1. Group B
Sreevidya, Darshan, Rohit, Manas and Abhishek

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. By Sreevidya

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. 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. 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. 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. By Darshan

9. Initiate The Change
Create Sense of Urgency
Siemens
DEFREEZE SNI
Nixdorf
Form A Powerful Coalition

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. By Manas

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. 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. 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. 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. By Rohit

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. 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. By Abhishek

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. 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. 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. Steps Ahead...
 Define short term gains
 Measurable
 Increase involvement
 Reward employees
 When milestones achieved
 Revitalize periodically
 Institutionalize the change

24. That’s All From Group B...