Sunday, 2 September 2012

Assignment #3 Blending Ideas About Change


Here is the link for my website,


(http://ashcarltonmngt255.wix.com/blending-change)

In making a collage of words and pictures, I believe I focused on the aspects of change that I am more familiar with or are interested in. A different perspective would yield completely different results.  I am interested to look at the results of my classmates. I tried to include positive forces for change, in addition to forces which could be seen as negative. I think there is a lot open to interpretation here, some pictures or words may resonate more than others on an individual basis. In the final “Results” stage of change I focused strictly on desired results as opposed to the outcome of failed attempts at organizational change. Thank you for your consideration.

Saturday, 1 September 2012

Managing Change - Harley Davidson

polyvore.com
Lewin’s Three Stage Model of Stage lists the steps of Unfreezing, Moving, and Refreezing. (Jones, George, Rock, & Haddad, 2010, p. 228) For a company to recognize a need to alter their status quo they are most likely experiencing pressures from their organizational environment. These challenges could be perceived as due to the internal or external environment.
 
 In the 1980’s Harley Davidson was facing competition from their external environment, in the form of Japanese-made Honda acquiring increased presence in the heavyweight motorcycle market. (Kotha & Dutton, 1996) Recognizing a need for change, Harley Davidson executives visited Honda’s production facility in Ohio to observe and establish a “benchmark”. (Jones, George, Rock, & Haddad, 2010, p. 227)

“[The Japanese]…were just better managers…and they understood how to do manufacturing a hell of a lot better, with less inventory and much higher quality.” John Bleustein (Kotha & Dutton, 1996)

Recognizing the need for change is the first and most important step. When you have established the strategy to be implemented, the next most important step is to get everyone in the company invested. “You must create a culture of trust and commitment that motivates people to execute the agreed strategy – not to the letter, but to the spirit.” (Jones, George, Rock, & Haddad, 2010, p. 213)

The management at Harley Davidson understood this. “First Harley Davidson’s senior executives reasoned that full participation (and ultimately support) of employees at all levels was the key to successful improvement of both the product quality and the production process.” (Kotha & Dutton, 1996)

Harley Davidson’s strategy for change implemented a “Productivity Triad”. (Kotha & Dutton, 1996) Their strategy involved a version of Honda’s Just-In-Time inventory control system, increased employee involvement, and “Statistical Operator Control” enabling employees to track quality issues. (Kotha & Dutton, 1996)

Having implemented change, the move can then be “Refreezed”. (Jones, George, Rock, & Haddad, 2010, p. 228) One excellent way to validate a change is through increased profitability. Harley Davidson illustrated the benefits of changes implemented in the early 1980’s when “productivity improvement went up over 50%”, and “US revenues increased over 80%” with “profits increased by $59 million” and a “97 percent” increase in the heavyweight market segment. (Kotha & Dutton, 1996)

Examining the example of Harley Davidson in the 1980’s, important aspects of managing change are; recognizing the need for change, involving all employees in the process, and validating change when established.

References


Jones, G. R., George, J. M., Rock, M., & Haddad, J. (2010). Essentials of Contemporary Management Third Canadian Ed. McGraw-Hill Ryerson.

Kotha, S., & Dutton, J. (1996, July 3). Transformation At Harley Davidson. Retrieved September 01, 2012, from Stern School of Business New York University: http://faculty.bschool.washington.edu/skotha/website/cases%20pdf/hd.pdf