artifacts 7, 8 & 9, maol 2014

Running head: ARTIFACT SUMMARY 7, 8 & 91

Capstone Assignment: Artifact Summary 7, 8 & 9

Heather Anderson

Saint Mary's University of Minnesota

Schools of Graduate & Professional Programs

OL 655 – Capstone Symposium

April 12, 2014


Artifact Summary 7: Talent Management Strategy Plan

I have chosen my talent management strategy plan as my seventh artifact, which was

submitted in OL 644 – Talent Management. For the assignment I completed a plan that aligns

with my organization’s mission, vision and values. I also provided insight into the growth and

sustainability of talent within the retail setting. The development of women in retail management

and adapting the organizational structure to align with the needs and expectations of younger

workers are two main topics addressed in this strategy. This course offered an opportunity to

explore and apply various talent management strategies. The development of this plan offer real

world solutions in my current organizational role. I was also able to use the information I gained

to continue my personal development when considering a future career in retail management.

This artifact aligns with the forth Organizational Leadership program outcome to

collaborate in complex work teams utilizing effective motivational and coaching techniques (St.

Mary’s University, n.d.). Coaching and motivation are more effective when a leader understands

the reasons that specific groups of people enter into certain kinds of organizations and what

values connect them to organization. The talent management strategy plan also aligns with the

course outcomes that show an ability to evaluate talent management models to address

organizational needs and to evaluate recruitment and retention strategies for alignment with

organizational values (St. Mary’s University, 2013).


References

Saint Mary’s University of Minnesota. (n.d.). 2013-2015 Catalog & handbook: Schools of

graduate and professional programs. Retrieved from http://catalog.smumn.edu/mime

/media/view/12/824/2013-15-SGPP.pdf

Saint Mary’s University of Minnesota. (2013). M.A. in organizational leadership. Retrieved from

http://www.smumn.edu/graduate-home/areas-of-study/graduate-school-of-business-

technology/ma-in-organizational-leadership


Talent Management Strategy Plan

Heather Anderson



OL 644 – Talent Management

October 17, 2013


Introduction

The retail industry has approximately 4.4 million employees and faces the constant

challenge of attracting, recruiting, and retaining a “competent workforce” as employee turnover

continues to grow (Hurst and Good, 2009). The voluntary turnover rate for retail positions is

around 34.7 percent (Hurst and Good, 2009). The ability to attract high quality candidates,

especially from the next generation, will come from a focus on the benefits of a long-term career

in the retail industry and a realistic approach to transitioning young workers from school to full

time work (Hurst and Good, 2009).

Retail organizations can utilize research and talent management strategies to think about

their workforce in a more strategic and methodical way. A talent management strategy that

focuses on developing younger workers, developing women, offers more meaningful

interpersonal relationships and mentoring opportunities can work to overcome the gaps that are

currently being faced in retail talent management. I will provide background information about

Petsmart as an organization, I will offer an environmental scan of the internal and external

influences on the current talent management model, and then I will define the problems that face

my organization and the retail sector as a whole. Finally, I will offer a plan for implementing a

new strategy that will better prepare the organization to manage talent and create a succession

planning focus that will provide opportunities for more high potential workers.

Petsmart of today

Petsmart is a specialty pet supplies store that was founded in 1986 and is now the top

special pet retail supplier in the country (www.petsmart.com). The organization has evolved its

talent management strategy over the past several years to focus on a more sophisticated and

holistic approach. It is clear that hiring and recruitment for key executive positions commonly


requires buying high potential external candidates, but most of the line management positions are

filled internally. This practice is almost required due to the sticky organizational culture that

values experience within the organization over the introduction of new ideas and practices. As

federal regulations regarding the amount of hours allowed for part time workers change, and as

the company continues to limit the number of full time workers it can support financially, the

future looks even more uncertain for developing future leaders. Recently the focus has shifted to

overall turnover, but this strategy is still in development and being tested before tracking

becomes permanent. Fundamentally, hiring entry level workers into stores is the primary way

that individuals enter the organization.

The demand for workers on the front lines fluctuates throughout the year. The hours that

are allotted for hourly workers are directly related to the volume of sales and the organization

maintains a watchful eye on how labor costs are maintained. Each store also varies in the number

of workers that are needed to operate the location. My current location earns around seven

million dollars in total sales a year and employs around fifty people. There are essentially five

departments and the majority of the full time employees are in the specialized worker roles, such

as management, dog grooming or pet training. Part time employees fill positions like cashier, pet

care associate and stocking associate. All management positions are full time, but there has been

a recent shift from 45 to 40 hours per week for all hourly paid managers in order to save on

overtime costs.

