GI Net 10 - Ensuring Sustainability in Organizational Transformation

Media Partner :
Ensuring Sustainability in
Organizational Transformation
10th roundtable discussion of
Global Indonesian Network
Prof.Dr.Hora Tjitra,
Executive Director of Tjitra&associates
Tuesday May 7th 2013

Ensuring Sustainability in Organizational Transformation / May 2013
Agenda
2
1 Change is Business Survival
2 Research Methodology and International Best Practices
3 Strategic Planing:Transformational Framework

!
CHANGE
IS
BUSINESS
SURVIVAL

Ensuring Sustainability in Organizational Transformation / May 2013 4
The
Challenge
of
Sustaining
Pro?itable
Growth

The
Challenge
of
Sustaining
Pro?itable
Growth
Having one good year is easy ...
In any given year 40% of 25.000 companies
studied grew sales faster than GNP and profit faster
than sales.
...But achieving continued profitable growth is the rare exception:
93% of the same companies failed to do so over 8 years.

Doing
Business
the
Right
Way
is
about
Managing
Change

Doing
Business
the
Right
Way
is
about
Managing
Change
Main Purposes
of Doing Business
Growth:
Sales & Market Share
Profit:
Cost & Efficiency

Doing
Business
the
Right
Way
is
about
Managing
Change
Main Purposes
of Doing Business
Growth:
Sales & Market Share
Profit:
Cost & Efficiency
Internal and/or External
Driven Change
Strategy
Product
Technology
Regulation
Globalization
Competition

Types
of
Organizational
Change
6

Types
of
Organizational
Change
Culture/People
Strategy
Structure
Technology Products
SOURCE:Based on Harold J.Leavitt,“Applied Organizational Change in Industry: Structural,Technical,and Human Approaches,”In New
Perspectives in Organization Research,ed.W.W.Cooper,H.J.Leavitt,and Shelly II (NewYork:Wiley,1964),55-74.
6

Picking
the
Right
Transition
Strategy:
The
STARS
Framework
7
Source: Based on Michael D.Watkins,Picking the rightTransition Strategy
(Harvard Business Review,Jan.2009).

Picking
the
Right
Transition
Strategy:
The
STARS
Framework
7
STARS Framework is a model for assessing business situations and helping new leaders figure
out how to tailor their strategies and themselves accordingly.

Picking
the
Right
Transition
Strategy:
The
STARS
Framework
7
STARS
Framework
SStart-Up
Assembling the capabilities to get a new
business or initiative off the ground
T
Turnaround
Saving a business or initiative
widely acknowledged to be in
serious trouble
AAccelerated Growth
Managing a rapidly expanding business
RRealignment
Reenergizing a previously successful
organization that now faces problems
S
Sustaining Success
Coming in on the heels of a highly
regraded leader with a stellar
record of accomplishment
STARS Framework is a model for assessing business situations and helping new leaders figure
out how to tailor their strategies and themselves accordingly.

“Global”
Research
Approach
in
Six
Countries
Global Change Alliance (GCA)
• All consultancies of the GCA work on the basis of a Senior Expert
structure of consultants
• All in all the GCA-platform comprises about 125 people
• Our work is based on the congruence model of organizational change
(developed in the USA)
• Our partners are:
- C4 Consulting, Germany (Duesseldorf)
- Ascend Partners, France (Paris)
- Comma Consulting, Great Britain (London)
- Veritas Partners, LLC, USA (New York)
- Tjitra&associates, China (Shanghai)
• www.globalchangealliance.com
Zhejiang University
Hangzhou, China
Atma Jaya Catholic University
Jakarta, Indonesia
Columbia University
New York, USA
Tjitra Management Consulting
Hong Kong ■ Shanghai ■ Jakarta ■ Hangzhou
9

