Managing Change in Organisations

Master of pargonntage Administration Assignment Programme Title University of Wales MBA (Project Management) educatee Full Name Raji Shakirudeen Damil atomic number 18 Student STU number STU32417 Student Email Address emailprotected com Module Name Managing Change in Organisations Word Count 4273 words complaisance Dead stemma 16 July, 2012 TABLE OF CONTENTS CHAPTERPAGE CHAPTERS CHAPTER 1 TASK 1 3 5 * Introduction3 * Nature and mountain range of Change3 * Major Drivers of Change4 CHAPTER 2 TASK 26 10 * Key Issues and Ch severally(prenominal) toldenges6 * Action cast 9 CHAPTER 3 TASK 311 14 * Change death penalty 11CHAPTER 4 Task 415 16 * Change success 15 * Conclusion 16 REFERENCES 17 CHAPTER 1 TASK 1 1. 00INTRODUCTION Background Operational wastes come with a circuit of address and it is generated in many forms within an practicable corpse. The intention of any profit fashioning organisation is to maximize customers values and yet minimize the waste. Aim and St ructure The appellation eachow for rate argonas that will be compelled by the derive surgery solicitude TPM as an return to the existing musical arrangement. It will analyse the key contents and benefits of TPM execution of instrument.It does withal seek to come forthline the scope of the replace, relations with key issues and providing actions intends victimization relevant moulds. The assignment will evaluate the smorgasbord baby-sits drill during the implementation phase, flier in milest wizs the multifariousness success and provide adequate feed plunk for on success save. 1. 10NATURE AND SCOPE OF CHANGE group meeting issue targets will not be enough any much to judge take coiffeance if records of customer complaints, rework or defects, everyplace work, all over processing, delayed arsenal, human and equipment segmentations, administrative delays caused by the bureaucratic setup and low-toned team spirit.Total performance commission TPM is an bel iefive performance pillar with nine key components that is designed to all in all re-engineer the scheme, integrate functions and take functional expertise into the value creation process. In particular, it is focused on backup frontline personnel and frontline exacters to eliminate operative waste that will guarantee the optimization of all manufacturing and achievement processes. The TPM pillar descriptors to be used be 1. Autonomous Maintenance This pillar aims to improve equipment reliability finished equipment c be. . Planned Maintenance This is a step by step process for improving facility criminal tending. 3. upbringing and Training This pillar enhances focused knowledge and capability building. 4. Focused Improvement This pillar provides a integrated method to identify and prevent troubles. 5. Early Management This pillar is directed towards the development, design and implementation of bare-assed techno lumbery and strategy that will cope with the future. 6. Qu ality Maintenance This pillar aims to bring in a system incapable of producing quality defects. . Office This pillar focuses on ensuring tilt and error free business processes. 8. asylum Health Environment This pillar aims to ensure elimination of unsafe behaviours and conditions. 9. tumble Factory This pillar focuses on LEAN Thinking particularally applied to enteristics circumspection. NCE Introduction (2009, pg 8) 1. 20MAJOR DRIVERS OF CHANGE Key drivers of transmit are listed and depict as follows Improved merchandise performance Production performance is greatly affected by unremitting auto and human breakdown.It will be necessary to implement a comprehensive shift management programme and strategic maintenance management system to improve the system. Re-engineered Inventory management Factory inventory tracking system has been poorly managed, therewith impacting on consumables and spare parts management. Maintenance management system is undermined or sometimes ignor ed as a outcome of poor inventory keep. Inventory management unavoidably to be re-structured to speed up the existing system processes, by providing an effectual system application tracking software that will eliminate the threat of delay and low productivity.Optimizing logistical management painful materials stock management continues to be affected by recently de fitries and poor stock management system. Production blueprints are disrupted, production volumes are not met and consumers are faced with products scarcity. Early management is demand and implementation of a comprehensive system application tracking software that will re-structure the logistical management system to cope with increasing activities. Minimised operational cost Defected products are separated during production and routine quality ceases.Products are also return from markets for quality reasons, thereby resulting to rework and reprocessing which will increase the operational cost of producing a prod uct more than ones. Total quality management strategy will be required at the shop floor. Customer delight Series of customer complaints buzz off been save on products defect, short counting, late delivery and products scarcity. Scarcity provides the advantage to competitors to fill the vacuum arrive atd by our ineffectiveness and poor operational management. food market growthMarket projection bemuse shown a steady 10 % annually increase, which means that the jibe business will be tripled in the next 10 years (MBS, 2009). This forecast has proven to be realistic and achievable from the growth trend record in the past ten years. NCE document (2009) Total performance management system will enhance manufacturing and production performance, positioning us for the future prospect. outperform in configuration Factorys existing quality, safety and