Managing Change at Evon International

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Managing Change at Evon International

Introduction

The approach of transitioning/shifting the organization from the current state to a desired future state is called Change Management (Changemanagement, 2013). Evon International, a manufacturer of cosmetics, soaps etc, is now being headed by a new chief executive Eve Gardener. As a chief management expert, we have been asked to advise Eve of the possible implications of going through with such a change initiative.

Discussion

Actions undertaken to execute a transformational process is called a change initiative. A well thought out change initiative begins with planning which is then followed by communicating it to those who are going to implement change. The central idea is to solve the existing problems by analyzing and evaluating the situation and coming up with a solution which can be readily implemented.

The objective of a change initiative will need to be considered in the context of Evon International. A successful change initiative will have to result in an increase in profitability, market share and return on assets. Evon Intl. has several functional departments therefore it should ensure that authority between project managers and functional managers is appropriately balanced (Changemanagement, 2013). One of the primary objectives of change imitative should be to make everyone accountable for achieving their benchmarks. If the sales division continually meets its benchmarks the problem of declining market share can be solved. Another objective of a change initiative is to uplift the morale of employees so that they are motivated to perform their duties efficiently. For example if the manufacturing and logistics division improve the productivity and efficiency of their processes the problem of declining profitability can be resolved. Change initiative should look to achieve the strategic objectives of Evon Intl. It should identify processes that are failing to deliver and attempt to eradicate any bottlenecks involved.

The change should focus on areas which require immediate attention. Cosmetics, soaps, detergents etc. come under the category of household items. Successful change initiative will help to identify areas where problems persist. For example, the marketing function may not be able to target appropriate segment leading to a declining sales and declining profitability. Change should focus on root causes of a problem. The concept of a change initiative and “Turn around strategies” is somewhat similar as both of them aim to eradicate deficiencies and provide a solution.

Eva Gardener is advised to focus on cost cutting to ultimately improve profitability and at the same time consider new ways of boosting the sale of existing product as cost cutting might result in redundancies which will have its own implications. As a part of a change initiative, Eva is advised to consider Boston Consulting Group (BCG) matrix as it might indicate that some of the products are at the declining stage of their lifecycles resulting in a failing market share (valuebasedmanagemnet, 2013). New Product Development (NPD) might lead to a better market share position. So Eva should not only focus on cost cutting, she should also focus on ...