Change Management in M&S

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M&S did not overtly follow any particular change management model(s). Therefore, it is helpful to examine the change initiatives that the company put in place using Balogun and Hailey’s (2004) ‘change kaleidoscope’, which outlines three aspects through which the change process can be viewed and assessed (see Figure 1). This diagnostic framework includes the organisational strategic change context, change contextual features and design choices.

Effectiveness of the Change Programme and Agent(s)

The change programme and the leaders of the change have been extremely effective in terms of bringing M&S back towards its former glory. As Paul Myers reports in the most recent annual report (2006):

“In the last two years, the Group has undergone a period of significant and necessary change under Stuart Rose’s able and inspiring leadership. From day one, it was clear he knew the issues that needed to be addressed. He drew up a plan, assembled the team to implement the plan, and then got on with it, in a tireless and focused manner. The improvements seen in 2005/06, a direct result of this approach, have been reflected in our share price and a two-thirds increase in earnings per share to 31.4p per share (last year 19.2p), a record level for the Group. On the strength of this, we are proposing a final dividend of 9.2p per share (last year 7.5p), providing a total dividend for the year of 14.0p (last year 12.1p), an increase of 15.7%. With dividend cover now restored to over two times, the Board’s future policy is to grow dividends broadly in line with adjusted earnings per share growth for each half of the financial year (1).


Clearly, this statement highlights the effectiveness of the change programme and change agents, especially considering the problems that they inherited when taking over the company.

Porras, J.I. and Hoffer, S.J. (1986) Common behavior changes in successful organisational development, Journal of Applied Behavioral...
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