CHANGE MANAGEMENT

Change Management at UPS



Change Management at UPS

Change Management

Modern organizations face significant shifts in the environment. Technological developments force companies to adopt new technologies and build new interfaces with customers and suppliers. Industry consolidation has increased pressure on senior management planning as the number of mergers and acquisitions grows. Company products are becoming commodities. Competition for customers and resources is growing. This pressure forces companies to change strategies. However, the success rate for strategic change programs may be as low as 30 percent (Balogun & Hailey, 2008, Pp. 1).

Organizations need to realize that implementing strategic changes takes a lot of energy and time. Find ways to make this time, for example by advising top management on the timing and timeline of the strategy implementation, or by delegating operational tasks to others. Implementing change is a complex and demanding task (Parry, 2002, Pp 36-69). Unbiased assessment of strengths and weaknesses is needed. Remedial training and coaching should be available. Top managers need to analyze the desired type of strategic change. If the strategic change has to be implemented quickly and top down (which is the case, for example, with lay-offs and reorganizations), set clear and smart targets and provide middle managers with a roadmap that explains the goals, timeline, responsibilities, and mandates. If the strategic change can be developed over a longer period of time, recognize the possible strategic value of middle managers and involve them in the development phase (Sharma, 2006, Pp. 239).Company Overview

Founded in 1907 and based in Atlanta, United Parcel Services (UPS) is the world's largest package-delivery firm and it transports more than 3 billion parcels and documents per year (over 13 million per business day) throughout the United States and to more than 200 countries and territories. The company dominates the United States in ground delivery of parcels and is slowly gaining on FedEx in air delivery market share. UPS has diversified from its origins in the ground transportation segment of the US parcel market by expanding internationally, investing in new technology and developing new business areas such as trade finance. In overseas markets, UPS has yet to achieve its US dominance but continues to expand through acquisitions in the Asia-Pacific region, Latin America and Europe. UPS has regional air delivery hubs in Canada, Germany and Taiwan (Kinder, 1999, Pp. 7).

With the rise in internet and information technology, non-package operations make up the fastest-growing business component at UPS. These operations include supply chain management, logistics services and the development of e-commerce services. Subsidiary UPS Logistics provides supply chain re-engineering and transportation management, and with the acquisition of Fritz, it offers customs brokerage and freight forwarding. UPS has launched e-Ventures to develop businesses that will expand the company's role in e-commerce (Schacter et. al, 2004, Pp. 76).

UPS' industry revenue grew at an estimated 2.2% per annum over the five years through 2010. This is mostly in line with industry revenue growth. Therefore, UPS is estimated to have maintained its market share over the ...