Question A : (50 marks)
A. Explain the possible causes of resistance to change that Shell faced during its transformation phase. Identify the symptoms of resistance to change by Shell employees. (25 marks)
B. Identify the eight failure factors by John Kotter. Explain five of the failure factors that Shell could face owing to change management. (25 marks)
Possible causes of resistance to change and the symptoms that the employees of the Shell faced during its transformation phase are:
1. Because of the implementation of change, some of the countries thought that they would lose the developed market share.
2. Since the message of change was a tough one, therefore, many operating units of Shell showed their unwillingness in accepting the ideas of change.
3. Most of the key stakeholders to change were unaware of the reason for the change.
4. Resistance to change may also be shown by the employees because the change management gets delegated by the top leadership of the organization and sometimes the leaders distance themselves from the challenge of implementing the priorities they once championed.
Eight failure factors by John Kotter are:
1. Allowing too much uncritical satisfaction so that the people see no reason to change.
2. Failing to create a sufficiently powerful guiding alliance of leadership and power.
3. Underestimating the power of vision and not letting people know what you’re trying to change to.
4. Under communicating the vision from change for the organization.
5. Permitting obstacles to block the new vision.
6. Failing to create short term wins.
7. Declaring victory too soon.
8. Neglecting to anchor changes firmly in the corporate culture.
Five of the failure factors that shell could face owing to the change management are:
1. Allowing too much uncritical satisfaction so that the people see no reason to change. Shell has not undergone a change for a longer period of time and hence employees in such companies are satisfied with the existing processes and they see no reason to change.
2. Underestimating the power of vision and not letting people know what you’re trying to change to. It has been observed that most of the employees at shell were unaware of the guiding concept behind the change.
3. Under communicating the vision from change for the organization. Leaders of shell have not specifically defined the idea behind the change to its employees.
4. Permitting obstacles to block the new vision. The previous chairman of the shell has not removed the obstacles that blocked the new vision. This has further resulted in the resistance to change.
5. Neglecting to anchor changes firmly in the corporate culture. The shell should implement the mandatory changes in the organization and should make it mandatory for all the employees to get adapted to the change.