2. COMPANY PROFILE
Lafarge S.A. is a French industrial company.
Sales over $22 billion, footprints in 64 Countries.
Top Players in 3 Segments: Cement, Aggregates and
Ready made Concrete (RMC) Business
CONTRIBUTES TO CONSTRUCTION OF CITIES
ARROUND THE WORLD THROUGH INNOVATIVE
SOLUTIONS
On 10 July 2015 Lafarge merged with Holcim, a Swiss
cement company. On 15 July the new company was
officially launched around the globe under the name
of Lafarge-Holcim
4. THE CONTEXT FOR CHANGE
• In 2008 Lafarge acquired L&T Read mix
Concrete(RMC) business in India for $349Million,
inheriting over 80 plants across country.
• Commercial ready mix forms 20% of total market.
• Other players started expanding their presence &
market share.
• Tremendous pressure from local as well as organised
players.
• Changing customers needs and expectations.
• Market was stagnating with only marginal business
growth.
5. THE CONTEXT FOR CHANGE
• Despite this, the new leadership team saw
opportunities in evolving customers needs and
Lafarge ability to offer innovative products
• Quick action was needed if the business was to
capitalise on the oppotunities.
6. Focus Areas for Turnaround
• Shifting from low price bidding to Prescriptive Selling,
increase volume and delivering value added products
• Building operational efficiencies in core areas like plant
utilization, delivery schedule, transit mixers and pump
maintenance, raw material quality & cost.
• Market mapping and strategically improving customer
base
• Building passionate and motivated team with clear
direction for turnaround plan
• Attract and retain skilled professionals for long term
success
7. Abhilasha- Desire for change
• The initiative was aptly named ABHILASHA 2015,
which means desire reflecting ardent desire of
team to change
• With Abhilasha, Lafarge India had an ambition to
emerge as the safest, most reliable and preferred
Business partner for the construction Industry
• High Quality Products
•
Consistent Reliable Services
Innovative Solutions
8. Abhilasha- Desire for change
• Abhilasha 2015, identified customer focus and
adaptability to a fast changing external environment as
two important dimension of change.
• People were at heart of this initiative and hence
emphasis was on empowering and enhancing people
development.
• To ensure urgency, challenging timelines were drawn
up for all action with leaders and sponsors identified to
drive program through periodic review
10. 1. Create a sense of Urgency
LSIP (Large Scale Interactive Process) was used to focus
on Planning and Execution of change in large system over
short period of time
• The rationale behind LISP was to involve and influence
employees to believe in the need of change.
• Senior Leader team shared relevant information about
the current scenario,market reality, performances,
customer feedbacks etc
• Design team comprised of cross hierarchical, cross
functional representation of larger team who designed
& successfully conducted LSIP workshop
11. Create a sense of Urgency
• This was followed by multiple level dialogues
across level and functions.
• They identified Key problems and generated
right solutions and the same was shared with
management team and then integrated into
change strategy.
12. 2. Build the Guiding Team
• Get right people with right skill at right place.
• Fresh talent was selected/ recruited matching
with the new vision of the company.
• An additional 185 employees were hired to
support the new structure of organisation and
to strengthen the sales and marketing efforts.
13. Operational Change
• All the key influencers and senior leadership
members were involved on strategy design from the
beginning.
• Each functional head worked on their respective
functional SWOT that need to be addressed.
• Entire management together reviewed each
proposal and finally selected the key success factors
1. Creation of new positions for effectively managing
three to four plants in major markets.
2. Additional sales manager in larger Markets
14. Operational Change
3. Sales managers were trained on Sales Force
effectiveness, value selling to enhance commercial
acumen and customer focus.
4.Quality linked failures were to be tracked and made
key performance indicators (KPI)
5.A detailed segment based Marketing plan and
branding architecture was created to support
turnaround strategy.
6. Capacity expansion on some of the existing plants.
16. Shared Vision
• LSIP( Large Scale Interactive process) created
a Shared vision
• It successfully convinced the workforce for
change and there were limited resistance
against the change
• Senior leadership team continued working
with managers on the 30days, 60days and
100 days action plans.
17. Communication strategy
• Motivational communication plan was rolled out to share the
vision, lay down clear expectation and new ways of working.
• Two days event was designed to develop a road plan for this
turnaround plan.
18. Communication strategy
• A video was created showing current market capitalization,
customer service index and customer insights
• Focus was on shifting from ‘one of the player’ to ‘ differentiated
value added service provider’
• More emphasis on Sales Force Effectiveness.
• Detailed plan for LSIP Wksp was sent to all employees to ensure
alignment and uniform understanding
19. Managing initial resistance & leveraging early wins
• LSIP which focussed on gaining buy-in for
change was successful in overcoming
traditional resistance to change
• Achievement of LSIP WERE
– Creating a shared vision
– Effective communication of strategy to middle
level managers
– Strategy implementation report
Regular communication of strategy and sharing of
success stories helped in keeping momentum up.
20. Institutionalising the change
• 100 days action plan was identified and implemented by each
team.
• Each team focussed on action plan details with assurance to
complete stated milestones in 30,60 or 100 days
• This was periodically tracked and reviewed,
• Steering committees were formed to review various action
plans and monitor them
• Customer service centres were formed, regular and honest
feedback from customers were obtained.
• Monthly flashing of success stories with recognition from GM
was shared with everyone
21.
22. Impact on organization
• LSIP was able to cascade philosophy of ABHILASHA down the
line
• Focussed communication was carried out through mailers and
sharing of experience/ learning
• Immediate change was visible in energy levels in action
toward achievement of 100 days plan
• Seamless implementation of new structure across zones
• Opportunities were provided to internal employees for
growth.
• Consistent efforts sales force effectiveness resulted in
increasing value added production sales
• Overall high customer satisfaction of over 90%
• Great improvement in maintenance and housekeeping
23. Lessons for change managers
• The organisation Identified the key market segement
which can emerge as strategic differentiator
• Launch change intervention with the objective of
aligning larger orgnl goals with performance goal of
individual employees,
• Ensuring alignment and high engagements level during
implementation of change intervention is key
• Leaders play an important role in communicating orgnl
strategies and short/medium term implications of
implemented decisions across employees.
24. Lessons for change managers
• Ensure sense of urgency and maintain
momentum, with strict timelines and well
articulated goals
• Providing customised learning solutions to bridge
technical, functional and behavioural gaps.
• Understanding business needs, supporting
knowledge transfer post workshops,
documenting improvements and sharing small
success stories is key to optimal change
intervention
25. Formal Organizational Structure
• In a formal organizational structure, the management and divisions within a
company are typically written and explained so all employees understand how
things work. This documentation may take the form of an organizational chart
that visually depicts how each level of management works to prevent
misunderstandings. Formal structure organizations usually have a hierarchical
pyramid structure with a company president, CEO and senior managers at the
top; mid-level managers in the middle; low-level managers at the bottom. Staff
employees are expected to implement decisions and processes made at the
levels above them, and they are not usually solicited for their opinions or ideas
about how the company should operate.
26. Informal Organizational Structure
• In an informal organizational structure, your business doesn’t operate
under the guidelines of a written document that spells out the rules,
regulations and chain-of-command. Under this structure, your business
operates by a system developed by your employees who have proven
effective. This structure relies on relationships forged between staff
members, cooperation between teams and communication that focuses
on achieving shared goals. Informal structures are unique for every
company, because they are based on the personalities of your employees
and collaborative techniques developed over time.
