Organizational change comprises of changing in technology, policies, values, cultures, strategies, and structure to amplify the growth and performance of the company. Today, we’ll discuss the top 10 examples of organizational change examples.
Businesses and companies implement change initiative programs to achieve the following;
- Introducing rebranding campaign
- Amplifying the customer database
- Developing procedures and processes
- Resolving the company’s inner issues with bureaucracy and structure
- Tech upgradation and digital transformation
- Accepting the latest market trends
Some of the key steps in implementing the organizational change are as follows;
- Developing a realistic vision
- Accepting the change initiative
- Feedback from employees and team members
- Employing the right tools and equipment
- Leadership skill to lead the team
- Effective communication
Organizational Change Examples – Top 10
Let’s discuss the top 10 organizational change examples, and they’re as follows;
Yahoo is a great and painful example of organizational change. Marissa Moyer become the CEO of Yahoo in 2012, and he realized that the platform was facing a lot of challenges with no clear direction, vision, and no future at all. Her efforts to shift and change the company’s destiny brought a lot of criticism both from the public and its employees. Some of the steps Marissa has taken during her tenure as CEO are as follows;
- Repaired Yahoo’s properties various times
- Launched a new performance review system, and the employees with low performance would be out
- Banned remote working and it earned a lot of criticism
- Brought her own team and fired the company’s existing managers
Many believed that her efforts in transforming the company did more than good; some claimed that she increased the traffic on yahoo’s platform. After 4 years of her leadership as a CEO, Verizon acquired Yahoo, and Marissa left the company.
British Airways is the UK’s largest airline. The company came into existence after the merger of four other companies in 1974, and it had a staff of 50,000 employees and a fleet of 215 aircraft. But the company was facing a lot of issues in the early stages.
However, Lord King took the leadership role in 1981 and he realized that the company was wasting its resources and its operational processes are inefficient. He modernized the fleet, left the complicated routes, and decreased the staff from 50,000 to 39,000.
Over the new few years, he replaced the company’s board and brought in a new marketing team to repair the company’s image. The company’s profitability reached 284 million dollars within ten years, and it was the highest in the airline industry. His communication strategy was clear and transparent, and he fully explained the reason for layoffs that why it is urgent.
Google is the fastest-growing and world’s leading tech and the company is always going through the transformational phase. The most recent venture of Google is the company’s restructuring and launching of the parent company, Alphabet Corporation.
Restructuring helped the tech company to uphold its integrity so that its owners and founders could focus on other projects. After becoming a subsidiary brand, Google is still going through the reorganizing and transforming phase.
Google’s team conducted various studies and implemented various change models, and they all didn’t give any valuable results. It is because they all demand you to have some goals, objectives, and destinations. But the tech company doesn’t have any end goals and objectives, so Google created its own model and it answers four questions;
- Reasons why the company needs changing
- The vision of the company
- Those who would be affected
- How you would implement the change
Microsoft was facing the issue of limited collaboration and coordination among various departments. Satya Nadella brought revolutionary cultural changes to the company; he said in his interview with Mckinsey that the focus of the company is on developing and promoting a such culture that would cultivate new ideas and concepts.
Nadella was aware of the fact that Microsoft was older and various ideas and plans would run become old. He believed in the fact that the cultural transformation would re-energize the company. Some of the new changes Microsoft brought under the leadership of Nadella are as follows;
- Invested in cloud technology and becoming the trillionaire company like Apple and Amazon
- Generated revenue of more than 100 billion dollars
- Acknowledges as an open source
Vodafone and Verizon
Vodafone and Verizon Communication launched a joint venture and introduce a new service in the market by the name of Verizon Wireless. Verizon acquired a roundabout 45% share of Vodafone, and the deal cost Verizon approximately 130 billion dollars in 2014.
After the transaction, it allowed Verizon Communication to fully own the “Verizon Wireless” venture. Many marketing experts considered it a “deal of the decade,” and the company’s tremendous performance following the acquisition proved to be a great move for the company.
The company announced the 2nd reorganizing and restructuring phase back in 2018. It was the same time when the platform was going through a lot of scrutiny about the cybersecurity and data privacy issues relevant to the 2016 presidential elections. The company said that the restructuring had nothing to do with data privacy and security; rather it would focus on the company’s three products.
Warner-Lambert & Pfizer
Both Pfizer and Warner-Lambert are operating their business in the pharmaceutical industry, and Pfizer bought Warner for 90 billion dollars in 2000. The acquisition deal falls under the category of the world’s most hostile deal in history. Originally, American Home Product planned to acquire Warner-Lambert, but the consumer product company American Home Product walked away from the deal.
Pfizer quickly jumped, fill the gap, and took advantage of the opportunity. The deal allowed Pfizer to become the second-largest drug manufacturing industry in the US. However, Pfizer also gained control over the profit of the later drug (Lipitor) and which was roundabout 13 billion dollars.
Hulu planned to bring organizational changes in the company to achieve growth and increase its video content for users. In the restricting phase, the company removed various executive positions and introduced new positions like Chief Data Officer, and Chief Technology Officer. In order to develop coordination among its various departments and offices, the company hired more than 200 tech employees in 2018. Such organizational and restructuring phases have allowed the company to reach 48 million subscribers by the end of 2023.
Tesla is the world’s leading electric automotive brand. The company’s founder and CEO, Elon Musk planned organizational changes in terms of the following;
- Improving the communication channel among various teams,
- Flattening the organizational structure,
- Cutting the cost
This plan attracted a lot of criticism from investors because they want easy cash flow. In order to deal with the cash flow issue, the company fired 3000 employees (not from the production line), and cut down the salaries of other employees. Resultantly, it paid off the company very well in terms of higher market share and share price.
Nike is the world’s leading sportswear brand. The company realized the fact in 2017 that its brand name was decreasing and becoming weaker in the market. In order to deal with this challenge, Nike planned to bring organizational changes digitally, and it focused on the following areas;
- Increasing direct connection with customers
- Doubling the market speed
- Promoting innovation and creativity
The sportswear brand employed various analytical and tech tools and applications to achieve its targets of providing a better customer experience and increasing sales. It helped the company to become a premium brand, and the company almost doubled its price during the lockdown phase.
Conclusion: Organizational Change Examples – Top 10
After an in-depth study of the top 10 organizational change examples; we have realized that organizational changes are highly significant for the growth of the company. If you are learning about organizational changes and their impact on various industries, then you should keep in mind the abovementioned examples.
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