Organizational change management is a management process that combines transformational organizational change that is controlled and maintained by the leadership of the organization It necessitates total commitment from everyone involved, as well as constant communication. In order to be truly transformational, a company must have a clear strategy and implement it from the top down. Its origins may be traced back to the needs of the organization, and it requires the active participation of the entire organization. A successful change leader must be able to make a compelling business case for change and a compelling call to action for everyone in the organization, from the top all the way down to the bottom. For a transformation to succeed, it must align with the organization’s vision, values, and strategic plan. Change must be communicated to all levels of the organization on a regular basis using a clearly defined strategy, action plans, and key performance indicators (KPIs) (Hussain et al., 2018). An organization’s ability to meet its goals and objectives must be constantly monitored and reported on. Facilitation, influence and cooperation skills are essential for a change leader to generate support, remove obstacles and reduce resistance to change. Stakeholders are identified and influence methods are used to gain their cooperation in helping model the behaviors that lead to desired outcomes by altering their beliefs and actions. It is also their job to guide large groups of people through the process of change so that businesses can make sensible, strategic changes to their operations (Hussain et al., 2018). This type of leadership helps businesses adapt by putting in place new resources, utilizing cutting-edge technology, and responding to emergencies as the world changes.
Recent Changes Events at Tenet Healthcare
One of the most recent change events ta Tenet HealthCare was the proposed sale of one of its subsidiaries known as Conifer Health Solutions. Tenet said in February 2021 that it would postpone Conifer’s spinoff by a year due to the pandemic. In December of last year, Tenet started looking at the possibility of spinning out Conifer into its own publicly listed firm. At that time, Tenet said it had recruited financial and legal consultants to assess the best course ahead for Conifer, including a possible sale (Becker’s Healthcare, 2022). The change, however, did not happen since the hospital management eventually decided not to sell the subsidiary.
Successful change management begins with mastering the organizational change process, which is the first step toward effective management. Even though every project is unique, the overall approach to many organizational changes is the same. The notion of organizational transformation explains how a corporation transforms from its existing situation to the desired future situation (Panayiotou et al., 2017). As a result, the firm’s employees are hesitant to embrace change until it is shown that the status quo is harmful to their worth, ability to cope, and competence. The company may have made significant investments to maintain the status quo; as a result, it will have to fight for change to prevent an uncertain future. Consequently, the most important activities should be designed to inspire employees.
The first mistake that Tenet Healthcare made in the change process was the lack of employee involvement in the change process. Workers are encouraged to participate in decision-making that affects the productivity and well-being of their employer. Power, knowledge, expertise, and incentives all motivate workers or employees to become involved. Employee involvement is the most tried and true method of bringing about change. In the implementation stage, involvement will overcome the opposition, and high-quality change will be implemented. By doing this, a range of information and ideas may be developed, which may contribute to the innovations effective and suited to the circumstances, increase probability, build member commitment to implementing change, and encourage and lead change effort in work (Al-dalahmeh et al., 2018). Once the status quo has been disrupted, management must encourage employee participation in furthering the company’s transformation. Employees must be informed about the need for change if the process is sped up. Leaders should educate, communicate, participate, involve, task support, give emotional support and incentives, convince, co-optate, and force their employees about the change.
The leader’s openness facilitates organizational change throughout the process, increasing employee engagement in organizational discussions and meetings. This enables workers to express their thoughts more freely and have a greater feeling of control. Leaders who display a supportive demeanor will provide assistance or recommendations during a transition period and will enjoy the rewards of their team’s dedication and efficiency. Employees involved in organizational transformation are more likely to have a positive outlook on their jobs (Al-dalahmeh et al., 2018). For example, this will help employees embrace the change process and pick improvements that encourage organizational support as part of that transition process. In Lewin’s second stage, people’s behavior or attitudes will change. If workers are given authority and responsibility, their engagement will be more effective. Leaders play an important role in behavioral integration across activities and social dimensions at every level of Lewin’s process. A team’s ability to share information, task-related ideas, and proposals are known as knowledge sharing.
