Leading Management

Activity 10.2

1, Comment on success of change programs

In 2005 my company decided to restructure targeted markets in that some parts could not bring any profits, even make many losses. To decrease marketing costs, CEO planned to launch a quit program in which my company gave up non-profit parts. Thus some changes would happen in the company. Before change program was launched, there are steps taken by my company. First, the conception that change would be made, need to promote and explain to all employees and made them confident in changes which could bring employees benefits not career danger. Benefits from changes should be rooted in employees’ minds. Second, my company actively deployed mature market parts such as the increase in marketing expenses, excellent salesmen and employees’ welfare. Finally, CEO announced the whole change program and tried to keep sales team stable, retain preeminent staff and control the mount of cutting off employees.

2, Comment on being possible failure

Before the decision was decision, the company should carefully make researches and properly assess quitting necessity. If some parts of market were less potential, quitting strategy was the best choice for my company. If some parts held potential, perhaps the company paid less attention to them or these parts stayed in the beginning stage in which the company had to input more resources. Under this situation, if company decided to quit, the decision might influence the salesmen who worked in these regions. They might hamper the progress of change program so that this plan would not proceed and be suspended.

3, Comment on being possible success

Communication plays an important role in the process of change. Some misunderstandings derive from insufficient communication and unsmooth communication channels. In this case, my company