FINAL

PROJECT
CHANGE
MANAGEMENT
Submitted to: MAAM TALAT REHMAN

Group members:
Fawad Haider
Azeem
Ayaz Malik
Komal
Salman

Change Management Final Project Report

Introduction
Fauji Fertilizer Bin Qasim Limited Plant site is a modern Urea and Di-Ammonium
Phosphate (DAP) fertilizers manufacturing complex located in Eastern Zone of Bin Qasim,
Karachi, with Head Office located at Harley Street, Rawalpindi.
Initially named as FFC-Jordan Fertilizer Company (FJFC), with FFC (30%), FF (10%) and
JPMC (10%) as main sponsors. The company was formally listed with stock exchanges in May
1996 and commercial production commenced on Jan 2000. In 2003 the company was renamed
as Fauji Fertilizer Bin Qasim Limited (FFBL) as Jordan Phosphate Mines Co. (JPMC) had sold its
entire equity in the company. Accordingly Phosphoric acid supply agreement with Jordan was
terminated. The company turned out to be profitable after 3 years i.e, by 2004 and declared
'maiden dividend' in 2004. Profitability has constantly been on the rise since then and 2007 has
been the most profitable year of the company. One of the milestones in the success of FFBL is
its accreditation of ISO certification, which was achieved in Mar 2006 for both the Head Office
and Plant site.
FFBL also have membership of industry association and trade bodies;

Rawalpindi Chamber of Commerce

International Fertilizer Association

The facility is designed with an annual capacity of 551,000 metric tons of urea and 445,500
metric tons of DAP, revamped to 670,000 metric tons of DAP.
Our Distinction
FFBL has been declared as Top Third Company amongst leading top 25 listed Companies
by the Karachi Stock Exchange (KSE) by acknowledging its performance.
FFBL is the only fertilizer complex in Pakistan producing DAP fertilizer and Granular Urea
thus making significant contribution towards agricultural growth of the country by meeting 45%
of the demand of DAP and 13% of Urea in domestic market.

Vision Statement
To be a premier organization focused on quality and growth, leading to enhanced
stakeholders value.
Mission Statement
FFBL is committed to remain amongst the best companies by maintaining the spirit of
excellence through sustained growth rate in all activities, competitive price, quality fertilizer
and providing safe and conducive working environment for the employees.

Organizational Structure:

MD:
Lt Gen Muhammad Zaki, HI, HI (M), (Retd)
Company Secretary
Brig Shaukat Yaqub Malik SI (M), (Retd)
General Manager Finance
Syed Aamir Ahsan
General Manager Plant
Mr. Anwar Mehmood Shahid
Head Supply Chain Management
Brig. Imtiaz Ahmed, SI (M), (Retd)
Senior Manager (Human Capital Management)
Brig Pervez Khalid, SI (M), (Retd)
Senior Manager (Admin)
Lt Col Muhammad Saeed, TI(M), (Retd)

Performance & Production

FFBL fertilizer complex is state of the art manufacturing facility with advanced Distributed
Control System for safe and efficient operation. The phosphoric acid being raw material for DAP plant is
imported from Morocco and initially stored in tanks at Port Qasim. Design capacity viz-a-viz actual
production of Plants is as under:
Manufacturing Plants

Production (Metric Ton / Day)

Original

Actual (Approx)

Urea Granular

1670

1920

DAP

1350

2230 (After Revamp)

Ammonia

1270

1570 (After Revamp)

Market Share
Recently, FFBL is making significant contribution towards agricultural growth of the country by meeting
45% of the demand of DAP and 13% of Urea in domestic market.
Competitors
Their competitors in the domestic market are:

ENGRO Chemicals Pvt. Ltd.

Fatima Fertilizer Company
National Fertilizer Development Company
Dawood Hercules

Key Environmental Issues

FFBL is facing a lot of environmental issue such as political, economic, technological issue.
POLITICAL ISSUES:
The political condition of Pakistan is very unstable, everyday there is instabilities in government
which cause problem for ffbl. FFBL also deal with international stakeholders, so for that
instabilities in government cause problems in making deal with ffbl. The overall image of
Pakistan also damaged by the political condition of Pakistan. The tax policies the trading policies
all effect the ffbl business.
Economic condition:
The economic condition of Pakistan is also instable, due to which world wide the value of rupee
depreciate day by day, which cause problem for ffbl to doing business. The petroleum prices
also effect the ffbl business, because day by day the instable petroleum prices effect the ffbl
business. shortage of gas is big problem for ffbl because for the production gas is required
without that manufacturing is not possible. So availability of gas is main issue which currently
ffbl is facing.
Technological issue:
As world moving very fast and technology is making advancement very fast. So for ffbl to
remain in the market it is necessary to adopt new technology. Because in market there is a lot
of competition and for maintain your value ffbl should adopt new technology.
As the major change which we observed is implementation of SAP(software). That is one of
major change and one of the most expensive software in market.

