change management intensive 2013-14 lecture

Change Management 2013-14

Dr. David Newlands – Module LeaderDr. Elias HadziliasDr Samar BaddarDr Maria VeludoDr Anna CanatoDr Athina Vasilaki

e.hadzilias@ieseg.fr Samarbaddar@Ymail.com mlv.international.hk@gmail.coma.canato@ieseg.fr ath.vasilaki@gmail.com

d.newlands@ieseg.fr Room B145

Introduction to the Module

Structure of Module

1. Introduction2. Truisms3. Technology and Change4. Scope of Change5. Social perspectives and Change6. Strategies for Change7. Techniques for Change8. Cultural Change9. Organisational Change10. The Individual and Change11. Leadership and Change12. Followers and Followership

Location of Materials

• No paper version distributed• pdf version full size of this presentation, together

with supplementary readings and background files, are held on the ieseg-online course site.

• Required reading – Global Business Handbook, Newlands and Hooper (2009), Gower.

Objectives: Students shall develop your skills to:• understand the key push and pull drivers for change• understand change processes• to carry out Structural, Functional, Cultural change Management• understand Change & TQM• understand Change & Business Process Re-engineering• analyse psychosocial issues of Organisational Change• appreciate differences between individual-level and organisational-level change• witness changes in leadership style • develop change management action plans• understand the difference between leading, facilitating, coaching training and

education• analyse Stress of Organisational Change• use Dynamic Process Model of Stress Management in the in the context of Change• explore Cross-cultural issues of Change Management• reflect on models that foster a change-oriented culture in organisations• enhance your ability to contribute to change at all levels and stages in the

commercial environment.

Assessment• 20% Participation – Attendance in both lecture and seminar on

Monday and Tuesday. Presentation to be submitted 1 month from Fridays date.

• 60% Group Presentation .docx – Preparation for this will take place within the tutorials. Topics are at the end of these notes. You will be given one to work on.

• 20% Multiple Choice Exam on Friday morning– Most questions – one bad, the rest good – give the bad

• Resistance to Change does not include:– Some questions - one good, the rest bad – give the good

• A leader of change must be:

Group Project Marking Criteria

• File Name• Following instructions• Clarification of the question• Identification of factors, influences and controls,

perception in time, relevance, • Plan to change from initial state to ideal state or • Full discussion of the paradigm or perspectives• Looking for completeness of answer not a number of

slides– Technical, humanistic, economic, commercial,

cultural considerations...

Group Project Criteria - continued

• Referencing (guidelines are on the site)• Originality• Completeness and clarity of answer• High value intellectual contribution• Extensive Use of foot notes added

General Statement about Marking Criteria• It’s not what you do

as much as • The way that you do it

• Style and substance

rather than

• Style over substance• i.e. professional quality presentation and complete

• Conformance to Specifications

These are the web sites that give you full text articles• http://search.epnet.com • Ask your librarian for a password• http://search.proquest.com/advanced?accountid=120221

• PLAGERISM MEANS YOU CHEAT & YOU BREAK THE LAW!– YOU GET ZERO, AND YOU GET TO HAVE A DISCIPLINARY HEARING! ENSURE

YOU REFERENCE CITATIONS– On the course ieseg-online site file 00 Plagiarism and Referencing.pdf is a file

that explains how to reference different materials correctly.– Ensure you read instructions on how to reference your work. This is the

difference between receiving your mark and zero. – Last year 14 students received zero & called for disciplinary hearing.

– Maintain a disciplined approach to referencing for all courses because it will help you for your memoire / consulting project

– Wikipedia is not academically acceptable as a reference.

Message à l’attention des étudiants d’Operations management

• Vous devez envoyer obligatoirement le fichier contenant votre travail afin d’effectuer l’analyse anti plagiat. ATTENTION, CET ENVOI A Turnitin DOIT IMPERATIVEMENT SE FAIRE DE VOTRE BOITE IESEG. Une fois le travail envoyé, vous recevrez dans votre boîte IESEG un message de la Société Turn-it-in indiquant la bonne réception de votre envoi. Un travail non analysé ne pourra pas être corrigé

• https://www.turnitin.com/

SubmissionsGroup PowerPoints with notes embedded to be submitted via email to

Turnitin, one month from Friday after the end of the course• File name: 1213I Question 1 through 20 SB, EH, DN MLV AC or

AV.pptx– Year 2011-12 Extensive– Question number chosen between 1 and 20– Initials of seminar group leader

• Examples• 1314 4 DN.docx • 1314 4 SB.docx• 1314 4 EH.docx• 1314 4 MLV.docx • 1314 4 AC.docx• 1314 4 AV.docx

• Ensure all group members names are listed and spelt as they appear on the official list.

Similarity and Effect0 – 4% Okay – marked as is, no further checking

5 – 9% File not assessed, no further action taken. Statement issued.

10%+ Statement issued that the anti-plagiarism result shall be passed to the director of studies, in order to call a disciplinary hearing.

File ‘00 plagiarism and referencing.pdf’ is available on the course site to enable you to understand how to avoid plagiarism and know how to reference correctly.

Since the group project is 60% of the course, it is certain that plagiarism will lead to failing the course, hence a retrapage will be required in addition to a disciplinary hearing.

File 00 Plagiarism and Referencing.pdf is on ieseg-online

Retrapage

Need a Retrapage Project ? – Each Individual• In your own words, discuss, compare and contrast

differences in management of change in large multi-national and SMEs.

• Minimum 5000 word individual report of which: – Minimum 1500 words literature review– Minimum 30 properly referenced sources are used in the

literature review– Minimum 1500 words corporate examples– Minimum 1000 words discussion– Minimum 1000 words conclusions– Less than 2% similarity to other sources

Seminar One

Exercise 1Key Questions 10 minutes

• Why are you here?• Why learn – go through years of training?• What do you want to get out of your time in higher

education?

Mission et Valeurs de l’IÉSEG IÉSEG’s Our Mission and Values

• Dans un contexte international, la mission de l’ IÉSEG est de préparer des managers acteurs du changement et de contribuer au renforcement d’organisations responsables, innovantes et humanistes. L’Ecole veut être reconnue comme une institution éducative très internationale et rigoureuse, avec des valeurs humaines fortes.

• In an international context, the mission of IÉSEG is to prepare managers who are able to initiate change and to contribute to the development of responsible, innovative and humanistic organizations. The School wants to be recognized as a very international and rigorous educational institution, with strong human values.

Mission et valeurs Our Mission and values

• Nos valeurs: Responsabilité, Tolérance, Respect des autres, Engagement, Esprit d’équipe, Force de travail, Modestie et Honnêteté.

• Our values: Responsibility, Tolerance, Respect of the people, Commitment, Team Spirit, Hard Work, Humility and Honesty.

Exercise 2 a15 minutes

• Individually, think of an occassion when you made a change.

• What did you think off first?• What did you do?• How did you make sure the change stuck?

• Write down the sequence of events that made the change.

• E.G. Stop A, reduce B, start C, start D later

• Professors – do the same just in case odd person

Exercise 2 b15 minutes

• With a colleague, compare notes.• Try to identify common characteristics• Session objective: Make a model that you both agree

on that represents what you did, the sequence, how you did it,

• Include what you considered, who you considered, what you measured

Exercise 2 c15 minutes

• Pairs work together with other pairs and compare notes

• Come up with an agreed model

• Present your model to the rest of the group using a laptop or the flip chart paper provided

Change Management

Perception and Scientific Evolution

• Simplistic– Not deep understanding– Earth is the centre of the universe

• Complex Conception• Explain how planets go backwards from time to time

• Profound Simplicity– See the wood for the trees– Newtonian physics

Paradigms

• A paradigm is a model that everyone explicitly or tacitly follows.

