How Leaders Can Engage the Employees in The Change Process Case Study Questions

CASE STUDY 2
David Jones
Karen Lin Mahar, Central Queensland University
As the oldest department store in Australia, David Jones has seen its fair share of economic
growth and financial recession (Kennedy, 2012). Established by Welsh merchant David
Jones, the now iconic department store has spent the best part of a decade transforming
itself into a modern-day omnichannel retailer. Originally established to sell coveted
products to the gentry, the business continues with the same mantra today as it did
177 years ago. However, the retail environment is starkly different to the days of colonial
Sydney; as we enter the age of the touch-screen generation, participating in retail therapy
goes beyond the doors of the shop front and is instead dominated by the fingers of our
constantly monitored smartphones. This case study reviews the 2010?14 tenure of Paul
Zahra and his desire to emulate Nordstrom?s online retail success, and the takeover
of David Jones by South Africa?s largest retailer, Woolworths Holdings Ltd (David
Jones, 2014b).
DAVID JONES, AN EVOLVING LANDSCAPE
Amid the controversy of the departure of former CEO David McInnes and the movement of
the retail landscape into the online space, Paul Zahra had a Herculean task ahead of him.
The son of Maltese immigrants based in Melbourne, Paul Zahra became CEO in 2010. He
joined the company with 29 years of retail experience and the full confidence of the David
Jones board to execute a strategy to get the retailer online and onto mobile devices.
Zahra saw the closure of the online store in 2003 as a ?crossroad? in the retailer?s online
approach. David Jones opened an online gift store in 2000. Unfortunately, over a period of
three years it accumulated losses of $28 million (David Jones, 2012). McInnes was CEO at
the time and decided to close the online store due to lack of profitability. During this
period, the American upmarket retailer, Nordstrom, had also opened an online store that
struggled to make a profit. Nordstrom?s management decided to continue with its online
strategy, which has paid off in spades. Zahra saw the results of Nordstrom?s persistence as
inspiration for David Jones in the migration towards online and mobile retailing:
They launched their website at the same time we did. The difference is that we
closed ours . . . they continued to invest and develop ? and they?re advanced because
of it. (Mitchell 2011)
Zahra was determined to transform David Jones into a successful omnichannel
retailer and regain its position as the premier department store in Australia. To be an
460 PART 6 INTEGRATIVE CASE STUDIES
omnichannel retailer, David Jones needed to build a strategy and platform that would
allow customers to choose how they would shop and browse: in store, by phone, on their
iPads or on the David Jones website. It also had to develop the capability to allow
customers to choose how they would have their purchases devlivered ? by post or courier
or ready for collection at the nearest David Jones location.
THE NEW RETAIL ENVIRONMENT
Globally, retailers around the world have been facing a new environment as organisations
navigate the multiplatform movement from bricks and mortar to apps, iPads and
smartphones. What are the hurdles that David Jones has had to overcome to bring it back
to the glory days of Australia?s premier retailer? First, let?s look at the changing retail
environment. The global financial crisis (GFC) brought a mixed bag of goods into the
Australian economy. Partly due to the strength of the mining sector, we were one of the
few developed economies to navigate the GFC with only mild economic difficulties.
However, the struggle during the GFC of one of our trading partners, the United States,
among other factors, led to a strong Australian dollar, which aided in an international
spending spree by the Australian consumer. Further, the liberalisation of online shopping
from local online to global online, coupled with the strong dollar and, in many cases, free
international shipping, left many shopfronts wondering: where have the customers gone?
Online shopping has provided consumers with immense power to shop globally
within the privacy of their homes; now they also enjoy the convenience of their
