Proposed change in regards to social media based customer response. Learning Team D has proposed a change program to be initiated for Sears. In an effort to eliminate poor customer service time and quality, a team will be recruited to initiate a social media platform based response team to raise the level of customer satisfaction. This presentation will cover why the program is necessary and how the stakeholders will benefit. Models for implementing the change, tools for measuring the change progress, and shared diagnosis measures. The proposed change should bring about the results intended to remedy the issue. Proposed change in regards to social media based customer response. Learning Team D Alicia Corona, Candace Hall, Stephanie Servi, and Nathan Stoelk AET/560 September 11, 2017 University of Phoenix

Proposed Organizational Change Scenario 2 years of poor customer reviews Tech savvy consultants initiate change Create a social media response team to enhance customer satisfaction Sears has been a leading brand for decades and for two years in a row, less than acceptable reviews regarding customer service have been mentioned. This year upper management has reached out to a consultant team in attempts to save face. A team of tech savvy students will create a department that establishes a social media site for Sears and takes over most customer inquiries in this manner. The objective of the social media response team will be to re-establish a close responsive relationship with Sears customers and essentially build the moral and culture back up in what was once such a highly sought after brand name and experience. Social media and marketing/advertising capabilities are growing substantially and it would be a great step for Sears to remain relevant with the times. Community events can be posted encouraging customers and potential customers to get reacquainted with the new way Sears is going to handle customer response and satisfaction.

Brief History and Synopsis Changes to Sears retail stores Closing of 8 Sears and 35 Kmart unprofitable stores Opening of smaller, concept stores Sears started as a watch store in 1893 and opened its first retail store in 1925 (Sears Holding Corporation, n.d.). The evolution of consumers moving from physical stores to online shopping has hurt the Sears Corporation, which also includes Kmart. Closing 8 Sears and 35 Kmart stores in July 2017, that were no longer deemed profitable allowed the Sears Corporation to focus on improving the existing stores and to lessen their physical footprint that has been hurting profits (Lampert, 2017). The shift included improving customer satisfaction with customer service at physical stores as well as online. “We expect to introduce additional smaller, specialized concept stores in the upcoming quarters while simultaneously reducing the number and/or the size of larger-format, less competitive stores” (Lampert, 2017).

Kotter’s Theory Create a sense of urgency (Spector, B. (2013)) SEARS stores are closing and online sales are declining due to poor customer reviews Example: Can lead to employee downsizing Build a guiding coalition Store closures and declining sales can negatively impact surrounding economy and employee wellbeing if lay-offs are necessary Form a strategic vision Raise employee confidence with training Promote positive customer engagement Enlist a volunteer army Example of SEARS volunteer army duties or benefits… Creating a sense of urgency is crucial to promote change. A leader must create this sense of urgency to provide a need for change to the staff. Without this, the staff will not see the need for change. Building a guiding coalition is necessary. In this phase, stakeholders or community members are involved in coming up with a strategic vision. Sears would want to use managers, employees and everyday customers for this task force. Forming a strategic vision is the next step. The guiding coalition would work together to create a vision of change for the organization in question. Enlisting a volunteer army is key. These volunteers would be the forerunners of the new change. They would report how the change was working and how it could be improved.

Kotter’s Theory Part II Enable action by removing barriers Too comfortable in old ways Lacking provisions and training Allow for short term wins Completed training modules perks Positive customer response recognition Sustain acceleration Continuous improvement monitoring Institute change Encouraged for improvement Removing barriers is essential to success. Some barriers might include resistance or fear of change. Often times, if employees are not on board at this part of the change, it is time to cut the tie with them. (Spector, B. (2013)) Allowing for short term wins is essential for the employees. It allows the employees to see that change is working and allows the leader to praise the employees for their success. It is important for there to be short term goals so that short term wins may happen. Sustaining acceleration is important as well. After a few wins it can be easy to sit back and be comfortable. It is important to keep the acceleration going and pushing the snowball down the hill. Institute change should be encouraged for improvement. There will be change within an organization when improvement takes place and this must be embraced.

