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Management
Report
[Leading Organization]
Nationality : MYANMAR
Course : MBA
Term : 2016T4-NOVEMBER2016-FALL-M1-IPE-MBA-C5-LO
Status : ACTIVE
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The leadership is vital part of puzzle to organizational sustainable success. The right leadership
management strategy is required to lead the organization to its optimum GOAL or Vision.
It is not just about the making strategy only, the implementation of the change management
process is important too. The smooth change process leads to company success with balancing
between the people, environment, and culture impact on task.
Nintendo attempt to change the current executive management process to Executive Officer
System (Nintendo, 2016) in 2016 General Meeting, we need to carefully balance the strategy,
leadership style and change management process. In this report, I will discuss more about
All presented strategies will useful for creating the innovative and happy working organization
and will lead to company optimum Vision of change process.
The company mission is to put smiles on peoples face around the world through products and
services. The basic strategy is offering the product that can be enjoyed by everyone regardless of
age, gender or gaming experience. (Nintendo, 2016) As an entertainment company, Nintendo
need to follow up with the global trend and people desire, produced a lot of hardware and
software devices from NES (Nintendo Entertainment System) to Nintendo 3DS for maintaining
the company revenue.
The global changing process are not predictable now a day with technology advancement.
Nintendo always look for the improvement to catch up with rapid change of global business
enviroment. The company has adopted the Executive Officer System for purpose of clarifying
the responsisbility for the execution of operation and establishing a more flexible management
structure. (Nintendo, 2016) By introducing the EOS , Nintendo are looking for more
improvement in decision making, supervisory function and delegation of authority to execute
operations.
Executive Officer System will perform by the group of executive officer from the various
division of company. As a regional director, I will involve in EOS system and need to lead fellow
executive officer to get the most out of the system to achieve the purpose of change in east asia
region.
While Nintendo embraces this change, the leadership style will require to inline with change
process which require more strategy to implement within organization and culture to adapt well.
3. Background Of Change
As a living person in globalization process, we could not ignore the impact of technology
improvement and climate change. The people desire to try new things in every minutes and
willing to adapt the change. Nintendo was known for home and handheld entertainment
The rapid respond come from rapid decision making in time with the change. American
companies are famous for decision making in time with business process. Nintendo need to adapt
the fast decision making system to catch up with the world demand. Executive Officer System
(EOS) (Seki, 2005) was introduced by Sony in 1997 to improve the governance process in Japan
which was produce the better result in managing the organization.
Base on last financial statement 2016, company sales revenue was decrease by 8.2 % on a year
basic which is more decreasing than previous years 2015 (Nintendo Co., Ltd, 2016) .The loss of
sales revenue was mainly contributed by shifting of consumer preferences to other form of
entertainment. The global consumer interest on smart devices is increasing day by day and need
to adapt well to this change to gain back the sales revenue.
The nature of Nintendo products and services, it face the difficulty to develop, sell or launch the
product as original plan due to rapid change impact of technology improvement. There is the gap
that need to make flexible plan to change the process to match with future enviroment. The EOS
will bring the improvement on decision making process for rapid respond to the change.
Please see some example for force of change and resistance to change for better understanding of
change process in Nintendo company.
When we talk about the change in organization, we need to know the current saturation and
people behavior in organization. The change will never happen without committed human factor
in organization. The change initiate approach is play the big factor for whole process and need to
handle with care to get everyone involve.
I would like to approach the new change to Nintendo with the Lewins Three-Step Model for
faster respond from the people in organization.
Stage 1:
The communication is vital part to start the change process which will deliver the message to all
people in the organization. The announcement of the introducing of Executive Officer System to
company operation process will create the senses of change to every employee in the
organization. That might create the good and bad reaction in the organization and will face the
resistance from people who are comfortable with current system. We will try to educate them to
global mindset and explain the saturation of company for better understanding of change.
Stage 2:
After they aware of the system change, we need to ensure all employee to use the advantage of
the system to make a better respond decision from the management to align with environment
movement. I will implement the centralized communication system to share their knowledge and
awareness of global impact to company product via online portal. The encouragement to be done
for those actively contributes on the portal for better decision making about product or service by
Nintendo.
Stage 3:
Once the implementation of Executive Officer System is being accepted by organization, the last
step is to freeze the new culture in the organization. This is the crucial stage for the leadership
style to maintain the momentum of organization to sustain the success by providing the
I will discuss more about the leadership style which will apply on this change process in next
section.
5. Leadership Style
There is many type of leadership style in the business and political world which was successfully
implemented. The leadership is Situational appropriate action that directs or guides your group
to set and achieve goals.
