Organization Change Management.
Teresa Teague:
OL-663-X3351 Leading Change 21TW3
Professor Russ Davis
April 8, 2021
Basic Introduction
All types of businesses and organizations will experience challenges and difficulties in
regards to their daily, weekly, monthly, and yearly operations. Operational challenges need to
be handled with care in a timely manner as they can lead to negative impacts on moral and
overall performance issues in the organization. When it becomes necessary for organizational
operations to change we can call this change management.
Overall organizational change management can require multiple processes to complete
as they are very seldom a one and done kind of deal. Most successful change management
happens slowly or gradually over time and can include several steps for completion. Kotter’s
“Our Iceberg Is Melting” lists an 8 step change process that could be helpful for
organizations. Kotter’s steps include first creating a sense of urgency, second forming a
coalition of power, third creating a vision, fourth being able to communicate that vision
clearly, fifth empowering others to act on the vison, sixth establish or create short-term wins,
seventh consolidate the change(s)and finally create new approaches. The main goal of this
assignment is to look and discuss hoe the first two steps in Kotter’s process will apply to the
changes needed by Alaska Airlines.
We can apply Kotter’s eight steps to the current Alaska Airlines problem as follows:
Create Urgency
The airlines according to the article “Alaska Airlines: Navigating Change” states that
overall operations were at an all-time low of only 60% of all flights being on-time and an
average of 7 mishandled bags per 1000 flyers as reported in 2007 [ CITATION Avo15 \l
1033 ]. The next item we see of important in the article is that these items have caused the
airline to begin reducing pilot salaries and lay off workers in an effort to the significant drops
in operating income which affects the bottom line of revenues for the airline. The basic plan
would be to answer the questions of why baggage is being mishandled, why is ridership at an
all-time low and how can we boost revenue?
Alaska Airlines decided to focus on the ground services as the power coalition using
the VP of Operations in their Seattle hub to improve package mishandling, boost ridership and
aid in flights being on-time. The goal was to get to at least 4 out of 1000 mishandled bags and
up to at least 70 -75% of flights being on-time which they did. However the airline still
needed a change in order to achieve higher and better numbers.
The current process(s) at Alaska Airlines included the top level management change to
begin with, establishing where they would meet, and then deciding on how the change would
be implemented. The recommended change was to create a forum for all employees so they
could participate actively and give their views and opinions. As a by-product would help the
company identify which employees were an obstacle to change and how better to determine
how they could convince them to accept the change as necessary.
In order to garner support for change I would try to make sure that I was disseminating
all required and necessary information through both leadership areas like associations for
pilots or flight attendants and via ground crew managers. This can be done via emails, flyers,
newsletters or in person conversations as needed. I believe it would be effective in getting the
urgency and importance across as to why it needs be done and what will happen if it’s not. I
can include statistics such as those given by Sabre showing that 77% of improved airline
operations include the service delivery area: connected aircraft, operations in-flight, ground
and customers[ CITATION Dwe17 \l 1033 ] to state a single improvement area.
Build a Guiding Coalition for Change
In order for the airline to create a guiding coalition for change as this is important in
regards to implementing the change within the organization as a whole they will need to work
closely with leadership. The overall success or failure of the change will hinge on the
combination of leadership chosen to lead the coalition. They will need to be strong in the
belief of change, inspire both loyalty and trust in other members and be willing to go all the
way for the goal of success and growth within the organization.
The creation of this coalition will include Staff VP of Operations, Ben Minicucci, and Bill
Ayer, president and Chief Executive Officer, Brad Tilden, Executive Vice-president of
Finance, Glen Johnson, and Executive Vice President of airport service, maintenance and
engineering. This will show a pooling or split in regards to managers and leaders for an
infusion of different styles, leadership skills, and management styles.
