Identify what could be done to secure their commitment?

Case study 5.1 Failure to convince others of the need for change at AT&T There are many instances where those who recognize effect on Western Electric's share of the market and the need for change want to embrace it but cannot convinced senior management of the need to switch because they are unable to convince others that the from a high reliability, high-cost manufacturing strategy change is necessary. Werther (2003) illustrates this with to one that focused on producing low-cost phones. the example of AT &T's telephone manufacturing Werther reports that this proposed switch was fiercely division (Western Electric) following deregulation of the resisted by engineers, managers and assemblers across telecommunications sector in the USA. Prior to the company because they believed that the company deregulation, consumers had no choice other than to should remain committed to its traditional policy of lease their telephones from one of the Bell operating producing high-quality if expensive phones. Their companies (another part of AT&T). These local resistance was so strong that the company was forced to operating companies were regulated monopolies, outsource the production of low-cost phones overseas. allowed to earn up to a set maximum return on their What could senior managers have done to persuade assets. This regulated monopoly situation encouraged engineers, managers and assemblers to support the AT&T to pursue a high reliability, high-cost strategy for required change? the manufacture of its telephone instruments. This strategy was attractive for a number of reasons: O GETTY MEN 1 The cost of the phones was included as part of the RCL asset base on which the local operating company's returns were calculated. This offered no incentive for STO them to persuade Western Electric to reduce its SEND manufacturing costs. 2 Western Electric's market was protected from the END threat of low-cost phones produced elsewhere because customers had to lease their phones from 4 RX the local Bell company. 3 High-quality, high-cost phones were more reliable. This reduced the cost of repairs and service for the operating company and also reduced the number of G complaints to the regulator about the quality of service. All this changed after deregulation. Customers were allowed to purchase and install their own telephones and were attracted to the many low-cost instruments that began to flood the market. This had a dramatic