Understanding leading change 2

Table of Contents
Introduction...............................................................................................................................4
I. Overview of the organization case study................................................................................5
II. Force Field Analysis:............................................................................................................7
1. Force Field Analysis:.........................................................................................................7
2. Force Field Analysis in Vinamilk:.....................................................................................9
a. Scenario 1:......................................................................................................................9
b. Scenario 2:....................................................................................................................10
III. Different Barriers of Change:...........................................................................................11
1. Barriers of Change:..........................................................................................................11
2. Schein’s organizational culture model:............................................................................12
3. In term of Vinamilk:........................................................................................................14
a. Organizational barriers:................................................................................................14
b. Individual barriers:.......................................................................................................15
IV. Implementation of change in Vinamilk:.............................................................................16
1. Establish a sense of urgency by making the case:...........................................................17
2. Form a guiding coalition by designating change leaders:................................................17
3. Develop a strategic vision & initiatives:..........................................................................18
4. Convey the vision for buy-in by generating excitement:.................................................18
5. Empower others to enact action by removing barriers:...................................................19
6. Generate short-term wins by celebrating before, during, and after the change:..............19

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7. Sustain acceleration by using wins as proof of the effectiveness of the change:.............19
8. Incorporate changes into the culture by solidifying it as the new norm:.........................20
V. Advantages and disadvantages of different leadership approaches:..................................21
1. Different leadership styles:..............................................................................................21
a. Autocratic leadership:..................................................................................................21
b. Participative Leadership:..............................................................................................21

c. Laissez-faire Leadership:.............................................................................................22
d. Transactional Leadership:............................................................................................23
e. Transformational Leadership:......................................................................................23
2. Vinamilk’s leadership approaches:..................................................................................24
Conclusion...............................................................................................................................28
Reference.................................................................................................................................29

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Table of Figure
Figure 1: Logo of Vinamilk.......................................................................................................5
Figure 2: Certifications of Vinamilk's food standards...............................................................6
Figure 3: Force Field Analysis of Kurt Lewin...........................................................................7
Figure 4: Steps of Force Field Analysis.....................................................................................8
Figure 5: Force Field Analysis for change plan 1 of Vinamilk...............................................10
Figure 6: Force Field Analysis for change plan 2 of Vinamilk...............................................11
Figure 7: Barriers of Change....................................................................................................12
Figure 8: Edgar Schein's Three Levels of Culture...................................................................13
Figure 9: Working uniforms of Vinamilk employees..............................................................14
Figure 10: Share Values of Vinamilk......................................................................................14
Figure 11: Kotter’s 8-Step Change Management Model.........................................................17
Figure 12: Vinamilk's organizational structure........................................................................18
Figure 13: Vision for change of Vinamilk...............................................................................19
Figure 14: Employee training program at Vinamilk's factory.................................................19

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Introduction

When a firm decides to modify its structure, strategy, culture, rules, technology, or even basic
beliefs in order to enhance performance and business development, it is called change.
Adapting to market changes, digital transformation, and technology upgrades, solving
internal organizational and organizational problems administration, improving processes and
procedures, expanding the company to reach new audiences, or launching a rebranding
campaign are all possible reasons for making a change. Every company is unique, so the
reasons for enacting organizational change are essentially endless. Organizations cannot
ignore change either, because change is essential to survival (Perkins, 2018). Here, Vinamilk
- Vietnam Dairy Products Joint Stock Company will be used as the case study in this report.
Vinamilk will be investigated and explained barriers to change and its impact on decisionmaking by leaders in this organization.
The purpose of this paper is to examine the barriers to change at Vinamilk as well as the
impact of change. It makes use of force field analysis to examine the factors that influence
change. Apply diverse leadership methods in response to Vinamilk using a range of change
management theories and models (situational leadership, change initiation, Kotter's 8-step
model, Lewin's change management model).

4


This report will begin by introducing Vinamilk - Vietnam Dairy Products Joint Stock
Company for this purpose. The second is to use force field analysis to detect objections and
change support. The third section explains the many types of change obstacles and how they
impact decision-making. The fourth step is to evaluate how the change was executed and how
effective it was. Finally, discuss the benefits and drawbacks of various leadership methods to
dealing with change.