The following steps should be taken by the assigned members of the coalition tem in
order to create commitment across the board:
1. Open communication and dialogue
2. Set expectations
3. Set up and sign performance style contracts for vendors and employees
Strategic Vision
Alaska Airlines executives along with management teams set into motion Kotter's Step 3
which is to “Develop the Change Vision and Strategy” by recognizing that there were obstacles
in the Seattle hub and these would need correcting before attempting to look at any other issues
or areas. This then enabled them to "clarify how the future will be different from the past, and
how you can make that future a reality" [ CITATION Kot05 \l 1033 ]. In order to resolve the
issues at the Seattle hub, Minicucci, VP of Seattle Operations, decide to create something called the
“Vendor Oversight Group”, the group “produced a 180-point change plan to be managed with the
ramp vendor," established a "cross-functional team" where each member had a "personal stake in
a different aspect of day-to-day operations," and created a "metrics mindset" to keep employees
accountable [ CITATION Avo15 \l 1033 ]. Kotter states that “getting the vision right includes
engaging upper-level and mid-level management teams for feedback needed to avoid blind-spot
problems”[ CITATION Kot12 \l 1033 ]. What this means is that Minicucci did this for the Seattle
hub thus avoiding running into it being only his vision as opposed to a vision that effectively
addressed the issue for the organization as a whole. This became known as the "Fix Seattle" plan
and provided the airline employees with a clear concept and understanding of how the
organization would move forward to ensure its success [ CITATION Avo15 \l 1033 ].
Kotter stated in “leading change” that “a good vision serves three important purposes”
and these include “clarifying the general direction” in order to “motivate people in the right
direction” and help “coordinate the actions of different people”[ CITATION Kot12 \l 1033 ].
This means that Alaska Airlines has a vision to achieve optimal operational efficiency, while
providing exceptional customer service, and market related competitive rates after looking at
steps one and two. All of these items and steps will help to improve overall performance in
multiple areas while ultimately achieving success.
Communicating Change
In order to fulfill Kotter's Step 4 of “Communicate for Understanding” both CEO Ayer, VP
Minicucci, and several other executives continually reinforced “the importance of the 'Fix Seattle'
initiative at town hall meetings and in numerous internal communications" striving to engage
employees[ CITATION Avo15 \l 1033 ]. This enabled the executives to "make sure as many
others as possible understand and accepted the vision and strategy" that was being used to fix
Alaska Airlines [ CITATION Kot05 \l 1033 ]. Unfortunately some leaders “treat communication as
a back-burner issue” thereby creating a true lack of dialogue, feedback disseminated information to
employees. Minicucci was also able to assemble a cross-functional team that met daily for at least
90 minutes or longer to address performance, permitting employees to have a "safe and open
space" to examine root causes for the failures and setbacks [ CITATION Avo15 \l 1033 ]. As I
stated in milestone one, the current process(s) at Alaska Airlines included the top level
management change to begin with, establishing where they would meet, and then deciding on
how the change would be implemented. The recommended change was to create a forum for
all employees so they could participate actively and give their views and opinions. I stated in
milestone one as well the following guidelines for communicating and setting up a feedback
loop.
The following steps should be taken by the assigned members of the coalition tem in
order to create commitment across the board:
4. Open communication and dialogue
5. Set expectations
6. Set up and sign performance style contracts for vendors and employees
Once steps three and four have been implemented and completed a target outcome that
is achievable for Alaska Airlines would be to “improve its on-time departures from 70-75% to
an above average percentage and to have 90% on-time arrivals” [ CITATION Avo15 \l 1033 ].
Success will be seen when employees must be willing to accept and welcome the new
organizational vision, employees need to be held accountable and take ownership of flaws or
shortcomings. True success will be seen when employees believe that their opinion or view is
important to the change process and thus will lower resistance levels, concerns and anxieties.
At the end of the day it is most important to include all levels of employees, keep them
involved and/or interested in the change process by providing solid, consistent, and easily
understood information and updates otherwise they might disengage and the needed change
may fall short or even fail.
Forces, Barriers, and Hindrances
After several different issues arose both in and out of the control of Alaska Airlines over
several years, they began to realize that something needed to change. Alaska Airlines had
basically chosen to be complacent for a longtime, thus there be resistance in regards to change
efforts. One of the biggest issues that they would need to be overcome would be in getting
employees across all levels on board with the changes. Alaska Airlines would need to change the
current cultural norms that people were used to, labor relations, closing down of the Oakland
facility, and ramp outsourcing created a perfect atmosphere for resistance. As employees come
together collectively as a group, they can either help bring change or make the change effort fail.
