Kohl’s Corporation Organizational Change Plan
Executive Report
Presented to:
Kohl’s Corporation Executive Leadership Team
FINAL REPORT
Submitted by:
Banana Consulting Group:
Amy Thomas, Danielle Fisher, Julie Cusatis, Kimberley Thurston Rahiminejad,
Shuyun Chen, Veronica Burnette, and Vivian Taylor
EAC 556 (601)
North Carolina State University
Table of Contents
Executive Summary ……………………………………………………………………………….3
Description of Three Phases of Change Plan and Model …………………………………3
Summary of Phase One ……………………………………………………………………4
Summary of Phase Two ……………………………………………………………………5
Summary of Phase Three …………………………………………………………………..5
Kohl’s Recommendations / Adjustments in Proposed Activities …………………………..5
SWOT Analysis ……………………………………………………………………………………6
Sustaining the Change ……………………………………………………………………………..7
Recommendations/Next Steps ……………………………………………………………………10
Appendices:
PHASE ONE ……………………………………………………………………………………..12
PHASE TWO …………………………………………………………………………………….27
PHASE THREE .…………………………………………………………………………………43
LESSONS LEARNED …………………………………………………………………………...56
REFERENCES …………………………………………………………………………………...60
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EAC 556: Kohl’s Corporation Organizational Change Plan
Executive Summary
The Retail, Wholesale and Department Store Union (RWDSU) and Kohl’s Corporation recently
reached a labor management agreement to pilot unionization of 10 existing retail stores in the
Raleigh area between January, 2014 and December, 2016. Banana Consulting Group (BCG), an
external consulting firm specializing in organizational change and strategic planning, has been
hired by the Kohl’s Corporation to assist with the design and implementation of the change
initiative. This executive summary outlines the recommendations made by BCG to assist the
Kohl’s Corporation leadership team with piloting Kohl’s in U, a comprehensively planned
workforce change initiative. If this pilot proves successful, RWDSU and Kohl’s Corporation will
proceed with unionization plans for the entire Kohl’s workforce.
Change agents must not only have a compelling reason for the change, but also develop strategies
to build commitment within stakeholder groups, navigate challenges that may emerge, assess
outcomes throughout the transition, make needed adjustments along the way, and ultimately
institutionalize the processes and procedures that will sustain the change (Mayhew, 2006).
Kohl’s Corporation has a unique opportunity to step out in front of the competition and position
itself as a socially responsible industry leader and trendsetter in the global market. In an industry
saturated by retail giants who are known to bully workers, pay less than livable ages, break labor
laws, and illegally threaten and punish employees, Kohl’s’ in U reflects a promise to create
positive change by demonstrating a commitment to employees, customers, shareholders, and the
local and global community.
Description of Three Phases of Change Plan and Model:
Banana Consulting Group (BCG) recommends that the Kohl’s in U pilot be launched in three
phases:
1. Phase One – Preparing for the Change
2. Phase Two – Implementing the Change
3. Phase Three – Evaluating and Sustaining the Change
Figure 1: Three Phases of Kohl’s in U Change Plan
PHASE ONE
Preparing for
the Change
3
PHASE TWO
Implementing
the Change
PHASE THREE
Evaluating &
Sustaining
the Change
EAC 556: Kohl’s Corporation Organizational Change Plan
Although the process of planning organizational change appears to be linear - Phase 1 to Phase 2
to Phase 3, in reality, the implementation of these phases, is anything but linear and requires
continual evaluation and refinement of processes and strategies designed to engage stakeholders,
address resistance, overcome barriers. Assessing results and making adjustments will be
continual processes throughout this change initiative.
We recommend using Kanter et al’s Ten Commandments for Executing Change (1992) model as
the conceptual framework to ‘cascade the change throughout the organization’ (Whelan-Berry
and Sommerville, 2010).
Figure 2: Kohl’s in U Pilot in Three Phases Using Kanter et al’s Ten Commandments for Executing
Change (1992) model
Pre-Launch /
Phase One
Phase
Two
Phase
Three
PREPARING
FOR THE
CHANGE
IMPLEMENTING THE CHANGE
EVALUATING
& SUSTAINING
THE CHANGE
2014
January
April
2015
July
October
January
April
2016
July
October
January
April
I.
Kanter et al.’s Ten
Commandments for
Executing Change (1992)
Analyze organization
and need for change
II. Create a vision and a common direction
III. Separate from the past
IV. Create a sense of urgency
V. Support a strong leader role
VI. Line up political sponsorship
VII. Craft an implementation plan
VIII. Develop enabling structures
IX. Communicate, involve people and be honest
X.
July
October
I. Analyze organization
and need for change
Reinforce and institutionalize change
Summary of Phase One:
During Phase One, the Banana Consulting Group (BCG) worked very closely with the Kohl’s
Leadership Team to prepare for the Kohl’s in U pilot. We outlined our conceptual model and
analyzed the internal and external environment at Kohl’s and its need for charge by examining the
present and desired future state, and change drivers. Key change concepts were discussed and the
ADKAR model was selected. The Kohl’s leadership team established the Change Advisory
Board (CAB), comprised of constituents from each stakeholder group, and charged them with
offering advice and assisting with the change process including: onboarding, data analysis and
the development of implementation strategies. A preliminary climate survey was conducted to
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EAC 556: Kohl’s Corporation Organizational Change Plan
assess stakeholder readiness and resistance, and a variety of data collection strategies were
introduced (i.e. focus groups, surveys, direct observation, etc.) as a means to involve and engage
Kohl’s stakeholders in the pilot. Important actions to communicate the compelling Kohl’s in U
vision and begin to map out a common direction were well underway in Phase One.
Summary of Phase Two
In Phase 2, the focus of our proposal was implementation. A variety of key activities were
designed to separate from the past, create a sense of urgency, support leadership, line-up political
sponsorship and develop enabling structures:
 A multifaceted communication plan with strategies to address the needs of internal and
external audiences was developed and launched to provide information about Kohl’s
in U and the compelling vision for the future.
 A robust training and development plan was initiated to not only orient and prepare the
workforce for the change, but to develop management and leadership skills and foster
an atmosphere not only ready for change but prepared to address resistance.
 A resistance plan provided insight into potential barriers and oppositions and strategies
to address and expand stakeholder readiness and anchor new organizational values
were established.
 An array of human resources practices called the Rewards, Recognitions and Options
Program were initiated to support the Kohl’s in U pilot.
 Finally, in order test the efficacy of this pilot and ultimately reinforce and
institutionalize the change, a multidimensional evaluation plan assessed, analyzed and
interpreted data and continuous refinements were suggested in order to expand
positive results and address quality improvements.
Summary of Phase Three:
In Phase Three of Kohl’s in U, we continued to evaluate the success of the change initiative,
discussed sustainability and recommended next steps. Phase 3 examined the results and
successes of the implementation strategies on all levels throughout the organization. Evaluation
was used as a form of inquiry to assist Kohl’s leadership with decision making in order to
determine whether to launch Kohl’s in U throughout the entire workforce, nationwide. The focus
of this phase was not only to reanalyze the organization and need for change, but to explore
recommendations and next steps to reinforce and institutionalize the change.
Kohl’s Recommendations / Adjustments in Proposed Activities:
As external consultants, we understand that the client is most aptly poised to understand the
climate, culture and customs within the organization. Therefore, during each phase of this change
process, BCG meets with the Kohl’s leadership team to review and discuss recommendations, and
make adjustments to proposed activities based on the valuable client input and feedback
provided. The following adaptations to our original Phase One, Phase Two and Phase Three
proposals were made:
1. In order to use a model that more aptly addresses the organizational level of change,
rather than focusing on the individual level, we elected to select a new change
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EAC 556: Kohl’s Corporation Organizational Change Plan
model. Rather than ADKAR, we chose Kanter's 10 Commandments as a better fit for
the organizational changes required for Kohl’s in U.
2. In consideration of our audience (i.e. Kohl's Leadership Team), we made significant
adjustments in the choice of language and tone of our proposal moving away from an
academic didactic document to one that uses more positive language and builds on a
message of positive change. For example, rather than use the term unionization, we
defined the Kohl’s workforce change as Kohl’s in U and have branded this language
throughout the document.
3. As requested, we also added detailed explanations of implementation strategies
including a clear rationale for our recommendations.
4. Finally, in order to improve the overall understanding and impact of the document, we
added a plethora of figures, models, tables and timelines to better illustrate what we
are asking Kohl’s to do, (specifically what tasks are done, by when and by whom).
SWOT ANALYSIS
Banana Consulting Group conducted an analysis of the Kohl’s in U change plan using a SWOT
Analysis model. The findings and recommendations are as follows:
Strengths:





Socially Responsible industry leader
Trendsetter in the global market
Committed to employees, customers, shareholders, local & global communities
Strong competitive position with national brands and an appealing product mix
In a good position to continue improving profit margin as well as shares
Weaknesses:




Unpreparedness to deviate from the original plan/model
Unable to make “valid” assumptions
Unable to know the relationship between Kohl’s and RWDSU
Unable to have face-to-face contact with Kohl’s or RWDSU
Opportunities:
 Increased availability of data from unionized retail outlets
 Continuation of Kohl’s in U beyond pilot stores
 Increased employee/ customer satisfaction scores as a result of change
 Increased profits as a result of less turnover and greater sales figures
 Opportunity to assess pilot implementation prior to company-wide implementation
Threats:

6
For the management of Kohl’s, a union may mean less power and control. As a result,
employers may tend to keep workers from having a voice. When workers get together and
EAC 556: Kohl’s Corporation Organizational Change Plan