Small changes to the way workers are hired such as raising the minimum age requirement

to 18 and requiring drug testing for all new hires have lowered turnover within the organization

and also raised the overall customer satisfaction level. With its focus on delivering customer

impact, Petsmart has worked to raise the quality of workers that are hired and developed


(Herrmann, 2011). The organization also began to realize that a strong focus on stocking and

operational tasks was negatively affecting the customer experience, and that employees that were

great at getting the product on the shelves were possibly not able to provide the level of customer

service that the customers expected. This understanding brought about another change based on a

new model of caring for associates and customers. With a new focus on connecting, assisting,

recognition and energy, workers were hired and trained in new ways that have improved the

overall profitability of the company.

There is limited technological strategy and no social media infrastructure being used by

the organization at the store level to recruit new talent. Line managers must rely upon in-store

flyers, networking with other high performing associates, and cold calling workers from other

companies that display high potential to succeed within the organization. The current talent

management strategy gap could be better managed by further developing technological

opportunities and leveraging networking relationships. All advertising and networking is left up

to the stores to find potential new hires. Some marketing toward the customers in the store

occurs in the form of flyers that are stuffed into bags and a stanchion that lists current job

openings. The applications are received through an internal hiring program that rates each

candidate based on the personality questionnaire that is taken during the online application. The

number of applications is usually around 5 per week for my store location. This low volume does

not sustain the hiring needs of the organization.

A focus on hiring the right candidate the first time, lowering the number of hours that it

takes to onboard and complete orientation training, and the use of continuing education through

e-learnings has brought about notable cost savings for the organization. The strategy contains a

few stop gaps to attempt to bring the talent management behaviors into line with similar


successful companies in the retail market. This shift has had a very positive impact on the

business and the company average for completely satisfied customers is almost 80 percent on

average nationally.

Environmental Scan

The elements included in an environmental scan are the Demographic, Political,

Economic, Social, Employment, Technological, International aspects of an organization. By

better understanding how these components come together, organizations will be better equipped

to design a talent management strategy that is well rounded and realistic.

The demographic of Petsmart employees varies greatly across the country. There are

more women employed as hourly workers in the organization, but more men in management.

This is especially true of higher level management. The five key executives with the organization

are white men above the age of 45. Retail employees in general are less likely to have achieved a

degree beyond high school or a GED and are less likely to be living with a spouse or a partner.

Retail employees are also more likely to include those at both ends of the generational spectrum.

39% of retail employees are under 28 years old. (Sakai, 2008). This is specifically true of

Petsmart.

There is little unique political influence that is directly connected to Petsmart. The recent

changes to employee roles due to the Affordable Care Act effect the day to day operations within

the organization. There is also a consistent commitment to maintaining federal safety and EEOC

guidelines to maintain uniform and regulated process to handle employment guidelines.

In economic terms, Petsmart is considered to be profitable and has weathered the recent

challenges for retail organizations with strong financial success. The company prides itself on

conservative fiscal spending and is careful about reasonable organizational growth. Specifically,


the company controls operations spending, technology upgrades, labor costs, new construction

costs and energy costs with a careful eye and is quick to change strategies when it is deemed

necessary.

Socially, Petsmart Charities is the face of the organization’s charitable giving. Petsmart is

the National leader in pet adoptions and the largest funder of animal welfare organizations in the

United States. The Charity was formed in 1994 and has allowed Petsmart to convey a strong

image of corporate social responsibility (www.petsmartcharities.org). The organization is

strategic in its giving and focuses on charities and opportunities directly related to animal

welfare. Through the charitable giving and the obedience training program, the organization has

the goal to end euthanasia of unwanted pets. This distinction attracts employs that are already

involved in animal rescue or those that have a political interest in animal rights and cruelty

issues.

The employment scan of the organization reveals that there are 24,000 full time

employees and over 52,000 total employees working for Petsmart (www.petsmart.com;

www.mergentonline.com). Hourly part time employees make up the majority of the workforce.

All of the 1,200 stores also have a team of line managers that oversee the day to day operations.

There are several departments within the Store Support Group, located in Phoenix, that provide

human resources, supply, and oversight services. The employment goals of the organization are

twofold: to retain new employees for more than 90 days and to develop high potential employees

into the next generation of leaders.

Technology has been a low priority for the organization over the past ten years. There

have been system wide upgrades, but the opportunities are still an underutilized to better

compete with organizations like Target and Walmart. In the last 12 months there have been


several hardware and software upgrades to bring the organization in line with the competition.

