Leadstar College of Management and Leadership

Faculty of Business and Leadership

Assessing the Implementation of Change Management

Tools in an Organization: The Case of Ethiopian
Shipping and Logistics Service Enterprise

By

Kasach Tola Damissie

December, 2017

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Title Pages
ABBREVIATIONS.....................................................................................................................................2
CHAPTER ONE..........................................................................................................................................3
1.Introduction..............................................................................................................................................3
1.1. Background of the Study..................................................................................................................3
1.2. Back Ground of the Organization.....................................................................................................4
1.3. Statements of the Problem................................................................................................................5
1.4. Objectives of the Study.....................................................................................................................5
1.4.1. General Objective......................................................................................................................5
1.4.2. Specific Objectives....................................................................................................................5
1.5. Scope of the Study............................................................................................................................6
1.6. Significance of the Study..................................................................................................................6
1.7. Limitation of the Study.....................................................................................................................6
1.8. Operational Definitions of the Variables..........................................................................................7
CHAPTER TWO.........................................................................................................................................8
2. Literature Review................................................................................................................................8
2.1. Concepts of Change and Change Management.................................................................................8
2.2. Change Management tools Models.................................................................................................10
2.2.1. The planned approach to organizational change – Kurt Levin’s model of change...................10
2.2.2. The contingency model of change - Dunphy and Stace’s model of change.............................11
2.2.3. The McKinsey 7-S Model........................................................................................................11
2.3. Implementation of Change Management tools in an Organization.................................................12
CHAPTER THREE...................................................................................................................................14
3. Analysis of Data....................................................................................................................................14
3.1. Implementation of Change Management Tools in ESLSE..............................................................14
3.1.1. The Quality Service Circle.......................................................................................................15
3.2.2. The Balanced Score Card.........................................................................................................16
CHAPTER FOUR.....................................................................................................................................18
4. Conclusion and Recommendation.........................................................................................................18
4.1. Conclusion......................................................................................................................................18
4.2. Recommendation............................................................................................................................18
5. Bibliography..........................................................................................................................................20

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 ABBREVIATIONS

BSC: - Business Score Card

ESLSE: - Ethiopian Shipping and Logistics Service Enterprise

NGO: - Non-Governmental organization

BPR: - Business Process Reengineering

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 CHAPTER ONE

1. Introduction

1.1. Background of the Study

Organizational change management, as a distinct management practice, has been introduced to

the world of business around the middle of the 20th century. Since then, managers and
professionals have recognized that change management or “the approach to the transition of
individuals, teams and organizations to a desirable future state” [ CITATION Kot11 \l 1033 ], can and
should be an essential managerial skill, adding value and supporting the strategic management of
an organization. The stabilizing forces of competition have challenged the organizations capacity
to cope with the required organizational life. For this reason managing change effectively
requires an understanding of the types of change management tools that are suitable to a given
organizational behavior and adequate time that is needed for implementation [ CITATION Rad08 \l
1033 ].
According to [ CITATION Bee00 \l 1033 ], many organizations fail in their change initiatives
because some senior personnel tend to rush these initiatives in their organizations, losing focus
and becoming overwhelmed by the literature advising on why organizations should change, what
organizations should strive to accomplish and how organizations should implement change.
Thus, it can be argued that implementing change in both private and public organizations is no
easy task to accomplish. [CITATION Dun88 \l 1033 ] Emphasize that some public sector
organizations have deviated from the traditional norms of change management and are more
cognizant of the fact that turbulent and unpredictable work environments make change and chaos
the natural order of things. In light of these transitions, management needs to reconsider their
approaches to the organization, direction and motivation of all employees [ CITATION Daf04 \l
1033 ]. This is important because these organizations may need to move away from structures
that are hierarchical and mechanistic. Instead, they should be based on an equitable division of
labour and encourage control systems that symbolize democracy in an independent work
environment, all of which are understood by the employees [ CITATION Bur00 \l 1033 ].
This study assess the implementation of change management tools in an organization in
particular to the case of Ethiopian Shipping and Logistics Service Enterprise and gives clear

3
emphasis on the type change management tools the enterprise has been applied before and
pinpoint the limitation of this change and recommend the best solution that help to implement
better change tools as a business and profit organization. .

