Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
VivaColombia: The Challenge of Growing a Low-Cost Airline in Latin America Change Management Analysis & Solution
HBR Change Management Solutions
Global Business Case Study | Elkin Rave, Juan Franco
Case Study Description
The case describes the emergence and business model of VivaColombia, a low-cost Colombian airline. The airline was established in 2008, although it did not begin operations until May 2012. Since its inception, VivaColombia has grown within both the domestic and international markets. It provides passenger transportation services to major and intermediate cities in Colombia and to major cities in international destinations. In 2015, VivaColombia had nine Airbus A320 aircraft serving 21 routes in Colombia and six international routes in North, Central, and South America. It had over 500 employees. In 2015, it carried over 2.9 million passengers on domestic and international flights, with sales of $US119.2 million and profits of more than $US971,000. Although VivaColombia's board of directors was satisfied with the results achieved to date, they disagreed about how to proceed. Some board members believed that VivaColombia should consolidate its domestic operations. They were concerned about the large number of customer service complaints that had accompanied its rapid growth. In addition, two low-cost international carriers were planning to enter the Colombian market, which the board feared would jeopardize VivaColombia's position in the domestic market. Other board members thought VivaColombia should take advantage of the opportunity to expand into Brazil, a major Latin American market, presented by Aerocivil, Colombia's civil aviation authority, which had authorized VivaColombia to operate the BogotA?, Colombia-Sao Paulo, Brazil route. Students must decide whether the company should expand into Brazil or consolidate operations in the domestic market.
Change Management, Decision making, Supply chain , Case Study Solution, Term Papers
What is Change Management Definition & Process? Why transformation efforts fail? What are the Change Management Issues in VivaColombia: The Challenge of Growing a Low-Cost Airline in Latin America case study?
According to John P. Kotter – Change Management efforts are the major initiatives an organization undertakes to either boost productivity, increase product quality, improve the organizational culture, or reverse the present downward spiral that the company is going through.
Sooner or later every organization requires change management efforts because without reinventing itself organization tends to lose out in the competitive market environment. The competitors catch up with it in products and service delivery, disruptors take away the lucrative and niche market positioning, or management ends up sitting on its own laurels thus missing out on the new trends, opportunities and developments in the industry.
What are the John P. Kotter - 8 Steps of Change Management?
Eight Steps of Kotter's Change Management Execution are -
- 1. Establish a Sense of Urgency
- 2. Form a Powerful Guiding Coalition
- 3. Create a Vision
- 4. Communicate the Vision
- 5. Empower Others to Act on the Vision
- 6. Plan for and Create Short Term Wins
- 7. Consolidate Improvements and Produce More Change
- 8. Institutionalize New Approaches
Are Change Management efforts easy to implement? What are the challenges in implementing change management processes?
According to authorlist Change management efforts are absolutely essential for the surviving and thriving of the organization but they are also extremely difficult to implement. Some of the biggest obstacles in implementing change efforts are –
- Change management efforts are made when the organization is in dire need and have fewer resources. This creates silos protection mentality within the organization.
- Change efforts are often made by new leaders because they are chosen by board to do so. These leaders often have less trust among the workforce compare to the people with whom they were already working with over the years.
- Change management is often a lengthy, time consuming, and resource consuming process. Managements try to avoid them because they reflect negatively on the short term financial balance sheet of the organization.
- Change efforts are often targeted at making fundamental aspects in the business – operations and culture. Change management disrupts are status quo thus face opposition from both within and outside the organization.
- Change efforts create an environment of uncertainty in the organization that impacts not only the productivity in the organization but also the level of trust in the organization.
How you can apply Change Management Principles to VivaColombia: The Challenge of Growing a Low-Cost Airline in Latin America case study?
Leaders can implement Change Management efforts in the organization by following the “Eight Steps Method of Change Management” by John P. Kotter.
