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c The Organization Development literature has directed appreciable attention at in being

able to lead and manage change. The major portion of the material is highly normative, advising
managers about how they should be planning and implements organizational changes. For
example, one study suggested that successful managers in ceaselessly changing organizations
should first; provide errands and duties clearly without any haziness and also set priorities in
such a way which includes freedom of working and communication in a extensive manner.
Second, find out the future working and trying a number of processes which is less costly; and
thirdly, the live projects ought to be made in such a manner so as to it helps the future projects of
the company to work properly and it must be analyzed and choreographed from time to time
intervals Traditionally the main focus of change management is on identifying sources that resist
the process of transition or change offers various procedures with the intention of know how to
be used in the direction of tackle the sources that resist transform. Most of the assistance done
recently have been able to help and contribute challenging thec organizations have now shifted
their locus of view or focus to creating a shift of focus on to vision along with being able to
handle the change or transition in the organizational formation or company along with being able
to achieve political support for them towards the change.

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³´organization development and change by Cummings & Worley´´, edition 8th page no. 197,
figure 10.1.

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The above mentioned activities contribute a lot to managing change successfully and
have been placed in the hierarchical order of how itc generally occurs in the organizational
makeup and thec way is performed in the organization. The first amongst the activities includes
initiating change by encouraging the members of the business and this helps the members ofc the
company to be able to deal with confrontation to change. Initially motivation creates critical
issue for change process because a lot of evidence indicates that people as well as the
organizations want to maintain a sense of equilibrium between the status of different employees
of different departments and levels and the transform must be built-in only when there are strong
powerful reasons on the way to execute accordingly. The next task to be done is considered with
the creation of vision in alignment with activities concerning leadership qualities. The sole or
main purpose of vision is with the intent of providing an objective telling the requirement of
change in the company both in at hand and the outlook. The next function includes the task of
gaining and acquiring support from the political authorities of the company. Organization
arrangement of all kinds are poised of powerful members as well as teams that can either retard
or help incorporate change and permission of the higher authorities to perform the amend. The
task which comes next is related to movement on or after the up to date state to the most wanted
level in the organization. It includes designing a format that is planned and helps in performing
the changes for working of the company during the change period. The next and the final activity
involve sustaining the flow for modify in a way that is being able which is needed to bring in and
combine the changes. Without vision, chances are there that change will be disorganized and
diffused.

Along with the fast moving change that has occurred globally changes become
unavoidable features of the existence of the organizational. But transition that happens within the
direction of an organization externally by the environment is quite different from the
revolutionize that is intended and built-in by the members of the association. The main motive of
Organizational development is to bring in changes in the organization in a planned manner in
order to be proficient of increasing its effectiveness and this organizational change is usually
brought by higher-ranking administrator of the association, in order to implement changes in any
company, certain frameworks are used as models that help to illustrate the actions that be obliged
to acquire position en route for commence flourishing change.

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*et us now discuss change that Microsoft Canada tried to implement in its organization by
implementing Strategic Change.

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Microsoft Canada is a subsidiary of Microsoft Corporation responsible for the

service, marketing and the sales of the full range of software goods, together with the Windows
working system, the workplace efficiency matching set, a variety of Net products, and the Xbox
game console. The organization marketed to a variety of segments, such as software application
developers, small and medium business and large enterprises, through a broad range of partners
that worked directly with the client organizations to install and optimize the software used. A
small service organization provided consulting support to clients with the partner.

Before 2001, Microsoft Canada had been part of North American subsidiary. Under
this structure, large US market was clearly the focus of attention from Microsoft server, desktop,
other software products. However, Frank Clegg, President of Microsoft Canada, argued that the
Canadian market was different and under developed. It had a different mix of customers that did
a United States, different competitors and different growth opportunities. Moreover, software
sales and personnel computers shipments as a percentage of markets size and growth were below
worldwide averages. These differences, Clegg argued warranted a specialized strategy.

As the fiscal year ended Clegg and his newly appointed Director of Strategic
Planning, Sandra Palmero, wanted to cease the opportunity to define a uniquely Canadian
strategy. Before becoming Director of Strategic Planning, Palmero had been Director of
Marketing and Corporate Communications in Microsoft Canada. There with Richard Reynolds,
her Senior Marketing Manager, they had planned and implemented a participative process of
strategic planning. Sandra conducted the OD practitioner who had worked with them and
contracted to design and implement a Strategic planning process for the Canadian organization.
Over a 2 month period, Sandra conceived of a series of workshops involving the Canadian
leadership team. This team represented a broad cross section of the organization including
representatives from legal staffs, human resources, service business and Microsoft consultant,
marketing managers, customer support and managers responsible for different segments of

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Microsoft business including enterprise customer, small and medium business, the Microsoft
Network and the Xbox.

