In existing business environment, there are some critical issues such as volatility in the market and intensive competition, which has make business operations complex for organizations. In order to address such critical problems, it has become quite essential for companies to make some strategic change in their operational framework in frequent manner so that requirements of the external business environment can be met efficiently. In context to this, the paper aims to shade some intensive lights over some crucial changes introduce by Home Depot for being competitive and successful in the market.
Inducing cultural changes within the organization is not an easy task for the business organization as for this purpose; the top level management is required to confront with several issues such as resistance shown by employees towards changes, lack of resources and uncertainties regarding impact of changes. For the new CEO of Home Depot also such challenges were quite critical. For confronting with such challenges and implementing the cultural change, some steps have been taken into consideration.
As the first step, the new CEO has made two hour Monday morning conferences compulsory for top executives of the company. This step has been proved quite effective for the company as it helped in effective dissemination of problems, issues and information among senior level executives. After having identification of issues through Monday call activity, the CEO has started to evaluate its existing resources and capabilities in frequent strategic meetings. Along with this assessment of existing HR capabilities can also be identify as one of the core step undertaken by new CEO for creating an effective environment for cultural change (Charan, 2006). There was three step formula used by the company for improving capabilities of HR Framework
1. Step Ist: Application and Interviews: For this purpose, the company has employed Web-Based Application processing system through which, effective and automotive scheduling of interview is possible.
2. Step 2nd: Candidate sorting process: For purpose, electronic database of the candidates are sort on the basis of their skill sets, preferred store department and work history. On the basis of this data, effective selection of efficient candidates on the suitable job profile can be possible.
3. Step 3rd: Affirmative Action: For the purpose of evaluating the performance of employees at stores, the company has started electronic monitoring of performance (Charan, 2006).
The next step of the change implementation process of the company is the evaluation of the induced change within the business organization. In this step, the company undertakes some crucial methods such as benchmarking for assessing viability of induced changed.
Nature and Rationale behind the Success of the Change
In existing period of time, Home Depot business organization requires to rebuild its place within the marketplace. The company has been established itself as one of the most successful retailer across the globe since last 20 years. However, in recent period of time, the company has started to face some latent financial and operational problems. In such conditions, existing chairman of the company, Marcus and CEO, Mr. Blank left the company. In such conditions, the arrival of Robert Nardelli has brought some intensive changed within its working style and organizational culture. The prime change brought by new CEO is about renovating the social architecture of the organization. In relation to this change, the overall culture of the business organization including changes in strategic objectives, working style of its managers, changes in the leadership pattern and changes in existing HR processes of the company (Charan, 2006). These changes implemented have been proved quite effective and successful in existing period of time. it is due to the reason that business environment for the company has become quite competitive and demanding. In such conditions, it becomes quite essential for the company to make it strategic intent quite aggressive and positive so that it can remain in competition within the market place.
Tools used by the Company and their Evaluation
There are some crucial tools that can be used for the purpose of inducing changes within the business organization and its operational framework. In this regard, Home Depot has also used some of the crucial tool, among which two effective tools can be discussed here:
Strategic Operating and Resources Planning
The first and foremost tool used by the company is the Strategic Operating and Resources Planning or SORP. The new CEO of the company has initiated a strategic Operating and Resources Planning in which 12 top executives work together and formulate new strategic measures for the company’s operations. This strategic planning is undertaken in different crucial contexts including, Investment, operations, HR process, and marketing stand of the company. In the SORP framework, the senior executive members of the organizations are provided with some crucial strategic targets, which decide their growth and developments within the company. Every year there is a need of implementing organize annual meeting for assessing the progress of overall programs and strategic steps undertaken by the company. Along with this, under this framework, overall strategic vision of the company has become future oriented (Charan, 2006). As per this approach, rather than relying on past trends and data, the allocation of such resources has started to be done on the basis of the projected future needs.
Mapping of different types of Leadership development program
Another crucial and effective tool implemented by the business organization is related to the initiation of different types of leadership programs for changing its existing framework. In this regard, some crucial programs such Store leadership programs and merchandising leadership programs. In addition to this, the top level management has undertaken some effective leadership programs for its managers so that leadership skills can be enhanced within its managers (Charan, 2006).
On the basis of analysis of the implication of the both approaches, it can be evaluated that adoption of SORP framework would be the most suitable tool for inducing cultural change. It is due to the reason that change in the organizational culture is a strategic change adhered by the business organization, which requires strategic initiatives and intend of the company. SORP framework directs to change the strategic orientation of the company and make it more responsive towards any strategic change. In comparison to instead of changing entire leadership framework, it would be more effective to change the practices and operations of the company with the help of effective strategies and tactics. Along with this, this tool of inducing change is more flexible and long lasting as with the help of this tool, implemented strategic measures and tactics can be evaluated in frequent manner so that any shortcomings and strengths of such measures can be identified (Bandt & Haines, 2002).
On the basis of analysis of the entire case it can be illustrated that change management can be understood as one of the most crucial and effective way to attaining long term success of the organization in existing competitive business environment.
Charan, R. (2006). Home Depot’s Blueprint Culture Change. Harvard Business Review, 84(4), pp 60-70.
Bandt, A., & Haines, S.G. (2002). Successful Strategic Human Resource Planning. Systems Thinking Press.