1.2. Back Ground of the Organization

The Ethiopian Shipping and Logistics Service Enterprise was established by the council of
ministers regulation number 255/2004 during November 2011 through the merger of the former
Ethiopian shipping lines share company, Ethiopian maritime and transit service enterprise and
the dry port administration. At the end of 2014 Commet transport Share Company which is
engaged in rendering road transport and dry port operation also additionally merged to the
ESLSE by the decision of the government. The enterprise (ESLSE), is a state owned company,
served as a carrier, render to its esteemed customers sea freight transport, stevedoring (at port of
Djibouti), freight forwarding and clearing, returning empty containers to Djibouti, dry ports full-
fledged services and warehousing etc. and conduct logistics and shipping transport services to
government organization, NGO, manufacturing sector, service sector, importer, exporter,
industrial organization, investor and other organization.

Following its merging progression the enterprise has started to implement change management
strategies by establishing change management division at the departmental level in its
organizational structure and the department expects to play a vital role in realizing change that
are essential to improve the enterprise service and its performance that make it competitive in the
current global tough market. The department has two main divisions and mentioned as change
management division, and organization and method division and 1 manager and 13 employees
are in charged to accomplish the tasks assigned to the department. Written historical reviews has
clearly shown that, during its merging the enterprise was used only one tool of the change
management that is top to down approach, which is commonly called BPR (Business Process
Reengineering) to form its organizational structure and design. But lately, business score card
and quality service circle has started to apply as a key change management tools strategy to run
all its operational and other tasks.

Depending on the above fact, this study assessed whether the implemented change management
tools used as a strategy helps to affect the organization positively or not and forward

4
recommendations based on the gaps identified that would possibly help the enterprise to advance
its service so that it would remain competitive enough in today’s global maritime industry.

1.3. Statements of the Problem

Today, organizations face rapid change like never before. Globalization has increased the
markets and opportunities for more growth and revenue. However, increasingly diverse markets
have a wide variety of needs and expectations that must be understood if they are to become
strong customers and collaborators. Thus, the ability to manage change, while continuing to meet
the needs of stakeholders, is a very important skill required by today's leaders and managers. The
same way for any organizational competitiveness intervention to be effective, change needs to be
managed properly. In general speaking, change management is a concept that denotes the
importance of managing human emotions and employee concerns when major changes are made
in an organization and out of the organization. Organizational change is undertaken to improve
the performance of the organization or a part of the organization and should not be conducted for
the sake of change only. Its efforts should be geared to improve the performance of organizations
and the people in those organizations. Therefore, it's useful to have some understanding of what
is meant by change tools and the various methods to manage performance in organizations.
Based on the above fact this paper prompt to assess the implementation of change management
tools in an organization in case of Ethiopian shipping and logistics service enterprise and discuss
briefly on how the enterprise manage its existing applied change management technique and
what problem is occurred during this change implementation, and come out with the best
amplification.

1.4. Objectives of the Study

1.4.1. General Objective

The main objective of this term paper is to enlighten the implementation of change management
in the organization in particular case of Ethiopian Shipping and Logistics Service Enterprise.

1.4.2. Specific Objectives

The specific objective of this term paper is:-
 To magistrate the types of change management tools that has been implemented by the
enterprise.

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  To articulate how the enterprise gives attention to implementation of its change
management tools in order to run its daily activities in today’s modern and dynamic
changing environment.
 To recommend best solution on how to use its current implemented change management
tools and the other best feasible types of tools for the enterprise.

