Implementing Change Strategies For Sustainable Business: A Case Study Of IBM

Factors

At present, implementing effective change strategies has become crucial for attaining sustainability in the dynamic business environment (Jisc 2017). This is because the success or failure of the organization is hugely dependent on the effective management of change. Therefore, when positive change is applied correctly, it assists the organizations in lowering the waste, thereby reducing the overall costs associated with the organizational operations and functions (Drucker 1994). In addition to this, the application of effective change management strategies is also helpful in increasing the overall productivity, thereby decreasing risks (associated) and enhance the overall performance (in terms of profitability) of an organization as well.

Any change within the organization disturbs the entire equilibrium possessing a significant impact on how an organization operates (Ackerman 1997). The implication of new equilibrium between different elements of the organization such as arrangement, technology, structure, people, and job design is hugely dependent on the extent of change (Cox, Pinfield and Rutter 2019). IBM is one of the traditional technology organizations that has currently developed a thoughtful as well as a comprehensive approach towards organizational citizenship that allows the organization to align with the organizational values, thereby maximizing the impact of the organization as a global company (McGee, Thomas and Pruett 2005). The organization focuses on implementing required change strategies that could help in identifying specific societal issues, including the community economic development, public health, educational skills, culture, and language.

Bargaining power of buyers: medium force

The product and service differentiation of IBM is better than other organziations and therefore, customers finds it difficult while switching to other players making this force a moderate force for IBM.

Bargaining power of suppliers: medium force

The suppliers of IBM do not offer a credible threat for forward integration into the industry where IBM operates making this force weaker or sometimes moderate for IBM in the long run.

Threats of new entrants: medium force

The economies of scale id relatively difficult for a new entrant to attain within the industry in which IBM operates. This makes it easier for IBM to develop large capacities and have a cost advantage making this force a moderate for IBM.

Threat of substitutes: medium force

There are very less alternatives available to the customers in which IBM operates. Besides, the organization is capable of effectively differentiating its business than other players, making this force a medium force for IBM.

Competitive rivalry: strong force

The competition is increasingly dynamic and significant in nature. Therefore, it is imperative for IBM to formulate effective strategies that are capable of addressing the new trends among the customers and the business environment.

In the same way, according to Kurt Lewin’s force field analysis, there are two types of forces that make any organizations operate effectively. In the case of IBM, it is observed that the restraining force of the change process is employee resistance (as the changes within the organization decrease the overall productivity of the organization). On the contrary, the restraining forces for the organization are the effective reward management strategy, performance per pay remuneration strategy, and execution of effective stress management strategies of the organizations are helpful in driving the change successfully.

Bargaining power of buyers: medium force

Therefore, it could be said that for IBM, The major drivers of change were the dynamic business environment, leaders and employee behaviour and attitude towards the proposed change, and the mindset of the organizational members (Juneau 2008). Therese drivers acted as critical factors for the organizational success and change. They assisted IBM in addressing as well as meeting the needs of the customers and the changing business environment (Carron 2010). Hence, when an organization identifies a specific change driver, it is capable of describing the same more effectively to the organizational members and employees, thereby clarifying the rationale (behind the organizational change) (Carnall 2012). This would also help the organization in building inspiration for making the sought change happen for the organization.

IBM understands that organizational change could be stressful, and employees might avoid it due to a lack of confidence and frustration. Hence, the organization makes sure that all the aspects of employees regarding the change are also addressed to lower the negative impact of change on the overall productivity of the teams and departments (Garvin 1998). Thus, IBM aims at rewarding and appreciating the work of the employees frequently and make the leaders, as well as managers, prepare about the daily problems encountered by the organization through appropriate training.

The primary objective of stakeholders is to assist organizations in accomplishing the goals and strategic objectives by contributing their perspective and experience to a project (in which the organization is currently involved). In addition to this, key stakeholders are also responsible for providing necessary resources and materials to the organization for effective business operations (Adams 1987). The stakeholders of IBM play a significant role in taking action and management the business decisions for ensuring organizational success. In addition to this, the key stakeholders are also responsible for making huge investments in the market, thereby making the conditions favourable for the organization.

IBM is also known for pursuing the highest standards of corporate responsibility in order to assist and empower the organizational members and employees, clients and connect to the communities in which the organizations operate. For over 100 years, the organization (IBM) has been capable of delivering differentiated value to the stakeholders, demonstrating the sustainability in different business practices. In addition to this, IBM is also capable of transforming the markets and industries through effective changes. The major stakeholders associated with the organization include shareholders, suppliers, employees, public officials, community organizations, and non governmental organizations (Argyris 1990). IBM aims at exceeding the interests of these keys stakeholders and considers it as the part of their corporate culture that is integral to the organizational business strategy and success.

