JWI 555 Strayer University Organizational Change and Culture Discussion

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Week 3 – Assignment 1After you have finished your team discussion, write a 3 to 4pagepaper that addresses each question below. This is an individual assignment and should synthesize and demonstrate application of your learning from playing the simulation, the team discussion, and course material.1. Summarize the results you achieved while playing the simulation.a. What did you do well and what were some areas that needed improvement?b. What were the important differences demonstrated from each of the four scenarios?2. Analyze and discuss at least 3 comparisons between the simulation and what we have learned in the course. 3. How can you apply what you learned in this experience to the company you work for? Discuss at least 2 different applications. 4. What were the similarities and differences between how you did and how others on your team did? What were your biggest takeaways from your team discussion?Professional Formatting Requirements: •Include a Cover page containing the title of the assignment, your name, professor’s name, and the course title and date •Include a References page, showing all your sources•The Cover page and the References page are not included in the required page length•Double-spaced, professional font (Times New Roman or Ariel), 10-12 font size•Headings used to identify main topics and subtopics •Paragraphs are separated by a single space

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JWI 555: Organizational Change and Culture Assignment 1 Assignment 1: Change Management Simulation: Power and Influence Due Week 3, Day 7 (Weight: 15%) "Don't manage - lead change before you have to." Jack Welch While change is inevitable in business, it is not easy. To lead and manage change, you will need to understand the power of the change agent, urgency, and how to apply the appropriate tools to mobilize commitment to a change initiative. For this assignment, you will evaluate power and influence in building urgency and creating a change coalition to adopt a new initiative. Week 1 - Activities 1. Register for Simulation a. Click on the Run Simulation link b. After you register, your Instructor can assign all 4 scenarios to you so that you can play Week 2 - Activities 2. Play through each of the 4 simulation scenarios (30-45 minutes per scenario). a. Your role and goal: You will adopt the role of CEO or Director of Product Innovation in each scenario. Your goal is to convince a critical mass of key employees to adopt a sustainability initiative. b. How to play: i. Setup – Log in to the simulation, choose one of the 4 scenarios, and explore the site. ii. Prepare – Read the scenario introduction and “how to play” pages iii. Analyze Reports – View a dashboard of company information iv. Decide – Choose the first scenario and play by selecting change levers v. Review Results and Repeat – Continue to analyze and make decisions until 96 weeks occur or the initiative is adopted. c. Play all scenarios. Complete the steps above for each of the 4 scenarios. In 2 scenarios, your role is CEO; in the other 2 scenarios, your role is Director of Product Innovation. © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 555 Assignment 1 (1182) Page 1 of 5 JWI 555: Organizational Change and Culture Assignment 1 3. In your Team Workspace, use the Discuss Simulation Experience forum to discuss and debrief your simulation experience with your assigned team. Alternatively, you may hold an online meeting and exchange your ideas. a. Discuss these questions with your team: i. Why were some of you more successful than others? ii. What seemed to work? What didn’t? iii. Were there any common missteps? iv. Did you take any time to diagnose and strategize before you began to act? v. What levers did you find yourself using first? How about later? vi. Takeaways: What things should you do and not do as a CEO? As a Director? Week 3 – Assignment 1 After you have finished your team discussion, write a 3 to 4 page paper that addresses each question below. This is an individual assignment and should synthesize and demonstrate application of your learning from playing the simulation, the team discussion, and course material. 1. Summarize the results you achieved while playing the simulation. a. What did you do well and what were some areas that needed improvement? b. What were the important differences demonstrated from each of the four scenarios? 2. Analyze and discuss at least 3 comparisons between the simulation and what we have learned in the course. 3. How can you apply what you learned in this experience to the company you work for? Discuss at least 2 different applications. 4. What were the similarities and differences between how you did and how others on your team did? What were your biggest takeaways from your team discussion? Professional Formatting Requirements: • Include a Cover page containing the title of the assignment, your name, professor’s name, and the course title and date • • Include a References page, showing all your sources The Cover page and the References page are not included in the required page length • Double-spaced, professional font (Times New Roman or Ariel), 10-12 font size • Headings used to identify main topics and subtopics • Paragraphs are separated by a single space © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 555 Assignment 1 (1182) Page 2 of 5 JWI 555: Organizational Change and Culture Assignment 1 Rubric: Assignment 1 Weight: 15% Criteria 1. Summarize your results for all four scenarios. Weight: 20% 2. Analyze and discuss at least 3 comparisons between the simulation and learning from the course. Weight: 25% Assignment 1: Change Management Simulation: Power and Influence Unsatisfactory Low Pass Pass High Pass Honors Results for fewer than three scenarios are summarized and/or the summary is vague. The student does not or unsatisfactorily identifies how they performed and what they could do to improve in each scenario. Results for three to four scenarios are partially summarized. The summary may not be clear or logical. The student may partially identify how they