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Selfridges & Co is the most posh and one of the oldest stores in the world in London Oxford Circus. It has been through rise and dramatic fall, but we find an enthralling description of their capability to manage change in case studies done on the organization. This response to change is thus the organizations most powerful tool against its competitors. The pace of the change and invention outpaces the ability to keep up with the old strategies, efficient at a certain point of time.
To demonstrate my assignment in the view of the assessment criteria efficiently, I have chosen prestigious organisation Selfridges & Co. In this assignment I will bring about change in two areas, justifying my decision with the forces driving the change, the stipulation of the mentioned change in Selfridges & Co development, introducing systems for involving stakeholders and finally developing appropriate models for implementation process.
Explore the Background to Change Affecting the Current Organization:
Background to Change in today's Economy:
"In the new economy, information, education, and motivation are everything."
Three Forces Driving the New Economy
1. Knowledge - Intellect is the asset of a planning; people make decisions and take actions by using a set of understandings.
2. Change - Reduces predictability - unremitting brisk and complex.
3. Globalization - Economies, interdependency of businesses and global hyper competition all have a strong impact of technology, production, trade, finance, communication and information.
Justification to Change:
In 150 years of frenzied transition period to a new age distinct by global competition, furious change, faster flow of information and communication, increasing business density, and pervasive globalisation, Selfridges & Co has been very creative and innovative and has coped up with the altering demands in all aspects.
Globalization has taken the Selfridges & Co. from national fame to international glory; a diverse customer loyalty is attributed to the organisation.
But I have noticed the only modification it has made in its trade mark "Yellow Bag" in 150 years is turning its shopping bags from plastic to paper.
According to Selfridges & co surveys highest number of their loyal shoppers is of Arabs, they are very keen to augment for this target sector. Majority of Arabs are Muslims, one of the essential requirement of this target group is Halal food. This calls for change to cater a vast clientele.
The external factors of globalization change in market, customers, competitors, social, political and natural environment call for the internal changes that will facilitate Selfridges & Co to react and adapts to the external changes.
I call for change in two areas of my organization.
Change #1 Modify the trade mark yellow paper bags of the organization.
Change# 2 Introduce Halal foods in the restaurant.
Reason of Change #1:
Recently the National Geographic Store has opened its first store in Europe. It is situated in Regent Street the Yellow Border Design, Flag Design and Society Seal are trademarks of the National Geographic. The colour and design of the store paper bags are almost identical to Selfridges & Co.
I believe that the change in the design of Selfridges & Co. will help differentiate it from its potential major competitor as well as break the monotony.
Reason of Change #2:
Introduction of Halal food will be beneficial to the perishables sales. The history of the organization indicates that it built client age by giving out "free pudding". Dining experience of Selfridges & Co is one of the most popular attractions, Introducing Halal food will add to the number of consumers.
Strength and Weaknesses of Bureaucratic Organizations:
Bureaucracy is a concept in sociology and political science referring to the way that the administrative execution and enforcement of legal rules are socially organized.
More or less every organization is bureaucratic in nature. Most large organizations are bureaucracies. My chosen organization Selfridges & Co does not practice bureaucratic style of management, but we do witness bureaucratic manner in certain departments like payroll department.
Merits and Demerits of a Bureaucratic Organisation Related to Selfridges &Co.
Strong Control and monitoring escorts to fewer chances of errors.
Experts formulate imperative decisions based on their skills and experiences that are beneficial to the organization.
Standardization directs all the employees to track a uniform course of action.
Horizontal flow of information results in efficiency.
Miscalculation of the top management of Selfridges and Co can lead to failure.
The bureaucratic system practicing certain departments in my organization has a tendency of ignoring human and social processes at times.
Alternative Forms of Organizational Development:
"Organization development is a system-wide application of behavioural science knowledge to the planned development and reinforcement of organizational strategies, structures, and processes for improving an organization's effectiveness."
-- Cummings and Worley, "Organization Development and Change", Sixth Edition, South-Western Publishing, 1997, p.2.
