18 Jul 2022

104

Avon Products Case Study: How Avon Used Digital Marketing to Grow Their Business

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Academic level: University

Paper type: Case Study

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Scholars contend that internal management processes are vital for successful organizational outcomes. Aspects, such as development planning and performance management, play a critical role in enhancing large-scale companies' growth. Avon's case study proves the essentiality of having solid, structural, and transparent leadership practices to achieve an organization's visions, missions, and objectives. The company is a Fortune 500 firm that had been experiencing cumulative annual growth since its inception in 1939. Andrea Jung, the company's chief executive officer (CEO), noted with concern that in 2006, Avon had stagnated in profitability and growth terms ( Goldsmith, Carter, & The Best Practice Institute, 2009).  Therefore, Jung requested for a global key leaders' meeting to determine the underlying challenges that engendered the company's sudden failure. The analysis of the issues identified, solutions designed and implemented, and the outcomes show the essence of having functional talent management processes for increased revenue achievement and company growth. 

In 2006, Avon's management realized that the company worth $8 billion suddenly experienced a decline in revenue income. The CEO was perplexed by the issue, and an emergency meeting was convened to determine the fundamental causes of Avon's worrying growth and profitability trend. During the meeting, several factors were identified as causatives of Avon's revenue and expansion stagnation. First, the company had an opaque management system, where the Associates and leaders were unaware of how Avon's talent regulation functioned ( Goldsmith, Carter, & the Best Practice Institute, 2009) . There was no management knowledge of how succession planning and performance management were conducted. Second, the firm had a destructive egalitarian culture that treated high-performers similarly to low-performing employees. There were no systems to differentiate between the two classes of workers. Third, Avon had a complex talent review structure that was ten pages long. Managers globally were demotivated to conduct frequent talent reviews by the complex ten-page talent review document. Moreover, the company had employed a full-time worker who just collected and presented talent reviews that Avon only needed two times in a year. Fourth, Avon's management did not have guidelines for the required frequencies to perform talent reviews and development planning. The investigations conducted were episodic and were only performed at the whimsical request of managers. Some Associates had not had their performances reviewed for up to 5 years. Fifth, Avon based its talent promotion and movement on candidates' managerial knowledge, which was a subjective approach. Finally, the firm had a 'toothless' human resources department that was unaware of its role in advancing business processes. Therefore, Avon's woes resulted from weak talent acquisition and management processes. 

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Avon's management then used Adkar's model of change theory to design and implement changes in its talent management processes. I think Avon applied this model because the new management measures executed characterize all the aspects of the Adkar change strategy. For instance, the A of the plan is for awareness, where the organization becomes aware that there is an urgent need to change some internal processes ( Wong, Lacombe, Keller, Joyce, & OʼMalley, 2019). In the case of Avon, Jung was informed that the organization had experienced stagnated profits and needed to implement a change in internal talent management practices. Second, the D in Adkar stands for desire, where the company desires its idealized change ( Goyal, & Patwardhan, 2018) . Avon's team that identified the business's challenges had a desire to restore the organization to its former glory. Third, the K is for knowledge in the Adkar change theory, where the task leadership has the necessary know-how of the factors that will be effective in creating a turnaround for the company. Fifth, Adkar has A, which is the ability to integrate identified changes in employee routines to advance desired organizational outcomes. Avon's CEO mandated all global managers to enlighten Associates on the company's new management strategy and the roles that the employees would play in facilitating the company's profitability improvement. Finally, the R in Adkar is for reinforcement, where the determined changes are implemented and reinforced using identified measures. Avon created and executed its new talent management processes that were reinforced using accountability strategies to ensure continuity. Thus, Avon used the Adkar change management theory to identify the company's challenges, create viable solutions, and to execute and reinforce the changes determined. 

Avon collected several types of evaluative information that were used to benefit the company in the long-run. First, the company identified the talent challenges that were derailing Avon's growth. Factors identified included opaque knowledge of talent management processes, egalitarian culture, and complex talent review processes ( Goldsmith, Carter, & The Best Practice Institute, 2009) . Avon determined that its growth was affected by episodic performance and development review and planning protocols, emotional promotion and movement of talent, and meaningless HR practices. Avon then considered the "what" aspect of the internal methods that needed change. The company based its determination on the Top Companies for Leaders research, which showed that when traditional talent management practices were executed effectively, the outcome was great leaders and earnings ( Sareen, & Mishra, 2016) . Therefore, Avon aimed to enhance the efficiency and effectiveness of its talent management processes for organizational success. The "how" element helped Avon determine the pivotal measures in changing the six identified failure factors. Thus, the solutions implemented were based on Avon's evaluative aspects. 