smartphones, with Generation Y increasingly purchasing from mobile devices. With 10%
of all consumer purchases being made online, it is clear that to compete in the new
retail environment, an online presence is vital. Having closed its online store in 2003,
David Jones lost years of online retailing experience and is now playing catch-up with
its competitors.
Ross Honeywill, respected social researcher and Associate Professor at University of
Tasmania, argues that the retail industry is in serious trouble as the traditional business
model continues to drastically change. He believes that David Jones has continued to
focus on its traditional customer through discounting and promotion but has lost sight of
other growing target markets that have large spending power (Smith, 2011). As the retail
environment continues to change, David Jones intends to embrace the strategic scope of
smaller stores to accommodate developing consumer sentiments. The company plans
to reduce space in lesser performing categories such as childrenswear and homewares,
and instead focus on growth segments such as womens fashion and beauty. The
increased store network will be dynamic and reflect the changes in consumer tastes and
preferences.
Upmarket department store David Jones has unveiled an accelerated expansion plan
that will see 10 new stores opened over the next five years. (Greenblatt, 2015)
Case study 2 David Jones 461
Honeywill believes a serious concern for David Jones is that the company has
alienated a key target audience in recent years, the New Economic Order (NEO) who
account for 24% of the Australian population and 54% of discretionary spending. This
powerful, trendy and fashion-conscious target market is who David Jones should be
investing in, over its traditional market that may make up 50% of the population but only
accounts for 24% of discretionary spending (Honeywill, 2009). Further, the NEOs enjoy
shopping online and increasingly through mobile devices.
FROM DEPARTMENT STORE TO OMNICHANNEL RETAILER
To rescue David Jones, Zahra presented the board with a three-pronged approach,
which was approved. This multichannelled business strategy would cost an estimated
$80 million to execute (Mitchell, 2011). First, there was the plan to open six small stores
in strategic locations. Zahra?s intention was to be extremely targeted with this approach,
working with less store space and giving customers exactly what they want, catering to
each area.
Second, David Jones intended to focus on its core strengths. This included
preserving its market position as the leader in fashion and as a department store that
supports Australian designers. David Jones has maintained its well-known commitment
to local designers; in furthering this message it has struck deals with many local
designers to make certain pieces available to David Jones exclusively. This reminds the
market of the company?s buying power and its core competency as a retailer and a
brand. With these measures, Zahra?s intention was to put a stop to constant sales and
price cutting.
Traditionally, David Jones was known for excellent customer service, but this had
diminished over the years. In an effort to reinstate a key selling point, a personal shopper
program was provided and has been well received.
The third prong of the rescue plan was to transform the technologies used within the
business and to establish a strong online presence. IBM was enlisted to provide an
e-commerce platform for the business, providing online shopping that incorporates
mobile devices and utilises the power of social networking. In an effort to cover
traditional markets as well, Zahra also intended to set up call centres so that shopping
with David Jones became an omnichannel experience ? from store, to telephone, to web,
to smartphone (Mitchell, 2011).
In differentiating David Jones? online store, Zahra decided to continue the ?price
promise? online as well, matching prices of other retailers for the same product to keep
their customers loyal by offering the best possible price (Kruger, 2012).
Zahra also pushed for lower prices from suppliers, a process known as ?price
harmonisation?. It is no surprise that Australians are often charged much more than our