For IBM, every stakeholder is equally important, and the organization hugely befits from these stakeholders. In addition to this, IBM makes several efforts in order to stay true to the organizational values (along with internal and external business activities). The senior management of IBM is responsible for the economic, societal, and environmental performance and compliance with regulations, laws, and organizational policies responsible for governing the practices and operations of the organization all over the world.  

Bargaining power of suppliers: medium force

In order to plan an effective change within the organization, it is essential for the organizational members and leaders to anticipate and evaluate the actual need for change within the organization (Davenport and Prusak 2000). This would help in facilitating an effective change management strategy and respond to the current crisis of the organization efficiently. The current changes in the business environment and the sudden outbreak of the COVIS 19 virus have caused significant losses (in terms of profits) to IBM. Hence, it had become imperative for IBM to implement a change in order to change the existing condition of the organization. However, the employees were not motivated towards the change as it might result in huge termination of employees (Jakhar et al. 2019). As a consequence, it was crucial for IBM to make the employees understand about the ongoing change process and inform them about the essentiality of change for the organization during these unprecedented times (due to the sudden outbreak of the COVID 19 virus). For this, IBM has taken an autocratic approach to execute the required changes taking the senior management into consideration.   

The senior management of IBM plays a critical role in managing resistance by communicating the organizational reason for change directly to the affected groups and individuals. In addition to this, the senior managers of IBM also managers resistance by working with teams and employees who directly reports to the senior managers. Senior management is specifically important for managing resistance effectively. This is because resistance managers of IBM recognize resistance, address the root cause of the issues from organizational as well as personal perspectives, and take proper action based on the current requirements. The change agents and change practitioners of IBM prepare, equip, and assist line managers by facilitating open communication channels. This also helps in connecting with the interests of the employees and makes the decision making successful.  

Resistance to change within an organization is a natural phenomenon (Cox, Pinfield and Rutter 2019). However, it impacts the cost and duration of business operation to a great extent. Hence, it is essential for organizations such as IBM to assist the employees with proper change processes and manage the resistance towards organizational change. This would help in lowering the impact on the employees and opens new doors for improvement as well. There are several strategies that could be implemented by IBM in order to manage the change resistances effectively. Resistance to change in IBM could be avoided if effective change management is applied at the beginning of the change management process (Kang and Kim 2017). Effective change management strategies would mitigate the resistances in the change process and act as an activating and engaging employee within the change. In addition to this, leveraging as well as capturing the positive and passionate emotional surrounding a change could prevent resistance to change. This could be done by using a formal and structured change management.  

In order to manage change effectively and appropriately, it is essential for the senior management to bring the proposed change to the associated teams. For this, it is essential for organizations to document the task required to get where the organization wants to be or how the outlined as well as changing responsibilities for a fully developed timeline to address potential concerns of change. In addition to this, to manage change effectively, it is crucial for senior management to be honest with the employees and the teams and present it in an optimistic manner to acknowledge the potential drawbacks as well as challenges during the change process. Making change exciting and compelling is another manner of making ideal and effective changes.  Employees are capable of understanding the logic behind the change when organizations prioritize clear, consistent, and purposeful communication. Therefore, it is important for the senior management to use appropriate communication strategies to develop a deeper and clear understanding of the necessary change.

Threats of new entrants: medium force

Stakeholders are the individuals or groups playing an influential role in the success of the organization’s change plans. For a successful change, the organization requires to understand who the key stakeholders of the organization are and how they are able to measure the success rate of the change plan. However, when the change incorporates shifts in processes and technologies, offers appropriate training to the employee and assist them in carrying out things effectively, the management of the change process within the organization becomes effective and easier. This, in turn, prevents a hasty shift in direction and allows adjustments to the change easily.

Leading and managing change successfully is one of the most complex issues that contemporary organizations (such as IBM) encounter. In the rapidly changing business world, the strategic imperative to organizational change is usually clear. However, organizations might not succeed in the long run without doing things and implementing effective change strategies differently (Ratnapalan 2019).  At the base of any organization, change leadership plays a significant role in working together to establish a common understanding of the entire change process in order to implement the required strategy and make the change happen within the organization. Change management processes majority of the time, fail due to inappropriate change initiatives and improper knowledge management irrespective of placing the resources accurately (Bryan 2018). Effective leadership is crucial to make successful changes. However, it is imperative for the leaders to understand the difference between unsuccessful and successful change efforts, thereby appropriately reflecting on the required change efforts to lead the needed change within the organization.

