Change Management of Nike Company

I. INTRODUCTION Change circumspection cannot be separated from the validation. It is because trade is inevitable. But some people do not like the budge itself. They tend to think ab out(a) the bad substance of the permute in the organization, such as layoff, downsizing, pay cuts, or relocation. In fact, the depart can be the dangerous forward motion, such as the amelioratement of the technology, building sunrise(prenominal) products, and increase the trade. The management has to be prep atomic subprogram 18d of the alter management in order to profit the effective tilt management. The budge is get hold ofed to improve the performance of the organization.The change is used to make the good development of the organization, such as emerging in the bigger market place, getting the bigger revenue, etc. In this globalization era, the organization has to be dynamic in order to adapt to the environment that lay aside ever-changing day by day. If the organization cannot implement the change management, the organization allow not be competitive in the market because the opposite organizations keep improving and change the management to adapt in the change environment. II. system of rules Definition of Change watchfulnessChange management is the figure out of planning, organizing, coordinating, and controlling the compositions of the environment, internal and away of the organization, in order to make sure that the changes are implemented to approved plans and objectives of the changes is going s healthful and has the little disruption (Oseni, 2007). Change management is the ruse or science of making changes with the certain systems or methods to make backb star out of the organizational chaos that fleet in the party and disturb its employees, its suppliers, its vendors, and its customers (Ledez, 2008).External factors are the factors that force the bon ton to do the change management. For example, the company indispensability to adju st the price of the products to make it same as the market price, or to attract the customers. Process of the Change Change essential be vivid and attainable. Instead of forcing change, it is better to warrant the number of participant that join into the change and the process of the change itself. Every change process should begin with these sanctioned head words (Oseni, 2007) 1. What needs to be change? Change should not be insertd into the system tho.Change can be caused from the organization itself or outside of it. The question is beat out answered when the limitations of the process are identified. The answer of this question should be able to reference why the change is necessary. 2. To what should it be changed? It is one thing to cognize that at that place is a need to change the incumbent system, still another question is to what it should be changed. Change cannot be justified into the organization that doesnt hit the sack the better alternative to the curre nt system. The change must be offering the better acquires to the new system than the current system does. 3.How should this change happen? Some changes are ended as a disaster. It only wastes the management time and investment. Whatever approach is adapted to effect the change must address the issue of how to minimize disruption to the system and minimize the personify withal. 4. How can the change be sustained? If this question is not well addressed, all efforts are only a waste in the enormous run. This is the stage where many process changes face the problems. Stages of the Change In the change management, there are three stages of the change 1. Pre- death penalty Stage. In this stage, there are three parts C erstwhileption of change fancy This stage is where the need for process change is realized. For example, the need to improve the inadequacy in the current system. The need to reduce cost, the need to improve the service, etc. * Evaluation of the idea In this phase, th e alternatives are identified. * focusings eventual approval to introduce the process change At each of sub stage, especially the points at which the change idea was evaluated and approved, possible resistance by users and beneficiaries at the exist processes must be identified. 2. Implementation Stage In this stage, the process change is implemented.It is necessary for management to wad up a standing perpetration to be proactive in identifying problems and resistance during the capital punishment and finding solution. When it cannot proceed problems and resistance, it should at least find effective solutions. entirely of the s analyseholders need to be carried along as the implementation progresses for better on a lower floorstanding and cooperation. 3. Post implementation Stage This stage is ensuring that the process change passs the predetermined objectives and that post implementation stage problems are identified and sorted out quickly. Management should ensure that al l staff members affected by the change.All members should be given the sense of smell of importance in the successful of implementation of the process change. Change in any organization in one of stressful condition that company volition pay off to deal with. How a company deals with change can, decides whether the company allow for continue to be profitable and forge ahead with new ideas and products and renew the organizational life cycle. Most companies that fix continued to comprise in business and stay profitable have continually added, renewed, and change the product line, the customer base and the general way to do the business.Based on John P. Kotter theory, there are eight steps that will compound the change in the organization and help lowering the amount of stress. They are as follows 1. Increase Urgency This will help focus the employees on the change at hand and leave the little time to anticipate back at the previous system. 