I. Overview of the organization case study.
Vinamilk - Vietnam Dairy Products Joint Stock Company

Figure 1: Logo of Vinamilk.

Vinamilk was founded on August 20, 1976, it was formed on the assumption of three dairy
facilities that the previous administration had abandoned. Since then, this organization has
been repeatedly given the State Labor Medal and the title of Labor Hero throughout the
restoration era... Vinamilk operates dairy farms all across VietNam. Vinamilk is also a
pioneer brand in Vietnam's high-end organic food business, offering fresh dairy products that
comply with USDA standards in the US.
Vinamilk's brand has expanded outside its
native market to New Zealand, the United
5


States, and over 20 other countries. Vinamilk is a multi-industry firm that includes dairy
farming, animal feed manufacture, and farming. The firm has successfully developed 13
dairy farms throughout the years and aims to add another four in the future. Vinamilk is
committed to investing in cutting-edge technology. The firm constructs all cattle barn
systems to the highest international requirements. This company also constantly trains and
develops human resources to ensure mastery of new equipment. All of the company's
directors and department heads were sent to dairy farms in the United States and Australia to
obtain practical expertise. Vinamilk is confident in its ability to capture the market with highquality goods at reasonable pricing (Vinamilk, 2018).

Figure 2: Certifications of Vinamilk's food standards.

With continuous improvement and development, Vinamilk is improving more and more, to
achieve certification standards such as Quality management system certification according to
international standards ISO 9001: 2008, certification system Food safety & quality
management system according to British BRC standards, certifying establishments meeting
food hygiene and safety conditions according to the regulations of the Ministry of Health. In
addition, Vinamilk also achieved ISO 50001: 2011, FSSC 22000: 2005, ISO 14001: 2004
certifications (Vinamilk, 2018).

6


(Vinamilk, 2021).

II. Force Field Analysis:
1. Force Field Analysis:
Kurt Lewin (1890-1947), a pioneer in the field of psychosocial scientific study, developed
force field analysis as a management tool for forecasting scenarios. People should not regard
all circumstances in a substantially stable system, but rather in a transient equilibrium,
according to Lewin. According to him, the driving force and the restraining force have an
impact on all changes in a situation (if any) (Connelly, 2020).

Figure 3: Force Field Analysis of Kurt Lewin.

Driving forces are forces acting on a situation that has the effect of pushing that situation in a
certain direction, it tends to initiate a change and promote it to continue, for example
7


improving performance productivity in a workgroup, pressure from supervisors, incentives,
competition. Indifference, resistance, and deteriorated work equipment are examples of
restraining factors that constrain or diminish driving forces. The condition of equilibrium
occurs when the total of forces for change equals the number of forces against change
(Connelly, 2020).
Organizations may now see what is propelling and stifling their growth thanks to this
analytics technology. It then allows companies to compare and contrast each problem. This
tool may be used by businesses to investigate present difficulties or to forecast and plan
future process improvements for increased efficiency. When it comes to problem analysis,

this technique is very beneficial when it comes to helping managers describe additional
concerns such as work ethic, management style, efficiency, and working environment
(Connelly, 2020).
Although field force analysis may be done in a variety of methods, there are certain
commonalities. The procedures listed below capture a lot of common ground, and if
companies follow them, they'll be able to execute a conventional force field analysis
successfully:

8


Figure 4: Steps of Force Field Analysis.

The first stage is to articulate the purpose or vision for the change by describing the plan or
proposal for change. The second stage is to identify the driving of change, which are the
different sorts of factors that are driving the change, both internal and external. The third
stage is to identify the forces of resistance to change, which are forces that oppose or make
change undesirable. The fourth stage is to indicate the location, which is the point of each
force, which ranges from 1 (weak) to 5 (strong), based on the degree of effect each force has
on the plan, the scores for each side are calculated (for and against). A bigger arrow for
forces will have a greater influence on the change, whereas a smaller arrow will have a lesser
effect. The final phase is analysis and implementation, which will determine whether to stick
with the decision/change or to reinforce which supporting and opposing forces can diminish
and how for a more effective transformation (Joan, 2020).

