Thursday, December 15, 2016

A635.8.3.RB_TransormationalStrategies_LouBeldotti

A635.8.3.RB

Transformational Strategies


In this blog, I am asked, “How do I relate and make sense of the approaches taken by Jim "Mattress Mack" McIngvale and Stanley McChrystal compared to the information presented in my textbook?” and use the figures below: “Figure 15.4 Relative Strength of Corporate Cultures” and “Figure 15.5 The Strategy-Culture Matrix in my response.”

(Brown, 2011)
             Gallery Furniture was opened in the Houston area in 1981.  According to Mattress Mack, sales were great because of the house building boom.  He goes onto say that over 60,000 houses were being built per year but in 2008 it slowed down to about 15,000 per year.  If that wasn’t bad enough, in 2009 they experienced a horrific fire that caused $30,000,000.00 in damages which affected their customer base.  To get beyond these problems, business practices had to change.  The culture of the business had not change since they had opened their doors in 1981.  However, cultural change had to occur if they wanted to remain solvent.  In figure 15.4 and 15.5 above and to the side, between 1981 and 2008 Gallery Furniture would have fallen in the “strong culture” quadrant of 15.4 (Strong/High) and the “reinforce the culture” quadrant of 15.5 (Low/High).  As the company transformed toward a new culture, it face resistance from some of the senior employees.  In this case, they were in the “weak culture” of 15.4 (Weak/Low) and the “change the strategy” of 15.5 (Low/Low).  However, as Mattress Mack moved forward by having influencers and coaches who dealt with the customers (prospecting) and employees, respectively.  The company introduced things such as incentive pay and a wellness program to not only get employee buy in to the culture changes taking place but also improve the bottom line. 

            I can truly relate to Mattress Mack’s approach to his cultural transformation.  I have witnessed this type of transformation while in the Army.  Even though there were the old Soldiers (like the old employees) that resisted, they eventually either made the transformation, got out or retired.

            With regards to General McChrystal’s TED Talk, I can completely relate.  I lived the exact same experiences that he did.  I watched the Army transform right before my eyes.  I watched the old regime resist change and grasped for understanding as a new generation of Soldiers came on board.  I use to call them the “Nintendo” generation.  Especially toward the end of my military career.  These new Soldiers were tech savvy, texting, video game playing arguers.  They always question why something is being done.  Being a different kind of “old school”, it really would get under my skin.  Now that I have been retired almost seven year and have seen the actions and behaviors of the high school Cadets that I teach, the military is going to need to transform again.

References

McChrystal, S. (2011, Mar). TEDTalk: Listen, learn…then learn. [Video File].  Retrieved from http://www.ted.com/talks/stanley_mcchrystal/transcript?language=en

McIngvale, J. (2012, September 17). Influencer | Gallery Furniture video case. [Video File].  Retrieved from https://www.youtube.com/watch?v=E20RW75Fhu4

Brown, D.R. (2011). Experiential approach to organization development. (8th Ed). Upper Saddle River, NJ: Prentice Hall





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