Welcome Aboard But Don’t Change A Thing By Eric McNultycase

Welcome Aboardbut Dont Change A Thing By Eric Mcnultycase Study Ba

Welcome Aboard (But Don’t Change a Thing) by Eric McNulty Case Study Background • Lakeland Wonders is a manufacturing company of high quality wooden toys; it has three plants in Minnesota and almost 5,000 employees, and is a 94 year-old company • Cheryl Hailstorm has been recently appointed CEO of Lakeland Wonders to expand and achieve new growth targets set by the board • She is the first person from outside the Swensen family to hold the top job • She was the general merchandise manager, and later the COO, of one of Lakeland's largest customers, Kids&Company • Her visions to launch a lower-priced line outsourcing offshore manufacturing Summary of Issues • Products of Lakeland Wonders are traditionally made in the US, which are one of the selling point over the other manufacturing companies • The cost to produce in the US is too high to achieve growth targets • To achieve targets, Cheryl needs to land the Bulls-eye contract • Offshoring manufacturing vs focusing on in-house manufacturing • Union negotiations will occur at the same time that the company may offshore, which might cause union to react through costly strike or work slowdown • Cheryl’s co-workers do not support her vision • The company needs to go through major changes to advance which cannot be done without the commitment and support of the team. Employee Resistance • Strong traditional culture that resist change • Cheryl feels most of her managers are "agreeable to her face, but are deliberately moving slowly behind her back“ • Mark Dawson (VP of Operations) doesn't understand Cheryl's vision and has no interest implementing her strategy • Lack of trust and communication between Cheryl and her team • Cheryl cannot gain support from her team • Engagement and commitment issues "You have to understand, this is a very old company. You may need to pull people along more slowly to make sure you don't end up tearing the place apart" Nature and possible causes of the problems Failure to share a common vision with the rest of the employees/ team members and managerial line • Employees are uncomfortable with the sudden changes • Disagreements amongst the employees/ employers • Other opinions are not being recognized-> lack of co-operation and communication Cheryl's overconfidence with the trust and support that she had received from her past experiences at Lakeland Wonders • “She thinks she has already earned the support of her colleagues and investors. She needs to earn it anew each day.†Disregarding Lakeland culture and traditional ways approaching challenges • Acting on plans too fast • Cheryl’s driving style isn’t aligned with Lakeland’s culture Steps to Overcome and Prevent Problems Involve team members • Give them a chance • Involve them in planning process; engage others in the creation. People support what they create. Enhance communication with team/ staff members • Be clear and articulate • Have proposed body language • Stop talking about "my" vision and start acting on "our" vision • Communicate with major stakeholders and senior managers Executives come in and say, “Here’s my vision, let’s go forward.†But they fail to create any sense of urgency about why a change is required “It’s easy to see why Cheryl is frustrated. She saddled with a bunch of managers clinging to their familiar turf†Have a clear strategy and process • Develop a common vision of the company's future • Create objectives clear to the top management and the other company members • Establish the rules of engagement of working together Change leadership style • An emphasis on persuasion, inspiration, and negotiation • Signal openness to hearing the concerns of people with divergent points of view • Operate with full disclosure and mutual respect Align driving style with organization’s culture • Link the vision of expansion with the individuals’ needs and expectations • Articulate a clear operating direction that specifies how changes can be consistent with the company's most treasured values and norms and also improve performance Steps to Overcome and Prevent Problems More Desirable Course of Action • Communicate • Demonstrate • Engage MIS Project Complete and submit ONE Hands-on MIS Project There is no word/length requirement. Just try to answer in a way that's clear and makes sense. Hands-On MIS Projects The projects in this section give you hands-on experience identifying information systems to support a business strategy and to solve a customer retention problem, using a database to improve decision making about business strategy, and using web tools to configure and price an automobile. Visit MyMISLab ’s Multimedia Library to access this chapter’s Hands-On MIS Projects. Management Decision Problems 1. 3-8 Macy’s, Inc., through its subsidiaries, operates approximately 840 department stores in the United States. Its retail stores sell a range of merchandise, including apparel, home furnishings, and housewares. Senior management has decided that Macy’s needs to tailor merchandise more to local tastes and that the colors, sizes, brands, and styles of clothing and other merchandise should be based on the sales patterns in each individual Macy’s store. How could information systems help Macy’s management implement this new strategy? What pieces of data should these systems collect to help management make merchandising decisions that support this strategy? 2. 3-9 T-Mobile has launched aggressive campaigns to attract customers with lower mobile phone prices, and it has added to its customer base. However, management wants to know if there are other ways of luring and keeping customers. Are customers concerned about the level of customer service, uneven network coverage, or data plans? How can the company use information systems to help find the answer? What management decisions could be made using information from these systems? Improving Decision Making: Using a Database to Clarify Business Strategy Software skills: Database querying and reporting; database design Business skills: Reservation systems; customer analysis 1. 