No Good Deed Goes Unpunished, Group Eta 1 Running head is a different font Organizational ManagementNo Good Deed Case 1 (Group Eta) MGT-6681/ MSM 6635 Chengyan Sun Jinqiu Chang Celona Cotton No Good Deed Goes Unpunished, Group Eta 2 Case Study: No Good Deed Goes Unpunished With a historical prominence of over 20 years of existence and vitality, The Community Festival has afforded an arena for art and crafts, inspired and created by local artists. The organization’s infrastructure is contingent upon its classification as a non-profit organization. Funding for The Community Festival is received via charitable donations, predominately; however, the past six to twelve months have earmarked a diminishing financial contributory system that has compelled the organization to pursue alternative measures such as grants and soliciting artistic talent within the national sector. The Community Festival has also experienced a significant decrease in the census and participation of local artists. Our consulting company has been hired to provide an effective change management plan that will foster organizational viability, maintenance of credibility, and reputable community relations. An awareness of the need for changing The Community Festival’s current methodical approach was elicited by the following symptoms: dual employment amongst supervisors and staff members; constraints and concerns with staffing; lack of formal training being conducted; absence of a Code of Conduct Policy and Employee Handbook; nonexistence of policy and procedure manual relating to the organization’s fundraising activities and employee engagement; and decision inconsistencies from the Board of Directors. Analysis a. External analysis- There are several external factors which hinder or promote the health of The Community Festival’s organization. In relativenesswrong word to No Good Deed Goes Unpunished, Group Eta 3 the industry of non-profit entities, governmental constraints, regulations, and mandates can aide in tax relief for many establishments. A journal article entitled, THE ATTACK ON NONPROFIT STATUS: A CHARITABLE ASSESSMENTnot apa further reiterates such benefits. It reads, American nonprofit organizations receive favorable tax treatment, including tax exemptions and tax-deductibility of contributions, in return for their devotion to charitable purposes and restrictions not to distribute profits (Hines Jr., J. R., Horwitz, J. R., & Nichols, A., 2010). Contrarily, having the entitlement of not for profit can also foster disadvantages, according to certain theorists. One might argue that governmental mandates often create stifling regulations thereby prohibiting any significant opportunity for overt financial advancement within the organizations. Further research declares, Laws from various doctrinal areas and levels of government regulate nonprofit organizations, including the common law of trusts and property, tax law, state business and nonprofit codes, as well as formal and informal powers held by state attorneys general.15. In Uncharitable: How Restraints on Nonprofits Undermine Their Potential, Dan Pallotta, founder of the company that created the successful AIDS rides and Breast Cancer 3-day events, uses the Grameen Bank as an example in arguing that nonprofits are unduly hampered because they are denied the business tools available to forprofits.51 More generally, Pallotta (yr) explains that in every dimension—from executive pay to advertising to raising capital— No Good Deed Goes Unpunished, Group Eta 4 nonprofits would be better off if they could act more like for-profits. Moreover, public policies and our culture of nonprofits not only make nonprofits ineffective and inefficient, but immoral.53 (Hines Jr., J. R., Horwitz, J. R., & Nichols, A., 2010). Not apa Funding for nonprofit organizations is formatted through charitable donations via private donors or grants. The amount received, dependent upon governmental approval and personal preference of private donors, are non-controllable factors in which the industry has little control over-posing as a threat(s) within the external environment. An article entitled, The Emerging Capital Market for Nonprofits, How market mechanisms from the private sector could energize the nonprofit world expounds upon such.not apa As a means of clarity, Surveys of nonprofit executives indicate that they spend more than half their time raising money. The ongoing pressure for funds often makes them vulnerable to their large donors’ special preferences and demands, distracting them from their core mission and potentially compromising future performance (Kaplan, R. S., & Grossman, A. S., 2010). Environmental Pressures Fashion Opportunity Development of artistic diversity as it relates to current trends in the market Mandate Governmental declaration of organization being tax exempt; Implementation of organizational policy and procedure Threat Inability to mimic current artistic trends on a global stage and foster competition due to lack of funding and decreased participation of local artist. Non-compliance with policy and procedures and government regulations No Good Deed Goes Unpunished, Group Eta Geopolitical Capitalizing on local artist’s talents and historical landmarks via geographic location Market declinedelete Inclination to view talent of local artist Utilization of e-commerce, televised commercials, radio broadcasts to market the industry Hypercompetitionthe video and documents clearly indicate that this is an internal issue. Also, as noted in the video, this dimension is mistitled. 5 Nonregional vendors capitalizing on local artist’s talents; Local artists outsourcing their products to more affluent constituents Less promotion of artistic work Large competitor field due to technological advancements, both locally and globally External analysis is incorrect and underdeveloped. Perhaps we need to talk. b. Internal analysis- Notable inclusive factors of opportunity and threats are within The Community Festival’s association. Our consulting company chose to include the factors due to the significant impact each will impose upon the sustainability of the organization. Opportunistic components include,no. opportunities are external only. established organizational identity through longevity in regards to years of existence; credible history within the local community; and sound community relations. Disadvantages or threatsexternal to the business were also entailed in the symptoms that triggered an attentiveness to change. Diminished participation and monetary support of local artists, non-structural organization and accountability, unapproachable supervisors and board members, the absence of team collaboration, indecisive board members thereby resulting in stagnated organizational progression, and the inability to maintain a consistent staff census are all substantial internal factors, which hinder growth within The Community Festival’s environment. No Good Deed Goes Unpunished, Group Eta 6 Too much white space Diagnostic Star model has been chosen as a means to implement change for this particular case study. The Communities Festival’s current organizational structure lacks several of the vital components comprised within the Star Model- whereby, notable in the initial analysis relating to the necessity for change. Adherence to policy and procedures as well as structural cohesion is the underlying framework of this particular model and our consulting company has found this prototype to be most effective for this case. Ian Palmer, Richard Dunford, and David A. Buchanan, authors of Managing Organizational Change, A Multiple Perspectives Approach outline the entities of the Star model, “for an organization to be effective, its strategy, structure, processes, rewards, and people practices have to be in alignment” (Ian Palmer, Richard Dunford, David A. Buchanan, 2017). The strategy is vital and creates the pathway or direction for the company. Experts declare it as being a dominant role in organizational systems. This case study reflected an absence of a definitive strategic plan and outlay for the company and its operations.incorrect. this is not analysis. This simply describes the model. Your task here is to describe each of the star components for this organizations. Structure entails formal authority relationships, roles within organizations, and reporting relationships. There were several incidents within the case exemplifying poor or non-effective authoritative encounters amongst supervisors and staff members. In addition, staff members also reported feeling reluctant to report problems to supervisors based on political decisions and No Good Deed Goes Unpunished, Group Eta 7 personal favoritism displayed by those in authoritative positions.This is incorrect, because it does not describe structure. Processes and lateral capability are comprised of networks and the coordination of the organization’s agenda and activities. Lack of team collaboration, the absence of policy and procedure relating to staff training as it relates to advertisement and logistics are prominent factors affecting the progression of the festival’s advancements. Reward systems are viewed as measurable and how individuals are compensated. In the referenced case, volunteers and staff members had no specified outlay of assigned job descriptions or goals. Although the company is a not for profit organization, the lack of values and behaviors can and will affect the over health and growth of the organization. People Practices entails the human resource aspect of an organization and upon review of this case; the staffing and learning development is noticeably unestablished. It was reported by the board of directors that it “sees no need to take the time to develop specifics such as rules of conduct, expected behaviors, or guidelines” (Diane Bandow, Tish Matuszek, Michael Anderson).not apa No internal tables. This section is incorrect and underdeveloped. External factors impacting change The external factors that are impacting change in this case can be seen with regard to the relationship of that is between the staff and the artists. As it can be seen from the artist’s admissions, the relationship between the organization and the artists is already bruisedinternal. This makes it so difficult to involve the artists even if the organization decided to change because they would not cooperate with the organization. The local artists have already decided not to No Good Deed Goes Unpunished, Group Eta 8 apply for a vendor position in upcoming festivals and this shows their reluctance in cooperating with the organization. For this reason, this external factor will impact the change. Importance of external forces In every organization, the external issues are very important to look into because they affect the organization in a great way. The reason why this is the case is because these issues determine whether an organization will run smoothly or not. As for this organization, the external issues are very important, because they will determine whether the organization’s activities will be accomplished smoothly or not. as it is, since the artists started having a bad attitude about the organization they have avoided applying for a vendor position for the upcoming festival and as such the organization lacks the local artist and now have to invite national artistsinternal – this does not effect the entire industry. This effects only your organization. and this leads to spending more money than would have been used if the local artists participated. Internal factors impacting change One of the internal factors impacting change in this case is communication breakdown. As it is, the people in the organization do not communicate with each other effectively as they ought to. This makes it hard for the people to agree on a particular way forward. An effective type of change is the one that would involve every member