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GI Net 10 - Ensuring Sustainability in Organizational Transformation

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Materials presented during the 10th GI Net: "Ensuring Sustainability in Organizational Transformation" on May 07, 2013, by Prof. Dr. Hora Tjitra, Director of Tjitra & associates (www.tjitra.com) & …

Materials presented during the 10th GI Net: "Ensuring Sustainability in Organizational Transformation" on May 07, 2013, by Prof. Dr. Hora Tjitra, Director of Tjitra & associates (www.tjitra.com) & Associate Professor for Applied Psychology at Zhejiang University

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  • 1. Media Partner : Ensuring Sustainability in Organizational Transformation 10th roundtable discussion of Global Indonesian Network Prof.Dr.Hora Tjitra, Executive Director of Tjitra&associates Tuesday May 7th 2013
  • 2. Ensuring Sustainability in Organizational Transformation / May 2013 Agenda 2 1 Change is Business Survival 2 Research Methodology and International Best Practices 3 Strategic Planing:Transformational Framework
  • 3. ! CHANGE  IS  BUSINESS  SURVIVAL
  • 4. Ensuring Sustainability in Organizational Transformation / May 2013 4 The  Challenge  of  Sustaining  Pro?itable  Growth
  • 5. Ensuring Sustainability in Organizational Transformation / May 2013 4 The  Challenge  of  Sustaining  Pro?itable  Growth Having one good year is easy ... In any given year 40% of 25.000 companies studied grew sales faster than GNP and profit faster than sales. ...But achieving continued profitable growth is the rare exception: 93% of the same companies failed to do so over 8 years.
  • 6. Ensuring Sustainability in Organizational Transformation / May 2013 5 Doing  Business  the  Right  Way  is  about  Managing  Change
  • 7. Ensuring Sustainability in Organizational Transformation / May 2013 5 Doing  Business  the  Right  Way  is  about  Managing  Change Main Purposes of Doing Business Growth: Sales & Market Share Profit: Cost & Efficiency
  • 8. Ensuring Sustainability in Organizational Transformation / May 2013 5 Doing  Business  the  Right  Way  is  about  Managing  Change Main Purposes of Doing Business Growth: Sales & Market Share Profit: Cost & Efficiency Internal and/or External Driven Change Strategy Product Technology Regulation Globalization Competition
  • 9. Ensuring Sustainability in Organizational Transformation / May 2013 Types  of  Organizational  Change 6
  • 10. Ensuring Sustainability in Organizational Transformation / May 2013 Types  of  Organizational  Change Culture/People Strategy Structure Technology Products SOURCE:Based on Harold J.Leavitt,“Applied Organizational Change in Industry: Structural,Technical,and Human Approaches,”In New Perspectives in Organization Research,ed.W.W.Cooper,H.J.Leavitt,and Shelly II (NewYork:Wiley,1964),55-74. 6
  • 11. Ensuring Sustainability in Organizational Transformation / May 2013 Picking  the  Right  Transition  Strategy:  The  STARS  Framework 7 Source: Based on Michael D.Watkins,Picking the rightTransition Strategy (Harvard Business Review,Jan.2009).
  • 12. Ensuring Sustainability in Organizational Transformation / May 2013 Picking  the  Right  Transition  Strategy:  The  STARS  Framework 7 STARS Framework is a model for assessing business situations and helping new leaders figure out how to tailor their strategies and themselves accordingly. Source: Based on Michael D.Watkins,Picking the rightTransition Strategy (Harvard Business Review,Jan.2009).
  • 13. Ensuring Sustainability in Organizational Transformation / May 2013 Picking  the  Right  Transition  Strategy:  The  STARS  Framework 7 STARS Framework SStart-Up Assembling the capabilities to get a new business or initiative off the ground T Turnaround Saving a business or initiative widely acknowledged to be in serious trouble AAccelerated Growth Managing a rapidly expanding business RRealignment Reenergizing a previously successful organization that now faces problems S Sustaining Success Coming in on the heels of a highly regraded leader with a stellar record of accomplishment STARS Framework is a model for assessing business situations and helping new leaders figure out how to tailor their strategies and themselves accordingly. Source: Based on Michael D.Watkins,Picking the rightTransition Strategy (Harvard Business Review,Jan.2009).
