m.semugement in Action 487 Were Deadly COVID-19 Outress shoard Carnival Cruise Ships the result of Manager Resistance to Change? This case examines the COVID-19 outtakes that occurred aboard Cumival cruise ships in the spring of 2020. By the end of April, the outbreaks hal resulted is more than 1.300 positive care of the virus and at least 39 death Let's begin by considering a timeline of events so that you can evaluate the behavice and decisions made by Carnival leadership TIMELINE OF EVENTS January 30 Carnival ship Controle in docked near Rome. All 6.000 passengers and 1 000 crew membenare quarantined after a woman and her partner became ill with moptoms that could be COVID-19. February 1, 11:21 pm. The Carnival Diamond Princess is sailing sound Asia when representative from the company's sanitation vendor sends an e-mail to the chief administrative officer and a puest services account. The purpose of the e-mail is to alert the Diamond Princess crew that a woman in Hong Kong, who has recently been aboard the ship. had tested positive for COVID-19 February 2, 11:33 Records show that Carnival's chief medicale, Grant Tarling, send an email to Hong Kong health whorities with the subject line "Confirmed COVID 19 Case. In the e-mail. Turling list the infected passenger's name, ipe and Princess Margaret Hospital room number February 2,6:44 pm. According to statements from Carnival after the-fact, this is when Turling is actually made aware of the confirmed COVID-19 case February 3, 6:00 pm Dumond Prince Captain Gennaro Amma announces to the ship's passengers that they may have been exposed to COVID-19. He adds that no one on board has reported its but that they should avoid close contact with anyone showing respiratory distress, follow proper hand-washing protocol, and contact the ship's infirmary if they begin to feel symptoms. According to some of the ship's passengers, the crew continues to promote social activities, guests enjoy bars and buffets, people steam in suunas, Ind the evening's opera goes on as planned February 3Evening: The Dumond Princett arrives in Yokohama. Japanese health workers immediately begin conducting medical screenings of the passengers February 3-Also on this day, news reports of countries denying entry to cruise ships around the world begin to surface February 4 Carnival spokesman says in statements after the fact that by this day the staff has discontimeed most scheduled activities February 5. Japanese officials institute a ship-wide quarantine regaining passengers to stay in their cabins until further notice. According to Carnival CEO Amold Donald on this day he takes control of the company's response to the less but had been made aware of it previously February 27. There are now 6/96 confirmed cases of COVID-19 abound the Diamond Princess 4 March 4: As the Carnival Grand Princess heads to Mexico, passengers receive a notification from the office of Grant Tarling under their chin doors. The message says that the CDC is looking into a small cluster of COVID-19 cases in California that may be tied to the ship. The Grand Princes makes a U-turn and heads back toward California Passengers notice that crew members are wearing gloves and setting out hand sanitizing stations. Events on the ship go on as planned, Page 453including swimming card games, dance classes, concerts, and an evening show. March 5: Grand Princess captain John Smith announces a quarantine over the ship's loudspeaker. All passengers must return to their cabins indefinitely. According to some passengers, many detour to the buffet before complying March & The CDC issues a public health advisory to warn US citizens to avoid all cruise ship travel March 9: The Grand Princess docks in Oakland, California, and is immediately commandeered by the CDC. For the next 2 weeks, passengers shelter in place in their cabins and helicopters drop supplies and COVID-19 tests down to the ship's decks. March 25 of the 1.103 tests conducted, 103 have come back positive, 699 have come back negative, and the remaining are pending. After this date, no additional test results are publicized EXECUTIVES RESPONSES Many have wondered why Carnival wasn't quicker and stricter with quarantines aboard is ships. After all, throughout the crisis, the CDC repeatedly wamed that viral outbreaks would be particularly difficult to contain on cruises for several reasons (eg. age and health of passengers, close physical proximity throughout the ship, shared sand quarters, etc.). CEO Amold Donald maintained that the rate at which COVID-19 spread was the same in an airport terminal, a subway station, a restaurant, a theater, a stadium," and that any evidence of a higher infection rate had "Nothing to do with cruise ships." At one point, Carnival's chief communications officer Roger Frizzell defended the company's position by passing around a Bussfeed article that reported on multiple COVID-19 deaths having resulted after a family funeral service. (The CDC estimated infection rates aboard the affected ships at close to 20%, while the infection rate for the general population was closer to 3%) Camival's executives maintained a sense of pride in their response to the viral outbreaks, Donald told reporters, I wasn't like there were protocols, and that this was established. You're at sea, you're moving people around, and the rules are changing as you go." He added, "This is a generational global event -- it's unprecedented. Nothing's perfect, OKT Jan Swart, president of