The implementation of strategic change at Microsoft Canada

The Business Development books has aimed appreciable attention at in having the ability to lead and control change. The major portion of the materials is highly normative, advising professionals about how they must be planning and implements organizational changes. For instance, one study advised that successful managers in ceaselessly changing organizations should first; provide clear responsibility and priorities with intensive communication and independence to improvise. Second, explore the near future by tinkering with a multitude of low cost probes; and finally, link current tasks to the near future with predictable intervals and choreographed transition procedures. Traditionally the key focus of change management is on identifying sources that avoid change and offers ways to get over them. Most of the recent efforts have been challenging the concentrate on resistance and also have shifted the targeted at creating perspective along with increasing political support to them, and taking care of the move of the business toward them. The various ways that managing change can be classified are in physique below.


Creating Readiness for Change

Overcoming Level of resistance to Change


Describing the Key Ideology

Constructing the Envisioned Future





Assessing Change Agent Power

Identifying Key Stakeholders

Influencing Stakeholders


Activity Planning

Commitment Planning

Management Structures


Providing resources for Change

Building a Support System for Change Agents

Developing New Competencies and Skills

Reinforcing New Behaviors

Staying the Course

The above mentioned activities contribute too much to effective change management and have been detailed in the order where they are performed. The first among the activities consists of motivating change and also includes developing a readiness for change amongst the participants of the business and which indeed helps them to address resistance to change. Initially inspiration is a critical issue for change process just because a lot of facts indicates that individuals as well as the organizations want to maintain the status quo and are willing to change only once there are strong powerful reasons to do so. The next activity is considered with developing a vision which is closely alignment with leadership activities. The eyesight has the sole purpose of providing a purpose and construct for change and it explains the desired future condition of the organization. Another activity involves the duty of developing politics support for the change. Organizations of most kinds are composed of powerful individuals as well as organizations that can either stop or promote change, which is the task of the leaders and the change agents to gain the support and authorization of the bigger authorities in order to apply changes. The fourth activity can be involved with managing movements from the existing state to the desired level in the organization. It involves creating an idea for controlling the change activities as well as planning particular management buildings for working of the organization during this transition. The next and the final activity involve sustaining the flow or momentum for change such that it is being in a position to be carried to completion. The final activity includes process such as providing resources for implementing the changes, building a support system for change providers, growing new competencies and skills needed to execute the changes. Unless man-to-man are motivated and bound up to improve, unfreezing the status quo will be very hard. Without vision, chances are there that change will be disorganized and diffused.

Along with the fast paced rate of global, financial, and technological development change becomes an unavoidable feature of the life span of the organizational. But change that occurs to an organization externally by the surroundings is quite different from the change that is organized and designed by the people of the business. The main motive of Organizational development is to bring in changes in the organization in a well planned manner so as to be able to increase its efficiency and this organizational change is usually initiated and put in place by managers, by using professional OD practitioners. Conceptions of planned change have tended to focus on how change can be applied in organizations. In order to implement change in any firm, certain frameworks are being used as models that describe the activities that must take destination to initiate and carry out successful organizational change.

Let us now discuss change that Microsoft Canada tried to use in its group by employing Strategic Change.


Microsoft Canada is a subsidiary of Microsoft Company in charge of the service, marketing and the sales of the entire selection of software products, like the Windows operating-system, the office production suite, a variety of World wide web products, and the Xbox game console. The organization advertised to a number of sections, such as software program creators, small and medium business and large corporations, through a wide range of partners that worked immediately with the client organizations to set up and optimize the software used. A small service company provided talking to support to clients with the partner.

Before 2001, Microsoft Canada had been part of UNITED STATES subsidiary. Under this framework, large US market was plainly the concentrate of attention from Microsoft server, desktop, other software products. However, Frank Clegg, Chief executive of Microsoft Canada, argued that the Canadian market was different and under developed. It acquired a different mix of customers that performed a United States, different competitors and various growth opportunities. Additionally, software sales and workers computer systems shipments as a percentage of market segments size and progress were below worldwide averages. These distinctions, Clegg argued warranted a particular strategy.

As the fiscal 12 months concluded Clegg and his recently appointed Director of Strategic Planning, Sandra Palmero, wished to cease the chance to define a exclusively Canadian strategy. Before becoming Director of Strategic Planning, Palmero have been Director of Marketing and Corporate Communications in Microsoft Canada. There with Richard Reynolds, her Senior Marketing Manager, they had prepared and executed a participative process of tactical planning. Sandra conducted the OD practitioner who had caused them and contracted to design and implement a Strategic planning process for the Canadian group. Over the 2 month period, Sandra conceived of a series of workshops relating to the Canadian management team. This team represented a broad mix section of the organization including associates from legal staffs, human resources, service business and Microsoft expert, marketing managers, customer care and managers responsible for different segments of Microsoft business including enterprise customer, small and medium business, the Microsoft Network and the Xbox.

