Assignment CoverSheet

Course/Unit Information
Course Pearson (Edexcel) BTEC Level 7 Executive Diploma in
International Business Management
Unit No. Unit 3
Unit Name Strategic Change Management
Unit code EDIBM/103
Batch OME1-SCM-Pradeep Bhatia-1507

Instructor Information
Name Pradeep Bhatia
Phone
Skype
Email [email protected]

Assignment Information
Full/ Part Assignment Full Assignment
Date Assignment 20/07/2015
Issued
Date Assignment Due 22/08/2015

Student Information
(To be filled by the student prior submitting the assignment)
Name Makhlouf Akrour
Westford Student ID E01-1504-004
Email [email protected]
Date of Submission 22 August 2015
Learning Outcomes and Assessment Feedback

Module Code EDIBM/103 Strategic Change Management

& Title

Module Learning Outcomes

LO1 Identify and analyse the implications for managing strategic change
in supporting organisational transformation.
LO2 Analyse the organisational management challenges faced during the
transformation and changes experienced by the organisation.
LO3 Analyse and evaluate the significance of strategy employed in trying
to bring about an effective change management in an organisation.
How does this impact leadership and human behaviour in the
organisation.
LO4 Evaluate different change management theories propounded on
management and leadership attributes which leads to enhanced
contribution by managers and the employees.
Assessment types Weightings (%)
Organizational Study (Project 100
Format)
Overall Score

Overall Grade

The following grading criteria will be applicable for the course, Executive Diploma in
International Business Management:

Marks Grade
70 to 100 Excellent
60 to 69 Good
50 to 59 Pass
40 to 49 Fail with Resit
0 to 39 Fail with Retake

The following information is important when:

• Preparing for your assessment.

 • Checking your work before you submit it.
• Interpreting feedback on your work after your receive the feedback.

Assessment Criteria
The module learning outcomes tested by this assessment task are indicated in the previous page.
The precise criteria against which your work will be marked is as follows:
• Description/evaluation of SCM concepts including the application of models, tools
and techniques.
• Analysis/application/reflection of theoretical thinking to a real life scenario
• Presentation and writing style

Performance Descriptors

Performance descriptors indicate how marks will be arrived at against each of the above criteria.
The descriptors indicate the likely characteristics of work that is marked within the percentage
bands indicated.
Assessment (70-100%) (60-69%) (50-59%) D (40-49%) E (0-39%)
Criteria Work of an Work of a good Work of a pass Fail Fail
outstanding, standard. standard.
excellent & v.
good standard (*)
Description A critical A synthesised A reasonable Limited overview of Confused overview
(20%) overview of SCM overview of overview of SCM concepts, of SCM concepts,
concepts, models, SCMconcepts, SCMconcepts, models, tools and
tools and models, tools and models, tools and techniques.
techniques. techniques. techniques.
The work may be an Fundamental
Relevant authors, Good use of existing The structure & overly descriptive misconceptions how
rival theories, and academic work and focus are evident & account to evaluate relevant
major debates to a some evaluation of relevant to the demonstrating only academic work.
very good, salient theories and assessment task. minimal Instead the work is
possibly excellent issues. Some review There is evidence of interpretation, and mainly descriptive
(even outstanding) of relevant authors, engagement with very limited evidence and shows little or no
standard. rival theories, and pertinent issues. Key of analysis, synthesis understanding of
References beyond major debates. authors & major or evaluation. No relevant theory. Too
those identified in Appropriate range of debates are clearly counterarguments or few references to
session sources. references utilised. presented. Evidence alternative frames of appropriate literature
of suitable basic reference are and no evidence of
reading. generated or independent thought
considered. and/ or criticality.
Analysis Demonstrates a Demonstrates a Demonstrates a some The work may be an Fundamental
(35%) clear capacity to capacity to apply capacity to apply overly descriptive misconceptions over
apply relevant relevant SCM relevant SCM account analysing the case in
SCM theoretical theoretical theoretical demonstrating only the context of
frameworks. frameworks. frameworks. minimal relevant academic
interpretation, and thinking. Limited
Clear evidence of Examples of The work explores very limited evidence analysis of a
independent effective use of and analyses issues, of analysis, synthesis superficial nature
thought and very academic but is not strong on or evaluation. only lacks any
effective use of frameworks in order application to the attempt at analysis,
academic to analyse the case case organisation. relying on
frameworks in scenario. Examples The work is mainly description instead.
order to analyse of sound argument descriptive, but has
the case scenario. and solid evidence. achieved all the
learning outcomes.
Evaluation An ability to The work The work There may be little No application of
(30%) successfully demonstrates a demonstrates a evidence of an ability theoretical principles
synthesise willingness to competence to to apply theoretical to the case scenario
theoretical issues question and to explore issues and to principles to the case or a wider context.
into practice and explore issues and to synthesise theoretical scenario or a wider Conclusions
evaluate the synthesise theoretical perspectives and context. Conclusions unrelated and
possible perspectives and practical application unrelated to the confused or illogical
implications and practical application within chosen case scenario. Lessons and unsubstantiated.
lessons. Ideas are within chosen case context. Some learned either Lessons learned
presented in a context. Some helpful conclusions superficial or either superficial or
succinct manner meaningful well- and lacking. lacking. Possibly no
and conclusions reasoned conclusions acknowledgement of real attempt to
are well reasoned and attention given lessons learned. address assignment
which have to lessons learned brief in respect of
relevance to the which have relevance reflection.
scenario. to the scenario.
Presentation A balanced, well- A balanced, well- Case is cohesive, but Whilst some of the Significant failings
(15%) structured case, structured case. may be hindered by characteristics of a in case balance,
generally coherent Overall clear well- inappropriate pass have been structure or writing
in approach. Well- written, well balance, structure or demonstrated, the style. Repeated
written, well presented. Some writing style. Some work does not possibly significant
presented and small repeated errors small repeated errors address the case errors in referencing
largely free of in grammar. Good in referencing or requirements overall. and/or grammar.
spelling and/or application of grammar. Current Possibly lacking in Critical failings in
typographical Harvard referencing and balance, structure or case balance.
errors. Breadth of system. Breadth of relevant references writing style. Some Possibly lacking in
appropriate, appropriate, current, and correct repeated errors in coherence is
 current, and and application of the referencing and/or unstructured and/or
relevant references relevant references Harvard Referencing grammar. Limited is badly presented.
and correct and almost correct Method. use of references.
application of the application of the
Harvard Harvard Referencing.
Referencing
Method.