of the organization agreeing to it and actually taking part to make it a success. With lack of proper communication, it means that the members of this organization cannot move together. Another internal factor is the personality conflict. This makes it hard for the people to agree on things since almost everyone has their own different opinion. No Good Deed Goes Unpunished, Group Eta 9 The organization’s culture The paradigm: the paradigm of the members of this organization shows that the members are not in consensus with the kind of the basic elements that the organization stands for. Incorrect – this does not describe a paradigm Rituals and routines: the people in the organization do not treat each other, as they ought to. The staff especially treats the volunteers in an inhumanedisrespectful? way. Most of the members of the staff do not believe in respecting the juniors. Stories: the stories told by the organization’s volunteers show that the organization is not in the position it should be. They are stories that have the potential of tarnishing the name of the organization. Control systems: in the organization, it is unclear to know what is valued and what is not because the people are not treated well and not rewarding is done even if one does very good. You did not describe the control systems that are in place or likely to be in place. Power structures: The way the people in authority, treats the rest is very bad. There is even a group of untouchables in the organization, and this means no matter what they do no one would question them. Organization structure: in this organization, the tasks of every individual are not clear. How is the organization structured? If you had to draw the organizational chart, what would it look like? Structural dilemmas No Good Deed Goes Unpunished, Group Eta 10 Among the structural dilemmas evident in this case is lack of clarity vs. lack of creativity. In this dilemma, the people in the organization have not been clearly given identified and specified roles. If the roles were clearly identified and specified, the people would be in a position to become creative in their fields but this is not the case in the organization. Another example of a structural dilemma that is evident in the case is irresponsible vs. unresponsive. In this dilemma, the leaders are irresponsible and this has brought about a scenario whereby the workers have become unresponsive to the point that some volunteers have preferred to leave the organization. What are the things that they are doing correctly? You do not have the luxury of discussing only a couple of problem areas. As noted in one of the videos, you have been hired to help and a comprehensive analysis is the necessary groundwork. Organization’s readiness to changethis is meaningless.Build the table, complete the analysis, and interpret the score for the reader. Question Circled number 1 1 2 1 3 1 4 1 5 1 6 1 7 1 No Good Deed Goes Unpunished, Group Eta 11 8 4 9 2 10 7 11 1 12 3 13 2 14 7 15 2 16 6 17 5 18 1 19 1 20 7 Too much white space Interpretation of the table The score is 55. This means that much work need to be done to develop an effective change program. Is this organization ready to change? Yes or no? Formulation No Good Deed Goes Unpunished, Group Eta 12 In order for the company to flourish, an aggressive intervention must be embarked upon by way of the Second-order change methodology. “Second-order change does your analysis support second-order change? leads to organizational transformation, by introducing new products, services, and ways of doing business, based on creative lateral thinking that alters current core assumptions” (Ian Palmer, Richard Dunford, David A. Buchanan, 2017). Usage of such an approach would remedy the problems of absence of team cohesiveness, lack of accountability, unstructured organization, and complacency with current nonproductive organization management style by fostering ingenuity and collaborative working environments within The Community Festival’s organization. Too generic. Needs specific recommendations. Conclusion The Community Festival’s organization has the potential of a great establishment, by way of critical construction. Its current way of operating has proven to be non-productive in terms of poor interrelations among staff members, inadequate and misguided leadership, and absence of a strategic business plan. However, embracing the concept of our consulting company’s suggestive change tactics will aid in the transformation process, which will prove to be beneficial towards the continuum of its growth and development. Authors William G. Nickels, James M. McHugh, and Susan M. McHugh of the book entitled Business Connecting Principles to Practice declare,Not APA “Managing change, then, has become a critical managerial function. That sometimes includes changing the whole organization structure. Some change may occur in nonprofit and government organizations as well as businesses” (Nickels, McHugh, & McHugh, 2014). Success is a product of intentional navigation and implementation. It can be visualized as an effectively orchestrated map. No Good Deed Goes Unpunished, Group Eta 13 Referenceswhy is the left margin so far to the right? Germak, A. J. (2011). Uncharitable: How Restraints on Nonprofits Undermine their Potential by Dan Pallotta: Medford, MA: Tufts University Press, 2008, 312 pages. Administration in Social Work, 35(4), 449-450. Hines Jr., J. R., Horwitz, J. R., & Nichols, A. (2010). THE ATTACK ON NONPROFIT STATUS: A CHARITABLE ASSESSMENT. Michigan Law Review, 108(7), 1179-1220. Kaplan, R. S., & Grossman, A. S. (2010). The emerging capital market for nonprofits. Harvard business review, 88(10), 110-118. Nickels, G., McHugh, J., & McHugh, S. (2014). Business Connection Principles to Practice, 2nd edition. New York: McGraw-Hill/Irwin. (n.d.). Retrieved from https://troy.blackboard.com/webapps/blackboard/execute/content /file?cmd=view&content_id=_10289757_1&course_id=_467121 _1&framesetWrapped=true Burke, W. W. (2010). Organization change: Theory and practice. Thousand Oaks: SAGE Publications. Cummings, T. G., & Worley, C. G. (2009). Organization development & change. Australia: South-Western/Cengage Learning. Fox, W. (2006). Managing organizational behavior. Cape Town, South Africa: Juta. Graetz, F. (2011). Managing organizational change. Milton, Qld: John Wiley and Sons. Hussey, D. E. (2000). How to manage organizational change. London, Angleterre: Kogan Page. Jabri, M. (2012). Managing organizational change: Process, social construction, and dialogue. Basingstoke: Palgrave Macmillan. Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple perspectives approach. New York: McGrawHill Irwin.This is not the current text, which I do not see cited here. Pathak, H. (2010). Organizational change. S.I.: Pearson. No Good Deed Goes Unpunished, Group Eta 14 Robbins, S. P. (2009). Organizational behaviour: Global and Southern African perspectives. Cape Town: Pearson Education South Africa. MSM 6635 -- Written Work Grading Standards Student's Name:______________________________________ Abbreviated Title:____________________________________Date:________ (1) Responds fully to what the assignment asks; (2) Presents a manifest topic statement containing the issue to be analyzed and the position to be taken; (3) Exercises critical thinking that is clear, logical (coherent & relevant), deep, broad, and discriminating; (4) Expresses its purpose clearly and persuasively; (5) Invokes A-level and uses disciplinary facts correctly; (6) Provides adequate supporting arguments work with reasons, evidence, and examples; (7) Is focused, well organized, and unified; EXCELLENT (8) Uses direct language that is appropriate for the audience; (9) Invokes discerning sources when appropriate; (10) Correctly documents and cites sources; (11) Is free of errors in grammar, punctuation, word choice, spelling, and format; and (12) Displays originality and creativity in realizing items (1) through (9) above. B-level work VERY GOOD Realizes high quality in (1) through (11) fully and completely --- but does not reveal originality or creativity. C-level Realizes adequacy in (1) through (11) and demonstrates overall competence --- but No Good Deed Goes Unpunished, Group Eta 15 work contains a few relatively minor errors or flaws. A "C" paper may show great ADEQUATE creativity and originality, but those qualities don't compensate for poor or careless writing. A "C" paper is adequate in all regards but could use polish and usually looks and reads like a next-to-final draft. D-level work WEAK Fails to realize some elements of (1) through (11) adequately and contains several relatively serious errors or flaws or many minor ones. A "D" paper is less than adequate for public presentation and often looks and reads like a first or second draft. F-level work POOR Fails to realize several elements of (1) through (11) adequately andcontains many serious errors or flaws as well as many minor ones. An "F" paper usually contains fatal errors of thought or execution and usually looks and reads like private writing. (1) Responds fully to the assignment EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (2) Presents a manifest topic statement identifying the issue and the position EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (3) Exercises good critical thinking EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (4) Expresses its purpose clearly and persuasively throughout EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (5) Invokes and uses disciplinary facts correctly EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (6) Provides adequate supporting arguments EXCELLENT GOOD with reasons, evidence, and examples NOT QUITE ADEQUATE WEAK POOR (7) Is focused, well organized, and unified NOT QUITE ADEQUATE WEAK POOR EXCELLENT GOOD No Good Deed Goes Unpunished, Group Eta 16 (8) Uses direct language that is appropriate for the audience EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (9) Invokes discerning sources when appropriate EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (10) Correctly documents and cites sources EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR (11) Is free of errors in grammar, punctuation, word choice, spelling, and format EXCELLENT GOOD (12) Displays originality and creativity EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR EXCELLENT GOOD NOT QUITE ADEQUATE WEAK POOR Overall Evaluation NOT QUITE ADEQUATE WEAK POOR (http://www.siue.edu/~deder/grrub.html, Retrieved Aug, 21, 2006.) ADDITIONAL COMMENTS: Ways to improve: 1. 2. 3. 4. 5. 6. Watch the videos for directions about how to deal with the case. Use the APA Style Manual to correct all style mistakes. Complete all analyses as directed. Use the videos to get clarity about the different between internal and external analysis. Keep the format consistent and parallel across sections. Perhaps we should talk. No Good Deed Goes Unpunished, Group Eta 17 1 WHEN NO GOOD DEED GOES UNPUNISHED: THE CASE OF THE MISPRINTED PHONE NUMBER Diane Bandow, Troy University Global Campus, Atlanta, GA Tish Matuszek, Troy University Montgomery Campus, Montgomery, AL Michael Anderson, Atlanta, GA ABSTRACT Mark volunteered to help with the community arts festival; he was supporting the not-forprofit organization as he had in the past. However, he did not know his good intentions as a volunteer would cost him his job as an assistant manager. The retail store’s phone number was printed in the festival advertising in error and ticket requests overloaded the phone lines, causing loss of business and annoyed the store manager. As a result, Mark was seen as the cause of the problems and terminated. The Board of Directors did not respond to his request for an investigation, leaving Mark without a job and wondering what had happened to cause an unhappy experience when he had such good intentions. Teaching objectives:  Identify the impact of substantive areas of organizational behavior in a realistic scenario  Define how various leadership and motivational models may be used best to improve productivity and job satisfaction within organizations.  