Omega Systems: An Exercise in Change Management

Chairman Mao Consulting Group, Ltd.

COMPANY PROFILE

Chairman Mao Consulting Group, Ltd.

• Kat Calalay. Oxford University • Mika Escalante. Cambridge University • Sharon Lumpias. Harvard University• Dennis Martinez. West Point Military Academy• Oliver Mendoza. Massachusetts Institute of

Technology• Maurice Navarro. Yale University • Ruth Padilla. Princeton University • Patty Saberon. UCLA • Mari Tuason. FEATI University• Ana Mae Tuazon. Asian Institute of Management

Presentation Outline

I. Review Findings

II. Assessment

III. Recommendations

The Team conducted a quick assessment of the organization in terms of the following elements:

1. Strategy: to maintain and build competitive advantage over the competition.

2. Structure: who reports to whom.3. Systems: daily activities and procedures to get the job

done.4. Shared Values: "superordinate goals”- evidenced in

the corporate culture and general work ethic.5. Style: the style of leadership adopted.6. Staff: the employees and their general capabilities.7. Skills: actual skills and competencies of the employees

working for the company.

The Review Process

McKinsey-7s-framework

ELEMENTS CURRENT Issues

Strategy Development of products that cater to children 10 yrs-up and adults 20-30 yrs old

Focus on Innovation and R&D

Losing market share due to unfixed software glitches and delays. (Systems)

Structure There is an existing Organizational Chart

Managers do not coordinate. (Structure and Skills)

Systems •Planning meetings to agree on systems req.

•Blue print•Software is developed•Revision due to new systems requirement

•Launch the product

• Late submission of design requirement

• Constant revision due to endless introduction of new system requirements

• No time to fix software glitches before the launch.

• Constantly changing launching schedule.

ELEMENTS CURRENT Issues

Style Delegating, because top management views staff as highly competent.

No one is overseeing the entire process

Staff VP R&D is new.VP Marketing post is vacant.Staff are frustrated.

Staff are frustrated (Structure and Skills)

Skills Very competent staff, skills adequate based on the demands of their position.

Shared Values Life is a Game Enjoy It!

Focus is on technical competencies.

Poor coordination across all levels. (Structure)Poor interpersonal relations.

PROJECT OUTCOMESBy the end of the consultancy.1. Strategy: Strategic plan to maintain and build

competitive advantage over the competition.2. Structure:  Enhanced organizational structure. Clear

delineation and coordination between management and employee roles.

3. Systems: Enhanced policies and procedures that will guide management and employees in achieving new vision.

4. Shared Values: Established a common vision and goals for the company.

5. Style: More pro-active direction-setting, decision making and problem solving

6. Staff: Staffing analysis / Rationalization7. Skills:   Identify core competencies of staff that will

implement the new vision. (e.g. stronger marketing, advertising and promotions)

Strengths:Superior product quality

Talented, creative personnel

Weaknesses:Weak visioning from the top

Lack of teamwork/poor coordination in the middle Lackluster marketing, high product cost and delayed

product release

Opportunities:Niche marketing - “mature

market” (Gen Xers)Quality signature branding –

luxury product

Threats:Sony Playstation and

Nintendo Wii Poor market reception for

Omega products

Vision/Mission

To make Omega Systems into the “Armani of Gaming Consoles” and the ultimate in adult gaming systems

The AGILE Approach Work as one team. “We’re-all-in-this-together”

mindset

Work in short iterations. No delineation of phases – all work happens concurrently within each iteration

Deliver something each iteration. Progress is made by adding one or more small features in each iteration.

Focus on business priorities. Create a niche

Inspect and adapt. User-generated feedback

CEO

VP R&D

Manager – Software Design

Manager – Hardware Design

VP Productio

n & Engineeri

ngQuality control

Manager – Arcade

Manager – Home Video

VP

Marketing

Manager – Market Research

Manager - Promotion and Sales

Manager – User

feedback

VP for HR

Social Media

Promotions

“Planning is everything. Plans are nothing.”

- Field Marshall Helmuth Grafvon Moltke