This is a case on management of change as transformation in a matured Indian Organization. The change in external environment due to new industrial polity in 1991 and influx of global competition was managed well by this public sector company. The reference for this presentation was majorly taken from V. Nilakant (Faculty, Department of Management in University of Canturbery, New Zealand) and S. Ramnaryan's (Professor, IIM Ahmedabad, India) book called Managing Organizational Change.

1. National Chemical Laboratory
Presented to Professor Meenakshi Malhotra
By Group 04
Nupur Jha | Prachi Singla | Prajjwal Vij|
Preeti | Radhika Bansal
SEMINAR ON MANAGEMENT OF CHANGE

2. About NCL
CSIR-National Chemical Laboratory,
Pune is a research, development and
consulting organization with a focus
on chemistry and chemical
engineering. It is internationally
known for its outstanding track record
of industrial research involving
partnerships with industry from
concept to commercialization

3. Mid 1980's
Achieve Breakthroughs
Developing Innovative
Technologies
Events
1962
Nine Divisions
1967
Leadership Change
Production
Oriented
1950
Established
1978
Leadership Changed
Focus on social and industrially
significant Projects
1989
Changed
Leadership
Globalization

4. Environmental Changes in 1989
Globalisation of research and development
Dominance of invention sale over sale of process technology
Increasing transfer of know-how between countries
Increasing sale of intellectual property between countries
Announcement of the new industrial policy in 1991

5. Strategic Issues in 1989
Infrastructure
Identification
of Core
Competencies
Financial
Restructuring
Investment in
R&D
Marketing
Strategies
Incentives for
HR
Upgrading
Skills
Performance
based
Rewards
Exploration of
Overseas
Market
Competition
Sound Base in
Fundamental
Research
Technological
Development

6. • NCL sought World
Bank assistance to
facilitate
commercialization of
technologies.
1989
• Project Planning and
Development (PPD) for
industry interaction.
• Scheme to encourage
'kite flying' ideas
1990
• An independent
Research Foundation
was set up to give
cash awards for the
most significant
group efforts during
a year.
1991
• An R&D and
business plan was
prepared and
principal business
areas were identified
and scope of
projects fixed.
1993
Actions in Response to Changes

7. Other Measures

8. Established relationships with a wide variety
of foreign companies. Upgradation in skills
and techniques.
With World Bank funding, it has sought help
from a UK-based consulting organisation.
Set up a Scientific and Management
Information Services Unit to provide access to
international databases and online patent
information.
Results

9. Change Levers
Leadership
• The focus of
leadership changed
from production
oriented to social
and industrially
significant projects as
per the
environmental
changes
Marketing
• A separate business
planning and
marketing group was
set up. This was
meant to give greater
thrust to NCL's
interactions with
industry
Technology
• Development of
technology licensing
and
commercialization of
technology.
international
technical and
consulting services.

10. Change Levers
Structure
• More independent
departments. Like
Marketing units and
an independent
research unit that also
helped in attracting
fresh talent.
Strategy
• Exploring overseas
market, upgradation
of skills and
techniques, developed
a comprehensive
marketing strategy,
Initiated Contract
research.
Quality
• World Bank assistance
in upgrading pilot
plant facilities,
established sound
base in fundamental
research.
• Continues work on
QUALITY basic
research.

11. Change Levers
Cost
• Financial restructuring, Investment
in R&D, gaining revenue by
patenting the research in global
market.
• Budgeting after the funding by
World Bank.
People Management
• Skill Gap Analysis
• Skill Training and Development
• Performance based incentives and
rewards
• Removal of performance based
disincentive.

12. Future Challenges
Opportunity Cost of
Long term projects
that can be sold to
MNCs.
Achieving a balance
between generation
of knowledge and its
application.
Preventing
exploitation of
cheap Indian
intellectual labour.
There is a need to
evolve institutional
arrangements for
interacting with
overseas companies.
Excessive costs of
international
patenting.
Attracting qualified,
young scientists to a
career that is not
seen as being
attractive.

13. Thank You!