Changing organizations messy, exhilarating, frustrating and satisfying happens al the time a process that must be managed has its own experts has been happening often lately
Example: HP wanted to merge with Compac in 2001-2002
Board disagreed, but CEO Carly Fiorina was pushing for it
Deutsche Bank supported her. Politics started ….!
Finally Deutsche Bank decided that failure of the merge is more disastrous than the merge itself approved by shareholders’ vote in March 2002
HP-Premerger
in 1999 the company needed strong leadership salesforce was duplicating efforts and annoying customers
Fiorina started by “the customers defines a job well done” and “invent different ways of working” she created four quadrants: two “front end” of sales and marketing and two “back end” of research and manufacturing
Her efforts were met by subtle and pervasice resistance from employees as not part of the HP “System”
HP-Post-Merger
Lawsuit against merger integration of two very different cultures
Hired 65000 new employees coffee talks with engineers and management by walking around still faced fierce competition from DELL and IBM three years later Fiorina was fired. Hurd, the new CEO undid most of the more radical changes and let many people go
He undid most of the changes Fiorina did
Lesson learned
Different interests need to be recognized and addressed during a change
These interests will provoke different reactions
Lobbying and politics are likely and need to be managed
Negotiation and persuasion are important
“Touch” the people when communicating speak to peoples feelings
Create a compelling vision
Expect internal and external pressures
Gonna happen predict them, deal with them ahead of time
Restructuring is a common organizational change to solve problems
Pay attention to organizational culture
Example: IBM
In 1994 the internet was not that popular yet
IBM had the official right to broadcast the 1994 Winter Olympic games
David Grossman (a computer programmer) came across a website that copied movies of the games. He decided to make
IBM aware that the internet is an integral part of business
Grossman and John Patrick ( from the strategy task force) teamed up to make the change
Gradually they gained support and managed to participate in the World Trade Convention as a major player in the new world IBM changed from a computer manufacturer to a global service provider
In 2002 IBM had a new CEO, Samuel Palmisano
He listened to Grossmann and Patrick and decided to change the company
He restructured the company to become a service provider rather than a computer manufacturer
He put a new systems to make sure that IBM listens to its clients, including JAMS which were online brainstorming sessions for clients, consultants and
Lesson learned
Innovative change may come from below
"Change bubbles up from inside”
Making change requires persistence
Change needs appropriately placed champions to gain critical-mass support carry its own momentum forward
You need support from above!
Informal network is important use plenty of resources
Change may be a process or an event, incremental or transformational
Example: Kodak
With the rise of digital technology, Kodak kept suffering for a few years.
In September 2003 Kodak decidedto reduce its production of film and analogue photography and concentrate on digital the digital business needed a more mobile, more dynamic and definitely lighter company than a chimical company. Kodak needed to cut dividends and raise capital for the change facilities needed to be reduced and reduced and emplyment by 15000
Investors were
