HRM587 Week 8 Final

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Week 8 Course Project
Anthony Jones
DeVry University
HRM 587 Managing Organizational Change
Professor Miles Smith
Date: November 19, 2025
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Table of Contents
A Comparative Analysis of Organizational Change ................................................................................ 3
Microsoft's Leadership Change ............................................................................................................. 3
Application of Change Images: .............................................................................................................. 3
General Electric's Organizational Restructuring under Jeff Immelt ................................................ 3
Application of Change Images:.............................................................................................................. 4
Comparative Analysis ............................................................................................................................. 4
Determining the Change............................................................................................................................. 5
Diagnostic Model Selection .................................................................................................................... 5
Application of the McKinsey 7S Model................................................................................................. 5
SWOT Analysis ....................................................................................................................................... 6
Comparative Analysis and Effectiveness Assessment .......................................................................... 7
Recommendations ................................................................................................................................... 7
Communication Piece ................................................................................................................................. 8
Analysis of a Media Piece ........................................................................................................................... 9
Microsoft’s $3.43 Billion Investment in Germany for AI and Data Centers ..................................... 9
Communication of Change: ................................................................................................................... 9
Effectiveness of Communication: .......................................................................................................... 9
References:................................................................................................................................................. 10
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Managing Organizational Change
A Comparative Analysis of Organizational Change
Organizational change can be a challenging process which is usually led by leaders who must
navigate through pressures that are both internal and external. We will examine these significant
changes at Microsoft under CEO Satya Nadella and General Electric (GE) during Jeff Immelt's
tenure. By applying the three images of change, Director, Navigator, and Coach, we will
compare and contrast the change management strategies and how these approaches shaped each
company's path.
Microsoft's Leadership Change
Change Description: Satya Nadella was appointed CEO of Microsoft in 2014. He began his
tenure with a shift in the company's focus, gearing it towards cloud computing and a culture of
innovation and collaboration. Nadella initiated a strategic move towards Azure and Office 365,
with the goal of positioning Microsoft as a leader in the cloud domain.
Application of Change Images:

As a Director, Nadella steered Microsoft towards new strategic objectives, setting clear
targets for cloud services.

Adopting the Navigator image, he recognized the volatile tech landscape, guiding the
company with a flexible strategy to strengthen its market position.

Embracing the Coach image, Nadella nurtured Microsoft's talent, fostering a growth
mindset crucial for the company's reinvention.
General Electric's Organizational Restructuring under Jeff Immelt
Change Description: Jeff Immelt led GE through a substantial organizational restructuring,
divesting from various segments and refocusing on industrial and digital applications. The
restructuring aimed to adapt GE to the changing technological landscape and streamline its
operations.
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Application of Change Images:

Immelt's role as a Director involved decisive actions to divest and refocus GE's business
strategy.

As a Navigator, he managed the complex pressures of economic downturns and internal
resistance to change.

His Coach approach was evident in developing GE's leadership to drive new strategies in
the industrial sector.
Comparative Analysis
Similarities and Differences: Both Nadella and Immelt steered their respective companies
through significant transitions. Nadella's focus was on evolving Microsoft's culture and strategy,
while Immelt's changes at GE were more operationally focused and a response to external market
forces. Microsoft's change was visionary and internally motivated, whereas GE's was a
pragmatic response to the industry's evolution.
Impact of Images on Change: The Director image led to strategic clarity at both companies,
albeit with different focuses. The Navigator image was particularly relevant due to the dynamic
and uncertain markets both companies operated in. The Coach image at Microsoft resulted in a
thriving, innovative culture, while at GE, it focused on leadership development within a new
strategic context.
Effectiveness and Recommendations: Nadella's Coach-driven approach appears to have been
successful, aligning with Microsoft's ethos. Immelt's mixed Director-Navigator style faced
challenges due to external factors. Recommendations for future changes include maintaining
strategic flexibility and fostering an adaptive learning culture.
Actual Leadership Style: Nadella's leadership closely resembled the Coach, emphasizing
empowerment and innovation. Immelt displayed a blend of Director and Navigator, making
tough decisions but also adapting to new industry realities.
Evidence of Integration of Images in Management: Nadella integrated the Coach image
through initiatives like hackathons, while Immelt's Director stance was evident in his decisive
divestitures and the Navigator in his strategic adjustments.
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Conclusion
The comparative analysis of Microsoft and GE's organizational changes under the leadership of
Satya Nadella and Jeff Immelt, respectively, demonstrates the multifaceted nature of change
management. Each leader's approach, influenced by their dominant change image, had a
profound impact on the success and direction of their company's change initiatives. Nadella's
Coach image fostered a culture of innovation at Microsoft, while Immelt's Director-Navigator
approach navigated GE through a complex restructuring process. This analysis highlights the
importance of adaptable leadership in the face of organizational change and the potential benefits
of integrating multiple change images for a comprehensive change management strategy.
Determining the Change
This paper presents a comparative analysis of the organizational changes at Microsoft under
Satya Nadella and General Electric (GE) during Jeff Immelt's leadership. The McKinsey 7S
model, known for its comprehensive approach to organizational diagnosis, is employed to assess
the companies' strategies for change (Kotter, 2012).
Diagnostic Model Selection
The McKinsey 7S Model is utilized as an effective diagnostic tool to understand the complexities
of organizational change. The connection between its elements, which include Strategy,
Structure, Systems, Shared Values, Skills, Style, and Staff—provides a robust framework for
analyzing the efficacy of change initiatives (Beer & Nohria, 2000).
Application of the McKinsey 7S Model
Microsoft:

