Real Life Change Management

Stories
Management of Organizational
Change
 1. BRITISH AIRWAYS
• Early on, it was noticed that the company was extremely
inefficient and a lot of valuable resources were being wasted. 
• To help the organization become more profitable, the
chairperson decided to restructure the entire business. He
decided that the most efficient way to do this was through a
change management plan.
• The organization soon began to reduce its workforce.
However, before this was completed, the chairman - through
his change management leadership - provided the business
and employees with the reasons:
• Why restructuring British Airways was needed
• To help employees to prepare them for the upcoming change.
 BRITISH AIRWAYS
• In 1981, British Airways appointed a new chairperson, John
King.
• His plan saw him replace older planes with modern jets and
eliminated unprofitable routes. He also axed 22,000 jobs -
including half of the board.
• One of his successors, Martin Broughton, paid tribute to King
for the role he played in the transformation.
• He said: “Lord King transformed the airline from a position of
state-owned weakness to one of financial strength and global
renown as a pioneer privatized carrier.”
• So, through leadership and communication, he managed to
direct the business through an incredibly difficult time and
turned British Airways into a profitable business. 
 2. NETFLIX
• In 1997, the gargantuan media-services provider Netflix
was born.
• Previously, the model offered customers monthly
subscriptions to have movies posted to their door. This
meant they avoided the late fees which traditional movie
rental business imposed upon their customers.
• From the beginning, Netflix proved to be a disruptive
organization which has likely resulted in its capability to
transform and adapt to the digital world.
• Streaming began in 2007. This meant subscribers no
longer needed to wait for DVDs to come through the mail.
 NETFLIX
• At one stage, it was at a crossroads, when its long-
term sustainability was dependent on how it
managed the change to a digital future.
• Netflix successfully implemented change
management to meet the needs of the consumers
that would begin to watch content online.
• After surviving a drop in subscription numbers and
stock figures, the business knew DVDs were on their
way out and they needed to shift gears.
• Netflix subscribers grew from 23 million in 2011 to
more than 137 million in 2018.
 3. LEGO
• Lego’s reinvention has seen its story hailed as the greatest
turnaround in corporate history. From 1932 until 1998,
Lego had never posted a loss.
• By 2003, it was an entirely different story. Sales were down
by 30% year-on-year and the brand was $800 million in
debt.
• What didn’t help their situation was that Lego hadn’t
added anything of value to its portfolio for a decade.
• So, what happened between Lego’s CEO, Jorgen Vig
Knudstorp, admitting that the brand is running out of cash
and he wouldn’t survive, and when it overtook Ferrari as
the world’s most powerful brand in 2015?
 Lego
• Much like Netflix, Lego eventually realized that
its lifespan of physical products wasn’t going
to have an infinite interest. After a period of
expansion, this beloved toy company was near
bankruptcy in 2004.
• With this realistic yet disastrous outcome on
the horizon, Lego decided it was time to start
restructuring.
 LEGO
• To begin, the business implemented digital transformation.
Instead of putting their sole focus on physical toy products,
Lego is increasingly concentrating on bridging the physical
and virtual augmented reality (AR) experiences.
• Now, Lego’s revival has gone down in history. A book has
been devoted to the subject - 
• Brick by Brick: How Lego Rewrote the Rules of Innovation -
while the likes of Google, Adidas and Sony all refer to it.
• By finding new sources of revenue, LEGO has managed to
transform its brand and keep up with the requirements of
its target audience today.
 4. DOMINO’S PIZZA
• Back in 2008, Domino’s Pizza was struggling as stock
had hit an all-time low. Despite the importance the
business had put on maintaining a positive brand
image, its struggles were making this a real
challenge.
• Using savvy marketing, creative ordering methods
and innovative technology, things were finally
looking positive in 2010.
• The changes implemented by Domino’s Pizza finally
saw its sales better Pizza Hut for the very first time.
 DOMINO’S PIZZA
• In 2012, however, Domino’s Pizza was back on its feet due
to a successful change management implementation.
• The organization's pizza turnaround, thanks to digital
transformation, rested on the fact that key transformation
players managed to convince top management to get on
board. Eventually, their enthusiasm trickled down
throughout the entire business.
• The brand ramped up its digital efforts as well to meet
consumer demand. Text messages, Alexa, Google Home,
Twitter, Facebook, Smart TVs - they’re all methods used
by consumers to order a pizza. 
 DOMINO’S PIZZA
• Domino’s leveraged the wealth of consumer data through its
customized operating system. This helped keep the transaction
costs low and provided Domino’s with insights about its
customers. Then there’s also the case of developing loyalty
programmes and introducing special offers to continue to drive
up sales.