INTERNAL FORCES OF CHANGE IN ORGANIZATION

The internal environment of an organization refers to events, factors, people, systems,
structures and conditions inside the organization that are generally under the control of the
company. The company's mission statement, organizational culture and style of leadership are
factors typically associated with the internal environment of an organization. As such, it is the
internal environment that will influence organizational activities, decisions and employee
behavior and attitudes. Changes in the leadership style, the organization's mission or culture

can have a considerable impact on the organization .In FFBL there are internal forces which
push ffbl to apply change. That is structure and people. The people on top management
understand the importance of SAP in market and feel that for maintaining in market it is
necessary for implement SAP in organization.

Why People Resist Change and how resistance might be

managed
1. When the status quo is perceived to be satisfactory.
Resistance will be less if participants clearly understand the basic problem or opportunity and
the consequences to maintaining the status quo. Create a burning platform, outline a real or
hypothetical scenario about what will happen if status quo continues to be the norm.
2. When the purpose of change is not clearly understood.
Resistance will be reduced if provisions are made for participants to ask questions and give
feedback about the change. They need to know the why behind the what and the how. In
the absence of adequate information, people will invent their ownthis may lead to imaginary
problems.
3. When people become engaged in short-term, myopic thinking.
People resist change because they wont defer gratification and because they cant see beyond
the boundaries of their own worldviews. Resistance will be less if you can substantiate the longterm payoffs of the change effort and encourage participants to see the personal benefits to
the change.
4. When the change agent is not trusted or respected.
Resistance will be less if participants see that the change effort is supported and endorsed by
key opinion leaders within the organization. Do you have credibility? Have you EARNED the
respect of those affected by the change? Personality conflicts between the change agent and
participants may cause resistance to change. Treating people with dignity, respect, and integrity
helps in eliminating this type of resistance.

5. When those affected by it are not involved in the planning.

Resistance will be less if participants feel that the project is their ownnot one devised by
outsiders. Participants should be asked to contribute (knowledge, attitudes, suggestions,
feelings, opinions) to the change.

6. When those affected lack courage and self-confidence.

Change threatens our self-esteem. Resistance will diminish when we help people focus on
things they can control. By focusing on things we can control we can reduce the innate fear of
the unknown. As you help people successfully break down a major change into manageable
parts, you will help them develop the courage and confidence to proactively confront and
manage other aspects of the change.
7. When there is personal fear of failure to master new skills.
Resistance will be less if participants are given the appropriate training & education. Tell them
why you choose them (for what qualities) to be a part of the change effort. Implementing the
change on a trial basis may reassure the person that success is possible. Change on a trial basis
can reduce the fear of personal loss and give the people involved an opportunity to get more
facts about the change.
8. When there is a fear of personal loss of ego, status, power, or resources.
Change can step on the ego of the recipient it requires those who think they have arrived
to admit they have been wrong. Reduction in the skill required, the importance of the job, or
the responsibility of the worker involved may create insecurity and lead to resistance. Reassure
people of their worth to the organization. Resistance will be reduced when participants
understand how the change effort will further or contribute to their vested interests.
9. When work pressure is excessive and planning is haphazard or insufficient during the
implementation phase of the change.
Resistance will be less if the change is timed and planned well. When change comes as a
surprise people will resist it. Participants need time to evaluate change before it occurs. Those
affected should be informed well in advance. If a new change comes on the heels of a previous
change, particularly one that failed, you may be overloading the system. The timing for change
must be well thought-out.

10. When implementation strategies appear to be rigid and inflexible.

Resistance will be less if the change effort is kept open to revision and reconsideration if
experience indicates that modifications would be desirable.

Managing Resistance to Change

It is normal to experience resistance whenever there is change. Understanding that there will
be resistance to change will help you anticipate resistance, identify its sources and reasons, and
modify your efforts to manage the issues of change to ensure the success of
your change efforts. Resistance is actually healthy. Try not to react against it defensively. It is
good for you because it makes you check your assumptions and it forces you to clarify what you
are doing. You must always probe the objections to find the real reason for resistance. Many
times, it comes down to personal fear. As the leader, you must take the time to understand
resistance and you may have to come at it from several different angles before it is conquered.
You must understand what your employees are feeling, as well as thinking.
Ways to reduce resistance to change:
Involve interested parties in the planning of change by asking them for suggestions and
incorporating their ideas.
Clearly define the need for the change by communicating the strategic decision personally and
in written form.
Address the "people needs" of those involved. Disrupt only what needs to be changed. Help
people retain friendships, comfortable settings and group norms wherever possible.
Design flexibility into change by phasing it in wherever possible. This will allow people to
complete current efforts and assimilate new behaviors along the way. Allow employees to
redefine their roles during the course of implementing change.
Be open and honest.
Do not leave openings for people to return to the status quo. If you and your organization are
not ready to commit yourselves to the change, don't announce the strategy.
Focus continually on the positive aspects of the change. Be specific where you can.
Deliver training programs that develop basic skills as opposed to processes such as: conducting
meetings, communication, teambuilding, self-esteem, and coaching.

