UNIT-3

UNDERSTANDING PROGRESS
MEANING AND NATURE OF PROGRESS
Progress is a journey towards one’s goals. It is an ongoing process that involves bridging the gap
between what we are and what we want to be. It is not a stabilized end state of achievement.

Progress means advancement towards certain goals. The term progress used in the context of
individual, organisation, nation and world, broadly signifies better quality of life of concerned
people. Progress is a journey from where we are to where we want to be.

Path of progress
WHERE WE ARE? Path of Progress WHERE WE WANT TO GO?

(PRESENT POSITION) (FUTURE POSITION)

BRIDGING OF GAP

FUNCTIONS OF PROGRESS
Measurement of progress performs the following functions:

 It helps to keep track on social, economic, environmental and personal progress.

 It provides for measurement of results for progress.
 It helps to make improvements from time to time.
 It helps to keep commitments made by individuals and organisations.
 It helps in transformation of individuals, companies and society.
 It creates accountability of results.
 It creates awareness about the desirable changes in future.
 It creates synergy in various activities meant for organisational transformation.

MANAGING TRANSFORMATION
Organisational Transformation is a term referring collectively to such activities as reengineering,
redesigning and redefining business systems. The dominant enabling technology in
transforming organization is information and technology.
As business model change rapidly in the financial environment and mergers and acquisition
change the face of the organization. So, organization continually need to

a. A flexible, effective and efficient organization.

b. A customer-centric approach to organizational activities

c. Recognition of current strengths to create a more productive environment

d. Understanding and reaping the benefits of competitive IT and business alignment

e. Promotion of an integrated approach to IT and business

THREE TYPES OF TRANSFORMATION

 Improving Operation: To achieve a quantum improvement in the firm's efficiency, often
by reducing costs, improving quality and services and reducing development time.
 Strategic Transformation: The process of changing strategy seeks to regain a sustainable
competitive advantage by redefining business objectives, creating new competences
and harnessing these capabilities to meet market opportunities.
 Corporate Self-Renewal: Self-Renewal creates the ability for a firm to anticipate and
cope with change so that strategic and operational gap does not develop.

PROCESS OF TRANSFORMATION
1 CLEARLY DEFINE THE CHANGE AND ALLIGN IT TO BUSINESS GOALS
It might seem obvious but many organizations miss this first vital step. It’s one thing to
articulate the change required and entirely another to conduct a critical review against
organizational objectives and performance goals to ensure the change will carry your
business in the right direction strategically,financially, and ethically. This step can also assist
you to determine the value of the change, which will quantify the effort and inputs you
should invest.

2 DETERMINE IMPACTS AND THOSE AFFECTED

Once you know exactly what you wish to achieve and why, you should then determine the
impacts of the change at various organizational levels. Review the effect on each business
unit and how it cascades through the organizational structure to the individual. This
information will start to form the blueprint for where training and support is needed the
most to mitigate the impacts.

3 DEVELOP A COMMUNICATION STRATEGY

Although all employees should be taken on the change journey, the first two steps will have
highlighted those employees you absolutely must communicate the change to. Determine
the most effective means of communication for the group or individual that will bring them
on board. The communication strategy should include a timeline for how the change will be
 incrementally communicated, key messages, and the communication channels and
mediums you plan to use.

4 PROVIDE EFFECTIVE TRAINING

With the change message out in the open, it’s important that your people know they will
receive training, structured or informal, to teach the skills and knowledge required to
operate efficiently as the change is rolled out. Training could include a suite of micro-
learning online modules, or a blended learning approach incorporating face-to-face training
sessions or on-the-job coaching and mentoring.

5 IMPLEMENT A SUPPORT STRUCTURE

Providing a support structure is essential to assist employees to emotionally and practically

adjust to the change and to build proficiency of behaviors and technical skills needed to
achieve desired business results. Some change can result in redundancies or restructures, so
you could consider providing support such as counseling services to help people navigate
the situation. To help employees adjust to changes to how a role is performed, a
mentorship or an open-door policy with management to ask questions as they arise could
be set up.

6 MEASURE THE CHANGE PROCESS

Throughout the change management process, a structure should be put in place to measure
the business impact of the changes and ensure that continued reinforcement opportunities
exist to build proficiencies. You should also evaluate your change management plan to
determine its effectiveness and document any lessons learned.

NEED FOR TRANSFORMATION

Every organisation has to reinvent and rediscover itself from time to time in view of the
turbulent changes in its external environment. The need for transformation arises because of
the following reasons:

 Obsolescence of existing management paradigms, systems, routines and practices.

