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Task 1

Company name: Microsoft Canada

(a)

The Organization Development literature has directed appreciable attention at in being

able to lead and manage change. The major portion of the material is highly normative, advising

managers about how they should be planning and implements organizational changes. For

example, one study suggested that successful managers in ceaselessly changing organizations

should first; provide errands and duties clearly without any haziness and also set priorities in

such a way which includes freedom of working and communication in a extensive manner.

Second, find out the future working and trying a number of processes which is less costly; and

thirdly, the live projects ought to be made in such a manner so as to it helps the future projects of

the company to work properly and it must be analyzed and choreographed from time to time

intervals Traditionally the main focus of change management is on identifying sources that resist

the process of transition or change offers various procedures with the intention of know how to

be used in the direction of tackle the sources that resist transform. Most of the assistance done

recently have been able to help and contribute challenging theorganizations have now shifted

their locus of view or focus to creating a shift of focus on to vision along with being able to

handle the change or transition in the organizational formation or company along with being able

to achieve political support for them towards the change.


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organization development and change byCummings & Worley, edition 8th page no. 197,

figure 10.1.

MOTIVATING CHANGE

y Creating Readiness forChangey Overcoming Resistanceto Change

CREATING A VISION

y DescribingtheCore Ideologyy Constructingthe Envisioned Future

DEVELOPING POLITICAL SUPPORT

y AssessingChangeAgent Powery Identifying Key Stakeholdersy Influencing Stakeholders

MANAGING THE TRANSITION

y Activity Planningy Commitment Planningy Management Structures

SUSTAINING MOMENTUM

y Providingresources forChangey Buildinga Support System for

ChangeAgents

y Developing New CompetenciesandSkills

y Reinforcing New Behaviorsy StayingtheCourse

EFFECTIVE

CHANGE

MANAGEMENT


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The above mentioned activities contribute a lot to managing change successfully and

have been placed in the hierarchical order of how it generally occurs in the organizational

makeup and theway is performed in the organization. The first amongst the activities includes

initiating change by encouraging the members ofthe business and this helps the members ofthe

company to be able to deal with confrontation to change. Initially motivation creates critical

issue for change process because a lot of evidence indicates that people as well as the

organizations want to maintain a sense of equilibrium between the status of different employees

of different departments and levels and the transform must be built-in only when there are strong

powerful reasons on the way to execute accordingly. The next task to be done is considered with

the creation of vision in alignment with activities concerning leadership qualities. The sole or

main purpose of vision is with the intent of providing an objective telling the requirement of

change in the company both in at hand and the outlook. The next function includes the task of

gaining and acquiring support from the political authorities of the company. Organization

arrangement of all kinds are poised of powerful members as well as teams that can either retard

or help incorporate change and permission of the higher authorities to perform the amend. The

task which comes next is related to movement on or after the up to date state to the most wanted

level in the organization. It includes designing a format that is planned and helps in performing

the changes for working of the company during the change period. The next and the final activity

involve sustaining the flow for modify in a way that is being able which is needed to bring in and

combine the changes. Without vision, chances are there that change will be disorganized and

diffused.

Along with the fast moving change that has occurred globally changes become

unavoidable features of the existence of the organizational. But transition that happens within the

direction of an organization externally by the environment is quite different from the

revolutionize that is intended and built-in by the members of the association. The main motive of

Organizational development is to bring in changes in the organization in a planned manner inorder to be proficient of increasing its effectiveness and this organizational change is usually

brought by higher-ranking administrator of the association, in order to implement changes in any

company, certain frameworks are used as models that help to illustrate the actions that be obliged

to acquire position en route forcommence flourishing change.


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Let us now discuss change that Microsoft Canada tried to implement in its organization by

implementing Strategic Change.

MANAGING STRATEGIC CHANGE AT MICROSOFT CANADA

Microsoft Canada is a subsidiary of Microsoft Corporation responsible for the

service, marketing and the sales of the full range of software goods, together with the Windows

working system, the workplace efficiency matching set, a variety of Net products, and the Xbox

game console. The organization marketed to a variety of segments, such as software application

developers, small and medium business and large enterprises, through a broad range of partners

that worked directly with the client organizations to install and optimize the software used. A

small service organization provided consulting support to clients with the partner.