• Mass production, lean manufacturing and agile / mass customization are business paradigms.

• Quality Control (QC) switched to Quality Assurance (QA) and achieved radical improvements.

• Mass marketing switching to taylored/individually oriented marketing

• Often simple in conception, they may radically change the way work and business is done.

• => competitive advantage

How is a paradigmformed?

A group of scientists placed 5 monkeys in a cage and in the middle, a ladder with bananas on the

Every time a monkey went up the ladder, the scientists soaked the rest of the monkeys with cold

water.

After a while, every time a monkey went up the ladder, the others beat up the one on the ladder.

After some time, no monkey dare to go up the ladder regardless of the temptation.

Scientists then decided to substitute one of the monkeys. The 1st thing this new monkey did was to go up the ladder. Immediately the other monkeys beat him up.

After several beatings, the new member learned not to climb the ladder even though it never knew why.

A 2nd monkey was substituted and the same occurred. The 1st monkey participated on the beating for the 2nd monkey. A 3rd monkey was changed and the same was repeated (beating).

The 4th was substituted and the beating was repeated and finally the 5th monkey was replaced.

What was left was a group of 5 monkeys that even though they never received a cold shower,

continued to beat up any monkey who attempted to climb the ladder.

If it was possible to ask the monkeys why they would beat up all those who attempted to go up the ladder…..

I bet you the answer would be….

“I don’t know – that’s how things are done around here”

Does it sounds familiar?

Don’t miss the opportunity to share this with others as they might be asking themselves why we

continue to do what we are doing if there is a different way out there.

Your MSc2 « Consultancy Project »

"Only two things are infinite: The universe and human stupidity. And I am not so sure about the former."

Albert Einstein

1. Introduction

“If we are to achieve results never beforeaccomplished, we must expect

to employ methods never before attempted”

Francis Bacon1st Viscount Saint Alban, KC

(22 January 1561 – 9 April 1626)

"Nothing endures but change"

Heraclitus

http://www.videobash.com/photo_show/Hot-star-Wars-9540

If only…

http://www.orkutuncle.com/Funnypictures7

If I report it, will they read/listen?

The Pace of Change

http://www.videobash.com/photo_show/Grandma-on-playstation-9160

Is the change just adding technology to do the same old thing?

Inevitability - It’s going to happen, no choice

http://www.videobash.com/photo_show/Dog-FAIL-9536

It went wrong, who’s to blame?

Building blocks of Operations ManagementKLASSEN, R., 2006, Cases in Operations Management, Sage Publications, California.

Who Likes Change?

The ONLY person that likes change is a wet baby!

http://www.videobash.com/photo_show/Be-Nice-8751

http://gulfnews.com/news/region/iraq/saddam-hussain-executed-1.153215

Who Likes Change?Saddam Hussein Hanging

http://www.bbc.co.uk/news/in-pictures-15391289

Col Gaddafi was initially captured, with serious injuries, at around noon. The al-Jazeera news channel broadcast footage showing the dazed and wounded Col Gaddafi

gesticulating while being man-handled by rebel fighters. What happened next and how Libya's former leader died remains unclear. Differences among Libyan officials about

what to do with the body delayed burial on Friday.

http://www.bbc.co.uk/news/in-pictures-15391289

Salvage crews continue to pump oil off the stranded cargo ship, Rena, in an effort to remove as much as possible before bad

weather predicted for the evening threatens to break up the vessel and release more oil into the sea near the coast of New Zealand.

http://annexx51.wordpress.com/pr-101/us-flag/

From This

http://www.adbusters.org/files/downloads/jpgs/adbusters_corporate_flag.gif

To This

Truisms• First-timers are enthusiastic but clueless. • Old hands are amused but weary.

• New members are cheap.• Old members are expensive.

• Young people are full of bright ideas.• Old people have thought of it before, and decided

not to do it for several good reasons.

• Individuals - Dog psychology: What’s in it for me?• Groups – How does this protect us?• Managers – I get paid based on your results. If I

get a kick in the butt, so shall you. • Want to know about the CIA, 4 words? « Watch

your back, Jack » attributed to Admiral Greer, ‘Clear and Present Danger’

Managing Factors To Achieve Change

Leadership Knowledge Measures ResourcesFocusedActions Change+ + + + =

Knowledge Measures ResourcesFocusedActions Confusion+ + + =

Leadership Measures ResourcesFocusedActions Anxiety+ + + =

Leadership Knowledge ResourcesFocusedActions

GradualChange+ + + =

Leadership Knowledge MeasuresFocusedActions Frustration+ + + =

Leadership Knowledge Measures ResourcesFalseStarts+ + + + =

Larson, Alan, (2003), Demystifying Six Sigma, Amacom, p29

Process description level: Balance between Chaos & ComplexityChaos inSystem

Completeness of the Model

Chaos existing inComplexity of Reality

•Free for all•Unrepeatable•No metrics•Not written•Always try something else

Minimumin Chaos

•Balanced (Repeatable but flexible)•Proper metrics•Sharing good practices•Continuous improvement•Used widely, because all good guys do!

Chaos existing inComplexity of Model

•Everything structured•Bureaucratic•Too many metrics•Policy/procedure/directive•Not used / used slightly

Matrix organization structure

F1 P1 M1

F2 P2 M2

F3 P3 M3

MDFinance

Producti

keting

Product 1

Product 2

Operatingdepartments

Managers

DECISION MAKER

Human resources

Operations Accounting

marketing

Teams: Levels of participation

traditional work groups

efficient implementationof management decisions,

but waste and slow response shared leadership teams

cross functional co-ordination, more ownershipsupervisor unwillingness, middle manager threat

participative improvement team

broad base of experience brought to bear,turf issues; time pressure when

an add-on activity

flexible, highly responsive,but communication information significant;

costs of training

after Moran, Musselwhite and Zenger “Keeping Teams on Track”, Irwin, 1996.

Firms have three options...

Work harder….

…grow in number...

…or work SMARTER

Michael Drucker

• « Every organization should prepare to abandon everything it does »

• Every -- Everything – Abandon

• => Create a new Paradigm => Re-educate the monkeys

• This takes imagination – creativity, clarity of thought to create a new future, speed – do it fast.

Creating the Future

How CREATIVE are you?• An object will appear. Your job is to identify as many

uses for it as you can in two minutes.

http://www.sxc.hu/photo/205250

• 1 in 2 come up with 4 or less

• 1 in 500 come up with 8 or more

• 1 in 2000 come up with 16 or more suggestions

Process to follow to achieve Social Change

• How can you possibly expect to lead unless you have ideas?

• Collect ideas, • Filter ideas• Refine concepts• Create plans• Sell these to convince people to join you in the quest

to achieve…

Social Activity Change

http://www.videobash.com/photo_show/Double-Fisting-Bus-Driver-7360

http://www.videobash.com/photo_show/Dog-not-feeling-guilty-8965

It wasn’t me! To do and ask forgiveness

What training is available?

No offense is meant by this slide. The intention is to highlight internal logic used may not be effective.

Team Work

What are we trying to do?

Mentoring & Coaching ?

Who helps?

Who is involved?

Who is responsible?

To whom do we report?

Who else participates?

Who’s an insider?

http://www.videobash.com/photo_show/Dude-Your-House-Is-On-Fire-10028

Who is the client?