Strategy: Nadella introduced a cloud-first, mobile-first strategy, emphasizing innovation.

Structure: The organization was restructured to facilitate better collaboration and faster
decision-making (Ibarra, Rattan, & Johnston, 2018).

Systems: New systems and processes were established to support cloud services and
subscription models.

Shared Values: A shift towards a growth mindset and customer-centricity was cultivated.
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
Skills: Employee skills were developed to align with new technology trends and product
offerings.

Style: Nadella's leadership style promoted openness, empowerment, and a focus on
continuous learning.

Staff: Hiring and talent development practices were realigned to support the strategic
pivot.
GE:

Strategy: Immelt directed GE's focus back to its industrial roots and initiated a digital
transformation.

Structure: The company underwent significant divestitures to simplify its structure
(Tushman, & O'Reilly, 2016).

Systems: Operational systems were streamlined to enhance efficiency.

Shared Values: GE reinforced its commitment to innovation and operational excellence.

Skills: Employees were encouraged to develop skills in digital technology and lean
management.

Style: Immelt's directive style was necessary to navigate through the restructuring
process.

Staff: The workforce was resized and reshaped to align with the new strategic focus.
SWOT Analysis
Microsoft's Change Plan:

Strengths: Robust cloud services growth, strong leadership, and a culture of innovation.

Weaknesses: Late entry into the mobile market, dependency on legacy products.

Opportunities: Expansion in cloud computing, AI, and strategic partnerships.

Threats: Intense competition, rapidly changing technology landscape.
GE's Change Program:
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
Strengths: Strong brand reputation, leadership in industrial sectors.

Weaknesses: Complexity from diverse business units, operational inefficiencies.

Opportunities: Growth in renewable energy and digital industrial services.

Threats: Economic downturn effects, aggressive global competitors.
Comparative Analysis and Effectiveness Assessment
Comparing Microsoft and GE reveals that while both companies sought to realign their strategies
with market demands, their approaches differed. Microsoft's strategy under Nadella's leadership
was more internally driven, focusing on cultural transformation and innovation. In contrast, GE's
strategy involved more drastic operational restructuring due to external pressures.
Resistance and Strategies:
Microsoft:

Potential Resistance: Change fatigue from constant innovation pressure.

Strategy Response: Continuous communication and reinforcement of the growth mindset.
GE:

Potential Resistance: Employee skepticism toward repeated restructuring.