The strategic analysis phase consisted of preliminary work by several members of

the Canadian leadership team as well as initial exercises during the first workshop. Member
of Canadian *eadership team each prepared an analysis of their respected areas of
responsibilities. For example, the enterprise sales manager provided historical growth rates in
the revenue, developed forecast for market growths and Microsoft¶s share, described current
levels of Customer satisfaction and technology road map of products being developed by the
Redmond headquarters organization. In context the analysis, Sandra joined hands with a third
party company dealing in investigatation that does the overall description of Canadian
information technology market. Finally a competitor analysis was performed to develop and
understanding of likely strategies, goals, and initiatives from key competitors such as IBM,
Sun Micro System, and Oracle as well as competitive threat posed by the *inux Operating
System Software.

During first workshop the Canadian *eadership team used the pre work data to
perform an environmental scan. They discussed, debated, and ultimately came to some
agreements about the trends affecting the organization. Based on that scan, the group
engaged in a vision and value formation exercise and set out an initial list of short and long
term goals. These activities let to several important decisions for new marketing
organizations. For example, the vision and values exercised produced important insight about
what the Canadian organization stood for, its uniqueness compared to the marketing
subsidiaries within the Microsoft Organization, and its strengths in competing as a Canadian
organization. The values also informed discussion about future goals and strategy to achieve
them. Importantly, the Canadian leadership realized that customer loyalty would and should
become a driving force for the organization. This realization led to passionate discussions
about the relative emphasis in the organization on revenues versus customer satisfaction and
loyalty. It also led to development of Big Hairy Audacious Goal (BHAG) that the members
of the Canadian *eadership Team believed would be challenging but achievable.

The first workshop ended with a number of assignments, unresolved issues, and
excitement about the future. In between the first and second workshops, members of the

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Canadian *eadership Team worked with their own organizations. Issues, decisions and
questions that were addressed within the Canadian *eadership Team were discussed
throughout the organization. The most important discussion concerned the Big Hairy
Audacious Goal and the relative emphasis of revenues and customer loyalty over the short
and long term. A consensus began to emerge that the right and proper strategy for Microsoft
was to argue for a slower growth rate in revenues the short term, invest in customer
satisfaction and then leverage that loyalty for a more secure stream of revenues in the future.

Frank Clegg shared his idea with executives and discussed revenue projections, risk
involved, the budget implications, and how the strategy aligned with corporate and other
marketing organizations initiatives. The result of these conversations became the subject of
opening discussions at second workshop.

The cautions but positive support from the corporate organization allowed the Canadian
leadership team to move forward on its strategic intent. In second workshop, the
organization¶s mission and values were finalized; year by year revenue goals were agreed
upon to achieve the Big Hairy Audacious Goal, and these goals were broken down and
assigned to specific groups and managers. Finally, key customer and partner loyalty
programs were established and outlined. Ownership for different initiatives was assigned and
a strategic change plan originated. Frank Clegg pressed the group on its decision to
emphasize customer loyalty and challenged the group with several scenarios that tempted
them to trade off satisfaction for revenue. These scenarios helped fix the Canadian leadership
team¶s commitment to their strategy.

The important part of the strategic change plan that came out was a discussion and decision to
tie the individual performance appraisals of Canadian leadership team as a whole also staked
their end of fiscal year bonuses to the achievement of customer satisfaction, instead of
revenue goals.

The strategic change efforts at Microsoft Canada are important for few reasons. First, the
Canadian organization¶s realization of the benefits of customer satisfaction and loyalty was
influential in moving the larger Microsoft Corporation to examine its values in this area.
Business Week reported on the changes Steve Ballmer was making in the organization; they

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reflected the increased importance of customer loyalty in Microsoft¶s strategy and structure
changes. Second, the organization learned how to organize a strategic planning effort. In the
second year since this effort began, Sandra Palmero did built a stronger strategic planning
organization and taken more and more responsibility for driving the strategic planning process.
Even as the corporate Microsoft organization was making important changes in its reporting
structure, business process, financial systems, the Canadian organization was able to adapt
using its own resources and knowledge. Finally, the Big Hairy Audacious Goal has become an
institutionalized part of the organization that drives thinking and decision making in the
organization.