What do they do for themselves?

Are we involved too late to do anything of use?

Changing Roles

Respect for authority? Whose?

What gives people authority?

Their role

Their experience

Uniforms and insignia

Birth right?

Delegation?

Empowerment?

Knowledge?

They are outsiders?

Corporate Culture: In-house rules of the game?

Wish list: If only….

http://www.videobash.com/photo_show/Handicapped-Parking-10268

What stops it

from working?

What information do we need?

Is the information correct & reliable?

Information filtering

http://www.videobash.com/photo_show/Missing-comma-8532

Missing ‘,’ makes all the difference

Intelligence

• It is not the collecting of information that matters• Half the battle is analysing correctly• The other half is taking the right decision and enacting

• Information, Data, Intelligence• The phone book is full of information. Useful data is

the number and address of the person or business you are targeting. What you do with that data once you have it is intelligence – preparing a sales pitch, buying, visiting, interviewing, ….

http://www.videobash.com/photo_show/Box-vs-animal-7969

What is your perspective?

Shia Festival of Ashura, November« Some …walked on burning charcoals to inflict

suffering on themselves. »

Shia mark Ashura

25 November 2012 Last updated at 15:51 GMT

Some - like on this picture from Rangoon in Burma - walked on burning charcoals to inflict suffering on themselves.

http://www.bbc.co.uk/news/uk-20487638

http://www.videobash.com/photo_show/Just-A-Fence-Wait-OMG-7963

http://www.videobash.com/photo_show/The-LoL-Pic-of-the-Day-Self-Checkout-Comes-in-Handy-10019

What do we need?

Management style and effect Theory X Theory Y1 People hate work 1 People like work

2 People have to be 2 People drive themselves forced to work and work effectively

3 People prefer to be 3 People will take the told what to do initiative given opportunity

4 People are selfish 4 People will commit and have no interest themselves to objectives in the organization if it is beneficial to them

MacGregor concluded that

employee behaviour is the result of the style of management

Satisfiers and dissatisfiersHerzberg showed that some factors at work satisfy. other factors did not satisfy but could dissatisfy.

Satisfiers DissatisfiersMotivators Hygiene factors

Achievement AdministrationRecognition SupervisionAdvancement SalaryResponsibility Relationships

Work content Working conditionsIntrinsic factors Extrinsic factors

The Nature of ChangeUsually Initiated from above

Experienced by those below

Affects the ‘Hierarchy of Needs’

Modifies Roles

Changes the Balance of Power

Promoting New Order“There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle than to initiate a new order of things. For the reformer has enemies in all who profit by the old order, and only lukewarm defenders in all who would profit by the new order.

The lukewarmness arises partly from fear of their adversaries who have the law and tradition in their favour and partly from the incredibility of mankind who do not truly believe in anything new until they have had actual experience of it.”

Machiavelli (1513)

• The most dangerous thing for the long-term survival of a company is being successful at something.

• We get too complacent, and don’t want to change.

• Long service managers got their position because they made decisions a long time ago that are still of value to them today.

What you need to do to Initiate Change

• People have had plenty of time to learn and practice undesirable behaviours.

• Change requires– Stopping doing things not required,– Starting to do things that are needed– Learning to do these things faster, better and

cheaper than anyone else– Creating, maintaining and increasing the

competitive gap.– Being prepared to do all this over again.

Lean / Toyotism

Lewin’s Three Step Change Model

1. Unfreezing - involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo

2. Moving - new attitudes, values, and behaviors are substituted for old ones

3. Refreezing - involves the establishment of new attitudes, values, and behaviors as the new status quo

Degree of

Support for

Change

Creating AwarenessCreating Awareness

AssessmentInternal & External

CreatingImpetus

CreatingImpetus UnfreezingUnfreezing

BeginImplementation

Some Initial Failures and Successes

Process ImbeddingProcess Imbedding

Commitment toProceed

AdoptionAdoption

RefreezingRefreezing

Decision toImplement

….change is too difficult.Return to the old paradigm

Change Cycle

Degree of

Support for

Change

Performance during the Change Cycle

PerformanceGain

Self-esteemPerform

Self Esteem during the Change Cycle

DenialBlame others

Blame self

Despair

Testing new ways

Growingconfidence

Achievingresults

Adapted from Carnall (1995)

Emotionalresponse

Emotional Response during the Change Cycle

Adapted from Carnall (1995)

Immobilisation

Denial

Bargaining

Depression

Testing

Acceptance

Passive

Active

Applying Lewin’s Model to the Organization

• Unfreezing: the organization eliminates rewards for current behavior

• Moving: the organization initiates new options and explains their rationale

• Refreezing: organizational culture & formal reward systems encourage the new behaviors, the new way becomes the norm

• A prescriptive approach - involves the planned action necessary to achieve the changes. Changes may be imposed.

• Some companies decide to maintain a state of ‘slush’ – semi-refrozen yet still able to move. Glacial – frozen on top, water lubricates between the glacier and base rock

Scientific Management SchoolLooks at work organisation 'scientifically'

Based on the ' Division of Labour ' and the separation of ' planning ' and ' doing '

Management style is Task orientated

Examines and improves work methods

Each operator given a short repetitive task

Developed by F W Taylor, known as ' Taylorism '

Human Relations SchoolSees organisations as 'people' systems

Based on developing a win-win strategy

Management style is People orientated

Management systems based on delegatingdecisions and creating interesting jobs

Creates conditions in which employeeswant to work effectively & achieve objectives

Better motivation and commitment leads tohigher productivity and higher profit

Management concern for task and/or people

Concern for task

The managerial grid by Blake & Mouton

9, 99, 1

Human needs at work

1 Survival

2 Safety

3 Social

4 Esteem

Realization of potential 5 }

Psychologicalneeds

Sociologicalneeds

Physiologicalneeds

Maslow's Hierarchy of human needs

Management systems should be designedto enable employees to satisfy these needs

Motivation and Human BehaviourOrganisations are socio-technical systems.People are a part of the system & have objectives.Different groups of people have different objectives

The productivity of an organisation depends on the motivation and commitment of its employees.

Understanding human behaviour enablesmanagers to design systems that succeed.

Success is based on developing a win-win strategyenabling employees to satisfy their objectives inways that contribute to corporate objectives.

Circular model of motivationMotivation

Job satisfaction Productivity

Expectancy Model of Motivation

Performance

Value of reward

model by :Lawler & Porter

SatisfactionIntrinsicrewards

Extrinsicrewards

Motivationand effort

Roleperception

Perceivedeffort-rewardprobability

Perceivedequitabilityof rewards

Abilitiesand

traits

Rewards

• It isn’t the reward.

• It’s being rewarded, and

• Being recognized for your contribution

• Saying ‘Thank you’ publically.

The use of Cognitive Dissonance• Four different types of cognitive dissonance

recognised by the literature

• Toyota and many performance enhancing companies use one particular form

• Low financial rewards based on the principle– Being rewarded is more important than the

reward

€N is the amount of money perceived bythe individual as equal to the value theywould expect to be paid ‘too much’ forthe job, activity or recommendation.

€1M€5€0 €30 €N

Cognitive Dissonance Effect

Group FormationPatterns of behaviour differ at different stages of the 'life cycle' of a group.

