Management In Scm Future And Benefits Information Technology Essay
This chapter gives an idea about my dissertation work that has given me the opportunity to learn and broaden my thinking in the field of study. It mainly discusses about what went well, what went wrong and my approach on how to tackle these kinds of projects.
This also discusses about the methods and methodologies used for doing a research. Research methods like Qualitative and Quantitative are discussed. To answer the research question, it is important to gather data from people, sampling techniques are detailed and the most suitable techniques are chosen. Also a suitable research methodology is chosen and the justification is also given to it. This chapter discusses the ethical issues that are considered while collecting the data through questionnaire and while conducting experiments.
5.0 CHANGE MANAGEMENT IN SCM FUTURE AND BENEFITS– Chapter 5:
This chapter deals with the future enhancements that can be made to the existing search functionality i.e., it discusses about future work on how the search functionality can be enhanced effectively in an alternative way and how it can be implemented.
6.0 Conclusion - Chapter 6:
This chapter discusses the conclusion from the knowledge gained and from the data collected, and from the observations and findings. It also discusses a set of conclusions and the recommendations based on all the sections.
With the current economical globalization, all national enterprises are building assembly lines and distribution centers overseas, their supply chains are also increasing in their coverage, forming what is called a global supply chain. In this age of arduous global competition, cost reduction, fast and instantaneous reaction, customer satisfaction increase have all become key elements in the competition between enterprises. This made the need of national enterprises for a global logistics management increase on a daily basis.
During the nineties several authors tried to put the essence of SCM into a single definition. Its constituents are
The object of the management philosophy
The target group
The objective(s) and
The broad means for achieving these objectives.
Christopher, 1998, p.15 said that the object of SCM obviously is the supply chain which represents a “…network of organizations that are involved, through upstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer”. In a broad sense a supply chain consists of two or more legally separated organizations, being linked by material, information and financial flows. These organizations may be firms producing parts, components and end products, logistic service providers and even the (ultimate) customer himself. So, the above definition of a supply chain also incorporates the target group – the ultimate customer.
A network usually will not only focus on flows within a (single) chain, but will have to deal with divergent and convergent flows within a complex network resulting from many different customer orders to be handled in parallel. In order to ease complexity, a given organization may be limited by the customers of its customers while it ends with the suppliers of its suppliers in the upstream direction.
In a narrow sense the term supply chain is also applied to a large company with several sites often located in different countries. Coordinating material, information and financial flows for such a multinational company in an efficient manner is still a formidable task. Decision-making, however, should be easier, since these sites are part of one large organization with a single top management level. A supply chain in the broad sense is also called an inter organizational relates to a supply chain in the narrow sense. Irrespective of this distinction, a close cooperation between the different functional units like marketing, production, procurement, logistics and finance is mandatory- a prerequisite being to matter of course in today’s firms.
The objective governing all endeavors within a supply chain is seen as increasing competitiveness. This is because no single organizational unit now is solely responsible for the competitiveness of its products and services in the eyes of the ultimate customer, but the supply chain as a whole. Hence, competition has shifted from single companies to supply chains. Obviously, to convince an individual company to become a part of supply chain requires a win-win situation for each participant in the long run, while this may not be the case for all entities in the short run. One generally accepted impediment for improving competitiveness is to provide superior customer service. Alternatively, a firm may increase its competitiveness by fulfilling a pre-specified, generally accepted customer service level at minimum costs.
Lee and Ng, 1988, p.1 said “There are two broad means for improving the competitiveness of a supply chain. One is a closer integration involved and the other is a better coordination of material, information and financial flows. Overcoming organizational barriers, aligning strategies and speeding up flows along the supply chain are common subjects in the respect”.
We are now able to define the term supply chain management as the task of integrating organizational units along a supply chain and coordinating material, information and financial flows in order to fulfill (ultimate) customer demands with the aim of improving the competitiveness of a supply chain as a whole.
1.1 Building Blocks:
The house of Supply Chain Management depicts many facts of Supply Chain Management. The roof stands the ultimate goal of SCM-competitiveness-customer service indicates the means. Competitiveness will be improved by increasing flexibility and costs reduction with respect to customer demands changes and giving the best quality of products and services.
