Final_Project_Submit_Change_Plan

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Running head: Final Project Change Plan 1 9-1 Final Project: Change Plan Southern New Hampshire University OL663 Leading Change Dr. Diannoni September 3, 2023

2 Overview The primary focus of this project will be to craft a comprehensive change plan. This plan will be rooted in the Alaska Airlines case study, which serves as a real-world context for addressing and understanding the challenges and opportunities connected to the change (Avolio et al., 2015). The first step consists of distinguishing a clear and measurable objective that aligns with the intended goals of the change initiative. These objectives will serve as the foundation for the entire plan and will guide the subsequent steps. Once the objectives are firmly established, the next phase entails working backward from the goals. This process will involve breaking down the change initiative into manageable phases, creating a step-by-step timeline for completion. Each phase should be thoughtfully designed to build upon the previous one, ensuring a logical and effective progression. For the successful implementation of the proposed changes, a thorough analysis of the necessary components should be conducted. This will include identifying key sources like potential changes and strategies for overcoming any obstacles. It is important to consider the processes, people, and technology involved in the change. Critical Elements: Analysis and Diagnosis Problem: Throughout the implementation of the change plan, it is essential to remain vigilant and attentive to any potential issues that may arise. Consistently evaluating and monitoring the plan to measure the progress and strategies needed will propel the change effort both internally and externally. Internal forces such as organizational inefficiencies, outdated processes, or failing

3 operation metrics may be forcing the need for change. These issues usually come from within the organization and can impede its ability to remain competitive and adaptable. External market changing aspects and growing customer preferences can be effective drivers of change. Technical advancements, regulatory changes, competitor actions, and shifts in societal values can apply pressure on organizations, forcing them to respond to remain relevant and competitive. In addition, environmental concerns and the quest for sustainability can also serve as a driving force, causing organizations to embrace more eco-friendly practices to reduce their carbon footprint. Impact: The problem may have arisen from a lack of adaptation to changing market conditions, which is often traced back to a combination of factors and events that have developed over time (Knaflic, 2015). Typically, this occurs from a culmination of circumstances rather than a single isolated incident. For instance, if an organization fails to respond adequately to developing technologies or evolving customer preferences, they will see a decline in their revenue or market share. This could gradually lead to organizational inefficiencies, causing processes to become outdated, and delayed productivity. Not to mention, a lack of employee training and development, poor communication, and misaligned goals could also contribute to the original problem. The organizational impact of this problem can be multi-faceted and far-reaching. Evidence shows there could be a decrease in profits, decline in customer satisfaction, poor employee morale, and reduced market share (Knaflic, 2015). The problem with organizational inefficiencies may also cause greater consequences like slower delivery times and increased

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4 costs, which will affect the organization’s competitiveness and reputation damaging their long- term success and sustainability. Organizational Needs Specific organizational needs can drive change, these changes can be categorized by several key areas, each with its own explanation. Below is an example of a few organizational needs with their own unique rationale and implications for the change effort.  Operational Efficiency: The organization may need to streamline their processes and workflows to eliminate obstacles, reduce waste, and boost productivity. This need arises to adjust resource use, reduce costs, and enhance overall operational performance.  Market Adaptation: Changes in market trends like competitive dynamics, and customer preferences may need adjustments in marketing strategies, customer engagement approaches, and product offerings (Knaflic, 2015).  Technological Innovation : Embracing digital transformation and new technologies may be essential to modernize the organization’s operations while improving customer experiences. This need is driven by the goal of staying technologically competitive to offer innovative solutions. Variables Prior to planning a change effort, it is critical to identify specific variables, issues, conditions, individuals, and other common factors that could potentially negatively impact the initiative. Addressing these concerns early is key for a successful change effort. Here are some common negative influences and how they should be handled.