• Despite the successful change, it hasn’t stopped there. The
brand has also tested drone and robot delivery - even
partnering with Ford on self-driving options.
• The brand implemented new technology to support the
change. A new custom delivery vehicle with a heating oven
was introduced, dubbed the DXP, which acted as a form of
advertisement despite only 150 being on the road at the time.
 5. A REGULAR CHURCH
• Nobody has ever claimed that change
management is limited to large corporations
and well-known brands.
• Take this example from a blog post by KM Jeff,
whose church was building a new sanctuary.
Since it was the congregation that was going
to be paying for the sanctuary, the church
created a steering committee of members of
the congregation.
A REGULAR CHURCH
 A REGULAR CHURCH
• Members were invited to participate and provide
feedback during each step of the construction. They
were made to feel like a valuable part of the process.
The reason behind this was so that they’d embrace the
change as they’d have provided their input.
• By doing this and getting members involved, the
church decreased any negative feelings towards the
sanctuary.
• The lesson to take away from this example is that
getting everyone committed to the process is an
integral way of ensuring that your change
management strategy will be a major success.
 6. NOKIA
• Before smart phones entered the mainstream market, Nokia
was enjoying the success it had built, as the business had
claimed 40% of the market share in 2007.
• Five years later, however, the Finnish organization was
almost finished! It edged closer to disaster as shares
plummeted and the company logged more than $2 billion in
operating losses in the first half of 2012 alone.
• The problem? Nokia realized that it had missed the
opportunity to lead the Smartphone revolution.
• Nokia then hired a new CEO and embarked on a journey to
reinvent itself. After selling its struggling mobile device
division to fellow giant Microsoft, the concentration shifted
to network and mapping technologies.
 6. NOKIA

• In 2008, Nokia introduced a Booster Programme that helped the

company match the ever-changing aspirations of its customers,
as well as new technologies among competitors. They went
from nine to four business units and streamlined development
into just three business units.
• Nokia also purchased Siemens and then Alcatel-Lucent. The
result was billions gained in shareholder value and Nokia
became a full-service infrastructure provider.
• Nokia’s amazing transformation from a borderline bankrupt
hardware manufacturer to leading technology players shows
how major organisations can respond to serious disruptions by
transforming themselves.
 7. COCA-COLA
• Perhaps no organization has been through change management challenges
quite like the Coca-Cola Company. One example is from the 1980s when
bitter rivals Pepsi started to aggressively target Coca-Cola.
• In response, the latter released New Coke - a sweeter version of its classic
drink.
• New Coke wasn’t a success and didn’t appeal to the public.
• Coca-Cola wasted no time in replacing it with the older formula. Here, the
brand was able to respond quickly to consumer preferences so that the
product’s appeal was maintained.
• It even stretches as far back as World War II. By offering free drinks to
soldiers, Coca-Cola quickly marketed itself as a symbol of the US war effort.
At the same time, it boosted brand recognition in destination countries
that allied forces were occupying. During this process, Coca-Cola cemented
its presence through 64 extra manufacturing sites across the world. 
• This accelerated the company’s post-war global expansion strategy.
 COCA-COLA
• These are just some of the change management
examples which show how Coca-Cola manages to
stay ahead of the curve. To respond to greater health
consciousness, Coca-Cola released Enviga, Diet Coke
and Coca-Cola Zero to appeal to this target market.
Then during the Asian financial crisis, the
organization pursued an acquisition strategy to
better deal with consumer preferences.
• By reacting quickly and acting proactively in
anticipation of changing trends, it’s clear how change
management is a vital component in Coca-Cola’s
overall strategic vision.
 COCA-COLA
• In today’s environment, organizational changes are
constantly happening and have become a critical
component in adapting to the constantly changing
dynamics of the marketplace. Whatever your business,
your goals remain the same. 
• If you want to succeed, stay innovative, anticipate the
future and capitalize on opportunities as they emerge,
then you need the tools to make decisions in real-time .
• By aligning your internal teams and having the ability to
see around corners, stay ahead of change and make
better-informed decisions you can deliver successful
change management at scale.
 WHY YOU NEED TO PUT A FOCUS ON
CHANGE MANAGEMENT
• In today’s fast-paced business world, every
successful organization needs to be able to
adapt to change. In the supply chain industry,
this is even more vital as the conditions and
requirements are regularly changing at a rapid
rate. So, to be successful, you need to be
adaptable and that’s where the importance of
the change management concept comes in.
• Change is happening every day as new initiatives and
projects are launched to improve performance and
increase profits. 
• The change management process is one that helps any
transitions inside your organization. It allows employees to
understand, commit to, accept and embrace changes in
the business environment.