Forming hesitancy, uncertainty

Storming conflicts arise with confidence

Norming shared views and expectations

Performing begins to perform effectively

Dorming complacency or 'falling asleep'

Mourning grief on closure of group

Project Team Life Cycle

PerformSt

Decline

Time (months)

DeathForm

0 5 10 15 20 25 30 35 40 45

Major Types of ChangeRate

of change

Discontinuous

Bumpy incremental

Smooth incremental

Source: Grundy, T. (1993) Implementing Strategic Change, Kogan Page, p. 25

www.ln.edu.hk/mgt/staff/robin/Change/EMBA%202%20revised.ppt

1 2 3 4 5 6 7 tells sells decides consults collects presents groupdecision decision decides ideas & problem defines group problemsource: Tannenbaum & Schmidt decides decides

Continuum of leader behaviourLeader centred Group centred

Leader autonomy

Groupautonomy

Kotter suggests eight errors managers commonly make when they want to implement change

• Do not establish a great enough sense of urgency• Do not forming a powerful guiding coalitions• Lack a vision• Under-communicate the vision by a factor of 10• Do not remove obstacles to achieving the vision• Do not systematically plan for or create short-term wins• Declare victory too soon• Do not anchor changes in the corporation’s culture.

• Kotter’s recommendations are the antonym of these errors.

Kotter, J. P. (1998) Leading Change: Why transformation efforts fail, in Harvard Business Review on Change, Harvard Business School Press

An extra change management error

• Not having enough fun

• Work places are really boring. Most people put their energy into what they do outside the company.

• Does getting up in the morning and getting to work give you a spring in your step? Or are you on a downer when you arrive at work?

B2B and B2C Errors

• Not working closely enough with your customer – the company or the person that receives what you do

• Not working closely enough with your supplier – the company or person that give you what you need

• Dependence - imature - babies• Independence – adolescences • Inter-dependence – adults – understand

we work together

Project Team Performance ImprovementPe

Time (months)

0 5 10 15 20 25 30 35 40 45

Number of Projects1 2 3 4 5 6

Kaizen -Continuous Improvement

New Teamwith Checklists

OriginalTeam

Project skill transfer cycle

Time (months)

0 5 10 15 20 25 30 35 40 45

Number of Projects1 2 3 4 5 6

OldHand

Student/Participant

Teachingphase

Selflearning

Catch-up

Keep-upor let go

Learningpartners

Selflearning

Group BehaviourThe way people behave in groups is differentfrom they way they behave on their own.

Groups develop a culture and norms of behaviour - group think

People will develop a particular role in a group- Belbin & MBTI

Mayo found that involving employees increasedtheir commitment, and that productivity rose.The effect was transient, involvement had to be continuous for the productivity to be maintained.This is known as the 'Hawthorne Effect'

Prisoner Experiment

• Social Experiment with paid volunteers

• Location,

• Role Clarity,

• Little personal experiments

• Social Pressure

• Imagination makes it real

WATCH THE FILM

Stanley Milgram Experiment and

Stanford Prisoner Experiment

http://lfort.wordpress.com/2010/03/19/french-%E2%80%98game-of-death%E2%80%99-torture-a-disturbing-social-critique/

http://www.youtube.com/watch?v=BcvSNg0HZwk

The Power of the Job!!!Stanley Milgram Experiments

http://www.amazon.co.uk/Obedience-Authority-Experimental-Philip-Zimbardo/dp/1905177321/ref=sr_1_1?s=books&ie=UTF8&qid=1314369811&sr=1-1

http://www.daylife.com/topic/Stanley_Milgram

Check out http://www.youtube.com/watch?v=FkmQZjZSjk4

• http://screenrant.com/men-black-3-cast-jemaine-clement-sandy-60619/

• http://hollywoodjesus.com/catch_me_if.htm

• Someone has a white coat and calls themselves a doctor. Do you ask for ID? Do you accept everything they say? Do you do as they say? What do all these pills do?

• In The West, we pay the doctor when we are sick. They get richer if we stay ill.

• In China, people pay the doctor when they are well. If they get sick they stop paying. It is in the doctor’s best interests to make patients well again.

http://www.armchairgeneral.com/oradour-sur-glane.htm

• June 10th 1944, 642 men, women and children killed by 2nd SS Panzer Division Das Reich

• 2nd SS Panzer Division Das Reich were French from the Alcase region

Scope of Change

Incremental change - change of a relatively small scope, such as making small improvements

Strategic change - change of a larger scale, such as organizational restructuring

Transformational change - change in which the organization moves to a radically different, and sometimes unknown, future state

– Paradigm shift

Rate of incremental change is important

Planned and unplanned / unanticipated change

Key Performance Metric Improvement Over Time - Satisfaction, Success and Failure.

Sources: Kidd (1995) Warren, (1995), Unipart 10-to-Zero (1995)

Elevated SupplierPerformance

Or competitor's systems design performance

CustomerRequirements

CustomerSatisfaction

(Expectations)

Failure

Success

CriticalPerformanceMeasure

MarketLeader

TargetCompany

ContinuousImprovement(Kaizen/C.I.)

Time(3 Years)

BPR and C.I.

Co-ordinated Application of Improvement Techniques

Kaikaku +C.I.

Co-ordinatedBusiness SystemEngineering

BPR then nothing

Newlands, in Newlands and Hooper (2009)

Do Nothing

Varieties of Change (Tushman et al.)

Incremental Discontinuous

AnticipatoryTuning Frame-bending

ReactiveAdaptation Frame-breaking

• Tuning: find a better match between the organization and its environment. « Do things better while they are already being done well »

• Adaptation: Initiate change in reply to environment and competitors’ evolution

• Frame-bending: Reorientation Process. However the company takes its history and strengths into account.

• Frame-breaking: Major upheaval. The company « re-creates itself » and totally revamp its strategy

http://www.boutique.amnesty.fr/media/catalog/product/cache/3/thumbnail/5e06319eda06f020e43594a9c230972d/p/o/post_it_smiley.jpg

On the Shelf Technologyfinding new applications

• 3M developed an adhesive that doesn’t stick to anything.

• They didn’t know what to do with it.

• It was left on the shelf in their archive.

• A researcher discovered it and found an application.

http://www.trade1st.co.uk/Resources/Images/fa91099d-baf9-4e29-b91f-adaadb9d795f.jpg

Conventional Techniques

• Use chemicals to reactivate paints.

• Typically rather noxious in enclosed spaces

• Corrosive, requires protective gloves and overalls, goggles, breathing masks

http://www.sz-wholesale.com/uploadFiles/ZD228_Mini_hair_dryer_908.jpg

Black and Decker

• Existing product – a hair dryer

http://www.onestophire.com/images/product-detail/314-pro-b.jpg

Technology Adaptation

• An engineer at B&D thought they should adapt hair dryer technology to strip paint more effectively and cleanly than using chemicals.

• His supervisor resisted his suggestions. At home, he stripped down a hair dryer, up-rated the heater. He then showed the big bosses and marketing.

• He was then given a job for life, and is now a very rich man.

Products Change!!!

Heart medicineUnexpected side effects

Created a new ‘clinical’ problem

“Halitosis”

Floor and sink cleaner

Created new ‘clinical’ disorder

“Erectile dis-function”

Viagra

Products Change!!!Point to Point

without stopping

Hub to Hub

High volumeEfficient seat cost

Objective Movement

70s-now

80s-now

90s-now

Motivation for Change

MRP, JIT, BPR, Activity-based costing, global sourcing, outsourcing, others

Total quality management (TQM), SPC, QFD, customer satisfaction, others

Service quality, service guarantees, BPR, “we sell solutions”, others

TBC - Time-based competition, mass customisation - agile manufacturing, fast cycle time manufacturing, Wikinomics, others.