2. Force Field Analysis in Vinamilk:
a. Scenario 1:
When Vinamilk wanted to strengthen the brand of its
dairy product group, the company decided to change
9

the product packaging so that the packaging synchronized with their corporate image, to
emphasize the difference compared to competitors, and ensure the packaging is printed with
all the necessary information (Nguyen, 2018). For this change, there are different driving and
restraining forces. These forces will be mentioned in the following table:

Figure 5: Force Field Analysis for change plan 1 of Vinamilk.

According to the table above, with a ratio of 14:11 in favor of the driving force. Therefore,
Vinamilk can proceed with the implementation of the new packaging redesign plan to better
suit the current business of the enterprise.
b. Scenario 2:
In today's competitive situation, when businesses
in

the

same

industry

are

also

developing

constantly. Therefore, Vinamilk wants to upgrade
the factory with new milk production machines.

Before implementing this plan, forces for change
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and force against change was grasped. Customers' desire for new products, improved
production rates, increased output, and sustained cost increases were the driving force behind
this plan. The damage caused by overtime, employees' fear of applying new technology, new
technologies affecting the working environment, costs, and divide status are the restraining
forces for this plan (Huynh, 2021).

Figure 6: Force Field Analysis for change plan 2 of Vinamilk.

All driving forces and restraining forces have been listed in the table above and have been
scored accordingly. With a ratio of 16:13 in favor of the restraining force, it shows that the
restraining force prevails over the driving force. In this case, by identifying all possible
forces, Vinamilk's managers can make possible suggestions to advance the continuation plan
as follows: The first is that Vinamilk should conduct employee training, helping to reduce
costs to 2 score, this also helps the fear of applying new technology can be eliminated,
reducing the fear of employees to 3 score. Second, Vinamilk should let employees know
about some of the benefits of changing machines that are essential to the survival of the
factory, which creates a new impetus with 2 score. Third, Vinamilk should instruct
employees to know that new milk production machines will make their work more
convenient, which also creates a new motivation with 1 score. Fourthly, Vinamilk can
increase employees' wages when productivity increases thanks to new machines, leading to
the point of cost plus 1 score, but the damage caused by overtime except for 2 scores. Finally,
11


Vinamilk should use new machines that will be fitted with filters to reduce pollution, so the
point of affecting the working environment will be deducted 1 point. The above possible

changes can fluctuate the balance ratio from 16:13 (not beneficial to the plan) to 11:16 which
is very beneficial for the implementation of Vinamilk's plan to be successful. Through
analyzing and providing solutions to reduce these restraining forces, Vinamilk was able to
implement the plan without worrying much about the risks mentioned earlier.

III. Different Barriers of Change:
1. Barriers of Change:
Few enterprises can thrive in the face of constant change. While changes may be important
for the company's long-term success, companies are bound to hit some barriers.
Understanding these roadblocks can help organizations prevent them before they are a
significant issue when it comes to adopting change within an organization.

Figure 7: Barriers of Change.

Organizational barriers include structural inertia, existential threats, workgroup norms, threats
to disrupt the existing balance of power, history of change efforts gone wrong, and
administrative council. Personal barriers include economic fear, fear of the unknown, fear of
social disruption, exertion, fear of loss of power, unsuccessful endeavors, and autonomy and
commitment to the old position. Those are just a few examples of roadblocks that can arise at
organizations when they decide to change anything in their business (Torabi, 2020). To be a
12


successful change, instead of promoting, businesses need to lower barriers to change.
Managers need to act as drivers of barriers to change so that businesses and their employees
can adapt to it. In other words, there is a better way to create change and is not to push harder
or persuade but to change mindsets by removing barriers and lowering the barriers that hold
people back (Baker, 2018).

