Introduction
Acme Corporation is depicted in the scenario as having considerable issues, such as increased staff turnover and lower profitability. The company’s leadership is unaware of the underlying source of these issues and has a clear plan for dealing with them. The problem has been aggravated further by recent changes in the business’s leadership structure, in which the CEO has replaced vital sales roles with personnel from another organization. This move has discouraged staff, stretched thin, and under more significant pressure to reach monthly objectives. The table illustrates that the company’s sales performance has progressively dropped over the last six months. This research will discover an appropriate solution to the firm’s problems and present a step-by-step process for dealing with the issue.
Organizational Change Model
Examining the type and scope of the change, its urgency and timetable, and the company’s readiness for change are crucial for determining the best organizational change model to adopt. Lewin’s Three-Step approach is the ideal organizational transformation approach for this situation. The focus in Lewin’s paradigm on unfreezing the current state, effecting the change, and refreezing the new state is particularly appropriate (Hartzell, 2014). The unfreezing process is critical in this scenario since Acme Corporation is experiencing challenges such as increasing turnover and reduced profitability. According to Cummings et al. (2014), Lewin’s paradigm is most useful when the present state must be unfrozen and the need for change is developed.
Furthermore, the shifting stage of Lewin’s model correlates well with the demands of the case. Acme Corporation may address the identified challenges and make the required adjustments by developing a clear strategy, assembling a cross-functional team, and implementing leadership development programs (Cummings et al., 2014). Furthermore, the refreezing stage in Lewin’s approach ensures that the changes are reinforced and stabilized inside the firm. As such, an organization may integrate new procedures and behaviors into the organization’s culture by assessing progress, providing training and help, and celebrating milestones (Cummings et al., 2014). Therefore, the three steps of the Lewin Model offer a perfect framework for solving the challenge faced by Acne Corporation.
Solution and Action Plan using Lewin’s Three-Step Model
Unfreezing
The first step in addressing the difficulties at Acme Corporation is to undertake a complete review of the organization’s present situation. This investigation should uncover the root causes of higher turnover and lower profitability. The company may build targeted remedies by first identifying the underlying challenges.
Furthermore, as Cameron et al. (2009) argue, involving top managers in open and honest dialogues is critical to raising awareness about the need for change and resolving the identified challenges. As a result, talks at this level should highlight the possible costs of delay and the advantages of successful change implementation. Furthermore, giving information and statistics that support the need for change can aid in developing a compelling case for action.
Changing
The strategy and vision of the organization will be defined in the next phase. This comprises sketching the desired future state and creating specific goals and objectives. The strategy should address turnover and profitability challenges while aligning with the firm’s values and long-term goals (Hartzell, 2014). A cross-functional team comprising senior managers and key workers must be developed to ensure effective implementation (Cameron et al., 2009). This group can work together to develop specific action plans to solve the issues raised. The organization may tap into numerous perspectives and information by involving diverse stakeholders, increasing the likelihood of practical solutions.
Adopting leadership development programs is critical to strengthening the new leadership team’s leadership style and abilities. The emphasis of these programs should be on transformational leadership and workforce engagement (Hartzell, 2014). By improving leadership effectiveness, the company may create a healthy work atmosphere and motivate employees to do their best. Employee stress should be lessened by altering monthly goals and providing more resources or support.
Refreezing
It is vital to monitor and analyze the progress of the applied alterations at this level of the model throughout the change process. According to Santos et al. (2019), regular communication of results to the organization will assist in maintaining transparency and keep employees informed about the impact of the changes. This communication also reinforces the need for continued commitment to the change effort.
The organization should conduct training and support its managers and employees to strengthen and sustain the new behaviors and practices. Such programs can involve workshops, coaching, or mentoring programs focusing on developing the necessary skills and competencies. Lastly, celebrating milestones and successes achieved throughout the change process helps reinforce positive outcomes and keeps employees motivated and engaged.
Expected Sales and Profit Forecast
The table below provides the desired sales and profit forecast from July to December.
Discussion on the Proposed Change Model and Monthly Table
The proposed change model, Lewin’s Three-Step Model, aligns with the completed monthly table. In the unfreezing stage, analysis and open discussions create awareness of the need for change, reflected in the projected sales staff and sales recovery. The changing stage demonstrates the implementation of actions like strategy development and leadership emphasis, leading to increased sales and profitability. Adjustments to goals and support alleviate pressure. The refreezing stage ensures sustainability through monitoring, training, and celebrating milestones.
The change model and table exemplify a systematic approach to address challenges, achieve stability, and foster growth. Expected sales and profit figures visually depict the change’s potential positive impact. The monthly table showcases the effects of the proposed change model on sales and profitability.
For instance, with an increase in sales staff to 21 in July, a sales projection of $352,800 is expected, resulting in a total profit of $112,896. This demonstrates the positive influence of implementing the planned actions to address the challenges faced by Acme Corporation. As the organization progresses through the change process, the forecasted figures indicate a gradual recovery and growth in sales and profit, reflecting the effectiveness of the chosen change model.
Conclusion
In conclusion, Acme Corporation’s challenges of increased turnover and decreased profitability require a comprehensive change effort. Lewin’s Three-Step Model provides a suitable framework for addressing these issues. By unfreezing the organization, implementing the necessary changes, and refreezing the new practices, the organization can overcome the current obstacles and achieve sustainable growth. Acme Corporation can build a stronger foundation for success through the proposed solution and action plan to ensure positive organizational change.
References
Cameron, E., & Green, M. (2009). Chapter 3: Organizational change. In Making sense of change management: A complete guide to the models, tools & techniques of organizational change (2nd ed.). Kogan Page.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage Learning.
Hartzell, S. (2014). Lewin, stage model of change unfreezing changing refreezing animatedpart5 [Video]. YouTube. Web.
Kotter, J. P. (2007). Leading change: Why transformation efforts fail. Harvard Business Review, 85(1), 96-103. Web.
Santos, E., Queiroz, M., Borini, F. M., Carvalho, D., & Dutra, J. S. (2023). The journey of business transformation: Unfreeze, change and refreeze–A multiple case study. Journal of Organizational Change Management, 36(1), 47-63. Web.