 Continuous changes in external environmental forces.
 Increased competition in the market because of entry of new player and launch of new
substitutes
 Insufficiency of small incremental changes
 Need to redefine the business, i.e., formulation of new mission and goals.
 Integration of organisational restructuring technological innovations and human
resource development.
 Adoption of Total Quality Management.
  Enhancing the sustainability and public image of the organisation

CHALLENGES OF TRANSFORMATION
1. Resistance to Change

People resist change (status quo bias). In fact, many people are willing to accept lower pay to
get into an organization that's stable (an organization that seldom changes). Resistance to
change often has political motives. People tend to resist changes that originate with political
adversaries. Another reason that people resist change is that they simply think the change is
going to make their life worse (e.g. complicate their job). People may resist change directly (e.g.
use political influence) or indirectly (e.g. passive aggressive behavior).

2. Unknown Current State

An architect wouldn't renovate a building without looking at the existing blueprints. The
culture, processes and systems of large organizations dwarfs the complexity of a building's
architecture. Nevertheless, organizations often attempt change without an examination of their
current blueprints. This makes it difficult to transition to a future state.

3. Integration

Managing changes in a large organization has been compared to re-engineering an aircraft

while it's in flight. Change is always a moving target. As you implement a system the business
processes it supports will change. As you change an organizational structure, employee
turnover will occur in parallel. Long running changes that have many integration points are
extremely failure prone.

4. Competitive Forces

In many cases external forces drive organizational change. Competition, external threats,
technological change, market conditions and economic forces are all common drivers of
change. Organizations may expedite change in response to external threats. If a competitor
releases a product that's 5 years ahead of your products — you may be driven to a extreme
pace of change that has a high risk of failure.

5. Complexity

As organizations develop more complex processes, systems and products — change becomes
more challenging. Complexity of change is a fundamental barrier. Complex changes require
diligent and highly effective project, risk, quality, knowledge and change management. In many
cases, organizations simply lack the requisite maturity to tackle a complex change. A
fundamental principle of change management is to never tackle a change that's too complex for
your organization.
Understanding success
One of the most important key steps to achieving success in life is to know the meaning of
success for your personal life. The true meaning of success goes far beyond the common
definitions of success, such as having a lot of money, being wealthy, having a lot of tangibles
and earned degrees. Quite the opposite: true success in life cannot be measured with the
above-named factors, but instead with the amount of people that are able to live a better and
more advanced life because of what you created. This is the meaning of success. Not the
trophies people are collecting in their lives. Media and society let us often conclude that living a
successful life means to be extraordinarily wealthy and have a lot of tangibles. But the meaning
of success is to live a happy life and to make this world a better place for everyone.

Success comes as the by-product of a life lived from the inside out. The key to living a successful
life is grasping the awareness that you are enough. Once you understand you are enough, you
create the space within your consciousness that allows you to realign harmoniously with your
essential self or highest good.

One of the early pioneers of spiritual psychology, Carl Jung, suggested our psyche, or soul,
consists of three specific parts: the persona, the ego and the essential self. The persona is the
aspect of ourselves we wish to present to the world. The ego is the “I,” or the personality. It is
the aspect of ourselves we believe ourselves to be. These two are highly powerful and can
cause us to believe in the illusion of failure when they are out of alignment with the third
aspect of our soul, our essential self, or “God-Self.” If we allow ourselves to be moved by the
world of effects, our attention is pulled away from the true callings of our soul. And as the
saying goes: Where attention goes, energy flows.

Some common characteristics among individuals who by most standards achieved enduring
success could be identified. These include:
 High achievement need
 Value on accomplishment that endures
 Multiple goals
 Passion and commitment for ambitious goals
 Ability to experience pleasure
 Urge for supremacy
 Ability to create positive relationships
 Integrity
 Inter personal skills

Components of success
Laura Nash and Howard Stephenson, of the Harvard Business School, did a long study of what
made people feel an enduring sense of real success, including in-depth interviews with over
60 successful professionals, survey of 90 top executives attending Harvard Business School
 and anthropological observation of other known high-achievers.  After building this model
they tested and proved it in over a dozen sessions with 50 to 100 executives in each. Suffice
to say, it is a pretty good model.
In summary, they found four 'irreducible components' that were necessary for people to feel
a strong and enduring sense of success.

