 Hi, welcome. Your course is leading organizational change and we are covering Unit 3 of your study guide and course in this video. Your course layout, Unit 3 is Organizational Failures in Change Management. Here are the unit learning outcomes. Interpret Failures of Change Management to better understand change in the organization. Examine the reasons organizations fail to change. Compare ways to motivate employees through the change process. Analyze how to avoid change process failures in a given organization. Differentiate the positive and negative effect leadership has on the change process. And why are learning outcomes important? So they're tied back to everything in your course whether it's your course materials, the content in your course, any test questions, case studies, any assessments, all of those are tied to your learning outcomes. And from those learning outcomes, we have your topic overviews for this video. So we will review business change failures, ask the question why do businesses fail to change, ways to motivate employees to implement change, and then how to avoid those change process failures, and then any leadership effects on the change process. Here are your vocabulary words for your study guide for Unit 3. And we're gonna be covering these terms. All right, so interpret Failures of Change Management. One of the things, there's many questions that you can ask when you're looking at why companies might fail and why it's important to study those failures. So what can we learn from them? Why do companies fail to change? Why is it important to study change management failures? And then also how can understanding the failures in change management help your organization? And then how can you determine what failures have occurred in change management implementation? So researching and studying business failures of the change management process is needed so that these failures would not be repeated. There's also quite a few learning lessons that can be learned when we understand why companies, not only why do companies fail, but why do companies fail to change once they know that they have some issues. So there's numerous examples of the big stores that have failed to change, and then their business failed as a result of that. So as a manager, you must understand why failing to change has affected the business overall. So some of these examples that were mentioned in your course of some big companies that have failed, they include Blockbuster Video, Hummer, Sears, Kodak, but there are really thousands, if not more, examples of small local stores that have failed as well. So refusing to change will affect the business in some way, and as a result, the business most likely will not survive. Today, change is really inevitable. With technology, everything is changing so quickly that businesses are almost forced to change, kind of look at their processes, and then make a plan for change. So understanding the failures gives you a better idea about why that change is so important to your business. Blockbuster, and of the perfect example, and they had any many reasons for failing, but Blockbuster was at one point a place that everybody went to get their DVDs or even before that, their VHS or both, and it was the place that you went to get before streaming that we went to get movies, and so one of their problems, Netflix, they actually at one point had a chance to buy and purchase Netflix, and they didn't, mostly because they didn't have the money at the time that it happened, and I'm sure now looking back on it, some, you know, the CEO, the former CEO is probably like, oh my gosh, we should have just figured out a way to come up with the money, but they failed because they didn't have the money to change, they failed because they really weren't thinking about the future that had such a successful business, and then everything started to change around them, and when streaming came out, I mean, now we have so many streaming options that it's not just Netflix anymore, there's a lot of competition out there for Netflix, but Blockbuster is not one of them. They did try, they had their own streaming service for a while, it wasn't obviously as popular, but it is a perfect example of why it's important to change. There is actually one Blockbuster store left. Ironically, there's actually a documentary on Netflix about it, and it's up in Bend, Oregon, and it's fascinating that this one store has brought so much, like it was such a cultural thing to go to Blockbuster, they would have, you know, you get your DVDs, you get some snacks, you get some microwave popcorn, you know, you go home, you watch your DVDs, and it was such, you know, it's such a difference now, you don't even have to leave it, I mean, literally you can just stream whatever movie you want from any room virtually, and it was such a cultural difference that people are attracted to that one last Blockbuster video store that's left, yeah, interesting. All right, so examine the reasons organizations fail to change. So why is it important to understand why a company may not want to change? What will happen if a company doesn't change? Companies may be afraid to change, it's another kind of consider, they may be fearful of the change, and then as a leader, what can you do to encourage change? So how might an organization fail to implement change? Why is it important to understand an organization's failure to change? And then how can you use change failure information to help your company now? So just some of the questions that we can answer in this video. So being uncomfortable with change is personal, and it does appear in business. You'll have some business leaders that are very comfortable with the way that things have always been done and kind of the status quo. And then when change is required, they may need to be dragged through that change. So if a leader is incapable of change and making progress, they may be responsible for the business failure. As a manager, it is important to be able to be open to change and then seek it out when you can see that your business has become stagnant. So great leaders are constantly looking for ways to improve or make processes better. So employees will follow the lead of that leader, and if a leader resists change, the employees will as well. So a leader can keep the business running smoothly by remaining open to change and then seeking out new, more efficient ways of conducting business. By resisting change, a business will eventually fail. Another example of this would be Sears. Sears had been around for more than 100 years, and it was for the longest time, it was a catalog-based business before we had the internet, before we had streaming videos. They had, you had the Sears catalog, and I think it started out as like a farming community and equipment and that kind of thing. And over those 100 years, they really did figure out ways to change and kind of adapt. Once they realized that there was a market out there for general merchandise, those catalogs became extremely important. The catalogs were mailed to your house. There was a big Sears catalog that included everything. There was a special Christmas catalog in the 70s, and I wanna say 80s, maybe even 90s, that came from Sears. And then in their final years, Sears was really big in appliances. They had their own appliance brand that