Step 1 - Establish a sense of urgency
What are areas that require urgent change management efforts in the “ VivaColombia: The Challenge of Growing a Low-Cost Airline in Latin America “ case study. Some of the areas that require urgent changes are – organizing sales force to meet competitive realities, building new organizational structure to enter new markets or explore new opportunities. The leader needs to convince the managers that the status quo is far more dangerous than the change efforts.
Step 2 - Form a powerful guiding coalition
As mentioned earlier in the paper, most change efforts are undertaken by new management which has far less trust in the bank compare to the people with whom the organization staff has worked for long period of time. New leaders need to tap in the talent of the existing managers and integrate them in the change management efforts. This will for a powerful guiding coalition that not only understands the urgency of the situation but also has the trust of the employees in the organization. If the team able to explain at the grass roots level what went wrong, why organization need change, and what will be the outcomes of the change efforts then there will be a far more positive sentiment about change efforts among the rank and file.
Step 3 - Create a vision
The most critical role of the leader who is leading the change efforts is – creating and communicating a vision that can have a broader buy-in among employees throughout the organization. The vision should not only talk about broader objectives but also about how every little change can add up to the improvement in the overall organization.
Step 4 - Communicating the vision
Leaders need to use every vehicle to communicate the desired outcomes of the change efforts and how each employee impacted by it can contribute to achieve the desired change. Secondly the communication efforts need to answer a simple question for employees – “What it is in for the them”. If the vision doesn’t provide answer to this question then the change efforts are bound to fail because it won’t have buy-in from the required stakeholders of the organization.
Step 5 -Empower other to act on the vision
Once the vision is set and communicated, change management leadership should empower people at every level to take decisions regarding the change efforts. The empowerment should follow two key principles – it shouldn’t be too structured that it takes away improvisation capabilities of the managers who are working on the fronts. Secondly it shouldn’t be too loosely defined that people at the execution level can take it away from the desired vision and objectives.
Step 6 - Plan for and create short term wins
Initially the change efforts will bring more disruption then positive change because it is transforming the status quo. For example new training to increase productivity initially will lead to decrease in level of current productivity because workers are learning new skills and way of doing things. It can demotivate the employees regarding change efforts. To overcome such scenarios the change management leadership should focus on short term wins within the long term transformation. They should carefully craft short term goals, reward employees for achieving short term wins, and provide a comprehensive understanding of how these short term wins fit into the overall vision and objectives of the change management efforts.
Step 7 - Consolidate improvements and produce more change
Short term wins lead to renewed enthusiasm among the employees to implement change efforts. Management should go ahead to put a framework where the improvements made so far are consolidated and more change efforts can be built on the top of the present change efforts.
Step 8 - Institutionalize new approaches
Once the improvements are consolidated, leadership needs to take steps to institutionalize the processes and changes that are made. It needs to stress how the change efforts have delivered success in the desired manner. It should highlight the connection between corporate success and new behaviour. Finally organization management needs to create organizational structure, leadership, and performance plans consistent with the new approach.
Is change management a process or event?
What many leaders and managers at the Vivacolombia Domestic fails to recognize is that – Change Management is a deliberate and detail oriented process rather than an event where the management declares that the changes it needs to make in the organization to thrive. Change management not only impact the operational processes of the organization but also the cultural and integral values of the organization.
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous Change Management Solution
- Loss Prevention at Mac's Convenience Stores (B) Change Management Solution
- Why Strategy is Key for Successful Social Media Sales Change Management Solution
- The Multichannel Challenge at Natura in Beauty and Personal Care Change Management Solution
- An Introduction to Blockchain Change Management Solution
- MGM Resorts International: Accounts Receivable Change Management Solution
Next 5 Change Management Solution
- Chase Sapphire: Creating a Millennial Cult Brand Change Management Solution
- Onnie Jewellers Change Management Solution
- The Berkeley-Haas School of Business: Codifying, Embedding, and Sustaining Culture Change Management Solution
- The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (A) Change Management Solution
- How to Date Your Clients in the 21st Century: Challenges in Managing Customer Relationships in Today's World Change Management Solution