Quality

Service

Time & FlexibilityNow and the near future

Contemporary change management problems

% Agreed that

63 People are suffering from ‘initiative fatigue’

67 There has been so much change, not all beneficial, that the main employee response is cynicism

72 People are are suffering from ‘information overload’

78 Fear of the unknown is a major cause of resistance to change

Fad surfing

Fact based decision making, spam

Survey of surveys

biguityAm

« I want you to find a bold and innovative way to do everything exactly the same way it’s been done for 25 years. »

Fads (Fad Surfing)• People get over tired due to the frequency of change initiatives• Gestalt – your focus is on the latest ideas, allowing slip the other stuff that we did a long time ago that enables us to do well.• People need to know how it all fits together, how it contributes, why the changes put in earlier are still needed to stay competitive

Axioms• If it ain’t broke, don’t fix it.

• Don’t use quick fixes. Don’t pay over time to fix bad quality. They reduce the overall efficiency of the process. (Deming)

• Put in quick fixes (Crosby)

• Abandon everything (Peter Drucker)

• ‘Obliterate’ Michael Hammer.

• I think, you do. Follow the rules. (Taylorism)

• First, break all the rules.

Crosby’s Five Step Method

1. Identify the problem2. Identify and implement a quick fix3. Analyse the problem to identify the route cause4. Eliminate the root cause5. Measure and follow up to ensure the problem

doesn’t come back and that you achieve the results desired.

Crosby Quality Workbook

Process For Change

Create a crisis/story for change – urgency, imperative – ‘The Chinese will take our jobs’

Create a visionCreate a partnership —

union/management/workforceLeadership based on involvementCreate commitmentCreate sense of urgencyDrive for results

Emergent approach

Assumes organisations do not suddenly change but are perpetually seeking it.

Pettigrew, A. and Whipp, R. (1991) identified five factors;1. Environmental assessment - constant assessment of

competition.

2. Leading change - move the organisation forwards.

3. Linking strategic and operational changes - allows for evolution whilst it involves making decisive decisions (prescriptive).

Emergent Approach

4. Strategic human resource management - managing people.

5. Coherence in management of change •Consistency – logical, a progression, understandable•consonance

• Harmony, not going to cause discord, annoyance, that lead to withdrawal of good will and disruption of activity/product flow

•competitive advantage – we shall be better than others

•Feasibility – it can be done.

Pressure and performance

• Healthy pressure• Optimal performance• Exhaustion• Damage to health• Breakdown

Stress

Performance

Pressure/performance explainedPressure level Response Experience Performance

Very low boredom Low levels of interest

Low, acceptable

Low to moderate Comfort Interest aroused Moderate to high

Moderate to high Stretch Challenge, learning, development

High, above expectations

High to unrealistic

Stress Overload, failure Moderate to low

Extreme Panic Confusion, threat, withdrawal

Low, unacceptable

Consequences of change

• Unexplained absences• Sick absence• Intermittent absence• Labour turnover• Increased customer complaints• More staff grievances• Increased error rates• Increased accident rates

The Big - Little Change

• Learn everyday, from everyone you meet• What ideas did I generate today to make my work or

the tasks in the company easier?• Is the company in a better condition now – at the

end of the day - than it was this morning when I arrived?

• Who today will vouch that I helped them today?• Who did I help?• How did I help them?

Diagnosis & Needs Analysis

Diagnosis and needs analysis

Intervention

Follow-up

Ask• What are the forces for change?• What are the forces preserving the status quo?• What are the most likely sources of resistance?• What are the goals to be accomplished by change?

Transformational Learning

Context Results(Errors)Frames Actions

Transforming

Triple Loop Learning

Incremental Improvement

Single-Loop Learning

Reframing

Double-Loop Learning

The paradigm Implementation

ifunsatisfactory

Step 1Tighter control

Step 2Reconstruct or developnew strategy

Step 3Abandon paradigmand adopt a new one

The dynamics of ‘paradigm’ change

Corporateperformance

Development of strategy

No-one wants to be first, andNo-one wants to be last.

Notable exceptions: Record breakersMiners trapped in Chile

What is the objective?

What effect(s) will this have?

http://www.videobash.com/photo_show/McDonalds-They-re-Everywhere-10112

Will it give the right impression?

Organizational Change

Planned change -

changeresulting from

a deliberatedecision

to alter the organization

The Organization

Unplannedchange -change thatis imposed

on theorganizationand is often

unforeseen

Managers must be prepared to handle both

External Forces for Change

GlobalizationWorkforceDiversity

ChangingTechnology

EthicalBehavior

Source: Daly

The Change Agent’s Role

Change agent - the individual or group who undertakes the task of introducing and managing a change in an organization

26% of IÉSEG graduates are consultants

The change agent can be internal or external

Internal Change Agents

Advantages– know past history,

political system, and culture

– must live with results of change so will move carefully

Disadvantages– may be associated with

factions, accused of favoritism

– may be too close to the situation to be objective

External Change AgentsAdvantages

– outsider’s objective view– impartiality

Disadvantages– limited knowledge of

organization’s history– may be viewed with

suspicion

To succeed, they must be perceived as trustworthy, be experts with proven track records, be similar to those they are working with

Process consultants aim to help their clients arrive at a satisfactory solution.They may have a solution, but may decide not to give it away.Instead, they help their clients go through a process where they develop a solution with the consultant facilitating their activities. In so doing, some of the ideas the consultant has shall be incorporated into the final solution, but the solution is bespoke and developed with, rather than imposed.

Edgar Schein, (1969, 1989)

The Consult Game

• A manager commissions a consultant to review the current situation in the organisation. The consultant duly obliges by providing a huge written report detailing all the things wrong along with relevant recommendations to put things right. The manager then comes up with reasons why each of the recommendations can not be implemented.

• Yes….but…. • This premise of the consultant game is based on the ego state

of the manager. The manager derives a pleasure from having more problems than the consultant has solutions. This serves as justification not to change the status quo.

• Gotcha, • Gossip, • Blame, • Pecking Order

• « Go ahead. Impose on them your ideas because you know it is the best solution. »

• Pr Hedley Malloch to David Newlands, 2003

• « I think I can only propose a really great idea amongst other solutions and let them decide. »

• David Newlands in response.

http://www.irishviews.com/meerkat.jpg

Who moved my cheese? Spencer Johnson

• Sniff • Scurry

http://www.curatedmag.com/news/tag/painting/page/9/

http://www.unltd.org.uk/blogs/tags/laughathon

• Hem • Haw

TechnologicalChange?