2. Schein’s organizational culture model:

In 1890, American professor Edgar Schein advanced a version of organizational culture to
make culture greater seen in organizations. He additionally outlines the stairs that want to be
taken to result in cultural change. According to Edgar Schein, the agency has direct and
indirect mechanisms. The organizational culture is motivated with the aid of using direct
mechanisms. This consists of exemplary behavior, opinions, status, and scroll appointment.
Although indirect processes have a significant impact on corporate culture, they do so
indirectly. This comprises the goal and vision of a firm, as well as its corporate brand,
etiquette, and design (Osborne, 2018).
Edgar Schein's cultural model is divided into three
different levels with the core being artifacts &
creations,

followed

by

values

and

basic

assumptions.
Level 1: Artifacts & Creations are elements that
exist in an organization such as architecture,
processes, documents, logos, etc. People can hear
or see them when interacting with a business. This
Figure identification
8: Edgar Schein's Three
Culture.of

is a customer
mark.Levels
Thisof level

culture is easy to change, typically in the case
of changing the brand identity, but the essence
of cultural values does not change (Osborne,
2018).
At Vinamilk, Artifacts & Creations is shown as
follows: No one in the organization is allowed
13


to dress loosely, wear the correct uniform to work in the office or in the factory. Vinamilk's
employees respect their superiors and avoid unnecessary disputes. Individuals are very
specific about deadlines and ensure tasks are completed within the timeframe specified by
Vinamilk (Thai, 2019). The above shows that Vinamilk's employees show professionalism
and strictly follow the organization's policies.
Figure 9: Working uniforms of Vinamilk employees.

Level 2: Shared values are related to the business's standards, values, and rules of behavior
and pertain to communication inside the firm. Its major purpose is to teach employees how to
react in different situations and to practice how to behave in the workplace (Carter, 2021).
The values and code of conduct that Vinamilk has declared are: integrity, which means
honesty in conduct and in all transactions. Respect yourself, respect your colleagues, respect
the company, respect your partners, cooperate
in respect. Be fair to employees, customers,
suppliers and other stakeholders. Respect
established

standards

and

act

ethically.

Comply with the law, code of conduct and the
company's

regulations,

policies

and

regulations (Vinamilk, 2017).
Level 3: Basic assumptions are an important element

Figure 10: Share Values of
Vinamilk.

of

corporate culture, sharing values between members and the organization, and determining the
cohesion and value created of the human resources team (Carter, 2021).
It can be seen that Schein's organizational culture model gives Vinamilk clear advantages in
assessing corporate culture, that is: pointing out the weaknesses and strengths in the overall
corporate culture of Vinamilk, allowing Vinamilk to clearly define the contents or areas that

need to be adjusted in the corporate culture, and help Vinamilk to unify the development
orientation of the leadership and corporate culture to perceive the effectiveness of the
company. business and the ability to cope with the situation when identifying barriers.
14


3. In term of Vinamilk:
a. Organizational barriers:
Structure: Because Vinamilk has a conventional hierarchical structure, it is more resistant to
change than a firm with a flatter organization. Under a conventional hierarchical
organization, communication between department heads and employees is generally poor,
resulting in a schism between management and staff (Nguyen, 2018).
Organizational culture: the success of change will depend on the organizational culture.
Vinamilk's organizational culture includes the organization's beliefs, values, working
processes, and employee policies, so employees and leaders follow them unconsciously.
Vinamilk leaders need to ensure that they are enabling a culture that fosters change.
Decisions by Vinamilk's leaders should be made in a way that enables individuals to take
initiative and creativity, flexibility, risk-taking, and experimentation. These attributes can
cause employees to favor adaptive change as they become accustomed to such a work
environment (Truong, 2018).
Lack of preparation for a new role: Vinamilk may fall short in the planning phase, failing to
prepare and identify new responsibilities that must be fulfilled when the change is
implemented, resulting in resistance (Vinamilk, 2018). So, before implementing the new role,
Vinamilk's leaders should provide a brief explanation to their workers to alleviate any
questions, worries, or objections.
Lack of resources and inefficient resource allocation: At Vinamilk, a lack of resources often
the start of financial and environmental issues. When Vinamilk's management makes poor
resource allocation decisions, such as distributing money, time, machinery, and personnel,
this is known as poor resource allocation. Managers at Vinamilk should be creative in order
to prevent confrontation (Dinh, 2020).