CHANGE And How They Help The Organization

Many companies are realizing that SAP solutions have become extremely important to their
businesses. This realization is arising from the fact that many Fortune 500 companies use SAP
systems extensively internally for their daily operations and reporting. So what exactly does SAP
stand for? It is an acronym for Systems, Applications and Products in data processing.
Over time, many companies start to discover deficiencies in their information systems
architecture. Most legacy business systems were made up of islands of automation separate
systems that handled some core business needs. There may have been systems to handle the
General Ledger, another to handle the sales processes, a separate system to manage the
manufacturing or production processes, etc. Data had to be exchanged between these subsystems in order to generate the reports that various levels of management needed to run their
operations. When there were errors or inconsistencies between these sub-systems, these
flowed on into the consolidation process and skewed the management reports.
SAP ERP systems Business Suite / R/3 and Business One are fully integrated business realtime systems. They enable transactions to be processed end-to-end and eliminate data
inconsistencies between sub-systems. Many companies replace their old business systems with
the best-of-breed ERP package developed by SAP.
The benefits of using SAP for your business are numerous. SAP delivers systems that are
modern and highly efficient. Their support infrastructure is unparalleled in the software
industry. In addition, SAP has developed industry-specific ERP solutions that address the needs
of over 28 industrial sectors. SAP is present in more than 120 countries worldwide. SAP has
managed to build up a client base of more than 12 million users worldwide. Those numbers are
estimated to grow as more and more enterprises jump on the SAP ERP bandwagon.
The main business benefit of using SAP is that you get a comprehensive set of integrated, crossfunctional business processes. Here are some other benefits of using SAP:
Align Strategies and Operations

Prior to the implementation of an SAP system, a thorough analysis of the current

environment is done. This is usually referred to as the As-Is analysis. All issues are
identified for rectification during the project. The short, medium and long-term
strategies of the business are identified, clarified and prioritized. All internal workflows
are aligned to enable the eventual effective use of the SAP system. In the next major
step, the future state of the business information system is specified. This is referred to
as the To-Be state. It is the responsibility of the project team and possibly consultants

to bridge the gaps between the As-Is and To-Be states to build a workable project
plan.

Enhance Productivity and Insight

The productivity enhancements arising from an SAP implementation can be

tremendous. Data is only entered once. There are no sub-systems to consolidate and
verify. Data can be forwarded to others within the organization by efficient workflows
using internal messages, emails, SMS alerts or other means. Operations can be
authorized and passed along for the next person to process. Employees can process
many transactions on their from various access terminals. This can include leave
applications and submission of expense claims. The overall reporting and analytics
environment is enhanced to a level that facilitates operation management.

Minimize Costs by Increasing Flexibility

In order to improve process standardization, efficiency and adaptability, SAP relies on

enterprise services architecture. SAP extends its business eco-system by extrapolating
transactions, information and collaborative functions.

Reduce Risk

Solve complex business challenges today with SAP, your trusted partner for long-term
growth, with over 30 years of experience working with organizations of all sizes in more
countries than any other vendor.

Improve Financial Management and Corporate Governance

Financial and management accounting functionalities combined with business analytics

offers the SAP user deep visibility into their organizations. Furthermore SAP increases
profitability, improves financial control, and manages risk.

Optimize IT Spending

SAP integrates and optimizes business processes as well as eliminates high integration
costs and the need to purchase third-party software. Use of SAP incrementally improves
cash flow and reduces costly borrowing.

Gain Higher ROI Faster

A business can deploy SAP by using rapid-implementation techniques which cost less
than half what traditional approaches cost. It is also possible in certain cases for
companies to reduce implementation time and costs by leveraging on preset defaults
and prepackaged versions available for specific industries.

SWOT Analysis
Strengths

Sole DAP producer in Pakistan

Ideal Location
Authority and Command
Product Quality
IMS and SAP Certifications
Health & Safety
Brand Name
Pricing Power

Opportunities
Unsaturated Urea and DAP market
in Pakistan
Forward Integration
Proper Research & Development
Innovation
New services and products

Weaknesses

Marketing
Lack of Training
Raw Material Import
Management
Online Presence

Threats

Competitors
Loss of trained staff
Depleting Natural Gas Reserves
Unstable Political/Economic
Conditions
Substitute Products

Strengths
Only DAP Producers in Pakistan

FFBL is the only fertilizer complex in Pakistan that produces DAP fertilizer. Thus makes
significant contribution towards agricultural growth of the country by meeting 45% of
the demand of DAP from entire country.