Kurt Lewin’s three-stage model of change: Unfreeze Crisis: SEARS stores are closing and online sales are declining. Change Improve Customer Service Quality with training and extensive monitoring Minimize Response Time with additional staff and improved guidelines Redesign online store and implement Social Media campaign to promote incentives Refreeze Reward good customer service Team-oriented environment Use of social media in the workplace Lewin states an understanding of the situation and organization as a whole is necessary in creating needed change. Unfreeze- before change can happen, an “unfreezing process” must occur within the organization. Unfreezing focuses on removing the beliefs and norms of those who need to engage in the changes. This stage may occur due to a crisis. In this case: SEARS stores continue to close. The store count is 1,140, down from 2,073 five years ago, (Peterson, 2017). Store closures mean there is a greater dependency on Online Sales. Negative responses to the current customer service and response times is declining online orders. Change- Recognizing the crisis creates a sense of urgency causing those who are embedded in the organization to be more inclined to make necessary changes, change leaders can begin to access the areas that need improvement and decide who will do what, when, where, why, and how. SEARS customer service is lacking- Provide additional customer service training for employees. Implement online surveys for customer feedback and assign a task force to monitor Implement guidelines/expectations of customer service quality for employees to adhere to and make corrective actions when expectations are not met Response times are too long. Organize new guidelines/expectations for merchandise availability Hire (or promote) new staff to oversee guidelines are met consistently Quality control supervisors can create better methods of measuring/reporting Online orders are declining. Hire tech-savvy team to redesign online store for user-friendly features Implement new social media campaign to promote online store site visits Implement a Rewards system or other incentive to promote online orders and share in new social media campaign Refreeze- during this stage employees will need to adapt the new changes, while developing new patterns and work habits, ultimately reaching a state of balance (homeostasis). Recognize and reward excellent customer service comments on customer surveys Develop team-oriented relationships between product staff, tech staff, and management Use social media for company-related events and insight to promote use of technology Spector, B. (2013).  Implementing organizational change: Theory into practice (3rd ed.). Upper Saddle River, NJ: Pearson

Overcoming Resistance Involve employees in research Share what is known about SEARS closures and unsuccessful on-line presence Inform and educate Explain the proposed change (creating online response teams and possible concept store) and why Encourage feedback Listen to conflict within the different levels of SEARS staff SEARS employees can provide feedback via a “suggestion box” or “employee suggestion email address” Equip with the necessary tools for an effective change Training courses on Good Customer Service and Email/Online Etiquette Overcoming resistance can be one of the most important aspects of change and the conflict that can arise also can be an asset to the effectiveness of the change. When senior management does the research, it has been beneficial to share that information, knowledge, or data with the employees that it will affect. Instead of telling the team that a change needs to be made rather showing the data and educating the team on why and how the changes will be implemented can ease anxiety and resistance. Encourage honest and open communication and feedback and listen to all conflict matters. At times conflict can show something that was to noticed before and if handled correctly can be positive. Structuring the team to maximize potential is important, it allows those to do what they are best at in order to progress the change. Setting engaging, challenging, and achievable goals allows the senior management and the employees to track the progress of the change and to see where it is helping. Cawsey, T.F., Deszca, G., & Ingols, C. (2016).  Organizational Change:  An Action-Oriented Toolkit (3rd ed.).  Retrieved from VitalSource bookshelf. Spector, B. (2013).  Implementing organizational change: Theory into practice (3rd ed.). Upper Saddle River, NJ: Pearson

Strategies to Create Commitment Focusing on an inclusive change process: Creating task forces consisting of various SEARS staff levels and departments to achieve mutual engagement Discuss the challenges and issues with current store closings and declining online sales Task alignment to redefine roles, relationships, and responsibilities Create mutual goals and expectations Create a slogan An inclusive change process promotes ownership of and commitment to change goals. By creating task forces members of the SEARS organization can contribute ideas and concerns to the change process through mutual engagement. Using Lewin’s theory of the “unfreezing” process- SEARS members will understand the current challenges and threats faced with declines in online sales and additional store closures. Mutually redefining roles, relationships, and responsibilities using feedback from the different levels of staff and departments can contribute to comradery. Creating mutual goals and expectations and explaining the benefits of collaboration from the different levels of staff and departments will also contribute to a team-orientated environment. A slogan that promotes a shared vision for the future of SEARS can provide a positive reminder of the mutually defined goals.

Use of teams during the change process  Develop teams of SEARS stakeholders Upper Management & Investors Employees and suppliers Customers and community Give firm milestone deadlines Challenging, obtainable Measurable Provide motivation and guidance Training Stress the importance of team work -Team building events Utilizing Kotter’s Theory of building a guiding coalition, stakeholders within the organization and community will be organized into teams and provide feedback on what the problems appear to be and provide suggested solutions for each problem. The teams will be made of those who volunteer for the project, these are the people who will put the most effort into solving the problems that are identified. Ensure the team members that no idea or issue is off limits as long as it is within the fair business practices, company policy, and does not violate the rights of employees or customers. Provide firm deadlines for progress reports, expectations should be relayed up front with achievable milestones. Motivate and encourage team members, management will assure the teams that their contributions are vital to the needed changes. When changes are implemented, let the teams know that they were the drivers for the changes and let them know they are appreciated.   Using Lewin’s Three Models of Change, provide an outline for the teams to decide who will do what, when, where, why, and how with the flexibility to change roles as needed. Keep the teams engaged. Ask the teams to organize a customer survey so they can get feedback from the public. The surveys should be short and specific so that the data received is not overwhelming. Stress to those within the organization that they are a team and that it will take effort on the part of everyone to accomplish an organizational change. Reassure everyone that as a team working towards the same goal, they can make the transition smoother. Once issues are recognized, problem solve and encourage feedback. Each person sees issues in different ways and a combination of views can produce a viable solution.

