PROJECT STUDY ON CHANGE

MANAGEMENT WITH REFERENCE

TO COCACOLA

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 TABLE OF CONTENT

CHAPTERS PAGE
CONTENTS
NO.
CH-1 INTRODUCTION 3
MODELS FOR
CH-2 CHANGE 18
MANAGEMENT
CASE STUDY
CH-3 23
INTRODUCTION
CH-4 IMPORTANCE 35

CH-5 KEY PRINCIPLE 38

CH-6 METHODS 45

CH-7 CONCLUSION 51

CH-8 RECOMMENDATION 56

CH-9 SOLUTION 61
FAILS IN CHANGE
CH-10 66
MANAGEMENT

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 CHAPTER-1
INTRODUCTION

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4
 INTRODUCTION

CHANGE MANAGEMENT:
Change management is a systematic approach to
dealing with the transition or transformation of an
organization's goals, processes or technologies. The purpose
of change management is to implement strategies for effecting
change, controlling change and helping people to adapt to
change
To be effective, the change management strategy
must take into
consideration how an
adjustment to
replacement will impact
processes, systems and
employees within the
organization. There
must be a process for
planning and testing change, communication change,
scheduling and implementing change, documenting change
and evaluating its effects. Documentation is a critical
component of change management -- not only to maintain an
audit trail should a rollback become necessary, but also to
ensure compliance with internal and external controls,
including regulatory compliance.
Change management (sometimes abbreviated as CM)
is a collective term for all approaches to prepare, support, and
help individuals ,terms and organizations in
making organizational change It includes methods that

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redirect or redefine the use of resources, business
process allocations, or other modes of operation that
significantly change a company or organization.
Organizational change management (OCM) considers the
full organization and what needs to change, while change
management may be used solely to refer to how people and
teams are affected by such organizational transition. It deals
with many different disciplines, from behavioral and social
sciences to information technology and business solutions.
As change management becomes more necessary in
the business cycle of organizations, it is beginning to be
taught as its own academic discipline at universities. There are
a growing number of universities with research units
dedicated to the study of organizational change. One common
type of organizational change may be aimed at reducing
outgoing costs while maintaining financial performance, in an
attempt to secure future profit margins.
In a project-management context, the term "change
management" may be used as an alternative to change
control processes wherein changes to the scope of a project
are formally introduced and approved
Drivers of change may include the ongoing evolution of
technology, internal reviews of processes, crisis response,
customer demand changes, competitive pressure, acquisions
and mergers and organizational restructuring.

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Managing the change process

Change management involves collaboration between all

employees, from entry-level to top-management.
Although there are many types of organizational changes, the
critical aspect is a company's ability to win the buy-in of their
organization's employees on the change. Effectively managing
organizational change is a four-step process
• Recognizing the changes in the broader business
environment
• Developing the necessary adjustments for their company's
needs
• Training their employees on the appropriate change
• Winning the support of the employees with the
persuasiveness of the appropriate adjustments

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As a multi-disciplinary practice that has evolved as a result of
scholarly research, organizational change management should
begin with a systematic diagnosis of the current situation in
order to determine both the need for change and the capability
to change. The objectives, content, and process of change
should all be specified as part of a change management plan.
Change management processes should include creative
marketing to enable communication between changing
audiences, as well as deep social understanding about
leadership styles and group dynamics. As a visible track on
transformation projects, organizational change management
aligns groups' expectations, integrates teams, and manages
employee training. It makes use of performance metrics, such
as financial results, operational efficiency, leadership
commitment, communication effectiveness, and the perceived
need for change in order to design appropriate strategies,
resolve troubled change projects, and avoid change failures.

Factors of successful change management

Successful change management is more likely to occur if the
following are included:
• Define measurable stakeholder aims and create a business
case for their achievement (which should be continuously
updated)
• Monitor assumptions, risks, dependencies, costs, return on
investment, dis-benefits and cultural issues
• Effective communication that informs various stakeholders
of the reasons for the change (why?), the benefits of
successful implementation (what is in it for us, and you) as

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 well as the details of the change (when? where? who is
involved? how much will it cost? etc.)
• Devise an effective education, training and/or skills

upgrading scheme for the organization

• Counter resistance from the employees of companies and

align them to overall strategic direction of the organization

• Provide personal counseling (if required) to alleviate any

change-related fears
• Monitoring implementation and fine-tuning as and when

required
Reasons for failure
Research into change management has identified a number of
reasons why change might fail
• Inappropriate executive sponsorship, in particular where
the executive sponsor does not have a sufficiently senior
position withth the organisation Starting on a solution
before the underlying problem [that requires the change] is
fully understood
• Failure to spend time on systematically analyzing the
people and styles that are involved
• Jumping to a solution to the problem(s)
• Failure to validate the proposed solutions
• Failure to plan for certainty
• Failure to communicate what is happening and why
• Failure to define measurable outcomes and way-points
• Absence of strong governance in place, particularly around
dependencies
• Not dealing properly with risk and contingency
• Lack of a clear sense of urgency when warning signs are
clear
• Lack of shared commitment and leadership

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• Lack of ability to recognize obstacles to the vision
• Lack of planning for and creating short-term wins
• Poor anchoring of changes within an organisation's culture.
• Change fatigue

WHAT IS ORGANIZATIONAL CHANGE

MANAGEMENT
Organizational Change Management (OCM) is a
framework for managing the effect of new business processes,
new technology, shifting economic landscapes, or changes in
organizational structure and culture within an enterprise.
Simply put, OCM addresses the people side of change.
A project can be any type of change in an organization that
addects its' people resource. OCM addresses three core areas
in any project: communication, training and change readiness.
o OCM Communication focuses on solid two-way

communications through all levels of the

change. In today’s information-heavy workplace,
people quickly are inundated with
communications that are too frequent and unclear
thus making change even harder. OCM focuses on
getting the communication simplified, clear, and
right the first time. It also focuses on all levels of
communication from the executives, sponsors to
frontline employees.
o OCM Training focuses on assessing the new skills

and knowledge needed by those adopting the

change or managing the change
and ensuring training is delivered in a timely and
effective manner. Every project is different and
every group of end users is different, so OCM

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 focuses on getting the right training, in the right
way, to the right people to ensure a successful
project.
o OCM Change Readiness seeks to understand why

people work and behave the way they do in order

to help them in any transition they experience at
work. OCM actively seeks to understand the level
of readiness of the people impacted by the
change. In addition, OCM Change monitors areas
of risk and resistance and deals with them head-on
to elevate project outcomes and successes. OCM
recognizes every person in an organization is also
an individual and brings with them experiences
and background that can be helpful to the change
effort. OCM understands the impact of change
to individuals and by leveraging the change
methodology and tools identifies ways to
support them throughout the process.
Definition of change management :
According to Lewin, Change for any individual or an
organization is a complicated journey which may not be very
simple and mostly involves several stages of transitions or
misunderstandings before attaining the stage of equilibrium or
stability.
Kurt Lewin’s Three Stages model or the Planned Approach to
Organizational is one of the cornerstone models which is
relevant in the present scenario even.
Lewin, a social scientist and a physicist, during early 1950s
propounded a simple framework for understanding the
process of organizational change known as the Three-Stage
Theory which he referred as Unfreeze, Change (Transition)
and Freeze (Refreeze)

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EXAMPLE :
For explaining the process of organizational change, he
used the analogy of how an ice block changes its shape to
transform into a cone of ice through the process of unfreezing.