In context with the case in hand we are suppose to work on a few task related to the
case in hand. Firstly, let us discuss the history of the organization in hand, which is was
founded in 1985, and it provides services together in French and English. It has its
headquarters in Mississauga and empowers people by great software- anytime, anywhere and
on any devise. Secondly, let us now discuss the circumstances that led the organization to
undergo strategic change. Frank Clegg argued that the Canadian market was different and
under developed and it had a different mix of customers. Thus it demanded for different
competitors and different growth opportunities. Another circumstance was that the
percentage of markets size and growth of software sales and personnel computers shipments
were below worldwide averages. These circumstances demanded a specialized strategy.
Thirdly, the type of change that was implemented in the Microsoft Canada was basically
strategically. The change has been incorporated in such a way that every aspect of the
organization starting from legal staffs, human resources, service business and Microsoft
consultant, marketing managers, customer support and managers responsible for different
segments of Microsoft business including enterprise customer, small and medium business,
the Microsoft Network and the Xbox were taken into consideration. The senior members of
the organization have tried its best to formulate and design the strategically change in such a
manner that it helps Microsoft Canada to increase its percentage market share and gain better
growth. Fourthly, in order to incorporate the strategically change into the organization the
involvement of every member of the organization is very necessary. The strategically change
was initiated by Frank Clegg, President of Microsoft Canada and Sandra Palmero, Director
of Strategic Planning. Sandra Palmero along with Richard Reynolds, her Senior Marketing

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Manager, had crafted and implemented a participative process of strategic planning. Sandra
conducted the OD practitioner who had worked with them and contracted to design and
implement a Strategic planning process for the Canadian organization. Fifthly, the methods
used in implementing the strategically change were basically workshops, assignments and
discussions of issues related to work. Canadian *eadership Team was formed by members of
various departments of the organization that were focused on developing and implementing
strategically change in the Microsoft Canada Organization. During the first workshop the
Canadian *eadership team used the pre work data to perform an environmental scan. They
discussed, debated, and ultimately came to some agreements about the trends affecting the
organization. Based on that scan, the group engaged in a vision and value formation exercise
and set out an initial list of short and long term goals. These activities let to several important
decisions for new marketing organizations. The Canadian leadership realized that customer
loyalty would and should become a driving force for the organization. A consensus began to
emerge that the right and proper strategy for Microsoft was to argue for a slower growth rate
in revenues the short term, invest in customer satisfaction and then leverage that loyalty for a
more secure stream of revenues in the future. Frank Clegg shared his idea with executives in
Redmond and together discussed the pros and cons, together with revenuec projections, risk
involved, the budget implications, and how the strategy aligned with corporate and other
marketing organizations initiatives. The result of these conversations became the subject of
opening discussions at second workshop. The cautions but positive support from the
corporate organization allowed the Canadian leadership team to move forward on its strategic
intent In second workshop, the organization¶s mission and values were finalized; year by
year revenue goals were agreed upon and these goals were broken down and assigned to
specific groups and managers. The important part of the strategic change plan that emerged
was a discussion and decision to tie the individual performance appraisals of Canadian
leadership team as a whole also staked their end of fiscal year bonuses to the achievement of
customer satisfaction, rather than revenue goals. Steve Ballmer increased the importance of
customer loyalty in Microsoft¶s strategy and structural changes and also the organization
learned how to organize a strategic planning effort. Microsoft organization has made
important changes in its reporting structure, business process, financial systems; the
Canadian organization was able to adapt using its own resources and knowledge. Big Hairy

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Audacious Goal has become an institutionalized part of the organization that drives thinking
and decision making in the organization. Finally, the main changes that have been seen in the
performance level of the employees getting better along with rise in the percentage of market
share which led to its growth both internal as well as external. Also, the Canadian *eadership
Team and the Big Hairy Audacious Goal was permanently incorporated in the structure of
the organization.

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Regularity is maintained in execution and decisions. The significant strategic decisions of the
company are taken by people in the upper pecking order of the company. This helps to take care
of authority of the stake holders. Stake holders have more advantage in this type of institutions,
set enjoy the right of being major fraction of the institution. But the last words that count are of
the higher-ranking executives of the institution. Costs manage and resourceful supervision is
assistance. The management team makes sure that the funds are used in precise way and at right
time.

