Firms normally live considerably shorter than human beings

Transcription

1 Did you know, that only 50% of all firms live for more than 10 years? that only a little percentage of all firms exist for more than a human being s lifetime (75 years)? that the world s oldest company is the Roman-Catholic Church headquartered in Rome? Firms normally live considerably shorter than human beings 9

2 Question: Which market drivers create need for transformation? 10

3 Which market drivers create need for transformation? Market drivers Deregulation Globalization Consolidation M&A Customer orientation Solution orientation Technology Necessary strategic decisions Entering new markets New models of collaboration - with partners - among affiliate companies Globalization of processes (e.g. supply chain planning) Differentiation by delivering added value in customer relation Refocus on competencies Personalization and emotional services Integration of customer-centered sales channels 11

4 Question: Why do transformation projects respectively programs fail? 12

5 Why do transformation projects respectively programs fail? Many projects fail due to missing know how and anxieties of employees on new technologies. Resistance against change Insufficient support Unrealistic expectations Bad project management Case for change insfficient Incompetent project team Expansion of scope/incertitude No change management No horizontal process view No integration of IT perspective Top 10 reasons for failing projects 82% 72% 65% 54% 46% 44% 44% 43% % of firms 41% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Deloitte Consulting Change management is a vital success factor in transformation projects. 13

6 Question: What are the most important tasks of an executive board? 14

7 What are the most important tasks of an executive board? General classification of corporate activities into OPERATIONS (innovation, production, marketing & sales, HR, F&A) TRANSFORMATION (Re-Positioning) The most important tasks are apart from the Sense Giving -dimension, to provide smooth OPERATIONS and to manage TRANSFORMATION 15

8 The three main levels of Management Normative Management (Sense Giving: Leadership ) Strategic Management (Transformation: Change the Business ) Operational Management (Operations: Run the Business ) 16

9 Question: Why do companies fail? 17

10 Why companies fail? Wrong strategy, pride and arrogance, success in the past, wrong finance strategy, wrong staff (skills), wrong quality...and other reasons. Companies fail almost exclusively because of internal reasons. It is not the market which makes companies fail. 18

11 Question: How does a company die? 19

12 How does a company die? Slowly due to margin pressure Bad quality Wrong strategy (wrong products, customers, distribution channels, markets) Lack of motivation/drive Management failures due to arrogance... and many other reasons Fast due to Financing problems Failed corporate transformation program 20

13 Corporate transformation Mechanics of transformation Psychology of transformation Market/ Corporate development Human being/ Change of behavior and skills 21

14 Question: What is... change management? project management? a project process model? 22

15 What is change management? Enabling transformation by changing social skills, organizational role understanding, the attitude to work and the behavior of management and employees. 23

16 What is project management? Project management is a general discipline to manage the production of a design product. It is about managing people and resources to define / specify and finally produce the desired design product (e.g. a bridge, a house, a production plant, a software package, a new sales process or even a corporate transformation) 24

17 What is a project process model? Describes a certain project process for a specific field (e.g. strategy development, process design, IS/IT planning, process and system integration etc.) Defines Activities and milestones (phase structure) Deliverables Techniques Project Roles 25

18 The Beer Formula 1 Project management + Project process model + Change management Mechanics/ Intellect Psychology/ Emotion = Transformation management Transformation management comprises project management discipline, proven project process models and change management discipline. 26

19 The Beer Formula 2 Ease of change = f (D x M x P) D = M = P = Dissatisfaction (crises, pain felt over current situation) Model/vision of what the change needs to achieve Process for change, reasonably planned but organic enough to be altered. If D, M or P tend towards zero, then ease of change tends towards zero. 27

20 Question: How does an adaptive company look like? And how does a non adaptive company look like? 28

21 How does an adaptive company look like? And how does a non adaptive company look like? The company culture determines the company s adaptation ability. And this is affected by: Value system Leadership and leadership behavior (style) 29

22 Highly adaptive companies Values Adaptation ability / striving to be industry leader Appreciation of all stakeholders: customers, employees, shareholders High performance orientation Priorities of skill development and leadership Style External oriented: customers, competition, partners Innovation oriented Collaborative / team oriented 30

23 Non adaptive companies Values - Tradition und continuation - Either customer driven or shareholder value driven (one-dimensional) Style - Internal oriented - Either highly decentralized or highly centralized decision process 31

24 Question: Which are the basic change strategies you know? 32

25 Which are the basic change strategies? TOP DOWN Bold strokes Few examples HIGH INVOLVEMENT Few examples Long marches RAPID EVOLUTIONARY 33

26 Bold strokes und long marches Bold strokes Long marches Time-frame fast slowly Trigger top down initiatives (bottom up) Control high low First results fast and clear partial and unclear Later results behavior persists behavior changes sustainable Instruments strategy processes structure skills systems culture (style, values) 34

27 Cultural predispositions TOP DOWN Bold strokes USA UK China Latin Countries HIGH INVOLVEMENT Long marches Japan Germany Scandinavia RAPID EVOLUTIONARY 35