Beruflich Dokumente
Kultur Dokumente
ON
STRATEGIC
CHANGE
MANAGEMENT
SUBMITTED BY
James Smith
TO
THE INTERNATIONAL COLLEGE OF BUSINESS STUDIES
IN
COURSE LECTURER
David Read
DATE: 29/09/2014
Abstract
This report is study of implementing Enterprise Resource Planning product in Corning India and the
strategic changes involved. We will be discussing the need and the factors driving the change along with
the resource implications of not responding to change. We will be mentioning the different models of
change and its relevance to the current economic situation. Strategy to involve stakeholders in the
change management planning and to deal with resistance will also be discussed. In the end of the report
we will be mentioning about change models and the implementation method in the organisation and
the measures to monitor the progress of change process.
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Table of Content
1. Introduction --------------------------------------------------------------------------------------------------- 4
2. Objective ------------------------------------------------------------------------------------------------------4
3. Need for strategic Change ----------------------------------------------------------------------------------5
3.1 Factors driving the need for change ----------------------------------------------------------------5
3.2 Resource implications of not responding to change --------------------------------------------5-6
4.
5.
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Introduction
Corning Incorporated is the world leader in specialty glass and ceramics. Cornings operations in India
are represented by Corning S.A.S India branch office. Corning India implemented Scala 5.1 ERP in year
2000.Now, the business operations of organisation has grown and so its complications. Corning hired
new staff and at technology end their requirements started growing, which are not fulfilled by the
Current ERP.As an ERP Consultant of Sonata Software Ltd.(From July 2007 to Aug 2010) , we did the
business process study and suggested corning India to go for a new ERP, which can fulfill their growing
business needs.
Implementing an ERP is always a strategic change process, and it involves all the stakeholders. In this
report, we have not only studied the needs for bringing change but have also studied the various
aspects of the processes which are involved in change management. We have suggested strategic plan
to involve the stakeholders and to handle the resistance .We also mentioned the implementation plan
and the measures to monitor the progress of the project.
Objective
The study of the Implementing Enterprise Resource Planning in Corning India, and the strategies
involved to handle this change management process.
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If the business head doesnt involve fully in the decision making, then the implementation
period will stretch and it will not be able to meet the deadlines and the go live period.
If the core team members of the implementation team are not fully dedicated then it will
become difficult for the external consultants to map the business processes on the system. It
may also result in some wrong map, which in turn will cause issues for the business after going
live.
If the end users dont take the proper training, then they will not be able to complete their daily
task on time without any issues. They may also enter wrong entries, which will further
complicate the business processes.
If the transactions are not entered by the end users properly then it will cause problem in the
month end closing process, resulting in late reporting.
Organisation will lose business because of late responses from the end users.
Organisation will face issues with the auditors, as it will become difficult and time consuming to
find solution for wrong transactions
Failure of implementation will cost a high capital loss to organisation
4. Models of strategic change
Kolbs Model of Individual Change
In 1984 Kolb published his learning styles model. Kolbs model of learning styles has four distinct
learning styles which are further based on four stage learning cycles also known as learning cycles.
Knowing a person's learning style allows learning to be orientated according to ones preferred method.
The brief description of Kolbs model is as follows:
Diverging (Feeling and watching): People with diverging styles are sensitive and they prefer to
watch rather than to do. They have broad cultural interests and tend to work in groups , to listen
with open mind and are usually imaginative and emotional.
Assimilating (watching and thinking): They are the people with logical approach and concise and
give more importance to ideas and concept than people. They are the one who excel at
understanding wide-ranging information and organizing it a clear logical format.
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Converging (doing and thinking) : these kind of people are interested in technical tasks than in people
and interpersonal aspects. They tend to solve issues based on their past experience and learning.
People with a Converging style like to experiment with new ideas, to simulate, and to work with
practical applications.
Accommodating (doing and feeling): these people dont work on logical analysis but believe on their
intuitions. They tend to rely on others information and then carry out their own analysis. They work
in teams and actively try out new ways to achieve the objective.
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Create urgency: To spark the initial motivation to get the change moving, urgency needs to
be created. This happens by identifying the potential threats and developing a future
scenario.
Form a powerful coalition: to lead a change, all the influential people, the team and the
management need to be convinced and a coalition is to be formed.
Create a vision for change: defining a clear vision helps people to understand the objective of
the change and it gives them motivation as they know what they are trying to achieve.
Communicate the vision: By communicating with the key person and every stakeholder of an
organisation honestly about the vision, a momentum is being created to achieve that Change.
Remove obstacles: if any structure or processes is becoming problem for the change then
define a strategy to remove those barriers. Clearing obstacles can empower the people who
are required to execute the vision of change.
Create short term wins: Short term targets need to be created, as success of achieving these
short targets will keep the team and people motivated to keep the momentum for the
required change.
Build on the change: Kotter argued that most of the change fails as success is declared too
early. With every success a new plan and strategy to be formulated to continue that success
and the area of improvements.
Anchor the changes in corporate culture: Continuous effort need to be ensured to keep the
change in every aspect of the organisation. The change should be brought in the corporate
culture and should often be discussed and talked about by the leaders in the organisation.
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Source: http://www.dudleyconsulting-inc.com/changemgtmodel.html
Tuckmans model of team change
Dr. Bruce Tuckman published his four stage model of team change in 1965.It consists of:
Forming: This is a stage where the whole responsibility of change lies on the leader, as individual
roles and responsibilities are unclear and team members are highly dependent on leader for
guidance and direction.
Storming: In a team decisions does not come easily in start. Every member seeks a position in team
with respect to other members and leader in order to avoid challenges later. This is very important
part of the processes as this defines and enables common understanding of purpose and roles to
be achieved.