1.5. Scope of the Study

The scope of this document is limited to give the best solution how the enterprise should cope up
with its current implemented change management tools to meet its desirable goals in the
international changing business environment.

1.6. Significance of the Study

Change management is particularly targeted on personal issues, with the intention to support the
realization and implementation of organizational, processual and technological driven changes.
Merger of some organizations is a revolutionary organizational change, which represents big
challenge for both management teams as well as the concerned employees. In situations like
this, it comes to changes in organizational structure, including changes in responsibilities and
competencies, processes and in some cases also systems. All this is considered by the concerned
employee as a potential chance and risk, which has to be managed accordingly by the
management[ CITATION Koe06 \l 1033 ] . One of the most fundamental steps in achieving the
successful implementation of change is that of obtaining a shared perception amongst those
affected, concerning their viewpoint regarding the issues and implications associated with the
change. The effective development and achievement of business strategies, depends upon
successful implementation of change management tools, which in turn is dependent upon the
effective management of the resulting change[ CITATION Pat08 \l 1033 ].
Consequently, the findings of this study provide an important input for the improvement of
Ethiopian shipping and logistics service enterprise to review its implemented change
management tools and examine the problem occurred with the implementation of this change.

1.7. Limitation of the Study

This study examine implementation of change management tools in an organization in particular
case of Ethiopian shipping and logistics service enterprise using the enterprise change

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implementation method. The findings and interpretations included in this research illustrated
based on the opinion of change management department employees and manager only.
Therefore, these data sources may not manifest the reality on the ground and it may subject to
misleading.

1.8. Operational Definitions of the Variables

Change management: - has been defined as ‘the process of continually renewing an
organization’s direction, structure, and capabilities to serve the ever-changing needs of external
and internal customers[ CITATION Mor01 \l 1033 ].
Change: - Change is a simple process. It occurs whenever we replace the old with the new.
Change is about travelling from the old to the new, leaving yesterday behind in exchange for the
new tomorrow[CITATION DeJ07 \l 1033 ].
Shipping: - The process of transporting an item, usually through the mail. Shipping is a very
basic, common way of getting an item from one place to another, or from one person to another
[ CITATION Bus17 \l 1033 ].
Logistics: - “Logistics is the process of planning, implementing and controlling the efficient,
cost effective flow and storage of raw materials, in-process inventory, finished goods, and related
information from point of origin to point of consumption for the purpose of conforming to
customer requirements[ CITATION Cou92 \l 1033 ]

Organization change: - It is a process in which an organization optimizes performance as it

works toward becoming its ideal state and occurs as a reaction to an ever-changing environment
or as a response to a current crisis situation[CITATION Jon04 \l 1033 ].
Organization: - organization is a social entity composed of people, goal-oriented, structured,
and open systems with identifiable boundaries[ CITATION Nad89 \l 1033 ]

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 CHAPTER TWO

2. Literature Review

2.1. Concepts of Change and Change Management

Before implementing change, it is essential to understand the reasons for it. The question why
does the company have to change is a problem that everyone running a company wrestles
[CITATION Hem04 \l 1033 ]. To lead change, it is crucial to become an expert in every single
change that is faced. People look for guidance and it is vital to find answers for the very basic
question "Is the Change necessary?" [CITATION DeJ07 \l 1033 ]. Furthermore, [ CITATION DeJ07 \l
1033 ] explains that there is no point in discussing any topic in defining the terms. It can be
defined in an easy way: change happens when something moves from one situation to another.
[ CITATION Sen99 \l 1033 ] Define change in business and organizations, as it refers on the one
hand to external change in term of technology, customers, competitors, market structure, or the
social and political environment, and on the other hand also refers to internal changes as for
instance program of reorganization or re-engineering.
[CITATION DeJ07 \l 1033 ] State that change is a simple process and also simple to describe. It
occurs whenever we replace the old with the new. Change is about travelling from the old to the
new, leaving yesterday behind in exchange for the new tomorrow. But implementing change is
extremely difficult as most people are reluctant to leave the familiar behind. According to this
view, change does involve moving from the known into the unknown and because the future is
uncertain it may adversely affect employees’ competencies, their sense of worth and coping
abilities. Thus, for change to be successful, it must involve amongst other factors, vision,
mission, communication, strong leadership, participation and culture.
According [ CITATION Daf83 \l 1033 ] Changes within an organization take place both in response
to business and economic events and to processes of managerial perception, choice and actions.
The main causes of change that give rise to change programmes being initiated can be classified
as follows [ CITATION Wil94 \l 1033 ]:-
 External causes of change can be as a result of changes in the level of technology used,
market place changes, customer expectations, competitor activities, quality and standards,
government legislation or political values, as well as changes in the economy.