Ideal Location

Being located near sea port; FFBL enjoys an ease in transportation of raw material.
Phosphoric acid and UF-85 are the major raw materials that are being imported through
shipments Morocco and Jordon.

Authority lies with CEO and Chairman

All authorities lie with CEO and chairman. Theres a hierarchical reporting system of
problems. Junior Staff reports to the senior staff and this report can further go to the
GM, CEO or the Chairman depending up on the nature of the issue.

High Urea quality

FFBL product, granular urea (Sona Urea) has the cutting edge over the conventional Prilled urea
with the following superior qualities:

Cheapest among all nitrogenous fertilizers based on per unit cost of nutrient
Less acidifying than many other nitrogenous fertilizers hence most suited for high pH
soils
High concentration of nutrients makes packing, storage and transport costcheaper
Larger granular size
Greater granules strength
Minimum fines, dust and powder
Minimum losses in the air
Least caking property
Easy to spread in the fields
No settling on crops/leaves

IMS and SAP Certification

FFBL adopted IMS (Integrated Management System) in 2007 which integrated ISO9001,
ISO 18001 and ISO 14001; which is one of the milestone and later on the company has
implement the SAP software throughout the FFC and FFBL and it is considered to be
another great achievement for the company. The SAP implementation project was
kicked off in May 2009 and took 11 months for its completion. FFBL implemented 11
modules covering all the business processes of FFBL operations.

Health & Safety

FFBL maintains a safe workplace by following safety and health rules and practices.
Accidents, injuries, and unsafe equipment, practices or conditions are immediately
reported to a supervisor or other designated person. FFBL is committed to keep the
workplace free from hazards.

Weaknesses
Marketing being outsources to FFC

FFBL doesnt have its own marketing department; their products are being marketed by
FFC due to which they get their revenue after a week. It may also affect their sales due
priority based marketing.

Lack of Training

No proper training programs have been defined and conducted for managerial staff.

Raw Material Import

Urea and DAP production at FFBL largely depends upon the imports of raw material
including Phosphoric acid, sulfuric acid, sand, coating oil and UF-85. This increases their
reliance on imports.

Management Lies with Army men

Most of the management in FFBL is controlled by retired army officers who have army
mindset due to which the company faces difficulties in problem analyzing and problem
solving steps

Online Presence

The online market is essential for displaying information and selling products through
the web. A weak online presence can result in loss of opportunities. Especially, if
focusing towards the foreign market.

Opportunities:
Unsaturated Urea and DAP market in Pakistan

Demand for urea and DAP in Pakistan is higher than the cumulative production of all
urea and DAP producers in Pakistan; resulting in urea imports, to bridge up the demand
and supply gap. Therefore, there is an opportunity lies with all fertilizer manufacturers
to increase with their production to meet the market needs.

Forward Integration

FFBL can integrate forward to develop its own marketing staff as well as its own
distribution channels to maximize its profits.

Proper Research & Development

Proper Research & Development programs found a bright scope for the further
improvement of urea quality as well as for the development of new fertilizer products.
Also further determining the needs of local farmers, etc.

Threats:
Competitors

The fertilizer companies like Fatima fertilizer and ENGRO Chemicals(Pvt.) Ltd in fertilizer
market, pose an apparent threat for the market share of FFBL.

Loss of trained staff due to intervening competitors

The company staff is shifting to new companies in urea business as they are offering
better salary packages and facilities. This creates a window of opportunity for the
competitors to take advantage of a situation and to poach the executive talent and
skilled labor from the company. If this situation is not handled at the moment, the BEST
and BRIGHTEST may be the first to leave.

Depleting Natural Gas reserves in Pakistan

FFBL utilizes Natural Gas as the most important raw material for the production of
Ammonia; which is the major input for the production of Urea and DAP. Due to
depleting natural gas reserves in Pakistan the price of gas is constantly increasing which
poses a certain threat to fertilizer industries in Pakistan.

Unstable Political /Economic Conditions

Unstable economic and political conditions are largely effecting the agricultural
production of Pakistan, which subsequently poses a threat to the Fertilizer Industry.

Change Management and Leadership role:

The ultimate goal of change management is to engage employees and encourage their
adoption of a new way of doing their jobs. Whether it is a process, system, job role or
organizational structure change (or all of the above), a project is only successful if individual
employees change their daily behaviors and workflows. This is the essence of change
management - mobilizing the individual change necessary for an initiative to be successful and
deliver value to the organization.
People used to discuss the importance of "organizational change". "Change" is an
overarching term referring to the process or result of becoming different, while
"transformation" is a specific kind of change. The "transformations" tend to refer to changes
that are more radical and of a larger magnitude. These are not incremental and transitional
changes that involve merely fine-tuning the status quo. Instead, they are discontinuous changes
or paradigm shifts that involve redefining the organizational values, purpose, attitudes and
beliefs, and they frequently require a qualitatively different set of organizational habits, such as
in terms of strategy, leadership and culture. These qualitative changes in turn bring about
changes to existing organizational systems, structures, management practices, organizational
climate and technological innovations.
The change process brought about by a transformation is complex, non-linear, full of
uncertainty and open-ended. This means that the changes may happen at uneven rates at
different points in time, that there may be progress towards the desired objectives followed by
regression and then progress again, and that a simple action may lead to unintended
consequences. In support of this, there is some empirical evidence that the transformation
process may unfold in unpredictable ways and lead to unintended outcomes.
This perspective of change as a complex phenomenon is in contrast to the prevailing,
more traditional, theoretical paradigm of change as a simple and linear process which is

typically represented by a three-stage model by Lewin (1951) that involves unfreezing the
current system, changing, and then refreezing the new system. In the first step, the current
equilibrium is disturbed such that the status quo is recognized to be undesirable and there is
the motivation to change. In the second step, resources are mobilized to make the necessary
adjustments. In the final step, the system is stabilized at a new equilibrium so the new
behaviors are safe from regression. This model assumes that change takes place neatly and
predictably in a linear movement through the three steps.
People are at the heart of an organization. Thus, a good understanding of how changes
are typically perceived and experienced by people will help leaders of transformations play
their role more effectively. Importantly, leaders cannot assume that others share their
perspective of the transformation.
There is a whole system of people in the organization responsible for supporting
employees in making this change. From the highest levels of leadership to front-line
supervisors, effectively managing change requires a system of actors all moving in unison and
fulfilling their particular role based on their unique relationship to the change at hand.

Kurt Lewins Force field theory of Change

Kurt Lewin's force field analysis change model was designed to weigh the driving and
restraining forces that affect change in organizations. The 'force field' can be described as two
opposite forces working for and against change.

Kurt Lewin's force field analysis change model describes a similar situation. The force
field analysis is a method to:
Investigate the balance of power
Identify the key players involved in decision-making
Identify who is for and who is against change
Identify ways to influence those against change

In an organization, change is a bit more complicated; there are driving and resisting forces at
work. Driving forces are those seeking change. Resisting (restraining) forces are those seeking
to maintain the status quo. The goal for the driving force is to gain equilibrium, or a balance of
power. Resisting forces control the status quo, while driving forces seek change.
Sociologist Kurt Lewin developed a 'force field analysis' model (1951) which describes any
current level of performance or being as a state of equilibrium between the driving forces that
encourage upward movement and the restraining forces that discourage it. Essentially this
means that a current equilibrium exists because the forces acting for change are balanced by
the forces acting against change.

The driving forces are (usually) positive, reasonable, logical, conscious and economic.
The restraining forces are (usually) negative, emotional, illogical, unconscious and
social/psychological.
Both sets of forces are very real and need to be taken into account when dealing with
change, or managing change, or reacting to change.
Increasing the driving forces is not enough for change, as the restraining forces remain
in place, and as long as they remain in place it becomes harder to use the driving forces. An
analogy is when you push against a spring; the more you push, the harder it becomes and as
soon as you stop pushing the spring reverts to its previous position (after having sprung past
that point). Therefore unless both the driving and restraining forces are balanced a kind of yoyo effect results; a change and then a reversion back, and then a change, and then a reversion
back, and then a change, et cetera, et cetera. Its important to note that the restraining forces
may not be conscious i.e. they should not be regarded as being deliberate attempts to
subvert change (although they may be).
Lewin suggested that change would be easier and longer lasting if the forces against change
were reduced, rather than the forces for change being increased. He also mentioned that
modifying the forces which maintain the status quo may be easier than increasing the forces for
change.

Kurt Lewins model has 3 steps:

unfreezing reducing strength of forces which maintain current equilibrium

moving developing new organizational values, attitudes and behaviors to help move
the organization on
refreezing stabilizing after the changes have been made so that theres a new
equilibrium.

This simple model provides complete information on the stages that FFBL has gone
throughout its change process. Since, the inception the company had to go through various
phases to apply the changes practically throughout, the organizations structure and its
processes.
In the early 2009, when the competition was very high and technology was evolving rapidly,
and those organizations whom grasped the technology at the right place and time, became the
pioneers and lead them to a attain the technological edge in the highly competitive market.
Speaking of the fertilizer sector, the competition is fierce, amongst the local and international