performed in each scenario and what they could do to improve. Results for all four scenarios are adequately summarized. The summary is mostly clear and logical. The student satisfactorily identifies how they performed in each scenario. May be a lack of clarity in what they could do to improve outcomes. Results for all four scenarios are completely summarized. The summary is clear and logical. The student states differences between scenario performances and what they could do to improve. Results for all four scenarios are exemplarily summarized. The summary is logical, clear, and concise and provides insightful perspective on how the student performed in each scenario, and how they can improve outcomes. Does not or unsatisfactorily makes comparisons between the simulation and learning from the course. Comparisons may not be clear and do not demonstrate understanding of course concepts. Partially explains comparisons between the simulation and learning from the course. Comparisons are not always clear or logical and only partially demonstrate understanding of course concepts. Satisfactorily explains comparisons between the simulation and learning from the course. Comparisons are most clear and logical and demonstrate satisfactory understanding of course concepts. Completely makes three comparisons between the lessons learned in the simulations and learning from the course. Comparisons are logical and well explained and demonstrate synthesis and understanding of course concepts. Exemplarily makes three or more comparisons between lessons learned in the simulation and learning from the course material. Comparisons are analytical and demonstrate strong synthesis and understanding of core change leadership concepts. © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 555 Assignment 1 (1182) Page 3 of 5 JWI 555: Organizational Change and Culture Assignment 1 Weight: 15% Assignment 1: Change Management Simulation: Power and Influence Criteria Unsatisfactory Low Pass Pass High Pass Honors 3. Describe how you can apply what you have learned in this experience to the company that you work for. Give at least 2 examples. The student does not or unsatisfactorily describes how they can apply learning from the simulation and the course material to their current position. Connections are incomplete or lack clarity. The student partially describes how they can apply learning from the simulation and the course material to their current position. Connections may be incomplete or lack clarity. The student satisfactorily describes how they can apply learning from the simulation and the course material to their current position, using at least 2 examples. The connections and ideas are mostly logical and defined The student completely describes how they can apply learning from the simulation and the course material to their current position, using at least 2 examples. Connections and ideas are logical and well defined. The student exemplarily describes how they can apply learning from the simulation and the course material to their current position. The student makes highly insightful connections and describes at least 2 excellent applications of their learning. Does not or unsatisfactorily discuss the similarities and differences between individual and team member performance. Comparisons indicate lack of engagement in gaining additional insight from team discussion. Partially discusses the similarities and differences between individual and team member performance. Comparisons indicate limited engagement in gaining additional insight from team discussion. Satisfactorily discusses the similarities and differences between individual and team member performance. Comparisons indicate adequate engagement in gaining additional insight from team discussion. Completely discusses the similarities and differences between individual and team member performance. Comparisons indicate thorough engagement in gaining additional insight from team discussion. Exemplarily discusses the similarities and differences between individual and team member performance. Comparisons indicate thorough and insightful engagement in gaining additional insight from team discussion. Weight: 25% 4. Discuss the similarities and differences between how you performed with how others on your team performed on the simulation? Weight: 20% © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 555 Assignment 1 (1182) Page 4 of 5 JWI 555: Organizational Change and Culture Assignment 1 Weight: 15% Assignment 1: Change Management Simulation: Power and Influence Criteria Unsatisfactory Low Pass Pass High Pass Honors 5. The simulation paper is professionally formatted and is free from grammatical errors. It includes in-text citations and references. The simulation paper is unprofessional in format and contains multiple mechanics and usage errors. References and citations are minimal or missing. The simulation paper is somewhat professional in format. Sources may not be consistently cited and/or the reference list is incomplete or improperly formatted. Mechanics and usage errors make parts of the text difficult for the reader to understand. The simulation paper is professional in format. Sources are not always consistently cited in-text and the reference list may not be appropriately formatted. There are a few mechanics and usage errors, but they do not have a major impact on the flow. The simulation paper is professionally formatted. Most sources are consistently cited in-text and the reference list is included. Mechanics and usage errors, if any, are minor and have no impact on the flow. The simulation paper is highly professional in format. All sources are consistently cited in-text and references are included in a manner that enables the reader to quickly identify sources. There are no mechanics or usage errors. Weight: 10% © Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. This course guide is subject to change based on the needs of the class. 