The roof rests on two pillars representing the two main components of SCM, namely the integration of a coordination of information, financial flow, material the network of organizations. There are many disciplines that formed the foundations of SCM.
The two main components which incur some degree of novelty will now be broken down into their building blocks. Firstly, forming a supply chain requires the choice of suitable partners for a mid-term partnership. Secondly, becoming an effective and successful network organization, consisting of legally separated organizations calls for actually practicing inter organizational collaboration. Thirdly, for an inter organizational supply chain, new concepts of leadership aligning strategies of the partners involved are important.
The coordination of flows along the supply chain can be executed efficiently by utilizing the latest developments in information and communication technology. Building blocks allow all the processes to be automated which earlier are manually executed. Scrutiny of the activities at the interface of two entities has to be done to remove the duplicate activities like keying in the data and has to be done as a single activity. A redesign will be incorporated by Process orientation followed by the new process standardization.
Planning of resources gathering has to be done to execute customer orders. Production planning and distribution planning have been isolated. Coordinating plans over various places and separated organizations presents a new task that is taken up by advanced planning (systems).
Subsequently, we will describe the house of SCM in greater detail, starting with the roof, followed by its two pillars and ending with some references to its foundations.
1.2 Customer Service:
LaLonde and Zinszer said “Customer service is a multi-dimensional notion”. (cited in Christopher (1998, pp.39)) . According to a survey conducted by them there are three elements of customer service:
Some of these elements will be illustrated in the following text.
Pre-transaction elements relate to a company’s activities preceding a contract. They concern customer access to information regarding the products and services a firm offers and the existence of an adequate link between organizations involved. However, like a construction of a business building will require several, intense personal links between the organizations involved at different levels of the hierarchy. Finally, flexibility to meet individual customer requirements may be important element for qualifying for and winning order.
Transactional elements are all those which contribute to order fulfillment in the eyes of a customer. The availability of products (from stock) may be one option. Order cycle times play crucial role If a product or service has to be made on demand. During delivery times a customer may be provided with information on the present status and present location of an order. The delivery of goods can include several additional services, like an introduction into the use of a product, its maintenance, etc.
Christopher, 1998, pp. 41 said “Post-transactional elements mostly concern the service provided once the order is fulfilled. This includes elements like repairing or exchanging defective parts and maintenance, the way customer complaints are dealt with and product warranties”.
For measuring customer service and for setting targets, key performance indicators are used in practice, such as maximum order lead-time, the portion of orders delivered within X days, the portion of orders without rejects or the fill rate. If a certain level or standard of customer service has been agreed upon, it must be broken down so that each entity of the supply chain knows how to contribute o its achievement, consider order lead-times offered to customers as an example.
Assume a delivery time of nine days has to be offered to customers. Now, following each activity upstream in the supply chain with its lead-times for information and material flows, it becomes clear, where the decoupling point between the two options production-to-stock and production-to-order currently can be located. Since the actual lead-times for assembly totals 11 days, this would require to assemble-to-stock.
Stocks held at decoupling point incur costs and increase overall throughout times. A decoupling point requires that no customized items or components have to be produced upstream. Ideally, items produced on stock have a large communality so that they can be used within several products. This will reduce the risk of holding the “wrong” stocks, if there is an unexpected shift in products< demand.
If accumulated lead-times of customer specific parts exceed expected delivery times, the supply chain as a whole-perhaps including key customers- has to look for either reducing lead-times material or for information flows (e.g. transferring orders by electronic means may save one day while an additional day must be saved by advanced scheduling techniques at the assembly plant, thereby allowing to assemble-to-order while suppliers manufacture-to-stock).
Fig 2: Balanced Supply Chain Involves Functional Trade-offs (source:http://www.emeraldinsight.com_Insight_ViewContentServlet_contentType=Article&Filename=_published_emeraldfulltextarticle_pdf_0050190801)
As has been stated above, IT industry supply chain consists of several legally separated firms collaborating in the generation of a product or service with the aim of improving the competitiveness of a supply chain as a whole. Integration causes special building blocks in these firms to collaborate in the long term, namely
Internal co-operation between organizations and Network organization and,
The choice of partners starts with analyzing the activities associated with generating a product or service for a certain market segment. Firstly, activities will be assigned to existing members of a supply chin, if these relate to their core competencies. Secondly, activities relating to standard products and services widely available on the market and with no potential of differentiation in the eyes of the ultimate customers will be bought from outside the supply chain. Thirdly, for all remaining activities, a partner to join the supply chain has to be looked for all course of a make-or-buy decision procedure.
