Scribd
Upload
7 views

Deliverable 2

The document discusses change management models used by General Electric and Lego. [1] General Electric implemented the Six Sigma methodology under CEO Jack Welch to streamline processes, train employees, and save $10 billion. [2] Lego also successfully implemented change management, going "back to the brick" to focus on its core product when facing bankruptcy in 2004. [3] Both companies used Lewin's three-stage change management model of unfreezing, moving, and refreezing to implement strategic changes.

Uploaded by

assignmentsacer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
7 views

Deliverable 2

The document discusses change management models used by General Electric and Lego. [1] General Electric implemented the Six Sigma methodology under CEO Jack Welch to streamline processes, train employees, and save $10 billion. [2] Lego also successfully implemented change management, going "back to the brick" to focus on its core product when facing bankruptcy in 2004. [3] Both companies used Lewin's three-stage change management model of unfreezing, moving, and refreezing to implement strategic changes.

Uploaded by

assignmentsacer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

1

Deliverable 2 - Change Management Models

Name

Institution

Date
2

Deliverable 2 - Change Management Models

Any program for managing change must locate possible points of contention, attend

to everyone's requirements, and, most importantly, close the gap between executive

goals and those who will be impacted by the change.

General Electric is the first business, and it was continuously losing money and not

growing. General Electric had a market value of $12 billion when Jack Welch took

over as CEO in 1981 (Wise, 2020). By the time he left in 1998, the business had

grown to a value of $280 billion. He fundamentally restructured the business to

achieve this. His instinct told him the company, which had been in operation for

decades, required a radical transformation. Six Sigma is a methodology that is

employed in this procedure and is intended to reduce product and process flaws.It was

able to reduce waste and streamline processes as per the strategy. To implement the

new system, GE mandated that employees complete 100 hours of training sessions.

They also had to work with full-time mentors known as black belts to advance their

skills. The five-year-long transformation of General Electric serves as a case study for

organizational change management, a technique used to make sure staff members

accept the procedures and tools necessary for a more significant organizational

change (Wise, 2020). General Electric was able to save an astounding $10 billion by

repeatedly testing and retesting procedures. Welch claimed that focusing on "people

issues" was responsible for the other half of the change.

Welch led the development of a profitable organization into an international force in

business by recruiting a team that shared the same values, vision, and convictions

(Wise, 2020). Lego is another company that manage to change. One of the greatest

turnarounds in corporate history may have occurred with Lego. Lego was able to

break out of its stagnation and debts through the effective execution of change
3

management. From 1932 to 1998, the business thrived, never reporting a deficit.

However, by 2003 revenues had decreased 30% year over year, the corporation owed

$800 million in debt, and it had been almost ten years since it had developed anything

new for its portfolio (Wise, 2020). Lego is putting more of an emphasis on connecting

the real world with the virtual world. Lego has an amazing capacity for interacting

with people, which has allowed it to navigate some very rough waters.

Lego maintains strict standards for precision and quality. Indeed, Lego is a serious

enterprise. It just so happens to be in the entertainment industry. The business

understood in 2004 that it needed to rework its strategy totally and rebuild the

business from the ground up. Lego narrowed its focus and went "back to the brick."

As a result, Lego produced 7,000 as opposed to 12,900 different parts as a whole.

Lego also began to penetrate other industries, including those of movies, physical

action figures, and video games. Lego was able to emerge from bankruptcy and

establish itself as one of the most powerful brands in the world because it was

resilient and open to change. Unfreezing, Moving, and Refreezing are the three phases

in Lewin's three-stage model (Burnes & Cooke, 2012). Most managers choose to

employ this well-liked change model when putting new changes into action. As this

model is used in conjunction with a methodical approach to change implementation, it

was extremely effective for the Lego business. Lego strategic shift that enables it to

overcome the obstacles was Lewin's three-stage model (Piironen, 2022).

In conclusion, the two examples suggest that businesses with good change

management programs appear to have considerably higher ROI than businesses with

subpar or no change management programs.


4

References

Burnes, B., & Cooke, B. (2012). Kurt Lewin's Field theory: A review and re-

evaluation. International Journal of Management Reviews, n/a-n/a.

https://doi.org/10.1111/j.1468-2370.2012.00348.x

Piironen, S. (2022). Producing liminal spaces for change interventions: The case

of LEGO serious play workshops. Journal of Organizational Change

Management, 35(8), 39-53. https://doi.org/10.1108/jocm-03-2021-0073

Wise, G. (2020). Willis R. Whitney, General Electric and the origins of U.S.

industrial research. Plunkett Lake Press.

You might also like