Often, firms are confronted with situations that force them to re-evaluate their strategies. For most firms, these situations offer the drive needed for growth. However, for growth to occur, the firms need to adopt strategies that are in line with the realities that define their operations. The volatile environments in which firms perform their affairs underscore the importance of transformational change. Essentially, through transformational change, firms are able to demonstrate the courage of abandoning old and ineffective strategies. Transformational change challenges the firms to institute measures which secure their future and enables them to move with the times. The case of Warby Parker highlights the relevance and importance of transformational change. A leader in the eye care industry, this firm is implementing a change through which it hopes to solidify its performance and position in the industry.
Background
For a full understanding of the role that transformational leadership is playing in the operations of Warby Parker, it is helpful to set the stage with some background information. As already noted, this firm is a key player in the eye care industry. It is involved in the making and selling of eye glasses. Driven by the philosophy of making the eyeglasses affordable and accessible to all, this firm has successfully leveraged internet technologies to revolutionize the eye care industry. It uses online platforms to market its products. The firm has also established stores which are under the overall control of store managers. In addition to the store managers, the firm also employs healthcare professionals who offer care to clients. Previously, the professionals reported to the store managers. However, after a series of resignations and frustration among the professionals, the firm saw the need to change its reporting structure. Currently, the company has rolled out a new reporting system whereby the doctors report to an Executive Director. The person who serves as the Executive Director must possess credentials that are related to healthcare. It is hoped that the new reporting structure will address the problems witnessed under the old system. Apart from exercising overall authority over the doctors, the Executive Director will also be involved in training, recruitment and performance appraisal. The full implementation of the changes to the reporting structure promises to transform the business performance. Currently, the business relies too heavily on retail services. The changes are designed to fully incorporate the services that the doctors offer into the core of the business’ operations. In the following discussion, the standards of transformational change management are explored. This discussion seeks to show that as it adopted the change, the business demonstrated knowledge, skill and disposition.
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Standard 1.0 – Systems Thinking
Systems thinking is one of the critical elements of transformational change management that Francis Duffy (2010) explores in his book. Duffy believed that as they adopt change, firms need to examine how different components work together. Essentially, systems thinking involves adopting a holistic approach that accounts for the different components of the business. In changing the reporting structure, a systems thinking approach was adopted. Focus was given to ensuring that the services that the doctors offered were married with the retail function. Basically, the change was designed to ensure that the doctors felt comfortable and that their work was valued for the purpose of driving the general operations of the company. As will become clear in the discussion below, the adoption of systems thinking at Warby Parker was made possible by knowledge, skills and disposition. The doctors who deliver services, the store managers who are in charge of the retail function, other employees, customers and shareholders are the key stakeholders involved in the operations of Warby Parker.
For systems thinking to be adopted effectively, those responsible for change management need to possess knowledge and skills on a wide range of issues. An understanding of how the different components of a system function independently and in concert with one another is one of the knowledge areas that facilitates systems thinking (Assaraf & Orion, 2005). When it adopted systems thinking, the company understood how the roles of the doctors were tied to the overall operations. It was acknowledged that the services that the doctors offer are critical to the success of the company. This is why the reporting structure was changed. The new structure would allow the doctors to perform optimally and make more significant contributions to the company’s operations. In addition to the knowledge of how different components work, cognitive skills and inquiry-based learning are other skills that underlie systems thinking (Assaraf & Orion, 2005). Before the new reporting structure was adopted, questions were raised about the effectiveness of the structure that was previously in place. In particular, the company sought to understand how the reporting structure affected the morale, commitment and productivity of the doctors. After observing that the structure was responsible for high turnover and low morale among the doctors, the firm saw the need to replace it with one which placed the doctors under the authority of an officer with higher qualifications and credentials. It is evident that the change that Warby Parker adopted was driven by a systems thinking approach which sought to address the ineffectiveness of the old system.
The skills and knowledge described above underscore the fact that systems thinking was at the center of the change that Warby Parker implemented. Disposition also played a key role in the change management process. While it is important for firms to consider their internal affairs when implementing change, it is far more vital for the firms to account for the realities in the wider industry. Specifically, firms should explore the practices of their competitors (Brown, 2012). As they do this, they are able to ensure that the changes that they adopt help to enhance their competitive advantage. While changing the reporting structure, Warby Parker considered the practices of such competitors as Luxottica, America’s Best and VisionWorks. Thanks to its adoption of internet technologies, Warby Parker had emerged to become a serious threat to its competitors. However, the concerns raised by its doctors regarding the reporting structure threatened to erode its competitiveness. Therefore, by examining its relative competitive position, the company saw it fit to change its reporting structure. This change highlights the fact that when implementing change, firms should consider their position relative to other players in the industry.