Selection criteria should not be based solely on the expenditure, and also on the future capacity of a partner to stand in the competition of the supply chain. A suitable organizational culture and a commitment to contribute to the aims of supply chain will be of great importance. A possible partner may bring in specialized know-how regarding a production process or know-how of products and their development. In case of a IT company supply chain, additional things have to be considered.
The assignment of activities to those members within the supply chain who can perform them bet as well as the ability to adapt the structure of a supply chain quickly according to market needs are seen as a major advantage compared with traditional hierarchies.
From the perspective of organizational theory, industries supply chains are grouped as network of organizations. All the partners in the network
Figure 3: Integrated Supply Chain
are not bind tightly and they have equal share in the business growth. The structure of the organization will vary with changes in the tasks and the organizations aims will be grouped together. The supply chain will look like a single entity from the customer’s point of view. Olden days Virtual forms are created to perform the tasks for short time later and sometimes it was for a single task also.
Inter organizational collaboration is a necessity for an effective supply chain. A supply chain regarded as a cross between a pure market interaction and a hierarchy. It tries to combine the best features of the two. Ideally, each entity within a supply chain will concentrate on its competencies and will be relieved from stringent decision procedures and administrative routines attributed to a large hierarchy. Knowledge transfer has to be done among members. Competition among the members along the supply chain is substituted by the commitment towards the whole supply chain competitiveness improvement. A risk still remains, however, that collaboration is cancelled at some time. These factors are assumed to enhance innovativeness and flexibility with respect to taking up new market trends.
Although legally independent, partners in the IT company supply chain are dependent on each other in financial aspects. The structure of the IT company supply chains will be stable if all the partners together collectively do the tasks in long run. If all the partners are not doing their tasks then it will impact the growth at supply chain level and all the schemes have to be revisited. Bonds have to be maintained between the partners in the supply chain to enforce the logical grouping. An additional bond may be introduced by exchanging contributions to capital. Bonds must be practiced continuously to build up a certain degree of trust the basis of long term partnership. Special care has to be taken to pay the costs of communications in IT company supply chain.
Leadership, being the third building block of integration, is a delicate theme in light of the ideal of self organizing, polycentric actors forming a supply chain. At least
some decisions should be made for the industry as a whole, for the activities like the cancellation of a partnership or the integration of a new partner. Similarly aligning strategies among partners of the integration of a new partner may require some form of leadership.
In practice, Leadership may be executed by a focal company or a steering committee. Some companies will be having major stake in the business of a supply chain or they have the financial power to get that done will lead the supply chain. Sometimes founders also will act as focal company in the supply chain. For these reasons decisions made by the focal company will be accepted by all members. Apart from this a steering committee has to be introduced, consisting of representatives of all the partners of supply chain. The rules of decision-making like the number of votes per member are subject to negotiations.
Despite the advantages attributed to a supply chain, one should bear in mind that its dependency is much bounded and the behavior of one partner is impacting the other partners, sometimes the whole supply chain as well. Also any supply chain partner running the risk and becoming unattractive and will be removed from the supply chain and replaced by the other partner one it is dispensed within the supply chain.
Last but not least, the coordination of activities across organizations must not exceeded comparable efforts with in a hierarchy, in light of the latest developments on formation and communication technology as well as software for planning material flows, this requirement has now been fulfilled to a large extent.
Figure 4: Supply Chain Elements (source: www.clarku.edu/~jsarkis/CEM/greenscm1.ppt)
2. Literature Review:
2.1 Origins of Supply Chain:
The term SCM has been created by two consultants. Oliver and Webber as early as 1982. The supply chain in their views lifts the mission of logistics to become a top management concern, since”… only top management can assure that conflicting functional objectives along the supply chain are reconciled and balanced… and finally, that an integrated systems strategy that reduces the level of vulnerability is developed and implemented”. In their view, coordinating material, information and financial flows with in a large multi national firm is a challenging and rewarding task. Obviously, forming a supply chain out of a group of individual companies so that it acts like entity is even harder.