555 Assignment 1 (1182) Page 5 of 5 O NL IN E S IM U LA T IO N S CE NA R I O I NT R O DU C T I O N Change Management: Power and Influence Scenario 1: Director of Product Innovation You are Director of Product Innovation within the Research & Development unit of Spectrum Sunglass Company. Spectrum’s immediate future looks bright as the company enters its second decade of operations. Externally, the consumer sunglass market is growing again, and competitive-pricing pressures have subsided. The company recently rehired some of the workers laid off during the last recession, and many departmental budgets have been restored to well-funded, pre-recession levels. You are especially proud that one potential new product design has received positive focus group feedback after the first phase of development, and some exciting branding deals with Hollywood celebrities are under negotiation. Everyone at Spectrum Sunglass is looking forward to growth and enhanced earnings. While you generally feel very positive regarding the situation at Spectrum, you have noticed that the topic of sustainable economic development and the link between sustainability and innovation is featured in many of the professional articles you read, such as “Why Sustainability Is Now the Key Driver of Innovation.” You are frustrated that you don’t have any new sunglass products to offer to the vocal customers who increasingly express concerns about Spectrum’s environmental impact. Not only does sustainable development make sense to you personally, from both a moral and an economic standpoint, but you also see this as an opportunity to differentiate Spectrum’s products from your competitors, which focus exclusively on design and price. During Spectrum Sunglass Company’s annual strategy retreat, you decide to pitch the idea of forming a task force to make the company and its products more environmentally sustainable. Your vision for Spectrum consists of three specific goals: (1) Eliminate 25% of waste by redesigning the manufacturing process; (2) reduce the current level of greenhouse gas emissions by 15%; and (3) create a new product line based entirely on environmentally benign materials. You argue that these goals, while aggressive, are achievable within the next two years. You also add that based on your current understanding, the task force will need to pursue the following activities: (1) Conduct energy audits and set aggressive milestones HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 1 Online Simulation Scenario 1 Introduction—Change Management Simulation: Power and Influence for improvement on the three goals; (2) redesign processes and products to be more environmentally sustainable (and scale up successful experiments quickly); (3) analyze environmental life cycles throughout the entire value chain inside the firm and with its suppliers; (4) seek to replace fossil-fuel energy sources with renewable energy sources; and (5) seek to replace petroleum-based materials with biodegradable materials. After politely listening to your proposal, Andrew Chen, the General Counsel, interjects that in his professional opinion, the sustainability project opens up the company to unnecessary legal risks. If the company does go ahead, he advises that only one of the three goals be pursued and that it not be publicly announced or promised until after a careful internal due diligence process. Then the CFO, Paul D’Arcy, speaks up, adding that instead of focusing on a pie-in-the-sky sustainability project, the task force’s time and money would be better spent on finding innovative ways for Spectrum to reduce raw material costs and counteract the seasonality of its business. Just when you are about to inject a counterargument to this increasingly negative reception, Luke Filer, the VP of Operations, states that he is concerned about a product and process change that is likely to increase raw material costs and disrupt existing production flows. Breaking the impasse, Leslie Harris, Spectrum’s VP of Sales and Marketing, argues that this idea has considerable promise and that it would be foolish to reject it prematurely. After an hour-long discussion, during which some members of the top management team voice support for the initiative while others express skepticism, Henry Adams, the CEO and the rest of the management team agree to support your proposal, with the condition that the measure of success be your team’s ability to achieve the proposed three goals within the next two years. The CEO agrees to allow you and your task force members to spend 75% of your time on this change initiative over the next two years. You agree to this arrangement, and you recommend that the task force report directly to the CEO in order to signal its importance to the rest of the organization and to facilitate direct communication on key issues as they come up. As the retreat ends and everyone heads to dinner, you start pondering the numerous issues and obstacles you’ll need to overcome in order to implement your sustainability vision. Your central challenge is to convince your colleagues that a dramatic change in the organization’s strategy and products is necessary and that environmental sustainability is one of the keys to the firm’s future. This challenge is somewhat complicated by the fact that you must influence the rest of the organization without the formal authority to command employees’ attention, and there is no generally 2 ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING perceived need to change at this moment because of the firm’s return to normal profitability. However, you do have a reputation for being competent and trustworthy, and this reputational capital will be invaluable to you as you take on this new challenge. HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 3 Online Simulation Scenario 1 Introduction—Change Management Simulation: Power and Influence Scenario 1: Organizational Structure for Spectrum Sunglass Henry Adams Chief Executive Officer Michelle Barth Executive Assistant Andrew Chen General Counsel Paul D'Arcy Deborah Edge Luke Filer Mary Gopinath Leslie Harris Chief Financial Officer VP, R & D VP, Operations VP, Human Resources VP , Sales & Marketing Ian Newman Bob Ingram Corporate Controller 4 YOU Diane McNatt Director, Health & Sam Puffer Director, Product Innovation Plant Manager Safety Director, Marketing Walt James Yao Li Mark Roberto Director, Information