Change Management
Almost all organisms resist change. Yet, without it, growth is quite often impossible. As organizations become more complex, change management becomes increasingly difficult. That is why a scientific change management process is required when dealing with today’s major corporate structures.
Before: Faltering Industry Giant Needs Change Management Program to Move from Entrepreneurial Chaos to Systemic Discipline
“The early nineties were a great time to work for the electronics chain Best Buy. Entrepreneurial spirit and a ‘do whatever it takes’ attitude had produced more than 10 years of explosive growth. But the hypergrowth took us to the brink of disaster. In February 1997, the stock price had fallen to an all-time low of $8.50 a share and profitability nearly to zero. Store operations varied widely and the customer experience was often unsatisfactory. A new Standard Operating Platform (SOP) was introduced as the change management solution but it was fundamentally contrary to the existing ‘ready, fire, aim’ culture and our employees quickly defeated it.
“We brought in a team of consultants from RHR International to lead a change management initiative. We had heard that they were experts in organizational change and team effectiveness.”
After: Change Management Program Drives Profitability and 1,000 Percent Stock Price Increase
“The first step in our change management effort was to form Change Implementation Teams (CITs). Nine high-level managers were selected for full-time, one-year commitments. We conducted complete executive assessments, drafted Leadership Development Plans™ and provided regular coaching to each team member.
“We applied a framework known as “Head, Heart, Hands” to provoke organizational change in Best Buy’s complex environment. It guided the CITs through the rational, emotional and behavioral elements of change implementation and gave the teams a common vocabulary.
“The change management program was successfully implemented and produced consistently high-quality store operations as judged by improved sales, profits, shrink, turnover, employee survey results and customer experience ratings. CITs have become important entities and proven vehicles for developing high-potential managers and leaders. Team effectiveness, collaboration and learning have become enduring values of the culture.”
Did you know?
In the Foreword of the book, “Big Change at Best Buy: Working Through Hyper Growth to Sustained Excellence”, Brad Anderson, the CEO of Best Buy, gives credit to the RHR consultant team for their contribution to the company’s transformation.
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