Research into the integration and coordination of different functional units started much earlier than the creation of the term SCM in 1982. These efforts can be traced back in such diverse fields as logistics, marketing, organizational, operations research. Selected focal contributions are briefly reviewed below without claiming completeness. These contributions are
Collaboration and cooperation
Location and control of inventories in production-distribution networks
Bullwhip effect in production-distribution systems and
Hierarchical production planning
2.2 Motivation and Goals:
An accurate analysis of the supply chain serves several purposes and is more a continuous task than a one time effort. In today’s business environment, the industry supply chain is intended for a longer duration; the industry supply chains keep evolving to accommodate best to the customers needs. In the beginning or when a specific supply chain is analyzed for the first time in it’s entirely the result will be treated as a starting point for improvement processes as well as a benchmark for further analyses. While the initial analysis itself often helps to identify potentials and opportunities it may well be used for target setting, e.g. for APS implementation projects to measure the benefit a successful implementation has provided. On the other hand, the supply chain analysis should evolve in parallel to the real world. In this way the associated performance measures keep track of the current state of the supply chain and may be used for supply chain controlling.
Many authors, researchers as well as practitioners, thought about concepts and frameworks as well as detailed metrics to assess supply chain performance. In most concepts two fundamental interwoven tasks play an important role: process modeling and performance measurement. These two topics will be reviewed in detail in the following two sections, but beforehand some general remarks are appropriate.
Supply chains are of two types, innovative product supply chains and functional product supply chains differed in many attributes. Product life cycles will be very short in Innovative product supply chains. Unstable demands will be there but high profit margins can be maintained in Innovative product supply chains. All the changes in the market can be adapted quickly in the innovative product supply chains. Product life cycles will be very long in functional product supply chains. Ad hoc processes will not be there and profit margins will be low in functional product supply chains. More process orientation and cost reduction processed will be followed.
Naturally, performance measures for both types of supply chains differ. Where time-to-market may be an important metric for innovative product supply chains, this metric does only have a minor impact when assessing performance of a functional product supply chain. Consequently, a supply chain analysis does not only have to capture the correct type of the supply chain, but used also reflect this in the performance measures to be evaluated. Supply chain’s visions or strategic goals should also mirror these fundamental values.
Furthermore, a meaningful connection between the process model and the underlying real world as well as between the process model and the performance measures is of utmost importance. Although participating companies are often still organized oriented. Therefore, it is essential to identify those units that contribute to the joint output. These units are then linked to the supply chain and the accounting systems of the companies. Therefore, they can provide the link between the performance of finance of the supply chain partners and the non financial performance metrics which may be used for the whole industry.
Finally a view on the industry needs to be kept. This is especially true here, because overall supply chain costs are not necessarily minimized, if each partner operates at his optimum given constraints imposed by supply chain partners. This is not apparent and will therefore be illustrated by means of an example. Consider a supplier-customer relationship which is enhanced by a vendor managed inventory (VMI) implementation. At the customers side the VMI implementation reduces costs yielding to a price reduction in the consumer market which is followed by a gain in the market share for product. Despite this success in the marketplace the supplier on the other hand may not be able to totally recover the costs he has taken off the shoulders of his customer. Although some cost components decreased, these did not offset his increased inventory carrying costs. Summing up, although the industry as a whole profited from the vendor managed inventory implementation, one of the partners was worse off. Therefore, when analyzing supply chains one needs to maintain such a holistic view, but simultaneously mechanisms need to be found to compensate those partners that do not profit directly from the supply chain successes.
2.3 Process Modeling:
Supply chain management’s process orientation has been stressed before and since porter’s introduction of the value chain a paradigm has been developed in economics that process oriented management leads to superior results compared to the traditional focus on functions. When analyzing supply chains, the modeling of processes is an important first cornerstone. In this context several questions arise. First, which processes are important for the supply chain and second, how can these processes is modeled.
To answer the first question, the global supply chain forum identifies eight core supply chain processes.
