A Case Study of Change Management from External Forces: Dell Computers

A Case Study of Change Management from External Forces dell ComputersTwo things characterize the business environment today they atomic number 18 competition and change. Therefore, todays environment puts a premium on effective attracting. In fast- changing, team- oriented environment, managers read effective leadership skills so they bottomland motivate k directlyledge workers, build self-managing teams, and lead transformation.In 1994, Dell was a struggling, the party ordered its comp starnts in advance and manufactured to inventory. Change was needed and was triggered by factors outside the comp whatsoever. The recent business model that Dell implemented converted its operations to a build-to-order process, eliminated its inventories through a just-in-magazine system, and sold its products directly to consumers putting these new supply chain capabilities at the core of its strategy. Dell developed a supply chain mastery that went far beyond the simple pursuit of capabil ity and asset productivity. However, the company had to cave in a series of very difficult strategic tradeoffs to bring its functional activities into alignment with its new business model. (Copacino, 1999).James burn who wrote a book about called Leadership says changes like these require the guidance of transformational leaders who bring out change, innovation, and entrepreneurship. They argon responsible for leading a corporate transformation that recognizes the need for revitalization, creates a new vision, and institutionalizes change. Transformational leaders inspire their fol lowlyers to want to make the change and attempt to raise the needs of followers by promoting dramatic change in individuals, groups and agreements. Such leaders also encourage and obtain performance beyond expectation by formulating visions and then inspiring subordinates to mesh them. They focus on accomplishing the task at hand and maintaining good work relationship. It is common for the transform ational leader to passionately communicate a future idealistic organization that contribute be sh ard. He or she uptakes visionary storys to illustrate what the employee work group can accomplish in order to motivate the employees to achieve these organisational aims. Therefore, a transformational leader could make the company more successful by valuing its associates. One such example is Dell CEO Michael Dell who did it installing one of the worlds virtually sophisticated direct- sales operations eliminating resellers markups and the need for large inventories, and keeping a viselike grip on cost.Dells mission statement is be the most(prenominal) successful computer company in the world at delivering the customer service experience in markets we serve. With their markets changing so fast Chairman Michael Dell had to constantly focus his companys and employees attention on the companys mission. He has been quoted saying that looking for value shifts in the companys mission comp anys customer base is the most important leadership responsibility. In other words, Michael Dell had to constantly monitor what Dells customers want in terms of value. He had to stay in close contact with customers, and make veritable that everything Dell does, Dell is addressing the customer needs.How do you build such a company? For Dell computers, the answer meant using technology and information to blur the traditionalistic boundaries in the value chain among suppliers, manufacturers, and the end users it fundamentally meant that there are no intermediaries like wholesalers or retailers to come between Dell and its customers and suppliers thus, Dell can be much faster- moving company that it magnate otherwise be. For most computer companies, the manufacturing process is like a relay race components come in from suppliers, these components are assembled into computers, and the computers are then handed off to be distributed through wholesalers and retailers to the ultimate cus tomers. Dells system changed all that. Dell interacts with and sells to customers directly, so it eliminates the activities of the wholesalers and retailers in the traditional distribution chain.The stream economical crises are having a tremendous impact on how companies do business. Even one of the worlds biggest computer companies, like Dell has experienced this recession and had to make critical and dangerous decisions of lowering down the cost of expenses and tightening their belts. Today, Dell Inc. is cutting costs to weather a soft PC sales market, and however founder and CEO Michael Dell is feeling the pinch. The company disclosed proxy information that showed his total compensation declined by more than $200,000 in the latest financial year, to $2.1 million. The decline came mainly in the value of option awards, which were higher the previous year. Michael Dell received $931,731 in salary, stock options the company valued at $16,766 and ad hominem security services valued at $1.1 million. Because Dell Inc.s bonuses