FPX 8610 Assessment 3 Aligning Frameworks DB-FPX 8610 Leadership Theory and Practice Kensington Auto Parts: Business Story
When change management is poorly managed or ignored, projects and organizations face increased costs and risks (Creasey, 2022). This is evident in the case of Kensington Auto Parts. The company’s work quality has diminished, valuable talent is being lost, and productivity is low (Media.capella.edu, n.d.). These issues reduce morale, affect customers and suppliers, and create a legacy of failed change. The costs and risks impact not only the project team but the entire company (Media.capella.edu, n.d.). These effects often extend well beyond the lifecycle of a given project. When valuable employees leave, the consequences can be extreme. So, why is Kensington Auto Parts ignoring all these warning signs?
The Problem
Kensington Auto Parts faces a problem directly linked to Emotional Intelligence and Leadership. Specifically, the company’s issue is poor change management. Properly managed, change management can serve as a risk mitigation tactic and a cost avoidance technique (Creasey, 2022). Evidence of Kensington Auto Parts failing to deliver results and outcomes includes:
- A 3% decrease in market share
- High expenses
- Loss of global investment opportunities
Effective change management can mitigate risks and prevent issues related to how employees adjust to change (Creasey, 2022). Kensington Auto Parts needs to include its business roadmap and guiding principles in its change management strategy (Creasey, 2022). Business leaders must reflect and echo the goals of the change management strategy (Shin, 2013). Without effective preparation and influence from leaders, the results could be detrimental (Shin, 2013). Last year’s 3% market share decline underscores the need for immediate action to bridge the practice gap (Media.capella.edu, n.d.).
Researching Articles to Support a Problem and a Gap in Practice
Kensington Auto Parts’s leadership fails to understand the importance of change management. Knowing how to lead and navigate through uncertainty and chaotic changes can make or break a company (Shin, 2013). Change management requires a collective effort (Shin, 2013). The change management plan must have support from all levels of management (Shin, 2013). Leadership must recognize that change management is central to progressively managing and implementing ongoing change (Creasey, 2022).
For change management to be effective, leaders at all levels need to be involved (Hitt, 1995). Kensington Auto Parts’s leadership must understand the impacts and recognize failing change management. Senior management sets the tone, middle management plays a frontline role, and team leaders are crucial (Hitt, 1995). Whether expected or unexpected, change can lead to either success or failure (Hitt, 1995). Leaders must be aware of their organization’s “meaning” status (Ericson, 2001).
The way Kensington Auto Parts interprets new processes or changes may differ from the actual reasons for the change (Ericson, 2001). For example, the company’s reluctance to expand beyond U.S. territories is seen as adherence to traditional methods (Media.capella.edu, n.d.). If the leaders do not understand the impacts of their poor change management skills, the risks will continue to be damaging (Ericson, 2001).
DB FPX 8610 Assessment 3 Aligning Frameworks
To reinvent itself, Kensington Auto Parts must abandon outdated business models (Tran & Anvari, 2014). Sticking to traditional methods hinders change (Media.capella.edu, n.d.). A company that positions change management as a risk mitigation and cost avoidance technique understands the importance of managing change (Muralidharan, n.d.). Kensington Auto Parts must be ready to meet market demands head-on (Tran & Anvari, 2014).
Currently, Kensington Auto Parts has not formed any global marketing partnerships, and recruitment of young creative talent has declined (Media.capella.edu, n.d.). These issues could have been mitigated with proper change management. With growing trends, change management must be discussed regularly (Tran & Anvari, 2014).
Utilizing frameworks can help implement change management efficiently. Traditional frameworks were once sufficient (Kunnanatt, 2016), but today’s complex issues require more strategic approaches (Kunnanatt, 2016).
DB FPX 8610 Assessment 3 Aligning Frameworks
Two frameworks, Sensemaking and Sustainability, highlight the importance of managing change for Kensington Auto Parts. The sensemaking framework helps organizations understand emerging contributions (Ericson, 2001). It emphasizes how employees create meaning and understand organizational goals (Ericson, 2001). The workforce is changing, and Kensington Auto Parts must adapt to