Question

Q3. Explain the benefits and disadvantages of resistance to change that Rose as a CEO may encounter as he launches his new organizational change management.

Case study
MARKS AND SPENCER

Stuart Rose, the CEO of Marks & Spencer, started with emphasising the critical need for change – by emphasising that the current state was untenable. Rose noted that inventory was not being managed effectively, decision making was being delegated without accountability or senior management sign-off, and customers were being attracted to newer, dynamic competitors. Change was imperative.

Rose started the change process with a core team of trusted people he had worked with – and he knew their strengths. Rose brought with him the Executive Director of IT, Supply Chain, and Property, and the Executive Director of Marketing and Store Design. With this core team, Rose was “able to hit the ground running.” Rose described the period prior to his leadership unflatteringly as the “consultant years, which were awash in numbers and surveys and complexity.” Rose reviewed the current use of consultants, and eliminated all but 10 of the consultants’ 31 existing “strategic projects.” For Rose, the change was simple: “improve the product, improve the stores, and improve the service.” Rose provided a simple, accessible and operational guiding vision.

In addition, he reinforced the communication of the message symbolically to reinforce the point, and focus energy around the core direction. Rose drove the change down into the “DNA” of the organisation not only by putting everyone through training on the basics, but sat in on operational day to day meetings to the “level of micromanagement” to focus the conversation in detail on the key points. Incentive structures were realigned to reward service performance instead of seniority, redefining the career progression path. The entire 56,000 strong workforce was put through motivational training sessions focused around teamwork and customer service.

Rose encountered an environment where “people within Marks & Spencer were already lobbying for different plans, different strategies.” However, because “the Christmas season is the key to the entire retail year and how industry analysts gauge a company’s health”. There were clear timelines to achieve results. There was no time to try one direction and perhaps change to a different course if that didn’t work. Rose committed to the direction he had selected, and “there was no Plan B.” That is, Rose committed to letting go of alternative ideas and the status quo, and committed the organisation to the new path.

Answer 1

Answer 3=The following benefits can be obtained from the resistance to change=

It will motivate the management to revisit their change plan and redesign for the effective implementation

The management can identify certain areas where the problem lies

It will help the management to use a better strategy to communicate the communication about the possible change

The management will also understand the areas of concerns of the employees

It will enable the employees to communicate their concerns to the management

The following disadvantages are related to the resistance to change=

It may result in wastage of time and resources

It can result in derailing the proposed improvements in the organization

The management may have to delay the change implementation and it can put the company at the disadvantageous position