An Omni channel approach is scheduled to roll out in 2014 and will finally align the internet

business with the brick and mortar business. These types of technological upgrades will make the

tasks expected of workers to become easier and should improve the experience of the worker and

the customer. Technology upgrades are also making it easier to interact with HR needs via a

company website called HRConnect. While this resource cannot replace the partnerships that are

necessary between stores and the store support group, giving employees more control over their

personal information empowers them and improves their work experience.

Internationally, Petsmart formerly owned and operated stores in Great Britain for several

years but has since left the market. There are now approximately 80 stores in Canada, but overall

there is very little international influence on talent management. Any further international growth

would depend on a culture that can support the same high level of investment in pet animals and

have a need for a big box model for these supplies. China may be the next market for the

organizational model (Jun, 2010).

Learning online

When considering various types of talent management strategies that would best serve

Petsmart as an organization, it is important to remember that the scale of the company is quite

large and there is a great amount of physical separation between each of the locations providing

onboarding, development, recruiting and promotions. The company has already added e-training,

online performance testing, employee feedback through social media and a better interface for

HR task management such as benefits, paid time off balance reports and other personal

information. But continuing to develop the e-HR capabilities may not provide a long term benefit

for a talent management strategy. More employees will be allowed to control their own destiny


in terms of skill development and personal growth within the company, but with this method

there is less accountability to leaders for the development and retention of new high-potential

talent.

Corporations have continuously invested in the development of e-training environments,

regardless of economic recessions, in an effort to increase the retention rate of their best

employees. This continuous investment may be due to the idea that e-training, compared

to traditional methods, can educate regionally distributed workers more cost-efficiently

through the use of standardized training materials. However, concerns regarding the

value of e-training are growing among practitioners as well as researchers. These

concerns include lower learner achievement and a lack of interaction between learners

and trainers (Byun and Mills, 2011, p. 65).

E-training systems allow consistent internal communication between team members. It is a way

for organizations to disseminate new information very quickly to many regional workers. “On

the job learning experiences are intrinsic motivators that contribute to employee personal career

development” (Byun, 2011). There are several issues with the adoption of e-learning systems for

large corporations. Fundamentally, any workplace training should “serve the purpose of

improving both employees’ personal and job knowledge skill sets thereby making them better

citizens overall” (Byun, 2011). The more relevant the learning is to the job functions, learning

goals and knowledge levels, the more effective the e-learning will be.

Women in leadership

Women make up two thirds of all retail workers (Broadbridge, 2007). They make up the

majority of the front line service workers, yet they are disproportionately under-represented in

managerial positions, particularly senior positions. Women face specific gender related conflict


in the retail sector. For example, the kinds of the problems encountered by retail managers in

their careers were “limiting promotion opportunities and informal processes of selection that

exist in organizations” (Broadbridge, 2007). The issues specifically effecting women managers

were that women are more likely to report problems with lack of training, lack of support from

male colleagues, lack of role models within the organization , organizational attitudes toward

women, and sexual discrimination (Broadbridge, 2007).

Many of the problems women face as retail managers relate to interpersonal or

organizational culture clashes. Women in senior retail management also encounter barriers to

advancement due to “family responsibilities, the way work is organized, organizational cultures,

the lack of female role models, and lack of confidence and political awareness of women”

(Broadbridge, 2007). When women are excluded from consideration for management

opportunities within the retail sector, the ability to create a talent management strategy that

provides the most effective use of potential high achieving individuals is greatly reduced. If

women are better managed and developed within the retail sector, then there could be an

exponentially deeper talent pool to draw from regarding succession planning.

Unearned privilege and favoritism are subtle behaviors that promote inequality in

organizational culture. “Research has demonstrated the importance of the perception of fairness

in these types of workplace decisions as employee attitudes, intentions, and behaviors may be

impacted by decisions which are interpreted to be unfair” (Mujtaba, 2011).

Younger workers in retail

Younger workers are entering the retail workforce with high expectations regarding their

future careers and employment status (Hurst, 1996).


Employees bring to the workforce their own set of values and expectations. Therefore,

employers that adjust their human resource strategies to become more flexible and

potentially accommodating to employee values, will more likely attract available talent,

and ultimately become the workplace of choice. To adjust their strategies, employers

must recognize and, ideally, accommodate generational differences that may distinguish

individuals they have hired in the past from the new labor pool (Hurst, 1996).

Generation Y (born 1980-2003) wants an intellectual challenge, success, wants to make a

difference, and seeks employers who will further their professional development (Hurst, 1996).

Employers will be forced to adapt and evolve to meet the changing needs of the next generation

if there is hope of attracting and retaining the new talent that is available. The role that

supervisors play for younger new employees may be the most important indicator of job

satisfaction and desire to grow with the organization. Research has found that a workplace with

high levels of supervisory support can positively impact job performance, job satisfaction, and

the intent to stay (Hurst, 1996). In other words, if the line managers are able to build

relationships with new younger employees and provide support, direction and mentoring, then

younger workers are more likely to develop into the next generation of leaders and make up the

needed pipeline for talent.

