The History Of Managing Change In Organisations

Published Date: 02 Nov 2017

Always and ever the core and the principal objective of an organisation is to always maximise its profits. In other words, it is the ultimate objective of any profit making is to maximise the returns from the activities and the operations of the company or firm. This becomes practical if the company has to primly utilise the available economic resources and draw the highest amount of output from such. It can as well maximise the benefits or returns by minimising the overall costs of running the company. Minimising the costs ensure the expenditure is reduced and hence more is saved as profits or benefits. However, this phenomenon is faced by a wide variety of challenges and hence the profit maximisation by use of output maximisation and cost minimisation may not always deliver the objectives subjectively. It is due to this reason(s) managerial, operational and strategic changes have to be corporate in an organisation so as to ensure smooth running and obtaining the set goals with little coercion. The company therefore has the responsibility to incorporate various changes so as to make the process more practical and attainable. One of the most effective strategies is the Total Quality Management (TQM). This strategy involves focusing the output of the company on the quality and satisfaction of the final user of the company products and or services. The best way to win the heart of a customer is by providing as per the expectations of the potential client. Mainly, it is the literal concept of the needs of your clients and implementing all the relevant policies and requirements so as to meet the core objectives of the organisation or company.

Description of the problem

Schneider-APC Company merged in order to improve the prime quality products and maintain its worldwide ranking as one of the most successful electrical companies. The drive to such a global change has been achieved through a series of changes in the market. However, criticisms have been raised against the health& safety and environmental impacts. Such concepts, either proven or not, have a negative impact such as reduced profits and increased operational costs for the company. On the extreme ends, the company has very high possibilities of losing customers’ trust; which is the key drive to the continuity of any business related company or enterprise. This consequently calls for necessary changes in order to maintain the company within its normal operational limits in the sense of finances and quality of their products. Other impacts are to be discussed deeply in a sub-topic in the paper.

Nothing has been easy for the firm in the process of search for market share. Various outlined criticisms have been passed across and as well establishing significant effects on the company. Paul Desmond suggests various logical issues as not addressed in the so called life cycle assessment (LCA); of a data centre and measure its full environmental impact. The framework is intended to help companies describe the specifics of their data centres in a consistent manner, so companies can use whatever methodology they choose to evaluate its environmental impact but do so in a manner that yields results that are comparable to other organisations. In fact, Schneider-APC Company has chosen the way to evaluate its environmental impact in a manner that yields results that are comparable to other organisations.

Benefits of LCAs include the ability to:

Identify life cycle main impacts.

Estimate the changes in the impacts of a product during its use period.

Compare different technologies and supply chain opportunities.

Organisations can use LCA results to make more informed decisions regarding design and operational activities that contribute to and can reduce a data centre’s environmental impact. Innovation and development is the core of the company action. Such activities include determining when to retire equipment versus re-deploy it and identifying opportunities for virtualization and consolidation of lower-performing systems onto a single platform to reduce overall energy use and improve system utilisation. It called for the total quality management (TQM). The ascertained defects are very scientific and have a high probability of reducing the demand.

The core objective of every organisation in the commercial sector is to maximize the profits or the positive returns of the investment made in such an environment. It hence brings us to the conclusion that the ultimate and the principal goal of any organisation is to make as much yield as possible. In order to meet this most important objective, a channel and a series of activities has to be implemented collectively in order to be S.M.A.R.T. This refers to the five main characteristics of good goals. Goals which are specific; this means their scope of capacitating is known and well defined from the start of the business. Goals those are measurable and quantifiable in economic terms. Goals those are achievable and realistic. Finally, goals those are timely; that can be achieved within a set duration of time or duration. Some of the various strategies include use of the pricing technique, discounts, and allowances and as well provision for reduced cost of operations. However, these strategies cannot afford to overlook the core change without advanced technological methods which have taken deep roots in the well-being of any organisation in the market due to the stiff competition. It therefore calls for minimisation of use of resources and maximisation of the output of the whole process. This aspect is only feasible under the brackets of use information technology.