Standard 2.0 – Focus of Systemic Transformational Change
Systemic transformational change is one of the concepts that define successful change initiatives. According to Duffy (2012), as they implement change, firms should ensure that they consider all components of their operations. This ensures that the change causes transformation that is felt across the entire organization. The main area of knowledge that is needed for systemic transformational leadership concerns recognizing how improving the entire system affects the whole organization. When it changed the reporting structure, Warby Parker mainly sought to deliver improvements to the doctors. Thanks to the new structure, the doctors would be reporting to an official with better credentials. However, the firm also set out to improve the experiences of the store managers. When the new structure came into effect, the store managers were no longer required to monitor or manage the doctors. As a result, they were able to dedicate their entire focus and energies on the core business of retail. Therefore, the knowledge on the value of systemic improvements helped Warby Parker to effectively adopt change.
There are numerous skills and dispositions that make systemic change management possible. Data collection is the main skill that is needed (Duffy, 2012). By collecting data, firms are able to understand the different areas of their operations that need improvement. While it did not engage in a formal data collection process, Warby Parker relied on the insights that it obtained from its employees to inform the change management process. There are some doctors who lamented that they resented having to report to the store managers. Using this information, the company felt it wise to place the doctors under the control of an Executive Director. In his text, Duffy noted that the key disposition needed for systemic transformational change is understanding the value and importance of implementing improvements across the organization (Duffy, 2012). This disposition helped to facilitate the adoption of the new reporting structure at Warby Parker. The firm recognized that if it was to improve the experiences of its doctors while enhancing its performance, it needed to address the needs of both the doctors and the store managers.
Standard 3.0 – Initiating Change
Initiating change is the third standard that constitutes transformational change management. Having a solid rationale for the adoption of change is the main knowledge area that is needed for the successful implementation of change (Duffy, 2012). In changing the reporting structure, Warby Parker was inspired by the need to provide an environment that enhanced the experiences and performance of its doctors. The firms aimed to ensure that its doctors were comfortable with the reporting structure. Therefore, Warby Parker had a solid rationale for the change implementation. One of the recommendations that Duffy offers regarding initiating change is that firms should seek the support of key stakeholders (Duffy, 2012). He contends that securing support is a key skill that all leaders responsible for initiating change should exhibit. Before changing the reporting structure, Warby Parker gained the support of the doctors and appealed to the store managers to fully embrace the new structure. Thanks to the support from all stakeholders, the new structure has been adopted seamlessly. An enthusiastic endorsement of change is the primary disposition needed for initiation of change (Duffy, 2012). This disposition was evident in how Warby Parker initiated change. There was agreement among all stakeholders that the old system was ineffective and needed to be replaced urgently.
Standard 4.0 – Assessing the Impact of Change
Before implementing change, firms need to conduct an assessment with the goal of determining the impact that the change will have (Duffy, 2012). It is only after it is established that the impacts of the change will be mostly positive that the change should be implemented. Warby Parker adopted this standard as it adopted the new structure. It understood that once in place, the new structure would enhance the training, recruitment and performance management of the doctors. Moreover, the firm predicted that the new structure would lighten the burden of the store managers thereby allowing them to focus on retail services. It is clear that the knowledge of the impact that the change would have on employee issues and its performance informed how Warby Parker integrated the change. Duffy identifies the ability to predict the extent of the impact of change as one of the skills that drive successful change implementation (Duffy, 2012). The leaders who spearheaded the adoption of the new reporting structure at Warby Parker were able to predict the outcomes that would result from the change. Following the implementation of the change, a significant improvement in the wellbeing and performance of the doctors has been witnessed. The skill of predicting the outcomes of the change was complemented by the disposition of careful planning. Duffy noted that as they implement change, firms should develop elaborate plans. Before changing the reporting structure, Warby Parker created a comprehensive plan that addressed such issues as the recruitment of the Executive Director who would be in charge of the doctors. Overall, the change initiation process at Warby Parker was based on a solid rationale and was facilitated by the elaborate plans that the company had developed.
