LEAD FPX 5220 Assessment 2 Assessing Priorities and Planning for Change

Student Name

Capella University

LEAD-FPX5220 Leader as Change Agent

Prof. Name:

Date

Abstract

One of the primary benefits of a robust infrastructure is its ability to facilitate information flow throughout the organization. A strategic infrastructure minimizes inconsistencies and communication barriers that are often present in an organization’s structure, thereby fostering cross-functional and interpersonal communication. This paper will discuss how XYZ Corporation’s infrastructure was unsustainable from the outset. Altering IT infrastructure is comparable to renovating a house while still living in it—if not executed properly, it can lead to significant issues. A business relies on effective technology to perform its functions efficiently. An inadequately configured IT infrastructure can result in frustrated team members, decreased efficiency and productivity, and ultimately incur higher costs in the long run (Lazor, 2020). The paper argues that a strategic infrastructure is crucial for the organization’s success. The absence of such infrastructure led to chaos and resulted in a shutdown lasting several months. The paper concludes with recommendations for necessary changes and explains why these changes are vital for the organization’s current and future success, as well as how to sustain these changes.

Change Challenge

Change is an inevitable aspect of any organization; however, the manner in which an organization manages and responds to change can determine its success or failure. For the sake of anonymity, the company will be referred to as XYZ Corporation. As the Director of Finance in the gaming industry, I recognize that change is unavoidable, particularly concerning the games being published and produced. Numerous details are involved in preparing a game, especially an online game. The existing infrastructure was inadequate and established by employees lacking IT expertise. While the equipment was sufficient to support the few games we released initially, the need for upgrades became critical as we grew. Unfortunately, the leadership team did not perceive the urgency of this change.

At that time, we had three games in our portfolio and one data center that housed approximately four servers, routers, firewalls, storage systems, and server racks. About five employees were working during this period to launch the company. This data center was utilized for our games and internal operations. During our rapid growth in the early 2000s, our portfolio expanded from three to 15 games, and our workforce increased from five to 215 employees. XYZ Corporation offered games with high-quality content, exceptional customer service, and a cash shop that provided costumes, avatars, and equipment customization that our customers loved. The company’s sales surged from $500,000 in 2001 to $3.5 million in 2003, continuing to rise to $7.5 million in 2004. XYZ Corporation exceeded expectations and thrived until 2005.

In April 2005, we began receiving complaints from customers regarding server issues, such as connectivity problems, disconnections during gameplay, avatars not appearing on screen, and cash shop purchases not being delivered. Internal complaints also arose about the office server; emails ceased functioning, dedicated storage for office files on the network reached capacity, and users were unable to log in to the server to export data. This led to the deletion of merchant records, loss of three years of accounting data, and the erasure of completed projects from the creative and design departments. Without a backup server, there was no way to recover the lost data.

Factors Driving Change

The ability to navigate the continuous cycle of change is essential for any organization’s success. Change impacts everyone—every business, every industry, every day. The two primary forces of change are external and internal factors.

External Factors

Technology is a significant factor that drives change. In the digital landscape, organizations must upgrade their technologies to remain competitive within their industry. “An important prerequisite for a long-term and successful operation of any organization is the ability to predict events and the ability to adapt to market conditions” (Jan & Veronika, 2017, p. 5). XYZ Corporation lacked an experienced IT professional who understood the necessity and significance of new technology. Consequently, the company was forced to cease operations for six months and hire IT consultants to analyze and diagnose the existing IT infrastructure and implement a technological solution.

Internal Factors

A lack of vision from management is a critical factor that hinders organizations from achieving their goals and mission. Additionally, frequent changes in leadership can contribute to organizational change. New leadership often brings a new vision, strategies, and workplace culture. This shift in vision and strategy can also serve as a catalyst for change within the organization.

The Lack of Leadership

The absence of effective leadership has significantly harmed XYZ Corporation. There were no strategies in place to improve the current situation or to implement necessary changes within the organization. XYZ Corporation needs to invest in new technology and hire experienced personnel to propel the company forward. The inefficiencies in technology have placed XYZ in a precarious position, hindering its ability to gain momentum in the North American gaming industry. The leadership’s inadequate guidance in recognizing and seizing opportunities has cost the company millions in potential revenue. Their failure to think strategically has been a major shortcoming. By revamping their IT infrastructure and approaches, XYZ can overcome these challenges and achieve success. “People resist change as a defense mechanism since change of any type elicits some level of anxiety” (Staren & Eckes, 2013).