Systems Director, Process Innovation Foreman Louise Orysh Director, Benefits Administration Regina Quinn Director, Sales Paul Schenian Anne Thompson Foreman Manager, Customer Relations ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING O NL IN E S IM U LA T IO N S CE NA R I O I NT R O DU C T I O N Change Management: Power and Influence Scenario 2: CEO You are the CEO and founder of Spectrum Sunglass Company. As the company enters its second decade of operations, its immediate future is looking bright. Externally, the consumer sunglass market is growing again, and competitive-pricing pressures have subsided. Spectrum recently rehired some of the workers laid off during the last recession, and many departmental budgets have been restored to wellfunded, pre-recession levels. A potential new product design has received positive focus group feedback after the first phase of development; furthermore, some exciting branding deals with Hollywood celebrities are under negotiation. Everyone at Spectrum is looking forward to growth and enhanced earnings. While you generally feel good about the state of the business, you just turned 60 years old, and you are beginning to think about your legacy. You are reading more and more professional articles emphasizing the importance of sustainable development for business and linking the themes of sustainability and innovation, such as “Why Sustainability Is Now the Key Driver of Innovation.” You are frustrated that you don’t have any new sunglass products to offer to the vocal customers who increasingly express concerns about Spectrum’s environmental impact. Not only does sustainable development make sense to you personally, from both a moral and an economic standpoint, but you also see this as an opportunity to differentiate Spectrum’s products and overall company from your competitors, which focus primarily on price and design. During Spectrum Sunglass Company’s annual strategy retreat, you decide to pitch the idea of forming a task force to make the company and its products more environmentally sustainable. Your vision for Spectrum consists of three specific goals: (1) Eliminate 25% of waste by redesigning the manufacturing process; (2) reduce the current level of greenhouse gas emissions by 15%; and (3) create a new product line based entirely on environmentally benign materials. You argue that these goals, while aggressive, are achievable within the next two years. HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 1 Online Simulation Scenario 2 Introduction—Change Management Simulation: Power and Influence After politely listening to your proposal, Andrew Chen, the General Counsel interjects that in his professional opinion the sustainability project opens up the company to unnecessary legal risks. If the company decides to proceed, he advises that only one of the three goals be pursued and that it not be publicly announced or promised until after a careful internal due diligence process. As you start to think up counter-arguments to the General Counsel, you get a double whammy in the form of Luke Filer, the VP of Operations, who expresses concern about the impact of these changes on raw material costs and production processes. To top it off, the usually quiet Louise Orysh, the Benefits Administrator, comments that since Spectrum is still recovering from the recession and has only recently begun rehiring workers, a dramatic shift to focus on sustainability may be premature. You acknowledge your colleagues’ objections, and as a solution propose that you plan to lead a fiveperson, interdisciplinary task force to look into the issues. As the task-force chair, you will commit to devoting 50% of your time to this sustainability initiative while juggling your responsibilities as CEO. The remaining four task-force members would devote 75% of their time to the project. You add that based on your current understanding, the task force will need to pursue the following activities: (1) Conduct energy audits and set aggressive milestones for improvement on the three goals; (2) redesign processes and products to be more environmentally sustainable (and scale up successful experiments quickly); (3) analyze environmental life cycles throughout the entire value chain inside the firm and with its suppliers; (4) seek to replace fossil-fuel energy sources with renewable energy sources; and (5) seek to replace petroleum-based materials with biodegradable materials. Breaking the impasse, the VP of Human Resources, Mary Gopinath, suggests that Spectrum needs to give this initiative serious thought and endorses your proposed cross-functional task force as a way to come to a compromise solution. After an hour-long discussion, during which some members of the top management team express support for the initiative while others express skepticism, everyone agrees to support your proposal. With your reputation on the line, you realize that success will be measured according to your team’s ability to achieve these three goals within the next two years. As the retreat ends and everyone heads to dinner, you start pondering the potentially numerous issues and obstacles you may need to overcome in implementing your sustainability vision. In this context of "back to business as usual," your central challenge is to convince your colleagues that a dramatic change in the organization’s strategy and products is necessary and that environmental 2 ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING sustainability is one of the keys to the firm’s future. Fortunately, you have the requisite formal authority and widespread respect throughout the organization to tackle this challenge. HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 3 Online Simulation Scenario 2 Introduction—Change Management Simulation: Power and Influence Scenario 2: Organizational Structure for Spectrum Sunglass YOU Chief Executive Officer Michelle Barth Administrative Assistant Andrew Chen General Counsel Paul D'Arcy Deborah Edge Luke Filer Mary Gopinath Leslie Harris Chief Financial Officer VP, R & D VP, Operations VP, Human Resources VP , Sales & Marketing Ian Newman Bob Ingram Corporate Controller 4 Nancy Kerr Diane McNatt