SmithKline and Beecham Companies Transformation Case Study

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Entry and Contracting Phase to Facilitate Organizational Development

The entry phase included the diagnosis of both companies and their place in the worldwide pharmaceutical industry (Carter, Giber, & Goldsmith, 2001). It was concluded that it was a merge of equals. Also, the entry phase included both due diligence and legal matters (Carter et al., 2001). During contracting phase, much attention was given to declaring the unity of companies to provide a message to all employees that the companies should work to achieve common goals. The invited external consultant provided an assessment that gave a real picture of problems and perspectives of the merged companies. The important role was given to the cultural aspect and management practices.

Transformational and Transactional Elements of the Organisation

As the transformational element of the assessment phase, the top half of the Burke-Litwin model was used (Carter et al., 2001). It includes external environment, strategy, mission, leadership, and culture. These are transformational factors of organization change. It was underlined that in such mergers as between SmithKline and Beecham executed on a large-scale, total system basis, focus should be on the transformational element (Carter et al., 2001). The transactional elements of organisation performance were represented by the lower part of the model. It included daily aspects of companies’ operation and their organizational performance. On the whole, the model suited the purposes of the merge of the companies.

Phases Applied by SB Organization-Wide Survey

Such stages of OD and change management as sensing and discovery as well as diagnosis and feedback were regarded by applying the SB organization-wide survey (including individual interviews) at the beginning of the implementation phase (Lasley, Kellogg, Michaels, & Brown, 2015). It assessed the merge process effectiveness. During the post-implementation phase, the repeated survey was related to evaluation and closure stages (Lasley et al., 2015). It was important because its results were encouraging. After five years, the survey revealed certain gains of the merge of companies, for example, the management was reported to use employee’s skills and abilities more efficiently (Carter et al., 2001). Still, there was a problem with introduction of innovations.

References

Carter, L., Giber, D., & Goldsmith, M. (Eds.). (2001). Best practices in organization development and change: Culture, leadership, retention, performance, coaching. San Francisco, CA: Jossey-Bass/Pfeiffer.

Lasley, M., Kellogg, V., Michaels, R., & Brown, S. (2015). Coaching for transformation (2nd ed.). Troy, PA: Discover Press.

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