for senior executives are tied to company performance, Michael Dell did not receive a bonus in the latest year, just as he has not the past three years. (Ladendorf, 2009).Meanwhile, to cut operational costs and to save funds, the company has shut down factories and outsourced ironware manufacturing. Also, the company has laid off 1,900 employees and shifted its European PC manufacturing operation from Ireland to Poland. Like many companies, Dell has also been looking down the road and plans on spending $70 billion on computer parts from China between 2007-2009. Thats a lot of cash, but this could also save the company in a recession when battalion do not have much money and want much cheaper computers. Dell also cut 10% in orbiculate jobs last year, and announced further job cuts at its Ireland sites earlier this year. But what I found most interesting is the acquisition of David Johnson the former top IBM Corp. in early June. Althoug h IBM still is pursuing a lawsuit against Johnson, saying his move to Dell Inc. violated a noncompet agreement recent court rulings have freed him to gather up an active map guiding Dells acquisition strategies. Johnsons hiring could be a signal that Dell intends to buy other companies, a growth strategy it has used little often than many of its industry peers. CEO Michael Dell also is expected to talk about the companys growth prospects, both from existing operations and from any companies that it might buy.Analysts are split on whether Dell will try to do big, transformational deals that would change the makeup of the company, or smaller, less risky acquisitions. A.M. Toni Sacconaghi with Bernstein Research said he expects Dell to make smaller deals as it tries to bolster its corporate-oriented service and product offerings. He quoted Brian Gladden, Dells chief financial officer, as saying the company is unlikely to do big deals and that it viewed its $1.4 billion acquisition o f EqualLogic last year as the sweet spot. EqualLogic, which sells data storage systems, is Dells largest acquisition to date. Sacconaghi concluded that for Dell, smaller deals make sense because no obvious transformational targets exist, the odds of successful integration of the acquired company are better with smaller deals, and large acquisitions could distract top executives from the their two-year campaign to turn the company around integration of the acquired company are better with smaller deals, and large acquisitions could distract top executives from the their two-year campaign to turn the company around. (Ladendorf, 2009).One environ Street analysts who follows Dell Inc. say theyve been impressed by the companys ability to cut costs and generate cash flow in the face of a imbibe industry downturn. Forward-looking businesses are using IT to target unnecessary cost and complexity, Dell said. Dell Inc. will continue to tap into IT for innovation and efficiency, and doing so now Dell Inc. will set itself apart as the globose economy inevitably improves Dell identified three keys to smart ITIncreased standardization and virtualization bump resource management that reduces IT maintenanceGreener computing that not only reduces carbon emissions but saves on energy costs.Dell itself has reaped the benefits of such IT improvements facility improvements and a global power-management initiative that switches off computers when not in use is saving the company about $3 million a year and reducing its carbon remnant by some 20,000 tones. (Greenbang, 2009).Today the Dell machine is firing on all cylinders. In addition to being a PC juggernaut, Dell is moving fast into the $10 billion network server business. In notebook PCs, Dell has become the sixth-largest seller in the $40 billion market. Now, Dell is working on ways to combine its PC knowhow with better networking service. Through a partnership with network equipment maker 3Com Corp., Dell is trying to slas h the 60 to 90 days required to test computer and networking configurations to just two weeks. Instead of separately running independent tests of the same gear, Dell will deliver to 3Com each new computer so that 3Com can test compatibility with its networking devices (Business week).Leading and organizational change can be treacherous there are no capital bullets or single- shot method of changing organizations successfully. (Ashford University). Single shot rarely hit a challenging target. Usually, many issues need simultaneous attention and any single, small change will be absorbed by the prevailing culture and disappear the change may require the cooperation of dozens of managers and resistance may be considerable. However, whether the required change is simple or complex, technological or structural or the basic organizational change process remains basically the sameexecutives must ask themselves three basic questions. What are the forces acting upon them? What should we ch ange? And how should we change it?According to Hesselbein and Cohen (1999), organizations that take the time to teach leadership are far ahead