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By

Prof. (Dr.) Vijay Kr Khurana

Role of Leadership
Managing Transformations

Role of leader in Innovation & Change


How the leadership in an organization can
help in building culture for change
Team building for change management
What are internal driving forces for
technological change? Explain
Managing transformation in changing
business scenario, role of leader

Who is a leader ?
As per James Mcgregor Burn A leader is one who
instills purposes , not one who controls by brute force.
A leader is one who can take a group of people to a
place they dont think they can go.
Leadership is --- we, not me; mission, not my show;
vision, not division; community, not domicile.
Many other definitions of the word leader or leadership
are also available, but there is no single exhaustive or allinculsive definition.
A leader can play both positive as well as negative role in
change management.

A leader can play the following positive roles by helping the


mangement during the process of change:
Encouraging collaboration rather than comeptition
Encouraging customer-orientation
Encouraging training and coaching
Encouraging quality consciousness
Improving communication
Encouraging team work
Improving participation of work force
Can reduce conflicts by problem-solving
Helping and encouraging for better productivity
Can encourage creativity in an organization
Helping in creating proper culture for improvement,
problem solving, prevention etc.

A good leader as a head of a team (consisting of


representatives or members from either same or different
functions / departments of an organization) can help in :
Proper & successful management of new product
development & its commercialization (innovation)
Reduction of lead time from research & development
to markets.
Speeding up volume / quantum of successful new
product launch
Attainment of quality leadership
Attainment of new product / technological leadership
A leader can follow steps in ADKAR model for building
culture for change

If people lever is not managed properly, people in organizations


can resist the change at following levels :
Individual level, group level, organizational level
As an employee, as managers
This in turn can adversely affect team work, productivity, quality,
drive towards modernization etc.
If people lever is managed properly, people lever can be used to
create multifold increase in :
Creativity i.e. generation of new and useful ideas
New product development & its commercialization
( innovation)
Productivity
Improvement in quality
Overall technological advancement / development

People lever in organizations can be utilized / harnessed


by:
Ensuring proper communication
Promoting education & training
Creating right organizational culture
Seeking participation of employees
Introducing rewards / incentives
Encouraging creativity by respecting individual
initiatives, group initiatves like brain-storming, delphi
etc.
Creating teams by involving members from same or
different functions / departments of the organization.

Teams both multi-functional as well as of same function


can be used to harness people lever for change
management in organizations.
Multi functional teams are usually used in case of New
product development, new projects etc
Committees like purchase committee, budget committee
are frequently used in organization to gain advantage of
pooling of ideas. Special Task Forces, Project Monitoring
Groups may also be made.
Japanese organizations have gained global competitiveness
by using people lever. Japanese organizations have
frequently used people lever through Kaizen, Ringi etc.
For quality improvement and problem solving.

Kaizen - is the Japanese concept of continuous


improvement. Motto of Kaizen is Today better than
yesterday and Tomorrow better than today. Kaizen
practice means deep, systematic and continuous
involvement of people (everybody) and by using certain
techniques, but mainly by their brain, to cause a process
of improvement to start, develop and never-end.
Under this concept, plant is treated as a living
institution. It is continuously learning and changing.
Work-teams focus on how to improve what they are
doing.
Job rotation & cross training are frequently employed /
used to give workers a complete prespective of
production processes.

Contd .. -The five main elements of kaizen

Teamwork
Personal discipline
Improved morale
Quality circles
Suggestions for improvement

Contd ..
A quality circle . is a volunteer group composed of
employees, usually under the leadership of their
supervisor (or they may elect a team leader), who are
trained to identify, analyze and solve work-related
problems and present their solutions to management in
order to improve the performance of the organization,
and motivate and enrich the work of employees.
When matured, true quality circles become selfmanaging, having gained the confidence of
management.

The Ringi System is a unique way of coming to consensus


about new ideas within Japanese companies.
It is based on widely held consultations among different
level managers on new ideas or projects.
The ideas are usually proposed by the lower rank
managers who have operational responsibilities. The
concept would then be discussed among the same rank
personnel and once having reached the consensus it would
be passed to the next level of managers, where it would
undergo the same procedure.
After such broad consultations the proposal will reach the
top management, where it would or would not get the
final approval.