Assignment Brief: General Guidelines

The detailed requirements for this task are as follows:

Scenario:
Choose an organisation which is existing from or before 2007, preferably where you are
working or familiar with, understand the standard operating procedures of your chosen
organisation and find suitable information related to the Strategic Change Management
principles.

You need to apply key concepts of Strategic Change Management to answer and justify the
questions given below:

Global companies had a great impact of recession during the year 2007-08 which lead
many organisations to close down their operations and made a number of organisations
to undergo change management process to compete and survive in the market.
Companies are striving for continuous improvement and trying to manage the changes
effectively and efficiently in the present hard economic times also.

If you have been given an opportunity to act as a change agent and implement changes
in your chosen organisation, what steps will you take into consideration while
implementing the change management process in the following tasks given below.
Justify them with suitable examples:

Task 1

Explain how the general/standard operating procedures of the company were

affected during recession and how they influenced the chosen organisation to
undergo change management process?
 Task 2

What steps will you take to inform and handle the stakeholders of the chosen
organisation, while implementing change in your chosen organisation?

Task 3

How do you assess the resource implications of the chosen organisation which
are likely to affect strategic change process in the organisation?

Task 4

Analyse and explain the challenges faced by the chosen organisation while
implementing the change management process.

Task 5

Identify a suitable SCM model which will help you to implement the change
management process in your chosen organisation without affecting the
management and the employee interest adversely.

Requirement

You must write a detailed answers on the implications and the challenges faced by the
management during the strategic change process which occurred in the specified period. You
MUST follow the assignment format and it should contain the following sections:

1. Chosen organisations:You should give the details of the chosen organisations and
their basic operations before answering the questions. Also you should provide some
background information on the standard operating procedures, what are the problem
areas and what are the changes envisaged.

2. You should conduct a study on relevant academic literature and provide a critique of
the current issues/concepts that are relevant to the answers. You must include
strategic change management concepts and appropriate application of models, tools
and techniques to support your answers.

3. Application of theory to practice: you need to compare actual change management

practices followed in the chosen organisation with the key academic thinking
established in the review of literature. It may point out similarities and differences,
agreements and contradictions, and suggest explanations for these relationships. The
 focus of this section needs to be on: (1) Strategic Change Management Concepts (2)
a critical evaluation of tools and techniques used for change management process (3)
the role of strategic change management theories, tools and techniques in developing
new products and effective operation plans (4) stakeholders contribution.

4. References: you should use the Harvard referencing system.

5. Mandatory Attendance Requirement: The results are declared only if the student
has met the mandatory attendance requirement of 75% and/or a minimum of 50%
under extenuating circumstances approved and ratified by the Academic Director.
The student has to repeat the module (with additional fees applicable as per
Westford) if the attendance is below 50%.

