Change at Whirlpool: An Analysis
MGMT915: Change Management
Group Report
Change at Whirlpool : An Analysis
Word count (excluding references): 4000 (aprox)
Abstract
Over the years 1994 – 2003, white goods producers Whirlpool Corporation initiated and implemented changes to their business model to enable them to move from a previously engineering focused organisation to a more customer focused entity. The structure and processes they put in places has since embedded itself in the company’s culture. This report analyses the 2005 Harvard business Review case study ‘Change at Whirlpool Corporation’ using the Hayes and Hyde model of change, Higgin’s 8-S model, Hayes Stakeholder management grid and Kotter’s Model of leadership to examine how senior management were able to initiate and implement the new changes and steps they took to embed these new initiatives in the firm’s culture and value systems.
Introduction
In the late 1990s, Whirlpool encountered stagnating market share, profits and revenues. According to the company 's analysts, this was due to the lack of innovation in the product line. Additionally, Whirlpool employees seemed out of touch with their customers ' needs. Whirlpool hired a small consultancy firm, Strategos, to help them develop their strategy and structure to adopt a more pro-innovation mindset, which in turn would increase revenues and help revive the depreciating market share. The case also illustrates the steps taken by Whirlpool 's management to implement the planned changes. These efforts by the Corporation created consistent growth, increase in market share and in revenue (Rivkin et al, 2005).
In 2003, the company reported earnings of USD 830m and sales of USD 12,176m. Their profit margin was 6.8% (Rivkin et al, 2005). Senior management attributed this increase in revenue to the direct effect of demand for Whirlpool 's new innovative products produced and marketed by the company. The current CEO Jeff Fettig said that Whirlpool 's performance
Group Report
Change at Whirlpool : An Analysis
Word count (excluding references): 4000 (aprox)
Abstract
Over the years 1994 – 2003, white goods producers Whirlpool Corporation initiated and implemented changes to their business model to enable them to move from a previously engineering focused organisation to a more customer focused entity. The structure and processes they put in places has since embedded itself in the company’s culture. This report analyses the 2005 Harvard business Review case study ‘Change at Whirlpool Corporation’ using the Hayes and Hyde model of change, Higgin’s 8-S model, Hayes Stakeholder management grid and Kotter’s Model of leadership to examine how senior management were able to initiate and implement the new changes and steps they took to embed these new initiatives in the firm’s culture and value systems.
Introduction
In the late 1990s, Whirlpool encountered stagnating market share, profits and revenues. According to the company 's analysts, this was due to the lack of innovation in the product line. Additionally, Whirlpool employees seemed out of touch with their customers ' needs. Whirlpool hired a small consultancy firm, Strategos, to help them develop their strategy and structure to adopt a more pro-innovation mindset, which in turn would increase revenues and help revive the depreciating market share. The case also illustrates the steps taken by Whirlpool 's management to implement the planned changes. These efforts by the Corporation created consistent growth, increase in market share and in revenue (Rivkin et al, 2005).
In 2003, the company reported earnings of USD 830m and sales of USD 12,176m. Their profit margin was 6.8% (Rivkin et al, 2005). Senior management attributed this increase in revenue to the direct effect of demand for Whirlpool 's new innovative products produced and marketed by the company. The current CEO Jeff Fettig said that Whirlpool 's performance
References: Curado, C. 2006, ‘Organizational Learning and Organizational Design’, The Learning Organization, vol.13, no.1, pp. 25-48, accessed 18/07/2012, Emerald. Hayes, J. 2010, The Theory and Practice of Change Management (3rd ed.), Macmillan, Palgrave. Higgins, J.M. 2005 ‘The Eight “S’s” of Successful Strategy Execution’, Journal of Change Management, vol. 5, no. 1, pp. 3-13, accessed 15/07/2012, ProQuest. Jamali, D. Khoury, G. & Sahyoun, H. 2006, ‘From bureaucratic organizations to learning organizations: an evolutionary roadmap’, The Learning Organization, vol. 13, no. 4, pp. 337- 352, accessed 15/07/2012, ProQuest. Kotter, J.P. 1996, Leading Change, Harvard Business School Press, Boston. Rivkin, J. W. Leonard, D. & Hamel, G. 2005, Change at Whirlpool Corp., case, Harvard Business Review, Boston. Sackmann, S.A. Eggenhofer-Rehart, P.M. & Friesl, M. 2009, ‘Sustainable Change: Long-term Efforts Toward Developing a Learning Organization’, The Journal of Applied Behavioural Science, vol. 45, no. 4, pp. 521-549, accessed 22/07/2012, Sage. Whirlpool’s Innovation Wheel (Rivkin, 2005)