Demonstrate how various leadership and motivational models may be used best to improve productivity and job satisfaction within organizations  Demonstrate the importance of an ethical approach to business  Provide an example of how various aspects of organizational life can create negative impacts internal and external to the organization  Provide an opportunity for critical thinking as noted through multiple opportunities to incorporate theory and resolve problems  Apply organizational-behavior strategies to management scenarios utilizing a systems approach  Discuss methods for undertaking planned-change programs within organizations.  Create realistic problem resolutions  Create realistic action plans Mark, the Volunteer Mark is an employee of a small community drugstore and has volunteered for different assignments with nonprofit agencies. One of the assignments he thinks that he will enjoy the most is working as a member of the core committee which organizes and runs the yearly community festival for the neighborhood. Because of his experience with community events, Mark has been placed in charge of logistics coordination, planning, security, and public safety. 2 While this appears to be an extensive workload, Mark has a great deal of previous experience and understands the tasks that need to be completed. Because the planning for the festival started a year in advance, he knows that as the festival grows closer there will be additional volunteers to assist him, so he will not be individually responsible for each one of these areas; for now, the workload is sufficient for one person. The Community Festival The community festival is a nonprofit organization that has a tax exempt status as well as a history of over 20 years. The organization and the event are run by a board of directors and a small, permanent staff composed of no more than five employees at any given time. The goal of the festival is to promote local arts and crafts and to support local artists by providing a venue through which they can sell their work, advertise their work, and develop and expand their customer base. Because the festival has been held for many years, it is well-known in the area and typically attracts supporters of the arts and owners of small and independent art galleries as well as boutique and specialty stores owners who are in search of unique forms of art for clientele. As a result, the festival has established a reputation as a well-known venue for local art. One of the unique aspects of this festival is that it has enjoyed growth and continuity within the community even though the community itself was part of a much larger metropolitan area in the southwestern United States. The identity of the festival has remained intact and is considered a part of the local community. Part of the mission of the community festival Board of Directors is to educate the community about art in addition to creating a venue for creative expression. During its growth, the festival’s mission gradually expanded to include educational and other programs which run throughout the year. However, in recent times local artists who used to be yearly participants have drifted away and local funding used to support the festival is diminishing, because fewer and fewer local artists were participating. As a result, the Board of Directors focused on bringing in a nationally known talent and artists in various fields to attract more participants. Because local funding was lost, more funding now is being sought through grants. The focus of the festival is gradually changing from community artists to a broader scope and more national talent. The Community Festival Organization The nonprofit agency that was charged with running the community festival was made up of a Board of Directors consisting of 10 appointed positions, including three to five permanent staff members, one of whom is the supervisor. The supervisor works at many of the same jobs as the staff members to support the agency. The supervisor believes that everyone who works at the agency shares her love of the arts and uses a laissez-faire management style with the other staff members. The supervisor believes everyone hired at the non-profit understands the need to support the organization, and employees should not need specific instructions to do so; this is the general opinion also held by the Board. Because the permanent staff is so small, formal training for the supervisor and staff is not conducted, primarily because of the lack of funds for training. All funds are used for the festival and the programs, and the prevailing attitude is that employees can learn from each other. Although the nonprofit agency has a mission to support local artists, the Board of Directors sees no need to take the time to develop specifics such as rules of 3 conduct, expected behaviors, or guidelines. The supervisor follows this example, because she believes that it is important to use their time for the festival and the programs instead of the permanent staff, especially because the staff can be managed one-on-one if training needs are identified. The primary support for the agency initially came from individual donators and, later on, more grants which supported the annual event and the ongoing educational programs. The Board of Directors itself consists primarily of those who support the arts and the community. Some are serving as political appointees and none of the members has any experience in running a business. Volunteers have noted in the past how there are inconsistencies in the decisions coming from the Board of Directors, depending on personal interests and sometimes as favors for friends. Volunteers and Staffing Staffing is always a challenge for supervisor and the Board of Directors. Many who have the interest and the inclination to volunteer hold full-time jobs, and many of those jobs were outside of the community in the larger metropolitan area; therefore, they have little time to donate because of the time it takes to commute back and forth from their jobs. Nonetheless, there are always some volunteers available, but there is turnover from year to year depending on how much time individuals could contribute, whether or not they have taken a full-time job in another location, or whether they still remain in the community. In the past, a member of the Board of Directors has acknowledged that staffing is a concern, because those who are truly interested are not available, and sometimes, when seeking volunteers, the organization has to “settle” for whoever shows up. One of the primary concerns is that some of the volunteers and the permanent staff have exhibited more interest in being "in charge" than actually supporting the community festival. When individuals are more worried about who is in charge rather than what needs to be done, there has been an issue about what priorities could actually be accomplished and whether those were personal priorities or festival priorities. Nevertheless, volunteers are still needed, so all volunteers are accepted. Some volunteers have known each other for several years, because they have worked together through the festival organization, but there was always enough turnover to provide the need for new volunteers every year. Internal Issues Some volunteers have speculated openly over the last few years on the reasons why volunteers leave. The general consensus among the volunteers is that personality conflicts or authority conflicts with other volunteers, and even other staff members, drove people away. On some occasions staff members were also aware of political appointees by the Board of Directors. These appointees were perceived by the general staff and volunteers to be "untouchable" and their behavior beyond reproach. Poor interpersonal experiences and ineffective conversations between volunteers and staff members suggest that staff members are frequently ineffective in their interactions with volunteers. Such incidents, when they occur, are shared widely and quickly among the volunteers through the organizational grapevine, a highly effective communication method for relaying personal dissatisfaction and personal events with the permanent staff and other volunteers. One example of a personal experience is a conversation 4 where a permanent staff member told a volunteer "if you don't like the way I do things….then you can just leave. We can always get more volunteers". A witness to that conversation indicates that the permanent staff member has this same attitude with other volunteers and has repeated the same comment or similar comments to other individuals in the organization on various occasions. Permanent staff members have also developed a tendency to blame volunteers if something does not go as planned or if something unplanned occurs in a manner that causes problems. Volunteers have the perception that they are the ‘scapegoats’ for the staff and, by default, for the Board of Directors. This has precipitated a perception that staff members hold themselves in higher esteem and at a different level than the volunteers. Volunteers have become very sensitive to this and discuss it frequently. External Issues Local artists who have regularly participated in the festival provide anecdotal support about similar interactions with permanent staff. One of the artists indicates that he feels as if he is an "intruder" when trying to obtain information about dates and events for the upcoming festival. Others report a similar lack of responsiveness; more specifically, phone calls are not returned while other artists note a ‘rude’ tone of voice and curt treatment by staff members. A number of the artists who have participated in the past have now elected not to apply for a vendor position for the upcoming festival. The loss of local artists has also contributed to the community festival need to focus on nationally known talent to generate revenues and interest that have been forfeited through the loss of local artists. Implementing the Community Festival About six months before the community festival was scheduled, the Board of Directors proceeded with the normal activities required to facilitate the festival. Some of these activities included activating an 800 phone number to facilitate ticket ordering, publishing the brochure for the festival, and proceeding with efforts to advertise both inside the community and outside the community about the upcoming festival. The Board approved the brochures before they were printed and distributed, reviewed all information for accuracy and correctness, and then proceeded with the brochure printing. The Brochure Incident One day, Mark is at work in the drugstore where he serves as an assistant manager when the first call comes through to order tickets for the festival. Mark is quite surprised, because the drugstore has nothing to do with the festival. Mark advises the caller that this is the wrong number if the caller wishes to purchase tickets. That same day, many more calls come in with requests to purchase tickets for the festival. Mark is puzzled by the number of phone calls, because he is certain that the phone number is incorrect. He can think of no reason why people are calling the 800 number of the drugstore and asking for festival tickets. He checks with a member of the Board of Directors the following day and discovers that the 800 number to order tickets that is printed in the festival brochure is actually the 800 number of his drugstore. The phone calls have been very disruptive to business in the drugstore. 