overseas counterparts, for many reasons, lack of competition being one of them. Often
the price varies as much as 40% for the same product. This is one reason why Australians
462 PART 6 INTEGRATIVE CASE STUDIES
are looking towards online stores: to avoid the price hike. Zahra hoped that price
harmonisation will allow the company to compete with online international retailers
(Kruger, 2012).
DAVID JONES TODAY
The 2010?14 tenure of Paul Zahra saw much change for Australia?s oldest department
store. When Zahra resigned from the company towards the end of 2014, David Jones was
in much better shape than when he started. The first half-yearly results released in
March 2014 showed that David Jones had posted an 8.2% increase in earnings at
$91.6 million, above its $89 million forecast (David Jones, 2014a). The cost of doing
business dropped 30 basis points to 30.2%, regardless of the company?s continual
investments into furthering customer service and pursuing online sales growth (Mitchell,
2014a). These results were the best David Jones had seen since the time of former CEO
David McInnes. Zahra saw this as a pivotal turning point for the company and felt that
the results showed it had weathered the storm.
The results also showed significant growth in online sales in January 2014 ? a 220%
increase due to a larger range of services and products and David Jones offering
customers a true omnichannel experience, with click and collect and shoppable videos
(Mitchell, 2014a). This rapid growth in David Jones? online sales sees a forecast of 10% of
total sales from its online store by 2018, a marked increase since the closure of its online
store in 2003 (Mitchell, 2014a).
The improvements in fortunes since Zahra took over the reins in 2010 has seen David
Jones as a target for merger offers from rival Myer and later in 2014, South African
retailer Woolworths Holdings Ltd. The battle was won by Woolworths Holdings due to
its lucrative offer of $4 cash per share. This was welcomed by shareholders who voted
96.8% in favour of Woolworths? $2.2 billion offer (Mitchell, 2014b).
With the takeover of David Jones by Woolworths Holdings complete by July 2014,
Zahra resigned in August 2014 (Greenblat, 2014). Having led David Jones through ?the
perfect storm?, Zahra felt the change in ownership and the turning of the tides for David
Jones was an opportune moment to walk away:
It was a natural exit point for me. It was an intense four years, it wasn?t a normal
four years. I achieved what I wanted to achieve and did all the heavy lifting with my
team. I felt it was time to be grateful, count my blessings and move on, I don?t regret
my decision. (Smith, 2015)
David Jones? new CEO was appointed in August 2014: Iain Nairn, the former CEO of
Country Road (also owned by Woolworths Holdings). The transformation of Country
Road by Nairn made him a natural choice for the South African retailer. In its takeover of
David Jones, Woolworths Holdings planned to execute a strategy to increase sales of
its private labels to 30% of total sales. It also intended to increase annual earnings by
$130 million over the next few years and introduce a loyalty program (Greenblat, 2014).
Managing Organization
Change
Course Syllabus
Master of Science in
Leadership and Organizational
Development
(MSLOD)
Date:
Version:
January 06, 2022
3.0
The Abu Dhabi School of Management attempts to ensure the information contained in this publication is correct at the
time of production (September/2021); however, sections may be amended without notice by the School in response to
changing circumstances or for any other reason. Visit the ADSM website or contact the School for any updated
information
Approved by Dr Kiran Nair, Acting Program Director-MBA,Jan 2022
Table of Contents
1.0
COURSE INFORMATION ……………………………………………………………………………………………………………………. 4
2.0
FACULTY INFORMATION…………………………………………………………………………………………………………………… 4
3.0
COURSE DETAILS ……………………………………………………………………………………………………………………………… 4
3.1
Course Description……………………………………………………………………………………………………………………….. 4
3.2
Course Learning Outcomes (CLOs) mapping matrix ………………………………………………………………………….. 5
4.0
TEXT/REFERENCE BOOK/COURSE MATERIAL ………………………………………………………………………………………. 5
4.1
Textbook(s) …………………………………………………………………………………………………………………………………. 5
4.2
Classroom Readings: …………………………………………………………………………………………………………………….. 5