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  Internal context of change relates to management philosophy, structure, culture and the
system of power control.
[ CITATION DeJ07 \l 1033 ] Propose some terms which could replace Change Management as
problem solving, leadership, innovation, making progress, implementation, transition
management and process improvement. Change Management is a systematic activity to prepare
an organization for and implement ongoing environmental changes in a business operation.
Change Management is about innovative strategies and speedy activities to deal with variable
and sudden changes[ CITATION wik17 \l 1033 ]. Generally, change management can address the
large part of a business operation from planning to controlling; i.e. organization and governance
structure, product development, customer satisfaction etc. Successful Change Management not
only improves the governance structure which needs to be changed, but also raises productivity
up to the maximum level by modifying and complementing the existing organization system.
Through these processes, the customer satisfaction can be done with a good image and benefit of
a business enterprise [ CITATION Joh01 \l 1033 ].
According to [ CITATION Rad08 \l 1033 ] Organizational change is the implementation of new
procedures or technologies intended to realign an organization with the changing demands of its
business environment, or to capitalize on business opportunities. Furthermore, they explain
Organizational change management is the process of recognizing, guiding, and managing these
human emotions and reactions in a way that minimizes the inevitable drop in productivity that
accompanies change. Organizational change management includes processes and tools for
managing the personal side of the change at an organizational level. Change Management: the
people side of change consists of three main phases including preparing for change, managing
change, and reinforcing change[ CITATION Hia03 \l 1033 ]. According to [ CITATION Hia03 \l 1033 ]
Preparing for change has three phases:-
Phase1:- includes preparing oneself and his team for managing the change and creating a high-
level management strategy.
Phase2:- Managing change includes the design of the organizational change management plans
and individual change management activities. This involves the planning and implementation of
communication plans, coaching and training plans, sponsor roadmaps, and resistance
management plans.

9
Phase3:- Reinforcing change, one assesses the results of previous phases and implements
corrective actions. They sum up as; organizational change management includes techniques for
creating a change management strategy by assessing the readiness, building awareness about the
need for change through unclogged channels of communication, and engaging senior managers
as change leaders to provide an effective sponsorship [ CITATION Hia03 \l 1033 ].

2.2. Change Management tools Models

A variety of models and theories exist in the literature for implementing change in public sector
and private sector organizations [ CITATION Car12 \l 1033 ]. Models of change, as opposed to
strategies of change, are best presented as basic frameworks that guide the strategies for change
to be implemented in the organization. According to [ CITATION Tic83 \l 1033 ], ‘the use of the
term “model” refers to a set of assumptions and beliefs which together represent reality.

2.2.1. The planned approach to organizational change – Kurt Levin’s model of

change
Lewin proposed a change model, which describes the necessary stages for successful change to
occur in three ways. [ CITATION Gil97 \l 1033 ]:-
1. Unfreezing the present level requires confrontation meeting or a process of re-education,
which might be achieved through team building.
2. Moving to the new level requires developing new behaviors, values and attitudes.
3. Refreezing the new level seeks to stabilize the organization at a new state of equilibrium
to ensure that the new ways are safe from regression.
According to [ CITATION Bra02 \l 1033 ], Lewin’s model of organizational change can be
accomplished in three ways:
 Changing the individuals who work in the organization (their skills, values, attitudes, and
eventually behavior) – with an eye to instrumental organizational change;
 Changing various organizational structures and systems – reward systems, reporting
relationships, work designs; or
 Directly changing the organizational climate or interpersonal style – how often people are
with each other, how conflict is managed, how decisions are made.

