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