5  Resistance to Change: You must recognize that individuals and teams may resist any proposed changes due to fear of the unknown. When people are concerned about how new changes will impact their roles, productivity, and morale drops. To encourage a positive environment prior to planning, a change management strategy should be developed. This strategy would keep everyone engaged and involved, while building support and addressing concerns.  Inadequate Leadership Support: Lack of commitment or visible support from top leadership can weaken a change initiative. Securing buy-in and involving leaders in the planning process demonstrates their commitment (Sinek, 2014). Leadership should be provided, coaching and training if required. This will ensure that they clearly understand the change.  External Market Conditions : Unexpected changes in the external market, such as shifts in customer demand due to economic downturns will impact the change effort. So, continuously monitoring external conditions will help prepare the organization and allow them to adjust to the change plan accordingly (Marr, 2012). Underlying Causes The fundamental causes of a problem or issue in any organization are usually considered to be the root causes. Therefore, understanding the underlying causes of the problem is vital for developing an effective change strategy, which is an important part of the “problem solving process.” Trying to figure out why the problem has developed and ensuring that the right responses are given involves a systematic approach. A lack of awareness or understanding sometimes arises from a lack of awareness or misunderstanding of the issues at hand. So, conducting thorough communication campaigns within the organization and ensuring that all

6 stakeholders are well-informed and educated about the problem and its implications will facilitate the need for change. Operational inefficiencies can also be an underlying cause. Therefore, conducting a process analysis to identify issues or areas where improvement can be made will streamline the processes, eliminate waste, and increase productivity. Since external factors, like market dynamics and regulatory changes can also influence the problem, continuously monitoring the conditions and developing contingency plans that adapt to the external changes is mandatory. Gap Identifying the gap between the problem’s current situation and the desired targeted outcome is another critical step in the change planning process. To effectively close these gaps, it is important to establish a clear process. This can be done by thoroughly defining the current situation, understanding, and documenting the current state of the problem. Gathering data, conducting assessments, and analyzing the key metrics or indicators related to the issue creates a detailed picture of what the problem looks like in its current form (Marr, 2012). It is also imperative to develop an action plan. Creating a comprehensive action plan that outlines the necessary steps to bridge the gap should include specific initiatives, responsibilities, timelines, tasks, and resources. Systematically following these steps will help move it from the current state to the desired state, building a well-structured process. Change Plan Create Urgency: In today’s evolving business landscape, staying competitive and adaptive is critical for the success of an organization. Creating urgency and convincing stakeholders within the

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7 organization that change is important, a comprehensive plan that includes a thoughtful strategy to obtain the support from employees with the organization needs to be outlined. To create a plan of urgency, you must first assess the current situation by conducting a comprehensive analysis for the organizations to identify any potential risks, market changes, and competitive threats. Presenting this data to stakeholders will highlight the urgency so they can take proactive action. Secondly, clear goals need to be set to establish specific, measurable, achievable, relevant, and time-bound (SMART), (Chi, 2023), objectives that speak to the challenges which were identified. Next, fostering open communication will create a transparent environment where stakeholders and employees feel comfortable sharing their ideas, concerns, and suggestions. This will empower them to voice their opinions about the urgency of the proposed changes. Finally, short-term wins should be implemented to jumpstart the change process. Quick and tangible successes will not only show the progress that is being made, but it will also reinforce the importance of acting urgently (Kotter & Rathgeber, 2005). Following this plan will create a sense of urgency within the organization. Convincing stakeholders and motivating employees will encourage them to work collectively towards reaching the desired outcomes. Depending on their specific needs and the nature of the changes being implemented, organizations may choose to adopt a combination of change management processes. One process can be found in Kotter’s 8-Step change model that was created by John Kotter, (Kotter, 1995). His model lays out eight sequential steps for successful change, which includes creating a sense of urgency, forming a powerful coalition, developing a vision and strategy, communicating the change vision, empowering employees, generating short-term wins, consolidating gains, and anchoring the change in corporate culture (Kotter & Rathgeber, 2005). The proposed changes