Director, Health & Sam Puffer Director, Product Innovation Plant Manager Safety Director, Marketing Walt James Yao Li Mark Roberto Director, Information Systems Director, Process Innovation Foreman Louise Orysh Director, Benefits Administration Regina Quinn Director, Sales Paul Schenian Anne Thompson Foreman Manager, Customer Relations ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING O NL IN E S IM U LA T IO N S CE NA R I O I NT R O DU C T I O N Change Management: Power and Influence Scenario 3: Director of Product Innovation You are the Director of Product Innovation within the Research & Development unit of Spectrum Sunglass Company. You have noticed that the topic of sustainable economic development and the link between sustainability and innovation is featured in more professional articles, such as "Why Sustainability Is Now the Key Driver of Innovation." You are frustrated that you don’t have any new sunglass products to offer to the vocal customers who increasingly express concerns about Spectrum’s environmental impact. Sustainable development makes sense to you personally, from both a moral and an economic standpoint, and you also see this as an exciting opportunity to differentiate Spectrum’s products and the overall company from your competitors, which focus primarily on price and design. At a Spectrum executive strategy retreat in October, you decide to ask for a special, unplanned session to discuss the conversations you recently had with a vice president at Spectrum Sunglass Company’s largest retail customer, BigMart, which has more than 1,000 retail outlets across the continental United States. Sales to BigMart constitute 30% of Spectrum’s annual revenues, representing the company’s top account. Just a few days ago, at the annual sunglass-industry trade show in Las Vegas, a BigMart executive approached Spectrum’s booth. The VP explained that he was now in charge of national sunglass procurement for BigMart and that BigMart recently started an in-house labeling program whereby products that receive a "Green Stamp" manufacturing certification for environmental friendliness would get special promotion at BigMart. Notably, the retail giant’s in-house market research revealed that even its most price-sensitive consumers were starting to prefer green products within their price range. The VP explained that BigMart was now considering recommending that all of its suppliers go through the Green Stamp certification process. As your colleagues at the Spectrum retreat listen to your presentation, they become increasingly agitated. When Henry Adams, the CEO, asks what BigMart’s specific terms are, you reply that BigMart wants Spectrum to reduce its dependence on petrochemical raw materials (such as polycarbonate plastics) in the HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 1 Online Simulation Scenario 3 Introduction—Change Management Simulation: Power and Influence sunglass manufacturing process from 90% to 50% within two years. The company has also given Spectrum a quantitative target and a deadline to meet. Furthermore, BigMart’s VP not-so-subtly threatened that if Spectrum doesn’t respond within three months with a detailed implementation plan of how it is going to reduce its manufacturing dependence on petroleum, then BigMart will consider cancelling all of its contracts with Spectrum and shift business to a competitor that has indicated its willingness to comply with these demands. You state that while the timing is unexpected, you think this is a positive (if urgent) growth opportunity for Spectrum’s R&D department to develop a unique product line for a mass-market customer base and you think Spectrum is up to the challenge. At this point, Spectrum’s VP of Sales and Marketing, Leslie Harris, enthusiastically chimes in, agreeing with your perspective. She says that a sustainability feature will help distinguish the company in the long term and that this marketing angle may open up new consumer markets for Spectrum’s products (such as exporting to more environmentally conscious countries in Europe), as well as strengthen its brand among U.S. consumers. Paul D’Arcy, the CFO, cuts short Leslie Harris’ support, angrily commenting that Spectrum can’t afford to start a sustainability project just because BigMart demands it. Because Spectrum is highly levered, a drop in profitability might put at risk the company’s ability to meet its debt covenants. The CFO thinks that any green raw material substitutes for petroleum would likely be too expensive for Spectrum’s manufacturing process and would negatively impact the company’s profit margins. Just when you start to think up counter-arguments to the CFO, you get a double whammy in the form of Luke Filer, the VP of Operations, who says that there is no way that the plant managers will support another major change in raw material inputs. The Spectrum plant has just spent the past 12 months undergoing a grueling Six Sigma quality certification process, and he is extremely reluctant to retrain, retool, and retest to accommodate the use of "unproven," environmentally friendly raw material substitutes. Breaking the impasse, the VP of Human Resources, Mary Gopinath, suggests that Spectrum needs to give the BigMart request serious thought because of the significant size of the account and proposes that you head a cross-functional task force to come to a compromise solution. The CEO agrees, imposing the following conditions: (1) that the additional four members come from Marketing, R&D, Finance, and Production; (2) that everyone on the task force devote at least 75% of their time to developing a proposal for BigMart that is acceptable to all four departments; and (3) that the task force present him with a 2 ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING financially acceptable plan to convert one new or existing product line to be based on petrochemical alternatives within three months. The management team at the retreat concurs with the CEO’s task force proposal. As the retreat ends and everyone heads to dinner, you start pondering the numerous issues and obstacles to overcome in developing an acceptable plan for BigMart within three months. Your central