1. Creating and Managing Change
Chapter 18
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Organization Development
Organization development (OD)
The system wide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness.

3. Organization Development
Strategic interventions,
helping organizations conduct mergers and acquisitions, change their strategies, and develop alliances
Technostructural interventions
relating to organization structure and design, employee involvement, and work design

4. Organization Development
Human resources management interventions
Attracting good people, setting goals, and appraising and rewarding performance
Human process interventions
Conflict resolution, team building, communication, and leadership.

5. Achieving Greatness Strategy Execution
focused on customers, continually fine-tuned based on marketplace changes, and clearly communicated to employees.
Execution
good people, with decision-making authority on the front lines, doing quality work and cutting costs.

6. Achieving Greatness Culture
one that motivates, empowers people to innovate, rewards people appropriately, entails strong values, challenges people, and provides a satisfying work environment

7. Achieving Greatness Structure
making the organization easy to work in and easy to work with, characterized by cooperation and the exchange of information and knowledge throughout the organization

8. Managing Change
Shared leadership is crucial to the success of most change efforts—people must be not just supporters of change but also implementers
Change agents
People who create change

9. Motivating People to Change
General reasons for resistance
Inertia
Timing
Surprise
Peer pressure

10. Motivating People to Change
Change-specific reasons for resistance
Self-interest
Misunderstanding
Different assessments
Management tactics

11. Reasons for Resistance to Change
Figure 18.1

12. Motivating People to Change
Figure 18.2

13. A General Model for Managing Resistance
Unfreezing
Realizing that current practices are inappropriate and that new behavior is necessary
Performance gap
The difference between actual performance and desired performance.

14. A General Model for Managing Resistance
Moving
Instituting the change
Refreezing
Strengthening the new behaviors that support the change

15. Force-field Analysis Force-field analysis
An approach to implementing the unfreezing/ moving/refreezing model by identifying the forces that prevent people from changing and those that will drive people toward change

16. Force-field Model of Change
Desired state
Restraining forces
Status quo
Driving forces
Time

17. Specific Approaches to Enlist Cooperation
Education and communication
Participation and involvement
Facilitation and support
Negotiation and rewards
Manipulation and cooptation
Explicit and implicit coercion

18. Methods for Managing Resistance to Change
Table 18.2

19. Methods for Managing Resistance to Change
Table 18.2

20. Harmonizing Multiple Changes
Total organization change
Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.

21. Leading Change
Figure 18.3

22. Sources of Complacency
Figure 18.4

23. Shaping the Future Reactive change Proactive change
A response that occurs under pressure; problem driven change.
Proactive change
A response that is initiated before a performance gap has occurred.

24. Creating the Future Adapters Shapers
Companies that take the current industry structure and its evolution as givens, and choose where to compete
Shapers
Companies that try to change the structure of their industries, creating a future competitive landscape of their own design.

25. Adding Value, Personally
Table 18.3

26. Learning Cycle: Explore, Discover, Act
Figure 18.6

27. Level 5 Hierarchy
Figure 18.7

28. Destination CEO: Coca Cola Co.
What examples can you provide of Isdell’s efforts to deliver Coke back to the world-class status it had once enjoyed?
Brainstorm some new beverage ideas that Coke might consider for the future.
BusinessWeek TV’s Destination CEO
Name: Coca Cola Co.
CEO of Company: Neville Isdell
Themes: Change, Strategy
Suggested chapters: 18, 4
Short paragraph about the video.
Change doesn’t come easy to a 120-year old company. Atlanta-based Coca Cola faced flat sales and increasing competition as a result of its unwillingness to move into product lines outside its carbonated beverage line. The solution? The Board of Directors brought a former executive out of retirement and appointed him CEO. Neville Isdell left Coke in 2001 after 35 years with the company, but he returned three years later. Isdell’s job became initiating change necessary to deliver Coke back to the world-class status it had once enjoyed.
Rather than diversify into new businesses, Isdell led the company on a charge to acquire or develop new beverage brands. Since his arrival, Isdell has been credited with introducing a new corporate branding campaign showing Coke as “the total beverage company.” With his degree in sociology, Isdell is known for his people skills. He is credited with boosting employee morale and trying to change Coke’s culture, which made it slow to recognize health trends that competitors such as PepsiCo. seized. Isdell accelerated the rollout of new beverages like coffee-flavored Coke Blak. Green tea product, Inviga, a diet soda that burns calories, hit the U.S. market in Coke acquired Glacéau and its line of products including Vitamin Water in 2007 to expand the company’s non-carbonated beverage line.
Coke is the largest beverage company in the world and trades under the symbol KO on the NYSE.
3-4 multiple choice questions with answers regarding video topics
Where is the headquarters for Coca Cola located?
Chicago
New York
Atlanta
Los Angeles
Isdell is one of few CEOs who earned a college degree in ______________________.
sociology
biology
anthropology
psychology
Coke introduced a coffee-cola beverage named ___________.
Inviga
Blak
Simba
LavAzza
2-3 essay or discussion questions with suggested answers regarding video topics
What examples can you provide of Isdell’s efforts to deliver Coke back to the world-class status it had once enjoyed?
Students’ responses will vary. Under Isdell’s leadership, Coke has delivered innovative new products and is shedding its prior culture in which change was feared.
Discuss the pros and cons of a corporate strategy of diversification for a company such as Coke. Students’ responses will vary. Unlike key competitor PepsiCo, Coke has decided not to pursue diversified businesses. The goal of diversification is to help reduce risk. PepsiCo has chosen a concentric diversification with Frito Lay, Quaker, Tropicana, and Gatorade; while Coke is choosing to concentrate on a more focused portfolio of beverages.
Brainstorm some new beverage ideas that Coke might consider for the future.
Students’ responses will vary. This question would work especially well for small groups of students to brainstorm and then poll groups on their ideas.