environment system standards and guidelines are shortly managed independently.As these systems are interrelated, they will be integrat ed into a single management system. This will allow a simplified process for ossification, auditing and improved focus on the specific compliance aspects. Government policies moldiness be to the full adhered to enjoy an enabling environment and imbibe stovepipe practices within the organisation. Creating Competitive advantage articulation of the main drivers of change is the presence of a strong competitor that is working hard to take over the market. In the modern world of advanced technology, trade secrets cannot be the exclusively advantage that must be possessed.All competitive gaps that are created must be closed by ensuring availability of quality products to the market, delighting consumers at low-priced price. Improved marketing strategy will be appropriate. CHAPTER 2 TASK 2 2. 00KEY ISSUES AND CHALLENGES This chapter is expected to identify and define major issues and challenges that puzzle resulted to the generation of operational waste. The cause and effect analy sis (Fishbone plot) will be adopted to define the major problems, brainstorming will be achieved applying the affinity map that will process categorise related issues and identify the major causes of the problem through Pareto.Problem Definition Operational wastes have been preserve in so many forms across all major departments. Waste is not anymore modified to tangible and physical objects, further has spread deeply into key aspects of occasional operations. chastening to meet production target is a major waste, which can result to increasing production cost, products scarcity and quality issues hereby posing a huge risk to the system. Brainstorming What are the major causes of Operational waste that have been determine in the system?Collective ideas are highly needed at this coiffure of problem solving, where key players with common objective brainstorm and come up with pool of ideas or suggestion that could lead to the actual cause of operational waste. After a long bra instorming session and thorough investigation, the change management team have come up with list of realizable causes of operational waste generated from log sheets across the departments. The group contains different member from different school of thought, which have resulted to the initial generation of a large list of possible causes of the challenge.The list was streamlined at hit-or-miss and major possible causes where picked and listed in the table below System Failure need of operational knowledge Increased production cost Customer compliant Rework / Defects Production targets stroke dim quality management system Lack LEAN mindset despicable logistics management lamentable inventory management Ageing equipments Low production return & performance Raw material summercater Finished product late delivery Poor production output Manual operations Poor maintenance management system Less allegiance & Engagement Defected products Equipment Breakdowns Safety issues Poor com munication Poor mindset / Behaviour Network disruption & Failure patternure 2. 0. 01 Random selection of major problems The Affinity diagram will financial aid regroup and elucidate listed problems into related categories in the 6Ms format as illustrated below People Machinery Ageing Equipment Low production output Poor operational knowledge Less commitment Low production performance Safety issues Poor production output Poor communication Poor mindset / Behaviour Manual operation Equipment breakdown Material Raw material variation Rework / Defect SystemPoor logistics management Production target failure Late delivery of finished products Checks / Control Poor maintenance management Network disruption Weak quality management Increased production cost Process System failure Lack of LEAN mindset Defected / Rejected products Customer complaint Poor inventory management Figure 2. 0. 02 Affinity chart for Operational waste Identify major causes The problems illustrated in the affinity chart in figure 2. 1. 01, shows a list of possible causes of the problem, categorising them into key six major categories that could be the summary of the possible causes of the problem.The cause and effect diagram will provide a clearer picture and additional insight to further link the possible problems from respective sources showing the potential primary and aidary source of the problem, ground on the findings of the change team. The major problems have been intelligibly set and linked into various sources in a cause and effect diagram as shown in figure 2. 1. 02 below, it is imperative to analyse further the oftenness of occurrence of these problems utilise Pareto. The referring log sheet shows the rate of recurrence of some problems more than the other and clearly defines the effect on daily operations. Figure 2. 0. 03 Cause and Effect diagram for operational waste Figure 2. 0. 4 Pareto chart for operational waste Referring to the Pareto chart above in figure 2. 1. 