6. Submit the assignment in a MS Word document with the file name being:
a. Student ID_First Name Last Name_ abbreviation of the subject_Assignment
E01-1504-004_Makhlouf Akrour_SCM-1507_Assignement
Example: J01-EDIBM-1410-01_John Smith_OM_Assignment.

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY ................................................................................................................... 9
2. INTRODUCTION TO WEATHERFORD .......................................................................................... 11
3. LITERATURE REVIEW ................................................................................................................... 11
4. DRIVERS OF THE CHANGE .......................................................................................................... 13
4.1 INTERNAL SITUATION .............................................................................................................. 14
4.2 EXTERNAL SITUATION ............................................................................................................. 15
4.2 .1 PESTEL ANALYSIS ................................................................................................................ 15
4.3 COMPETITOR ANALYSIS ......................................................................................................... 17
5. STRATEGIC CHANGE MODELS ................................................................................................... 18
5.1 KOTTER’S CHANGE MODEL .................................................................................................... 18
5.2 LEWIN’S CHANGE MODEL ....................................................................................................... 20
5.3 IMPLEMENTING THE CHANGE ................................................................................................ 21
7. MANAGING RESISTANCE ........................................................................................................ 22
8. MANAGING STAKEHOLDERS .................................................................................................. 23
8.1 EVALUATING STAKEHOLDERS ........................................................................................ 24
8.2 STRATEGY FOR CHANGE INVOLVING STAKEHOLDERS ..................................................... 24
8. CONCLUSION AND RECOMMENDATIONS ................................................................................. 26
9. REFRENCES ................................................................................................................................... 27

1. EXECUTIVE SUMMARY
Weatherford is operating in a dynamic environment where change is taking place at a
high rate. At different time’s need of change is different for the company. Initially
Weatherford was a very small company when compared to their pairs in the industry
(HAL/SLB), at that time the need of change was the expansion and quick growth.
The psychology, leadership style and management philosophy of leaders was another
factor that guide the change in organization and make successful Expansion in diverse
genre of business guides company to take further changes however this growth had a
side effect , relaying on acquisition had put the company in very difficult situation
tewards the continuous need for free cash have pushed the company to relay
exclusively on financial partner ( banks) to ease the acquisition process, 2007 was a
dramatic year for the oilfield companies, many of them did not survive , weatherford
had also to face similar issue.
Quick action and clear plans were set in place at that time to redress the situation and
face the crisis, the three points below were decided by the management at that time to
be implemented without delay:
1:- Stop all the acquisition prospect.
2:-Divest unnecessary assests
3:- Focus on core activity and exit any non-profitable location.

A strategic change management have been set in place, I would qualify it successful,
the plan involves employees at all the levels in each country and each location.the
information cascaded adequately to the stakeholders and they were involved in the
whole transformation process.

For the last twenty years Weatherford has survived to several crisis as do have
resources and capabilities to adopt to the global market.
The new management appointed at that time have identified several areas where there
is a potential areas for improving the footprint without putting the company into issues
again, it was decided to focus on developing partnership with local companies
especially in middle east this will increase the market share without investing a lot of
capital, this will also reduce the exposure towards the local liabilities.

Strategic change management process was very benefic for the whole organization, the
changes have been implemented methodically and gradually , the company continues
to grow for the next 10 years, Having the objectives set, it was the responsibility of
management team at the level of the countries , supported by Weatherford senior
management, to put this plan in action and make sure that the team assigned to
implement the required action is on the right track to achieve the targeted goals within
the timeframes. Furthermore, contingency measures are set to avoid any deviation from
the initial plan, but it was a real challenge to clear all the debt accumulated during this
period, this financial situation is still playing a critical role in the overall company
strategy, and the orientation towards downsizing the group is not adequate now in 2015.
2. INTRODUCTION TO WEATHERFORD

Weatherford is one of the largest international oil and natural gas service companies it
is actually known as one of the four majors service companies, (Shlumberger ,
Halliburton, Baker Hughes and Weatherford ).
The company provides products and services and turnkey solutions for drilling,
evaluation, completion, production and intervention of oil and natural gas projects.
Weatherford is headquartered in Switzerland, and has the main operational office in
Houston, Texas. Weatherford currently operates in more than 80 countries across the
globe and employs more than 50,000 people with approximate $ 16 billion in 2014.
The company was founded in 1941 in Weatherford, Texas, from the beginning, the
company pioneered innovative techniques and equipment for the oil and gas industry
allowing it to lead market in few areas (fishing, casing accessories running tools...).
Originally focus on U.S. Market , the company decided to spread the activity towards
other regions and area, and to strengthen and diversify the activity and the ray of
services offered .the company went through intensive growth especially the last 20
years ,this growth was accelerated the last 10 years ,both organic and acquisition
methods have been used to reach the goals , during the this expansion Weatherford
went from a small local service company in west Texas to become a giant international
service company well established and know in the oil and gas industry .
In order to cope with the continuous evolution and revolution of the oil field market,
Weatherford has established a corporate strategy in line with customers’ demands and
highly competitive environment.
In early 80’ the company started a strategic growth process, mainly driven by the high
rates of oil prices, the company acquired a lot of companies to increase market share
and develop a foot print in some areas where the company have very limited presence.
The financial crisis in late 80’s have directly impacted Weatherford, the access to the
capital resources have been cut by the stakeholders, the company had to adapt the
overall strategy to survive through this period.