challenge is to convince your colleagues that a dramatic change in the organization’s strategy and products is necessary and that environmental sustainability is critical to the firm’s future – no small task in a relatively short period of time. This challenge is somewhat complicated by the fact that you must influence the rest of the organization without the formal authority to command employees’ attention. However, when BigMart tells Spectrum to jump, the usual response is to ask, “How high?” Furthermore, you have a reputation for being competent and trustworthy within Spectrum, and this reputational capital will be invaluable to you as you take on this new challenge. HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 3 Online Simulation Scenario 3 Introduction—Change Management Simulation: Power and Influence Scenario 3: Organizational Structure for Spectrum Sunglass Henry Adams Chief Executive Officer Michelle Barth Executive Assistant Andrew Chen General Counsel Paul D'Arcy Deborah Edge Luke Filer Mary Gopinath Leslie Harris Chief Financial Officer VP, R & D VP, Operations VP, Human Resources VP , Sales & Marketing Ian Newman Bob Ingram Corporate Controller 4 YOU Diane McNatt Director, Health & Sam Puffer Director, Product Innovation Plant Manager Safety Director, Marketing Walt James Yao Li Mark Roberto Director, Information Systems Director, Process Innovation Foreman Louise Orysh Director, Benefits Administration Regina Quinn Director, Sales Paul Schenian Anne Thompson Foreman Manager, Customer Relations ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING O NL IN E S IM U LA T IO N S CE NA R I O I NT R O DU C T I O N Change Management: Power and Influence Scenario 4: CEO You are the CEO and founder of Spectrum Sunglass Company. As Spectrum enters its second decade of operations, its immediate future is looking bright. Externally, the consumer sunglass market is growing again, and competitive pricing pressures have subsided. Spectrum recently rehired some of the workers laid off during the last recession, and many departmental budgets have been restored to well-funded, pre-recession levels. A potential new product design has received positive focus group feedback after the first phase of development; furthermore, some exciting branding deals with Hollywood celebrities are under negotiation. Everyone at Spectrum is looking forward to growth and enhanced earnings. While you generally feel good about the state of the business, you just turned 60 years old, and are beginning to think about your legacy. You are reading more and more professional articles emphasizing the importance of sustainable development for business and linking the themes of sustainability and innovation, such as “Why Sustainability Is Now the Key Driver of Innovation.” At work, you are frustrated that you don’t have any new sunglass products to offer to the vocal customers who increasingly express concerns about Spectrum’s environmental impact. Not only does sustainable development make sense to you personally, from both a moral and an economic standpoint, but you also see this as an opportunity to differentiate Spectrum’s products and overall company from your competitors, who focus primarily on price and design. Fortunately, something happens at a trade show that enables you to act. At a Spectrum executive strategy retreat in October, you ask for a special, unplanned session to discuss the conversations you recently had with the company’s largest retail customer, BigMart, which has more than 1,000 locations across the continental United States. Sales to BigMart constitute 30% of Spectrum’s annual revenues, representing the company’s top account. Recently, at the annual sunglass-industry trade show in Las Vegas, a BigMart vice president approached Spectrum’s booth. The executive explained that he was now in charge of national sunglass procurement for BigMart and that BigMart HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 1 Online Simulation Foreground Reading—Change Management Simulation: Power and Influence recently started an in-house labeling program whereby products that received a "Green Stamp" manufacturing certification for environmental friendliness would get special promotion. BigMart’s inhouse market research revealed that even its most price-sensitive consumers were starting to prefer green products within their price range. The VP explained that BigMart was now considering recommending that all its suppliers go through the Green Stamp certification process. As your colleagues at the Spectrum retreat listen to your presentation, they become increasingly agitated. To the CFO’s question of what BigMart’s specific terms are, you reply that Big Mart wants Spectrum to reduce its dependence on petrochemical raw materials (such as polycarbonate plastics) in the sunglass manufacturing process from 90% to 50% within two years. The company has also given Spectrum a quantitative target and deadline to meet. Furthermore, BigMart’s VP not-so-subtly threatened that if Spectrum doesn’t respond within three months with a detailed implementation plan of how it is going to reduce its manufacturing dependence on petroleum, then BigMart will consider cancelling its contracts with Spectrum and shift business to a competitor that has indicated its willingness to comply with these demands. After you lay out the demands from BigMart, you state that while the timing is unexpected, you think this is a positive growth opportunity for Spectrum to develop a unique product line for a mass-market customer base and that you think Spectrum is up to the challenge. At this point, Spectrum’s Sales and Marketing VP, Leslie Harris, enthusiastically chimes in, agreeing with your perspective. She says that a sustainability feature will help distinguish the company in the long term and that this marketing angle may open up new consumer markets for Spectrum’s products (such as exporting to more environmentally conscious countries in Europe), as well as strengthen its brand among U.S. consumers. However, Paul D’Arcy, the CFO, cuts short Leslie Harris’ explanation, angrily commenting that Spectrum can’t afford to start a sustainability project just because