Strategic Management of Change

STRATEGIC MANAGEMENT OF
CHANGE
• NEED A STRATEGY TO MANAGE CHANGE
• METHOD TO MAKE SENSE OF THE AMBIGUITY

• PLANNED APPROACH TOWARDS UNCERTAINTIES OF CHANGE

THE STRATEGIC SYNTHESIS

• BASKET OF ADAPTIVE STRATEGIES

• RANGE OF OPTIONS - WITH GOOD PAY-OFFS
• POWER OF CHOICE - ALTERNATIVES WITH EQUALLY GOOD PAY-OFFS
• MECHANISMS OF CHANGE - CHANGE FRAME OF REFERENCE FROM CHAOS TO
STASIS - WHERE PAY-OFFS MAY BE HIGHER.

•STRATEGIC DANCE ON PARADIGMS =

FLEXIBILITY
THE PROCESS OF LEARNING

• METRICS
• APPLY LEARNING FOR BETTER PERFORMANCE
• COSTS TO GO DOWN
• PROFITS TO INCREASE
• BETTER QUALITY
• TIME TO MARKET, PRODUCE, DELIVER - DECREASE
• NEW PRODUCT INTRODUCTIONS
LEARNING & ITS OVERLAPS
• LEARNING – INNOVATION
• COMPETENCY ENHANCING OR DESTROYING
• WIPRO’S – ABSORPTIVE CAPACITIES
• CREATIVE IMITATION OF HDFC BANK

• LEARNING – COMPETITIVENESS
• ADVANTAGES FOR PARTNERSHIPS AND ALLIANCES
• HLL AND P&G

• LEARNING – LEADERSHIP
• INSEPARABLE IN PROCESS VIEW
• INHERENT IN THE NOTION OF CULTURE
 BUILDING THE MATRIX

• STEP 1: IDENTIFY CRITICAL PROCESS

• STEP 2: IDENTIFY SYSTEM INTERACTIONS
• STEP 3: IDENTIFY TRANSITION INTERACTIONS
• STEP 4: SURVEY STAKEHOLDERS
 EXISTING AND TARGET PRACTICES

EXISTING PRACTICES
Designated equipment, separated by type
RUN AN EFFICIENT, LOW-COST Narrow job functions
OPERATION Salaried employees make all decisions
Hourly workers carry them out
Functional groups work independently
Keep line running no matter what

Through final inspection by QA

Raw materials made in house
MEET PRODUCT REQUIREMENTS Large WIP and FG inventories
(QUALITY AND QUANTITY) Pay tied to amount produced

Vertical communication flow

HIERARCHICAL STRUCTURE TO
Several management layers
CLEARLY DEFINE ROLES AND
RESPONSIBILITIES
EXISTING AND TARGET PRACTICES
CONTD….
TARGET PRACTICES
Flexible equipment using information technology
ENERGIZED, EMPOWERED ORGANIZATION
Flexible job responsibilities
Supervisors can fill in on-line production
Systematic problem solving
All employees contribute ideas
Concurrent engineering

Vision given from top

ZERO NONCONFORMANCE TO Operators responsible for quality
REQUIREMENTS
Stop line if not running at speed
All operators paid same flat rate

TWENTY-FOUR-HOUR CONVERSION OF Areas organized in work cells

RAW MATERIALS TO FINISHED GOODS All materials outsourced

ELIMINATION OF ALL NON-VALUE-ADDING

COSTS
Low JIT inventories
Few Management layers (3-4)
Line rationalization