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SONY - Change Management

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Presentation about Change Management by analyzing SONY

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SONY - Change Management

  1. 1. Management SkillsChange ManagementCagri Can KaynakMahesa Krishna RadityaMuhammad Umer RaziNils NiederheideNovember 30, 2012
  2. 2. IntroductionProblemChangeConclusion
  3. 3. IntroductionProblemChangeConclusion
  4. 4. Introduction ProblemChangeConclusion
  5. 5. Introduction Problem ChangeConclusion
  6. 6. Introduction Problem Change Conclusion
  7. 7. 1. Sony CorporationIntroduction Problem Change Conclusion•1946-Tokyo Telecom Engineering(Totsuko)
  8. 8. 1. Sony CorporationIntroduction Problem Change Conclusion
  9. 9. 1. Sony CorporationIntroduction Problem Change Conclusion•1946-Tokyo Telecom Engineering (Totsuko)•1955-Stock exchange
  10. 10. 1. Sony CorporationIntroduction Problem Change Conclusion•1946-Tokyo Telecom Engineering (Totsuko)•1955-Stock exchange•1958-Totsuko Sony
  11. 11. 1. Sony CorporationIntroduction Problem Change Conclusion•1946-Tokyo Telecom Engineering (Totsuko)•1955-Stock exchange•1958-Totsuko Sony•1960s&70s - Internalization
  12. 12. 1. Sony CorporationIntroduction Problem Change Conclusion•1946-Tokyo Telecom Engineering (Totsuko)•1955-Stock exchange•1958-Totsuko Sony•1960s&70s - Internalization•1973-“Division-based” corporate organization
  13. 13. Sony Portfolio HistoryIntroduction Problem Change Conclusion
  14. 14. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio1955
  15. 15. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video1955 1968
  16. 16. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music1955 19681968
  17. 17. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music1955 196819751968
  18. 18. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music1955 1968197519791968
  19. 19. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music1955 19681975197919821968
  20. 20. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie1955 196819751979198219681989
  21. 21. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games1955 1968197519791982196819891994
  22. 22. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games1955 19681975197919821968198919942000
  23. 23. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games Phones1955 196819751979198219681989199420002001
  24. 24. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games Phones1955 1968197519791982196820041989199420002001
  25. 25. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games Phones1955 19681975197919821968200419892005199420002001
  26. 26. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games Phones1955 196819751979198219682004198920052006199420002001
  27. 27. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games Phones1955 1968197519791982196820041989200520061994200020062001
  28. 28. Sony Portfolio HistoryIntroduction Problem Change ConclusionAudio Video Music Movie Games Phones1955 19681975197919821968200419892005200619942000200620012012
  29. 29. 1.2 Sony Product PortfolioIntroduction Problem Change Conclusion
  30. 30. 1. Sony CorporationIntroduction Problem Change Conclusion•Work-life balance•Hierarchical•Centralized•Think globally! Act locally!
  31. 31. 1. Sony CorporationIntroduction Problem Change Conclusion
  32. 32. Introduction Change ConclusionIntroduction Problem
  33. 33. Introduction
  34. 34. 2.1 External Forces2.2 Internal Forces2. Problem AnalysisIntroduction Problem Change Conclusion
  35. 35. 2.1 External ForcesMassive Corporate Financial LossesGlobal Recession and Strong YenStrong CompetitionIntroduction Problem Change Conclusion
  36. 36. Massive Corporate Financial Losses2.1 External ForcesLoss of 2,8 billion USDIntroduction Problem Change Conclusion
  37. 37. Massive Corporate Financial Losses2.1 External ForcesLoss of 2,8 billion USDIntroduction Problem Change Conclusion
  38. 38. Massive Corporate Financial Losses2.1 External ForcesLoss of 2,8 billion USDIntroduction Problem Change Conclusion
  39. 39. Global recession and Strong Yen2.1 External ForcesIntroduction Problem Change Conclusion
  40. 40. Global recession and Strong Yen2.1 External ForcesIntroduction Problem Change Conclusion
  41. 41. Global Recession and Strong Yen2.1 External ForcesMr. Nobuyuki Oneda (2008)Chief Financial Officer and Executive Vice PresidentIntroduction Problem Change Conclusion
  42. 42. Global Recession and Strong Yen2.1 External ForcesMr. Nobuyuki Oneda (2008)Chief Financial Officer and Executive Vice President“Sony loses 7.5 billion yen in operating profitfor each 1 yen gain against the euro…”Introduction Problem Change Conclusion706 million EUR
  43. 43. Global Recession and Strong Yen2.1 External ForcesMr. Nobuyuki Oneda (2008)Chief Financial Officer and Executive Vice President“Sony loses 7.5 billion yen in operating profitfor each 1 yen gain against the euro…”and “... loses 4 billion yen foreach 1 yen gain against the dollar.”Introduction Problem Change Conclusion487 million USD706 million EUR
  44. 44. 2.1 External ForcesStrong CompetitionIntroduction Problem Change ConclusionDigital Camera Market 2010Game Console MarketSmartphone Market 2011Television Market 2011
  45. 45. 2.1 External ForcesStrong CompetitionIntroduction Problem Change ConclusionDigital Camera Market 2010Game Console MarketSmartphone Market 2011Television Market 2011
  46. 46. 2.2 Internal ForcesLack of Internal CommunicationLoosing Innovative Edge
  47. 47. Lack of Internal Communication2.2 Internal ForcesIntroduction Problem Change Conclusion
