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Using action research a manager needs to diagnose and analyze the organization. Understanding the desired state, acting on the changes to reach those goals, evaluating the actions and continuing research are the steps needed to begin the process. Using organizational development can help with the resistance to change that sometimes leads to failure of the change. According to Lewin's force-field theory a company should expect the force of resistance to be present. Sears needs to prepare for this resistance and strengthen the forces for change. "A variety of OD techniques can be used at the organization level to promote organization-wide change" (Jones. 2013. p. 299). Organizational confrontation meeting is a great technique to help bring the team together and communicate the plan of action. Communication is essential to create a positive culture.
An understanding of how Sears has progressed from birth, growth and decline are important. The decline is the stage just before death on the company. Sears is in the decline heading toward the death. According to the article Four Strategic Mistakes That Haunt Sears, Sears has made some errors in their planning that have lead to the decline. In 1981, Sears stretched out of their core competencies to financial and real estate services. In 2006, Sears made some operational restructuring decisions that was also unsuccessful. The third mistake was the sale of main brands and stores causing the loss of economies of scale. The company is slowly liquidating its assets. This is the final stage of a company's lifecycle. The fourth mistake made by the company was decisions being made too far from the front line (Mourdoukouts. 2015). Employees are dissatisfied with the treatment they receive and expectations are unreasonable. Lessons can be learned from the failures of the company. Adapting to change and restructuring to plan for the future is necessary for the survival of the company. The company needs to regroup and go back to their core competencies. Restructuring the levels of hierarchy can allow for more innovation. The employees at the frontline know and understand what the consumers want and need. Allowing for innovation can allow employees to feel more connected to the company. The culture change will help get employees onboard and motivated. The experience the employees have sets a tone for the customers. The end result is satisfied customers. Organizational structure needs to change in order to allow for innovation. Sears needs a new business level strategy to target markets that are not already saturated with competitors. Adjustments need to be made to accommodate the different areas being served. Invest in employees. Investments in expand Sear's online services and use of technology can bring them up to speed with their competitors. "Ford, Sears, and Kodak have all experienced enormous problems in the last decade adjusting to the reality of modern global competition and have seen their sales and profits fall dramatically" (Jones. 2013. p. 15). Sears needs to tap into technology and get back to the global competition. Use of technology can offer assistance in logistics. Walmart is successful because they have the logistics system perfected. Sears should use their resources to invest in such a system to help with efficiency. Restructuring the organization requires cooperation from all areas in order for the company to survive.
Both Walmart and Apple are held out as models of exemplary supply chains by our case writers.
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