Business Process Re-Engineering (BPR):
Michael Hammer and James Champ wrote in their best-selling book, "Reengineering the Corporation". They argued that sometimes it is indispensable to lower costs and increase quality of service. According to them the key to a radical change is IT.
The authors felt that the design of workflow in most large corporations was based on assumptions about technology, people, and organizational goals that were no longer valid. Organize around outcomes, not tasks, Identification of organization process and rearranging them giving priority to urgency, giving centralized position to geographically scattered resources, making a connection among similar activities at organization, Confine information once and at the source. BPR gained the reputation of being a polite alternative to the word "downsizing." Selfridges & Co is practicing EPR in some of its departments which are a form of BPR.
Total Quality Management (TQM):
TQM concept was essential to formulate a process due to increased demand by customers and suppliers for higher quality products.
TQM processes are sequenced into four categories: ---Plan ---Do ---Check ---Act
Selfridges & Co departments have adapted TQM successfully. Quality is one of the prime attributes of my organisation; from exuberant leaders to trained proficient workforce Selfridges & Co has successfully implemented the principles of strategy.
Principles of TQM at Selfridges & Co:
Committed and effective leaders
Kaizen philosophy is to...
"Do it better, make it better, and improve it even if it isn't broken, because if we don't, we can't compete with those who do."
In this business strategy the goal is to work together, individuals from across the organisation are encouraged to give improvement suggestions on regular basis, while reducing waste the goal is to make small continuous changes for improvement. My organisation has a strong identification with the Kaizen philosophy which can be witnessed in its 150 years of progress history.
Push and Pull Strategies:
Push strategy: The communication between seller and buyer is an example to understand the push strategy. Promotion made by television or radio, do not allow the buyer to interact. While if phone or internet is used as a communicating medium, the interaction between buyer and seller is probable.
Promotions made using television and newspaper as medium the information is pushed, on the other hand mediums like telephone and internet allows the buyer to demand information as he requires.
Pull strategy: In a "pull" system the product has to be requested by customer. Car manufacturing company Ford Australia is a fine example of "pull" system; Ford Australia only produces cars when order is placed by the customers.
Time to time Selfridges & Co applies push and pulls strategies with respect to the nature of service or product like the famous visual displays of my organisation are an example of push strategy while custom made products by many concessions in the store are genuine examples of pull strategy.
"Organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to learn together."
Selfridges & Co. can best relate to a learning organization as it is largely based on this philosophy. Organization develops in to learning organizations where factors prompting there change.
My organization exhibits five main characteristics of a learning organization:
Systems thinking - personal mastery - mental models - a shared vision - team learning.
Systems to Involve Others in the Process of Change in Selfridges & Co
2.1- Systems to Involve Appropriate Stakeholders in Introduction to Change:
"All is connected ... no one thing can change by itself."
- Paul Hawken
Definition of System:
System is defined as a set of routines, methods or procedures to carry out a specific activity. It is an organised structure that consists of interdependent elements, which may influence each other directly or indirectly.
Definition of Stakeholders:
Stakeholders are people who have some form of interest in the change, whether they are the targets of the change, managers or other interested parties
The benefits will not be realised unless the key stakeholder communities accept and embrace the changes.
Involving many stakeholders in a change process does not only need a lot of resources but a proper system to involve all the stakeholders, different stakeholders need different treatment to change effectively. To avoid any resentment the organisation has to be cautious no to make any conclusion.
"Change is firstly a threat, and only secondly an opportunity"
Introduction of Halal Food
Modification in the Trade Mark
Systems Developed to Involve Stakeholders:
Stakeholders Systems for the Introduction of Change
Management - - - - - Meetings, Teleconferencing, Opinion polls, Advisory boards
Employees - - - - - Intranet, Circulars, Briefing, Brochures, Coaching, Training, Workshops Suppliers, Distributors - - - All types of formal and informal announcements, Seminars
Customers - - -- - - Leaflets, Advertisements, Campaigns, Feedback support
Since in this scenario the customers are the one who need to be more aware of the change i will explain the systems developed or the consumers. It is essential that the customer recognise the change in both the changes awareness is the key to success both the changes have been made to augment a certain large sector and differentiate. Advertising campaigns announcing the changes made will attract customers and familiarize the with the new trade mark so that they can associate the modification with Selfridges & Co.
