The Change Analysis - Images of ChangeKeller Graduate School of ManagementJohn SandersHRM587 - Managing Organizational ChangeProfessor DurbinMay 18, 2014

ContentsBlockbuster vs. Netflix3Pressure for change3Blockbuster3Unintended consequences3Blockbuster3Unintended consequences4Netflix4Lessons learned4Blockbuster and Netflix4References6

Blockbuster vs. NetflixBlockbuster video was the biggest video store in the United States. This company failed in the end because it rested on its laurels and did not take time to adjust so that it could take full advantage of technological changes to meet the demands of the customers. Blockbuster also forgot to size up the competition that was sitting in the chair next to them (David, F.).Pressure for changeBlockbusterBlockbuster struggled with innovation concepts in its offering to its customers, they relied on brick and mortar where Netflix simply chose clicks with no bricks. Blockbuster placed a great deal of focus on how to become more effective in the companys brick and mortar business, redefining company objectives and direction (Westwood, J.). I have identified different images that Blockbuster used. Director: Based on an image of management as control and of change outcomes as being achievable. How this image differs: Supported by the n-step models and contingency theory.

Coach: Relies upon building in the right set of values, skills and drills that are deemed to be the best ones to be drawn upon in order to achieve desired organizational outcomes. How this image differs: Related to OD approaches

Unintended consequencesBlockbusterEmploying this theory failed the company. Leadership's decision not to pledge the same level of focus on the click initiative which the company needed to become competitive with Netflix. Netflix executives understood that an emerging technology was rapidly changing the delivery of movie rentals (Robbins, S. P.). The CEO of Netflix realized his company needed to enter into the industry with a strategy that not only embraced, but was ahead of the emerging technology capabilities (Stross, R.), he planned to be a competitor of customer convenience virtually changing the movie rental industry. I have identified different images that Netflix used. Navigator: Control is the heart of management action, although a variety of external factors mean that managers may achieve some intended change outcomes and others will occur over which they have little control. How this image differs: Know the directions and be sure that they know exactly where to go, pay attention to where the driver is going. Focus by not distracting don't let the drivers get off the path take or give one directional step at a time so as not to overwhelm the driver. Keep calm and don't panic if the driver misses a turn. Find an alternative route their keen sense of direction.

Coach: Netflix built the customer base on the right set of values, the best ones to be drawn upon in order to achieve success. How this image differs: Related to OD approaches

Unintended consequencesNetflixNot listening for the pulse almost ruined the company(Robbins, S. P.). Executives decided to split the company into two different companies, the move took Netflix to the brink, in two-weeks they lost over a half-million customers. Although they were the leader in streaming and mail order video, executives thought that they could change their business strategy without any repercussions, for awhile it looked like Netflix would go the way of the dinosaur. After much public marketing and returning the model back to just Netflix the customer base slowly started coming back. Lessons learnedBlockbuster and NetflixConduct ongoing risk assessments of what could go wrong with the consumers and always have a mitigation plan(David, F.), Blockbuster didn't have a fallback plan.Understand that no one likes surprises and introduce the changes accordingly Netflix should have known that a surprise rate increase, a new company name, etc. was too much within a short amount of time. Communications should be executed early on to gain buy in(Robbins, S. P.). Netflix should have taken a pulse by asking the customers how they felt about a new service and could have offered an incentive to consumers to accept the change rather than forcing the new strategy.

ReferencesDavid, F. (2013). Strategic Management, 4thEd. New York, New York: MacMillan PublishingRobbins, S. P. (2011). Know The Customer, Be the Customer (9th ed.). Upper Saddle River, N.J.:Prentice Hall.Stross, R. (2012) Why Bricks and Clicks Don't Always Mix. New York Times, Digital Domain.Westwood, J. (2013). Creating Success: The Successful Business Plan: McGraw Hill