Stage 1 - Unfreezing: This is the first stage of transition and

one of the most critical stages in the entire process of change
management. It involves improving the readiness as well as
the willingness of people to change by fostering a realization
for moving from the existing comfort zone to a transformed
situation.
It involves making people aware of the need for change
and improving their motivation for accepting the new ways of
working for better results. During this stage, effective
communication plays a vital role in getting the desired support
and involvement of the people in the change process.
Stage 2 - Change: This stage can also be regarded as the
stage of Transition or the stage of actual implementation of
change. It involves the acceptance of the new ways of doing
things. This is the stage in which the people are unfrozen, and
the actual change is implemented.
During this stage, careful planning, effective
communication and encouraging the involvement of
individuals for endorsing the change is necessary. It is
believed that this stage of transition is not that easy due to the
uncertainties or people are fearful of the consequences of
adopting a change process.

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Stage 3 - Freeze (Refreezing): During this stage, the people
move from the stage of transition (change) to a much more
stable state which we can regard as the state of equilibrium.
The stage of Refreezing is the ultimate stage in which
people accept or internalize the new ways of working or
change, accept it as a part of their life and establish new
relationships.
For strengthening and reinforcing the new behavior or
changes in the way of working, the employees should be
rewarded, recognized and provided positive reinforcements,
supporting policies or structures can help in reinforcing the
transformed ways of working.

The three stages of Change Management can be aptly

explained through the aid of an example of Nissan Motor
Company which was on the stage of bankruptcy due to the
issues of high debts and dipping market share.
During that period, Carlos Ghosn took charge as the
head of the Japanese automaker who was faced with the
challenge of implementing a radical change and turning
around the operations of Nissan, yet by keeping the resistance
to change under control which was inevitable under such
circumstances by forming cross-functional teams to

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recommend a robust plan of change in different functional
areas.
For facing the business challenges, he developed a
change management strategy and involved the employees in
the process of change management through effective
communication and reinforcement of desired behavior.
For refreezing the behavioral change of the employees, he
introduced performance-based pay, implemented an open
system of feedback for guiding and facilitating the employees
in accepting the new behavior patterns at work.
According to Branch (2002, p. 4), Lewin’s change
management model can be implemented in three ways:
1. Changing the behaviour, attitudes, skills of the
individuals working in the organization.
2. Changing the existing organizational structures, systems
and processes
3. Changing the organizational climate, culture and
interpersonal style.
Lewin’s model stressed on the interdependence of various
units as well as subunits in an organization.
This model assumes that organizations function under
static conditions and move from one state of stability to
another state of stability in a planned way, but the present day
organizations function in turbulent scenarios and uncertain
business environments.
Furthermore, several critics criticized Lewin’s planned
approach to change management for the following reasons:
• It was criticized for being too simple and mechanistic, as

a result of which it may not be applicable for the

present organizational scenario.

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 • Lewin’s Planned change model fails to take into
consideration the radical or transformational change; it
is only useful if incremental change is implemented in
an organization
• This model ignores the role of Power & Politics and

conflicts. Moreover, it ignores the importance of

feelings and experiences of employees which play a
crucial role in the entire change process. The model is
very plan or goal driven.
• This model supports top-down approach to change

management and ignores the importance of bottom-up

approach in the change management process.

Lewin’s Force Field Analysis

Kurt Lewin’s Force Field Analysis attempts to explain how

the process of change works by diagnosing the driving and the
restraining forces that lead to organizational change.
One side of the model represents the driving forces, and
the other side represents the restraining forces. The driving
forces push the organizations towards the new state, and the
restraining forces are the factors which provide resistance to
change or are regarded as the behaviors of the employees that
block the process of change.
According to Lewin, stability can be achieved when both
the driving and restraining forces reach a stage of equilibrium,
which should be approximately of equal strength from the
opposite directions.
According to the Force Field Analysis model of Kurt
Lewin, effective change happens by unfreezing the existing
state of affairs or the current situation, moving to a changed or

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a desired situation and then refreezing for making the change
relatively permanent.
During the stage of Unfreezing, the driving forces should
be made stronger to motivate a change in the behaviour or
ways of working, while the restraining forces should be made
weaker or removed.
Driving forces create a sense of urgency for the
change. The driving forces from the external environment
could be Globalization, Technological Development and IT
revolution, changes in the workforce, etc.
Apart from this, the driving forces may originate within
the organization through the efforts of the corporate leaders.
Any change process should start with informing the
employees about the influence of the external driving forces
like competitors, changing trends in the consumer demands
and preferences, regulatory compliances and various other
factors. Apart from this for implementing change effectively,
the restraining forces should be reduced or removed.
The restraining forces or the resistance from the
employees can be controlled by way of effective
communication and involvement of the employees in the
process, training initiatives for strengthening the new set of
knowledge and skills, implementation of stress management
techniques to help employees in coping with the stressors,
negotiation for ensuring compliance and the last method is
implementation of coercive measures if all the other measures
fail and the need for change is urgent in nature.

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 CHAPTER-2
MODELS FOR CHANGE MANAGEMENT

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Popular models for managing change :
Best practice models can provide guiding principles and
help managers align the scope of proposed changes with
available digital and non digital tools. Popular models include
the following:
.ADKAR.

The ADKAR model, created by Prosci founder Jeff Hiatt,

consists of five sequential steps:
1. Awareness of the need for change;
2. Desire to participate and support the change;
3. Knowledge on how to change;
4. Ability to implement desired skills and
behaviours; and
5. Reinforcement to sustain the change.

