Andy chew at Siemens Nixdorf

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Andy chew at Siemens Nixdorf

  1. 1. Group B Sreevidya, Darshan, Rohit, Manas and Abhishek
  2. 2. We’ll Discuss..  SNI  The organization and the crisis  How should SNI be transformed  The suggested framework  How change is initiated  Schulmeyer and Andy Chew  What actions Andy Chew took  Gaps in the actions taken  More analysis  Challenges ahead
  3. 3. By Sreevidya
  4. 4. Siemens Nixdorf Informationsysteme AG  Formed in 1990 by the merger of  Nixdorf Computer AG and  Siemens Data Information Services (DIS) division  Business of SNI  Service, Solutions(SAP/R3), Product  Products from SNI  PC, mainframes, s/w & support services  Largest IT company in Europe once  Split in the late 1990s however  Fujitsu Siemens Computers and Wincor Nixdorf
  5. 5. SNI Facing Crisis – Losses Continue  Losses ever since merger 1000 900 Sales (M dm)  Sales stagnent 800 700 Capital Spent  1994 600 500 (M dm)  $8 billion revenue 400 300 Employees (,000)  39000 people 200 100 Loss (M dm)  $350 million Net Loss 0 90-91 91-92 92-93 93-94  Problems diagnosed: M dm : Million German Marks  Slow to adapt to market realities  Sluggish customer responsiveness  High competition  Nimble entrepreneurial rivals focused on single markets  Rigid, bureaucratic culture  Not fit enough for an IT services / solutions company
  6. 6. Differences in Culture Identified Vital Signs Nixdorf Siemens Power Empowered to affect Sense of resignation change Identity Identify with the Seek the safety of their enterprise as a whole profession, locations and teams Conflict Handled directly and non- Avoid conflict or flare up interfering Learning More receptive to ideas Less receptive
  7. 7. Schulmeyer Joins as CEO  Comes from Outside – ABB USA  With academic exposure to managerial change  At MIT as guest lecturer  His key responsibility?  Bring profitability to SNI  His key goals?  Make SNI customer driven  Evaluate employee based upon the value created  Reduce number of employees by 4300  Increase global market share  Improve communication
  8. 8. By Darshan
  9. 9. Initiate The Change Create Sense of Urgency Siemens DEFREEZE SNI Nixdorf Form A Powerful Coalition
  10. 10. Revitalize The Culture Conceptualize Create Vision Concretize Plan and Document Articulate Communicate & Empower Indoctrinate Walk the Talk Internalize Create Short Term Gains & Consolidate FREEZE Institutionalize Attain Maturity
  11. 11. By Manas
  12. 12. Schulmeyer Sets 3 Objectives  Culture change is mandatory: Schulmeyer  Three Objectives:  Change the behavior of managers & employees  To achieve improvements in performance and results  Change Work systems  To achieve operational excellence  Change Processes  Be customer oriented. Ensure better service
  13. 13. Andy Chew Joins as Change Agent  Andy Chew comes from  Solutions business, UK as GM  Problems in Solutions Business are  Slow information flow  Inadequate communication bet. divisions & regions  Low morale hampering innovation and enthusiasm  Pilot project of change is finalized for Andy  Revitalize SAP/R3 department in Solution Business
  14. 14. There are Obstacles to Change  Andy is seen as outsider  Relocated to Germany from UK  “Schulmeyer Kinder” – “special”  Andy is open and upfront. Shares issues openly  Locals are not  Andy underestimated the magnitude of change  Old hands reluctant to change  Resources are limited  Cultural differences crop up  Immediate supervisor is not supportive
  15. 15. Gaps Observed So Far....  Change process handover not proper  Schulmeyer sets the mandate and assumes Andy would execute thereafter !  Andy takes over assuming execution is the next step and it would be easy as well! He ignores initial steps.  The managerial layer between Andy and Schulmeyer is not visibly active.  Change plan is not adequate  Obstacles are underestimated
  16. 16. By Rohit
  17. 17. Andy Chew Closes The Gaps 1. Started with adapting to the environment  Changed his management style  Revisited the scope of the plan 2. Established a sense of urgency 3. Formed a coalition of 50+ people  Engaging the right talent  Growing the coalition strategically  Working as a team not just as a collection of individuals 4. BUT Compelling vision statement lacking
  18. 18. Andy Chew Takes More Initiatives 5. Creates a prioritized 12 point plan  To give direction  To get buy-in from “key individuals” 6. Improves communication channels  Has open door policy - symbolism  Initiates information workshops  Conducts Team building exercises 7. Empowers the team  To develop a strategy for implementation 8. Obtains full support of Jaeger, R3’s head  Sets the desired tone from top. 9. Tries to create a self-evaluative “consultancy culture” with support of BCG
  19. 19. By Abhishek
  20. 20. How to Manage Depth & Scope?  Can such sweeping cultural change be mandated from the top and left to middle levels for implementation?  No. What should be the ideal composition?  Ensure participation at all level  Ensure coverage of know-how and skills  Can they really address 19 initiatives at once?  Too big scope  Create vision first. Define objectives.  Categorize multiple initiatives and group them under the objectives.  Small number is manageable
  21. 21. How To Deal With Resistance?  How to dilute the staff’s resistance?  Broaden staff’s interests. Let them identify with the vision  Give importance to social and human considerations  Is formal authority and dictates of top management enough to break down their resistance? No!  Resistance can not be broken through authority  Organization is like a family  It needs sensitivity, care and love
  22. 22. Challenges...  Does Andy Chew have the skills and resources necessary to effect a cultural change in this environment?  No Visible HR support  HR has important role in cultural changes  Resource overrun  Already utilized too much of time  Skill and ability gap  Andy doesn’t have established credentials of transformational leader  His coalition team is still small and narrow
  23. 23. Steps Ahead...  Define short term gains  Measurable  Increase involvement  Reward employees  When milestones achieved  Revitalize periodically  Institutionalize the change
  24. 24. That’s All From Group B...

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