Now that you have identified some of the key environmental forces that are driving change at EKT, it is time to diagnose what needs to be change in the organization. As you continue your research, you document several factors that may help you identify what needs to be changed in the organization. After speaking with several groups across the organization, you come up with a number of key findings.

Findings from Your Additional Research.

As you continue working with EKT, a picture of the culture and goals of the organization and its employees begins to emerge. Through interviews with several of the employees, you make the following notes, including direct quotes from some of the key interviews.

The Learning Designers

As a group, all of the 8 learning designers who create and adapt the instructional materials seem to support the idea of using the technology to support the face-to-face trainings that are already in place. They also believe that beginning to offer the trainings fully online would be a great possibility and are aware of some web-based technologies and tools that could really work well for most of EKT's content.

The Training Specialists

There is some contention among the training specialists about the future direction of the company. Some of the trainers have been with the company for almost 20 years. Most have been there for 7 or more years. About half of the group seems to be interested in moving into more advanced formats of instruction, including video conferencing, video-based instruction, and distribution of materials in a digital format. A few even mentioned things like online discussions. Some of the trainers, though, are resistant to the idea of beginning to offer online training. They believe that effective learning can only happen in person, and that the online training will never be as effective. One training specialist later confided that there is a fear that many of the training specialists' jobs would be replaced by online courses.

Conflict - Bill Johnson (VP Marketing) and Jay Clark-Gardner (VP Learning Design)

It's become clear that there is some major conflict between Bill Johnson, the VP of Marketing, and Jay Clark-Gardner, the VP of Learning Design. Some of the stories you have heard over the weeks and months go back several years and include disagreements over territory, power struggles, and overall personal dislike for one another. It seems that this has had an impact on EKT's ability to create positive change toward growth initiatives and expanding clients and meeting their needs - they seem to oppose one another in most discussions, regardless of the topic.

More from Sally DeSuzan - VP Finance and Budgeting

Through several conversations with Sally DeSuzan, she really begins to open up about the financial situation at EKT. As costs continue to rise and revenue continues to decline, it appears that the organization could be in a very tough situation within the next 2-3 years. "Based on current trends, if we do not generate a significant increase in revenue in the coming 18-24 months, we will be looking at some pretty drastic measures to simply maintain operations. Through disciplined efforts we have been able to avoid taking on any significant debt, which has really been good, but we are now getting to the point where we will either need a large infusion or cash or we will need to begin laying off some of our less-productive employees. I've talked with Mike (the CEO) about this, and he is really beginning to understand the situation. Although it is risky, we've talked about getting a loan to do this, or even working to generate a few new clients, but at this point there is some disagreement on how to proceed."

Interview with Mike Harrenton - CEO

After a few weeks of research and interviews at EKT, you finally get the opportunity to speak with Mike Harrenton, the CEO of the organization and brother of the owner Ed Harrenton. "Listen, I know we are in a difficult situation here and have been for a while. I have done my best to stick with the strategy that has served us well for the last 25 years - in some circles we have been seen as the premier provider of leadership content, and we have really done well with this strategy. I am proud to stay that with some creativity and fidelity to our clients, we have been able to stay a strong company. But in the last 5-7 years our revenue has gone down, and I read in the Wall Street Journal that some of our bigger competitors out there are really making some strong gains over the last couple of years. I'm getting to the point where I am realizing that we are going to have to adapt our strategy to really stay competitive over the coming 24 months, and we really need to consider a 5 year plan for moving forward." When asked what is getting in the way of creating needed change, Mike laments, "part of our difficulty is the conflict between some of the departments. Marketing and Learning Design have been at one another's throats for years, and they have a pretty tough time aligning with some of the initiatives we have proposed and worked toward over the years. I think this will be something we will need to address if we are going to make some changes in the coming years. I want this company to be successful - I've been CEO since my brother stepped down 12 years ago, and I have at least 5 years of good leadership left in me and I really want to leave a positive legacy and a company that I can be proud of. I believe in EKT and I think we have what it takes to really move forward."

Current Partners

One theme that has kept coming up in your conversations with several of the employees at EKT is their loyalty and fidelity to their current business partners and clients. They have gone out of their way to maintain very positive relationships with these groups and even hold an annual holiday party at their headquarters in which they invite their partners. There is a strong desire to continue to maintain that kind of relationship with current clients.

As you learn more about where EKT's revenue is coming in, you realize that here are a few key partner clients that provide over 60% of the revenue for EKT. And while these partnerships continue to be ma in a positive way, there seems to be a lot of risk - if even one of these partnerships were to dissolve, EKT would be in a great deal of financial trouble.I have

Action Items

1. Review the findings above as well as your previous analysis of the environmental forces driving change at EKT.
2. Use Toolkit Exercise 3.2 (on page 92, Organizational Change 4thEdition) to diagnose problems at EKT. You will need to address each of the components described in the Nadler and Tuchman Organizational Congruence Model.
3. Diagnose what needs to be changed at EKT. What is the direction that you would recommend to them as consultant?
4. Report for EKT on your recommendations for change. Relate the rationale for the recommendations by referring to the Nadler and Tushman Congruence Model, which should be included as an appendix to the report. This report should not only provide a solid analysis to support the change recommendations, but serve as a "sales" document to move the change consulting to the next phase.