Data
Analysis
Approach
:
Grounded
Theory
10
What & Why
Grounded Theory is a disciplined set of practices to ...
• Explore a new domain or topic
• Keep an open mind while conducting a rigorous analysis
• Work in an area without a defining theory
• Applicable to qualitative or quantitative data
Strengths
• Theory is strongly ties to data (“grounded”)
• Theory is continually tested through constant comparison
• Data-collection is guided by theoretical sampling
• Highlights the agency and responsibility of the researchers

International
Best
Practices
11
• One Team,One Voice
Strategy realignment for an international joint venture
in high-tech engineering industry
• Org 2010
Global strategic change and reorganization of
a leading European manufacturing company
• Increase Competitiveness by Enhancing BU Strategy
Reorganization of an European-Chinese joint venture
in high-tech engineering industry
• Be Ready for Next China“Aufschwung 2013”
Organizational development strategy setting up and
implementation for a leading European machinery company
• Sustain Business Success
Strategic Realignment for an international joint venture
in manufacturing industry
• ...

Change
Framework
I:
Strategic
Planning
13
Stages of Change
(WHY and WHAT)
Change Leadership
(HOW and WHO)
Get the Buy-In
from the Top
Strategic
Planning
Sustainable
System
One Team
One Voice
Bergaul
Leadership
Tools
Passionate
Learning

STRATEGIC
Framework
of
Organizational
Transformation
14
Vision
Strategy
New
Company
Reality
Organizational Structure
Process & System
Information
& Communication
Culture
• Organization Structure
• Organizational Interface
• Reporting Line
• Communication line
• Feedback / Dialog
• Conflict solution
• IT system
• Controlling
• Workflow and Process
• Corporate culture
• Mindset
People
• Qualification
• Role Understanding
• Willingness
Developed based on the concept from Nadler,D.A.andTushman,M.L.,Competing by design:
The power of organizational architecture.NewYork: Oxford University Press,1997

Creating
Competitive
Advantage
by
Organizational
Design
15
Strategic
Approach
Operational
Approach
• Combine top-down and bottom-up approaches
• Basic forms of strategic grouping
Activity • Function
• Work process
• Knowledge/skill/discipline
• Time
Output • Product
• Service
• Project
User/
Customer • Market segment
• User/Customer need
• Geography
Multi-focused
organization • Any combination of
Activity/Output/User

Good
Organizational
Design

Includes
Clear
Understanding
about
All
Levels
16
LEVEL
TECHNICAL
SKILL
LEADERSHIP
CAPABILITY
INDICATOR
OF SUCCESS
Head of
Department
Business
Recommendation
People
Responsibility
Business Impact
+ Results
Head
of Section
Technical
Design
Technical
Responsibility
Technical Impact
+ Effectiveness
Head
of Unit
Technical
Coordination
Task
Responsibility
Task Impact
+ Efficiency
Staff Task
Execution
Personal
Responsibility
Personal
ContributionManaging Self
Managing Team
Managing Function
Managing Business
Managing Corporation
BEST
PRACTICE

Transformation
from
Functional-‐Oriented
Organization

to
Strategic
Business
Units
17
BEST
PRACTICE
Product Division 1 into SBU 1
...
Business Unit
Manager
Business Partner of
Central Function A
Business Partner of
Central Function B
Sub-Product
Manager A
Sub-Product
Manager B
Sub-Product
Manager C
Cross-Functional Joint-Forces
in Strategic Business Unit

SUPPORTIVE
Process
and
System
18
Workflow and Process
IT Infrastructure
Learning and Development
Reward and Punishment
Consistent KPI
Portfolio Balancing
Strategic Planning
Risk Controlling
Controlling
System
MBO and KPI
System

CLEAR
and
TRANSPARENT
Information
and
Communication
19
Communication in WorkCommunication about Change
Communication Platform
• Multiple Platforms
• Feedback Mechanism
• External Intervention
Communication Style
• Open Communication
(based on aligned goal)
• Solution-Driven Communication
• Ensure Message Understood
Communication Content
• Clear and Detailed Content
• Adjusted Content for Different Levels
Information Flow
Transparent Process Clear Principle Data Explanation
Communication Approach
• Clear Communication
• Ensure Common Understanding
• Communicate to Bottom Level