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.Bridges' Transition Model : Change consultant William
Bridges' model focuses on how people adjust to change. The
model features three stages: a stage for letting go, a stage
of uncertainty and confusion and a stage for acceptance.
Bridges' model is sometimes compared to the Kübler-Ross
five stages of grief -- denial, anger, bargaining, depression,
and acceptance

. IT Infrastructure
Library (ITIL):
The framework offers detailed guidance for managing
change in IT operations and infrastructure. It is owned by
Axelos, a joint venture between Capita and the U.K.

Cabinet Office

. Kotter's 8-Step Process for Leading Change:

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 Harvard University professor John Kotter's model has
eight steps:
6. Create a sense of urgency.
7. Build a guiding coalition.
8. Form a strategic vision and initiatives.
9. Enlist a volunteer army.
10. Enable action by removing barriers.
11. Generate short-term wins.
12. Sustain acceleration.
13. Institute change.

• Lewin's Change Management Model:

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 Psychologist Kurt Lewin created a three-step framework
that is also referred to as the Unfreeze –Change -Refreeze

• McKinsey 7-S:
Business consultants Robert H. Waterman Jr. and Tom
Peters designed a model to look holistically at seven
factors that affect change:
1. shared values
2. strategy
3. structure
4. systems
5. style
6. staff
7. skills

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 CHAPTER-3
CASE STUDY INTRODUCTION

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INTRODUCTION:
The history of Coca-Cola organization is traced down to a
pharmacist, John Pemberton who formulated coke in 1886 at
his lab. Founded in Atlanta, America, it is now a brand that is
found “everywhere”, with a value of 78.1 billion and an
employee strength of over 90,000 people. In 2013, Coca-cola
had its presence in over 200 countries globally with over 1.8
billion servings every day. (Elmore, 2013) This study captures
major organizational changes that happened in the coca
bottling company during the pandemic, the triggers, and
processes of change for employees, consumers, and the
management teams, the outcome of these changes as well as
recommendations for future references.

Scope of the study

This will focus on Coca-Cola employees, consumers, and
management teams during the pandemic period; the process of
adaptation, and their weak and strong responses to change
during this period. The research is limited to the existing
literature as well as conducting interviews and surveys with
employees and consumers of Coca-Cola Bottling Company.

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Purpose of the study
The purpose of this study is to critically identify the weak
and good practices of managing change in Coca-Cola Bottling
Company during the pandemic as well as the outcome of these
identified practices. To explain in more detail, this study also
involves the comparison of a similar organization- Big Cola to
identify the importance of managing organizational changes
during critical times such as the pandemic

Background of the study

Coca-Cola is a multi-billion-dollar company with over
90,000 employees in 200 countries globally; in 2013, Coke
sold at least 1.8 billion servings every day, leaving the
organization as the fifth most priced brand in the world at 78
billion USD (Elmore, 2013).

Methodology
Research methods implored for this study include primary
and secondary methods with a collection of data through
designed interviews and surveys for Coca-Cola employees,
consumers, and distributors, collection of data through
existing interviews with stakeholders in Coca-Cola and Big
Cola company as a competitor, reading and collecting data
from existing literature to fulfill the goals and objectives of
the study. This will enable the researcher to gather concrete
and first-hand information that are realistic changes and
adaptations to changes in Coca-Cola during the pandemic.

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Coca-Cola’s Distribution Strategy
The general perception of Coca-Cola’s distribution
channel was that they produced from a central source and
distributed far and wide to different countries and
communities. According to Maraskolhe, Coca-Cola leverages
local distribution channels where they engage bottling
partners who produce and serve their localized audiences,
engaging bottling partners who sell to wholesalers and retail
stores like gas stations, restaurants, corner stores, super stores,
and more. Coca-Cola engages over 250 bottling partners
globally while all their products are sold in over 200 countries
with about 1.9 billion servings every day. Coca-Cola,
however, does not own all these bottling centers and the rights
to manufacture and distribute their products and brands, they
support their distributors with marketing and promotions with
large sums of money channeled for that singular purpose.
(Maraskolhe, 2022).
Coca-Cola, in a bid to continue ensuring its products get
to diverse locations, keeps making changes to expand to a
large market set. This means that as soon as they observe a
new market opportunity, they affect changes and adapt
immediately by expanding their already robust distribution
system (Barbara, 2014). An example of such an instance is
detailed in an interview with a Coca-Cola retailer, Oluwasayo
who mentioned that Coca-Cola gives her brand new fridges
for free and supplies her with their products alongside; with a
mutual understanding that she cannot put any other drinks in
that fridge or theirrestaurant apart from their products with the
assurance that they would constantly supply all their products
to her on her request as well as give her additional

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promotional items such as table mats, umbrellas for her
customers and a Coca-Cola customized billboard for her
corner shop. To support its distributors, Coca-Cola does also
is to play a significant role in pushing sales by advertising
strategically, from branding on cups at Baseball games to
Mom-and-pops shops to other advertising platforms. (Barbara,
2014). Elmore adds that they have an incredibly high
6 budget for the advertising of about 3.3 billion dollars every
year making it 33.6 billion dollars at 33 percent of the
organization’s net profit.

Coca-Cola’s Current Strategy

In 2019, when the Covid-19 pandemic heightened with
most countries shutting down inperson/physical
communications, making businesses slow down in sales and
giving them only a short time to either reinvent themselves or
let the pandemic crush them. Kevin Snider, described the
pandemic period as a “difficult situation” and has caused
major changes in the world such as a drastic reduction in retail
shopping but has also encouraged organizations to make
major changes such as contactless delivery- for example,
delivering food to customers without having physical contact
with them. (CNBC, 2020) Organizations began to reinvent
themselves by adapting to these changes and responding to
the changes in their various teams. From changes among
employees and consumer behaviour towards products to
operating processes and distribution channels, a lot of changes
were made.