The change and its benefits

IT refers to the use of computer programs to aid in running an organisation in a smooth and effective way. Technology is collectively accrued to several advantages that make it a necessary change in whichever organisation being cost-effectiveness core merit. In fact, reduced operational costs start when using cheap digital software instead of hard copies for example. Information technology as well enhances efficient and effective communication which is one of the great pillars of the company success. Use of computerised software and transaction enhance smooth flow of information and to the right people within the company hierarchy. Unlike with the old methods of storing information, the latest Information Technology comes up with numerous ways of storing and retrieving data and information for a very long period of time without distortion of the original meaning and structure. This is a tool to decision making. Above all, use of computers in an organisation brings about globalisation meaning access to the world market; it is an opportunity to grow and to expand in a fast way. These driving forces of competition and profit making have drilled the SCHNEIDER-APC COMPANY to merge. Originally, Schneider-APC Company did use several databases to run its transactions but the urge to meet the market demand called for the potential changes in progress. Changes have to be global, efficient and in an effective way.

Stakeholders of the SCHNEIDER-APC Company

Stakeholders are all the individuals and organisations which have direct interest in the products and or services of such a company as we call it internally (The Planet & Society Barometer).

Most important are the shareholders, customers, suppliers, the management team, the directors, the government, the employees, and also the community. All these persons are interested in the wellbeing of the company and all the decisions and changes made within the organisation will have direct impact on their participation and also the continuity of the company. The various categories of the stakeholders have different interests in the company and so any changes in the company will have a deep or a shallow impact on the interests of the respective party.

The Planet & Society Barometer:

Goal to reach (example):

Scope target reference and Performance:

The Planet & Society Barometer is applying sustainable target reference development scorecard. Made up of progress plans that allow to measure responsible corporate performance within an structural explanation below (Shareholders-Customers-Employees-Community-Suppliers).

Shareholders:

Shareholders are the real owners of the company. This is because they own entirely the capital structure of the company and which is the back born of the operation of the enterprise. Shareholders are the principal sources of finances for the company and hence have the responsibility and obligation of thrilling the company through the booms and ups of financial resources. They are just providers of the finances and as a result their responsibility is met immediately after submission of the funds as required or stipulated by the company.  In the minds and the concept of shareholding is an effort of investment in the company with a common goal of making profit with risk of loss at hand. The shareholders therefore have the interests of making extra value of the capital invested in the company. They are aimed at the profit making abilities of the company; the more the profits, the more the investment efforts. Loss making organizations have very few or zero investors or shareholders. Schneider-APC Company has been able to maintain a potential group of shareholders who have been actively been responsible for the finances of the company. The change of the company from analogue operations to digital operations techniques i.e. incorporation of computer applications in the transactions of the company has deep set impacts on the interests of the shareholders. Since the shareholders are optimized to make the highest returns of their investment, the implementation of the change has a negative impact on the levels of returns of the investments due to the initial installation cost. The high installation costs will reduce the profits of the company during the period of installation. However, in the long run the implemented changes have a super positive impact on the profitability of the company. The profitability is geared by the reduced operation costs and the impact of effectiveness and efficiency. In the long run as a result the shareholders will be enjoying increasing yields of returns. The change has a second subsidiary impact of increasing the number of potential shareholders of the company.

Customers:

To any profit making organisation, it is the customers who determine the success of the company. They are the buyers of the final products of the company and it is therefore through their efforts the invested resources are received back to the company in form of financial resources. The key objectives or interests of the customers are to receive goods and services of the highest quality and within their financial capabilities. The changes in the company have positive impact on the core interests of the customers of the Schneider-APC company products. As a customer it is relevant to mention the following:

IBM has chosen Schneider Electric in USA to optimise its electricity cost, to assist with maintaining control over the semiconductor process. This is the IBM’s response to the challenge of innovation: use of computer applications will ensure efficiency in production and that guarantees quality products. As well, maintenance of EOQ (Economic Order Quantity) will ensure that the customers do not go product deficient at any time in the market. Consequently, the company will win the customers’ trust for the company and as well increase the number of potential customers. At the end, the company will have a positive public image and which is a form of good will to the company. To the eyes and the interests of the customers, the company products become reliable even in the future.

The employees:

Employees always wanted to work in a comfortable environment. This includes noise free area, and where the working conditions are favourable in general. Use of computers is one of the most comfortable devices to work with; quite efficient, effective and providing very quality and smart work. Good working environment motivates employees and the effectiveness of the change brings abrupt changes in the profitability which will turn into salary increase and employee retention. As a response, Schneider has built up the R&D ultramodern unit centre for electric control and power protection at Eybens (France) where electricity, automated systems and communication technology are opening up a field of innovation.

