Lakeland Wonders Case Study

...

the greater company’s profits because the board’s annual revenue target. She would like let products enter the mid-market retail segment to increase market share. Hailstorm’s goal more likely a short-term goal and want to make it happen in a short time. She will face lots of challenges because her change planes related to Lakeland Wonders’ core value and traditional culture.

<Recommendation>: Hailstorm tried to push her two change plans happened in the short time. I would like to recommend her to slow down her change plans. She should communicate with senior VP to understand what is the most priority target for the company. Hailstorm is the first CEO that is not from Swensn’s family. She shouldn’t let employees and managers feel she was came to overthrew company’s tradition. Hailstorm could finish the new contract negotiation with the union before she keeps pushing her oversea outsourcing plan.

b. Leadership: Hailstorm took direct leadership at her new change plans. There were couple examples showed that she took decision making process by her own instead of let other management participate. She requested senior VP, design director, other managers and union leaders to do what she thought best for the company. She didn’t take VP’s concerns about shipment delay from offshore manufacture lines. She didn’t give a positive response to union about add third shift.

<Recommendation>: I would like to suggest Hailstorm to take more recommendation from senior managers and listen more feedback from frontline sales, the union, and design director. She should understand what they want, instead of throw out some new orders and push them to follow it without give them chance to listen their feedback. For example, Hailstorm could sit down and discuss with design director about what’s the difference between those two design firms and compare each firms’ strength and weakness, to find out the most suitable design firm for Lakeland Wonders’ future product. She shouldn’t preconception to set up her mind before any discussion. Currently, Hailstorm needs to build up trust relationship between she and managers. She could through management involved more with her decision-making process to build up a strong trust relationship.

c. Focus: Hailstorm focus on company structure and business system changes more than company culture, employee behavior and attitude changing. She wants to source offshore manufacture lines instead of work with the union to set up new contract to improve the local production. She wants to bring in new staffs to operate her change plans instead of communicate or train the current company staffs to support her plans.

<Recommendation>: I would like to suggest Hailstorm to understand Lakeland Wonders’ company’ culture and discuss with employees and senior managers to collect ideas that how they want Lakeland Wonders to be in the next five years. She could spend more time discuss with senior VP to understand his future vision about the company.

d. Process: Most of Hailstorm’s changes were more programmatic than detail oriented. She wants design director switch preferred design firm to a bigger and famous company (Sampsen Design). Hailstorm didn’t try to explain to design director about why the new design firm will better than the old firm. The reason let her made this decision because Sampsen Design earned more rewards. Hailstorm neglected the traditional long-term working relationship between mediocre design firm and Lakeland Wonders. Hailstorm laid out her entire company changing plan to push this long history company into another stage. However, she didn’t why and how those changing plans would suitable designed for this company. It seems like Hailstorm tried to push every change happen immediately, instead slowly emergent to get more understandings and communication to make it happen. The main reason made Hailstorm so rush on the change plans because she wants to make progress to meet the board’s annual target.

<Recommendation>: I would like to suggest Hailstorm to take a long-term process for those change plans. She could create a communication channel to let all employees know the company is slightly change to survive for the future high competitive environment. For example, before she practices the oversea out-sourcing plan, she could set up a meeting with union leader discuss about the cost comparison and influence for the future local and oversea production plan. Hailstorm could do the same meeting with her design director to understand the difference between her “famous” design firm and his “little” mediocre design firm.

3. Evaluate Cheryl Hailstrom’s handling of individual and organizational factors that affect change and resistance. Has she effectively handled these factors? Explain what factors, if any, she has addressed well. Explain what factors, if any, she has ignored or not addressed effectively.

Individual factors:

Hailstorm’s change plans were focus on managers and employees’ rational side. She set up a bonus scheme to the union, she tried to develop the new market and open a new offshore manufacture line. She wants design director follow her request to work with the new design firm for the new product. I can use the basic three-part framework from the Switch chapter to evaluate Hailstorm’s behavior.

Direct the rider: Hailstorm did set up the goal to let managers and employees to achieve. She also tried to use the new bonus scheme to let the union increase production. However, she didn’t success. The design director was the best example. Hailstorm should communicate more frequently with managers and employees to understand what were their concerns about her new plans and make adjustment.

Motivate the elephant: Hailstorm’s change plan didn’t affect employees’ emotional side. Hailstorm could let senior VP travel with her to the offshore factory to understand more details about out-sourcing. They also can meet up with Cecil at Kids & Company to understand the process of sourcing. The trip could also include employees because they could also compare the difference and learn what will be the future trends of manufacture.

Shape the path: Hailstorm could sit down with Swensn family members to discuss about what do they want and their future vision for Lakeland. Hailstorm needs Swensn family’s supports to maintain her change plans. After she get the support or agreement from the Swensn family, she can start to practice her change plans.

Organizational Elements Hailstorm addressed:

Symbols and signals: Hailstorm wants managers support her change plans and start to work with the new design firm. If managers not follow her path, she would like to