IBM has understood this well, and the organization aims at characterizing change capable leadership in order to define and demonstrate the imperative leadership competencies required for leading the change in an effusive and better way. This also enables IBM in preventing change failures primarily due to ineffective change strategies and efforts. In the case of IBM, the entire change process workflow makes sure that each and every change within the organization is completed efficiently (Bel, Smirnov and Wait 2018). In addition to this, IBM also has a flexible user interface that allows the organization in creating, assigning, monitoring, notifying as well as reporting the status of different change assessments, execution of tasks, approvals, and others. This also allows IBM in leveraging its best change initiatives and practices with defined and determining roles in the organization.

In order to manage the change process effectively in terms of knowledge management, IBM defines the change appropriately for specific customers. Further, the change is defined as one that is applicable to address a particular customer location. Hence, based on the security settings, IBM could effectively segment the information of the customers that is accessible to employees and associated (key) customers of IBM. Other than this, in order to manage the knowledge within the organization appropriately, IBM also uses a workflow that is capable of managing all major steps within the change in an efficient and flexible way. As a consequence, this workflow of the organization is also capable of effectively automating the standard changes that do not need any scheduling, evaluation, or accessibility. IBM also concentrates on expressing changes to manage potential changes that could be beneficial for the organization in the long run.

Threat of substitutes: medium force

IBM is one of the most successful technology organizations that aim at customizing change implementation tasks responding to changing requirements and needs of the business environment. The organization is also capable of organizing as well as managing proper change execution tasks using job plans that follow the organization’s best policies, practices, and initiatives. Hence these change management processes of IBM assist the organization in preventing or disrupting key business functions and operations (Piña, Lowell and Harris 2018). Combining change management with other processes leaders to effectively manage and handle a comprehensive range of business operations using a single control point is another advantage that IBM possesses. All these change management aspects and considerations of IBM enable the organization to attain an incremental value by embracing a process at its own pace along with other latest competencies and capabilities.

Organizational knowledge is one of the most crucial resources that help in maintaining effectiveness within an organization. However, during a change process, loss of knowledge is common. Hence, it is imperative for organizations to address the issues of losing knowledge during the change process through effective management (Kane 2017). This is only possible after addressing the expectations and other technologies in the business environment more frequently. Therefore, change management acts as a complementary activity to the management of knowledge within an organization, acting as a joint development of different managerial disciplines providing great effectiveness to various business operations. In general, knowledge management could be described as the process of creating, accumulating, organizing as well as using the knowledge that assists organizations in attaining the overall strategic objectives thereby enhance the overall performance of the organization (Al-Busaidi and Olfman 2017). This is because knowledge management also comprises of different change and organizational strategies, work flow and cultural values that assist in maximizing the business processes to deliver efficient services to the customers.

Thus, in order to effectively manage knowledge and prevent loss of information during the change process, IBM aims at executing numerous knowledge management strategies that assist the organization in preserving the key information and knowledge of the organization and utilize it later for delivering efficient organizational performances. IBM also understands that knowledge management is not only the application of technology. However, it is the cultural change that the organization goes through. Therefore, IBM promotes knowledge as a power initiative and behaviour throughout the organization to lower the negative effect of managing cultural change within the organization. Other than this, IBM also focused on defining a high level process as a foundation for the organization and followed a detailed procedure throughout. This step assists the organization in identifying, categorizing, and disseminating knowledge throughout the organization and benefit from them.

In addition to all these, IBM also aims at executing a knowledge management program while implementing a change process (Shujahat et al. 2017). This implementation acts as a roadmap for the organization and enables the organization in launching proper strategies to address the existing knowledge gaps within the organization as a whole. Besides, the ability of IBM to measure and evaluate the existing knowledge within the organization also helps in enhancing the overall baseline and the organizational performance (Pavlekovskaya eta l. 2018). All these strategies help IBM in preventing the loss of vital information specifically during change implementation and benefit the organization in several ways.  