Princess Cruises, thinks the company did everything it could have been expected to do. "It's very easy and Monday morning, you know, 20/20 hindsight, to say what's the view of what should have been occurring." said Swartz, adding "We did our best to take care of people." She believes the company's response may even tuve improved its reputation with some of its customers. There are many loyal Princess guests who have told us that this has actually cemented Princess as their No -1 vacation choice > BACKLASH John Padgett, Carnival's chief experience and innovation officer, told reporters that the company's executives were aware of the magnitude of the virus as far back as Joy 25 Padgett had been in contact with one of the company's manufacturers in Wuhan and had leamed details about the virus that he discussed with the team, including Donald "The biggest thing about that --it's a learning I don't think I'll ever forget, and we shared it with Amold when we were talking is that we actually had insight into the global situation much earlier than most." If Carnival's executives had chosen to make different decisions during the outbreaks, it's possible that the lives and health of numerous passengers could have been pared. In addition, executives decisions had wider-ranging impacts. Sald City Friedman, epidemiologist and head of the CDXC cruise ship task force, "If these ships bad soopped sailing, large team could all be working on helping states and local public health authorities with their community outbreaks By July of 2020, Congress had opened an investigative probe to examine Carnival's response, the Australian police were conducting a criminal investigation to determine whether the company had purposefully lied to authorities about passengers health in order to dock one of its ships in Sydney, and Cumival was facing multiple individual and class action lawsuits 172 Amold remained confident that consumer demand for cruises would bounce back after all the negative noise" had a chance to die down. Application of Chapter Content 1. Using Figure 10.1, describe the forces for change both inside and outside Carnival during the outbreaks. 2. Does Carnival need adaptive, innovative, or radically innovative change? Explain 3. Utilize Lewin's model of change (Eigure 10.2) as a blueprint to describe how Carnival's executives might inspire change at Carnival 4. Use a force-field analysis to explain the changes that did and did not occur at Carnival during the outbreaks. 5. Think about the outbreaks of COVID-19 aboard Carnival cruise ships and utilize the organizational development process (Figure 10.4) to remedy the issue 6. What specific reasons can you see for Carnival executives' resistance to change? Explain. Page 454 m.semugement in Action 487 Were Deadly COVID-19 Outress shoard Carnival Cruise Ships the result of Manager Resistance to Change? This case examines the COVID-19 outtakes that occurred aboard Cumival cruise ships in the spring of 2020. By the end of April, the outbreaks hal resulted is more than 1.300 positive care of the virus and at least 39 death Let's begin by considering a timeline of events so that you can evaluate the behavice and decisions made by Carnival leadership TIMELINE OF EVENTS January 30 Carnival ship Controle in docked near Rome. All 6.000 passengers and 1 000 crew membenare quarantined after a woman and her partner became ill with moptoms that could be COVID-19. February 1, 11:21 pm. The Carnival Diamond Princess is sailing sound Asia when representative from the company's sanitation vendor sends an e-mail to the chief administrative officer and a puest services account. The purpose of the e-mail is to alert the Diamond Princess crew that a woman in Hong Kong, who has recently been aboard the ship. had tested positive for COVID-19 February 2, 11:33 Records show that Carnival's chief medicale, Grant Tarling, send an email to Hong Kong health whorities with the subject line "Confirmed COVID 19 Case. In the e-mail. Turling list the infected passenger's name, ipe and Princess Margaret Hospital room number February 2,6:44 pm. According to statements from Carnival after the-fact, this is when Turling is actually made aware of the confirmed COVID-19 case February 3, 6:00 pm Dumond Prince Captain Gennaro Amma announces to the ship's passengers that they may have been exposed to COVID-19. He adds that no one on board has reported its but that they should avoid close contact with anyone showing respiratory distress, follow proper hand-washing protocol, and contact the ship's infirmary if they begin to feel symptoms. According to some of the ship's passengers, the crew continues to promote social activities, guests enjoy bars and buffets, people steam in suunas, Ind the evening's opera goes on as planned February 3Evening: The Dumond Princett arrives in Yokohama. Japanese health workers immediately begin conducting medical screenings of the passengers February 3-Also on this day, news reports of countries denying entry to cruise ships around the world begin to surface February 4 Carnival spokesman says in statements after the fact that by this day the staff has discontimeed most scheduled activities February 5. Japanese officials institute a ship-wide quarantine regaining passengers to stay in their cabins until further notice. According to Carnival CEO Amold Donald on this day he takes control of the company's response to the less but had been made aware of it previously February 27. There are now 