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Source: http://www.infed.org/thinkers/tuckman.htm
Norming: During this phase agreement and consensus is largely formed among the team. Roles and
responsibilities are clear and accepted. The major decisions are taken by team discussions and
agreement.
Performing: This is the final stage of team development. The roles are clear now and team knows
clearly about the vision and the goal they are working upon. The team works in a collective and
mature manner to achieve the goal.
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Role playing: It is basically a contingency plan to prepare a group in absence of the superior or
the other team mates. Role playing is a prescribed way of behaving.
Team Development: It is regarded as the very foundation of developing work group maturity
and effectiveness. Setting goals, priorities and to examine the relationship between among the
people doing work are few of the objectives of team development.
Survey feedback: Nadler (1997) argued that recipients must see feedbacks as a stimulus for
action rather than final statement. Information should be gathered by personal interviews or
survey questionnaires and should be analyzed and be used effectively.
Inter group problem solving: Joint meetings should be held regularly to avoid inter group
conflicts. During such meetings members are allowed to speak and discuss freely and sort out
their differences.
Process Consultation: The process involved should be thoroughly discussed and consulted with
every party concerned with. It is generally done to end the conflicts among different teams and
people involved and to prepare them for the change.
Admin team
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Managing Director
The activities which need to be undertaken to involve these stake holders in planning change are:
Send formal invitation to all the top management involving all the business heads for
the meeting on the discussion of bringing strategic change in organisation.
Formal presentation to the major stakeholders on the needs and factors for bringing
the change in organisation.
Prepare the minutes of meeting and forward it to all the members, requesting for their
feedbacks.
Once feedbacks are received, plan a strategy resolve the issues raised and convince
them for the need of change.
A formal team needs to be formed and a change leader should be chosen to initiate the
change. The team should have members representing different business processes.
Leverage Strategies: This is generally applied to the early adopters with significant influence to
develop their support and utilize their influence to accelerate the change among the reluctant
majority.
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Engagement strategies: The focus is on the influencers of the reluctant majority and the goal is
to convert them to early adopters and is leverage their influence among those with less interest
and commitments
Containment strategies: These strategies are basically to target those resistant laggards who are
unable to adapt yet because of their high skills, knowledge and abilities they still contribute to
the change.
Outplacement Strategies: The virulent and influential resistant laggards are prime candidates for
outplacement. These stakeholders are given an early opportunity to demonstrate their
acceptance and compliance with the change process but, failing that, they face unambiguous
consequences.
5.2 Evaluation of the systems used to involve stakeholders in the planning of change
As we see, implementing an ERP involves the top management and also the end users, so a proper
strategy needs to be formed to involve everyone in the change process. Change process can initiate only
if the stakeholders are well communicated and educated about the necessities of bringing the change.
They should be well informed, educated and be engaged in the decision making. Their feedbacks should
always be taken in account, and all this can be possible only by devising a proper communication
strategy. Every stakeholder involved should always be kept in loop on the progress of the project.
Stakeholders should always be invited when a key decision need to be taken. Acceptance of their
feedbacks makes them feel motivated and engaged and then they become the part of the project.
Presentation to the stakeholders should always be given on the current and accurate information to
keep them updated and to avoid the thoughts by them of being neglected.
5.3 Strategy for managing resistance to change
Resistance to change is part of change process. It is something which can have both positive as well
negative impacts on the organisation. Kotter & Schlesinger (1979) explained the importance of strategy
to handle the resistance in the organisation. As per their theory, the principles are:
Education and Communication: By properly educating and communicating with the concerned stake
holders about the change, their misconceptions and confusions can be sorted out without which
they are full of questions and worries. People tend to accept the change once they become aware of
the change.
Participation and involvement: A strategy need to be devised to facilitate the participation and the
involvement of the stakeholders in the change process. This gives them motivation and sense of
involvement makes them feel part of the change to which they dont try to become a resistance.
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Negotiation and agreement: When an organisation goes for a strategic change, then lots of things
are at stake. And it becomes equally important to move towards change by forming an agreement
among all the members and the management through proper negotiations.
Facilitation and support: By facilitating and supporting the people who are initiating and managing
the change process, the motivation level of people are increased and boosts their confidence which
in turn becomes example for others as well to be a part of change and taking it forward.
To gain support of key decision makers and facilitators by educating them about the planned
change
Make a full detailed plan with schedules and stages of the change process, agreed by all the
business managers and the decision makers
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Train the staff and develop new skills which will contribute to the effective implementation of
plan
Balance scorecard: its a performance management approach that focus on various overall
performance indicators, often including customer perspective, internal-business processes,
learning and growth and financials, to monitor progress toward organization's strategic goals.
Benchmarking: It is basically looking outside the organisation to examine how others achieve
their performance level and to understand the processes involved. Benchmarking facilitate
improved performance within the organisation and the key business processes. The objective of
benchmarking is to ideally understand and evaluate the current position of a business in
relation to "best practice" and to identify areas and means of performance improvement.
Reviews and evaluations: By setting up model of weekly and monthly reviews of the process, to
keep an eye on the status of the progress. Evaluation will help to find out the weaknesses or the
strengths of the project.
180 and 360 degree feedback: By setting up this model of feedback for the individuals and the
team, management will be able to get the actual performance and efforts of each and every
resource involved with the project.
Setting up Milestones: Milestones of projects are generally set to keep a track on the progress
of the project.
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Conclusion
Bringing Strategic change in an organisation has to be a well planned process. The change can only be
successful if all the elements of the change process are considered which involves the stakeholders in
the planning process and also strategies to handle the resistance. A well thought and implementation
process should be evolved with proper measures to monitor the progress of the change process which is
ERP implementation here.
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