Change is a necessary component of any successful organization’s development. Organizational change is emphasized as the main factor in the company’s development by creating innovations, new approaches, and strategies for further growth (Sharma, 2020).
Well-established and well-planned organizational change strategy could facilitate the” smooth transition” of the company through different challenges. Identifying and choosing an appropriate plan for the company’s development is critical, as it emphasizes the following stages and actions. Netflix company is selected for this analysis that is directed to identify the best organizational change among strategic, structural, people-centric, and remedial strategies. As expressed by Anthony et al. (2019), the company entered the top 20 companies with the most successful organizational changes in the past decades.
The company’s focus was directed to Lewin’s change management model using a remedial organizational change strategy (Kobiruzzaman, 2021). Although the company presents a fascinating result, it is essential to move forward with the time. It would be argued that strategic transformational change should be implemented for Netflix company, as it helps to update innovations, introduce minor changes, and develop skills of employees considering all factors relevant for production.
Organizational Change in Netflix History
Netflix is a media and entertainment company that showed fascinating outcomes after implementing organizational change in the last decade. Looking back to the history of the company, it could be observed found in 1997 by Marc Randolph and Reed Hastings in California, the USA, Netflix started to obtain global popularity after launching the company’s original show in 2011 which was the last chance to recovery (Modgil et al., 2020). An absolute change of course and relevant strategic planning was the thing that saved the company from its demise (Anthony et al., 2019).
Now, the company is an industry giant that extends its influence globally. According to Kobiruzzaman (2021), the miracle transformation of Netflix is an example of Lewin’s change management model that implies a multistep structure of the change in every organization. This type of change could be considered remedial, referring to the transformation in technologies and culture (Sharma, 2020). Netflix represents an excellent example of a company that could turn its weaknesses into a strength by changing the focus from one product to another.
Offered Organizational Change Pattern
Netflix’s ability to adapt and reconstruct its features along with world and industry technological changes prevented the company’s crushing several times. As highlighted by Modgil et al. (2020), in the past, too intensive innovations and biases associated with the company were the pitfalls that created difficulties in product development. Netflix’s organizational change was necessary to meet customers’ demands, being available on various gadgets, including computers, laptops, and smartphones (Kobiruzzaman, 2021).
By extending its platform, Netflix also expands its spheres of occupation covering new areas such as education and marketing. Although the organizational change conducted in Netflix for ten years led to the company’s prosperity, the situation could considerably change in the following five to ten years. The remedial organizational change includes immediate actions and time solutions, putting creativity on the line (Sharma, 2020). However, Netflix should combine strategic transformational change and remedial change for successful operation, as the system requires ultimate control and modifications.
Benefits of Strategical Change
The introduction of strategic transformation change will allow the evolution of already existing patterns. Strategic transformation change corresponds to minor transformations in existing aspects and policies, excluding large-scale changes (Sharma, 2020). This type of organizational change helps to continuously update the information and mission of the company, introduce new technologies, and develop new skills among employees. As Netflix already operates in America, Europe, and Asia, this organization type also helps consider and adapt its products to the local demands (Kobiruzzaman, 2021).
On the other hand, the strategy could be accepted due to increasing rates of globalization. Talking about employee conditions, positive changes associated with managing personnel, work climate, efficiency, employee expectation increase, and high production rates (Kobiruzzaman, 2021). Generally, strategy is beneficial from geopolitical, socio-economical, and environmental factors as it facilitates international connections and expands the company’s scales. Compared to the map or maze model that explains all steps in a hierarchal way, a strategic organization presents a more profound and comprehensive vision of the issue. Moreover, considering income and stockholders statements’ strategic planning covers more areas of an organization.
The Rationale for Using Strategical Change
The rationale for the change of the model covers various reasons, both practical and technological. Rapidly developing market and technology in the television and entertainment sector creates high competition among organizations. The previous management recognized an opportunity to enter the online entertainment market based on the customer’s demands (Kobiruzzaman, 2021). The strategic transformational change does not entirely change the idea of the previous management but provides proper modernization. Moreover, it properly organizes all personnel by distributing and specifying their role in the system.
According to Kobiruzzaman (2021), the change conducted in 2011 transformed Netflix into a comprehensive platform with original video content that could be accessed through different devices. New change considers the importance and popularity of social media platforms in modern society. Kobiruzzaman (2021) states that combining features of social media sites and the Netflix platform could give a favorable outcome by distinguishing the company from concurrent. Innovation and changes are required to present a business model that is beneficial as well as effective.
Benefits for Employees, Customers, and Shareholders
New structural changes could provide new opportunities not only for employees and organizers but also for customers and shareholders. According to Kobiruzzaman (2021), Netflix has implemented the blue ocean strategy that is applied to define a competitive market. This induces a uniformly changing environment where employees have to renew their knowledge and participate in training. Furthermore, structural changes help achieve a unique organizational culture that could not be found anywhere else (Modgil, 2020).
One feature related to the Netflix organizational structure is the trust of the employee and their abilities. At this point, company managers apply remedial organizational change by avoiding the flow of talents and allowing them to express their ideas (Sharma, 2020). In contrast, customers could benefit from the organized and planned infrastructure of the product. Customer engagement and satisfaction are a priority in applying organizational change (Modgil, 2020). As the company’s popularity and activities increase, shareholders, gain benefit as well.
To conclude, it could be stated that strategic transformational change could beneficially affect the Netflix company by creating innovations and minor challenges without leaving the central concept of the company. Moreover, this strategy takes into account geographical, political, and economic factors facilitating employee education. A combination of remedial and strategical planning could improve and increase employees’ effectiveness by properly managing staff, obtaining a desirable work climate, and corresponding to the employee’s high expectations. Moreover, the implementation of the strategy could be beneficial as it covers technological advances and innovations in designing the plan of use. The strategical organizational change allows the pass to the next level by reaching priority over their competitors by introducing the innovative product. In the case of Netflix, it is possible to unify social media features with the platform.
Anthony, S. D., Trotter, A., & Schwartz, E. I. (2019). The top 20 Business transformations of the last decade. Harvard Business Review. Web.
Kobiruzzaman, A. M. M. (2021). Netflix organizational change, organizational change examples. Netflix Organizational Change, Organizational Change Examples. Web.
Modgil, A., Jaiswal, A., Tyagi, P., Singh, A., Yadav, V., & Srinivas, V. (2020). Netflix – The Turnaround Story. International Research Journal of Engineering and Technology (IRJET), 7(4), 1612–1616.
Sharma, K. (2020). 4 types of organizational change explained – The whatfix BLOG: Drive digital adoption. The Whatfix Blog | Drive Digital Adoption. Web.