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Topic: Caterpillar’s organizational transformation

Case Assignment
For the Module 4 Case Assignment, you will use the Cycle of Change Model to evaluate the organizational transformation process of a familiar company: Caterpillar, Inc.
Read the following case study about Caterpillar’s organizational transformation. As you read through the case, be sure that you carefully consider how the various steps in the Cycle of Change Model were employed by Caterpillar as it undertook its massive—yet immensely successful—organizational transformation. Essentially, Caterpillar “wrote the book” as to how major organizational change should be successfully accomplished.
Neilson, G. L., & Pasternack, B. A. (2005). The cat that came back. Strategy+Business. Retrieved from https://www.strategy-business.com/article/05304?gko=56862
After reading the Caterpillar change case study, respond to the following in a well-written 5- to 6-page paper:
1. Apply the Cycle of Change Model to the Caterpillar case study, that is,
a. Direct the change: Minimally, describe the process by which Caterpillar determined the nature and scope of the change needed. Did the organization explicitly state what the expected outcome(s) of the transformation would be? How well was the change articulated?
b. Drive the change: How was the company’s new vision made known? What was the process for “driving” and energizing people involved with and responsible for the organizational transformation?
c. Deliver the change: Describe the process by which Caterpillar delivered the change (project management, e.g.).
d. Prepare for the change: Discuss Caterpillar’s change management process; how were the company’s people and culture prepared for such a massive transformation? .
e. How was the change propagated throughout the organization?
f. What benefits/ value did Caterpillar realize from the organizational transformation process? Were the outcomes consistent with the benefits that were contemplated at the outset of the planning process?
2. With the understanding that Caterpillar’s transformation was tremendously successful, provide your impressions concerning the extent to which Caterpillar adhered to the Cycle of Change Model.
3. Related to Item #2, what did Caterpillar do particularly well in terms of following the Cycle of Change Model sequence?
4. Conclude your paper by providing recommendations as to what Caterpillar might have done differently to improve the organizational transformation.
The following sources may also be helpful to you in the completion of the Case assignment, as it provides very current background on Caterpillar.
Hymen, J. (2017, July 18). 3 reasons to be bullish on Caterpillar (CAT) ahead of earnings. Nasdaq. Retrieved from http://www.nasdaq.com/article/3-reasons-to-be-bullish-on-caterpillar-cat-ahead-of-earnings-cm817686
Caterpillar ranks #47 on Fortune’s “Most Admired Companies” list, and is ranked #59 on the 2017 Fortune 500 list:
Caterpillar. (2017). Fortune. Retrieved from http://fortune.com/worlds-most-admired-companies/caterpillar/
Assignment Expectations
1. Your task for this assignment is to “map” the events you’ve read in the case study to the various steps in the Cycle of Change Model. Bear in mind that Caterpillar did not utilize the Cycle of Change Model as the “script” by which the company undertook the various steps of its organizational transformation. Therefore, you may not find that Caterpillar followed the Cycle of Change Model precisely, and in certain instances, you will likely be required to interpret how Caterpillar fulfilled some step(s) in the Cycle of Change Model sequence.
2. Your paper must be at least 5-6 pages in length.
3. Be sure that you incorporate sources found at the Background page into your written analysis.

BACKGROUND

In Module 4, we will discuss the steps associated with organizational change:
1. Direct the change: The organization is focused toward a specific outcome or result; the nature of the change is clearly articulated and is universally agreed upon.
2. Drive the change: The vision is made known; the organization’s people are made aware of—and begin to take ownership of—the change. Driving the change is the process of ensuring that the people who are responsible are energized (momentum is the operative word at this stage of change). A single individual (the “driver”) of the change is identified.
3. Deliver the change: The change transitions from a concept to a tangible plan. It is at this stage the Project Management begins; the right people, systems and processes are identified and become involved in the change.
4. Prepare for the change: Prepare people; prepare the environment. This stage requires “Change Management” (management of change) and a “Change Manager.” The organization’s people must be receptive. Moreover, the environment is a key point of focus (that is, the organizational culture), as the culture must be consistent with the change.
5. Propagate the change: Disseminate the change; ensure that the change “sticks.” In the text Managing organizational change, Campbell (2014) states that the word “propagate” is the only word that “adequately implies the level of care and nurturing required to get a fragile change to stick to the extent that you need to sustainably deliver benefits (Section 4.5, para. 4).
6. Profit from the change: Realize the benefits (value) from successful change.
Each of the foregoing stages of the change process are discussed in-depth in the Managing Organizational Change text. Read Sections 4.1 through 4.6:

Campbell, H. (2014). Managing organizational change: A practical toolkit for leaders. Philadelphia, PA: Kogan Page. Retrieved from EBSCO—eBook Collection.

Optional Reading
If you would like additional resources to help you in completion of the Case Assignment, please consider the following:
For a very good overview of how change occurs in the context of the organization’s systems, please read Chapter 7 of the Focusing on Organizational Change text. Systems thinking theory relates to Step 3 of the Cycle of Change Model (“Deliver the Change”):
Judge, W. (n.d.). Focusing on organizational change. Retrieved from http://www.oercommons.org/courses/focusing-on-organizational-change/view
It goes without saying that good communication is an imperative in any organizational event. Chapter 8 of the Focusing on Organizational Change text provides an excellent overview of how to overcome communications challenges. Note the author’s citation of George Bernard Shaw’s quote:
“The single biggest problem in communication is the illusion that it has taken place.”
Judge, W. (n.d.). Focusing on organizational change. Retrieved from http://www.oercommons.org/courses/focusing-on-organizational-change/view
The Change Leaders Network is replete with outstanding articles and several webinars related to organizational change and change management. Following is a truly excellent article on the nature of communication in the change process:
Anderson, L. A., & Anderson, D. A. (2015). Six faulty assumptions about organizational change communications. Change Leaders Network. Retrieved from http://changeleadersnetwork.com/free-resources/six-faulty-assumptions-about-change-communications
The Free Management Library is an exemplary source of information on all leadership and management topics. Of interest to us in this final module of the course is the section entitled “Approaches and Methods for Managing Change.” Be sure to review the section on “Systems Thinking” (related to Step 3 of the Cycle of Change Model: “Deliver the Change”):
McNamara, C. (n.d.). Approaches and methods for managing change. Free Management Library. Retrieved from http://managementhelp.org/organizationalchange/index.htm
Step 2 of the Cycle of Change Model (“Drive the Change”) requires engagement of key stakeholders. In the following article, the Change Leaders Network provides an excellent tool for designing a stakeholder engagement strategy:
Anderson, L. A., & Anderson, D. A. (2015). Designing your engagement strategy. Change Leaders Network. Retrieved from http://changeleadersnetwork.com/free-resources/designing-your-engagement-strategy
Note how the steps in the Cycle of Change Model are referenced (albeit indirectly) in this webinar from the Change Leaders Network. This webinar is highly recommended:
Anderson, L. (2015). Savvy strategies for implementing a common change methodology [Webinar]. Change Leaders Network. Retrieved from http://changeleadersnetwork.com/free-resources

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