have a support, they can overcome management’s tactics and, in the end, make a better
place to work for all other employees.
The management of Kohl’s may feel threatened by the future situation of their workers
being represented by a union. They would sometimes resort to various tactics in order to
constrain employees in some ways and then have damaging effect for workers trying to
get an independent voice at work.
The management of Kohl’s might not listen to the union in future. The supervisors want
the employees to believe that workers coming together in a union have little power.
Management would not bargain with the workers or comply with the workers’ contract.
Supervisors (or the middle level of the organization) of Kohl’s might be called by the
management to spread anti-union messages around. They may use their personal
relationships with employees to manipulate and harass.
Sustaining the Change
With the Kohl’s In U change plan fully conceptualized and explained, Kohl’s Leadership must
consider whether the change has been successful and what is required to maintain, sustain and
expand the change within the organization. The tenth commandment of Kanter et al’s Ten
Commandments for Executing Change (1992) is “reinforce and institutionalize the change.” This
commandment puts emphasis on the importance of sustainability after change has been
implemented and requires that we:
1)
2)
3)
4)
Deal with unanticipated consequences;
Keep the momentum going;
Choose successors within the organization;
Outline ideas for launching new incentives.
Deal with unanticipated consequences:
 Members of the Change Advisory Board (CAB) will continue to meet regularly and collect
data (ie. employee opinion surveys) to monitor progress, discuss problems and concerns, and
recommend to leadership how to address unanticipated outcomes, setbacks, problems and
concerns arising from the unionization.
Keep momentum going:
Momentum is created when a series of successes expands stakeholder engagement and forward
motion. Leaders must be intentional to recognize and fuel momentum. Strategies include:
1) Establish Greater Challenges
Perhaps the easiest thing to do to maintain momentum is to keep raising the bar. Once a
goal is achieved, it is easy for an organization to become comfortable and run out of
steam. Simon & Schuster publishing icon Michael Korda offered this advice: "One way to
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keep momentum going is to have constantly greater goals." It is the recommendation of
the Banana Consulting Group that the Kohl’s Corporation maintain growth and forward
momentum as the change goes from the pilot stores to all Kohl’s locations.
2) Celebrate Individual and Collective Efforts
"Individual commitment to a group effort—that is what makes a team work, a company
work, a society work, a civilization work," Super Bowl-winning coach Vince Lombardi
once said. Individual efforts within organizations are major factors that help create and
maintain momentum.
3) Re-Energize
Giving employees appropriate breaks and/or change of venue to prevent burn out. This
could be accomplished through corporate outings as stated in the rewards and recognition
section of Phase Two or with something as simple as a day away from the office. This
allows employees to become re-energized and refocused on the tasks at hand. A
structured social event or retreat would offer relaxation while maintaining focus on the
vision of the organization.
4) Remind
Whatever started the momentum may not be easily maintained without something to
recapture the excitement of the initial movement. Therefore, it is the recommendation of
BCG to facilitate events that will remind employees and keeping them encouraged
through corporate outings, retreats, training sessions, rallies and team-building exercises
on a regular basis. This will rekindle the original vision and purpose, helping further a
sense of excitement and keep the momentous pace.
5) Recognize and Reward
Being a part of something big can get anyone excited and build momentum. But once the
newness wears off, catering to the individual can keep things rolling for the team. As
outlined in phase II, we Kohl’s will continue to celebrate victories that have been hardearned to generate the momentum by rewarding employees either with symbolic accolades
or real value awards. Offer ongoing incentives for employees who routinely go above and
beyond and recognize their efforts on an organizational-wide basis. Not only will it
encourage recipients to continue their efforts, but others will be motivated as well.
Choosing Successors
According to Burke, “change leaders would do well to counter equilibrium and sustain the change
effort by infusing ‘new blood’ into their organizations that is not cloning themselves” (Burke,
2011). Choosing successors for an organization undergoing a change is a great way for Kohl’s to
develop a fresh face and bring new ideas to the organization. Banana Consulting Group suggests
that 20% of the staff at Kohl’s will be new to their positions. These employees may be new to the
company or new to the position within the organization. This will allow for new ideas and
prevents “tired thinking” and “solidified norms” (Burke, 2011). The Banana Group suggests the
following actions to be taken in order to sustain the Kohl’s in U change:
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EAC 556: Kohl’s Corporation Organizational Change Plan
1) Provide job description and detailed responsibility information for all employees.
During the Kohl’s in U change, staff members that have been with the company may wish
to be exposed to new positions within the company and some employee changes may be
necessary for keeping a new fresh approach to sustaining the change. The BCG suggests
that employee position job descriptions be made available to all employees who may wish
to change their position within the organization.
2) Hold an open application window for employers to apply for other positions within
the organization.
When the job descriptions are made available, employers may wish to explore new
positions within the company. Positions may also be available to the public (if such
positions exist). BCG suggests holding a hiring window for people to apply to open
positions. These new employers may bring new ideas to the organization. This may also
eliminate employees from being “burnt out” in their current positions which may lead to
poor performance, or lack of enthusiasm.
3) Hold workshops for employers in order to train and develop knowledgeable staff.
After necessary staff changes have been made, the BCG suggests that the organization
provide appropriate workshops for employees. These workshops should include, but not
be limited to, customer service skills, leadership skills, working in a union, business
management, etc. This will allow staff members to develop into well trained employees
that may grow with Kohl’s and unify the organization.
Launching New Incentives
In order to spark new ways of thinking, and continue to keep the Kohl’s in U change a continual
work in progress, BCG has devised a list of new initiatives that may help sustain the change.
When an organization goes through a major change, it alters the natural way that the organization
was operating- it changes its equilibrium. Equilibrium can be detrimental to organizational
change. Burke states that “equilibrium is a precursor to death. When a living system is in a state
of equilibrium, it is less responsive to changes occurring around it. This places it at maximum
risk” (Burke, p 291). Launching new incentives can be a great way to keep the momentum going
and new ideas and ways of thinking flowing. Below you will find ideas for launching new
initiatives.
1) Open a new line of products promoted by a well-known famous person
A great way to promote products and help sustain the Kohl’s in U change would be to
launch a new product line. This would get employees excited about what is being sold in
the store as well as excite new and old customers to what Kohl’s has to offer.
2) Launch a new Kohl’s credit card that saves customers 5% on purchases
A great way to piggy back off of the Kohl’s cash incentive would be for Kohl’s to launch
a new credit card that would save customers 5% on their whole purchase. This would
draw in more customers that are willing to commit to the Kohl’s card, as well as
encourage veteran customers to continue shopping.
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EAC 556: Kohl’s Corporation Organizational Change Plan
3) Customer opinion surveys with rewards
Customer feedback can be extremely helpful in allowing an organization a chance to step
back and monitor progress. It’s a great way to reflect on current practices and make goals
and form new ideas. An easy way to gather feedback from customers would be to hand out
customer satisfaction surveys with reward incentives. Attaching a reward ($5.00 off your
next purchase, save 15% next time you shop, etc.) would be a great incentive for
customers to give their feedback.
RECOMMENTATIONS AND NEXT STEPS
Banana Consulting Group recommends continuation of the Kohl’s in U change program beyond
the pilot stores. The pilot program offered lessons learned and opportunites for improvement
going forward. For continued success, the following suggestions for next steps are recommended:
Training and Development
Kohl’s leadership teams should continue the Training and Development programs created and
implemented for the Kohl’s in U transition. Turnover is inevitable and an investment in
employee development offers a measureable return on investment.
Evaluation
Continue to measure successes and learn from metrics and scores not achieved. Organizational
cultures change over time and it is important to measure what is important to employees in order
to sustain the positive growth experienced in the change process. Utilize the metrics to plan and
forecast staffing and make decisions accordingly. Offer focus groups to learn from pilot stores
and improve the implementation process for future stores.
Leadership Communication
Employee buy-in rests on perceptions and interactions with leadership. Continued
communication is vital to the success and growth of the change. BCG recommends evaluation
and continued use of the communication plan utilized in the Kohl’s in U initiative to provide fluid
communication with all levels of employees as the program is taken to additional stores.
Reward and Recognition Programs
Continued use of reward and recognition tools will create greater buy-in from employees.
Utilizing and increasing the opportunities for recognition as stated by BCG in Phase Two will
offer leadership options in the creation of departmental programs as the Kohl’s in U program
continues.
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EAC 556: Kohl’s Corporation Organizational Change Plan
Appendix A Phase One
Table of Contents
PHASE ONE
Executive Summary ……………………………………………………………………………...13
The 3 Phases of Implementation …………………………………………………………………14
Selected Change Model…………………………………………………………...……..……......15
Organizational Overview: The Need for Change………………………………………….….......17
History and Background………………………………………………..……………..…..17
Drivers of Change………………………………………………………………….……...17
Assumptions…………………………………………………………….……..…….……19
Change Vision………………………………….…………………………….……….......20
Preliminary Vision Statement……………….………………………………..…………...20
Key Change Concepts………………………………………………………………….…...…….21
Resistance………………………………………………………………………..….…….21
Readiness…………………………………………………………………………...……..22
Engagement & Stakeholders……………………………………………………..….……22
Creating a Climate for Change………………………………………………….……..…24
Data Collection……………………………………………………………..……..…...…25
Summary of Phase 1 …………………………………………………………………...……...…26
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Appendix A: Phase One
Executive Summary
The Retail, Wholesale and Department Store Union (RWDSU) and Kohl’s Corporation recently
reached a labor management agreement to pilot unionization of 10 existing retail stores in the
Raleigh area between January, 2014 and December, 2016. Banana Consulting Group (BCG), an
external consulting firm specializing in organizational change and strategic planning, has been
hired by the Kohl’s Corporation to assist with the design and implementation of the change
initiative. This executive summary outlines the recommendations made by BCG to assist the
Kohl’s Corporation leadership team with piloting Kohl’s in U a comprehensively planned
workforce change initiative. If this pilot proves successful, RWDSU and Kohl’s Corporation will
proceed with unionization plans for the entire Kohl’s workforce.
Change agents must not only have a compelling reason for the change, but also develop strategies
to build commitment within stakeholder groups, navigate challenges that may emerge, assess
outcomes throughout the transition, make needed adjustments along the way, and ultimately
institutionalize the processes and procedures that will sustain the change (Mayhew, 2006).
Kohl’s Corporation has a unique opportunity to step out in front of the competition and position
itself as a socially responsible industry leader and trendsetter in the global market. In an industry
saturated by retail giants who are known to bully workers, pay less than livable ages, break labor
laws, and illegally threaten and punish employees, Kohl’s’ in U reflects a promise to create
positive change by demonstrating a commitment to employees, customers, shareholders, and the
local and global community.
Banana Consulting Group (BCG) recommended that the Kohl’s in U pilot be launched in three
phases and utilize Kanter et al’s Ten Commandments for Executing Change (1992) model, as the
conceptual framework to ‘cascade the change throughout the organization’ (Whelan-Berry and
Sommerville, 2010).
Figure 1: Kohl’s in U Pilot in Three Phases Using Kanter et al’s Ten Commandments for
Executing Change (1992) model
Pre-Launch /
Phase One
Phase
Two
Phase
Three
PREPARING
FOR THE
CHANGE
IMPLEMENTING THE CHANGE
EVALUATING
& SUSTAINING
THE CHANGE
2014
January
Kanter
et al.’s
Ten
Comm
andme
nts for
Executi
13
April
II.
July
2015
Octobe
r
January
April
July
Analyze organization
and need for change
2016
October
January
April
July
October
XI.
Analyze
organization and need
for change
XII. Create a vision and a common direction
EAC 556: Kohl’s Corporation Organizational Change Plan
XIX.
XIII. Separate from the past
XIV. Create a sense of urgency
XV. Support a strong leader role
XVI. Line up political sponsorship
XVII. Craft an implementation plan
XVIII. Develop enabling structures
Communicate, involve people and be honest
XX. Reinforce and
institutionalize change
The Three Phases of Implementation
The change process is iterative and requires a variety of implementation strategies that are
designed to anchor a clear and compelling organizational vision that can be accepted by
stakeholders as positive for themselves and the organization. Although the process of planning
organizational change appears to be linear - Phase 1 to Phase 2 to Phase 3, in reality, the
implementation of these phases, is anything but linear (see Figure 2). The process of engaging
stakeholders, addressing resistance, overcoming barriers, assessing results and making
adjustments will “loop back” throughout the initiative as effort to rally those who may oppose
Kohl’s in U gradually yield acceptance and buy-in to the vision whereby deepening their
commitment to the end-goal. (Burke, 2011).
Figure 2 Depiction of the Nonlinear Nature of Organization Change
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In Phase 1, BCG presented Kohl's with the background, events and data that led to the decision to
unionize 10 Raleigh area stores. During this phase, BCG assessed the current state of the
organization, identified the drivers fueling the need for change, discussed the nature of change
and the dynamics of readiness and resistance, and outlined preliminary recommendations to
overcome anticipated obstacles. BCG introduced the recommended change approach as well as
the conceptual model that will be used throughout the process. BCG recommended how to begin
to create a climate for change during Phase 1 and what ongoing feedback and evaluation
mechanisms are crucial throughout all 3 phases.
In Phase 2, we focused on implementation and outlined a variety of actions designed to
communicate the vision and foster an atmosphere for change. Change leadership roles were
defined and specific leadership development activities were outlined to address resistance,
enhance readiness, and test the efficacy of the Kohls in U change initiative. BCG created a
timeline for the implementation of the organization change and identified critical data that will be
collected and assessed throughout this change process.
In Phase 3, we will evaluate the success of the change process, discuss sustainability and
recommend next steps.
Selected Change Model
For the purposes of this project, we selected a model that lends guidance for implementation at
the organizational, group and individual levels. BCG utilizes Kanter et al’s Ten Commandments
For Executing Change (1992) Kanter et al’s Ten Commandments For Executing Change (1992)
to prepare for, manage and reinforce the change. This model is clear, concise and will help
establish a shared understanding of what is required by Kohl’s to facilitate change. A useful
organization model is one that simplifies, represents reality, has a conceptual framework that
makes sense to people who work in organizations, and helps to organize their realities in ways
that promotes common understand and shared action for change (Burke, 2011).
Kanter et al’s model offers practical guidance while many of the other models such as
McKinsey’s 7-S model and Lewin’s change model offer sequential advice. Kanter et al argue that
change happens in all directions at once and is a more or less continuous process. Therefore, the
commandments should not be misconstrued as steps. They are commandments and will be
applied throughout the change process as the phases dictate.
Kanter et al’s Ten Commandments For Executing Change (1992) Kanter et al’s Ten
Commandments For Executing Change (1992)
I.
Analyze the organization and its need for change. Managers should understand an
organization's operations, how it functions in its environment, what its strengths and
weaknesses are, and how it will be affected by proposed changes in order to craft an
effective implementation plan. (Phase 1)
III.
Create vision and common direction. One of the first steps in engineering change is to
unite an organization behind a central vision. This vision should reflect the philosophy and
values of the organization, and should help it to articulate what it hopes to become. A
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EAC 556: Kohl’s Corporation Organizational Change Plan
successful vision serves to guide behavior, and to aid an organization in achieving its
goals. (Phase 1)
IV.
Separate from the past. Disengaging from the past is critical to awakening to a new
reality. It is difficult for an organization to embrace a new vision of the future until it has
isolated the structures and routines that no longer work, and vowed to move beyond them.
(Phase 1, 2 and 3)
V.
Create a sense of urgency. Convincing an organization that change is necessary isn't that
difficult when a company is teetering on the brink of bankruptcy, or foundering in the
marketplace. But when the need for action is not generally understood, a change leader
should generate a sense of urgency without appearing to be fabricating an emergency, or
"crying wolf." This sense of urgency is essential to rallying an organization behind
change. (Phase 1)
VI.
Support a strong leader role. An organization should not undertake something as
challenging as large scale change without a leader to guide, drive, and inspire it. This
change advocate plays a critical role in creating a company vision, motivating company
employees to embrace that vision, and crafting an organizational structure that
consistently rewards those who strive toward the realization of the vision. (Phase 1, 2 and
3)
VII.
Line up political sponsorship. Leadership, alone, cannot bring about large scale change.
In order to succeed, a change effort must have broad based support throughout an
organization. This support should include not only the managers, or change implementers,
but also the recipients of change, whose acceptance of any program is necessary for its
success. (Phase 1 and 2)
VIII.
Craft an implementation plan. While a vision may guide and inspire during the change
process, an organization also needs more nuts and bolts advice on what to do, and when
and how to do it. This change plan maps out the effort, specifying everything from where
the first meetings should be held, to the date by which the company hopes to achieve its
change goals. (Phase 1 and 2)
IX.
Develop enabling structures. Altering the status quo and creating new mechanisms for
implementing change can be a critical precursor to any organizational transformation.
These mechanisms may be part of the existing corporate structure, or may be established
as a freestanding organization. Enabling structures designed to facilitate and spotlight
change range from the practical – such as setting up pilot tests, off site workshops, training
programs, and new reward systems – to the symbolic – such as rearranging the
organization's physical space. (Phases 1 and 2)
X.
Communicate, involve people, and be honest. When possible, change leaders should
communicate openly, and seek out the involvement and trust of people throughout their
organizations. Full involvement, communication, and disclosure are not called for in every
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change situation, but these approaches can be potent tools for overcoming resistance, and
giving employees a personal stake in the outcome of a transformation. (Phases 1 , 2 and
3)
XI.
Reinforce and institutionalize the change. Throughout the pursuit of change, managers
and leaders should make it a top priority to prove their commitment to the transformation
process, reward risk taking, and incorporate new behaviors into the day to day operations
of the organization. By reinforcing the new culture, they affirm its importance and hasten
its acceptance. (Phases 1, 2 and 3)
Organizational Overview: The Need for Change
In accordance with the first commandment, our discussion focuses on the organization and the
need for change. We begin by reviewing our understanding of Kohl's current situation including
organizational history and background, internal and external change drivers, and several
assumptions that we have made. We request that the leadership team review our assumptions for
accuracy and provide feedback prior to Phase 2.
History and Background
Following years of continual growth, a group of investors formed Kohl's Corporation in 1986 to
purchase 40 department stores with annual sales of $300 million and over 5,000 employees. Since
this transition, the corporation has grown to 1,160 stores and over 140,000 employees. Kohl's
Corporation is a publicly traded entity with annual sales totaling $4,199 million in 2013. This
total is down from the $4,423 million in sales reported in 2012.
Kohl's has been implementing several strategic goals that will allow the company to have a strong
position in the retail industry. Kohl's has been revamping the merchandising assortment and
focusing on more national brands to provide a more appealing product mix for their customers.
The national brands are vital to increasing brick and mortar store traffic. Merchandising
relationships allow Kohl's to carry top brands not typically available to discounters and sell them
for less than department stores by controlling costs. Kohl's has also introduced critical costcutting measures that will likely lead to modest revenue growth and an improved operating
margin. With all of these strategies in place as well as the planned improvements for inventory
management, Kohl's could be in a good position to continue improving their profit margin as well
as their shares.
Drivers of Change
External Drivers of Change can be explained as anything outside of your organization's control
that influences the need for a change initiative within your organization, such as the economy and
competitors. The retail industry remains very competitive as it continues to recover from the
Great Recession of 2008. According to a recent Reuter’s article, wary consumers are restraining
their spending and choosing to purchase long-term items such as automobiles, furniture,
electronics and appliances, which is drawing consumer spending away from the retail industry.
Kohl's has been facing tough competition from Macy's, JC Penney, Target and Walmart in
17
EAC 556: Kohl’s Corporation Organizational Change Plan
particular. Each of these apparel competitors continues to jockey for the top spot in an
environment where consumers are looking for a wide selection of quality clothing at an affordable
price. In addition, as consumers continue to become more technologically savvy, these retailers
face stiff competition in online sales as well. Some of Kohl's' competitors have been enacting
cost-cutting tactics such as reducing their workforce and closing stores.
Internal Change Drivers can be explained as anything within your organization's control that
influences the need for a change initiative within your organization, such as employee morale.
The most significant internal change driver fueling the push to unionize Kohl’s Corporation stems
from retail employee discontent. Kohl's HR department has been increasingly receiving
complaints from retail employees regarding conflicts they are having with their managers. In
addition, HR provided reports to the executive team showing an increase in the turnover rate from
2010-2013, including retail employees and middle management. HR then conducted a companywide employee satisfaction survey. The survey was conducted through Survey Monkey which
allowed for anonymity. The data was then tabulated by a neutral 3rd party who came to the
following conclusions which indicate the need for Kohl’s to address the dissatisfaction of retail
employees:






Employees feel powerless when negotiating with management
Employees do not feel they are treated with respect
Employees do not feel they have the hours, wages and benefits they deserve
Employees want more job security as they are aware of the economy and retail
competitor's moves to reduce their workforce and close stores
Employees have low morale
Employees do not feel that management is consistent when handling disputes with
employees
Retail employees have voted in favor of partnering with Retail, Wholesale and Department Store
Union (RWDSU) to unionize as they feel this representation will allow them an opportunity to
resolve the above mentioned concerns. RWDSU is interested in working closely with Kohl's
leadership and retail employees throughout this change process to ensure a smooth transition. The
goal is for a win-win situation in which employees’ morale is increased whereby improving labor
relations which will increase employee satisfaction. This, in turn, will allow for an empowered,
engaged and happy workforce with increased productivity and decreased employee turnover.
Kohl's has been making strategic changes in the organization to better position itself in the
competitive retail environment and improve profit margins, as well as shares, during a time of
continued economic recovery. During this time of economic instability, it is crucial that Kohl's
continue this momentum and avoid contention with employees. It is in Kohl's best interest to
resolve labor relations in order to focus on the “big picture” change drivers that directly affect the
bottom-line.
As previously mentioned, in the short-term, implementing the pilot and unionizing 10 stores, will
place a burden on resources. However, in the long term, the returns associated with the successful
resolution of labor issues will pay off. Kohl's will reap the benefit of a content workforce,
18
EAC 556: Kohl’s Corporation Organizational Change Plan
increased productivity and ultimately, larger bottom-line profitability. Kohl's will be a trendsetting, socially-responsible company, the first major retailers in the nation to create a unique
workforce, but in particular in the south, to collaborate with employees in an effort to unionize
and resolve labor disputes.
Assumptions
Kohl’s Corporation has hired Banana Consulting Group as their external consultant
Banana Consulting Group (BCG), an independent and professional third-party consultancy, has
been hired to serve as an external resource to support and help pilot the unionization of 10
Raleigh area stores. BCG will provide objective and professional guidance throughout the
unionization process, including conducting organizational-wide surveys (organizational change
climate survey, etc.) to collect the data and identify the current situation in Kohl’s as well as
making strategic plans (resistance plan, training plan, evaluation plan, etc.) to guide the changing
process. Kanter et al’s Ten Commandments for Executing Change (1992) will be employed as the
change model.
Employee reports do not match what Kohl’s Corporation leadership has publicly reported
There are disparate perspectives relative to the current milieu and climate within the environment
of Kohl’s Corporation. The considerable gap between employee and management experiences are
a key driver in the employees push to unionize. For instance, Kohl’s publicly reported their great
success in employee engagement via applying “Employee Volunteer Programs” since 2001, from
which both the organization and employees had benefitted and impressive participation had been
seen. However, from the investigation on “indeed.com”, the employer review of Kohl’s
Corporation was below 80% based on the evaluation on five company attributes including Job
Work/Life Balance, Compensation/Benefits, Job Security/Advancement, Management, and Job
Culture. Overall, this result of the review was not too bad, but through the answers of the survey,
it had been told that there were complain and unsatisfaction among employees. Otherwise, a
company-wide employee satisfaction survey which conducted by HR also showed concerns about
their current job situation. All these results mean that there is still room for Kohl’s to improve the
employees’ satisfaction in order to ultimately gain the holistic organizational development.
Kohl’s employees are driving to change
Internal change drivers have been identified and are the source of employee readiness to unionize.
Employees are motivated by the desire to achieve equitable treatment in a respectful, safe,
equitable and inclusive environment in order to resolve their concerns for current satisfaction. Via
the unionization and the collaboration between the two organizations, Kohl’s employees will be
supported and represented by RWDSU in unionization process. Thereupon, the employees could
gain an external power and assistant in negotiating with Kohl’s management for their equity,
benefits, security, and etc. RWDSU’s abundant experience of serving and guiding employees to
improve their work satisfaction is a proficient and efficient resource that Kohl’s employees are
looking forward to changing. Otherwise, the collaboration between the two organizations is
different from the typical way of serving employees relying on the organization’s own
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EAC 556: Kohl’s Corporation Organizational Change Plan
union/management section, in which only internal power could be used. However, external power
and experience are the resource which could be employed through the way of collaborating.
The employees contacted the Retail, Wholesale and Department Store Union (RWDSU) to
negotiate on their behalf
With a reputation for successfully advocating for labor rights and the needs of workers, RWDSU
has been instrumental in supporting the employees, assisting them to organize and negotiate with
Kohl’s Corporation to reach the labor management agreement to phase-in unionization. The
collaboration/unionization between the two organizations can provide employees as well as
Kohl’s external power and resource to make the organizational change success. Besides, the
employees need an outside voice as the support to stand with them in line.
Kohl’s Corporation is motivated to maintain positive public relations and avoid negative
publicity.
In an effort to avoid the negative publicity that employee discontent could bring and ultimately
adversely impact sales, Kohl’s Corporation is using this revolutionary change initiative as an
opportunity to step out in front of the competition and position itself as a socially responsible
industry leader and trendsetter in the global market. From the organization’s perspective, this
could be seen as the overall outcome of the changing plan, via which Kohl’s could better improve
their organizational performance from both internal and external ways.
The unionization involving 10 existing retail stores in Raleigh, NC will take place January
2014 – December 2016.
The Retail, Wholesale and Department Store Union and Kohl’s Corporation recently reached a
labor management agreement to phase-in unionization of 10 existing retail stores in the Raleigh
area, NC between January 2014 and December 2016. If this pilot unionization/collaboration in
Raleigh, NC is successful, RWDSU and Kohl’s Corporation will proceed with unionization plans
for the entire Kohl’s nationwide workforce. Shareholders have endorsed the pilot and understand
the short and long term financial implications of this initiative.
Not every existing employee may choose to participate in the unionization of Kohl’s
Corporation
Kohl’s commitment to its employees will require that options be identified for employees who
choose not to participate in the pilot.
Change Vision
Kohl’s Corporation will step out in front of the competition and position itself as a socially
responsible industry leader and trendsetter in the global market. Kohl’s’ initiative to unionize
reflects a commitment to create positive change by demonstrating a promise to employees,
customers, shareholders, and local and global community.
Preliminary Vision Statement
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EAC 556: Kohl’s Corporation Organizational Change Plan
We believe that employee engagement is an essential ingredient of our success. By
demonstrating our commitment to our employees, we will better leverage their talents, abilities
and creativity as we collectively continue our mission to be the nation’s leading family-focused,
value oriented, specialty department store. We are committed to empowering our employees to
have a greater “voice” and collaborative participation in the goals of our organization.
Key Change Concepts
There are several key concepts that must be understood as Kohl’s progresses through this change
initiative. Change efforts are influenced by many factors. Not only are there individual differences
that exist among the people and stakeholder groups that are affected by or driving the change, but
there are contextual, content and processes considerations as well. There are many contextual
factors or pre-existing forces within the internal and external environment that could inhibit
and/or enable the necessary actions from being undertaken. Content issues relate to the nature of
the change that is being implemented. In our case, the Kohl’s in U pilot is initiating fundamental
changes that will alter the very character of this organization and how we work together in the
future. Finally, in order to be successful in making these changes, we must consider our processes
including how to best introduce and implement the actions necessary to realize our change vision.
How then, as a leadership team, do we create readiness; foster a sense of urgency; and address
resistance?
Identifying the nature in which these content, contextual and process factors interact will not only
add to the understanding of stakeholder responses to the change, but ultimately, aid the leadership
team and advisory board in acquiring an essential ingredient instrumental in the success of this
change effort; ensuring stakeholder commitment to change (Walker, Armenakis and Bernerth,
2007).
Resistance
Resistance is a natural and unavoidable part of any change process because it often involves going
from the known to the unknown (Bovey and Hede, 2001). Burke (2011) suggests that change
agents must diagnose the nature or kind of the resistance being manifested in order to effectively
respond to it. According to Burke, resistance can be blind, political or ideological:
Blind resistance can appear automatic, knee-jerk, defensive and stem from fear and
intolerance of change. Often people in this category simply need time to get used to the
new idea or more information about how the change will impact them.
Political resistance occurs when stakeholders stand to lose something of value (ie. power,
status, job, income, etc.) if the change is implemented. Strategies to address political
resistance can include negotiation, trading, bartering and persuasion. Change agents must
be prepared to sell the long-term vision but also be honest about the short term loss.
Ideological resistance can be the most difficult to shift as it stems from genuine
disagreement, incongruent beliefs and values. Under these circumstances, persuasion in
the form of data, facts and substantive information is key.
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EAC 556: Kohl’s Corporation Organizational Change Plan
Resistance can also stem from confusion, an emotional reaction caused by the perception that
one’s survival is at stake, and issues of trust and confidence in the people leading the change
(Maurer, 2007). What is important to note is that the motivation fuelling the resistance, will direct
what strategies can best be employed (such as providing more information, dialogue, surveys,
focus groups or face-to-face meetings to uncover the reasons, assumptions and fears associated
with the reaction) to stimulate readiness.
Readiness
Armenakis et al (1993, p. 683) explain that “creating readiness involves proactive attempts by a
change agent to influence beliefs, attitudes, intentions and ultimately the behaviors of a change
target”. Therefore, after we assess the climate for change, a variety of strategies will be employed
to build individual and collective readiness, confidence and engagement. These influence
strategies will be led by the change agents and center around stakeholder engagement, persuasive
communications (both oral and written), active participation (training), and rewards and
recognition (pg. 687). These strategies will be discussed in detail in Phase Two of this plan.
In order to understand and be prepared to address the varied perceptions, emotional states and
ways of thinking that may emerge for individuals and stakeholder groups, it is recommended that
a climate survey be conducted to collect information about perceptions and reaction to change.
The survey will be a self-administered questionnaire that collects data to measure emotional scale
(readiness) and behavioral intentions (resistance) while providing anonymity and allowing
participants to complete it at their own convenience (Bovey and Hede, 2001). The results of this
tool will support the development of effective engagement strategies that will address resistance,
create and fuel readiness, maintain momentum and foster a sense of urgency throughout the
change process.
Engagement and Stakeholders
In order to deepen commitment and gain diverse perspective, BCG strongly encourages Kohl’s
leadership to involve and include members from all stakeholder groups in the change process.
Table 1 outlines key stakeholder groups, their expected levels of engagement, and the anticipated
degrees of readiness/resistance. Despite the varying roles relative to the change, it is essential that
Kohl’s leadership identify implementation strategies that engage all stakeholder groups in the
change process in order to lower resistance, increase readiness and deepen organizational
commitment.
Table 1. Stakeholder Groups, Engagement, Resistance, and Readiness
22
Stakeholder Group
Level of Engagement
Employees /Associates
Union
Leadership
Management
Supplier /Vendors
Investor
Driver
Driver
Driver
Advocate/Active Participant
Advocate/Active Participant
Advocate/Active Participant
Anticipated
degree of
resistance
Low
Low
Medium
High
Medium
Low
EAC 556: Kohl’s Corporation Organizational Change Plan
Anticipated
degree of
readiness
High
High
Medium
Low
Medium
High
Customers /Consumers
Advocate/Active Participant
Medium
Medium
adapted from http://www.nrm.wa.gov.au/media/10528/change_management_plan_workbook_and_template.pdf
Drivers – Stakeholders that are directly impacted by the change and have some
responsibility for the change process. Their role requires them to lead the implementation
of the change at either the site or strategic level.
Active Participation/Advocate – Stakeholders that are directly impacted by the change and
have some responsibility for the change process. Their role involves facilitation of the
change process through support, encouragement and ability to influence others. They will
be required to change some aspect of what they do in their role and/or how they do it.
Establishing the Change Advisory Board
One important engagement strategy is to establish a Change Advisory Board (CAB) comprised of
diverse stakeholders who are committed to providing support, giving advice and making
recommendations to leadership throughout the change process. Not only will involving people in
the change process deepen trust, build rapport, and expand alliances, but it will fortify a sense of
ownership and commitment within the organization. People feel responsible for that which they
create. It is vital to build good relations with the stakeholders who are identified as being most
crucial for the end result (Karlsen, Graee and Massaoud, 2007).
Change Advisory Board (CAB) will be appointed by and report to the Kohl’s leadership team.
This 14 member cross functional group of stakeholders includes: one senior leader, two store
manager, two human resource managers, one department manager, two members of staff
development and training, two stockholders, three employees/associates, two customers, and one
representative of RWDSU. These individuals will provide diverse and unique perspectives on the
needs of their constituents throughout the pilot and offer advice and recommendations to
leadership as to how to best anchor the vision, implement the change, address resistance, etc. This
broad range of expertise will be crucial for ensuring a global approach to the change by
addressing multifaceted needs. CAB will attend periodic trainings and bi-monthly meetings in
order to create a cohesive alliance and provide regular input to leadership. A preliminary meeting
schedule will include:
Kick-off and Context
This meeting will be used to create context and build rapport. Some basic team building
and ice breaker activities will encourage members to become better acquainted. Members
will be given their charge (ie. purpose, goals and objectives) and the need for change and
change vision will be discussed.
Onboarding:
The purpose of this meeting is to provide members with an opportunity to share their
unique and diverse perspectives, communicate what is/is not working, and discuss what
can be changed or enhanced to be more effective. Ultimately the goal is to surface
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EAC 556: Kohl’s Corporation Organizational Change Plan
individual and collective resistance and begin to problem solve by addressing the needs of
each constituency.
Data Analysis
CAB members will analyze data and review the results from the climate survey in order to
identify areas of resistance and readiness and develop strategies to fortify a common
vision and build a sense of cohesiveness amongst all members.
Change Model and Implementation Strategies:
During this meeting, members become familiar with the Kantar et al’s Ten
Commandments for Executing Change (1992) model and help identify implementation
strategies and recommendations about how to facilitate the change initiative.
Creating a Climate for Change
Kohl’s leadership team is encouraged to involve its people throughout every step of the change
process in order to create a sense of urgency and anchor the need for change. As the leadership
team engages in what Burke (2011) refers to as a “strict problem-solving process” (p. 52) through
the investigation of facts, data analysis, information gathering on the presenting problems, and
strategic planning, Kanter’s conceptual framework will serve as the filter through which to create
a climate for change:
1. Analyze the organization and its need for change.
Kohl's leadership will understand the current state of the organization and BCG will share
what was discovered with the executive team pointing out data, strengths and weaknesses,
"what if situations" if the change is not supported by leadership and the sense of urgency.
2. Create vision and common direction.
Banana Consulting Group (BCG) will share the current vision established by Kohl’s
leadership with representatives from RWDSA and CAB to establish a future vision with a
common direction for implementing the changes. This vision will guide how the
organization works to achieve the goals.
3. Separate from the past.
Together the leadership team, RWDSA representatives, and CAB will analyze and plan
new organizational policies and routines to implement the change to unionization. This
philosophical change should be initiated by leadership and shared with employees in a
positive manner. The change in policies should be covered in the training programs.
4. Create a sense of urgency.
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EAC 556: Kohl’s Corporation Organizational Change Plan
Creating a climate for change alerts the employees that a change is necessary and begins
the change process. To ensure the successful implementation of a unionized workforce a
sense of urgency and an awareness of the need for change must be established. The sense
of urgency will be conveyed in all communications with employees and is essential to
establish buy-in from staff. A misguided sense of urgency has a frantic aspect to it with
people driven by anxiety and fear (Kotter, 2012).
5. Support a strong leader role.
Kohl’s leadership team will establish open communications throughout the organization in
order to rally support, and seek consensus on what the organization wants/expects/desires.
CAB will meet bimonthly with Kohl's leadership to assess progress, plan and implement
the plan to realize the change vision. "People tend to resist that which is forced upon them
and tend to support that which they help to create"
(http://www.kotterinternational.com/our-principles/urgency).
6. Line up political sponsorship.
The unionization process involves politics and leadership will need support of all
stakeholders to bring about large scale change. Alignment and meeting with middle
management and supervisors will take place to continue a sense of urgency and
awareness.
7. Craft an implementation plan.
Kohl’s has a desire to focus on employees and provide quality products at affordable
prices. The Banana Group will work with Kohl’s leadership, RWDSA and CAB to create
an implementation plan and evaluation schedule. Regular meetings will be conducted to
discuss progress and update communications tools used to disseminate information to
stakeholders.
8. Develop enabling structures.
Kohl’s leadership will work to be transparent which includes sharing data throughout the
organization that supports the claim that change is necessary and ensuring organizational
decisions and management actions are in agreement with change communications (walk
the talk).
9. Communicate, involve people, and be honest.
Kohl’s leadership, with the support of CAB will engage different individuals or groups as
appropriate. Senior leadership will require managers and employees to talk regularly to
unhappy suppliers, customers, and other stakeholders to understand their concerns
directly. Optimum means for communication will be identified. Specific steps will be
taken to keep everyone well informed.
Data Collection:
25
EAC 556: Kohl’s Corporation Organizational Change Plan
Focus Groups
1. Focus group led by members of HR, Senior Leadership and members of RWDSA in each
pilot store to convey the vision, answer questions, measure commitment and build
awareness of benefits of change
2. Focus group led by pilot store management to further convey the vision and identify key
areas of resistance with store employees
Surveys
1. Employee satisfaction survey developed and administered to measure baseline levels of
engagement and resistance to partnership with RWDSA
2. Survey administered with credit card holders to measure perceptions and opinions of key
customers
3. Climate survey to address current organizational readiness for change
Direct Observations
1. HR team and pilot store management to observe current work flow in each pilot store
2. Senior leadership to observe nonverbal communication of employees participating in the
focus group
Data Analysis
1. Senior leadership, members from RWDSA and PR department and Change Advisory
Board members will analyze data collected to determine communication needs and plan
for pilot stores
2. Current customer satisfaction data will be analyzed to determine baseline and goal scores
for implementation process
3. Stakeholder analysis identifying all stakeholders of partnership with RWDSA
Summary of Phase One:
During Phase One, the Banana Consulting Group (BCG) worked very closely with the Kohl’s
Leadership Team to prepare for the Kohl’s in U pilot. We outlined our conceptual model and
analyzed the internal and external environment at Kohl’s and its need for charge by examining the
present and desired future state, and change drivers. Key change concepts were discussed and the
ADKAR model was selected. The Kohl’s leadership team established the Change Advisory
Board (CAB), comprised of constituents from each stakeholder group, and charged them with
offering advice and assisting with the change process including: onboarding, data analysis and
the development of implementation strategies. A preliminary climate survey was conducted to
assess stakeholder readiness and resistance, and a variety of data collection strategies were
introduced (i.e. focus groups, surveys, direct observation, etc.) as a means to involve and engage
Kohl’s stakeholders in the pilot. Important actions to communicate the compelling Kohl’s in U
vision and begin to map out a common direction were well underway in Phase One.
26
EAC 556: Kohl’s Corporation Organizational Change Plan
Appendix B Phase Two
PHASE TWO
Introduction to Phase 2………………………………………………………………………........28
Communication Plan………………………………………………………………………….…..28
Resistance Plan…………………………………………………………………….………....…...32
Training Plan…………………………………………………………………...….………...........35
Evaluation Plan………………………………………………………………………………… ...37
Rewards and Alternative Options…………………………………………………………………39
Summary of Phase 2………………………………………………………………………………42
27
EAC 556: Kohl’s Corporation Organizational Change Plan
PHASE TWO
Introduction to Phase Two:
In Phase 2, the focus of our proposal is implementation. A variety of key activities were designed
to separate from the past, create a sense of urgency, support leadership, line-up political
sponsorship and develop enabling structures:





A multifaceted communication plan with strategies to address the needs of internal and
external audiences were developed and launched to provide information about Kohl’s in U
and the compelling vision for the future.
A robust training and development plan was initiated to not only orient and prepare the
workforce for the change, but to develop management and leadership skills and foster an
atmosphere not only ready for change but prepared to address resistance.
A resistance plan provided insight into potential barriers and oppositions and strategies to
address and expand stakeholder readiness and anchor new organizational values were
established.
An array of human resources practices called the Rewards, Recognitions and Options
Program were initiated to support the Kohl’s in U pilot.
In order test the efficacy of this pilot and ultimately reinforce and institutionalize the
change, a multidimensional evaluation plan was developed to assess, analyze and interpret
data.
Communicate Plan:
Communicate, Involve People and Be Honest
Change is not a single, linear process that can be planned and introduced with an expectation that
all stakeholders will instantly be on board and accepting of the change. Employees may perceive
the constantly shifting environment in varying ways and this requires a planned communication
program that involves people and honesty. It is important for Kohl’s and RDWSA to be aware of
what other changes are also occurring within Kohl’s and acknowledge the risks of continuous
change.
Honest communication is a key ingredient in managing change and in decreasing resistance to the
changes. In this case, Kohl’s is demonstrating a commitment to creating positive change by
phasing in unionization of all workers and stepping out in front of the competition in order to be a
leader in the global market.
Banana Consulting Group (BCG) is recommending that data be collected from stakeholder groups
to assist with the development of a communication plan that includes specific, consistent
messages to address the awareness, concerns and needs of constituents. The climate survey
collected data on readiness and resistance (Bovey and Hede, 2001) for the implementation of a
unionized workforce. The results of this survey have been used to develop the communication
plan implementing the five key factors stated by Armenaikis et al (1999). Kotter (2012) suggests
considering what the stakeholders need to hear and how and when will each item be addressed.
28
EAC 556: Kohl’s Corporation Organizational Change Plan
Persuasive communication (Lengel and Daft, 1988) tools include presentations by Kohl’s
leadership at the corporate office as well as pilot stores becoming unionized. The internal and
external websites are necessary tools for communicating the change and offer additional
information for employees to read individually. External marketing measures are necessary to
educate and create awareness to the public. Employees are looking for reasons to support the
change and expect honest communication. Kanter et al’s Ten Commandments for Executing
Change (1992) suggests separating from the past, creating a sense of urgency and aligning
political sponsorship as necessary commandments to fully execute a change. BGC suggests data
and benefits of the change to be communicated at employee forums and presentations by Kohl’s
CEO and senior leadership. A planned media campaign will also convey the benefits of the
change and offer a way to reinforce the change. These active participation strategies will ensure
specific steps will be taken to keep everyone impacted by the change well informed.
In order to determine the exact information the stakeholders need to hear, the Banana Consulting
Group completed a stakeholder analysis considering who, what, when, why and how to
communicate the information. Figure 2 displays the suggested communication strategies and
Figure 3 displays the timeline for each stakeholder audience to receive the information leading up
to the change to a unionized workforce. The time line is based on a 10 month communication,
implementation phase. This communication plan with allow senior leadership, members of the
RWDSA and the Change Advisory Board to transfer information to all stakeholders. As
suggested in the communication plan, updates should be included in each staff meeting to gauge
employee resistance and evaluate progress.
Figure 3.
Communication Strategies by Stakeholder Groups
Recommended
Communication
Employees Leadership Management
Tool
Email Q&A
posts
Print campaign
X
X
X
RWDSA
Union
X
X
X
X
Investors
X
Customers Supplier/
/ Public
Vendor
Change
Advisory
Board
Govt &
Regulations
X
X
X
X
X
X
X
X
X
X
X
X
X
Post
information on
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
internal intranet
Post
information on
X
X
Kohl’s website
Management
Presentation to
create urgency
X
& awareness
Discussion in
Team Meetings
Individual
29
X
EAC 556: Kohl’s Corporation Organizational Change Plan
Forums / Focus
Groups
President of
Kohl’s store
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
visits
Video
presentation
describing need
X
for change
Direct mail
campaign
Figure 4. Communication
Communication
Needs
1.Communicating
the benefits of
impending
partnership with
RWDSA and
vision of new,
unionized
workforce
30
Timeline
Description
Staff meeting
Objective of
Communication
Delivery Method Audience
Delivery
Timeframe
1. To notify mid-
with managers level leaders of
1. Managers &
& supervisors change and share
Supervisors of pilot
and employees the timeline for
In person
store locations
10 months prior to
from pilot
implementation
meetings at each
2. RWDSA
official change to
stores
2. Discuss &
store
representative
unionized workforce
conducted by
prepare mid-level
Kohl’s senior managers for
3. Change Advisory
Board members
leaders in pilot reactions &
EAC 556: Kohl’s Corporation Organizational Change Plan
stores
resistance of
experiencing
change
change to
experience by
unionization
employees
Development
of print
2.Creation of
change
notification
support materials
campaign,
direct mail
materials,
content for
intranet &
internet
postings
1. To create
awareness &
sense of urgency
for change
2. Offer support
materials or
Mail, email,
website postings,
video recordings
All stakeholders
including credit card
holders, media &
other customers
management to
Materials to be
proofed and
completed 8 months
prior to change to
unionized workforce
use
1. To
communicate
consistent
message
describing
3.Organized
meetings/ forums
to include
presentation &
Q&A period by
Senior Leadership
and representative
from RWDSA
Senior
leadership to
travel to each
pilot store to
participate in
meetings with
employees and
mid-level
management
benefits of
unionized
workforce
2. Answer
questions posed
by employees to
reduce rumors
and resistance
3. Create support
and buy-in of
In person meeting
Meetings to be
/ forum led by
scheduled within
Senior Leadership
days of others to
conducted at each
pilot store or local
location
All employees and
other stakeholders
reduce rumors &
miscommunications
Meetings to begin 6
accommodating
months prior to
of totals to be in
change to
attendance
unionization
changes by
communicating
vision &
partnership with
RWDSA
To offer ongoing
Web based
line of
communication
communication
supported by
All
between
Kohl’s
employees
management and
employee at the
stakeholders
corporate center
Communication
To notify
Emails to each
describing the changes
employees of
employee &
& additional training
deadlines to
print campaign
programs created to
complete training to be displayed
4.Email / video
Email address created to
follow-up
field questions by
communication
stakeholders
5.Training
changes &
additional
requirements
31
support the transition to and certification
Training to be
All
employees
in each break
EAC 556: Kohl’s Corporation Organizational Change Plan
created no later than
6 months to
implementation
Training to be
unionization
programs
room by the
completed no later
time clock
than 14 days before
change to unionized
store
Emails to
management
staff
Communication
6.Leadership
describing the training
training programs program established for
management
To notify
Face to face
management of
discussion of
Training to be
Management
training deadlines roll out of
staff
and certificate
training
members
programs
program in
completed 1 month
prior to
implementation of
employee training
programs
employee
forums/
meetings
Communication
7.”Go Live”
describing the successes
communication
& barriers to the change
in each pilot store
Management Communication to
To offer
continued
Emails &
communication & scripting for
transparency of
senior leadership
staff meetings
teams of pilot take place at each
stores to
staff meeting after
communicate transition to
with direct
unionized
reports
workforce
Resistance Plan
Change may challenge people’s abilities, experience, customs, practice and performance. Every
stakeholder in an organization has the possibility to see the change as a threat and may present
resistance or barriers to a planned change initiative. For instance, if job roles are changed during
the process, both employees and managers in Kohl’s may feel that they lose status or power.
In Phase 1, resistance and readiness in organizational change had been discussed. Then, what
shall Kohl’s do to overcome resistance or barriers in the changing process? First of all an
organizational climate survey is suggested and will be conducted by BCG in order to understand
and be prepared to address the varied perceptions, emotions states and ways of thinking that may
emerge for individuals and stakeholder groups. Second, how to identify the barriers would be
discussed. Third, strategies would be offered and discussed by BCG to overcome the resistance
and barriers. In addition, before applying the strategies, a discussing meeting for three
participating organizations – Kohl’s, RWDSU, and BCG - would be held in order to collect
feedbacks for the strategies and ultimately make an agreement on it.
Organizational Change Climate Survey and Barriers Identification
According to the statement on Business Improvement Architects (2014), “Organizational Reviews,
Employee Surveys and Culture Studies are being increasingly used by first rate, leading edge,
organizations to help drive the continuous improvement/change process.” Organizational change
32
EAC 556: Kohl’s Corporation Organizational Change Plan
climate survey can somehow help the consultants and leadership team to identify what and how
the Kohl’s stakeholders would respond to the upcoming unionization plan and change. The
climate survey involves measuring employee’s attitudes and perceptions against certain factors
deemed essential for a successful change and in order to become a high performance organization.
The results of the organizational climate survey will be analyzed by the Kohl’s leadership team
and provide important data to support the development of strategies to address anticipated barriers
or areas of resistance and create readiness.
The leadership team will work with BCG and the Change Advisory Committee to develop, design
and implement action steps to remove anticipated resistance and barriers to continuous change.
The organizational change climate survey will be held in May, 2014; and the result of the survey
will be reported at the end of May.
Business Improvement Architects (2014) provided a strategic method to design a climate survey,
which assesses eight major components within organizations. BCG will draw from this method to
design the climate survey and investigate stakeholders’ attitudes relative to the pilot to unionize
Kohl’s. The eight major components of the organizational climate survey are:
•
Strong Leadership and Organizational Direction
•
High Focus on the Customer
•
Effective Management of Change
•
Quality Processes and Systems
•
Optimal Information Systems and Communication
•
Effective Management Practices
•
Aligned Human Resource
•
High Productivity and Organization Performance
Through the survey which will be designed based on the eight components mentioned above, both
BCG and the leadership team in Kohl’s could collect the data and identify the anticipated
resistance or barriers in the early stage of changing from major parts of the organization,
including management, employees, organizational systems of operation and communication,
human resource and etc. The results of the survey may inform us the responses, attitudes or
readiness from different levels or parts in Kohl’s, so that BCG could better and comprehensively
address the changing plan for the unionization.
The climate survey will be implemented by questionnaire conducted by BCG and the leadership
team in Kohl’s. “When implementing any new policy or guidance, it is essential to identify the
gap between recommended practice and current practice.” (NICE, 2007) This indicated that the
barriers to the change could be identified via such questionnaire. As discussed above, the key
individuals and major parts in Kohl’s will be involved into the survey. Therefore, it would allow
BCG to explore the current barriers from four aspects - knowledge, beliefs, attitudes and behavior
- on both individual and organizational levels. Additionally, potential barriers also can be
identified by understanding stockholders’ attitudes via observing individuals’ practice and routine
behavior.
33
EAC 556: Kohl’s Corporation Organizational Change Plan
Overcome Resistance and Barriers
Overcoming resistance and barriers is the key to the successful implementation of a change plan.
There are ten proven strategies (Marker, 2014) that will be taken into consideration in the
development of readiness strategies:
1.
Address personal concerns first
2.
Link the change to other issues people care about
3.
Tap into people’s desire to avoid loss
4.
Tailor information to people’s expectations
5.
Group your audience homogeneously
6.
Take advantages of people’s bias
7.
Make the change local and concrete
8.
Appeal to the whole brain
9.
Beware of overloading people
10.
Know the pros and cons of the change
In addition to these assessment strategies, specific activities that are intended to anchor the new
organizational values associated with the change plan will be instituted throughout all aspects of
the organization within the implementation plan – communications, training, human resource
practices and evaluation.
Figure 5. New Organizational Values
Honesty
Integrity
Professionalism
Transparency
The new values
Respect
Improvement
Fairness
Excellence
As the figure (Corus Case Study, 2014) showed above, the eight aspects are the key strategies to
reduce the resistance to the change. The unionization in Kohl’s would be conducted smoothly as
long as the new values of change can be delivered successfully. For Kohl’s, stakeholders of all the
levels (supervisors, managers, staff) should be get involved in as much as possible through a
range of direct and indirect communications, for instance, workshops, newsletters, interviews, and
so forth. This is one of the most important techniques to reduce resistance and ensure that all
employees understand what behaviors it expects of them. The development of effective strategies
34
EAC 556: Kohl’s Corporation Organizational Change Plan
to address resistance and create readiness will depend upon involving stakeholders throughout the
change process. Success requires engaging stakeholders in the change process, including them in
decision making when possible and ensuring that implementation strategies are weaved
throughout all aspects of the organization – communications, training, human resources,
evaluation.
Based on these strategies and new values discussed above, BCG and the Change Advisory
Committee will develop a guidance for how to overcome or reduce the resistance and barriers in
the process of organizational change. This guidance will be presented first at the end of May,
2014 to the management of Kohl’s and RWDSU, in order to have the guidance discussed and
approved before applying it. At the middle of May, 2014, the approved guidance would be
delivered into the BCG, the Change Advisory Committee, the management of Kohl’s, and
RWDSU.
Training and Development Plan
The training that Banana Consulting Group (BCG) is recommending coincides with Kantar et al's
8th Commandment, “Develop enabling structures.” The training and development that we
recommend centers on the new protocols and procedures that will be enacted with the
unionization of Kohl's retail employees. We would like to stress the importance of training for
this pilot initiative of unionization to facilitate a successful transition.
BCG worked with Kohl’s HR team to conduct a training needs assessment to identify gaps. BCG
recommends that Kohl's work in conjunction with RWDSU to implement the following training:


Training for Kohl's Managers on working with unions and unionized employees
 Introduction of key contacts in RWDSU
 What to expect: protocol and procedures
o How the union will represent employees
o How employees should approach management with concerns
o When employees will contact the union: grievance procedure
o How the union will contact Kohl's
o Negotiations
Training for retail employees to understand how the union will represent them
 Introduction of key contacts in RWDSU
 Protocols and procedures
o How the union will represent them
o How employees should approach management with concerns
o When to contact the union: grievance procedure
o New reward and recognition program
Due to the issues identified in the HR employee satisfaction survey, BCG recommends that Kohl's
provide the following additional training specifically for managers to facilitate an increase in
productivity and reduce employee turnover at both the retail and management levels. BCG
stresses the importance of providing training for managers that will enhance their leadership
35
EAC 556: Kohl’s Corporation Organizational Change Plan
ability, support their development and address how the union will affect their interactions with
employees.




Interpersonal and Communication Skills
 Conflict Management
 Sensitivity Training
Review:
 Handling requests and assignments: scheduling, vacation, holidays,
bereavement, etc
 Hiring and Termination protocol
 Health and Safety
 Favoritism
 Sexual Harassment
Team Building and Motivational Skills
 Increasing morale and working as a team
 Tailoring motivation to individuals and specific situations
 Performance evaluation and promotion
 Pay Structure and Benefits
 New Reward and Recognition Program(For Mgmt and employees)
Strategy and Protocol for Negotiating with RWDSU
 Communication procedures and protocol
 Legal concerns
Figure 6.
Development Goals:
Training:
RWDSU Orientation
Kohl’s Organization
Conflict Management
Sensitivity Training
Employee Kronos
Training
Reward and Recognition
Training
OSHA / Regulatory
Training
Team Building Skills
Motivating a Team
Training
How to Improve EE
Moral
Unionized Workforce
36
Results
Orientation
X
X
X
X
Soft Skills
Training
X
X
X
X
X
X
HR Policy /
Procedures
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Performance
Management
X
X
X
EAC 556: Kohl’s Corporation Organizational Change Plan
X
101
Is it Legal? (Kohl's Legal
Training)
X
X
X
Evaluation Plan
The success of change initiatives relies on the development of an effective evaluation plan.
Evaluation planning begins when the project begins and is a continuous process throughout the
project. It will be a useful tool in evaluating the success or failure of the change initiative.
The Banana Consulting Group strongly encourages the utilization of evaluation throughout the
change process. Literature stresses the importance of evaluation to improve the quality of
outcomes, assist with prioritization and utilization of resources, and enable a learning
environment that improves and develops overtime. Before undertaking an evaluation, it is
imperative to establish clear, concise objectives as they are necessary to measure the successful
outcome of the project. Objectives can and/or should be developed from the needs assessment
and the task analysis. An objective should be written for each goal or outcome in which you are
trying to achieve. Like a roadmap, objectives tell us where we are going. It is important to collect
data from as many sources as possible for the purpose of diversity and for gaining different
perspectives. The preparation and conduct of evaluation then become integral to the change
program, receiving as much attention as other aspects of the intervention.
Phases of the Evaluation
Before undertaking an evaluation, it is imperative to establish clear, concise objectives that relate
to the expected outcome of the change initiative. Objectives can be developed from the needs
assessment and the task analysis and should be written for each goal or outcome in which you are
trying to achieve. Like a roadmap, objectives tell us where we are going. It is important to collect
data from as many sources as possible for the purpose of diversity and for gaining different
perspectives. The preparation and conduct of evaluation then become integral to the change
program, receiving as much attention as other aspects of the intervention.
Simply put, the evaluation in the summative phase will examine the success or failure of the
change project. It will be at this point, that Kohl’s leadership will determine if the pilot is
successful and unionization efforts will ensue nationwide.
Data Collection Methods
The BCG recommends employing evaluators that possess both qualitative and quantitative
experience which is referred to as “mixed methods” data collection. There are numerous methods
from which to collect data: interviews, individual and focus groups, nominal group technique,
critical incident technique, Delphi, surveys, questionnaires, paper, pencil, and computer based
tests and observations. When choosing data collection methods it is important to consider the
questions being asked as it will guides the most appropriate evaluation instrument and data
37
EAC 556: Kohl’s Corporation Organizational Change Plan
collection technique. In addition to considering the evaluations’ key questions, other
determinants for choosing a data collection method are: resources, budget, time, instrument
validity, level of intrusiveness, availability of data, timeliness, objectivity, cultural consideration
and the type of data requested by the stakeholder. Evaluators should determine which data
collections methods are most credible and select the one (s) that are most meaningful to the
evaluation. Evaluators must understand where their own prejudices lie and develop ways to
minimize any degree of bias when performing evaluations. While we recommend using the
“mixed methods” data collection approach, it is imperative to provide the stakeholder with the
type of data that he/she requests and finds most reliable.
In summary, an important point to remember is that data collection methods have advantages and
disadvantages and should be carefully chosen; considering budget, resources, time, cultural
constraints, etc. and considering the means for collecting the most unbiased, reliable data.
Creating Questions to Guide the Evaluation
In order to collect valid information, it is crucial to word each question carefully since the
questions guide the evaluation. If we don’t take the time to consider how survey items are
worded, we are likely to obtain data that are either invalid or not usable (Russ-Eft and Preskill,
2009). The evaluation questions should target the areas of focus and should be written in a way
that will reflect the objectives and the outcome. The questions should ask what you are trying to
find out. For example, if you are trying to determine if employees seem happier (i.e. more
satisfied) after the implementation of the union, a question might be: “Is there a noticeable
improvement in employee satisfaction?” While this is a simple question, it both targets an area of
focus and provides reliable data.
Communicating Data Results
When communicating evaluation results, reports should be written in a way that clearly
communicates the findings and should be communicated using different formats (i.e. mixed
methods of data collection). Even though stakeholders might request a specific type of data
upfront, providing additional data methods shows that the evaluator has been committed to the
project. More data can provide better results. During discussions regarding evaluation findings
and their implications, translate the findings into long-term benefits. Doing so can assist in
placing a positive spin on perhaps negative findings. Evaluations are political acts even though
not all influences on them are negative. Political considerations should never cause unethical
evaluation proceedings or unethical use of findings.
Evaluate the Evaluation
At the end of the evaluation, the BCG further recommends conducting a metaevaluation.
Evaluation that looks inward on its own practice is called metaevaluation (Scriven, 1991). RussEft and Preskill (2009) suggest that metaevaluation is an excellent means for judging the value
and soundness of an organization’s evaluation process and systems. It can provide insights and
learning about what works and doesn’t work within the context of a particular organization.
38
EAC 556: Kohl’s Corporation Organizational Change Plan
Some approaches to conducting a metaevaluation:
1) the evaluation team can perform the metaevaluation, 2) the evaluation staff might choose to ask
other staff members to critique the evaluation or 3) experts from consulting firms could be asked
to critique the evaluation. During the metaevaluation, evaluators will be asked to revisit such
topics as the rational and purpose of the evaluation, how the stakeholders were selected, if the key
questions were appropriate, if the evaluation design was appropriate, and if the best data
collection methods were chosen. Russ-Eft and Preskill, (2009), suggest the following strategies in
introducing or expanding evaluation practice within your organization:

