Barriersto Change Management
Barriersto Change Management
Change Management, And Its Concern with the Leadership Change in Starbucks 5
Challenges/Barriers to Effective Change Management (Starbucks) 6
Models of Change Management or Implementation 9
Inthe modern business world, there have been numerous changesimplemented within an organization. For example, an organization maychange its leadership, style, or even adopt new technology into itsdaily operations. Such cases of change entail effective management inorder to maintain the performance of an organization. With thesechanges facing different organizations at different time, there needsto be an effective and workable procedure to adopt and incorporatethe needed change into an organization. This has in turn led to theinception and adoption of the Change management and implementationmodels which are meant to help the organization achieve an effectivechange from one/older practice to a new or better practice.
Differentorganizations have overtime undergone changes, whether in terms ofproduction, through acquisition or change in management. How anyorganization copes with changes is an essential aspect as it defineshow well the organization is set to overcome barriers to change. Oneexample of a management change case is the change in leadership ofStarbucks Corporation when Schultz took over from Donald, andprovides a good case into the process of change management.
However,despite the changes facing different organizations, effectivemanagement and implementation of change is inevitable, as in manycases, changes can result in poor or decline in the performance of anorganization. Effective change management implementation is animportant aspect in any organization management in order to eliminatebarriers to effective change management and implementation. The keyfocus of this paper is the barriers to effective change management,what barriers hinders change management in an organization, focusingon the case of leadership change in one of the renowned organization‘Starbucks Corporation’. ‘Change resistance’ have, many timesnegatively impacted organizations, and in turn the need fororganizations to eliminate barriers to change in order to maintain orimprove the organization’s productivity.
Organizationsconstantly face situations that require them to adapt to theenvironmental forces to guarantee their survival. Such cases rangefrom minor changes such as staff restructuring to major ones likeinternational expansion, mergers, the acquisition of anotherorganization, retrenchment, and significant staff restructuring.Change, therefore, becomes unavoidable in the organization’s lifecycle. However, despite the necessity of the organization to adapt tochange, there are many barriers that prevent change from occurring(Welbourne,2014).For change to occur, the causes of these barriers must be eliminated.It is how these barriers will be broken down that determines how wellthe organization will adopt to the change whether planned orunprecedented.
Changesin any organization have different impacts at any given time orperiods they may occur. They may differ and range from minor changessuch as staff restructuring to major changes such as organizationmerger/acquisition of another organization. However, changes arenecessary for any organization, but at some point, barriers to aneffective change in an organization are experienced, and fromdifferent cause (Welbourne,2014).Any change in an organization demands effective management, in orderto maximize positive impact, towards its performance.
Changeis inevitable change management in turn is an approach that isdevised by an individual, a team of people, and an organizationtowards transition. Change management is any structured approach thatis deployed by an organization or an individual to ensure “changes”within an individual or in an organization are thoroughly andsmoothly executed to ensure positive aspects of change are achieved(Dohertyet al, 2015).One of the key aspects with regard to change management is the issueof ‘Barriersto Implementing Changes in an organizational’.
ThesisStatementBarriersto change management hinders organization performance, however, theyare inevitable, and different organizations have different barriersto change management.
ChangeManagement, And Its Concern with the Leadership Change in Starbucks
Beingregarded by many as one of the premier coffee roaster, Starbucks isrenowned for its business operations with its main retailerheadquartered in Seattle, United States. The organization has faced aweighty leadership changes in recent years. Prior to the currentchange, the organization’s profile was marked by success stories,with its success cases evinced by its massive growth within a limitedperiod of existence.
Starbucksremains one of the renowned business establishments globally, at thestart of 2014 Schultz took over from Donald in the leadership ofStarbucks Corporation. With this change in leadership, differentother aspects within the management of the renowned organization inthe coffee market. In a nutshell, the incoming of the new leadershipin the organization was faced with two main challenges which entailedthe loss of jobs and closure of the organization stores, as well asre-acquisition and retention of the lost customers in theincreasingly competitive within the business environment. Theorganization was faced with numerous challenges when this particularchange occurred, and in turn the need for change management as wellas effective strategies to evade or eliminate/solve the barriers toeffective and improved performance as well as elimination of thechallenges.