4.3
Recommended Readings: ……………………………………………………………………………………………………………… 7
4.4
Online Journals: …………………………………………………………………………………………………………………………… 7
4.5
Other resources: ………………………………………………………………………………………………………………………….. 7
5.0
TEACHING PEDAGOGY ……………………………………………………………………………………………………………………… 9
5.1
Harmony and consistency in program delivery ………………………………………………………………………………… 9
5.2
Teaching and learning methods …………………………………………………………………………………………………… 10
5.3
Feedback and monitoring progress ………………………………………………………………………………………………. 11
5.4
The use of technology in the learning environment ……………………………………………………………………….. 12
5.5
Continuous enhancement …………………………………………………………………………………………………………… 12
6.0
CLASS PREPARATION AND PARTICIPATION ……………………………………………………………………………………….. 13
7.0
COURSE ASSESSMENTS…………………………………………………………………………………………………………………… 13
8.0
SUBMISSION OF ASSESSMENTS……………………………………………………………………………………………………….. 14
9.0
GRADING SCALE …………………………………………………………………………………………………………………………….. 14
10.0
MISCELLANEOUS …………………………………………………………………………………………………………………………… 15
10.1
Attendance…………………………………………………………………………………………………………………………….. 15
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10.2
Maintaining the learning environment ………………………………………………………………………………………. 15
10.3
Values ……………………………………………………………………………………………………………………………………. 16
10.4
Plagiarism ………………………………………………………………………………………………………………………………. 16
11.0
TEACHING SCHEDULE …………………………………………………………………………………………………………………….. 17
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1.0 COURSE INFORMATION
Title:
Managing Organization Change
Credits:
3
Code:
BUS 8414
Program
Standing:
Core
Cohort:
Fall 2021 Sec 1
Pre-requisite(s): None
Term:
Winter 2022
Co-requisite(s): LED 8313
Days and time:
Wednesday 16:00-21:00
Location:
Villa 3 / Room 101
2.0 FACULTY INFORMATION
Name:
Dr. Hamzah Elrehail
Email:
[email protected]
Office hours:
Monday- Thursday 2PM to 4PM
Phone:
026917747
Office:
Villa 5/ 5101
3.0 COURSE DETAILS
3.1 Course Description
The course provides students with an advanced understanding of the concepts, theories, and
techniques of managing change in an organization by critically assessing the theories of
organizational culture and the psychological contract. The course will analyze the principles of
organizational development, and discuss the concepts of the learning organization and Knowledge
Management within the context of organizational change. The course will examine a range of tools
and techniques which can facilitate the change process, based on a number of theoretical models.
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3.2 Course Learning Outcomes (CLOs) mapping matrix
CLOs
Critically appraise the complex nature
CLO1 of change and the role of change
management.
Analyze various theoretical models of
CLO2 organizational change, and apply them
to a variety of scenarios.
Synthesize and comment critically on
CLO3 the importance of addressing the
cultural dimension of change.
CLO4
PLO1 PLO2 PLO3 PLO4 PLO5 PLO6
CLS
(KN1, SK2,
RC1, SD1)
X
(KN2, SK1,
AR1, SD2)
X
(KN2, SK5,
RC2)
X
Evaluate the concept of the learning
organization and its impact on change.
Critically reflect on reactions to change
CLO5 and consider strategies to manage
these.
PLO1 ? PLO6: Program Learning Outcomes
QFE
X
X
(KN3,
SK4,AR2,SD3)
(KN4, SK3,
AR3)
Information, Communication, Working with
Others
#
Qualifications Framework Emirates (QFE) criteria:
KN = Knowledge
SK = Skills
AR = Autonomy and Responsibility
RC = Role in Context
SD = Self-Development
CLS = CoreLife Skills
4.0 TEXT/REFERENCE BOOK/COURSE MATERIAL
4.1 Textbook(s)
Cameron, E. and Green, M. (2019). Making Sense of Change Management, 5th Edition, Kogan Page.
4.2 Classroom Readings:
To be read prior to class according to the listed teaching schedule (Section 11 of this Syllabus).
Abe, M. (2019). Leader’s episodic change and followers’ continuous change: The case of Rakuwakai Otowa
Hospital. Annals of Business Administrative Science, 18(1), 1-12.
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Appelbaum, S. H., Cameron, A., Ensink, F., Hazarika, J., Attir, R., Ezzedine, R., & Shekhar, V. (2017). Factors
that impact the success of an organizational change: A case study analysis. Industrial and
Commercial Training, 49(5), 213-230.