• Change management drives adoption and usage so
initiatives deliver expected results within a set time frame.
As the pace of change is faster than ever, organisations
find themselves in a constant cycle of change.
 THE IMPORTANCE OF CHANGE
MANAGEMENT
• Other than change management helping organisations like yours save time
and money, there are many other vital reasons as to why this concept is so
valuable.
• Ease the Tension and Create Smooth Processes
• Fact - change can occur in numerous ways at any time in any business. It can
be a strategic change, in leadership, through technology and more. This has
resulted in companies now seeing change management play an important
role in the implementation of new technology.
• There’s currently a fear that as technology advances, it’ll take over the
workplace. This alone is enough to cause resistance to change in
organizations that are looking to implement new technology. By helping
employees within your organisation better understand the change, the
purpose of it, the benefits it will bring and how risks are mitigated, your
organization can become more open-minded. 
• For example, while Cisco were transforming their finance
department from a number-crunching machine into a
strategic business partner, they published a Q&A in
the Wall Street Journal on the project.
• People involved in the effort shared the piece around,
and took greater pride in the work - and some people
they hadn’t been able to reach by other methods finally
understood what they were trying to do.
• When everybody is aligned and open to change, change
management can help ease the initial tension to create a
much smoother process - from the planning stage right
through to implementation. Save Time and Resources
• Change management is a formal way to communicate with
every employee. It tells them why change is happening,
what it’ll look like for them, how it benefits everyone
involved at the end and much more. 
• Keeping employees informed right from the beginning
helps smooth the transition and shortens the time it takes
to adapt. So, if you explain the benefits early on,
employees will be more open to the change. They'll be
more engaged and invested in the long-term vision, so the
transition can happen quickly, with much less time and
resources consumed by the change process. 
 Create an Innovative and Adaptable
Workplace
• By communicating the plans for the change, such as the
benefits and explaining why it’s happening, you’re opening a
brand new line of communication which sets a standard. Over
time, this increases the trust employees have in the business
and the decisions which the management team are making.
• People understandably fear the unknown and being in the
dark. It is unsettling not knowing why changes are being
made, what the changes are and what the long-term impact
will be. Having a change management strategy and
communicating it can eliminate this and help people to adapt
and embrace innovation. 
• Another way that change management creates this type of workplace is
when companies implement new technology. In this scenario, they tend to
face the challenge in user adoption. A lot of our work at Profit& is
implementing technology that removes the need for common tools like Ms
Excel from processes. 
• There’s no denying that people love Excel and often find it really difficult to
switch to a new tool. This is where involving people early on can really help
in the change process as it makes them feel like they’re valued, they’re a
part of the process and have an influence over the final result. This is the
most effective way of getting buy-in.
• What we see so often is that a lack of training can be a cause of poor
technology adoption. Training and support for users is essential to achieve
expected return on investment in new technology. If end users aren't using it
properly, then you're unlikely to achieve maximum returns.
 Thrive in an Ever-Changing World
• The days of having one large change every three years, for
example, are finally in the past. Now, organisations are facing
changes that are faster, more complex, more interdependent
and more cross-functional than ever before. Being able to
deliver results on multiple changes allows you to achieve your
strategic vision and thrive in today’s changing landscape.
• So, by applying change management in your organisation, you
can deliver results for every single change you implement. By
doing this, you can build competencies that will grow the
business’ capacity to tackle even more changes at any given
time.
 Close the Gap between Requirements and
Results
• It’s common to see organizational changes meet
requirements without delivering the relevant, key results.
That’s because they deliver the necessary outputs without
providing expected outcomes and the focus of the change is
always on the solution - rather than the benefits of the
solution.
• Evidently, there’s a gap that exists between the requirements
and the results. The people who can bring the change to life
on a daily basis are the only ones that can solve this. Change
management allows you to close off this gap. By supporting
the people directly impacted by a change, they can be
successful in bringing it to life in how they work.
 Reduce Stress and Anxiety
• It’s simple - not embracing change will lead to
increased project timelines and the budget.
This can have an adverse impact on employee
morale. Addressing change early within a
project and maintaining consistency will help
reduce stress and anxiety, whilst encouraging
more people to be involved in change
projects. Instead, it’ll help to create a more
adaptable and engaged workplace.
 Provides Employees with Support
• Change is difficult to make. You need to proactively
support and guide people through all stages of the change.
Without effective change management, you're leaving
employee engagement to chance!
• Change management removes this chance by providing
employees with the preparation, support and relevant
skills they’ll need to succeed in change. 
• Change Management is critical in order for your business
to succeed too. You need to stay innovative and anticipate
the future so that you can capitalize on opportunities as
they emerge. This is likely to result in a constant cycle of
change.