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Coca-Cola CEO, James Quincey shared his concerns about
the changes that Covid-19 had triggered and how Coca-Cola
was making changes to this effect. He talked about new ways
their products are packaged and merchandised but still
reiterated the essence of ensuring that employees are safe by
introducing the changes in work timings- working from home,
handling inter-organizational communications via virtual
meetings, etc. But one very strategic move by Quincey is his
being deliberate in positioning himself in places where
economic decisions are being made because such decisions
always affect businesses globally directly or indirectly.
Quincey, being part of such councils or bodies, such as
working directly with Donald Trump on the Economic
Revival Council in 2020 would mean that he was part of
decisions taken as well as prepared to announce changes,
prepare for changes and enable 7 his organization, Coca-Cola
to quickly adapt to such external changes even before their
competitors. (CNBC, 2020)

The Route to Market Model

In an eye-opening interview with Olakunle, a Coca-Cola
employee explained the path to adapting to change at the
organization. He called it the Route to Market model (RTM).
Although this model was introduced around 5 years ago, it
went into full implementation in 2020 which was the peak of
the pandemic. The Route to Market model is turning the
strategy of the organization into executing sales at all points.
They strengthen their strategy in this model by partnering
with customers to continuously bring Coca-Cola’s portfolio to

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the doorstep of consumers with better proficiency (Coca-Cola
HBC, 2022).
Olakunle also added that the RTM model included different
ways of getting the products to the markets i.e., optimizing the
capacity of distributors, ensuring all distributors meet a
certain requirement to accommodate a capacity of 40,000
cases of drinks or 10 trucks of products that can last them for
at least 5 days and the storage capacity of these LDPs (Legal
Distributor Partners). Distributors are also bonded by legal
agreements that limit them to distributing products to a
limited area of concentration. The RTM model also had a
technology-designed platform where they could track sales of
distributors from their facilities. Drivers were also monitored
on the platform, showing the driver’s start and end delivery of
products, it also recorded and monitored requests from
customers, and it tracked and displayed it to guide drivers to
deliver goods. This was a breakthrough for the changes that
the pandemic triggered in Coca-Cola. The RTM model was
successful and increased profitability for NBC even during the
lockdown when other organizations had the challenge of
delivering products. The RTM model monitored progress,
sales, and milestones, and boosted engagement with
consumers.

Distributors’ Experiences in Comparison with Coca-

Cola’s Competitor- Bigi Cola
The reaction of the Legal Distributing Partners also
reflected positivity in sales as Ejiro gave insightful
information about the position of LDPs like her. She said that

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the support she receives from Coca-Cola enhances her sales
far above other similar products that she had distributed.
Being a past distributor for a Bigi-Cola, she said that she
was forced to buy products of Bigi Cola that was not really
moving in the market and that her customers would often
select their favourite products of Bigi Cola, leaving her with
the least preferred products and as such, she could not restock
her depot. She also recounted her experience of being required
to deposit her investment at Bigi Cola and having to wait for
up to 3 weeks before she received her products. These are
clear reasons why Ejiro could not keep up with Big Cola,
Coca-Cola’s competitor in Nigeria.
On the contrary, Adunni, another distributor of Coca-Cola
since 2013 had a different perspective of distributing for the
organization; she distributed all available products of Coca-
Cola consisting of Coke, Fanta, 5 Alive, Pulpy Orange, and
Coke Zero (Diet Coke). During the pandemic, Adunni noted
that the Coca-Cola suppliers forced her to stock less preferred
products such as the pulpy orange and diet coke during the
pandemic but one way they supported her was by sending
their sales representatives to pick products from her and
delivering them to all her customers. These sales
representatives were also marketing the Coca-Cola products
and supporting in other ways. Adunni mentioned that in 2013,
she also distributed for other competitors of Coca-Cola such
as Pepsi, Big Cola, Chi products, etc. This did not continue
once the RTM model was launched with the LDPs.
The RTM model improved on the support that
distributors like Adunni and Ejiro, sales reps who advertised

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and marketed their products to wholesalers and retailers
within their coverage area were always deployed to them.
The RTM model differentiated Coca-Cola and made them
more popular during and after the pandemic due to these
changes it made
Financials/Staffing/Size of Business
From accidentally formulating a drink in 1886 to becoming
an organization with a net worth of 230 billion dollars in
2022, Coca-Cola’s net income is one very interesting way to
observe how fast they have grown and are still growing. In a
report given by the CEO, James Quincy in 2019, the
organization recorded a net income of 8.92 billion dollars
which was a 38.64% increase from 2018. (Yahoo Finance,
2019). But in 2020, the net profit declined by 13.15% to 7.747
billion dollars and this was due to the coronavirus pandemic
resulting in a total shut down of many countries and activities
that would have triggered sales for them.
In the same 2020, Coca-Cola joined a list of other big
organizations laying off staff because of a decline in sales.
According to Reuters News, the sharp decline in sales was
because by the closure of restaurants, corner shops, bars,
cinemas, and even football games and this triggered a need for
them to make such changes such as staffing cut downs,
cutting expenses that were related to employees and
announcing volunteer program opportunities. (Reuters, 2020).
But this was not the submission of Olakunle, a Commercial
Manager at Coca-Cola, Port Harcourt under the Nigerian
Bottling Company. According to Olakunle, the pandemic
triggered a change that even they are happy with- the RTM

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model, reiterating that the RTM model was a sales booster
and tracker that made work easier for them during the
pandemic. Although he also mentioned that there were cities
where the movement was restricted for a period when the
restrictions were lifted, they still made sales that covered up
for the days that they were forced to be indoors (Olakunle,
2022
In April 2020, James Quincey in a separate interview
confirmed the news of Coca-Cola’s 25% volume decline
globally due to the pandemic but the changes that they made
internally helped them boost their sales and net profit in the
next years.By 2021, Coca-Cola already recorded its net worth
with an increase of 25.28 percent at 38.66 billion dollars.

CASE STUDY ON COCA COLA COMPANY:

According to a Greek philosopher Heraclitus “there is
nothing permanent than change”. He believed that change is
the core of universe. This quote describes the importance of
managing change in human as well as organizational life.
A structured approach to transfer organization, its
people and processes from current state to a desired future
state is called change management. This process gives
employees the ability to accept changes in the existing
environment of the business. Change can be of different type

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for example, change in technology, operations or strategies
etc. company needs to implement individual strategies to cope
with each type of change.
Organizations need to change and adopt dynamic
survival strategies to stay alive in uncertain political, social
and economic environment (Hiatt and Creasy, 2003). All
environmental factors present in the nature experience change
on continuous basis. Human nature resists change, so
managing that resistance requires well planned change
management strategies.
This report is aimed at describing the importance of
change management for organization its motives and
objectives, change management processes, how company can
involve all the stakeholders for successful implantation of
change management and the strategies that an organization
can adopt to implement the successful change.
REASONS FOR ADPOTING CHANGE:
Organizations need change for the following reasons:
• To respond to the rapidly changing environment
• To improve the overall performance of the company
• To rapidly respond to the customers’ demands
• To improve the effectiveness and efficiency
• To increase the employee performance
• To create the best practices inside the organization and
setting standards for the industry
• To improve profitability and return on overall investment
Change management is needed for organizational survival.
So the company should adopt to change management
techniques in order to maintain its worth in the industry.

