Change Managment Models:

Failed Organizational Change

Change Management Models: Failed Organizational Change 2

Table of Contents

Introduction............................................................................................................................................. 3
Theories.................................................................................................................................................... 3
Satir’s Process Change Model...................................................................................................................... 3
Kubler-Ross Stages of Change Model......................................................................................................... 4
Kotter’s Phases of Change Model................................................................................................................ 5
Prosci Change Management Model............................................................................................................. 6
Lewin’s Dynamic Stability Model................................................................................................................ 7
Failure Organizational Change........................................................................................................... 7
Blockbuster...................................................................................................................................................... 8
Motorola........................................................................................................................................................... 9
Kodak................................................................................................................................................................ 9
Conclusion............................................................................................................................................. 10
References............................................................................................................................................. 11
Change Management Models: Failed Organizational Change 3

Introduction
Over the years organizations have undergone several failures towards how the future success

of their processes continue or end. From not adapting to new technology that could enhance

services of the business to falling short of the direction of the new age generation, companies

have failed to Change and cost them time and investment. Change process theories where

designed to encourage thriving organizations to improve upon their current processes in efforts

to reduce failure organizational change.

Theories
The five models following are examples of the theories. These theories were specifically

designed to address different elements of change within processes.

Professional Change Model Theories:

• Satir’s Change Process Model

• Kubler-Ross Stages of Change Model

• Kotter’s Phases of Change Model

• Prosci Change Management Model

• Lewin’s Dynamic Stability Model

Satir’s Process Change Model

The Satir Change process model, designed

by Virgina Satir, is known to be one of the several

tools created to improve communication processes

and promote organizational growth. This

Change Management Models: Failed Organizational Change 4

particular model focused on what the interpretation of the thought of change is taken as. When

people unleash the thought of change within the organization it is most often moves to doubts,

panics, and a reduction in productivity (Poplos, 2007). It seems as if anything outside of the

“Norm” will create chaos in the process in fear that something new will have to be adopted.

Conversely, according to Satir’s model once the organization is able to get better acclimated

from training, experience, and guidance the productivity will start to return back to normal. As

in any process it does take time for the new operations to be fully adopted. Once the

organization is adjusted the organization has reached status quo and is back to normal.

Kubler-Ross Stages of Change Model

The Kubler-Ross Stages of Change Model, designed by Elizabeth Kubler-Ross, describes

the process of how people will deal with the grief in the work environment specifically catering

to work. Five stages have been identified are

denial, anger, bargaining, depression, and

acceptance (Poplos, 2007). The initial stage is

the denial stage. This stage raises statements like

“This cannot be real”. Not accepting the fact that

change is occurring. For example, when a transit

organization move towards adding the rail

component. This would be considered to be a

major change in a transit organization to add a completely new mode of transit to the picture.

The following stage is the anger stage. For example when the rail aspect is first thought of

employees immediately realized that there would be more duties to fulfill or even having to

reduce duties of certain positions due to lack of knowledge of the new processes. Next is the
Change Management Models: Failed Organizational Change 5

bargaining stage, which is when one thinks if they have to change at least let them make it

through if not anything else. For example, making sure pay is proper, provide training, or

minimal changes if possible can all be apart of a bargain. The depression stage is next of the

Kubler-Ross Model. This is the point when the system or change seems to be a disappointment.

Here there is doubt that the system will work, that it’s not simple enough, or it’s too much work

to handle. Ultimately, the last stage of acceptance is what brings this model together.

Acknowledging that everything will be ok and everyone will get use to what the new functions

of the system are will help accept model. In most processes it will take time to get use to a new

system or way of operating; however, like any new situation there will be a time where the

situation will become the norm.

Kotter’s Phases of Change Model

The Kotter Phases of Change Model, designed by John Kotter, deals with eight phases of

change (Poplos, 2007). The first for the eight phases is establishing a sense of urgency. This

consists of the examination of markets and

competitive realities. In addition it

identifying and discussing issues, potential

issues, or defined opportunities. The

second phase is forming a powerful

guiding coalition. Here you would

assemble a group with the strength to lead

the change process. This will encourage

the group to work together as one to fulfill

the goals proposed. The Third phase is

Change Management Models: Failed Organizational Change 6

creating a vision. Therefore, creating a vision to help the change effort to help develop strategies

for achieving the vision. After the vision is created, that very vision will need to be

communicated. To do this its urged to use ever vehicle possible to communicate the new vision

and strategies. Do not set the process short of any means of communicating. By teaching new

behaviors will set an example of the guiding coalition. Phase five deals with the empowerment

of other to act on the vision. Ultimately, setting the bar for the vision selling it to get others to

adapt to the change. Taking measure to change systems or structure that have a major

discrepancy towards the vision. Encouraging risk taking and nontraditional ideas, activities, and

actions with help guide and convince the processes success. Phase six is planning for and

creating short-term wins. This is simply planning for visible performance improvements. Also

these improvements would need to be created in this phase as well. By acknowledging and

rewarding employees involved in the improvements will help with encouragement. The seventh

phase is consolidating improvements and producing still more change. This phase analyzes and

improves upon the processes. Taking what has been discovered during the processes and

evaluating the need to continue or improve upon is one way of analyzing the process. Another

step to this phase is recruiting and advancing employees to fit the need of the new requirements.

Lastly, Institutionalizing New Approaches to the change is the eighth phase by Kotter. To give

understanding between the new behaviors and corporate success this phase develops the means

to ensure leadership development and succession is fulfilled.

