Change Management- Shangri-La 2000
Introduction
The paper reviews the changing event of organizational culture of Shangri-La Asia Limited (hereinafter referred to as “Shangri-La”) held in the 1990s. In spite of enjoying some appreciable profits and rapid development of the scale of the company in the early 1990s, their management concerned the urgency of change in organization culture in order to enhance customer loyalty through creating a common goal and a set of common values within the organization. In this paper, Kotter’s change model is used in explaining the critical change factors in Shangri-La. The case study undertaken in Shangri-La, Kowloon (hereinafter referred to as “KSL”) is used as an example to help us to illustrate
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Fig 1. Shangri-la Asia Limited Annual Report 1993-1997
The new Managing Direction feels that it is necessary to create a common goal and a set of common values to combine all the hotels to promote the feeling they were the same organizations.
2) Form a powerful coalition
It’s very important to convince the key people that change is necessary. Identification of the true, strong leaders, influential people in the organization from different department is needed. Appoint these people to work as a team to build the urgency and momentum of change.
The MD has identified the corporate staffs, GM and hired the group HR director who was very experienced in changing company culture to develop the process and performance measures.
3) Create a vision for Change
After the team is formed, then vision needs to be identified.
The vision was set as “Shangri-La vision was to be the dominant hotel in Asia by year of 2000” and the mission was set to be the dominant choice for customers, employee and shareholders.
“Shangri-La 2000” strategic plan were divided in 3 pillars:
Customer, People and Process & Technology. Top priority is the Customer and leadership was the foundation of the strategic plan.
4) Communicate the Vision
MD communicated the “Shangri-La 2000: our Journeys towards Dominance” strategic plan to the GMs at the annual GMs’ meeting. With Corporate officers and Group HR director presence, participants could raise out the
Organizational culture is the “values and beliefs that people have about an organization and provides expectations to people about the appropriate way to behave” (Kinicki, 2013, slide 3). Corporates can change Changing organizational culture can be a process using one or more of the eleven strategies, (1) formal statements, (2) slogans & sayings, (3) stories, legend, & myths, (4) leader reactions crises, (5) role modeling, training, & coaching, (6) physical design, (7) rewards, titles, promotions, & bonuses, (8) organizational goals & performance criteria, (9) measurable & controllable activities, (10) organizational structure, and (11) organizational systems & procedures (Kinicki & Williams, 2013, p. 236-137). Like stated before organizations
Step 2 is forming a powerful guiding coalition. Leadership will have to be on board and on the same page in regards to the change. Kotter and Cohen reveal the core problems people face when leading change. Their main findings are that the central issue concerns not structure or systems but behavior and how to alter it (Farris, 2008). The success of the changes will depend on the ability of the managers to show their commitment to change and motivate the employees to do the same. Without any process to track the implementation, the change can also fail.
The first step in driving the necessary change within the organization is to secure an outside consultant to serve as a change agent. The change agent will facilitate and guide the organizational development (OD) through process consultation intervention. In this process, it will be necessary to identify sources of resistance through Force field analysis. Once the sources are identified, one-on-one meetings and group meetings will be conducted to educate the employees on the changes and the reasons why change is necessary. This step will find the management team working to re-define the vision of the organization. As part of motivating the
Organizations must respond to their internal and external environment. Therefore, organizational success heavily relies on leaderships ability to manage change. Unfortunately, many leaders struggle to effectively lead change initiatives. In fact, Ashkenas (2013, para. 1) reported 60 – 70% of organizational change initiatives fail to meet their objectives.