•Aesthetic evolution•Customer appreciated variants

•Real changes: • Under the hood, • In the Factory• Component level• Material level

•Engine technology • SUCK• SQUEEZE• BANG• BLOW

Source: www.youyouk.fr/wp-content/uploads/2010/02/Evolution-voitures-pays.jpeg

Number of Vehicles per 1000 Inhabitants

1985 1995 2000 2009Germany 450 529 553 538Spain 276 430 517 618France 446 520 564 598UK 379 474 525 579US 708 759 774 819Japan 375 527 566 591China 3 8 12 28India 3 6 7 16Brazil 86 89 109 141

• HTTP://TRENDSUPDATES.COM/PEAK-OIL-ALARMI

Closed Innovation versus Open Innovation

Signs of an Organisation Heading for Problems• Diminishing market share• Low profit margins together with low volume• Ageing products • Consistent dissatisfaction of customers• Quality/reliability problems• Consistently late deliveries• Heavy dependence on one or two customers/suppliers• Long-term fixed-price contracts• Heavy borrowing requirement• Poor industrial relations• High turnover of employees• Management out of tune with commercial realities• Top-heavy organisation• Inflexible management• Lack of communication between management and employees• Inward-looking management

% of sales from products more than 2 years old

Not a supply chain partner focus

Product Life Cycle

• http://amadeo.blog.com/repository/00/01/36/16/1361679/3821925.gif

Niche Players

-Automotive

NewEntrants

Start-ups Suppliers Newcomers Others

USATesla, Zap,

Fisker, Think, Phoenix

CodaMiles Electric,

FranceVenturi, Biro

Exagon Motors

Bolloré, SVE Dassault, Michelin

Heuliez, FAM, Aixam

Germany E-Wolf, Ruf

ItalyMicro-Vett,

K-Way Motus

Tazzari, Maranello, Pininfarina

SwitzerlandProtoscar, Rinspeed

Stevens Vehicles,

Lightning, Nice car, Murrau

Sweden Koenigsegg

Japan SIM-DRIVE

India Reva Tata, Mahindra

ChinaBYD, Geely,

• http://www.automotivedigest.com/CMS/images/imgLibrary/A/AvgPrfMrgGlbAtoSpl_94-04.gif

Making strategic alliances to share the costs of the primary and the support activities

• International Business, Charles W.L. Hill, McGraw-Hill

• http://guides.lib.washington.edu/mergers

The consolidation of the european automotive industry

•Brand and ownership concentration in the European automotive industry: Possible scenarios for 2025, KPMG, 2010

Spagetti Alliances, Networks – Cartel?• Mitsubishi Motors is owned by GM• PSA and Mitsubishi• PSA have a technology sharing agreement with Renault• Renault – Nissan Alliance• Renault – Daimler Alliance• Nissan Buys technology from Toyota• Toyota and GM are partners• GM, Daimler and BMW jointly operate a new technology

development centre• PSA work with Fiat and Lancia – capacity sharing – SEVEL, Fiat

with Chrysler• PSA work with Ford – Diesel Engines swapped for platform

body• Ford and GM develop power-trains, 6 speed gearbox

• Ford and Daimler develop hydrogen storage systems• Ford had/has a network of brands – Volvo, Jaguar, LandRover,

Aston Martin, Mazda• Ford link with Cosworth• GM Keiretsu – Mitsubishi Motors, Kia, Hyundai, Chevy

(formerly Daewoo), Opel, Vauxhall, • GM used to have a link with Fiat• VW Audi – VW, Audi, Seat, Skoda. Porsche reverse take over• Honda took stake in Rover, Rover bought by BMW, BMW still

use the Rover platform• Saab under Spyker looking for partner, China partnerships

terminated

• Contemporary strategy analysis, seventh edition, 2010, Robert M.GRANT (Case 4, p541: Ford and the World Automobile Industry in 2009)

Grant, page 541

EUROPA-Press Release RAPID February 2010

Relating to companies in the European automotive market, wire harness investigation:

• “The Commission has reason to believe that the companies concerned may have violated EU antitrust rules that prohibit cartels and restrictive business practices (Article 101 of the Treaty on the Functioning of the European Union – TFEU and Article 53 of the Agreement on the European Economic Area). The Commission's investigation is being coordinated with several other competition authorities worldwide.”

http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/10/49&format=HTML&aged=0&language=EN&guiLanguage=en

Toyota Peugeot Citroën Automobile Czech (TPCA) C1 from Citroën, the 107 from Peugeot and the Aygo from Toyota

€6000€8000 basic pricePremium Branding: VW/Audi Group

http://uk.search.cars.yahoo.com/bin/search/photos_gallery_uk/cars/green/?p=cat:photos_cars+Toyota+Aygo&b=68

€7000

Toyota cars, with Lexus RX330 and Toyota Camry Saturn Aura, GM and Pontiac

http://www.videobash.com/photo_show/Minimal-Plymouth-7603

Taking it a bit too far?

• Customer Appreciated Differentiation• Economies of Scope

• Standardised everything else (Value Analysis)– Platform

• Economies of Scale at suppliers

– Product Technology– Process Techniques

European Green Cars Initiative

External Pressure

Over provision

HistoricalOrigins

Legislation Demographics

More DemandingCustomers

DecliningMarginsNew

Entrants

NewTechnology

FinancialServices

GlobalizationOrganizations must rethink the most efficient ways to

Use resourcesDisseminate/gather informationDevelop people

StructuralChange

Mental

Change &

Workforce Diversity

Majority ofnew workerswill be female

Workforce will grow in diversity - more Hispanics & African-Americans

Workforce is aging -less young workers, moremiddle-agedFewer people in the corporation

Changing Technology

TechnologicalChange

Changes in work

relationships

Changes in organizational

structure

Ethical Behavior

Treatment

Ethical

Other Organizations

Customers

Environment

Society

http://www.videobash.com/photo_show/OS-Update-7226

http://www.videobash.com/photo_show/d-Evolution-7386

Internal Forces for Change

DecliningEffectiveness

ChangingEmployee

Expectations

CompanyCrisis

ChangingWork Climate

Depth of organizational intervention

• Restructure• Reallocate• Improve business planning• Change the leadership• Change the definition of success• Change the mission, vision, values, philosophy

Deepest shifts• Change how we think• How we solve problems• How boundaries are defined• The way we do business• Frame breaking• Mould breaking• Fundamental strategic change

• Lego – 10 years to come up with:• « It isn’t what it does for you. It is what you do with

it. »

TQM problem solving methodologies

Price per Barrel of Crude Oil – The life blood of contemporary economies

Traditional views of quality

• Half the tolerance, square the cost

• Near enough is good enough

• If it looks right, it is right

• If it does what the customer wants, it is good enough

Measurement

Cost of Non-Quality

Measurement:Price of Non-Conformance

Typically30% to 50%OperatingCosts

Cost ofNon-

Quality

External Failure

Internal Failure

Appraisal

Prevention

} Price of Non-Conformance

Prevention, Appraisal and Failure Costs of Supplier Non-Performance£ £

000's 000'sPre-tax Profit 35000

Pre-tax Profit 35000

£ £Total Spend Spend 000's 000's

Purchase Spend 170000

Total Purchase Spend 170000

Source: Peter Hines, Richard James and Owen Jones, A Cost Benefit Model for Decision Making in Supplier Development Activitiesin Cox, A. (Ed). (1996) Innovations in Procurement Management, Earlsgate Press, Boston, Lincolnshire, Pages 63-84.

