change management

CHANGE MANAGEME

NT

CHANGEORGANIZATIONAL

CHANGECHANGE

IN STRUCTURE

CHANGE IN

PROCESS

CHANGE IN

TECHNOLOGY

CHANGE IN

PEOPLE

CHANGE IN

CUSTOMERS

CONCLUSION

CHANGE IN

CULTURE

MANAGING

PRESENTED BY:

Rida Nazakat (G.L.) 12Asma Nasir 05Wardah Hameed 21Sehar 25Saadia Khaleel 27Nida Malik 32Madiha 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 CHANGEStage

1Stage

2Stage 3

Stage 4

Stage 5

Shock

Angry

Denial

Acceptance

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

ORGANIZATIONAL

CHANGE

FACTORS IN ORGANIZATIONAL CHANGE

Structure

ProcessPeople

Technology

CultureCustomer

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 STRUCTUREStrategy

Size

Technology

Environment

Organization Restructure

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

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

2003 divided the company into four divisions

Customer and marker operations

Technology Platforms

NetworksEnterprisesolutionsMultimedia

Mobilephones

NOKIA ORGANIZATIONAL STRUCTURE (2003-

2008)

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

Corporate FunctionsCorporate Development Office

Services &

Software

Devices

Markets

NokiaSiemensNetwork

NAVTEQ

NOKIA’S NEW STRUCTURE

RESTRUCTURING OF EIGHT MAJOR ORGANIZATIONS

1- Pakistan International Airlines2- Pakistan Steel Mills3- Pakistan Electric Power Company4- Pakistan Railways5- National Highway Authority6- Pakistan Agricultural Storage and Services

Cooperation7- 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 Re-engineering

• Radical Transformation• Vision-Led• Change Attitudes & Behaviors• Director-Led• Limited Number of Initiatives

Process Simplification

• Incremental Change• Process-Led• Assume Attitudes & Behaviors• Management-Led• Various Simultaneous Projects

(Source Coulson-Thomas, 1992)

BPR VERSUS CONTINUOUS

IMPROVEMENT

Process Re-engineering

• Radical Transformation• People & Technology Focus• High Investment• Rebuild• Champion Driven

Continuous Improvement

• Incremental Change• People Focus• Low Investment• Improve Existing• Work Unit Driven

WHY REENGINEER?Customers

– Demanding– Sophistication– Changing Needs

Competition– Local– Global

Change– Technology– Customer Preferences

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan

IMPLEMENTING A BPR STRATEGY

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

1. Traditional Organization

Top managers maintain central control of actions and strategy

Employees

Top

Managers

Power to

Influence

Strategic

Direction

Employees

Power to Influence Work

Flow Decisions and Actions

Evolution of the Learning Organization

1. Traditional Organization

Top managers maintain central control of actions and strategy

Employees

Top

Managers

Power to

Influence

Strategic

Direction

Employees

Power to Influence Work

Flow Decisions and Actions

2.Horizontal/Network

Organization Teams with empoweredemployees responsible for quality

Evolution of the Learning Organization

1. Traditional Organization

Top managers maintain central control of actions and strategy

Employees

Top

Managers

Power to

Influence

Strategic

Direction

Employees

Power to Influence Work

Flow Decisions and Actions

2.Horizontal/Network

Organization Teams with empoweredemployees responsible for quality

3. Learning Organization• Employees see big picture and have all information.• Formulate emergent strategy and responsible forcustomer satisfaction

Shared Vision

Team Learning

Mental Models

Personal Mastery

Systems Thinking

PETER SENGE’S FIVE DISCIPLINES

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

Acceptable

Fulfilling Needs

INNOVATOR

NEEDS FOR CHANGE

•Compete

•Increase Market Share

•Attract People

•Capture Markets

NOKIA N900

nokia N900+DrNokSnes+2

PS3 Sixaxis• Vedio

MANAGING TECHNOLOGICAL

CHANGESMaking RELATIONS with other

businessesLeadershipCommunicationEnd user involvementTraining & EducationCost 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

Asma Nasir

Roll no:5

MANAGING PEOPLE THROUGH CHANGE

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 assistedetc.

IATUL June 04

CLIENT SATISFACTION 2002

0

1

2

3

4

5

6

7

Communication Service Quality Service Delivery Facilities &Eqip Library Staff

Pe

rfo

rma

nce

Ra

ting

(sc

ale

1-7

)

University of Wollongong Library Avg of Australian Academic Libraries

TECHNICAL SERVICES - PROCESSING COSTS

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1997 1998 1999 2000 2001 2002

sala

ries

and

oper

atin

g co

sts

IATUL June 04

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

ORGANIZATIONAL DEVELOPMENT

Mergers/acquisitionsOrganizational decline/revitalizationConflict management

ORGANIZATIONAL DEVELOPMENT ACTIVITIES

Team-building activitiesSurvey-feedback activitiesLarge-group interventions

ORGANIZATIONAL CHANGE AND HUMAN

REACTION

AcceptanceResistanceIndifferenceForced Acceptance

RESISTANCE TO CHANGE

ORGANIZATIONAL SOURCES OF RESISTANCE

Over determinationNarrow focus of changeGroup inertiaThreatened expertiseThreatened powerResource allocation

INDIVIDUAL SOURCES OF RESISTANCE

HabitSecurityEconomic factorsFear of unknownLack of awarenessSocial 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

CULTURE

RELIGION

LANGUAGE

VALUES&ATTITUDES

EDUCATION

MANNERS&CUSTOMS

ECONOMIC PHILOSOPHY

POLITICAL PHILOSOPHY

LAWS

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 BUSINESSGeneral 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 FlexibilityAdaptation Employ host-country nationalsUsing different approachCadre of cosmopolitan executives

Sadia Kaleel

Roll No. 27

MANAGING CUSTOMERS

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-cof

fee-bean/• 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