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 CHAPTER-4
IMPORTANCE OF CHANGE
MANAGEMENT

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IMPORTANCE OF CHANGE MANAGEMENT:
In a study 327 project managers had responded to the
question that “if you had a chance to do it again, what would
you do differently?” Most of them responded that we will
implement an effective change management program planned
way before starting the project. This study highlights the
importance of change management in an organizational
perspective. Change management moderates the risks that can
cause failure (Jeff and Creasey, 2003).
Founded in the late 19th century, the Coca-Cola Company
has been through many change management challenges. For
example in the 1980s, as competitor Pepsi started aggressively
targeting Coca-Cola, the company decided to release New
Coke, a sweeter soda.
New Coke didn’t end up appealing to the public, and
Coca-Cola quickly
responded by
deciding to replace it
with the older
formula. Coca-Cola
was able to respond
quickly to consumer
preferences to
maintain its product’s
appeal.
Similarly, Coca-Cola
stayed proactive
during World War II.
By offering free
drinks for GIs, the
company marketed

34
itself as a symbol of the US war effort whilst boosting product
recognition in destination countries the allied forces were
occupying. In the process, it cemented its presence through 64
additional manufacturing sites across the world, which
accelerated the company’s post-war global expansion
strategy.
Coca-Cola has continued to adapt its strategy proactively
in recent years. For example, Coca-Cola has released new
products like Enviga, Diet Coke, and Coca-Cola Zero in
response to greater health consciousness. During the Asian
financial crisis, the company pursued an acquisition strategy
to better deal with changing consumer preferences.
The Coca-Cola Company, by reacting quickly and acting
proactively in anticipation of changing trends and consumer
preferences, makes change management a part of its overall
strategic vision.

35
 CHAPTER-5
KEY PRINCIPLES OF SUCESSFUL
CHANGE

36
4 KEY PRINCIPLES OF SUCCESSFUL CHANGE
MANAGEMENT TO IMPLEMENT TODAY
So change management is clearly essential to any business
seeking to stay competitive, but how do you go about it? The
following are 4 of the top principles to keep in mind.

Support your HR team

HR teams play a critical role in change management. Your
HR team needs the right tools and innovative approaches to
help manage change.
Executive buy-in
Make sure you have strong and effective executive buy-in
or sponsorship for the change process. Without leadership
getting on board, the change management process could be
chaotic and it could even fail.

37
Create a great plan
Work to a a detailed, well-drafted change management
plan. The plan should make clear all roles and responsibilities.
It should clarify reasons for the change project and include a
strategic communications plan to get everyone on board.
Appoint an acquisition committee
The committee’s role is to help streamline change
management. The committee should have at least one person
from each of the following: HR, IT, finance, and operations. It
should also have an employee advocate or team lead.
Why is change management important for your business?
Trends like disruptive technologies and new ways and
tools for achieving tasks mean organisations in all industries
operate in a state of flux. Effective, ongoing change – through
successful planning, implementation, and guidance of change
initiatives – can be vital for ensuring businesses stay on the
cutting edge. So leveraging new technologies typically
requires effective change management, but so may non-
technological changes like mergers, acquisitions or changes to
support a shift in strategic direction.
Getting your people on board for any modifications in
their roles and workplace is known as the soft side of change
and is the most difficult and important aspect of change
management because everything rests on your teams buying
into the change. Hence change management arms you with the
processes, tools, and techniques to help you manage the soft
side of change – your people – to achieve your desired
business outcomes.
With effective change management, you can avoid the costs
of poor change management:
Unnecessary productivity declines

38
Low employee morale
Lack of manager and stakeholder buy-in
Negative impact on suppliers and customers
Missed deadlines and overrun budgets
Great change management is vital for business success.
Your organisation can learn how to be great when it comes to
organisational change with an accredited certification course
in change management.
A change management course will reinforce skills like
communication, change practice, organisational change, and
other vital skills
Background and History of Coca Cola
Coca Cola is one of the world’s most recognizable
brands, known for its signature soft drink, which was first
introduced in 1886 by a pharmacist named John Pemberton.
The original formula for Coca Cola included coca leaves
and kola nuts, which gave the drink its name. The company
quickly gained popularity, and by the early 1900s, Coca Cola
was being sold in every state in the United States.
Over the years, Coca Cola has expanded its product line to
include a variety of beverages, including Sprite, Fanta, and
Dasani. Today, the company operates in more than 200
countries and has over 500 brands under its umbrella.
Coca Cola has also undergone several significant changes
in its organizational structure, including the creation of a
global business unit system in 2007, which aimed to
streamline operations and improve efficiency.
Despite its success, Coca Cola has faced several
challenges over the years, including changing consumer
preferences, increased competition, and shifting market

39
trends. To remain competitive, the company has had to adapt
and implement change management strategies to navigate
these challenges effectively.

Coca Cola’s need for change

As a large and established company, Coca Cola has
faced numerous challenges that have necessitated change. One
of the most significant challenges the company has faced is
the changing consumer preferences, particularly in the area of
health and wellness.
Many consumers are seeking healthier alternatives to
sugary drinks, which has led to a decline in sales of Coca
Cola’s traditional soft drinks.
To remain competitive, Coca Cola has had to diversify its
product line, introducing low and no-sugar options, such as
Diet Coke and Coca Cola Zero, and expanding its portfolio to
include juices, teas, and water. This diversification has
required a significant shift in the company’s product
development and marketing strategies, as well as changes to
its supply chain and distribution networks.
In addition to changing consumer preferences, Coca Cola
has also faced increasing competition from other beverage
companies, including PepsiCo and Nestle. These companies
have developed their own product lines and marketing

40
strategies, posing a significant threat to Coca Cola’s market
share.

To remain competitive and meet the changing demands

of its consumers, Coca Cola has had to implement change
management strategies to navigate these challenges
effectively. These strategies have included restructuring its
organizational structure, investing in research and
development, and leveraging technology to improve
efficiency and streamline operations.
Are Change Management efforts easy to implement?
What are the challenges in implementing change management
processes?
According to authorlist Change management efforts
are absolutely essential for the surviving and thriving of the
organization but they are also extremely difficult to
implement. Some of the biggest obstacles in implementing
change efforts
Change efforts create an environment of uncertainty in
the organization that impacts not only the productivity in the
organization but also the level of trust in the organization.
Change efforts are often made by new leaders because they
are chosen by board to do so. These leaders often have less
trust among the workforce compare to the people with whom
they were already working with over the years.
Change management efforts are made when the
organization is in dire need and have fewer resources. This
creates silos protection mentality within the organization.
Change efforts are often targeted at making fundamental
aspects in the business – operations and culture. Change

41
management disrupts are status quo thus face opposition from
both within and outside the organization.
Change management is often a lengthy, time consuming,
and resource consuming process. Managements try to avoid
them because they reflect negatively on the short term
financial balance sheet of the organization. How you can
apply Change Management Principles to The Coca-Cola
Company case study?

