From Student to Chief

MBA 6621 FALL 2012

Authored by:

MBA 6621 Fall 2012 Organizational Change Project Lance King

Table of ContentsOrganizational Change.........................................................................................................................3

Integrated Business Core.........................................................................................................................3

The Business............................................................................................................................................3

The Challenge..........................................................................................................................................3

Implementing Change Analysis.............................................................................................................3

Starting a Business on Campus................................................................................................................3

Preparing for a New Role.........................................................................................................................3

Badger Creek.......................................................................................................................................3

Sense of Ownership.............................................................................................................................4

Duties as Chief Operations Officer...........................................................................................................4

Defining the Operations Department..................................................................................................4

Duties for Operations Team.................................................................................................................5

Resources............................................................................................................................................5

Operation Department Bottleneck..........................................................................................................6

Meetings..............................................................................................................................................6

Implementing Change.............................................................................................................................7

Inside and Outside Forces....................................................................................................................7

Communication with Managers..........................................................................................................7

Re-defining My Role................................................................................................................................8

Future Leadership Recommendations..................................................................................................8

Analyze the Organization and its Need for Change.................................................................................9

Casting Vision upon Others..................................................................................................................9

Create a Shared Vision and Common Direction.......................................................................................9

Separate From the Past...........................................................................................................................9

Create a Sense of Urgency.....................................................................................................................10

Support a Strong Leader Role................................................................................................................10

Line Up Political Sponsorship.................................................................................................................10

Craft an Implementation Plan................................................................................................................11

Develop Enabling Structures..................................................................................................................11

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Communicate, Involve People, and be Honest......................................................................................11

Reinforce and Institutionalize the Change.............................................................................................12

Bibliography.......................................................................................................................................13

Appendix...........................................................................................................................................14

I. Organizational Chart...........................................................................................................................14

II. The Station.........................................................................................................................................15

III. Transformational Change Chart........................................................................................................16

IV. KRA Document.................................................................................................................................17

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Organizational Change Issue

Integrated Business CoreDuring my senior year at Brigham Young University Idaho (BYUI), a class titled Integrated Business Core (IBC) provided three student teams, made up of about twenty people, an opportunity to start and close an on-campus business over the course of the winter semester. Profits from each company would not be received by students, but would be placed in a business account for the University to use in growing the IBC program in the near future.

The BusinessA couple days after Badger Creek, I was elected as the Chief Operations Officer (COO) overseeing six student’s performance (see Organizational Chart in Appendix I). Our company would develop a booth that looked like a train station (see The Station in Appendix II). We would create and bake traditional and specialty pie cookies. Additionally, because we would be selling during the winter season, specialty hot-chocolate would also be sold with candy add-ins.

The ChallengeWhile developing our business, several conflicting circumstances surfaced within the Operations department that caused a need to implement important changes. There is no question that my leadership skills have become more sharply refined as a result of my time as COO. However, the transition from student to businessman caused me to undergo several changes. Much of my transition was due to a lack of experience in the position itself; however, the primary change dealt with how to effectively develop and grow the operations team. In hindsight, I am absolutely grateful for the opportunities I struggled through during my time as COO with our campus business. In order to successfully prepare for future positions of leadership, I wish to implement tools from the Ten Commandments for Implementing Change, Peggy Holman, and others within the Managing Change cases and concepts.

Implementing Change Analysis

Starting a Business on CampusUntil taking the IBC course, I had not experienced starting and closing a business. I initially thought starting a business would be a considerable amount of work. I could not have imagined how exasperated I would be at the end of the semester. I discovered that developing a business involves intimately understanding variables such as a target market, identifying the most cost-effective suppliers, inventory processes, price- elasticity of demand, and others that involve the operations department.

Preparing for a New RoleBadger Creek

In order to unify the companies within the IBC program, the professors had the students spend a few days at an Outdoor Learning Center called Badger Creek in the Teton Valley. This retreat center is owned

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by BYUI and has been built to help students develop leadership and team-building skills that can enable them to be more successful in influencing society for the better. The three IBC groups went through this outdoor retreat with the primary objective of giving companies several opportunities to not only grow together, but eventually to determine the strengths and weaknesses of individuals within the groups. This observational analysis would ultimately assist in identifying the leadership of the company. This was done as the team went through several problem-solving and rigorous obstacle courses throughout each day. At the end of Badger Creek, teams were unified and most had a fairly accurate view on who would become the leadership.