Before 2001, Microsoft Canada had been part of North American subsidiary. Under

this structure, large US market was clearly the focus of attention from Microsoft server, desktop,

other software products. However, Frank Clegg, President of Microsoft Canada, argued that the

Canadian market was different and under developed. It had a different mix of customers that did

a United States, different competitors and different growth opportunities. Moreover, software

sales and personnel computers shipments as a percentage of markets size and growth were below

worldwide averages. These differences, Clegg argued warranted a specialized strategy.

As the fiscal year ended Clegg and his newly appointed Director of Strategic

Planning, Sandra Palmero, wanted to cease the opportunity to define a uniquely Canadian

strategy. Before becoming Director of Strategic Planning, Palmero had been Director of

Marketing and Corporate Communications in Microsoft Canada. There with Richard Reynolds,

her Senior Marketing Manager, they had planned and implemented a participative process of

strategic planning. Sandra conducted the OD practitioner who had worked with them and

contracted to design and implement a Strategic planning process for the Canadian organization.

Over a 2 month period, Sandra conceived of a series of workshops involving the Canadian

leadership team. This team represented a broad cross section of the organization including

representatives from legal staffs, human resources, service business and Microsoft consultant,

marketing managers, customer support and managers responsible for different segments of


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Microsoft business including enterprise customer, small and medium business, the Microsoft

Network and the Xbox.

The strategic analysis phase consisted of preliminary work by several members of

the Canadian leadership team as well as initial exercises during the first workshop. Member

of Canadian Leadership team each prepared an analysis of their respected areas of

responsibilities. For example, the enterprise sales manager provided historical growth rates in

the revenue, developed forecast for market growths and Microsofts share, described current

levels of Customer satisfaction and technology road map of products being developed by the

Redmond headquarters organization. In context the analysis, Sandra joined hands with a third

party company dealing in investigatation that does the overall description of Canadian

information technology market. Finally a competitor analysis was performed to develop and

understanding of likely strategies, goals, and initiatives from key competitors such as IBM,

Sun Micro System, and Oracle as well as competitive threat posed by the Linux Operating

System Software.

During first workshop the Canadian Leadership team used the pre work data to

perform an environmental scan. They discussed, debated, and ultimately came to some

agreements about the trends affecting the organization. Based on that scan, the group

engaged in a vision and value formation exercise and set out an initial list of short and long

term goals. These activities let to several important decisions for new marketing

organizations. For example, the vision and values exercised produced important insight about

what the Canadian organization stood for, its uniqueness compared to the marketing

subsidiaries within the Microsoft Organization, and its strengths in competing as a Canadian

organization. The values also informed discussion about future goals and strategy to achieve

them. Importantly, the Canadian leadership realized that customer loyalty would and should

become a driving force for the organization. This realization led to passionate discussions

about the relative emphasis in the organization on revenues versus customer satisfaction and

loyalty. It also led to development of Big Hairy Audacious Goal (BHAG) that the members

of the Canadian Leadership Team believed would be challenging but achievable.

The first workshop ended with a number of assignments, unresolved issues, and

excitement about the future. In between the first and second workshops, members of the


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Canadian Leadership Team worked with their own organizations. Issues, decisions and

questions that were addressed within the Canadian Leadership Team were discussed

throughout the organization. The most important discussion concerned the Big Hairy

Audacious Goal and the relative emphasis of revenues and customer loyalty over the short

and long term. A consensus began to emerge that the right and proper strategy for Microsoft

was to argue for a slower growth rate in revenues the short term, invest in customer

satisfaction and then leverage that loyalty for a more secure stream of revenues in the future.

Frank Clegg shared his idea with executives and discussed revenue projections, risk

involved, the budget implications, and how the strategy aligned with corporate and other

marketing organizations initiatives. The result of these conversations became the subject of

opening discussions at second workshop.