8 may be unique to the organization, therefore, implementing these changes must be specific to the organization for them to be successful. Change is not a one-size-fits-all approach, and adaptability is necessary to navigate the complexities of change effectively. To gain support from employees, a collaborative and inclusive strategy needs to be employed. Creating a transparent and open communication channel where employees can voice their concerns, opinions, and ideas freely will cultivate an environment for success. Moreover, actively listening to feedback and involving others in the decision-making process will make them feel empowered and valued. Fostering a sense of ownership in any proposed plan change and clearly communicating the vision and objective of the change will ensure an effectiveness that aligns with the organization’s mission, which will benefit both the company and their employees. Overall, this inclusive and engaging approach will create a supportive enthusiastic workforce, driving successful change implementation and fostering a culture of continuous improvement (Escobal, 2021). Build a Guiding Coalition: To successfully drive the change effort, a diverse team of individuals with influence, expertise, and commitment should be assembled. While Kotter’s (2005) recommendations is to have 50% leaders, and 50% managers with experience, I believe a combination of leaders, managers, and informal leaders can be more effective. With that said, my recommendations are as follows, 40% leaders which encompass CEO’s and top-level executives who lead the guiding coalition. Their support will provide the necessary authority and visibility for the change initiative. 40% are middle managers, which comprises those who have a clear understanding of the day-to-day operations and the challenges front-line

9 employees face. Their buy-in is important to execute the change effectively. Finally, 20% of informal employees have a strong influence on their peers and colleagues. These individuals may not hold formal leadership positions, but they can sway the opinions of others and promote buy- in for the change effort. The vision can be clearly communicated by sharing the vision for change with the guiding coalition members. Emphasizing the benefits of long-term impacts will ensure that everyone understands their roles. The coalition members should be involved in the decision-making process. Seeking their input and ideas will make them feel valued and invested in the change process. Also, fostering collaboration and trust will create an environment where coalition members can openly share their views and ideas. Not to mention, providing regular progress updates of the change effort will keep the guiding coalition informed throughout the process. Strategic Vision: The essential values needed for the change effort should be aligned with the organization’s long-term goals and culture. So, forming a strategic vision must consist of values that are essential for the success of organizational change. These values entail collaboration among stakeholders and employees, fostering a sense of teamwork, which encourages a collective effort and shared responsibility in achieving the change objective. The objective promotes open- communication, transparency, problem-solving, and cross-functional knowledge sharing. Innovation is also a vital key value. Embracing innovation allows an organization to adapt to changing market trends, customer needs, and technological innovations. Most successful change efforts begin when individuals or groups examine the company’s competitive situation, market position, and financial performance (Kotter, 1995). A culture of innovation encourages creativity

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10 and continuous improvement. Taking these steps can drive the change effort forward, leading to greater customer loyalty and satisfaction building a culture of responsibility (Waters, 2022). The vision for the organizational change effort should be clear, inspiring, and future-oriented. The desired outline must state the organization’s aims to be achieved through the change initiative. For example, the vision statement for this change effort could be: “To become an innovative, customer-centric leader in the industry, a collaborative and accountable culture should be fostered to deliver expectational values to customers.” The efficacy of this vision is based on its ability to provide employees and stakeholders with direction. It fosters a shared sense of purpose, motivating people to work together towards a common goal. The vision aligns with the identified values, emphasizing innovation, customer-centricity, group effort, and accountability, making it easier for people to see how their efforts contribute to the achievement of the organization. The intended targeted outcomes of the change effort should be specific, measurable, achievable, relevant, and time-bound (SMART), (Chi, 2023). Some potential outcomes for this change may include increasing customer satisfaction, developing innovative solutions, improving employee engagement, and targeting market share growth. Aiming to achieve a specific percentage will increase customer satisfaction score. Setting a target for the number of innovative solutions will demonstrate the organization’s commitment to embracing innovation. Not to mention, improving employee engagement and creating a target for market share growth will support the organization’s ability to meet the needs of customers. For the organizational change effort to be considered a success, the change effort should be measured by the extent to which it achieves its intended outcomes. By adhering to the identified values and vision, the organization can foster a culture that supports and sustains the change