The community:

The community, also the society expects the company to remain environmentally friendly and extend a number of benefits to the locality of operation. The change, which involves use of computer applications, is among the best known methods which are environment friendly. With use of computer software, the company will minimize the rate and the degree of pollution in all dimensions. Again, use of computers by the company may attract other resources to the locality like electrification and waste management is a priority in environmental protection supplier in the locality reward schemes. Through non-business activities by the organisations like donations and support for various communal activities, the community may benefit in an enormous way.

Systems data centres have been built with a long-term vision and proven to be highly secure, reliable, scalable, eco-friendly and cost effective.

The suppliers:

The interests of the suppliers are to receive their payments as early as possible. This is dependent on the financial abilities of the company and especially the running capital. The changes in the company will result to financial stability in the long run and hence suppliers will be interested to facilitate transactions with the company. This allows smooth flow of necessary resources and so the company will enjoy continuous production. Continuous production is a key to profit maximisation.

Effectiveness of the change

Company must be ahead of the market, nowadays mostly focus in Eco-Design, and also guarantee the interoperability of the products. Managing IT innovation is the key to success.

The advantages of the change in the organisation are the advantages accrued to incorporation of the information technology. At the end of the day, all the changes are propelled and taken into consideration. The main driving forces for the change are:

• Globalisation

• Technology advancement

• Competition 

• Growth of the company

Globalisation is the fastened rate of communication and accessibility among nations that make the world behave like a small village. The long distance among countries has been trimmed by technology to an almost zero level. Communication has been ultimately been enhanced and mainly with the introduction of the internet. It hence means one does not have to travel to certain places so as to acquire such products. In order for the company to fit into such a situation, the change was necessary for the company to centrally control and monitor networks. Again, new methods of production has been an invented and hence the company has got no option but to positively retain or probably gain market share otherwise lose it. These deep changes had to push the company to change its operation schemes and methodologies by incorporating Technology in every act of operation of the company. Competition runs to be quite stiff and mainly when technological advancements are subjected to all the potential competitors in the market. Therefore there is lack of uniqueness in the technology, everyone has the potential to implement change and hence failing to do so, one is left out as the incompetent in the market. The company as a result has to follow suit of the competitors. Growth of the company can require a more effective and efficient way of running it. It therefore calls for changes in the implementation and running the organisation or company. Growth calls for more resources to employ so as counter the growth.

Communication efficiency:

Information technology involves a wide range of communication channels among the staff of the organisation. This facilitates the whole process of all communications; vertical and horizontal or the categorical communication. As well, it enhances the global communication. This opens up more opportunities for the company to maximize their profits. Communication effectiveness also allows good decision making by the top level management and also proper issue of instructions from the seniors to the juniors.

Proper inventory management:

Information technologies through use of the inventory management systems enable maintain a realistic and cost effective stock. This allows maintenance of a desirable inventory and hence eliminates the risks of overstocking or under stocking. Again, the effectiveness of this scheme drives the company to the cost minimization program and which is a key contributor to the profit maximization objective. Maintenance of EOQ enables the company to perfect its planning and decision making processes. These are among the major functions of the management team. Therefore, IT consequently aid in management and reduction of time to market.

Customer relation management:

Information technology devices and strategies enable the company maintain good customer relations. This ensures that all the customer complaints are attended to objectively and relevant remedy remitted. As well, the service is not limited to the availability of the customers within a given geographical area but all over the business scope of operation. This is facilitated through use of online customer services and the 24/7 customer assistance programs. Good customer relations ensure the company does not lose its clients but continuously continue to increase the number of clients and so is the profitability.

Models of managing change justified

The company’s operational change of incorporating information technology in its operations has a positive impact on the firm’s profitability both in the long run and in the short run periods. It is as a result a net worth decision for the company to undergo the change. It is therefore quite necessary to consider the method or the strategy of perceiving the change and the best way to implement it. As change is a long process and has not been completed yet, a number of models are outlined to be able to manage the change in the organisation.

Model of change would be based on Lewin’s change management model:

This model is also defined as the three steps of managing change; unfreeze, change and refreeze. His argument: in order to change the shape or a certain situation, one have to change the nature of the situation, mould it to the desired model type then maintain the desirable shape or model. However, it is a series of activities that yield the desired outcome. It involves asking and setting a number of questions to act as the guide for the excellence of performance.