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2.2.2. The contingency model of change - Dunphy and Stace’s model of change
[ CITATION Dun92 \l 1033 ] Model of change is more situational in design and supportive of the
view that ‘that the selection of appropriate types of change depends entirely on a strategic
analysis of the situation’ ([ CITATION Dun921 \l 1033 ]. These authors also maintained that change
does not always occur on an incremental basis, but can also occur on a discontinuous basis. The
model developed by Dunphy and Stace includes both the formulation and implementation
requirements of various types of change and leadership styles. Their typology of change and
conditions for use is shown in Figure below:-
Incremental Change Strategies Transformational Change Strategies
Participative evolution Charismatic transformation
Used when an organization is in fit but Used when the organization is out of fit
when minor adjustments are needed; or the and there is little time for extensive
organization is out of fit but it has time participation. However, most employees
available to implement change. Key support radical change in the organization.
employees favor change.
Forced evolution Dictatorial transformation
Used when the organization is in fit but Used when the organization is out of fit
when minor adjustments are needed; or the and there is no time for extensive
organization is out of fit but it has time participation. There is no support for
available to implement change. Key radical change within the organization
employees oppose change. although radical change is important for
the survival of the company.
Sources: - Dunphy and Stace’s Typology of Change (Source: [ CITATION Dun921 \l 1033 ])

2.2.3. The McKinsey 7-S Model

According to [ CITATION Joh01 \l 1033 ]the 7-S model can be broken down into seven parts:
structure, strategy, skills, staff, style, systems, and shared values. The seven factors in the model
can be broken down as follows:

1. Shared Values (or Subordinate Goals): Located in the center of the model and
interconnected with the rest of the factors. Shared Values represent the core beliefs and
attitudes of the organization.

11
2. Strategy: Describes the general and specific plans for the allocation of resources over time to
achieve goals. Resources are scarce, so strategy is important for determining where they can
best be utilized.
3. Structure: Refers to the way in which organizational units relate to one another, regardless
of whether the company takes an approach that is centralized, decentralized, top-down,
bottom up, etc.
4. Systems: Specifies the procedures, processes, and routines that determine how work should
be accomplished. A large range of areas is covered here including financial systems,
recruiting systems, promotion and performance appraisal systems, information systems, etc.
5. Staff: Refers to the number of personnel in an organization, as well as their roles and titles.
6. Style: Identifies the cultural style of the organization, and the ways in which managers
behave in achieving organizational goals.
7. Skills: Describes the specific capabilities and proficiency of employees, as well as the
organization as a whole[ CITATION Joh01 \l 1033 ].

2.3. Implementation of Change Management tools in an Organization

Dunphy and Stace, argue that incremental and collaborative or consultative modes of change
implementation often generate conflicting views and ideas which are not always reconciled
[ CITATION Dun88 \l 1033 ]. For organizations to survive in the 21st century, they must shift from
traditional practices of management, as highlighted by [CITATION Kot96 \l 1033 ] to contemporary
practices characterized by attributes commonly described as vision, contemporary values, quality
mindset, stakeholder focus, speed orientation, innovativeness, flat structures, cross-functionality,
flexibility, global focusing, and networking [ CITATION Win99 \l 1033 ] . Bennis, identify four basic
Change Management strategies to implement change [ CITATION Ben \l 1033 ]:
 The empirical- rational can be conducted when people are led by their own interests and
a special need of communication of information is necessary.
 The normative-re-educative is a strategy of implementation focused on the norms and
values that people believed in. Organizations need to create a certain culture for the
company in this case.
 The power-coercive strategy is based on a strong leadership and authority. This strategy
can only be applied in case of extreme compliance of the followers.