of the competition. By becoming familiar with the transformational leadership approach and combining the four Is, (idealized influence, inspirational motivation, intellectual stimulation, and individual consideration), managers should be able to pull off the unforeseen change more effectively. Transformational leadership strategy must also make sense in terms of the business overall competitive strategy. Today, leaders have to be able to transform their company fast.Socio Economic Inequalities HealthSocio Economic Inequalities HealthResearch on health inequalities is grounded in complaisant epidemiology, which explains how commonwealths cordial circumstances affect their health ( graham flour, H 20075).Explanatory frameworks have been presented and theories proposed in order to explain the variations in health across social conformatio n (Asthana, S Halliday, J 200645). This essay will discuss and analyze the sociological theory necessary to understand social class inequalities in health within the UK. Implications for health policy and practice will also be discussed.DiscussionSocio-economic inequalities in health demographic, mortality and morbidity informationReports outlined since the 1980s the extent of which ill-health and end are unequally distributed among UK The Black Report (1980), Health Divide (1988), The Acheson Report (1998), The Solid Facts, WHO (2003), The Marmot review (2010).These documents identified a social gradient in health socio-economic status (SES) influences health, whereby higher position equates to better health (Caspi, A Poulton, R 2003). From here, sociology found a correlation between mortality against social position. Britton et al (1990), Rosato, M et al (1998), Reid, A Harding, S (2000a)(2000b) Asthana, S. et al (2004) Marmot Wilkinson, (2005) Barry Yuill, (2008) Health ke n for England (HSE) provide information on mortality and morbidity by social class people in class I have longest life expectancy while people in Class IV have the shortest life deny mortality is greater in Wales, Scotland, N. Ireland and N. England than in S. England same imitates appear for IHD, stroke and cancer mortality in between social classes, but is less homely for accidents and suicide risk of developing chronic illness in adult life is high for people with low SES youngsterhood mortality is more customary in socially disadvantaged groupsSociological theory The cultural / behavioral explanationIn this argument primary responsibility for the dissimilarial between social position and health is trampd within the individual, rather than the larger society a culture of poverty approach(Matcha, D.A 200390). Explanations focus on the way individuals from different social groups lead their lives (Clarke, A 2003122). Smoking, alcohol, diet and exercise are chosen for detaile d enquiry, as they are thought to be voluntary options (Blaxter, M 1990113). kindly epidemiologists identified a hard and a soft version of cultural/behavioral explanation. Both versions start by observing that health-damaging behaviors are more public among the poor than the socially disadvantaged (Asthana, S Halliday, J 2006). The hard version implies that behaviors are voluntary, the result of individual decisions (Blaxter, M 1990) thus, the fact that people adopt sore-eyed behaviors is due to ignorance, recklessness or fatalism (Asthana, S Halliday, J 200626).The soft version suggests that rather that seeing health-related behaviors as a cause of health inequalities, they should be seen as outcome or consequences of differences in the material circumstances between socio-economic groups behavior as a result of culture (Asthana, S Halliday, J 200627). For example, in Britain take displays a clear class-gradient the less advantage social class, the more likely is the indivi dual will smoke (Bartley, M. 200465). Townsend, in 1995 shows that 70% of single parents on low income, social housing, manual occupations, with few educational qualifications, are regular smokers. Also, in 1998, The Office for National Statistics showed that levels of smoking for men were 12% for class I and 41% in class V.However, in sociological research focus exists on behavior rather than culture (Woodward et al, 1992 Lynch, Kaplan and Salonon, 1997b) because reckless behavior is not accepted as a definition of culture (Bartley, M. 200468).Bosma, Von Mheen and Mackenbach, (1999a) (cited in Bartley, M 200466) suggest a direct behavioral model in which people with low status and income are less endowed with intelligence and coping skills which make them unable to grasp the long-term health consequences of things that give them short-term pleasure (e.g. smoking, drinking, etc).Regarding education and behavior Blaxter, 1990 Gran, (1995), Hoeymans et al., 1996 (cited in Bartley, M. 2004) find that education is correlated with health behavior educated people have a better understanding of health. They also make better use of preventive health measures such as contraception, screening services or immunization. For example, a survey published