3. LITERATURE REVIEW

The oil and Gas industry is a very complicated and challenging market, making the
right choices is fundamental to success.

The capital expenditure involved while executing the project is massive for both the
clients and users and for the services providers known as services companies. In our
case, we are going to focus exclusively on our company Weatherford, one the major
service companies in the oil and Gas industry.

It is perceived in the oil and gas that strategies need to continuously adapt to match the
clients requirements and needs. There are several risks associated to oil and gas
industry in general that are affecting directly the strategies of the service companies,
prices fluctuation and geopolitical risk remains considerable factors these two factors
have dictated the changing strategy that occurred within the company in late 80’s.

All authors and specialists agree to say that in the current and future business
environment, there is and will be a very strong need for change, and more particularly
for continuous change, understanding the need for change is the first step within a
change implementation process, it is extremely important that the need for change is
understood, and not only by the top management. All the people that are impacted –
most of the time they are employees – must understand the purpose of the change. A
change which is understood stands better chances of being successfully implemented.
It ensures that leaders should spend time explaining the need for change to their
employees (Heifetz et. al. 2009).

Three types of change can be differentiated especially according to their degree of

radicalization and impact on the organiation. As McNamara defines it (2006), incremental
change could deal with the implementation of a new information system for example or with
continuous improvements of processes, which are even sometimes not recognised as such a
change by managers (McNamara, 2006). Conversely, transitional and transformational
changes might mean changing the whole organisation’s structure or organisational culture,
which will impact all stakeholders more than the incremental change.

Any of these types of changes is easy to implement, each has its specific process to be
implemented. Incremental change for example supposes several negotiations and steps so
that to be successfully implemented. However, transitional and mainly transformational
change implementation processes use to turn out to be tougher procedures as they induce
strong impacts
 Source: The puzzling nature of organizational change (2005) Bennet, S

Weatherford in early 86-87 has to change drastically the vision of the company, it went
through a transformational change.
I strongly believe that the leader role is crucial in driving, implementing and motoring
controlling the change, Weatherford had a very strong CEO that took drives these
changes.

Eisenbach et. al. analysis definitely highlight the important role of leaders in the
change implementation process as well as in the mastery of all the key success factors.
Their role is hence to lead people so that they get positively involved in the process
and to achieve that, they are able to act on several variables.

Effective leaders “assume responsibilities for reshaping organizational practices to

adapt to environmental changes. They direct organizational changes that build
confidence and empower their employees to seek new ways of doing things. They
overcome resistance to change by creating visions of the future that evoke confidence
in and mastery of new organizational practices. (..) The leadership we are talking about
will become more evident in organizations able to respond to spastic and turbulent
conditions”. I find these sentences from Bennis and Nanus (2007, p. 17) extremely
interesting as they summarize the change implementation need in current
environments, the change implementation success factors, as well as the central roles
of the leader as a change agent focusing on the importance of people.

4. DRIVERS OF THE CHANGE

Being Involved In the oil and gas industry for the last 20 years, I can state that there
are several factors that have obliged Weatherford to review the overall company vision
and to refocus on the core business where Weatherford have competitiveness
advantages.

The major forces which make the changes not only desirable but inevitable are
technological, economic, political, social, legal, international and labor market
environments.
These forces are both internal and external we have defined the need for the change in
the case of Weatherford is matching this theory , external conditions are obliging all
the services companies to adopt and adapt their strategy to the market condition or else
they will be absorbed by the financial crisis, internally the company must downsize the
foot print to match the market demand, and more accurately to control and cut cost
where ever it is possible, in order to be able to surpass this very critical period.

4.1 INTERNAL SITUATION

As highlighted previously the company was in middle of an intensive expansion

plan when it was heated by the crisis, there are several area that were directly
affected by the situation and have impacted the new direction of the company

Human Resources
Since the establishment on the company it was decided to relay on the local
resources to build the different segments, training and career path have
generated one f the most talented personnel in the industry, it is considered as
the most important asset of the company and management relay on it to drive
and implement the desired change effectively and in time manner.