manufacturers. After 2007, there was a boom in the fertilizer industry, there were a lot of
Foreign direct investments and the Government policies also encouraged the local
manufacturers to invest in Fertilizer Industry. FFBL started to suffer losses as it lacked behind in
responsiveness to the demand uncertainty and was not vibrant to the changes in the
environment. Unfreezing and getting motivated for the change is all about weighing up the
'pro's' and 'cons' and deciding if the 'pros' outnumber the 'con's' before you take any action.
This is the basis of what Kurt Lewin called the Force Field Analysis, According to our
interview with the manager, all these details were addressed accordingly to ensure the success
of the change implementation program.
At FFBL, transition was the inner movement or journey that it took reaction to a change.
This second stage occurred as FFBL thought these changes were needed. At FFBL, employees
were 'unfrozen' and were moving towards a new way of being. That said this stage is often the
hardest as people are unsure or even fearful. Our manager related the example of imagining
bungee jumping or parachuting. He was of the view that employees might be convinced that
theres a great benefit for them to make the jump, but now they find themselves on the edge
looking down. Scary stuff! But when they do it they may learn a lot about themselves.
This is not an easy time as employees at FFBL were learning about the changes and need to
be given time to understand and work with them. Support was really important here for the
FFBL employees and it was in the form of training, coaching, and expecting mistakes as part of
the process, while learning and certifying of SAP software.
According to the manager, the using role models and allowing people to develop their own
solutions also help to make the changes across the organization. It's also really useful to keep
communicating a clear picture of the desired change and the benefits to people so they don't
lose sight of where they are heading. Then these changes are accepted and soon become the
new norms. Employees form new relationships and become comfortable with their new
certified routines and practices with the SAP software and then the system will become
refreeze.
Tackling the resistance towards change, introducing the change and new processes into the
organization system, this phase was very crucial for the success of the change implementation.
As it lead the company; to be molded entirely into the new system. Following this process, the
company had to be restored as per the new structure and system. FFBL took some time period
to attain this position but it swiftly went through all these three steps i.e. unfreezing, moving
and refreezing. And consequently the change implementation program at FFBL was true
success.

Learning and change

One central perspective of FFBL is that the goals for a successful learning-based change
initiative are typically formulated in a way that combines two crucial elements:
1) meeting a critical business need
2) The FFBL management made fundamental process improvements. In each case there were
different solutions to the seemingly-contradictory demands of work and learning, The shortrun business results and long-run process improvements.
In implementation phase an important role is played by a "core learning team", a reflective
leadership group that developed collaboratively a shared vision and strategy for the initiative
which combines the two key elements in a way that works for the setting. The learning-based
initiative is viewed as a living system that typically progresses through three phases, centered
on the pilot change project according to the FFBL management.
For FFBL, it is understood by the management very well, the ability to learn better and faster
than its competitors is an essential core competency. FFBl being a learning organization can be
recognized from the outside by its flexibility in changing how it relates to the external world
and how it conducts its internal operations. It can be recognized from the inside by an
consensus among its groups in which learning from challenges and mistakes is key learning .
While successful results are very important to learning organizations -- typically they set very
high standards -- they recognize that often success is only achieved after initial mistakes, and
what people learn from those early mistakes is often the key to eventual success.
At FFBL employees must learn from everyone's mistakes in the industry, not just their own. It is
too costly to have people repeating mistakes that have already been made by others , this was
exactly the case that FFBL was facing at that time . A story from FFC a subsidiary organization of
FF, tells of a very worried manager going in to see his boss right after the failure of the big
innovation project that he had headed. Wasting no time, he said, "I suppose you're going to fire
me" . "Why should I do that," replied the boss, "when I've just invested 6 million in your
department development ?"
That incident reflects several ways of thinking that are characteristic of a learning organization:
important learning comes from mistakes -- once they have been properly analyzed; this form of
learning is at least as important as formal training, and a company must take good care of the
people who develop this knowledge.
The FFBL management, when bought this reactive change to its systems and processes, faced a
lot of issues and tackled them effectively. This was a major change in terms of technology, a big
challenge to break the existing systems and bring in the new structure, processes and
technology. The implementation of THE ERP program of SAP was a major challenge in terms of

acceptance of the new systems, learning new technology, this created learning anxiety among
employees of FFBL, especially the old employees perceived this as a major challenge to learn
and implement new systems and forgo the conventional systems. The management and all the
stakeholders at FFBl learned from their mistakes, they were open to criticism feedback, and
learning this enabled them to survive the challenges throughout the change implementation,
and execution.
During the execution phase of the change programs mostly the Organizations fail because they
anticipate the resources ineffectively, and cause exhaustion to the company resources. FFBL did
a lot of anticipatory research, the financials needed were very well estimated, It took almost 3
years to implement and execute the Program effectively organization wide, and the cost
incurred were extremely high as evident as SAP implementation is the costliest process to any
company. According to researches many Businesses fail while implementation of the Project of
SAP as it exhausts so muh of companys resources many Organizations go bankrupt.
According to the FFBL management, and the SAP certified professionals working at the
Organizations, the TOTAL COST INCURRED TO IMPLEMENT THE CHANGES AND IMPLEMENT THE
SAP PROGRAM WAS ESTIMATED TO BE 85 Million DOLLARS. The management was of the view
that only the implementation is not the major cost center there are major other costs
associated with this execution of the project afterwards too, The costs of training , making the
employees learn the new systems, and maintaining the technical back end office and
certification fees etc, and license renewal these all are continued costs following the SAP
implementation at the Organization. According to the SAP Certified professionals there are
various questions to be answered, and issues to be addressed, they are listed under as
following:

Geographies the implementation of SAP Business One going was to cover multiple
territories or countries. There were likely to be different set-up and configuration
requirements based on the different legal and fiscal requirements for each country.
Another potential complexity with multiple country support is different language sets.
SAP Business One offered support in multiple languages covering multiple legal and
fiscal requirements it was of great help for FFBL that were looking to expand overseas.

Data conversion Since FFBL was not a start up, it was highly likely that it had to convert data
from its legacy system.

In FFBL and According to SAP solutions, Data conversions are categorized into two broad
categories master data and historical data. SAP Business One offered a Data Transfer
Workbench (DTW) module which assists with the upload of master data. There is still some
work to be done export data from your legacy system, check data, import into SAP Business
One and reconcile / check data again. From a pricing / implementation point of view the real
relevance with regards to data conversions is whether or not there is a requirement to export
historical data and if so does the historical data need to be imported in summary or detail
format.
Reporting SAP Business One offers many standard reports and Dashboards. Even so it is highly
likely that you will want some reports changed or custom written. The number and complexity
of reports to be written to your specific requirements will have an impact on the days (and
therefore price) to implement SAP Business One. Report development pricing can be
substantially reduced by considering platforms like SAP HANA.
Training how many people need to be trained? Will training be on-site or off-site and will site
specific user notes be required. Many companies adopt a train the trainer approach where
Leverage Technologies is responsible for training super users of the customer. These super
users then train other users in the team. This approach helps reduce implementation pricing for
remote and distributed sites.
Business Processes sound obvious but is sometimes overlooked. If your business processes
are very specific to your industry and your requirements are outside of the standard
functionality offered then extra days consultancy or system development will be required. The
suggestion is always to try and keep the initial implementation as simple as possible. This will
reduce your upfront implementation costs whilst providing you with a platform for further
growth.
User skill set the skill level of users (including accounting, business knowledge and general
computer skills) are all factors in determining how long it will take to implement SAP Business
One in your business.
Project Management the amount of project management required will vary dependent on the
factors listed above.
In summary there are a number of questions to be answered before being able to give a cost
to implement SAP Business One. Answer the eight questions listed above and you will get a
much better idea of the days required for implementation.

Communicating Change Message

A learning organization like FFBL, is good at two kinds of learning: good at creating new
solutions and good at sharing knowledge with other members who may needed it. At FFBL,
there had to be openness to new ideas, wherever they come from, and to sharing knowledge
for the good of the business -- setting aside the embarrassment over sharing one's mistakes
and the reluctance to ask for help or to borrow someone else's solution. According to manager
we interviewed MR. Hassan Ali Wasti ;
It is not just individual attitudes that have to change, though, it is also the policies and patterns
of FFBL management behavior that make it harder for employees to be good learners and
sharers. When employees can trust that their bosses will not penalize them for revealing
mistakes or for seeking help with a difficult problem then there will be more organizational
learning and better solutions to be shared.
Like in every learning Organization, Lack of openness in the workplace is very costly. Design
engineers at FFBL of SAP Solutions, who say nothing about the problem they cannot solve run
the risk that, when they do solve it, they will require other key parts of the design to be
changed. And by that time others have made costly investments in tooling that must now be
scrapped, compounding costs and delays.
In one of the cases we studied, the FFBL new Process design project at a leading Fertilizermaker, major cost savings were achieved (over $60 million) through their ability to confront and
change this powerful pattern of mainaining old conventional file systems , a long-standing part
of their workplace culture. And processes.
They recognized that this tacit norm was based on deeper-lying assumptions (shared by all of
them) about what is expected from "a good design engineer" and that those "mental models"
were reinforced by the behavior of managers who consistently chastised and humiliated
engineers who brought up unresolved problems. So, naturally they concealed their problems
while shifting to the new system, reporting nothing, until they were close to a solution. During
the FFBL change process, its top managers learned to see how their own behavior was
creating results they did not want and they learned how to behave differently and get better
results -- both in terms of cost savings and in the satisfaction they all derived from their work.
With less blaming, there was more trust, openness, and better results. In order for the

engineers to learn new ways of behaving, though, their bosses first had to learn new ways of
supervising.
The key feature at FFBL was , what such a workplace looks and feels like. Keeping focus on the
change process: how to become more like a learning organization. According to the interviews
conducted,
One of the first steps in the transformation is for members of the FFBL to begin to change how
they think about organizations, for those mental images affect how people act at work and that
is what needs to change
According to Learning-based approaches to organizational change, they see organizations as
living systems with people in essential roles. People can think for themselves and often resist
those who try to change them. We will never reach the goal of building a learning organization
to execute change successfully .
At FFBL the organizational change involved significant personal change as well.
The change message at the company was communicated very effectively through keeping in
mind these factors and addressing the step by step :

