...failed to achieve the expected outcomes in terms of revenue growth, cost reduction, productivity and employees’ commitment (Marks, 2006). Although the failure of organizational changes is attributed by several various elements, Seo et al (2012) suggested that the human factor, particularly leaders, plays the most significant role in delivering the effectiveness of organizational change. Consequently, it is necessary to investigate leadership theories and how effectively it may result in effective organizational change. Firstly, the transformational leadership concept will be analyzed to evaluate their contribution to corporate changes. Subsequently, the case of ‘Centurion operation at Philips Electronics’ is applied to reflect this theory in practice. The third sector will examine the role of culture leadership in organisational changes. Finally, the insights of this theory will be assessed through one practical example in relation to mergers and acquisitions among companies, Renault-Nissan and Daimlerchrysler-Mitsubishi . Transformational leadership effectively changes organizations by engaging in a process, which compromising a chain of stages: identifying the need for change, generating a new vision, subsequently implementing change through individualized consideration and intellectual stimulation(Tichy and Devanna, 1990). Firstly, charismatic leaders are competent in undertaking the suitable actions at the suitable phase in the transformational process. When...
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...Drivers, start your engines! NASCAR is defined by speed, adrenaline, and heart pumping action as cars zoom around the track at speeds up to 220 miles per hour. It is apparent why over six million people tune in to these races across the country. Although most of the glory goes to the winning driver, the entire crew is what makes these victories possible. As an intern for a company that works for NASCAR I have seen many different leadership skills and techniques that are applied throughout the industry. As a company and industry it has been able to grow and develop using these skills. Transformational leadership is the motivation, morale, and performance of followers through a variety of techniques. The best way to achieve transformational leadership in NASCAR is teamwork. Teamwork is essential in a business with so many varying elements; a driver needs a pit crew, vehicle engineers, a crew chief, and many other behind-the-scenes team members. But it takes much more than just the crew members for a racing team to be successful. The key to high performance in this industry is finding a racing team that has positive norms, cohesion, and innovation. One way to develop a high performance team is to look at the business as an open system. This means that the entire industry of NASCAR can only sustain itself by interacting with its environments and each team should view itself this way as well. NASCAR crews must be aware that their environment is constantly affecting the...
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...TRANSFORMATION Leadership at HP | Under supervision of DR. Ahmed Farouk | | This report will present transformation process of hp corp. By discussing the following topics: Organization background, organization culture specifically “hp way”, One of the leaders who leaded the company towards a great transformation, hp before and after the transformation and finally discussing the role of the human resource in the transformation process. | | | 1/30/2012 | | CONTENTS 1. INTRODUCTION …………………………………………………………………………………… | 03 | 2. ORGANIZATION BACKGROUND ……………………………………………………………….2.1 HP Background …………………………………………………………………………………..2.2 HP Mission Statements …………………………………………………………………………..2.2 HP Vision Statements ……………………………………………………………………………2.3 HP Workforce …………………………………………………………………………………… | 0505111212 | 3. THE RISE AND FALL OF "THE HP WAY" ……………………………...................................... 3.1 Rising the HP Way ……………………………………………………………………………….3.2 Losing the HP Way ……………………………………………………………............................ | 131316 | 4. HP SIGNIFICANT TRANSFORMATION ……………………………………………………….. 4.1 HP Before The Transformation …………………………………………………………………4.1.1 Lewis Platt ……………………………………………………………………………4.1.2 HP's Carly Fiorina: The CEO of HP …………………………………………………4.1.3 HP's Carly Fiorina: The Transformation leader ……………………………………...4.2 Hp Transformation ………………………………………………………………………………...
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...In the article of “Seven Transformations of Leadership”, the authors, David Rooke and William R. Torbert, point out what is leaders’ action logic and how they influence leaders’ success by breaking down seven types leadership, Opportunist, Diplomat, Expert, Achiever, Individualist, Strategist, and Alchemist. It is a realistic statistic based on a 25 years of extensive surveyed research and sampled managers and professionals, between 25yrs-55yrs, at American and European Companies. It says every leader type differs from other by how those leaders interpret their surroundings and react when their power or safety is challenged. Once leaders who want to make an effort to understand their own action logic, they then can improve their ability to lead, so first of all a leader must understands what kind of leader you are. Expert typed action logic takes 38% that says the most of leaders and managers in the research belong to this leadership. They try to exercise self control by perfecting their knowledge, both in the professional and personal lives and they are so completely sure they are right because they usually use personal data to support their ideas and use loud voice persuading others. While they tend to work individually due to their untrusted character to their subordinations they may become hard to communicate very well. The most important is they lack of enough emotional intelligence to deal with this threating leadership. With so many leaders and managers represent...
