Organizational Change Project: Company Zzz

Organizational Change Project

Company ZZZ

Presented by

Team ____ Name #1 Name #3 Name #5

Name #2 Name #4 Name #6

Background on Company ZZZ

 Manufacturer of machines & complex sub-assemblies  Two plants-Location #1 & Location #2  Employs 135 people  Privately held company since 1978

Nature of the Change New Organizational Culture & Structure 

Establish First-Class Selling Culture   



Outward focus on customers, suppliers, & community Differentiation in marketplace Establish OSGM (Objective, Goal, Strategy, Measurement ) Process

Adopt new manufacturing Philosophy based on Lean Principles A. Eliminate waste B. Implementation of appropriate technologies



Develop positive cultural norms

Reasons for Change Current organizational structure is ineffective in the marketplace  Slow growth in sales & marketing  Heavy reliance on existing customers  Weak customer relationships  Inadequate pricing strategies  Poor benchmarking of competitors  Negative attitude toward customers  Low accountability, blaming & finger pointing  Narrow job scopes

Reasons for Change   

Failure to integrate First-Class Selling strategies into Company ZZZ culture Stagnation of teams in conflict stage of development Lack of standardization A. Project Management B. Performance evaluations C. Goal setting

 

Inconsistent direction from senior management High turn-over & unhappy employees

Reasons for Change

 High manufacturing costs  Poor on-time delivery record  Inflexible employee attitudes  Inadequate/ineffective technology systems

Change Measurements      

Revenue & growth earnings ROA & ROI increases Addition of new customers Projects completed on time, at cost, to specification First-Class Selling process integration measures Reduction in costs A. Manufacturing B. Inventory C. Space requirements



Achieve level 5 scores for 17 initiatives in the World Class Manufacturing Matrix

Expected Reactions to the Change & Underlying Causes Relevant Stakeholders  Shareholders  Senior Leadership  Project Leaders  Purchasing Leaders  Administrative Support  Operational Team Leaders & Back-ups

Expected Reactions to the Change & Underlying Causes Shareholders Expect little to no reaction to change

Why:  Two elderly brothers, co-owners with CEO  Both financially secure  Inactive participation in company since 1978  Failing health

Expected Reactions to the Change & Underlying Causes Senior Leadership Expect high unified support for change Why:  Aligned in beliefs about company  Agree about need for change  High motivation to work together  High level of acceptance for change & job satisfaction  Ability to set norms, lead, & resolve conflict

Expected Reactions to the Change & Underlying Causes Project Leaders Expect high resistance to change Why:  Change in project management methods  Shift of power away from Project Leaders  Lower levels of acceptance for change & job satisfaction  Reluctance to ask for help

Expected Reactions to the Change & Underlying Causes Purchasing Leaders Expect some resistance to change Why:  Overwhelmed by current workload  Lack of trust & support  Low job satisfaction levels  Inability to resolve conflict

Expected Reactions to the Change & Underlying Causes Administrative Support Expect range of resistance & support to change Why:  Scores indicate low to high levels of resistance to change  Poor integration into customer teams

Action Items Develop Support & Reduce Resistance to the Change Overview of Steps 







Development of effective cross functional customer focused teams-First-Class Selling Culture Transition to Lean Principles manufacturing philosophy Development of effective shop teams and team leaders Development of new cultural norms

Action Items Develop Support & Reduce Resistance to the Change Action Items Step I 

Create two independent teams consisting of A. Project Leaders & Purchasing Leaders B. AST’s & Shop Team Leaders

Expected results: 



Allows for shared problem solving &stops disciplines from blaming each other

Physically co-locate new team members Expected results: 

Enables better communication

Action Items Develop Support & Reduce Resistance to the Change  Scorecard evaluations by customers Expected results:  Focus on the customer

 Performance ratings based on team accomplishments Expected results:

 Promotes team participation & shared responsibility  Shifts blame away individual