Avon designed six counter-measures to remedy the six weaknesses that the task force identified as causatives of the organization's stagnation. First, Avon instituted transparency in talent management (TM) processes. When the incoming TM first requested the 360-degree assessment of junior managers, the administrator's feedback was that the documents were confidential( Goldsmith, Carter, & The Best Practice Institute, 2009) . Hence, the TM was unable to determine the performance of subordinate leadership. Avon changed the 360 assessment by creating a new system that was simple and could be accessed by the TM, HR, CEO, and any other authorized personnel as the company deemed fit. Moreover, Avon designed a broad-based transparency protocol where Associates were enlightened on the company's expectations from employees ( Gallardo-Gallardo, Thunnissen, & Scullion, 2020). Avon then developed a career development plan which included educative courses to enhance Associate job engagement and output. Further, Avon changed its performance review systems from a 3-scale to a 5-scale procedure which monitored Associate and management behavioral input at the workplace. Thus, the company moved its talent review protocols from being opaqueness to transparency. 

The second change involved the change of its performance review documents. Previously, managers had to assess employee performance using a 10-page report that was demotivating. Hence, Avon simplified the talent review processes by incorporating simple measures that would benefit the company. Additionally, the organization designed client engagement surveys to help the firm identify its weaknesses and strengths. Third, Avon changed its culture by adopting a differentiated approach for different performance levels of employees. Associates and managers globally were educated on the new culture, which allowed workers to review managers' performances. Fourth, Avon adopted a disciplined talent review procedure that comprised defined timeframes when mangers would conduct performance assessments. Fifth, the company changed its talent promotion and movement protocols by implementing factual qualitative and quantitative strategies that managers had to use before promoting or moving any talent in the organization. Finally, Avon adopted a consequential talent management approach that reinforced accountability. Pay-per-performance systems were designed, which would help the company to identify performing and underperforming workers. Moreover, all leaders globally were expected to present their 360 assessments to the CEO every six months.   

Avon contends that the changes implemented have resulted in significant changes for the company. For instance, the Immediate Manage Ratings that check a manager’s involvement in performance reviews and succession development have increased by 17%. Moreover, the firm argues that employees have shown a 90% change in behavioral aspects that derail Avon’s growth and productivity ( Goldsmith, Carter, & The Best Practice Institute, 2009) . In the next five years, Avon will achieve a 50% Immediate Manager Ratings, and all Associates will have fully adopted the new organizational culture. Avon will experience immense growth and revenue income that will exceed its previous 25% annual profitability increase. Thus, Avon’s growth and revenue will increase outstandingly in the next five years. 

In 2006, Avon’s CEO realized that the company’s profitability and growth had stagnated. Therefore, a task force was formed, which identified six weak areas that the organization had, which derailed its output. I think Avon’s performance will be outstanding in the next five years if it adopts the Adkar change strategy designed by its taskforce. 

References 

Gallardo-Gallardo, E., Thunnissen, M., & Scullion, H. (2020). Talent management: context matters.  The International Journal of Human Resource Management 31 (4), 457-453. doi:10.1080/09585192.2019.1642645 

Goldsmith, M., Carter, L., & The Best Practice Institute. (2009).  Best practices in talent management: How the world's leading corporations manage, develop, and retain top talent . John Wiley & Sons. 

Goyal, C., & Patwardhan, M. (2018). Role of change management using ADKAR model: A study of the gender perspective in a leading bank organisation of India.  International Journal of Human Resources Development and Management 18 (3/4), 297. doi:10.1504/ijhrdm.2018.093442 

Sareen, P., & Mishra, S. (2016). A Study of Talent Management and Its Impact on Performance of Organizations.  IOSR Journal of Business and Management (IOSR-JBM) 18 (12), 66-73. Retrieved from ww.iosrjournals.org/iosr-jbm/papers/Vol18-issue12/Version-3/J1812036673.pdf 

Wong, Q., Lacombe, M., Keller, R., Joyce, T., & OʼMalley, K. (2019). Leading change with ADKAR.  Nursing Management (Springhouse) 50 (4), 28-35. doi:10.1097/01.numa.0000554341.70508.75 

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StudyBounty. (2023, September 15). Avon Products Case Study: How Avon Used Digital Marketing to Grow Their Business.
https://studybounty.com/avon-products-case-study-how-avon-used-digital-marketing-to-grow-their-business-case-study

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