2. Build the Guiding Team Management must be well informed and have capabilities to make the change. They have to be a capable fly the cooper who can answer intimately question and if not can adequately respond to the employees in a timely manner. 3.Get the Vision Right Management has to be able to narrow the company vision form to all levels. 4. Communicate for Buy-In Management should be able to sell the workers of the need for the change. 5. Create Short-Term Wins Management has to set the small goals that can be reached realistically. This will increase employees moral and incommode from the difficulty of the change. 6. Empower Action The managers have to have the capabilities to guide the staffs without business organisation of rejections. 7. Do Not Let Up The act of the change has to ceaselessly be pressed onward.Stop in the middle of process will only jeopardize the power of the new way since the employees will be stuck in the transition period. 8. Make Change Stick The company must live the new process. It cannot to go back in the old way once the change is made. Management cannot oer communicate change. Both managers and employees have to know in advance about the situation. The managers have to have the power to take decisions on the spot based on the information that they have. But, they have to have the realistic goals.Managers and employees have freedom to make mistakes and learn without fear of rejection or public embarrassment because solution of change sometimes come out from the mistakes and later will find the better way to resolve the problems. III. PROBLEMS Nike is one of big company in the world that does the change management. fraternity write NIKE, Inc. (NIKE), incorporated in 1968, is engaged in the design, development and worldwide marketing and selling of footwear, tog, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic garment worldwide.The Company sells its products to retail accounts, through NIKE- owned retail stores a nd Internet sales, and through a mix of independent distributors and licensees, in approximately 190 countries around the world. The Company focuses its product offerings in seven key categories Running, Basketball, Football (Soccer), Mens Training, Womens Training, NIKE sportswear (its sports-inspired products) and Action Sports. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lcrosswisee, outdoor activities, football (American), tennis, volleyball, travel and wrestling.The Company sells sports tog and accessories, as well as athletic bags and partner items. It also markets apparel with licensed college and professional team, and league logos. The Company sells a line of performance equipment under the NIKE mug name, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, evasive equipment, golf clubs and other equipment designed for sports activities. It also s ells small amounts of various ductile products to other constituters through its wholly owned subsidiary, NIKE IHM, Inc.In addition to the products the Company sells immediately to customers through its Direct to Consumer operations, the Company has entered into license agreements that permit unaffiliated parties to manufacture and sell certain apparels, digital devices and applications and other equipment designed for sports activities. The Companys wholly owned subsidiary, gelt Haan (Cole Haan), designs and distributes dress and cursory footwear, apparel and accessories for men and women under the Cole Haan trademark. The Companys wholly owned subsidiary, Converse Inc. Converse) designs, distributes and licenses athletic and casual footwear, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star grade insignia and Jack Purcell trademarks. The Companys wholly owned subsidiary, Hurley global LLC (Hurley), designs and distributes a line of follow o ut sports and youth lifestyle apparel and accessories under the Hurley trademark. The Companys wholly owned subsidiary, Umbro International Limited, designs, distributes and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of football (soccer), under the Umbro trademark.Change Management in Nike * Strategic Management Changes Nike changed some people in some positions in order to driving deeper consumers connection and expanding the market share. Nike hopes that the changes will strengthen the global management team and look forward to the leaders in these key roles. The changes are (www. info. nike. com, 2010) * Global brand and general management veteran Joaquin Hidalgo as unrighteousness death chair of Emerging Markets reporting to President of Nike Global Operations, Gary DeStefano.Hidalgo brings over 20 years of Nike experience to the role, and most belatedly served as Vice President of Global Brand merchandise, where he was slavish in building and expanding Nikes brand globally through advanced product launches and highly successful marketing strategies. * Jayme Martin, a strong and strategical business leader with 13 years of Nike experience, beats the companys Vice President of Global Running reporting to Global Brand folk Management Vice President, Trevor Edwards. Martin has held various senior key global and geographicalal management roles across the Nike senior management team. Davide Grasso, a proven and season brand leader stupefys Vice President of Global Brand Marketing reporting to Global Brand Category Management Vice President, Trevor Edwards. Grasso brings 15 years of experience in various senior global and geographic marketing management roles in the U. S. , Europe and Asia Pacific regions. * Leslie Lane becomes the Managing manager and Vice President of the Nike Foundation, reporting to Nike Foundation CEO and President female horse Eitel. He will be responsible for leading the team to present the Foundations next exciting chapter of global impact.Lane joined the company in 2003 to lead the acquisition and integration of Converse into the Nike portfolio. He also previously managed Nikes Global Footwear strategy, finance and costing activities. * Product visualise All product improves environmental profile as measured on Sustainability indexes evolved from Nike Considered Design ethos and indexes. Then, all new NIKE Brand global footwear will achieve silver rating and all new NIKE brand global apparel will achieve bronze rating. * Using of Water Improve the cleverness of utilizing the water by 15 per centum per unit in apparel materials dyeing and finishing and footwear manufacturing. Waste Building the waste decline in footwear manufacturing and reduced 10 pct reduction in waste from manufacturing across NIKE * Community Invest minimum 1. 