Prevention, Appraisal and Failure Costs of Supplier Non-Performance£ £ £

000's Cost of prevention 000's 000'sCustomer assistance 3Supplier Development 500Supplier Training 7Audit feedback 3Supplier Suggestions 3Training (internal) 26Expedition 735Penalty clauses 18

Total prevention costs 1295

Cost of appraisalSupplier audit (ongoing) 263Performance monitor 105Stock take (shortage) 25

Total appraisal costs 393

Prevention, Appraisal and Failure Costs of Supplier Non-PerformanceCost of Failure

Lost business ?Lost prestige ?Stock excess (buffer) 15600Stock excess (other) 4950Stock discrepancies 3Double handling 120Re-sourcing 80Legal costs 54Price query 15Discrepancy claim 42Technical queries 22Rework 70Over delivery 10Urgent transport 62Expediting / rush orders 923Customer queries 788Excess cost in market 8000

Total cost of failure 30739

TOTAL COST OF SUPPLIER NON PERFORMANCE 32427

Ratios Derived from Prevention, Appraisal and Failure Cost AnalysisRATIOS

Total prevention costs 1295 = 4.21%

Total cost of failure 30739

Return on Supplier Development per £'000 Total cost of failure *1000 30739 = £18,210.31

Cost of prevention plus Appraisal 1688 per £ 1000

= 18 : 1

Total cost of failure 30739 = 18.08%

Total Purchase Spend 170000

Total cost of failure 30739 = 87.83%

Pre-tax Profit 35000

Total possible pre-tax profitPre-tax Profit + Total cost of failure 35000 + 30739

= 65739

Step Change Needed

?TheLeap

What Prevents the Leap?Ignorance

Tradition

Comfort

Politics

Mind Set

Organisational ‘EVILution’Characteristics

SpecialisedComplex and BureaucraticIncremental in improvementUn empoweredCreative copingLow CapabilityCostlyUnfocussedVULNERABLE

Organisational View

Failures usually occur atfunctional boundaries

European Quality Award Model

Leadership ProcessesBusinessResults

People Management

Policy & Strategy

Resources

PeopleSatisfaction

CustomerSatisfaction

Impact on Society

Enablers Results

10% 14% 15%

“If a thing is worth doing- it’s worth doing slowly!”

Mae West

Learning Takes Time

Understanding Change

Understanding ChangeIdentify and Reflect on Changes That Have Occurred In The Last 12

Months:

At Work

Outside of Work

Describe Why These Changes Occurred.

Describe The Impact Of These Changes.

Changes that have occurred

• You’ve gotten older• Some people have been born. Others have died

– the premature death of Antonin MOREL, 3rd Year Student of IESEG in Latina America on Thursday, 16th June, 2011.

• Some have gotten thinner. Others fatter• Others never seem to change• Some companies have gone bust• Some new products are on the market• Some people go to jail, others received awards• Some disasters occurred, some successes too.

Views of Change

Which View Is Right?

Your View Another View

The Limits of ChangeThe Vision

The Belief

How High Can You Go?

http://cora.blogspot.com/archives/2004_05_01_cora_archive.html

What stops us from achieving:100% Increase in Sales

50% Increase in Productivity100% Increase in Profits

This Year!

The Limits of Change

Identify Limiting Beliefs!

http://www.ictinteg.co.uk/serv01.htm

Lean Promises

• Double labour productivity• 90% reduction in throughput times• 90% reduction in inventory• Improved quality• Reduced time to market

• These are proven to be achievable in the E2E game run in Industrial Realities

Successes

• Waiting a long time for a big success can be depressing– I’m waiting for the big job– It wont keep the bank manager happy to keep on

investing/lending for no visible return• Short-term successes keep motivation high

System Complexity

School (or School System)

Community (home for this group of students)

A system is a larger world

Teacher

Student

Parent

Classroom

Still larger view : we need to analyse

What Affects What Money Market

Shareholders

SupplyMarket

Social Infrastructure

Roads Health

Education

Board of Directors

Finance &Accounting

QualityMgt.

Purchasing

Stores

Manufacturing

Machines

Operators

MarketingMgt

Personnel

Stores

DesignMgt.

LegalEnvironment

Taxation

ProductMarket

Customers

LabourMarket

Trade Union

Suppliers

Smith (1997)

Complex-nonlinear Supply Chain

A Motorcar As A SystemMotor

atmosphereair

carburetor

engine

controls

fueltank

lights wheels

systemenvironment

roadlights &signals

systemboundary

petrolstation

Management as ControlDirectors

Management

Primary TaskSystem

MACHINES&

MANPOWER

Reporting Objectives

Monitor

INPUTS

MaterialsInvestmentServicesLegislationEnergy

Decisions

OUTPUTS

ProductsProfitWagesTaxesAccidents

A Control Diagram

Primary tasksubsystem

Control system

Objective setting system

Environmental disturbances

Inputs Outputs

Monitoringof outputs

Objective

Changing inputs closed loop feedback

The input is changed in the opposite direction to the change in the output.

Result : Stabilizing( Goal seeking)

Negative Feedback

Output

Objectiveoutput

Positive FeedbackThe input is changed in the same direction as the change in the output.

Result : unstableExponential change

Output

Corporate Objectives Individual Objectives

Profitability Wages / SalariesCompetitive Advantage Job SecurityCustomer Satisfaction Job SatisfactionProductivity Standard of LivingAdded Value Quality of LifeEmployée motivation Work in a group

Objectives are Multiple (more than one)Objectives are Plural (different for each group)Objectives may be compatible or may conflict

Objectives in organizations

Multiple objectives of an organization

Company

Team/Group

Individual

LevelShort Medium Long Timescale

Financial

Manufacturing

Marketing

Function

System BehaviourSynergy

2 + 2 = 5

Behaviour of a system is not thesum of the behaviours of its parts

Symbiosis

An essential, mutual dependencebetween different parts of a system

Intended outcome Actual outcome

1. Increase advertising spend

2. Gain a few extra points inmarket share so your new

boss can make a mark

1. You increaseadvertising

2. Competitor reviewsaccount and

changes ad agency

4. Competitor attracts mediainterest, better employees andhigher status with customers

3. Competitor’s newcampaign a success - they

gain image as the mostdynamic firm in the market

5. Market moves to newposition, where

competitor has gonefrom 15 to 30% share,

mostly at your expense

In complex, non-linear systems, actions can quickly lead to self-reinforcing virtuous or vicious spirals

Promotions and the marketing mix:a sequential model

TOTALAVAILABLEMARKET

MARKETING MIX DECISIONS

PRODUCT

ADVPRand

PROMOTION

CoreConsumers

MarginalConsumers

Competitors'Share

Source: Peattie, S. and Peattie, K. (1999) Sales Promotion, in Baker, M. (1999) The Marketing Book (4th edition), Butterworth-Heinemann, Oxford, 418-442.

Mechanical System

• Muscle pulls an arm into place

• Cause and effect.

• No feedback system.

Organic System• Grows as a human, plant or animal would grow –

dependent when young• Grows neural connections – networks - learns• Requires initial care, learns behaviour, becomes

independent• Reaches a stage of maturity – specialisation occurs,

then realises they are inter-dependent on others – role clarity

• A large customer may grow a small supplier• A large supplier may grow many small customers• Small customer and small supplier may grow

together

Systemic View

• Feedback loop – positive and negative feedback• Inter-dependence of separately identifiable

organisms, departments, functions, companies• Win-Win, Win-Lose, Lose-Lose relationships are

possible• Feedback enables reciprocity, revenge, data for fact

based decision making• Symbiosis and Synergy are possible – partnership

(Lane Group and Body Shop)

Value Chain FightDeconstruction & Value Migration in PC Industry

IBM – 1985

Microchip design and manufacturing

Computer assembly

Applications software

Marketing, sales, and

distributionOperating systems

Today’s PC industry

ReconstructionReconstruction

Motorola

AMD Cyrix

Compaq

Packard BellDOS and Windows

Mac OS

Microsoft Office

WordPerfect

Others

CompUSA

Sam’s Club

PC-order.com

Mail order

NeXt Dell

Resellers

Source: The Boston Consulting Group

• For IBM, the organic growth of competitors in niches, forced ‘outsourcing’ and ‘red and blue’ teams – entrepreneur v intrapreneur

• A new systemic network emerged

• IBM’s strategic mistake was to outsource (buy in) MS operating system. This time bomb eventually killed most of their orders

“Oldways”

Denial

Acceptance

Changein

Behaviour

NewWay

The Change Process

Denial

• ‘You can not be serious!’ – John Mackenrow• ‘It ‘ll never happen here’• ‘It will not succeed’• ‘That can’t be right, they wouldn’t be so stupid as

to…’• ‘I don’t believe it’ – Luke Skywalker• ‘I can’t see that happening here’• ‘No way!’ … ‘Way!’