Retailers need to understand the expectations of new hires and be able to select training

and mentoring strategies that reduce gaps between job expectations and job realities. In

addition, retailers must recognize that different generations come with different

expectations and require different systems of mentoring and training. Recruitment

strategies that employers need to use to attract, recruit, retain and motivate young people

in the twenty-first century will need to rely less heavily on traditional pay and benefits


(i.e. job security), and instead focus more heavily on creating a work environment that

allows individuals to grow and develop. Job security is not a motivator because Gen Y

does not expect long-term employment, which may fit well in the retail sector due to high

turnover. Consequently, some suggested strategies for Gen Y employers include:

increasing employees’ marketable skills via continued training and development;

providing challenging work assignments and task variety; offering continuous feedback

regarding performance and instant gratification via perks and bonuses; fostering a

flexible work environment that encourages a work/family balance; and recognizing that

pay alone will not be enough to retain employees (Hurst, 1996).

Within the organizational culture, these shifts become more realistic as more young workers

transition to leadership positions. When the organization has the influence and perspective of

younger workers, there is more motivation for change. Flexibility and personal challenge and

development must be a part of future talent management strategies. It is unrealistic to expect that

younger workers will feel a strong loyalty to an organization that cannot offer them job security,

benefits, a flexible schedule, limited weekly hours worked, or advancement opportunities as

retail has done in the past. The industry must adapt to the needs of the new high potential

workers and offer an enticement that is truly motivational. Home Depot has realized the

changing needs and perspectives of younger workers and has created a leadership training

program that focuses on the new types of work that Gen Y workers are excited to sign up for

(Dowell, 2010). They have developed two programs that offer:

Multi-hurdle, intense selection processes, cross-disciplinary rotational assignments of a

duration sufficient to make a contribution to the business unit, centralized classroom


learning as a cohort, and unprecedented access to senior business leaders through

multiple forums (Dowell, 2010).

They also offer these young leadership trainees rotational assignments in operations, IT,

merchandising, and supply chain. They are given hands on leadership experience in the field

operations, high-visibility team based projects, and presentation of results and recommendations

to the executive leadership team (Dowell, 2010). The Home Depot is changing the way that they

engage workers to meet the needs of younger high potential talent. Young workers feel valued,

like they are making a difference and they are far more engaged than their peers who are still

working in more traditional retail worker roles. By better understanding the potential that these

individuals hold, organizations can leverage their experience to develop new ideas and increase

revenue.

Talent Management Strategy

It is recommended that Petsmart adopt a strategy-driven integrated talent management

model as suggested by Dowell and Silzer (2010). A recruitment strategy aimed at new college

graduates and high potential female workers must be added to the organization’s talent strategy.

These groups represent the majority of workers in the retail industry, but are not representative of

the executive leadership or the line management that is present in the organization. Retention of

these individuals will only be possible with careful development and support. Younger workers

require timely feedback from supervisors, stretch assignments and diverse on the job challenges

(Hurst, 1996). Women in leadership require female role models, unbiased opportunities for top

leadership positions, and more support and inclusion in the organizational culture (Broadbridge,

2007). In today’s business environment, discrimination of any kind cannot be tolerated. All

workers need to spend less time learning from computers and more time building relationships


with their supervisors and learning face to face (Byun, 2011). Leaders must commit to providing

this time to all workers, and should understand that this level of training and support offers the

best chance at real learning and development.

Implementation

The implementation of a strategy-driven talent management model has a lot of potential

positive impact for the retail sector, and more specifically, Petsmart. Some of the benefits this

strategy offers are:

Directly supports the achievement of business strategies, facilitates strategic nimbleness

and the ability to adapt quickly to changes in strategy, supports and pursues the efficient

use of resources by selective investment, focused programs, and coordinated efforts,

integrates and connects various efforts and programs to allow easy alignment and simple

transitions from process to process, focuses everyone on pursuing shared company goals

and objectives and encourages collaboration and teamwork. It ensures strong links

between talent decisions and business decisions, identifies and retains high-potential

talent that fits strategic business needs and builds an organizational culture as well as

values around talent, and finally encourages and requires objective measurement of talent

outcomes and impact on strategy success (Dowell, 2010).

By implementing a strategy-driven talent management plan, the organization can create a more

supportive and developmental place for women in leadership. Women are the primary customers,

and they also make up the majority of the workforce (Broadbridge, 2007). The company must

recognize the value that these individuals have to offer and understand that beyond ethical

business practices, this type of strategic support can add to the bottom line.


