Leadership and Change Management
MBA 520
University of Phoenix
Leadership and Change Management
In a free market economy, it is a given that there will be change. The manner in which this
change is implemented can play an enormous part in the success of an organization.
Change management “describes a structured approach to transitions from a present to a
desired state, in individuals, teams, organizations and societies” (Wikipedia, 2006). The
organizations leadership must identify the challenges associated with implementing the
changes and facilitate a smooth transition. The following paragraphs examine some of the
challenges faced by major organizations and detail their responses.
Apple Andrea Goddard
At Apple, it is the people within the organization, not the money or computers, which are
innovative and keep Apple successful. As Steve Jobs, CEO of Apple says, “Innovation has
nothing to do with how many R&D dollars you have. When Apple came up with the Mac,
IBM was spending at least 100 times more on R&D. Its not about money. Its about the
people you have, how youre led, and how much you get it.” (Linzmayer, para. 6, 2007).
Jobs understands the impact that employees have on an organization and has used this
knowledge to guide the corporation.
This charismatic and transformational leadership has helped Apple to achieve success and
remain innovative. Being opinionated and visionary has not always led to success as Apple
fired Jobs in 1985 for this behavior. It is this same behavior that led to his rehire in 1997
(anon. 2002). Jobs demonstrates how a leader can change things how things are done by
developing a new and appealing vision of the future. This vision and mission set the stage
for change and then the teams implement necessary changes.
Boeing Daeron Lockett
Boeing has enjoyed enormous success in the field of aviation. The 737 Jumbo Jet actually
accounts for more than forty percent of worldwide commercial jet sales. The entire airline
industry suffered devastating losses from the 9/11 tragedy in the United States. Along the
way, Boeing had to institute a great deal of change to handle cut-throat competition. In
addition, an earthquake destroyed a major building at its manufacturing facility in
Washington. By account of surveys, there was a big disconnect between aircraft designers
and those that actually assemble the crafts.
Part of the response came as a direct result of the earthquake tragedy that at their
manufacturing site. Office space was at a premium, so many of the designers were set up
offices in the manufacturing plant (Price, 2004). This was a source of resistance as many
of the white-collar workers considered their office jobs a badge of distinction. During the
90 days that the designers were in the plant, they were able to analyze the processes and
tools to implement the design. What emerged was a revelation to both sides that things are
completely different. In fact, so many successful ideas flowed freely between designer and
manufacturer that many did not want to leave the plant after alternative offices had been
set up.
Like many large organization, Boeing suffered from vertical and horizontal
communication problems. Some of the ideas instituted as response include:
Open plan workspaces and common areas
Communal cafes with mini-libraries and Whiteboard systems and lounge seating
A wide boardwalk joining the factory and offices for impromptu meetings and discussions,
emblematic of a more unified work force
Productivity increased dramatically thanks to the communications changes. Productivity
increased by 50%, and the time it takes to build a 737 decreased from 24 days to 12.
A simple facilities change grew into a great deal more as some engaging ideas, which was
new communication between manufacturer and designer, flowed freely for 90 days. The
result was changes to the entire organization.
General Electric (GE) Tools for change management Sandra Welch
General Electric (GE) understands the need for flexibility, constant change and innovation
to succeed. GE has adopted cultural and developmental programs to help the organization
foster the cultural change process. In 1988, GE developed a Work-Out process that helped
multidisciplinary teams to ensure that the each process teams were using were the most
efficient and comprehensive (GE, 2007). The strategy of the Work-Out team was to start
evaluating the more obvious processes (“low hanging fruit”) that employees did not
understand and/or did not make sense. The Work-Out program resulted in a more efficient
process with many groups doing more work with fewer resources (GE, 2007).
The Change Acceleration Process (CAP) is another program that GE has implemented in
order to affect change for the organization. CAP is a guide for employees to drive effective
change and gives tools to the business teams that encourage dialogue. This process
increases success and acceleration of organizational change efforts (GE, 2007). GE also
uses other tools for employees to ensure quality process and effective change management
like the Design for Six Sigma (DFSS) training. DFSS gives the framework for teams to
refine and improve process so that employees and customers realize the best results (GE,
2007).
GE also has an Experience Commercial Leadership Program, (ECLP), which provides
mentors for up-and-coming leaders for GE (GE, 2007). Senior leaders within GE mentor
other leaders in order to share their best practices and develop their skill. This program
also allows people to take their experience and training to different levels and different
parts of the organization to increase their skills (GE, 2007). This also gives leaders a
variety of opportunity to explore different aspects of GE.
Green Bay Packers- Vince Lombardi – Sandra Welch
It was leadership in the face of adversity helped the Green Bay Packers realize success. In
