HOW TO LEAD ORGANIZATIONAL CHANGE & INCREASE EFFECTIVE LEADERSHIP (Example Case Study)

There are times when it may be necessary to lead and implement certain changes within an organization so that it can become more successful and foster effective leadership. One present example of an organization where this needs to be done is called Iggy’s Bread of the World, which is owned by a couple named Igor and Ludmilla Ivanovic. They have requested this change because they're unable to exhibit effective leadership while also honoring the organization’s ongoing mission statement.

 This states that “the mission of Iggy’s Bread of the World is to make breads of the highest quality and then deliver them daily to our customers with the highest standards of service and integrity. We are committed to providing a nurturing and respectful environment at our workplace that fosters cooperation, communication and a sense of accomplishment for all employees. We provide tools for growth through education, health benefits and access to alternative medical treatments. We provide leadership through department managers who are motivated, responsible, willing to listen and willing to follow through. We all work together as a team toward the goals set forth in our mission” (Harvard Business School Publishing. 2000. p. 1). 

Therefore, the overall purpose of this work will be to discuss how their goal to ensure effective leadership while also honoring the organization’s mission statement can be accomplished through strategic changes. This overall discussion will also involve further discussion of five specific areas. These areas include identifying the changes that Iggy’s has experienced since its beginning, the changes that need to be made now, identifying resistance that may occur and by who, and developing and implementing a plan that can effectively create these changes.

Changes That Iggy’s Has Experienced Since Its Beginning

When considering how I can accomplish a goal to ensure effective leadership while also honoring the organization’s mission statement, it is important to first learn what changes have already occurred since the organization began. This is important because it will help me understand what strategic changes may need to be implemented to meet this goal successfully. After viewing all aspects of this case, I do see that Iggy’s has experienced several major changes since opening in 1994 (Harvard Business School Publishing. 2000).

One change is that Igor and Ludmilla were initially responsible for managing all aspects of the organization. This included staffing, baking, visiting with potential account holders, writing invoices by hand, and making deliveries. However, now these tasks are completed via 116 employees and an outside management team. While, a second change is that Iggy’s had to move their kitchen from a small place in Watertown to a large warehouse in Cambridge. The kitchen equipment that they are now using is also so specialized that they can’t get parts in the US, so these have to be shipped from Europe, which cost more money. However, as a result, the organization has grown their annual gross sales to 6 million with 300 active accounts, which is much higher than when they initially began (Harvard Business School Publishing. 2000).

Furthermore, a third major change is that a new chief operating officer named Matthew McRae was brought on board in 1999. Three months later, he hired the outside management team that currently handles most of the organization’s business needs. Although, due to the ongoing issues associated with this organizational structure, he recently handed in a resignation because he believes that Igor and Ludmilla are not prepared to handle his type of executive leadership. However, he then withdrew his resignation one day after submitting it (Harvard Business School Publishing. 2000. p. 1).

Changes That Need to be Made Now

Since all of these changes have occurred, it has also decreased Igor and Ludmilla’s current level of direct influence that they have with the baking, employee cooperation, communication and many other aspects of the organization. Therefore, it is important to implement strategic changes that can address and improve these factors. Some major changes that also need to be made will need to include a way that Igor and Ludmilla can increase their level of influence, effectively manage their chief operating officer, and decrease annual costs. 

What Resistance May Occur Due to These Changes and by Who

When changes are implemented within an organization, there are many times when resistance will occur. This can happen because some employees may not agree that these changes are best for the organization or they have become too accustomed to doing things a certain way and don’t want to change. In this case, I think that the main people who will exhibit resistance to change are Matthew McRae and the members of the outside management team. This is because these individuals have been responsible for most of the major decision-making since initially being hired, and they may not want to lose their overall current level of power and control.

Developing and Implementing a Plan to Effectively Make Those Changes

In order for Iggy and Ludmilla to successfully increase their level of influence, manage their chief operating officer more effectively, and decrease annual costs, while ensuring that their mission statement is honored, I will implement specific changes. Which changes will be developed and implemented based on further analysis of certain areas. These areas may also include: Adaptation to the Environment, Efficiency and Process Reliability, Human Resources and Relations, Competitive Strategy, and Management Programs, Systems, and Structures (Yukl. 2013).

With this plan, the first change will be to determine if Matthew McRae and the outside management team should be employed with this organization. This is because they have made several changes that Iggy and Ludmilla do not agree with and Matthew has also threatened resignation if his demands are not met. I don’t think that forcing the decision-making process in this manner is the best action to take for any owners of an organization because they lose power and control, which can jeopardize their overall mission (Harvard Business School Publishing. 2000).

The second change that I will implement is to determine if there are other employees who may not be needed to acquire continued growth within the organization. This is because if Iggy and Ludmilla can lower their current rate of employment, they may reduce costs and still make an annual profit. This is also an important step because there may be several employees who have been hired by the outside management team who are not needed because Iggy and Ludmilla can take over the responsibilities that are required in their positions.  

A third change that I will make is to investigate further options concerning the kitchen equipment that they use. This is because the shipping fees associated with this equipment may be costing the organization more than they need to pay to manage it successfully. I would also start this process by determining if there is lower cost American made equipment that can replace the specialized tools that they are using now (Harvard Business School Publishing. 2000). 

The fourth change that I will make is to analyze the “other” section included with the organization’s annual financial report. This is because the amount associated with this section is extremely high each year and may be drastically affecting the annual profit margin. In this case, the “other” section also does not include a breakdown to explain these high costs. Therefore, I would request a report that identifies these entities to see if some costs could be eliminated (Harvard Business School Publishing. 2000).

The fifth change that I would make is to consider any possible trade-offs and synergies that may affect the organization’s overall decision making process and mission statement. This is because “complex interdependencies and trade-offs among the performance determinants create difficult challenges for leaders.” Furthermore, I will also develop guidelines associated with a competitive strategy to ensure that the mission statement is always honored. Some of these may include: learning about competitor’s products and activities, what clients and customers want and need, determining long-term priorities and objectives, current strengths and weaknesses, and what core competencies the organization currently exhibits (Yukl. 2013. p. 282).

Conclusion

There are times when it may be necessary to implement certain changes within an organization so that it can become more successful and exhibit effective leadership. One example of this involves a couple named Igor and Ludmilla Ivanovic who own an organization called Iggy’s Bread of the World. The reason that changes need to occur is because they have been struggling to try and ensure effective leadership and the organization’s mission statement.

 Therefore, the overall purpose of this work was to discuss how the goal to ensure effective leadership while also honoring the organization’s mission statement can be accomplished through strategic changes. This overall discussion also involved further discussion of five specific areas which included: the changes that Iggy’s has experienced since its beginning, changes that need to be made now, identifying resistance that may occur and by who, and developing and implementing a plan to effectively make these changes. I am also confident that if this plan of development is implemented, Igor and Ludmilla Ivanovic will be able to ensure effective leadership, honor the mission statement, gain back some of the direct influence that has been lost, lower costs, and still make a profit within their organization.

References:

Harvard Business School Publishing. (2000). Iggy's bread of the world. Boston, Mass. 02163.

Yukl, G. (2013). Leadership in organizations (8^th ed.). Upper Saddle River, NJ: Prentice Hall.