4 main areas
Changing structure
Changing physical setting
Changing people
Changing technology / technological
change

Technological Change . occurs when


there is a change or addition to the
underlying scientific principles which give a
specific technology its particular character.
Technical Change .is regarded as a subset
of technological change. Technical change is
confined to changes within one or more of
other constituents of a technology,
perticularly to techniques and knowhow.
Technological change can produce technical
change and the inverse is less likely.

Tecnological Progress describes the


capability of a technology to satisfy human
wants for goods and services. In commercial
terms, it provides increased customer value.
Technological progress comes in two basic
ways:
Further development or improvement of
existing product, service and process
technologies
Emergence of new, hybrid or improved
technologies

External Factors Leading to Technological Change


Overall increase of stock of technological knowledge of a
nation
Technological advancement and progress in the specific
industry
Government may change the structure of competition
by easing entry norms
Government may open up the national economy and
integrate with international economy
Spinoff of technology or technology diffusion from one
industry to another industry
May be necessitated by changes in government rules
and regulations

contd External Factors


Emergence of disruptive or breakthrough technologies and
innovations whcih may change the technology within
particular industry or nation
Internal Factors Leading to Technological Change
Improvement in one particular technology within the
technology portfolio of the enterprise may lead to imbalance
in such technology portfolio, leading to improvement and
advancement of other technologies in the portfolio
Some of the older, hazardous, unsafe, ineffeicient
inappropriate technologies may be required to be phased out
Firm may pursue technology leadership strategy

Contd Internal Factors


The enterprise may be guided by the goal to improve quality
level or to be known as quality leader
Changes in consumer requirements
Increasing or adding more features to the product or service
Desire to tap new markets or new market segements
Lack of availability of spares, components.
Controlling and reducing maintenance costs
Controlling and reducing process wastages and defectives
generation
Controlling and reducing processing and production costs
Increasing efficiency of operations
Gaining competitive edge

Characteristics of Technological Change


It is inevitable in this era of technology based competition.
Generally, it is an ongoing activity. At times, it may be one-time or
episodic activity.
It occurs in all organizations, though at varying rates of speed and
varying degree of significance.
It occurs in all parts or functions of an organization, though at
varying rates of speed and varying degree of significance.
It occurs at all levels of an organiztion i.e. top level, middle level &
bottom level, though at varying rates of speed and varying degree
of significance.
Factors causing technological change may be internal as well as
external to the organiztion.
It leads to changes in technologies, products, services, tools,
equipements, processes or systems of the organization.

Change in product design


Change in process design

Business transformation means a


processof profound & radicalchange
that orients anorganizationin a new
direction and takes it to an entirely
different level ofeffectiveness.
Usually there is little or no
resemblance with the
pastorganizational form or
configurationorstructure.

A business transformationmay be defined as a


complex organizational change process
affecting almost the entire value chain that has
the potential to radically alter the
organization's relationship with the wider
economic and societal environment.

A buisness transformation is a process by which an


organization achieves and maintains major operational
and competitive advantages by
a. Changes in technology,
b. Changes in operational concepts (tactics, techniques
& procedures),
c. Changes in organizational structure (roles &
responsibilities)
d. Changes in human resource,
or through any combination of above four.

A business transformation may be planned or forced.

Relatively Long Periods of Stability Punctuated by


Radical Transformation

According to punctuated equilibrium


perspective, transformation usually occurs
through brief, discontinuous, radical and
simultaneous changes in all or most domains of
organizational activities; and not through
incremental and asynchronous changes
Romanelli & Tushman (1994) in their study found
that business transformations most frequently
occur in short, discontinuous bursts of change in
most or key domains of organizational activities.