03, i t shows clearly that low production output and production target failure have occurred more frequently than low production performance and others with same frequency of occurrence. The occurrence of most of the listed problems seem on the high side and needed to be treated as such, having recorded low incidence on problems like manual operation, raw material variation and network disruption which should not be underrated, has it is fake that most of the major problems recorded could have triggered them as remnants.This invariably indicates that when the bigger problems are completely resolved, it takes care of the ones with low occurrence. The machinery category is the highest contributor of the operational waste, ranging from the machine condition to operations, but seconded by the people category that have in actual sense contributed the largest character of the problems that have made the system unhealthy. Checks, system and process category have their own share in terms of occ urrence recorded, this makes it difficult to ignore any of the listed problems no matter how little, because it could develop to a compound and epidemic challenge that will take longer time to solve.Operational waste action plan brisk by Change management team. Summary Operational waste has been generated across the 6 categories of challenges recorded in the organisation, translating clearly the areas that require swift response to change and improvement. The problem solving techniques adopted have identified the root cause of the operational waste and the major area that requires concentration. It is imperative to prepare an action plan to tackle the listed challenges. Solution The main goal is to implement Total performance management TPM into all functions as the solution to operational waste. 2. 10ACTION PLAN Goals Measures Responsible Target DateTo provide a unique maintenance strategy (Autonomous and planned maintenance). Perform daily operational review at the shop floor, weekly operational review at the management level to track improvement and report achievements. Report weekly maintenance plan and execution. Measure line performance and efficiency against set target. OperationsOperationsManagement January, 2013January, 2013January, 2013 To lay more emphasis on personnel training and development. Get training feedback from trainees. Subject trainees to knowledge checks and exercises. Track personnel improvement against line performance. Use performance evaluation to appraise personnel. HR January, 2013 To improve in quality management system. go out in-line quality checks system. Record defects and investigate the root cause. Embark on monthly market visit. Record crapper sampling quality. Communicate quality status monthly. Quality assurance January, 2013 To be safety conscious at all time Commence SHE observation and report area weekly safety status. Perform random safety checks. Carryout monthly safety drill to check and re-communicate ke n. Operation / Management January, 2013 To introduce early management admission. Provide detailed template on early management programming. Provide feedback from early management plan and communicate the achievement on implementation. Management April, 2013 To implement LEAN thinking, system and mindset. Outline system layout in LEAN concept and map out areas according to compliance. Track awareness level in all cater. Check LEAN mindset considerateness in reporting and follow-up. Report cost saving from LEAN implementation. Operation / Management. July, 2013 To focus more on continuous improvement. List areas of continuous improvement, outline changes and business advantage. equate changes before and afterTrack improvement progress against global objectives. Operation / Management. November, 2013 Fig 2. 1. 01 Action plan for the implementation of TPM CHAPTER 3 TASK 3 3. 0 CHANGE IMPLEMENTATION Change implementation requires strategic and logical approach which can only be analysed using basic change management models that clearly describes the steps to effective implementation of change. The change implementation will be evaluated in more than one change management model to better outline the model that will be more effective to this particular change implementation. Kurt Lewin and John Kotter models of change management will be critically evaluated as the options for the implementation of TPM. The models will be compared to properly decide on the best option the managers can adopt during implementation.Kurt Lewin poseur Lewin (1951) baby-sit gives simpler overview of change implementation, although it is assumed that conditions exist because of competing forces that are in equilibrium. To effect any change, the force must be adjusted. Cited by F. Ashton Blog (2010) Change or Transitional Refreeze Unfreeze Lewin model comes in 3 submits namely unfreeze, change or transition and refreeze. The idea is focussed at the implementation of change in an organisation that is already accustomed to a particular mindset and ideology. Existing mindset, ideology, system, attitude and performance TPM in full integrated as a guide to excellent performance. Implementation of Total performance management Fig 3. 0. 1 Lewin Change model Kotter Model Kotters (1996) 8 steps model of change is a top down approach that provides a wider range for change implementation. This change model is linear and it predicts the change processes in steps that identify core areas that should never be neglected if a change where to be effective. Fig 3. 0. 02 Kotter Change model Source The Change Management Blog (2009) Model Comparison At the first stage of Lewins model of change, leadership comes up with the unfreeze strategy that will depart or disengage the existing system practices.It targets the root cause of the problem, by providing the best assumption using the force field analysis to factor out the pros and cons before considering implementation. U nfreezing is carried out at the leadership level, based on assumptions from the analysis. Unlike the first stage in Kotters model that clearly emphasise on the need to first establish a sense of urgency from top-down, by carrying along all members of staff from the inception of the change implementation, sharing with them the reason change is necessary at the time and also help to identify the protagonist and antagonist to the change. Although the force field analysis applied in unfreezing stage also consider the driving and refraining force for the