Introduction
The contemporary business environment is extremely hostile that only dynamic companies can survive. This implies that for organizations to thrive, they need to embrace constant change in line with the external business environment. Based on the type of change (people-centered or technology-based), some change models are more effective than others. This essay focuses on the short-term and long-term change models that Sea Treasures can apply to roll out its technology-based change. The study will also document the rationales for the models and the potential implications on employees, and the top management.
Change Models for the Short-term Change
Sea Treasures has been using legacy systems for the past five decades. If the relevant stakeholders do not understand the risks, then the company will be insolvent in a year. The contemporary consumer appreciates technology and uses the internet on a constant basis for information purposes. For that reason, Sea Treasures can only enhance its market share by embracing the power of technology and the internet. Sea Treasures needs to implement change as fast as possible. Lewin’s change model is ideal for this situation and follows the following steps:
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Unfreezing
The driving forces in the company are the loss of business, sales, market share, and competitive advantage. Although the owner is already convinced about the new system, employees might resist. At this level, communication is paramount so that individuals understand the effect of the change. Full employee involvement and training is important as well. Use of negotiation and coercion can be effective ( Calder, 2013).
Changing
The actual transition takes place, and the new website is deployed ( Calder, 2013).
Refreezing
The change is reinforced, and stability attained ( Calder, 2013).
The rationale for the Change Model
Lewin's approach details the methods an organization can employ to minimize the resistance of the new system such as communication, negotiations, and in specific situations, coercion. The model is also ideal in cases where quicker implementation is necessary for the organization ( Öhman, 2018).
The Effects of the Changes on the Employees, Managers, and Executives
For the employees, new departments such as ICT and Customer Care will be established. The latter will be tasked with handling customer requests, claims, and complaints. The ICT department will ensure the smooth running of the website and other systems in the firm. The entire organization will be computerized. Managers will be expected to make faster decisions because the number of customers will be increasing, so decision support systems will be ideal. The executives will be expected to allocate enough resources to various departments to ensure smooth running. The standard operating procedures will slightly change.
Change Models for the Long-term Change
For the long-term change, the ADKAR model is ideal because it is people-centered. “ADKAR is an acronym for Awareness, Desire, Knowledge, Ability, and Reinforcement” ( Crafford & Theron, 2006). The ADKAR model applies to any organization. It follows the following steps:
Awareness
The relevant stakeholders need to understand what needs to change and the urgency. They also need to know the risks of not adjusting, in this case, loss of livelihood for the employees and dividends for the owners. Individuals also need to recognize the benefits of the change (Swaim, 2010); for instance, increased market share for Sea Treasures means higher revenues and more profitability. Crafford and Theron (2006) opine that w ithout understanding the need for change, people not likely to welcome ideas that can change the status quo. The top management, therefore, plays a key role in understanding the importance of the technology to the firm; hence should lead the process of transition.
Desire
Once people are aware of the change, they need to be inspired to support it, or else the change manager may face resistance. Building awareness alone cannot create the desire. Using past individual successes, motivating (intrinsic and extrinsic) and incentivizing the change creates the passion in people. This implies that the top management will have to approve new compensation structures; so, their support is principle ( Öhman, 2018).
Knowledge
People are equipped with information regarding the new mode of operation. For instance, people may adopt paperless transactions so departments will have computers and sales representatives will need iPads. They need to learn how to operate them ( Calder, 2013). A new ICT department may also be created.
Ability
The concept born at the initial stage is turned into a reality. The newly established ICT department may guide people through the process ( Öhman, 2018).
Reinforcement
The use of the accountability system will assist individuals in determining whether they are achieving the desired milestones. For instance, end-year reports can detail changes in revenues and profitability ( Öhman, 2018).
The rationale for the Change Model
This model reduces potential resistance by notifying the stakeholders about the implications of not transitioning and creates the desire in the concerned persons. It thus centers on educating individuals about the changes and motivating them to embrace it. Besides, it builds healthy relationships and trust between the employees and the top management. When employees are involved from the beginning to the end, the degree of success is high ( Crafford & Theron, 2006).
The Effects of the Changes on the Employees, Managers, and Executives
In this model, the top leadership (executives) plays a significant role in ensuring the system is a success. Sound leadership is instrumental at this stage. The group will also reevaluate the existing business strategies to match the growing market. Managers will be expected to be proactive in coming up with new systems that could be integrated with the new one to optimize the supply chain. Employees will be required to undergo continuous training to acquaint themselves with the new system.
Conclusion
The study established that the Lewin's change model is ideal for short-term transition because it focuses on overcoming potential resistance from the employees. It is also fast considering that in a year's time, Sea Treasures will be out of business. Also, the ADKAR model is better for long-term change because it involves the organizational leadership and instills the desire to change among the employees. The study also established that the standard operating procedures in the firm would change and new departments will be established to meet the demands of customers.
References
Calder, A. M. (2013). Organizational Change: Models for Successfully Implementing Change . Retrieved from https://digitalcommons.usu.edu/cgi/viewcontent.cgi?article=1142&context=honors
Crafford, A. & Theron, R. (2006). Industrial psychology: fresh perspectives . Cape Town, South Africa: Pearson Education.
Öhman, J. (2018). Developing a model for successful organizational change: Case 3M Nordic Region . Retrieved from https://www.theseus.fi/bitstream/handle/10024/151818/Thesis_Ohman_Final_Version.pdf?sequence=1&isAllowed=y
Swaim, R. (2010). The strategic Drucker: growth strategies and marketing insights from the works of Peter Drucker . San Francisco: Jossey-Bass.