1. Happiness
Happiness as a felt emotion is defined as feelings of pleasure or contentment about your life.
If you are happy, then you feel warm and fulfilled, at least for the moment. When you feel
successful, then that happiness is tied to the success and can thus be a long-lasting period of
contentment.
2. Achievement
Achievements are accomplishments such that goals we have set ourselves are achieved. As
we socially construct our selves, they usually compare favourably against similar goals of
other people.
In particular we feel a greater sense of achievement when we have worked hard to achieve a
stretching goal where we and others were not sure that it would be possible to meet that
goal.
3. Significance
We feel a sense of our own significance when we have made positive impact on other people
we care about. The sense of significance grows with the size of the impact and the number of
people affected. Thus if I save the world (or maybe just the whales) I will feel pretty
significant.
4. Legacy
Our sense of legacy has to do with what we leave behind us. Most of all, if we can establish
values that to help others find future success, then we will feel a strong sense of success.

Principles of competitive business success

All great businesses start small. They become great based on certain vital principles that can be
studied and mastered by business owners and entrepreneurs. Here are the 10 principles of
business greatness:
1. Become a great leader. All business success begins with a great leader who has the vision and
courage to imagine a new product, service or enterprise and then to pull together the people
and resources to make it a reality.
2. Develop a successful business plan. Successful businesses develop and work from written
business plans. They carefully analyze every detail in advance. They do not rely on luck or
chance. They plan their work and then work their plan.
3. Offer a great product or service. The excellence, appropriateness and price of your
product/service account for 90 percent of business success. This is the key focus of businesses
that thrive and grow in any market.
4. Surround yourself with great people. The best businesses have the best people at every level.
Your ability to attract, recruit, manage and motivate top people is the key to making your
business successful.
5. Create a great marketing plan. Learn how to differentiate your product and service from
competitors, attract more qualified prospects, emphasize your “unique selling proposition” and
grow your market share faster than your competitors.

6. Generate great numbers. Select the key numbers that best measure the success of each part
of your business — number of sales, size of sales, frequency of sales, profitability of sales, costs
of sales, growth of sales — and focus continually on improving those numbers.

7. Staff your company with great managers. The best companies have the best managers. Learn
how to interview, select, assign, manage and monitor the key people who make the day-to-day
decisions that will determine the fate of your business.

8. Perfect a great sales process. Learn how to consistently convert prospects into customers.

Select from and manage excellent salespeople at every level who can convince skeptical
prospects to buy your product/service.

9. Create a great customer experience. Develop a customer service strategy that is so effective

that people buy from you and tell their friends about you. Differentiate yourself from your
competitors by taking better care of your customers than your competitor does.

10. Live a great life. Keep your life in balance by taking time for your family, physical fitness and
personal activities. Set clear goals for each part of your life and then work on these goals.
Nurture the person in charge of your success
Success stories

Akio morita

Akio Morita was born on January 26, 1921, in the city of Nagoya, to a family of sake brewers.
The Morita family has been brewing sake for nearly 400 years in the city of Tokoname, near
Nagoya. Under the strict eyes of his father, Kyuzaemon, Akio was groomed to become the heir
to the family business. As a student, Akio often sat in on company meetings with his father and
he would help with the family business even on school holidays.

              The Morita family had in those days already embraced the latest in Western culture,
like the automobile and the electric phonograph. Whenever he was relieved from his
household duties, the young Akio would become engrossed in taking apart the phonograph and
putting it back together. 

               From an early age, Akio was fond of tinkering with electronic appliances, and
mathematics and physics were his favorite subjects during his elementary and junior high
school days. After graduating from High School Number Eight, he entered the Physics
Department at Osaka Imperial University. 

                During that time, Japan was in midst of the Pacific War. In 1944, Akio, who had
become a Navy lieutenant upon graduation from university that year, met the late Masaru
Ibuka for the first time in the Navy's Wartime Research Committee. 

               When he returned to the family home in Nagoya after the war, Morita was invited to
join the faculty of the Tokyo Institute of Technology by one of its professors. Morita packed his
belongings and prepared to leave for Tokyo, when an article about a research laboratory
founded by Ibuka appeared in an Asahi newspaper column called, "Blue Pencil." With the end
of the war, Ibuka had founded Tokyo Telecommunications Research Institute to embark on a
new beginning. Upon reading this article, Morita visited Ibuka in Tokyo and they decided to
establish a new company together. 

                On May 7, 1946, Ibuka and Morita founded Tokyo Tsushin Kogyo K.K. (Tokyo
Telecommunications Engineering Corporation)with approximately 20 employees and initial
capital of 190,000 yen. At that time, Ibuka was 38 years old and Morita was 25. 

                        Throughout their long partnership, Ibuka devoted his energies to technological

research and product development, while Morita was instrumental in leading Sony in the areas
of marketing, globalization, finance and human resources. Morita also spearheaded Sony's
entry into the software business, and he contributed to the overall management of the
company. 