Competitive rivalry: strong force

In order to implement any change strategy, it is essential for the organizations to diagnose and plan proper changes (Azhoni and Goyal 2018). Identifying and understanding the cultural system of the working environment in which a change is to take place is the initial step of any change management process (Chou 2018). Hence, identifying the cultural system assists in determining the leveraging factors and in navigating the obstacles during the implementation of the change process. Change management models and theories vary from nation to nation and from one type of structure to another (Lauricella et al. 2017). The key difference is due to the difference in languages and cultures. There are several models that help organizations in diagnosing and planning effective change management strategies (Dee and Leisyte 2017). The two most efficient change models include:

1. Nadler and Tushman’s congruence model for organization analysis
2. Mckinsey 7s framework

This model is based on various assumptions that are common to contemporary organizational diagnostic models. Some of the most critical assumptions considered for this model include organizations as dynamic entities and open social systems within a large environment. Interaction occurs between individual, system, and a group levels on the basis of an organizational behavior (Sabir 2018). This model described the extent to with demands, goals, needs, structure, and objectives of one component is consistent with the same of the other component (Paudel and Sharma 2020). Therefore, Nadler and Tushman’s congruence model is primarily based on the principle that a team or an organization could succeed only if it works. However, it is dependent n factors such as organizational structure, people, and culture. Therefore, it is essential that all these factors fit together in order to deliver effective performances in change processes.

Advantages:

Nadler and Tushman’s congruence model provides a rigorous and effective framework for diagnosing the complicated organizational issues. This model does not possess limitations on management. However, the model acts as a thinking tool for numerous organizational issues. The model does not mention a specific approach for determining the organizational processes or structures as long as there is a significant fit between different components of the organization (Filipovi? et al. 2020). This model assists organizations in thinking about the effect of the change management on interactions and performances within the organization.

Disadvantages:

Application of this model to complicated issues of organization could be an expensive and lengthy process primarily for international organizations with numerous business units such as IBM. The model lacks a structured template, and this could result in limiting the abilities of managers to quickly come up with proven and efficient solutions to the encountered organizational issues. Moreover, the application of this model might not perfectly fit due to the improper implication of organizational issues. Hence, it is essential for the organizational members and employees to adapt to the changes continuously through effective and active training as well as mentoring programs in order to speed up the new responsibilities within the organization.

This is one of the most popular strategic planning tools used by organizations to analyze and evaluate the internal elements affecting the success of an organization. The model is divided into two different categories (hard and soft elements), and these elements are useful in executing new change strategies within the organization, diagnosing imperative parts of the organization, assist the organization in aligning practices and processes during different change strategies and support management thinking during the implementation of strategies and change management programs (Demir and Kocaoglu 2019). The seven elements of this change model include strategy, systems, structure, shared values, staff, skills and style. All these elements together help in maintaining the competitive advantage of the organization and assist the organization in responding to the overall changes in the external environment of the organization that primarily includes competitors and customers (Portal 1985).

Kurt Lewin’s force field analysis

Advantages:

Before implementing any strategic and change management strategies, this model considers the seven primary elements of strategic fit, which are more efficient than conventional change models (which aim only on strategies and structure of the organization). The change model is also helpful in aligning the overall processes, people, systems and values of the organization as a whole (Cox, Pinfield and Rutter 2019). As this change model analyzes every element within the organization, the relationship between each element is described in detail. Hence, there is no chance of missing important details caused by implementing of change strategies within the organization.

Disadvantages

This model is capable of presenting every detail within the organization. Therefore, it requires a thorough research and benchmarking, making the process more time consuming for the organizations. The model primarily concentrates on internal elements. Therefore, less attention on the external environment might impact the execution of change strategies within the organization smoothly (Cox, Pinfield and Rutter 2019). The change model requires the assistance of senior management for the implementation of effective change strategies. This might not be feasible and possible every time based on the availability of the senior managers within the organization.

Both the models aim at implementing effective change management strategies, thereby promoting organizational success. Both the change model is capable of identifying the possible or potential areas of resistance within the organization and accordingly design and implement change management strategies in order to lower or eradicate the resistance before the change process begins (Cox, Pinfield and Rutter 2019).  Besides, both the models provide an in depth approach to organizational change and acts as a guide for making different changes, navigating the process of transformation and make sure that changes are accepted by the employees and other members of the organization and placed into practice as well.  

References 

Ackerman. D., 1997. Development, Transition or transformation: The question of change in organisations. In: Van Eynde, D. et al., eds. Organisation Development Classics, p.45. San Francisco: Jossey Bass.

Adams, J. L., 1987. Conceptual blockbusting. Harmondsworth: Penguin.

Al-Busaidi, K.A. and Olfman, L., 2017. Knowledge sharing through inter-organizational knowledge sharing systems. VINE Journal of Information and Knowledge Management Systems.

Argyris, C., 1990. Overcoming organizational defences. Needham Hts, MA: Allyn and Bacon.

Azhoni, A. and Goyal, M.K., 2018. Diagnosing climate change impacts and identifying adaptation strategies by involving key stakeholder organisations and farmers in Sikkim, India: Challenges and opportunities. Science of the Total Environment, 626, pp.468-477.