The strategic examination phase contains initial work by several people of the Canadian control team as well as first exercises through the first workshop. Person in Canadian Command team each prepared an analysis of these respected regions of responsibilities. For example, the organization sales manager provided historical development rates in the earnings, developed forecast for market growths and Microsoft's share, described current levels of Client satisfaction and technology highway map of products being produced by the Redmond head office organization. In addition to this specific examination, Sandra contracted with market research organization to provide overall information of Canadian it market. Finally a competition evaluation was performed to build up and knowledge of likely strategies, goals, and initiatives from key opponents such as IBM, Sunlight Micro System, and Oracle as well as competitive danger posed by the Linux Operating System Software.

During first workshop the Canadian Control team used the pre work data to execute an environmental check. They discussed, debated, and in the end came for some contracts about the tendencies affecting the business. Predicated on that check, the group involved in a eye-sight and value development exercise and set out an initial list of short and long term goals. These activities let to several important decisions for new marketing organizations. For example, the eye-sight and principles exercised produced important information in what the Canadian organization stood for, its uniqueness set alongside the marketing subsidiaries within the Microsoft Business, and its talents in rivalling as a Canadian corporation. The principles also informed dialogue about future goals and strategy to achieve them. Importantly, the Canadian leadership became aware that customer devotion would and should become a driving force for the organization. This realization resulted in passionate discussions about the relative emphasis in the organization on profits versus client satisfaction and loyalty. In addition, it resulted in development of Big Hairy Audacious Goal (BHAG) that the participants of the Canadian Authority Team presumed would be challenging but possible.

The first workshop finished with lots of projects, unresolved issues, and enjoyment about the future. Among the first and second workshops, members of the Canadian Management Team caused their own organizations. Issues, decisions and questions which were addressed within the Canadian Leadership Team were discussed throughout the business. The main discussion concerned the best Hairy Audacious Goal and the relative emphasis of income and customer loyalty over the brief and long lasting. A consensus commenced to emerge that the right and proper strategy for Microsoft was to argue for a slower growth rate in profits the short term, invest in customer satisfaction and then leverage that devotion for a far more secure stream of revenues in the future.

Frank Clegg took this idea to the professionals in Redmond and reviewed the implications of this strategy, including earnings projections, risk engaged, the budget implications, and the way the strategy aligned with corporate and business and other marketing organizations initiatives. The result of these interactions became the main topic of opening discussions at second workshop.

The cautions but positive support from the organization organization allowed the Canadian control team to go onward on its proper objective. In second workshop, the organization's quest and principles were finalized; calendar year by year earnings goals were decided upon to attain the Big Hairy Audacious Goal, and these goals were broken down and allocated to specific communities and managers. Finally, key customer and spouse loyalty programs were set up and outlined. Ownership for different initiatives was designated and a tactical change plan originated. Frank Clegg pressed the group on its decision to stress customer commitment and challenged the group with several cases that tempted those to operate off satisfaction for revenue. These scenarios helped fix the Canadian authority team's commitment with their strategy.

The important area of the strategic change plan that arrived was a talk and decision to tie the average person performance appraisals of Canadian leadership team all together also staked their end of fiscal time bonus deals to the achievements of client satisfaction, instead of earnings goals.

The strategic change attempts at Microsoft Canada are essential for few reasons. First, the Canadian organization's realization of the benefits of client satisfaction and commitment was important in moving the bigger Microsoft Corporation to look at its values in this field. Business Week reported on the changes Steve Ballmer was making in the organization; they shown the increased need for customer devotion in Microsoft's strategy and composition changes. Second, the organization learned how to arrange a strategic planning work. In the second season since this effort commenced, Sandra Palmero performed built a stronger strategic planning group and taken more and more responsibility for driving a car the strategic planning process. Even while the organization Microsoft company was making important changes in its reporting structure, business process, financial systems, the Canadian company was able to adapt using its own resources and knowledge. Finally, the Big Hairy Audacious Goal is becoming an institutionalized part of the business that drives thinking and decision making in the business.