Customer relationship management
Customer service management,
Manufacturing flow management,
Supplier flow relationship management ( procurement ),
Product development and commercialization,
Returns management (returns).
2.4 Performance and Measurement:
Having mapped the supply chain processes, they are crucial to assign standards to these processes for changes evaluation and to the performance assessment of the complete supply chain as well as of the individual processes. Thereby it is crucial not to measure “something “, but to fond the most relevant metrics. These not only need to be aligned with the supply chain strategy but also need to reflect important goals in the scope and within the influence of the part of organization responsible for individual process under consideration. In the two subsequent subsections, first some general issues
of performance measurement within a supply chain setting will be discussed, whereas second some key performance indicators for supply chains will be introduced.
2.5 Issues Regarding Performance Measurement:
Indicators are defined as metrics that will let us know about the required criteria in a simple way. Performance indicators are utilized in a wide range of operations. Their primary application is an operational controlling. Hardly a controlling system is imaginable that does not make use of performance measures to model all business processes of a company enables the company to run its business according to management-by-exemption.
Three functions can be attributed to indicators:
Informing: In this function, indicators are applied to identify problem areas and to support decision-making areas. Indicators can be compared with target or standard values.
Steering: They are the roots for target setting. These targets guide those responsible for the process considered to accomplish the desires outcome.
Controlling. Indicators are also well suited for supervision of operations and processes.
The main disadvantage inherent to indicators is that they are only suited to describe quantitative facts. “Soft” facts are difficult to measure and likely to be neglected when indicators are introduced. Still, non-quantitative targets which are not included in the set of indicators should be kept in mind.
When using indicators, one key concern in their correct interpretation. Observed variations are to be linked by the indicators to causal model of the oriented process or operation. A short example will illustrate this. To measure the productivity of an operation the ratio of revenue divided by labor is assumed here as an appropriate indicator.
What is change management
The series of tasks that are done to manage the changes that are to be implemented in a project module or a process in an organization is called change management. You should know that it is not a process improvement method or a standalone process. It is about managing the people who are in the process and about managing the resistance from those people for the change to be implemented.
There are different stages in change management. The first stage is to prepare the users for the change to be made. The second stage is the actual implementation of the changes in the process or project. The third stage is reinforcing the changes and getting feedback about the changes and improving the change made to get better business results.
During the first stage of the change management, the actual change that is needed is documented and approved by the management. Then it is circulated among the various departments and their feedback got. This is done manually or if software for change management is in place it would make this process easier. The members of the departments getting affected by the change might approve the change or reject it or suggest improvements in the change to be made. Resistance to the change is expected mostly because people are not aware of the impact. A strategy to implement the changes is developed and that strategy is approved by the management. It is seen that the strategy does not affect the ongoing business process. A detailed planning is done.
In the next stage the strategy that was developed in the earlier stage is implemented. The users are allowed to use the change. Before the change is implemented, it is double checked by the quality audit team. After approval of the quality audit team it is made live.
In the final stage, feedback of the users on the change is got. The data that is going through this process is tracked for conformance to the business process in place. Based on these there might be any corrections to the changes made to make the process perfect.
Understanding Change Management
Change is a process that is followed when any change is made to the process that is followed in any business environment. A simple change in the process might affect the other processes in other departments. However not all departments will be aware of the change that was made. To ensure that the change made to the process is known to all the departments in the organization, the change management process is followed.
Consider that there is a change or a feature is added to the software used in the business process and this change in the feature will be done immediately. A process has to be followed to effect that change. Once the decision to change a feature is made, it is informed to all the departments that are using that software. The impact of the change on the departments using that software is studied and intimated to the respective departments. The quality team might be testing that feature and once it has been approved it will go live.
Proper documentation is made for the change management. Once it is initiated a document stating the purpose and the steps to be accomplished to complete the task are given in written. This document is circulated among the departments and proper approval is got. The impact of the change in the feature is studies carefully by the respective departments and then only the approval is given. If any of the impact in their department is not addressed, they might raise the issue with the concerned change management team to get it included in the documentation. Finally the top management also has to give its nod for the change to be effected in the process.
With the change management in place the changes made are known to each department and it is sure to improve the business process.