5 After numerous complaints and pleas from the drugstore manager to adjust the 800number, the Board of Directors discuss the problem and decide that the best interests of the festival are served taking over the 800 phone number at the drugstore and using it for the festival. This is completely unacceptable for the drugstore, because it has used this 800 number for many years. The 800 number is integral to the identity of the drugstore within the community. The drugstore refuses to give the number to the community festival agency, and the calls continue. Finally, the festival Board of Directors request a correction be printed in the brochure, and the correction to the 800-number is made on the front of the brochure. None of the corrections are made inside the brochure where the 800-number is listed multiple times. The Board of Directors considers the "brochure incident" resolved. The calls still continue at the drugstore. Several days later Mark calls in to check on the days he is scheduled to work in the coming week. At that time he is informed by one of the drugstore employees that he has been removed from the schedule, and the rumors are that the store manager blames Mark for the phone number problem as well as the lost business that resulted from the phone lines being tied up by calls seeking tickets to the community festival. Mark is fired because the store manager blames him as being ultimately responsible for the incorrect phone number, the misdirected phone calls, and the resulting loss of business. What Happened? In an effort to "clear the air" and prove that he is not responsible, Mark approaches a member of the Board of Directors of the festival organization and explains that he lost his job over the misprinted phone number in the community festival brochure. The Director with whom he speaks apologizes for the problems and advises Mark to blame the store. The Director suggests that he, perhaps, consider filing a lawsuit against the store, because this is not an issue of the community festival organization or of the Board of Directors but, instead, between Mark and the drugstore. The Director also offers to write a letter of recommendation to Mark if he needs this to find another job. However, when Mark needs a letter of recommendation and approaches the Director several weeks later, the Director refuses to provide the letter. Mark is frustrated, because he believes he is not being treated fairly. He now writes a letter to the entire Board of Directors and explains what has happened and asks for an investigation. He never receives a response or any acknowledgment from the Board of Directors about his request for an investigation or about the letter addressed to the Board. Managing Organizational Change A Multiple Perspectives Approach Third Edition Ian Palmer Richard Dunford David A. Buchanan MANAGING ORGANIZATIONAL CHANGE: A MULTIPLE PERSPECTIVES APPROACH, THIRD EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2009 and 2006. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOC/DOC 1 0 9 8 7 6 ISBN 978-0-07-353053-6 MHID 0-07-353053-0 Senior Vice President, Products & Markets: Kurt L. 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Library of Congress Cataloging-in-Publication Data Palmer, Ian, 1957Managing organizational change : a multiple perspectives approach / Ian Palmer, Richard Dunford,   David A. Buchanan. -- Third Edition.    p. cm.    Revised edition of Managing organizational change, 2009.    Includes bibliographical references and index.    ISBN 978-0-07-353053-6 (alk. paper)    1. Organizational change. 2. Organizational change--Management. I. Dunford, Richard.    II. Buchanan, David A. III. Title.   HD58.8.P347 2016  658.4’06--dc23 2015033668 The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites. mheducation.com/highered DEDICATIONS From Ian To Dianne, Matthew, and Michelle From Richard To Jill, Nick, and Ally From David To Lesley with love—and thanks This book is also dedicated to the memory of Gib Akin, our co-author from 2005 to 2014. Acknowledgements A number of people have contributed to this edition, and we owe them all a debt of gratitude, including Jonathan Bamber, Lesley Buchanan, Daloni Carlile, Mimi Clarke, and Alastair McLellan. In addition, we would like to thank our McGraw-Hill Education team, including Michael Ablassmeir, Director, Laura Hurst Spell, Senior Product Developer; Jeni McAtee, Evan Roberts, Karen Jozefowicz, Content Project Managers; Gunjan C ­ handola (Lumina), Full-Service Content Project Manager; and DeAnna Dausener, Content Licensing Specialist. We would also like to thank the second edition reviewers for their helpful feedback: Diane Bandow, Troy University; Cynthia Bean, University of South Florida– St. Petersburg; Bradford R. Frazier, Pfeiffer University; Dominie Garcia, San Jose State ­University; Selina Griswold, University of Toledo; Mark Hannan, George Washington University; Christopher S. Howard, Pfeiffer University; Jim Kerner, Athens State University; Catherine Marsh, North Park University; Patricia A. Matuszek, Troy University; Ranjna Patel, Bethune Cookman University; Mary Sass, Western Washington University; Dennis Self, Troy University; Patricia Scescke, National Louis University. iv Brief contents Preface ix PART 1 Groundwork: Understanding and Diagnosing Change  1 1 Managing Change: Stories and Paradoxes  3 2 Images of Change Management  31 3 Why Change? Contemporary Pressures and Drivers  61 4 What to Change? A Diagnostic Approach  101 PART 2 Implementation: The Substance and Process of Change  137 5 What Changes—and What Doesn’t?  139 6 Vision and the Direction of Change  171 7 Change Communication Strategies  205 8 Resistance to Change  249 9 Organization Development and Sense-Making Approaches  279 10 Change Management, Processual, and Contingency Approaches  315 PART 3 Running Threads: Sustainability, and the Effective Change Manager  353 11 Sustaining Change versus Initiative Decay  355 12 The Effective Change Manager: What Does It Take?  385 Name Index  423 Subject Index  433 v Contents Preface ix Part 1 Groundwork: Understanding and Diagnosing Change  1 1 Managing Change: Stories and Paradoxes 3 Learning objectives  3 Stories About Change: What Can We Learn? 4 The Story of Beth Israel Deaconess Medical Center  5 The Story of Sears Holdings  8 The Story of J. C. Penney  10 Tension and Paradox: The State of the Art  14 Assessing Depth of Change  18 What’s Coming Up: A Road Map  19 Change Diagnostic: The Beth Israel Story  21 Change Diagnostic: The Sears Holdings Story 23 Change Diagnostic: The J. C. Penney Story  24 Exercise 1.1: Writing Your Own Story of Change 26 Additional Reading  27 Roundup 27 References 28 2 Images of Change Management  31 Learning objectives  31 What’s in a Name: Change Agents, Managers, or Leaders?  32 Images, Mental Models, Frames, Perspectives 33 The Six-Images Framework  34 Six Images of Change Management  37 Using the Six-Images Framework  46 vi Self-Assessment: What Is Your Image of Managing Change?  49 Self-Assessment: Scoring  51 Exercise 2.1: Assessing Change Managers’ Images 52 Exercise 2.2: The Turnaround Story at Leonard Cheshire  53 Additional Reading  55 Roundup 56 References 57 3 Why Change? Contemporary Pressures and Drivers  61 Learning objectives  61 Environmental Pressures for Change  62 Why Do Organizations Not Change in Response to Environmental Pressures?  79 Why Do Organizations Not Change after Crises? 82 Internal Organizational Change Drivers  85 Exercise 3.1: Top Team Role Play  91 Exercise 3.2: Case Analysis: The Sunderland City Story  91 Exercise 3.3: The Reputation Trap: Can You Escape? 92 Additional Reading  93 Roundup 94 References 96 4 What to Change? A Diagnostic Approach 101 Learning objectives  101 Organizational Models  102 Organization Strategy and Change  108 Diagnosing Readiness for Change  117 Built-to-Change 124 Exercise 4.1: The Capital One Financial Story 125 Contents  vii Exercise 4.2: Scenario Planning  127 Exercise 4.3: Readiness for Change Analysis 128 Additional Reading 130 Roundup 131 References 134 Part 2 Implementation: The Substance and Process of Change  137 5 What Changes—and What Doesn’t? 139 Learning objectives  139 What Changes?  140 Innovation 146 Organizational Culture  150 Technology 155 Exercise 5.1: The Nampak Story  161 Exercise 5.2: Organizational Culture Assessment 162 Exercise 5.3: How Will the Digital Revolution Affect Your Organization?  163 Additional Reading  163 Roundup 164 References 166 6 Vision and the Direction of Change  171 Learning objectives  171 Vision: Fundamental or Fad?  172 The Characteristics of Effective Visions  174 How Context Affects Vision  180 How Visions Are Developed  181 Why Visions Fail  187 Linking Vision to Change: Three Debates 189 Exercise 6.1: Interviewing Change Recipients 197 Exercise 6.2: Analyze Your Own Organization’s Vision  197 Exercise 6.3: The Role of Vision at Mentor Graphics 197 Additional Reading  198 Roundup 199 References 201 7 Change Communication Strategies 205 Learning objectives  205 The Change Communication Process  206 Gender, Power, and Emotion  211 Language Matters: The Power of Conversation  215 Change Communication Strategies  222 Contingency Approaches to Change Communication 228 Communication Channels and the Role of Social Media  232 Exercise 7.1: Listen to Who’s Talking  238 Exercise 7.2: How Defensive Are You?  239 Exercise 7.3: Social Media at the Museum 240 Additional Reading  241 Roundup 242 References 244 8 Resistance to Change  249 Learning objectives  249 WIIFM, WAMI, and the Dimensions of Resistance  250 Benefits 251 Causes 253 Symptoms 260 Managers as Resisters  261 Managing Resistance  263 Exercise 8.1: Diagnosing and Acting  270 Exercise 8.2: Jack’s Dilemma  270 Exercise 8.3: Moneyball  271 Additional Reading  272 Roundup 272 References 274 viii  Contents 9 Organization Development and Sense-Making Approaches  279 Learning objectives  279 Alternative Approaches to Managing Change 280 Organization Development (OD)  280 Appreciative Inquiry (AI)   291 Positive Organizational Scholarship (POS)  293 Dialogic Organizational Development   295 Sense-Making   298 Exercise 9.1: Reports from the Front Line  304 Exercise 9.2: Designing a Large-Scale Change Intervention 304 Exercise 9.3: Making Sense of Sense-Making 304 Exercise 9.4: Interpreting the Interpreter: Change at Target  305 Exercise 9.5: Change at DuPont  306 Additional Reading  308 Roundup 308 References 310 10 Change Management, Processual, and Contingency Approaches  315 Learning objectives  315 Alternative Approaches to Managing Change 316 Why Change Fails  317 Change by Checklist  319 Stage Models of Change Management  325 Process Perspectives on Change  331 Contingency Approaches to Change Management 335 Exercise 10.1: Develop Your Own Change Model 341 Exercise 10.2: The British Airways Swipe Card Debacle 342 Exercise 10.3: The Italian Job  344 Additional Reading  346 Roundup 346 References 349 Part 3 Running Threads: Sustainability, and the Effective Change Manager  353 11 Sustaining Change versus Initiative Decay  355 Learning objectives  355 Initiative Decay and Improvement Evaporation 356 Praiseworthy and Blameworthy Failures  359 Actions to Sustain Change  362 Words of Warning  369 Exercise 11.1: A Balanced Set of Measures 373 Exercise 11.2: Treating Initiative Decay  373 Exercise 11.3: The Challenger and Columbia Shuttle Disasters  374 Additional Reading  379 Roundup 380 References 382 12 The Effective Change Manager: What Does It Take?  385 Learning objectives  385 Change Managers: Who Are They?  386 Change Managers: What Kind of Role Is This?  394 Change Management Competencies  397 Political Skill and the Change Manager  403 Developing Change Management Expertise 410 Exercise 12.1: Networking—How Good Are You?  412 Exercise 12.2: How Resilient Are You?  413 Exercise 12.3: How Political Is Your Organization? 