Introduction
The three stages of unfreezing, changing, and refreezing, encompassing the change model, are essential to bringing about the transformation that Sears Holdings Corporation seeks. This model is a straightforward and valuable tool for comprehending the transformation process. The unfreezing process acknowledges that many people are reluctant to change and aims to inform them of the adverse consequences of maintaining the status quo (Burnes, 2019). The change model can be utilized at Sears Holdings Corporation to implement innovative strategies that minimize costs and maximize returns.
Company Challenges
At Sears Holdings Company, certain recognized practices hurt business profitability. The firm recognizes that its business and operations results might be substantially harmed if it cannot compete successfully in the extremely competitive retail market. Due to the decline in sales and the decrease in gross margin percentage, total gross margin decreased to $4.8 billion in 2016 from $5.9 billion in 2015 (Sears Holdings Company, 2017).
In addition, management is aware that sales, income, and profits may be stunted if the company does not provide products and services that members and consumers demand. The organization recognizes that poor inventory management will negatively impact its operational outcomes. The decline in goods sales was the primary factor in Sears Holdings Company’s $3.0 billion decrease in total revenues from 2015 to 2016, compared to $25.1 billion in 2015 (Sears Holdings Company, 2017). For the corporation to overcome these risks, workers may be reluctant to adopt the appropriate behavior necessary for the company to do so.
Introducing Change
Unfreeze
The execution of the change defines this transition phase and requires thorough preparation and management. The transformation has fully materialized at this point, and most individuals are having trouble adjusting to their new standards (Burnes, 2019). The proposed changes in this model can take approximately one year for the managerial and workforce to adapt to the organization’s change demand. In this transition phase, individuals absorb the new norms and values that will guide their daily lives.
Change
In the change stage, the managers should provide workers with ample training, knowledge, encouragement, and flexibility as they adjust to the new standard. These may help the organization reduce operational costs by reinforcing a positive work culture. Operating losses for 2017 were $430 million, whereas for 2016, they were $2.0 billion (Sears Holdings Company, 2017). Setting new standards in an organization helps reduce the losses incurred in investments. Interest and investment losses decreased to $12 million for the year from $26 million in 2017 (Sears Holdings Company, 2017).
The company’s operating loss was $2 billion in 2016 and $1 billion in 2015 (Sears Holdings Company, 2017). The proposed change is that managers can use technology for monitoring and tracking systems to monitor activities. It may take six months to actualize this change, and its benefit will ensure the security and effective use of corporate resources to reduce the losses the organization may incur.
Refreeze
Refreezing is widely understood as bolstering, maintaining, and cementing the new state established by the transformation. The firm’s manager ensures the workers adhere to adjustments to the company’s routines, objectives, and architecture (Burnes, 2019). It is essential to prevent individuals from returning to their pre-change ways of thinking and behaving once the transition has begun. Sears Holdings Company must be committed to maintaining the change to have any lasting effect. The changes will help the company effectively compete in the market and avoid losses. The profit margins will grow, and the organizations will expand and serve more people.
Conclusion
In conclusion, transformation at Sears Holdings Corporation requires the three phases of the change model: unfreezing, modifying, and refreezing. This transitional phase is defined by implementing the change, which requires careful planning and administration. Managers have a responsibility to help their employees through the transition phase by providing them with adequate opportunities for learning, growth, support, and adaptation. It is often accepted that refreezing helps strengthen, preserve, and firmly establish the new state produced by the transformation. Implementing the changes ensures that the organization has competitive advantages over its rivals.
References
Burnes, B. (2019). The Origins of Lewin’s Three-Step Model of Change. The Journal of Applied Behavioral Science, 56(1), 32–59. Sagepub. Web.
Sears Holdings Company. (2017). United States Securities and Exchange Commission. Web.