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Leading Positive Change
Dr. Chandan VichorayBE, MBA, Ph.DAssistant Professor, DMT, SKNEC, NagpurEmail: [email protected]
“The changes in new models should be so novel and attractive as to create
dissatisfaction with past models”- Alfred P. Sloan,1922
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Change• The only permanent thing in
life
• Has a great impact on all aspects
• Can be positive as well as negative
• Can help develop strong personalities
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Change Management• Managing Change is as important
as any other function
• Relates survival to the dynamic environment present around you
• More Psychological Parameter than technical
• Leaves you defeated if adaptation is not there to Change
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The Process of Positive Change
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Lewin’s Force Field Analysis Model
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An Example of the Kurt Lewin Model
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Resistance to Change
Forces for
Change
Direct Costs
Saving Face
Fear of the Unknown
Breaking Routines
Incongruent System
Incongruent Team Dynamics
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Leading a Positive Change• Communication
• Training
• Employee Involvement
• Stress Management
• Negotiations
• Coercion
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Leadership and Change
• Initiate
• Self belief before changing
• Constant need to adapt to the dynamic environment
• Deterministic approach using Analytical and Psychological techniques
• Owning the responsibility for failures
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The System Approach to Positive Change
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The Personal Positive Change
• Understand your needs and values
• Understand your competencies
• Set career goals
• Maintain networks
• Get a mentor
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Nissan – A Case Study
• Nissan is a Japanese Automaker
• Was on the verge of bankruptcy
• Taken over by Renault
• Trouble with Nissan was High Debt and plummeting market share
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Nissan – A Case Study Contd…
• Carlos Ghosn, given the charge of Nissan
• Identified problem with Nissan by Carlos Ghosn was no apparent urgency of Nissan Managers to react
• Ghosn’s Challenge was to act quickly and yet avoid the resistance to an outsider
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Nissan – A Case Study Contd…
• Ghosn formed 9 cross functional teams of 10 middle managers each
• Gave them the task of identifying innovative proposals for a specific area within 3 months
• Each team was empowered with Authority to form subteams with additional people
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Nissan – A Case Study Contd…
• More than 500 middle managers and employees participated in the Nissan Revival plan
• The start was slow but steady
• Ghosn reminded them of the desparate situation and injected them with the sense of urgency
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Nissan – A Case Study Contd…
• Three months later, an audacious plan was submitted which said:
• Closing of three assembly plants• Eliminate thousands of direct and indirect jobs• Cutting the number of suppliers by half• Reducing purchasing costs by 20%• Cutting company’s debts by half by liquidating
fixed unused assets• Introduction of 22 new models within next 2
years
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Nissan – A Case Study Contd…
• Ghosn accepted all the proposals
• Result: A profit making Nissan within 12 months after a gap of 7 years
• Ghosn went on to become the President of Renault
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References• McShane, Steven L, Ann Von Glinow, Mary, Sharma,
Radha R, “Organizational Behaviour”, 3rd Edition, Tata McGraw Hill
• Luthans, Fred, “Organizational Behaviour”, 10th Edition, McGraw Hill International Edition
• Robbins, Stephen P., “Organizational Behaviour”, 11th Edition, Prentice Hall India
• http://www.change-management-coach.com/
• Wikipedia.org
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Thank You