Implementation of Change Strategies

Blue Marina

Contents
Contents................................................................................................................. 2 Introduction............................................................................................................ 3 SWOT analysis of Blue Marina.................................................................................4 Analysis of change facing Blue Marina....................................................................5 Employees Reactions to Change.............................................................................6 Implementing Change Successfully......................................................................10 Conclusion............................................................................................................ 14 References........................................................................................................... 15

Introduction
Today, businesses and organizations face rapid changes like never before (McNamara, n.d.). Change is important for any organization. Without change, businesses would likely lose their competitive edge (Leigh, n.d.), subsequently they might fail and close for business. Questions often surfaced when change efforts are undertaken. How do we anticipate the need for change? And what kind of change do we need? How can we effectively manage change? Will our organizational change efforts produce the desired results? And are the changes made are actually desirable? The intention of this study is to address the managements question if Blue Marina should execute the managers new business strategy. An analysis is made on the internal and external environment, the nature of changes that Blue Marina faces and the possible employee reactions to the changes. We recognise that organizational change is a challenge for all participants. A recommendation is also given to the management on how to execute the organizational changes successfully.

SWOT analysis of Blue Marina

Strengths Accessibility Blue Marinas accessibility is its primary strength, resulting in a steady flow of customers. Delicious food Its fuss-free menu provides a good range of Italian dishes; which are both delicious and affordable. Weakness Long waiting time The poor coordination between the waiting and kitchen staff contributed to the long customer waiting time. This resulted in frustrated customers who resorted to walk into another eatery. Opportunity Promotional tie-ups With cross promotions, Blue Marina is able to create marketing synergism (Rigsbee,2010). With Blue Marinas partnership with the cinema complex, it is hoped that it would result in increased traffic through the joint promotions. New restaurant concept With new plans to revamp the restaurant, i.e. new menu and decor, Blue Marina is differentiating itself from its competitors. The restaurant will now provide e a fine Italian dining experience that other restaurants within the vicinity may not provide. Online presence Blue Marinas website is a lucrative approach to promote the business (Dunford II, 2008). This is because todays diners are reaching for their mouse to explore the restaurant before dining in.

Threat
4

Competition

Blue Marina faces competition from new and existing eateries. This is because they might be able to provide menu offerings that are more attractive and cheaper.

Analysis of change facing Blue Marina

5

Lorenzi and Riley (2000) identified four organizational changes - operational, strategic, cultural and political. These changes had been evident in the case of Blue Marina: 1. Operational Previously, employees were not formally trained. But now, all employees must undergo induction training to meet new standards of service. Secondly, suppliers orders, payments and accounting process were done manually. Now, a new information system is implemented to streamline the work processes. 2. Strategic Before, the restaurant attracts families and the general crowd. But now, it aims to attract a select clientele who would be more than willing to pay a premium. 3. Cultural The restaurants main concern was efficiency- orders must be delivered in 15 minutes, regardless of peak or non-peak periods. But now Blue Marina is differentiating itself from its competitors. This is by giving diners a unique restaurant experience- with a revamped menu, new decor and new bar area. 4. Political A change is leadership is the catalyst for the major changes in Blue Marina. The previous management employed a static view of the business- with fixed practices and fixed size (White, n.d). But the new management is now headed by a younger and more-educated manager. He believes that the business should adapt to the environmental changes and continuously improve.

Employees Reactions to Change

The only person who likes change is a wet baby. Mark Twain
6

In today's economy, change is all-pervasive in organizations. It continually happens and at rapid speed. Often, a workers first reaction to change is to resist it. Resisting the will to change, employees would react by:
1. Quitting

The most extreme reaction an employee reacts to a change is to quit (Furnham, 2009). Unfortunately, changes going in one organization are also going on in other organizations. By quitting, the quitter shows that he stands firm on his principles and this makes a point. But this is at the employees cost, not the organizations.
2. Increased absenteeism

Angelo Kinickis (W.P Carey School of Business, 2007) research showed that employees take more sick time. They perceived the organization changes as a problem. But sick leaves are a cost to the business. Although there is no concrete proof, Kinicki believed that a moderate percentage of people taking sick leave are actually faking sickness. They just had enough-or they are looking for a new job, and subsequently quit.

