ORGANIZATIONAL CHANGE PROCESS: WEEK 6 ACTIVITIESBarbara Barrow, Marchella Christian, Jay Johnstone, Spencer Rieck, & Leann Weaver

AET/560Dr. Christine Nortz

OVERVIEW OF BUILD-A-BEAR WORKSHOP® (BABW)Offers 30 different animals to make

More than 400 Build-A-Bear Workshop® stores

Over 71 Franchises located in Europe, Asia, Australia, Africa, Mexico, and the Middle EastOver 1800 employees

Corporate home office is located in St. Louis, MissouriDistribution center in Columbus, Ohio

• Maxine Clark founded BABW in 1997

• According to, Build-A-Bear Workshop® Inc. History. (2016). 2001: The National Retail Federation names Build-A-Bear the Retail Innovator of the Year (p. 1).

2002: Build-A-Bear Workshop® celebrates the 10th anniversary of the teddy bear along with the opening of its 100th store (p. 1).

SCENARIO FOR BUILD-A-BEAR: POOR COMMUNICATION/DEADLINE

Build-A-Bear management tells an employee they need some important data by Monday. Employee response: No problem, I will have exactly what you need by Monday. (On the surface, it seems like good communication). The employee thinks that he has until 4:00 pm to deliver the data. In reality, management needs the information by 11:00 am; to make a deadline with the supplier, for the delivery of materials needed to complete an large order. It’s Monday at 11:00 a.m., the manager discovers the employee has not started on the project; thinking that he could deliver it at anytime during the day.Results: Management misses the deadline with the supplier who can’t give the materials that is needed for a big order due on Thursday.

SCENARIO: VAGUE COMMUNICATION ABOUT STREAMLINING

Build a Bear management has received numerous customer complaints regarding a long waittime to build their bears. Management addresses this problem with an email directive to allfloor staff to streamline the building process. The directive notifies store managers who incurmore than five complaints per month will be placed on probation. The email’s vagueness andthreat of punishment causes anxiety and stress in the store managers; who then demand their staff to work harder and faster. This breeds staff resistance and disenfranchisement amongthe floor staff and store managers, most of whom are doing well and meeting sale quotas.

Change Theories

KURT LEWIN THEORY OF FREEZE

ORGANIZATIONAL DEVELOPMENT THEORY

“This theory creates a climate of upward communication” (Spector, 2013, p.1).

RATIONALE FOR THE SELECTED THEORIES

The reason for this rationale is the lack of communication between management andemployees. These theories are being used and are appropriate for the culture withinBuild-A-Bear Workshop. It is different from the (non-successful) methods used to implementchange. Leadership did not relate the desired intentions, and the employees did not askfor the specifics concerning the deadline. The previous culture has been to give newprocesses to the employees and run with it.

HOW TO INCREASE EMPLOYEE COMMITMENT TO

CHANGE

OFFER INCENTIVES FOR BUILD-A-BEAR WORKSHOP• Kurt Lewin Theory

• “Ensure that employees are ready” (Connelly, n.d.)• Offer Breakfast with Management: Encourages Upward

Communication• Start a Team: Build a team for improving communication

• “Execute the intended change” (Connelly, n.d)• Name the Station at each Build-A-Bear Store• Ask Employees’ for their Ideas: Both offer brain storming

opportunities• Have a Company Picnic: Encourages team building and

Upward Communication• “Ensure that the change becomes permanent” (Connelly, n.d.)

• Founders Wall: Offers brain storming opportunities• Respect

TEAMS AND THE CHANGE PROCESS

Create a plan- Identify the areas that need change Understand the end goal- Where is the company today and where it needs to be? Communicate clearly- Change should be exciting, rewarding, and worthwhile experience Identify Key players- Take time to walk through the anticipated changes Delegate tasks- Assign firm deadlines for completion, follow along with the team, provide support, offer support, give responsibilities>Get more accomplished Set realistic objectives Manage expectations- Clarify what is expected of the team and the leader Hold people accountable for implementing change

TEAMS AND THE CHANGE PROCESS

OVERCOMING RESISTANCEResistance to change should be anticipated and addressed in a proactive manner. According to Spector (2013), effective methods of resistance management include: Clearly defining the need for change and create dissatisfaction with the status quo. Involve all levels of employees every step of the way. Solicit ideas, perspectives and comments from employees at the very beginning. This helps create employee "buy-in" for the process. Actively seek dissenting views, have staff play the role of devil’s advocate, and ensure an open climate for discussion and decision making. Define and address roles and responsibilities so staff understand how they fit in the big picture. Actively pursue the discussion and analysis of the costs, benefits, and risks of diverse alternatives. Allow time for reflection and do not mistake silence for consent.