Managing
People
Behavioral
Performance
20
Creates the foundation
for employees’
Motivation
facilitates the enhancement
of employees’
Ability
clarifies the role and responsibilities
for employees’
Perception
sets up the right
Situational Factors
for employees to perform
Performance Enhancement
Business Results
changed Individual Behavior and Results of employees
Individual Differences
Values Personality Perceptions
Emotions Attitudes Stress

Develop
QUALIFIED
People:
Role
clari?ication
based
on
organizational
structure
and
job
description
21
• Proactive
• In-depth Understanding of the
Business.
• Bring-in functional (technical)
expertise to business solutions.
• Ownership
• Highly Involvement
in Daily Business Activities
• Final Performance
is the Business Results.
• Strategic
• Long-term perspective from
market to product.
• Get the big picture and
Balancing the trade-off.
Planning
Leading
Resources
Controlling Organizing
Performance
• Human
• Financial
• Raw Materials
• Technological
• Information
• Attain goals
• Products
• Services
• Efficiency
• Effectiveness
Use influence to
motivate employees
Select goals and
ways to attain them
Assign responsibility for
task accomplishment
Monitor activities and
make corrections
Daft, 2003
From Specialist (Function & Business Unit) to Generalist
BEST
PRACTICE

Develop
QUALIFIED
People:
Competence
enhancement
by
assessment
and
development
22
BEST
PRACTICE
Assessment
1

Feedback & Development Plan
Assessment result feedback and discussion Development plan draft and finalization
2

Intervention & Review
3

Team learning Mentoring Coaching Training
Half-year review workshop Annual review workshop
Identify core
competence
Design assessment
format and tools
Conduct
assessment

RIGHT
Mindset
and
Way
of
Doing
Things
23
Corporate
Culture
Individual
Values Behavior
Corporate
Values
Values,Behavior and Corporate Culture

Corporate
Core
Value
Implementation
Process
and
Method
24
Action What do we need?
Possible barriers Success measurements
Develop clear action plan Explore necessary and possible resources
Identify possible barriers Define measurement anchors
Value Implementation
• An effective corporate communication is key factor to implement the core value.The management should:
Value implementation process
Value implementation method
• Core value is the essential and enduring tenets
of and organization.It is as natural as you breath.
• People learn and behave the corporate value
through different steps.
Start
Finish
Understand the corporate value system
Memorize the value statement and behavioral anchors
Agree and support the corporate value
Behave following corporate value
Breath with corporate value
Live
Do
Believe
Remember
Know
BEST
PRACTICE

Thank You
visit us at http://globalindonesian.net
Contact
Us
at:
Hong Kong:
31/F,Tower One,Times Square
1 Matheson Street,Causeway Bay,HONG KONG
香港銅鑼灣勿地臣街 1 號時代廣場一座31樓
Phone +852 2824 8521
Fax +852 2107 3699
Hangzhou:
Suite 810,Guangyin Plaza, 42 East Fengqi Rd.,
Hangzhou 310010 P.R.CHINA
中国浙江省杭州市凤起东路42号广茵大厦810
Phone + 86 571 8763 1203
Fax + 86 571 8763 1210
Jakarta:
Menara BCA 50th Floor,Jl.MH.Thamrin No.1
Jakarta 10310,INDONESIA
Phone + 62 21 2358 4616
Fax + 62 21 2358 4401
Shanghai:
1F, No.1388 Shan Xi North Road, Putuo District,
Shanghai, 200060,P.R.China
中国上海市普陀区陕西北路1388号一楼
Phone +86 21 6149 8264
Fax +86 21 6149 8001
Contact Person:
Stacey Octaviani
Phone + 62 21 2358 4616
Fax + 62 21 2358 4401
Email:s.octaviani@tjitra.com

GI Net 10 - Ensuring Sustainability in Organizational Transformation

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