ByProf. (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 changeTeam building for change managementWhat are internal driving forces for technological change? ExplainManaging 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 all-inculsive 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 comeptitionEncouraging customer-orientationEncouraging training and coachingEncouraging quality consciousnessImproving communicationEncouraging team workImproving participation of work forceCan reduce conflicts by problem-solvingHelping and encouraging for better productivityCan encourage creativity in an organizationHelping 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 launchAttainment of quality leadershipAttainment of new product / technological leadershipA 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 levelAs an employee, as managersThis 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 ideasNew product development & its commercialization ( innovation)ProductivityImprovement in quality Overall technological advancement / development

People lever in organizations can be utilized / harnessed by:Ensuring proper communicationPromoting education & trainingCreating right organizational cultureSeeking participation of employees Introducing rewards / incentivesEncouraging 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 etcCommittees 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 kaizenTeamworkPersonal disciplineImproved moraleQuality circlesSuggestions 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 self-managing, 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 areasChanging structureChanging physical settingChanging peopleChanging 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 technologiesEmergence of new, hybrid or improved technologies

External Factors Leading to Technological Change Overall increase of stock of technological knowledge of a nationTechnological advancement and progress in the specific industryGovernment may change the structure of competition by easing entry normsGovernment may open up the national economy and integrate with international economy Spinoff of technology or technology diffusion from one industry to another industryMay be necessitated by changes in government rules and regulations

contd External FactorsEmergence of disruptive or breakthrough technologies and innovations whcih may change the technology within particular industry or nationInternal Factors Leading to Technological ChangeImprovement 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 portfolioSome of the older, hazardous, unsafe, ineffeicient inappropriate technologies may be required to be phased outFirm 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 leaderChanges in consumer requirementsIncreasing or adding more features to the product or serviceDesire to tap new markets or new market segementsLack of availability of spares, components.Controlling and reducing maintenance costsControlling and reducing process wastages and defectives generationControlling and reducing processing and production costsIncreasing efficiency of operations Gaining competitive edge

Characteristics of Technological ChangeIt 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 designChange in process design

Business transformation means aprocessof profound & radicalchangethat 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 changesRomanelli & 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 mis-aligned. 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 streamsDefine the team & leadership make sure that firm has right people at right placesDevelop the roadmap & key activities to be performed for transformation. Plan for major changesRe-design systems & structures to provide for flexibilityRe-design communication systems

Contd Re-design control systems and MISEstablish the proper metrics (measures) to monitor implementation of transformation processDevelop consensus / buy-in across the organizationDesign suitable involvement/ engagement strategies for all stakeholders including employeesPlan and accumulate resources required for transformation

Introduction of Major ChangesConsolidationSustaining for Growth

A. Introduction of Major Changes The business transformation may require some major changes as under:Board reconstitution, Reconstitution of guiding/ leadership teamProduct/ Project portfolio restructuring Process & systems re-engineering Major quality improvement programRadical 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 systemsCross-border investments & alliances including research collaborationsEncouraging creativity and innovationMaking changes to roles & responsibilities so as to harness the potential and energy of its people

ContdIntroduction of Major Changes Increasing integration & collaborationOpti-sizing and VRSEnsuring implementation of best practices, benchmarks, technology leadership frameworks etc Changing the culture of organizationUsing 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 & rewardsCreating 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 & rewardsCreating 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 parametersCorporate initiatives on Sourcing, Channel and Service Requiring leadership with accountabilityLeveraging reach & service business potentialSenior mangement commitmentIncreased integration Focus on performancePrioritization of efforts

C. Sustaining for Growth (Last Stage) Transformation may be sustained through:Ever-increasing emphasis on mission assurance Senior mangement commitmentFurther improving integrationReviewing and improving business strategy Sustaining cost & quality optimisationReinforcing 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 interconnectEmployees act & respondEmployees create value and manage

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