Standard 5.0 – Facilitating Change
Facilitating change is the fifth standard that firms should adhere to when effecting change. The primary knowledge area needed for compliance with this standard is an understanding of the role played by bringing all stakeholders. In his exploration of transformational change, Duffy (2012) acknowledged that leaders should be able to articulate why change is needed and persuade stakeholders to embrace the change. The leaders of Warby Parker knew that the new reporting structure would not deliver the expected outcomes unless all the stakeholders recognized why the structure was needed. It is therefore not surprising that since its adoption, the structure has revolutionized the operations of the company. As regards the skills required for facilitation, Duffy observed that leaders responsible for change should be able to manage group dynamics (Duffy, 2012). This means that the leaders should ensure that all stakeholders pull in the same direction. Initially, there was some resistance to the new reporting structure. The resistance came from the store managers who felt that they were being stripped of their powers. However, following persuasion by the company’s leadership, the store managers understood that the new structure would lead to significant improvements in the company’s performance. In addition to the ability to persuade stakeholders to support change, the facilitation of change requires the disposition involving advocacy. Duffy recommended that leaders should be the loudest supporters and advocates of the change process (Duffy, 2012). The leaders of Warby Parker heeded this recommendation. They were in the forefront of reminding all stakeholders that to succeed, the company needed to reform its reporting structure.
Standard 6.0 – Developing Political Support for Change
Change implementation does not occur in a vacuum. It takes place in an environment that is shaped by stakeholders with varying interests. The sixth standard of change implementation stipulates that leaders should seek political support. Essentially, this standard reminds leaders that without the support of key stakeholders, change initiatives are bound to fail. To secure support, the main knowledge that is needed regards the strategies and measures that leaders can adopt to secure support. Basically, leaders should understand the complexities of gaining support. They need to know that different stakeholders have different needs and priorities. To gain support, leaders need to have the skill of navigating the different needs and demands of stakeholders. From the discussion this far, it is clear that the leaders of Warby Parker exhibited this skill. They were able to expertly satisfy the demands of the doctors while assuring the store managers that the change would not have negative impacts on their functions. Duffy felt that the disposition required for securing political support is staunch advocacy that leverages political strategies. Essentially, this disposition makes it possible for leaders to balance the different needs of different stakeholders. Since the firm was able to ensure that all the stakeholders were satisfied with the new reporting structure, it is clear that political support helped to facilitate the adoption of the structure.
Standard 7.0 – Expanding Mind-Sets
Narrow and basic perspectives are one of the impediments to successful change implementation. When stakeholders lack the perspectives needed to appreciate the need for change, firms can expect to encounter resistance in their efforts to implement change. The seventh standard of change implementation involves expanding mind-sets. In essence, this standard advises firms to challenge their stakeholders to adopt broad perspectives and understand why change is required. For the expansion of mindsets, knowledge on the necessity and impact of change is needed. As it pushed for the adoption of the new reporting structure, Warby Parker urged the store managers to recognize that without the structure, the company would continue to experience high rates of doctor turnover. Once they understood that the change was key to promoting the performance and operations of the company, the managers were quick to endorse the change initiative. Basically, the company succeeded in convincing the managers to think beyond their immediate needs and become more concerned with the overall effectiveness and success of the company. The skill that made the expansion of mind-sets possible was the ability of the company’s leadership to respond to concerns and issue assurances. As already noted, the line managers feared that when the new structure was in place, their authority would become diminished. In response to this concern, the leadership guaranteed that the new structure would simply allow the managers to focus on their core mandate. The skills that the leadership demonstrated were supplemented by the disposition of fairness. When the leadership responded to the concerns that the store managers raised, they essentially validated these concerns. They allowed the leaders to understand that their concerns were reasonable and that these concerns had to be addressed before the new reporting structure could be adopted.
Standard 8.0 – Planning Systemic Transformational Change
Planning is an integral component of change management. Thanks to planning, firms are able to ensure that all the resources needed for the implementation of change are available in adequate quantities. The eighth standard of transformational change management captures the importance of planning. According to Duffy, leaders have an obligation to create plans which enhance sustainability (Duffy, 2012). Warby Parker recognized that for its change initiative to proceed unhindered, an elaborate plan was needed. Knowledge on the complexities of creating plans which account for financing needs and ensure sustainability is among the resources that facilitated the change implementation at the company. The firm knew that in order for the new reporting structure and the subsequent employee management processes to take hold, sustainability had to be prioritized. Warby Parker sought to ensure that the momentum for the change would continue even after the implementation process. The key skill that facilitated planning is the ability to create a framework for the entire organization. Leaders at the company set out to ensure that the plan for the new reporting structure affected nearly all aspects of the business, from the operations of the doctors to the retail function. The disposition that aided the leaders in their quest for developing a detailed plan is their strong belief that endeavors which are not backed with elaborate plans often fail. Essentially, the leaders understood that failing to plan set the stage for failure.