Change Management process
Changes management process is a sequence of tasks that are done in order to implement a change in a project or process in a business. We can split this change management process into three steps for our convenience. Preparation, Management, and Reinforcing are the three stages in the change management process.
In the first stage called the preparation stage, the change that is necessary to be made in the project or process is documented and approval got for circulating among the various departments. This is done manually or using software that can send alerts to the concerned departments upon entering the change requested in the change management software. The impending change is assessed by the departments that are affected the change and the extent of the impact in the process. A strategy is developed on how the change will be implemented without affecting the ongoing process in the organization. At the end of the preparation stage the change to be made is approved and implementation begins.
In the management stage the detailed planning that is made is implemented with the necessary team members. This might take some time and the change that is made is approved by the quality audit team so that the change can go live.
In the reinforcing stage the change management process would have taken place and the necessary changes made to the project or process would be in action. In this stage data is gathered after the changes are made and feedback is also got on the changes made. Any corrective action to be done to make the process perfect is also done at this stage.
You should know that the change management process is all about managing the people who use this process, and managing the resistance to change that might come from these people. With this the impact of the change on the performance should be minimized so that the process goes on smoothly to get the desired business results.
Using software for Change Management
Using software for change management will ease the change management process that is otherwise done manually. Documenting the process and communicating to the other members is a tedious task that is usually done manually if software is not in place. By using software for change management, these manual tasks are automated and the process time is reduced.
With change management software you know what the next step in the process is, as the process is programmed in the software. The flow of the process is controlled with the software. Proper software for change management can calculate the risks associated with the change that is going to take place in the project or the process. A risk module is integrated in the change management software. All the information pertaining to the changes are easily accessible to the members with the use of this software. Some of the changes might be dependent on other changes to be made and this relationship is easily maintained in the software for change management.
Sending emails to the respective members of the departments is usually done manually if software for change management is not there. With the software in place, the emails are sent automatically to the concerned members. All you have to do is to configure the software prior to using it so that it sends emails to the departments that affect the changes. The progress in the change process is also reported to the members automatically as the process progresses. Option to configure the mails sent as plain text or html is available in the change management software.
Software for change management is marketed by many vendors who are specialized in this domain. You can go for web based software instead of a desktop version. With web based software the users can work on it from any location in the world. Most of the software can be customized to the meet the users’ requirement without any programming. They can be used with any database like Microsoft SQL, MySQL, and Oracle. Different time zone compatibility is also a factor to be looked for.
Effective steps for management of change
Resistance to change in the process or any feature is what is faced by most of the companies when they attempt to make some change to the existing process. It is a tedious task and takes time for the changes to take place. The main reason for this is the lack of awareness among the users about the changes, and fear of loss of responsibilities. The resistance to the changes can be overcome by creating awareness about the impending changes.
Change management itself is a process and management of change is not an easy task. Management of change takes its own time unless you are having a process in place to make the changes. The first step in the management of change is to create a document with the necessary changes that are to be made, the impact of the changes on different departments and processes. This document is approved by the top officials to be circulated among the various departments and the opinion of these departments is got.
Each of the department will review the change management document created and evaluate the effect of the change to be made on their department. If any there is any discrepancy in the views expressed, they might raise that issue with the management request to add or delete or edit the document accordingly. Once the opinions of all the departments are got, the final document is reviewed and sent to the top management for final approval.
Once approved the changes to the features in the process are changed and the quality department would test the changes made. Then the changes go live after the approval of the quality assurance team. The process is followed after the changes made and the feedback is got for further optimization and improvement.
Change Control Management
Change control management is a general term that refers to change control or change management. Often these two terms are interchangeable. Controlling change and managing change are interchangeable. For example take a software project. It would have a change control board. This board has members like stake holders. They will be approving any change that is requested in the software project. Their say is final in any change request.
In change control management not all the changes requested are accepted as it is. There are many rules based on which a change request is accepted or not. You have to answer a lot of questions like, whether the change requested is unavoidable or not, whether the change would bring in the needed improvement to the process or business. While considering this the costs associated with the change, the benefits, the time needed for implementation and the risks involved are taken into account.
The capability of the project team is also considered before accepting to do the change in the project or process. Sometimes it would be beneficial to do the change immediately or sometimes it would be better to postpone it until the current project is completed. These factors are considered in change control and change management.