3. Hostility towards new management

The organizational changes have disrupted the employees comfort level, thus making them hostile to their new and young manager. This results in value differences and a clash of personalities (Jain, 2005). These differences result in two groups viewing the organizational world from slightly different perspectives (Jain, 2005). Employees would feel that there is no need for change, but the new management feels that change is imperative to survive.

Positive reactions Some employees do react enthusiastically towards organizational change. They view changes as career growth opportunities in the organization.

Permanent staff

They will have promotion opportunities and better wages.

Part-timers and casual staff

With the opening of new restaurant outlet, there are opportunities for them to be emplaced. Ambivalence In a study done by Piderit (2000), it was found that some employees reaction to change is a combination of excitement and fear. With the change, the employee would reason with himself why the organization is changing and assess his vulnerability (Piderit, 2000). He will not jump to participate in the changes, but is willing to adjust slowly to the change-by learning new techniques and procedures (Stark, 2010). Understanding how employees cope with organization changes The Kubler-Ross Change Curve Figure 1 displays the Change curve, developed by Elizabeth Kubler-Ross. This Model was originally developed to explain the grieving process. But today, it is used to help people understand reactions to significant changes.

Figure 1 (Source: Structured training.com) Putting ourselves in the employees shoes, we shall discuss how they react and cope to the organization changes: Stage 1 Shock We have a new management! What is happening? Stage 2 Denial We have always done things this way, why change? Stage 3 Frustration Why must I be transferred to the other branch downtown? I have worked here 20 years, why do I need training!

Stage 4 Depression What is the use of me working here anymore? Things are not what they used to be. Stage 5 Experimentation Could this new work system work for me? Stage 6 Decisions I can see how I can make this work for me.
9

Stage 7 Integration The organization changes works for me and my colleagues.

Implementing Change Successfully

Change Involves people, evokes emotions, uncertainties and inconsistencies. Managing change is solely insufficient. Leadership is required for successful change. There is a saying : one can lead a horse to the water, but you cannot make it drink. But today, getting the horse to the water is a control issued that is manageable. But getting the horse to drink is a behaviour issue that demands leadership. John Kotter, Konosuke Matsusnita Professor of Leadership, (Kotter International, n.d.), had developed the 8-step process for leading change. This is a valuable tool for organizations to avoid failure and become adept at change (Kotter International, n.d.). By improving their ability to change, organizations can increase their chances
10

of success, today and in the future. Without this ability to adapt continuously, organizations cannot thrive. The Steps to Change To deal with people and change, Kurt Lewin observed that a successful change includes 3 steps (Schewe,1991): 1. Unfreezing the motivation to create the change 2. Moving
3. Re-freezing-occurs when a change or innovation is integrated in the

organization values (Schewe,1991).

Kotter's model suggests a similar three-part framework (Corporate Wisdom, n.d.): 1. Defrost the status quo 2. Take actions that bring about change 3. Anchor the changes in the corporate culture Establish a Sense of Urgency Leaders must first establish a sense of urgency. Kotter stated that this is crucial to gain cooperation (Kotter, 1996). Have an open and honest dialogue on what is happening to the business and its competition. Once employees talk about the proposed changes, the urgency can build and feed on itself.
11

Creating the Guiding Coalition Change must be nurtured and supported by a dedicated group of influential leaders throughout the organization. Kingpins are to be identified and must commit to the change cause. They then need to work as a team, to continue building the urgency for the need of the change. Developing a vision and Strategy The new manager must create a vision. Once the employees accept the urgency, they want to know the direction they are going-a clear direction is needed to a better future. Developing a business slogan captures what you envision the organization to be; for example, The Great Italian Experience. A strategy must then be created to execute that vision. Communicate Vision to Implement Change The best vision in the world has no value if its a big secret (Rose, n.d.). Besides communicating via the typical communication media, the new manager should communicate the vision through his actions. For example, when presenting an award, the manager should commend on the employees performance and how it fits in the vision and how the performance contributes to something larger that the reward. Empowering Employees for Broad-based Action At this stage, it is imperative to identify and remove the obstacles to the change. Leaders must change the system or structures to enable employees to develop new

