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Group 2 Project Change Management 2
1. Group 2 Project Change Management
Lyle Pohlen, Sunny Vang, Melissa Benson
Globe University
BS
HR440.WB6 Change Management
Mark Hanson
November 23, 2015
2. Change Management Comparison
I. Introduction:
Comparing and contrasting the analysis of Wilson Tool International and Cub Foods for
their change management aspects within the company. Identifying the successes and failures of
these two companies identifies which effective techniques each company did effectively in
respect to internal measures.
II. Successes inchange management for Wilson Tool International
Wilson Tool implemented the 5 S System; a basic, fundamental approach for
productivity, quality and safety improvement for all types of businesses (5s System, 2015). The
company currently works to have 5 S systems and a continuous improvement team to ensure
they are able to continue the best practices for the business. Today as a leader in Lean
Manufacturing, Wilson Tool offers free seminars to their customers and employees showing the
savings and benefits of lean manufacturing. Lean manufacturing consists of several areas, such
as: The elimination of waste, continuous improvement planning, and the 5 S’s system. To
effectively implement lean manufacturing a company will require management and employees
buy in, to ensure the concept of saving the company time and money. Lean manufacturing is a
strategy used within business across the world from small companies to industrial international
levels of business.
What the process focuses on is having order, organization, cleanliness and
standardization within an organization. The underlying principles are very simple and use a lot
of common sense, but will require monitoring and enforcement. The 5S is broken down in to the
following areas: Sort, which means to remove any unnecessary items from your work area that
3. wouldn’t be needed for daily operations. Straighten, is used to organize the necessary items in
your work area that you use on a daily basis. This can be corrected by some type of labeling or
color coding system to keep everything in its proper place. Shine is the concept of a clean your
work area, though equipment, and eliminate any sources that may cause any type of
contamination. Standardize is the ability to create and standardize the first 3 steps; and make sure
that all employees and leaders are trained in how to perform these tasks with consistently. Finally
sustain, this is where management is responsible to make sure that these is a long term goal (5s
System, 2015). To put in some type of auditing system to monitor and grade every area and post
the results quarterly.
During the implantation of lean manufacturing for the 5 S System there were significant
changes that needed to happen for order of operations and timing. These new processes were
communicated to the employees through daily stand ups, meetings, creating standardized work
flows, power point slides for full picture concepts and training seminars. By following all these
standard process and working with all levels of the company the 5 S System was effectively
communicated and implemented throughout the company.
III. Successes inchange management for Cub Foods
Cub Foods along with several grocery supply chains are owned by SuperValu. During
spring of 2014, Cub Foods jumped to snatch ten out of the eighteen Rainbow grocery stores
within the Twin Cities at a whopping $65 million dollar deal along with four partners. The plans
were to keep the six Rainbow grocery name attached while the other four were to convert into a
Cub. To compensate for the $65 million dollar deal, the new two year collective bargaining
agreement had slipped its way through with limited healthcare benefits effective until April 2,
4. 2016. Among the part-time employees, the bottom 86% would not be receiving any health
benefits as noted in the most recent bargaining agreement.
The focus of Cub was to cut cost where it was needed necessary to drive the sales growth
that included cutting hours, cross training and possibly demotions. When management
introduced the new United Food and Commercial Workers Union (UFCW) Local 1189
handbooks, their employment numbers dropped significantly in the support center. Although the
cuts represented only 3 percent of the SuperValue workforce of 18,000 store employees
Siemienas states, “most of the 600 jobs cut in Minnesota will be at Supervalu's Eden Prairie
headquarters and its Cub Foods support center in Stillwater. The company employs about 8,700
people in the state.”(Webb, T.). The SuperValu felt they had seized an opportunity to stay on top
after their 1.4 billion dollar loss in 2013.
IV. Failures in change management for Wilson Tool Incorporated
Some of the failures that could have been corrected through change management for
Wilson Tool are: order of changes, time frame of implementations, and communication from
leadership to employees. The order of changes for the company was completed all at the same
time with no trial runs in different departments. If the company would have did an initial test run
in one section of the company they may have been able to better prepare employees for the
drastic changes they envisioned. The time frame is continuous and has inspections completed for
every quarterly evaluation. All departments were then expected to meet a 90% threshold for a
Metrix scorecard post this initial implementation (Performance, 2015). Finally the
communication all through done effectively through training for employee’s communications
was not rationalized as to why the changes were made. There was also no rationalization for
5. needing to take away personal touch in work areas for employees. If this communication was
delivered from a business and personal aspect the changes may have been better received for
implementation.