  • 14. ! RESEARCH  METHODOLOGY
  • 15. Ensuring Sustainability in Organizational Transformation / May 2013 “Global”  Research  Approach  in  Six  Countries Global Change Alliance (GCA) • All consultancies of the GCA work on the basis of a Senior Expert structure of consultants • All in all the GCA-platform comprises about 125 people • Our work is based on the congruence model of organizational change (developed in the USA) • Our partners are: - C4 Consulting, Germany (Duesseldorf) - Ascend Partners, France (Paris) - Comma Consulting, Great Britain (London) - Veritas Partners, LLC, USA (New York) - Tjitra&associates, China (Shanghai) • www.globalchangealliance.com Zhejiang University Hangzhou, China Atma Jaya Catholic University Jakarta, Indonesia Columbia University New York, USA Tjitra Management Consulting Hong Kong ■ Shanghai ■ Jakarta ■ Hangzhou 9
  • 16. Ensuring Sustainability in Organizational Transformation / May 2013 Data  Analysis  Approach  :  Grounded  Theory 10 What & Why Grounded Theory is a disciplined set of practices to ... • Explore a new domain or topic • Keep an open mind while conducting a rigorous analysis • Work in an area without a defining theory • Applicable to qualitative or quantitative data Strengths • Theory is strongly ties to data (“grounded”) • Theory is continually tested through constant comparison • Data-collection is guided by theoretical sampling • Highlights the agency and responsibility of the researchers
  • 17. Ensuring Sustainability in Organizational Transformation / May 2013 International  Best  Practices 11 • One Team,One Voice Strategy realignment for an international joint venture in high-tech engineering industry • Org 2010 Global strategic change and reorganization of a leading European manufacturing company • Increase Competitiveness by Enhancing BU Strategy Reorganization of an European-Chinese joint venture in high-tech engineering industry • Be Ready for Next China“Aufschwung 2013” Organizational development strategy setting up and implementation for a leading European machinery company • Sustain Business Success Strategic Realignment for an international joint venture in manufacturing industry • ...
  • 18. ! STRATEGIC  PLANNING
  • 19. Ensuring Sustainability in Organizational Transformation / May 2013 Change  Framework  I:  Strategic  Planning 13 Stages of Change (WHY and WHAT) Change Leadership (HOW and WHO) Get the Buy-In from the Top Strategic Planning Sustainable System One Team One Voice Bergaul Leadership Tools Passionate Learning
  • 20. Ensuring Sustainability in Organizational Transformation / May 2013 STRATEGIC  Framework  of  Organizational  Transformation 14 Vision Strategy New Company Reality Organizational Structure Process & System Information & Communication Culture • Organization Structure • Organizational Interface • Reporting Line • Communication line • Feedback / Dialog • Conflict solution • IT system • Controlling • Workflow and Process • Corporate culture • Mindset People • Qualification • Role Understanding • Willingness Developed based on the concept from Nadler,D.A.andTushman,M.L.,Competing by design: The power of organizational architecture.NewYork: Oxford University Press,1997
  • 21. Ensuring Sustainability in Organizational Transformation / May 2013 Creating  Competitive  Advantage  by  Organizational  Design 15 Strategic Approach Operational Approach • Combine top-down and bottom-up approaches • Basic forms of strategic grouping Activity • Function • Work process • Knowledge/skill/discipline • Time Output • Product • Service • Project User/ Customer • Market segment • User/Customer need • Geography Multi-focused organization • Any combination of Activity/Output/User
  • 22. Ensuring Sustainability in Organizational Transformation / May 2013 Creating  Competitive  Advantage  by  Organizational  Design 15 Strategic Approach Operational Approach • Combine top-down and bottom-up approaches • Basic forms of strategic grouping Activity • Function • Work process • Knowledge/skill/discipline • Time Output • Product • Service • Project User/ Customer • Market segment • User/Customer need • Geography Multi-focused organization • Any combination of Activity/Output/User
  • 23. Ensuring Sustainability in Organizational Transformation / May 2013 Good  Organizational  Design   Includes  Clear  Understanding  about  All  Levels 16 LEVEL TECHNICAL SKILL LEADERSHIP CAPABILITY INDICATOR OF SUCCESS Head of Department Business Recommendation People Responsibility Business Impact + Results Head of Section Technical Design Technical Responsibility Technical Impact + Effectiveness Head of Unit Technical Coordination Task Responsibility Task Impact + Efficiency Staff Task Execution Personal Responsibility Personal ContributionManaging Self Managing Team Managing Function Managing Business Managing Corporation BEST PRACTICE
  • 24. Ensuring Sustainability in Organizational Transformation / May 2013 Transformation  from  Functional-­‐Oriented  Organization   to  Strategic  Business  Units 17 BEST PRACTICE Product Division 1 into SBU 1 Product Division 2 into SBU 2 Product Division 3 into SBU 3 Product Division 4 into SBU 4 Product Division 5 into SBU 5 ... Business Unit Manager Business Partner of Central Function A Business Partner of Central Function B Sub-Product Manager A Sub-Product Manager B Sub-Product Manager C Cross-Functional Joint-Forces in Strategic Business Unit
