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Change management in

multinational corporations
Lecture 1

Lect. Univ. dr. Bogdan Cernat-Gruici

Change Management
"It is not the strongest or the most intelligent
who will survive, but those who can best
manage change"
Charles Darwin

Change is
Natural and universal process
An inevitable necessity
A potential process of adaptation and evolution
for every person, organization and society.

The future of business change


In an era of ITC, organizational change is
imminent for the survival of
organizations

Change spans across


In principle, the process of change aimed at
three levels:
society as a whole;
corporations as functional units;
people treated individually, as basic
constituents of the first two organizational levels.

But what changes fundamentally?


According to J. Kotter, "... change refers goals, plans,
structure, motivation and control systems"

Change vectors
Controlling the competitive environment:
A change management strategy has the following objectives:
a better understanding of the company's position against the
competition;
expanding market segments, boundaries of action, etc..
continuous improvement of customer satisfaction;
production of innovations that strengthen the company's position in
the market.

Change vectors
Strengthening the human potential
Change strategy goals are:
active involvement of human resources in achieving the
objectives;
adapt faster to threats and opportunities;
better sharing of expertise available;
clarify functional responsibilities.

Change vectors
Continuous improvement of processes
A change strategy aims to:
expand research and development to achieve technological
excellence;
improve performance in terms of costs and lead times;
Improve the quality of goods and services;
Involve suppliers and customers in the selection of structures
and processes.

The context of organizational change:


change
external pressures:
increasing the speed of information
processing
rapid transfer of innovation in a market

internal environment of the organization:


staff turnover and lack of motivation
low productivity

But how do we manage change?


Managing change is itself a phrase that has at
least two meanings:
1. adoption of changes in a planned, structured, organized. The
aim is to implement an efficient methods and procedures in an
organization which is in full swing.
2. reaction, the response to the changes that the organization
does not control (e.g. changes in legislation, climate change,
social or political, competition, changes in economic relations,
etc.)

There are issues


At the heart of change management lies the
"problem of change":
It is uncertain when the future happens based
on the current state tools

Did we use the right tools?

Large-scale or small-scale
Individuals or groups of individuals
Single directions or different
departments
Throughout the organization or only on
certain parts of the environment in
which the organization operates.

Raising the issue Why?"


The purpose of addressing questions like
"why" is to reach the crux of the matter - to
find new and better ways of addressing
issues.

Raising the issue What?"


What are we trying to achieve?
Which indicators will signal success?
Which standards will apply?

Raising the issue "How?"


The problem of change is often expressed, at
least initially, as a question of "how?

Inside resources or outsource?


Choosing the right tools

Ask questions!
How do we get people to be more open, to assume
more responsibility, be more creative?
How do we make this organization become more
innovative, more competitive and more productive?
How do we raise more effective barriers to entry
between us and our competitors?
How do we draw our suppliers?
How we can reduce the life cycle of a product?

References

http://ec.europa.eu/enterprise/policies/innovation/policy/index_en.htm
http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=intro
Toole, Andrew A. (2011) : The impact of public basic research on industrial
innovation: Evidence from the pharmaceutical industry, ZEW Discussion
Papers, No. 11-063;
http://www.econstor.eu/bitstream/10419/51353/1/672465248.pdf
Henry Chesbrough, Open Innovation Where Weve Been and Where Were
Going
http://www.iriweb.org/Public_Site/RTM/Volume_55_Year_2012/JulyAugust_2012/Open_Innovation_Where_We_ve_Been_and_Where_We_re_
Going.aspx