Introduction
The conference model describes an organizational change technique that gets the entire system in a room. When all people are in a room, it becomes possible to develop a critical mass that is necessary for the change effort. The objective of the model is to involve more people in the entire process and increase the planning time while minimizing the implementation time. The total time for the planning and implementation is greatly reduced because most of the employees were involved in the change process and they will be less likely to resist the changes (Axelrod, 1992). The model encourages organizations to involve more employees in the change process so that they can influence the paths or directions of change. The report will review an article regarding the conference model, its implications and recommendations and then apply the principles to a case example.
Review of the Article
The Conference Model is made up of four elements: implementation, the enabling element, walkthroughs, and Four conferences (Axelrod, 1992). The enabling environment is made up of the data assist team and the steering committee. They control the program to ensure it is implemented as planned. The four conferences include the organizational conference, the visioning conference, the technical conference, and the customer conference. During the visioning conference, all the participants evaluate the current state of the company, its history, and develop a future or vision for the company. The customer conference allows the participants to evaluate the internal and external customer requirements. In the technical conference, the participants evaluate the flow of orders in the company and the major variances or problems in the process. In the organizational design conference, the participants create a new organization according to variance control, vision, supplier’s needs, and customer ’s equirements (Axelrod, 1992). The walkthrough meetings involve the entire organization including the stakeholders or employees who may not have attended the meetings so that they can share the findings and results of the conference model. During the implementation process, new organizational units can create their organizational culture.
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Figure 1 showing the Conference Model.
The model utilizes sociotechnical designs and principles. The conference is often made up of company stakeholders assembled from all departments and levels. The objective of the meetings is to analyze certain problems or issues from different viewpoints, acquire new skills or learn from each other, and then create a common ground. During the process, the participants build a common data collection base and then evaluate the data from various perspectives. The model was used by the Hudson Division that has about 200 employees. All their 20 managers and supervisors took part in the process while hourly employees could participate voluntarily. The company came up with about 60 to 80 participants whose membership was determined by experience and departments, and they took part in designing the new organization (Axelrod, 1992). Due to their involvement, they gave inputs in the new organizational design and influenced the final decisions. Each conference lasted about two days. The conferences also acted as the data collection base.
After the conferences, they designed a new blueprint for Hudson Division. The process became institutionalized, and they preferred conference when faced issues during the implementation process. After each conference, the departmental representatives could meet and make commitments regarding how they will deal with certain issues and set timelines for the implementations. The commitment allowed employees to gain momentum despite the fact that the process was still incomplete (Axelrod, 1992). The conferences offered a lot of data and generated adequate energy to solve the issues at hand. The commitment process allowed employees to use their energy constructively without affecting the entire process. Some problems were solved before the fourth conference. All in all, the company saved adequate time in implementing the desired changes because more employees participated in the model. Therefore, they understood their roles in the change process and offered minimal or no resistance.
Implications and Recommendations
The organizational change affects people within not only the organization but also the people outside the company such as suppliers and customers. Company staff, management, and executives should adjust to the new processes of involving all stakeholders in the change management process. The change process also affects clients, vendors, and business partners. Implementing a successful change management process needs involvement for every level in the organization including employees because they are the most valuable asset in every company. Company staff is essential in implementing a smooth transition for all stakeholders from the redundant policies to the new and efficient policies. All companies undergoing change management such as Hudson Division should have an outline of how the proposed changes will affect all stakeholders including employees and customers. The outline should include a timeline of how the changes will be implemented.
Application to Case Example
A few years ago, Wells Fargo was accused of opening over one million fraudulent accounts without their customers ’ consent. Some of the regional managers encouraged their subordinates to open up new accounts so that they could beat their annual targets. Some of the targets were unsustainable, but the community banking unit could not adjust their targets. After the scandal was made public, the board accused the management while the management accused the unethical employees. The toxic corporate culture in Wells Fargo encouraged employees to commit various unethical behaviors so that they could achieve their annual targets (Verschoor, 2016). The company fired over 5000 employees, but the unethical behavior were only the symptoms of their negative corporate culture. They should have investigated the causes of the fraud while finding new techniques for resolving their problems. Wells Fargo required an efficient change management process such as the conference model so that employees could explain their point of view.
The community bank unit had set untenable targets that could not be achieved. Ultimately, the regional heads encouraged their subordinates to open new accounts without clients’ consent. The company was fined over $185 million because of their illegal activities. However, despite the heavy fines, they still faced other criminal and civil suits. Furthermore, after opening the fraudulent accounts, clients could receive unexpected lines of credit, debit or credit cards, and unanticipated fees (Verschoor, 2016). The scandal wiped off about $16 billion of their market capitalization, and it cost their company about $400 million. Furthermore, the Federal Reserve imposed various sanctions on the company leading to additional losses. The bank was barred from increasing their total asset size until they could prove they had improved their controls and governance.
Between 2011 and 2016, they fired over 5000 employees. However, before making the decision, they should have had a conference where they should have evaluated the entire scandal from both the employees ’ and management’s perspectives (Verschoor, 2016). Unfortunately, the board relied heavily on the management's perspectives, and a large number of employees lost their jobs. They should have heard productive meetings wi th all stakeholders so that they could come up with policies that would improve their corporate culture through change management. The untenable sales policies should have been reviewed so that employees could have achievable goals (Doppelt, 2017). The company mis-sold insurance to over 570000 clients while more than 10000 mortgage clients encountered unanticipated and improper fees for missing their unexpected deadlines. Such misconduct should not be allowed in any bank, especially Wells Fargo , b ecause of their huge customer base.
To solve the problem, they should have formed a data assist and steering committee for the company that would implement the Conference Model. The participants should include all stakeholders in the company. The management and employees should propose a new design for the company including its strategic directions in the future. They should also suggest solutions to the current toxic corporate culture. After the conferences, they should come up with a common ground regarding the issues. The solutions should include how to deal with the causes of the unethical behavior and the actions that should be taken against the affected employees (Doppelt, 2017). Furthermore, it should address how the bank will prevent similar behavior from recurring in the future. The company should also consider compensating all the clients who experienced unanticipated fees and unexpected lines of credit, debit or credit cards.
Conclusion
The report reviews an article regarding the conference model, its implications, and recommendations and then applies the principles to a case example. Although the Conference Model offers valuable techniques for managing change, it should also include follow up activities to ensure the company does not revert to its undesired practices. Involving employees in the process is essential, but continued employee involvement in follow up activities is significant in maintaining and improving the gains. The company should continuously seek staff suggestions and opinions about how to improve the entire process even after the company has implemented the new company design (Hayes, 2014). The Conference Model was successful in Hudson Division, and it can be implemented in other organizations such as Wells Fargo to solve certain issues. The main advantage of the Conference Model is that it involves participants from all departments and levels thereby minimizing resistance to the change management. The entire model indicates the significance of involving all employees in the change management process.
References
Axelrod, D. (1992). Getting Everyone Involved. The Journal of Applied Behavioral Science: 28(4) 499-509.
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for business, government, and civil society : Routledge.
Hayes, J. (2014). The theory and practice of change management : Palgrave Macmillan.
Verschoor, C. C. (2016). Lessons from the Wells Fargo scandal: the latest ethics scandal to hit the banking world demonstrates the importance of ethical influences regarding company culture, risk evaluation, employee incentives, and more. Strategic Finance , 98 (5), 19-21.
