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Lewin’s Three Stage Model of Stage lists the steps of
Unfreezing, Moving, and Refreezing. (Jones, George, Rock, & Haddad, 2010, p. 228) For a company to
recognize a need to alter their status quo they are most likely experiencing pressures
from their organizational environment. These challenges could be perceived as
due to the internal or external environment.
In the 1980’s Harley Davidson was
facing competition from their external environment, in the form of
Japanese-made Honda acquiring increased presence in the heavyweight motorcycle
market. (Kotha & Dutton, 1996) Recognizing a need
for change, Harley Davidson executives visited Honda’s production facility in
Ohio to observe and establish a “benchmark”. (Jones, George, Rock, &
Haddad, 2010, p. 227)
“[The Japanese]…were just better managers…and they
understood how to do manufacturing a hell of a lot better, with less inventory
and much higher quality.” John Bleustein (Kotha & Dutton, 1996)
Recognizing the need for change is the first and most
important step. When you have established the strategy to be implemented, the
next most important step is to get everyone in the company invested. “You must
create a culture of trust and commitment that motivates people to execute the
agreed strategy – not to the letter, but to the spirit.” (Jones, George, Rock, & Haddad, 2010, p. 213)
The management at Harley Davidson understood this. “First
Harley Davidson’s senior executives reasoned that full participation (and
ultimately support) of employees at all levels was the key to successful
improvement of both the product quality and the production process.” (Kotha &
Dutton, 1996)
Harley Davidson’s strategy for change implemented a “Productivity
Triad”. (Kotha & Dutton, 1996) Their strategy involved
a version of Honda’s Just-In-Time inventory control system, increased employee
involvement, and “Statistical Operator Control” enabling employees to track quality
issues. (Kotha & Dutton, 1996)
Having implemented change, the move can then be “Refreezed”. (Jones, George, Rock, & Haddad, 2010, p.
228)
One excellent way to validate a change is through increased profitability.
Harley Davidson illustrated the benefits of changes implemented in the early
1980’s when “productivity improvement went up over 50%”, and “US revenues
increased over 80%” with “profits increased by $59 million” and a “97 percent”
increase in the heavyweight market segment. (Kotha & Dutton, 1996)
Examining the example of Harley Davidson in the 1980’s,
important aspects of managing change are; recognizing the need for change,
involving all employees in the process, and validating change when established.
References
Jones, G. R., George, J. M., Rock, M., & Haddad,
J. (2010). Essentials of Contemporary Management Third Canadian Ed.
McGraw-Hill Ryerson.
Kotha, S., & Dutton, J. (1996, July 3). Transformation
At Harley Davidson. Retrieved September 01, 2012, from Stern School of
Business New York University:
http://faculty.bschool.washington.edu/skotha/website/cases%20pdf/hd.pdf