6/96 confirmed cases of COVID-19 abound the Diamond Princess 4 March 4: As the Carnival Grand Princess heads to Mexico, passengers receive a notification from the office of Grant Tarling under their chin doors. The message says that the CDC is looking into a small cluster of COVID-19 cases in California that may be tied to the ship. The Grand Princes makes a U-turn and heads back toward California Passengers notice that crew members are wearing gloves and setting out hand sanitizing stations. Events on the ship go on as planned, Page 453including swimming card games, dance classes, concerts, and an evening show. March 5: Grand Princess captain John Smith announces a quarantine over the ship's loudspeaker. All passengers must return to their cabins indefinitely. According to some passengers, many detour to the buffet before complying March & The CDC issues a public health advisory to warn US citizens to avoid all cruise ship travel March 9: The Grand Princess docks in Oakland, California, and is immediately commandeered by the CDC. For the next 2 weeks, passengers shelter in place in their cabins and helicopters drop supplies and COVID-19 tests down to the ship's decks. March 25 of the 1.103 tests conducted, 103 have come back positive, 699 have come back negative, and the remaining are pending. After this date, no additional test results are publicized EXECUTIVES RESPONSES Many have wondered why Carnival wasn't quicker and stricter with quarantines aboard is ships. After all, throughout the crisis, the CDC repeatedly wamed that viral outbreaks would be particularly difficult to contain on cruises for several reasons (eg. age and health of passengers, close physical proximity throughout the ship, shared sand quarters, etc.). CEO Amold Donald maintained that the rate at which COVID-19 spread was the same in an airport terminal, a subway station, a restaurant, a theater, a stadium," and that any evidence of a higher infection rate had "Nothing to do with cruise ships." At one point, Carnival's chief communications officer Roger Frizzell defended the company's position by passing around a Bussfeed article that reported on multiple COVID-19 deaths having resulted after a family funeral service. (The CDC estimated infection rates aboard the affected ships at close to 20%, while the infection rate for the general population was closer to 3%) Camival's executives maintained a sense of pride in their response to the viral outbreaks, Donald told reporters, I wasn't like there were protocols, and that this was established. You're at sea, you're moving people around, and the rules are changing as you go." He added, "This is a generational global event -- it's unprecedented. Nothing's perfect, OKT Jan Swart, president of Princess Cruises, thinks the company did everything it could have been expected to do. "It's very easy and Monday morning, you know, 20/20 hindsight, to say what's the view of what should have been occurring." said Swartz, adding "We did our best to take care of people." She believes the company's response may even tuve improved its reputation with some of its customers. There are many loyal Princess guests who have told us that this has actually cemented Princess as their No -1 vacation choice > BACKLASH John Padgett, Carnival's chief experience and innovation officer, told reporters that the company's executives were aware of the magnitude of the virus as far back as Joy 25 Padgett had been in contact with one of the company's manufacturers in Wuhan and had leamed details about the virus that he discussed with the team, including Donald "The biggest thing about that --it's a learning I don't think I'll ever forget, and we shared it with Amold when we were talking is that we actually had insight into the global situation much earlier than most." If Carnival's executives had chosen to make different decisions during the outbreaks, it's possible that the lives and health of numerous passengers could have been pared. In addition, executives decisions had wider-ranging impacts. Sald City Friedman, epidemiologist and head of the CDXC cruise ship task force, "If these ships bad soopped sailing, large team could all be working on helping states and local public health authorities with their community outbreaks By July of 2020, Congress had opened an investigative probe to examine Carnival's response, the Australian police were conducting a criminal investigation to determine whether the company had purposefully lied to authorities about passengers health in order to dock one of its ships in Sydney, and Cumival was facing multiple individual and class action lawsuits 172 Amold remained confident that consumer demand for cruises would bounce back after all the negative noise" had a chance to die down. Application of Chapter Content 1. Using Figure 10.1, describe the forces for change both inside and outside Carnival during the outbreaks. 2. Does Carnival need adaptive, innovative, or radically innovative change? Explain 3. Utilize Lewin's model of change (Eigure 10.2) as a blueprint to describe how Carnival's executives might inspire change at Carnival 4. Use a force-field analysis to explain the changes that did and did not occur at Carnival during the outbreaks. 5. Think about the outbreaks of COVID-19 aboard Carnival cruise ships and utilize the organizational development process (Figure 10.4) to remedy the issue 6. What specific reasons can you see for Carnival executives' resistance to change? Explain. Page 454