                    The company's drive to expand its business globally is apparent in the decision to
change its corporate name to Sony in 1958, a decision that was not well received either within
or outside the company because Tokyo Tsushin Kogyo had already become widely known. To
counter such views, Morita stressed it was necessary to change the name of the company to
something that was easier to pronounce and remember, in order for the company to grow and
increase its presence globally. In addition, Morita reasoned that the company could one day
branch out into products other than electronics and the name Tokyo Tsushin Kogyo would no
longer be appropriate. Therefore, he changed the name to Sony Corporation and decided to
write 'Sony' in the katakana alphabet (a Japanese alphabet that is normally used to write
foreign names), something that was unheard of at that time. 

                    In 1960, Sony Corporation of America was established in the United States. Morita
decided to move to the U.S. with his family and took the lead in creating new sales channels for
the company. He believed that Sony should develop its own direct sales channels, rather than
rely on local dealers. 

                    Many products that have been launched throughout Sony's history can be credited
to Morita's creativity and innovative ideas. His ideas gave birth to totally new lifestyles and
cultures, and this is evident from such products as the Walkman and the video cassette
recorder. 

                  Morita also demonstrated his ability to break away from conventional thinking in the
financial area, when Sony issued American Depositary Receipts in the U.S. in 1961. It was the
first time that a Japanese company had offered shares on the New York Stock Exchange, and
this enabled the company to raise capital not just in Japan. Sony paved the way for Japanese
companies to raise foreign capital, at a time when the common practice of Japanese
management was to borrow funds from banks. 

                       In the area of human resources, Morita wrote a book called Never Mind School
Records in 1966 and stressed that school records are not important in carrying out a job.
Morita's point of view, which he had first made known more than 30 years ago, is today
followed by many companies in Japan. 

                      As changing the name Tokyo Tsushin Kogyo to Sony indicates, Morita was eager to
diversify Sony's operations outside of the electronics business. In 1968, the company entered
the music software business in Japan by establishing CBS/Sony Group Inc. jointly with CBS, Inc.
of the U.S. Then in 1979, Sony entered the financial business in Japan with the founding of Sony
Prudential Life Insurance Co. Ltd., a 50-50 joint venture with The Prudential Life Insurance Co.
of America. Furthermore, Sony acquired CBS Records Inc., the records group of CBS in 1988.
The following year, Sony acquired Columbia Pictures Entertainment, Inc., enabling the company
to become a comprehensive entertainment company that owns both quality software content
and a wealth of hardware.

                        Besides managing Sony, Morita was active in building a cultural bridge between
Japan and abroad as Vice Chairman of the Keidanren (Japan Federation of Economic
Organizations) and as a member of the Japan-U.S. Economic Relations Group, better known as
the "Wise Men's Group." He was instrumental in trying to ease trade frictions between Japan
and the U.S., and through the publication of such literary works as Made in Japan, he became,
"one of the most well-known Japanese in the U.S." 

                   Morita was the first Japanese to be awarded the Albert Medal from the United
Kingdom's Royal Society of Arts in 1982. In1984, he received the National Order of the Legion of
Honor (Ordre National de la Légion d'Honneur), the highest and most prestigious French order,
and in 1991, he was awarded the First Class Order of the Sacred Treasure from H. M. the
Emperor of Japan. In addition, Morita received numerous awards from countries such as
Austria, Belgium, Brazil, Germany, Spain, the Netherlands, and the United States, which shows
the extent of his global recognition. 

               Morita emitted a natural radiance, and his personality, which he himself described as
"cheerful," was loved by many. He had a wide circle of friends both in Japan and abroad,
including individuals like Kiichi Miyazawa, former Prime Minister of Japan, Henry Kissinger,
former U.S. Secretary of State, and orchestra conductors such as Zubin Mehta and the late
Herbert von Karajan. 

                   Morita's boundless curiosity and challenging spirit extended to his private life; he
started skiing, tennis, and scuba diving when he was past 50 years old.

Indira Nooyi
The lady with a fizz, Indra Krishnamurthy Nooyi is the chairman and CEO of PepsiCo, the world's
fourth-largest food and Beverage Company. An Indian-born American executive, Nooyi was
ranked No.4 on Forbes magazine's annual survey of the 100 most powerful women in the
world. Prior to becoming CEO she was the President, Chief Financial Officer and a member of
the Board of Directors of PepsiCo Inc.