Financial Capabilities
Weatherford invested almost $ 3Billions prior the crisis start, investment have
oriented towards the most profitable segments and acquisitions of competitor
companies , the model of growth was both organic and through acquisition to
match the market needs, however it is perceived that one of the mistakes of
Weatherford is related to this strategy . The amount of debt contracted to the
banks, and interest have negatively impacted the company during this recession
period.
Business Intelligence
Weatherford was taking advantage of the global structure in terms of business
intelligence and client relationship, at a certain stage the financial impact was
predicted but not the extent it reaches.
4.2 EXTERNAL SITUATION

4.2 .1 PESTEL ANALYSIS

Political
Weatherford was operating in different geopolitical environments that have
been affected at different level by the financial crisis , stability of a country is
crucial for business continuity and growth especially for a country that relies on
the oil and gas industry as the driver for the economy , ME, Latin America have
been always a source of trouble and instability .
The political progress and domestic stability in these countries continues to
deteriorate still today. It was an additional factor leading to continuous change
to adapt the situation.

The sudden drop of the oil prices late 1986 has affected the volume on the
country investment, the governments has reviewed the amount of Capex
allocated to the oilfield industry, and the optimistic plan growth plans have been
reviewed.
Overall, Weatherford have been directly affected by the political situation
within the countries and the local management team is continuously monitoring
the situation to minimize the exposure risks, looking into strategic alliances
with local companies company as an alternative partners however this issue
requires a plan at a corporate level .

Economic
At early stage it was perceived that a noticeable slow down during the first
quarter of1986 due to the oil prices, however, most of the contract are long
term, and overall, the volume of work will compensate the losses over the
business expansion. This prediction was completely wrong, the collapse on the
international finance have pushed all the majors oil companies to cut their
investments , most of the major projects especially in north America have been
put on hold, the amount of equipment/investment planned by Weatherford was
wrongly allocated , and did not reach the amount of utilization planned, it
becomes critical to find a solution to either increase the utilization of this
equipment or cut the depreciation cost both the two options were not easy to
implement at a local level , a corporate decision needs to be driven from the
top.

Socio-cultural
Oil industry is very critical for producer’s countries it have been all the time
part of the political and economic orientation of these countries. The
methodology of management has slowly moved toward joint venture between
the international oil companies (investors) and local companies. Clients’ nature
has drifted to a combination between investors and shareholders, which will
lead to a unique way for managing the developing sector of the economy and
oil and gas industry in particular.
The population is strongly influenced by the crisis in general factors and
western companies are perceived as the cause of the prices collapse, several
violent actions have been taken in different places. The intolerance to these
companies including Weatherford is reflected in business decisions.
Weatherford as an organization had to shut down some locations due to
economic constraints.

Technological
The oil and gas industry is a very challenging sector, the high demand for
innovative solutions is part of the differentiating strategies of the companies,
high level technology requires a huge amount of investment between 8 to 10
%of total company investment is oriented towards R&D, these are long term
prospect where return on investment is uncertain , the late 80’ financial crisis
not only stop the investment but it also create a price competitiveness between
the players , witch lead to margins erosion ( most of the NT revenues are rated
very high margins).

Ecological
The environment is one of the sectors in which deterioration and neglect is
prevalent as a side effect to the crisis, especially in the oil and gas sector, where
all the investment have been withdrawn.
The absence of an environmental protection is not because the lack of laws
regulating the environment. The environmental laws were ignored simply
because of the reduction in resources, it becomes crucial to extract the oil at the
lowest possible price no matter what side effect will have in the short term.
This is one area, where Weatherford was looking to develop during that said
period , by launching and implementing the Drilling Waste management
division, to minimize, segregate, treat and dispose of any hazardous waste
generated while drilling, this division have not operated properly till 2009, more
than 10s of stand by .
Legal
Corruption and business ethics have been always a concern in countries where
it operate in general, Weatherford as an organization is closely looking into the
changes in law and FCPA practices, we are fully adhering to the international
standards in terms of business practices, and a fully dedicated team is in charge
of legal matter in each region, this structure is maintaining up to date
information as to the legal developments affecting the business. Due to the
constant variation in the regulatory platform, it is also beneficial for
Weatherford to understand as to how those developments could be also
beneficial.
Working environment in several countries is very complicated, it is up to the
different structures that Weatherford had set in place to set up guide line, and
process controls to avoid any disturbances to the flow of operations.

4.3 COMPETITOR ANALYSIS

The main competitors are Schlumberger (SLB), Baker Hugs (BHI), Halliburton
(HAL), and National oil services companies (NOCs) which are part of the local
government. Table1 highlights the strengths of competitors’ advantages.
Weatherford owns a unique Drilling and Completions portfolio and was
planning to introduce additional services that can compete in the new market
configuration; first by providing all drilling and completions services with
reasonable prices and take advantage of market expansion by acquiring small
local companies to increase market share.