42
CHAPTER-6
METHODS

43
 Leaders can implement Change Management efforts in the
organization by following the “Eight Steps Method of Change
Management” by John P. Kotter.

Step 1 - Establish a sense of urgency

What are areas that require urgent change management
efforts in the “ The Coca-Cola Company “ case study. Some
of the areas that require urgent changes are – organizing sales
force to meet competitive realities, building new
organizational structure to enter new markets or explore new
opportunities. The leader needs to convince the managers that
the status quo is far more dangerous than the change efforts.

Step 2 - Form a powerful guiding coalition

As mentioned earlier in the paper, most change efforts are
undertaken by new management which has far less trust in the
bank compare to the people with whom the organization staff
has worked for long period of time. New leaders need to tap
in the talent of the existing managers and integrate them in the
change management efforts. This will for a powerful guiding
coalition that not only understands the urgency of the situation
but also has the trust of the employees in the organization. If

44
the team able to explain at the grass roots level what went
wrong, why organization need change, and what will be the
outcomes of the change efforts then there will be a far more
positive sentiment about change efforts among the rank and
file.

Step 3 - Create a vision

The most critical role of the leader who is leading the
change efforts is – creating and communicating a vision that
can have a broader buy-in among employees throughout the
organization. The vision should not only talk about broader
objectives but also about how every little change can add up
to the improvement in the overall organization.

Step 4 - Communicating the vision

Leaders need to use every vehicle to communicate the
desired outcomes of the change efforts and how each
employee impacted by it can contribute to achieve the desired
change. Secondly the communication efforts need to answer a
simple question for employees – “What it is in for the them”.
If the vision doesn’t provide answer to this question then the
change efforts are bound to fail because it won’t have buy-in
from the required stakeholders of the organization.

Step 5 -Empower other to act on the vision

Once the vision is set and communicated, change
management leadership should empower people at every level
to take decisions regarding the change efforts. The
empowerment should follow two key principles – it shouldn’t
be too structured that it takes away improvisation capabilities
of the managers who are working on the fronts. Secondly it

45
shouldn’t be too loosely defined that people at the execution
level can take it away from the desired vision and objectives.

Step 6 - Plan for and create short term wins

Initially the change efforts will bring more disruption
then positive change because it is transforming the status quo.
For example new training to increase productivity initially
will lead to decrease in level of current productivity because
workers are learning new skills and way of doing things. It
can demotivate the employees regarding change efforts. To
overcome such scenarios the change management leadership
should focus on short term wins within the long term
transformation. They should carefully craft short term goals,
reward employees for achieving short term wins, and provide
a comprehensive understanding of how these short term wins
fit into the overall vision and objectives of the change
management efforts.

Step 7 - Consolidate improvements and produce more

change
Short term wins lead to renewed enthusiasm among the
employees to implement change efforts. Management should
go ahead to put a framework where the improvements made
so far are consolidated and more change efforts can be built
on the top of the present change efforts.

Step 8 - Institutionalize new approaches

Once the improvements are consolidated, leadership
needs to take steps to institutionalize the processes and
changes that are made. It needs to stress how the change
efforts have delivered success in the desired manner. It should

46
highlight the connection between corporate success and new
behaviour. Finally organization management needs to create
organizational structure, leadership, and performance plans
consistent with the new approach.

Is change management a process or event?

What many leaders and managers at the Cola Coca fails to
recognize is that – Change Management is a deliberate and
detail oriented process rather than an event where the
management declares that the changes it needs to make in the
organization to thrive. Change management not only impact
the operational processes of the organization but also the
cultural and integral values of the organization.

Case Study Description

This is a Darden case study.Coca-Cola was the world's largest
manufacturer and distributor of nonalcoholic beverage syrups
and concentrates, selling over $24 billion of products in 2006
in more than 200 hundred countries. It became a high-growth
company under Roberto Goizueta who was president and then
chairman and CEO from 1980 until his death in 1997. Under

47
Goizueta's leadership, Coca-Cola's market cap grew from $4.3
billion to $180 billion, but since his death in 1997, it has
declined to under $115 billion, and for the first time in their
long competition Pepsi-Cola has a larger market cap. Coca-
Cola needs a blockbuster break-out growth idea to transform
it and its culture. Coca-Cola needs to show Wall Street that it
is not wedded to its legacy model and that it can be a growth
company again.

48
CHAPTER-7
CONCLUSION

49
Conclusion:
There is no doubt that the Covid-19 pandemic had negative
effects on businesses worldwide, and
global brands were not left out of these effects.
One of the benefits of coke’s system is its ability to be
everywhere to learn from the experiences and enable them to
make changes and emerge stronger.
During the pandemic, the organization experienced
challenges such as product delays, higher costs of
advertisement, and restrictions of movements in many
locations that triggered a fall in their sales.
All these changes affected their operations but because of
their ability to foresee the need for change as well as make the
changes and adapt quickly, the pandemic, which was meant to
be a huge disadvantage to them has become one experience
that has made Coca-Cola even stronger in terms of marketing,
operations, advertising, and sales.
Their reaction to change started from the CEO, James
Quincey, down to other arms of the organization as well as
their bottling partners, positioning themselves in very
influential sectors in the world which made them either
influence change or be part of the change during this period.
Changes that were made during this period include
increased strategic advertisement to drive sales, and strategic
leadership positioning, A common value that Coca-Cola CEO
employees and partners had in common was their level of
confidence in their products and the processes as well as their
ability to take responsibility and quickly adapt to change.

