Management of Change is Seven Eleven Stores

Management of Change is Seven Eleven Stores

 by Marivic Butod

The only constant in this world is change. It is one of the most popular quotes in the world. Everything in this world evolves and changes in order to survive and go with the flow of the system. Companies are no exception in changes; different organisations change their system or management in order to suit the evolving needs of the employees, management, stakeholders, and consumers. In order to implement the change management programmes in any organisation, the senior managers must understand the connection between theoretical issues and the functional significance of the managers and employees. 7-Eleven, Inc. is the largest operator, licensor and franchisor of convenience store in the world having 31,600 units globally. According to 7-11 (2007) the company was established in the year 1927 in Dallas, Texas, and was the pioneer of the convenience store concept. In addition, the name 7-11 was coined in the year 1946 whereon the stores were open from seven in the morning up to 11 in the evening.

This paper presents a report for the senior management of 7-eleven Stores, Inc. wherein it identifies the agenda for a management of change program. The paper contains preparation for change wherein it includes vision for the renewed organisation, direction and scope of change, and speed of change. In addition, a proposed action will also be made in this paper.

Introduction

The environment, people and the system in this world is constantly evolving. Just as the popular quote mentioned "change is the only constant in this world," change and transformation is very apparent from the changes in the physical attributes and characteristics of an individual, to the changes in the environment and surroundings. Just like the people and the environment, organisations also undergo transformations; the change could be either massive or minimal. Often times change happen within the management of the organisation; in order to keep up with the competition, at the same time, improving the efficacy of the human resource. According to (2000) individuals who went home winners and on top have the common characteristics of effectively handling the changes in the situation. Change in management is a series of actions that corporations whether small or big must undergo, the cycle of the business will not be complete if it did not undertake change management.

According to the 7-11 company website the main emphasis of the company is to meet the needs of convenience-oriented by delivering a wider choice of fresh and excellent products and services at fair prices, clean stores, fast transactions and a friendly customer service.

Prescription for Change

Vision for Renewed Organisation

            7-Eleven is the current leader in the convenience store industry, all over the world, and particularly in Hong Kong which is followed closely by its rival the Circle K. However, due to the stiff competition in the market and there are a number of new players emerging, the 7Eleven company must maintain its rank as the number one convenience store in the market and changes and reorganisation in the management must be done. The main objectives of the 7-Eleven Hong Kong are the following:

• Assure the individuals working in the organisation to understand the vision of the company.
• Develop a working environment wherein there is a possibility to persist the vision.
• Educating the people within the company on ways in which they could collaborate efficiently their own units across the lines of business.
• Enhance the decision-making and problem-solving process of the employees and the teams in the company.
• Create and develop procedures for streamlining the operations, rebuilding teams and opening new communication lines.
• Remove the barriers in the organisation that become hindrances in the productivity and profitability of the company.
• Increase the trust between the people working in the organisation regardless of their position.

The new mission of the 7-Eleven company in Hong Kong is the redefining of the organisation through the recruitment for change teams by the middle and upper-level managers wherein the teams are going to be responsible for the creation and implementation of the re-engineering process. The main objectives of these teams are to restructure the organisation, to remove the inefficient, fragmented and costly work processes through downsizing, and create an environment wherein the managers could manage, as well as, perform the transactions.

            A comprehensive systematic analysis must be done in order to succeed and accomplish the new objectives and mission of the company, in addition the analysis aids in the increase of trust between the individuals working in the organisation. The examination of the practices and the objectives of the organisation must be engaged, as well as, the efficiency of the evaluation, clarity of the role of every individual in the organisation must also be undertaken.

            With a number of new players emerging in the industry wherein 7-Eleven has a huge market share the company needs further development of the employees in order to achieve the capabilities necessary for the success of the business. 7-Eleven needs to function at the highest level of effectiveness and the human resource department plays a very significant role in the management of change and the implementation of the change management programmes of the organisation.

