Change Management Time for Dell Corporation

By: Lance Winslow
Submitted: 2007-01-17 15:05:11
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When should a company consider change management? Most would say when the management is unable to perform up to the optimum level that is required to maintain shareholders' equity and quarterly profits. But when it comes to leadership it is much more than that and to that point let me discuss one of the major times it is important to consider a change management situation for the upper executive management.

Often when a company is going to lay off many employees, it may be necessary to bring in a new set of corporate executives. Once the layoffs are completed many employees may feel that they no longer trust the Company or the leadership and that in the future they may lose their jobs as well. To alleviate some of this concern it may be necessary to once again change the management and that way all the layoffs that occurred can be blamed on the previous management.

This allows the new management with a clean slate and record with the employees so that the employees will respect their leadership and follow their guidance. It also pleases shareholders who may have seen a drop in stock price, giving them something to look forward too.

Now that let's take a case study with Dell Corporation in 2006. Currently they are laying off over 4000 employees and after they're done laying off all these employees the remaining employees may no longer trust the management and therefore it is necessary to consider a succession plan to begin after the layoffs. Please consider this strategy in 2006.

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