12
  Environmental- adaptive: - This strategy can be implemented when people are ready to
adapt from an old organization to a new one. The resistance needs to be extremely low
because the change is deep.
Bennis also lists factors for organizations to be able to choose one of the fourth or a mix of the
strategies presented above. The larger the scope and scale and the target population will be, the
more organizations should implement a mix of the four strategies. According to [ CITATION
Bje7a \l 1033 ]there are six ingredients which are necessary for change in an organization:
 An awareness of that something is wrong
 Support from senior management of the notion that something has to be done
 A vision of something new or at least a feeling of a new direction
 Agents of change that take it upon themselves to carry changes through
 A commitment from all key actors to be there with their brains (to understand what it is
all about) and their guts (to dare to be part of a genuine change)
 Time
The idea of the[ CITATION Bje7a \l 1033 ] with this model is that implementation of change will not
be effective if one ingredient is missing.

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 CHAPTER THREE

3. Analysis of Data

3.1. Implementation of Change Management Tools in ESLSE

For change and change management to be implemented successfully in public sector
organizations, there is a need for: clear goals and strategies to achieve them; early and frequent
consultation with all stakeholders; establishing trust with all stakeholders; and using opinion
leaders to help promote change. Also, substantial reform takes time therefore existing structures
should be evaluated for their effectiveness before they are reformed or replaced [ CITATION
Ash01 \l 1033 ]. Thus, change needs to be viewed as a generative process that alters with the
need of the organization, one where employee learning and the change process are closely
interlinked. According to Carlos D., effective change requires a long-term commitment, an
understanding of the vision and a well-coordinated team inclusive of all stakeholders
[ CITATION Car121 \l 1033 ]. With regard to the successful implementation of change
initiatives, it must be noted that unlike private sector organizations, public sector organizations
are subject to the dominant political ideologies of the political party in power. The arrival of new
leaders into the public sector, often as the result of electoral cycles, frequently results in
organizational changes. These changes are introduced as a means of establishing a new leader’s
managerial style, often at the expense of repudiating previous organizational directions. All of
these have a profound bearing on change and change management. Employees, who are the
recipients of change initiatives, should not be excluded from the change processes because they
can make invaluable contributions to change initiatives in the organization [CITATION
Car121 \l 1033 ].
As stated above Ethiopian shipping and logistics service enterprise was used BPR (Business
Process Reengineering) during the merging process to design the organizational structure and
currently it has been implemented two change management tools to manage the ongoing work
process: i.e.
1. The quality service circle
2. The balanced score card

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Here below the fundamental definition and the implementation process of these two tools in the
enterprise are going to be discussed briefly.

3.1.1. The Quality Service Circle

Quality Circle basically is a volunteer group composed of members who meet to talk about
workplace and service improvements and make presentations to their management with their
ideas [ CITATION Pra11 \l 1033 ]. In this some groups of employees are formed for performing
some task and training is given to the groups in solving the problems and using the statistical
tools. The employees are encouraged for team work and motivated to work in cooperative
manner. These employees work in groups and for the effectiveness of the organization. These
groups find out the solutions for the quality and services which can be implemented in the
organization for obtaining better results. The members of the Circle are the employees who can
have influence in problem solving or to those members affected by the problems. They often
meet once a week, meetings that approximately last an hour. During the meetings, the members
of the Circle analyze the problems in details. After the frequent meetings, the members of
Quality Circles propose the solutions of the problems that are closely related to their daily
activities. In order to come up with the best problem solutions, the members have to attend the
induction trainings by using the newest methods and techniques [ CITATION Syl13 \l 1033 ].
According to Gaikwad, the objectives of the Quality Circle are: Cost reduction, to motivate the
employees, encourage for team work, to enhance the quality and productivity, to improve the
communication in the organization, to improve the quality of products and services, to build a
happy and meaningful environment, to develop a positive attitude and a sense of involvement in
the decision making processes, to contribute towards the improvement and development of the
organization, and to satisfy the human needs [ CITATION Gai09 \l 1033 ].