Babicci, K., & Wongsurawat, W. (2018). Case study: From an ?underperforming 80?s bank? to one of
Oman?s best ? the transformation of BankDhofar. Strategy & Leadership, 46(5), 44-49.
By, R. T., Kuipers, B., & Procter, S. (2018). Understanding teams in order to understand organizational
change: The OTIC model of organizational change. Journal of Change Management, 18(1), 1-9.
Dalmau, T., & Tideman, J. (2018). The practice and art of leading complex change. Journal of Leadership,
Accountability and Ethics, 15(4), 11-40.
Eskerod, P., Just, B. J., & Sj?gaard, G. (2017). Enriching project organizations with formal change agents.
International Journal of Managing Projects in Business, 10(3), 578-599.
Ferreira, J. J., Carayannis, E. G., Campbell, D. F. J., Farinha, L., Smith, H. L., & Bagchi-Sen, S. (2018).
Geography & Entrepreneurship: Managing Growth and Change. Journal of the Knowledge
Economy, 9(2), 500?505. https://doi.org/10.1007/s13132-017-0514-9.
Fragouli, E., & Ibidapo, B. (2015). Leading in crisis: leading organizational change & business development.
International Journal of Information, Business and Management, 7(3), 71- 90.
Garrote, L. (2017). Managing water resources to adapt to climate change: Facing uncertainty and scarcity
in a changing context. Water Resources Management, 31(10), 2951-2963.
Jelena, E.-N., Stojanovic?-Aleksic?, V., & Zlatanovic?, D. (2019). The challenges of managing the
entreppreneurial organization. Ekonomika, 65(2), 87?98.
https://doi.org/10.5937/ekonomika1902087e
Jo?nsson, S., & Scho?lin, T. (2016). Process of change – competence development as a restructuring strategy.
The Journal of Management Development, 35(1), 2-16.
Mainga, W. (2017). Examining project learning, project management competencies, and project efficiency
in project-based firms (PBFs). International Journal of Managing Projects in Business, 10(3), 454504.
Pianesi, A. (2019). Design thinking plus adaptive leadership: Leading organizational change with the
change canvas. Organization Development Journal, 37(3), 45-58.
Pudjiarti, E. S. (2018). Elements of entrepreneurship in private universities: Organizational change
capacity, innovative capability and the performance. Journal of Entrepreneurship Education, 21(2),
1?16.
Repovs?, E., Drnovs?ek, M., & Kas?e, R. (2019). Change ready, resistant, or both? Exploring the concepts of
individual change readiness and resistance to organizational change. Economic and Business
Review for Central and South – Eastern Europe, 21(2), 309- 337,343.
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Rosenbaum, D., More, E., & Steane, P. (2018). Planned organisational change management. Journal of
Organizational Change Management, 31(2), 286-303.
Shaw, D. (2017). Managing people and learning in organisational change projects. Journal of
Organizational Change Management, 30(6), 923-935.
Szela?gowska-Rudzka, K. (2018). Direct participation of higher education institution employees in the
organisational change process: Study report. Ekonomia i Prawo, 17(4), 417.
Varney, G. H., PhD. (2017). Change your change process and make change work. Organization
Development Journal, 35(1), 25-33.
Vlados, C. (2019). Change Management and Innovation in the ?Living Organization?: The Stra.Tech.Man
Approach. Management Dynamics in the Knowledge Economy, 7(2), 229?256.
https://doi.org/10.25019/mdke/7.2.06
4.3 Recommended Readings:
The following is an indicative bibliography that is subject to change based on the regular faculty
and departmental updates taking into account the alignment with the Learning Outcomes.
Burke, W. (2017) Organization Change: Theory and Practice (Foundations for Organizational Science
series) (5th edition). SAGE Publications, Inc.
Hayes, J. (2018). The theory and practice of change management (5th Edition). Palgrave Macmillan
4.4 Online Journals:
The following journals, available online through the ADSM e-Library, are recommended:
Journal of Change Management
https://www.emeraldgrouppublishing.com/journal/jocm
Journal of Organizational Change Management Strategic Change
https://www.emerald.com/insight/publication/issn/0953-4814
Research in Organizational Change and Development
https://www.emerald.com/insight/publication/issn/0953-4814
4.5 Other resources:
Accelerating Adoption and Change Management for Teams & Remote Work

