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ASSIGNMENT

ON
STRATEGIC

CHANGE

MANAGEMENT

SUBMITTED BY
James Smith
TO
THE INTERNATIONAL COLLEGE OF BUSINESS STUDIES

IN

PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF POST


GRADUATE DIPLOMA IN MANAGEMENT STUDIES (PGDMS).

COURSE LECTURER
David Read
DATE: 29/09/2014

Abstract
This report is study of implementing Enterprise Resource Planning product in Corning India and the
strategic changes involved. We will be discussing the need and the factors driving the change along with
the resource implications of not responding to change. We will be mentioning the different models of
change and its relevance to the current economic situation. Strategy to involve stakeholders in the
change management planning and to deal with resistance will also be discussed. In the end of the report
we will be mentioning about change models and the implementation method in the organisation and
the measures to monitor the progress of change process.

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Table of Content

1. Introduction --------------------------------------------------------------------------------------------------- 4
2. Objective ------------------------------------------------------------------------------------------------------4
3. Need for strategic Change ----------------------------------------------------------------------------------5
3.1 Factors driving the need for change ----------------------------------------------------------------5
3.2 Resource implications of not responding to change --------------------------------------------5-6
4.

Models of strategic change --------------------------------------------------------------------------------6-10


4.1 Relevance of models of strategic change to organisations -----------------------------------10
4.2 strategic intervention techniques in organisations ---------------------------------------------11

5.

Systems to involve stakeholders in the planning of change ----------------------------------------11-12


5.1 Change management strategy with stakeholders ------------------------------------------------12-13
5.2 Evaluation the systems used to involve stakeholders -------------------------------------------13
5.3 Strategy for managing resistance to change ------------------------------------------- -----------13-14

6. Model for change------------------ -----------------------------------------------------------------------------14


6.1 Plan to implement a model for change --------------------------------------------------------------14-15
6.2 Measures to monitor progress ------------------------------------------------------------------------15
7. Conclusions --------------------------------------------------------------------------------------------------------16
8. References ---------------------------------------------------------------------------------------------------------16-17

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Introduction
Corning Incorporated is the world leader in specialty glass and ceramics. Cornings operations in India
are represented by Corning S.A.S India branch office. Corning India implemented Scala 5.1 ERP in year
2000.Now, the business operations of organisation has grown and so its complications. Corning hired
new staff and at technology end their requirements started growing, which are not fulfilled by the
Current ERP.As an ERP Consultant of Sonata Software Ltd.(From July 2007 to Aug 2010) , we did the
business process study and suggested corning India to go for a new ERP, which can fulfill their growing
business needs.
Implementing an ERP is always a strategic change process, and it involves all the stakeholders. In this
report, we have not only studied the needs for bringing change but have also studied the various
aspects of the processes which are involved in change management. We have suggested strategic plan
to involve the stakeholders and to handle the resistance .We also mentioned the implementation plan
and the measures to monitor the progress of the project.

Objective
The study of the Implementing Enterprise Resource Planning in Corning India, and the strategies
involved to handle this change management process.

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Planning & Implementing the Change


3. Need for strategic change
Corning India implemented Scala 5.1 ERP in 2000, to automate their business processes of finance and
logistics .As the business grew, the company started diversifying its business by entering into new
product and market segments. The available IT system is not in position to deliver the growing needs of
business. The Scala5.1 ERP has a very small base in India and henceforth there are not easily available
resources that can provide support on the product. The principal company which acquired Scala, i.e.
Epicor has now phased out Scala 5.1 and has started marketing their new products iscala 2.2 & 2.3
respectively. Currently, there are certain issues with the management related with the IT ,which cannot
be solved with the current ERP, for example import of sales order& purchase order in the system,
detailed description and classification of new products to name a few. It is becoming more time
consuming to enter the daily transactions and entries in the system than the manual process and
henceforth delaying the month end closing process of the company, which in turn effecting the
reporting processes.