Prosci Change Management Model

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A nationally recognized research and development

company called Procsi designed the Prosci Change

Management Model. The company specializes in bench-

marketing change management best practices

(Powerpoint). Prosci performed research on over 1000

organizations for eight years. This model has flexible and

scalable parts within for customizing organizational

change management functions towards the particular organizational change being executed. The

three phases to the Prosci Model are preparing for change, managing change, and reinforcing

change. A system used to work though change is called ADKAR. ADKAR stands for

Awareness, Desire, Knowledge, Ability, and Reinforcement.

Lewin’s Dynamic Stability Model

The Lewin Dynamic Stability Model,

designed by Kurt Lewin, references

unfreezing, changing, and refreezing.

Unfreezing refers to ensuring the employees

preparation for change. Changing represents

the execution of the intended change. Lastly,

is the refreeze step, which will assure that the

intended change is adopted and that will become permanent. This is a controlled method of

merging an organization through a change. Forecasting what the process would be before it

occurs is always a good logic in this model (Poplos, 2007).

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Failure Organizational Change

Failure organizational change is when an organization fails to improve upon or advance

within functions. Several organizations have failed to move with changes in the industries.

Decisions like this will hurt the organization and could cost them a lot of money. The following

three organizations did just that and failed organizational change.

Blockbuster

Blockbuster was once a leader in the video rental chain that survived the change from

VHS services to DVD service. The store seemed to win the market over; however, when the

market started on the next big change blockbuster failed to adapt. Netflix stormed through with

sending videos through the mail. In addition, phone and cable companies advanced with video

on demand. Blockbuster remained in place and did not

budge on the advancement. Not even

when Redbox started renting videos from vending

machines for only $1 did blockbuster make a move

(Newman, 2010). In todays society we have mobile devices and computers that have video

streams making blockbuster’s conventional ways of video distribution are outdated. Blockbuster

had to close several stores and ultimately went bankrupt in 2010 (Satell, 2014).

If Blockbuster would have used the Prosci Change Management Model to prepare to

move towards more innovative processes of video distribution it may have had a chance of

survival. By using the Prosci model to capture awareness of what changes where being made in

the market place. The company would need to desire to know how they could move to the next

big thing. The start of the change processes would be to prepare for the change by studying the

market place to have knowledge on what to move towards. Once there is a goal for which
Change Management Models: Failed Organizational Change 9

direction the company will go in, DVD vending Machine, you would manage it. The change

would include the option of in store returns to keep traffic in stores until you completely adjust to

vending machines and would be the process of reinforcing change. At this point Blockbuster

would had been competitively in the market and still up-to-date with the technology.

Motorola

From car radios and two-way radios to building and selling the world’s first mobile

phone Motorola proved to be an example of a success. In 2003,

Motorola introduced the Razor phone one of the biggest selling

mobile phones (Newman 2010). What Motorola didn’t do was

focus in on the smartphone competition that provided email and

other data capabilities. The new industry initiates like LG, Apple, and Samsung made sure to

address the smart phone capabilities (Newman, 2010). This is yet another failed organizational

change that could have been done differently using a change model.

Motorola could have benefited from Lewin’s Model. First by the unfreezing process

know for preparing for the upcoming change. Once Motorola notices that so many organizations

where moving towards the smart phone era they need to study what features where more popular

and focus there which is the change process. Once features implemented you have the

opportunity to focus on that area and master it. Leading into the refreeze part of the process that

reinforces the popular features and assures effective understanding of the new change.

Kodak
Change Management Models: Failed Organizational Change 10

Kodak dominated for almost a ten years commercializing the camera. The company

would break through with the Brownie camera in 1900, Kodachrome color film, the hand held

movie camera, and the easy-load instamatic

camera (Newman, 2010). At that time no one could

touch Kodak and how well it mobilized the

photographic moment for the world. Kodak began

to run short during the digital photography

phase. This was when printers, software, file sharing, and third party apps were readily available

and would slow Kodak’s productivity. This would have to be the moment when the company

should realize change is needed. Kodak tried expanding into pharmaceuticals, memory chips,

healthcare imaging, document management, and may other fields that just wasn’t the needed

direction (Newman, 2010).

The Prosci Model would benefit Kodak for this situation. By starting off by analyzing

what competition is present and what they target if key to understanding what direction to

implement. This is how they would prepare for the change. For Kodak, the company needed to

focus in on improving digital photo technologies that could simplify display timing. This is

considered to be the managing of the change. Lastly, continue to advance the current processes

and stay aware of changing technologies to reinforce change on a more consistent basis.

Conclusion
Overall, Organizational Change Management is essential to any part of the

implementation process. The main goal is to help or attempts to get all to understand that change

is the key to success in any project. Demonstrating how to move a project or process from the
Change Management Models: Failed Organizational Change 11

normal practices to its highest potential using change. In doing so drawing from the fields of

psychology, sociology, business administration, economics, industrial engineering, and the study

of human and organizational behavior (Poplos, 2007). An effective model will detail as much as

possible to assure success. As long as change and project management work together the project

will be a success and adoption of the change will be seamless.

Change Management Models: Failed Organizational Change 12

References

Newman, R. (2010). 10 Great Companies That Lost their Edge.

http://money.usnews.com/money/blogs/flowchart/2010/08/19/10-great-companies-that-

lost-their-edge

Poplos, C. (2007). Organizational Change Management. [PowerPoint Slides]. Retrived from

https://wilmu.blackboard.com/webapps/blackboard/content/listContent.jsp?

course_id=_424769_1&content_id=_8310443_1&mode=reset

Satell, G. (2014). A Look Back At Why Blockbuster Really Failed And Why It Didn't Have To.

http://www.forbes.com/sites/gregsatell/2014/09/05/a-look-back-at-why-blockbuster-

really-failed-and-why-it-didnt-have-to/#796b9748261a