Different types of motivation Intrinsic motivation: Where people are motivated without any kind of rewards system. Extrinsic motivation: Where people are motivated with a rewards system. A leader should do their best to lead in a way where people will intrinsically follow them. A leader should accept the fact that in most places, extrinsic motivation is necessary. A good leader understand that a successful workplace will have intrinsic and an extrinsic rewards system. Offer Incentives- There are two types of way to get a team on board when a leader wishes for a change within their organization. The first way to do this is an intrinsic way to motivate in which a leader can inspire their followers to follow them. The other way that a leader can encourage people to follow them is through the use of an extrinsic awards based program by offering incentives. There are several ways that a leader can go about doing this. A leader can offer an extrinsic awards based system by offering growth opportunities within the company. Those people who are willing to work hard, promote the change and see productive results can be offered a promotion and overall higher merit within the company. This method inspires people to perform their best with the idea that they will get what they put into the company. The other option to consider if a promotion based system is not possible is to consider stipends, raises or other forms of financial benefits. By doing this, the leader is placing a value on what needs to be changed and showing the employees that the change is really important to them. It also encourages the employees to change as they want to get their hands on some of that financial rewards based incentive.

Extrinsic Rewards from within There is one particular way that Extrinsic rewards can work from within the company: SEARS managers can offer promotion from within. By being promoted, the SEARS employee may feel a sense of pride and loyalty towards the company. The employee will also feel a certain sense of pride when they get a raise. This method is the best way to go if possible. Incentive pay may be incorporated into the organizational change at SEARS. If an employee reaches a certain number of connected and satisfied customers then there will be a bonus gift card. This allows for an employee to set their own goal to work towards and to build up to meeting the criteria of satisfied customers earning an incentive pay reward. Incentive pay, regardless of the specific design, is an extrinsic reward: a reward external to the individual and provided by the organization. Money is the most obvious and prevalent example of an extrinsic reward (Spector, B., 2013). Motivational theory tells us that extrinsic rewards, although powerful, may not be terribly effective in driving long-term behavioral change (Spector, B., 2013).

Extrinsic rewards from without There are several other ways SEARS executives can provide an extrinsic reward without a promotion: SEARS managers can offer a raise to those who are following the change. By doing this, it will give the worker pride along with a financial award. Managers can also offer a one time stipend if a raise is not possible. This will encourage competition within the company and produce better results. By relying heavily on extrinsic rewards to shape employee behavior, organizations risk driving out the intrinsic rewards that might be associated with the work; as a result curiosity, creativity, and problem-solving behaviors may be lessened (Spector, B., 2013) Extrinsic rewards (pay, promotion, praise, and so forth) provided by the organization to employees.

Use of shared diagnosis in the change process Redesign roles, responsibilities, and relationships - Realign job tasks based on talent Changes behaviors - Promote a positive and productive environment - Encourage open dialogue Align behaviors - Retain employees in positions where they are most effective Spector’s definition of shared diagnosis, “a widely held and understood view of the barriers to strategic implementation and outstanding performance” (Spector, 2013). Shared diagnosis is the first portion of a “Sequential Model of Effective Change Implementation.” “The most effective change implementation starts with a diagnosis that is shared by many employees at multiple organizational levels” (Spector, 2013). To diagnose a problem, each level of an organization needs to evaluate and give input for a solution (or multiple solutions). “Diagnosis exposes the current realities of organizational life, with particular attention to the fit between patterns of employee patterns of employee behavior and the strategic requirements of the firm, to discussion and analysis” (Spector, 2013), utilizing input from each organizational level is crucial to a correct diagnosis. Reference: Spector, B. (2013). Implementing Organizational Change: Theory into Practice (3rd ed.). Pearson: Boston, MA.

Survey of Change The first step is to create a goal for the change. Challenging and obtainable Proposed solution to current issue The goal must be measurable. Data collection tools The goal must be something that can be collected with data. - Measurable and obtainable The leadership team must come together and create a goal for change where progress is welcomed and ideas can take place. Change is best when challenging and obtainable. When creating these goals, they all must be measureable. An example might be to increase the goal of sales as opposed to making a goal of having a friendly environment. Collecting data and allowing employees to see the progress made is a great motivation tool. Data holds proof that the changes, while challenging at times, are for the betterment of the company in the long run. Finally, the goal must be made known to everybody and the goal must state that data will be collected.