In framework with the situation in hand we live suppose to work on a few activity related to the truth in hand. First of all, let us discuss the history of the business in hand, which is Microsoft Canada. Microsoft Canada Inc. was proven in 1985. It is the Canadian subsidiary of Microsoft Corp. the worldwide head in services, software and alternatives that help inhabit and small business realize their full probable. Microsoft Canada provides countrywide sales, marketing, talking to and local support services in both France and English. It includes its headquarters in Mississauga and has nine local offices across the country dedicated to empowering people through great software- anytime, anywhere and on any devise. Subsequently, why don't we now discuss the circumstances that led the business to undergo strategic change. Frank Clegg, President of Microsoft Canada, argued that the Canadian market was different and under developed and it possessed a different mix of customers. Thus it demanded for different rivals and different development opportunities. Another scenario was that the percentage of marketplaces size and growth of software sales and employees computer systems shipments were below worldwide averages. These circumstances demanded a specific strategy. Thirdly, the kind of change that was applied in the Microsoft Canada was basically strategically. The change has been designed in such a way that every aspect of the organization beginning with legal staffs, recruiting, service business and Microsoft consultant, marketing managers, customer support and managers in charge of different segments of Microsoft business including enterprise customer, small and medium business, the Microsoft Network and the Xbox were taken into account. The senior people of the business have tried its better to formulate and design the strategically change in that manner that it helps Microsoft Canada to increase its percentage market talk about and gain better progress. Fourthly, in order to include the strategically change into the organization the involvement of every member of the business is very necessary. The strategically change was initiated by Frank Clegg, Leader of Microsoft Canada and Sandra Palmero, Director of Strategic Planning. Sandra Palmero along with Richard Reynolds, her Senior Marketing Director, had made and implemented a participative process of tactical planning. Sandra conducted the OD specialist who had worked with them and contracted to create and apply a Strategic planning process for the Canadian corporation. Fifthly, the methods used in employing the strategically change were quite simply workshops, tasks and discussions of issues related to work. Canadian Management Team was shaped by members of various departments of the business that were centered on developing and utilizing strategically change in the Microsoft Canada Company. During the first workshop the Canadian Management team used the pre work data to execute an environmental scan. They talked about, debated, and in the end came for some contracts about the styles affecting the business. Predicated on that check, the group engaged in a vision and value creation exercise and lay out an initial set of short and long-term goals. These activities let to many important decisions for new marketing organizations. The Canadian command recognized that customer devotion would and really should become a driving a car force for the organization. A consensus began to emerge that the right and proper strategy for Microsoft was to argue for a slower development rate in income the short term, invest in customer satisfaction and then leverage that loyalty for a far more secure stream of revenues in the future. In second workshop, the organization's mission and beliefs were finalized; calendar year by year earnings goals were decided upon and these goals were broken down and allocated to specific organizations and managers. Quite part of the proper change plan that surfaced was a talk and decision to tie up the individual performance appraisals of Canadian authority team as a whole also staked their end of fiscal season bonus products to the success of client satisfaction, rather than revenue goals. Steve Ballmer increased the importance of customer loyalty in Microsoft's strategy and structural changes as well as the organization discovered how to arrange a proper planning work. Microsoft organization has made important changes in its reporting structure, business process, financial systems; the Canadian company could adapt which consists of own resources and knowledge. Big Hairy Audacious Goal has become an institutionalized part of the corporation that drives thinking and decision making in the business. Finally, the main changes that contain been observed in the performance level of the employees improving along with rise in the ratio of market share which led to its development both interior as well as exterior. Also, the Canadian Control Team and the Big Hairy Audacious Goal was forever included in the framework of the organization.


Strengths of Bureaucratic organizations are as follows:

Higher level of consistency is maintained in decisions and execution of jobs. The control exerted by the top quarters or top level management ensures that the systems and delivery of services to the beneficiaries are good laid down steps. The major and important final decisions created by top management, considering various perspectives of organization. Within this aspect the powers and interests of various stakeholders also considered care in providing the final results. Another benefit is way better cost control and management.

Weaknesses of Bureaucratic organizations are the following,

The higher level of bureaucracy leads to lack of invention and development in the business, which brings about lack of competitive advantage using circumstances. Another disadvantage is that higher the composition and communication ladder impedes the rate of communication and decision making, and velocity of response in emergency situations. The drive of employees drops due to lower degree of delegation of duties and obligations and lower empowerment. . What must be understood is only that the strait jacket of bureaucratic organization paralyzes the individual's effort, while within the capitalist market culture an innovator still has a chance to succeed.


Managing change can be an unavoidable part of Organizational Development. Organization Development is about how people and organizations function and getting them to operate better. The field is based on knowledge from behavioral technology disciplines such as mindset, social mindset, sociology, organizational behavior, business theory and management. OD programs are long-term, organized, sustained attempts.

