Should a review of organisational culture be factored into any change-management plan?

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Preferred Language Style: English (U.K.)

Abstract is needed
the example for essay can be used from case study below
CASE STUDY
When Adrian De Lucca inherited his father?s wine business in 2002 he thought he could continue to run his consulting firm, AD Organising Solutions and let the management team at De Lucca Wines run his father?s company. After all, the management team included his father?s brother Bruno and his mother?s brother Dan. Both Bruno and Dan took over as Deputy CEOs when Adrian?s father, Frank, passed away. Both Bruno and Dan reported to Adrian regularly after the passing of Frank. However, as Adrian?s business grew he started to rely more and more on his uncles to run the winery on their own, even though he continued to be the CEO. For several years De Lucca wines continued to make a healthy profit and several of its leading wines won prestigious awards at various wine shows around Australia and overseas.
It was a good time for Adrian, De Lucca Wines was showing a healthy profit each year and his consulting business, AD Organising Solutions, expanded from its one-office location in Glenferrie Road Hawthorn in 1997, to three offices. By 2010 Adrian?s consultancy business had become a successful venture with a net gross operating surplus (GOS) of $5 million per annum, and a staff of over 30 around Melbourne. Adrian?s business was now earning almost a quarter of De Lucca Wine?s 2009-2010 GOS.
Adrian?s business, which had initially offered only financial consulting advice, had grown into a large and respected business that specialised in solving a large range of organisational problems. As Adrian?s consulting business grew he hired more specialised staff to cope with the steady stream of clients that wanted to utilise one of the services provided. In 2006 Adrian even head-hunted two of his former MBA classmates from Swinburne University, Le Hong and Brian Henley.
When they were undergraduates, and later, MBA students, at Swinburne University, Adrian, Le and Brian used to call themselves ?The Three Musketeers? as they often joined together in group assignments achieving high praise from their lecturers for putting together sophisticated business plans , case study solutions and professional presentations. After their second group assignment, Brian suggested they each say out loud with gusto ?One for all, and all for one?, when they were ready to commence a new group assignment. In fact, after their third successful grouping in a second year undergraduate subject, Adrian started to sketch out what would later become AD Organising Solutions. By the time they were mid-way through their MBAs, Adrian was looking for business premises in Glenferrie Road Hawthorn, near the university.
In December 2010 Adrian opened his third office in Collins Street, and started the day by having a coffee at Leo?s Caf? where he used to serve as a waiter in his student days. As he sat back drinking his espresso and reading the paper, Adrian paused to reflect on his good fortune. His home life was happy, AD Organising Solutions was expanding, and his father?s business was running well with his uncles Bruno and Dan at the helm. ?Life is truly wonderful? thought Adrian. As he paused to consider his good fortune his mobile phone rang. It was his uncle Bruno.
?Hi Bruno. How are you?? asked Adrian sipping his coffee.
?We?re in trouble Adrian? said Bruno in a strained and anxious tone. ?Can you drop by today? Dan and I are over our heads.?
Within an hour Adrian was at De Lucca wines to catch up with his uncles.
?Good to see you Adrian? said Dan as he led his nephew into the boardroom where Bruno and a few other staff were waiting for them.
?What?s going on?? asked Adrian as he surveyed the gloomy faces of his uncles and their colleagues.
?We?re up the creek without a paddle Adrian?, said Dan. ?Or to put it in business terms, we?ve had the worst bout of turnover ever in the history of De Lucca Wines, lots of complaining wholesalers, a major drop in demand for our wines. And now we may even go under as our new winery in the Yarra Valley has soaked up all our cash reserves!?.
?What!? said Adrian, startled at the long list of issues. ?And you and Bruno thought you could wait until now to tell me about this. Are you guys nuts or what?? Adrian was shocked and angry.
?Hold on Adrian? said Bruno, ?What Dan forgot to mention is that this has all unfolded in the last four months.?
?Are you kidding me?? asked Adrian whose keen business mind failed to understand that four months could cause the problems currently at hand. ?Why don?t you fill me in from the beginning??
?OK? said Bruno, ?It all started about ten months ago when we thought it was time we modernised the company logo. We hired a graphics designer from Bluestone Business Ventures to come up with a new logo . . . which they did. But it didn?t stop there; the company gave us the services of a corporate strategist from Bluestone for 50% less than the usual fee. We thought that was too good to pass up as it included a free assessment of our business operations, with no further fee if we chose not to implement any of the suggestions. The Consultant?s report was completed in late September, just after we had changed the company logo in a few key areas.
?Basically, the report suggested that since we had already changed the logo at HQ, on our wine bottles and in all our advertising, that we should also have new stationery with the new logo, re-paint the delivery vans, and change the company logos at the winery, and pretty much use only the new logo for everything. This all made a lot of sense so we signed off on this and had everything changed by mid-October. However, for some reason, some of the old-timers at HQ and the winery refused to use the new stationery and mugs. ?
?By late October, the Consultant came back to review the new look and suggested we could go further. He designed a new organisational structure for us, so that we moved from the previous divisional structure to a functional structure. This meant combining our elite wines, which we sell to overseas markets, with our home brands. Because of that we had to shuffle the staff around and have all the Position Descriptions re-written to suit the new structure. Some of the staff expressed a lot of annoyance at having to work on overseas and home brands. I don?t really know if they have been expressing real concerns or are just griping because of the changes? Bruno paused to get his breath. ? Plus, the Consultant insisted that we remind all staff to stop using the old stationery and mugs as this was infringing on our new corporate look and culture. ?
?Anything else??, asked Adrian, who could sense from Dan?s face that there was more.