The second change to the talent management strategy must come in the way the younger

generation is engaged and developed. The differences in experiences lead these individuals to

expect something more from leadership and they will not stay if those needs aren’t being met.

The younger generation has a lot to offer and they make up a large portion of the retail workforce

(Hurst, 2009). By altering and enhancing the structure of relationships, expanding job roles and

offering stretch assignments, retail organizations can better connect with the younger worker and

will have a better chance to develop those individuals into the next generation of leaders.

Finally, by building a talent management strategy that does not rely solely on e-training

for the training of new employees, the organizational culture will encourage more connection

and build better mentoring relationships between workers and supervisors. It is important to

ensure that all employees in various regional areas receive equal training, but this training should

not come at the cost of personal relationships and true support and development from leaders

within the organization.

Monitoring and Measurement

Like most organizations, Petsmart sticks to “basic talent metrics, such as turnover and

time to fill a position” (Dowell, 2010). The most difficult aspect of talent management for an

organization like Petsmart, is the difficulty in monitoring program follow through and

effectiveness in 1,200 locations spread all across the country. It is not surprising that the

company has turned to e-training as an easy fix to the gaps that occur in training due to myriad

mitigating circumstances that cause each region to operate outside of the expectations of the

corporate structure. “What are the complexities and limitations of measuring talent management

effectiveness against broad organizational performance? What is the best organizational level to

establish these metrics?” (Dowell, 2010). Executive management, line management, and human


resource and talent management practitioners as the three key stakeholders when attempting to

implement a new talent management strategy (Dowell, 2010).

Within Petsmart, often the executive management and the centralized HR team are on the

same page due to their close physical proximity and stronger working relationships. Line

managers, far more decentralized from the organizational culture, are asked to deliver any new

strategy role outs and the level of buy-in they hold directly effects the accountability that they

feel toward attracting, developing and retaining strategic talent. “In decentralized organizations,

lower level managerial jobs are more generalist and proactive, with greater emphasis on

entrepreneurial, resource allocation, liaison and human resource management activities than

those in centralized organizations” (Hales, 1996). With this expectation should come enough

human resources training and development for managers so that they are prepared to help any

individual who has potential for growth.

By using 360 feedback reviews, line managers will be accountable to their teams for

providing development opportunities and building relationships that facilitate high potential

talent growth. The 360 feedback review will focus on aspects of approachability, fairness,

professional support, fostering relationships and building strong communication. In addition,

performance appraisals will be done with the individuals’ talents in mind and more information

and feedback about possible career options and career path goals within the organization. While

CEO support is necessary, line managers will be the face of the installing talent management as a

core business practice.

Conclusion

Petsmart values caring for its customers, their pets, and its employees. The organization

has made changes to better support the people that are on the front lines of customer service and


specialized pet services. The organization is poised to create a talent management strategy that

applies a more sophisticated approach to managing specific groups of individuals that will drive

the business to greater success. By adapting talent management practices to better support and

include younger workers and female managers, and by adapting some aspects of e-training or

replacing portions of it with actual leadership mentoring, the organization can better manage the

high potential talent that it has and alter the perception of retail as a career choice for many

individuals.

The success of this type of talent management plan relies upon executive leadership, HR

mangers and line managers all adopting the process and remaining vigilant in the administration

and support of the new core business strategy. Line managers must adapt their behavior to

provide more challenge, feedback and personal connection with younger workers. They must

also seek out high potential women to develop as leaders and avoid the “boys club” mentality

and other discriminatory behaviors that exclude women from retail management roles. Executive

leaders must make a commitment to offer more director level roles to women and develop more

female role models for up and coming individuals. Providing more flexibility and adaptability in

job roles, scheduling and promotion opportunities supports both groups and can make it possible

for more high potential workers to join the organization.

Finally, line managers must increase self-awareness and seek to develop their own

leadership skills in order to support the goals of others and find new and creative ways to

develop individuals that are of great value to the organization, but choose to leave for

opportunities that better fit their needs and recognize the high value of their talents and gifts.


References

Broadbridge, A. (2007). Dominated by women: managed by men? The career development

process of retail managers. International Journal of Retail & Distribution Management,

35(12), 956-974. doi:10.1108/09590550710835193

Byun, S., & Mills, J. E. (2011). Exploring the Creation of Learner-Centered E-Training

Environments among Retail Workers: A Model Development Perspective. Cyber

psychology, Behavior & Social Networking, 14(1/2), 65-69.

doi:10.1089/cyber.2009.0066

Dowell, B. E. & Silzer, R. (2010). Strategy-driven talent management: A leadership imperative.

