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Feb 20, 2024

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1 Organizational Change Model Organizational Change Model of Best Buy Ashawnta Gillman MGT 435: Organizational Change Dr. Rob Shah October 17, 2022
2 Organizational Change Model Introduction: Organizational Change Change is inevitable, and every organization goes through it. External and internal forces typically trigger organizational change. (Weiss, 2016) It enables companies to transform their organization to increase productivity and meet stakeholders' needs. Several factors can be why an organization changes, such as environmental, economic, technological, geopolitical, sociocultural, and many others. There are many change models/theories that a company can use as a tool to help implement changes efficiently and effectively. Those include Cummings and Worley's five dimensions of leading and managing change, Ackerman and Anderson's roadmap for change, Kotter's change management tool, and Three components of organizational change. Best Buy is the organization I will discuss that has responded to external change. This assignment will discuss how Best Buy has changed and which change model best fits each implementation of change. Need for Change: Best Buy’s Issues At the time, Best Buy's margins were declining and had negative comps. (Reagan, 2017) “Employee engagement seemed to be at an all-time low. Online shopping took a major toll on Best Buy's sales, causing them to plummet downhill. Furthermore, like many other retailers, Best Buy stores were bleeding money. "As customers came to test products they wanted, they eventually bought them online from Amazon at a cheaper price (Bariso, 2019)." There were also questions about whether the company would survive or not. Joly stepped in “just after its quarterly profits plummeted by 91 percent and its stock price hit a nine-year low (Blanding, 2021).” Fortunately for Best Buy, they had a significant organizational change coming. They
3 Organizational Change Model appointed new CEO Hubert Joly in 2012, who had a plan to turn the company around. In an interview with CNBC, Hubert said that his transformation strategy was mainly about fixing what was broken. “Hubert Joly laid out his transformation plan “Renew Blue” to reverse sales declines and improve profitability through cost cuts and growing online sales (Reagan, 2017)." Once hired, Joly led the company through their successful and influential "Renew Blue" transformation. As a result, it improved customer satisfaction, market share gains, revenue growth, and margins. Joly's plan was like Cummings and Worley’s five dimensions of leading and managing change. His plan consisted of 1. Reinvigorate the customer experience by offering customers unique benefits, exclusive membership programs, and multi-channel shopping experiences. 2. Attract and grow "transformational leaders" and energize employees to deliver "extraordinary results." 3. Work with vendors to innovate and "drive value." 4. Increase the company's investment capital return by increasing revenue and efficiency. 5. Making the world a better place through recycling and providing teens with access to technology. (Murray, 2012) Joly drove five consecutive years of sales growth, a 263% increase in shareholder return, and doubled online sales. Most notable is that Joy achieved outsized financial results by focusing on a purpose bigger than money. (McLeod, 2021) Finding a Solution: Corie Barry In June 2019, Best Buy appointed its new CEO, Corie Barry. Unfortunately for Barry, right after assuming her new leadership position, the COVID-19 Pandemic came about. Before becoming CEO, Corie served in several other executive positions. She was critical in developing and executing the company's “Building the New Blue” growth strategy and related transformation. However, Barry knew she needed a plan to counter the Pandemic, and Joly's plan
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