415 Additional Reading  416 Roundup 417 References 419 Name Index  423 Subject Index  433 Preface Since the previous edition of this book published in 2009, the organizational world has changed dramatically—the global financial crisis, fresh geopolitical tensions, environmental concerns, greater focus on corporate social responsibility, economic uncertainties, emerging new markets, dramatic technological developments, demographic shifts, changing consumer tastes and expectations. Add to that mix the growing significance of social media, where positive and critical views of organizations and their products and services can be shared instantly and globally with large numbers of people. From a management perspective, it feels as though the drivers for organizational change are now more numerous, and that the pace of change has also increased; more pressure, more change, faster change. While the pace of change may only appear to have quickened, failure to respond to those pressures, and in some cases failure to respond quickly enough, can have significant individual and corporate consequences. The personal and organizational stakes appear to have increased. The management of organizational change thus remains a topic of strategic importance for most sectors, public and private. Current conditions have, if anything, increased the importance of this area of management responsibility. This new edition, therefore, is timely with regard to updating previous content, while introducing new and emerging trends, developments, themes, debates, and practices. In the light of this assessment, we believe that the multiple perspectives approach is particularly valuable, recognizing the variety of ways in which change can be progressed, and reinforcing the need for a tailored and creative approach to fit different contexts. Our images of how organizational change should be managed affect the approaches that we take to understanding and managing change. Adopting different images and perspectives helps to open up new and more innovative ways of approaching the change management process. We hope that this approach will help to guide and to inspire others in pursuit of their own responsibilities for managing organizational change. This text is aimed at two main readers. The first is an experienced practicing manager enrolled in an MBA or a similar master’s degree program, or taking part in a management development course that includes a module on organizational change management. The second is a senior undergraduate, who may have less practical experience, but who will probably have encountered organizational change through temporary work assignments, or indirectly through family and friends. Our senior undergraduate is also likely to be planning a management career, or to be heading for a professional role that will inevitably involve management—and change management—responsibilities. Given the needs and interests of both types of readers, we have sought to present an appropriate blend of research and theory on the one hand, and practical management application on the other. Instructors who have used our previous edition will find many familiar features in this update. The chapter structure and sequence of the book remain much the same, with some minor adjustments to accommodate new material. The overall argument is again underpinned by the observation that the management of organizational change is in part a rational or technical task, and is also a creative activity, with the need to design novel strategies and processes ix x  Preface that are consistent with the needs of unique local conditions. We hope that readers will find the writing style and presentation clear and engaging. We have also maintained the breadth of coverage of the different traditions and perspectives that contribute to the theory and practice of managing organizational change, with international examples where appropriate. The development of this new edition has introduced new content and new pedagogical features. The new content for this edition includes the following: Depth of change: Change can be categorized and understood with regard to how deeply it penetrates an organization. A “depth of change” model is explained, using a “shallow to transformational” scale, forming the basis for discussion and analysis at various points in the text (chapters 1, 4, and 12). New tensions and debates: A new section explores contemporary dilemmas in organizational change management. One of these concerns striking the balance between large-scale transformational change (which can be disruptive) and “sweating the small stuff” (which can create a platform for further changes). A second concerns pace, with some commentators advising how to speed up change, while others warn of the dangers of “the acceleration trap” (chapter 1). Change managers or change leaders: Some commentators claim this is an important distinction, while others argue that this is a words game. Can we resolve this debate (chapter 2)? Post-crisis change: Recommendations for change from investigations into accidents, misconduct, and catastrophes are often not implemented. We explore why this should be the case—in conditions where it might be presumed that change would be welcome and straightforward (chapter 3). We also consider briefly the problems and practice of communication during and after crises (chapter 7). Change in a recession: Is change more challenging when economic conditions are difficult? A new section argues that change may be more straightforward during a recession (chapter 3). Innovation: We explore how change is driven by the proactive development, adoption, and diffusion of product and operational innovations, along with the distinction between sustaining and disruptive innovations, and the nature and development of innovative organization cultures (chapter 4). Built to change: We explore the organizational capabilities that contribute to change, adaptation, responsiveness, and agility, considering mechanistic and organic management systems, segmentalist and integrative cultures, and the concept of the “built-tochange” organization (chapter 4). Change communication strategies: This chapter has been thoroughly updated, with the emphasis on change communication, exploring the characteristics of effective change communication strategies, the potential impact and applications of social media as corporate communications tools, and the “communication escalator” (chapter 7). Middle management blockers: The traditional stereotype has middle managers subverting top team initiatives. Recent research suggests that this image is wrong, and that middle management are often the source of creative strategic ideas as well as the “engine room” for delivery (chapters 8 and 12). Preface  xi Organization development and sense-making approaches: As in the previous edition, recent developments in organization development, appreciative inquiry, positive organizational scholarship, and dialogic organization development are explored (chapter 9). Contingency and processual approaches: Covered in the last edition, recent developments have been incorporated to update these sections, reflecting their influence on theory and practice (chapter 10). Praiseworthy and blameworthy failures: The section on “recognizing productive failures” has been updated with recent commentary suggesting that some failures should be rewarded (chapter 11). The effective change manager: What does it take? This new chapter explores the capabilities of change managers, considering competency frameworks, interpersonal communication processes and skills, issue-selling tactics, and the need for the change manager to be politically skilled (chapter 12). The pedagogical features in the text include: • learning outcomes identified at the beginning of each chapter; • fewer, and shorter, “high-impact” case studies of organizational change and other diagnostic and self-assessment exercises for classroom use; • movie recommendations, identifying clips that illustrate theoretical and practical dimensions of organizational change management; • a short “roundup” section at the end of each chapter, with reflections for the practicing change manager, and summarizing the key learning points (linked to the learning outcomes); • a small number of suggestions for further reading at the end of each chapter. Since this book was first published, we have continued our conversations with managers who have been using it as part of their teaching, consulting, and other organizational change activities. In so many of these conversations, it was reassuring to hear how the multiple perspectives framework that underpins this book struck the right chord with them, opening up new, innovative, and different ways of seeing, thinking, conceptualizing, and practicing organizational change. We hope that this new and updated third edition will continue to inspire various change journeys, and we look forward to more conversations along the way. Online Resources Instructors: If you are looking for teaching materials in this subject area, such as case studies, discussion guides, organizational diagnostics, self-assessments, company websites, or audio-visual materials (feature films, YouTube clips) to use in lectures and tutorials, then go to McGraw-Hill Connect: connect.mheducation.com Continually evolving, McGraw-Hill Connect has been redesigned to provide the only true adaptive learning experience delivered within a simple and easy-to-navigate environment, placing students at the very center. xii  Preface • Performance Analytics – Now available for both instructors and students, easy-to-decipher data illuminates course performance. Students always know how they are doing in class, while instructors can view student and section performance at a glance. • Personalized Learning – Squeezing the most out of study time, the adaptive engine within Connect creates a highly personalized learning path for each student by identifying areas of weakness and providing learning resources to assist in the moment of need. This seamless integration of reading, practice, and assessment ensures that the focus is on the most important content for that individual. The Connect Management Instructor Library is your repository for additional resources to improve student engagement in and out of class. You can select and use any asset that enhances your lecture. The Connect Instructor Library includes: • Instructor Manual • PowerPoint files • Test Bank Students: If you are looking for additional materials to improve your understanding of this subject and improve your grades, go to McGraw-Hill Connect: connect.mheducation.com Manager’s Hot Seat: Now instructors can put students in the hot seat with access to an interactive program. Students watch real managers apply their years of experience when confronting unscripted issues. As the scenario unfolds, questions about how the manager is handling the situation pop up, forcing the student to make decisions along with the manager. At the end of the scenario, students watch a post-interview with the manager and view how their responses matched up to the manager’s decisions. The Manager’s Hot Seat videos are now available as assignments in Connect. LearnSmart: LearnSmart, the most widely used adaptive learning resource, is proven to improve grades. By focusing students on the most important information each student needs to learn, LearnSmart personalizes the learning experience so they can study as efficiently as possible. SmartBook: An extension of LearnSmart, SmartBook is an adaptive ebook that helps students focus their study time more effectively. As students read, SmartBook assesses comprehension and dynamically highlights where they need to study more. PART 1 Groundwork: Understanding and Diagnosing Change CHAPTER 1  Managing Change: Stories and Paradoxes CHAPTER 2  Images of Change Management CHAPTER 3  Why Change? Contemporary Drivers and Pressures CHAPTER 4  What to Change? A Diagnostic Approach The central theme of the four chapters in Part 1 is groundwork. How are we to approach an understanding of organizational change? With what approaches, perspectives, or images of change management should we be working? What drivers and pressures ­produce organizational change? What diagnostic tools can we use in order to decide what aspects of the organization and its operations will need to change or will benefit from change? 