Prof. Anil Kumar Singh &

Prof. Muqbil Burhan

ORGANISATIONAL CHANGE AND

TRANSFORMATION

ORGANISATIONAL CONTEXT

HORIZONTAL STR

ADAPTIVE CULTURE

COLLOBORATIVE STRATEGY

SHARED INFORMATION

EMPOWERED ROLES

STABLE ENVIRONMENT

(Mechanical System Paradigm)

TURBULANT ENVIRONMENT

(Natural System Paradigm)

Efficient Performance Learning Organisation

XEROX &

ABB??????

??Page 178 Xerox/

Team

Xerox/Pag

e 149 ABB

Phase 1

defficiency

Xerox

Business

Architectur

e

Page

147, 158

ASAE/AB

B

Page

147

ASAE

&ABB

CHANGE?

Organizational Growth ∞ Organizational Ability to manage change.

Change is the only constant in contemporary context.

Any strategic Development will, of necessity, involvemanaging some degree of change to structures,Technologies, products, services, culture orprocesses.

Barlett & Ghoshal, “ Managing across Borders”, HBR

“The levels of change have in many instances outpaced the Human capability to cope-up with Change”.

CAN WE QUANTIFY CHANGE???????

ORGANISATIONAL CHANGE

An alteration of an organization’s environment,

structure, culture, technology, or people

NATURE A constant force

An organizational reality

An opportunity or a threat

Change agent A person who initiates and assumes the responsibility for

managing a change in an organization

CHANGE AGENTS IN CASE OF XEROX: Is it Fred Hewitt or someone else

CHANGE AGENT IN CASE OF ASAE & ABB: ????????

HOW APPROACHES OF THESE TWO CHANGE AGENTS DIFFER??????

STRATEGY-CHANGE

&TRANSFORMATION

Success can work against a company when

it looses touch with customers.

Radical changes may be only choice for

organization in desperate need of change.

XEROX & CUSTOMERS?

DESPERATION FOR ASEA?

FORCES FOR CHANGE

Competition Laws and

regulations

Strategy modifications

New technologies New equipment

Labor market shifts New processes

Business cycles Workforce composition

Social change Job restructuring

Compensation and

benefits

Labor surpluses and

shortages

Employee attitude

Identify forces of change in context of Xerox and

ASAE/ABB

CATEGORIES OF CHANGE

IDENTIFY THE DIMESIONS OF

CHANGE IN CASE OF XEROX,

ABB/ASEA

MODEL FOR PLANNED ORGANIZATIONAL

CHANGE

CHANGE PROCESS CONTRASTING

VIEWS

“Calm waters” metaphor

A description of traditional practices in and theories

about organizations that likens the organization to a

large ship making a predictable trip across a calm sea

and experiencing an occasional storm

“White-water rapids” metaphor

A description of the organization as a small raft

navigating a raging river

IS THERE ANY DIFFERENCE BETWEEN

XEROX & ASAE/ABB

LEVELS OF CHANGE

IDENTITY CHANGE

Eg. NESTLE

Baby Diet Powder Condensed milk; Chocolates; Milk; Maggi (ready to eat); Coco Butter

COORDINATION CHANGE Eg. TVS

91-92 (Red ); 91-95 Preparation Phase; Competing on quality building culture of Quality

CONTROL CHANGE: Prasoon Dutta

Redesigning of stores, Breaking and negotiating contracts, financial control through Debt

Discipline; Mgmt. Change permitting fresh thinking

Xerox Quality Policy

Leadership through Quality & Team Xerox

Xerox Business Architecture

Business Process Reengineering

Restr. Xerox 2000

ASAE Domestic Firm

ASAE Exporting firm

ABB

Multinational

PATH BY BERNEVIK

“Spearhead”

products, Choice

of International

Niches and

Dominance in

these Niche

What

is new

ASAE

Time

Forces of Change

Forces of Stability

Desired

state

Statusquo

CHANGE IN “CALM WATERS”

STABILITY CHANGE

UNFREEZE CHANGE RE-FREEZE

CHANG

E

RE-

FREEZE

•Power

•Facilitative

•Persuasiv

e

•Re-

educative

Strategie

s

•Social

•Cultural

•Psychological

•Organizational

•Individual Resistance•Fear of unknown

•Belief that change is not good

4 org

•Fear of loss

BA

RR

IE

RS

SOURCES OF

BARRIERS

•Fear of Survival

•Fear of Learning

Change successful

if,

FS > FL

TE

CH

NIQ

UE

S

•Reward alignment

•Burning bridges

•Evidence Stream

•Institutionalizing

Change

•Socializing

ACCOUNTING CHANGE MODEL

STRATEGIES FOR PLANNED CHANGE

CHANGE IN “WHITE-WATER

RAPIDS”

Change is constant in a dynamic environment

The only certainty is continuing uncertainty

Competitive advantages do not last

Managers must quickly and properly react to

unexpected events

Be alert to problems and opportunities

Become change agents in stimulating, implementing and

supporting change in the organization

IS THE CHAGE AND TRANSFORMATION IN CASE OF ASAE & ABB A

CASE OF CALM WATERS OR WHITE-WATER RAPIDS.

Refer Page 147 &148

CONTINUOUS CHANGE PROCESS MODEL OF

ORGANIZATION CHANGE

IS A NEW STRUCTURE REALLY

REQUIRED?

When you identify a problem

with your design, first look for

ways to fix it without

substantially altering it. If that

doesn’t work, you’ll have to

make fundamental changes

or even reject the design.

Here’s a step-by-step process

for resolving problems.

IS A NEW STRUCTURE REALLY REQUIRED?

(CONT’D)

STRATEGIC CHANGE IS A POLITICAL

PROCESS*

1. Establish urgency: Identify & discuss crises,

potential crises & opportunities

Page 175 1st Paragraph Xerox

Page 147 Last paragraph ABB

2. Form a guiding coalition: Assemble a

group with enough power to lead; Integrate the team

Happening at Xerox Leesburg Virginia center

Relationship b/w CEO & Board, VP- Marketing

(Percy’s Boys), also page 151.

3. Create a vision: A vision to direct the change

effort; Develop strategies to achieve that vision

Quality in case of Xerox

Page 149 in case of ABB

4. Communicate the vision: Use every

vehicle possible to communicate & engage; Teach new

behaviors by example

Team Xerox, Learning experiences (180),

documented process, MIOC (184)

Communication of strategic principles (149)

5. Empower others: Get rid of obstacles;

Change systems; Encourage risk-taking

6. Create short-term wins:Target rapid,

visible performance improvements

-

7. Consolidate improvements: Use

credibility from early wins to target areas that lag;

Develop and promote new leaders

-

8. Institutionalize New Approaches: Connect new attitudes and behaviors to results

; Develop generation that personifies changes

-

* Kotter HBR 1995