The cautions but positive support from the corporate organization allowed the Canadian

leadership team to move forward on its strategic intent. In second workshop, the

organizations mission and values were finalized; year by year revenue goals were agreed

upon to achieve the Big Hairy Audacious Goal, and these goals were broken down and

assigned to specific groups and managers. Finally, key customer and partner loyalty

programs were established and outlined. Ownership for different initiatives was assigned and

a strategic change plan originated. Frank Clegg pressed the group on its decision to

emphasize customer loyalty and challenged the group with several scenarios that tempted

them to trade off satisfaction for revenue. These scenarios helped fix the Canadian leadership

teams commitment to their strategy.

The important part of the strategic change plan that came out was a discussion and decision to

tie the individual performance appraisals of Canadian leadership team as a whole also staked

their end of fiscal year bonuses to the achievement of customer satisfaction, instead of

revenue goals.

The strategic change efforts at Microsoft Canada are important for few reasons. First, the

Canadian organizations realization of the benefits of customer satisfaction and loyalty was

influential in moving the larger Microsoft Corporation to examine its values in this area.

Business Week reported on the changes Steve Ballmer was making in the organization; they


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reflected the increased importance of customer loyalty in Microsofts strategy and structure

changes. Second, the organization learned how to organize a strategic planning effort. In the

second year since this effort began, Sandra Palmero did built a stronger strategic planning

organization and taken more and more responsibility for driving the strategic planning process.

Even as the corporate Microsoft organization was making important changes in its reporting

structure, business process, financial systems, the Canadian organization was able to adapt

using its own resources and knowledge. Finally, the Big Hairy Audacious Goal has become an

institutionalized part of the organization that drives thinking and decision making in the

organization.

In context with the case in hand we are suppose to work on a few task related to the

case in hand. Firstly, let us discuss the history of the organization in hand, which is was

founded in 1985, and it provides services together in French and English. It has its

headquarters in Mississauga and empowers people by great software- anytime, anywhere and

on any devise. Secondly, let us now discuss the circumstances that led the organization to

undergo strategic change. Frank Clegg argued that the Canadian market was different and

under developed and it had a different mix of customers. Thus it demanded for different

competitors and different growth opportunities. Another circumstance was that the

percentage of markets size and growth of software sales and personnel computers shipments

were below worldwide averages. These circumstances demanded a specialized strategy.

Thirdly, the type of change that was implemented in the Microsoft Canada was basically

strategically. The change has been incorporated in such a way that every aspect of the

organization starting from legal staffs, human resources, service business and Microsoft

consultant, marketing managers, customer support and managers responsible for different

segments of Microsoft business including enterprise customer, small and medium business,

the Microsoft Network and the Xbox were taken into consideration. The senior members of

the organization have tried its best to formulate and design the strategically change in such amanner that it helps Microsoft Canada to increase its percentage market share and gain better

growth. Fourthly, in order to incorporate the strategically change into the organization the

involvement of every member of the organization is very necessary. The strategically change

was initiated by Frank Clegg, President of Microsoft Canada and Sandra Palmero, Director

of Strategic Planning. Sandra Palmero along with Richard Reynolds, her Senior Marketing


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Manager, had crafted and implemented a participative process of strategic planning. Sandra

conducted the OD practitioner who had worked with them and contracted to design and

implement a Strategic planning process for the Canadian organization. Fifthly, the methods

used in implementing the strategically change were basically workshops, assignments and

discussions of issues related to work. Canadian Leadership Team was formed by members of

various departments of the organization that were focused on developing and implementing

strategically change in the Microsoft Canada Organization. During the first workshop the

Canadian Leadership team used the pre work data to perform an environmental scan. They

discussed, debated, and ultimately came to some agreements about the trends affecting the

organization. Based on that scan, the group engaged in a vision and value formation exercise

and set out an initial list of short and long term goals. These activities let to several important

decisions for new marketing organizations. The Canadian leadership realized that customer

loyalty would and should become a driving force for the organization. A consensus began to

emerge that the right and proper strategy for Microsoft was to argue for a slower growth rate

in revenues the short term, invest in customer satisfaction and then leverage that loyalty for a

more secure stream of revenues in the future. Frank Clegg shared his idea with executives in