Action Items Develop Support & Reduce Resistance to the Change  Sharing of resources & workload Expected results:  Assistance from others eases workload-conservation of resources

 Prioritize work by team members Expected results:  Effective planning reduces waste

Action Items Develop Support & Reduce Resistance to the Change  Utilize OSGM tool Expected results:  Assistance from senior management  Establishes long & short term customer goals

 Conduct conflict assessment & personality assessment for all employees Expected results:  Teaches individuals about personality types & effective strategies to cope

Action Items Develop Support & Reduce Resistance to the Change  Training for conflict management Expected results:

 Increased productivity  Allows for risk taking  Increases communication and problem solving  Eases tensions & hard feelings  Promotes a happier work environment

 Training to enhance team building skills Expected results:

 Allows for effective teams  Teaches strategies

Action Items Develop Support & Reduce Resistance to the Change  Implement incentive strategies to keep teams evolving Expected results:

 Creates motivation to perform

 Establish & review core values Expected results:  Maintains healthy corporate culture

Action Items Develop Support & Reduce Resistance to the Change Action Items Step II  Implement Lean Principles Philosophy  Provide formal training through community college or on-site Expected results:  Demonstrates management’s commitment to philosophy  Teaches application of philosophy

Action Items Develop Support & Reduce Resistance to the Change  Demonstrate Lean Principles effectiveness through pilot project Expected results:  Allows employees hands-on training  Promotes team building through simple tasks

 Celebrate success of pilot project with a special event shared by all employees Expected results:  Promotes positive rewards & recognition

Action Items Develop Support & Reduce Resistance to the Change  Evaluate progress consistently: management to provide proper tools Expected results:  Allows team support and flexibility to achieve goals

Repeat process again with new customer projects Expected results:  Builds consensus through success

Action Items Develop Support & Reduce Resistance to the Change

 Encourage champions of the process to persuade others Expected results:  Builds consensus in company philosophy & culture

Action Items Develop Support & Reduce Resistance to the Change Action Items Step III  Development of effective shop teams & team leaders Expected results:  Increased productivity  Maintain costs  On-time deliveries

 Provide training for team development skills & supervisory skills Expected results:  Empowers shop team leaders to build effective teams  Provides shop team leaders with usable skills

Action Items Develop Support & Reduce Resistance to the Change  Identify specific tasks to be performed daily & meet to discuss outcomes Expected results:  Allows for organization, prioritization, & direction  Shared knowledge increases productivity

 Train back-up team leaders Expected results:  Allows for greater flexibility of employees  Shared responsibility & increased support

Action Items Develop Support & Reduce Resistance to the Change Action Items Step IV

Development of new cultural norms Expected results:

 Aligned values  Shared goals

 Creation of company softball team or bowling league Expected results:

 Promotes a social environment for interaction  Enables employees to better know each other outside the context of work  Develops camaraderie among employees

Action Items Develop Support & Reduce Resistance to the Change  Develop monthly employee recognition awards & offer public praise Expected results:

 Gives employees recognition and a sense of pride  Promotes friendly competition  Gives incentives to perform

 Assemble an advisory board Expected results:

 Offers objective observations to management & guards against group think

Expected Impact of Action Items Why will our plan work?  Development & Implementation of First-Class Selling, Lean Manufacturing & OGSM  Provides strong foundation  Clear roadmap  Effective & quantitative measurement

Development of Independent Teams  Shared problem solving  Customer satisfaction performance ratings  Development of strong teams

Expected Impact of Action Items  Implement Training  Knowledge is power  Skills to mitigate conflict, change, team building

Conduct Personality Assessments  Gain understanding of different personalities & attitudes  Allows Management in intervene where resistance is indicated

Develop Positive Cultural Norms  Promotes achievement  Gives recognition to employees  Creates happier fulfilled workers

Company ZZZ & EMBA Team _____

Agents of Change