?Well? began Bruno, who looked over to Dan for support, ?The new structure had implications for our delivery and sales because we started to use a new software system to sell our wines. For some reason a lot of staff in sales and marketing are complaining they don?t like the new system. On top of this sales and marketing staff were all put together. Instead of selling to different markets, they are now selling to the home and overseas markets. Some of the overseas sales staff have been very upset about sharing their overseas sales trips with the home brand sales staff, and the home brand staff seem to be really upset about having to go overseas. ?
?Plus?, said Dan, ?We started getting a few strange letters in the suggestion box from staff who were upset at the corporate logo changes and having their PDs re-written. As you know, Frank started the suggestion box up in the 1970s, as a way of encouraging staff to anonymously let us know about anything that bothered them. But it?s become a vehicle for rudeness.?
?That?s for sure?, said Bruno, ?Some letters have painted Dan and I as monsters who are trying to change things for the sake of change. Adrian, they don?t seem to appreciate that we are trying to move forward into the twenty-first century. One of the letter writers even said we were cruel by taking their mugs away. For goodness sake! Adrian I don?t understand why they are attacking us on a personal level?.
?Maybe the changes have been introduced to quickly? suggested Adrian. ?Did you have any staff meetings or consult staff??
?No.? said Dan. ?Should we have done that??
?Adrian? began Bruno, ?We?ve lost about 20% of our staff, and for some reason production seems to have slowed down. It doesn?t make any sense! We?ve even lost Marty and Bess who take care of our sales in WA, Tasmania and Queensland. I don?t know how we?re going to replace them.?
?And don?t forget to mention Jenny, she gave her notice last week? said Dan.
?Your Director of HR has quit!? exclaimed Adrian. ?Surely I?m at home having a nightmare. I can?t understand why you didn?t consult me. Have you forgotten I run a very successful Consulting business??.
?Adrian we didn?t forget, it?s just that we didn?t want to bother you. But we did send you everything in our monthly reports.? said Dan, ?It all looked good on paper when the Consultant briefed us. He said we would be making economies of scale by moving from a divisional structure to a functional one, and that in less than two years our higher profits would more than pay for the implementation costs of the new structure. But the way its going, we won?t have enough skilled staff left. It makes no sense, why are people so hung up on logos, PDs and the like??
?I can?t believe this!? said Adrian who got up and started pacing the room. He did this for several minutes then went to the window and looked out for a further five minutes. He then turned around and sat in the CEO?s chair. ?OK, I?ve got a plan. Le, Brian and I will take this over as one of our organisation solution cases. We?ll come in tomorrow and start collecting as much detailed information as possible. Then we?ll come up with a plan to get us back into business. ?
?That?s sounds great? said Dan.
?It sure does? echoed Bruno.
Over the next few days Adrian and his team came to De Lucca Wines each day and gathered the information they needed. At the end of the week they held a meeting to review their findings.
?Ok?, said Adrian. ?Let?s each review a few general issues before we start talking details. I?ll start off.?
Adrian commenced with his review of the new roles. ?It seems that apart from the leadership group, everyone else?s job was made redundant ahead of a set of new jobs with new PDs and new position names that are supposed to be brought in by the end of January. This affects 82 positions. The new PDS have a range of fancy new terms that don?t make sense to a lot of the staff, especially the old-timers. It seems a lot of people think they?ll have additional duties to perform, but that?s not necessarily the case, its just that the functional structure is changing what people do. Added to this, a lot of the remaining staff have expressed a great deal of anxiety about the upcoming changes. ?
?The changes to culture were brought in without any consultation. Bruno and Dan thought they could just rest on the trust they had built up with the staff over the years?, said Le.
?Well I have more shocking news in the IT front?, said Brian, ?As Bruno and Dan told us, there is a new software system for sales, . . . however, they forgot to mention that this system is tied into the Lotus Notes email system. So on top of everything else, they have also moved away from Microsoft Outlook to Lotus notes for their email. A lot of staff said they were pretty unhappy about this. There have been several staff training sessions, but pretty much no one has shown up to these?.
?Sounds like the staff are sick and tired of the changes?, commented Le. ?It wouldn?t surprise me if turnover doubles by the end of February.
?Sounds pretty bad? said Adrian. ?Plus, on top of everything else, the Consultant and my uncles have deviated from my dad?s core strategies for the company. For some reason this 50% Mr Cheaper Consultant wasn?t bright enough to review the existing strategies, mission statement and so on. He thought he could just change structure, bring in new technologies and make massive changes to PDs without looking at the corporate strategy.?
?Are you kidding me??, asked Brian. ?That?s like driving your car to Brighton without a road map?
?Exactly right?, said Adrian.
Is there anything else??
?Yes? said Le?, I?m sorry to mention this Adrian but it needs to be said?
?What is it?? asked Adrian wondering why Le looked so serious.
?Well? commenced Le, ?I have to ask why the CEO didn?t keep an eye on this??
?You mean me of course? said Adrian. ?Well I have to confess, that I pretty much let Bruno and Dan do what they wanted. When I inherited the business I used to attend every meeting and read everything they sent me in emails and monthly reports. But a few years ago I started to only attend a few meetings each year, and I stopped reading their emails and monthly reports when AD Organisation Solutions started to grow. With the new office opening up in the city, and the new government account, around July I just thought I could concentrate on my own business. You know, I just realised, I guess I keep viewing De Lucca Wines as Dad?s business, buts its one of my businesses. So I didn?t know what was going on. I guess I?m partly to blame for all this.?
?Well?, said Brian, ?Let?s just move forward. Come on guys; ?One for all, and all for one?.
Adrian and Le got up and joined in the chorus, ?One for all, and all for one?.
?Well?, said Adrian, ?Whether it takes a month, a year, or several years, we?re going to make sure De Lucca Wines becomes a well organised and successful business again.?

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