The second mistake made by Tenet was deciding to sell without considering all the factors that would impact the organization as a result of the sale. The present condition of the organization must be transformed into the desired state before change can be implemented. However, this will not happen rapidly but simultaneously. An organization’s strategy for transformation can only be effective if specific events and actions are planned ahead of time. Organizational change objectives and goals are directly tied to the particular actions being implemented. For organizational change to be successful, it is necessary to acquire the support of the people and groups affected by it (Kiesnere & Baumgartner, 2019). Throughout the change process, people or groups incorporate political backing, stakeholder plans, and their commitment to change. A framework for recognizing ambiguity, direction, and structure must be established to manage a change process effectively. This list includes tools for encouraging change, the current leadership structure, consultants specializing in organizational transformation, and interpersonal and political abilities needed to get things started.
Some of the key lessons learned from Tenet’s change plan are the value of involving all stakeholders in the change process. Tenet should have consulted with employees on the need to sell Conifer. This is because the sale of Conifer would have had a direct effect on the employees. The new Conifer management may not have offered the employees the same working conditions as Tenet. Some employees may have lost their jobs or maybe dissatisfied with change leading to employee exit from the organization. Tenet should also have considered taking their time before coming up with the decision. Tenet should have considered other ways of increasing profits that did not involve the sale of subsidiaries.
Change Leadership Action Plan
Tenet’s most appropriate change leadership process would be Kurt Lewin’s change management model. Lewin’s three-step theory of change is frequently referred to as unfreeze, change, and refreeze. The first step of the change process would be the unfreeze. We live in a time of rapid change, and understanding the Unfreezing stage is critical. At this point, the focus is on preparing for the future. It requires coming to the point of realizing that change is required and is ready to move out of our existing comfort zone. Preparing ourselves or others for the change and preferably establishing conditions that encourage change are the primary goals of this stage. Before you take any action, assess the “pros” and “cons” of making a change and decide if the pros outweigh the cons (Burnes, 2019, p. xx). This is the cornerstone of what Kurt Lewin coined the Force Field Analysis. In other words, it’s a fancy way of explaining that there are a number of distinct elements (forces) in play that influence whether or not change is possible (analysis) (Hussain et al., 2018). The organization will implement a change if the benefits exceed the drawbacks. If not, then there’s minimal incentive to change – and if we feel forced to change, we’re prone to grow irritable and dig in our heels. The first step in ‘Unfreezing,’ as the name suggests, is to motivate oneself, a department, or a whole company to change. This step will help Tenet to decide if the change is necessary.
The second step would be the actual change implementation. In this case, Tenet would reach this stage after stakeholder involvement and a confirmation that the change is necessary for the organization’s growth. In Kurt Lewin’s view, change is a process rather than an event. He dubbed that process a transformation. Transitions are the inner journey or trip we undertake in response to a change. This second step happens when we make the required improvements (Hussain et al., 2018). This period is typically the toughest as folks are hesitant or even afraid. At this point, stakeholders are learning about the changes and will need time to process and adapt to them, so this is not an easy moment. This is not an easy moment as individuals are starting to learn about the changes and need to be given time to grasp and work with them.
The last step in the change process is refreezing. Although many individuals refer to this stage as refreezing,’ Kurt Lewin refers to it as ‘freezing’. As the name implies, this stage is all about stabilizing things after the modifications are complete. The modifications have been approved and have become the new standard (Burnes, 2019). At this stage, the management at Tenet would ensure that all employees understand the new changes and are willing to work under the new conditions. For instance, if the sale of the subsidiary has been successful, Tenet would need to ensure that they have reached an agreement with the new owners about whether the current employees would be retained or the employees would need to find new jobs. This would also be communicated to eth employees to ensure a smooth transition to the new management.