Jick could not have been more accurate when saying that “no matter how much effort companies invest in preparation and workshops… organizations are invariably insufficiently prepared for the difficulties of implementing change.” 1 As a student who quickly became a COO, I quickly experienced frustration as I became distinctly aware that being a leader was not as it appeared in many of the business textbooks I had read years before the IBC program. Jick summarizes my experience well stating that “while the literature often portrays an organization’s quest for change as being like a brisk march along a well-marked path, those in the middle of change are more likely to describe their journey as a laborious crawl toward an elusive, flickering goal, with many wrong turns and miss opportunities along the way.” 2There is no question that my transition into this role was daunting and can be described as a laborious crawl toward what I envisioned success becoming for my team.

Sense of OwnershipUpon receiving the COO position in the organization, I strongly desired for our department to gain ownership for their contribution to the company’s success. I hoped individuals would not simply see the campus business as an upper-level project, but that they would develop ownership for the opportunity of having a successful business while being a student.

As the COO, I constantly strived to help people within operations to correlate what they were doing at a small scale with how large corporate employees perform. I sought to take ownership of my responsibility to help them gain this perspective in order to further prepare my team for post-graduate businesses. This desire closely parallels that of Michael Overdorf, stating that “one of the hallmarks of a great manager is the ability to identify the right person for the right job and to train employees to succeed at the jobs they’re given.”3 My intent was to create an environment where this type of learning and experience was possible; however, the results were not as I had expected.

Duties as Chief Operations OfficerDefining the Operations Department

In order to accurately create an environment where students would be most capable of experiencing a large scale corporate setting, I first defined my role as the COO. My definition was comprised of what I had learned in the business program as well as several summary definitions I discovered within the

1 (Pitfalls; p. 212)2 (What is A Vision, p. 212)3 (Meeting the Challenge of Disruptive Change, p. 61)

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online search engines. I could think of no other way to effectively understand the role a COO played on a day-to-day basis, then to parallel my responsibilities with what COO’s of other companies were doing.

Vision

The vision for the operations department was greatly attributed to the daily duties I gathered through my research of the COO position. This information then provided a basis for the various functions that needed to be filled within our sector. Therefore, upon defining the roles within the department, an implementable and tangible vision began developing as I further understood what the department could achieve. In addition to successfully receiving and preparing goods and services to customers—my vision developed into creating an atmosphere that could positively impact productivity habits to further quality each individual as they prepare to integrate into the workforce. This would develop as each member of the team actively engaged themselves as employees and not simply students fulfilling project requirements for graduation. I believed my vision would inspire an excellence-centered standard within our group. Peggy Holman (Holman) says that “when people see the possibility of contributing to something larger than themselves, they act differently. The emphasis shifts from focusing on ‘why something can’t be done’ to ‘how we can make this happen?’”4 I hoped my efforts to define the duties within the operation department could help create an atmosphere where people had an understanding of their function within operations that was much deeper than simply being a school project.

Duties for Operations Team

ResourcesThe process of how I identified a conceptual framework for the organizations purpose can be directly correlated with two critical components of vision discussed in Managing Change. It is mentioned that vision includes both a roadmap and the emotional appeal or part of the vision which contains a motivational pull that people can relate.5 However, I neglected to consider how important specific processes and values would be in exciting and inspiring the team.

ProcessesAt this time, I only sensed the value the vision would have in guiding the team’s behavior;”6however, after establishing roles I did not effectively establish processes that were specific enough to the skills required to effectively fulfill the position. These processes were too general and even confusing. I refer to Jick’s description of what a person can and cannot do within their role. He says the employee must know the patterns of interaction with employees and product distributors, coordination of when specific tasks were to be executed, and effective communication channels available, if needed.7 I had defined the duties of the operations team, but was not as specific as I needed to be in order for the employee to perform in a consistent manner.

