subject: The Challenge of Systematic Culture Changes [print this page] The Challenge of Systematic Culture Changes
Change in any organization is unavoidable. What is important then is the approach that is given to changes that occur in an organization. It is important to lay down strategies on how to deal with it since it reflects the outcome in an organization. It was almost impossible to believe that anything good would come out of Home Depot after its founders left it and Robert Nardelli took over in 2000. The founders, Bernie Marcus and Arthur Blank left the company with many financial problems. To improve it then culture change was inevitable.
Home Depot Company
When Robert Nardelli took over, the company had been greatly expanded thus leading to serious draining of its profits and cash flow. The managers and other workers did not seem to understand the financial crisis and the need for change in culture. With the entry of a new leader, Robert Nardelli being the first non founder CEO, new approaches on how to carry out activities and bring change in an organization were necessary (Charan, 2006).
Due to his lack of knowledge in the retail sector he faced opposition since he came from a bigger organization as compared to the free spirited Home Depot. People in the organization then thought that Nardelli would GE-ize the organization. Nardelli looking at the oppositions embarked on improving on the relation between the Home Depot and operational success. He purposed to address both culture and operational success. To meet this target he used system thinking approach (Charan, 2006). In addition, he purposed to improve on the social culture of the organization. Social culture is concerned on how people interact and work together in an organization with an aim of achieving the objectives of an organization. He defined such categories as metrics, processes and structures in general to help achieve the goals of the organization. Earlier on the organization used to rely on antidote when it comes to implementation or decision making but Robert Nardelli brought in the use of metrics which was not there before. Through analysis of metrics the company was able to come up with sound judgment. Unlike the previously perceived condition of the organization, the leaders through metrics were able to find out that the company was not performing as they thought. Out of the findings therefore, they worked together so as to improve the organization's situation. Nardelli also came up with a forum of frequent meetings with leaders to ensure that recommendations which had been suggested on a prior meeting were being adhered to. The frequent meetings boosted team work in the organization (Charan, 2006). In the meeting also, there were various reforms that were addressed making the whole company share in the vision of prosperity in the company. He used the leaders to address their various departments and especially emphasize to them the need for credibility and connected them to the evolution. The purchasing system of the organization was also changed to be a central one to be operated by a corporate body of leaders thus improving on the operations and accountability. Nardelli then placed a central leader that would look into the activities and also encouraged centralized decision making. By making all these changes, Nardelli has been able to boost the performance of the company a great deal (Charan, 2006).
Nardelli has been successful because by establishing the problems that exist in the organization, it gave him a good base to start from. The leaders were also able to understand the situation of the organization and therefore brought about team work. Despite the fears of GE culture, that many thought might destroy the spirit of entreneurship, Nardelli purposed not to convert Home Depot to GE system but he decided to bring changes to operational and cultural systems (Charan, 2006).
Any organization can succeed if their leaders learn to embrace change. In the case of Robert Nardelli, he did not fear the situation that the company was but through his innovative strategies to the organization, he managed to pull it up. Change is inevitable and thus should be a source of success and not failure. He was successful because he combined all the necessary ingredients to bring about change.
