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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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