4 (What I Learned, p. 612)5 (N. & M., 1986)6 (What is Vision?, p. 114)7 (Processes, p. 62)

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ValuesDuring our retreat to Badger Creek our Company developed specific values that defined our organization. Our values would be the standard that we set priorities. Jick mentions that good management has clear, consistent values that have permeated the organization. He further mentions that the core business values should be consistently understood; that the values define rules its employees must follow for the company to prosper.”8 If this advice would have been applied from the very moment I became COO, I believe the cantankerous situation that surfaced could have been significantly mitigated if not eliminated from our department. Instead, I failed to train and remind the operations team about what we stood for as individuals within the company. I foolishly assumed that values were to be refreshed often by the Chief Executive Officer (CEO) and completely neglected the opportunity to assist in stimulating the company culture.

Operation Department BottleneckWithin two weeks, the initial excitement of starting a business had dissolved; I became aware of tasks not being performed as promptly they had a couple weeks prior. I couldn’t understand why people were not as energized to perform as they once had. Something needed to change. Sales were increasing rapidly and we were unable to meet consumer demand due to a lack of inventory. Also, it came to my attention that people were not showing up to work when they were scheduled. Both of these issues were the direct responsibility of my Supply and Scheduling Manager. On the surface it would appear that the student was motivated, and would re-assure me he or she was on task, but in reality this person was not performing effectively. It felt as though I was the only person that was motivated toward being successful within my role. This may have been due to the lack of clarity of the specific, day-to-day processes; as well as the lack of value awareness.

Meetings

Typically I was meeting with the entire department each Monday in order to debrief the week prior and to develop an action list for the current week. These meetings seemed to be effective. However, it remained unclear on why people were not making their company responsibilities a priority. I sincerely wanted to instill a desire for the team to contribute to the company vision with more than their head and hands. I also wanted people to engage their hearts and thereby unleash the power of the individual to contribute with meaningful intentions.9 In hindsight, more time should have been placed on incorporating our foundational company values into distinct processes. In order to capture the bottleneck, my managers would meet with me individually, in addition to a weekly meeting, to report specific details of how things were functioning within their respective responsibilities. Overtime, processes began to improve and inventory was not an issue anymore; conversely, a lack of enthusiasm remained within the group despite my best efforts to motivate individually and collectively. After a couple weeks of effectively managing productivity, it was time to uncover the inside and outside forces behind the resistant behavior.

8 (Values, p. 63)9 (What I Learned, p. 614)

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Implementing Change

Inside and Outside ForcesIn order for me to effectively make changes to align the hands, heart, and mind execution within the department, I decided to uncover inside and outside forces that were the root cause for the lack of feeling being placed in the day-to-day activities. Jick says that these forces must be considered when preparing for change. That no matter how committed I was, there would “always be factors outside [my] control that may have a profound impact on the success of the change process. These external, uncontrollable, and powerful forces are not to be underestimated, and they are one reason some have questioned the manageability of change at all.”10 At times I questioned whether or not changing the intent would be possible given the attitude most had adopted with operations. In order to effectively discover the need for change I took the initiative to meet with each of my managers with the purpose of listening to what they felt was the source of the crabby and unmotivated approaches to operation tasks.

Communication with ManagersAlmost four weeks had gone by and I did not feel I was in sync with my managers. It seemed they had transitioned into “project-mode” as students fulfilling only what was necessary to receive a grade in the course. I wondered if it was too late in the semester to make the overdue changes. As I met with my managers to ask them what they thought were the primary issues weighing down the vision I strived to implement, I was shocked at the response of my supply manager.

Supply ManagerI met with my supply manager before my scheduling manager thinking there may be some external forces that were more difficult to fulfill than what I had been led to believe. As I listened to my manager, I discovered that the only external issues were that on the occasion there was a need to drive from Rexburg to Pocatello to purchase extra inventory of our popular chocolate chip cookies. I became informed that there was talk among the department that I seemed to be more of a task master than a leader. This man further helped me understand that I was not communicating my vision in practice; that in order for me to clearly demonstrate my intents; I should consider “running and then inviting others to run with me.” Many of my efforts were then complemented, but then I received encouraged to do more with individuals to demonstrate my commitment to the vision; that unless I made time to make time to assist people with their duties, I would appear condescending and insincere—touting demands without communicating to employees that they too can take ownership of the vision. It was brought to my attention that my department viewed the vision as being mine and not theirs; that at times I came across as a person who gave orders in a way that doubted their capability to successfully achieve them.

