CHANGE MANAGEMENT IN VOLATILE ECONOMYPRESENTED BYAPARNA ,DEVESH SHUKLA ,HARSHAD , SWIKAR ,HEMANTH

AGENDA

What is change management? Activities contributing to effective change management Soft and hard side of change management DICE for change management calculation What is volatile economy – Indian Situation CASE STUDY – TATA motors

What is Change management

Change management is a systematic approach to dealing with change both from the perspective of an organization and the individual. 

Aspects of change management

Adapting Controlling Effecting

ACTIVITIES CONTRIBUTING TO CHANGE MANAGEMENT Motivating Change Creating Vision of Change Developing political support Managing the transition Sustaining momentum

MOTIVATING CHANGE

Motivating change and

creating readiness

Sensitize organisations to

pressure for changeReveal

discrepencies between current

and desired statesConvey credible

positive expectations

CREATING VISION FOR CHANGE

Constructing envisioned

Future

Bold and valued outcome

Desired future state

DEVELOPING POLITICAL SUPPORT

Developing political support

Assessing change agent

power

Identify key stakeholders

Influencing Stakeholders

SUSTAINING MOMEMTUM

Current State

Desired Future State

Transition state

Activity Planning , Change management Team

SOFT & HARD SIDE OF CHANGE MANAGEMENT

Culture , leadership , Motivation and communication – These are soft sides of change management .They are necessary but not sufficient.

Hard Side – This determines outcome of any transformation initiativeD - Duration 1 – Very short duration project , 4 –

When there is time between milestones

I - Integrity 1 – Team is lead by highly capable leader , 2,3 – Intermediate capability, 4 – Team lacks on skills, alignment to goal

C - Commitment 1 – eagerness to take change, 2 – just willing , 3, 4 – reluctant or strong reluctance

E - Effort 1 – project <10 % extra work , 2- 10 -20% extra work , 3 – 20-40% extra work , 4 - > 40% work7 – 14 (WIN ) , > 17 – Unlikely to succed

What is volatile economy – Indian Situation

Demonetization More FDI in India IT Sector Bad loan’s problem

CASE STUDY – TATA MOTORS

Tata Motors, division of one of the largest business houses in India has grown significantly over the last 64 years since its establishment in 1945

 During the period 1995-1998, the commercial vehicle business had been doing well and Tata Motors grew at 30-40 per cent.

Then came the downturn in the economy and the market for com mercial vehicles suddenly shrank by 40%.

Tata Motors moved to the offensive by refocusing its investments on less cyclical products, including light commercial vehicles, buses, and spare parts; making a successful entry into passenger cars.

Timely change by M.D.RAVI KANT, Cost reduction strategy ,modify products to low costs with rival bench marking

Youth role in Change management

The whole cost initiative came from one of the breakfast meetings at an operation in Pune.

10 % cost reductions was agreed upon after team meeting with seniors. After this, the young employees to put together a bigger team from

Jamshedpur and Lucknow, to include representatives from sales and marketing, and spend ten days working on the plan.

That was the defining moment because if they had tried to go only through the top, they might not have succeeded as well, and the transformation might have taken much longer.