Assignment - Change Management Plan

Assignment: Change Management Plan

Organizational acquisitions are often arranged and negotiated by advisors who focus solely on financial aspects of the union. Advisors work hard to ensure that the price being paid for the acquired company is consistent with its worth. Typically, advisors pay very little attention to whether the two companies are actually compatible, which is why many acquisitions ultimately fail. For this Assignment, you will develop a Change Management Plan to successfully manage Hamilton Snacks’ acquisition of Arlo’s Granola, two companies that are successful in their own right but are also different in many ways.

To Prepare:

• Review the Change Management Case Study (attached), located in this week’s Learning Resources.
• Review this week’s Learning Resources on leadership and change management. Consider how you would apply change management models to manage the acquisition described in the case study. In addition, think about how a positive leadership approach could be used to effectively manage the acquisition.
• Reflect on what you have learned during the past 2 weeks about dyadic theories of leadership, shared leadership, creativity and innovation in teams, and employee resistance to change. Consider how these concepts and theories apply to the case study.

By Day 7

Create a 5 page Change Management Plan that addresses the following:

• Articulate a clear business rationale for the acquisition.
• Create a compelling vision for the acquisition that is less than a paragraph long.
• Differentiate between the cultures of each company, and describe two challenges that might arise from the differences. Describe two specific leadership strategies you would use to overcome the challenges.
• Describe the types of followers that would likely resist the acquisition and the types of followers that would likely embrace the acquisition. Propose two strategies you would use to address resistance to change and encourage employee buy-in for the change.
• Assume that you have assembled a small team of leaders, middle managers, and employees from both companies to manage the implementation of the acquisition.
  • Explain whether you would appoint a team leader or encourage a shared leadership approach.
  • Explain how you would foster creativity and/or innovation within the team.
• Explain what steps you would take to ensure the long-term success of the acquisition.

Be sure to incorporate positive leadership practices into your plan. In addition, support your plan with peer-reviewed journal articles and other scholarly sources on leadership and change management.

 

1

Change Management Case Study

Imagine you are the CEO of a large company, called Hamilton Snacks, which has just acquired a smaller company, called Arlo’s Granola. You are responsible for creating a Change Management Plan to ensure that the acquisition is successful and sustainable.

History and Background

Hamilton Snacks

Hamilton Snacks was founded in Seattle, WA, in 1957. The business began as a small, storefront shop that primarily sold candy and fountain drinks. By the late 1980s, the business had expanded to include potato chips, pretzels, and cookies, which are now sold in most major grocery stores in the United States, Mexico, Canada, and parts of Europe. Hamilton Snacks now employs approximately 3,000 people and has enjoyed steady growth until about 5 years ago due to the increasing public demand for healthier snack options. You were hired as CEO shortly thereafter and implemented a plan to remove high fructose corn syrup, MSG, and GMOs from all products. Unfortunately, the products are still of relatively low nutritional value, and the business is still known for selling “junk food.” In addition, Hamilton Snacks just received negative press for contributing to deforestation due to its use of a particular palm oil supplier.

Hamilton Snacks has a hierarchical structure, with many layers of management and is known for attracting Type A personalities. Employees describe the culture as fast paced and process driven. Major decisions are generally made by senior leaders and filtered through middle management to employees. Senor leaders and mid-level managers have offices, but most make a concerted effort to leave their doors open and talk with employees every day. The rest of employees sit in a cube formation outside of the offices. Hamilton Snacks offers competitive benefits packages, and employees are generally happy with their health insurance, vacation time, and 401k plans. In addition, the company offers an on-site gym and a day care center in every location, which employees pay a minimal fee to use.

Arlo’s Granola

Arlo’s Granola was founded in Olympia, WA, in 1995. The original owner, Arlo Miller, was a health and environmental enthusiast and began the business in his kitchen. Frustrated by the lack of healthy snack options in grocery stores, he made all- natural granola bars and sold them at local health food stores. Since then, the business has grown to 800 employees and now produces vitamin drinks and a wide variety of plant-based snack bars. Arlo’s Granola is now sold in many major grocery stores in the United States. Arlo’s son, Cooper, recently became CEO after his father retired 5 years ago. Cooper is committed to preserving the brand but recognizes the need for more capital to break into the global market.

2

Arlo’s Granola has a flat organizational structure and is known for attracting creative employees with a strong passion for health, wellness, and the environment. Employees describe the culture as fun, team oriented, and relaxed. There is no dress code or mandated reporting times; therefore, employees often wear jeans to work and arrive at different times in the morning. Senior leaders have offices, but managers sit with employees in an open floorplan with no partitions between desks. Major decisions are debated among teams, and multiple options are presented to senior leaders, who make the final decision. Like Hamilton Snacks, Arlo’s Granola offers competitive benefits packages, and generally employees are very happy.

Current State

The acquisition has been finalized. You remain committed to transforming

Hamilton Snacks into a company that is known for offering healthy, nutritious, and delicious snacks with no harmful ingredients. Therefore, you are excited to work with Arlo’s Granola leaders, who you believe will help you transform the Hamilton Snacks brand. Your senior leadership team has increased in size from seven to 11 leaders. Seven of the leaders are from Hamilton Snacks and the other four are from Arlo’s Granola, including the CEO, Cooper. There are some redundancies in leadership positions, but you have decided to delay eliminating any of the positions until you get to know Arlo’s Granola leaders better.

Last month Arlo’s Granola employees moved into a building across the street from the Hamilton Snacks offices. You have heard that there is growing frustration among both Arlo Granola and Hamilton Snacks employees. Hamilton Snacks employees are envious that Arlo’s Granola employees have bigger desks, more

comfortable chairs, and newer computers. They also complain that Arlo’s Granola employees are “inefficient” and “scatter brained.” Conversely, Arlo’s Granola employees are finding it difficult to adjust to the Hamilton Snacks culture and are skeptical of the company’s motives, believing that profit is valued above the public’s well-being and the environment.

How will you address these challenges? What steps will you take to ensure that the acquisition is successful?