This is the html version of the file http://socsci.uwichill.edu.bb/online-courses/PE63B/12th%20week.ppt.
G o o g l e automatically generates html versions of documents as we crawl the web.

Google is not affiliated with the authors of this page nor responsible for its content.
These search terms have been highlighted:  incremental  change  vs  transformational  changes 

 

20/11/2001 

1 

MANAGING CHANGE 

Double click to add object

 

20/11/2001 

2 

GM POWERTRAIN

 

20/11/2001 

3 

VISION & OBJECTIVES 

Imagine that it's February 1996 and you are in Hinrichs' shoes just coming on the job.

What were his key objectives?

What are the contextual factors that motivate the changes in objectives?

What is the root of Hinrichs' motivation to implement changes?

 

20/11/2001 

4 

KEY OBJECTIVES 

Establish & succeed in new, independent role as plant manager

Continue to produce TCCs for on-time delivery

Manage the budget

Reduce costs of production

Get buy-in for change 

Ensure that the conversion to carbon fiber is successfully completed

Promote continuous improvement in the production process

Maintain flexibility for increasing number of SKUs

Manage labor relations 

 

20/11/2001 

5 

THE CHANGES IN THE OPERATIONS PROCESS 

What were the changes that were made?

Were these in tune with Hinrichs' objectives?

Were these the right changes?  Did he start in the right place?

Do these changes represent a big deal?  Why or why not?

 

20/11/2001 

6 

CHANGES MADE AT THE PLANT 

New bonding equipment

New assembly cells replacing old assembly line & earlier cells

Reassignment of jobs

Upgrading old machinery

QS certification

 

20/11/2001 

7 

HINRICHS AS A LEADER OF CHANGE 

What critical things has he done to make this work, thus far?

What was his change strategy?

What is your assessment of whether or not the changes are sustainable?

How much of his success would you attribute to his management skills?  His leadership skills?

 

20/11/2001 

8 

DAYTON STRIKE 

Hinrichs used the strike as a way to display his commitment to the workers.

Speech to the plant workers explaining what he was trying to do workers integral players in the future of the company  - built trust in him.

Generates involvement in the change process.

 

20/11/2001 

9 

FEBRUARY 1997: NEXT STEPS 

Vote on each of Hinrichs' options. 

What are the cost implications?

What are the labor implications?

What is the risk & uncertainty associated with each option?

Which option best supports continuous improvement in the future?

 

20/11/2001 

10 

UPDATE 

Faced with the broken press, Hinrichs took a modified Option 3.

People from outside did the repair

Outsourced the three process steps to another GM plant (during the time of the repair). 

New press more reliable & Hinrichs was able to install the new die & get it to work.

Hinrichs promoted in April 1997 to GM's Romulus Engine plant outside of Detroit as the Assistant Plant Manager of the 2000-person plant. 

Change slowed for a while (because his six direct reports were promoted to other positions in different plants around the same time he was promoted 6 months later, rate of change once again increased.

 

20/11/2001 

11 

CONCLUSION 

Given the environment, Hinrichs' success hinges on 2 issues: the technical viability of the system of changes he wishes to make, and the way in which he introduces and manages the change process.

The change model, the technology, & the organization have to be aligned.

 

20/11/2001 

12 

ALIGNING THE CHANGE MODEL, THE TECHNOLOGY & THE ORGANIZATION 

Change Model 

Organizational

Context 

Technology

 

20/11/2001 

13 

STRATEGIC CHANGE 

Double click to add object

 

20/11/2001 

14 

CHAPTER CONTENTS 

The changing world of word revisited

Resistance to change

Managers as change agents

Managing planned change

What can managers change?

Techniques for changing people

Contemporary issues in managing change

 

20/11/2001 

15 

DIFFERENT NAMES FOR EXTENT OF CHANGE REQUIRED 

1st order versus 2nd order

Incremental vs. innovative

Incremental vs. discontinuous change

Evolutionary vs. revolutionary

Operational/transformational

 

20/11/2001 

16

 

20/11/2001 

17

 

20/11/2001 

18 

CHALLENGE OF DISCONTINUOUS CHANGE

 

20/11/2001 

19 

THREE VARIANTS OF ERROR IN THIS INDUSTRY 

THE DECISION NOT TO0 INVEST IN THE NEW TECHNOLOGY

TO INVEST BUT PICKING THE WRONG TECHNOLOGY

CULTURAL (INABILITY TO PLAY 2 GAMES AT ONCE)

 

20/11/2001 

20 

A CONTRAST: HATTORI-SEIKO 

1960S -- DOMINANT JAPANESE WATCH PRODUCER -- SMALL PLAYER IN GLOBAL MARKETS

ASPIRATION:  A GLOBAL LEADER

CONDUCTED INTERNAL EXPERIMENTATION --  BOLD BET & BECAME BOTH A MECHANICAL & QUARTZ WATCH COMPANY

 

20/11/2001 

21 

EMPLOYMENT IN SWISS WATCH INDUSTRY

 

20/11/2001 

22 

REAL TEST OF LEADERSHIP 

TO BE ABLE TO COMPETE SUCCESSFULLY BY BOTH INCREASING THE ALIGNMENT OR FIT AMONG STRATEGY, STRUCTURE, CULTURE, AND PROCESSES, WHILE SIMULTANEOUSLY PREPARING FOR THE INEVITABLE REVOLUTIONS REQUIRED BY DISCONTINUOUS ENVIRONMENTAL CHANGE

 

20/11/2001 

23 

REVOLUTION 

EVOLUTION 

REAL TEST OF

LEADERSHIP:

MANAGE BOTH

 

20/11/2001 

24 

COMMON PATTERN OF EVOLUTION 

Periods of incremental change punctuated by discontinuous or revolutionary change

Long-term success marked by increasing alignment among strategy, structure, people & culture through incremental or evolutionary change punctuated by discontinuous or revolutionary change.

