What is change management? Activities contributing to effective change management Soft and hard side of change management DICE for change management calculation What is volatile economy – Indian Situation CASE STUDY – TATA motors

1. CHANGE MANAGEMENT
IN VOLATILE ECONOMY
PRESENTED BY
APARNA ,DEVESH SHUKLA ,HARSHAD , SWIKAR ,HEMANTH

2. AGENDA
 What is change management?
 Activities contributing to effective change management
 Soft and hard side of change management
 DICE for change management calculation
 What is volatile economy – Indian Situation
 CASE STUDY – TATA motors

3. What is Change management
 Change management is a systematic approach to dealing with change both from
the perspective of an organization and the individual.
 Aspects of change management
Adapting Controlling Effecting

4. ACTIVITIES CONTRIBUTING TO
CHANGE MANAGEMENT
 Motivating Change
 Creating Vision of Change
 Developing political support
 Managing the transition
 Sustaining momentum

5. MOTIVATING CHANGE
Motivating change
and creating
readiness
Sensitize organisations
to pressure for change
Reveal discrepencies
between current and
desired states
Convey credible
positive expectations

6. CREATING VISION FOR CHANGE
Constructing
envisioned Future
Bold and valued
outcome
Desired future
state

7. DEVELOPING POLITICAL SUPPORT
Developing
political support
Assessing change
agent power
Identify key
stakeholders
Influencing
Stakeholders

8. SUSTAINING MOMEMTUM
Current
State
Desired
Future
State
Transi
tion
state
Activity Planning , Change
management Team

9. SOFT & HARD SIDE OF CHANGE
MANAGEMENT
 Culture , leadership , Motivation and communication – These are soft sides of
change management .They are necessary but not sufficient.
 Hard Side – This determines outcome of any transformation initiative
D - Duration 1 – Very short duration project , 4 – When
there is time between milestones
I - Integrity 1 – Team is lead by highly capable leader , 2,3 –
Intermediate capability, 4 – Team lacks on skills,
alignment to goal
C - Commitment 1 – eagerness to take change, 2 – just willing , 3,
4 – reluctant or strong reluctance
E - Effort 1 – project <10 % extra work , 2- 10 -20% extra
work , 3 – 20-40% extra work , 4 - > 40% work
7 – 14 (WIN ) , > 17 – Unlikely to succed

10. What is volatile economy – Indian
Situation
 Demonetization
 More FDI in India
 IT Sector
 Bad loan’s problem

11. CASE STUDY – TATA MOTORS
 Tata Motors, division of one of the largest business houses in India has grown
significantly over the last 64 years since its establishment in 1945
 During the period 1995-1998, the commercial vehicle business had been doing well
and Tata Motors grew at 30-40 per cent.
 Then came the downturn in the economy and the market for commercial vehicles
suddenly shrank by 40%.
 Tata Motors moved to the offensive by refocusing its investments on less cyclical
products, including light commercial vehicles, buses, and spare parts; making a
successful entry into passenger cars.
Timely change by M.D.RAVI KANT, Cost reduction strategy ,modify products to low
costs with rival bench marking

12. Youth role in Change management
 The whole cost initiative came from one of the breakfast meetings at an operation
in Pune.
 10 % cost reductions was agreed upon after team meeting with seniors.
 After this, the young employees to put together a bigger team from Jamshedpur
and Lucknow, to include representatives from sales and marketing, and spend ten
days working on the plan.
 That was the defining moment because if they had tried to go only through the
top, they might not have succeeded as well, and the transformation might have
taken much longer.