Strategic Steps to Leverage Insights from the Employees at Different Levels of the Organization
The first step in the change process would be communicating with the staff about the impending change. Change management projects can only succeed if top management is on board. The first step in gaining support is to explain what the change is and why it is taking place. The message must be conveyed clearly and concisely by senior management. The bottom line suffers if senior management cannot grasp the rationale behind significant changes to the company (Galbraith, 2018).
The next step would be to outline the change process and plans. Senior management must be as open and honest as possible when executing change. It is vital for senior management to clearly define the changes that will take place and how they influence expectations, objectives, responsibilities, etc. (Galbraith, 2018). If the change will have a direct impact on workers’ daily lives. The employees at Conifer deserve to have all the information regarding the changes that may impact their jobs and livelihoods.
Lastly, the management at Tenet should ensure that they have an open communication channel that allows for two way communication in the organization. Employees will have many questions about the new policy. What impact will this have on my present goals? In what form will the new building take? When may we expect to see the implementation of these alterations? To effectively implement change, managers must be able to answer these questions adequately. Implementing 2-way communication channels is a great strategy for managers to ensure effective adoption (Galbraith, 2018). Managers must be ready to answer queries from their staff, whether it’s via one-on-one feedback sessions, company-wide meetings, Slack, Teams, or email. Managers will be able to keep their staff informed of any forthcoming news on more adjustments if they establish clear lines of communication for change.
How the Proposed Change Process for the Organization Aligns to the Organizational Values
The proposed change process would align with Tenet’s organizational values. According to Tenet Healthcare (n.d), the organization values compassion and respect for its clients and its employees. This change process would align with this value because it would allow the management to show the employees that their contribution to the organization’s decision-making process is valuable. Employees need to feel respected and cared for by the management. The organization also claims to value integrity and high ethical standards. By involving all its stakeholders in the change process, Tenet will be displaying integrity in its decision-making process. The change process should be open to employee participation and criticism. This way, employees can participate in the change process and offer their insights on what they think would be beneficial to the organization. The organization also prides itself on accountability. Accountability includes being accountable to employees. When making changes that would impact employees, Tenet should always ensure that they have considered both the positive and negative impacts of the changes on the staff.
References
Al-dalahmeh, M., Masa’deh, R., Abu Khalaf, R. K., & Obeidat, B. Y. (2018). The effect of employee engagement on organizational performance via the mediating role of job satisfaction: The case of IT employees in Jordanian banking sector. Modern Applied Science, 12(6), 17. https://doi.org/10.5539/mas.v12n6p17
Becker’s Healthcare. (2022, February 9). Conifer spinoff may not happen, Tenet says. www.beckershospitalreview.com. https://www.beckershospitalreview.com/finance/conifer-spin-off-may-not-happen-tenet-says.html#:~:text=In%20February%202021%2C%20Tenet%20said%20it%20would%20delay,a%20separate%20publicly%20traded%20company%20in%20December%202017
Burnes, B. (2019). The origins of Lewin’s three-step model of change. The Journal of Applied Behavioral Science, 56(1), 32-59. https://doi.org/10.1177/0021886319892685
Galbraith, M. (2018). Don’t just tell employees organizational changes are coming-Explain why. Harvard Business Review, 2(5), 1-8. https://hbr.org/search?term=morgan%20galbraith
Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., & Ali, M. (2018). Kurt Lewin’s change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge, 3(3), 123-127. https://doi.org/10.1016/j.jik.2016.07.002
Kiesnere, A., & Baumgartner, R. (2019). Sustainability management in practice: Organizational change for sustainability in smaller large-sized companies in Austria. Sustainability, 11(3), 572. https://doi.org/10.3390/su11030572
Panayiotou, A., Putnam, L. L., & Kassinis, G. (2017). Generating tensions: A multilevel, process analysis of organizational change. Strategic Organization, 17(1), 8-37. https://doi.org/10.1177/1476127017734446
Tenet HealthCare. (n.d.). About tenet healthcare | Who is tenet healthcare | Tenet healthcare. TenetHealth. https://www.tenethealth.com/about
write