Scheduling ManagerAs soon as I had spoken with my supply manager, I quickly contacted my scheduling manager to request her thoughts and opinions regarding internal forces that need to be reevaluated. After internalizing what my supply manger had mentioned, it became apparent that perhaps I had been communicating a different message than I had thought. This was greatly due to my inexperience as a leader. More experience as a leader may have helped in developing n more refined awareness of what my actions

10 (Common Pitfalls of Implementation, p. 212)

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were communicating. Upon meeting with this manager, I immediately apologized if I had unknowingly offender her in any way. I then invited her to share what she thought was distracting from the department vision. The response was similar to the supply manager, in that I would delegate many tasks, but that I did not reflect a leader who served outside of his duties. Both of these responses were more informative than I could have hoped. At that point, I realized that the bottleneck was not with the employees as much as I thought. I needed to be the change I wanted in others. It wasn’t enough for me to establish goals and facilitate orders—I needed to refine my role as the COO.

Re-defining My Role

It has been said that “We know so much about leadership, yet we know too little. We can define it in general, but find it hard to particularize. We recognize it when obvious, but it is not always obvious why. We practice leadership, which implies we are still preparing for the real thing.”11 Fortunately, my experience as the COO was a school project. The IBC atmosphere provided me an opportunity to realize how leadership can be a process and not an event. If I was in a corporate setting, I might not have survived as the COO as long as I had. I had felt confident in my responsibilities as a COO at the beginning of the semester; however, when un-covering the major bottleneck to the department vision, I discovered that being a leader is not simply having knowledge of responsibilities and then implementing textbook principles in order to achieve a specific result.

Bob Galvin says that leadership is analogous to a tree whose shadow falls where the tree is not. The shadow being representative of the leader’s action radiating far beyond his perceptions. He further indicates that there seems to be a paradox within leadership due to the leader being a finite person with an apparent infinite influence. After meeting with my managers, I quickly recognized that in order for me to create an influential environment where students could develop characteristics that would increase their value-added to an upcoming employer, I needed to re-evaluate my leadership assumptions.

In addition to re-considering my role as a leader, I met with the CEO and asked if I could make a public apology. When addressing the company, I mentioned that it had been brought to my attention that as COO I may have offended several people, unknowingly. I specifically mentioned that I had been unaware that I may have come across as condescending and more task-oriented than people oriented—that I was performing according to my vision rather than a shared vision of my department. I then expressed my intent in how I would begin my change process by first increasing the communication of my intents as I involved myself more intimately in the duties of my team; with hopes that the teammate would adopt the same spirit of zeal and motive for success as a team. Additionally, I mentioned I would make it a priority to consistently understand the bottleneck concerns of the department. Lastly, I would further focus on the values of the company as they are taught in meetings and in practice.

Future Leadership Recommendations

11 (Galvin, p. 122)

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Good leaders are said to be those who learn more quickly and surely from the past, select correct advice and trends, chooses the simpler work patterns, and combines the best of other leaders.12 My experience as COO with our on-campus business has been defined as transformational due to the initial leaf of faith the organization undergoes in launching and growing it. A process then follows where often growth reaches a plateau, declines until a distinct bottleneck has developed such that an emergence of a new state is needed (see Transformational Change Chart in appendix III).13 In the case of becoming a more effective leader, Linda Ackerman suggests developmental change—where improvements of skills, methods, or conditions need to meet a higher expectation. Jicks Ten Commandments for Implementing Change will serve as the foundation for guiding my future leadership recommendations.14

Analyze the Organization and its Need for ChangeAs an implementer of an organizations resources, processes, and values, it is important to first consider the strengths and weaknesses of the environment and how it will be affected by proposed changes or implementations. Since this information must be sound, it is important to first seek to understand the history of both the people and current processes. When I became COO I made time to evaluate which position would be most representative of each person within operations. However, because I would be overseeing the implementation of the organizations resources, processes, and values, it should have given these variables more attention as they are directly correlated with the vision of department.

Casting Vision upon OthersBecause resistance is likely when implementing change in an organization, it is important not to force the change on others. Instead, it will be important to discuss critical components to the vision in order to transition an old way of thinking—where people simply do as they are told; to a “what can I do” mentality where people share the vision.15 This information will be especially valuable to the influencers within the group as they are typically those who are committed to the organization and can help motivate employees who are resistant to the change.

