Running head: Transformational change management plan Transformational Change Management Plan Ctu Tiffany vasquez 1 Transformation change management plan. 2 The home country of the Nodex Company is the United States with the main company destined in Jonesboro. The company management decided to do offshoring in Germany due low demand of their products in the home country, unplanned sudden government charges were unpredictable and hard to measure as well as volatile market. Moreover, many companies in the Midwestern part of the United State are preferring to offshore their production due to the high cost. Well, most company carry out the offshoring in secrete hence getting a company that is undergoing offshoring is quite hectic currently. (Bradsher,2012,). The offshoring of production of the Nordex Company took place in the year 2013. During this time, the Jonesboro a facility in the home country had about 40 layoffs employees. The company was offshored to a new destination; Germany where they have been able to meet their demands. (Garus, 2013). Operating in a business environment that had a high capacity stressing on the fixed assets and operating in both volatile internal and external market impacted a lot of liabilities to the company. (Bradsher, 2012)The congress taking back the tax incentives caused the 2008 recession making the company face a difficult time in dealing with the high operation costs. After the layoff of the 40 workers, the impact was highly felt not only by the workers but also by the community. The neighboring business were affected especially the wholesalers and the large scale retailers that marketed its spare parts. The offshoring was done as fast as possible with only a month notice as the company could no longer continue operating due to the high cost of production. (Business Staff. 2014) a few workers remained in the home country company after the offshoring to do the repairing, running the storage facilities training to those concerned in shipping of the products to the country of destination. Transformation change management plan. 3 What is driving the need for this transformational change? The dream of most of the United States is to control the market of the entire world. The Nordex company goal is to rule the rest of the companies in the same line of production. The company sets goals, vision and mission and comes up with strategies and objectives on how they can achieve their set dream. Moreover the company does much research to come realize the best destination country for their offshored products and how they can offset negative impacts of offshoring. This includes; having the potential to see beyond the competing firm. (Business Staff. 2014,) Nordex Company underwent transformational change out of it consent. The company moved to a destination country where it was able to enjoy government and the local state incentives. The government of Germany greatly controlled the products manufactured by the nordex company to ensure that they suit the needs of the public. As a result, the company tried to maximize on producing the best to satisfy the standards and condition requirement of the government something that made it to undergo transformational change of being the best engineering product producers. (Moritz, 2013) Nordex market is in oversea since its culture is more acceptable of alternative and renew source of power. In United States of America it is where it is going though it is taking time. This is because the firm cannot continue running without grants from the government, unless they get other alternatives. This was the company starting to grow and undergoing transformational change. (Bradsher, 2012) When the company was searching for the new market they found Germany and what was holding Nordex behind was the subsidies from the government they were receiving. In 2013, it Transformation change management plan. 4 was decided that all fund should be cut, this was Nordex big opportunity to continue with their plan of moving to Germany. Before they announced their moving, they blamed the congress and their failure and that they had to cut off 90% of their employees. In 5 years, the firm only hired 0.06% of the employees they had promised they are going to employ. (Garus, 2013). Nordex management did what is required to make sure that the company survives if another country if not US. They refuse to continue performing at minimum while they can do bigger. (Bradsher, 2012)The prices of oil increased some few years before, T. Pickens was seen on the news coming out very strongly on wind generating electricity. Overseas nations listen and now they are enjoying, so does Nordex. Transformation change management plan. 5 References Bradsher, C. D. (2012, January 21). New York Times. Retrieved October 8, 2015, from Business Day: http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezedmiddle-class.html?_r=1 Garus, K. (2013). Sun & Wind Energy. Retrieved October 7, 2015, from The Magazine for Renewable Energy: http://www.sunwindenergy.com/news/nordex-closes-plant-jonesboro Moritz, R. (2013, June 28). Arkansas News. Retrieved October 6, 2015, from http://arkansasnews.com/sections/news/arkansas/update-nordex-end-wind-turbineproduction-jonesboro.html Bradsher, C. D. (2012, January 21). New York Times. Retrieved October 8, 2015, from Business Day: http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezedmiddle-class.html?