SLB BHI HAL NOCs

 Integrated Sales Strong Portfolio in in Strong Portfolio Competitive Prices
High Profile completions services drilling services and Government
technology influence

Table 1: competitor’s strengths

5. STRATEGIC CHANGE MODELS

Strategic change management is the process of managing change in a
structured, thoughtful way in order to meet organizational goals, objectives,
and missions. Change is necessary for organizations to continue to thrive and
meet and exceed the competition of industry competitors and ultimately resist
to any external factor that may affect the growth /existence consistency of the
company. Weatherford as an organization had to go through these processes in
late 80 in order to survive as a company,
There are numerous models for managing a change process. I identified two
models that are particularly well-known and useful in implementing strategic
change management are John Kotter's Change Model and Kurt Lewin's
Change Model.

5.1 KOTTER’S CHANGE MODEL

John Kotter, published in 1995, the article 'Why Transformation Efforts Fail'.
The change management article outlines eight critical success factors from
establishing a sense of extraordinary urgency, to creating short-term wins, to
changing the culture ("the way we do things around here").

Kotter say's "Leaders who successfully transform businesses do eight things

right (and they do them in the right order)." Years later, the change management
model developed and this work on leading change still remains very relevant.
Downsizing the company resources, divest unnecessary segments, focus on
core business is not an easy process, it needs a buy out from all the structure to
insure quick deployment and effective implementation.

John Kotter theory may be applied successfully to Weatherford case in 1986

to face the need for change, the below steps must be applied:
Step 1 A sense of urgency should be created around Weatherford operations.
The discussion on positive aspects of change can be made at management level
to realize that it is better to change quickly. Sincere group discussion should be
made to explore opportunities and avoidance of threats.

Step 2 After creating sense of urgency the staff is convinced to participate in

making the change a success. The true leaders are highlighted in the
organization. The working in team building can be encouraged in order to
control the member professionally and emotionally. Weak areas at individual
level and team level are highlighted and removed.
Step 3 The values relating to change are determined and matched with the
organizational values and vision. The key points for future of organization are
highlighted. The strategy for management of change is devised.

Step 4 Vision of change is conveyed to staff members. The teams are made
clear what they have to achieve in future. Regular team discussions are made to
talk about the change vision. The leaders must lead by example so that the
employees followed their paths.

Step 5 A detailed reviews of organizational structure, job description,

performance and compensation systems can be made to check whether they are
inline with the change vision or not. The recognition and rewards are offered
for the people making change happen. Reduced the obstacles made by the
people resisting change and help them to understand the change.

Step 6 Implement short/ easy projects initially which can be implemented

without heavily help. The expensive/ resource intensive projects may not be
adopted early. The short term will boost the morale of persons involved in
change process.

Step 7 After completion of each short term project evaluate the results. Find the
ways to improve the performance. Continue to improve the momentum you
have achieved. Try to make continuous improvements to processes involved in
change.

Step 8 Finally made the change permanent and part of daily routine. Discuss
the success stories relate with the change. Recognize and reward the change
agents publically so the others can also took inspiration and perform well for
next change.
 Figure 1: Kotter’s model workflow

5.2 LEWIN’S CHANGE MODEL

Kurt Lewin presents his three phase model for managing change. Three stages
are unfreezing, change and refreeze or freeze. This model seems to be very
simple but it is possible to take is to different level of complexity too. It depends
on the organization and its structure.

In first stage the need of change is realized. This stage focused that we lived in
a dynamic environment which is constantly changing. It is emphasized that
change is necessary for progress and a sense of urgency is created among the
team members. It states that as early as we adopt the change it will beneficial at
organizational level and as well as at individual level.

The stage emphasis that changes is not an event rather it is a process. It is also
called stage of transition. This is hardest stage as a lot of resistant may came
from members. It is very difficult to leave the existing methods of doing things
and adopt the new methods. It is actually the implementation stage.

In third stage the change is stabilized. The new ways of doing things are made
the part of routines of the organization. The individuals, departments and
organization accept the change and it becomes the part of the norms. People
become comfortable with the change and new relations are developed.
 Figure 1: Lewin’s model workflow

5.3 IMPLEMENTING THE CHANGE

Step 1: Analyze the need of change First of all Weatherford must analyze the
need of change. As it is a large conglomerate, so the identification of areas is
also necessary where the change is required it needs to be driven from top to
bottom, and communication is a key at all the levels of the process..