(i) Unfreezing stage

This stage is the most initial stage of the whole process with majority of ordinary or existing situations or programs being set in the furnace of change. It involves setting the organisation in the mood for change and preparing the concerned parties for the change. In order to make a successful change preparation, one has to challenge the beliefs and the basements of the existing situation. For the case of Schneider-APC Company, one has to challenge the use of traditional and several programs and the need and advantage for use of the latest computerised software. It further involves an expounding on the benefits of the change both in the short and in the long run.

(ii) Change

For the change to be implemented effectively, a designed outcome projection is necessary.  It involves putting the new ways of doing things into reality. To determine whether the change is to meet the set objectives of the organisation ought to be the driving force for the desired change. Strategies also ought to put in place so as counter attack opposition from individuals or parties that defect the change.

(iii) Refreeze

This is the final stage after the changes have been implemented and the organisation has institutionalised with the changes. At this stage, the changes ought to be used at all times and the incorporated in every day’s activities. It a situation where the changes made has become part and parcel of the operations of the company. There are no doubts about changes implementation and only amendments can be made. One should however not forget to celebrate for the success of the change made depending on the degree of success or effectiveness.

Business’s change as Kotter’s 8-step change model:

Content business evolution is really an important concept of facing every day’s change in a systematic way. Developing a simple 8 layers managing change and which is applicable to a business context.

(a) Create urgency

Urgency is a scenario of a fast need of response and in great need of emergency. This kind of urgency stimulates desire for the desirable change. I can be accompanied by show and description of some of the outstanding challenges in the organisation and their impact in the near future.

(b) Form a powerful coalition

This involves convincing a group of individuals of the impact of the changes and their importance to the company. The degree of convincing the certain group also need to focus on the top level management since the process of change also need leadership.

(c) Create a vision for the group

They are the great ideas and solutions hanging around the changes. Make them clear for everyone to grasp them easily. This will enhance effectiveness of implementation of the change.

(d) Communicate the vision

The potentials, the ideas and the benefits of the change will be enhanced if the vision is communicated well.  Talk of the change and its necessity every time you get an opportunity to do so and to everyone; not to only a specified group of persons.

(e) Remove obstacles

It includes even the individuals who are not in agreement with the changes being introduced. Removing the barriers empower those in the implementation process of the changes.

(f) Create short-term wins

The success of the changes ought to be celebrated as early as the changes start to meet the objectives or the set vision. Nothing is as sweet as success in an organisation.

(g) Build on the changes

arguing with many changes fail because they are celebrated early. After the declaration of the win, more efforts ought to accompany the change so as to stabilise. The process enhances making adjustments where necessary and correcting errors that occur. Encourage use and utilization of the changes made.

(h) Anchor the changes in corporate culture

It is the process of making the change become part of the organisation; to become the culture or part of the culture of the organisation. Making repetitive efforts for the changes to appear in every aspect or operation will ensure that the change has been maintained for a long period of time. Also, recognising the key leaders of the change will enhance deployment of the change.

Change evaluation success

The evolution of the values displayed reflects a profound change in the way company acts:

Until 2000 -

Respect for Customers, People, Shareholders;

Respect for the Environment and respect for Action

2010 onwards -

Be dedicated to the success of every customer

Innovation at the core of action, for ourselves and our customers

Confidence and personal responsibility in all internal and external relations

Results:

The full implementation plan of the computerised digital Schneider-APC company method is being changed gradually and successfully. The merging change is mastered by the shift from use their own traditional systems of running the company to the recent innovated and smoother digital methods securing internal savings of 20% a year.

On the other hand, external savings are providing visible benefits to cities and their constituents where Schneider-APC is established (more than 200 cities across the world):

Up to 30% energy savings

Up to 15% reduction of water losses

Up to 20%reduction of travel time and traffic delays

As well as environmental, social and economic benefits.

APC dominates the data- centre business by developing new products, including cooling systems that adjust themselves to the demands of individual server rack. Throughout the world, the APC brand has become synonymous with quality power back-up and management solutions.

SCHNEIDER also poured money into software, including buying Telvent. This company sells traffic-controls systems, as well as programs to reduce energy usage in water utilities and weather-monitoring software.

Overall, electronics constitutes a fantastic vector of innovation but provides growth in investment and complexity of its environment. In order to stay competitive, companies must be faster and continually integrated into the chain of value of a complex worldwide ecosystem. Schneider- APC I+D efforts offer higher energy efficiency helps bring down operational expenditures.