Change Memo

The purpose of this memo is to introduce changes into key aspects of the organization to improve the company long term performance and profitability. After 2005 the profitability declined due to sales decline and increased costs. This has happened due to unstable organizational structure, low employee morale and poor relationship between the employees at each organizational level. Developing vertical information system and establishing hierarchal linkage could help the organization to overcome the problem of weak linkages and weak control over the employees at each level of the organization.

The Change Plan

Company is facing the problem of decreasing sales and profits and low employee morale due to unstable organizational structure. Behavior and non-behavior change needs would have an impact on culture and structure of the company and would involve developing new resources, changing management preferences , developing new organizational preferences and changing strategy components like new

2) Achieving the 25% market share would require the focus strategy with innovative style of approach which should be commenced in two months. 3) Achieving organizational effectiveness goals would require the introduction of hierarchy with mixed approach style and should be commenced in three months (Exhibit 2).

The specific elements of the proposed plan are System, Strategy, Structure, Style, Staff, Shared values and Skills. By using Mc Kinsey 7s model, each function of the plan like marketing, operations, HR and other could be monitored more efficiently and would work in harmony. By aligning and mutually reinforcing the 7 elements the company would perform well during the change process. (Exhibit 3)