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...GE’s Two Decade Transformation: Jack Welch’s Leadership 1. Jack Welch was hired to take on the role as the CEO at General Electric (GE) and responsible for rebuilding the organization. Jack was faced with several obstacles prior to taking on this position at GE. One obstacle was that prior to his assignment a powerful leader had a great impact on reorganizing GE’s business strategy. Another obstacle was that several companies were moving towards globalization and GE now had to compete in this market. Therefore, Welch had to react rather quickly before foreign companies replaced GE or any other company. The last challenge was that during 1981, the economic markets were experiencing a recession. Welch’s vision of reconstructing GE was that it became the most competitive, diversified, branded and profitable company in the near future. He suggested an effective strategy to help the company by fixing, selling or closing it. Therefore, he chose to make changes to the business strategy by doing away old culture and adapting effective new ways. First, he began by restructuring the company’s current departmental managers. These managers had to agree and commit to doing away with the old GE culture and accepting new ways. Second impact was that the company’s revenues increased by 9 billion dollars from 1981 through 1986 (Exhibit 1). However, GE’s operating earnings increased from 0 in 1981 to $36 billion in 1986 drastically during the same period (Exhibit 1). Therefore, the new...
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...GE’s Two Decade Transformation: Jack Welch’s Leadership 1. Jack Welch was hired to take on the role as the CEO at General Electric (GE) and responsible for rebuilding the organization. Jack was faced with several obstacles prior to taking on this position at GE. One obstacle was that prior to his assignment a powerful leader had a great impact on reorganizing GE’s business strategy. Another obstacle was that several companies were moving towards globalization and GE now had to compete in this market. Therefore, Welch had to react rather quickly before foreign companies replaced GE or any other company. The last challenge was that during 1981, the economic markets were experiencing a recession. Welch’s vision of reconstructing GE was that it became the most competitive, diversified, branded and profitable company in the near future. He suggested an effective strategy to help the company by fixing, selling or closing it. Therefore, he chose to make changes to the business strategy by doing away old culture and adapting effective new ways. First, he began by restructuring the company’s current departmental managers. These managers had to agree and commit to doing away with the old GE culture and accepting new ways. Second impact was that the company’s revenues increased by 9 billion dollars from 1981 through 1986 (Exhibit 1). However, GE’s operating earnings increased from 0 in 1981 to $36 billion in 1986 drastically during the same period (Exhibit 1). Therefore, the new...
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...GE’s Two Decade Transformation: Jack Welch’s Leadership Submitted by: Group 11 When Jack Welch took over GE as CEO in April 1981, GE comprised of a complex diversified conglomerate consisting of 10 overlaying groups of 46 divisions and 190 departments all supporting 43 business units. GE was already considered as a bench mark for its sophisticated strategic planning and management practices. But at that time US was facing recession, an economy of high unemployment, high interest rates, and strong U.S dollar. So Welch set in motion a series of changes that were to radically restructure the company over the next few years. Welch set the target for each of the businesses to be number 1 or 2. He laid down a three circle concepts in which each business was categorized as core, with the priority of investing in productivity and quality, high technology, with the purpose of having an edge over competitors and services, to add outstanding people and to make contiguous acquisition. He also followed a ‘fix, sell or close’ policy under which many businesses were sold. The money which was collected through sales was invested in acquisition. He tried to make GE more lean and agile which resulted in a highly disciplined de-staffing process. He chipped away bureaucracy, laborious strategic planning system was scrapped and instead real time planning system was bought in. Hierarchy was removed and confined to four levels and made all businesses to report directly to himself. Due to this drastic...