BigMart demands it. Because Spectrum is highly levered, a drop in profitability might put at risk the company’s ability to meet its debt covenants. The CFO thinks that any green raw material substitutes for petroleum would likely be too expensive for Spectrum’s manufacturing process, and with no pricing flexibility it would negatively impact Spectrum’s profit margins. Just when you start to think up counter-arguments to the CFO, you get a double whammy in the form of Luke Filer, VP of Operations, who says that there is no way that the production operation will support another major change in raw material inputs. The Spectrum plant has just spent the past 12 months undergoing a grueling Six Sigma quality certification process, and the Spectrum Production 2 ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING Manager is extremely reluctant to retrain, retool and retest to accommodate the use of "unproven" environmentally friendly raw material substitutes. Adding fuel to the fire, Louise Orysh, the Benefits Administrator, comments that Spectrum is still recovering from the recession and has only recently begun hiring back workers and therefore a dramatic shift to focus on sustainability may be premature. Breaking the impasse, Mary Gopinath, the VP of Human Resources, suggests that Spectrum needs to give the BigMart request serious thought and proposes that you, the CEO, head a cross-functional task force to come to a compromise solution. You agree, suggesting the following plan for the team’s work: (1) that the four additional members come from Marketing, R&D, Finance, and Production; (2) that they devote at least 75% of their time to developing a proposal for BigMart that is acceptable to all four departments; (3) that you will devote 50% of your time to the task force, while juggling your responsibilities as CEO; and (4) that the task force will present Spectrum’s senior management team with a financially acceptable plan to use petrochemical alternatives within three months. The management team at the retreat concurs with your task force proposal. As the retreat ends and everyone heads to dinner, you start pondering the numerous issues and obstacles to overcome in developing an acceptable plan for BigMart within three months. Your central challenge is to convince your team that a dramatic change in the organization’s strategy and products is necessary and that environmental sustainability is critical to the firm’s future – no small task in a relatively short period of time. However, when BigMart tells Spectrum to jump, the usual response is to ask, "How high?" Fortunately, you also have the formal authority and widespread respect throughout the organization to tackle this challenge in a meaningful way. HARVARD BUSINESS SCHOOL PUBLISHING | ONLINE SIMULATIONS 3 Online Simulation Foreground Reading—Change Management Simulation: Power and Influence Scenario 4: Organizational Structure for Spectrum Sunglass YOU Chief Executive Officer Michelle Barth Administrative Assistant Andrew Chen General Counsel Paul D'Arcy Deborah Edge Luke Filer Mary Gopinath Leslie Harris Chief Financial Officer VP, R & D VP, Operations VP, Human Resources VP , Sales & Marketing Ian Newman Bob Ingram Corporate Controller 4 Nancy Kerr Diane McNatt Director, Health & Sam Puffer Director, Product Innovation Plant Manager Safety Director, Marketing Walt James Yao Li Mark Roberto Director, Information Systems Director, Process Innovation Foreman Louise Orysh Director, Benefits Administration Regina Quinn Director, Sales Paul Schenian Anne Thompson Foreman Manager, Customer Relations ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING HARVARD BUSINESS CHANGE MANAGEMENT SIMULATION: POWER AND INFLUENCE PUBLISHING PREPARE: : ANALYZE: DECIDE: Veronica McCullough This simulation has ended X CEO Your actions had no effect on the organization Dashboard WEEK 96 OF 96 Your interview targets did not commit to an interview with you. 1 OF 20 ADOPTERS You have lost credibility and now some employees are less enthusiastic about the change initiative. Consider taking actions that will boost your credibility within the organization. CRITICAL MASS ORGANIZATIONAL PHASE OF ADOPTION Paul D'Arcy Leslie Harris INTEREST The News for Week 96 View Decision History 1 - Bob Ingram Nancy Kerr Diane MoNatt lan Newman Sam Puffer MOBILIZE CREDIBILITY Walt James Yao Li Mark Roberto Louise Orysh AWARENESS Regina Quinn 1 of 10 ام En CHANGE EFFICIENCY RATIO © 2013 Harvard Business School Publishing. IVIM Credits Archived Runs Play New Scenario កកក Developed in partnership with Forio Online Simulations. CURRENT SCENARIO 2 UPCOMING SCENARIOS COMPLETED SCENARIOS 1 ARCHIVED RUNS HARVARD BUSINESS CHANGE MANAGEMENT SIMULATION: POWER AND INFLUENCE PUBLISHING PREPARE: ANALYZE DECIDE: Veronica McCullough This simulation has ended Director, Product Innovation WEEK 96 OF 96 Thank you for playing Change Management: Power and Influence. You currently have 1 adopters of the proposed sustainability initiative and have used 96 weeks to do so. 1 OF 20 ADOPTERS As you may recall, your Change Efficiency Ratio (CER) is the number of advocates gained divided by the number of weeks used, or 0.01. Due to your change leadership skills, many more employees and managers are now aware of and thinking about the sustainability initiative. CRITICAL MASS ORGANIZATIONAL PHASE OF ADOPTION Unfortunately, you were not successful in achieving a critical mass of adopters within the time allotted. Now is the time to reflect on and discuss how you approached this change initiative and what can be learned from this simulation for better results in the future 1-- MOBILIZE CREDIBILITY 8 of 10 CHANGE EFFICIENCY RATIO © 2013 Harvard Business School Publishing. Credits Archived Runs Play New Scenario Developed in partnership with Forio Online Simulations. HARVARD BUSINESS CHANGE MANAGEMENT SIMULATION: POWER AND INFLUENCE PUBLISHING PREPARE: ANALYZE: DECIDE: Veronica McCullough This simulation has ended Director, Product Innovation WEEK 96 OF 96 Thank you for playing Change Management: Power and Influence. You currently have 4 adopters of the proposed sustainability initiative and have used 96 weeks to do so. 4 OF 20 ADOPTERS