5 per centum of pre-tax income in the communities annually. The results of doing the change management in some factors ar e (nikeinc. com, 2012) * The number of manufacturing plant audits showing serious, repeated violations has remained low, at about 5 percent over the past five years. The number of contract factories with unknown conditions has reduced from 48 percent in FY09 to 8 percent in FY11, due(p) in large part to increased monitoring against NIKE, Inc. s classify base. * Human Re origin Management training was conducted in 79 percent of focus contract factories (76 of 98) which covered 94 percent of footwear volume, 43 percent of apparel volume. * CO2 emissions from contract footwear factories used to source NIKE Brand product were down 6 percent from FY08-FY11, despite a 20 percent increase in production. * 97 percent of NIKE brand footwear achieved a baseline level or better on Nikes Considered Index. IV. ANALYSIS Nike was doing the change management in order to improve the performance of Nike. By doing the change management, Nike builds Nikes long-term strategic vision.It is to disunite profitable growth from constrained resources. It is underscored by new targets and loads, including a company-wide commitment to further integrate sustainability principles into its innovation processes, governance and portfolios. The work ahead is unified in two levels continuous improvement targets against key impact areas to make today better and broader innovation commitments to design the future that establish how Nike is come on longer-term change. Nike is known globally for innovative performance products and sustainability has now increasingly become core to Nike business approach.Nike has continuously invested in reducing the environmental and hearty impacts within the business and supply chain and has made substantial gains over the last decade. Nike knows that they cannot achieve the bold sustainability goals simply by delivering incremental improvements, but need to deliver innovations that rapidly evolve the way things are through with(p) at Nike. Nike also unveil ed its new factory rating system, the Manufacturing Index, which looks comprehensively at a contract factorys. This Index elevates labor and environmental performance alongside traditional supply chain measures of quality, cost and on-time delivery.Within the boilersuit Manufacturing Index, the company has developed an innovative Sourcing & Manufacturing Sustainability Index (SMSI) which assesses contract factory performance on sustainability measures including measures of lean, environmental performance, health and safety, and labor management factors. afterward more than two years of development work and concluding a successful pilot program, the SMSI is currently being rolled out across NIKE, Inc. s global supply chain. V. CONCLUSION Change can be not really good at the first, because change is costly, wasting time, and become not useful thing.In fact, it is very useful in the organization to improve the performance. The organization need to follow the situation and environme nt and it forces the organization to do some change. When doing some changes, it needs to be carefully thought and implemented. The organization needs to have plans to ensure that the changes are doing well in the process and in the implementation. The top management also has responsibility to ensure a successful process change. Change will be success if it is well managed. The management has to busy to the internal and external factors, such as employees, customers, suppliers, and also the competitors.The major objective of doing the change is to improve the performance to be better than before. It is the reason why when doing the change the management has to be very concern on that. It is very possible that the change may destroy the organization. Because of that, the change has to be managed in the proper way. The successful change management will give good improvement for the organization. It may give more benefit also for the organization. References Ledez, Robert. E. 2008. Ch ange Management Getting A Tunned Up system. Retrieved kinfolk 26th, 2012 from http//www. saycocorporativo. om/saycoUK/BIJ/journal/Vol1No1/article_7. pdf Ozeni, Ezekiel. 2007. Change Management in Process Change. Retrieved kinfolk 26th, 2012 from http//www. isaca. org/journal/Past-Issues/2007/Volume-1/Documents/jopdf0606-change-management. pdf Profile Nike Inc. retrieved family 26th, 2012 from http//in. reuters. com/finance/stocks/companyProfile? symbol=NKE. N NIKE, Inc. Announces Strategic Management Changes. 2010. Retrieved September 26th, 2012 from http//www. info. nike. com/media/pr/2010/05/20_StrategicManagementChanges. html FY 10-11 Sustainable Business Performance Summary. 2012. Retrieved September 26th, 2012 from ttp//nikeinc. com/news/nike-inc-introduces-new-targets-elevating-sustainable-innovation-within-business-strategy/inline/10492 Nike, Inc. Announces Senior Management Changes. 2012. Retrieved September 26th, 2012 from http//nikeinc. com/news/nike-inc-announces-senio r-management-changes2 Werkman, Renate. 2010. Reinventing Organization Development How a Sensemaking Perspective Can Enrich OD Theories and Interventions. Retrieved September 26th, 2012 from http//www. onderzoekenadvies. org/wp-content/uploads/2010/01/928458277. pdf Change Management NIKE Inc. Vanindya Permata Adi 014201000130 Banking Finance Class 2 President University