Q4. In most management contexts, there is no “one best way” tomanaging resistance. Explain the organizational development ( OD)approach that was applied in the case study by Rose reflecting itfrom the different approaches to managing resistance in your coursework.
Case study
MARKS AND SPENCER
Stuart Rose, the CEO of Marks & Spencer, startedwith emphasising the critical need for change – by emphasising thatthe current state was untenable. Rose noted that inventory was notbeing managed effectively, decision making was being delegatedwithout accountability or senior management sign-off, and customers werebeing attracted to newer, dynamic competitors. Change wasimperative.
Rose started the change process with a core team oftrusted people he had worked with – and he knew their strengths.Rose brought with him the Executive Director of IT, Supply Chain,and Property, and the Executive Director of Marketing and StoreDesign. With this core team, Rose was “able to hit the groundrunning.” Rose described the period prior to his leadershipunflatteringly as the “consultant years, which were awash innumbers and surveys and complexity.” Rose reviewed the current useof consultants, and eliminated all but 10 of the consultants’ 31existing “strategic projects.” For Rose, the change was simple:“improve the product, improve the stores, and improve the service.”Rose provided a simple, accessible and operational guidingvision.
In addition, he reinforced the communication of themessage symbolically to reinforce the point, and focus energyaround the core direction. Rose drove the change down into the“DNA” of the organisation not only by putting everyone throughtraining on the basics, but sat in on operational day to daymeetings to the “level of micromanagement” to focus theconversation in detail on the key points. Incentive structures wererealigned to reward service performance instead of seniority,redefining the career progression path. The entire 56,000 strongworkforce was put through motivational training sessions focusedaround teamwork and customer service.
Rose encountered an environment where “people withinMarks & Spencer were already lobbying for different plans,different strategies.” However, because “the Christmas season isthe key to the entire retail year and how industry analysts gauge acompany’s health”. There were clear timelines to achieve results.There was no time to try one direction and perhaps change to adifferent course if that didn’t work. Rose committed to thedirection he had selected, and “there was no Plan B.” That is, Rosecommitted to letting go of alternative ideas and the status quo,and committed the organisation to the new path