 

20/11/2001 

25 

ORGANIZATIONAL ECOLOGY 

MANY SIMILARITIES BETWEEN POPULATIONS OF INSECTS & ANIMALS & POPULATIONS OF ORGANIZATIONS

MODELS OF POPULATION ECOLOGY USED TO STUDY SETS OF ORGANIZATIONS (WINERIES, NEWSPAPERS, AUTOMOBILES, BIOTECH COMPANIES, RESTAURANTS)

 

20/11/2001 

26 

RESULTS OF STUDIES 

POPULATIONS OF ORGANIZATIONS ARE SUBJECT TO ECOLOGICAL PRESSURES

EVOLUTION OCCURS THROUGH PERIODS OF INCREMENTAL ADAPTATION PUNCTUATED BY DISCONTINUITIES

THOSE ORGANIZATIONS & INDIVIDUALS BEST ADAPTING TO A GIVEN MARKET OR COMPETITIVE ENVIRONMENT WILL PROSPER

CANNOT USE INCREMENTAL EVOLUTION FOR DISCONTINUITIES

 

20/11/2001 

27 

PUNCTUATED EQUILIBRIUM & ORGANIZATIONAL EVOLUTION 

Innovation

(Variation) 

Strategy 

Critical Tasks 

Culture 

People 

Formal

Organization 

Differentiation      Cost

   (Selection)      Retention

 

20/11/2001 

28 

SLOW EVOLUTIONARY CHANGE IN FAST CHANGING WORLD 

IS THE ROAD TO

 

20/11/2001 

29 

EXTINCTION

 

20/11/2001 

30 

TECHNOLOGY CYCLES & EVOLUTION 

Product

Innovation 

Process

Innovation 

Dominant  Substitution  Dominant 

Design #1     Event   Design #2

                                           Time   

Product

Innovation 

Process

Innovation 

Rate of Innovation

 

20/11/2001 

31 

THE SUCCESS SYNDROME 

SUCCESSFUL COMPANIES LEARN WHAT WORKS WELL & INCORPORATE THIS INTO THEIR OPERATIONS (ORGANIZATIONAL LEARNING)

STRESS THEREFORE IS ON ACHIEVING CONGRUENCE

BUT CONGRUENCE IS A TRAP

 

20/11/2001 

32 

The success syndrome 

Fit 

Success 

Size & Age 

Inertia

    * Structural

    * Cultural 

Success in

stable markets 

Failure when

markets shift

 

20/11/2001 

33 

PARADOX OF CULTURE 

IBM -- lost $14 billion between 1990-1993.  Why?

Culture major reason -- inward focus, stress upon consensus, arrogance, sense of entitlement for jobs

Culture product of success but also key to long-term failure

 

20/11/2001 

34 

AMBIDEXTROUS ORGANIZATIONS 

DILEMMA FACING MANAGERS

NEED AMBIDEXTROUS ORGANIZATIONS TO OVERCOME SUCCESS PARADOX 

 

20/11/2001 

35 

SUCCESSFUL ORGANIZATIONS 

Hewlett-Packard, Johnson & Johnson, & ABB

Each has been able to periodically renew itself & to produce streams of innovation

Commonalities?

 

20/11/2001 

36 

COMMONALITIES 

Organizational architecture -- reliance on small, autonomous units

Reliance on strong social controls (both tight & loose)

Ambidextrous managers

 

20/11/2001 

37 

ORGANIZATIONAL ARCHITECTURE 

Emphasis on autonomous groups

Retain benefits of size (especially marketing & manufacturing)

Decisions kept as close to the customer or technology as possible

Headquarters facilitates operations

 

20/11/2001 

38 

MULTIPLE CULTURES 

Reliance on strong social controls

Simultaneously tight & loose

Common overall culture promotes integration & encourages identification & sharing of information & resources.

 

20/11/2001 

39 

AMBIDEXTROUS MANAGERS 

Managing units pursuing widely different strategies & that have varied structure & cultures is a juggling act

3 companies successful

Relatively long tenure

Continual reinforcement of social control system 

 

20/11/2001 

40 

ANDY GROVE OF INTEL 

There is at least one point in the history of any company when

you have to change dramatically to rise to

the next performance

level.  Miss the moment and you start to decline. 

 

20/11/2001 

41 

CONTEMPORARY ISSUES IN MANAGING CHANGE: CULTURE

 

20/11/2001 

42 

LAST CLASS 

Good luck in finishing up the work

Please keep to the due dates. 

I have really enjoyed this class definitely my favorite out of the three I have taught