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

A transformation means an extreme psychological or character change.Transformational Stages in Butterfly

A Business transformation --- is a major management initiative that attempts to align the technology initiatives of a company more closely with its business strategies and vision; and help innovate new business strategies. The degree to which a company can implement new initiatives to support changes in business strategy is known as business agility. Business transformation is achieved through efforts from the business and IT sides of the company.

A busniess transformation --- is a process by which an organization achieves and maintains operational and competitive advantage by Changes in technologyChanges in operational concepts (Tactics, Techniques & Procedures)Changes in organizational structure (Roles & Responsibilities)Any combination of these three.

A business transformation may be planned or forced.

Rapid technological changesEver increasing competitionEver- increasing education and awareness of customers Ever- increasing and fast changing needs of customers

Align transformation goals with business vision and strategiesEstablish the proper metrics (measures) to monitor implementation of transformation processDevelop the roadmap & key activities to be performed for transformation. Plan for major changesPlan and accumulate resources required for transformationDesign effective communication and involvement strategies Design flexible control system

Three Stage ProcessIntroduction of Major ChangesConsolidationSustenance & Growth

A. Introduction of Major Changes The business transformation may require some major changes as under:Changing the culture of organization Investment in transformational technologies and rapidly transitioning those technologies into operational systemsProcess & Systems Re-Engineering Enhanced Training Major Quality Improvement

ContdIntroduction of Major Changes Making changes to roles & responsibilities so that it can harness the power and synergy of its peopleIncreased functional integrationBoard reconstitutionOpti-sizing and VRSInvestments in international WOSEncourage creativity and innovation

B. Consolidation (Second 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. Sustenance & Growth (Third 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 thinkEmployees speakEmployees act & respond

Examples : Transformation in Railways

Examples : Transformation in Railways