Stress the organizational benefits that may accrue because of evaluation ─ provides
specific examples

Link evaluation work to the organization’s mission and goals of the change plan

Involve stakeholders throughout the process and communicate often with them

Emphasize the use of findings

Be intentional about what and how stakeholders learn throughout the evaluation process

Link evaluation work to knowledge development and management

Connect evaluation to other learning systems within the organization
Though the evaluation process might seem time-consuming, the reasons to evaluate are clear.
Finally, the BCG recommends sharing evaluation findings with the members of RWDSU in
efforts to continue to build rapport. Additionally, by sharing evaluation findings, Kohl’s
Corporation and RWDSU can work together to identify ways to improve the successful change
initiative in the remaining stores. Identifying improvements (reviewing lesson learned from the
initial implementations) could potentially save lots of time and money during the remaining
phases for both Kohl’s Corporation and RDWSU.
Rewards, Recognition and Options Program
As a way to boost staff morale and encourage union employees, the Banana Consulting Group
(BCG) has put together a list of suggested ideas that may be implemented after unionization is
complete. Every individual employed by the Kohl’s corporation deserve to feel recognized and
appreciated for their hard work and support of the company. Those individuals that choose not to
participate in the unionization of Kohl's deserve alternative options supporting their decision to
part from the company. “Kantar (1983) suggests that the way in which a change project is defined
affects its acceptability to those who are going to be affected” (Simms, p.152). The Banana
Consulting Group suggests this change can be defined by assisting, motivating and encouraging
all workers employed by Kohl's to include managers, supervisors, sales associates and part-time
staff, hereafter referred to as employees. Below you will find the suggested implementation
options.
Rewards and Recognition for Union Employees
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EAC 556: Kohl’s Corporation Organizational Change Plan
Monthly Staff Development Days
Objective:
To increase staff morale and provide employees with the opportunity to get to
know each other.
Details:
These will be dedicated to team building activities where staff members may get to
know each other. Examples of activities could be employee cook outs, ropes course
outing, catered luncheons, etc.
Staff Appreciation Blog
Objective:
To show appreciation for the staff and to help boost staff morale.
Details:
As a way to show employees that they are appreciated, a blog will be created for
staff members to compliment each other or give thanks. Employees will have the
opportunity to write “Kohl’s cares about you” awards for other employees to show
their appreciation. These will all be read at the staff development events. Five of
the awards will be randomly selected to receive a reward (i.e. gift cards, treats,
money) at the staff development events, as well.
Comments, Concerns and Creative Ideas Box
Objective:
To maintain open and consistent communication, participation and involvement
among the entire staff.
Details:
As a way for employees to feel involved and present in the union, a wooden box
will be placed in the break room for staff members to jot down any comments,
concerns, or ideas. This will be a productive place for employees to make
suggestions. These will be read and addressed at the biweekly staff meetings.
Bi-weekly Staff Meetings
Objective:
To maintain open and consistent communication among the entire staff. To maintain
staff involvement and address any comments, concerns, or suggestions.
Details:
There will be biweekly staff meetings where the employees will discuss company
goals, progress, important dates/information, as well as address the items in the
comments, concerns and creative ideas box.
Tokens of Appreciation
Objective: To show staff appreciation and serve as an incentive for dedication and good customer
service.
Details:
40
Staff members will have the opportunity to earn coins (pins to wear on their shirt).
Staff members with the most coins at the end of the month receive the “employee of
the month” award. Their picture will be taken and will be hung on the wall at the
front of the store for customers to see.
EAC 556: Kohl’s Corporation Organizational Change Plan
Dedication to Kohl’s Rewards
Objective: To encourage employees to stay with the union long term.
Details:
Bonuses will be given to employees after every five years of completion. After the
first five years of dedicated to Kohl’s, employees will be rewarded a $500 bonus.
After ten years of service, employees will be rewarded a $1000 bonus.
Alternative Options for Non-Participating Employees
In an effort to reinforce and institutionalize change the Kohl’s Corporation makes it a top priority
to prove their commitment not only to the change, but to its employees. It is the assumption of the
Banana Consulting Group that every employee may not want to participate in the unionization of
Kohl’s. In reference to information gathered from the stakeholder’s analysis, the BCG suggest the
following options for those employees:
Transfer to Non-Unionized Store
Objective:
To demonstrate Kohl’s value and concern for their employees.
Details:
For those employees who do not wish to remain in a store that is participating in
the pilot, Kohl's will allow them to transfer to stores that are not yet unionized if
there are position available. This will give employees time to obtain alternative
employment and/or take advantage of other options Kohl’s are providing
employees who have decided to leave the company.
Short-Term Skills Training
Objective:
To assist employees in their transition and their efforts to obtain alternative
employment.
Details:
In an effort to show Kohl’s loyalty to its employee, Kohl’s will partner with local
community colleges and their continuing education department to offer short-term
skills training for 6 months. Employees will continue their employment with
Kohl’s and be given time off to participate in this on-site training two hours per
week with pay. Representative(s) from local Community Colleges to work with
employees in the areas of resume preparation, job search strategies, interviewing
and networking skills. This training is not mandatory. As an option this is being
extended only to those employees who have decided it would be in their best
interest to not participate in the union.
Severance Pay and Health Care
Objective:
To demonstrate Kohl’s commitment to employee success.
Details:
Employees who do not wish to transfer or participate in skills training have the
option of taking a severance plan to include two weeks of pay along with pay out
of accumulated vacation hours. Any time accumulated for sick pay will not be
41
EAC 556: Kohl’s Corporation Organizational Change Plan
included. Kohl’s will continue to pay for current insurance premium for 60 days
beyond the date termination, after which, if employee assumes all responsibility for
health care plan premiums if employee decides remain enrolled with the healthcare
company established through the Kohl’s Corporation.
Eligibility for Re-Hire and Continue Years of Service
Objective: To maintain long term positive relationships in keeping with the open door policy.
Details:
Employees who terminated their employment with Kohl’s due to unionization and
who left the company in good standing will be considered eligible for re-hire.
Although consideration will be given to those with previous employment experience,
all candidates will be required to adhere to Human Resource requirements and
proceed through the established application process in order to be consideration for
re-hire. If an employee is rehired within one year after termination date, continued
years of service will resume.
Summary of Phase Two
In Phase 2, the focus of our proposal was implementation. A variety of key activities were
designed to separate from the past, create a sense of urgency, support leadership, line-up political
sponsorship and develop enabling structures:
 A multifaceted communication plan with strategies to address the needs of internal and
external audiences were developed and launched to provide information about Kohl’s
in U and the compelling vision for the future.
 A robust training and development plan was initiated to not only orient and prepare the
workforce for the change, but to develop management and leadership skills and foster
an atmosphere not only ready for change but prepared to address resistance.
 A resistance plan provided insight into potential barriers and oppositions and strategies
to address and expand stakeholder readiness and anchor new organizational values
were established.
 An array of human resources practices called the Rewards, Recognitions and Options
Program were initiated to support the Kohl’s in U pilot.
 In order test the efficacy of this pilot and ultimately reinforce and institutionalize the
change, a multidimensional evaluation plan was developed to assess, analyze and
interpret data.
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EAC 556: Kohl’s Corporation Organizational Change Plan
Appendix C Phase Three
PHASE THREE
Introduction to Phase 3………………………………………………………………………….44
Evaluation ……………………………………………………………………………….……...44
Data Collection Plan………………………………………………………………………….....48
Sustaining the Change ……………………………………………………………………….…50
Recommendations to Kohl’s/ Adjustments in Proposed Activities………………………….....54
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EAC 556: Kohl’s Corporation Organizational Change Plan
PHASE 3
Introduction to Phase Three:
In this the third and final phase of Kohl’s in U, we will continue to evaluate the success of the
change initiative, discuss sustainability and recommend next steps. Phase 3 will examine results
and success measures on various levels throughout the organization. Evaluation will be used as a
form of inquiry to assist Kohl’s leadership with decision making in order to determine whether to
launch Kohl’s in U throughout the entire workforce, nationwide.
Evaluation
BCG will perform evaluations throughout the change initiative to measure the success of the
Kohl’s in U program. In this initiative, the use of evaluations is critical, since the success of
Kohl’s in U in the initial ten stores will greatly (if not wholly) impact the decision to move
forward with it in the remaining stores.
The fear of the prospect of a negative evaluation is probably inherent to being human.
Accordingly, BCG anticipates some level of resistance to evaluation. For example, the
announcement of the evaluation might cause the involved staff to remember previous negative
experiences with evaluation, causing them to resist it. When evaluation purpose and questions are
determined, conflicting power relations and conflicts of interest may arise and result in resistance
of certain individuals or groups. Lack of utilization of evaluation findings and recommendations
may also be based on stakeholder resistance (Brauns and Taut, 2003). In the evaluation literature,
resistance has been discussed mainly in terms of the (lack of) utilization of evaluation results.
Donaldson, Schooler and Scriven (2002), recommend the following strategies for managing
evaluation strategies:

















