Introduction

Change, a bombastic word, is something that is inevitably a part of life; it essentially happens every single day (Sawyer, 2019). Sadly, there are two groups of individuals: those who embrace change and those who are resistant to it. The golden question at hand is how to address individuals who are resistant to change (Ebuzor, 2023). This is in line with Mullins’ (2010) perspectives on the multifaceted nature of change management.

The change embracer

Change is a fundamental, natural aspect of life, evidenced by the number of jobs that are expected to disappear in the next 10 years, such as newspaper delivery and travel agent positions, due to the rise of technology (Jay, 2023). For individuals who embrace change, it presents a good opportunity to prepare themselves, seek opportunities to learn, and improve their skills (Chu, 2023). In a changing environment, a leader needs three key traits to successfully navigate change: being an Agitator, Innovator, and Orchestrator (Anderson, 2022).

Lego Change Management

Lego exemplifies successful business transformation. In the 1960s, a warehouse fire prompted Lego’s leaders to cease wooden product production and focus on the lucrative Lego bricks. The company flourished, earning the “Toy of the Year” title in 2000. However, by 2003, Lego faced a financial crisis amassing $800 million in debt and $300 million in losses.

Thing changed in 2005 when Jorgen Vig Knudstorp became CEO. By implementing the Kotter model, he urgently acknowledged the company’s deficit, assembled a team, and planned internal changes. His vision included simplifying distribution, reducing logistics providers, and establish direct communication with retailers. Resulting in Lego seeing an 11% revenue increase in 2006 through streamlined supply chain operations. Ongoing improvements to the product lifecycle ensued, and Lego ingrained this success and change into its culture (Edubirdie, n.d.).

Figure 1 – Kotter Model of Change

The change resistors

There is a certain group of people who are resistant to change and insist on sticking to the current situation (Nabeel, et al., 2021). This is commonly known as “Resistance to Change (RTC)”. It is the leading obstacle for an organization’s improvement, survival, and adoption of new processes and technologies. Organizations cannot merely view it as resistance but as also take an opportunity to learn and subsequently address RTC(Nabeel, et al., 2021). Resistance often results from specific blind spots and attitudes that staff specialists have due to being preoccupied with technological influences accompanying technical change (Lawrence, 1969).

The Demise of Toys”R”Us

Toys”R”Us, once a toy retail leader, filed for Chapter 11 bankruptcy in September 2018 due to mismanagement and an inability to adapt. The report cited the challenge of kids shifting to online gaming and the company’s failure to transition to online platforms like its competitors. Unable to match big-box retailers’ pricing and convenience, such as Walmart, Target, Costco, and Amazon, Toys”R”Us struggled to retain customers, despite a 10-year partnership with Amazon (Basiouny, 2018; Rodriguez, 2022).

If Toys”R”Us had used Kotter’s change model, they would have identified the need for urgent changes, particularly in reorganizing the sales force to meet competitive realities. Failure to take the first step resulted in a lack of a coalition to drive these changes. The subsequent steps in Kotter’s model, including vision creation, communication, empowerment, short-term wins, consolidation, and institutionalization, were not followed. Management neglected the deliberate and detailed nature of change management. Embracing Kotter’s Model could have significantly improved their chances of survival (Dennis, Michael, & Cate, n.d.).

Figure 2 – Toys”R”US Bankcruptcy sign

My Thoughts on Change

Change is perpetual and pertinent daily. Resistance offering valuable insights, must be acknowledged in change initiatives. As leaders we should embrace change and follow Kotter’s Model of Change as my choice of change methodology. Granting autonomy to team members fosters engagement, letting them choose their tasks. Crucially, internal mastery is vital; if lacking, outsourcing becomes a strategic option (Tsampardouka, 2023).

References

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Jay, A. (27 09, 2023). 10 Disappearing Jobs That Won’t Exist in 10 Years: Professions That Won’t Guarantee Career Opportunities. Retrieved from FinancesOnline: https://financesonline.com/10-disappearing-jobs-that-wont-exist-in-10-years-professions-that-wont-guarantee-career-opportunities/

Lawerence, P. R. (1969). How to Deal with Resistance to Change. Retrieved from Harvard Business Review: https://hbr.org/1969/01/how-to-deal-with-resistance-to-change

Merrill, P. (15 06, 2022). The cautionary and inspirational story of how LEGO rebuilt itself. Retrieved from CEO Magazine: https://www.theceomagazine.com/business/company-profile/rebuilding-lego/

Nabeel, R., Asif , M., Muhammad, i., shah, a. m., naveed, i., & edinar, M. (02 08, 2021). The Psychology of Resistance to Change: The Antidotal Effect of Organizational Justice, Support and Leader-Member Exchange. Retrieved from Frontiers Psychology : https://www.frontiersin.org/articles/10.3389/fpsyg.2021.678952/full

Rodriguez, J. C. (16 02, 2022). Seven Stunning Lessons From How Toys “R” Us Failed To Handled Disruption. Retrieved from Medium: https://medium.com/unsettled-disruption/seven-stunning-lessons-from-how-toys-r-us-failed-to-handled-disruption-77e60491e81c

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Tsampardouka, F. (25 06, 2023). How to use Daniel Pink’s Autonomy Mastery Purpose – Retrospective Ideas. Retrieved from Upward: https://up-ward.co/blog/retrospective-idea-autonomy-mastery-purpose#:~:text=Daniel%20Pink%2C%20in%20his%20book,why%20I%20am%20doing%20something.