b. Individual barriers:
Employee and team attitudes: The attitudes of employees and workers at Vinamilk can be
considered to have a significant impact on the implementation of change. Approaches to
employee task and activity misalignment may include leaders understanding team members'
15


viewpoints and improvising decision-making based on attitudes of staff and groups (Mai,
2020).
Practice differences: The employee's resistance to Vinamilk's transformation is significantly
influenced by practice differences. Vinamilk's executives may encounter fierce opposition if
they require staff to show brand-new procedures. As a result, Vinamilk's executives may be
necessary to establish strategies for employee training and development in order to apply new
techniques (Tran, 2019).
In summary, the only thing that Vinamilk's managers and executives know for certain is that
change will occur in their company. Vinamilk's aims and objectives, strategies, resources,
structure, processes, and environment may all be affected by this shift. As a result, before
implementing a change, leaders must grasp the nature of change, and the major hurdles to
change.
While these changes create barriers for organizations or individuals that are barriers to
creating influence over the company's decisions or leadership is no less. Change can be
initiated or imposed, whatever the nature of the change and whatever barriers it may have, it
needs leaders who can share relevant information specific to the change required to change,
facilitate ownership of the change process, and strengthen internal collaboration, support, and
commitment to change. These barriers affect leadership decision-making depending on
whether they are considered strong enough to lead to the failure of the change effort. Leaders
need to make the right choices and decisions depending on their potential impact on their
followers if they are to make successful changes (Farish, 2020).

IV. Implementation of change in Vinamilk:

One of the biggest limitations at the time of
establishment of Vinamilk's company was the
source of raw materials. When it was first
established, Vinamilk did not have enough
funds to open its own farm to supply its own
16


raw materials. The period after the country's unification, from 1975 to 1986, was a difficult
time in all aspects of the country. But right from that moment, a representative of Vinamilk
said that the company had a clear orientation, which was to replace imported materials, that
is, to develop domestic dairy cows. In 1991, this company was concretized by taking the
initiative in producing raw materials by building a domestic raw material area, the "milk
revolution" also known as the "white revolution" was born. (Giang, 2019).
To analyze for this great change of
Vinamilk, it is reasonable to use
Kotter's 8-step change model. Kotter's
8-Step Change Model is a systematic
approach to achieving successful and
sustainable change through dividing
the change process into eight steps.
Kotter

recognizes

that

common

mistakes in the process of change are

allowing too much self-indulgence,
failing to create lasting alliances,
underestimating the need for a clear
Figureand
11: Kotter’s
8-Step Change Management
Model.
mission,
not communicating
a clear mission
destiny, accept barriers, fail to create short-

term wins, declare success too soon, do not associate change with company culture. Kotter
argues that these mistakes can be avoided by understanding why the organization is changing
and the steps it takes to make it happen. It's about creating a sense of urgency, forming a
powerful alliance, creating a vision for change, communicating the vision, removing
obstacles, creating short-term wins, building on change, finally anchoring changes in
corporate culture. These steps will help the business to plan step by step so that the changes
are completed well (Jain, 2019).

1. Establish a sense of urgency by making the case:
It is human nature to want to maintain the status quo. Therefore, in this first step, Vinamilk
needs to present change as an urgent opportunity. First, Vinamilk gives reasons to their
17


employees that their business needs a dairy farming system, that's the most important, this
will help Vinamilk to be self-sufficient in raw materials, self-sufficient in everything. price
owner. Next is to provide evidence that analysts have assessed that when there is this change
they will be a leading enterprise in Vietnam in the fresh milk market to maintain a

competitive advantage over rivals. Finally, Vinamilk appeals to individual motives by talking
about profits after the change is successful, employees' salaries will increase more than
before. In these ways, Vinamilk will be able to make its employees more concerned about
this change (Phan, 2021).

