well defined, thus, for PCCW, it must be the objective that facilitates effective communication through using its own Information Systems that involves the different level of management, thus, helping to establish a new and improved organizational culture. Measurable objectives mean that the actions can be tracked and the standard can be used for comparison. The change in the organizational culture of PCCW can be measured through the change or the improvement of the overall performance of the employees, based on their performance evaluations. Objectives are achievable, thus, they should not be difficult to reach, making one motivated to reach them. In this case, the change in the organizational culture through effective communication and coordination of the employees in the company by using an improved Information Systems is in fact achievable. This is also considered a realistic objective because other organizations have already facilitated changes using IS, such as organizations in the United States and Europe. Lastly, the objectives of PCCW must be time-bound, which means that setting deadlines must be done in order to achieve them12. In line with the primary objective of the company, it can be perceived that a longer time period must be provided because the establishment of an effective organizational culture occurs over time.
3.5 Action Plan and Time Schedule
As mentioned earlier, a gradual transformational change must be facilitated in the company. This is because PCCW is still recovering from the large debts it had in the past. Therefore, using Lewin’s 3-Stage Model of Change, the time schedule for the organization can be generated. The Unfreezing stage or the identification of the previous beliefs of the workforce or employees of PCCW must be done as soon as the employees of the organization have interacted and merged. The Change stage, which involves the change of the organizational culture, along with the beliefs of the employees must be done as soon as the crises regarding the clash of organizational cultures have been identified. The last stage or the refreezing stage, wherein new behavior, beliefs, and culture becomes habitual must be done continuously and all throughout the stay of employees in the organization.
4. Conclusion
The proposed changes that would be implemented in PCCW can be evaluated or assessed through identification of its limitations. There limitations can be identified in the implementation of the change program of PCCW. The first limitation of the proposed change program is that it is a time-consuming process. The effects of using Information Systems in the organization would be a tedious process, as some of the employees resist the changes that are proposed by the management of PCCW. In this sense, the organization would be burdened of using or producing the best IS for their company in order to facilitate effective and efficient means of communication and cooperation for the development of its organizational culture. Another limitation of the proposed change program is the fact that the establishment of an organizational culture takes a long time to achieve. This is because it takes a long time for many individuals to build trusting relationships with one another, given the individual differences that can be observed with one another. Lastly, conflicts cannot be eliminated in the organization and among the employees or workers of the organization.
Bibliography
“About PCCW Global”. (2006). PCCW. Retrieved February 26, 2008, from http://www.pccwglobal.com/about/asia-pacific-overview.php.
Barrett, R. (2006). Building a Values-Driven Organization: A Whole System Approach to Cultural Transformation. Burlington, MA: Elsevier Inc.
Bush, T. and Coleman, M. (2004). Leadership and Strategic Management in Education. London: Sage Publications Company.
Dobson, P., Starkey, K. and Richards, J. (2004). Strategic Management: Issues and Cases, 2nd ed. Malden, MA: Blackwell Publishing.
Driskill, G.W. and Brenton, A.L. (2005). Organizational Culture in Action: A Cultural Analysis Workbook. Thousand Oaks, California: Sage Publications, Inc.
Falleta, S.V. (2005). “Organizational Diagnostic Models: A Review & Synthesis”. Leadersphere, Inc., 1-43.
Holland, W.E. (2000). Change is the Rule: Practical Actions for Change, on Target, on Time, on Budget. Chicago, IL: Dearborn Financial Publishing Inc.
“Loyalty Business Model”. (2008). Wikipedia, the Free Encyclopedia. Retrieved February 26, 2008, from http://en.wikipedia.org/wiki/Loyalty_business_model.
Murphy, P. (2006). Leadership & Cadence: Time Management. Retrieved February 26, 2008, from http://publicsafety.com/article/article.jsp?id=2831&siteSection=14.
Rogers, R., Miles, G., Fuller, E., Hoagberg, M.P., and Dykstra, T. (2004). Security Assessment: Case Studies for Implementing the NSA IAM. Rockland, MA: Syngress Publishing, Inc.
“Setting SMART Objectives”. (2007). The Practice of Leadership. Retrieved February 26, 2008, from http://www.thepracticeofleadership.net/2006/03/11/setting-smart-objectives/.
Wirth, R.A. (2004). Lewin/Schein’s Change Theory, 1-2.
References
1 Holland, W.E. (2000). Change is the Rule: Practical Actions for Change, on Target, on Time, on Budget. Chicago, IL: Dearborn Financial Publishing Inc.
2 http://www.pccwglobal.com/about/asia-pacific-overview.php
3 Bush, T. and Coleman, M. (2004). Leadership and Strategic Management in Education. London: Sage Publications Company.
4 Dobson, P., Starkey, K. and Richards, J. (2004). Strategic Management: Issues and Cases, 2nd ed. Malden, MA: Blackwell Publishing.
5 http://publicsafety.com/article/article.jsp?id=2831&siteSection=14
6 Falleta, S.V. (2005). “Organizational Diagnostic Models: A Review & Synthesis”. Leadersphere, Inc., 1-43.
7 Wirth, R.A. (2004). Lewin/Schein’s Change Theory, 1-2.
8 Driskill, G.W. and Brenton, A.L. (2005). Organizational Culture in Action: A Cultural Analysis Workbook. Thousand Oaks, California: Sage Publications, Inc.
9 Rogers, R., Miles, G., Fuller, E., Hoagberg, M.P., and Dykstra, T. (2004). Security Assessment: Case Studies for Implementing the NSA IAM. Rockland, MA: Syngress Publishing, Inc.
10 http://en.wikipedia.org/wiki/Loyalty_business_model
11 Barrett, R. (2006). Building a Values-Driven Organization: A Whole System Approach to Cultural Transformation. Burlington, MA: Elsevier Inc.
12 http://www.thepracticeofleadership.net/2006/03/11/setting-smart-objectives/
Credit:ivythesis.typepad.com
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