CHANGE

MANAGEMENT
 ORGANIZATIONAL CHANGE
CHANGE CHANGE IN
STRUCTURE

CHANGE
CONCLUSION MANAGI IN
PROCESS
NG
CHANGE
IN
CUSTOMERS
CHANGE CHANGE CHANGE
IN IN IN
CULTURE PEOPLE TECHNOLOGY
PRESENTED BY:
Rida Nazakat (G.L.) 12
Asma Nasir 05
Wardah Hameed 21
Sehar 25
Saadia Khaleel 27
Nida Malik 32
Madiha Fareed 33
CHANGE ?
Funny ad
 WHY CHANGE?
Change for the Better!
Change for new breakthroughs.
Change for continual improvement.
Change to eliminate further errors.
Change to reenergize.
Change is the journey of excellence.
Change because YOU want to change.
RESISTANCE TO
CHANGE
 REACTIONS TO
Stage 1 CHANGE
Shock
Stage
2
Angry
Stage 3
Denia
l Stage 4
Acceptance
Stage 5
Challenge

http://www.sabrehq.com/team_building_articles/change-reactions.htm
ARE YOU A CARROT OR AN EGG ON A
COFFEE BEAN?

http://automaticlifestyle.com/208/reaction-to-change-are-you-a-carrot-an-egg-or-a-coffee-bean/
“It is not the strongest of the species that
survives, nor the most intelligent that
survives. It is the one that is the most
adaptable to change.”
Charles Darwin [1809 – 1882]
video
 MOTIVATING CHANGE AT
JOHNSON VILLE SAUSAGE

Nilanjan Sengupta, Mousumi S. Bhattacharya and R.N. Sengupta, Managing Change in organizations, New Delhi,
Princeton Hall of India Pvt Limited
ORGANIZATION
AL
CHANGE
FACTORS IN ORGANIZATIONAL CHANGE

Structure
Process
People
Technolog
y
Culture
Customer
Motivational video
 MANAGING
STRUCTURAL CHANGES

Wardah Hameed
Roll No. 21
 RESTRUCTURING
“Restructuring is the corporate
management term for the act of
reorganizing the legal,
ownership, operational, or other
structures of a company for the
purpose of making it more
profitable, or better organized
for its present needs “
 FACTORS DETERMINING
CHANGE IN STRUCTURE
Strategy
Size Organization
Restructure
Technology

Environment
RESTRUCTURING
RESTRUCTURING
AT
NOKIA
RESTRUCTURING AT
NOKIA
maintain its leadership status
achieve growth and success
adapt to its dynamically changing
goals and visions
RESTRUCTURING AT
NOKIA
First Wave Second Wave

2002 2003 2008

FIRST WAVE
split its mobile
2002 phone division
pillar into nine
separate business
centers based on
geography

divided the company

2003
into four divisions
 NOKIA ORGANIZATIONAL
STRUCTURE (2003-2008)

Customer and
marker operations

Mobile Enterprise
Multimedia Networks
phones solutions

Technology
Platforms
The First Wave Loses Steam Second wave
of
restructuring
Second Wave

Nokia restructured itself into three main

functional groups:

1- Markets
2- Devices
3- Software & Services
 Group Executive Board
Software
& Nokia
Services Siemens
Network
Markets
Devices
NAVTEQ

Corporate Development Office

Corporate Functions

NOKIA’S NEW
STRUCTURE
RESTRUCTURING OF EIGHT MAJOR
ORGANIZATIONS

1- Pakistan International Airlines

2- Pakistan Steel Mills
3- Pakistan Electric Power Company
4- Pakistan Railways
5- National Highway Authority
6- Pakistan Agricultural Storage and Services
Cooperation
7- Trading Corporation of Pakistan
8- Utility Stores Corporation
 Restructuring
Challenges & Opportunities
PROCESS REENGINEERING

Seher Khushi Muhammad

Roll No. 25
 WHAT IS BPR?

Reengineering is the fundamental

rethinking and redesign of business
processes to achieve dramatic
improvements in critical, contemporary
measures of performance, such as cost,
quality, service and speed.