Expect and accept
Work through hangovers from bad evaluation experiences
Make sure this isn’t legitimate opposition to bad evaluation
Determine program psychologic
Discuss purposes of this evaluation
Discuss the professional standards for program evaluation
Discuss why honesty with the evaluator is not disloyalty to the group
Discuss the risk/benefit ratio of cooperation for individuals
Provide balanced continuous improvement feedback
Allow stakeholders to discuss and affect the evaluation
Be prepared to wear your psychotherapy hat
Role clarification on an ongoing basis
Be a role model
Distinguish the blame game from the program evaluation game
Facilitate learning communities/organizations
Push for culture change
Use multiple strategies
When evaluation is viewed as a form or inquiry that seeks to improve organizational decision
making, learning, and action, images such as a puzzle with interlocking pieces, employees
working together, a spider’s web, or a question mark may evoke more useful and meaningful
images of evaluation’s potential Russ-Eft, Preskill (2009).
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EAC 556: Kohl’s Corporation Organizational Change Plan
Evaluation design should be determined by the purpose of the evaluation, the object of evaluation
or the problem to be solved by the evaluated program or agency. The recommendations are based
on different rationales: goals–means, context-based values and program theory (Hansen, 2005).
Further, evaluation design should be determined on the basis of an analysis of the problem that
the object of evaluation is meant to resolve. The following table (Table 1.) presents criteria for
choosing an evaluation model.
Table 2. Criteria for Choice of Evaluation Model: A Summary
Recommendation
Foundation
Criticism
The purpose of evaluation
(control vs learning) should
determine choice of model
Goals–means rationale
Is it realistic (is the purpose
of evaluation clear?)? If the
purpose is control: does
reliable effects measurement
exist?
a) the possible
a) Contingency-based goals–
means rationale
a) Limited design guidance,
as most evaluation situations
will merely result in
comparative evaluation
b) the legitimate and just or
a change strategy
b) Context-based value
rationale
b) Conservative? Not
appropriate recommendation
if the evaluation is part of a
strategy for reform
The problem that the
evaluated object is to resolve
should determine the
evaluation design
Programme theory rationale
Is it realistic when
interventions are complex
and integrated, and the
evaluation design number of
variables large?
The object of evaluation
should determine choice of
model:
In order to evaluate the change initiative, BCG has chosen Kirkpatrick’s four level evaluation
model as a guideline. The question guiding this type of evaluation is “What impact did the change
have on participants in terms of their reactions, learning, behavior and organizational results?
This model was chosen because it aligns well with the needs of Kohl’s as it focuses on impact
(which is of primary concern). Further, the Kirkpatrick model has served as the primary
organizing design for training evaluations in for-profit organizations for more than thirty years.
Literature supports its popularity and validity. Kirkpatrick’s 4-evaluation model is flexible (does
not need to be followed in a linear fashion), practical (can be applied in real-world situations) and
can be accomplished within limited timeframes. Reaction, learning and behavior success or
failure can be determined immediately after the initiative; simply by observation, which is a valid
and cost-effective method for data collection. How the organization was impacted can be
determined by observing reactions, learning and behavior.
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EAC 556: Kohl’s Corporation Organizational Change Plan
Kirkpatrick’s 4-Level Evaluation Model - Figure 7.
Reaction
(Level 4)
Learning
(Level 3)
Behavior
(Level 2)
Results
Level 1)
The results level of the evaluation seeks to answer such questions as, “Did Kohl’s make a profit
because of the change initiative?” or “How did the training impact the organization as a whole?”
The behavior level of the evaluation seeks to review the employees’ on the job performance. Did
job performance change?
The learning level of the evaluation seeks to disclose whether or not the employees were able to
apply the skills learned during the change initiative. What knowledge was acquired? What skills
were developed or enhanced? What attitudes were changed?
The reaction level of the evaluation seeks to disclose whether or not the employees enjoyed
participating in the change initiative and if they found it useful? How apt are they to make
positive recommend to their peers in the remaining stores?
Phase 3 of the Kohl's in U change initiative incorporates the last 3 Commandments from the
Kantar et al. model as previously described in our report:
7. Develop enabling structures
While the majority of the enabling structures, such as training & development and the new
recognition & reward program have already been implemented, Phase 3 includes the enabling
structures to evaluate and sustain the change initiative.
8. Communicate, involve people and be honest
Communication and disclosure are critical during Phase 3 to continue overcoming resistance and
giving employees a personal stake in the outcome of Kohl's in U.
9. Reinforce and institutionalize change
The final commandment is critical to reinforce Kohl's in U, affirm its importance and enhance its
acceptance in order to sustain the change in the long-run.
BCG has completed an initial evaluation of Phase 1 and 2 based on the 8 Commonalities of
successful organization change (O'Toole, 1995). In the following sections of our Phase 3 report
we will recommend how to continue the evaluation process to determine whether the change
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initiative was successful through various evaluation and data collection methods as well as how to
sustain the change initiative over time.
8 Commonalities of Successful Organization Change:
1. Change had top management support: Organization change, especially change of culture,
takes a long time, thus leaders must make a long-term commitment.
Phase 1 and 2: Kohl's top management recognized the need for change and has
been committed to working through any resistance that has occurred during Phase
1 and 2.
Recommendations: Continue working closely with the CAB to evaluate and
sustain the change process.
2. Change was built on unique strength and values of the organization: While values for the
organization may change, it is imperative that leaders understand what the organization's core
values are that should not change and serve as anchors for organizational members as they deal
with everything else that may be changing.
Phase 1 and 2: Kohl's is positioning itself as a socially responsible industry leader
and has stayed true to the company's values and mission.
Recommendations: Kohl's needs to continue seeking resolution to labor issues to
reap the benefits of a content workforce and increased productivity which will
ultimately lead to larger bottom-line profitability.
3. The specifics of change were not imposed from the top: The broader vision and overall
direction for the change is top management's responsibility, but in terms of implementing change,
all levels in the organization should be involved in all stages of the effort.
Phase 1 and 2: All stakeholders were engaged throughout Phase 1 and 2 and many
resources were directed at overcoming resistance.
Recommendations: Kohl's needs to continually seek the “pulse” of all stakeholders
to ensure the continuation of the change process and evaluate all new concerns that
arise.
4. Change was holistic: This commonality is, of course, consistent with open system theory, that
is, that all organizational parts are interrelated and changing one will eventually have
consequences for all other parts of the system.
Phase 1 and 2: The change process was implemented across all levels of the
organization.
Recommendations: Kohl's must evaluate whether the change initiative has
alleviated the labor issues as well as its ripple effect throughout the pilot stores and
the entire organization. The data collection recommendations in the following
section of this report will address this piece of the evaluation.
5. Change was planned: The long-term process was drawn up and followed by a period of
education for all employees. Moreover, implementation was planned and carried out in detail.
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Phase 1 and 2: Phases 1 and 2 included initial data collection, data analysis,
planning implementation strategies, a detailed communication plan as well as
training & development, a resistance plan and a HR rewards and recognition
program.
Recommendations: If Kohl's determines that the pilot was a success, the planning
and implementation from Phase 1 & 2 can be used to implement the change
initiative throughout the other stores.
6. Changes were made in the guts of the organization: Changes in authority and power
relationships were made, access to information became easier, and the reward system was
modified to support the overall change effort.
Phase 1 and 2: New procedures were put in place to address changes concerning
employees, management and RWDSU. These groups each had input throughout
the process and new reward systems were established.
Recommendations: Kohl's needs to continually monitor the stakeholders to
evaluate the changes to the new relationships that have been implemented.
7. Change was approached from a stakeholder viewpoint: Attempts were made to meet the
needs of all the organization's stakeholders.
Phase 1 and 2: The initial change was driven by the need to address labor issues
concerning the discontent of retail employees but the entire change initiative
involved engaging all stakeholders to address each of their needs/concerns related
to the change.
Recommendations: Kohl's needs to continually monitor the stakeholders to
evaluate the changes to the new relationships that have been implemented.
8. Change became ongoing: The external environment is more dynamic than ever before and
remains in a constant state of change. The organization must be adaptive and built to change.
Phase 1 and 2: The industry is saturated by retail giants who provide a less than
ideal work environment for their employees. Kohl's initiative to unionize
employees reflects a commitment to create positive change.
Recommendations: To ensure survival, effectiveness and long-term success,
organizations today and for the future need to be built on change, not built to last
(Burke, 2011).
Data Collection
“To change a basic assumption requires a reexamination of dearly held beliefs and can therefore
destabilize a system whether an individual or a group and consequently cause considerable
anxiety” (Burke, p. 235). The creation of Kohl’s in U is a shift in culture, values and attitudes of
employees and customers and in order to change the culture a full understanding of baseline
beliefs and attitudes must be assessed. BCG has developed a plan for evaluating the current
organizational culture and desires for change in phases one and two. “Projects that use this
approach have been shown to work better and have greater long-term effects, sometimes carrying
on in some way after the official project finishes” (Stayner et al. 2000).
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Figure 8. (Carr & Kemmis, 1986)
ACT / OBSERVE:
To incorporate the ACT process, BCG recommends continued use of the Butler Model of Human
Action (Butler, 1994, 1996 which provides an explicit approach of collecting data in evaluating
organizational change. The five components in the Butler Model of Human Action are: Public
Information, Personal Practical Knowledge, Professional Practice, World View, and Reflection.
The evaluation data should include the five aspects.
Public Information: This information is outside the self in the form of policy
directives, research results, quality assurance processes, etc. which seeks to direct and
improve human performance and professional practice. In order to evaluate our
unionization, the public information should be collected, including the following
specific aspects:
 How much the policy (changing plan) has been implemented
 What has been done in the unionization for all three parties – Kohl’s, The Retail,
Wholesale and Department Store Union (RWDSU), and BCG
Personal Practical Knowledge: This is an organization of actionable knowledge and
understanding attained through lived experience. It is enriched by wider and more
complex experiences as evident by the data collection process. During the unionization
process, continuing to evaluate whether or not the employees (including the top, middle
and bottom staff) are participating in the unionization as well as how much they are
involved in the process will be important. Here in the unionization process, this “personal
practical knowledge” could be interpreted as the personal information that employees
gained during the process, including:
 Personal task for supporting the organizational change
 Personal change/adjustment for organizational change
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EAC 556: Kohl’s Corporation Organizational Change Plan
REFLECT:
World View & Reflection: World view is a collection of personal beliefs, values, and
assumptions. Here, it is an individual’s own way of looking at her/his organizational environment,
culture, traditions, working status, etc. Reflection is the primary learning process in the realm of
adult performance at work. Reflection is a learning interaction with professional practice and
public information, leading to the enrichment of personal practical knowledge and the questioning
of the world view of the self and the organization.
For the unionization, evaluating how employees would react to the organizational change is
crucial, since they are the main body who should be benefit or influenced the most. Continue
to collect data on how individuals conceive and reflect to the organizational change to
improve the communication plan after implementation of Kohl’s in U in pilot stores. This data
should include:
 Employee’s personal feedbacks about the organizational unionization
 Employee’s personal feedbacks about their own personal change or feeling by which the
unionization has caused
 Observing how the employees (from top staff to bottom staff) react to the organizational
change
Professional Practice: This is the human action. It is undertaken to achieve important
performance goals in particular contexts. Butler (1994, 1996) proposed in the Model of
Human Action that workplace performance is developed and perfected in context by
continually enriching one’s personal practical knowledge and world view. In the
evaluation of the unionization process, the data of professional practice should be
collected from all the three parties – Kohl’s Change Advisory Committee (CAC),
RWDSU, BCG as well as the employees in Kohl’s, including:
 The professional practice of the special head of CAC, RWDSU and BCG in the
unionization process – how each of the team implement and accomplish their own tasks
for the organizational changing professionally
 The professional practice of employees in Kohl’s in the process of unionization – how
they use their individual capability to cooperate and support the organizational change
As it has been identified, in the whole evaluation, the major subjects of data collection
should include: Kohl’s Change Advisory Committee (CAC), RWDSU, BCG and the employees
in Kohl’s. Questionnaires should be the major way of collection the data and conducted by CAC
and BCG. Also, observing employee’s or participants’ performance should be continued in the
evaluation by CAC and BCG in order to objectively recording and collecting evaluation data form
different perspectives.
Again, to ensure the organizational change is sustainable, the evaluation of the change
needs to be an on-going process, which means it would be conducted on a regular basis in
unionized and non-unionized stores. The first time evaluation would be at the middle of the
whole process of unionization, which will be in the January of 2015. The evaluation data analysis
will be done at the beginning of February, and will be presented by CAC and BCG to the
management of Kohl’s and RWDSU.
Sustaining the Change
Now that the Kohl’s In U change is in full swing, BCG has come together to work on a plan for
sustaining the change. It is important to revisit the plan in both phase one and two in order to
evaluate whether the change has been successful or not, as well as maintaining the change within
the organization. The tenth commandment of Kanter et al’s Ten Commandments for Executing
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EAC 556: Kohl’s Corporation Organizational Change Plan
Change (1992) is “reinforce and institutionalize the change.” This commandment puts emphasis
on the importance of sustainability after change has been implemented. In phase three of this
report, you will find a plan for sustainability within four sections: 1) dealing with unanticipated
consequences, 2) how to keep the momentum going, 3) how to choose successors within the
organization, and lastly, 4) ideas for launching new incentives.
Dealing with unanticipated consequences
Incorporate a Kohl’s Task Force
Several things set a task force aside from other working groups. The first is typically a sense of
autonomy; it is commanded by someone high-ranking enough that he or she does not need to
constantly consult superiors to make decisions. This makes a task force extremely mobile,
flexible, and effective, allowing the members to use their abilities in very efficient ways. It also
typically contains a broad cross-section of people, integrating an assortment of skills into a single
project.
It is the suggestion of BCG that Kohl’s task force be implemented and maintained throughout the
different phases of unionization. As other Kohl’s stores are added to the unionization phase, one
member from each geographical region would be assigned to the Kohl’s Task force. It is also
recommended that all major decisions affecting the overall operation of Kohl’s stores be approved
by the advisory board and Kohl’s senior leadership implementation of those changes.
 Members of the Task Force
o The task force will be made of up 1-2 Kohl’s managers from each region. It will
be the responsibility of the task force to use information obtained from the
organization wide employee opinion surveys to monitor progress and deal with
unanticipated outcomes, setbacks, problems and concerns arising from the
unionization. They will gather information and focus on both positive and
negative feedback.
 Monthly Task Force Meeting
o Task Force Team members from each region will meet monthly via virtual internet
portal to discuss any problems, concerns, strategize and plan possible changes to
reach desired outcomes that coincide with overall change initiatives.
 Communicating Task Force Solutions and Plans
o It is the responsibility to of the Task Force to communicate in written form all
decisions, goals and changes to Kohl’s Corporation. These decisions will be
implemented only upon approval of the Kohl’s Change Advisory Board and
corporate management team.
Once all stores have been unionized and all systems are a go, it will then be the determined by
the Change Advisory Board and the Senior Management Team of the Kohl’s Corporation
whether to maintain the Kohl’s Task Force or dismantle and reassigned team members to other
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EAC 556: Kohl’s Corporation Organizational Change Plan
positions within the Kohl’s Corporation. This would be an excellent opportunity for these
individuals in Kohl’s efforts in choosing new successors such as a potential Leadership
Development program.
Momentum
To have great success, momentum must be created and a series of successes are all ways in which
momentum can be built. When an organization and its leaders recognize that momentum is
occurring and take advantage of it, the results are promising. Unfortunately, just because forward
motion is being made, it is not guaranteed to stay. If momentum starts fading, there is a tendency
to become complacent. Therefore, not only must momentum be created, but a processes should be
put into place to make moving forward a continuous event. Utilizing and maintaining momentum
is not only to achieve immediate objectives, but it is important for achieving long-term objectives.
6) Establish Greater Challenges
Perhaps the easiest thing to do to maintain momentum is to keep raising the bar. Once a
goal is achieved, it is easy for an organization to become comfortable and run out of
steam. Simon & Schuster publishing icon Michael Korda offered this advice: "One way to
keep momentum going is to have constantly greater goals." It is the recommendation of
the Banana Consulting Group that the Kohl’s Corporation set new company-wide
objectives each time one is achieved. Following a celebration as detailed in the reward
and recognition plans in established in phase two. Keep the new goals attainable and
make sure they fit the overall vision already established.
7) Review Individual Efforts
"Individual commitment to a group effort—that is what makes a team work, a company
work, a society work, a civilization work," Super Bowl-winning coach Vince Lombardi
once said. Individual efforts within organizations are major factors that help create
momentum, and individual efforts will be crucial to maintaining that momentum. In
addition to establishing new corporate goals it is the recommendation of BCG that the
Kohl’s Task Force meet individually with employees and/or teams to evaluate their
contributions for previous momentum pushes and outline the next steps needed to keep
things moving forward. The Task Force will also gauge perspectives of where things are
and identify additional needs and necessary changes along with attention given to
employee desires in order to keep the momentum pulse of the corporate culture.
8) Re-Energize
Giving employees appropriate breaks and/or change of venue to prevent burn out. This
could be accomplished through corporate outings as stated in the rewards and recognition
section of phase II or with something as simple as a day away from the office. This allows
employees to become re-energized and refocused on the tasks at hand. A structured social
event or retreat would offer relaxation while maintaining focus on the vision of the
organization.
9) Remind
Whatever started the momentum may not be easily maintained without something to
recapture the excitement of the initial movement. Therefore, it is the recommendation of
BCG to facilitate events that will remind employees and keeping them encouraged
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through corporate outings, retreats, training sessions, rallies and team-building exercises
on a regular basis. This will rekindle the original vision and purpose, helping further a
sense of excitement and keep the momentous pace.
10) Recognize and Reward
Being a part of something big can get anyone excited and build momentum. But once the
newness wears off, catering to the individual can keep things rolling for the team. As
outlined in phase II, we Kohl’s will continue to celebrate victories that have been hardearned to generate the momentum by rewarding employees either with symbolic accolades
or real value awards. Offer ongoing incentives for employees who routinely go above and
beyond and recognize their efforts on an organizational-wide basis. Not only will it
encourage recipients to continue their efforts, but others will be motivated as well.
Choosing Successors
According to Burke, “change leaders would do well to counter equilibrium and sustain the change
effort by infusing ‘new blood’ into their organizations that is not cloning themselves” (Burke,
2011). Choosing successors for an organization undergoing a change is a great way for Kohl’s to
develop a fresh face and bring new ideas to the organization. In this section of the report, BCG
suggests that 20% of the staff at Kohl’s be new to their positions. These employers may be new to
the company or new to the position within the organization. This will allow for new ideas and
prevents “tired thinking” and “solidified norms” (Burke, 2011). The Banana Group suggests the
following actions to be taken in order to sustain the Kohl’s in U change:
4) Provide job description and detailed responsibility information for all employees.
During the Kohl’s in U change, staff members that have been with the company may wish
to be exposed to new positions within the company and some employee changes may be
necessary for keeping a new fresh approach to sustaining the change. The BCG suggests
that employee position job descriptions be made available to all employees who may wish
to change their position within the organization.
5) Hold an open application window for employers to apply for other positions within
the organization.
When the job descriptions are made available, employers may wish to explore new
positions within the company. Positions may also be available to the public (if such
positions exist). BCG suggests holding a hiring window for people to apply to open
positions. These new employers may bring new ideas to the organization. This may also
eliminate employees from being “burnt out” in their current positions which may lead to
poor performance, or lack of enthusiasm.
6) Hold workshops for employers in order to train and develop knowledgeable staff.
After necessary staff changes have been made, the BCG suggests that the organization
provide appropriate workshops for employees. These workshops should include, but not
be limited to, customer service skills, leadership skills, working in a union, business
management, etc. This will allow staff members to develop into well trained employees
that may grow with Kohl’s and unify the organization.
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Launching New Incentives
In order to spark new ways of thinking, and continue to keep the Kohl’s in U change a continual
work in progress, BCG has devised a list of new initiatives that may help sustain the change.
When an organization goes through a major change, it alters the natural way that the organization
was operating- it changes its equilibrium. Equilibrium can be detrimental to organizational
change. Burke states that “equilibrium is a precursor to death. When a living system is in a state
of equilibrium, it is less responsive to changes occurring around it. This places it at maximum
risk” (Burke, p 291). Launching new incentives can be a great way to keep the momentum going
and new ideas and ways of thinking flowing. Below you will find ideas for launching new
initiatives.
4) Open a new line of products promoted by a well-known famous person
A great way to promote products and help sustain the Kohl’s in U change would be to
launch a new product line. This would get employees excited about what is being sold in
the store as well as excite new and old customers to what Kohl’s has to offer.
5) Launch a new Kohl’s credit card that saves customers 5% on purchases
A great way to piggy back off of the Kohl’s cash incentive would be for Kohl’s to launch
a new credit card that would save customers 5% on their whole purchase. This would
draw in more customers that are willing to commit to the Kohl’s card, as well as
encourage veteran customers to continue shopping.
6) Customer opinion surveys with rewards
Customer feedback can be extremely helpful in allowing an organization a chance to step
back and monitor progress. It’s a great way to reflect on current practices and make goals
and form new ideas. An easy way to gather feedback from customers would be to hand out
customer satisfaction surveys with reward incentives. Attaching a reward ($5.00 off your
next purchase, save 15% next time you shop, etc.) would be a great incentive for
customers to give their feedback.
Recommendations to Kohl’s / Adjustments in Proposed Activities
As external consultants, we understand that the client is most aptly poised to understand the
climate, culture and customs within the organization. Therefore, during each phase of this change
process, BCG meets with the Kohl’s leadership team to review and discuss recommendations, and
make adjustments to proposed activities based on the valuable client input and feedback
provided. The following adaptations to our original Phase One and Phase Two proposals were
made:
5. In order to use a model that more aptly addresses the organizational level of change,
rather than focusing on the individual level, we elected to select a new change
model. Rather than ADKAR, we chose Kanter's 10 Commandments as a better fit for
the organizational changes required for Kohl’s in U.
6. In consideration of our audience (i.e. Kohl's Leadership Team), we made significant
adjustments in the choice of language and tone of our proposal moving away from an
academic didactic document to one that uses more positive language and builds on a
message of positive change. For example, rather than use the term unionization, we
defined the Kohl’s workforce change as Kohl’s in U and have branded this language
throughout the document.
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7. As requested, we also added detailed explanations of implementation strategies
including a clear rationale for our recommendations.
8. Finally, in order to improve the overall understanding and impact of the document, we
added a plethora of figures, models, tables and timelines to better illustrate what we
are asking Kohl’s to do, (specifically what tasks are done, by when and by whom).
BCG is certain they have developed a guiding platform that will be useful in the roll-out of Kohls’
successful change initiative. BCG feels this initiative will promote long-term success of the
Kohl’s corporation, i.e. Kohl’s will attract and retain a happy workforce, will maintain a solid
customer base and will realize a return on investment. Additionally, BCG believes that the
Kohl’s corporation might even set the stage for many of their counterparts by instituting Kohl’s’
in U. BCG wishes the Kohl’s corporation much success and look forward to future collaborative
opportunities.
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Lessons Learned:
Joy Working as a member of Banana Group has been a wonderful experience for me. This is
my first time having such a chance to work with a group of Americans colleagues
together. The most significant thing I learned, besides those professional knowledge and
strategies of organizational change, was how to communicate and cooperate with others
cross-culturally.
 On one hand, taking a consideration, respecting and complying with other different
cultures are called for in the team-work of with members from different backgrounds.
Diverse culture means there might be language barriers, different approaches of working,
and so forth. Therefore, giving each other understanding and maybe providing some help
in communication and working would bring positive effect to the team work. For example,
when working with Banana Group, my team members might give me extra explanations
of the task, or helped me to revise my writings.
 On the other hand, one of the strategies in cross-cultural communication is “monoculture”, which means simplifying different cultural values to one core values of the team.
For instance, for Banana Group, our working goal is consulting for an American company
and making the strategic plan for the unionization. Otherwise, most of the team members
in the group are Americans. Thus, as the foreigner, even though I sometimes might have
different cultural perspective of doing the whole thing, I needed to adjust myself into an
“American” way and learn new things from doing so, such as learning background
knowledge about how a big American company would manage their staff, or learning how
to communicate with other team members in a way that everyone would feel comfortable
with.
 Though it was a team work for a course project, what I had experienced might be
happened on a macro level in workplace. There might be more complicated cross-culture
situations in real workplaces, the “lesson” I learned from working with Banana Group in
this course gave me a chance to access to those multi-cultural issues of my research in
future.
Amy
56
Phase one highlighted the importance of learning about the organization before any
change can be made. It focused on data collection and analysis in order to choose a
change model before implementing change. Our group learned the importance of
communicating with the organization in order to explore the areas of need. This can be a
daunting task as it requires extreme detail. The value of data collected and research on the
best model for the change process were discussed at length. One significant lesson from
each phase was there is no “one size fits all” model for change. Each change model can
be used and modified if needed to accomplish the task. The evaluation phase required
great detail and as the group entered phase two of the project it became aware that reevaluation of the data collection and evaluation plan was necessary. The change processes
utilized in this class can aid in personal growth as well as professionally. Most
EAC 556: Kohl’s Corporation Organizational Change Plan
significantly this process reinforced the importance of simplicity. In many cases
complexity does not increase the speed or success of change. Being flexible to the needs
of others and learning styles is a leadership skill necessary in a group environment as a
student or employee and necessary for the success of this project.
Veronica I learned a great deal in phase two which offered several lessons and opportunities for
improvement as the group began to work on revisions from Phase One. Taking into
account some very helpful feedback from our professor, the group decided to switch
change models. This was a big lesson learned for us. Choosing the right change model is
crucial. Our group learned that given the data that was collected and the needs of our
organization the model we had originally chosen was not the best fit. Another lesson
learned was the use of graphics would offer greater clarity of timelines and aid in the
comprehension of the planning process and will be implemented in phase three as well in
phase two revisions. Increased attention was also given to the cohesion of phase one with
phase two. The group learned through feedback from the consultant (Dr. Hatcher) that the
Phase Two plan was difficult to follow.
Kimberley Phase three included several steps to correct the flow that was noted in the feedback from
Phase Two. First revisions were offered to each section to include greater consistent flow
for the change process. In addition, graphics and tables were used to support what was
listed in bullets and charts in phase one. In the phase of the project our group learned how
to effectively communicate with the client after the change had already been implemented
in order to sustain the changes. Our group really had to understand how to reassess the
change to ensure that implementation was successful, as evaluate the data collection
methodology. This phase really brought out the importance of communication and need
for specific, achievable plans. The Banana Group struggled between planning and
suggesting change and the desire to work on the implementation of the change strategies.
Julie Importance of establish a shared mental model and process - group work is tough but
group work within a distance learning context is even tougher. Each team member has
different strengths, experience, and ways of doing things. We each bring a different set of
expectations and assumptions relative to the tasks (what the work is), processes (how the
work should be done) and our relationships (roles, responsibilities, engagement, team
structure). Some members jump into task mode while others focus on 'trying' to establish
aligned team processes (ground rules, expectations, when will we meet, how often,
establishing clear roles/responsibilities, how will we make decisions, etc.). The natural
conflict between these two default behaviors creates tensions in working relationships.
Alignment therefore is extremely difficult and further complicated in a virtual
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environment. In the absence of proximity we must focus on clarity - clarity of roles,
responsibilities, timeline, expectations, processes and outcomes. If I were to do it all
again, I would begin with the end in mind and think through the needed systems and
structure in order to facilitate collective agreement and a shared mental model about how
we will do the work together.
 Importance of facilitative leadership - In a learning environment that necessitates peerbased group work, it is important that participants support each other and help facilitate
the learning, growth and evolving development each member. Using Hershey and
Blanchard's Situational Leadership model as a reference, there is a time for other
leadership styles - directive, supportive, coaching. My personal tendency is to direct,
particularly when I do not feel that direction is present within a group. In the case and
context of this project and working on a peer-based team, it is important to demonstrate
facilitative leadership and utilize a variety of approaches that can be employed to keep the
project moving in a positive direction.
Vivian
Communication can be challenging when working in an online setting at a distance.
Communication options and the formats/technology for the sharing of real-time
documents are less than ideal in some cases. Settling on one method that works for
everyone can be both difficult and frustrating.

