In the present scenario, change has become very essential for the success of organization. Changes at frequent intervals improve the overall productivity of businesses and also make them more competent. At the time of implementing changes, there are various tools and techniques which can be used by organizations (Kaplan, 2005). The present study is based on LG electronics which is a multinational electronics company having its headquarter in South Korea. This report depicts seven key considerations which need to be considered at the time of implementing changes in LG. In addition to this, it also highlights three generic strategies that can be used while making changes or transformation in the organization.
Executing change: Seven key considerations
Seven key considerations developed by McKinsey can be used to execute required changes in LG electronics. Furthermore, it can be stated that these considerations consist of some hard and soft elements which will support the brand in implementing change and getting the best possible outcome of the same. The main objective of these considerations is to increase efficiency of businesses and make change successful (Armenakis and Harris, 2009). Structure, strategy, skills, staff, style, shared values and systems are the seven key components. It can also be stated that these elements are further divided into hard and soft elements. Strategy, structure and system fall in the category of hard components as their identification is very easy. On the other side of this, skills, staff, shared values and style are soft elements and are difficult to manage.
At the time of implementing changes, LG electronics is required to focus on its overall strategy. This means that an effective plan needs to be developed in order to execute changes. Furthermore, it can also be argued that rather than focusing on short term objectives, LG electronics should develop its strategy by looking at long term perspective. Along with this, organization needs to align other considerations with its strategy in order to make it more effective. Another element which needs to be considered by LG electronics is structure which depicts the entire organizational chart along with the information that who will report to whom. While executive change, LG electronics is required to develop an effective structure. This will result in the division of authorities and responsibilities among all its workers during the process of change (Higgins, 2005). The brand can also make changes in its overall structure if it is not suitable in order to execute change. On the other side of this, LG electronics needs to identify its main systems which are running the entire businesses along with their control. At the time of making changes, LG electronics needs to take care of the fact that all its systems do not get negatively affected by all those changes. In addition to this, managers of the organization are required to focus more on its system at the time of carrying out changes. It can be argued that skills of people within LG electronics will play a crucial role in making and managing changes. This means that all its employees should be capable enough to resists or adapt the transformation. Further, organization needs to focus on increasing overall skills and knowledge for employees regarding change management (Ovidijus Jurevicius, 2013). Another key consideration is related staff that is people within the organization. LG electronics needs to take care of the fact that at the time of executing change, effective change agents are available.
Furthermore, these are the people which initiate and take responsibilities to implement change and make it successful. For this purpose, LG electronics can carry out activities such as hiring and selection of new employees.
Along with this, business entity can also provide training and development sessions to existing workers in order to make them capable of resisting the change. LG electronics also requires to focus on the style which it is using during the process of transformation. Furthermore, it can be stated that top level management of LG electronics needs to use participative style of leadership while carrying out changes. According to this style, employees will be encouraged to present their views and opinions regarding how changes can be implemented and managed in the best possible manner. Benefit of using participative style is that it will create satisfaction among employees of LG electronics. Along with this, it will also help workers to get solve their issues and problems.
Other than this, it can be stated that, shared values is also an important consideration which needs to be taken care of. It consists of all values, norms and standards that determines how people in organization are expected to behave (Carter, 2008). At the time of executing change, LG electronics needs to develop appropriate values for its employees. Furthermore, those values should enhance the overall motivation level and morale of people in the org