Various explanations of OD are

""Business development refers to a long-range effort to boost an organization's problem fixing capabilities and its own ability to handle changes in its exterior environment by using internal or external behavioral-scientist consultants, or change agencies, as they are sometimes called. ""(Wendell French)

""Company development is a system-wide process of data collection, identification, action planning, treatment, and evaluation aimed at (1) improving congruence among organizational framework, process, strategy, people, and culture; (2) growing new and creative organizational alternatives; and (3) develop the organization's self renewing capacity. It occurs through the collaboration of organizational members working with a big change agent using behavioral science theory, research, and technology. ""(Michael Beer)

Thus, Company development is something based and large application that exchanges behavioral knowledge knowledge to the planned improvement, and encouragement of the process that lead to success and efficiency of the organization. All OD programs have three basic components: identification, action and program management. The symptomatic component represents a continuous assortment of data about the full total system, its subunits, its operations, and its culture. The action aspect consists of all the activities and interventions made to increase the organization's functioning. The program management component encompasses all activities designed to ensure success of the program.

The process of Organizational Development is quite complicated and the completion of the change process consumes a lot of time with at least one calendar year and sometimes continues indefinitely. There will vary approaches to the procedure but the regular process includes seven steps, that are initial examination, data collection, data responses and confrontation, action planning and problem solving, team building, inter group development and analysis and follow-up.

organizational development process

The pursuing steps are essential steps taken into consideration while implementing what other kinds of organizational development:

Communications patterns, styles and moves.

Goal environment.

Decision making, problem solving, and action planning.

Conflict quality and management.

Managing interface relations.

Superior- subordinate relations.

Technological and anatomist systems.

Strategic management and long-range planning.

Vision/ Objective formulation.

Organizational learning.

Task 2


The key stakeholders in Microsoft Canada can be folks from the departments and degrees of the organizations. However in general, the next people will be the stakeholders of Microsoft Canada

Financial analysts

Business analysts

Forecasting or sales specific contributors


IT specialists and administrators.

Legal staffs

Human resources

Service business and Microsoft consultant

Marketing managers

Customer support

Managers accountable for different sections of Microsoft business including organization customer. Etc.


As reviewed already it has been seen that the aforementioned cited stakeholders are the main users of the Canadian Management Team and performs an extremely significant role in the successful formation and implementation of Strategically Change in Microsoft Canada. The stakeholders, almost all of whom are also the customers of the Canadian Command Team have played out important role in the workshops, tasks, and conversations that was in essence done to choose upon utilizing new strategically changes required by Microsoft Canada to achieve its long-term and short-term goals.

Also in the beginning of this record we have talked about three different models that are usually found in any firm as models for implementing and handling change, that are, Lewin's Planned Change Model, Action Research Model and Positive model. After going right through the entire circumstance at hand it is seen that the Action Research Model best suits the procedure in which execution of strategical change was completed in Microsoft Canada. As the Action Research Model of change advises, Microsoft Canada firstly, identified the problem that the organization was facing and having done that it was mentioned upon by professionals of the business and data was compiled from various resources to analyze the challenge to become able to provide with the best possible solution. Finally, The Canadian Management Team acted as the Action team that helped to implement the alternatives and bring in the Change in Microsoft Canada. Thus, the above mentioned report is an excellent example of applying and managing change within an organization.

Task 3


UnfreezingLewin's Planned Change Model



Action Research Model

Data Gathering after Action


Joint Action Planning

Joint Identification of Problem

Feedback to Key Client or Group

Data Gathering and Primary Diagnosis

Consultation with Behavioral Knowledge Expert

Problem Identification

Positive Model

Design and Deliver ways to make the Future

Envision a Preferred Future

Discover Themes

Inquire into Best Practices

Initiate the Inquiry

There are various types of change that an organization may put into practice.


It is often remarked that the only real constant thing in the planet is Change and with that said in the current so fast moving world and current economic climate, every organization needs to put into practice change in its working framework and framework to have the ability to cope up with the changing environment. Today, organizations essentially go for a change in order to be up to date with the existing world and are also able to manage up with the increasing competition. Change suiting to the organization helps the organization to attain better brand and a increased market talk about. Also change in the framework and working environment usually helps the business to provide its employees to be happy and satisfied employed in the organization and present maximum effective lead to the productivity of the organization. Thus there could be a number of reasons that may have resulted in any organization's decision to put into action change in the business. In case of Microsoft Canada, Frank Clegg, Leader of Microsoft Canada, argued that the Canadian market was different and under-developed and it had a different mixture of customers. Thus it demanded for different competition and different progress opportunities. Another circumstances was that the ratio of marketplaces size and development of software sales and employees personal computers shipments were below worldwide averages. These situations demanded a professional strategy. Thus this was the major reason that led Microsoft Canada to choose to implement Strategic Change in the business.

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