It is challenging for newly formed collaborative teams to get familiar with others and
build trust as soon as possible, especially when they have project deadlines to meet.
(Tseng and Yeh, 2013). Reference: Tseng, H.W., Yeh, H.-T.,2013. Team members'
perceptions of online teamwork learning experiences and building teamwork trust: A
qualitative study. Computers and Education, (63), 1–9.
 It would probably be a good idea to determine a "facilitator" (i.e. project manager) for the
group upfront. Doing so could aid in eliminating confusion about tasks. A role of the
facilitator might also include assuring assignments are evenly distributed (as appropriate.)
Danielle
58
For me, this group project reinforced some of "life's lessons". I think in any relationship
treating each other with mutual respect is very important. Every person in the
group "brings something to the table", we each have different talents, experience and
perspectives that add value to the project at hand in one way or another. Just because
someone may have relevant experience they should keep in mind that someone else in the
group may not have relevant experience but bringing a "fresh point of view" to the table is
always valuable as well. When we differ in our work styles, personalities, expectations
and interpretations, maintaining mutual respect is key to the success of working together
as a group. Every member is equally important and should have a say in the
project. There is no one, right way of doing things. We each need to feel free to express
our opinions but also work toward a compromise as a group. Everyone's interpretations of
EAC 556: Kohl’s Corporation Organizational Change Plan
every aspect of the project may differ at times and we need to rely on each other and keep
an open mind, sometimes we are surprised when we really thought we understood
something but the way we interpreted was wrong...but that's OK because when you work
as a group and solve problems as a group, the whole is greater than the parts. I also think
it is important to give your team members the benefit of the doubt, especially in an online
environment where a lot of communication occurs through email where intonation and
other cues cannot be deciphered. I am not implying that I have mastered all of these
concepts but this group project has definitely made me more aware of these key concepts
that need to be kept in mind when working as a group. Thank you to everyone on the
Banana Team!
 Lessons learned in the formulation of the Kohl’s in U project have helped the Banana
Group formulate an improved change plan for the leadership of Kohl’s. The feedback and
suggestions from the consultant and team members throughout the project timeline have
increased specificity in some areas and expanded the content in others.

59
The consulting team is a key contributor of any successful change plan. The Banana
Group learned to work together as a team and build upon the strengths of each member to
develop a plan of change for Kohl’s. In addition to formative evaluation of the project,
the productivity of any group should be evaluated and modified as needed to ensure
cohesion and a unified plan for the customer. Groups take time to build rapport and the
Banana Group learned and grew together to create successful implementation of Kohl’s in
U for Kohl’s.
EAC 556: Kohl’s Corporation Organizational Change Plan
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