ChangeManagementthis can be summarized as any structured way or approach that isdevised to ensure that changes within an organization are effectivelyand thoroughly implemented, as well as ensuring lasting benefits ofthe change are achieved as desired. With reference to theorganization in question (Starbucks Corporation), change managementcame to be an inevitable case as the company was undergoing thenumerous cases of leadership change. The issue of change was becominga concern due to the fact that, numerous changes brought alongchanges in the performance of the company. Different leaders embraceddifferent leadership style, and in turn an inevitable change. Thechange in leadership styles in turn led to the aspect of changemanagement to ensure a smooth transition from one regime to theother.
Organizationmanagement should be committed to change management once it occurs,in order to promote and support promoting healthy transition in anorganization or by an individual. As defined above, it is astructured approach devised by a group or individual to the changeprocess is smooth without major disruptions in the organization’sactivities (Dohertyet al., 2015).Therefore, barriers to change must be eliminated for a smoothtransition.
Challenges/Barriersto Effective Change Management (Starbucks)
Barriersto change management and implementation hinder organizationperformance, however, they are inevitable, and differentorganizations have different barriers to change management. Thetransition the in management of Starbucks Corporation from Donald toSchultz offers an excellent example of a management change case.Starbucks Corporation is a coffee roaster company and retailer. Theyear 2008 saw the company faced a lot of challenges that led to achange in leadership. Before the change, the company had grownsignificantly from 5000 stores to 15, 000 while Schultz was the CEO.This uncontrolled growth led to its fall in stocks. In 2007, thecompany witnessed a 42% drop in stock leading to the reinstatement ofSchultz as the CEO with Donald being sent packing. This reinstatementsaw many changes that Schultz had to deal with to save the company(Foroohar,2015).In a nutshell, some of the barriers to change management inorganizations entails poor planning,lack of consensus among the management teams/personnel’s,communication, employee resistance, as well as change of management,among other barriers.
Withreference to the case of Starbucks, one of the barriers to changemanagement is the changeof management and the leadershipteam of the organization. New management has to adopt and learn theorganizational processes. It takes time for the new management todevelop a rapport with the employees (Welbourne,2014).Furthermore, each leader/manager has different styles of leading. Thenew management faces challenges to change such as lack of priorknowledge of organizational culture, difficulty in sharing theobjectives to change and low feedback from the employees. Forexample, comparing the two leaders, Howard Schultzwas regarded as a transformational leader due to his compassion forand commitment to the organization’s customers as well as the staffalike. This in turn led to him being regarded a successful leader ofthe Starbucks business platform with increased expansion of thestores. On the other hand, the incoming leadership was overwhelmed bythe former styles, and in turn there were numerous obstacles toattain the same success as before
Theincoming management at Starbucks faced a major challenge of learningand improving the organizational processes to achieve betteroutcomes. Schultz faced such challenges, but his prior knowledge ofthe company helped him to some extent implement changes that savedthe company (Foroohar,2015).He also worked with a team of leaders who knew the processes of thecompany well. The leaders helped him communicate the planned changeprocess and its importance. Schultz leadership faced variouschallenges in managing change. First, the closure of some of theirstores led to the loss of jobs and, as a result, encounteredresistance from the employees (Foroohar,2015).Resistance to change by the employees can be a significant barrier tochange leading to failure of the planned change process. Itchallenges, disrupts or stops the change process. Some of the reasonswhy employees may resist change include: the fear of the unknownwhere employees are not sure of what will follow the change.Employees may not see the need for change or believe that the changewill fail. Negativity and misconceptions about the planned changeprocess may also lead to employee resistance.
However,in the Starbucks case, the resistance to change due to the loss ofjobs was well handled using the leadership team role approach andproper communication. This approach helped employees to understandwhere their characters would be needed to help the organization. Italso helped the employees to work as a team to revive the company.Those who did not have any specified positions ended being retrenchedto save costs (Foroohar,2015).Extensive communication can, therefore, be used to combat employeeresistance to change.
Theother barrier to change encountered when managing change is flawedcommunicationbetween the management and the employees. Communication is key insituations of organizational change. Good communication ensures thatevery person in the organization understands the need for the changeand the role they play in making the planned change successful(Dohertyet al., 2015).Communication is one of the pillars of any organization that ought toperform in the market. Ineffective communication is a catalyst offailure in organizations. Good communication also prevents employeeresistance to change since employees know the importance of change.Therefore, change management should pay attention to the timing, modeof communication, and the importance of the message communicated. Themanagement should also be ready to hear the ideas of the employeesabout the change.