3-10 In this exercise, you will use database software to analyze the reservation transactions for a hotel and use that information to fine-tune the hotel’s business strategy and marketing activities. In MyMISLab , you will find a database for hotel reservation transactions developed in Microsoft Access with information about the President’s Inn in Cape May, New Jersey. At the Inn, 10 rooms overlook side streets, 10 rooms have bay windows that offer limited views of the ocean, and the remaining 10 rooms in the front of the hotel face the ocean. Room rates are based on room choice, length of stay, and number of guests per room. Room rates are the same for one to four guests. Fifth and sixth guests must pay an additional $20 charge each per person per day. Guests staying for seven days or more receive a 10 percent discount on their daily room rates. The owners currently use a manual reservation and bookkeeping system, which has caused many problems. Use the database to develop reports on average length of stay, average visitors per room, base revenue per room (i.e., length of visit multiplied by the daily rate), and strongest customer base. After answering these questions, write a brief report about the Inn’s current business situation and suggest future strategies. Improving Decision Making: Using Web Tools to Configure and Price an Automobile Software skills: Internet-based software Business skills: Researching product information and pricing 1. 3-11 In this exercise, you will use software at car websites to find product information about a car of your choice and use that information to make an important purchase decision. You will also evaluate two of these sites as selling tools. You are interested in purchasing a new Ford Escape (or some other car of your choice). Go to the website of CarsDirect ( ) and begin your investigation. Locate the Ford Escape. Research the various Escape models, and choose one you prefer in terms of price, features, and safety ratings. Locate and read at least two reviews. Surf the website of the manufacturer, in this case Ford ( ). Compare the information available on Ford’s website with that of CarsDirect for the Ford Escape. Try to locate the lowest price for the car you want in a local dealer’s inventory. Suggest improvements for CarsDirect.com and Ford.com . Is Your Company Culture Too Strong? Debates • The strong organizational culture could lead to a harmonious environment. • A strong culture sets expectations, increasing the likelihood of reducing uncertainty so that members of a team will all be on the same page. • However, in fast – changing industries, or in a tumultuous economy, a weaker company culture can lead to the broader diversity of view points and can generate more new ideas and lead to better creativity. My Thoughts about Your Thoughts • Successful collaboration requires interpretation of other people’s beliefs and intentions. • “Theory of mind.†“It means I’m trying to think about your mind.†“It means I’m trying to put myself into your shoes, to think about what you would do. • The more we understand about the culture, the easier it will be to communicate effectively, because our own thoughts and preferences will guide us well regarding those of the people around us. • Conversely, a lack of understanding will make it difficult to internalize others’ viewpoints, which can have a range of consequences—from something as trivial as missing a joke to failing to recognize when you are in a potentially harmful situation, such as a robbery. Apply to Corporations • Culture works the same way in corporations. A strong corporate culture sets the rules of engagement. • A manager can choose to communicate with her team in a variety of ways: tersely, or diplomatically, or even passive-aggressively. • Someone who can accurately gauge her intent will be in a good position to succeed on her team. • Moreover, an entire team or company that communicates fluidly— everyone anticipating how everyone else will respond—is ideally situated to handle a crisis. A Culture that Helps and Hinders • Game theory modeled how people might decide which groups to join. • It would be easier for individuals to coordinate on a task, when they share a common culture, they would also share a common vision for how the task should proceed. • When coordination is rewarded, and when a group’s culture is strong, its members become increasingly like-minded. • It will attract more like-minded people to join the group, while individuals with a different vision may to go elsewhere. A Culture that Helps and Hinders • In other words, over time, a strong company culture increases “homophilyâ€. • But is homophily desirable? (It depends) • When there is a stable economic environment—and the status quo is working good. • Under this situation, having a strong shared culture can be beneficial, as it enables members of a group to better work together. • The IBM or General Electric in the early 20th century could be good examples. • Conversely, a weaker company culture, one that is unconstrained, a little chaotic, may lead to less conformism. An organization composed of diverse viewpoints, and even dissent, may not run as smoothly or efficiently as a homogenized company. • But the lack of an established way of doing things, increases the likelihood of innovation. Conclusion • It is hard to define what is a good organizational culture. • It depends on different situations. For a fast-changing Silicon Valley Company, a strong culture may lead to a decrease in creativity. While for a company whose focus is on retail business, such as Zara and Cosco, a strong organizational culture would be effective.