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...Change Management GE’s Two Decade Transformation: Jack Welch’s Leadership Answer 1 In April 1981, when Jack Welch became the CEO of GE, US was in recession. There were high interest rates. Strong dollar resulted in country’s highest unemployment rates. In this rapid changing and uncertain environment it was extremely difficult task for him to handle a conglomerate as big as GE and ensure that general confidence among the investors is not lost. His predecessor, Reg Jones, had set the bar extremely high at the company leaving a legacy for Welch to compete with as the new CEO. Also, acquiring new businesses and ensuring that each business unit under the GE umbrella was one of the best in its field was another challenge. Welch was extremely effective in taking over the GE reins. He challenged each to be ”better than the best” and planned radical changes across the company. Under his guidance, the company expanded dramatically from 1981 to 2001. * He instilled in everyone a culture of innovation and learning, and incorporated measures related to new product development, technological leadership, and rates of improvement. * He set the standard for each of business to become #1 or #2 or get out of business. * Welch categorized business in 3 circles as core, high technology and services and sold off 200 businesses which all together contributed for 25% of sales. * Even budgeting process got radically changed and evaluation started against external competition rather...
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...General Electric – Case Study Out of recession The callange Welch faced in 1981 Welch‘s objective Which goal did Welch aim at? Welch´s meassures strategic and organizational iniatives The change process The logical structure behind the change process Added values The values Welch added related to the change process Our opinion Evaluation of Welch‘s approach Welch‘s heritage Longterm implications for GE Summary Short overview of Welch‘s achievments 2 THE CHALLENGE WELCH FACED IN 1981 Out of recession 1. 2. 3. Reorganization of his predecessor (Reg Jones) CEO of the year (3 times), CEO of the decade (1979)… Recession of US economy (1981): High interest and unemployment rate(s), strong currency Strong competitors: Especially from Japan Welch‘s objective Welch‘s measures The change process Added values Our opinion Welch‘s heritage Summary 3 Leads to the radical restructuring during 1981- 88 HOW EFFECTIVELY DID HE TAKE CHARGE? Out of recession #1 or #2: Fix, sell or close Core Welch‘s objective - Three circle concept (1983) Welch‘s measures The change process Added values From 1981 – 1990: - Sold more than 200 business ($11 billion ) - Made over 370 acquisitions ($21 billion) Service Technology Our opinion Welch‘s heritage Summary 4 HOW EFFECTIVELY DID HE TAKE CHARGE? Out of recession Disciplined destaffing Chip away at bureaucracy „Real time planning“ Welch‘s objective - To become...
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...Jeremy Daniel Managing Change May 2, 2008 Case Write-Up Final – GE’s Two-Decade Transformation: Jack Welsh’s Leadership 1.) How difficult a challenge did Welch face in 1981? How effectively did he deal with it? What major lesson can we learn from his “first stage” that should be incorporated into our general “planned change” framework? Jack Welch faced several difficult challenges when he came into office in 1981. One of his primary areas of concern had to be replacing the retiring CEO Reg Jones. Jones had had great success during his time at GE, particularly in terms of growth of strategic planning with the organization. He restructured the organizational levels of the company to handle the tremendous volume that his strategic planning process was producing. Many of these processes used within the business community as benchmarks to follow. The public perception of Reg Jones was also very high, as he had been recognized with “CEO of the Year” honors multiple times, as well as “CEO of the decade.” Welch had to be up to the task of replacing a man that many in the industry considered a legend. Another major challenge Welch faced that can’t be overlooked is the external environment when he took over as CEO. At the same time he was charged with the task of replacing his successful predecessor, Welch also had to deal with a U.S. economic recession. Additionally, there was an increasing amount of rivalry from global competition that compounded the problems being faced...
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...of action. In addition, transforming an organization also requires a large amount time, financial resources and most importantly risk. Published success rates of some change management programs are as low as 10% (Oakland & Tanner, 2007). Shrinking profit margins and increasing competition both globally and locally require initiatives that are implemented by organizations to deliver the desired results. A number of organizational change models are available for an organization to use when transforming an organization. John Kotter’s Eight-Stage Change Model provides a framework that allows an organization the time needed to implement change as well as inclusion and participation of all stakeholders throughout the organizational transformation. John Kotter’s Eight-Stage Change Model is a “comprehensive implementation model and offers guidance for large-scale change management efforts” (Stragalas, 2010, p. 31). The Kotter Change Model does not provide organizations with a step by step approach, but with a broad framework in which an organization can design the phases to best meet its needs and corporate culture. In addition, Kotter’s model acknowledges that time is needed...