change, but it is clearly based on assumptions.The Kotters model starts change communication from the first step of implementation, where preliminary information have been provided for all to brainstorm about, not streamlining it only to the leadership. The second step is aimed at constituting a powerful coalition that will form the formidable, experienced and result focussed change management team. Rather, in Lewins model change managem ent team are selected are at earlier stage based on managements decision. Creating a fancy for change is the third step in Kotters model, where all the ideas, thoughts and brainstorming that have been collected by the change management team are streamlined and integrated into companys objectives and vision. Perhaps no idea is foolish and the collective enquiry to solve major issues gives employee the sense of ownership and esponsibility towards achieving the collective goal. Lewins model distorts an existing system with the intention of introducing or improving a system. This idea and vision comes from the management, who have practically analysed the major problems based on their experiences and knowledge of the companys objectives. The transition stage, which is Lewins second stage for change modelling provides the actual implementation of change. This stage is the roll out phase of change to all employees official launching. This stage seems to be the hardest as the existing ide ology, mindset and processes are liquefy either to extinguish or modify to a bran-new system.The fear of the unknown and resistance may be recorded. That is why Kotter and Lewin emphasise more on communication at this stage. Communication becomes the tools for change campaign. At this stage continuous training and coaching is very key to acceptability and embrace. Kotter identifies communication as a day to day affair and ensuring that antagonist are converted and the supporters are maintained and developed to live the change. Lewins transition stage encompasses communication in all forms. Perhaps might take more time than anticipated to achieve the level of acceptance needed, it requires consistent coaching and training to get the buy-in of all employees.Kotter insist that after communication have been initiated, though it is a continuous process but will definitely meet some deadlocks, ranging from the unacceptability, fear of the unknown, structures that do not support the cha nge and the vision. The fifth stage identifies the major deadlocks and provides the honorable approach to solving them. Lewins transitional stage give a lot of room for neglect of some major deadlock identification, hereby living some elements like virus behind, that could develop to catastrophe in the future or even hinder this change process. Lewins closing curtain stage is the refreezing stage, stability establishment is the main objective once the change has been effected and accepted as part and parcel of the system. The intention is to strengthen and reinforce the change implementation, allowing for full integration by all functions.The new change is freeze and continues to monitor progress of implementation, bearing in mind that change will be continuous and can never be permanent. Theoretically, Lewin target the adjustment of the force field to adequately buy-in employees to acceptance and embrace of the change. The change is integrated into the companys structure and sys tem and refreezes as the new outlook of the organisation. Part of the reason the Lewins model could take more time to be fully integrated is the lack of comprehensive practical application that influence acceptance. It is important to target a feedback appliance that will encourage a swift change embrace.Kotters sixth step encourages the need to create a short-term wins that will motivate employees further. Employees deserve first hand information on the benefits recorded so far to elevate their confidence and also management to gain more support from all. The best way is to set milestones where employees achievements can be celebrated and recognised. Kotter believes in continuous improvement, that is his main model in the seventh step. Change cannot be cast on stone that will not require further improvement it requires building upon to achieve maximum effectiveness. The short-term win has various advantages, part of it is the opportunity to see other areas that need improvements a nd explore other options to achieving set objectives.Lewins refreeze does not show the required detail to record areas of further improvement, because the mindset of the employee already fixed on the refreeze syndrome. Managers should consider the Kotters model as it also adopts the concept of refreezing, but in a different manner. He believes that when change is cleave completely into the system, it should become parts and parcel of the organisation, like a revised constitution that have been adopted, but requires further improvements. It re-emphasises the need to continuously maintain the support of the management and all employees to avoid falling back to the initial problem. TASK 4 CHAPTER 4 4. 00 CHANGE SUCCESSTo assess change management effectiveness, leadership needs to focus on measuring the progress of the change implemented to ensure they are moving on the right direction. To achieve this effective implementation, milestones and measure are required to effectively measure the progress and performance of the change. The performance measures are categorised in 7 stages namely 1. Internal Performance Assessment. When change is assumed to be completely implemented, the organisation needs to be certain of these assumptions. The reason they involve an independent midland audit team to track change implementation progress, using the qualitative and quantitative monitoring approach in determining the level of compliance.Employee change appraisal survey is forwarded to all functions to get the right feedbacks. undivided functions will be audited and informed of areas that still require more attention, compliance and improvements. At this stage, the organisation is certain of the level of compliance and areas that requires more concentration before the pre- perspicacity and full assessment that will be carried out by external auditors. This usually takes about 3 months before pre-assessment. 