Prof.

Anil Kumar Singh &

Prof. Muqbil Burhan
ORGANISATIONAL CHANGE AND
TRANSFORMATION
ORGANISATIONAL CONTEXT
HORIZONTAL STR
ADAPTIVE
CULTURE
COLLOBORATIVE
STRATEGY
SHARED
INFORMATION
EMPOWERED
ROLES
STABLE ENVIRONMENT
(Mechanical System Paradigm)
TURBULANT ENVIRONMENT
(Natural System Paradigm)
Efficient Performance Learning Organisation
XEROX &
ABB??????
??
Page 178 Xerox/
Team
Xerox/Pag
e 149 ABB
Phase 1
defficiency
Xerox
Business
Architectur
e
Page
147, 158
ASAE/AB
B
Page
147
ASAE
&ABB
CHANGE?
Organizational Growth Organizational Ability to manage change.
Change is the only constant in contemporary context.

Any strategic Development will, of necessity, involve
managing some degree of change to structures,
Technologies, products, services, culture or
processes.

Barlett & Ghoshal, Managing across Borders, HBR
The levels of change have in many instances outpaced
the Human capability to cope-up with Change.

CAN WE QUANTIFY CHANGE???????


ORGANISATIONAL CHANGE
An alteration of an organizations environment,
structure, culture, technology, or people
NATURE
A constant force
An organizational reality
An opportunity or a threat

Change agent
A person who initiates and assumes the responsibility for
managing a change in an organization

CHANGE AGENTS IN CASE OF XEROX: Is it Fred Hewitt or
someone else
CHANGE AGENT IN CASE OF ASAE & ABB: ????????
HOW APPROACHES OF THESE TWO CHANGE AGENTS
DIFFER??????


STRATEGY-CHANGE
&TRANSFORMATION
Success can work against a company when
it looses touch with customers.
Radical changes may be only choice for
organization in desperate need of change.
XEROX & CUSTOMERS?
DESPERATION FOR ASEA?

FORCES FOR CHANGE
Competition Laws and
regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and
benefits
Labor surpluses and
shortages
Employee attitude
Identify forces of change in context of Xerox and
ASAE/ABB
CATEGORIES OF CHANGE
IDENTIFY THE DIMESIONS OF
CHANGE IN CASE OF XEROX,
ABB/ASEA
MODEL FOR PLANNED ORGANIZATIONAL
CHANGE
CHANGE PROCESS CONTRASTING
VIEWS
Calm waters metaphor
A description of traditional practices in and theories
about organizations that likens the organization to a
large ship making a predictable trip across a calm sea
and experiencing an occasional storm
White-water rapids metaphor
A description of the organization as a small raft
navigating a raging river

IS THERE ANY DIFFERENCE BETWEEN
XEROX & ASAE/ABB
LEVELS OF CHANGE
IDENTITY CHANGE
Eg. NESTLE
Baby Diet Powder Condensed milk; Chocolates;
Milk; Maggi (ready to eat); Coco Butter
COORDINATION CHANGE Eg. TVS
91-92 (Red ); 91-95 Preparation Phase;
Competing on quality building culture of Quality
CONTROL CHANGE: Prasoon Dutta
Redesigning of stores, Breaking and negotiating
contracts, financial control through Debt
Discipline; Mgmt. Change permitting fresh
thinking
Xerox
Quality
Policy
Leadership
through
Quality &
Team Xerox
Xerox
Business
Architecture
Business
Process
Reengineering
Restr. Xerox
2000
ASAE
Domestic
Firm
ASAE
Exporting firm
ABB
Multinational
PATH BY
BERNEVIK
Spearhead
products, Choice
of International
Niches and
Dominance in
these Niche
What
is new
ASAE
Time
Forces of Change
Forces of Stability
Desired
state
Status
quo
CHANGE IN CALM WATERS
STABILITY
CHANGE
UNFREEZE CHANGE RE-FREEZE
CHANG
E
RE-
FREEZE
Power
Facilitative
Persuasiv
e
Re-
educative
Strategie
s
Social
Cultural
Psychological
Organizational

Individual Resistance
Fear of unknown
Belief that change is not good
4 org
Fear of loss

B
A
R
R
I
E
R
S

SOURCES OF
BARRIERS
Fear of Survival
Fear of Learning
Change successful
if,
FS > FL
T
E
C
H
N
I
Q
U
E
S

Reward alignment
Burning bridges
Evidence Stream
Institutional Change
Socializing

STRATEGIES FOR PLANNED CHANGE
CHANGE IN WHITE-WATER
RAPIDS
Change is constant in a dynamic environment
The only certainty is continuing uncertainty
Competitive advantages do not last
Managers must quickly and properly react to
unexpected events
Be alert to problems and opportunities
Become change agents in stimulating, implementing and
supporting change in the organization
IS THE CHAGE AND TRANSFORMATION IN CASE OF ASAE & ABB A
CASE OF CALM WATERS OR WHITE-WATER RAPIDS.
Refer Page 147 &148
CONTINUOUS CHANGE PROCESS MODEL OF
ORGANIZATION CHANGE
IS A NEW STRUCTURE REALLY
REQUIRED?
When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If that
doesnt work, youll have to
make fundamental changes
or even reject the design.
Heres a step-by-step process
for resolving problems.
IS A NEW STRUCTURE REALLY REQUIRED?
(CONTD)
HOW STRUCTURAL CHANGE WAS MANAGED IN CASE OF XEROX AND
ABB
STRATEGIC CHANGE IS A POLITICAL
PROCESS*
1. Establish urgency: Identify & discuss crises,
potential crises & opportunities
Page 175 1
st
Paragraph Xerox
Page 147 Last paragraph ABB
2. Form a guiding coalition: Assemble a group
with enough power to lead; Integrate the team
Happening at Xerox Leesburg Virginia center
Relationship b/w CEO & Board, VP- Marketing (Percys
Boys), also page 151.
3. Create a vision: A vision to direct the change effort;
Develop strategies to achieve that vision
Quality in case of Xerox
Page 149 in case of ABB
4. Communicate the vision: Use every vehicle
possible to communicate & engage; Teach new behaviors by
example.
Team Xerox, Learning experiences (180), documented
process, MIOC (184)
Communication of strategic principles (149)
5. Empower others: Get rid of obstacles; Change
systems; Encourage risk-taking
In Xerox???
In ABB?????
6. Create short-term wins: Target rapid, visible
performance improvements
ABB: Page 148 and 149 what do you find
XEROX: Page 177 and 178
7. Consolidate improvements: Use credibility from
early wins to target areas that lag; Develop and promote new
leaders
Page 149: ABB
Pase 2 in case of Xerox
8. Institutionalize New Approaches: Connect
new attitudes and behaviors to results ; Develop generation
that personifies changes
Phase 3 in case of Xerox.
Stage 5: Is something visible.
* Kotter HBR 1995