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There are deficient in of growth and modernization in the company, most important the
hammering of competitive advantage. Another disadvantage is that the added are the number of
steps included in the seeking of permission; the slower the velocity of the activity gets in regards
so these levels drop off the competence of institution, to response in emergency situations, when
it is most essential at times. The enthusiasm of human resources drops for the reason that of the
lower level of jobs, errands and empowerment, so motivation for these employees must be
increased by some better practices, may be giving the authority or far above the ground level
designation in the company. The straight skin of technical group restricts the individual¶s
initiative.

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Managing transformation is an obligatory ingredient of Organizational Development.

Organization Development is concerned in relation to how inhabitants in an institute job

enhanced. The comprehension is basically derived from organizational manners, organization

hypothesis and management. . And are concerned with long-run sustainable hard work.

Ôc ³´Organization development refers to a long-range effort to improve an organization¶s

problem solving capabilities and its ability to cope with changes in its external

environment with the help of external or internal behavioral-scientist consultants, or

change agents, as they are sometimes called. ´´(Wendell French)

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management. The symptomatic element and its ethnicity. So to accomplish organization

development these three components are very indispensable for management to follow

and put into operation.

The process of Organizational Development is quite complicated and the completion of

the change process consumes a lot of time. The special approaches to the practice are

original identification,c data gathering, statistics feedback and altercation, actionc

scheduling and trouble solving, band building, inter group expansion and assessment and

pursue up.

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2.c Goal setting.
3.c Decision making, problem solving, and action planning.
4.c Conflict resolution and management.
5.c Managing interface relations.
6.c Superior- subordinate relations.
7.c Technological and engineering systems.
8.c Strategic management and long-range planning.
9.c Vision/ Mission formulation.
10.cOrganizational learning.

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The key stakeholders in Microsoft Canada can be people from any of the departments and
levels of the organizations. But in general, the following people are the stakeholders of
Microsoft Canada:c

1.c Financial analysts

2.c Business analysts

3.c Forecasting or sales individual contributors

4.c Controller

5.c IT specialists and administrators.

6.c *egal staffs

7.c Human resources

8.c Service business and Microsoft consultant

9.c Marketing managers

10.cCustomer support

11.cManagers responsible for different segments of Microsoft business including

enterprise customer. Etc.

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As discussed already it has been seen that the above cited stakeholders are the main

members of the Canadian *eadership Team and plays a very significant role in the successful

formation and implementation of Strategically Change in Microsoft Canada. The stakeholders,

most of whom are also the members of the Canadian *eadership Team have played important

role in the workshops, assignments, and discussions that was basically done to decide upon

implementing new strategically changes required by Microsoft Canada to achieve its long term

and short term goals.

Also in the beginning of this report we have discussed three different models that are

usually used in any organization as models for implementing and managing change. After going

through the entire case in hand it is seen that the Action Research Model best suits the

procedure in which implementation of strategical change was carried out in Microsoft Canada.

As the Action Research Model of change suggests, Microsoft Canada firstly, identified the

problem that the organization was facing and having done that it was discussed upon by the

experts of the organization and data was gathered from various sources to analyze the problem

in order to be able to provide with the best possible solution. Finally, The Canadian *eadership

Team acted as the Action team that helped to implement the solutions and bring in the Change

in Microsoft Canada. Thus, the above report is a good example of implementing and

supervising alteration in an association.

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44, figure 2.1.

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There are various types of change that an organization may implement.

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It is often remarked that the only constant thing in the world is Change and having said that in
today¶s so fast moving world and economy, every organization needs to implement change in
its working structure and structure to be able to deal with up with the changing environment.
Today, organizations basically go for a change in order to be up to date with the current world
and also are able to muddle through mounting competition; Alteration in the organization helps
the organization to attain better brand name and an increased market share. Also change in the
structure and working environment usually helps the organization to provide its employees to be
happy and satisfied working in the organization and give maximum effective result to the output
of the organization. Thus there may be a number of reasons that might have led to any
organization¶s decision to implement change in the organization. In case of Microsoft Canada,
Frank Clegg, President of Microsoft Canada, argued that the Canadian market was different and
under-developed and it had a different mix of customers. Thus it demanded for different
competitors and different growth opportunities. Another circumstance was that the percentage
of markets size and growth of software sales and personnel computers shipments were below
worldwide averages. These circumstances demanded a specialized strategy. Thus this was the
major reason that led Microsoft Canada to decide take the essential steps to modify the
management structure and have a better company and to put into practice Strategic alteration in
the company.

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