Introduction

This presentation is based on Unilever case study. Its mainly deals with various strategic changes that
occurred in Unilever. As we know strategic change is a restricting of an organization business that is
typically performed to achieve an important objective. Therefore, I applied Balogun and Hope Hailey’s
Change Kaleidoscope to describe the strategic changes in Unilever before 2009. Then this presentation
contrasts the cultural web and how cultural changes were achieved, evacuation of Polmans leadership of
Unilever and Kotter`s 8 Change step model.

Question 1

Change Kaleidoscope was produced by Hope Hailey & Balogun (2002) to be a method for pulling together
and arranging the extensive variety of logical highlights and usage choices that require thought amid
change. In this sense Change kaleidoscope is even more a model than a strategy, however it is usable
instrument for conceptualizing the way of progress.

Time – Change is required moderately snappy and it is reactive in response to events such as people,
organizational structure and culture. The performance of organization was very bad, and it was one of the
worst companies to work for. Therefore, the feeling of earnestness as the association is in emergency.
Organization have a little time and need to change reactively.

Scope – The change will influence the entire organization as the progressive structure has been customized
and the authoritative structure has been compacted. Generally, the change is (revolution) transformational
as it occurs in many fronts. It is requiring major strategic and cultural change.

Preservation - The organization is ring fenced from radical changes, lessening the danger of a potential
emergency. The different scope of individuals inside the association makes a pool of aptitude sets and
creative change thoughts. The organization need to replace the CEO.

Diversity – Organization followed a strategy for many decades and its lead to very homogeneous way of
seeing the world. The organization need to remark the managers of the major divisions and locations.
There will be gathering supporting change and gathering which contradicts change. Diversity of views,
experience and opinions within organization can help to change the process. Everyone will be impacted in
the same way.

Capability – The capability of organization is high. They have good brands, leading global positions, strong
innovative capabilities and great organizational quality and values but still could be improved. The change
is very complex to manager because the CEO is reliant on skills and has no experience.

Capacity – The turnover of organization from 2004- 2008 grew far less that net profit. Investments to
support the change need it. There could have more slack in terms of managerial time.

Readiness - The shareholders has willingness to act.

Power - Objectives are adjusted and the business planning is top down. However, the stakeholders have
the ability to oppose change.
Question 2

According to Johnson (1992) Cultural Web is a useful tool for analyzing and altering assumptions
surrounding the culture of a company. It can be used to highlight specific practices and beliefs, and to
subsequently align them with company’s preferred culture and strategy.

Culture and Complicity (Richard Seel)

Bad People being sacked/ Heroes

Stories – There was criticism of Anthony Burgmans (Head of Unilever) from shareholders because if the
disappointing performance of the company. Table 1 shows that in 2006 Unilever was part of the lowest
third of the peer group. After the Polman`s arrival Unilever position in the peer group increased and it was
highest in 2009. According to Fortune Magazine in 2008 Unilever was not ranked in the top 50 of admired
companies. However, in 2015 rankings Unilever has risen to number 36. This allowed Unilever to promote
them self to get the best employees. All of these changes happened due to the new approach to the
strategy that was implemented by new CEO.

Table 1. Ranking in peer group between 2006-2014.

Rituals and Routines - Unilever companies and employees are required to routine employment contract
terms. Eco- efficiency performance is required the routine management report. Helping to get people
healthy habits by bringing new innovations to the market.

Symbols –Unilever is committed to make sustainable living commonplace and their logo is a visual
expression of that commitment.

Control system - the head of organization, performs all the control functions.

Power structure - Before 2009 regional managers had a high level of decision-making power. The change in
leadership structure, allowed Poulman to become the individual who hold the greatest influence over
decisions and generally have final say on major actions or changes.

Organizational structures- Unilever transformed its organizational structure from high decentralized
structure to a multi country organization with 22 regional centres. This change was supported by the
several projects. There are:

 Winning in the market place

 Winning with people

This change was achieved through the introduction of customer insight and innovations. The Unilever
provided staff with the opportunity for the self-development, enabling them to reach their full potential.

Question 2 part 1
According to Sabri (2007) Kotter’s eight step change model was introduced for planning implementing and
sustaining change. The Kotter model breaks down the organizational change process into eight steps:

Establish a sense of urgency

The stakeholders of Unilever had high sense of urgency for the change as the overall performance was bad.
Therefore, Unilever got new CEO on board with good leadership skills. Polman has organized new structure
with established stretch goals for everyone. Openly discussed the organizational weaknesses and strengths.
Polman understood the market threads and launched the Unilever Sustainable Living Plan in 2010
introduced a renewed business purpose which drew Unilever values. Paulmans showed that sustainability
is good for profitability, increasing turnover and reducing cost.