11 effort, driving it towards a successful future. Ensuring these factors are in place is crucial. Recognizing that every organization is unique and the approach to change may vary based on the specific context and challenges faced. To meet the evolving needs of the organization and guarantee that the change effort remains on track, continuous monitoring, adjusting, and feedback is required. Communicate Change: For change to be effectively communicated within an organization, several key elements are necessary like, clarity, consistency, transparency, engagement and involvement, two-way communication, timing, and leadership support. Clear communication channels should be established to convey information efficiently to all levels of the organization. A well-crafted message must be created to highlight the benefits and reasons behind the change, which is to gain transparent buy-in from employees (Kouzes & Posner, 2017). Lastly, employees should be encouraged to engage by actively providing feedback and addressing concerns. Doing so will allow employees to be heard and feel valued during the change process. Effective communication encourages understanding while reducing and promoting a smoother transition for a successful change implementation. Processes such as these empower employees and provide them with the information required to adapt and align their efforts. This also allows them to embrace the change with confidence. To foster an effective feedback loop during the change effort implementation, having transparent two-way communication is encouraged. For this process to be successful the following actions are required:

12  Regular Meetings: Conducting regular meetings whether in-person or virtual is a way to foster stronger relationships. Doing so will facilitate decision-making, boost productivity, promote team unity and employee engagement (Futuramo.com).  Lead by Example: Leaders set the tone for employees by setting good examples throughout their everyday task (Leonard. 2019). They should actively listen and engage in feedback discussions. Supporting direct supervisors in their efforts to communicate with employees is imperative, especially when it comes to the change effort. Therefore, I would recommend utilizing the following steps for a successful transition.  First, supervisors should receive thorough training and development on how to be effective communicators during time of change. Which should consist of webinars and workshops that outline training material and key techniques on how to be an effective communicator (Sinek, 2014).  Secondly, developing clear and concise communication guidelines for supervisors will help them guide and support their teams amid the change process. These guidelines should highlight key messages and talking points regarding the recommended communication channels.  Lastly, offering one-on-one coaching and support to supervisors who require additional guidance. If they are experiencing challenges communicating the change, this will boost their confidence and effectiveness in the delivery process. Providing support and guidance will allow them to feel empowered and confident, ensuring that the delivery of the message is always consistent and coherent.

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13 When it comes to addressing employees’ concerns and anxieties being able to actively listen is vital. This would create an opportunity for employees to openly express their feelings without fear or judgement of retaliation. Showing empathy and having understanding towards employees’ emotions shows that you acknowledge and validate their feelings (Sinek, 2014). This will also help build trust and create a supportive environment of transparency. Moreover, employees would participate and become involved in the change process. Including them gives them a sense of control and ownership. Seeking their input in the decision-making process or allowing them to participate in problem-solving empowers them and reduces any feelings of uncertainty. Taking these steps promotes an open environment where employees feel valued, heard, and cared for during the change process. For the changes to be successful, various stakeholders from different roles must be involved. These key individual groups include leadership at the executive level and senior managers. Executive leaders are responsible to deliver clear direction and support, making their role critical in driving the change initiative, setting the vision, and securing necessary resources. Then you have middle management, who also play a vital role in translating the change vision into an actionable plan. This group is responsible for communicating the change to their teams and providing guidance that aligns with the organization’s objective. Finally, you have the employees, who serve as the front-line and are directly affected by the change, making them the most instrumental success of the change implementation. Removing Barriers: The fifth step of Kotter’s change model suggests that organizations must eliminate barriers to empower employees through implementing the changes successfully. According to the Alaska Airlines’ case study these steps were executed using unpredictable degrees of success (Avolio et