San Francisco, CA: Jossey-Bass.

Hales, C., & Tamangani, Z. (1996). An investigation of the relationship between organizational

structure, managerial roles expectations and managers’ work activities. Journal of

Management Studies, 33(6), 731-756.

Herrmann, K., Komm, A., & Smit, S. (2011). Do you have the right leaders for your growth

strategies?. Mckinsey Quarterly, (2), 22-26.

Hurst, J. L., & Good, L. K. (2009). Generation Y and career choice: The impact of retail career

perceptions, expectations and entitlement perceptions. The Career Development

International, 14(6), 570-593. doi:10.1108/13620430910997303

Jun, J. (2010, October 2). Petsmart in China. Agenda in Business. Retrieved from

http://agendabeijing.com/top-dog-yan-lei-of-the-lee-pet/

Mujtaba, B., & Sims, R. (2011). Gender differences in managerial attitudes towards unearned

privilege and favoritism in the retail sector. Employee Responsibilities & Rights Journal,

23(3), 205-217. doi:10.1007/s10672-010-9162-y


Petsmart.com/company information retrieved from http://phx.corporate-ir.net/phoenix.zhtml?

c=93506&p=irol-homeprofile

PETsMART, I. c. (n.d). PETsMART, Inc. 10K or International Equivalent 2011. Retrieved from

http://www.mergentonline.com.xxproxy.smumn.edu/companydetail.php?

pagetype=synopsis&compnumber=77319

Sakai, K., Matos, K., Galinsky, E. (2008). Retail industry employees and turnover. Families and

Work Institute. Retrieved from

http://familiesandwork.org/site/research/reports/TurnoverAndRetail.pdf


Artifact Summary 8: Organizational Change Plan Analysis

I have chosen my organizational change plan analysis paper from OL 645 –

Organizational Change and Development, as my eighth artifact. I prepared an analysis of TOMS

Shoes which is an organization that combines philanthropy and profit in a reasonably successful

way. Based on feedback from consumers and critics, TOMS Shoes was able to restructure the

type of charitable giving they offer and how their products are made to support a more socially

responsible existence. Researching this company and writing this analysis was one of the most

personally influential assignments of the MAOL program. I began to challenge my perspective

and perception of the role of business in socially responsible behavior. I am also aware of the

ways in which organizations can best support social agendas in respectful and innovative ways

that can do the most good. This new understanding has helped me to determine the types of

organizations that I want to join and what types of corporate social responsibility should be

approached with caution.

This artifact aligns with the seventh Organizational Leadership program learning

outcome by offering an opportunity to conduct research and communicate results successfully

(St. Mary’s University, n.d.). As my writing and research skills have improved throughout the

program, I feel more capable of communicating the heart of the issue and developing a unique

perspective through my writing. The artifact also demonstrates the course outcomes that show

my ability to evaluate opportunities for planned and emergent change approaches and identify

obstacles to change and strategies to address them (St. Mary’s University, 2013).


References




Saint Mary’s University of Minnesota. (2013). M.A. in organizational leadership . Retrieved

from http://www.smumn.edu/graduate-home/areas-of-study/graduate-school-of-business-



Organizational Change Plan Analysis

Heather Anderson



OL 645 – Organizational Change and Development

December 15, 2013


Introduction

TOMS Shoes was created in 2006 with the concept that for each pair of shoes purchased,

the organization would donate another pair to a child in need. TOMS is portrayed as a

progressive and socially focused organization where workers are engaged in social change on an

individual basis. The website reads: “here at TOMS HQ, we are surrounded by people driven to

be the change, both on their TOMS projects and beyond”

(http://www.toms.com/stories/category/culture/). Based on the idea of the golden circle created

by Sinek (2009) TOMS has been successful because the message of why the organization was

created resonates with so many individuals on a basic level. Sinek states: “People don’t buy what

you do, they buy why you do it” (2009).

TOMS Shoes has been very successful but has also run into customer and media backlash

due to the lack of sophistication the corporate social responsibility impact that the buy one, give

one donation model has. When the organization gives shoes away, there is an impact on local

economies and the act does not address the actual needs of the people in poor communities. The

current influx of shoes into an emerging economy makes a lot of assumptions about the needs of

that local economy without really understanding how those products will effect local artisans and

business owners, the culture of the people or how the money spent on these shoes could be better

spent (Costello, 2012).

Implemented Change Process

TOMS has begun to change the way that they manufacture the shoes that are given away.

