change management intensive 2013-14 lecture
DESCRIPTION
A Guideline for managers for changeTRANSCRIPT
Change Management 2013-14
Dr. David Newlands – Module LeaderDr. Elias HadziliasDr Samar BaddarDr Maria VeludoDr Anna CanatoDr Athina Vasilaki
[email protected] [email protected] [email protected]@ieseg.fr [email protected]
[email protected] 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
top.
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?
http://www.orkutuncle.com/Funnypictures6
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
on
Mar
keting
Product 1
Product 2
Pr. 3
Operatingdepartments
Managers
DECISION MAKER
sales
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
SDWT
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
http://www.orkutuncle.com/Funnypictures7
What training is available?
No offense is meant by this slide. The intention is to highlight internal logic used may not be effective.
http://www.orkutuncle.com/Funnypictures5
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?
http://www.orkutuncle.com/Funnypictures4
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?
http://www.orkutuncle.com/Funnypictures6
Corporate Culture: In-house rules of the game?
http://www.orkutuncle.com/Funnypictures5
Wish list: If only….
http://www.videobash.com/photo_show/Handicapped-Parking-10268
What stops it
from working?
http://www.orkutuncle.com/Funnypictures6
What information do we need?
http://www.orkutuncle.com/Funnypictures6
Is the information correct & reliable?
http://www.orkutuncle.com/Funnypictures6
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
on it
• 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
http://www.videobash.com/photo_show/Box-vs-animal-7969
http://www.videobash.com/photo_show/Box-vs-animal-7969
http://www.orkutuncle.com/Funnypictures6
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/Just-A-Fence-Wait-OMG-7963
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
AssessmentInternal & External
CreatingImpetus
CreatingImpetus UnfreezingUnfreezing
BeginImplementation
BeginImplementation
Some Initial Failures and Successes
Some Initial Failures and Successes
Process ImbeddingProcess Imbedding
Commitment toProceed
Commitment toProceed
AdoptionAdoption
RefreezingRefreezing
Time
Decision toImplement
Or
….change is too difficult.Return to the old paradigm
Change Cycle
Degree of
Support for
Change
Time
Decision toImplement
Performance during the Change Cycle
PerformanceGain
Self-esteemPerform
ance
Time
Decision toImplement
Self Esteem during the Change Cycle
DenialBlame others
Blame self
Despair
Testing new ways
Growingconfidence
Achievingresults
Adapted from Carnall (1995)
Emotionalresponse
Time
Decision toImplement
Emotional Response during the Change Cycle
Adapted from Carnall (1995)
Immobilisation
Denial
Anger
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
Conc
ern
for p
eopl
e
The managerial grid by Blake & Mouton
1, 9
9, 99, 1
1, 1
5, 5
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
orm
Decline
Volu
me
Time (months)
DeathForm
Norm
0
2
4
6
8
10
12
0 5 10 15 20 25 30 35 40 45
Form
Stor
m
Dorm
Mourn
Norm
Major Types of ChangeRate
of change
Time
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
rfor
man
ce (1
0=st
anda
rd)
Time (months)
0
2
4
6
8
10
12
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
2
4
6
8
10
12
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
Perf
orm
ance
(Set
10
to n
ew st
anda
rd)
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
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
• 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)
Time
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
Range
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.
Cost
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
Low
Low
High
High
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
http://www.orkutuncle.com/Funnypictures6
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.
Newlands, in Newlands and Hooper (2009)
• 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,
GEM
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
UK
Stevens Vehicles,
Lightning, Nice car, Murrau
Sweden Koenigsegg
Japan SIM-DRIVE
India Reva Tata, Mahindra
ChinaBYD, Geely,
Chery
• 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
G6
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
Time
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
Fear
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%
9%
8%
9% 6%
20%
9%
“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
Banks
SupplyMarket
Social Infrastructure
Roads Health
Education
Board of Directors
Finance &Accounting
QualityMgt.
Purchasing
Stores
Manufacturing
Machines
Operators
MarketingMgt
Personnel
Stores
DesignMgt.
LegalEnvironment
Taxation
Laws
ProductMarket
Customers
LabourMarket
Trade Union
Suppliers
Smith (1997)
Complex-nonlinear Supply Chain
A Motorcar As A SystemMotor
atmosphereair
carburetor
engine
controls
fueltank
body
lights wheels
systemenvironment
roadlights &signals
systemboundary
petrolstation
fuel
A Car
seats
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
Time
Output
Objectiveoutput
Positive FeedbackThe input is changed in the same direction as the change in the output.
Result : unstableExponential change
Output
Time
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
spend
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
0
100%
MARKETING MIX DECISIONS
PRODUCT
PRICE
PLACE
ADVPRand
SALES
SALES
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
IBM
OS/2
Today’s PC industry
ReconstructionReconstruction
Intel
Motorola
AMD Cyrix
Compaq
Dell
Apple
Packard BellDOS and Windows
UNIX
Mac OS
Microsoft Office
WordPerfect
Others
CompUSA
Sam’s Club
PC-order.com
Mail order
NeXt Dell
Resellers
Resellers
Resellers
Source: The Boston Consulting Group
IBM
• 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
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
Resistance To Change
Change ‘FAILS’
F - Fear (leads to):A - AngerI - InsecurityL - Lack of CommitmentS - Stress
Resistance To Change
“I’m right! You’re wrong!”
Who’s Listening?
What negotiation is taking place?
Is this constructive?
Resistance To Change
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
Loop
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
Newlands, in Newlands and Hooper (2009)
Question 2
Tech. dev.
Mkt. res
C. design
D. design
Proc. plan
Buy m/cSupply
Mkg
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
Organisational Culture
• How would you ‘observe’ it? • What would you observe? • Where would you observe it? • How would you interpret it?
Question 5
Organisational Culture
• 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