From what to what? To Tell the specifics of what will be different in how
What does this change meant for at FFBL?
Will this make a difference? Is there a good business reason for doing this? How will this
help the business and its competitive position in the market ?
How will success be measured at FFBL following the change process? If the company
cant measure success, how will you know that there has been a return on FFBLs effort
and investment? And how will they know whether to reward or hold whom
accountable for theirparticipation?
What is the support level for this change? Do the top, middle and lower management
accepting and taken into confidence while bringing this change.

Similarly communicating change to the stakeholders at FFBL was of great importance as well to
ensure the success of change implementation, the company management took into account
these steps while communicating change to its stakeholders
The importance of stakeholders when considering change:
Stakeholders are the groups and individuals who will be influential in the success of
organizations change plans. It is often the skill with which they communicate, consult and
involve these people which will determine the success of their change initiative.

For a successful change employees need to understand who their stakeholders are, like at FFBL
they have various stakeholders involved , their Plant engineers, management levels in FFBL,
Farmers who are the end users of the products of FFBL, and The society and the Government
authorities, shareholders.
How will they measure the success of this change at FFBL ? What is it that they want to see in
Future at FFBL?

How much influence do they have in the comapny?

How important are the stakeholders concerned at FFBL?

Think about what kind of power/influence they have

Communicating change to stakeholders plays a very pivotal role in determining the successful
implementation of the change program , Key considerations in planning communication about
the change.
At FFBL, just like any other company All change agents express enthusiasm, warmth, and
confidence in the change program implementation. It is especially crucial for leaders to
communicate congruently this is exactly what was done at FFBL, by its top management, that
was , to align the spoken word with body language that supports an intended message.
Then there is the matter of timing which is of very much importance while executing change at
any organization. If a leaders gestures are produced before or as he is talking about the
rationale for change, he appears open and confident that this change is likely to succeed.
When developing the change communication strategy FFBL top management greatly believed
in what they wanted to say was in align with what the employees wanted to hear.

Conclusions
Following the change implementation keeping a follow up on the change program is very
important to maintain, until and unless it is done effectively the change execution cannot be
undertaken successfully.
Monitoring and controlling the effectiveness of organizational change activities are often more
difficult ,given their emotional and typically subtle nature. How do we know that individual
employees are accepting the change or are we about to experience a resistance? How do we
know that the impacted organizations have been able to adapt and accept the changes, or are
the supporting roles, processes and procedures going to undermine or undo all of our efforts?
How fast can we expect a change-averse culture to change? These all are key questions that
need to be answered while evaluating the change program at FFBL
The big difference is in how the monitoring and measuring is done. In the case of the technical
component, like implementation of SAP program at FFBL, it is very necessary to establish a
performance standard and collect empirical data which measures performance against that
standard. If the standard is met were in the clear, if not it triggers alternative plan.
For example, like at FFBL considering the project of first indication that training or change
management were not successful when a major business process (like extracting data out of
legacy and converting to SAP cannot be executed.
FFBL on a regular basis keeps a track on the change program which was the implementation of
SAP Solution ERP program, replacing the conventional Legacy system and automating the data
systems maintenance. This evaluation analysis is done through regular basis through surveys,
testing results and regular feedbacks from all the concerned stakeholders.
Surveys or questionnaires to monitor critical elements associated with organizational change
provide a more structured approach to monitoring organizational change risks. In this
approach at FFBL the project team creates a survey designed to take feedback from the all
stakeholders about its perception of the project and the change factors which are contributing
to the success (or failure) of the effort. Through this, the team can quickly identify areas which
require more attention and intervention.
In conclusion, organizational changes and the management of those changes can be a critical
component for project success. Great attention is required to understand what organizational
changes may be required and their impact to both organizations and individuals.
Understanding the nature and scope of these changes enable the project team to more

effectively plan, execute, and monitor their execution and effectiveness of the implementation
of SAP Program at FFBL.

References:

http://www.ffbl.com/links.htm
http://www.change-management-coach.com/kurt_lewin.html
http://www.transworldnews.com/1099784/c1/fauji-fertilizer-bin-qasim-limited-ffbl-companyprofile-and-swot-analysis-new-company-profile-report
http://www.scribd.com/doc/29506466/FFBL-Management-Report
http://cjni.net/journal/?p=2888
http://www.bos.com.np/index.php?option=com_content&view=article&id=95:benefits-ofusing-sap-for-your-business&catid=34:articles&Itemid=5
http://www.change-management.com/tutorial-job-roles-mod2.htm
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