V. Failures in change management for Cub Foods
What the organization failed to do was balanced their own checkbook before purchasing
Rainbow. Payroll also went through the roof because the retail grocery store spread its
management team too thin to prepare the new stores’ roll-out. The understaffed, empty shelves
and long checkout lanes reflected the overall store performances. Several months into the new
agreement, in June and July, the organization faced a data breach in 41 store locations by
cybercriminals. Although the organization claimed that the months of June and July were the
only incident, Twin Cities’ Pioneer Press announced another second smaller breach in October.
Spending $2 million to reclaim the losses, in-store employees were unaware of the second breach
because management failed to communicate details as to which store locations were affected by
it. This only created a bigger retaliation among the workers and management to implement an
effective change.
According to City Pages, the employees alleged that the tactics are aimed at ushering
longtime and higher-earning workers out the door in an effort to save money. In the article a
middle-age woman who is an employee of over a decade to Cub says, “For those of us who have
been there a while and have health insurance, they cut our hours, but give us more and more
work. Then, when we struggle to get our work done, we're threatened with being written up. If
that happens enough, we're told we'll lose our jobs. I feel like they want me to either quit or be
fired so they can hire someone cheaper without benefits.” The pressure corporate has on
management to sway employees to work more for less benefit, less hours and more add-on work.
6. With few management teams left, their performances trickled down onto the workers that are
shown through the employment shortage and sloppy looking store.
What Cub could have done was given themselves enough “time” to gain profit from the
Rainbow closeouts before purchasing, while calculating the cost to run the bought stores. With
the waited profit earned, Cub could have used the extra contributions to hire more management
to train. They could have also made a more attractive health benefit agreement leaving the
employee with more than what they have now. In this case, the growth of the organization
surpassed its employees to implement a transformational change in communication skills as well
as fitting the time frames to earn, purchase and train their fellow employees.
Wilson Tool worked with all four of the change management techniques, redesign, help,
people, and systems and structure. The people change and help were techniques are the areas the
company did not succeed well with the employees. Management just incorporated the changes
with little information for change and did not follow up for employee opinions along the way.
The help technique was started through documentation of power point and some training
however was not followed up on other than having expectations for a new system. Techniques
Wilson Tool did well were the redesign and system structure. Wilson Tool effectively used
redesign through management by identifying roles, responsivities for all levels of the company.
The system and structures was conducted through audits and controlled aspects of the 5 S
System.
VI. Conclusion
There is no right or wrong way to effectively incorporate change management in to a
company. The concepts of communication with employees and internal aspects will help drive
the future success of the company’s effectiveness for the incorporated changes. Each of these
7. companies has successes and failures which with company further identification will be revised
and potentially fixed.
Reference
5s System for Workplace Organization. (n.d.). Retrieved November 17, 2015, from
http://www.scmep.org/5s-system-workplace-organization/
Performance You Can Count On. (n.d.). Retrieved November 17, 2015, from
http://www.wilsontool.com/
8. Zurowski, C. (2015, April, 21). Cub Foods Workers Claim Longfellow Store Is Trying to Dump
Longtime Employees. City Pages. Retrieved November 18, 2015.
http://www.citypages.com/news/cub-foods-workers-claim-longfellow-store-is-trying-to-
dump-longtime-employees-6548500
Woltman, N. (2014, April, 26).Supervalu to cut 1,000 corporate jobs. Pioneer Press. Retrieved
November 18, 2015.
http://www.twincities.com/business/ci_22873676/supervalu-eliminating-about-1-100-
positions?source=pkg
Webb, T. (2014, April 23). Supervalu returns to profit as turnaround continues. Pioneer Press.
Retrieved November 18, 2015.
http://www.twincities.com/business/ci_25620927/supervalu-returns-profit-turnaround-
continues?source=pkg
Webb, T. (2014, October, 16). Supervalu still getting a handle on summer data breach. Pioneer
Press. Retrieved November 18, 2015.
http://www.twincities.com/business/ci_26740582/supervalu-still-getting-handle-summer-
data-breach?source=pkg
Webb, T., & Shaw, B. (2014, July 21). Roundy's ending Rainbow's run, nine local stores closing.
Pioneer Press. Retrieved November 17, 2015.
http://www.twincities.com/business/ci_26188407/nine-twin-cities-rainbow-stores-
closing-this-week