_r=1 Garus, K. (2013). Sun & Wind Energy. Retrieved October 7, 2015, from The Magazine for Renewable Energy: http://www.sunwindenergy.com/news/nordex-closes-plant-jonesboro Moritz, R. (2013, June 28). Arkansas News. Retrieved October 6, 2015, from http://arkansasnews.com/sections/news/arkansas/update-nordex-end-wind-turbineproduction-jonesboro.html Talk Business Staff. (2014, June 5). Talk Business & Politics. Retrieved October 9, 2015, from The City Wire: http://talkbusiness.net/2014/06/trinity-industries-re-open-nordex-factoryjonesboro/ Transformation change management plan. Taylor, J. M. (2013, June 18). Heartland News. Retrieved October 10, 2015, from http://news.heartland.org/newspaper-article/2013/07/18/nordex-usa-closes-wind-turbineplant-despite-millions-subsidies 6 Transformation change management plan. 7 Tiffany Vasquez 04/25/2016 THEORIES OF CHANGE MANAGEMENT Change management is the term used to refer to implementation of programs, strategies and technology in an organization in order to deal with the changes within the operating environment of the business. I will discuss three theories of change management. First and foremost, there is the Lewin model, which consists of three major steps of change. First, is the freeze stage; where you need to communicate the change to the relevant stakeholders in the organization-this is done by explaining the benefits that will come with the change and what they should expect in return in the change implementation at the work place. Second in the model entails dispelling rumors and misconceptions that will come with the change. Moreover, there is empowering action to encourage everyone to take part in implementing change. Second in the model is the refreeze process; this calls for laying the basis upon which the change will occur and countering the barriers to change by putting in place various control measures. Lastly, providing support programs like training to the organization to ensure implementation of the change. Its main undoing is that in its detail, it does not provide for detailed explanation to what is to happen at each of the stages of implantation. 1 The second theory is that of Nadler model. It is different in from the Lewin model in the way it approaches change. This is because it lays more emphasis on the major players in the organization that are responsible for implementing of the changes that are proposed. First and foremost, it highlights the kind of work that does on in the organization. By this, the kind of work is analyzed, the requirements for implementation of the work, the skills required by the workers and moreover, the expected return expected by the workers from the work. Thus, in implementing change the unique needs of each are considered. Next, is the people that will interact with the change in the organization. This includes the workers, stakeholders and clients. The change should be aimed at improving the level of satisfaction to each of them for it to be termed as successful for the organization. Lastly in the model is the structure and culture of the organization. This, in view of the model, states that the proposed change to an organization should lay emphasis on the laid down structures by the organization to make sure the change does not wholly interfere with the prior working structure of the organization. Lastly is the Kotter change management plan. This plan is initiated by creating a sense of urgency with regard to the implementation of the new change in the management of the organization. This is done by sensitizing various stakeholders on the important role that change would affect to the organization. Secondly, constitutes a guiding team. This will be charged with the responsibility of providing the way ahead in implementing the changes. This is followed by constituting a volunteer group that is willing and able to institute the changes. In order to attain set goals, it is advisable to do away with all the barriers that the process of change may face. The next step is generation of short term wins to accelerate the rate of change since it will act as a motivator. Lastly, the institute culture that is to be used in collaboration with the various changes 2 to the organization. The main disadvantage of this model is that the stages are greatly intervenient, in that when one fails, the whole model is ruined. Stakeholders in an organization are the people who are entitled to the ability to affect the various activities in the organization Moreover; the activities undertaken by the organization also directly affect them too. Examples of stakeholders in an organization include creditors, directors, employees and unions. Creditors need communication to understand the financial welfare of the organization, managers need it to monitor an organizations performance, unions need it to represent the company well and the employees need communication to receive instructions on the work they are assigned. In an organization, depending on its structure, there are various ways by which communication is channeled to the various stakeholders. For example, when communicating with employees, one may resolve to use memos, converge meetings, send them emails, use department heads to relay the information or use face to face communication .Pertaining the creditors, the information should take a formal form and the evidence of communication keep for future reference. The communication can take the form of emails, letters and board meetings with the creditors. Communication with managers can also take various dimensions; it can be horizontal between managers, or horizontal with their subordinates and junior staff. However, the medium of communication can differ depending with the sensitivity of the information, the urgency the structure of the organization and other logistics. 3