❖ C hange Kaleidoscope
According to Hailey and Balogun (2002), Change Kaleidoscope is a very vital tool that is useđ to analyze the change context. Through Change Kaeidoscope, managers can recognize the complications o f change and needs for change designs in a certain difficult situation. In the model, there are eight tầctors including time, scope, preservation, diversity, capability, capacity, readiness íor change and power. The eight tầctors help managers consider implementation options during the change process and thcy are indicated in the íìgure 2.
Figure 3: The eight contextual features o f C hange K aleidoscope
How quickly change is
needed.
What power does the change leader have to impose
change. I
Readiness
How ready for change is the
workforce.
ặ
Design Choices
W hat degree of change is
needed.
ề
<Ạ\
What organisational resources and characteristics
need to be maintained Diversit
W h a tis th e degree of change
resource available.
Aíìĩi w hat is the managerỉal and personal capacity
to implement change.
How homogeneous
are the staff groups and divisions vvithin the organisation
Source: Balogun and Hailey (2009)
The researcher uses Change Kaleidoscope to understand the capacity and vvillingness o f Vietfracht’s leaders in conducting these changes, the mechanisms and measures that are used to support these changes. Through interviews o f 4 leaders o f V ietữacht, the eight factors o f Change Kaleidoscope in the case o f Vietíracht are indicated as follows:
Time: The Vietnamese maritime industry is engultlng in the global economic crisis and it is predicted that the gloomy Vietnamese maritime industry will continue to prolong in at least the next two years. Therefore, changes needs to start right now through liquidation or sale o f dry cargo old vessels with poor
technical condition to promptly cut losses o f Sea Transport Block o f the Corporation. The e s ta b lis h m e n t o f Container transport fleet will be m a d e in the process o f im plem enting long-term dev elo p m en t strategy o f the Corporation to improve business períbnnance o f Sea Transport Block in particular and enhance business perform ance o f the w hole Corporation in general.
Scope: The changes are mainly conducted in Sea Transport Block o f the Corporation. However, the Sea Transport Block will need have the co- operation with all other rem aining business blocks o f the Corporation to enhance the effectiveness o f the changes and the business efficiency im provem ent o f the vvhole Corporation.
P re s e rv a tio n : young dry cargo vesseỉs with good technical condition need to be maintained in order to continue the work o f operation. In other vvorks, young dry cargo vessels must have preservation and maintenance towards searching for suitable cargos, and linear routes in order to have business cost savings and increase responsible avvareness for offícers and crew team so that the Sea Transport Block at least ensures the breakeven in its business operation.
Diversity: Viettracht conducts the changes one condition: the changes ensure that various employees and divisions within the Corporation are hom ogeneous in terms o f positive attitudes towards the changes, and positive supports for the changes. The homogeneousness o f the whole employees and divisions vvithin the Corporation are the deciding íactor for success or íailure o f the change.
C a p ab ility : The team o f operators, ship managers, and crew members vvill be available to conduct the changes. The Corporation will conduct training o f new employees and nevv managers, and retraining o f existing employees and managers vvhile waiting for investing in 2 Container ships. Aíter the Corporation conducts training o f new em ployees and retraining existing employees, it ensure that the managerial and personal capacity will be sufficient to conduct the changes
Capacity: Timely liquiđation o f old dry cargo vessels will transter from the ílxed assets to liquid assets (cash). The cash amount o f selling the old đry cargo vessels is not used to compensate for business losses but is used to invest in 2 Container vessels and upgrade present Container vvarehouse systems.
R eadiness for change: Business íleets are not eíTective and less involved in the business logistics chain that the Corporation is developing. Moreover, business íleets are íocusing more resources that have become the burden o f the whole business system. That is the motivation for the Corporation to ch ange the business m ethod o f sea transport fleet to im prove the business performance o f the whole Corporation. When the business efficiency of Viettracht is enhanced, incomes o f employees, personal and career development o f employees and lives o f employees are also improved.
Thereíore, the vvhole employees o f Vietữacht will be ready for the changes because they are aware o f the needs for the changes and are motivated to deliver the changes.
Pow er: This is a mạịor issue that intluences on all business units in the whole systeni o f the Corporation. Thereíore, it is necessary to ensure full implementation o f legal procedures. The Board o f Directors ilrst needs to set up the plan for change vvith the participation o f Sea Transport Block and other business units in the vvhole system and then it is necessary to report to the Board o f Managers and Shareholders General Meeting for approval to the plan for change. Arter there is resolution o f Shareholders General Meeting and the Board o f Managers, the Board o f Directors needs to coordinate with Parly Organization, Trade Union, and Youth Union in order to build up action programs for mobilization o f the collective strengths in this plan for the changes.
❖ K otter’s Change M odel w ith 8 steps
According to Kotter (1995), to have successíul changes in a company, managers need to a holistic approach requested to conduct change through.
The 8-step process is used for the leadership to change vveaknesses in their
company. The model includes 8 steps, namely establishing a sense o f urgency o f changes, creating the guiding coalition, developing a change Vision, co m m u n icatin g the change Vision, e m p o w erin g action, generating short-term wins, consolidating and íostering the changes, and incorporating the changes
into the culture.
The researcher bases on the Change Model including 8 steps o f Kotter (1995) to build the plan for changes o f Vietíracht. The plan for developing Vietíracht includes 8 steps as follows:
Step 1 - Establishing a sense o f urgency o f changes: Leaders o f Vietíracht needs to create simple and clear messages that indicate the urgency o f changes to help the whole human resources o f the Corporation see the needs for change and action o f change needs to be conducted immediately. The messages show that the gloomy Vietnamese maritime industry will continue to prolong in at least the next two years vvhile the business fleets o f V ietữacht are now not effective and less related to the business logistics chain that the Corporation developing. Moreover, focusing more resources or the íleets has been the burden o f the whole business system o f Vietfracht. Therefore, the changes needs to start right now through transíerring the business method o f sea transport from bulk and carg o transport to inland C o n t a i n e r transport in order to cut losses o f Sea Transport Block in particular and enhance business pertbrm ance o f the w hole Corporation in general. Moreover, the ch an g es associate sea transport business in the supply chain o f logistics Service o f the Corporation.
Step 2 - C reating the pow erful guiding coalition: Branches and subsidiary companies have advantages related to being highly effective business units and being perennial units in working as Container agents for lots of shipping lines. Moreover, they want Vietfracht to establish a company that has Container transport tleet to accomplish the supply chain o f logistics services.
Thereíbre, they are the driving forces for the plan for change. Leaders needs
to encourage the driving forces to exprcss their vievvpoints in the general meeting o f the Corporation such as Shareholders General Meeting, Employees Conference, Preliminary and Final Coníerences, etc. and thence the vvhole Corporation w ill pay much attention to the plan for sea transport b u sin ess
method change.
Step 3 - D eveloping a com pelling Vision: From the viewpoints o f branches and subsidiary companies, the Board o f Directors needs to develop a compelling Vision that help direct change efforts. The Vision can be “changing Sea Transport field which is making loss by transferring from bulk and cargo transport to inland Container transport - advanced form o f transport under supports o f the State in order to link between sea transport business and the supply chain o f logistics Service and help the Corporation becom e one o f the leading logistics company in Vietnam.