1 Chapter 1 Managing Change: Stories and Paradoxes Learning objectives By the end of this chapter you should be able to: Understand how stories of change can contribute to our knowledge of theory and practice. LO 1.2 Explain why managing organizational change is both a creative and a rational process. LO 1.3 Identify the main tensions and paradoxes in managing organizational change. LO 1.4 Evaluate the strengths and limitations of our current understanding of this field. www.CartoonStock.com LO 1.1 3 4  Chapter 1  Managing Change: Stories and Paradoxes LO 1.1 LO 1.2   Stories About Change: What Can We Learn? Changing organizations is as messy as it is exhilarating, as frustrating as it is satisfying, as muddling-through and creative a process as it is a rational one. This book recognizes these tensions and how they affect those who are involved in managing organizational change. Rather than pretend that these tensions do not exist, or that they are unimportant, we confront them head on, considering how they can be addressed and managed, recognizing the constraints that they can impose. We also want to demonstrate how the images that we hold about the way in which change should be managed, and of the role of change agents, affect how we approach change and the outcomes we think are ­possible. To begin this exploration, we present three stories of recent changes. The first concerns the turnaround of the Beth Israel Deaconess Medical Center in Boston. The second concerns the new organizational model introduced at Sears Holdings in an attempt to restore falling sales and profits. The third concerns innovative efforts to restore falling sales and a fading brand at J. C. Penney, a retailer. These stories address different problems, but they display many common issues concerning the management of change. Each of these accounts comes with a set of assessment questions. We would like to ask you to think through the answers to those questions for yourself, or in a class discussion. Our aim is to demonstrate that stories about change can be one valuable source of practical lessons, as well as helping to contribute to our general understanding of change. These stories are of course distinctive, one-off. How can they contribute to knowledge and practice in general, in other sectors and organizations? Stories are one of the main ways of knowing, communicating, and making sense of the world (Czarniawska, 1998; Pentland, 1999; Dawson and Andriopoulos, 2014). Our stories have actors: change leaders, other managers, staff, customers. They take decisions that lead to actions that trigger responses: acceptance, resistance, departure. There is a plot: a serious problem that could be solved by organizational change. There are consequences: to what extent did the change solve the problem, and were other problems created along the way? The sequence of events unfolds in a typical manner: … and then … and then. This tells us why the outcomes were reached. Our narratives are not just descriptions of a change process, of what happened. They also provide us with explanations. These are process narratives. Process narratives have several advantages over more traditional (quantitative, statistical) research methods (Mohr, 1982; Poole et al., 2000; Van de Ven and Poole, 2005): • • • • they tell us about the context, give us a sense of the whole, a broader frame of reference; complexity can be expressed within a coherent sequence of events; the nature and significance of the causal factors acting on events are exposed; the narrative patterns transcend individual cases. This approach is based on what is called narrative knowing (Langley, 2009). Because stories can reveal the mechanisms or logics behind a sequence of events, they are process theories. (We will explore process perspectives on change in chapter 10.) What combinations of factors drive, slow down, accelerate, block the change process? The three stories Chapter 1  Managing Change: Stories and Paradoxes  5 that follow explain the relative success of the organizational changes at Beth Israel, Sears, and J. C. Penney. We will ask you to consider the extent to which those explanations, each based on a single unique case narrative, can be applied to managing organizational change in general, in other settings. Although our three stories are quite different from each other, they have common features, with regard to the issues and processes that shape the outcomes of organizational change. Despite the differences, they demonstrate common tensions and the choices that are involved in the change process. When you have made your own assessments, in response to the questions that precede each story, you will find our suggested answers in the Roundup section at the end of the chapter. LO 1.1   The Story of Beth Israel Deaconess Medical Center Issues to Consider as You Read This Story 1. Identify five factors that explain the success of this corporate turnaround. 2. How would you describe Paul Levy’s role and contributions to this turnaround? 3. What insights does this story have to offer concerning the role of the change leader? 4. What lessons about managing organizational change can we take from this experience and apply to other organizations, in healthcare and in other sectors? Or, are the lessons unique to Beth Israel Deaconess Medical Center? The Setting This is the story of a corporate turnaround, rescuing the organization from financial disaster and restoring its reputation, competitiveness, and profitability. Based in Boston, ­Massachusetts, the Beth Israel Deaconess Medical Center (BID) was created in 1996 by the merger of two hospitals. The business case for the merger was that the larger organization (over 600 beds) would be better able to compete with, for example, the Massachusetts General Hospital and the Brigham Women’s Hospital. The two merged hospitals had different cultures. Beth Israel had a casual management style that encouraged p­ rofessional autonomy and creativity. Deaconess Hospital was known for its rules-based, top-down management. Staff were loyal to their own organization. After the merger, the Beth Israel culture dominated, and many Deaconess staff, especially nurses, left to join the competition. The Problems By 2002, BID was losing $100 million a year and faced “financial meltdown.” There were problems with the quality and safety of care, with low staff morale, and with poor relationships between clinical staff and management. The media attention was damaging BID’s reputation. The Solutions External management consultants recommended drastic measures to turn around the hospital’s finances, and Paul Levy was appointed chief executive officer of BID in 2002. Levy had no healthcare background and little knowledge of hospitals. He felt that gave him an 6  Chapter 1  Managing Change: Stories and Paradoxes advantage, as he was a “straight talker” and could act as an “honest broker.” But staff were skeptical at first. Levy’s turnaround strategy was based on two themes: transparency and commitment to quality. His first action was to share with all staff the full scale of the financial difficulties, to create “a burning platform,” from which escape would only be possible by making radical changes. His second approach was to signal absolute commitment to the continuous improvement of quality, in order to build trust and to establish a sense of common purpose. Levy described his management style: Perhaps I had an overly developed sense of confidence, but my management approach is that people want to do well and want to do good and I create an appropriate environment. I trust people. When people make mistakes it isn’t incompetence, it’s insufficient training or the wrong environment. What I’ve learned is that my management style can work. Phase 1:  With the hospital “bleeding money,” urgent action was necessary. Levy accepted some of the management consultants’ recommendations, and several hundred jobs were lost, in an attempt to restore financial balance. He refused to reduce nursing levels, but the financial crisis was resolved. Phase 2:  Medical staff were tired of poor relationships with management. In 2003, Levy hired Michael Epstein, a doctor, as chief operating officer. Epstein met with each clinical department to win their support for the hospital’s nonclinical objectives and to break down silo working. Kathleen Murray, who had joined BID in 2002, was director of performance assessment and regulatory compliance. The hospital had no annual operating plans, and she set out to correct this, starting with two departments that had volunteered to take part in phase 1, orthopaedics and pancreatic surgery. Other departments soon joined in. Operating plans had four goals, addressing quality and safety, patient satisfaction, finance, and staff and referrer satisfaction. One aim was to make staff proud of the outcomes and create a sense of achievement. Although the performance of doctors would now be closely monitored, the introduction of operating plans was seen as a major turning point. Phase 3:  To help address the view that medical errors were inevitable, Levy appointed Mark Zeidel as chief of medicine. Zeidel introduced an initiative that cut “central line infection” rates, reducing costs as well as harm to patients and providing the motivation for more improvements. The board of directors were not at first convinced that performance data should be published, but Levy was persuasive, and he put the information on his public blog, which he started in 2006, and which became popular with staff, the public, and the media, with over 10,000 visitors a day. Levy explained: The transparency website is the engine of our work. People like to see how they compare with others, they like to see improvements. Transparency is also important for clinical leaders and our external audience of patients and insurers. We receive encouraging feedback from patients. We’ve also managed to avoid a major controversy with the media despite our openness. Transparency’s major societal and strategic imperative is to provide creative tension within hospitals so that they hold themselves accountable. This accountability is what will drive doctors, nurses and administrators to seek constant improvements in the quality and safety of patient care. Chapter 1  Managing Change: Stories and Paradoxes  7 Other performance data were published, for the hospital and for individual departments. This included measures to assess whether care was evidence-based, effective, safe, patient-centered, timely, efficient, and equitable. Progress in meeting priorities for quality and safety could be tracked on the hospital’s website, and the data were used by staff to drive quality improvements. The board also set tough goals to eliminate preventable harm and increase patient satisfaction. Every year, staff were invited to summarize their improvement work in poster sessions, featuring the work of 95 process improvement teams from across the hospital. Levy hired staff with expertise in lean methods. Previously an option, training in quality and safety became mandatory for trainee doctors, who had to take part in improvement projects. The culture was collaborative, and nurses had the respect of doctors. Patients often chose BID for the quality of nursing care. The departmental quality improvement directors met twice a month to share experiences. Department meetings routinely discussed adverse events. A patient care committee fulfilled a statutory requirement for board oversight of quality and safety. The office of decision support collected data on complication rates, infection