They are committed to ensuring one third of all giving shoes will be produced in the

communities that the shoes are meant for by 2015

(http://live.huffingtonpost.com/r/archive/segment/toms-founder-responds-to-one-for-one-


criticism/5284012efe34444ea80002ca). This type of change requires a great deal of

technological and manufacturing change management. Initially, TOMS was hesitant to make

these types of changes, because of the financial and logistical implications that seemed difficult

to overcome (Chu, 2013). Currently, China is the leading producer for the retailer’s products, but

now they will have to look to less globally connected parts of the world where production and

distribution

Continuous Improvement, TQM and Learning Culture

For an organization like TOMS Shoes, how and where the products are made is just as

important as the quality of the products. This social and technological link requires the

organization to proceed carefully and deliberately to produce its products. Total Quality

Management has many benefits for an organization like TOMS shoes. Although it is a

philosophy usually implemented by larger organizations, the fact based approach can help build

a culture of learning that will meet the goals and values of the organization. Black and Porter

(Wenbin, 2009) determined that the critical TQM success factors are: people and customer

management, supplier partnerships, communication of improvement information, customer

satisfaction orientation, external interface management, strategic quality management, teamwork

structures for improvement, operational quality planning, quality improvement measurement

systems, and corporate quality culture (p. 38).

According to Wenbin (2003), TQM is a philosophy that is focused on customer relations.

This is also a primary focus for TOMS Shoes. The organization understands the impact of

customer sentiment on the social message of their organization. Without a strong customer focus,

it will become difficult to connect the media and buying public to the message of the

organization and cause the giving model to fail.


One aspect of TQM that is being utilized at TOMS Shoes is flexible work teams. “The

team members jointly assign tasks and transfer workers from one task to another as necessary”

(Jones, 2012). Design teams can be seen on the website working in groups without rigid structure

or hierarchy (http://www.toms.com/stories/we_are/a-letter-from-our-chief-giving-officer/). The

restructuring that has taken place has been cultural in that the organization has changed its

understanding of how charitable giving truly impacts other communities. By working with more

sophisticated strategic partners and by being more adaptable in the beginning, the CEO might

have been able to avoid some of the public backlash and create a supply chain that supported

local economies. Mycoskie was publicly defiant against the criticism at first, but eventually

relented and is now redesigning his supply chain to create a more socially aware and responsible

and supportive supply chain.

In such a small and young organization that is not controlled by a board or stockholders,

the attitudes and beliefs of the CEO set the tone for the group’s ability to change. Mycoskie, the

CEO of TOMS Shoes, was initially the most resistant to change because he based his giving

model on the Western faith based organizations he had been a part of in the past. These

organizations partner with local churches when giving. This connection is not always positively

viewed by consumers who seek out socially responsible retailers (Costello, 2012). There was

little anthropological or sociological research done by the organization to determine the most

effective way to make an impact in emerging economies. Organizational Learning is a process

for improving actions through better knowledge and understanding. “It is especially manifest in

the ideal form of learning organization that is links learning to competitive advantage of firms”

(Wenbin, 2009). Although the CEO of TOMS Shoes, Blake Mycoskie, was initially resistant to

the criticism about the true impact of giving away shoes when the communities he served really


needed jobs instead, he was able to learn from it and find a way to adapt manufacturing and

distribution to benefit these communities. In this case, the level of consumer learning and

sophistication surpassed the understanding of the organization. The organization is currently

producing the shoes it gives away in Kenya, Ethiopia, Argentina and China. They are testing

production in India and are looking to expand manufacturing in Africa and other regions. They

are also looking to use locally produced textiles in the future (http://www.toms.com/evolving-

our-giving/l#expanding-local-production).

The organization took feedback from the consumer and utilized the ideas and efforts of

team members to find a way to capitalize on where and how their products are produced. By

altering their approach, they were able to stay true to their mission and message and proved

adaptable to changes in how consumers understand logistics and the impact of social

responsibility initiatives on communities with emerging economic markets.

TQM barriers and moving forward with sustainable change

Research shows that implementing TQM can meet resistance when there is a lack of

customer orientation, lack of planning for quality, lack of total involvement, lack of management

commitment, and a lack of resources (Wenbin, 2013, p. 39). It is clear due to the continued

financial success of TOMS Shoes that the customers were with them all along. The company

reacted in a timely manner to public concern and was able to avoid losing customer loyalty. The

founder, Mycoskie, has been active in the media sharing the changes that the organization is

going through and appears to be on board and leading his organization toward total quality

management and continuous improvement. There have been no reports of employee resistance

and the organization appears committed to begin changes that will further grow the global

involvement of emerging economies in production and distribution. Organizational learning


develops along an evolutionary and experiential process. Continuous improvement is a vehicle or

driving force for learning more (Wenbin, 2013).