2. Performance Assessment. It is important that a pre-assessment is through with(p) after the first nine month of change implementation to effectively measure the level of compliance and adherence to the new change.The outcome of each pre-assessment must define the status of the change as to what the goals are , where we are now and where we are going. The pre-assessment must also measure individual progress using a five-level commitment scale to monitor the commitment level of employees during implementation and then choose specific strategies to help individuals progress through the five levels. Level 1 Awareness Measure the level of awareness in all functions. Level 2 Acceptance Measure level of acceptance. Level 3 screening Measure skill level of employees. Level 4 Adoption Measure level of adoption and reflection in employees daily activity. Level 5 Advocacy Share and accept feedback amongst employees.The full assessment (gate opening) will be done six month after pre-assessment certification and correction of other identified areas of imp rovement and a yearly post-assessment will also be carried out. 3. Perform Customer Satisfaction look back This is the next step of assessment performance provide a gauging mechanism to monitor customer contentment as a tool to benchmark with acclaimed internal operational success. Feedback is vital from the customers and are closely monitored, recorded and acted upon immediately. This is a continuous exercise. 4. Measure the Volume of Defects We cannot hide from the fact that perfection is nearly impossible, but we must put measures in place to track and check level of amount of rework or defected recorded compare difference with the previous system.System must be in place to ensure that defects are be recorded as they occur and subjected to root cause analysis to check if we still maintain difference problems and follow is the rectification. Key performance indicator KPI is to see reducing trend in the volume of defects generated over a period of time, showing the percentage of improvement. 5. Measure the Volume of Failed Changes When measuring success rate of changes cosmos implemented, we must be able to define what is and what is not a successful change, and the criteria being used for each definition. SMART (specific, measurable, achievable, relevant and timely) criteria must be in place where changes are reviewed for success.The KPI is to see the level of compliance increasing, showing the percentage of improvement. 6. Measure the Services Performance Service performance is wide to measure in one piece, so functions shall have a different KPI to measure their performances which is then cascaded to the organisation. Internal and external auditors perform assessment exercise to check impact on indicators, compliance and adherence to the operational documents. 7. Calculate the devolve on Investment The main purpose for the implementation of Total performance management is to delight our customers, create competitive advantage and enhance operational p erformance. The change implementation comes with cost and it must also buzz off remarkable financial benefits.We must measure and record the saving generated across all functions. Source Mark, S (2008, pp 2-8) 4. 01 CONCLUSION To reduce operational waste to an acceptable state, the introduction of Total performance management is the solution. We have defined the major causes and the possible solution to be implemented. Solution comes with measures and deadlines, if achieved will provide the positive benefit that is targeted. The benefits from change implementation are targeted to continuously meet companys objectives in delighting customers satisfaction, creating competitive advantage and compliance. The objective is to maximise profit at the best minimum cost.Measure, milestone and deadlines are in place, which are guided by the application of renowned change management models to ensure the right approach to introducing a new change conforms to the companys culture and objectives. Effective application of the control and monitoring mechanism to track effective transition as illustrated in change measures have enabled the changes to be effective. We have tracked and recorded minor deficiencies which are a result at the acceptance stage of TPM have since been resolved. Positive feedbacks received from customers and remarkable records of decreased customer complaints, because of the new quality management check in-house that has guided quality production output. REFERENCES Woolnough, M. , 2009. Glossary for Nestle continuous excellence NCE document, Nigeria Pg 2 3 Ashton, F. , 2010. Lewin Model (K. Lewin, 1951). open from http//www. ashtonfourie. com Blog (Accessed 6 July 2012) Kotter, J. , 1996. Leading Change. Available from http//www. mindtools. com (Accessed 6 July 2012) Mark, S. , 2008. Measuring success- Ideas on how to show that real benefits are being delivered, Fox IT, Pg 2 8 Holger, N. , 2009. Change Model 3 John Kotters 8 stairs of Leading Change. Available from http//www. change-management-blog. com (Accessed 13 July 2012) Lewin Model. Available from http//www. change-management-coach. com. 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