BUS643: Leading Organizational Change

Some organizations are uncomfortable with change and may fear the unknown when it comes to change. Some leaders may not completely understand the organization's goals or may disagree with the goals and are unwilling to make the changes needed to move forward and be successful. Some leaders may not have the skills or are incapable of enacting change and following through with the needed changes. In addition, employees who have not been fully apprised of why change is needed may fight the change and be unwilling to follow through with proposed changes. This theory of change video addresses a non-profit business, how change occurs, and why it may fail.

As mentioned above, there are numerous reasons that an organization fails at implementing change. The culture of the business may not be matched with the change management system chosen to facilitate change. Employees may not buy into the change or may not be trained properly. Additional funding may not be available when it is needed. This page addresses the reasons some small businesses may succeed when large organizations fail to do so. Be sure to answer the concept check questions at the end of the section.

This short video explains a different understanding and focus of business today. Many businesses focus on making money, while in reality, any profit should go back into the business to help further develop the business.

A lack of teamwork, employee buy-in, and engagement can create chaos and disorder at the department and business levels. Teams must work well together to effect change.

The restaurant industry is one of the leading industries when it comes to business failures, and most businesses fail in their first five years. This video addresses the failures of restaurants and the reasons that most close within a few years of opening.

When your team lacks accountability, follow-through, or structure, chaos can ensue. The organization must have structures set in place that will follow up on assignments to ensure the team as a whole meets its commitments. Setting clear expectations and following up to ensure accountability occurs, the more successful a business can be as they move forward. This video has a step-by-step guide to keep accountability and ensure structure in each department and the company overall.

This page shows Kodak's company history, why the business failed, and how a new resurgence has occurred over the last decade. Read this page to better understand how this company failed to keep up with changing times.

The Hummer brand of SUVs is another example of a business failure. The extra-large tank-like vehicles were extremely popular in the 1990s and early 2000s, but as gas prices continued to rise, the massive gas-consuming SUVs had difficulty finding a market. Read the History section on this Wikipedia page.

Blockbuster Video may be the most famous business failure in the last few decades. The large video chain has numerous reasons for its failure, and most people believe that it was Netflix that created problems for this video/DVD renting chain, but Netflix and its DVD mailing and online streaming were only one of the reasons the company failed. Over the last few years, the last Blockbuster Video in the world has once again created some buzz over the fact that they are the last of the video chain stores. Several documentaries have been made about Blockbuster, and a new comedy show on Netflix has made the video chain popular again. This video explains the rise and fall of Blockbuster Video.

Read this case study about Netflix and disruption. How would you answer the three questions at the end?

Sears is another company that survived for over 100 years and could not keep up with change. Their mail-order catalogs were one of a handful of companies that did a successful business for decades. But with the development of the internet, they could not compete and filed for bankruptcy.

A good leader will naturally take the change needed in their department or business and communicate it to employees, who will then lead it. Read this section about why good management is essential and what might occur when it is not, and be sure to answer the concept check questions at the end.

As reviewing these case studies of failed businesses shows, we can learn from the mistakes of companies that, for one reason or another, did not change. This also shows why it is so important for organizations to change and keep up with the rest of the business world. Keep in mind that businesses that are successful today will also be challenged in the future and will also be forced to change or become obsolete. As technology advances further and further, organizations need to keep pace with those changes. This is why it is so important to effectively use change management. This video addresses why business transformation fails for so many and what a good leader can do to prevent that change from occurring.

Watch this as you work through the unit and prepare to take the final exam.