Paper For Above instruction

The organizational culture of a company significantly influences its capacity to adapt to change and innovate, as well as its operational harmony. The case of Lakeland Wonders, a long-standing toy manufacturer facing resistance to change under the new leadership of CEO Cheryl Hailstorm, exemplifies the complexities of cultural dynamics in organizational transformation. Understanding these dynamics is essential for framing effective strategies to manage change and foster a resilient, innovative work environment. This paper explores the impact of organizational culture on change management, the consequences of a strong versus weak culture, and strategies to align culture with corporate objectives, referencing scholarly literature and practical case insights.

Firstly, a strong corporate culture provides a clear set of expectations, norms, and shared values that can foster unity and increase operational efficiency. As Schein (2010) emphasizes, culture acts as a guiding framework, shaping behaviors and decision-making processes. For companies like IBM and General Electric in the early 20th century, a strong culture of innovation and disciplined work ethic contributed significantly to their success. However, while such culture supports stability and consistency, it can also hinder adaptability in rapidly changing environments (Kotter & Heskett, 1992). In the case of Lakeland Wonders, the resistance from employees and managers stems largely from a perceived disconnect between the company's traditional culture and the new strategic direction proposed by Cheryl. Employees' reluctance to accept offshore manufacturing and cost-cutting measures reflects a cultural attachment to the “made in the US” branding, which is perceived as a core value. This exemplifies how a strong culture, when rigid, may become an obstacle to necessary change.

Conversely, a weak or overly flexible organizational culture can foster innovation and adaptability but may also create confusion and lack of direction. For instance, during economic upheavals or fast industry shifts, a less cohesive culture may allow organizations to pivot more easily. Cohen and Levinthal (1990) argue that diversity of viewpoints and dissent within organizations stimulate creativity and innovation, which are crucial in competitive industries. In Lakeland’s context, the lack of trust and communication indicates a fragmentary culture where employees are disengaged and unsure of strategic priorities. Cheryl’s overconfidence, based on past success, further hampers her ability to gauge the cultural climate, leading to misaligned initiatives that may threaten organizational coherence (Martin, 2002). Thus, balancing cultural strength with flexibility is vital to maintaining both stability and capacity for innovation.

To transform culture effectively, organizations need strategic approaches that involve employees and promote open communication. Engaging team members in planning and decision-making cultivates ownership and reduces resistance. As Kotter (1998) notes, involving employees in creating a shared vision increases their commitment to change initiatives. Enhancing communication by articulating the reasons for change, acknowledging concerns, and demonstrating transparency are critical steps (Lewis, 2007). Cheryl’s challenge at Lakeland involves shifting from a top-down vision to a participative process where employees’ perspectives are valued, aligning individual and organizational goals.

Furthermore, leadership style plays a pivotal role in cultural change. Transformational leadership, characterized by persuasion, inspiration, and negotiation, has proven effective in fostering acceptance of change (Bass & Avolio, 1994). Cheryl must adopt a leadership approach that signals openness, respects divergent viewpoints, and demonstrates full disclosure. Such an approach could mitigate resistance from managers like Mark Dawson, who misunderstand her vision or resist its implementation. Additionally, aligning leadership behaviors with organizational norms ensures consistency and credibility, which are necessary for cultural shifts (Yukl, 2010).

Developing a clear, shared vision of future organizational goals is also essential. Articulating how proposed changes align with core values, such as quality and national pride, can help reconcile cultural attachments with strategic ambitions (Bryant & Marmo, 2008). At Lakeland, integrating the tradition of US-made products with the need for cost competitiveness could serve as a compelling narrative to gain support. Effective change management furthermore involves establishing operational rules for collaboration (“rules of engagement”) and setting measurable objectives to monitor progress.

Finally, the debate around the strength of organizational culture highlights that a one-size-fits-all approach is ineffective. In fast-paced sectors like technology, a more flexible, diverse culture can drive innovation and agility. Conversely, in stable, customer-focused sectors such as retail or manufacturing, a strong, shared culture supports consistency and brand identity. The cases of Zara and Costco exemplify how cohesive cultures underpin operational excellence, while Silicon Valley startups embody the benefits and challenges of a more chaotic, flexible culture (Cameron & Quinn, 2011).

In conclusion, organizational culture is a double-edged sword that can either facilitate or hinder change; its effectiveness depends on contextual factors such as industry dynamics and strategic objectives. Lakeland Wonders’ experience illustrates the importance of aligning culture with change initiatives through inclusive leadership, clear communication, and shared vision development. Organizations must assess their cultural profile continually and adapt their change strategies accordingly to foster resilience, innovation, and continued success.

References

• Bass, B. M., & Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Sage.
• Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Jossey-Bass.
• Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152.
• Kotter, J. P. (1998). Leading Change. Harvard Business School Press.
• Kotter, J. P., & Heskett, J. L. (1992). Corporate Culture and Performance. Free Press.
• Lewis, L. K. (2007). Employee perceptions of organizational change. Journal of Change Management, 7(2), 143-164.
• Martin, J. (2002). Organizational Culture: Mapping the Field. Sage Publications.
• Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). Jossey-Bass.
• Yukl, G. (2010). Leadership in Organizations (7th ed.). Pearson.