The Heinz Case Study (Essay Sample)

Henz Case study
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Executive Summary
Change management has received considerable focus as internal and external factors step up their pace and challenge companies to respond accordingly. Heinz is among many multinational corporations that have managed to successfully introduce and manage change through strategic restructuring and influencing of employee workplace behaviors and attitudes. The decision to take employee issues seriously won them over, increasing motivation and morale, a move that has seen the company’s product success rate rise over the years. The company has also managed to change its culture into one that stresses on employee work-life balance and wellbeing. John Kotter’s 8-step process for leading and managing change is the best option for Heinz’s strategic change management to ensure its success. The theory is applicable to Heinz’s case since it builds on the principle that it is possible to influence change, but not direct, control it, manage it, or impose it in the absolute sense. This is clear from the company’s leadership practices that are not meant to coerce or force employees into changing, but using different tactics to get the bets out of them, including improved working conditions, flexibility in work, and cultural change.[Kavanagh, Marie H. "The Impact of Leadership and Change Management Strategy on Organizational Culture and Individual Acceptance of Change during a Merger." British Journal of Management, 17(S1), (2006): 17]
Introduction
A change management process describes an instrument that can be used to identify reasons for change, desired goals, and how to influence it within organizations (Blokdijk 2008, 48). There are countless theories regarding change, but not many explain the specific ways of achieving this desired change. Most originate from transformational leaders’ activities of helping organizations transit from their present states to specific desired future states. Change management represents a very extensive field and has many approaches towards managing it, dependent on the particular organization. According to Grant (2005, 17), successful change management requires organizational leaders to identify areas for change, desired objectives, and institute strategies to achieve those objectives. The focus is usually on the wider impacts of the change, especially on people and how they can, as individuals and teams, transit from the present situation to the desired one. Kotter, a renowned change management and leadership guru, has offered a model that best outlines how organizations can influence change through its employees.[Cameron, Esther, and Mike Green. 2012. Making Sense of Change Management: A Complete Guide to the Models Tools and Techniques of Organizational Change. (New York: Kogan Page Publishers), 15.] [Kotter, John P. 2008. Force For Change: How Leadership Differs from Management. (New York: Simon and Schuster), 113.]
Proposed Model for Change Management Process
Under Kotter’s 8-step model, organizational leaders "lead" change through the following steps: 1) create urgency; 2) form powerful coalitions; 3) create vision for change; 4) communicate this vision; 5) eliminate obstacles; 6) establish short-term wins; 7) build on the change; and, 8) anchor changes in the organization’s corporate culture. Heinz should follow these steps. In the first step, creating a sense of urgency, Kotter states that it is imperative to recognize that the entire organization really desires the change, which is then followed by developing a sense of urgency regarding this need for change (Kotter, Leading Change 196, 16). This can assist in sparking the initial motivation to start changes. At Heinz, Peter Widdows, the Managing Director, admitted that the organization was not at a standstill, but was "going backwards." He also identified that the organization lacked an employee nurturing program, little encouragement of fresh ideas, and an intricate organizational structure that caused conflict and tension over role and functional responsibilities. The high turnover rates also demonstrated that employees desired change if they were to remain at the company (over seventy-five percent of the organization’s members have to buy into the proposed change). Creating a sense of urgency would, for instance, involve floating around the idea of change and soliciting output from all staff members.[Kotter, Force For Change: How Leadership Differs from Management (2008, 18)] [Graetz, Fiona, and Aaron C. T. Smith. 2010. "Managing Organizational Change: A Philosophies of Change Approach." Journal of Change Management, 10(2), (2010): 139 DOI: 10.1080/14697011003795602.]
In the second step, forming a powerful coalition, Kotter, Leading Change (1996, 19) states that it is necessary to persuade people to recognize that change is necessary. This implies forming a "change coalition." Change management implies a manager must lead it, as opposed to merely influencing it. Widdows must move swiftly to restructure the Board and hire competenet board members who see the change as positive. In addition, he, alongside his senior management team, should consistently engage all staff, encouraging them to offer their input and ideas. Widdows and his senior team ought to lead by example or as models for employees to emulate. Together, they form a strong change coalition. The third step, creating a vision for change, involves linking changes to concepts an encompassing vision that individuals car adopt quickly and recall. Widdows establishes values and attitudes that employees need to follow to enable transition. Specifically, Widdows should articulates the company’s vision as "a great place to work,’ with all employees expected to "walk the talk." A simple vision would be "to make Heinz the best employer." This vision ought to be repeated constantly using speeches or memos.[Kotter, Leading Change (1996, 20)]
The fourth step, communicating the vision, involves elucidating it to the staff. For instance, in Heinz’s case, the company’s vision is centered round making it the best place to work in through ensuring a committed workforce. Widdows and his management team have to communicate this reputedly, using special meetings and constantly talking about ways to achieve the goal. The management ought to model the required behavior, including addressing employees anxieties and concerns honestly and openly. The fifth step, eliminating obstacles, involves establishing a structure for the change and consistently checking barriers to it. This will help the organization empower its employees who are critical to executing the vision. Heinz should replace punishment with recognition and reward for employees pushing forward the change, identify change leaders with capability to perform certain roles, identify personnel resisting change and assist them to recognize what is required, and act swiftly to dismiss those who resist change.[Kotter, Leading Change (1996, 22)] [Ibid]
The sixth step, establishing short-term wins, involves offering the organization tastes of victory in the initial change process. Quick wins that employees can see, typically in short (months), is critical in motivating them. If an organization does not succeed with an early goal, this could harm the entire change process. Widdows should consider communicating success to employees, for instance, improvement in product performance and profits, and rewarding people who help towards achieving the success. It is critical to note though, that early targets should be achievable, with little room given for failure. The seventh step involves building on the change. Here, Kotter, Leading Change (59) states that often, projects fail because they declare victory too early. Real change has to run deep; every success should be exploited to improve it. After posting positive changes in employee attitudes and morale, Heinz ought to build on the momentum by analyzing achievements, as well as areas for improvement. Here, Widdows ought to enlighten employees o the kaizen concept, which calls for continuous improvement.[Kotter, Force For Change: How Leadership Differs from Management (2008, 58)] [Alukal, George, and Anthony Manos. 2006. Lean Kaizen: A Simplified Approach to Process Improvements. (New York: ASQ Quality Press), 13.] [Charron, Rich, H. James Harrington, and Frank Voehl. 2014, The Lean Management Systems Handbook. (New York: CRC Press), 280.]
The final step involves anchoring the changes in a robust corporate culture. Here, the intention is to make the change stick, making it the core of the organization. Heinz should establish a corporate culture whose values and standards are clear to all. For existing and new staff, it should be communicated that complacency is not an option, hard work gets rewarded, and that ideas are welcomed. This should be communicated publicly and should include communicating the values and ideals when hiring or training new employees.[Kotter, Force For Change: How Leadership Differs from Management (2008, 28)]
Strengths and Weakness of Proposed Model With Respect to Heinz
Kotter’s 8-step model offers many strengths from Heinz’s perspective. First, the process is logical; it is a systematic process that managers can easily pursue to achieve changes at the organization. (Gabarro and Kotter 2008, 108) By correctly following the steps and communicating them to change "partners" on a regular basis, Heinz can successfully achieve its change goals. Secondly, the model focuses on buying-in employees as the core to success of the change process. Employees represent the most critical resource for any organization, which implies that any successful venture in organizations has to involve the goodwill of emp...