C H A N G E G R A D U AT E D I P L O M A I N M A N A G E M E N T - - PowerPoint PPT Presentation

M A N A G E M E N T F U N D A M E N TA L S C H A N G E

G R A D U AT E D I P L O M A I N M A N A G E M E N T

Page 344

Why should companies change?

Change is vital for the survival

From about 1993-1997, Apple found itself struggling to find a consistently profitable source of revenue, trying and failing to market everything from digital cameras to portable CD players to TV appliances

Instead of continuing to aimlessly follow marginal product ideas down the rabbit hole, Apple began to focus once more on creating beautiful consumer electronics, starting with the iMac in 1998. Apple also acquired several companies in the video editing and digital production space, which comprises much of its customer base. The iPod was an even bigger success, selling over 100 million units within six years of its 2001 launch according to the BBC. The iPhone, another smash hit, recently produced a 100% year-over-year rise in sales according to CNN Money. None of this would have been possible without a drastic change in business models.

ORGANIZATIONAL CHANGE

“Adoption of a a new w idea a or be behaviour viour by an an

• rganisation”

7/15/2016 GDM M 401 PB: HDM

Page 344

Factors driving organisational change

Factors driving change Internal External

FACTORS DRIVING ORGANISATIONAL CHANGE

• Internal

ernal Fact ctor

• rs

– New organisational strategy – Change in composition of workforce – New equipment – Changing employee attitudes

• Ex

Externa ernal l Fact ctor

• rs

– Changing consumer needs and wants – New government laws – Changing technology – Economic changes

Planned changes

 Product & Technology Changes – a change in the

• rganisation’s product outputs and organisation’s

production process

 People and culture related changes

Page 346

Product changes can occur in terms of innovation and renovation

M Benz now & then

Customers find a lot of innovative and renovated

• ffers in the automobile sector

In 1885 In 2017

Disruptive Product Innovation

Innovative products with major changes Xerox have launched a lot of products which were manufactured in Xerox India

Three Innovation Strategies

Designing the

• rganization to

encourage creativity and the initiation of new ideas within the

• rganization

Creating conditions and systems to facilitate internal and external coordination and knowledge sharing Processes and structures are put in place to ensure that new ideas are carried forward for acceptance and implementation Innovation roles

P353

Page 347-357

Creativity Bottom-up approach Internal contests Idea incubators

Behind every one of Nestlé’s products is a team of scientists, product developers, designers, nutritionists, consumer service representatives and regulatory affairs specialists. The diagram above shows some of the steps, where these experts are involved, from identifying the initial customer benefit to the product launch and on towards continuous

• improvement. Nestlé R&D projects are the first step in a pipeline of innovative nutrition

solutions for products of the future, across all our business categories

Nestle & R&D

From Nestle’s Website……

Three Innovation Strategies

P347-357

Innovation Roles

Creativity Bottom-up approach Internal contests Idea incubators

Exploration

People and Culture Changes

Employees Resistance to Change

 Self-Interest  Lack of Understanding and Trust  Different Assessments and Goals  Uncertainty

Direction of change

Driving forces Restraining forces Potential gains in revenue, cost reductions, higher market share, competitiveness, long- term survival Resistance from employees/managers, lack of resources, lack of skills, etc.

Force Field Theory - by Kurt Lewin

‘Kurt Lewin’ explained ‘change’ as a result of the competition between driving and restraining forces.

Force-Field Analysis

 Driving forces – problems or opportunities that

provide motivation for change

 Restraining forces – barriers to change

Tactics for Overcoming Resistance to Change

Two methods could be used to implement these changes:

• 1. Training and development
• 2. Organization development (OD)

People and Culture Changes

Unfreezing Systematic process to change people and culture within an organization Organization is considered as a solid ice cube Changing Refreezing

Organization Development

The End