FedEx Contemporary leadership theories

FedEx is one of the world’s largest cargo aviation firms, providing package transportation services not just in the United States but also in many other nations. Frederick W Smith created the business in 1973 with the goal of delivering rapid overnight delivery of parcels. Starting a cargo airline, according to Smith, would allow individuals to have their products delivered to their intended destinations the following business day (Samson, & Bevington, 2012). Smith started his firm in Memphis and has since expanded to over two hundred and twenty other nations, increasing the company’s revenue. However, although FedEx has made breakthroughs in the world market, the organization is still over-dependent on the US market that accounts for most of its revenues. To ensure the growth of the company’s revenues worldwide, I would recommend that FedEx Corporation merge with and acquire other companies from different countries.

It is true that change is inevitable in business and it is difficult to maintain business growth without having some modifications done internally and externally (Samson, & Bevington, 2012). One of the most significant challenges that FedEx Corporation faces is its over-reliance on the US market making it difficult to generate much income from other countries from which the company operates. It has been difficult for FedEx’s revenue from other countries to grow because it has its headquarters in the US making the US the most reliable customer and stiff competitions experienced in other countries who prefer to use their local delivery providers (Samson, & Bevington, 2012).

The company should, therefore, find a way of expanding its revenues considering that over-dependence on one customer may have diverse effects on the company’s position. For instance, FedEx’s dependence on the USA revenue may affect the company’s financial stability in the event of political or even social- economic instability in the state. Competition from other companies offering the same services in the region may also affect the business leading to loss of jobs by the employees in the case where the organization relies on the USA over other countries.

As the change leader in the organization, I intend to bring about a change initiative towards mergers and acquisitions to help challenge potential competitors. Mergers and Acquisitions transaction for FedEx in other parts of the world like Asia, Africa, Europe are essential to ensure that the company maintains its lead as the most significant cargo airline corporation globally. The mergers and acquisitions will also look to it that the USA does not dominate the consumer market. Other countries can, as a result, enjoy similar services like those experienced by the people in the USA. The Board of Management, investors and the employees are the key stakeholders involved in this change initiative.

According to Kurt Lewin’s change model concept that includes three critical steps of unfreezing, changing and refreezing, communication to the key stakeholders regarding the expected change initiative and the need for this change is vital. Communication enables the people involved understand its necessity and urgency and thus motivating them to accept the change. In the case of a change initiative that includes mergers and acquisitions of other companies, it is essential that employees are, for instance, assured of the safety of their job positions considering that during such an initiative, some employees may lose their jobs. The assurance will see to it the maintenance of the employees’ morale to give their 100% effort in their careers.

The change leader in a change project must ensure that the change is a success (Winkler, 2010). Therefore, being the change leader in the organization, it is my responsibility to see to it that all the stakeholders involved are persuaded of the importance of this particular change. After the critical participants in the change initiative are informed of the importance of change, the changing process should begin where people learn how the new system will work. However, making the change initiative a success in the organization would require excellent leadership skills to ensure there is a valuable positive change in the performance of the employees. Transformational leadership theory is the most viable approach I will use to guide the change process. Transformational leadership theory emphasizes the need for employee motivation and cooperation of all stakeholders towards the achievement of the same goal (Winkler, 2010). The transformational approach also instills motivating and charismatic qualities to leaders, personalities that enable the leaders to motivate their employees to give all their efforts in their jobs.

To implement the change initiative efficiently, I will recruit a team of change agents comprising of the employees at FedEx as well as the employees from a different organization that we wish to merge or acquire (Burke, 2008). These change agents will have the responsibility of ensuring that their colleagues are fully empowered towards the accomplishment of the company’s goals and objectives. Additionally, the change agents who have a vision of how the company needs to be operating driven by passion will instigate this desire in others.

Kurt Lewin’s change model is the most suited in managing our desired change. Lewin’s model that involves three steps of unfreezing transitioning and refreezing requires that the change leader identifies the need for change before change can take place. After the determination of the need, the leader should communicate to the employees and other relevant stakeholders of the need for this change as well as the expected outcome. The change leader should ensure that the people are compelled to understand how significant the change will be to the organization, making up the unfreezing phase (Burke, 2008).

During the transitioning step, the change leader should aim at changing people’s conducts and systems of the organization where changes will take place. Frequent communication amongst the key stakeholders involved during the second phase of this model is of great importance for the success of the change plan. Finally, the organization should endorse the changes as their ways of doing things and develop means of sustaining the new initiative. Recognition and celebration of success as a standard part of the change is an essential aspect of the third phase of change implementation.

There are various potential barriers to change among them; poor communication amongst the stakeholders, poor planning, employee resistance and failure to recognize and appreciate success (Samson, & Bevington, 2012). The change leader should, therefore, ensure that there is a step- by step planning that provides that the change will yield more benefits than problems. Constant communication amongst the people involved will help employees feel that they are making significant progress towards the achievement of the organization’s goals. Moreover, failure to recognize and appreciate success is more likely demoralize the employees’ morale since they feel that their contribution towards the organization is valued.

Even when the right channels are followed during the implementation of a change initiative, the expected objectives may fail if there are no adequate systems to measure the level of success of the plan (Burke, 2008). Sufficient data on performance is essential in informing critical stakeholders of the levels of impact the change is having on the company. I will, therefore, use Project Management Metrics to help in determining year-to-year performances of the company. To anchor change and support continuous change, all the stakeholders involved in the change plan should have a common language with common understanding. When all stakeholders agree on the steps to be taken, there will be minimal chances of disagreement in future making the change initiative a success. The organization should also develop skilled leadership where all the leaders can handle the new expectations without many challenges.

My change plan supports the organization’s mission of producing superior financial returns for its shareholders by providing high value-added logistics, transportation and related business services through focused operating companies. The initiative will also ensure that customer requirement will be met in the highest quality manner appropriate to each market segment served considering that the market will be stretched to help every customer. Moreover, the plan will ensure that it addresses stakeholders’ concerns by developing mutual relationships amongst all the stakeholders involved.

In conclusion, change is inevitable for a successful business, and it is, therefore, important for businesses to have some changes in how their systems operate for substantial growth. However, implementing change in a company may be a difficult task for leaders and the change leader should, therefore, devise a systematic plan to ensure that the move is a success. FedEx the largest airline cargo corporation in the world, has the US accounting for most of its revenues despite that it has ventured into more than two hundred countries in the world. However, to ensure that the company benefits from other countries other than the USA, the company should engage in Mergers and Acquisitions with other organizations from other countries.

References

Burke, W. W. (2008). Organization change: Theory and practice. Los Angeles: Sage Publications.

Samson, D., & Bevington, T. (2012). Implementing strategic change: Managing processes and interfaces to develop a highly productive organization. London: Kogan Page.

Winkler, I. (2010). Contemporary leadership theories: Enhancing the understanding of the complexity, subjectivity and dynamic of leadership. Berlin: Springer.