  • 25. Ensuring Sustainability in Organizational Transformation / May 2013 SUPPORTIVE  Process  and  System 18 Workflow and Process IT Infrastructure Learning and Development Reward and Punishment Consistent KPI Portfolio Balancing Strategic Planning Risk Controlling Controlling System MBO and KPI System
  • 26. Ensuring Sustainability in Organizational Transformation / May 2013 CLEAR  and  TRANSPARENT  Information  and  Communication 19 Communication in WorkCommunication about Change Communication Platform • Multiple Platforms • Feedback Mechanism • External Intervention Communication Style • Open Communication (based on aligned goal) • Solution-Driven Communication • Ensure Message Understood Communication Content • Clear and Detailed Content • Adjusted Content for Different Levels Information Flow Transparent Process Clear Principle Data Explanation Communication Approach • Clear Communication • Ensure Common Understanding • Communicate to Bottom Level
  • 27. Ensuring Sustainability in Organizational Transformation / May 2013 Managing  People  Behavioral  Performance 20 Creates the foundation for employees’ Motivation facilitates the enhancement of employees’ Ability clarifies the role and responsibilities for employees’ Perception sets up the right Situational Factors for employees to perform Performance Enhancement Business Results changed Individual Behavior and Results of employees Individual Differences Values Personality Perceptions Emotions Attitudes Stress
  • 28. Ensuring Sustainability in Organizational Transformation / May 2013 Develop  QUALIFIED  People: Role  clari?ication  based  on  organizational  structure  and  job  description 21 • Proactive • In-depth Understanding of the Business. • Bring-in functional (technical) expertise to business solutions. • Ownership • Highly Involvement in Daily Business Activities • Final Performance is the Business Results. • Strategic • Long-term perspective from market to product. • Get the big picture and Balancing the trade-off. Planning Leading Resources Controlling Organizing Performance • Human • Financial • Raw Materials • Technological • Information • Attain goals • Products • Services • Efficiency • Effectiveness Use influence to motivate employees Select goals and ways to attain them Assign responsibility for task accomplishment Monitor activities and make corrections Daft, 2003 From Specialist (Function & Business Unit) to Generalist BEST PRACTICE
  • 29. Ensuring Sustainability in Organizational Transformation / May 2013 Develop  QUALIFIED  People: Competence  enhancement  by  assessment  and  development 22 BEST PRACTICE Assessment 1             Feedback & Development Plan Assessment result feedback and discussion Development plan draft and finalization 2             Intervention & Review 3             Team learning Mentoring Coaching Training Half-year review workshop Annual review workshop Identify core competence Design assessment format and tools Conduct assessment
  • 30. Ensuring Sustainability in Organizational Transformation / May 2013 RIGHT  Mindset  and  Way  of  Doing  Things 23 Corporate Culture Individual Values Behavior Corporate Values Values,Behavior and Corporate Culture
  • 31. Ensuring Sustainability in Organizational Transformation / May 2013 Corporate  Core  Value  Implementation  Process  and  Method 24 Action What do we need? Possible barriers Success measurements Develop clear action plan Explore necessary and possible resources Identify possible barriers Define measurement anchors Value Implementation • An effective corporate communication is key factor to implement the core value.The management should: Value implementation process Value implementation method • Core value is the essential and enduring tenets of and organization.It is as natural as you breath. • People learn and behave the corporate value through different steps. Start Finish Understand the corporate value system Memorize the value statement and behavioral anchors Agree and support the corporate value Behave following corporate value Breath with corporate value Live Do Believe Remember Know BEST PRACTICE
  • 32. Thank You visit us at http://globalindonesian.net Contact  Us  at: Hong Kong: 31/F,Tower One,Times Square 1 Matheson Street,Causeway Bay,HONG KONG 香港銅鑼灣勿地臣街 1 號時代廣場一座31樓 Phone +852 2824 8521 Fax +852 2107 3699 Hangzhou: Suite 810,Guangyin Plaza, 42 East Fengqi Rd., Hangzhou 310010 P.R.CHINA 中国浙江省杭州市凤起东路42号广茵大厦810 Phone + 86 571 8763 1203 Fax + 86 571 8763 1210 Jakarta: Menara BCA 50th Floor,Jl.MH.Thamrin No.1 Jakarta 10310,INDONESIA Phone + 62 21 2358 4616 Fax + 62 21 2358 4401 Shanghai: 1F, No.1388 Shan Xi North Road, Putuo District,  Shanghai, 200060,P.R.China 中国上海市普陀区陕西北路1388号一楼 Phone +86 21 6149 8264 Fax +86 21 6149 8001 Contact Person: Stacey Octaviani Phone + 62 21 2358 4616 Fax + 62 21 2358 4401 Email:s.octaviani@tjitra.com
  • 33. Thank You visit us at http://globalindonesian.net Contact  Us  at: Hong Kong: 31/F,Tower One,Times Square 1 Matheson Street,Causeway Bay,HONG KONG 香港銅鑼灣勿地臣街 1 號時代廣場一座31樓 Phone +852 2824 8521 Fax +852 2107 3699 Hangzhou: Suite 810,Guangyin Plaza, 42 East Fengqi Rd., Hangzhou 310010 P.R.CHINA 中国浙江省杭州市凤起东路42号广茵大厦810 Phone + 86 571 8763 1203 Fax + 86 571 8763 1210 Jakarta: Menara BCA 50th Floor,Jl.MH.Thamrin No.1 Jakarta 10310,INDONESIA Phone + 62 21 2358 4616 Fax + 62 21 2358 4401 Shanghai: 1F, No.1388 Shan Xi North Road, Putuo District,  Shanghai, 200060,P.R.China 中国上海市普陀区陕西北路1388号一楼 Phone +86 21 6149 8264 Fax +86 21 6149 8001 Contact Person: Stacey Octaviani Phone + 62 21 2358 4616 Fax + 62 21 2358 4401 Email:s.octaviani@tjitra.com