rates, department-specific quality measures, and financial goals. A senior nurse said: “We felt a sense of ownership with issues of quality. We have dashboards up in the units to see how we are doing. Staff know what the annual operating goals are, as they are actively involved in setting them and integrating them into their work.” The Outcomes By 2010, BID was one of the leading academic health centers in the United States, with 6,000 employees and state-of-the-art clinical care, research, and teaching. Competing effectively with other major healthcare organizations, BID was generating annual revenues of over $1.2 billion. Postscript Paul Levy resigned in January 2011. He explained his decision in a letter to the board of directors, making this available to staff and the public on his blog. The letter included the following remarks: I have been coming to a conclusion over the last several months, perhaps prompted by reaching my 60th birthday, which is often a time for checking in and deciding on the next stage of life. I realized that my own place here at BID had run its course. While I remain strongly committed to the fight for patient quality and safety, worker-led process improvement, and transparency, our organization needs a fresh perspective to reach new heights in these arenas. Likewise, for me personally, while it has been nine great years working with outstanding people, that is longer than I have spent in any one job, and I need some new challenges. Story Sources Abbasi, K. (2010) Improvement in Practice: Beth Israel Deaconess Case Study. London: The Health Foundation. http://www.bidmc.org/ http://runningahospital.blogspot.co.uk/2011/01/transitions.html 8  Chapter 1  Managing Change: Stories and Paradoxes LO 1.1   The Story of Sears Holdings Issues to Consider as You Read This Story 1. How would you describe Eddie Lampert’s leadership style? 2. How would you assess his approach to implementing major organizational change—in this case, restructuring the whole company with a new organizational model? 3. On balance, would you assess his organizational model as having been a success, or not? 4. What lessons about managing organizational change can we take from this experience and apply to other organizations, in this or other sectors? The Setting Sears Holdings Corporation was a specialty retailer, formed in 2005 by the merger of Kmart and Sears Roebuck. The merger was the idea of Eddie Lampert, a billionaire hedge fund manager who owned 55 percent of the new company and who became chairman. Based in Illinois, the company operated in the United States and Canada, with 274,000 employees, 4,000 retail stores, and annual revenues (2013) of $40 billion. Sears and Kmart stores sold home merchandise, clothing, and automotive products and services. The merged company was successful at first, due to aggressive cost cutting. The Problem By 2007, two years after the merger, profits were down by 45 percent. The Chairman’s Solution Lampert decided to restructure the company. Sears was organized like a classic retailer. Department heads ran their own product lines, but they all worked for the same merchandising and marketing leaders, with the same financial goals. The new model ran Sears like a hedge fund portfolio with autonomous businesses competing for resources. This “internal market” would promote efficiency and improve corporate performance. At first, the new structure had around 30 business units, including product divisions, support functions, and brands, along with units focusing on e-commerce and real estate. By 2009, there were over 40 divisions. Each division had its own president, chief marketing officer, board of directors, profit and loss statement, and strategy that had to be approved by Lampert’s executive committee. With all those positions to fill at the head of each unit, executives jostled for the roles, each eager to run his or her own multibillion-dollar business. The new model was called SOAR: Sears Holdings Organization, Actions, and Responsibilities. When the reorganization was announced in January 2008, the company’s share price rose 12 percent. Most retail companies prefer integrated structures, in which different divisions can be compelled to make sacrifices, such as discounting goods, to attract more shoppers. Lampert’s colleagues argued that his new approach would create rival factions. Lampert disagreed. He believed that decentralized structures, although they might appear “messy,” were more effective, and that they produced better information. This would give him access to better data, enabling him to assess more effectively the individual components of the company and its assets. Lampert also argued that SOAR made it easier to divest businesses and open new ones, such as the online “Shop Your Way” division. Chapter 1  Managing Change: Stories and Paradoxes  9 Sears was an “early adopter” of online shopping. Lampert (who allegedly did all his own shopping online) wanted to grow this side of the business, and investment in the stores was cut back. He had innovative ideas: smartphone apps, netbooks in stores, a multiplayer game for employees. He set up a company social network, “Pebble,” which he joined under the pseudonym “Eli Wexler,” so that he could engage with employees. However, he criticized other people’s posts and argued with store associates. When staff worked out that Wexler was Lampert, unit managers began tracking how often their employees were “Pebbling.” One group organized Pebble conversations about random topics so that they would appear to be active users. The Chairman At the time of the merger, investors were confident that Lampert could turn the two companies around. One analyst described him as “lightning fast, razor-sharp smart, very direct.” Many of those who worked for him described him as brilliant (although he could overestimate his abilities). The son of a lawyer, it was rumored that he read corporate reports and finance textbooks in high school, before going to Yale University. He hated focus groups and was sensitive to jargon such as “vendor.” His brands chief once used the word “consumer” in a presentation. Lampert interrupted, with a lecture on why he should have used the word “customer” instead. He often argued with experienced retailers, but he had good relationships with managers who had finance and technology backgrounds. From 2008, Sears’ business unit heads had an annual personal videoconference with the chairman. They went to a conference room at the headquarters in Illinois, with some of Lampert’s senior aides, and waited while an assistant turned on the screen on the wall opposite the U-shaped table and Lampert appeared. Lampert ran these meetings from his homes in Greenwich, Connecticut; Aspen, Colorado; and subsequently Florida, earning him the nickname “The Wizard of Oz.” He visited the headquarters in person only twice a year, because he hated flying. While the unit head worked through the PowerPoint presentation, Lampert didn’t look up, but dealt with his emails, or studied a spreadsheet, until he heard something that he didn’t like—which would then lead to lengthy questioning. In 2012, he bought a family home in Miami Beach for $38 million and moved his hedge fund to Florida. Some industry analysts felt that Sears’ problems were exacerbated by Lampert’s “penny pinching” cost savings, which stifled investment in its stores. Instead of store improvements, Sears bought back stock and increased its online presence. In 2013, Lampert became chairman and chief executive, the company having gone through four other chief executives since the merger. The Outcomes Instead of improving performance, the new model encouraged the divisions to turn against each other. Lampert evaluated the divisions, and calculated executives’ bonuses, using a measure called “business operating profit” (BOP). The result was that individual business units focused exclusively on their own profitability, rather than on the welfare of the company. For example, the clothing division cut labor to save money, knowing that floor salesmen in other units would have to pick up the slack. Nobody wanted to sacrifice business operating profits to increase shopping traffic. The business was ravaged by infighting as the divisions—behaving in the words of one executive like “warring tribes”—battled 10  Chapter 1  Managing Change: Stories and Paradoxes for resources. Executives brought laptops with screen protectors to meetings so that their colleagues couldn’t see what they were doing. There was no collaboration, no cooperation. The Sears and Kmart brands suffered. Employees gave the new organization model a new name: SORE. The reorganization also meant that Sears had to hire and promote dozens of expensive chief financial officers and chief marketing officers. Many unit heads underpaid middle managers to compensate. As each division had its own board of directors, some presidents sat on five or six boards, which each met monthly. Top executives were constantly in meetings. The company posted a net loss of $170 million for the first quarter in 2011. In ­November, Sears discovered that rivals planned to open on Thanksgiving at midnight, and Sears executives knew that they should also open early. However, it wasn’t possible to get all the business unit heads to agree, and the stores opened as usual, the following morning. One vice president drove to the mall that evening and watched families flocking into rival stores. When Sears opened the next day, cars were already leaving the parking lot. That December, Sears announced the closure of over 100 stores. In February 2012, Sears announced the closure of its nine “The Great Indoors” stores. From 2005 to 2013, Sears’ sales fell from $49.1 billion to $39.9 billion, the stock value fell by 64 percent, and cash holdings hit a 10-year low. In May 2013, at the annual shareholders’ meeting, Lampert pointed to the growth in online sales and described a new app, “Member Assist,” that customers could use to send messages to store associates. The aim was “to bring online capabilities into the stores.” Three weeks later, Sears reported a first quarter loss of $279 million, and the share price fell sharply. The online business contributed 3 percent of total sales. Online sales were growing, however, through the “Shop Your Way” website. Lampert argued that this was the future of Sears, and he wanted to develop “Shop Your Way” into a hybrid of Amazon and Facebook. Story Sources Kimes, M. 2013. At Sears, Eddie Lampert’s warring divisions model adds to the troubles. Bloomberg Businessweek, July 11. http://www.businessweek.com/articles/2013-07-11/ at-sears-eddie-lamperts-warring-divisions-model-adds-to-the-troubles. http://en.wikipedia.org/wiki/Sears_Holdings http://www.forbes.com/profile/edward-lampert http://www.searsholdings.com http://www.shopyourway.com LO 1.1   The Story of J. C. Penney Issues to Consider as You Read This Story 1. What aspects of Ron Johnson’s turnaround strategy were appropriate, praiseworthy? 