Redmond and together discussed the pros and cons, together with revenueprojections, riskinvolved, the budget implications, and how the strategy aligned with corporate and other

marketing organizations initiatives. The result of these conversations became the subject of

opening discussions at second workshop. The cautions but positive support from the

corporate organization allowed the Canadian leadership team to move forward on its strategic

intent In second workshop, the organizations mission and values were finalized; year by

year revenue goals were agreed upon and these goals were broken down and assigned to

specific groups and managers. The important part of the strategic change plan that emerged

was a discussion and decision to tie the individual performance appraisals of Canadian

leadership team as a whole also staked their end of fiscal year bonuses to the achievement of

customer satisfaction, rather than revenue goals. Steve Ballmer increased the importance of

customer loyalty in Microsofts strategy and structural changes and also the organization

learned how to organize a strategic planning effort. Microsoft organization has made

important changes in its reporting structure, business process, financial systems; the

Canadian organization was able to adapt using its own resources and knowledge. Big Hairy


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Audacious Goal has become an institutionalized part of the organization that drives thinking

and decision making in the organization. Finally, the main changes that have been seen in the

performance level of the employees getting better along with rise in the percentage of market

share which led to its growth both internal as well as external. Also, the Canadian Leadership

Team and the Big Hairy Audacious Goal was permanently incorporated in the structure of

the organization.

(b)

Strengths of Bureaucratic organizations:

Regularity is maintained in execution and decisions. The significant strategic decisions of the

company are taken by people in the upper pecking order of the company. This helps to take care

of authority of the stake holders. Stake holders have more advantage in this type of institutions,

set enjoy the right of being major fraction of the institution. But the last words that count are of

the higher-ranking executives of the institution. Costs manage and resourceful supervision is

assistance. The management team makes sure that the funds are used in precise way and at right

time.

Weaknesses of Bureaucratic organizations,

There are deficient in of growth and modernization in the company, most important the

hammering of competitive advantage. Another disadvantage is that the added are the number of

steps included in the seeking of permission; the slower the velocity of the activity gets in regards

so these levels drop off the competence of institution, to response in emergency situations, when

it is most essential at times. The enthusiasm of human resources drops for the reason that of the

lower level of jobs, errands and empowerment, so motivation for these employees must be

increased by some better practices, may be giving the authority or far above the ground level

designation in the company. The straight skin of technical group restricts the individuals

initiative.


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(c)

Managing transformation is an obligatory ingredient of Organizational Development.

Organization Development is concerned in relation to how inhabitants in an institute job

enhanced. The comprehension is basically derived from organizational manners, organization

hypothesis and management. . And are concerned with long-run sustainable hard work.

y Organization development refers to a long-range effort to improve an organizations problem solving capabilities and its ability to cope with changes in its external

environment with the help of external or internal behavioral-scientist consultants, or

change agents, as they are sometimes called. (Wendell French)

Organization Development and change byCummings & Worley. edition 8th,

OD definitions, page no. 18.

y Thus, the three basic components of OD are: identification, action and curriculummanagement. The symptomatic element and its ethnicity. So to accomplish organization

development these three components are very indispensable for management to follow

and put into operation.

The process of Organizational Development is quite complicated and the completion of

the change process consumes a lot of time. The special approaches to the practice are

original identification, data gathering, statistics feedback and altercation, action

scheduling and trouble solving, band building, inter group expansion and assessment and

pursue up.


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The following steps are vital steps taken into consideration while implementing any

alternative forms of organizational development:

1. Communications patterns, styles and flows.2. Goal setting.3. Decision making, problem solving, and action planning.4. Conflict resolution and management.5. Managing interface relations.6. Superior- subordinate relations.7. Technological and engineering systems.8. Strategic management and long-range planning.9. Vision/ Mission formulation.10.Organizational learning.