There are many procedures adopted and the process should be well in control until it is completed. The rules for considering the changes, who is going to do the changes and the members of the change control board, are also considered. Forms and detailed procedures should be available. Authority levels are defined in the process. The change control procedures should also be linked to the other processes available in the organization. The necessary tools should also be available to manage change. Communication between the various stakeholders, the team members, and the users is important and the way in which it is managed is also important in change control and management.
3. Need for Planned Change - Change Management:
Planned change is a change which is planned in advance as part of the discussions and meetings in the early stages of a project or an organisation. Before they are getting implemented in the organisation they have to be intimated to all the employees. Planned changes will be implemented as part of life cycle of projects work flow. These changes will be dependent on the company’s vision and the current situation in the industry and expected future industry situations.
In company’s life cycle all the change management initiatives will be purely from the minds of the top level management. These change management initiatives will be followed by the bottom level employees in the organisation structure. These initiatives involves co-operation from leaders and employees who are the backbone for the company. The change management goals will be set by the change management consultants, managers and supervisors of the company. After setting the standards, goals, vision the report will be sent to the top level management. Successful implementation of change initiatives will depend on the way they communicated to the employees and the way the employee’s received. The results should be analyzed and compared to the expected results for further modifications. Integration will be done after the successful implementation of the individual changes.
To be adjusted to all these changes the employees should be ready technically as well as mentally. The upgradation of technology to compete with global competitors will require a proper and sophisticated training. This will not only ensure the successful implementation of the changes as well the customers will be highly satisfied with the quality of the services or products they are provided. With proper planning changes only this type of results will be achieved.
These changes are part of day to day work of employees. There is no need of any special communication for these change management initiatives. All the leaders have to communicate and implement these changes without any disruption in the policies. Then the employees will be adjusted to the changes and there will not be any dissatisfaction with work they are doing every day as part of product/project life cycle. The decision making for these changes have to be carefully executed before they are getting implemented.
Change management has been developed over a period of time and many models that have played an influence in change management. In those models, there are five specific stages that must be realized in order for an organization or an individual to successfully change. They include:
Awareness - An individual or organization must know why a specific change or series of changes are needed.
Desire - Either the individual or organizational members must have the motivation and desire to participate in the called for change or changes.
Knowledge - Knowing why one must change is not enough; an individual or organization must know how to change.
Ability - Every individual and organization that truly wants to change must implement new skills and behaviors to make the necessary changes happen.
Reinforcement - Individuals and organizations must be reinforced to sustain any changes making them the new behavior, if not; an individual or organization will probably revert back to their old behavior.
Organizational Change Management
Organizational change management takes into consideration both the processes and tools that managers use to make changes at an organizational level. Most organizations want change implemented with the least resistance and with the most buy-in as possible. For this to occur, change must be applied with a structured approach so that transition from one type of behavior to another organization wide will be smooth.
Management's Role in the Organizational Change
In most cases, management's first responsibility is to identify processes or behaviors that are not proficient and come up with new behaviors, processes, etc that are more effective within an organization. Once changes are identified, it is important for managers to estimate the impact that they will have to the organization and individual employee on many levels including technology, employee behavior, work processes, etc.
At this point management should assess the employee's reaction to an implemented change and try to understand the reaction to it. In many cases, change can be extremely beneficial with lots of positives; however certain changes do sometimes produce a tremendous amount of resistance. It is the job of management to help support workers through the process of these changes, which are at times very difficult. The end result is that management must help employees accept change and help them become well adjusted and effective once these changes have been implemented.
The Importance of Buy In
For an individual or organization to achieve change effectively, it is important that individuals in the organization that will need to make modifications to their behavior exhibit buy in. Buy in means that the organization as a whole understands that the changes that need to be made are ultimately beneficial to both the individual and the organization. In addition, each individual and the organization as a whole will have to work hard to make the necessary behavior modifications. If an organization tries to make changes which are inherently bad or are not received positively by an organization, it will be much more difficult or close to impossible to implement these changes without significant resistance.
You can enhance buy in by first explaining the changes you would like to make, citing issues with current procedures and then communicating the benefits for both the individual and organization.
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