Background:
An automotive company facing losses and inefficiency brought in a change leader (e.g., Carlos Ghosn at Nissan) to implement transformational changes in operations and work practices.
The goal was to restore profitability and change the way people worked across functions.
Application of the Three Stages:
Unfreeze:
The leader openly presented harsh performance realities, such as losses and declining market share, to show that continuing in the same way would be disastrous.
Cross-functional teams were formed, and employees were involved in diagnosing problems, which challenged old assumptions and reduced denial.
Change:
New action plans were launched across functions (production, procurement, marketing), and teams were empowered to redesign processes.
Strong communication and engagement strategies were used to manage resistance and keep employees informed and motivated.
Refreeze:
New performance measures, cultural norms, and recognition systems were introduced to lock in the new behaviors and prevent a return to old habits.
Continued reinforcement helped maintain the new, more efficient, and collaborative work style.