  48. 48. Lack of Internal Communication2.2 Internal ForcesOperation CentersHeadquarterIntroduction Problem Change Conclusion
  49. 49. Lack of Internal Communication2.2 Internal ForcesIntroduction Problem Change Conclusion
  50. 50. Lack of Internal Communication2.2 Internal ForcesSilo CultureIntroduction Problem Change Conclusion
  51. 51. Loosing Innovative Edge2.2 Internal ForcesIntroduction Problem Change Conclusion
  52. 52. Loosing Innovative Edge2.2 Internal ForcesBecame aFOLLOWER?!Introduction Problem Change Conclusion
  53. 53. 3. Change Management3.1 Sony’s CEOs3.2 8-Step Process for Leading Change3.3 Current Situation / CEOIntroduction Problem Change Conclusion
  54. 54. 3.1 Sony’s CEOsIntroduction Problem Change Conclusion
  55. 55. 3.1 Sony’s CEOsNobuyuki Idei1998 - 2005Sir Howard Stringer2005 - 2012Kazuo HiraiFeb 2012 - PresentIntroduction Problem Change Conclusion
  56. 56. 3.1 Sony’s CEOsNobuyuki Idei1998 - 2005Introduction Problem Change Conclusion
  57. 57. Taking Advantages of theNew TechnologyCreating PartnershipCost efficient policyRestructuring the organizationDeveloping American-StyleCorporate Governance3.1 Sony’s CEOsNobuyuki Idei1998 - 2005Introduction Problem Change Conclusion
  58. 58. Taking Advantages of theNew TechnologyCreating PartnershipCost efficient policyRestructuring the organizationDeveloping American-StyleCorporate Governance3.1 Sony’s CEOsNobuyuki Idei1998 - 2005Introduction Problem Change ConclusionCATASTROPHE !
  59. 59. 1. Sense of UrgencyActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion
  60. 60. 1. Sense of UrgencyReviving Sony Consumer ProductService BusinessFailed to restructure the TV businessActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion
  61. 61. 2. Creating theGuideline CoalitionActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion
  62. 62. 2. Creating theGuideline CoalitionCombine cutting-edge technology withentertainment contentLaunch PS3 and PS Network. Somehacker breach the customer credit carddata on PS NetworkActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion
  63. 63. ActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion3. Developing aChange Vision
  64. 64. Restructuring planCut 10,000 jobs and shed a number ofunprofitable devision & productActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion3. Developing aChange Vision
  65. 65. ActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion4. Communicatingthe Vision for Buy-in
  66. 66. Focus on three core sector: Electronic,Games & EntertainmentSuccess at Blue Ray Disk, PS3 andMovie PictureActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion4. Communicatingthe Vision for Buy-in
  67. 67. ActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion5. EmpoweringBroad-Based Action
  68. 68. Centralization decision-making andDevelop “top-down leadership”Sony start to respond faster to change inthe operating environment by focusingsoftware & serviceActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion5. EmpoweringBroad-Based Action
  69. 69. ActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion6. GeneratingShort Term Wins
  70. 70. Reinventing the Consumer ProductServiceDeveloping the software environment tosupport electronic device (hardware)ActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion6. GeneratingShort Term Wins
  71. 71. ActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion7. Never Letting Up
  72. 72. Focusing on Kaizen, continuesimprovement to incrementally increasetheir market shareSony is too slow to adapt to new marketopportunities and changesActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion7. Never Letting Up
  73. 73. ActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion8. IncorporatingChange into the Culture
  74. 74. He is not creating radical changeNo internal resistance regarding“Foreign” CEOActionResult3.2 Leading ChangeIntroduction Problem Change Conclusion8. IncorporatingChange into the Culture
  75. 75. Vision of “ONE SONY”Restructuring the organizationFocusing on Mobile, Entertainmentand Digital ImagingBuilding Partnership with Google3.3 Current CEOKazuo HiraiFeb 2012 - PresentIntroduction Problem Change Conclusion
  76. 76. 4. Conclusion4.1 Change Obstacle4.2 RecommendationsIntroduction Problem Change Conclusion
  77. 77. 4.1 Change ObstacleCopyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.28OD Approaches to Culture ChangeTraditional OrganizationalDevelopment ModelLarge-GroupIntervention ModelChange Process: Incremental Change Rapid transformationFocus for action:InformationSource:Distribution:Time frame:Learning:Specific problem or groupOrganizationLimitedGradualIndividual, small groupEntire systemOrganization & environmentWidely sharedFastWhole organizationSOURCE: Adapted from Barbara Benedict Bunker and Billie T. Alban, Conclusion: What Makes Large Group Interventions Effective, The Journal of Applied Behavioral Science 28, no 4 (December1992), 579-591.Introduction Problem Change Conclusion
  78. 78. 4.2 RecommendationsHeadquarter and Operation Centers should becoordinating with each other.Developing communication network technology likeGoogle.Outsource Research and development for a short termperiod or decentralize R&D.Introduction Problem Change Conclusion
  79. 79. 4.2 RecommendationsLimit their product lines and focus on core businessproduct like P&G did it.Use of command and control leadership.Developing new communication network managementdecrease top to bottom& vice versa.Introduction Problem Change Conclusion
  80. 80. Thank You!November 30, 2012Cagri Can KaynakMahesa Krishna RadityaMuhammad Umer RaziNils Niederheide

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