14 at., 2015). While attempts to include and empower employees to participate in discussions were made, seeking their feedback, and implementing their suggestions was limited. This action provoked feelings of frustration, disempowerment, and skepticism about the change process from employees. When it comes to forces, barriers, and hindrances that impact the success of implementing change initiative, the following steps should be considered:  Resistance to change is one of the primary barriers to any organizational change. This stems from the fear of the unknown and concerns of job security. Resistance can manifest in passive-aggressive behavior which will eventually result in lack of enthusiasm.  Inadequate resources can also be a major pain point for teams, as it can lead to delays, increased workload, and reduced productivity (Linkedin.com). Without adequate resources it can become challenging to implement new processes effectively. Therefore, identifying areas where resources are needed and conducting detailed assessments will help alleviate long-term issues.  The absence of strong leadership backing the change can undermine its success. If leaders are not visibly supportive and actively involved, it sends a message that change might not be a priority. Ultimately leadership is about relationships, credibility, passion, and conviction, overall, it is about what you do (Kouzes & Posner, 2017). Recognizing resistance is essential for effectively managing and ensuring the successful implementation of a change plan. Resistance can consist of many characteristics, ranging from overt to subtle behaviors. Below, outlines some ways to recognize resistance and strategies to use to mitigate its impact.  Observing behavioral changes, such as increased negativity, passive-aggressive remarks, reduced enthusiasm, and decreased engagement. This behavior usually indicates early

15 signs of resistance to change. While resistance is somewhat natural and inevitable, it is not insurmountable. To overcome it, you must understand the reasons behind the resistance and work to move past them (Olmstead, 2022).  Resistance can occasionally exhibit struggle and a decline in productivity. Which can also result in a negative quality of work as employees struggle with new processes and systems. Several strategies can be employed to eliminate or mitigate resistance. To start, fostering a culture of inclusion and transparency creates an environment where concerns are proactively addressed. Clearly communicating the reasons for change and the potential impact it has on employees will promptly alleviate any uncertainty. Secondly, involving employees in the change process from the beginning, seeking their input, and including them in the decision-making will make them feel like valued contributors to the change effort. Recognizing resistance early and employing these strategies will permit organizations to create an atmosphere of conducive change to adoption while minimizing the negative impact of resistance. To empower employees to drive the change effort, an atmosphere in which their contributions are valued and acknowledged must be established. Having an open-door policy for employees and allowing them to share their experiences, thoughts, and concerns regarding the change fosters a sense of involvement and shows that their perspectives are considered. Providing autonomy and decision-making power within defined boundaries permits employees to take responsibility for their role during the change process. Short-Term Wins:

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16 Finally , highlighting short-term wins shows early successes and will have a positive impact on the change. To get people to do things they have never done before, you must make progress incrementally, breaking the long journey down into milestones. Making step-by-step moves creates a sense of forward momentum (Kouzes & Posner, 2017). Celebrating short-term wins promotes motivation, builds drive, and improves productivity. To reward these wins a combination of intrinsic and extrinsic motivators should be employed.  Intrinsic rewards, such as recognition from leadership and peers, can heighten employees’ sense of accomplishments and pride in their contributions.  Extrinsic rewards, such as team celebrations, professional development, and small bonuses, can further incentivize employees and reinforce their commitment to the change process. Sustain Acceleration: Sustaining momentum in a change effort is vital for ensuring that the desired outcomes are not only achieved but also supported over the long-term. Using the following strategies will ensure their continued success in building momentum. It is important to maintain transparent and consistent communication throughout and beyond the change process. Sharing milestones, experiences, and success stories will keep employees and stakeholders informed about the ongoing benefits and the organization’s commitment to sustaining improvement. Establishing a robust system for monitoring key performance indicators and evaluating the impact of the change will regularly measure the outcomes and adjust as needed.

