corning incorporated v.1.2

Best Practices in Leadership Development and Organization ChangeAstatia DamaiskaChinthya Disa DamayantiErna Zubaida

OCD / Jan 16th 2016

*2016Best Practice in Leadership Development and Organization Change

OutlineIntroduction to Corning Incorporated

Organizational Challenges

Organizational Change Strategies

Alternative Organizational Change Strategies


Introduction to Corning IncorporatedBRIEF HISTORYCorning traces its origins to a glass business established in 1851 by Amory Houghton, Sr. with 3 life-changing product innovations produced: the light bulb envelope, TV tube, and optical waveguides.

In the 1870s, Houghtons sons Amory, Jr. and Charles established Cornings tradition that emphasizes in innovation and research and development.

Corning set up one of the earliest corporate research laboratories in US in 1980. The Companys name was changed from Corning Glass Works to Corning Incorporated on April 28, 1989.

Wendell P. Weeks Chairman & Chief Executive Officer


Corning Market Segments and Additional OperationsCorning is headed by Wendell P. Weeks today, and operates in business segments as follow:


Introduction to Corning IncorporatedEMPLOYEESAt December 2014, Corning had approximately 34,600 full-time employees (33% in United States, 67% outside United States).

Corning also retains consultants, independent contractors, temporary and part-time workers.

Unions are certified as bargaining agents for approximately 24.1% of Cornings U.S. employees.

RESEARCH CENTERSNorth America, Europe, Asia

PERFORMANCE2014 Sales: approximately $10 billion (24,3% YoY)2014 RD&E Expenses: approximately $0.8 billion2014 Net Income: approximately $2.5 billion (-51.4% YoY)Fortune 500 ranking: 297

Cornings World HeadquarterOne Riverfront Plaza, New York - USA


Introduction to Corning Incorporated


Organizational ChallengesIn 1984, Vice Chairman Tom McAvoy was asked to fix Cornings approach to innovation since business leaders were given extremelly challenging profit and loss (P&L) target to meet, and they thought RD&E were a major stumbling block to meet their numbers.

Other Corning Challenges to keep Innovation and R&D as the most important quality program in company:RD&E budget cutting

Decreased of Technical Community Members (1,400 peoples in the early 1970s to a core force of 800 people)Tom McAvoy Vice Chairman - technology specialty (1957-1988)

Chart1

8.4

9

9.6

8.5

9

RD&E Spending % of Sales

[].0

[].0

Sheet1

RD&E Spending % of Sales

20148.4

20139

20129.6

20118.5

20109


What MacAvoy do?Change objective :Good research laboratory staffed by good people, skilled at sensing technical trends,Building relationship with OEM (original equipment manufacture) customers Excellent links between scientist and engineers trough sales & marketing group systematic appraisal of Cornings many past innovation successes and failures (best practice) : an innovation processTotal Quality ManagementInnovationinnovation task force as a quality improvement team


Problem Beforeburdens of an insufficiently productive, centralized technical establishment, high cost and inefficiencies on RD&Eextreme challenging profit and loss (P&L) targetsInsufficient product developmentdeclines in new process developmentLots of oppoturtnity but they were not strategically integratedmuch of the rest of the company was paying no attention to innovation at all, while low morale in the R&D organization itself was undermining the effectiveness of its projects. Innovations that did occur were based on extreme measures. Efforts to innovate were succeeding by acts of heroism or by fighting the rest of the companyThe companys innovation process previously had been defined only within the research, product development, and engineering communities, and now the company would work to make this minimalist, yet formal, process the central integrating mechanism across the broader community.


Organizational Change StrategiesDefinition

Source: Tim Creasey (2014) retrieved from article Definition of Change Management. Website: http://www.change-management.com/tutorial-defining-change-management.htm.

Element:Goal or Objective:The changeTo improve the organization in some fashion - for instance reducing costs, improving revenues, solving problems, seizing opportunities, aligning work and strategy, streamlining information flow within the organization.Change ManagementTo apply a systematic approach to helping the individuals impacted by "the change" to be successful by building support, addressing resistance and developing the required knowledge and ability to implement the change (managing the 'people' side of the change).


Organizational Change StrategiesMcAvoy change management objective:a good research laboratoty staffed by good people, skilled at sensing technical trends early; building relationship with OEM customers in growing industries; excellent links between scientist and engineers and through sales and marketing groups to customers.

Build innovation task force as a quality improvement team to find out why the rest of the company was dissatisfied with RD&E


Organizational Change StrategiesA System Model of Change

123456AffectEncourageLeads toFollowed byProvision forFeedbackFeedback


Organizational Change StrategiesSelecting and implementing Organizational StrategiesKeeping lesson learned as a shared practice, and do continous improvement in innovating


Organizational Change StrategiesSelecting and implementing Organizational StrategiesKeeping lesson learned as a shared practice, and do continous improvement in innovating


Organizational Change StrategiesEvaluation of StrategiesIncreasing in Financial Performance

Recognition from External PartiesFour-time National Medal of Technology winner2014 BMW Supplier Innovation Award for Corning Gorilla Glass2014 Masters of Quality Supplier Award from Daimler Trucks North America, etc.

Chart1

9.72

7.82

8.01

7.89

6.63

Sales

Billion

Net Sales

Sheet1

Sales

20149.72

20137.82

20128.01

20117.89

20106.63


Alternative Organizational Change StrategiesCorning Incorporated can be categorized as Learning Organization (organization with skills at creating, acquiring and transfering knowledge and at modifying its behavior to reflect new knowledge and insights).

It becomes an advantage in organizational change, that need to be strengthened:


THANK YOU


BibliographyCarter, L., Ulrich, D., & Goldsmith, M. (2005). Best Practice in Leadership Development and Organization Change: How the Best Companies Ensure Meaningful Change and Sustainable Leadership, page 20-42. San Fransisco: Pfeiffer.

Corning Incorporated. (2015). Corning Incorporated 2014 Annual Report.

Creasey, Tim. (2014). Definition of Change Management, retrieved from http://www.change-management.com/tutorial-defining-change-management.htm.

Kreitner, Robert & Kinicki, Angelo. (2010). Organizational Behavior, 9th Ed. New York: McGraw Hill Irwin.

*************

corning incorporated v.1.2

Documents