50
James Quincey reflected such dexterous values in all his
interviews watched in this research, (CNBC, 2020).
Strategic changes that Coca-Cola made also include
expansion in their range of products which enabled them to
still sell products like their range of juices, and breakfast at
home.
They made changes in how their products were
merchandized- packaged and counted and distributed.
Internally, they changed their monitoring and tracking
processes such as having a global dashboard where logistics
are displayed.
They changed their distribution strategy by using the
RTM model to expand in sales and customer acquisition and
retention.
Marketing and renovation are also key areas that Coca-
Cola made as they leveraged the lockdown to renovate and
rebrand a lot of their activation centres, offices, and depots.
They renewed their brand presence.
Coca-Cola expanded its outlets by distributing more
products in other outlets such as beauty salons, gyms, and
fitness centres.
The pandemic may have made caused some downtime in
Coca-Cola, but they have consistently shown the ability to
implement change and adapt to it. It has enabled them to have
a stronger brand, higher sales, and better competitive
advantage and still have a net profit of 40.13 billion now and
an overall net worth of 239 billion dollars should be studied
by other organizations

51
 CHAPTER-8
RECOMMENDATION

52
Recommendations
The pandemic brought to the limelight how organizations can
be affected by external and internal factors of change. Only a
few organizations were not shocked and were affected
negatively by these changes. Coca-Cola successfully thrived
during this period and even responded to these changes in
such a way that they even became more popular and profitable
compared to their competitors.
This chapter entails recommendations that other
organizations and upcoming businesses can adapt to enable
them to react to change, make changes and adapt to those
changes. The need to engage managerial and lead teams in
proper sensitization in preparation for change is crucial and
should be carried out through periodic discussion sessions,
seminars, and continuous meetings. Organizations also need
to keep their teams updated and informed in making
administrative decisions that may or may not affect them.
Employees of organizations need to be involved in
studying local and international markets and trends to enable
them to understand the need for change when the need arises.
It will help them settle in to change with proper understanding
instead of shocked and unsettling reactions. They also need to
be kept abreast with organizational and administrative
decisions especially when there is a possible plan to make
changes.
Organizations must have a quick and responsive attitude
toward change in order not to be thrown into confusion just
like Coca-Cola teams responded as swiftly by implementing
new models and processes.

53
 Organizations must observe the way their consumers react
to their internal and external changes as this will determine
their possibility of being successful after the changes they
have made .Feedbacks, physical site visits, and product
reviews are very good channels to carry this out. This will
enable organizations to either continue their change strategy
or switch it depending on what suits their customers or
consumers. It is crucial for organizations to also observe their
competitors closely by checking their weaknesses and
strengths to enable them to investigate areas where they may
need changes, being competitive is important for innovation
(Nsomba 2021).
Organizations can see that from Coca-Cola’s reaction to
the pandemic, work processes became flexible and more
acceptable for employees. This will help them brace up for
whatever unavoidable changes may be made in their
organization because of similar situations.
The business environment of Coca Cola Company comprises
of both the macro and micro environments. The macro
environment refers to the external factors such as political,
technological, social, legal and economic factors which affect
the operations of the business. On the other hand, micro
environment refers to the internal factors that influence
business operations. Such factors include employee relations,
workplace environment, and motivational factors.
The company’s micro environmental factors comprise
of the customers, employees, competitors, shareholders,
suppliers and the media. The Coca-Cola Company is working
on a customer strategy which is aiming to expand and develop
the status of its brand in the global market (Morrison, 2011).

54
Over the last five years, the company has invested in
marketing promotion as a customer growth strategy. For
doing this, they have established a huge consumer base in
various national and international markets in the over 200
countries where they operate. Since the year 2005, they have
experienced a continuous percentage increase regarding
customer loyalty. It has used various market segmentation
strategies to attract more customers and increase the sales.
The company has also put in place various policies that
encourage employee participation in decision making. As
such, they have continued to experience improved
productivity over the last decade. On the other hand, the
macro environment of the company comprises of various
external factors that affect the organization’s policy
regulations. Such factors include government policies,
inflation rates, import and export management, foreign
exchange rates, varying demand and supply conditions,
technological and legal factors. The company has invested in
technology, and this has seen it experience potential growth.
For instance, it has used the Franco technology to increase its
production. The company has responded positively to various
external factors to enhance its growth in the international
market. Coca-Cola has managed its external environment so
as to effectively compete with its rivals such as Pepsi and
Miranda among others.

55
 The Coca-Cola Company has used various innovative
strategies to ensure that it remains ahead of its competitors in
the market. The company has managed to produce a variety of
brands that meets the needs of various customers. For
example, it manufactures both still and sparkling beverages.
Besides, the taste of coca-cola is unique that its competitors
have never found it easy to replicate. The company is
committed to innovative strategies that would reduce their
environmental footprint and increase economic development
in various countries where they operate. Over the last decade,
the company has managed to produce non-calorie beverages
such as coke diet, coca-cola zero and vitamin water (Butler &
Tischler, 2015
Besides, it uses a timeless font written in the Spenserian
script to differentiate it from its competitors. The innovative
strategies utilized by the company have seen it become one of
the valuable companies in the world. The Coca Cola
Company uses various entrepreneurial skills to establish and
sustain itself in one of the most competitive industries. The
company produces over 500 still and sparkling brands which
serve an estimated population of 1.9 billion people each day.
The company has differentiated its market in such a way that

56
it can serve various market segments depending on their tastes
and preferences. Its brands range from its most valuable brand
coca-cola to ready-to-drink coffees, juices, and non-calorie
drinks such as diet coke and coca-cola zero. It also produces
Dasani which is a mineral water and the vitamin water. The
entrepreneurship skills allow the company to serve over 200
countries in the world.
Outside of the US, the company has continued to
acquire or invest in brands that respond to the plethora of
beverage options now available to consumers around the
world. AdeS, a Latin American brand; Chi Limited, a
successful West African producer of dairy and juice
beverages; and China Culliangwang, a manufacturer of plant-
based protein drinks produced from high-quality agricultural
sources, are just a few of the recent global acquisitions or
investments

57
CHAPTER-9
SOLUTION

58
Solutions to overcoming challenges and avoiding failure
When going through change, many organizations and
individuals fail and are faced with challenges when
implementing change. There are many measures organizations
and individuals can take to avoid failure and overcome
challenges.
Human factors
When faced with a resistance to change by individuals, there
are many strategies to get individuals to change. Morten T.
Hansen proposed the following ten methods to induce
personal change. Embrace the power of one – Focus on one
behavior to change at a time. This is because people are not
good at multi-tasking.
• Make it sticky – With the goal to change behavior, to do
this effectively the goal must be measurable and concrete.
• Paint a vivid picture – To be effective in getting change for
people, tap into their emotions and paint them a picture of
where they currently are and offer up the vision of where
they should want to get to.
• Activate peer pressure – As individuals we look to others in
our immediate circle for approval. These peers in our circle
can set the expectations to what is acceptable behavior.
Leaders can implore these people to apply pressure and get
the change that is desired.
• Mobilize the crowd – When individuals embrace a new
behavior it typically follows a pattern – early adopters, safe
followers, and late-comers. To get a change in the group it
is imperative that a leader gets a few early adopters on
board with a changed behavior. Then have them influence