As you may recall, your Change Efficiency Ratio (CER) is the number of advocates gained divided by the number of weeks used, or 0.04. Due to your change leadership skills, many more employees and managers are now aware of and thinking about the sustainability initiative. CRITICAL MASS ORGANIZATIONAL PHASE OF ADOPTION Unfortunately, you were not successful in achieving a critical mass of adopters within the time allotted. Now is the time to reflect on and discuss how you approached this change initiative and what can be learned from this simulation for better results in the future MOBILIZE CREDIBILITY 1 of 10 CHANGE EFFICIENCY RATIO © 2013 Harvard Business School Publishing. Credits Archived Runs Play New Scenario Developed in partnership with Forio Online Simulations. HARVARD BUSINESS CHANGE MANAGEMENT SIMULATION: POWER AND INFLUENCE PUBLISHING PREPARE: : ANALYZE: : ع ml أف ) DECIDE: Veronica McCullough This simulation has ended X CEO Dashboard Congratulations! Your actions had the following effect on the organization: WEEK 82 OF 96 The following people entered the Adoption stage: Michelle Barth 18 OF 20 ADOPTERS Andrew Chen Bob Ingram Deborah Edge Walt James Yao Li Sam Puffer CRITICAL MASS lan Newman Regina Quinn Paul Schenian Mark Roberto Paul ORGANIZATIONAL PHASE OF ADOPTION Anne Thompson D'Arcy Leslie Harris ADOPTION TRIAL The News for Week 82 View Decision History 1 2 - 3 - Bob Ingram ADOPTION Nancy Kerr ADOPTION Diane McNatt Tan Newman ADOPTION Sam Puffer ADOPTION TRIAL SUSTAIN CREDIBILITY Walt James ADOPTION Yao Li ADOPTION Mark Roberto ADOPTION Louise Orysh ADOPTION Regina Quinn ADOPTION 10 of 10 CHANGE EFFICIENCY RATIO © 2013 Harvard Business School Publishing V.ZZ IVILLIUIVI Credits Archived Runs Play New Scenario Απππ Developed in partnership with Forio Online Simulations, CURRENT SCENARIO 4 COMPLETED SCENARIOS 3 2 1 ARCHIVED RUNS 20 hours ago Trish Adia-Phanithavong RE: Week 3 Discuss Simulation Experience Hi Team, Throughout the first 3 simulations, I had a very difficult time finding the right people to connect with and gaining credibility. What didn't work was the assumption that CEO would advocate for any of the initiatives and subsequently critical mass would improve. There was no direct correlation between senior leaders and the advancement of a change initiative. In fact, there was no buy in from the organization no matter what position supported it. It came down to timing and the right people to connect with based on the lever. That was definitely my common misstep from either the Director of Product Innovation or the CEO standpoint. Taking a different approach in engaging with different parts of the organization would have led to more critical mass. More importantly, focusing on the individual and their stance on the sustainability change creates a different outcome such as the achievement of critical mass to sustain and maintain the change. It was definitely not a one size fits all approach. Since change management is not something I deal with on a daily basis, I should have taken the time to strategize before addressing the change initiative with people. Looking at the various levers and strategically timing each gets the results needed. In the last simulation, I realized I needed to impact my direct team which seemingly worked. I was able to build credibility and gain some critical mass. However, my credibility as a CEO quickly dissipated once I started pulling the wrong levers again. As a CEO and/or Director, focusing on small steps leads to bigger steps ultimately causing bigger impact. Connecting with my adopters and my resisters first to understand their rationale for their decision helps frame up conversations with others across the organization. Initiating a strong guided coalition even with just a few people would have made the difference in critical mass. You only need a handful influential people to spread the good word on any initiative. "A high sense of urgency within the managerial ranks helps enormously in putting a guiding coalition together. But more is usually required. Someone needs to get these people together, help them develop a shared assessment of their company's problems and opportunities, and create a minimum level of trust and communication" (Kotter, para. 13). Effective and constant communication along with trust between stakeholders creates a successful and long lasting change. Thank you. Trish References
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1

Running Head: BUSINESS QUESTION

Business Question
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BUSINESS QUESTION

Business Question
Scenario one was very informative, however, complex. The central challenge was to
convince the colleagues that a dramatic change was needed in the organization and necessary to
directly influence environmental sustainability. I was tasked with the responsibility of
influencing the rest of the employees to embrace the change, which would consequently
influence its success rate (Hill & Judge, 2010). Scenario one did not go so well, as my actions
had no direct impact on the employees. One important factor I realized while playing the
simulation was the importance of making sure the leaders were on board with the change, as they
have a direct stake with the employees they work with. The interview targets did not commit to
the interview, which influenced the employees' enthusiasm and my credibility as an efficient
leader. As a result, I was required to engage in various actions that would prove my efficiency to
the employees and win back their trust so as to initiate the change.
Scenario two was less complex and encompassed convincing both the colleagues and
employees that change was critical within the organization. My formal requisite and widespread
respect throughout the organization directly contributed to the results I achieved during this
simulation. The results were good, as I was able to convince the employees to think of the
change and how it would influence the organization. I had one adopter who would help change
the game for me; he can be used directly to convince the masses of the importance of change....


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