As per Bacharach et al (1996), change is


continuously occurring in the organizations.
Periods of relative stability are usually marked
by alignment of logics of actions that actors at
the institutional, managerial and technical
levels adopt, across the organization.
During revolutionary change, logics of actions of
different organizational subgroups may get misaligned. Business transformation occurs when
logics of actions get re-aligned.

Key drivers for business transformation


are:
The need to revitalize the businesses so
as to survive and prosper;
Responding to marketplace events &
factors like political factors etc so as to
adapt to the ever-changing competitive
landscape, and
Resolving underperformance issues.

According to the transformation survey


conducted by KPMG (2013),
transformation is caused by multiple
triggers, like,
coping with changes in customers
demand (33% respondents), followed by
coping with changes in technology (30%),
coping with domestic competitors (29%),
etc

According to a survey by Forbes Insights &


Oracle (2014),
82% respondents emphasized the need for
innovation as a major driver of business
transformation, followed by
the need for operational efficiencies and
reduced costs (77%),
effective management of capital to increase
returns (74%),
mitigating or reducing risk (72%) etc.

PICS Framework for Transformation

Define the targets, role, and structure of the


transformation clearly
Identify & re-define value streams
Define the team & leadership make sure that
firm has right people at right places
Develop the roadmap & key activities to be
performed for transformation. Plan for major
changes
Re-design systems & structures to provide for
flexibility
Re-design communication systems

Contd
Re-design control systems and MIS
Establish the proper metrics (measures) to monitor
implementation of transformation process
Develop consensus / buy-in across the organization
Design suitable involvement/ engagement strategies
for all stakeholders including employees
Plan and accumulate resources required for
transformation

A.
B.
C.

Introduction of Major Changes


Consolidation
Sustaining for Growth

A. Introduction of Major Changes


The business transformation may require some
major changes as under:

Board reconstitution, Reconstitution of guiding/


leadership team
Product/ Project portfolio restructuring
Process & systems re-engineering
Major quality improvement program
Radical performance improvement through
thrust on productivity and pursuit of new
opportunities

ContdIntroduction of Major Changes


Investment in transformational technologies and
rapidly transitioning those technologies into
operational systems
Cross-border investments & alliances including
research collaborations
Encouraging creativity and innovation

Making changes to roles & responsibilities so


as to harness the potential and energy of its
people

ContdIntroduction of Major Changes


Increasing integration & collaboration
Opti-sizing and VRS
Ensuring implementation of best
practices, benchmarks, technology
leadership frameworks etc
Changing the culture of organization
Using appropriate change management
strategies

ContdIntroduction of Major Changes


Creating desire among stakeholders to participate
and support the transformation viz. creating a
compelling message as to why change is needed,
creating hope for better future, increasing urgency,
communicating often, offering incentives & rewards
Creating ability among stakeholders to implement
the transformation viz. By empowering action,
coaching, mentoring, training (growth workshops,
technical training, customer oriented training etc)
Using appropriate change management strategies

ContdIntroduction of Major Changes


Creating desire among stakeholders to participate
and support the transformation viz. creating a
compelling message as to why change is needed,
creating hope for better future, increasing
urgency, communicating often, offering
incentives & rewards
Creating ability among stakeholders to implement
the transformation viz. By empowering action,
coaching, mentoring, training (growth workshops,
technical training, customer oriented training etc)

B. Consolidation (Next Stage)


Consolidation may be attained through :
Continued focus on key operating parameters
Corporate initiatives on Sourcing, Channel and
Service
Requiring leadership with accountability
Leveraging reach & service business potential
Senior mangement commitment
Increased integration
Focus on performance
Prioritization of efforts

C. Sustaining for Growth (Last Stage)


Transformation may be sustained through:
Ever-increasing emphasis on mission assurance
Senior mangement commitment
Further improving integration
Reviewing and improving business strategy
Sustaining cost & quality optimisation
Reinforcing performance culture
Reiterating customer focus
Sustaining operational efficiency improvement
program

The transformation does not happen only


on balance sheets. It happens in peoples
minds. It is reflected in the way:
Employees think and plan
Employees speak and interconnect
Employees act & respond
Employees create value and manage