Change Management

Change management is a systematic approach to dealing with change, both from the perspective
of an organization and on the individual level.
Background of change
The organizations who have failed to cope with the change have crumbled under the feet of time
either disappearing or being acquired by other companies. For example skybird, tucker
corporation, wirgin, tohatsu, clover, British satellite broadcasting, world champion wrestling,
archandor, and most recently general which filled chapter 11 bankruptcy. These organizations
were unable to recognize the change in the environment and were rejected by the environment.
Need for strategic change in General motors
General motor is a fallen giant. Glory of the past from being a great market leader to bankrupt
company General motors has come a long way. In 1980s GM was the top car manufacturer in the
USA until the arrival of the Japanese cars. The Japanese sold cheap and better cars. GM failed to
realize the change in the industry and technology and constantly lost market share to the
Japanese companies. Even with government support the company filled chapter 11 bankruptcy in
2009.The strategies of the Japanese and GM can be compared with each other and get to what
GM needs to do in order to get its former glory.
Kotter's model for change for General Motor
Kotter gives a model of change in the organization in which the stakeholders are empowered to
make change for themselves. I shall use this model to explain how GM can bring about change in
the organization with the help of its stakeholders.
Kotter 8-step change model
Kotter introduced the 8-step Change Model to improve an organizations ability to change and
to increase its chances of success. By following this step plan organizations can avoid failure and
become adept at implementing change. As a result, organizations no longer need to adjust the
changes and they will increase their chances of success.

Step 1 Create a sense of urgency

This first step of the 8 step Change Model is the most important step according to Kotter. By
making employees aware of the need and urgency for change, support will be created. This
requires and open, honest and convincing dialogue. This convinces employees of the importance
of taking action. This could be accomplished by talking with them about potential threats or by
discussing possible solutions.
Step 2 Create a guiding coalition
It is a good idea to establish a project team that can occupy itself with the changes the
organization wants to implement. This group manages all efforts and encourages the employees
to cooperate and take a constructive approach. Preferably, this coalition is made up from
employees working in different jobs and positions so that all employees can rely on the group
and identify themselves with the team members. Because of the open character, the groups can
also function as a sounding board, which enables an open communication.
Step 3 Create a vision for change
Formulating a clear vision can help everyone understand what the organization is trying to
achieve within the agreed time frame. It makes changes more concrete and creates support to
implement them. The ideas of employees can be incorporated in the vision, so that they will
accept the vision faster. Linking the adopted vision to strategies will help employees to achieve
their goals.
Step 4 Communicate the vision
The most important objective of step 4 of the 8 step Change Model is to create support and
acceptance among the employees. This can only be achieved by talking about the new vision
with the employees at every chance you get and by taking their opinions, concerns and anxieties
seriously. The new vision must be fully adopted across the entire organization.
Step 5 Remove obstacles
Before change is accepted at all levels, it is crucial to change or, if necessary, remove obstacles
that could undermine the vision. By entering into dialogue with all employees, it will become
clear who are resisting the change. To encourage acceptance of the vision by the employees, it
helps when their ideas are incorporated and implemented in the change process.
Step 6 Create short-term wins

Nothing motivates more than success. Create short-term goals so that the employees have a clear
idea of what is going on. When the goals have been met, the employees will be motivated to fine
tune and expand the change. By acknowledging and rewarding employees who are closely
involved in the change process, it will be clear across the board that the company is changing
course.
Step 7 Consolidate improvements
According to Kotter many change trajectories fail because victory is declared too early.
However, change is a slow-going process and it must be driven into the overall corporate culture.
Quick wins are only the beginning of long-term change. An organization therefore needs to keep
looking for improvements. Only after multiple successes have been achieved, it can be
established that the change is paying off.
Step 8 Anchor the changes
The last step of the 8 step Change Model. A change will only become part of the corporate
culture when it has become a part of the core of the organization. Change does not come about
by itself. Values and standards must agree with the new vision and the employees behaviour
must provide a seamless match. Employees must continue to support the change. Regular
evaluation and discussions about progress help consolidate the change.
Implementation of 8 step of changes in General Motor
Step 1: Create urgency
GM it is not very difficult to paint a grim picture because the next step to bankruptcy is
liquidation. The decline in the performance of the company has been a question mark for a long
time now. So in GM people are ready for change and stakeholders support the management. Now
there is need for discussions so that the ideas and the wills of the stakeholders can be
incorporated in the change process.
Step 2: Coalitions
General Motors they have to find leaders in order to bring change. Recognition of the people
who will help GM to evolve and to accept the changed processes is necessary, if it wishes to
make any type of change in its strategy.

Step 3: Vision for change

General Motors the mission statement is quite clear "G.M. is a multinational corporation engaged
in socially responsible operations, worldwide. It is dedicated to provide products and services of
such quality that our customers will receive superior value while our employees and business
partners will share in our success and our stock-holders will receive a sustained superior return
on their investment."
But unfortunately General Motors has not been able to deliver. The vision of the General Motors
needs to be communicated effectively through the organization. Every stakeholder needs to
believe in the mission statement of General Motors.
Step 4: Communication of vision
General Motors the management should take responsibility of communicating process of change
through the organization. A process of change developed from the input of stakeholders is easier
to communicate back.
Step 5: Remove obstacles
In General Motors the inner management has failed to provide change in the organization. The
change in GM can be induced from the outside; perhaps a change agent will help GM over come
change barriers. Another good way to bring about change is to award the people who embrace
the change.
Step 6: Create short term objectives
General Motors that management need to step up and divide their long-term objectives into the
short term goals. The management should make the stakeholders believe that they are capable of
changing the business for the better. The most important stakeholder of GM is the government.
The government needs to know that that GM can stand on its feet, for it to bail out the company.
Step 7: Build on the change
The management of General Motors should not stop at making the government believed that they
deserve a bailout, but should make efforts to build on the changed processes.
Step 8: Change in corporate culture
General motors will need to change the culture and introduce a fresh method to succeed in an
unattractive industry. At this point the employees of General Motor will not be motivated; the
management needs to bring faith back into the employees.

Recommendation
A. Production of the Right and Fuel Efficient Automobiles/Poor Product Lineup
B. To empower dealers, GM need to be more democratic and less controlling
B. Public Perception Improving
Conclusion
After facing the intense competition and bankruptcy the general motor now improved again the
company activities, and still the world largest car manufacturing company, the company has
gotten a change recently which has also improved the working condition of the company, but the
company will must see the weakness and public perception to increase the sale and market
shares. Before formulating any type of strategy the GM should make SWOT analysis to gain