Organizational Change Process Lynn Black, Jennifer Johnson-Sahaba, Elizabeth Kendrick, Gerardo Moreno, Monique Neel, and Michael TorresAET/560June 27, 2016Professor Spellman

Introduction

• McDonald’s

• Established in 1940

• Fast food restaurant organization

• Grown to serve millions globally

• Survived 76 years due to ongoing organizational changes

• Currently facing troubling times and experiencing poor customer service

• McDonald’s needs to implement change!

• Two theories of practice that will facilitate change & improve employee performance are recommended

• Training & evaluation based on theories

• Continuous improvement monitoring & data collection

Scenario

• Customer service complaints spell trouble• Employees argue in

front of customers• Orders are wrong• Employees argue with

customers• Employees & managers

are slow to respond to complaints

• Focus on the customers you have not the customers you want

Beckhard and Harris ModelTheory of Practice

Beckhard and Harris Model Rationale • Proven success

• Systematic & simple method of analyzing organization

• Promotes & understands connection between employee involvement & organizational success

• Specific & relevant questions• Blueprint

McKinsey’s 7-S ModelTheory of Practice

McKinsey’s 7-S ModelRationale

(Hitt, 1995; Manktelow & Carlson, 2016)

Hard Elements Soft Elements

Strategy Shared Values

Structure Skills

Systems Style

Staff

Training Program WorkshopDay 1

• Day 1: Where are we now and where do we want to be?• Dissatisfaction: Employees must be dissatisfied with current

performance & everyone must want to see a change• Focus the training on collaboration & shared diagnosis to determine problems

with the status quo. Engage employees in identifying areas for improvement & plans to improve.

• Dissatisfaction x Desirability x Practicality x Resistance to Change

• Overall goal: Customers will have a better experience, sales will grow due to returning customers & ratings will increase due to better morale at work.

• Strategy: Ensure employees understand McDonald’s vision & mission statement. (Group activity)

• Structure: Define employee roles (Group activity)

• Systems: Review company policies & procedures (individual)

• Shared Values: Review McDonald’s CORE Values (Ice-breaker activity)

• Discussion: Are there any gaps in knowledge, skills, & abilities? • Gap analysis

Training Program- Day 1

continued• Shared Diagnosis: is a concept of diagnosing and evaluating a

company where all levels of employees participate in

discovering problems and solutions within the company.

• Note: Shared Diagnosis is mutually inclusive.

• Systematic Framework: a roadmap for guiding mutual

engagement in shared diagnosis—should help to identify all

the key variables that impact the performance of an

organization.

Training Program WorkshopDay 2

• Day 2: How do we get there?• How do we fill the gaps?

• Desirability: Recommended solution must be attractive & simple for people to understand. Develop a plan that is simple for employees to follow.

• Practicality: Everyone must be convinced that change is attainable &can be executed in a timely manner. Employees must see/feel that things are attainable.

• Resistance to Change: Teach the nonbelievers that there is power in change, & that everything is attainable. Focus on betterment for employees personal growth & organizational success.

• Develop performance outcomes & stretch goals with employee participation.

• Define what type of training needs to occur & what support is needed

• Style: Develop professional plans/plans for growth (individual)

Training Program WorkshopDays 3 & 4

• Day 3: Customer service training day

• Train employees to achieve performance goals from day 2

• Staff and Skills: Training, performance & competencies

• Use simulations & repeated practice

• Provide challenging scenarios

• Involve managers & employees from all levels

• Use peer evaluations during training

• Day 4: How do we know when we get there?

• More practice with new skills

• Employee performance evaluations based on performance outcomes

• Use rubric to assess McKinsey’s 7-S’s

(McDonald’s, 2008; Derose, 2013)

Excellent

(4 points)

Above Average

(3 points)

Satisfactory

(2 points)

Needs

Improvement

(1 point)

Unsatisfactory

(0 points)

Vis

ion

an

d S

tra

teg

y

Employee writes a

complete and clear vision

and mission statement.

Objectives clearly

outlined in writing with

outcomes delineated.

Provides a clear and

captivating explanation of

the organization‘s

business model.

Employee writes a

complete and clear vision

and mission statement.

Objectives clearly

outlined. Outcomes

delineated. Lacks a clear

explanation of the

company’s business

model.

Employee writes a

complete and clear

vision and mission

statement. Objectives

are identified but

outcomes not clearly

delineated. Business

model need has merit

but is not captivating.

