Change Management

at
TATA Motors

Ajith T Veetil
Makarand Kadave
Sachin Todur
Vaibhav Borkar
 Change Management
• Change management is the process of developing a planned
approach to change in an organization
• Objective is to maximize the collective benefits for all people
involved in the change and minimize the risk of failure of
implementing the change
• Change should not be done for the sake of change -- it's a
strategy to accomplish some overall goal
 TATA Motors
• Founded in 1945

• India’s largest automobile company

• World’s fifth-largest manufacturer of medium

and heavy trucks

• The company's 24,000 employees are guided by the vision to be
"best in the manner in which we operate, best in the products we
deliver, and best in our value system and ethics.“
• Global presence through major acquisitions and takeovers
 Turn around
 2001 - Tata Motors marks the biggest turnarounds in the
history of Indian automobile manufacturing industry
 Decided on a recovery strategy that had 3 distinct phases, each
of which was intended to last for around 2 years—6 years in all.
Phase 1 - Reducing Cost
Phase 2 - Consolidating their position in India
 Phase 3 - Involved going outside India and expanding
operations internationally.
People :
Measures of leadership effectiveness was established
Fast trackers were identified & encouraged to take more
responsibility
Youth were given strategic responsibilities
 Planning the Change at TATA Motors
Step One: Create Urgency
Step Two: Form a Powerful Coalition
Step Three: Create a Vision for Change
Step Four: Communicate the Vision
Step Five: Remove Obstacles
Step Six: Create Short-term Wins
Step Seven: Build on the Change
Step Eight: Anchor the Changes in Corporate
Culture
 Phase 1-Reducing Cost

Product Deveoplment E-Sourcing CAD System

 Phase 2-Consolidating Position

Quality Product Innovative Product

 Phase 3- Expansion of Business Globally

• Acquired Daewoo Motors in 2004

• Aquired Hispano Carrocera in 2005

• Joint Venture with Brazilian based Marco polo in

2006
• Joint Venture with Thonburi Automotive Assembly
Plant Company in 2006
• Acquired British Jaguar Land Rover (JLR) in 2008

• Acquires 80% stakes in Italy-based design and

engineering company Trilix in 2010
 Strategic Planning Process

•Low Cost Approach: a deliberate position of “ Low cost & Acceptable

features” with focus on fuel efficiency.– world class product at Asian
cost.

•Partnerships outside organizations: Cummins, Holset and Taco

•Vendor involvement in product development

• Implemented IT Policy and CRM in place

•New Product Development and e-sourcing process

 Financials of Tata motors
– at a glimpse.
TURNOVER IN (Rs) CRORES

20602
2005-06

17419
2004-05
13223

2003-04
9097

2002-03
7506

2001-02

0 5000 10000 15000 20000 25000

 Financials of Tata motors
– at a glimpse.

PROFIT AFTER TAX IN Rs.Crores

2005-06

2004-05

2003-04

2002-03

2001-02

-500 0 500 1000 1500 2000

PROFIT AFTER TAX IN Rs.Crores
 Sales volume in units.

189000
2005-06

179000
2004-05

140000
2003-04

104000
2002-03
89000

2001-02

0 50000 100000 150000 200000 250000 300000 350000 400000 450000

passenger vehicles commercial vehicles

Thank You !!