(Hammer & Champy, 1993)

 BPR IS NOT?
BPR may sometimes be mistaken for
the following tools:

• Automation
• Downsizing
• Outsourcing
 BPR VERSUS PROCESS
SIMPLIFICATION

Process Simplification Process Re-engineering

• Incremental Change • Radical Transformation

• Process-Led • Vision-Led
• Assume Attitudes & Behaviors • Change Attitudes & Behaviors
• Management-Led • Director-Led
• Various Simultaneous Projects • Limited Number of Initiatives

(Source Coulson-Thomas, 1992)

BPR VERSUS CONTINUOUS
IMPROVEMENT

Continuous Improvement Process Re-engineering

• Incremental Change • Radical Transformation

• People Focus • People & Technology Focus
• Low Investment • High Investment
• Improve Existing • Rebuild
• Work Unit Driven • Champion Driven
 WHY REENGINEER?
Customers
– Demanding
– Sophistication
– Changing Needs

Competition
– Local
– Global

Change
– Technology
– Customer Preferences
 IMPLEMENTING A BPR
STRATEGY

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan
 SELECT THE PROCESS &
APPOINT PROCESS TEAM
Two Crucial Tasks

– Select The Process to be

Reengineered

– Appoint the Process Team to Lead

the Reengineering Initiative
 UNDERSTAND THE
CURRENT PROCESS
• Develop a Process Overview
• Clearly define the process
• Set business and customer
measurements
• Document the Process
DEVELOP & COMMUNICATE
VISION OF IMPROVED
PROCESS
• Communicate with all employees so
that they are aware of the vision of
the future
• Demonstrate assurance that the BPR
initiative is both necessary and
properly managed
• Tackle any actions that need
resolution
 IDENTIFY ACTION PLAN
• Develop an Improvement Plan

• Appoint Process Owners

• Simplify the Process to Reduce

Process Time

• Up-grade Equipment
 EXECUTE PLAN
• Qualify/certify the process
• Define and eliminate process
problems
• Benchmark the process
 INFORMATION
TECHNOLOGY & BPR
 COMMON PROBLEMS WITH
BPR
• Process under review too big or too
small
• The Costs of the Change Seem Too
Large
• Allocation of Resources
• Poor Timing and Planning
• Keeping the Team and Organization on
Target
THE LEARNING
ORGANIZATION
 THE LEARNING
ORGANIZATION

An organization in which everyone is

engaged in identifying and solving
problems, enabling the organization
to continuously experiment, improve,
and increase its capability.
 Characteristics of a
Learning Organization

Exhibit 5.11
 Evolution of the Learning Organization
Employees

Power to
Influence
Strategic
Direction
1. Traditional Organization
Top managers maintain
central control of actions
and strategy

Top
Power to Influence Work
Managers Employees
Flow Decisions and Actions
 Evolution of the Learning Organization
Employees

Power to
Influence
Strategic
Direction
1. Traditional Organization 2.Horizontal/Network
Top managers maintain Organization
central control of actions Teams with empowered
and strategy employees responsible for
quality
Top
Power to Influence Work
Managers Employees
Flow Decisions and Actions
 Evolution of the Learning Organization
Employees
3. Learning Organization
• Employees see big picture
and have all information.
• Formulate emergent
Power to strategy and responsible for
Influence customer satisfaction
Strategic
Direction
1. Traditional Organization 2.Horizontal/Network
Top managers maintain Organization
central control of actions Teams with empowered
and strategy employees responsible for
quality
Top
Power to Influence Work
Managers Employees
Flow Decisions and Actions
PETER SENGE’S FIVE
DISCIPLINES

Systems Personal
Thinking Mastery

Team Mental
Learning Models
Shared
Vision
 INHIBITORS TO
BECOMING A LEARNING
ORGANISATION

• Short term fixes rather than long-term

solutions
• Reluctance to train (or invest in
training)
• Too many hidden personal agendas
• Tension between top-down order and
bottom up anarchy
 MANAGING
TECHNOLOGICAL
CHANGES

Madiha Fareed
Roll No. 33
 TECHNOLOGICAL
CHANGE
•Modification of existing tools
•Introduction of new equipments
•Internet based dealings
•Automation
•From books to laptops
 Innovation

Technological Change
 INNOVATION

New

Fulfilling
Needs Acceptable
INNOVATOR
• Capture Markets
• Attract People
• Increase Market Share
• Compete
NEEDS FOR CHANGE
NOKIA N900
N900+DrNokSnes+2 PS3
Sixaxis
• Vedio
MANAGING TECHNOLOGICAL
CHANGES
Making RELATIONS with other
businesses
Leadership
Communication
End user involvement
Training & Education
Cost for maintenance
 RELATIONS WITH OTHERS
Sony Ericsson
 LEADERSHIP

•Taking initiative
•Cognitive ability
•Networking
 COMMUNICATION

•Stakeholders
•Employees
•Customers
END USER INVOLVEMENT
TRAINING & EDUCATION
COST FOR MAINTENANCE
Nokia 1100 Nokia 5800
IF NOT…???