            The new vision of 7-Eleven is to provide the most efficient combined distribution centres through reducing the expenses in the operations and better management of the daily delivery of fresh products to the convenience stores.

Direction and Scope of Change

            In order to address the changes in the 7-Eleven, Inc., the scope must be identified, at the same time, the path of the Change. The scope of the management of change programme in 7-Eleven Inc. is the 7-Eleven convenience stores all over Hong Kong.  The change in the 7-Eleven Stores in Hong Kong will be in the strategies of management of the managers, as well as, the employees. The route of the change is towards the workforce and not on the products since the company has already established a reputation of delivering fresh products in the market.

Speed of Change

            The predicted speed of change in all of the 7-Eleven convenience stores in Hong Kong will be form eight months up to two years due to the fact that the information, negotiations and implementation of the changes in the human resource will take a big amount of time because it has a total of 711 stores all over Hong Kong. Aside from the changes in the upper management of the company, changes will also be implemented on the regular workers.  Application the new management programmes is also predicted to take three to six months due to the expected resistance of the members of the workforce.

Proposed Changes

Leveraging Changes

            In identifying the leveraging changes in the 7-Eleven company a Force Field will be used. Force Field Analysis according to (2007) is a technique created by Kurt Lewin in order to analyse the forces that are opposing to change.

            The current state of the 7-Eleven stores in Hong Kong is pretty good and it is still the number one convenience store in Hong Kong. However, if it will be compared to other 7-Eleven convenience stores in the world the inventory, marketing, and performance of the personnel is not equal to other 7-Eleven stores. The company hopes to increase the efficiency of the marketing and inventory, as well as the productiveness of the workforce through implementing management change programmes. If the changes will be applied within the management and the stores, 7-Eleven projects that there would be an increase in the output of the company. On the other hand, if changes will not be implemented the inventory, performance and other marketing would deteriorate and continuously be inefficient, therefore there is a possibility that the competitors might be at par or even overtake the market.

            The main problems of the company are the intense competition in the market, in addition to the continuous globalisation. Another problem that Seven Eleven faces is the opening of superstores for 24 hours. Moreover, the inefficiency of the service of the staff adds to the problems already brought by the intense competition. The senior management of 7-Eleven, Inc. wants to focus on the improvement of the workers and a strategic human resource development will be utilised and implemented by the managers within the convenience stores scattered all over Hong Kong. In order to talk about the planned transformations within the company, the management must discuss the plans and programmes together with all the various divisions in the organisation that will be impacted by the changes.

            During the meeting and discussion of the proposed change management programmes the management must identify and separate individuals that will be directly involved in the change management process. Then each of the group must write down the reasons why they are against or in favour with the proposed change management programmes, the management could do this in the form of a survey which will be given to all workers in 7-Eleven.

 

Renewing Systems and Structures

            The organisational form of 7-Eleven is the Entrepreneurial start-up or the simple structure. According to (1992) the structure is described as having a little or no technostructure at all, it also has few support staffers, restrained division of labour, minimal differentiation in the work place, and a small hierarchy in management. Moreover the behaviour within the organisation, particularly in the convenience store is not that formalised wherein it utilises minimal planning, training and liaison devices.

            In the new organisational form of 7-Eleven Stores in Hong Kong, it would be Machine Bureaucracy. According to , the machine bureaucracy is an organisational structure wherein there is a clear configuration of the design parameters wherein it consistently held up researches it includes specialised routinely operating procedures, formalised procedures in the centre of operations, propagation of rules and regulations, proliferation of formalised communication throughout the company, dependence on the functional basis for tasks wherein it needs group work, comparatively centralised power for decision-making, and a complexly detailed administrative structure with sharp differences between the line and staff.  In this form of organisational structure 7-Eleven will be able to monitor the efficiency of the performance of the workers because there would be standard procedures and more elaborate structure of management.