There are three leadership styles that are considered to be among the "classic" styles used by
business leaders throughout the country. Each has its strengths and drawbacks - here are more
details on each of them: (Small Business Pro, 2016)
So there is no perfect leadership style to fit all saturation in organization. I would like to bring in
the Participative leadership style for Nintendo Company for this change. As I explained in
previous section about the participative leadership, Nintendo need people who can create the
future product or service to enjoy for consumer. I would like to build a team with the people who
like to take risk, initiative, open minded and detail person to bring the best opportunity from our
environment. We can only expect the good result when we have a motivated people around in
our organization. The clear communication channel will play a vital part in my team to get higher
performance in long term. I will make sure all my organization staffs are aware of my intention
to change and style of mine for better cooperation. I will tell them that I am not only care about
the outcome and tangible results but also their interest and emotion to sustain the change
direction and achieving of long term success. As Mike Green and Co said the leader need to
balance three key dimensions as below figure:
Organizational
Context Personal
Leadersh
ip
The following eight tactics (Stephen P.Robbins, 2016) will help us to overcome the resistance to
change:
2. Participation
8. Coercion
If there is a competition, there will have bias or conflict about chosen idea or product. We need to
carefully manage the conflict between team members to get better team performance. I will
discuss details about how to handle the conflict among team in section 8.
2) People discard their old ways of thinking and the standard routines they use for solving
problem or doing their job.
3) Member thinks of all organizational processes, activities, functions and interactions with
the environment as part of a system of interrelationships.
4) People openly communicate with each other (across vertical and horizontal boundaries)
without fear of criticism or punishment.
We could not stop here with just creating the learning organization. We need to manage their
learning process well to get what we aim to success for organization. We can manage their
learning paths as below:
1) Establish a Strategy
Management need to make sure its commitment to change, innovation and continuous
improvement.
The formal structure of Nintendo can be serious impediment to learning. Decentralize to minimal
cooperate structure by eliminate or combine department and increasing the use of cross-
functional teams reinforces interdependence and reduces boundaries.
To create a learning organization, the leader must demonstrate by their action by taking the risk
and admitting the failure are desirable. The management needs to encourage the functional
conflict and rewarding people who take chance and make failure.
Competitive
Two parties are concentrated on their own interests regardless of the impact on other in the
conflict. This is competing each other for getting something which is limited.
Collaborative
The collaborative conflict will use when either parties seeks to cooperate and search for mutually
beneficial outcome. The Win-Win solutions usually come out from collaborating.
Compromising
When the either parties are willingness to ration the object of conflict and accept a solution with
incomplete satisfaction, the compromising process is the best way to solve the conflict.
Accommodating
Accommodation is appropriate when the issues matter more to the other party, when peace is
more valuable than winning, or when you want to be in a position to collect on this favor you
gave. However people may not return favors, and overall this approach is unlikely to give the
best outcomes.
Avoiding
Avoiding can be done when one of the parties was identify the conflict existence and want to
withdraw from or suppress.
Once you understand the different styles, you can use them to think about the most appropriate
approach (or mixture of approaches) to the situation you are in. You can also think about your
own instinctive approach, and learn how you need to change this if necessary.
(Shankar, 2016)
9. Negotiations
In a successful negotiation, everyone wins. The objective should be agreement, not victory."
The key to successful negotiation is to shift the situation to a "win-win" even if it looks like a
"win-lose" situation. Almost all negotiations have at least some elements of win-win. Successful
negotiations often depend on finding the win-win aspects in any situation. Only shift to a win-
lose mode if all else fails. (Wertheim, 2016)
Negotiations are a vehicle of communication and stakeholder management. As such, they can
play a vital role in assisting policy-maker to obtain a better grasp of the complex issues, factor
and human dynamics behind important policy issues. (Alfredson, 2008) Zartman defines
negotiation as "a process of combining conflicting positions into a common position under a
decision rule of unanimity, a phenomenon in which the outcome is determined by the process."
Strategic leadership need to develop within organization for continuously change environment.
The change can be mark as success when we can gain market share, customer dependency or
self-driving working culture in organization.
Nintendos objective is to put smile on everyone face around the world we touch. The
organization with integrate by global minded person will only achieve our company objective.
The innovated employee will create the innovated product and service for future.
I am sure that you will be concern about how do I support in the company current change process
to Executive Office System (EOS) (Nintendo, 2016) with my report. I am strongly believed that
my presentation of change management theories and model will support EOS system to quickly
implement into current organization and will see the effectiveness of implementation process in
short term or long term business growth.
Thank You!
5) Alfredson, T., 2008. Negotiation Theory and Practice, Baltimore, Maryland, John
Hopkins University
7) Seki, T., 2005. Legal Reform and shareholder Activism by institutional investors in
Japan.