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Task 2

(a)

The key stakeholders in Microsoft Canada can be people from any of the departments and

levels of the organizations. But in general, the following people are the stakeholders of

Microsoft Canada:

1. Financial analysts2. Business analysts3. Forecasting or sales individual contributors4. Controller5. IT specialists and administrators.

6. L

egal staffs

7. Human resources8. Service business and Microsoft consultant9. Marketing managers

10.Customer support11.Managers responsible for different segments of Microsoft business including

enterprise customer. Etc.


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(b)

As discussed already it has been seen that the above cited stakeholders are the main

members of the Canadian Leadership Team and plays a very significant role in the successful

formation and implementation of Strategically Change in Microsoft Canada. The stakeholders,

most of whom are also the members of the Canadian Leadership Team have played important

role in the workshops, assignments, and discussions that was basically done to decide upon

implementing new strategically changes required by Microsoft Canada to achieve its long term

and short term goals.

Also in the beginning of this report we have discussed three different models that are

usually used in any organization as models for implementing and managing change. After going

through the entire case in hand it is seen that the Action Research Model best suits the

procedure in which implementation of strategical change was carried out in Microsoft Canada.

As the Action Research Model of change suggests, Microsoft Canada firstly, identified the

problem that the organization was facing and having done that it was discussed upon by the

experts of the organization and data was gathered from various sources to analyze the problem

in order to be able to provide with the best possible solution. Finally, The Canadian Leadership

Team acted as the Action team that helped to implement the solutions and bring in the Change

in Microsoft Canada. Thus, the above report is a good example of implementing and

supervising alteration in an association.


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Task 3

(a)

Lewins Planned Change Model

Unfreezing

Movement

Refreezing


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Action Research ModelProblem Identification

Joint Action Planning

Data Gathering and

PreliminaryD

iagnosis

Joint Diagnosis of Problem

Consultation with

Behavioral Science Expert

Feedback to Key Client or

Group

Action

Data Gathering after

Action


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Positive Model

Organization Development and change byCummings & Worley. edition 8th page no.

44, figure 2.1.

Initiate the Inquiry

Inquire into Best

Practices

Discover Themes

Envision a Preferred

Future

Design and Deliver ways

to create the Future


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There are various types of change that an organization may implement.

(b)

It is often remarked that the only constant thing in the world is Change and having said that in

todays so fast moving world and economy, every organization needs to implement change in

its working structure and structure to be able to deal with up with the changing environment.

Today, organizations basically go for a change in order to be up to date with the current world

and also are able to muddle through mounting competition; Alteration in the organization helps

the organization to attain better brand name and an increased market share. Also change in the

structure and working environment usually helps the organization to provide its employees to be

happy and satisfied working in the organization and give maximum effective result to the output

of the organization. Thus there may be a number of reasons that might have led to any

organizations decision to implement change in the organization. In case of Microsoft Canada,

Frank Clegg, President of Microsoft Canada, argued that the Canadian market was different and

under-developed and it had a different mix of customers. Thus it demanded for different

competitors and different growth opportunities. Another circumstance was that the percentage

of markets size and growth of software sales and personnel computers shipments were below

worldwide averages. These circumstances demanded a specialized strategy. Thus this was the

major reason that led Microsoft Canada to decide take the essential steps to modify the

management structure and have a better company and to put into practice Strategic alteration in

the company.


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References:

y Organization Development and Change by Cummings & Worley. Edition 8 thy

Greenfield, a 2008. The 5 Forces of Change - A Blueprint for Leading SuccessfulChange,Management Books 2000, England

y Organization Development by Wendell L. French and Cecil H. Bell, Jr.y Organization Development and change byCummings & Worley. edition 8th,

Page no. 197, figure 10.1.

y Organization Development and change byCummings & Worley. edition 8th, ODdefinitions, page no. 18.

y Organization Development and change by Cummings & Worley. edition 8th,change models, page no. 44, figure 2.1.

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