12

ideas and approaches. Employees must be encouraged to be innovative and take risks. Generating Short-Term Wins Employees must see results, in order to have a continuous belief in a vision. Otherwise, the vision is meaningless. For example, sales targets could be set a profit margin of 15% to be achieved in the year. Once achieved, the employees can look forward to monetary rewards. Consolidating Gains and Producing More Change Kotter (Kotter International, n.d.) stated that real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long term change. Continuous assessment of the business must be made- analyse the mistakes, improve on procedures and set goals for continuous success. The business can be made relevant to the changing environment by adding new workforce and leaders. Anchoring New Approaches in the Culture Having made effective changes, the management must now make the changes permanent. The organizations leaders must continuously support the changeincluding all the existing and new staff. If their support is lost, the business will revert back to its original state. The manager could talk about the restaurants success at each opportunity he has. Tell success stories of the change process and repeat other stories that he hear. Inculcate the change ideals when hiring and training new employees. Recognition

13

must be made of the contributions made by key members and remembered by both new and old employees.

(711 words)

Conclusion
After our analysis, Blue Marina should respond to environmental changes and change its business strategies. If Blue Marina fails to do so, the business may cease to exist. But not all the business strategies should be implemented now. The loss of customers is not because of the economic conditions, but an internal one. The poor coordination between the waiting and kitchen staff must be investigated; and resolved immediately. Secondly, the expansion plans should be scrapped. The books had shown losses; therefore efforts must be concentrated on making profits first. It is true that an entrepreneurial spirit is needed to succeed. But the business must also consider its financial health before expanding.
14

Therefore, strategies relating to increasing the employee strength and changing the restaurants concept should not be considered. But plans on a new information system, a restaurant website, joint promotional alliances and sponsoring community projects should be implemented immediately. With its implementation, it is hoped that the desired revenues will be generated. Only then, expansion plans can be undertaken.

References
Corporate Wisdom (n.d.). Change Management. Available from: http://www.corporate-wisdom.com/lm_change_management.html . (Accessed on 26/3/2012) Dunford II,Terry (2008). Advanced Search Engine Optimization-A Logical Approach. (First Edition) USA: American Creations of Maui. Furnham, Adrian (2009). People management in Turbulent Times (First Edition). London,UK: Palgrave MacMillan Jain, N.K (2005) Organisational Behaviour Vol. 1. Delhi,India: Nice Printing Press Kenneth H. Rose, Available from: http://siriusmeetings.com/articles/article-leadingchange (Accessed on 26/3/2012) Kotter International (n.d.) Professor John P. Kotter Chief Innovation Officer Available from: http://www.kotterinternational.com/aboutus/bios/johnkotter (Accessed on 25/3/2012) Kotter, John P.(1996). Leading Change. USA: Harvard Business Press.
15

Lorenzi, Nancy M, Riley, Robert T, (2000). Managing Change: An Overview. J AM Med Inform Assoc, 7(2), pp 116-124. Available from: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC61464/ (Accessed on 23/3/2012) McNamara,Carter (n.d). Organizational Change and Development (Managing Change and Change Management). Available from: http://managementhelp.org/organizationalchange/index.htm (Accessed on 24/3/2012) Piderit,Sandy Kristin (2000). Rethinking Resistance and Recognising Ambivalence: A Multidimensional View of Attitudes Toward An Organizational Change. Available from: http://digilib.bc.edu/reserves/sw971/piderit971.pdf (Accessed on 24/3/2012) Richards,Leigh (n,d). Why Is Change Important in an Organization? Available from: http://smallbusiness.chron.com/change-important-organization-728.html . (Accessed on 22/3/2012) Rigsbee,Ed (2010). Developing Strategic Alliances--Whats In It for Me? Available from: http://www.rigsbee.com/dsa1.htm . (Accessed on 22/3/2012) Schewe (1991) Marketing management issues in ambulatory health care (First Edition). London,UK: The Haworth Press Stark, Peter Barron (2010). Employee Responses to Organizational Change. Available from: http://www.peterstark.com/employee-responses-change/ (Accessed on 26/3/2012) White, Mark (n.d). Three Organization Types Evolving from Static and Dynamic to Adaptive Available from: http://www.gdrc.org/ngo/org-type.html (Accessed on 23/3/2012) W.P Carey School of Business, Arizona State University (2007). Fight or Flight: How Employees Cope with Organizational Change. Available from: http://knowwpcarey.com/article.cfm?aid=563 (Accessed on 24/3/2012)

16