Create a Powerful Coalition

Polman knew that without the key players who has credibility, a change will fail. He succeeded Patrick
Cescau as CEO in January 2009. Also there was recruited new CFO , Chief Supply Chain officer and Chief
Legal officer.

Create a Vision for Change

Right from the start Polman stressed the importance of profitable volume growth. He detailed how
company could win in four ways:

 Winning with brands - faster and better innovations

 Winning in the market place – lead market development
 Winning with people – develop a team fit, place to succeed
 Winning through continues improvements

Communicate the Change Vision and Strategic Plan

To provide value strategic plan and vision of Unilever was clearly communicated through the organization.
The vision was applied to all aspects of operations from training to performance review.

Remove Obstacles

Unilever change leader who is main role are to deliver the change. Poulman recognize and reward people
for making change happen and it was ensured that organizational structure and performance in the line
with vision.

Create Short Term Wins

The targets in Unilever is very challenging and bonuses set according to performance. Most managers can
boost their income through sizeable bonuses.

Build on the Change

In 2015 there was signaled structurally lower growth rate, therefore Unilever should set the goals to
continue building on the momentum they achieved and analyze what went right and what needs
improving.

Anchor the Change in Corporate Culture

It is important that the company leaders continue to support the change. The Poulman need to create plans
to replace key leader of change. It will help to ensure that their legacy is not lost or forgotten. The Unilever
has created the values that help to hire and train new staff.

Question 3

Now I will evaluate Poul Polmans leadership of Unilever by applying Lynchs Five element model.

Developing and communicating the organization’s purpose

The purpose of Unilever is committed to make continuous improvements in management of the

environmental impact and to the longer-term goal of developing sustainable business.

Sustaining Competitive Advantage over time

Paulman stated about being more cost- competitive, there is a focus on short- term performance such as
cash flow, cost levels and market share. To support the objective the company has taken decisive steps.
Unilever has spent around 300m euro’s on improving product formulation. This resulted in over 90 per cent
of its formulation better than the competition in blind testing. The company invested in advertising and
promotion. The company started investing in supply chain capabilities and capital investment, with the aim
to transform an under invested, decentralised structure in highly efficient and more consumer-focused
global supply chain.

Managing human resources & organisational decisions

Poulman has change top level managers in Unilever by bringing some key talents.

Paulmans sharpened the performance culture, putting focus on winning consumers.

Poulmans provided opportunity to the staff to develop them self. The top international high-potential
personnel were traditionally trained at Unilever’s International Management Training Centre in Kingston
upon Thames, UK. However, in 2011 the Unilever Learning Academy was introduced, for e-learning and
classroom courses. In its first year, 128,000 employees followed one or more of the 7600 training courses
on offer. In 2013, the Global Leadership Training Centre in Singapore was opened. In the years before
Polman, budgets for employee development were an easy target when profit targets had to be reached.

Setting ethical standards

The Unilever Sustainable Living Plan sets out to decouple growth from environmental footprint,
while increasing positive social impact. Paulmans Plan has three big goals to achieve,
underpinned by nine commitments and targets spanning our social, environmental and economic
performance across the value chain.

Defining and delivering to Stakeholders

After Polman’s arrival, the organisation made changes to improve focus, speed and efficiency. As a
consequence, performance targets are clearer, more aligned and more differentiated. This helped
Poulmans to maintain good relationships with stakeholders.
References

Hope-Hailey, V., & Balogun, J. (2002). Devising context sensitive approaches to change: The example of
Glaxo Wellcome. Long Range Planning, 35(2), 153-178.

Johnson, Gerry, et al. Exploring Strategy, Pearson Education Limited, 2017.

Richard Seel. Organizational Culture: An Introduction, edited by Nasreen Taher, Hyderabad: ICFAI
University Press, 2005, pp 82-92.

Johnson, Gerry (1992) “Managing Strategic Change – Strategy, Culture and Action”. Long Range
Planning Vol 25 No 1 pp 28-36.

Sabri, E., Gupta, A. and Beitler, M. (2007). Purchase order management best practices. Ft. Lauderdale, Fla.:
J. Ross Pub.

Lynch, R., (2009) Strategic Management, 5th Edition, Prentice Hall.