Analyzing Organizational Change

Course ProjectEDUC-6105-7 Organizations, Innovation, and Change

Eileen Taft

Introduction

www.concordre.net Specializes in the sale of

Bank owned (REO) properties Other distressed sale properties such as short sales

Two established offices Palm Coast, FL New Smyrna Beach, FL

Inventory of assets (homes or vacant lots) located in several Florida counties: Flagler, Volusia, St. Johns, Seminole & Orange

Concord’s Organizational Structure Hierarchical structure is flat by virtue of its small number of employees and

their functional divisions Three equal partners (owners) Half a dozen employees Approximately eight independent contractors

REO agents Buyers’ agents

Several departments that are made up of one or two employees each Accounting Marketing Property Management Closings

Representative of a pre-bureaucratic structure Founder, one of its three owners, is the company’s strategic leader

Makes all of the key decisions Controls the company’s growth and development

Founder holds all the power in the company Founder’s authority is based on traditional domination

Russian immigrant Comes from a patriarchal culture Founder’s wife, one of the three owners, is a silent partner by virtue of her

relationship to him as his wife Also stems from their cultural background Further emphasizes his traditional authority

Leadership Style

Kotter (1988)…views leadership as a change-oriented process of visioning, networking and building relationships. (Bolman, L. G. &

Deal, T. E., 2008 p. 343).

The Change Effort FRANCHISING

Precipitated by the over-riding vision to maximize the owners’ profits

Research and Analysis Phase

Significant amount of time and money invested into attending conferences related to buying a franchise

Made mention of the possibility of this impending change for the organization to its members

Never solicited any feedback from the company’s members regarding the change effort

Announcement of Change Effort

Decision to franchise was announced by the owners at a staff meeting

Reactions Favorable ~ Employees

changes in structure that will result appear to more clearly delineate their job tasks

added benefit of increased pay

Unfavorable ~ Independent Contractors believe the changes will require more work from them

anticipation of resistance ~ ultimatum

sign an agreement to accept the changes

dissolve relationship with the organization

Effects of the Change Effort

Every job description will be revamped

New positions will be created

New departments will be created

Some departments will be merged

Implementation Plan

Leaders must work with others to maintain momentum during plan implementation and to monitor progress in order to discover and correct weaknesses in the plan. (Beach, 2006, p. 93).

Evaluation of Effectiveness

Owners should have included company members before the decision was made.

Owners should have explained to members how the environment will be better under this new structure.

Owners should have communicated to each member how they would personally benefit from the change.

Strategies for Institutionalizingthe Change

Leaders must work with others to institutionalize achieved changes and to help members accept ongoing change as a normal aspect of the organization and its activities. (Beach, 2006, p. 113).

Reflections on Concord’s Response to

Innovation and Change

Fragmented Culture

Weak Leadership

Learning-Impaired OrganizationMost ailing organizations have developed a functional blindness to their own defects. They are not suffering because they can’t solve their problems, but because they won’t see their problems. They can look straight at their faults and rationalize them as virtues or necessities. ~ John Gardner, founder of the political activist organization Common

Cause (Harper & Glew, 2008, p. 28).

Forces Restraining Learning

Leadership does not set the example for learning

Poor top-down communication

Not soliciting ideas

Lack of upward communication

Preoccupation with the short term and bottom line

Lack of holistic approach to change

Lack of communication about change

Fear and anxiety about change

Inadequate training

Unwillingness to use the appropriate technology

Lack of multidirectional communication

Lack of performance measurement and accountability for poor performance

(Harper & Glew, 2008. p. 29)

Recommendations for Success

Transformational Leadership

Empowerment of members

Giving members a voice

No ultimatums

Improved Communication

Goal-directed Performance Review

Building a Winning Culture

References

Beach, L. (2006). Leadership and the art of change: A practical guide to organizational transformation. Thousand Oaks, London, New Delhi: Sage Publications.

Bolman, L.G., & Deal, T. E. (2008). Reframing organizations: Artistry, choice and leadership (4th ed.). John Wiley and Sons, Inc.

Harper, C., & Glew, D. (Mar/Apr 2008). Is your organization learning-impaired? Industrial Management, 50(2), 26-30. Retrieved December 16, 2009, from ABI/INFORM Global. (Document ID: 1562679291).