UPS Organizational Change

1
UPS Organizational Change

• Majed Almotawa
• Fenghua Chen
• Mandy Howarth
• Dana Jerome
• Anh Ly
• Erica Ramisch

2
Agenda

• Company background
• History of the Change
• Case Study Gresham Store
• Change Process
• Change Model
• Force Field Analysis
• Restraining Forces Blocking Change
• Strategies to Lessen Resistance
• 8 Stages of Large Scale Change
• Conclusion
• Successes in Change
• Recommendation

3
Background

• Founded 1907
• 1913 Merger
• 1919 Renamed United Parcel Service
• 1999 UPS went public
• 2001 UPS purchased Mailboxes Etc.
• 2003 UPS unveiled a new worldwide branding
  program that included
• a new logo
• web site
• redesign of all 66,000 UPS vehicles

4
History of the Change

• What Mailboxes will see happening from the
  change
• Name change
• Concern from franchisees
• Profits decrease? (UPS lowered retail prices in
  UPS Stores)
• Loss of branding, franchising options concerns

5
Before and After
6
Interview (Gresham Store)

• Interview of two employees (February 13)
• Key questions asked during interview
• Background
• Strategy of Change
• Core Characteristics of Culture
• Adaptive Orientation
• Corporate Culture Index

7
Organizational Structure
UPS Sales Representative
Store Manager (Owner)
Employee
Employee
Employee
8
Change Process

• Change Model
• Force Field Analysis
• Restraining Forces Blocking Change
• Strategies to Lessen Resistance
• 8 Stages of Large Scale Change

9
The Change Model
Major
4
2
High Resistance Low Chance of Success
UPS Store Some Resistance Moderate Chance of
Success
Impact on Culture
3
1
Some Resistance Moderate to High Chance of Success
Low Resistance High Chance of Success
Minor
Degree of Change
Minor
Major
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Change model

• Minor Changes
• Remain same daily operations
• Suppliers changed
• Worker safety training
• Major Impact on Culture
• Uniform and name badges required
• Formal emphasis on customer service
• Numerous UPS management directions
• received daily
• Lack of autonomy in decision-making

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Force Field Analysis
Restraining forces put pressure on store not to
change
Employees do not understand and supplier choice
Communication overload/ micromanaging
Sharing information aids understanding
Cost effectiveness of common supplier
Driving forces put pressure on organization to
change
12
Restraining Forces Blocking Change

• Uncertainty regarding change (the Comfort Zone)
• Disruption of routine
• Loss of existing benefits (whats in it for me?)
• Threat of position power
• Redistribution of power
• Conformity to norms and culture

13
Strategies to Lessen Resistance

• Education and communication
• Participation of members in the change program
• Negotiation and agreement
• Climate conducive to communication
• Reward systems

14
8 Stages of Large-Scale Change

• Increase urgency
• Build the guiding team
• Get the vision right
• Communicate for buy-in
• Empower action
• Create short-term wins
• Dont let up
• Make change stick
• - John P. Kotter

15
SeeFeelChange Model

• Help People
• See
• Feel
• Change
• - John P. Kotter

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Successes in Change

• Worker safety training
• Better organization of stores
• Brand recognition
• Overall high employee morale
• Good preparation for the change
• Store managers style remained the same

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Recommendations

• Make change stick change micromanaging
• Give employees autonomy for store layout
• De-emphasize formal rules on customer service
• Increase district sales representatives contact
  and communication with store employees
• Provide better support and listening from UPS
• Increase employee participation

18
Questions???