Measurement The data must be collected and measured. Collection of data through sales projections and surveys Are Sears customers receiving feedback on their concerns faster Have customer responses increased in feedback Must inform the leadership team whether progress is being made or not. Are the changes producing desired outcomes The leadership team must make the results known to all employees. Team motivation meetings Data sharing meetings for notification The data must be collected and measured. This can be done in a few different ways. Sales projections could be looked at to see if customers are buying into the product, or in this scenario, if customers are being responded to in a timely positive manner and having their concerns or feedback attended to. Survey’s about customer satisfaction as well as customer service satisfaction can be given out or offered at the end of a service interaction. The leadership team must meet to compare results and figure out if progress is being made overall or not. If progress is not being made, the leadership team must figure out where improvement is not being made and create short term goals to fix the issue. The leadership team should include everybody who is apart of Sears whether they are customer service reps, management or the custodial crew. The employee room should have a poster board up with the results of the data collection.

Motivation By making visual representation of data, motivation is built. Leadership can see and feel good about the positive change they are making with the company. Employees can see where they are making a change and they can feel good about the company. Employees who are not on board with the change and making progress should be removed.  If the goal of change is to create motivation—as internalized desire on the part of employees—to adopt new behaviors, then organizational leaders need to consider intrinsic rewards as well (Spector, B., 2013) Overreliance on extrinsic rewards, pay in particular, can actually dampen internal motivation.

After-action Reviews After-action reviews provide an opportunity for timely and focused mutual engagement that can lead to quick corrections (Spector, 2009). Daily reviews of online survey submissions. Customer Satisfaction Surveys available after online purchases Random customer satisfaction surveys for new Website visits and registrations Daily monitoring of Social Media tags and Yelp reviews. Review trends and hot-topic issues Prompt responses and resolutions for negative updates or tags on various social media sites (Yelp, Facebook, Twitter, etc.) A team member will be assigned the task of reviewing online after action reviews to ensure customers are providing the type of feedback Sears expects. If there is any lack in the data collected then the process will be reassessed and most likely revised again until the reviews reflect the level of quality expected.

Monitoring Continuous Improvement at SEARS: Weekly reviews of online trends and customer popular items Information can be used to determine upcoming sales and hot-pick items Weekly reviews of Social Media response. Monitoring followers and likes can provide feedback of change success or acceptance among customers. Although the overall success of any change made takes time, SEARS change leaders can monitor short-term success and improvements needed with resources, such as Customer Satisfaction surveys and Social Media customer activity and updates. The initial improvement of customer response time and quality will be tracked and the collection of data will continue to ensure that the customer responses are yielding the results that are intended. Continuous training can be offered to ensure give the team tools to ensure quality when dealing with customer feedback or reviews.

Conclusion Initiate tech savvy team to heighten customer satisfaction Refer to Kotter and Lewin’s Model for change implementation Monitor change progress Maintain levels of satisfaction and continuous improvement Since its humble beginning in 1925, Sears has endured decades of success and hardships. With  the recent evolution of customers who prefer online shopping over visiting Sears and Kmart  stores, Sears continues to close unprofitable stores and has observed a decline in online sales due to poor customer service responsiveness. Sears executives are depending on a new wave of tech-savvy employees that will use social media and a new online store design to re-establish a close responsive relationship with modern Sears customers.  While referring to Kotter’s Theory and Lewin’s three-stage model of change, Sears change leaders will develop a plan of action that expresses the urgency of the Sears brand’s current situation, while introducing technology and customer service based changes needed.  By hiring tech-savvy employees to lead the new social media campaign, encouraging the use of  teams for all staff, utilizing surveys for customer feedback and providing various skills trainings  for veteran staff, change leaders can overcome resistance, create commitment, and provide rewards for ongoing efforts made in revitalizing the Sears customer experience.

References Author unknown (2017). Kotter International: 8 Step Process retrieved from https://www.kotterinternational.com/8-steps- process-for- leading-change/. Cawsey, T.F., Deszca, G., & Ingols, C. (2016).  Organizational Change:  An Action-Oriented Toolkit (3rd ed.).  Retrieved from VitalSource bookshelf. Lampert, E. (July 7, 2017). Sears Holdings: Transformation Update. Retrieved from http://blog.searsholdings.com/eddie- lampert/transformation-update/ Peterson, Hayley. 2017. Business Insider: Sears is closing 43 more stores. http://www.businessinsider.com/sears-is-closing-more-stores-2017-7 Sears Holding Corporation (n.d.). Retrieved from http://jobs.sears.com/why-choose-us/history/