Step 2: Selection of Model The model of change can be selected according to

the requirements of the organization. The two models listed above can be
selected as those are suitable for large number of situations. Kotter’s model is
however the most preferable one to my consideration as we are dealing with
large organization where cascading information and paying attention to
stakeholders is crucial .

Step 3: Analyzing probable reactions The expected reaction – whether

internal or external - are analyzed. The reaction of employees, stakeholders and
other parties are analyzed in response to change and appropriate answers to their
needs to be investigated well in advance.

Step 4: Final Decision After analyzing the reactions, the suitable actions are
performed to make the stakeholders understand that the change is beneficial.
After gaining the confidence of all parties the decision of change is finalized.

Step 5: Establishing Timetable Actions in regard of change are prioritized. As

change is not an event time table is constructed for implementation of change.
 The tasks which are less resource consuming performed first as they help the
participants to gain confidence.

Step 6: Implementation & Monitoring Finally the change is implemented and

the results of change are gathered. These results are compared with the
expectations and room for improvement is highlighted.

Step 7: Making the Change Permanent If required the plan is revised and
implemented with improvements. The change is made permanent and part of
daily routine life.

7. MANAGING RESISTANCE
There are several strategies which can be used for managing resistance in an
organization being with Weatherford for the last 5 years, and previously in SLB for 15
years, I have been involved in several strategic changes processes, it is typical to our
industry to notice very slow motion changes, convincing the teams, have been always
a challenge it is due to the nature of the business itself, and the ‘’culture of the oilfield
sector..
1. Open communication may be promoted in Weatherford in order to stop resistance
against the change. The employees may have full right to explain their problems which
they facing due to change. The problems then must be removed in order to make the
employees comfortable with change.
2. Necessary training (related to change) may be provided to employees so they may feel
comfortable while handling the new methods which change bring to organization.
3. The employees must involve in the process of change in initial stages because it is a
fact that the processes are better understand by the people which are close to process.
They might highlight some point which will help management to reduce resistance in
future.
4. Different forums may be developed to discuss the impact of change and problems faced
by employees.
5. All stakeholders must listen in order to deal with the problems faced by them after
implementation of change.
6. A 360 degree feedback culture may be developed in order to reduce the resistance.
7. The needs of stakeholders must be addressed so they find it easy to adjust with change.
8. The employees involved in change may be rewarded and recognized so that other
employees may take some inspiration from them.
8. MANAGING STAKEHOLDERS

There are several systems of involving stakeholders in the process of change because
they are affected by the change made to organization during the financial crisis one of
the most important stakeholder was the bank that was heavily involved in the
investment of the $3Billion.
Stakeholder analyses provide a detailed look at several groups of stakeholders and help
the organization to understand the needs of those groups. It helps the organization to
take a decision which incorporate the thoughts of all groups.

Investors
Investors are affected by every business decision. It is necessary to involve investors
while taking the change decision. As we can see in case study that the confidence of
stakeholders was dwindled. It is very important to incorporate the thoughts of
stakeholders in change process.

Suppliers
Business change decision may affect the suppliers of business also so, it is necessary
to consider the effects that can harm the suppliers.

Employees
In change processes the employees are integral part because they have to implement
and follow the system so the consideration must be made for involvement of
employees’ suggestion in change process.

Customers
In today’s dynamic era companies are more focused towards customers and customers
are integral part while deciding the change in organization. The effects of change can
made a great impact on customers. It is necessary to involve the stakeholders in change
process.
Society and Government
Society and Government both are affected by the changes made in company. It is
necessary to make consideration for both in change process.
Creditors
Last but not least creditors has interest in company’s performance as the losses to
company have direct impact on them. The need for involvement of creditors in change
process is mandatory.
 8.1 EVALUATING STAKEHOLDERS

Weatherford is a huge company with lots of projects, The above mentioned

system might work well for the organization because the company has lots of
stakeholders and each stakeholder have its own requirements and needs from
the companies. The analyzing of stakeholders will provide company a good
opportunity to meet with the demands of the stakeholders.

Develop
Optimise Monitor
Identify Priotise Map Profiles Chnage
Support Changes
Strategy

In this methodology the data regarding all stakeholders is gathers. The need and
interest of each stakeholder in organization is assessed. After gathering the data
all stakeholders are prioritize according to need of organization and the effect
of change on each group of stakeholders. There profiles are mapped by the
organization. A categorized list is developed in order to find the requirement of
the stakeholders and impact of change on them. The extent of support which
can be received during change process is assessed. In consideration of above
mentioned facts a change strategy is devised. Targeted communication plans
are developed. In last the monitoring of changes has been done by the
organization.

