Asian Productivity Organization

1. Asian Productivity Organization Study Meeting on Learning OrganizationsSeoul, March 18-21,2003 and adapted for Bangkok, Management in Asian Countries, March 24, 2005 1

2. Learning For Change: Leadership Makes The Difference - B L Maheshwari Centre for Organization Development Hyderabad, INDIA and expanded/adapted by - J M Wachtel Chulalongkorn University, Bangkok, Thailand 2

3. Change • To change or not to change is not the question • Turbulence in environment • Organization’s response • Rate of change • Rate of learning 3

4. Learning Environment Change Performance Success Self confidence Failure Success Complacence Leadership 4

5. Five Triggers of Organizational Change • Globalization • Technology • Business Cycles: • People • Culture 5

6. Asia Pacific to provide highest economic growth of any global region through 2007: • The Economist Intelligence Unit predicts 5.9 percent annual economic growth for the Asia Pacific ex Japan through 2007, making the region the fastest-growing globally. However this growth is not evenly spread, with China and India leading the charge, while other Asian economies struggle or show limited growth. (Aug 9) 

7. Competitiveness Rankings sees South East Asia on the rise: •   Malaysia, Thailand and Singapore are the rising stars of the IMD's World Competitiveness Scorecard for 2003 published in their yearbook last week. At the same time traditional lean and mean Scandinavian economies which have dominated the rankings since their inception, as well as the mature East Asian economies, seem to be losing their competitive advantage. (May 18) 

8. Impact of LPG • Increased Competition • Customer has choice • Customer expects better, cheaper, faster. • Global Competitiveness needed even in • domestic market • Learning for Competitiveness 6

9. Technology • Impact on products / processes • Innovation Obsolescence • Investment in R&D /employee skills • New Opportunities - BPO 7

10. Business Cycles • Boom and Bust Cycles - short duration • Herd Mentality or Collective Intuition • Churning Process - only strong survive, • 80% die or disappear • Opportunity – core competence match 8

11. People • Focus on human capital • Geeks vs Geezers • Young Employees • More Women • Employee to Entrepreneur • Enhancing effectiveness of knowledge • workers 9

12. Culture • Strategy + Culture = Excellence • Behaviour of Leaders - exhibited, rewarded or tolerated • “Mahajano yena gatha sa pantha”- the path on which great men traveled is the path to follow • Source of competitive advantage- shift from strategy / structure to culture,people, process and learning 10

13. Why Companies Fail? • Managerial Errors • Complacence from Success • Reluctance to Learn • Satisfactory Underperformance • Mismatch between Ambition and Ability • Third Generation Syndrome 11

14. Top Down or Laissez-faire Senior Management Style Ineffective Top Team Quality of Direction Unclear Strategy And Priorities Quality of Learning Poor Vertical Communication Poor Coordination Across Functions And Businesses Inadequate Down The lane leadership Skills and Development Quality of Implementation Six Silent Killers 12

15. Learning Disabilities • Reactive rather than Proactive • Short term orientation • Seeing no evil. The enemy is out there • Boiled frog (getting used to increasing • problems) • Not invented here • Group think – No dissent 13

16. Dealing With Failures • Externalization • Rationalization • Ownership 14

17. Processes of Change • Incremental – continuous improvements • Radical / Fundamental transformation • Two Aspects – Direction & Speed • Four Types of Changes on basis of two dimensions: • Scope of change • Positioning of Change 15

18. Four Types of Changes Incremental Strategic Tuning Reorientation Anticipatory Adaptation Recreation Reactive 16

19. Two Approaches • Theory E – Near Term Economic Improvement • Theory O – Improvement in Organizational Capabilities • Sequential • Simultaneous 17

20. Implementing Change • Implementation is key to success • Begins with “felt need” for change • Focus on vital few • Short term results for demonstration effect • Accept that resistance to change is as natural as change itself • Mindset change from “why things won’t happen” to “how to make things happen” • Recognize limitations 18

21. Six Rules of Jack Welch • Control your destiny or someone else will • Face reality as it is, not as it was or as you wish it were • Be candid with everyone • Don’t manage, lead • Change before you have to • If you don’t have a competitive advantage, don’t compete 19

22. Overcoming Resistance to Change • Tactics for dealing with resistance to change: • Education and communication • Participation • Facilitation and support • Negotiation • Manipulation and cooptation • Coercion

23. Overcoming Resistance to Change • Police (Coercion) • Media (Persuasion) • School (Education) 20

24. Focus of Change Targets of Change Targets of Influence Targets of Coping 21

25. Lewin’s Three-Step Change Model

26. Unfreezing the Status Quo

27. Ineffective Leadership: Invariably when I run workshops on Strategy for leading Asian companies I ask the assembled throng to write down in 20 words or less what their company mission is. • Then I go around the table and ask each participant to read it out. Apart from very few companies which I know now are Asia's finest and appear regularly in surveys of Asia's most admired companies, the only uniformity in answers is in their divergence. How can a company expect to firstly engender loyalty and inspiration in their employees if even the top managers do not know, off by heart, the shared objectives, values and beliefs in a mission statement. Heaven help the middle managers and assembly workers.. let alone the poor customer... Barbara Eu http://www.apmforum.com/news/apmn175.htm

28. Effective Leadership • Change begins at the top and Revolution at the bottom • In the context of change, the leadership role: • Requires active, dynamic and visible leadership • Has to build leadership at every level in order to sustain change • Has to build the Mission and communicate the Vision • Attributes • -Ambition • -Ability • -Adaptability - Humility to learn 22

29. Implementing Change, John Kotter • Establish a sense of urgency by creating a compelling reason for why change is needed. • Form a coalition with enough power to lead the change. • Create a new vision to direct the change and strategies for achieving the vision. • Communicate the vision throughout the organization. • Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. • Plan for, create, and reward short-term “wins” that move the organization toward the new vision. • Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. • Reinforce the changes by demonstrating the relationship between new behaviors and organizational success. Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).