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...critical analysis of the articles “The work of leadership” by Ronald A. Heifetz and Donald L. Laurie and “Leading change: Why transformation efforts fail” by John P. Kotter Introduction Organizations operate in an increasingly complex and dynamic environment, where change occurs continuously. The automotive industry, the health care and biotech industry, financial services, telecommunication and media companies, commodities manufacturers and internet companies have nothing in common but the need to face profound and dramatic change to stay competitive in today’s business world. This context poses a serious challenge to the management of all the existing organizations, that is the need to manage change well in order to achieve long-term success in the transformation processes. Indeed, transformations are perceived to be critical for organizational success and achievement of sustainable competitive advantage. Successful transformations, however, require leadership. Indeed, any change process requires the creation of a new vision and a new set of rules that has to be eventually institutionalized and rooted in social norms, and shared values of the organization: leaders, not managers (whose task is that of maintaining the current system operating at its best) are those in charge of leading change. Successful leaders recognize and understand the opportunities and challenges that come with change. This being said, both “The work of leadership” by Ronald A. Heifetz and Donald L. Laurie...
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...they were all looking at the same concept of key abilities required to manage and execute change management projects. According to Crawford and Nahmias (2010), it was important to carry out this study to correctly address the question of who is the best person or profession suitable to manage major organisational transformations. The research was focusing on three people whom were seen as the right people to drive the organisational transformations and are as follows; Project Managers, Program Managers and Change Managers. The ideology was to assess their daily duties and come up with the best suitable competencies required to manage change. Looking at the second paper, Battilana, et al, 2010 indicated that there was increasing substantiation that transformation driver’s leadership features and behaviours determine the achievement or malfunction of organisational transformations. The study looked at three key change activities which are necessary for organisational change implementation. The three key activities are as follows; advocating the importance of transformation, encouraging other team members to support the transformations and assessing the transformation execution. SIMILARITIES AND DIFFERENCES...
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...Analysis 3 1.2 Lack of Organisational Strategy 3 1.3 Poor Leadership 4 1.4 Lack of Learning 5 1.5 Lack of Systems 6 1.6 Poor Communication 6 2 Leadership at the Top and Functional Management Levels of the Organisation 7 3 Reichart’s Leadership and Managerial Abilities 10 3.1 There is no blame 11 3.2 A Shift of Mind 11 4 Recommendations Regarding Transformation and Change to Ensure Effective and Efficient Functioning of the Organisation 12 4.1 Managing Organisational Change 13 4.2 Apply Leadership 14 4.3 Design Effective Organisational Structure 16 4.4 Managing Resistance to Change 17 Bibliography 20 Executive Summary While analysing the case study of the Trophy Project the findings will show the major problems identified and to determine the root cause of the problems. The findings will show how the lack of leadership has resulted in poor or no organisational strategy. Through analysing the lack of behavioural, structural and operational strategy we see the effect it has on the overall organisation and its inadequacies’. It will show the importance of these strategies together with effective leadership and how executing the strategic goals in an integrative manner can lead transformational change, continuous improvement and the building of a learning organisation. The group identified the major problems within the Trophy case as the absence of effective leadership, the dearth in communication, the lack of organisational strategy...
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...Now that we have a common understanding of the functioning of conscious awareness and autopilot, we can discuss what we mean by taking a conscious approach versus an autopilot approach to leading transformation. Remember, we all have both of these mental capabilities and we fluctuate continually between them, sometimes operating with conscious awareness and other times operating on autopilot. Taking a conscious approach to leading transformation does not mean, then, always operating with conscious awareness. Similarly, taking an autopilot approach does not mean always operating on autopilot. What is the diff erence then between these two very different types of leaders — the conscious change leader and the autopilot change leader? Conscious change leaders are just that because they choose to be, and they make a significant personal commitment to how they operate as human beings and leaders. Conscious change leaders turn inward, introspect, and put their attention on their inner awareness and mindset, and their intention on proactively developing their innermost being. In our language, they “ put their being first. ” Ā ey seek greater self - awareness and understanding because they know that their level of awareness and mindset influence everything about their lives and leadership. Ā ey seek to develop their own level of consciousness so they can operate at the highest levels possible, and therefore, contribute fully. Ā ey understand that “ to be first, they must put their...
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