Bel, R., Smirnov, V. and Wait, A., 2018. Managing change: Communication, managerial style and change in organizations. Economic Modelling, 69, pp.1-12.

Bryan, J., 2018. Successfully managing change in the workplace. Corporate Real Estate Journal, 8(1), pp.53-64.

Carnall, C. A., 2012. Managing Change in Organisations. 5th edition. London: Pearson Education Ltd.

Carron, G., 2010. Strategic Planning: Techniques and methods. Paris: International Institute for Educational Planning (UNESCO).

Chou, P., 2018. Workplace social support and attitude toward enterprise resource planning system: a perspective of organizational change. International Journal of Information Systems and Social Change (IJISSC), 9(1), pp.58-76.

Cox, A.M., Pinfield, S. and Rutter, S., 2019. Extending McKinsey’s 7S model to understand strategic alignment in academic libraries. Library Management.

Davenport, T. H., and Prusak, L., 2000. Working knowledge: What they know. Boston: Harvard Business School Press.

Dee, J. and Leisyte, L., 2017. Knowledge sharing and organizational change in higher education. The Learning Organization.

Demir, E. and Kocaoglu, B., 2019. THE USE OF MCKINSEY’S 7S FRAMEWORK AS A STRATEGIC PLANNING AND ECONOMIC ASSESTMENT TOOL IN THE PROCESS OF DIGITAL TRANSFORMATION. PressAcademia Procedia, 9(1), pp.114-119.

Drucker, P. F., 1994. The Age of Social Transformation. The Atlantic Monthly. 274(5), 53-80.

Drucker, P. F., 2012. Managing in Turbulent Times. New York: Routledge.

Filipovi?, S., Vasi?, M., Tica, S., Veg, E. and Šinikovi?, G., 2020. Using Modified Nadler-Tushman Model in GAP Analysis of Educational Process of EFMNS Certified Engineer. Tehni?ki vjesnik, 27(4), pp.1213-1220.

Garvin, D. A., 1998, The processes of organisation and management. Sloan Management Review. Summer, 35-37.

Jakhar, S.K., Mangla, S.K., Luthra, S. and Kusi-Sarpong, S., 2019. When stakeholder pressure drives the circular economy: measuring the mediating role of innovation capabilities. Management Decision.

Jisc., 2017. Change management [online]. Available from: https://www.jiscinfonet.ac.uk/infokits/change-management/types-change/  [Accessed 20 Dec. 2017].

Juneau, A. K. 2008. Environmental Scan and SWOT Analysis. Division of Personnel and Labor Relations. 1-15.

Kane, G.C., 2017. The evolutionary implications of social media for organizational knowledge management. Information and organization, 27(1), pp.37-46.

Kang, D. and Kim, S., 2017. Conceptual model development of sustainability practices: The case of port operations for collaboration and governance. Sustainability, 9(12), p.2333.

Lauricella, T.K., Ford, J.K., Riley, S.J., Powers, C.L. and Lederle, P., 2017. Employee perceptions regarding an organizational change initiative in a state wildlife agency. Human Dimensions of Wildlife, 22(5), pp.422-437.

McGee, J., Thomas, H., Pruett, M., 2005. Strategic Groups and the Analysis of Market Structure and Industry Dynamics. British Journal of Management. 6(4), 257-270.

Paudel, S. and Sharma, H.S., 2020. Success Models of Information Technology Outsourcing. Nepal Journal of Multidisciplinary Research, 3(2), pp.37-52.

Pavlekovskaya, I., Urintsov, A., Staroverova, O. and Nefedov, Y., 2018, September. The impact of digital transformation of the Russian economy on knowledge management processes. In Proceedings of the 19th European Conference on Knowledge Management–ECKM (Vol. 2, pp. 677-684).

Piña, A.A., Lowell, V.L. and Harris, B.R., 2018. Leading and Managing e-Learning. Bloomington, IN: Association for Educational Communications and Technology/Springer.

Portal, M., 1985. Competitive Advantage. New York: Free Press.

Ratnapalan, S., 2019. 37 Leading and managing change in healthcare organizations. BMJ Leader, 3(Suppl 1), pp.A14-A14.

Sabir, A., 2018. The congruence management-A diagnostic tool to identify problem areas in a company. Journal of Political Science and International Relations, 1(2), pp.34-38.

Shujahat, M., Hussain, S., Javed, S., Malik, M.I., Thurasamy, R. and Ali, J., 2017. Strategic management model with lens of knowledge management and competitive intelligence: A review approach. VINE Journal of Information and Knowledge Management Systems.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order