Standard 9.0 – Demonstrating Disposition for Change Leadership
The success of any change initiative hinges heavily on leadership. For initiatives to be successful, leaders must demonstrate enthusiasm and lead other stakeholders in endorsing the initiative. For leaders to demonstrate disposition for change, the knowledge of the role that emotional intelligence plays is needed (Duffy, 2012). In essence, the leader must understand their own emotions and be able to respond to the emotions of others. The leaders at Warby Parker understood that the introduction of the new reporting structure would inspire strong emotional responses. Anger, disappointment, excitement and hope are some of the emotions that this change initiative elicited. It was upon the leaders to exploit and manage these emotions for the success of the change implementation process. In particular, the leaders needed to ensure that the disappointment and frustration that the store managers expressed did not threaten the initiative. To do this, the leaders relied on the skill of emotional intelligence. They demonstrated their respect and acknowledgment of the negative emotional responses of the store managers. These managers believed that the new reporting structure would undermine their authority. In response to this belief, the leaders moved quickly to assure the managers that while it was true that they would be stripped of some of their powers, their role in the organization would remain unchanged. By adopting a personal and sensitive approach to the concerns that the managers raised, the leaders managed to quell fears and secure support from the managers and other stakeholders. Additionally, the leaders relied on their disposition for emotional intelligence advocacy. While they led by demonstrating emotional intelligence, they also called on others to display this skill. For example, they encouraged the doctors to celebrate the new reporting system with magnanimity and grace and the understanding that the system caused frustration and anger among the store managers.
Standard 10.0 – Mastering the Art and Science of Systemic Transformational Change
The tenth and last standard that guides the implementation of change regards the integration of artistic and scientific techniques into the implementation process. Human resource concepts composed the main knowledge that facilitated the introduction of the new reporting structure at Warby Parker. The factors that affect employee performance are among these concepts. Warby Parker’s leadership acknowledged that it could not continue to ignore the pleas of its doctors for a change in the reporting structure. The doctors found it demeaning that they had to report to individuals with lower qualifications, training and education. As a result, a number of the doctors left the company. The firm knew that if it failed to respond to the important issues that the doctors raised, it would continue to experience high turnover. Other concepts that made up the company’s knowledge base included how to implement a change initiative that is unpopular with some section of employees. Overall, the knowledge that the company possessed allowed it to implement the change initiative while ensuring that all stakeholders were satisfied.
In addition to knowledge, disposition and skills played a critical role in the application of art and science to the change management process at Warby Parker. Incentivizing employees to support the initiative is the key skill that proved useful during the implementation process. As observed in a previous section, initially, the store managers were vehemently opposed to the new reporting structure. Using the skill of motivating employees, the company assured the store managers that the new structure would not introduce drastic changes. Instead, it would make it possible for the managers to excel in their jobs. Together with the disposition of sensitivity to employee needs and wellbeing, this skill helped the firm to persuade the managers and the doctors to support the change initiative. Instead of dismissing the concerns and fears of the store managers, the company responded to them respectfully and with a clear understanding that the managers are important stakeholders who help to drive profits.
In conclusion, Warby Parker serves as evidence that transformational change holds the key to company growth. Confronted with the need to improve the experiences of its employees, this firm adopted an innovative solution. The solution involved a new reporting structure that placed the firm’s doctors under the management of an Executive Director whose other mandates include training, recruitment and performance management. Initially, the store managers expressed their opposition to the new structure. However, following the intervention of the company’s leadership who assured their managers that the new structure would enhance their effectiveness, the managers became passionate supporters of the structure. In adopting the new structure, Warby Parker integrated the ten standards of effective change management. The standards concern a wide range of issues such as planning, securing political support, adopting scientific techniques, and demonstrating emotional intelligence. Since these standards drove the success that Warby Parker witnessed, other firms should adopt them as they implement transformational change.
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