Cultural Web

Routines and Rituals- the 7-Eleven, Inc. does not have any formal training with its work force particularly within the convenience stores. There are no specific routines emphasised in the organisation, and just like most companies, the managers and workers of the stores come in to the work place to perform their job and the cycle goes on. This behaviour does not encourage any worker to perform their job better and if ever changes will be implemented within the organisations it will not look peculiar. The new training programs that will be implemented will focus on customer service. In industries like in 7-Eleven customer service is a very important aspect in sustaining the loyalty of the consumers. The routines can easily be changed due to the fact that there is no particular routine in the work place.

Organisational Structures- the management within the stores have limited hierarchy and the overall setting is informal because there are no strict rules and regulations within the convenience except for the usual the punctuality and absenteeism. The management structure in 7-Eleven encourages collaboration with 7-Eleven stores but competition with other organisations in the same industry. The power structure within 7-Eleven, Inc. is democratic because prior to the changes in the management sectors that will feel the impact of the changes directly will be educated and informed and also their opinions will be heard.

Control Systems- In 7-Eleven the most closely monitored is the daily delivery of the fresh products. The company does not emphasise punishment and rewards to the employees, apart from the usual which is the bonus for rewards and removal from the job for punishment. There are few controls in the workplace and the control in the workplace is associated with the history of the company wherein it provides the customers fresh products.

Power Structures- the main beliefs of the senior management of 7-Eleven is that the success of the company is due to the efficient evaluation of the challenges in the workplace, as well as, the market and quickly respond to the opportunities. These beliefs are practical that is why 7-Eleven have dominated the convenience store market not just in the United States but in 18 more countries. The power is distributed to three management teams, the senior leadership team, vice presidents and the division leadership.

            The dominant culture of the organisation is its being practical and open to the opportunities given to them. The changes in the management programmes can be implemented easily because the proposals of the company are attainable and do not have a negative impact on its employees.

Overcoming Resistance

            Resistance of the employees in the change management programmes in any company is inevitable however overcoming the resistance is important in order to implement the required changes in the management strategies. According to Kotter and Schlesinger (1979) there are six approaches that an organisation can use in dealing with the resistance by the workforce and these are:

Education and Communication- In order to overcome the resistance in 7-Eleven the employees should be educated and informed regarding the transformations within the company before implementation to prevent incorrect information that will surround the work area.

Participation and Involvement- the employees must be involved with the planned changes in the management programmes of the company because once they become involved the employees will not resist but instead will participate in the transformations that will be undertaken.

Facilitation and Support- Some of the employees will resist the changes because they are unable to adjust with the new programmes implemented by the management to avoid resistance the management must support the employees that are having a hard time with the changes, establishing a support system will aid the employees to quickly adjust.

Negotiation and Agreement- 7-Eleven should talk and negotiate with the employees, and during the talks the management must discuss the incentives they will receive once they accepted the changes in the management strategies.

Manipulation and Co-option- if the other approaches did not work inviting the union leader to participate and be a representation in the change process will aid in overcoming the resistance to change.

Explicit and Implicit Coercion- if all approaches did not work the last step would be forcing them to accept the implemented changes and threaten them that if they will not comply the employees will lose their jobs. 

 

Conclusion

            Change management is a process wherein all sectors in the society undergo. It is a significant process because it allows the organisation to create decisions that will be beneficial to the employees and the company. Moreover, organisations that are accept changes are usually more successful compare to companies that resist it. In a globalise market, new technologies and procedure are emerging rapidly, in order to keep up with this progress a company must be willing to adapt to management changes.  7-Eleven needs change management programmes particularly with its marketing, inventory, and performance of the employees in order to keep up with the competition that rapidly becomes a huge threat in the organisation. Addressing changes particularly in the human resource will directly benefit the company because the performance of the employees will either aid in the improvement or failure on the performance of the company. Investing in the human resource is important because they are the front liners of the organisation. Efficient front liners ensure the success in winning the battle of competition within the convenience store industry.