I believe that a key to leading through, and accepting, change can be effective communication. Although everyone may not be able to accept change, they should make that decision with proper information on hand. Fullan (2015) stated that "Consistent communication during implementation is essential to getting the collective clarity and energy necessary for success. Communication sticks best when it is close to action in time and place and is frequently
The first step in driving the necessary change within the organization is to secure an outside consultant to serve as a change agent. The change agent will facilitate and guide the organizational development (OD) through process consultation intervention. In this process, it will be necessary to identify sources of resistance through Force field analysis. Once the sources are identified, one-on-one meetings and group meetings will be conducted to educate the employees on the changes and the reasons why change is necessary. This step will find the management team working to re-define the vision of the organization. As part of
In order to bring about a successful change, it is important to first consider the rationale for change. The organization and people being impacted by the change must understand the desire for change, benefits, and importance of supporting the change. After the change has been embraced and implemented successfully, it is essential for the organization to incorporate it as a standard practice, motivate the personnel to utilize it, and adhere to the change to influence positive
Change in an organization can be and usually is difficult for various reasons. Much of the difficulty is in the approach used to initiate change and the willingness to stay engaged and stamina to sustain change through to the end. Organizations can choose to lead by recognizing and implementing change, follow in the shadow of organizations leading the market, or get out of the way by standing still and eventually going under. With this said; if change was easily done and successful for every organization there would be no need for change management specialists and years
According to Cummings and Worley (1997) there is a five-phase process for managing change, including: motivating change, creating vision, developing political support, managing the transition, and sustaining momentum. Motivating change involves creating a work environment that embraces change and developing approaches to overcome any resistance to change. The general guidelines include: enlightening members of the organization about the need for change, expressing the current status of the organization and where it should be in the future, and developing realistic approaches to change.
Communication – Talk about the change vision, if people have anxieties then address these openly and honestly. Tie in the vision to all areas of the business from training to performance reviews
Make sure the changes are necessary. The first and, perhaps, the most serious obstacle on the way to change is the inertia of the personnel. If employees are satisfied with the current state of affairs, it is almost impossible to convince them that something needs to be changed. To achieve this understanding, one needs great management skills. Such 'calmness' can be a consequence of the fact that the crisis has not yet begun to explicitly inform about itself. Its signs at the initial stage can be discerned only by an experienced analyst.
Organizational change is not easy, but is an integral component that often allows the company and its employees to be prosperous. There are many ways to approach organizational change. Some are scientific theories like those stated in Organizational Behavior and Management (John Ivancevich) while others like John P. Kotter in “The Heart of Change,” believe it is just getting to the heart of your employees. If an organization today wants to be successful, they must understand why change is resisted and determine how to create a process to overcome this resistance
It is important to change various aspects of organization culture when trying to institute change in organizations (Kavita, 2005). The aspects that such changes should target include the balance of power in the organizations, the organization structure that supports the framework, leadership and management styles. Organizational history is also very critical, especially if it has a progressive track record success. However, if the culture despite the changes remains aligned to the organization goals and mission the employees will adopt it and embrace change.
You also must form a powerful coalition and create a vision for change. This begins with strong leadership and effective communication skills in order to communicate your vision. Another step in the process is to remove obstacle or barriers that may block or prevent change from happening. You must also motivate the team along the way by creating short term goals, building on change and anchoring the changes in corporate culture. Kotter put an emphasis on step one which is creating urgency for change. You must be convincing and open when presenting this change to your team to gain their support. It is important to give scenarios, show the benefits of making this change and the drawbacks of not making the change.
While different organizations appoint several stakeholders for this task, others restrict their strategic planning process to their internal stakeholders only. In this case, only top executives are responsible for the planning and decision-making. However, in the Ritz-Carlton hotel, both internal and external stakeholders are involved in the strategic planning process. The organization understands the benefit of inclusion in generating ideas. This paper will, therefore, elaborate on the Ritz-Carlton hotel as a familiar organization and duly identifies the various stakeholders that ought to be involved in its strategic planning process and the paper examines the importance of these stakeholders and the unique insight they bring to the strategic planning process. Furthermore, the paper considers the various functional areas that are important and the functional areas that are less relevant in the strategic planning process. As in every organization, decision-makers are important so this paper identified key decision-makers in the Ritz-Carlton strategic planning process and finally, we evaluate the importance and effect of these stakeholders in the organization’s planning