change management in volatile economy
TRANSCRIPT
CHANGE MANAGEMENT IN VOLATILE ECONOMYPRESENTED BYAPARNA ,DEVESH SHUKLA ,HARSHAD , SWIKAR ,HEMANTH
AGENDA
What is change management? Activities contributing to effective change management Soft and hard side of change management DICE for change management calculation What is volatile economy – Indian Situation CASE STUDY – TATA motors
What is Change management
Change management is a systematic approach to dealing with change both from the perspective of an organization and the individual.
Aspects of change management
Adapting Controlling Effecting
ACTIVITIES CONTRIBUTING TO CHANGE MANAGEMENT Motivating Change Creating Vision of Change Developing political support Managing the transition Sustaining momentum
MOTIVATING CHANGE
Motivating change and
creating readiness
Sensitize organisations to
pressure for changeReveal
discrepencies between current
and desired statesConvey credible
positive expectations
CREATING VISION FOR CHANGE
Constructing envisioned
Future
Bold and valued outcome
Desired future state
DEVELOPING POLITICAL SUPPORT
Developing political support
Assessing change agent
power
Identify key stakeholders
Influencing Stakeholders
SUSTAINING MOMEMTUM
Current State
Desired Future State
Transition state
Activity Planning , Change management Team
SOFT & HARD SIDE OF CHANGE MANAGEMENT
Culture , leadership , Motivation and communication – These are soft sides of change management .They are necessary but not sufficient.
Hard Side – This determines outcome of any transformation initiativeD - Duration 1 – Very short duration project , 4 –
When there is time between milestones
I - Integrity 1 – Team is lead by highly capable leader , 2,3 – Intermediate capability, 4 – Team lacks on skills, alignment to goal
C - Commitment 1 – eagerness to take change, 2 – just willing , 3, 4 – reluctant or strong reluctance
E - Effort 1 – project <10 % extra work , 2- 10 -20% extra work , 3 – 20-40% extra work , 4 - > 40% work7 – 14 (WIN ) , > 17 – Unlikely to succed
What is volatile economy – Indian Situation
Demonetization More FDI in India IT Sector Bad loan’s problem
CASE STUDY – TATA MOTORS
Tata Motors, division of one of the largest business houses in India has grown significantly over the last 64 years since its establishment in 1945
During the period 1995-1998, the commercial vehicle business had been doing well and Tata Motors grew at 30-40 per cent.
Then came the downturn in the economy and the market for com mercial vehicles suddenly shrank by 40%.
Tata Motors moved to the offensive by refocusing its investments on less cyclical products, including light commercial vehicles, buses, and spare parts; making a successful entry into passenger cars.
Timely change by M.D.RAVI KANT, Cost reduction strategy ,modify products to low costs with rival bench marking
Youth role in Change management
The whole cost initiative came from one of the breakfast meetings at an operation in Pune.
10 % cost reductions was agreed upon after team meeting with seniors. After this, the young employees to put together a bigger team from
Jamshedpur and Lucknow, to include representatives from sales and marketing, and spend ten days working on the plan.
That was the defining moment because if they had tried to go only through the top, they might not have succeeded as well, and the transformation might have taken much longer.