Formal and Informal Announcements /Seminars:
The internal stakeholders have a vital significance to the organization any change that has to take place must be accepted by all these stake holders for efficient implementation and successful outcomes. All types of formal and in formal announcements and seminars would be the best system for Selfridges & Co to communicate the change across the internal stakeholders. This will give them a chance to interact and discuss any concerns regarding change being implemented.
For the success of any project the workforce involvement and their sense of owner ship must be replenished. Announcing the change does not give an employee a sense of participation in terms of meetings the change can be presented to them with a prospect of an aim or organisational objective, giving the workforce a reason to commit to change and a sense of being an essential part of the process. This system will encourage quality circle culture as well.
2.2- Evaluation of the Systems to Involve Stakeholders:
The purpose to implement the stated systems is to introduce the stakeholders with the change to be made and to get feedback.
In the case of the change to be made in my organization, the aim is to make the consumers familiar with the change so that they relate the changes made with the Selfridges & Co.
Conferences & Presentations:
To involve the top management and important personalities conferences and presentations are the most appropriate systems for the introduction of the change. Selfridges & Co generally adopts this system to approach top management. These systems will also explain the reason to bring about the change. Unlike the customers or community it is important to explain the reason to change to the stakeholders of this level as well as their approval is essential to start the process of change.
Advantages: Modification possible in the light of reactions; questions can be answered.
Disadvantages: Communication with absentees, ensuring sub-groups all receive same message.
This form of communication to persuade potential customers to purchase or to consume the particular brand Selfridges & Co has been awarded with distinction several times for its pioneering advertisements.
Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. This system can very effectively help people associate the image with the brand or name. The change can effectively be introduced by this system. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail.
Advantages: Total coverage; standard message, better to reach highly targeted audience.
Disadvantages: Expensive, compete against clutter of advertisers.
Feedback is a comment which is positive, negative or neutral. Reputations of sellers and buyers are built on the basis of feedback of trading individuals. The change in terms of colour and design of the shopping bag may be trivial as compared to more sophisticated changes in the structure of an organisation, but it holds its importance. The trademarks have a strong influence on the customer and are vital to any organisation. It is necessary to understand how a certain image reflects its association to any organisation or brand. To understand the perception of the stakeholders through polls, questionnaires etc the reaction of the consumer by introducing Halal food will give a better understanding of stakeholder's expectations.
Advantages: Through polls and questionnaires etc a better understanding of the perception of the stakeholder can be achieved. Similarly the reaction of the consumer by introducing Halal food will give a better understanding of stakeholder's expectation.
Disadvantages: Feedback should always be constructive and healthy; unfortunately sometimes this is not the case, negative feedback may lead to discouragement.
Implementation of Models to Ensure Ongoing Change at Selfridges & Co.
3.1- Adapted Models of Change for Selfridges & Co:
"It is not the strongest of the species that survive, or the most intelligent, but the one most responsive to change."
There are a number of recognised approaches to structuring change-management programme. Organizations flourish that learn to change, while organisations that do not cope with the change have to struggle to survive. Keeping in mind my organization and its requirements I feel that the following two models are best fit to ensure ongoing change in my organisation.
A - Kotter's Eight Stage Model B - Kaizen Continuous Improvement Model
In 1950s one of the foundation stone models for understanding organizational change was developed by a social scientist and physicist Kurt Levin, and still holds true today. This model refers to the three-stage process of change. Levin described the organizational change with the resemblance of altering the shape of a block of ice.
UNFREEZE -------------à CHANGE --------à REFREEZE
No matter how many further steps are involved in the change model they can be placed under three main headings of Levin's Model of Change.
Unfreeze, Change and Refreeze.
3.2- Implementation of the Process and Outcomes:
A- Kotter's Eight Stage Model
Eight significant steps an organisation should go through to ensure successful change, according to the research based on this model.
1- Establish a Sense of Urgency - In Selfridges & Co scenario almost identical trademark urges for a change for distinction. Catering to diversity urges certain changes to cater wider target sectors. This is exactly what Kotter explains in the first step of the model examine market and competitive realities, identify and discuss crises, potential crises or major opportunities.
