Discuss about the Dynamic or Static Capabilities Process Management.
Change management process is an important standardized procedures and methods of managing change in a workplace or an organization. The Change management process refers to a sequence of activities or steps that leaders or change management team follow to institute change in an organization to meet a defined goals (Langley et al., 2013). Change affects human resource in the organization and if not well managed can lead to organizational failure. The change management process is used to ensure efficiency when handling change and minimize the change impact. Change management therefore ensures the individuals in the organization are not negatively affected, product quality is maintained, and improvements are achieved in day to day operations (Hornstein, 2014).
The following write-up develops a change management process for Samson Media from the current declining profits and share price to increasing returns on capital by 8% within the 2 years.
Samson Media readership has fallen for the past two years. The readers of the magazines who are mostly women between 35-54 years have reduced due to increased competition from other fashion magazines and readers switching to digital media. Samson Media profits have declined by 20% that has led to fall in share price. The publisher is also experiencing an increase in operational cost. The publisher has therefore appointed a new CEO, Amir Johnson who together with other managers has developed the company’s Strategic plan to drive change in the company.
There is need for change at Samson Media to fill a performance gap, take advantage of an opportunity, and minimize business threats. The performance at Samson Media has declined by 20% that has led to fall in share price. The change is required to improve performance and reduce cost of operations to bring back the company to profit making. On the other side, the publisher is threatened by increased competition from other fashion magazines. There is need to change their product to attract more readers and reduce competition that is threatening the company. Samson Media also has an opportunity in digital media. The company has an opportunity to create products for customers who are shifting to digital media. This will enable the business regain readers of the magazine and get new readers in the digital platform.
Samson Media existing practices are not in line with the strategic objectives. First, the publisher publishes print media while the strategic plan aims to publishing digital media. The strategic plan also has additional features to subscribers that will include video clips, podcasts, and discussions. The second practice at Samson Media is focus to fashion and celebrity gossips. This is different from strategic objectives whose focus will be health and beauty, fashion and celebrity gossips. Change will therefore be required to change the existing content to digital format and include more content to align with the strategic plan of the company.
External environment analysis
Samson Media is faced with several environmental factors. First, Samson Media will be required to meet government regulations on medical content. Venturing to healthy content will require the company to be certified or licensed by the authority to ensure citizens are getting quality, accurate and verifiable medical information (Ajmal et al., 2012). Secondly, the publisher will have to search for new experts to write on health and beauty and retrench some employees. Samson Media will be affected by availability of experts in the labour market. Thirdly, Samson Media will be affected by readers’ behavior. The social behavior change in the society on adoption of digital media will highly affect the company (Birkinshaw, Hamel and Mol, 2008). Fourth, the organization will be affected by change in technology that allows readers to access digital media. The company will be required to continuously change to align with latest technology in terms of compatibility, and design (Oakland and Tanner, 2007). Fifth, the company will need content copyright. Copyrights are important in protecting digital media. Lastly, the company will be less affected by environmental conservation factors in the new developed strategic plan. Samson Media should therefore be flexible and prepared to make decisions that align with the above external environment factors to avoid strategic plan implementation failure.
Stakeholders’ resistance: There is a likelihood of employees resisting change. Employees will fear that change will lead to retrenchment thereby ending their career (Benner, 2009). In order to overcome this barrier, the management will be required to communicate clear goals/objective of change.
Inadequate resources: A limited resource to implement proposed change is a possible barrier. The company will need an adequate budget to ensure all activities are undertaken in the processing of implementing change.
Lack of skill: The proposed change will require employees to have new skills in transforming content to digital format. This barrier can be addressed by training employees before and in the process of implementing change.
Indicators of change readiness
Change readiness is traits in an organization that are looked for when conducting or reviewing application for change to staff members in an organization. The following are change readiness indicators that Samson Media can be checked against;
First, the organization should have a mission, vision, or values towards predetermined change. The organization should have clear values defining interactions in and with the organization. The organizational should invest in the mission and vision statement that board members, employees and all stakeholders are involved. This ensures that there is plan for growth that is in a written document or strategic plan (Hornstein, 2015).
Secondly, the organization should make an investment to leadership. The organization board of directors, executive director, and whole leadership should be committed and involved in change implementation. This ensures there is change support from the management.
Organization should have alignment. The leadership and staff should align to recognize need for change, agree about changes, and prepare to support the change (Whelan-Berry and Somerville, 2010). There should be cross functional communication to enhance trust among staffs.
Another change readiness indicator is organizational culture and infrastructure: The organization mood should be optimistic, focused and infrastructure flexible to adopt possible future changes (Pollack and Pollack, 2015). The organization should also have a structure to reward innovation and allow risk taking.
Strategies for Embedding Change
- Communicating to all stakeholders the objectives of change clearly
- Up-skilling staff skills to handle change
- Leadership support for planned change
- Developing a strategic plan
Prioritization of the Recommendations
The recommendation for Samson Media in order of priority after the strategic plan has been developed;
- Getting leadership support: Getting the leadership support will enable the organization strategic plan to be implemented successfully. Managers are involved in planning, controlling, directing, organizing, and staffing that are important to instituting change in an organization.
- Communicating to all stakeholders: This involves informing and making all stakeholders understands the need for change. Communication will reduce fear among employees in the company in the process of implementing change.
- Equipping employees with skills: This recommendation will enable the staff to get required skills to undertake new roles. At this level, employees will have no fear and will understand the need for change.
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