Let’s look at an example of this which is when the Board of Directors for DeMoulas Super
Markets, Inc. (dba. Market Basket) tried to remove Arthur T. DeMoulas in 2014 and then make
the changes they felt were necessary, all the employees got together essentially crippling Market
Basket. In the end Mr. DeMoulas was able to take back the business helm and the changes the
Board of Directors wanted to make were never implemented[ CITATION Mar14 \l 1033 ].
Lack of trust and communication within Alaska Airlines was a big issue for a while.
Different areas and departments worked within their own silos and thus there was no need
interact or cross train with other departments. This helped to create a fear or standoffishness in
employees as they didn’t understand how the change(s) would affect them. Let’s remember
Newton’s 1st3rd law which is that for every action, there is an equal and opposite reaction. How
will Alaska Airlines change plan actions affect the employees and then their reactions? Alaska
Airlines did not look at the effects of what their actions may produce or other issues that might
be created. An example of this issue would be when they decided to outsource ramp operations.
This caused employees of Alaska Airlines to experience frustrations, anxiety and even animosity.
Management as a whole was ill prepared for any level of negativity that was received from this
decision to outsource ramp operations, therefore they were not fully prepared to handle all the
increasing problems.
Recognizing Resistance
Alaska Airlines had been depended on customer loyalty and the reserves they
accumulated during the good times [ CITATION Avo15 \l 1033 ]. Based on the model that, “it’s
ok if we are late as long as we are nice” and being an airline with “average” service seemed to be
working for Alaska Airlines [ CITATION Avo15 \l 1033 ]. Alaska Airlines had several negative
events happen over several years that lowered employee morale, such as; the crash of Flight 261,
the 9/11 attacks and the long, contentious contract negotiations [ CITATION Avo15 \l 1033 ].
"Resistance to change is a natural reaction when employees are asked, well, to change. Change is
uncomfortable and requires new ways of thinking and doing. People have trouble developing a
vision of what life will look like on the other side of a change. So, they tend to cling to the
known rather than embrace the unknown" [ CITATION Hea19 \l 1033 ]. Low morale creates
distrust which will create resistance. Why would one support the same people they don’t trust?
Alaska Airlines knew they had to come up with a plan to change the resisters to enthusiastic on-
board players.
Handling resistance to change is challenging for most and many fail due to a lack or poor
communication in regards to the urgency of the change. In order to minimize resistance of the
change effort organizations can create a more trusting environment as they are communicating
the urgency, explain clearly why the change is needed, and then how the change will benefit the
employees. Leaders that implementing a trusting environment is a strategy that can lead to
reducing resistance. It will gain the process flow to go smoothly, and employees are anticipated
to participate in helping with the change effort. Another way to reduce resistance is by
challenging employees to express their feelings about why they do not like change and their
views on the entire process. Including workers and listening to them gives them the impression
that they are important and involved in the company's efforts, and it also can become a positive
impact on the team. Alaska has, for years, depending on customer loyalty and the resources they
acquired through the good times[ CITATION Avo15 \l 1033 ]. Change will always breed
resisters, there is no way to avoid it. "The number of resisters can decline if the vision for change
is communicated with a sense of urgency and with constant, transparent communication"
[ CITATION Kot12 \l 1033 ].
Actions to Enable and Empower Employees
If you want to resisters to participate in the change effort, they need to be empowered by
enabling them to participate. Workers will act like they are empowered when employers make
them feel like they are in charge of the decision to change. When employees feel like they are not
empowered, they are less likely to take the lead or to perform better for the change. Leaders need
to allow employees to help identify the issues and listen to their feedback on how to create a
better process [ CITATION SNH \l 1033 ]. Employees need to be given the authority to make
decisions on their own without having to go through the “chain of command” to make a change
[CITATION SNH \l 1033 ]. Leaders can provide this type of empowerment by offering needed
support in a timely manner and eliminate obstacles and hindrances that increases wait times for
the support needed [CITATION SNH \l 1033 ]. Gleeson has some suggested steps to follow in
order to motivate employees to feel empowered as listed below[ CITATION Gle17 \l 1033 ].
