The Change Analysis - Images of Change

Keller Graduate School of Management

John Sanders
HRM587 - Managing Organizational Change
Professor Durbin
May 18, 2014










Contents
Blockbuster vs. Netflix ................................................................................................................................. 3
Pressure for change ....................................................................................................................................... 3
Blockbuster ............................................................................................................................................... 3
Unintended consequences ............................................................................................................................. 3
Blockbuster ............................................................................................................................................... 3
Unintended consequences ............................................................................................................................. 4
Netflix ....................................................................................................................................................... 4
Lessons learned ............................................................................................................................................. 4
Blockbuster and Netflix ............................................................................................................................ 4
References ..................................................................................................................................................... 6


Blockbuster vs. Netflix
Blockbuster video was the biggest video store in the United States. This company failed
in the end because it rested on its laurels and did not take time to adjust so that it could take full
advantage of technological changes to meet the demands of the customers. Blockbuster also
forgot to size up the competition that was sitting in the chair next to them (David, F.).
Pressure for change
Blockbuster
Blockbuster struggled with innovation concepts in its offering to its customers, they
relied on brick and mortar where Netflix simply chose clicks with no bricks.
Blockbuster placed a great deal of focus on how to become more effective in the companys
brick and mortar business, redefining company objectives and direction (Westwood, J.). I have
identified different images that Blockbuster used.
Director: Based on an image of management as control and of change outcomes as being
achievable. How this image differs: Supported by the n-step models and contingency
theory.

Coach: Relies upon building in the right set of values, skills and drills that are deemed
to be the best ones to be drawn upon in order to achieve desired organizational outcomes.
How this image differs: Related to OD approaches

Unintended consequences
Blockbuster
Employing this theory failed the company. Leadership's decision not to pledge the same
level of focus on the click initiative which the company needed to become competitive with
Netflix. Netflix executives understood that an emerging technology was rapidly changing the
delivery of movie rentals (Robbins, S. P.). The CEO of Netflix realized his company needed to
enter into the industry with a strategy that not only embraced, but was ahead of the emerging
technology capabilities (Stross, R.), he planned to be a competitor of customer convenience
virtually changing the movie rental industry. I have identified different images that Netflix used.
Navigator: Control is the heart of management action, although a variety of external
factors mean that managers may achieve some intended change outcomes and others will
occur over which they have little control. How this image differs: Know the directions
and be sure that they know exactly where to go, pay attention to where the driver is
going. Focus by not distracting don't let the drivers get off the path take or give one
directional step at a time so as not to overwhelm the driver. Keep calm and don't panic if
the driver misses a turn. Find an alternative route their keen sense of direction.

Coach: Netflix built the customer base on the right set of values, the best ones to be
drawn upon in order to achieve success. How this image differs: Related to OD
approaches

Unintended consequences
Netflix
Not listening for the pulse almost ruined the company(Robbins, S. P.). Executives
decided to split the company into two different companies, the move took Netflix to the brink, in
two-weeks they lost over a half-million customers. Although they were the leader in streaming
and mail order video, executives thought that they could change their business strategy without
any repercussions, for awhile it looked like Netflix would go the way of the dinosaur. After
much public marketing and returning the model back to just Netflix the customer base slowly
started coming back.
Lessons learned
Blockbuster and Netflix
Conduct ongoing risk assessments of what could go wrong with the consumers and
always have a mitigation plan(David, F.), Blockbuster didn't have a fallback plan.
Understand that no one likes surprises and introduce the changes accordingly Netflix should
have known that a surprise rate increase, a new company name, etc. was too much within a short
amount of time. Communications should be executed early on to gain buy in(Robbins, S. P.).
Netflix should have taken a pulse by asking the customers how they felt about a new service and
could have offered an incentive to consumers to accept the change rather than forcing the new
strategy.



















References
David, F. (2013). Strategic Management, 4thEd. New York, New York: MacMillan Publishing
Robbins, S. P. (2011). Know The Customer, Be the Customer (9th ed.). Upper Saddle River,
N.J.:Prentice Hall.
Stross, R. (2012) Why Bricks and Clicks Don't Always Mix. New York Times, Digital Domain.
Westwood, J. (2013). Creating Success: The Successful Business Plan: McGraw Hill