they sold. They sold some other appliance brands, but they really just couldn't adjust to the world moving into an online format. And it was very difficult. I remember it was almost painful, I think, to watch for a lot of people had Sears in their lives for decades. And there were other similar stores like Sears, Montgomery Ward, that was a popular department store for a while. And it was amazing to see this company that survived for over 100 years and had stores and their catalog business, and they just couldn't adjust to the online environment. And that is why it's important. It's why we need to adjust and change otherwise in this day and age, if you can't adjust and change, then your business becomes obsolete. Compare ways to motivate employees through the change process. So we've talked about this several times, you're gonna hear me say it over and over again. It's extremely important to get the buy-in of all of the employees when you're trying to make a change. If you don't have their buy-in, the change will not happen. So why do employees need to be motivated to change? How can employees be motivated to change? And then what will happen if they do not want to change, which we've discussed? And then any success stories, so it's really kind of check in with employees daily, tell them about success stories. They not see it on their level as these changes are being made. So it is important to maybe discuss that with them and then encourage them through the change. So you wanna encourage those employees who come to you with ideas who are more innovative than others. And even if you don't end up implementing one or two of their ideas, it's still really important to encourage them to continue to bring ideas. So all of these things are in kind of discuss in relation to change. So employees, they're the main reason that change is either effective or ineffective. If employees don't understand the change or why it's needed, they're going to resist it. And the intended change process will fail. So it's important also to motivate these employees through the entire change process. And as a leader, you're going to have to check in with employees throughout the various stages of change. If you sense any resistance, you're going to have to address that issue right away. If one employee is resistant, that can easily spread to other employees, making the job of implementing change almost impossible. And then each change model has a stage in which employees are informed of the change and why they're needed. So once employees understand why the change is needed, they may be more likely to help initiate the change and continue that process until it's been implemented. So motivating employees might include some small steps just to ensure that everybody hears about those things. So those success stories, checking in with them daily and then demonstrating the visible company growth to them. So as a leader, it's important for you to focus on your team, check in with each team member daily to see how that change is going and then any issues that you might, that any issues they might have and then what you can do to remove those roadblocks as soon as possible while you're working out the change process. Analyze how to avoid change process failures. So some of the questions we might ask, so how can we analyze the change process failures? Why is it important to analyze those process failures? And then how can leaders make a difference in the change process? So if you understand what might go wrong, then you might have a better chance of turning that around immediately. That's one of the reasons that we would analyze any process failures that have happened either at your own company or with similar companies or even companies that have already gone out of business. So leaders can make effective changes and help to successfully lead employees through the change process. One of the key reasons that the change process will fail is employee buy-in. So as we've discussed previously, if they do not, the changes will not occur. So it's important to monitor the various stages of change and then ensure that they're implemented properly. And if you do see something that might be a red flag when it comes to an employee making those changes, it's really important to just get in there right away and acknowledge that there's an issue and deal with it. The longer that you let it go, the worse that that might become. Another reason that change process failures occur is if the implementation is not well suited to the business. So in the last video for unit two, we talked about how important it is to make sure that your change model is matched with your type of business. So it is really important to make sure that not only that that is reviewed, but also your company culture. So you have to take that into consideration when you're looking at how to make these changes. So if the change process is improperly implemented, then change will fail. As a leader, it's important to monitor the change process and employee responses and report any issues immediately to resolve them. If you delay, then the change process may fail. Hello, quote. So don't wait for the right opportunity, create it. It's interesting. Change is an interesting thing because for the most part in our personal lives, we want to change. We get excited when we hear stories about people who have changed jobs. Maybe they're making more money. Maybe they've lost 30 pounds. We get really excited when we hear stories about personal change. Or maybe somebody who comes from the wrong side of the tracks, goes to school, gets a bachelor's degree, or something gets accepted into an Ivy League school. We love stories like that. But when it comes to business, we're a lot more resistant. And one of the things to consider is that we've all been at businesses where they've tried to implement change and it didn't go very well. It didn't go very well at all. Maybe people left. Maybe people were like, I don't want to deal with you know, and they left the company or they just gave up. They stopped complaining. They just gave up and kept their head down and did their job, you know, and went home every night. Once you've been through a bad experience of change in the workplace, you're really hesitant when you hear them talking about, oh, we're gonna have these changes. It tends to make people freeze up a little bit. Oh, don't wait for the right opportunity. Create the right opportunity. So some of these things that we talk about in this course are really, they can be difficult to understand, especially if in our personal lives we're excited about change or we're excited when we hear about our friends and family members who have experienced change in a positive way. So kind of an interesting. All right, so in conclusion, what we talked about in this video, so interpreted failures of change management to better understand change in the organization. We looked at examining the reasons organizations fail to change. We compared some ways to motivate employees through the change process. We analyzed how to avoid change process failures in an organization and differentiated the positive and negative effect that leadership has on the change process. And then what's next? So the next video is going to be on unit four of your course and it's on talent management and facilitating change. Thank you.