Thelack of common ground between the management and the employees inregards to the planned change may also become a barrier. Foreffective change to occur, the employees and the management mustagree to the proposed change. Therefore, the management shouldinvolve the employees in planning for the change (Dohertyet al., 2015).All issues pertaining the change are addressed ensuring that bothparties reach a consensus.
Finally,planning for change resistance is important. Managers should notreact to change, but be proactive. Planning helps the organization toforesee circumstances that may prevent the change from occurring(Jabri,2012). Planningalso ensures a smooth transition during the change process. Whenplanning for change, the organization should come up with aneffective communications plan, feedback mechanism, and adequatefinances. The lack of a strategic plan for change can lead to failureof planned change.
Modelsof Change Management or Implementation
Thereare various models used to manage change. These models includeKotter’s8 Step Change Model, McKinsey 7-S Model, and Lewin’s ChangeManagement Model. Kotter’s 8 step change model is a series of 8steps in the management of change that are applicable in the case ofStarbucks Corp. First is the creation of a sense of urgency. Themanagement should find a way to excite the employees on the need forchange(International& International, 2015).Schultz used the declining stock of Starbucks by 42% to create asense of urgency of saving the company from failure. As a result,most employees saw the need for change and hence signed up with hisideas.
Secondly,there is building a guiding coalition(International& International, 2015).Schultz assembled a group of leaders who knew the company processes(Foroohar,2015). This team of leaders would support a collaborative change inthe organization in their areas of management. Away from building aguiding coalition, there is also the third element of the model whichis ‘formation of a strategic vision and initiatives’. A visioncommunicates the direction of the change to the employees(International& International, 2015).Schultz conversed his vision for the company of returning to customerreorientation and the provision of quality products and services. Healso aimed at ensuring efficiency of operations and cost cutting.These visions provided direction to the company’s employees leadingto all efforts being focused on the achievement of these visions.
Onthe other hand, there is the fourth step ‘enlisting a volunteerarmy’. The high number of employees left after the retrenchmentformed the labor force to achieve the desired change. This laborforce was highly motivated to work and to reach the planned changeprocess of saving the company. The leaders accepted a pay cut thatalso acted as a motivator to the employees (Foroohar,2015). The next step entailed ‘removing obstacles to change’ andin so doing enabling action(International& International, 2015).Various barriers to change for Starbucks included employeeresistance, change in management, lack of communication, and lack ofagreement between the management and the employees. Schultz tackledmost of these barriers by widespread communication with theemployees, planning and an appointment of a committed team ofleaders.
Thesixth step is the generation of short term wins. The management teamshould ensure tracking and evaluation of achievements in accordancewith the set objectives(International& International, 2015).Schultz secured a 4% gain in the first year that was celebrated bythe organization (Foroohar,2015). The sustaining of acceleration is the seventh step of thechange model. He ensured a continuous upward trend in the profits aswell as sustained innovation. Finally, he instituted change byrenewing the focus of Starbucks to the customer and quality ofproducts. He also appointed a principal technology officer whoimproved the social media experience of Starbucks. Finally, heensured the replacement of old mechanisms with new technology,promoting efficiency (Foroohar,2015).
Organizationsare required to change in accordance with the market forces toguarantee their survival. Starbucks Corp, was on the verge ofcollapse, but change management saved it to become one of the bestcoffee roasting and Retail Company. It encountered various barrierswhile undertaking the change. Althoughbarriers to change implementation pose both problems and chances foran organization to improve its performance, change management is anessential aspect of organizational management. While barriers tochange implementation pose both problems and chances for anorganization to improve its performance, change management is anessential aspect in organization management. With reference to thecase of Starbucks change in leadership, it’s clear that change canboth positively or negatively impact an organization and in differentways. It’s there an essential aspect to incorporate the aspect ofchange management, as it’s an essential tool for smooth transitionin case of any change within an organization.
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Foroohar,R. (2015). Starbucks for America. (Cover story). Time, 185(5),18-24.
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