3.1.1.1. Implementation of the Quality Service Circle in ESLSE

The quality service circle in the enterprise has a one to five arrangement and it is supposed that
employees in the team meet weekly to discuss about the weekly plan and performances, service
improvements, good governance, problems associated with rent seeking, work skill and
efficiency, problems related with input, customer satisfaction and the like issues and all the
conclusion remarks presented to the respected manager for getting solution. And after all the
question and problem that cannot be solved by the respected manager (department head) is

15
submitted to CEO by the leader of the members for additional clarification(which has higher
work performance among the member) and accordingly the answer in every 15 days will be
given by the CEO office. The main problem during this meeting is the discussion does not
concentrate on how to bring change rather it mainly dealt with non-value added personal
agendas and it mostly abused by political leaders to attack their opponent. In most observation it
has been seen that, group members are derived in to conflicts that might end up with decrease
team work sprit that ultimately goes to the enterprises efficiency.

3.2.2. The Balanced Score Card

BSC includes financial measures that tell the effects of actions already taken. And it
complements the financial measures with operational measures on customer satisfaction, internal
processes, and the organization's innovation and enhancement activities- operational measures
that are the drivers of future financial performance [ CITATION Kap92 \l 1033 ] . The four
perspectives of BSC are Financial Perspective, Customer Perspective, Internal Business Process
Perspective and Learning and Growth Perspective.
Financial Perspective: It represents the long- term goal of the organizations- to provide superior
re-turns based on the capital invested in the unit [ CITATION Kap96 \l 1033 ] . Financial Measures,
has been the traditional method of analyzing organizational success and involves such elements
as profit-ability, sales growth, and revenue per sales visit. Although the BSC stresses the need to
incorporate additional measures to determine success, the need for Financial Measures is still an
extremely strong element to determine success [ CITATION Niv02 \l 1033 ].
Customer Perspective: Choosing measures for the Customer Perspective of the BSC depends
on the type of customers desired and the value that the organization provides to them [ CITATION
Niv02 \l 1033 ]. The purpose of the Customer Perspective is to focus on the target customers.
The Internal Process Perspective: It entails the procedures that an organization must develop
and master to be successful. Many organizations will concentrate on such elements as order
processing, delivery, manufacturing, and product development as examples [ CITATION Niv02 \l
1033 ]. The focal point of this perspective is related to the Customer Perspective because to keep
customers satisfied, an organization will need to focus on the components of the organization
important to them. To accomplish this, managers are undertaking a rigorous internal analysis not
only assessing the internal processes of the organization, but reviewing innovation since global

16
competition has decreased the amount of time organizations can bring their products to market to
be successful [ CITATION Bos07 \l 1033 \m Lev98].
Learning and Growth Perspective: According to [ CITATION Kap96 \l 1033 ] , this perspective is
the backbone to a successful scorecard because it involves employee skills and information
systems. Learning and Growth can include such issues as employee satisfaction, alignment of
employee skills with jobs, number of employee suggestions implemented, and hours of employee
training. Depending on the actual employee skills and desired employee skills, some
organizations change job descriptions, relocate employees to other departments, and/or
implement incentive programs designed to motivate employees to provide suggestions, receive
education or training, and/or gain tenure through continued employment [ CITATION Niv02 \l
1033 ].

