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Leading Positive Change
Dr. Chandan VichorayBE, MBA, Ph.DAssistant Professor, DMT, SKNEC, NagpurEmail: [email protected]
“The changes in new models should be so novel and attractive as to create
dissatisfaction with past models”- Alfred P. Sloan,1922
Change• The only permanent thing in
life
• Has a great impact on all aspects
• Can be positive as well as negative
• Can help develop strong personalities
Change Management• Managing Change is as important
as any other function
• Relates survival to the dynamic environment present around you
• More Psychological Parameter than technical
• Leaves you defeated if adaptation is not there to Change
The Process of Positive Change
Lewin’s Force Field Analysis Model
An Example of the Kurt Lewin Model
Resistance to Change
Forces for
Change
Direct Costs
Saving Face
Fear of the Unknown
Breaking Routines
Incongruent System
Incongruent Team Dynamics
Leading a Positive Change• Communication
• Training
• Employee Involvement
• Stress Management
• Negotiations
• Coercion
Leadership and Change
• Initiate
• Self belief before changing
• Constant need to adapt to the dynamic environment
• Deterministic approach using Analytical and Psychological techniques
• Owning the responsibility for failures
The System Approach to Positive Change
The Personal Positive Change
• Understand your needs and values
• Understand your competencies
• Set career goals
• Maintain networks
• Get a mentor
Nissan – A Case Study
• Nissan is a Japanese Automaker
• Was on the verge of bankruptcy
• Taken over by Renault
• Trouble with Nissan was High Debt and plummeting market share
Nissan – A Case Study Contd…
• Carlos Ghosn, given the charge of Nissan
• Identified problem with Nissan by Carlos Ghosn was no apparent urgency of Nissan Managers to react
• Ghosn’s Challenge was to act quickly and yet avoid the resistance to an outsider
Nissan – A Case Study Contd…
• Ghosn formed 9 cross functional teams of 10 middle managers each
• Gave them the task of identifying innovative proposals for a specific area within 3 months
• Each team was empowered with Authority to form subteams with additional people
Nissan – A Case Study Contd…
• More than 500 middle managers and employees participated in the Nissan Revival plan
• The start was slow but steady
• Ghosn reminded them of the desparate situation and injected them with the sense of urgency
Nissan – A Case Study Contd…
• Three months later, an audacious plan was submitted which said:
• Closing of three assembly plants• Eliminate thousands of direct and indirect jobs• Cutting the number of suppliers by half• Reducing purchasing costs by 20%• Cutting company’s debts by half by liquidating
fixed unused assets• Introduction of 22 new models within next 2
years
Nissan – A Case Study Contd…
• Ghosn accepted all the proposals
• Result: A profit making Nissan within 12 months after a gap of 7 years
• Ghosn went on to become the President of Renault
References• McShane, Steven L, Ann Von Glinow, Mary, Sharma,
Radha R, “Organizational Behaviour”, 3rd Edition, Tata McGraw Hill
• Luthans, Fred, “Organizational Behaviour”, 10th Edition, McGraw Hill International Edition
• Robbins, Stephen P., “Organizational Behaviour”, 11th Edition, Prentice Hall India
• http://www.change-management-coach.com/
• Wikipedia.org
Thank You