Create a Shared Vision and Common DirectionAs the vision is developed, it should combine the suggestions of employees at all levels of the organization. The vision will directly reflect the philosophy and values of the people who will be serving its purposes; therefore, it will be critical to consistently remind employees of what they have created. As people take ownership of the vision, it will be displayed in their productivity through their attitudes and behaviors. I would have reduced the amount of time spent understanding the lack of motivation and intent with employees if a more common direction was created in the creation of the department.

Separate From the PastIt was said that I appeared to be condescending when introducing various implementation tactics. This may have been a perception that ensued because many of the students knew before attending BYUI I had pursued a career path where I was involved with many operational duties. Conversely, it is also

12 (Galvin, 2011)13 (Three Perspectives on Change, p. xxi)14 (Ten Commandments for Implementing Change, pp. 214-220)15 (Exhibit 2 Changing Assumptions, p. 615)

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possible that I was unknowingly being condescending. In either case, in order to insure the most valuable structures and routines are developed, it will be extremely important to anchor on what is known about the individuals and the organization. When making changes, a leader should identify various structures that are needed and unwanted for the adjustment within the vision.

Create a Sense of UrgencyAs a COO I was constantly striving to hedge against not having enough inventory. Therefore, either the student responsible or I would drive down to Pocatello in order to ensure we had enough product to supply a spike in demand. In this situation, it was important to be sensitive to costs of holding backup inventory. In the case of creating urgency, it was important to help employees understand that without inventory; we have no product to sale and do not make money. I was not very effective in creating urgency for our team because there were many weeks in toward the beginning of the semester where we did not have enough cookies to sell. I had a supply manager whose primary purpose was to report the inventory count each week. However, rather than constantly talking about ways to improve our units on hand, I assumed that he could fulfill the position adequately because it was his most important duty. Holman says departments should be constantly learning and changing together. Leaders should not only take suggestions of how a process should be improved, but should also provide recommendations and collaborate about how they will increase production.

Support a Strong Leader RoleMy greatest change advocate was the CEO of our company. A leader should not only communicate to this leader when necessary, but should communicate forward. This type of communication alludes to building a relationship that can support future changes with the business. For example, I had developed trust with the CEO in stating a need to apologize to the company and refine my role as COO. She then scheduled a meeting where I could extend my apologies and receive feedback that could help eliminate the operations bottleneck.

Line Up Political Sponsorship A strong leader role can significantly help guide and motivate organizational changes. Having our CEO schedule a meeting to improve departmental issues increased the motivation within the managers of my department and others. Given the circumstances of my department, it is not likely I would have received the degree of support needed to make changes as I did with the CEO present. It was additionally valuable to have had the support of my supply and scheduling managers. When seeking to win sponsorship, “it is not necessary to get unanimous support: participation can be representative, not universal.”16 What is most important is that the support is gained of the most influential and committed people within the critical mass that is needed to ensure the effectiveness of the change. A strategy to identify and reach these people should be developed and tracked accordingly.

16 (Line Up Political Sponsorship, p. 216)

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Craft an Implementation PlanWhen I first received the position of COO I quickly began creating a vision and implementation plan. In order to develop a plan that is not too detailed. A plan that is too detailed can be demoralizing and dissuade employees from wanting to work for the right reasons. One way to create a plan that is manageable is to meet with the team to discuss an outline of possibilities for department goals, tasks, processes, reporting, etc. This plan should be subject to change as the department will most likely grow and therefore need to change. After a department plan is crafted, an employee implementation plan should be developed for each new employee. One company creates what is called a Key Results Area (KRA) document (see KRA Document in Appendix IV). “This document includes the primary job responsibilities of the role being filled.”17It be reviewed and signed by both the employee and department manager. The KRA is subject to change and can be used for performance based incentives.

Develop Enabling StructuresThe implementation plan should be complemented with several enabling structures that will help facilitate the spotlight of change. When large-scale change is implemented, Holman recommends a systematic approach ensuring the what, who, and how are established. These systems should be either practical or symbolic in nature. Regardless, of whether practical systems such as workshops and training programs, or symbolic systems such as a physical change in workspace, these structures should be consistent and well-though out.