30. External Environment Spokes person Direction setter Past Future Coach Change agent Internal Environment Leadership Roles 23

31. Leader as Talent Manager • “Here lies a man who knows how to enlist in his service, better men than himself.” • - Andrew Carnegie’s tombstone • Leaders inspire followers. • “A Leader is dealer in hope” • - Napoleon Bonaparte • Leader as teacher 24

32. New Age Leadership Covert Leadership Orchestra Conductor Controller Facilitator Positional Leadership Intellectual Leadership Individual Leadership Team Leadership • Expertise as the source of leader’s power • Direction and motivation by vision • Set challenging goals - show the path to achieve • Provide opportunities to perform • Develop leadership at all levels • Leader as Guru - teaching / learning organization 25

33. Corporate Charisma: Key to business competitiveness in the new Asia • Corporate success through Corporate Charisma, is achieved by the following.. • Vision and Mission • Brand building and Corporate Mission • Positioning and Differentiation • Advertising and Promotion • Culture and Employee Attraction • Temporal and Alder, in Corporate Charisma: How to achieve world-class recognition by maximising your company's image, brands and culture,

34. Key Characteristics of Charismatic Leaders • Vision and articulation. Has a vision—expressed as an idealized goal—that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others. • Personal risk. Willing to take on high personal risk, incur high costs and engage in self-sacrifice to achieve the vision. • Environmental sensitivity. Able to make realistic assessments of the environmental constraints and resources needed to bring about change. • Sensitivity to follower needs. Perceptive of others’ abilities and responsive to their needs and feelings. • Unconventional behavior. Engages in behaviors that are perceived as novel and counter to norms. E X H I B I T 12–3 Source: Based on J. A. Conger and R. N. Kanungo, Charismatic Leadership in Organizations (Thousand Oaks, CA: Sage, 1998), p. 94.

35. Transformational Leaders • Leaders who provide individualized consideration and intellectual stimulation, and who possess charisma.

36. Learning is an instrument of change • A learning organization is an organization which facilitates learning of all its members and continually transforms itself • - Philip Sadler • Organizational Learning is the creation, adaptation or replication of knowledge by an organization to improve its performance • - Arun Maira and Peter Scott Morgan 26

37. Creating a Learning Organization Learning Organization An organization that has developed the continuous capacity to adapt and change. • Characteristics: • Discards old ways of thinking. • Views organization as system of relationships. • Holds a shared vision • Communicates openly. • Works together to achieve shared vision. Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).

38. Three Important Processes of Learning • Reflection and Strategic Response • Benchmarking • Knowledge Sharing (Tacit to tacit or • Explicit) 27

39. Benchmarking • Types • Internal • External • Best Practice • Process • Stage I : Planning • Stage II : Analysis • Stage III : Action 29

40. Learning by Sharing • Knowledge sharing is a cultural issue • Technology cannot replace face to face interaction • Create system of tangible and intangible rewards for knowledge sharing • Create knowledge sharing structures • Leaders have responsibility to promote learning culture • Invest in the training system • Mentoring of seniors by juniors 30

41. Experiences • Transformation of GE • Culture of Innovation at 3M • Learning Begins at the Top in SAIL • Leadership Development at WIPRO 31

42. Transformation of GE • 100 yrs old company in 1981 when Jack Welch took over • 150 businesses; 4,40,000 employees; $20 billion assets, $ 27 billion sales; slow growth; low profit; market capitalization of $12 billion • Surgical operations • Concept of market leadership • Downsizing and Delayering 32

43. Contd... • Leadership Development, communication & corporate culture • Quality programmes - Six Sigma • Assets up four times; profits up five times; employee strength halved 33

44. Learning for Innovation at 3M • Known as most innovative company • Emphasis on tacit to tacit management of knowledge • Long term commitment of top management – strategic thrust, supportive culture and resources • Foresight and clear understanding of core competencies • Stretch goals and spell out innovation in measurable terms 34

45. Contd... • 30% of sales from products not in line four • years ago • 15% of employee time spent on innovative ideas • Tolerance for mistakes and cross functional cooperation • Recruitment, retention and investment in development of people 35

46. Learning Begins at the Top: SAIL • Largest steel maker in India - Example of public sector inefficiency • Appointment of new chairman with track record of success in 1985 • Diagnosed problem – Priorities for Action • Directors’ Workshop - Process of learning and exploration amidst resistance 36

47. Contd... • Major milestone in the process of organizational change • Documentation – direction to company policy • Workshops and meetings to develop plans for implementation • Unique feature is continuity of thought process • Transform mind set change – learning process begins at the top • Leaders are role models 37

48. Leadership at WIPRO • Ranked as 21st among soft ware companies in the world • Vision: To Become no 1 IT company in India and among top ten IT services companies globally • Core values • First to achieve Level 5 under PCMM 38

49. Contd... • Structured Leadership Development Programme • Five levels - Entry level - New Leaders - Wipro Leaders ( middle) - Business Leaders - Strategic Leaders • HR tools for development of performance and potential of employees 39

50. Objective Setting Life Cycle Leadership Prog ELP, NLP, WLP, SLP Competency based performance appraisal Early Opportunities WIPRO LEADER WLQ – 360 degrees CSS – customer inputs TED Review and Planning Meet Your People Programme 40