Readiness for Change and Heightened Awareness

Force Field Analysis Approach

Lewin developed the Force Field Analysis (FFA) as a systematic method designed to improve change management by generating a tactical approach (Mak & Chang, 2019). The FFA consists of five steps: (1) identify the planned change, (2) identify the driving forces that will facilitate change, (3) identify the restraining forces that will hinder change, (4) formulate strategies to promote driving forces, and (5) develop strategies to reduce or eliminate resisting forces.

Driving Force #1: The Digital Revolution

The lack of adequate equipment has made the digital revolution a significant driving force. Our customers expect uninterrupted gameplay, faster mainframe servers, and assurance that items purchased through the cash shop are delivered promptly. However, the restraining forces include the costs associated with new equipment and the lack of staff trained in new technologies. The impact of digitization on XYZ Corporation was profound, and leadership underestimated its effects. We relied on our servers to function at a capacity that exceeded expectations. The once affordable technology not only affected the gaming industry but also posed challenges for other companies. The deployment of computational resources that were previously accessible only to large corporations became a significant barrier for smaller companies. XYZ Corporation depended heavily on this equipment to publish and produce new games, create digital content, and manage the organization’s finances and operations. We needed to devise a strategy to restore our online presence.

Driving Force #2: Globalization

The absence of an executive mandate and a lack of trust in management have made globalization a driving force. However, the restraining forces include a lack of understanding of the company’s goals and insufficient incentives to transition from a domestic to a global mindset. Understanding the power and impact of globalization is crucial for every company to grasp the current and future effects of global trends on operations. Developing a globalization strategy can optimize learning opportunities through exposure to various markets worldwide and potentially extend the company’s reach to new customers (Morris, 2013). As a subsidiary of an international company, the leadership team failed to consider our customers in Asia, focusing solely on North America. This oversight was a significant error that contributed to our downfall in 2005.

Driving Force #3: Acceleration

Customer demands have made acceleration a driving force. Our customers expect changes to be implemented immediately, not delayed. However, the restraining force is the increase in our portfolio. According to Morris (2013), “the driving forces are mutually interdependent, and they feed off one another. As their impacts converge, the result is the potential for thoroughly disruptive acceleration and the amplification of their impact in a way that is decisive and inescapable” (p. 11). The significance of acceleration is evident in the growth of XYZ’s portfolio from three to 15 games and the increase in employees from five to 215 within four years. Change is occurring at such a rapid pace that management must reevaluate their thinking and operational strategies.

Recommendation

I recommend updating and upgrading the current technology with more robust equipment. The need for additional data centers is imperative as the business grows and expands globally. According to Dallas (2015),

Making Recommendations

Often, after collecting both formal and informal data, you may feel prepared to make a recommendation. It will be insightful and innovative, and you’ll be eager to propel your company into the future. However, when you present this idea to your superiors, you might receive a harsh reality check. They may tell you that it is unfeasible, too costly, or—if your idea is particularly strong—that it’s the “worst idea ever” (p. 27). XYZ Corporation has demonstrated its potential to be a significant player in the gaming industry and could further capitalize on opportunities by expanding its strategic thinking and adopting a more progressive approach. One of the most valuable assets of any corporation is its people. It is essential to invest in individuals who possess the skills and knowledge necessary to help the company achieve its five-year vision. Ensuring that the right people are in the appropriate positions will benefit XYZ Corporation both now and in the future.

References

Dallas, H. J. (2015). Mastering the challenges of leading change: Inspire the people and succeed where others fail. Hoboken: John Wiley & Sons. Retrieved from https://ebookcentralproquest-com.library.capella.edu/lib/capella/reader.action?docID=4043016&ppg=15

Jan, D., & Veronika, T. (2017). Examination of factors affecting the implementation of organizational changes. Journal of Competitiveness, 9(4), 5-17. doi:http://dx.doi.org.library.capella.edu/10.7441/joc.2017.04.01

Lazor, D. (2020, September 21). Lazor Point. Retrieved from https://www.lazorpoint.com/insights/bid/396690/it-infrastructure-matters-much-morethan-you-think#:~:text=One%20of%20the%20major%20advantages,cross%2Dfunctional%20and%20interpersonal%20communications.

Mak, A. H., & Chang, R. C. (2019). The driving and restraining forces for environmental strategy adoption in the hotel industry: A force field analysis approach. Tourism Management, 73, 48-60. Retrieved from https://www-sciencedirectcom.library.capella.edu/science/article/pii/S0261517719300123?via%3Dihub

Morris, L. (2013, July 18). Innovation Management. Retrieved from https://innovationmanagement.se/2013/07/18/the-driving-forces-of-change/