3.1 Factors that are driving the need for strategic


There are various new ERP versions with totally new functionalities available in the Indian market. These
products have vast resource pools and are available at a reasonable price. The product companies are
offering a wider range of services which are not available in Scala 5.1.
Corning is big MNC and they have IT compliance issues, which is also one of the major reasons for
planning of new ERP. The new ERP products available in market deliver wide range of functionalities and
are highly scalable. They can meet the demands of future business needs as well. The current ERPs (SAP
all in one, Oracle e-business suite R12) available in market have the functionalities for the current issues.
The company has to depend on the freelance consultants in case of any Scala issues, which in turn
becoming more time consuming and expensive. By implementing new ERP, corning will get specialized
resources to help their business and also yearly support. The competitors of corning are using more
specialized and latest ERP system, so it is also effecting the decisions to go for a new ERP.
3.2 Resource Implications of not responding to change
There will be great implications on the corning business and operations if the resources dont
responding to the planned change. The resources involved in this change are the business heads, the
core implementation team, the end users and the IT infrastructure that includes both hardware and
software. The implications will be as follows:
Lack of IT infrastructure, will cause difficulty in taking the implementation forward and may
ultimately become the cause of failure
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If the business head doesnt involve fully in the decision making, then the implementation
period will stretch and it will not be able to meet the deadlines and the go live period.
If the core team members of the implementation team are not fully dedicated then it will
become difficult for the external consultants to map the business processes on the system. It
may also result in some wrong map, which in turn will cause issues for the business after going
live.
If the end users dont take the proper training, then they will not be able to complete their daily
task on time without any issues. They may also enter wrong entries, which will further
complicate the business processes.
If the transactions are not entered by the end users properly then it will cause problem in the
month end closing process, resulting in late reporting.
Organisation will lose business because of late responses from the end users.
Organisation will face issues with the auditors, as it will become difficult and time consuming to
find solution for wrong transactions
Failure of implementation will cost a high capital loss to organisation
4. Models of strategic change
Kolbs Model of Individual Change
In 1984 Kolb published his learning styles model. Kolbs model of learning styles has four distinct
learning styles which are further based on four stage learning cycles also known as learning cycles.
Knowing a person's learning style allows learning to be orientated according to ones preferred method.
The brief description of Kolbs model is as follows:

Diverging (Feeling and watching): People with diverging styles are sensitive and they prefer to
watch rather than to do. They have broad cultural interests and tend to work in groups , to listen
with open mind and are usually imaginative and emotional.

Assimilating (watching and thinking): They are the people with logical approach and concise and
give more importance to ideas and concept than people. They are the one who excel at
understanding wide-ranging information and organizing it a clear logical format.

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Converging (doing and thinking) : these kind of people are interested in technical tasks than in people
and interpersonal aspects. They tend to solve issues based on their past experience and learning.
People with a Converging style like to experiment with new ideas, to simulate, and to work with
practical applications.

Accommodating (doing and feeling): these people dont work on logical analysis but believe on their
intuitions. They tend to rely on others information and then carry out their own analysis. They work
in teams and actively try out new ways to achieve the objective.

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Kotters 8 Step Organisation Change Model


A professor at Harvard Business School, John P. Kotter suggested eight steps of change model in an
organisation. They are as follows:

Create urgency: To spark the initial motivation to get the change moving, urgency needs to
be created. This happens by identifying the potential threats and developing a future
scenario.

Form a powerful coalition: to lead a change, all the influential people, the team and the
management need to be convinced and a coalition is to be formed.

Create a vision for change: defining a clear vision helps people to understand the objective of
the change and it gives them motivation as they know what they are trying to achieve.

Communicate the vision: By communicating with the key person and every stakeholder of an
organisation honestly about the vision, a momentum is being created to achieve that Change.

Remove obstacles: if any structure or processes is becoming problem for the change then
define a strategy to remove those barriers. Clearing obstacles can empower the people who
are required to execute the vision of change.

Create short term wins: Short term targets need to be created, as success of achieving these
short targets will keep the team and people motivated to keep the momentum for the
required change.

Build on the change: Kotter argued that most of the change fails as success is declared too
early. With every success a new plan and strategy to be formulated to continue that success
and the area of improvements.

Anchor the changes in corporate culture: Continuous effort need to be ensured to keep the
change in every aspect of the organisation. The change should be brought in the corporate
culture and should often be discussed and talked about by the leaders in the organisation.

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Source: http://www.dudleyconsulting-inc.com/changemgtmodel.html
Tuckmans model of team change
Dr. Bruce Tuckman published his four stage model of team change in 1965.It consists of:

Forming: This is a stage where the whole responsibility of change lies on the leader, as individual
roles and responsibilities are unclear and team members are highly dependent on leader for
guidance and direction.

Storming: In a team decisions does not come easily in start. Every member seeks a position in team
with respect to other members and leader in order to avoid challenges later. This is very important
part of the processes as this defines and enables common understanding of purpose and roles to
be achieved.

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Source: http://www.infed.org/thinkers/tuckman.htm

Norming: During this phase agreement and consensus is largely formed among the team. Roles and
responsibilities are clear and accepted. The major decisions are taken by team discussions and
agreement.

Performing: This is the final stage of team development. The roles are clear now and team knows
clearly about the vision and the goal they are working upon. The team works in a collective and
mature manner to achieve the goal.

