Strategic Change - Evolution


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Strategic Change - Evolution

  1. 1. Strategies for ChangeEvolutionEncourages a continuous learning environmentThe evolutionary model emphasises small incremental changes.It is a learning organisation with the capability of creating something new in a step bystep process.Change in general can cause confusion and can be resisted if the culture of theorganisation is familiar with incremental change only.The workers are not given enough opportunity to apply their learning‘all but incremental change is resisted’.(Pettigrew,1985)
  2. 2. What is Kaizen?The Key to Japans Competitive Success published in 1986 that introduced Kaizen to the western corporateworld, Masaaki Imai defined it as: "a means of continuing improvement in personal life, home life, social life, andworking life. At the workplace, Kaizen means continuing improvement involving everyone—managers andworkers alike. The Kaizen business strategy involves everyone in an organization working together to makeimprovements without large capital investments."Masaaki Imai(1986)
  3. 3. The Evolutionary Change Process• The firm is the starting point• Evolution is a constant stream process of gradual changes• It is a metamorphosis of long-term organisational learning• Learning is a slow process which can be new skills, processes, experiment, test and discuss• Organisational learning power is dispersed• Management recognise that the firm has to continuously learn and adapt• Management do not have the absolute power to impose dramatic revolutionary change but must continue with the evolutionary change process
  4. 4. KaizenKaizen is a system that involves every employee - fromupper management to the cleaning crew. Everyone isencouraged to come up with small improvementsuggestions on a regular basis. This is not a once amonth or once a year activity. It is continuous. Japanesecompanies, such as Toyota and Canon, a total of 60 to 70suggestions per employee per year are written down,shared and implemented.
  5. 5. Perspectives On Strategic Change• Evolutionary change is necessary to ensure continuity in the renewal process• Gradual mutation and selection• Continuous renewal is a marathon and not won by good sprinters• Continuous renewal in a long-term approach• Requires commitment from motivated employees willing to learn and adapt to gradual change
  6. 6. What are the Kaizen Principles• Human resources are a companys most important asset• Processes must evolve by gradual improvement rather than by radical change• Improvement must be based on a quantitative evaluation of the performance of different processes. It is aimed at management
  7. 7. Kaizen 5S’s• The Five Ss relate to the visual workplace• Sort – Clean up and organise and throw away items not required• Set in order: Organise, identify and arrange everything in a work area• Shine- Regular cleaning and maintenance• Standardise- Make it easy to maintain - simplify and standardise• Sustain -Maintain what has been accomplished
  8. 8. Canon Technology Office Products Market Share in 2011Source: Gartner Dataquest (February 2012)Technological LeadershipCanons overwhelming success is attributed to superior technology, the result of an unprecedented commitment to research and development. In 2011, Canon devoted approximately 8.7% of its Net Sales to R&DThis spending exceeds many of their key competitors and ensures that research and development efforts continue to grow.Innovation has been a key ingredient in Canons success.Canon is one of the most prolific inventors of consumer and professional imaging solutions having in excess of 40,000 U.S. patentsin its 70-year history. In 2011, Canon ranked third in the country for receiving patents in the private sector, with 2,818 patents granted according to theU.S. Patent and Trademark Office.
  9. 9. Management & Kaizen• Kaizen Event” where managers and employees work together to fine-tune and revise the current standards. Once a more efficient and superior system is achieved, it is then standardized and integrated into current policies, rules, and Standard Operating Procedures (SOPs).• When you implement Kaizen into the workplace, you should aspire to make changes to your current operating standards by breaking down each process in detail, monitoring the results, and then making adjustments accordingly (“If it ain’t broke, Do fix it”).• Your management team should ensure that the current SOPs are being followed. Management must “go and see” operations, or MBWA (management by walking around), in order to achieve efficient operations and take corrective actions when required. That is the only way they can fully understand their current business climate and make educated adjustments.
  10. 10. Advantages of KaizenThese continual small improvements add up to major benefits. They result in improved productivity, improved quality, better safety, faster delivery, lower costs, and greater customer satisfaction. On top of these benefits to the company, employees working in Kaizen-based companies generally find work to be easier and more enjoyable—resulting in higher employee moral and job satisfaction, and lower turn-over.With every employee looking for ways to make improvements, you can expect results such as:• Kaizen Reduces Waste in areas such as inventory, waiting times, transportation, worker motion, employee skills, over production, excess quality and in processes.• Kaizen Improves space utilization, product quality, use of capital, communications, production capacity and employee retention.• Kaizen Provides immediate results. Instead of focusing on large, capital intensive improvements, Kaizen focuses on creative investments that continually solve large numbers of small problems. Large, capital projects and major changes will still be needed, and Kaizen will also improve the capital projects process, but the real power of Kaizen is in the on-going process of continually making small improvements that improve processes and reduce waste.
  11. 11. Kaizen(Continuous Improvement)
  12. 12. KaizenPatterns• Human Effort• Material• Machine• Scientific Method Based
  13. 13. Imai also points out that improvements must be standardized
  14. 14. Kanban Video Clip
  15. 15. Kaizen managing is related to cross-functional management and policydeployment. Cross-functional management emphasizes breaking inter-departmental communication barriers.(Imai,1986)
  16. 16. Kaizen Culture• Culture means constant efforts to improve industrial relations• Training workers and developing leaders among the workers• Bringing discipline to the workshop