1. "Communicating a Powerful Change Vision"- Alaska needs to have a vision statement
that makes all employees excited and motivated to improve their performance.
2. "Giving Emotional Support" – Alaska leadership needs to support its employees in
every step of the change and make them feel that the job they do is crucial for company success.
3. "Providing Training For The New Systems And Structures"– with proper training to
the new metrics that leadership implements in Seattle Hub, the airport workers, pilots, and all
staff members will be able to understand the need for change and to monitor their own progress.
Short Term Wins
Employees can encounter “change fatigue” due to going through many failed change
attempts [ CITATION Bod14 \l 1033 ]. Small changes can include things like cross-training,
streamlining of procedures and/or updating current computer systems. I feel that starting with the
simple tasks for the change is best and the more difficult tasks of the change will be meet with
less resistance and employees may stay engaged and enthusiastic. I would also say that
maintaining constant communication with all the participants in the change will smooth the
transition. I would celebrate the short-term wins with all levels of employees from managers to
subordinates at the same time. This lets everyone know that the organization is on the same team
working together towards a common goal. Cohen stated that “short-term wins need to be
measurable, visible, timely, and relevant to all workers, related to the change effort and
connected to the people who need to bring out the change forward” (Cohen, 2009). These
celebrations could be done by holding town hall meetings where you recognize those that helped
to make the change successful. Certificates of achievement could be handed out or have some
kind of party or mealy after each part of the change has been successful. This will let the
employees feel appreciated and that they are an important of the change.
Short-term wins can create a stronger bond and trust factor between leaders and
employees [ CITATION SNH \l 1033 ]. An atmosphere where employees can speak freely and
honestly about what they feel is either working or is not working will help to create a positive
environment for change. When management, leaders and employees have and maintain positive
two-way communication in regard to the changes being made, then the employees will feel that
they are included in making the change happen.
Recommendations for Implementation of final steps
In order for Alaska Airlines to truly implement the necessary steps of Kotter’s change
management process(s) they will need to set up a steering style committee that will essentially
oversee all processes, recommendations and committees as assigned. This steering style
committee will assign some of its members to monitoring and evaluating all change processes
for the entire term of implantation from the beginning until close. This will be an integral part
of task completion throughout the process of change management. The committee can be
made up of a variety of employees across all levels and areas. They will also need to
remember that when open, honest and transparent communication happens then success of the
change will also happen. Without certain critical elements, the change efforts will continue to
fail, create chaos, animosity, anxiety and lack of trust. A change effort can be successful when all
affected parties are included and informed. Final thought, “The change effort needs to start at the
top but then needs to be filtered down as well as out to get all the necessary people in place to
make the change effort successful” [ CITATION Bod14 \l 1033 ]. Based upon step 7 of Kotter’s
Change model we can see the consolidated change process happening in regards to gains and
implementation of improvements for Alaska Airlines. We were able to gains in employee
happiness, percentages of flights being on-time improved dramatically and even the creation of
nonstop flights. We can further see that changes were a good thing for Alaska Airlines when we
look at step 8 about institutionalizing new approaches through laser focus on main points such as
labor, employee retention, raising the bar of expectations, and balancing the priorities not only
from within but from the top down.
References
Avollo, B. J. (2015). Alaska Airlines: Navigating Change. Ivey Publishing.
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https://www.youtube.com/watch?v=PZFiN00QALE
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operational-performance-and-disruption-management/
Gleeson, B. (2017, March 21). 5 Ways To Empower And Engage Employees To Lead Change. Retrieved
from Forbes: https://www.forbes.com/sites/brentgleeson/2017/03/21/5-ways-to-empower-and-
engage-employees-to-lead-change/?sh=5d506dc318fa
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https://en.wikipedia.org/wiki/Market_Basket_(New_England)
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