Example cases

Learn valuable lessons from these organisations: 

In 2003 VBi Ltd faced considerable financial risk particularly at the time it was formed out of a merger; however the organisation had a strong customer base and a good trading history. The biggest threat to success was the incumbent workforce who needed to be treated sensitively during the times of change. The cooperation of the organisation's best workers needed to be secured to bring about a complete change of culture. VBi had 150 employees and shed 20 in initial restructuring, and while some of the staff embraced the prospect of change others were hostile. VBI's management underwent a steep learning curve about change management resulting in a new understanding of the need to be inclusive, ask employees for feedback and ideas, and involve them in implementation giving them a sense of ownership. A senior team was appointed to work across all disciplines which provided much needed managerial and strategic direction. At the conclusion of the reorganisation process VBi had modernised its manufacturing practices, achieved a major cultural shift, and reduced its employee size to 115 people. At the time of writing in 2006 VBi enjoyed a healthy annual turnover of £9m [17] 

Change management and local conditions

An anonymous UK organisation *Alpha Build" was compared with three others and it was found that traditional project management routines had hampered initiatives to introduce new practices. This led to a new tool being introduced to help project managers formalise planning processes and to score ongoing project achievements. Unfortunately the initiative interfered directly with current project management routines which depended heavily on local conditions. Hence the attempt to standardise project management methodologies created a conflict between head office and project managers at remote sites. The study concluded that when managing change in project-based organisations it was important to locate the scope, and the impact, of change initiatives in terms of the degree to which they interfered with existing project management practices, and the degree to which they disrupted the balance of knowledge and power within organisations.[18] 

Change Management brings dramatic turnaround

Subsequent to a major Lever Faberge restructuring exercise performance challenges were approached by developing a "strategy into action" philosophy. The corporate strategy was shared among the core leadership team and then cascaded throughout Lever Faberge.  Key performance indicators (KPI) and scorecards were used to measure individuals, teams, and departments and results were communicated in such a way that every employee understood their part in achieving the desired objectives. KPIs also related to employee reviews and bonuses. The programme was treated like a marketing campaign with each of the key improvement areas branded and given a logo. The programme was communicated to employees through a number of channels including the factory's intranet, team and departmental meetings, and posters and leaflets located around the factory. As a result of this a dramatic turnaround was experienced in customer service performance, manufacturing innovation, and in the culture of the organisation.[19]

Change management improves value creation

Significant organisational changes were carried out at Samsung's corporate R&D centre. The changes involved:

• Clear strategic direction being provided along with the establishment of close relationships between business divisions, from planning, through ongoing management, and commercialisation of R&D projects.
• R&D projects being restructured around core technology areas e.g. digital technology, nanotechnology, optoelectronics, energy, and biotechnology, al of which were closely linked with Samsung's business opportunities.
• Sophisticated R&D management processes being developed using Design For Six Sigma (DFSS) which enabled Samsung's Development and Manufacturing groups to communicate efficiently and to share DFSS documentation forms and terminology.
• The use of Matrix management systems.
• Researchers being armed with both technological expertise and business acumen. The R&D centre was thus better aligned with Samsung's business units which improved value creation leading to 80% of R&D projects reaching commercialisation in 2004, compared with 61% in 2002 and 18% 1997.[20]

Change Management and an extended leadership team

At Pacific Gas and Electric Co., fundamental organisational and cultural changes were initiated which affected almost every aspect of PG&E operations. An Extended Leadership Team (ELT) was formed to cascade communications out to all employees. The ELT members, which were made up of directors through to supervisors, served as informal opinion leaders and were a critical part of the success of the organisation-wide changes. The ELT communications programme included:

Field Forums held  twice yearly for sharing ideas;

• Quarterly teleconference meetings focusing on current priorities/pressing issues;
• Organised, informal lunches that paired officers (vice presidents, senior vice presidents and the CEO) with local ELT members;
• News Flashes/E-mails: providing updates and talking points to answer employee questions;
• Web Site for ELT members, providing timely and consistent information about critical company issues and transformation updates. These initiatives increased employee engagement in PG&E's change communication process.[21