Belonging to a South Indian family, Nooyi was born on October 28, 1955 in Tamil Nadu, India.
Her father worked at the State Bank of Hyderabad and her grandfather was a district judge. She
completed her schooling from Holy Angels AIHSS, Chennai and received a Bachelor's degree in
Physics, Chemistry and Maths from Madras Christian College in 1974. On completion of her
graduation she went to Indian Institute of Management (IIM) Calcutta for doing Masters in
Finance and Marketing. According to the faculty members Nooyi has been a very mediocre
student.

After completion of her MBA she joined ABB and then Johnson and Johnson (J&J) in Mumbai as
a product manager. One of her achievement with J&J is her close association with launch of the
sanitary napkin, Stayfree.  Not satisfied with the way her career was going she persuaded her
parents to let her study at Yale Management School in US and earned a Master's degree in
Public and Private Management in 1978.

While studying at Yale she worked as a receptionist to buy a western suit for her first job
interview. Being uncomfortable with the outfit she was rejected. For her next interview her
professor advised her to stick to what she was comfortable with. She wore a sari and got the
job and this philosophy of ‘be yourself’ she followed for the rest of her career.

Before landing in Pepsi, world’s second largest soft-drink company Nooyi worked with Boston
Consulting Group and Motorola. Nooyi coaxed the CEO Roger Enrico of the Pepsi to follow-up
the company’s restaurant division, including brands such KFC, Pizza Hut and Taco Bell, as the
chief strategy officer.

She was elected to PepsiCo’s Board of Directors and became President and Chief Financial
Officer in 2001, after serving as Senior Vice President and Chief Financial Officer since 2000.
Nooyi also served as PepsiCo’s Senior Vice President, Corporate Strategy and Development
from 1996 until 2000, and as PepsiCo’s Senior Vice President, Strategic Planning from 1994 until
1996.

In 2006, Nooyi surpassed everybody’s imagination, when she was named the successor to
Steven Reinemund as chief executive officer of Pepsi Co. According to Business Week, since she
started as CFO in 2000 the company's annual revenues have risen 72%, while net profit more
than doubled, to USD 5.6 billion in 2006.

She steered PepsiCo with revenues of more than USD 60 billion and over 285,000 employees.
She equally emphasized in the Mergers and Acquisition which was bolstered by the acquisition
of the Tropicana and Quaker fruit juice brands. With her superb knack of facts and figures she
predicted the slowdown in the popularity of aerated soft drinks in the markets worldwide. She
meticulously planned for the foray of Pepsi into the sport drinks market in association with
Gatorade. Her quick decision making ability and clinging to the work until it’s accomplished
continues to grow PepsiCo, the USD 39 billion food and beverage giant.

Focusing on innovation instead of acquisition, the company has been debuting new product
lines, targeted marketing and repackaging efforts since 2009. The group also launched a
"Refresh Everything" campaign, featuring Pepsi Natural, made with all-natural ingredients, and
Pepsi and Mountain Dew Throwback, inspired by designs of the 1960s and '70s.
Speaking of her achievements, Nooyi is the 12th highest paid corporate woman in the US, with
an annual pay package of over USD 12.7 million, according to Forbes magazine. She shares the
world’s most 100 most powerful women list with the likes of Condoleeza Rice, Sonia Gandhi,
Oprah Winfrey and Hilary Clinton. She was awarded the Padma Bhushan in 2007. Nooyi has
been named the ‘Most Powerful Business Woman in the world’ in 2006 and 2007 by Fortune
magazine. Presently, there are only 10 Fortune 500 companies that are run by women. Nooyi is
the 11th to break into the top echelons of power. The Cola giant chairperson serves as an
Honorary Co-Chair for the World Justice Project.

Describing herself as an ordinary girl she still retains so much of her Indianness and dons sari
with bindi in most of the office ceremonies. She believes the corporate world appreciates
people who are genuine. She views PepsiCo as an extended family. Being a woman, immigrant
and of different race made it thrice difficult for Nooyi to reach to this position but the only
mantra which she followed was working twice hard as the male counterpart.

A mother of two daughters, she has an inclination towards arts and is a member of the Boards
of the Lincoln Center for the performing Arts in the New York City. Nature wise she is simple,
chirpy and has a great sense of humour. She comes as personality sans controversy.

At the age of 55, Nooyi rise to power has lit up fire in every mediocre soul that nothing is
impossible for the determined and strong willed person, the only thing being required is the
perseverance.

The Iron woman of PepsiCo motto is, “Brands go through ups and downs. I think every five or
seven years, you've got to change out the approach to the brand, because you need a new boost
of energy to think about the next iteration. Too many brands, when they are successful, just
become arrogant and get trapped in their very self confidence.”