17 Contingency plans should also be created to address potential setbacks or challenges that could have an impact on the sustainability change. The organization must be prepared to adapt to any change and use data to track their progress. Institute Change: To institute a change and make it an integral part of the organizational culture, several key actions and infrastructure mechanisms need to be in place. Each action and infrastructure mechanism plays a vital role in safeguarding the successful integration of the change.  Communication Strategy: Developing a comprehensive communication strategy that conveys consistent transparency, rationale, progress, and benefits of the change to all employees. Effective communication fosters understanding and buy-in.  Employee Engagement: Actively involving employees in the change process will encourage their participation. This will empower them to share their ideas and experiences, causing them to take ownership of the change. Engaging employees will be more likely to support a new culture.  Measurement and Metrics: Defining key performance indicators (KPIs) that measure the adoption and impact of the change can regularly assess progress (Marr, 2012). Not to mention, using data to make inform decisions and adjustments as needed. Infrastructure Mechanism for Sustaining Change:  Policy and Governance: Foster and systemize policies, procedures, and governance structures that support the desired culture. Setting clear guidelines will ensure that the change is embedded in day-to-day operations.

18  Performance Management: Integrate the desired culture behaviors and values into performance evaluations, goal-setting processes, and career development plans. Aligning individual goals with the new culture reinforces its importance.  Crisis Preparedness: Develop crisis management plans and resilience strategies to address potential setbacks or disruptions that could threaten cultural change. Preparedness confirms that change can withstand challenges. Conclusion Overall, the critical elements for change effort analysis are imperative in addressing specific actions taken to empower employees throughout broad-bast actions. Detailing initiatives like cross-functional team collaboration, decision-making, adequate communication, leadership support, and short-term wins will create a culture of trust and workplace productivity. Each of these actions and infrastructure mechanisms are crucial for instituting and sustaining change within the organization’s culture. Together, they will create a supportive environment where the desired cultural shift can take root and thrive over the long term, becoming an integral part of the organization’s genetic material.

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19 References Avolio, B. J., Patterson, C., and Baker, B., (2015) Alaska Airlines: Navigating Change Harvard Business Publishing. Retrieved from: https://www.services.hbsp.harvard.edu/lti/links/content- Chi, C. (2023). 5 Dos and Don’ts When Making a SMART Goal. Retrieved from: https://www.blog.hubspot.com/marketing/smart-goal-examples Escobal, L. (2021). How to Support Your Employees Effectively Retrieved from: https://www .forbes.com/sites/forbesbusinesscouncil/2021/02/17/how-to-support-your- employees-effectively Futuramo Blog. The Nine Benefits of Holding Regular Team Meetings. Retrieved from: https://www.futuramo.com/blog/the-nine-benefits-of-holding-regular-team-meetings Kotter, J. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review Retrieved from: https://www.hbr.org/1995/05/leading-change-why-transformation-efforts-fail Kotter, J. & Rathgeber, H. (2005). Our Iceberg Is Melting 10 th Anniversary Ed. St. Martin’s Press Kouzes, J. M. & Posner, B. Z. (2017). The Leadership Challenge Sixth Ed. Leonard, K. (2019). The Importance of Leading by Example Retrieved from: Olmstead, L. (2022). Change Management. Resistance to Change: 7 Causes & How to Overcome Them. Retrieved from: https://www.whatfix.com/blog/causes-of-resistance- to-change. Marr, B. (2012). Key Performance Indicators The 75 Measures Every Manager Needs to Know

20 Sinek, S. (2014). Leaders Eat Last-Why Some Teams Pull Together and Others Don’t New York Times Bestseller Teambuild, (2023). How to Solve “Inadequate Resources” in a Team? Let’s Build Great Teams Retrieved from: https://www.linkedin.com/pulse/how-to-solve-inadequate-resources-team . Waters, S. PhD. (2022). How to Create a Culture of Accountability in the Workplace. Retrieved from: https://www/betterup.com/blog/how-to-create-a-culture-of-accountability-in-the- workplace

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