in 2007 by Health spate for England (HSE) intelligent lifestyles knowledge, attitudes and behavior 30% men and 24% women agreed with the statement I get confused over whats supposed to be healthy and what isnt(p. 108).Marmot et al (1981 ) that individuals from class V have high incidence of CHD due to diet being higher in sugar content than in fiber. National Food Survey (1985) shows that low-income groups purchase less vegetables, fruits or whole meal bred.Behavioral explanations view consumption patterns as a reflection of cultural differences in the way people live their lives. Lifestyles are thought to be shaped by traditional views and socially accepted patterns of behavior. The fact that low income may constrain food choice is ignored or rejected (Clarke, A 2001 123)Critique and weaknesses of the cultural/ behavioral explanationThe problem with this explanation is that it separates behavior from the social context of use in which it takes place and effectively blames the victim of health inequality for the poor health that they experience (Asthana, S Halliday, J 200626). Instead, individual decisionmaking should be seen in the context of the social structure and of the constraints that impede the behaviors of people.In support to this, Dobson et al 1994(cited in Barry Yuill 2006) researched forty-eight households to observe food purchasing and attitudes toward eating. They found a pattern of life under constant economic restrictions. Also, in 1991, the national Childrens Homes survey on nutrition and poverty finds that 1 child in 10 and 1 adult in 5 skip meals because of costs. Thus, it is not people failing to practice good health habits but their choice is affected by control funds (Barry Yuill 2006108). Also, in an HSE survey (2007) 22% men and 20% women agree, it costs too muchto eat healthy (p. 108). In 2010, The Marmot Review emphasized that insufficient funds to lead a healthy life is a significant cause of health inequalities (p. 29)Although health-damaging behaviors are more common among low groups, these groups also lack adequate income, graceful housing and secure duty. Therefore it is hard to separate behavioral explanation (Gatrell, C.A 2003 113) from structural/material explanation (poor housing unhealthy life) and social selection explanation (poor health for low class unhealthy life)Health policy response to inequalities in health linked to social classAdvocating healthy public policies is the most important strategy we can use to act on the determinants of health. (CPHA Action Statement on Health Promotion 1996)Up to date health policies accept The New NHS (1997) A First Class Service (1998) Choosing Health (2004) The Wanless Report (2004) Tacklin g Health Inequalities (2008) Darzi Report (2008) The Marmot Review (2010)The Marmot reviewPolicy objectives A-F Give every child the best start in life Enable all children, young people and adults to maximize their capabilities and have control over their lives Create fair employment and good work for all Ensure a healthy standard living for all Create and develop healthy and sustainable places and communities Strengthen the role and impact of ill-health prevention. (UCL Research Department of Epidemiology and Public Health, 2010)Implications for health care practiceImportant documents Choosing health making healthy choices easier (2004) and Health Challenge England (2006) people need convenience and choice in advice available to prevent ill health.Health care practice can contribute to reducing health inequalities through appraisal / use of evidence accurate assessment of peoples health promotion needs linking evidence of practice outcomes to broader changes Strategy population spe cific health care strategies acquire the promotion/prevention/treatment balance right Communication Collaboration 1.collaboration with people involving and engaging most excluded 2.collaboration with MDT assessing / implementing / evaluating / updating Training improving training and captain development, particularly in relation to work with most disadvantaged Service development being well informed about health inequality trends, impacts and disturbance effectiveness Service access reducing financial barriers to health care Resource allocation making conscious, informed choices about priorities.(Wiseman, J 2007)(Choosing Health 2004)The time for action on health and health inequalitiesHealth in the consumer societyChildren and young people starting on the right pathLocal communities leading for healthHealth as a way of lifeA health-promoting NHSMaking it go along national and local deliveryConsultation making it happenAssessment suitable assessment of local needs (collabora tive therefore patient and public involvement / use of evidence)StrategyCommunication appropriateness (methods and means)Service inevitably (recruitment, training)Resources (access, materials, skills mix MDT?, suitable tools and interventions)ReferencesAsthana, S., Gibson, A., Moon, G., Brigham, P. and Dicker, J. 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