Strategy Response: Transparent communication about the strategic rationale and benefits.
Recommendations
For Microsoft, it is recommended to maintain its innovation trajectory and expand its cloud and
AI capabilities. For GE, further simplification and focus on digital industrial services are
suggested. Both companies should foster an environment that encourages adaptation to change.
Conclusion
The McKinsey 7S Model has provided insights into Microsoft and GE's change processes.
Microsoft's transformation has been effectively guided by Nadella's leadership, while GE's
restructuring under Immelt faced challenges due to external factors. Both companies would
benefit from ongoing adjustments to their strategies and maintaining a dynamic approach to
change management.
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Communication Piece
Communication Topic: Cloud Services Expansion
To: All Employees
From: Satya Nadella, CEO
Subject: Monthly Update on Our Journey to Cloud Leadership
Dear Team,
As part of our commitment to keeping you informed and engaged in our journey, I am thrilled to
share this month's progress on our cloud services expansion. Our dedication to becoming the
leader in cloud computing is not just about achieving business growth but also about inspiring
innovation across every aspect of our organization.
This month, we've seen remarkable advancements in our cloud infrastructure, enabling us to
deliver even more reliable and innovative services to our customers worldwide. These
achievements are a testament to your hard work and the collaborative spirit that defines us.
Looking ahead, we are focusing on integrating AI technologies to provide unparalleled service
offerings. Your feedback and ideas are invaluable as we navigate this exciting phase of our
growth.
Thank you for your continued dedication and contribution to our success. Together, we are not
just reaching our goals but exceeding them.
Warm regards,
Satya Nadella
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Analysis of a Media Piece
Microsoft’s $3.43 Billion Investment in Germany for AI and Data Centers
Microsoft recently announced a $3.43 billion investment in Germany, marking a significant step
in the company's expansion strategy of artificial intelligence (AI) and cloud computing. The
move, as reported by UPI News' Doug Cunningham, represents Microsoft's largest financial
commitment in the country and intends to double cloud service capacities in Frankfort, and also
establish a new infrastructure in North Rhine-Westphalia over the next two years. This analysis
explores how Microsoft communicated this transformative change to its stakeholders, focusing
on the strategic aspects of the announcement and its implications.
Communication of Change:
Microsoft’s approach to announcing its investment in Germany was aimed towards potential and
current customers, shareholders, and the general public. Brad Smith, Microsoft President and
Vice Chair, spoke about the company's vision. They want to empower the German economy
through AI, and position Microsoft as a key enabler of technological advancement in economic
sectors such as manufacturing and pharmaceuticals. The company chose a press release and
social media posts as their choice of platforms for this announcement. This was very strategic, as
it ensured a wide reach and engagement.
Effectiveness of Communication:
Microsoft successfully used this announcement to strengthen its image as a leader in AI and
cloud services while demonstrating a strong commitment to sustainability and ethical standards.
By explicitly stating the investment amount and detailing the expansion plan, the company
established a clear sense of urgency and scale of the initiative. The announcement also served as
a forward looking message to the market, signaling Microsoft’s dedication to leading the AI
revolution and enhancing cybersecurity measures in the face of increasing AI-enabled threats.
This proactive stance on using AI tools to disrupt hacking attempts while strengthening defense
mechanisms adds a layer of reassurance for customers and partners about the security and
reliability of Microsoft's platform.
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References:
Beer, M., & Nohria, N. (2000). Cracking the code of change. Harvard Business Review, 78(3),
133-141.
Boyle, C. (2022). Managing information in a pandemic: Microsoft 365 - A Case Study. IQ: The
RIM Quarterly, 38(1), 32–34.
Bradford, J. (2006) Green is green at General Electric: Is Jeff Immelt the man to pull
"Ecomagination" off? (2006). Strategic Direction, 22(9), 21.
https://doi.org/10.1108/02580540610686513
Cunningham Doug. (2024, February 15). Microsoft invests $3.43 billion in Germany to expand
AI and data centers. UPI. Retrieved February 15, 2024, from
https://www.upi.com/Top_News/World-News/2024/02/15/Microsoft-Germanyinvestment-AI-data-centers/5421708004493/
Fisher, D. (2005), "GE turns green", Forbes, August 15, Vol. 176 No. 3, pp. 81-5, ISSN 00156914
Hill, J. (2024, February 15). Microsoft invests €3.2 billion in AI and the cloud in Germany. CIO.
Retrieved February 15, 2024, from https://www.cio.com/article/1307933/microsoftinvests-e3-2-billion-in-ai-and-the-cloud-germany.html
Ibarra, H., Rattan, A., & Johnston, V. (2018). Satya Nadella at Microsoft: Instilling a growth
mindset. London Business School Review, 29(3), 26-29.
Kotter, J. P. (2012). Leading change. Harvard Business Press.
Nadella, S., & Euchner, J. (2018). Navigating Digital Transformation: An Interview with Satya
Nadella. Research Technology Management, 61(4), 11–15. https://doiorg.devry.idm.oclc.org/10.1080/08956308.2018.1471272
Tushman, M. L., & O'Reilly, C. A. (2016). Lead and Disrupt: How to Solve the Innovator's
Dilemma. Stanford Business Books.
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