Industry-wide changes have become a common phenomenon at a time when changes in technology and market requirements demand that companies adjust accordingly. Despite that the energy industry was predicted to be one of the most stable and with a great potential for growth in the past, it has emerged that not all forms of energy will survive in the long term. Non-renewable sources of energy, particularly crude oil by-products are particularly on the verge of elimination as organizations seek to achieve a sustainable future. As the CEO of Slippery Oil Company, I concede that the recent announcement by Ford Motors that it will quit internal combustion engines, which will be replaced with electric motors is well-timed. It is up to Slippery Oil Company and others in the industry to not only adjust to the new changes but also to show leadership in pursuing the ultimate goal of achieving sustainable growth. In this discussion, I intend to show how my company will implement change geared towards remaining profitable in an ever-changing industry. This discussion will further prove that: in the face of change, companies ought to be keen on sustaining their core values as they seek to align processes and resources to the desired change process.
Before deciding on the course of change to be taken by Slippery Oil, it will be necessary to analyze the company’s capabilities. This will ensure that the company does not take up strategies that will either destabilize its current operations or that will lead it to do away with its strongly held value system in vain. According to Christensen and Overdorf (194), it is common for organizations to consider their resources as those that are tangible, including people, equipment, technologies, as well as cash. Although an abundance of these resources places the company at a pole position to adjust to change, processes and values are equally important in determining how well a company adjusts to external developments.
Considering the fact that our customers are shifting to electric cars, it is relevant to start using a new service line in order to meet their needs and to remain profitable. My proposition is that we should introduce charging stations at convenient points across major towns and cities and along major roads. Being a necessity to run and operate electric cars, charging stations are part of the hoped-for sustainable future, yet there are not enough of them to meet current needs. This places the Slippery Oil Company at an ideal position to fill this gap and to become a leader in the provision of electric energy for powering electric equipment, including cars and bikes. In order to achieve this objective, the company will need to implement change across various stages of its operations, including the supply chain, resource allocation, and human resource management.
As the CEO of Slippery Oil Company, it is my duty to determine how well we can use the resources available to ensure a fluid change process. It should be noted that the company will have to offset some of its physical resources as it seeks to alter its technologies in the long-term. With this in mind, it would be necessary to liquidate some of the assets before determining how easily it can acquire new ones. At the same time, wholesome changes will necessitate that the company changes its suppliers, which will necessitate that it creates new relationships with suppliers (Christensen and Overdorf 194). Moreover, although Slippery Oil Company is equipped with a great team of professionals who have helped the company to reach where it is today, it will be remembered that some of them are not qualified for the roles and responsibilities that will come with the new face of the company. However, because the people who will need to be replaced are mainly specialized professionals, it is safe to state that the company will retain a majority of its employees.
With these factors, in mind, it is worth stating that the range of resources that the company will need to change include: people, suppliers, equipment, technologies, and product design. Some of the resources that the company will retain include brands, teams of people, cash, brand, distributors, and customers (Christensen and Overdorf 194). While it may be necessary to change some of its resources and processes, it will be necessary that the company retains its core values. For instance, the long-held principle of placing the satisfaction of customers at the forefront will remain applicable long into the future of the company.
In conclusion, effective change management is necessary in ensuring that a company does not lose out on its fundamental values and that it optimizes its resources towards facilitating the necessary processes. In the case of Slippery Oil Company, the change process entails shifting from providing traditional non-renewable fuel products to meeting electric energy requirements for its customers. The company seeks to not only adjust to the change process but to also become a leader in the effort towards pursuing a sustainable future. As revealed in this discussion, some of the resources and processes will need to be changed entirely while some will be retained. However, the company will need to retain its long-held values in order to remain profitable.
Christensen, Clayton M. and Overdorf, Michael. “Meeting the challenge of disruptive change- Clayton Christensen responds.” Harvard Business Review 78.5 (2000): 194.