Establish The Need For Change

Design A Change That Meets The Need

Identify The Impact Of The Change

Jointly Plan The Implementation

Consult those affected, seek representation from all groups, parties, entities

Sell your ideas

Implement The Change & Review The Impact

The Change Process

You Have To End Before You Begin!

A Hiatus Will Occur Between These Points

The Hiatus Could Lead To A Better Process

People Adapt To Change Differently

Provide People With The Right Support!

The Change Process

Gleicher’s Formula

C=(ABD)>X

Where:C - The probability of successA - The need for changeB - The vision of what could be!D - The Ease of taking the first stepsX - The cost of taking the first steps

The Change ProcessForce Field Analysis

Forces Driving Change

Forces Resisting Change

Making Change FailDiscuss Things That Cause

Change To Fail!

Time: Insufficient Time Allowed

Resources: Insufficient Money/People

People: Resistance To Change

Objectives: Undefined Objectives

Politics: Within & Outside The Business

Fear: Low Tolerance Level or Poor Comms

Making Change Fail

Resistance To Change

Why Do People Resist Change!

Lack of UnderstandingCaused by a lack of trust and no clear ‘need’

Different Perceptions of ChangeCaused by a lack of communication

Self InterestIndividuals/group working to maintain the status quo

Low Tolerance of ChangeIndividuals’ levels of tolerance vary

Middle managers filtering

Change ‘FAILS’

F - Fear (leads to):A - AngerI - InsecurityL - Lack of CommitmentS - Stress

“I’m right! You’re wrong!”

Who’s Listening?

What negotiation is taking place?

Is this constructive?

Education & SupportSharing information and working with key employees

Participation & InvolvementAllowing people to participate in the change process

Facilitation & SupportFacilitation, counseling and support for individuals

Coping With Resistance

Negotiation & AgreementFind common ground that everyone agrees to

Manipulation & Co-OptionManipulation of situations & people - risky business!

Explicit & Implicit CoercionForcing it through using position & authority - JFDI!

Coping With Resistance

Do it! TaylorismJust do it! NikeJust @*!+§£# do it! Abandonment? Coersion?

Managing Change

If You Don’t Know Where You Are Going You Will Probably Not End Up

There!

@*§# happens!

Attributed To ‘Forrest Gump’

“What we believeaffects how we behave.

How we behave

affects what the situation becomes.”

Managing Change

I am a manager / supervisor !I got this position because I solve problems!

My staff seem unable to solve problems!

I am a subordinate!I cannot solve problems!

But my manager/supervisor can!

TheDependency

Managing Change

“50% is OK”

“This we cando this week”

“We’ve been thinkingabout doing this foryears. We’ll do it sometime.”

Managing Change

Half full or half empty?

No, it’s your round next!

The glass is twice as big as it needs to be.Go on, fill it up you stingy sod!

I’m nearly finished

2%’ismNext year we’ll take this year’s budget and add inflation

“If you always do what you’ve always done,You’ll always get what you’ve always had.”

Deep Thoughts

ChangeIt’s a matter of choice.

Deep Thoughts

Options For Implementation

Intensive Focussed & Planned Effort- (1-5 Days) Kaikaku or Step Change

Short Planned Incremental Steps - (1 Hour/Week) Kaizen/Incremental Change

Just Do It- (As Required) Spontaneous Response

Managing Change

Tutorial Work

Tutorial 1

• OBJECTIVES– GET INTO GROUPS OF 4 MAX– A MIX OF STUDENTS FROM VARIOUS CULTURES IS

ADVISABLE – QUESTION IS ALLOCATED– YOU UNDERSTAND YOUR QUESTION

Question 1

Suppliers Purchasing MaterialsControl

Sales Distribution Customers

Materials Flow Operations Customer Facing Activities

OperationsProcess

Vertical reporting structures and systems

Internal supply chainSuppliers Distribution Customers

Delays/inventory

Question 1

Tier 2Suppliers

Tier 1Suppliers

Wholesaler/retaileror

Distributor/dealerCustomerInternal

Supply Chain

Tier 2Suppliers

Tier 1Suppliers

Wholesaler/retaileror

Distributor/dealerCustomerInternal

Supply Chain

Synchronized and real-time information flows

Question 2Technology development

Market research

Concept design

Detail design

Process planning

Buy machines

Arrange supplies

Market promotion

Start manufacturing

1 2 3 4 5 6 years

Question 2

Tech. dev.

Mkt. res

C. design

D. design

Proc. plan

Buy m/cSupply

Start mfg V1**

1 2 3 years

Manuf’g Systems Eng. Kaizen/Kaikaku*

Start mfg V2**

Project/process steering, performance review

-1 0Newlands, in Newlands and Hooper (2009)

Question 3

(a) Traditional sequential order processing system

Question 3

Production Scheduling

Order Entry Transport Planning

Credit Control Invoicing

(b) Order management system with ‘clustered’ activities

Organisational Culture

• Central to understanding organisations?– central to what?– query its usefulness as a concept - usefulness to what?– can it be cultivated? Like a rose, a bacteria, like manners?

• Produce a reliable, explanatory definition of it, that is not in the notes!!!

Question 4

• How would you ‘observe’ it? • What would you observe? • Where would you observe it? • How would you interpret it?

Question 5

• Describe the characteristics of an organisation that you think has a ‘strong’, coherent culture.

• List advantages/disadvantages of this strong culture?• Do the same for one with a weak, less coherent

culture

Question 6

Question 7

• Discuss the Ethical Considerations of a Change Management Process.

Question 8

• Discuss the Organic View of Change Compared to the Systems View

Question 9

• Lean is NOT About Change Rather its About Control. Discuss.

Question 10

• Discuss the Notion that Change Management is Nothing More Than a Cultural Narrative.

Question 11

• Discuss the notion that any accepted improvement scheme shall act as an umbrella for other schemes – enabling symbiotic multi-faceted organic development

Question 12

• To make radical change requires radical change in the way people are rewarded. Discuss.

Question 13

• You get what you measure, and you measure what you get. Discuss.

Question 14

• “Here we go again. I’m fed up with all these new bosses with new schemes. When are we going to just be allowed to get on with the job.” Discuss

Question 15

• “I smoke. I know it is bad for me. But I shaln’t quit.”

• Theory is not practice. Knowing doesn’t necessarily mean doing.

• Discuss.

Question 16

• Theory of un-intended consequences states that what you expect you wont get. Murphy’s law states that if something can go wrong, it will and disastrously. Discuss.

Question 17

• When tomorrow everything shall be out of date, why re-freeze?

Question 18

• Theory states companies undertake Annual Strategic Planning – with a five year horizon.

• Other companies review and make decisions every day – Semco.

• Other companies have 400 year planning horizons – they know what they want their decendents should achieve.

• Discuss

Question 19

• Consultants have all the answers, but they are expensive.

• If consultants have all the answers, why is it they don’t do it themselves.

Question 20

• Western and Japanese management is 95% the same, but different in all important aspects.

• Examine: Jidoka, Quality Circles, Gemba Kanri and Hoshin Kanri

change management intensive 2013-14 lecture

change processesto

change management action

changeoriented culture

gooda leader of change

group presentation

leadership style

rest bad

rest good

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