If congregating around issues as we did within the operations department, it would be wise to parallel the structure of the workshop created for Marconi by Mike Parton. One of the primary purposes to these workshops was to develop trust as a shared vision was developed upon of what kind of change needed to be enforced. During this meeting delegates were separated into groups and were invited to express suggestions for change. This setting was also created to allow people to talk through some of the emotions they had felt with the change of circumstances. Holman would describe workshops as an opportunity to create a shift from a mechanical to organic way of working. This type of setting will help a leader uncover conditions for trust and community.

Communicate, Involve People, and be Honest In the Broadway Brokers simulation, J.T. Carpenter sent a letter bluntly stating that major cutbacks would be taking place over a period of 4 months. The reason for scaling back employees was that they needed to tighten their belts in order to make a profit for their stockholders.18 Cutting costs would help the company gain market share, but not loyalty and trust from employees. Effective communication is one of the most important aspects of a successful business. Mr. Carpenter would have been much more effective to have his management relate the upcoming changes in order to further create a culture that can recognize and thrive on change in the future. This type of change needed to be address in a setting where people can ask questions and where the leader can gain trust by displaying empathy. It is strongly recommended that the leader also identify who is affected, a course of action, and how people will be kept informed of the change. Jick says that real communication requires dialogue.

17 (Ramsey, 2011)18 (Broadway Brokers, p. 387)

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Reinforce and Institutionalize the ChangeAs the change is implemented, the leader will gain the trust of the employees by running and inviting others to run with them. I had to learn this through an uncomfortable experience with my team. Because change is a continuous process, leaders must constantly prove their commitment to the implementation process.19 As employees display such demonstrate their commitment to the vision of the organization they should be recognized for their contributions. This recognition should happen immediately and in meetings in front of others, if appropriate. This approach ultimately reinforces behaviors that are being aligned with the shared vision.

19 (Reinforce and Institutionalize the Change, p. 219)

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BibliographyAckerman, L. (2011). Three Perspectives on Change. In M. A. Peiperl, & T. D. Jick, Managing Change (p.

xxi). New York: McGraw-Hill.

Galvin, B. (2011). Exhibit 1. In M. A. Peiperl, & T. D. Jick, Managing Change (p. 122). New York: McGraw-Hill.

Holman, P. (2000). What I Learned. In M. A. Peiper, & T. D. Jick, Managing Change (p. 612). New York: McGraw-Hill.

Holman, P. (2011). Exhibit 2 Changing Assumptions. In M. A. Peiperl, & T. D. Jick, Managing Change (p. 615). New York: McGraw-Hill.

N., T., & M., D. (1986). In The Transformational Leader (p. 130). New York: John Wiley .

(2000). Broadway Brokers. In M. A. Peiper, & T. D. Jick, Managing Change (p. 387). New York: McGraw-Hill.

(2000). Line Up Political Sponsorship. In M. A. Peiper, & T. D. Jick, Managing Change (p. 216). New York: McGraw-Hill.

(2000). Reinforce and Institutionalize the Change. In M. A. Peiper, & T. D. Jick, Managing Change (p. 219). New York: McGraw-Hill.

(2011). Common Pitfalls of Implementation. In M. A. Peiperl, & T. D. Jick, Managing Change (p. 212). New York: McGraw-Hill.

(2011). Meeting the Challenge of Disruptive Change. In M. A. Peiperl, & T. D. Jick, Managing Change (p. 61). New York: McGraw-Hill.

(2011). Processes. In M. A. Peiperl, & T. D. Jick, Managing Change (p. 62). New York: McGraw-Hill.

(2011). Ten Commandments for Implementing Change. In M. A. Peiperl, & T. D. Jick, Managing Change (pp. 214-220). New York: McGraw-Hill.

(2011). Values. In M. A. Peiperl, & T. D. Jick, Managing Change (p. 63). New York: McGraw-Hill.

(2011). What is Vision? In M. A. Peiperl, & T. D. Jick, Managing Change (p. 114). New York: McGraw-Hill.

Ramsey, D. (2011, September 16). Key Results Area. Retrieved December 13, 2012, from Dave Ramsey: http://www.daveramsey.com/article/entreleadership-kra/lifeandmoney_business/?ectid=sfkra

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Appendix

I. Organizational Chart

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COOLance King

Assist. Supply Manager Inventory Production

Supply Manager

Scheduling Manager


II. The Station

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III. Transformational Change Chart

Picture from changeleadersnetwork.com

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IV. KRA Document

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Documents

From Student to Chief