2. Form a guiding coalition by designating change leaders:
Vinamilk built a guiding alliance
including heads of research and
development
marketing

department,

department,

finance

department,

human

department,

sales

department,

service

department.

customer

resources

Department managers will create
custom workflows that let their
teams know how to apply when it
Figure 12: Vinamilk's organizational structure.
comes to setting
up a farm, setting up a factory, choosing a breed, and taking care of dairy

cows to their work. When leaders know how their daily routines will be affected, they can
provide detailed guidance throughout the transition (Phan, 2021).

3. Develop a strategic vision & initiatives:
With the desire to establish a farm to be autonomous
in terms of research resources, Vinamilk has
launched a mission for this change that is created
that can help businesses have market-leading
products. It was a clear and understandable mission
for Vinamilk to capture the most important parts of
18


their change. They acknowledge training concerns by assuring their team that they will be
supported by weekly self-guided training with their change leader (Huynh, 2019).
Figure 13: Vision for change of Vinamilk.

4. Convey the vision for buy-in by generating excitement:

Ordering support staff to change only leads to frustration and resentment. So, after properly
understanding its vision, Vinamilk continues by building excitement for people to listen with
an open mind. Vinamilk demonstrates that its employees can trust them because they have
foreseen potential concerns. Vinamilk knows that in the process of this change, it is very
difficult to maintain the source of
imported research while also establishing
the status, so they make it clear about
their plan to the staff to help the process.
easier conversion. In addition, Vinamilk
demonstrated that it plans to provide
support to its team throughout the
transition so that employees can better
adapt to the change that is coming leader
(Huynh, 2019).

Figure 14: Employee training program at Vinamilk's factory.

5. Empower others to enact action by removing barriers:
No change is without obstacles, it is important that Vinamilk is able to identify potential
barriers as they plan for change and during the transition. Vinamilk believes that with this
change, the biggest barrier is resistance from employees. Instead of pulling ranks and giving
orders to employees, Vinamilk works to understand why their employees hesitate. After
researching, most of Vinamilk's employees said that they had difficulty adapting to working
time in this renovation process, their working time had to increase more than before. So,
during the transition, Vinamilk made adjustments to their original plan because they realized
that it was always better to find a way to remove the barrier than to try to ignore it. They

19

reduced the work time and put more staff on this project so that the change could take place
more successfully leader (Huynh, 2019).

6. Generate short-term wins by celebrating before, during, and after the change:
Now everything is set in motion but needs to gather more speed. Vinamilk wants its
employees to be able to see the benefits so they focus on change with double enthusiasm and
motivation. It is the close cooperation with local dairy farmers that has helped increase the
total number of cows from 3,000 in 1991, the quality of milk is not inferior to imported
materials. With this initial success, Vinamilk's employees will be more motivated to
participate. Enthusiasm is extremely valuable, so it needs to be rewarded. When Vinamilk's
employees showed their support, Vinamilk used an innovative reward system such as a gift
card lottery or extra vacation days. These small actions can greatly help Vinamilk move in
the right direction (Vinamilk, 2018).

7. Sustain acceleration by using wins as proof of the effectiveness of the change:
However, short-term victory does not mean complete success. Therefore, at each step,
Vinamilk and the team must analyze the results to see how short-term goals are adding to
long-term goals. Vinamilk must analyze the results to know what can be improved to make
the plan successful and what has been working properly (Vinamilk, 2018).

8. Incorporate changes into the culture by solidifying it as the new norm:
To a change is full gain, it must be eat deep into the textization and the process of the group.
Vinamilk provides continuous training when it comes to change so that its employees don't
go back to old ways of doing things and lose all the new jobs on which the company has been
built (Vinamilk, 2018).
Summary, although it is a challenging problem, but with methodical investment and proactive
application of high technology, continuous staff training. Vinamilk is fully capable of turning
those challenges into opportunities to create outstanding developments, which means that
Vinamilk has successfully applied this change. The fact that Vinamilk's development has
proved that the dairy industry, although not the strength of a tropical country like Vietnam,

can still create strong development milestones thanks to firm steps. investment and
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