Recommendation for Improvement

The online retailer Nisolo is also working to connect the needs of the developing world

with socially minded customers. The organization shares:

If you have spent much time in the developing world, you have probably noticed the

talent, hope, and dedication evident in the midst of impoverished communities. You have

probably met remarkable people with plenty of talent and potential yet who lack access

(to capital, training, established markets, etc.) and true opportunity. The Nisolo team has

spent extensive time in various regions of the developing world, and like you, we have

wanted to come up with solutions to address this injustice.

We have found that in many cases, the greatest need in the developing world is not for

material donations of shoes, clothing, or food. Working to provide in this manner is a

way of addressing the "effects" of poverty (lack of shoes, lack of clothes, hunger etc.)

Instead, our goal is to address one of the main causes of material poverty: lack of a

consistent job or livelihood (http://www.nisoloshoes.com/about-us/our-cause/).

The global environment is volatile, unstructured, complex and ambiguous (Johansen, 2013). This

is especially true when attempting to influence developing cultures that are unfamiliar and also

meet the needs of highly sophisticated customers that are also attempting to better understand the

ambiguity of the global community and have a positive impact while still receiving high quality

products. By adopting the “Buy One, Give One” model, TOMS Shoes has added a level of

complexity to their organization that challenges the lean and efficient manufacturing goals of


TQM. By focusing on further developing continuous improvement and total quality management

of the product lines that it is running all over the world, TOMS will be better suited to sustain

global giving and help other communities develop sustainable economic benefits. TOMS should

also continue its Organizational Learning in the sphere of charitable giving and social

responsibility so that it can best utilize its vast resources to do the most good. “Buy One, Give

One” may be the hallmark of the organization, but the group may have to take a serious look at

the true return on investment for that sort of antiquated and dangerous giving model as it

continues to look for ways to improve in the future.


References

Anderson, H. (2013, November 6). TOMS Shoes. Saint Mary’s University of Minnesota.

Chu, J., & Weiss, J. (2013). The Cobbler’s Conundrum. Fast Company, (177), 98-112.Conger, J.

A., & Kanungo, R. N. (1988). Charismatic leadership: The elusive factor in

organizational effectiveness. San Francisco, CA: Jossey-Bass

Costello, A. (2012, March 15). TOMS Shoes: A closer look [Podcast]. Tiny Spark. Retrieved

from http://www.tinyspark.org/podcasts/toms-shoes/

Johansen, B. (2013). Navigating the VUCA World. Research Technology Management, 56(1),

10. doi:10.5437/08956308x5601003

Jones, G. R. (2012). Organizational theory, design, and change. Upper Saddle River, NJ:

Prentice Hall.

Sinek, S. (2009). Simon Sinek: How great leaders inspire action [Video file]. Retrieved from

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

Singh, J., & Singh, H. (2013). Continuous Improvement Strategies: An Overview. IUP Journal of

Operations Management, 12(1), 32-57.

Wenbin, N., & Hongyi, S. (2009). The relationship among organizational learning, continuous

improvement and performance improvement: An evolutionary perspective. Total Quality

Management & Business Excellence, 20(10), 1041-1054.

doi:10.1080/14783360903247312


Artifact Summary 9: Integrated Learning Forum

I have chosen my integrated learning forum presentation from OL 654 – Strategy and

Innovation for my ninth and final artifact summary. The assignment required detailed research, a

teaching experience in the form of a Voice Thread, and a strategic action proposal. I researched a

creative tool developed and used by Boston Children’s Hospital called the innovation lifecycle

model. This model provides a roadmap for anyone within the organization to recognize, develop

and implement opportunities for change and change management.

During this course the benefits of creativity, innovation and diverse teams were revealed.

The techniques to best engage introverts and creative team members have changed how I interact

with and lead colleagues and employees. Understanding how people best perform and develop,

and the role of creativity and innovation in change management has greatly enhanced my view of

organizational leadership.

This artifact aligns with the eighth Organizational Leadership program learning outcome

by showing how to create an organizational culture of diversity and inclusion (St. Mary’s

University, n.d.). Developing innovation tools that support the participation of all members of an

organization recognizes the creativity of everyone and support diversity and inclusion. The

artifact also demonstrates the course outcome showing how to integrate creative thinking

strategies in a system or an organization to build and/or foster the capacity to innovate, change

and develop (St. Mary’s University, 2013).

My presentation can be found at: https://deltak.voicethread.com/share/5506670/


References




Saint Mary’s University of Minnesota. (2013). M.A. in organizational leadership. Retrieved from

http://www.smumn.edu/graduate-home/areas-of-study/graduate-school-of-business-


artifacts 7, 8 & 9, maol 2014

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