Problem Diagnosis
New York Bakery had filed for Chapter 11 of bankruptcy on the February of 2009. When the management of the company made this announcement,, around 200 staff members of the company including most of the senior management personnel had been laid off. The main reasons due to which the company had reached to this situation was the recent implementation of the ERP package within the organization which created a lot of change within the organization and the internal conflicts among the people of the different departments started to derail the implementation and the proper functioning of the new ERP package. As a result of this disruption, the management of the company decided to stop the ERP package and return to the old manual way of working. However, the company did not recovered then as the global crisis had hit the retail sales of the company in the year 2008. The sales growth rate has turned negative at about 25% and the company had recently incurred a net loss. The company had also broken its debt covenants and as a result the company filed for Chapter 11 bankruptcy. Now a new Chief Information Officer had been hired who has called one of the technical consultant, Patrick Blanshard to place the new payroll software system in the company which was previously abandoned. The consultant has to identify all the possible sources of the resistance and also create counter measures and an assist the CIO about the future actions he should take once he leaves after the implementation of the new payroll software system in the company.
Sources of Resistance
When the technical consultant reaches at the company he will have to analyze the current situation of the company. Finally, after analyzing the current situation of the company the technical consultant will open up on his plans of implementing the new payroll software system within the organization which was also implemented previously by the management of the company but had resulted in internal conflicts, decreasing orders, miss communications and as a result the ERP package was derailed. However, currently, the company is on the verge of bankruptcy. Therefore, the implementation of this new payroll software is necessary for the company so that more layoffs could be avoided and that the operations of the company become smooth. The company could now overcome its bankruptcy dilemma only if the company is able to recover 50% of the total accounts which the company had lost last year and no further layoffs are made. Thus, once the plans for the implementation of the new payroll system software are conveyed then there would be many parties that are going to resist against this change. First of all, the employees that are working in the finance department would resist against the implementation of the new payroll system since it would change the budgeting process. The finance managers would also lose control over the operations of the finance department and a gap would be created between the communications among all the department heads of each of the business units. The third resistance would come from the bakeries of the company as they would be reluctant to implement the new payroll system because they prefer the transfer of the salaries by manually printing the individual cheques as a delay of few hours in receiving the cheques made most of the front line staff of the company upset. These all are the possible sources of resistance when the technical consultant would go about to implement the new payroll software system at the New York Bakery Company.New York Baker Case Solution
Recommended Actions by Patrick Blanshard
Once Patrick Blanshard, the technical consultant reaches the New York Bakery he will have to perform an in-depth analysis of the company’s situation and then devise a suitable strategy to convey the change that was about to take place within the organization. He has the time period of two weeks and it is during this two week period that he will have to implement the change or initiate the change process within the organization. Some of the recommended actions that he should take during his two weeks period are as follows:
In order to implement the change and overcome the resistance of the people of the organization, Blanshard should adopt the change management approach as laid down by the Levin’s change management process. The first step would be of unfreezing. During this stage, all the personnel of the organization will need to be prepared to accept the change and they will have to be informed that the current practices off doing work cannot continue for the future. All the beliefs, behaviors, attitudes and values will have to be changed starting from the fundamentals................
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