4.1 Evaluation of change management models in the current economic scenario


As its mentioned in kotters model that a change should be taken as process. It starts with creating
urgency in the organisation and forming a clear vision which incorporates the goals and objectives. By
properly communicating the vision and taking every member of the organisation in confidence the
change process becomes more viable and feasible. As corning is planning to implement a new ERP, it
requires a complete planning at the organisation level, since this change is going to impact overall
organisation. Everyone in the organisation will be directly or indirectly related or affected by this
change. So a clear vision needs to be communicated among staff and management. A proper planning
has to be done to remove the expected obstacles and a strategy needs to be formulated. The change
should be planned in a stage wise format with short term goals to keep the motivation of staff alive. And
with every success a new plan should be formulated to take that change ahead.
While discussing about organizational change model, we cant give less importance to team model and
the individual ones. As its the team which initiates and facilitates the change in an organisation, so it
has a major relevance, because if the team doesnt work and fails in its project then the change cant
reach at an organizational level and hence causing failure of change process. We should also consider
the individual model of change as well, as the change is successful when it every individual accepts the
change and changes accordingly. So in todays scenario organisation has to take into account all these
three models of change while deciding the strategic change.
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4.2 Assessment of Strategic Intervention Techniques in organisation


Strategic intervention techniques helps organisation to find their own core of strengths and is helpful
doing the process of change. Organisations need to be changing conscious and henceforth they need to
develop human resource techniques to involve everyone and prepare them for the change. By adopting
strategic intervention techniques model, organisations can build bridges of success and advancement
with all workers cooperating as team mates as well the managers.
Some of the organisation development Intervention techniques are:

Role playing: It is basically a contingency plan to prepare a group in absence of the superior or
the other team mates. Role playing is a prescribed way of behaving.

Team Development: It is regarded as the very foundation of developing work group maturity
and effectiveness. Setting goals, priorities and to examine the relationship between among the
people doing work are few of the objectives of team development.

Survey feedback: Nadler (1997) argued that recipients must see feedbacks as a stimulus for
action rather than final statement. Information should be gathered by personal interviews or
survey questionnaires and should be analyzed and be used effectively.

Inter group problem solving: Joint meetings should be held regularly to avoid inter group
conflicts. During such meetings members are allowed to speak and discuss freely and sort out
their differences.

Process Consultation: The process involved should be thoroughly discussed and consulted with
every party concerned with. It is generally done to end the conflicts among different teams and
people involved and to prepare them for the change.

5. Strategy to involve stakeholders in planning the change


As corning need to do implement a new ERP, so a proper strategy has to be planned to involve all the
stakeholders of this project. The Stake holders are:

IT director and team

Finance head and team

Procurement head and team

Sales head and team

Supply chain management head and team, including warehouse team

Admin team

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Managing Director

The activities which need to be undertaken to involve these stake holders in planning change are:

Devising a communication strategy which includes : Meetings, E-mailing,


Face to face interaction, interview, Voting and Questionnaire

Send formal invitation to all the top management involving all the business heads for
the meeting on the discussion of bringing strategic change in organisation.

Formal presentation to the major stakeholders on the needs and factors for bringing
the change in organisation.

Prepare the minutes of meeting and forward it to all the members, requesting for their
feedbacks.

Once feedbacks are received, plan a strategy resolve the issues raised and convince
them for the need of change.

A formal team needs to be formed and a change leader should be chosen to initiate the
change. The team should have members representing different business processes.

5.1 Developing a change management strategy with the Stakeholders


A widely accepted theory of management suggests that, within a group individual behavior and
emotional responses to a given circumstances are different from each others. Similarly responses to
organizational changes are different, some are early adopters and majority of the stakeholders are
reluctant to accept the change while there always some who are resistant to change.

Keeping these stakeholders in consideration, a strategy needs to be formulated. We are considering


common accepted strategies of management, they are as follows:

Leverage Strategies: This is generally applied to the early adopters with significant influence to
develop their support and utilize their influence to accelerate the change among the reluctant
majority.

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Engagement strategies: The focus is on the influencers of the reluctant majority and the goal is
to convert them to early adopters and is leverage their influence among those with less interest
and commitments

Containment strategies: These strategies are basically to target those resistant laggards who are
unable to adapt yet because of their high skills, knowledge and abilities they still contribute to
the change.

Outplacement Strategies: The virulent and influential resistant laggards are prime candidates for
outplacement. These stakeholders are given an early opportunity to demonstrate their
acceptance and compliance with the change process but, failing that, they face unambiguous
consequences.

