Complete Case Study on page 153 of textbook (Boeing). Specifically answer the two questions at the end of the case study. Select one or more diagnostic models that you believe provide a framework that succinctly identifies the key factors at the center of the Boeing situation. Explain your choice of model. The diagnostic model that I found the most relative to the Boeing situation is the 7 –S Framework. After reviewing the 7-S Framework; I immediately saw some fundamental similarities in the diversification changes that were made in an attempt to revive Boeing.
One supporting point came from the following list; Palmer, Dunford, and Akin (2009). Burk identifies five ways in which organizational models can be useful: 1. By making the complexity of a situation where thousands of different things are “ going on” more manageable by reducing that situation to a manageable number of categories . 2. By helping identify which aspects of an organization’s activities or properties are those needing attention. 3. By highlighting the interconnectedness of various organizational properties (e. g. , strategy and structure). et al. pg. 122). I started forming the conclusion from this list, which led me to research further into the the 7-S Framework. Boeing had so many factors influencing the need for change, some of which included: manufacturing difficulties, the need for updated technology systems and improved supplier relationships. Most importantly, the necessity to make their aircraft assembly more efficient in order to improve production times and lower costs from production line to consumer.
The 7-S model developed by the McKinsey & company consultants Robert Waterman Jr. Tom Peters, and Julien Phillips, is based on the interaction of multiple factors with attention to the interconnectedness of the variables Palmer, Dunford, & Akin (p. 124). I feel that this is a distinct connection to the Boeing situation in that they also had similar and very distinct needs; some of which included; strategy changes, systems changes, staff changes, operating style changes and creating a clear vision of obtaining the organizational goals. Boeing took a dramatic turn after a manufacturing crisis which required immediate change in all the areas that the 7-S model represents in Figure . 2 on (p. 125); for instance * Structure – new CEO * Overall strategy – production and operation changes * Systems – updated technologies * Style- the vendor supplier relationships need to be revamped * Staff- at all levels, especially surround the acquisition of McDonnell Douglas There so many other aspects, I think could be examined closer and discussed further; however, the ones presented here; support my assumptions surrounding the 7-S Model being a good diagnosis model in the Boeing case study. Complete Case Study on page 183 of the textbook (Problems at Perrier).
Specifically answer two questions at the end of the case study. The first question asks, to identify the key elements of the resistance to change described in this situation. Palmer, Dunford, and Akin (2009, pp. 162-167) list many reasons why people resist change. Some of these key reasons included the following: Dislike of Change, Discomfort with Uncertainty, Perceived Negative Effect on Interests, Attachment to the Established Organizational Culture/ Identity. I wanted to compare some of these reasons and how they have similarities to the Perrier Case Study.
A good example of the dislike for change was mentioned in a quote by Nestle’s CEO Peter Brabeck-Letmathe, “ We have come to the point where the development of the Perrier brand is endangered by the stubbornness of the CGT” (Palmer, et al…p. 182) It is very apparent that the communications and relationship between management of the parent company, Nestle and the workers at Perrier. Most of the workers belonged to a union, CGT, which consistently went out of their way to resist any changes that Nestle tried to implement. It appears that the workers perceived negative effects also played a huge part in their resistance to change.
One example of this is that they feared the 15% percent cut in workforce and major changes to their social benefits, extra holidays and the potential loss of many other attractive aspects of their employment. Another key element would be their attachment to the established organizational culture and identity. Jean-Paul Franc, head of CGT at Perrier…protests, “ there are men and women who work here…. Morally speaking the water and gas stored below this ground belong to the whole region” (p. 183).
Perrier’s management and workers felt a cultural and historical ownership right to keep things the way had been in the past and resist change. . Construct a change management strategy for dealing with this situation. Identify what approaches to managing resistance you recommend and provide a clear justification for your choice. The strategy for change management that I would lean toward is identified below:
I. Clearly state and identify the reasons surrounding the need for change. II. Identify and communicate a detailed strategy involving how the change will take place, when it will take place and the positive goals and objectives that will be the outcome when the change is completed. III. Make sure the organization is communicated to as a whole entity and that sense of inclusion which is instrumental in lowering resistance and raising acceptance. Provide a communication channel that can be accessed for questions and answers and periodic updates on progress. I referred back to table 2. 1 which depicts “ Six Methods for Managing Resistance to Change. The six methods are similar in that it lists education, communication and facilitation as 4 top methods to include in a plan for managing the resistance to change. Palmer, Dunford, and Akin, (2009).