59
 and convince the rest of the group to come and adopt said
behavior.
• Tweak the situation – People tend to go with the default

option. To influence change, an organization can nudge

them and indirectly shape their choices. This can be done
by changing the default option which in turn shapes
individual behavior.
• Subtract, not just add – Instead of trying to add something

in to solve the problems, rather removing the enablers,

triggers, and barriers that cause these problems.
• Dare to link carrots and sticks (and follow through) – To

motivate individuals to change behavior, offer incentives

for both performance related objectives and behavior
related objectives.
• Teach and coach well – Developing certain behaviors have

a skill dimension. Time is needed for people to develop

desired behaviors. As a leader it is important to guide
individuals to the desired end result.
• Hire and fire based on behaviors – Some people may or

may not be able to or want to adopt these new behaviors

and change. Instead leaders should look to bring in people
that embody these desired behaviors and are able change
These tactics can be helpful when faced with resistance from
individuals with implementing change into a group. The
tactics can be helpful with either implementing a behavioral
change among the group or a procedural or managerial change
in the group.
On an organizational level
When trying to change at an organizational level, these tactics
developed by Irving Calish and Donald Gamache help
companies in trying to enter into new markets and with
creating new products.

60
• Welcome the opportunity for change
• Creating an environment that does not punish mistakes

• Clearly define a growth plan that will enable management

to zero in company resources on meaningful targets

• Set realistic criteria for new opportunities

• Avoid trying for short-term financial success

• Remember that a good idea can be identified only after the

fact. An idea is "good" only when it is the right fit for your
company, its resources, and its goals
• Have a fund of ideas; a choice of opportunities fosters

objectivity and helps prevent falling hopelessly in love with

one
• Make sure the rewards for success are far greater than the

penalties for failure

These tactics implored on an organizational level aid in
overcoming resistance and challenges when it comes to
change. These tactics are more optimal for when an
organization is trying to implement change at an
organizational level or trying to enter into a new product
space, but still work for other avenues.
Avoiding failure
Based upon the reasons for failure, there are many actions a
leader can take to avoid these failures when it comes to
change. They can:
• Create a clearly defined and organized plan
• Communicate this plan effectively to the group

• Define measurable goals

• Create a solid management structure

• Properly manage risk

The antithesis for this is doing the opposite of what causes

failure in the first place. Following these steps in combination

61
with the other suggestions will aid in avoiding failure and
overcoming challenges. Additionally to be successful with
change it is imperative to follow the change models to get
actions right and avoid failure in the first place.

62
 CHAPTER-10
FAILS IN CHANGE MANAGEMENT

63
5 FAILS IN CHANGE MANAGEMENT:
5. Kodak

A company that was founded in 1888, Kodak made multiple

missteps over its century-long life. Kodak was famously sued
by Polaroid when Kodak’s version of an instant developing
camera was deemed an illegal knock-off, did not stay price
competitive against low-cost mass distributors, lost their film
market in good part to Fuji, and bought into the
pharmaceutical industry with little idea of how the business
works.

But many would say that Kodak failed because they didn’t
foresee how quickly and completely digital cameras would
take over the industry that depended on film sales. They were
caught behind the times.

4. The Metric System

What do the United States, Burma, and Liberia have in

common? They are the three countries that have not adopted
the metric system, according to the CIA World Fact Book. If
you live in the United States your speedometer is in MPH,
your market prices food by the pound and your weatherman
reports temperature in degrees Fahrenheit. Did you know that
was not always the plan? Under the Carter administration, the
Metric Conversion Act of 1975 was launched. Due to
resounding apathy, it limped along only to be disbanded in
1982. Another classic example that culture eats process for
lunch.

64
3. McDonald's Innovation

McDonald’s billion-dollar mistake started with a failure to

understand the fundamentals of flexible leadership. Simply
put, the most effective leaders are able to juggle conflicting
priorities and keep them in balance. They can quickly assess
the consequences of each decision and how it might impact
other areas of the organization.

In McDonald’s case, the leadership put so much emphasis on

innovation that it failed to recognize how making significant
changes to its food preparation would hinder its ability to
maintain speed and keep costs down.

Believing customers wanted more customized orders, the head

of the fast food chain’s US division overhauled the company’s
entire food preparation system to introduce a concept called
“Made for You.”

The initiative involved burgers cooked to order with freshly

toasted buns. It required expensive equipment upgrades—and,
of course, it drastically slowed down wait times. Suddenly
customers were waiting twice or three times as long to get
something they used to be able to pick up in just a few
minutes. Nevertheless, McDonald’s leadership insisted on
trying to make it work. Ultimately though, “Made for You”
failed and faded into oblivion. It was an expensive mistake
and one that also damaged the company’s stock prices.

If McDonald’s leadership had taken the time to collect

feedback and tested the concept more thoroughly before

65
rolling it out, it would likely have recognized that it
misjudged what customers really wanted.

2. New Coke

Second on the list of epic product failures is New Coke.

Launched in April, 1985 consumer opinion was so bad that by
July 1985, The Coca Cola Company brought back the original
formula. "Process Change 101" tells us to listen to our
customers and those who will be impacted by our proposed
changes. Tools like Kano Analysis also advise we look at
latent customer requirements. Those powerful but unstated
requirements, left unattended, can rear up and capsize any
change. In the 80’s sweet was "in". While the sweeter flavor
of New Coke had passed thousands of taste tests, they totally
missed the unstated requirements around the intrinsic bond
consumers had with the brand.

1. USPS

It can be difficult to achieve the right balance between

maintaining efficient, cost-effective processes and keeping
your people happy. High salaries and generous benefit
packages will almost certainly help with retention, but
overspending in this area can cause an organization to become
bloated and inefficient. Government agencies and union
organizations, in particular, have struggled with this in recent
years. During the economic recession of 2008, it became
difficult for the Big Three automakers to sustain long-standing
wages and benefits, and two of the three ultimately had to
declare bankruptcy. The U.S. Postal Service has also
struggled to reconcile wages and staff that have exceeded

66
demand, contributing to substantial financial losses over the
past 10 years.

To correct problems that have caused it to bleed money for

years, the Postal Service has had to shed jobs, slash wages and
close processing centers. Despite eliminating nearly 200,000
employees to reduce its staff by 25 percent, personnel
accounts for 80 percent of its operating costs. As the bleeding
continues, the American Postal Workers Union has warned
these reductions will hurt efficiency and customer service,
contributing to longer lines. Employee relations at the post
office have been tense for decades, and the elimination of
more experienced workers hasn’t helped. Much of the
breakdown has been attributed to the Postal Service’s
authoritarian culture. Supervisors enforce strict rules intended
to make the office more efficient, often at the expense of
people. Less experienced employees have been put in charge.
Grievances have soared.

67