MGT325- Organizational Change executive summary PDF

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Walmart is one of the largest and most known businesses. You can find almost anything in that store and for a very affordable price. Even though they might not seem like they have problems, there is always room for improvement. This executive summary is about Walmart and it will go over the indicators of change, change agents, plan for change, proactive steps, possible obstacles and sacrifices, change strategies, communication, and timeline for the new changes. Indicators of Change:   

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Walmart has the lowest ranking American Customers Satisfaction Index (ACSI) score compared to all grocery stores. Walmart is continually closing international locations, including Germany, Russia and Brazil. Financial impact was 4.1 billion in reduced net sales because of Brazil closure. Managements needs to create an outlined plan to better serve their customers and implement the changes. They need to review their strengths and weaknesses to figure out what is going wrong internationally. They need to monitor after changes are put into place as. From Walmart’s mission they believe that customers “are the reason we’re in business,”. They bring the profits, so we need to change to better satisfy them. Without a profitable business, employees would lose their jobs. If businesses close, top management would lose time, money, and energy that they put into the business.

Change Agents:  

Corporate management will review the company and create the plans to implement. Employees will start making those changes in the stores. Management will need to monitor things after in order to keep improving. They need to train employees correctly and take care of problems when they come up. “If you take care of the employees, they will take care of the clients” (Cooke, 2019 p.521).

Identify and Communicate Change:    

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Walmart failed internationally so they need to do more research in that area first to learn about the cultures, and their needs and wants before expanding again. ACSI score is lowest of all grocery stores which means Walmart needs to work on customer service skills. Change will start at the top and work down to every level. Senior leadership including President Douglas McMillion, CFO Brett Biggs, Daniel Binder and others all need to be on same page about the changes and continually communicate in quarterly earning calls. They will communicate with management on what needs to be done in stores. Supervisors will have formal communication with employees about clear changes being put in place.

Proactive Steps: 

Senior management needs to go over annual report of closed stores and current ones to compare them, and then focus their attention on stores with similarities from the closures.

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They need to go over reviews and surveys to see what customers are unsatisfied with and then reach out to front line employees to do Customer Service trainings.

Possible Obstacles:    

Management has a lot of duties already so monitoring their employees on the new changes could be difficult. Employees could misunderstand what needs to be done. The employees could feel overwhelmed with the new changes and in turn leave the company or act out. Corporate could analyze too slowly and another business could close. Two significant stakeholders are Doug McMillon, President and CEO and Judith McKenna, President and CEO of Walmart International and they could disagree with each other’s thoughts and extend the time of implementing changes.

Potential Sacrifices:  

They might have to give up environmentally friendly products and customers to keep prices low and vice versa. If they start selling online more instead of in regular stores, they would give up employee’s jobs or change the way the employ works, like in warehouses or delivering orders.

Essential Resources:   

They need a clear and well-developed plan for pre and post change. They need excellent communication skills to place the change and monitor it. They need strong and dedicated stakeholders to implement the changes now and in the future.

Change Management Strategies:       

Having a detailed plan for the change. Communicating with employees clearly with what needs to be done and how to do it. Monitoring after the change to make sure everybody is improving their skills. Listening to the employees about their questions and concerns. Using these strategies will make things run smoothly and work from top of the company to the bottom. Walmart will have happy employees that know what to do. Involving the employees and being transparent so they feel valued and build trust.

Revision of Mission/Vision statements:  

Walmart’s mission should involve providing superior customer service skills and the save the people money. Walmart’s vision should also involve satisfying the customers, not just saving them money.

Communication Plan:

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Top management needs to come up with a plan together while listening to everyone’s thoughts and then decide on something as a team. This new plan will be sent out by phone calls and fax/paper to each store management. The management can have a mandatory employee meeting to make sure the changes are heard and understood. The management will be open and clear as well as listen to their employees to better communicate what is expected. Checking in with change agents to make sure things are running smoothly and improving.

Estimated Timeline for Plan Implementation:    

Analyzing the information should happen immediately and will take no more than a month. Meeting and creating a clear, detailed plan should take a week to decide on consensus. Distributing the plan to the stores will be immediately after and they should have meetings at their stores which would take no more than a week. Changes and trainings should happen immediately after and results should show after about 6 months.

References Biggs, B. (2020). Financial News. Retrieved from http://stock.walmart.com/investors/default.aspx

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