2. What mistakes did Ron Johnson make? 3. What would you suggest he could have done differently? Chapter 1  Managing Change: Stories and Paradoxes  11 The Setting J. C. Penney Company, Inc. (known as JCPenney, or JCP for short) was one of America’s largest clothing and home furnishing retailers. An iconic brand, founded by James Cash Penney and William Henry McManus in 1913, the headquarters were in Plano, Texas. By 2014, with annual revenues of around $13 billion, and 159,000 employees, JCP operated 1,100 retail stores and a shopping website at jcp.com. JCP once had over 2,000 stores, back in 1973, but the 1974 recession led to closures. The company’s main customers were middle-income families, and female. JCP had a “promotional department store” pricing strategy with a confusing system of product discounts. There were around 600 promotions and coupon offers a year. Mike Ullman, chief executive since 2004, had grown sales with a strong private label program, with brands such as Sephora, St. John’s Bay clothing, MNG by Mango, and Liz Claiborne. Another 14 stores were opened in 2004, and the e-commerce business exceeded the $1 billion revenue mark in 2005. The Problems When the stock reached an all-time high of $86 in 2007, JCP was performing well. However, the recession in 2008 affected sales badly; core customers had mortgage and job security problems. Between 2006 and 2011, sales fell from $19.9 billion to $17 billion. JCP had one of the lowest annual sales per square foot for department stores (around $150). Macy’s and Kohl’s, the main competition, had sales per square foot of around $230. In 2011, the catalogue business, with nineteen outlet stores, was closed, along with seven other stores and two call centers. The New York Times accused JCP of “gaming” Google search results to increase the company’s ranking in searches, a practice called “spamdexing.” Google’s retaliation dramatically reduced JCP’s search visibility. In 2008, JCP struck a deal with Ralph Lauren to launch a new brand, American Living, sold only in their stores. But JCP was not allowed to use Ralph Lauren’s name or the Polo logo. The idea failed. Sales continued to fall. In 2011, 50 to 70 percent of all sales were discounted, based on a “high-low” pricing strategy. An item would be priced initially at, say, $100. Customers would see the product and like it, but not like the price. After six weeks, the price was marked down, say, to $50, and the goods started to sell. But those items had been sitting on a shelf doing nothing for over a month. The Solutions In 2010, two billionaire investors, Bill Ackman and Steven Roth, approached Ullman with an offer to buy large amounts of JCP stock. They felt that the company had potential. Ackman and Roth were invited to join the board, attending their first meeting in February 2011. Leaving that meeting, Ullman was involved in a serious car accident, suffered multiple injuries, and spent three months in a neck brace, making his existing health problems worse. The board wanted a replacement, and there were no internal candidates. Ullman suggested Ron Johnson, who was working for Steve Jobs at Apple. Johnson then met with Ackman and Roth to explore possibilities. Johnson said that he was concerned about the lack of innovation in department stores, and he brought a positive, “can do” approach more typical of Silicon Valley than retailing. In November 2011, Ron Johnson was appointed chief executive officer. JCP stock rose 17 percent on the announcement. Johnson had been responsible for setting up Apple’s 12  Chapter 1  Managing Change: Stories and Paradoxes highly profitable retail stores, and he had also been successful at another retailer, Target. In December, after one month in post, he presented to the board his plans to revive the company with a fundamentally new way of doing business. The board agreed. Johnson told a journalist, “I came in because they wanted to transform; it wasn’t just to compete or improve.” In a board update before leaving, Ullman noted that Johnson had not asked him any questions about how the business was currently running. Johnson moved quickly. First, he wanted to transform the culture. In February 2012, he installed a large transparent acrylic cube in the company headquarters. The cube was a version of the new company logo. Johnson told staff that he did not want to see the old logo anywhere in the building. For a week, staff threw “old Penney” items into the cube: T-shirts, mugs, stationery, pens, tote bags. Second, no more promotions. Why wait six weeks to mark an item down to the price at which it would sell? Why not sell at that price from the start? Johnson simplified the pricing structure with “everyday” prices, which were what used to be sale values; “monthly value,” for selected items; and “best price,” linked to paydays—the first and third Fridays of each month. The stores were tidier, with no messy clearance racks, and the customer relationship became “fair and square” (another slogan). Third, Johnson developed a “store within a store” strategy, with each store becoming a collection of dozens of separate “boutiques.” He wanted a higher percentage of younger and higher-priced brands such as Joe Fresh clothes, Martha Stewart home furnishings, Michael Graves Designs, Happy Chic, and furniture from the British designer Sir ­Terence Conran. These new boutiques, of course, were not interested in having their brands diluted by discount pricing. Traditionally, JCP got 50 percent of sales from its own brands, which were displayed by product (bath mats) rather than brand (Martha Stewart). When a director asked him when he was going to test his new approach, Johnson replied that he had made his decision relying, like Steve Jobs, on instinct. Hundreds of stores were to be redesigned by the end of 2012. JCP already sold Levi’s jeans, but Johnson wanted 700 Levi’s boutiques in the stores; building these boutiques cost JCP $120 million. Southpole, a clothing brand that appealed to black and Hispanic customers, was dropped. St. John’s Bay, a less fashionable women’s clothing brand generating $1 billion annual revenues, was dropped. The speed of these changes would be motivating and unifying, Johnson thought. He wanted to rebrand an old, stale company with a modern name and logo. Johnson was a charismatic and passionate presenter. He said that the changes would be painful and would take four years to complete. The board were awed by the scale of the transformation, but they did not challenge him. Johnson talked about the “six Ps”: product, place, presentation, price, promotion, personality. One analyst noted, “One ‘P’ that seems to be missing is people.” Employees were also excited about the developments, especially when Johnson threw them a lavish party, costing $3 million. Johnson wanted to make checkout simpler, with roving clerks taking payment on iPads. Millions were spent on equipping stores with Wi-Fi. He also wanted all items to have an RFID tag, but that proved to be too expensive. He also decided to separate the store buying group from the JCP.com buying group, an approach used by Apple. However, this meant that there was no coordination between what was available online and what customers could find in the stores. Johnson was more concerned with “the look and feel” of the physical stores, and less support went to the website. Chapter 1  Managing Change: Stories and Paradoxes  13 Johnson hired his own new team of top executives, who distanced themselves from the existing staff; most of them refused to move to Dallas, flying there weekly instead. If you were not part of this new team, you were out of the loop. One director called the “old” staff DOPES: dumb old Penney’s employees. Veterans called the new team the Bad Apples. The new human resources director cancelled performance reviews as being too bureaucratic. This made it easier to fire people; managers did not have to consult performance data before making that decision. The new team recruited Ellen DeGeneres—a television celebrity and lesbian—to appear in JCP advertising. A conservative group, One Million Moms, threatened a boycott, claiming that, “DeGeneres is not a true representation of the type of families that shop at their store. The majority of J.C. Penney customers will be offended and chose to no longer shop there.” The relationship with DeGeneres was discontinued. Johnson introduced a new exchange policy; customers could return an item, without a receipt, and receive cash. This policy was immediately abused, and one popular item was returned so often that its sales turned negative. The plan to put Martha Stewart stores into JCP stalled when Macy’s sued, claiming breach of its own agreement with the home furnishings brand. The Outcomes The results published in February 2012 were poor. Revenues had fallen by $4.3 billion, making a $1 billion loss. The stock fell to $18, and Standard & Poor’s cut JCP’s debt rating to CCC+ (a long way from “triple A”). In April 2012, JCP laid off 13 percent of its office staff in Texas, closed one of its call centers, and also “retired” many managers, supervisors, and long-serving employees on the grounds that new working practices required less oversight. In May 2012, store sales were down 20 percent compared with the previous year. Johnson had projected a short-term drop in sales, but not by that much. He commented that, “I’m completely convinced that our transformation is on track,” leading to a 5.9 percent rise in the stock. In July 2012, a further 350 headquarters staff were laid off. By October 2012, online sales were almost 40 percent down over the year. It was estimated that the decision to separate the two buying groups had cost JCP around $500 million. During Johnson’s two-year tenure, the price of the JCP stock fell by almost 70 p­ ercent, and sales fell in 2012 by 25 percent, resulting in a net loss of $985 million. JCP had alienated its traditional customers, who were used to shopping for discounts, but had not attracted new ones, and 20,000 employees had lost their jobs. In March 2013, Steven Roth, who had backed Johnson’s appointment but who had now lost faith, sold over 40 ­percent of his JCP shares at a loss of $100 million. Bill Ackman resigned from the board in August, selling his shares at a loss of $470 million. In April 2013, the company chairman told Johnson that the board would be accepting his resignation; within a few weeks, all but one of the other senior staff hired by Johnson had also left. Mike Ullman was reinstated. He immediately restored the old promotional pricing model. In May, JCP ran an “apology ad,” with an earnest female voice admitting, “We learned a very simple thing, to listen to you.” A coincidence of timing, in June, ­Johnson’s renovated home departments opened in stores, selling Jonathan Adler lamps, Conran tables, and Pantone sheets. Too expensive for core customers, these departments failed and were withdrawn. However, traditional sales in stores started to grow slowly, and by November, Internet sales had increased by 25 percent on the previous year (Ullman had 14  Chapter 1  Managing Change: Stories and Paradoxes reintegrated the stores and online buyers). Sales of the private brand merchandise lines that had been restored also began to return to previous levels. The JCP brand had been damaged. Sales per square foot of shopping space had fallen steadily since 2010 as shoppers turned to Macy’s and Kohl’s. Macy’s sales per square foot had risen. With sales and profitability falling, in January 2014, JCP closed 33 underperforming stores (3 percent of the total), with 2,000 layoffs. This would reduce annual operating costs by $65 million, but the company had made a loss of $1.4 billion in 2013. After 100 years in business, with Mike Ullman back in charge, JCP stock continued to fall in the first half of 2014. Commenting on Johnson’s legacy at JCP, one analyst said, “Nobody will be attempting something similar for a very long time.” Story Sources Reingold, J., Jones, M., and Kramer, S. 2014. How to fail in business while really, really trying. Fortune, July 4, 169(5):80–92. http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-homeprofile http://www.jcpenney.com/ http://en.wikipedia.org/wiki/J._C._Penney http://www.forbes.com/sites/hbsworkingknowledge/2013/08/21/what-went-wrong-at-j-c-penney/ LO 1.3 LO 1.4   Tension and Paradox: The State of the Art tension when two or more ideas are in opposition to each other paradox when two or more apparently correct ideas contradict each other From a management perspective, organizational change is seen as problematic. How do we persuade people to accept new technologies that will make their skills, knowledge, and working practices obsolete? How quickly can people who find themselves with new roles, and new relat...
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