Employee writes vision

and mission statement

needing clarity.

Objectives need

redefining and

outcomes delineated.

Business model is not

captivating.

Employee writes vision

and mission lacking

clarity. Objectives

incomplete and

outcomes poorly

defined. Business model

is not defined.

Ca

pa

city

-Bu

ild

ing Employee participates

fully and successfully

achieves 100% on all

capacity-building

tasks/exercises.

Employee participates

fully and successfully

achieves a score of 90%

on all capacity-building

tasks/exercises.

Employee participates

fully in a majority of

activities and

successfully achieves a

score of 80% on all

tasks/exercises.

Employee participates

moderately,

successfully achieves a

score of 70% on all

tasks/exercises.

Employee participates

poorly unsuccessfully

performs

tasks/exercises.

Hu

ma

n R

eso

urc

e

Aw

are

nes

s

Employee demonstrates

mastery of McDonald’s

policies and procedures

and successfully achieves

100% on each exam.

Employee demonstrates

mastery of McDonald’s

policies and procedures

and successfully achieves

90% on each exam.

Employee demonstrates

mastery of McDonald’s

policies and procedures

and successfully

achieves 90% on each

exam.

Employee

demonstrates a

knowledge of

McDonald’s policies

and procedures and

successfully achieves

70% on each exam.

Employee demonstrates

a lack of knowledge of

McDonald’s policies

and procedures and fails

to achieve a score of

70% on each exam.

Cu

sto

mer

Ser

vic

e

Employee demonstrates

passion and enthusiasm

for their work at all times

and demonstrates total

appreciation for

McDonald’s customers .

Employee demonstrates

passion and enthusiasm

for their work majority of

the time and demonstrates

genuine appreciation for

McDonald’s customers .

Employees

demonstrates passion

and enthusiasm for their

work 75% of the time

and demonstrates

genuine appreciation for

McDonald’s customers .

Employee

demonstrates passion

and enthusiasm for

his/her work at all

times and

demonstrates

appreciation for

McDonald’s customers

Employee demonstrates

passion and enthusiasm

for their work at all

times and demonstrates

a lack of appreciation

for McDonald’s

customers .

Performance Rubric

Evaluation

Components Assigned Points

Vision and Strategy

Capacity-Building

Human Resource Awareness

Customer Service

Total /20

Points are assigned for each component. Accumulated points are divided by total possible points.

Overall Average

Strategies to Overcome Resistance• Include & engage employees in the change

process• Establish a need for change

• Clearly articulate vision & goals

• Keep constant communication

• Offer support

• Address the root cause

Why Change?

Commitment Defined

“Commitment is what transforms a promise into reality. It is the words that speak boldly of your intentions. And the actions which speak louder than the words. It is making the time when there is none. Coming through time after time after time, year after year after year. Commitment is the stuff character is made of: the power to change the face of things. It is the daily triumph of integrity over skepticism.” (Selman, 2016)

Incentives for Change

• Financial: Can be important, but do not always work.

• Merit Based Schemes: Recruitment, promotion, promotional development opportunities. May be non-formal (simple recognition).

• Accountability: Recognition/praise by outside entities. Awards from beneficiaries, local or national politicians, & donors.

• Benchmarking & Competition: Used for stimulating work environments.

• Training: Rewards utilized to increase personal skills.

Strategies to Create Commitment• Creeping commitment• Coalition building• Incremental system-based approachesEmployee surveys, benchmark data, and pilot

programs

• Cultivation of commitment to change

Using Teams During Change• Why change teams are important:• Provide employees with a voice • Address concerns of distributive injustice• Provide access to knowledge• Influence horizontal communication processes• Leverage change leaders reach

• Team composition• Diversity, commitment,

& apolitical• Self-managed team

• Steering team • Design & implementation team

Monitoring the Change Process

• The Balanced Scorecard Model

• Better customer service

• Increased sales

• DICE Model

• Duration

• Integrity

• Commitment

• Effort

Continuous Diagnosis and Improvement• Stages of continuous

improvement

• Major concern is quality

• Consistent and comparable data

• Data-based improvement

Conclusion

• Problem• Poor customer service

• Recommended theories of practice• Beckhard & Harris Model

• McKinsey’s 7-S Model

• Training program• Use shared diagnosis

• Strategies & change teams

• Continuous improvement monitoring

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