Explore an organizational change effort and demonstrates various errors that organizations often make.

Explore an organizational change effort and demonstrates various errors that organizations often make. St. John’s Hospital in Seattle, having grown to include two hospitals, began losing money in 2004. An executive meeting was called to discuss what needed to be done to make the hospital profitable again. The corporate attorney had recently gone to a reengineering forum and proposed the implementation of a change process. The attorney, charged with leading the change effort, developed seven principles, organized teams from both hospitals to develop proposals for their respective facilities, and coordinated consultants to reduce costs by about 20 percent.

The teams included employees who lacked experience in the focal area, but they were given six weeks to design new processes. Middle managers were informed that those not supporting the proposed changes would be considered disloyal. Implementation was required for all proposals.

Many of the changes did not work, increased costs, and caused resistance and anger among employees. The attorney blamed the employees’ sabotage and resistance for the effort’s lack of success and tried to enforce the changes. After a year, financial losses mounted, along with employee and patient dissatisfaction. St. John’s board began questioning the direction of the organization.

Using the (attached)Case Study Template, respond within the template as well as the following questions based upon your research.
1. Discuss the difficulties of organizational change
2. Analyze and identify problems occurring in an organizational change effort
3. Recommend solutions to organizational change problems
4. Discuss resistance to change and how to overcome it