Delta Pacific Co: Decline in Market Share Despite Leadership in Tech - Essay Sample

Introduction

Since the 1970s, Delta Pacific Company has been a leader in the manufacturing, sales, and integration of new technologies worldwide. The company has been regarded as one of the best employers and has always been adept at the market's changing landscape. With the dawn of the 21st century, however, DPC has been recording a decline in its hardware market share due to various reasons. Some of these reasons being the rise of cheaper and high-quality production of hardware from overseas. Adding on the availability of cheaper labor abroad, this meant that the company could no longer profitably compete with these companies. This proposal will highlight the changes the company has made to adapt to the changing global market. By applying Kotter’s change management model (Hayes, 2018), it effectively helps the company enact permanent and swift change.

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A changing Landscape

After the enduring changes in the 1990s on the company, DPC has made some changes to the way it conducts its business. Being unable to profitably compete in the hardware market, the company switched from a more manufacturing role to a consulting one. This is by selling its workforce knowledge and providing software and helping set up systems to facilitate the management of information. Identifying that its customers enjoyed a personal relationship with the sales workforce helped the company come to this decision. The company is currently training its employees and has acquired all the resources and equipment required for the training. This process has started affecting the company's bottom line since the sales team is educating themselves on the new system and spending less time on the field selling actual products. This has created an uneasy atmosphere among the members of the board of directors and the company shareholders. This proposal looks to map out the organizational behavioral changes required and provide a change management model suitable to its needs (Hayes, 2018).

The benefits of setting out change plans before action are; increasing the probability of the change to occur, enable the company to weigh up changes before they occur, provide knowledge that will help the team make informed decisions, proper identification of the actual change needed, and finally identify what may arise due to the changes (Hayes, 2018).

Kotter’s 8 Step Change Management Model

As the company's change leader, I chose Kotter's theory due to its nature, i.e., the theory focuses more on the company's employees rather than the change itself (Pollack, 2015). Since DPC has already assembled all the required material and equipment necessary for the change, it is paramount for the company employees to be part of the process. Kotter’s theory consists of eight steps that will act as guidelines for the engagement that will be required. These steps can be broken down as:

Creating a Sense of Urgency

This first stage is to provide initial clout or traction within the company. It is done by motivating those who will enact the changes and taking stock of any potential shortcomings. This stage also helps formally launch the process of impending change. This will help mentally prepare everyone in the company for the process and appease the shareholders by showing the change's reasons.

Building a core coalition

A team of experts and individuals from every level of the organization should be assembled to ensure the change's purpose is related to all employees. This core group will help the company receive feedback from various company components and relay plans and changes to any plans. The purpose of this group is essential to preach the "gospel of change" throughout the company.

Strategic Vision

By defining the change from traditional manufacturing markets to the current market of consultations, all DPC employees are aware of the company's plans for its business. This stage is essential in reminding everyone of our vision and ensuring it is considered continuously when any changes are made. This is to ensure that all steps taken adhere to the strategic vision DPC has formed.

Getting Everyone On Board

This can be achieved by engaging all the stakeholders. By receiving feedback from all parties involved, the company can correctly hand out responsibilities to the most competent individuals. This stage will also allow the company to identify any obstacles that may arise. DPC must also inform the employees of the expected changes and mentally prepare them for said changes.

Removing Barriers and Reducing Friction

After engaging the employees and getting everyone on board, the company now needs to iron out any creases identified. By foreshadowing the problems that may arise after receiving feedback, the company should tackle all the problems. Remove all barriers identified, which will help streamline the process of change.

Generating short term wins

Given the long term nature of this exercise, to keep the employees motivated will be necessary. This can be achieved by rewarding those who have adhered to the proposed changes consistently. This will send the message to other employees, thus motivating them to sustain the effort for change.

Sustaining acceleration

This can be achieved by taking stock of all the company actions. By doing this, the company will keep track of all the changes and identify the places that need more action or those that require less attention to sustain this acceleration.

Setting changes in Stone

After meticulously following all the previous steps, the company should now "set it in stone." This is by formally changing company documentation and culture to match the changes. The company can do this by providing material to the employees reflecting this new policy. Rewards to those who were integral to the process should be meted, and all the employees loyally working on maintaining this change should be rewarded. This will cement a new policy.

References

Hayes, J. (2018). The theory and practice of change management. Palgrave.

Pollack, J., & Pollack, R. (2015). Using Kotter’s eight stage process to manage an organizational change program: Presentation and practice. Systemic Practice and Action Research, 28(1), 51-66.