5.2 Evaluation of the systems used to involve stakeholders in the planning of change
As we see, implementing an ERP involves the top management and also the end users, so a proper
strategy needs to be formed to involve everyone in the change process. Change process can initiate only
if the stakeholders are well communicated and educated about the necessities of bringing the change.
They should be well informed, educated and be engaged in the decision making. Their feedbacks should
always be taken in account, and all this can be possible only by devising a proper communication
strategy. Every stakeholder involved should always be kept in loop on the progress of the project.
Stakeholders should always be invited when a key decision need to be taken. Acceptance of their
feedbacks makes them feel motivated and engaged and then they become the part of the project.
Presentation to the stakeholders should always be given on the current and accurate information to
keep them updated and to avoid the thoughts by them of being neglected.
5.3 Strategy for managing resistance to change
Resistance to change is part of change process. It is something which can have both positive as well
negative impacts on the organisation. Kotter & Schlesinger (1979) explained the importance of strategy
to handle the resistance in the organisation. As per their theory, the principles are:

Education and Communication: By properly educating and communicating with the concerned stake
holders about the change, their misconceptions and confusions can be sorted out without which
they are full of questions and worries. People tend to accept the change once they become aware of
the change.

Participation and involvement: A strategy need to be devised to facilitate the participation and the
involvement of the stakeholders in the change process. This gives them motivation and sense of
involvement makes them feel part of the change to which they dont try to become a resistance.

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Negotiation and agreement: When an organisation goes for a strategic change, then lots of things
are at stake. And it becomes equally important to move towards change by forming an agreement
among all the members and the management through proper negotiations.

Facilitation and support: By facilitating and supporting the people who are initiating and managing
the change process, the motivation level of people are increased and boosts their confidence which
in turn becomes example for others as well to be a part of change and taking it forward.

6. Change Model to implement the ERP in the Organisation


To implement the ERP in corning, we are using the change management theory given by Pettigrew and
Whipp. The Five main factors of change which we are considering are:
1. Environmental Assessment: Corning needs to define continuous monitoring of both the internal
and external factors of organisation
2. Human resources as assets and liabilities: Employees should know that they are seen as valuable
and organisation trusts the.
3. Linking strategic and operational change :Building of operation activities can lead to new
strategic changes
4. Leading the change: By creating the right climate for change and by setting agenda not only for
the direction of change but also for the vision and values.
5. Overall coherence: A change strategy should be consistent and provide a competitive edge.
Corning should devise an implementation plan of ERP, by incorporating these five factors of
change.
6.1 Implementation Plan
If the implementation of the change model is not well planned then the change will always jeopardize in
between and will result in failure. We are considering a widely accepted change implementation plan
suggested by Johnson, scholes and Whittington. The steps are as follows:

To gain support of key decision makers and facilitators by educating them about the planned
change

Make a full detailed plan with schedules and stages of the change process, agreed by all the
business managers and the decision makers

Plan to obtain staffs commitment to making the strategic plan work

Involving the end users in the ownership of the plan

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Rewarding the end users on plans success

Train the staff and develop new skills which will contribute to the effective implementation of
plan

By keeping check on and record the process

Evaluating the change at different stages

Studying the weak areas and improving them in specified time

Monitoring and reviewing the process on weekly and monthly basis.

6.2 Measures to monitor progress


Monitoring progress of change process is important as it measures the activities and performances
related to it. The progress can be monitored by devising various performance metrics and systems,
which will measure the success of organisation towards achieving the goal. We are suggesting some of
the widely accepted Performance measurement systems to monitor the progress, these are:

Balance scorecard: its a performance management approach that focus on various overall
performance indicators, often including customer perspective, internal-business processes,
learning and growth and financials, to monitor progress toward organization's strategic goals.

Benchmarking: It is basically looking outside the organisation to examine how others achieve
their performance level and to understand the processes involved. Benchmarking facilitate
improved performance within the organisation and the key business processes. The objective of
benchmarking is to ideally understand and evaluate the current position of a business in
relation to "best practice" and to identify areas and means of performance improvement.
Reviews and evaluations: By setting up model of weekly and monthly reviews of the process, to
keep an eye on the status of the progress. Evaluation will help to find out the weaknesses or the
strengths of the project.
180 and 360 degree feedback: By setting up this model of feedback for the individuals and the
team, management will be able to get the actual performance and efforts of each and every
resource involved with the project.
Setting up Milestones: Milestones of projects are generally set to keep a track on the progress
of the project.

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Conclusion
Bringing Strategic change in an organisation has to be a well planned process. The change can only be
successful if all the elements of the change process are considered which involves the stakeholders in
the planning process and also strategies to handle the resistance. A well thought and implementation
process should be evolved with proper measures to monitor the progress of the change process which is
ERP implementation here.

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