3.2.2.1. Implementation of BSC in ESLSE

BSC has faced with many limitation such as; it neglects the time dimension, does not explain the
role of time in its cause-and-effect relationships, the lack of the validation (the reliance of BSC
on few measures and BSC lacks the mechanism for maintaining the relevance of defined
measures), the lack of the integration between top-levels and operational levels(its framework
encourages the focus on internal aspects), does not evaluate the significant changes in external
conditions and ineffective to corporate sustainability [ CITATION Hen02 \l 1033 \m Hun01 \m
Mar08 \m Moh04 \m Nor03 \m Tho03].
The enterprise follow a top to down approach of BSC in which the management plan and
cascade the plan to all divisions and individual based on the plan that has get approved by the
top management of the enterprise. And this is done once a year, obviously at the beginning of
every year. This tool contains the four perspectives i.e. (financial perspective, customer
perspective, internal process perspective and learning and growth perspective). The problem with
this tool in the enterprise is it usually takes lots of time for the top management to enable the
employees to come in to the same page. And engagement of employees in the planning process
is very limited, hence feeling of sense of ownership in the plan is not held by the employees even
at the mid of the year. Every change in the plan doesn’t communicate to the employees timely
rather the management chooses to impose it forcefully without preliminary arguments.
Secondly, the tool applied with those four perspectives may not fully focus to the general vision

17
of the enterprise, conversely it is filed with fragmented and unrelated issues that wouldn’t in
support with the strategic map of the enterprise.

CHAPTER FOUR

4. Conclusion and Recommendation

4.1. Conclusion
This study paper examines the implementation of change management tools in an organization in
case of Ethiopian shipping and logistics service enterprise. It pinpoints that how change
management tool has been applied in this organization and clarify by using different literature
and the change tools that have been implemented by the enterprise.
The enterprise implement two change management tools i.e. (balanced score card and the quality
service circle). The balanced score card is implemented from the top management of the
enterprise and cascaded down to the managers and individual employees while the quality
service circle has been implemented at the employees level and an employee’s member group are
meet weekly, discuss about planned and accomplished work, service improvements, good
governance and rent seeking problem, work skill and efficiency, problem of work materials
input, customer satisfaction, raise question and problem arose during the accomplishment of the
planned work in particular and an enterprise in general, and the raised issue goes up to their
managers and department head to be resolved if not resolved then delivered to the top
management (Chief Executive Officer) of the enterprise.

4.2. Recommendation
As stated above even if the enterprise implements two change tools, (BSC and Quality service
circle), it does not follow the rule and strategies of the change tools that has been implemented.
The enterprise run a serous of activities like shipping and logistics service which are broad and
wide. Depending on this fact it should implement the best change management tool that suit its
activities and daily task, and that do not waste times to run its operational activities.

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As shown above one of the change tools implemented by the enterprise BSC has faced with
many limitation such as; it neglects the time dimension, does not explain the role of time in its
cause-and-effect relationships, the lack of the validation (the reliance of BSC on few measures
and BSC lacks the mechanism for maintaining the relevance of defined measures), the lack of the
integration between top-levels and operational levels(its framework encourages the focus on
internal aspects), does not evaluate the significant changes in external conditions and ineffective
to corporate sustainability. The enterprise implement BSC from top to down that creates a gap
between top management and the employees which makes the organization bureaucratic and
hierarchical, which diminishes work spirit between manager and employees as well as decrease
the enterprise productivity and performance.
Based on this fact the enterprise should need to revise and assess whether the implemented
change is viable and follow the desirable implementation rule and regulation as well as
strategically applied to run its day to day activities and if possible look up for other best change
management tools models which take the enterprise to the center and improve its business
activity.
When it comes to quality service circle which is also known as one to five team, its intention is
more focused toward political consumption than change management and it used to marginalize
those employees who seems to be opponent to the management. Personal evaluations focused on
personal issue that doesn’t have any connection with the work. Therefore, the enterprise should
have given trainings for the employees about those change management tools and should make it
clear from any other unrelated issues that distress the members in the team. Secondly, the
enterprise should give clear solution and direction for those questions and problem rose by the
team members using formal meeting and should take remedial action based on the member’s
question.

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