Above system holds goods for big companies like Weatherford. It is a

systematic process which involves the stakeholders in making decision for
change. It will provide a solid method for prioritizing stakeholders. It helps
company to develop a strategy which will engage stakeholders in decision
making regarding change in organization. Mapping of stakeholders allows
company to target the right stakeholder at right time and decide about how much
involvement is required from a specific stakeholder.

8.2 STRATEGY FOR CHANGE INVOLVING STAKEHOLDERS

Following steps may be followed in order to make change in organization

involving stakeholders.
1. Weatherford employees must understand the vision and change
initiatives.
2. Leaders must engage the stakeholders in change process by using above
mentioned models.
3. Assessing the requirements and interest of stakeholders.
4. Selection of change model.
5. Expected reaction of stakeholders in response to change is analyzed.
6. A dynamic and system communication track is developed in order to
make stakeholders well informed regarding change.
7. Tasks in regard of change are prioritized.
8. Suitable time table is developed.
9. Finally the change is implemented.
10. The effect of change on stakeholder is monitored.
11. Problem areas are highlighted by making discussions and holding
meeting with stakeholders.
12. Highlighted problems are removed and change is made permanent.
8. CONCLUSION AND RECOMMENDATIONS

Continuous improvement , management of change are two processes well implemented

within Weatherford organization , employees at all the levels are trained on these two
topics, managers and supervisors are also coached and trained in this manner , it was
clearly identified at all the stages of these two processes that effective communication
is a key element in the implementation of such process.
Understanding the goals and the objectives out of the process is helpful, it is crucial to
show the advantages and attended values of the change, it is perceived that Weatherford
had accomplished the changes initiated in late 80 to face the finical crisis, the company
continue to grow and come back on track, however, it was also noticed that after a
decade, the company have faced the same issue in 2009, Weatherford acquired
Precision drilling to complete the portfolio of the company adding drilling activity ,
they put an additional $ 2Billion investment . It was not a successful investment, the
company is still struggling and share value is dropping since that , the issue of the cash
flow is increasing , and banks short term interests is becoming a real issue, the problem
is getting worse and worse with the actual crisis in the oilfield, and the future of the
company is uncertain .
With that being said, it is clear that the company failed in implementing the changes
correctly, and to my understanding there are two main reasons behind that:

1- Leading the changes have not been performed correctly , communication was a
key issue it was noticed that at a certain level there is a break in the communication
channel where objectives have not been clearly communicated to the teams that
will implement the changes .
2- Sustain the changes have not been a priority within the organization, the growth
demand have created the need for a quick and reactive management process, going
back to acquisition having that amount of financial issues is not adequate for the
company, it should have continued focusing on internal growth promoting the core
business segment and focusing on what was the differentiating technology of
Weatherford.

Overall Weatherford as one of the major oilfield service companies have to balance
between the market and field needs and associate some risk evaluation to the
growth strategy , it is also crucial to find an appropriate Senior manager who can
lead the changes , a leader charisma is very important , he will be the image , the
driver and the ultimate responsible for the change.
 9. REFRENCES

1. Johnson, J. March 2002. ‘Leading the learning organization: portrait of four leaders’.
Leadership and Organizational Development Journal – Vol. 23, No. 5. pp. 241-249.

2. Schraeder, M. et. al. 2005. ‘Organizational culture in public sector organizations:

promoting change through training and leading by example’. Leadership and
Organizational Development Journal. Vol. 26, No. 6. pp. 492-502Kotter, J. 1996.
Leading change. Harvard Business School Press, USA.

3. Lewin, K. et. al. 1939. ‘Patterns of agressive behavior in experimentally created

“social climates’. The Journal of Social Psychology.

4. Lines, R. 2005. ‘The structure and functions of attitudes towards organizational

change’. Human Resource Development Review – Vol 4, No. 1 March 2005 8-32.

5. Longenhecker, O. & Rieman, M. May 2007. ‘Making organizational change stick:

leadership reality checks’. Emerald Insights – Vol. 21, No. 5. pp. 7-10.

6. McNamara, C. May 2006. Field guide to consulting and organizational development:

a collaborative and systems approach to performance, change and learning. Axiom
Business Books Awards, USA.

7. Moran, J. & Brightman, B. 2000. ‘Leading organizational change’. Journal of

Workplace Learning: Employee Counselling Today – Vol. 12. No. 2. pp. 66-74.
8.

9. - Eisenbach, R. et. al. 1999. ‘Transformational leadership in the context of

organizational change’. Organizational Change Management – Vol. 12, No. 2. pp.
80-88.
10. Grant. Contemporary Strategy Analysis, 7th Edition. John Wiley & Sons "Porter’s Five
Forces of Competition Framework “

11. Weatherford Overview. Retrieved August 2, 2015 from

http://www.weatherford.com/index.htm