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Change Management in M&A Integration

Common ERP Organizational Change Management Challenges and Mistakes

Daniel Goleman Introduces Emotional Intelligence: Big Think

How to Create a Change Management Strategy that Delivers Business Results

How Organizational Change Management Empowered the Adoption of Microsoft Teams for 15,000
Employees

Kotter’s 8-Step Change Model Explained

Overview of Organizational Change Management in Digital Transformation

Top 5 Organizational Change Management Strategies | How to Manage Transformational Change

What is Organizational Change Management? Introduction to Change Management

Access to Course Material:
Students have access to textbook through ADSM library system by either borrowing it for two weeks
period or using the textbook in the library facilities in Villa 5 ground floor. Should students desire to
purchase the book, they may use purchasing channels (e.g. bookstores, online stores, etc.).
Although textbook is the core element of the course, course materials still demonstrate a diversity of
information gathered via multiple sources: other books, journals, case work, and other information
including blogs, articles, and the research in ADSM e-library that is available.
Students also have access to LMS in order to view and download the relevant course material throughout
the course.
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5.0 TEACHING PEDAGOGY
The course will be delivered through interactive lectures to help the students get clearer understanding
of the key theories, approaches and practices in the real world. Lectures will utilize the content and
approach of the materials listed in the syllabus. The course will consist of 45 contacts hours of lectures
and additional 10 hours are for in-class formative assessments and feedback on all other assessments.
It is important that graduate students prepare for class as per the instructor?s direction in order to be able
to discuss on the topics in order to formulate and to articulate their views and perspectives.
This teaching and learning strategy will be supported through the use of the Moodle e-learning resource
which will be used to host discussion forums, practice assessments, related reading, etc. ADSM considers
this approach consistent with the requirements of graduate study, and provides a very effective basis for
formative assessment, and encourages student engagement outside of class contact time. Enabling
debate and constructive evaluation promotes the students’ senses of self-confidence or self-efficacy about
applying skills and/or strategies in the future.
The summative assessments within the course will provide students the opportunity to conduct guided
research on a related topic in more depth and will be used to assess students? conceptual clarity and
analytical ability, as well as the student?s rational reasoning, knowledge, and analytical skill including the
clarity of concepts of the course learning outcomes.
ADSM pedagogical approach is characterized by;
?
harmony and consistency in program delivery

?
teaching and learning methods
?
feedback and monitoring progress
?
the use of technology in the learning environment
?
continuous enhancement.
5.1 Harmony and consistency in program delivery
ADSM has developed a well-defined model where course delivery standards are in place to provide
consistency across the program. However, there is careful attention given in aligning each
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individual course CLO and the associated teaching and learning methodologies including the type
of assessments. This ensures that the assessments fulfil the CLOs and enable the development of
critical and reflective high order thinking skills.
The selection and design of the program syllabi fulfil, and are in alignment with, QFEmirates Level
9 descriptors. Program courses, through their CLOs, provide graduate students with planning skills
to develop research projects using different approaches. Consequently, this allows students to
make fair and valid decisions that impact on their own organizations.
The teaching schedule articulates the teaching and learning expectations to be met by both faculty
and students. The course delivery is based on updated material aligned with the level 9 QFEmirates
requirement. This includes textbooks, journal articles, case studies, reports, and other teaching aid
that will provide students with required skills to formulate questions, plan research design
including the collection and analysis of research data.
One important aspect is the introduction and closing of a course. The first session focuses on
presenting the purpose of the course and the learning outcomes. This includes realistic examples
of industry best-practices to inspire and motivate students. Second, faculty explain the link
between the Course Learning Outcomes (CLOs) and the Program Learning Outcomes (PLOs). The
faculty clarifies how students will gain various strands of knowledge, skills and competences,
within the context of Level 9 of the QFEmirates Framework. In the last session of the course, the
students benefit from a holistic overview of the main ideas and concepts that were learned
through a range of integrated activities and identify the link to next steps in education and
employment. ADSM has designed consistency in classroom experience, technologies and
assessments. ADSM supports faculty academic freedom ensuring the student success. Through
consistent planning, monitoring and adjustments, the faculty team provides a harmonious learning
environment for students.
5.2 Teaching and learning methods
It is important for students to understand the requirements of the QFEmirates Level 9 framework
involving critical thinking skills, advanced knowledge and problem solving in complex
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environments. The student performance required at Level 9 should be clearly explained and
frequently reinforced.
ADSM recognize that its students learn best through a variety of active learning strategies. ADSM
embrace Adult Learning Theory (andragogy) as a recognized and well-respected approach to
developing and extending students? knowledge and understanding. Faculty use their skills to
determine the best match of the teaching and learning approaches to their courses. Students shall
participate in active learning activities during sessions. These activities need to be pitched to
address the Bloom?s Taxonomy higher order thinking comprising of Analyze, Evaluate and Create
levels in reflection of the QFEmirates level 9 strands.
Typical student-centered active learning methods include, but are not limited to, the following:
Cooperative learning, Assessing peer feedback, Critical evaluation of the literature, Critique on an
issue, Simulation, Case study, Problem-based learning (PBL), Performance tests, Video/Web-based
evaluation, Videotaped activity, Concept mapping, Critical appraisal, Survey, Thinking-Pair, Triads,
Breakout sessions, and One-Minute paper.
Lastly, faculty integrate students? work experience within their industries or org