2- Form a Powerful, Guiding Coalition - assemble a group with enough power to lead the change effort and persuade them work as a team. Through preparation and motivation the workforce Selfridges & Co fulfils the criteria. A significant example is the ongoing programme in the organization "Changing Managers into Leaders"
3- Create a Vision - Selfridges & Co is a vision of one man that sustained the reached splendour. The organization creates vision to help direct the change effort - develop strategies for achieving that vision.
Communicate the Vision - My organisation puts a huge effort in using every vehicle possible to communicate the new vision and strategies.
Empower others to act on the Vision- Risk taking and non-traditional ideas, activities and actions are attributed to my organization in order to manage change.
6- Plan and Create Short-Term Wins- Visible performance improvements are created and employees involved are generously rewarded at Selfridges & Co.
Consolidate Improvements and Produce still more Change- The organisation is dynamic and constantly changes systems, structures and policies that don't fit the vision - hire, promote and develop employees who can implement the vision - reinvigorate the process with new projects themes and change agents.
8- Institutionalise New Approaches- The management is expressive about the connections between the new behaviours and corporate success, developing means to ensure leadership development and succession.
B. Kaizen Continuous Improvement Model
It provides a framework for developing, testing and implementing changes to the way that things are done that will lead to improvement. The core of Kaizen system is identical to one of the basic principles of Selfridges & Co. The following steps are involved in the implementation of Kaizen at my organisation.
Understanding the reason to change by focusing on internal and external factors as well as keeping the continuous improvement factor in mind. The change in Food and Trademark at Selfridges & Co both support step one.
Strong support of key people within the organisation is won by framing the issue as most beneficial to the organisation.
Vision and strategy are the key supporting evidences to justify change. Selfridges & Co uses the same strategy to the organisation improvement does not need a reason "only if it's broken".
Employee concerns are acknowledged and addressed in the terms of change so that they do not get confused and lose interest.
To dispel rumours once a month a staff meeting at all levels is held at Selfridges & Co, which is the fifth step in implementation of Kaizen.
Plenty of options are available for the staff involvement.
My organisation ensures to generate short - term goals in order to reinforce change.
Change is accepted as a part of work culture
Reward system is developed, ensured leadership support and feedback systems are adapted for smooth operation.
Selfridges & Co provides training and support at all levels in order to sustain the change effectively, which is in accordance to the final step or "anchor" of implementation of the continuous improvement model.
Modifying the yellow Trademark bag and catering Halal food in the restaurant have the following desirable outcomes:
Amplified importance of branding and the tangible economic value of the brand today, demonstrate the importance of the trademark is undeniable. The modification in the yellow bag serves as a point of differentiation and the competitive advantage.
Halal food will help secure bigger market share as it is suitable for both Muslims and Non- Muslims. At international level, it can enhance the marketability of the products especially in the Muslim countries; Halal food indicates that the food production not only fulfils Halal requirements, but also strict hygiene practices.
In this paper I have brought change in two areas, justified my decision with forces driving the change, the stipulation of the mentioned change in Selfridges & Co development, introduced systems for involving stakeholders and have finally developed appropriate models for implementation process.
The vitality and sustainability of an organization is directly related to its management. Selfridges has established its self through hard work and intelligent strategies and are continuously trying to achieve higher standards. They developing their staff and are treating them like asset of the organization, along with the benefits they are giving people a reason to work with Selfridges & Co in terms of the prestige attached in working with this organization. Selfridges & Co is using the most sophisticated software to maintain its data and to facilitate its management.
They are the pioneers in changing the way of retail business and converting it in to a pleasurable experience. They have "something for everyone". Mature group, adults, teenagers, children even toddlers have a place to enjoy while their parents shop at Selfridges & Co. They are trying to cater all the customer needs, which is one of the prime objectives of the organization. It is a name associated with luxury, entertainment and unforgettable dining experience. With excellence in all the aspects of management with in Selfridges & Co, I strongly believe that the mentioned changes in this paper will firther boost their continuous improvement process.