OR
MANAGING PEOPLE
THROUGH CHANGE

Asma Nasir
Roll no:5
 PEOPLE CHANGE

“change in employees,
values, norms,
attitude, beliefs and
behaviors”
 TRAINING
• Knowledge
– What do I need to
know?
• Skill
– What do I need to do?
• Attitude
– How do I feel?
 TYPES OF TRAINING

lecture
audio visual, programmed
instruction
computer assisted
etc.
IATUL June 04
CLIENT SATISFACTION 2002
7
Performance Rating (scale 1-7)

0
Communication Servic e Quality Servic e Delivery Facilities &Eqip Library Staff

University of Wollongong Library Avg of Australian Academic Libraries

TECHNICAL SERVICES - PROCESSING
COSTS

1600000
salaries and operating costs

1400000
1200000
1000000
800000
600000
400000
200000
0
1997 1998 1999 2000 2001 2002

IATUL June 04
ORGANIZATIONAL
DEVELOPMENT
 ORGANIZATIONAL
DEVELOPMENT
Organizational
development is a
planned, systematic
process of change that
uses behavioral science,
knowledge and
techniques to improve
an organization’s health
and effectiveness
through its ability and
increase learning and
problem solving
capabilities”
 ORGANIZATIONAL
DEVELOPMENT

Mergers/acquisitions
Organizational decline/revitalization
Conflict management
ORGANIZATIONAL DEVELOPMENT
ACTIVITIES

Team-building
activities
Survey-feedback
activities
Large-group
interventions
ORGANIZATIONAL CHANGE
AND HUMAN REACTION

Acceptance
Resistance
Indifference
Forced Acceptance
RESISTANCE TO CHANGE
 ORGANIZATIONAL SOURCES OF
RESISTANCE

Over determination
Narrow focus of change
Group inertia
Threatened expertise
Threatened power
Resource allocation
 INDIVIDUAL SOURCES OF
RESISTANCE

Habit
Security
Economic factors
Fear of unknown
Lack of awareness
Social factors
MANAGING CULTURE

Nida Malik
Roll No. 32
CULTURE
 CULTURE

“Integrated system of learned behavior

patterns that are characteristics of
members of any given society”
 DETERMINANTS OF
CULTURE

ECONOMIC
PHILOSOPHY
EDUCATION LANGUAGE

MANNERS&CUSTOMS VALUES&ATTITUDES
CULTURE

RELIGION LAWS
POLITICAL
PHILOSOPHY
CULTURE SHOCK
video
CULTURAL CHANGE
Culture is not constant

It evolves over time

 CULTURAL CHANGES
AROUND THE WORLD
• Use of Alcohol in Saudi Arabia and
America

• KFC in Chinese market

• Women encouragement in Pakistan and

US

• Employment in Japan and US

 Example:
Cultural Changes In Pakistan
COLLECTIVISM TO
INDIVIDUALISM
BOOKS TO GUNS
NON-DEMOCRATIC TO
DEMOCRATIC
LOYALTY TO DECEPTION
EIDS TO BASANT
SIMPLE TO FASHIONABLE
?????????
 MAILEY COLLEGE TO
HAILEY COLLEGE
Mailey College Hailey College
CULTURAL CHANGES AND
BUSINESS WORLD
IMPACT OF CULTURE ON
BUSINESS
IMPACT OF CULTURE ON
BUSINESS

McDonald’s in India
IMPACT OF CULTURE ON
BUSINESS

Islamic Banking
 IMPACT OF CULTURE ON
BUSINESS
Channel MTV
IMPACT OF CULTURE ON
BUSINESS
General Motors

Nova to caribe
IMPACT OF BUSINESS ON
CULTURE
 IMPACT OF BUSINESS ON
CULTURE
Mobile Phones
IMPACT OF BUSINESS ON
CULTURE

McDonald’s
Impact of Culture On
Business
 MANAGING CULTURAL
CHANGE

Don’t Be An Oak Tree;

Be Like Reed
 MANAGING CULTURAL
CHANGE
Well-informed
Flexibility
Adaptation
Employ host-country nationals
Using different approach
Cadre of cosmopolitan executives
MANAGING CUSTOMERS

Sadia Kaleel
Roll No. 27
CRM
PHASES OF CRM
 CUSTOMER
SATISFACTION AREAS
TRADITIONAL CRM
SOCIAL CRM
CASE STUDY OF
SICHUAN
 ATLAS BANK
IMPLEMENT CRM
SOLUTION
 REFERENCES
 
• Nilanjan Sengupta, Mousumi S. Bhattacharya and R.N. Sengupta, Managing Change in
organizations, New Delhi, Princeton Hall of India Pvt Limited
• http://www.iienet2.org/Details.aspx?id=3290
• http://www.5forcesofchange.com/index.html
• http://automaticlifestyle.com/208/reaction-to-change-are-you-a-carrot-an-egg-or-a-coffee-be
an/
• http://www.sabrehq.com/team_building_articles/change-reactions.htm
• http://www.sabrehq.com/team_building_articles/coping-change.htm
• http://www.change-management-coach.com/definition-of-change-management.html
• http://searchcio.techtarget.com/sDefinition/0,,sid182_gci1373851,00.html