TRAINING OUTLINE• One-Day “Classroom” training

• Training will focus on Build-A-Bear’s new strategy • Enhancing Customer Service• New Processes for stronger efficiency• Higher Volume locations will get a second stuffing machine

• Training will focus on change using effective change theories• Lewin’s Theory of Change• Organizational Development Theory

• Prior to Training, Employees will be Surveyed• Upward communication• Employees can identify needs that will be implemented in

their training

TRAINING OUTLINE (CONT.)• Communication

• During training, employees will receive transparent communication

• Details of the reason behind the change/training

• Training will be location-based• Best practices can be applied per location needs• Employees can develop ideas together to improve the

process

• Success will be tracked• Employees will be surveyed after training to gauge

interest and success• Customer satisfaction and revenue will also be

indicators

DATA, ASSESSMENTS AND THE CHANGE PROCESS

Creating a shared diagnosis requires data; valid information concerning the factors that impact the performance of the organization and its ability to implement its renewed strategy (Spector, 2013, p. 60).

Once data is collected, it requires careful interpretation and incorporation into the change process. This “discovery stage” should be shared with all responsible leaders and employees as it engages the employees in developing the shared diagnosis and it is partially their own data being reviewed (Spector, 2013, p. 65).

Management should facilitate feedback at all stages of diagnostics, data interpretation and change implementation. Feedback from employees lets change leaders know how effective the solutions are and encourages an ongoing and continuous dialog between operational levels (Spector, 2013, p. 67).

THREE AREAS OF DATA COLLECTION AND ASSESSMENTSQuestionnaires:• Can be administered to a large number of employees. Managers should also

incorporate• Results can be compiled in a short time period• The anonymous nature of questionnaires can provide employees with a greater

sense of freedom to speak their mind.• Can provide benchmarks for the organization to measure itself against and track

progress or regression.• Can offer comparisons and highlight area where results are especially positive or

negative.

Interviews:• Collect rich data.• Facilitate the process of creating dialogue.• Teach communication and active listening skills to employees.

Observation:• Provides current behavior as data.• Offers deep and rich data on interactions among people.• Can reveal emotions that impact behavior. (Spector, 2013, p. 66)

DETAILS ABOUT SHARED DIAGNOSIS W/O IN THE CHANGE PROCESS

CONCLUSION• Change theory will make organizational change more

manageable• Employee motivation• Communication

Effective communication prevents misunderstandings and reduces costs associated with mistakes. (Smith, 2015)

Reduce resistance Confusion and ambiguity will create negative feelings and a

tense atmosphere.

• Clearly defining roles and responsibilities will provide employees direction• This is particularly important with a diverse workforce.

• An in depth training is necessary to initiate change at Build-a-Bear• Employee motivation• Coaching• Track progress and success

REFERENCESAnderson, D., Ackerman, L., & Anderson, L. (n.d.) How to increase employee commitment to change. Retrieved from http://changeleadersnetwork.com/how-to-increase-employee-commitment-to-change

Beckhard, R., & Harris, R. T. (1987). Organizational transitions: Managing complex change (2nd ed.).Boston, MA.; Addison Wesley Publishing Company

Build-A-Bear Workshop® Inc. (2016). Company History. Retrieved from http://www.fundinguniverse.com/company-histories/build-a-bear-workshop-inc-history/

Connelly, M. (n.d.). The Kurt Lewin change management model. Retrieved from http://www.change-management-coach.com/kurt_lewin.html, p, 1, para 5, p. 2, para. 4, p. 2, para. 9

Cawsey, T. F., Deszca, G., & Ingols, C. (2012). Organizational change: An action-oriented toolkit (2nd ed.). Los Angeles, CA: Sage

Michalowicz, M. (2016). 101 ways to reward employees (without giving them cash). American Express for Small Business. Retrieved from https://www.americanexpress.com/us/small-business/openforum/articles/a-101-ways-to-reward-employees-without-giving-them-cash/

Rohn, J. (2013). Verybestquotes.com Retrieved May 30, 2016, from verybestquotes.com Web site: http://www.verybestquotes.com/if-you-just-communicate-jim-rohn-quote/

Smith, E (2015). The importance of communication in the organizational structure. Retrieved from http://smallbusiness.chron.com/importance-communication-organizational-structure-24390.html

Spector, B. (2013). Implementing organizational change: Theory and practice (3rd ed.). Boston, MA: Prentice Hall , p. 156, para 2, 6.