Organizational development and Change management.

Presented By:Tanya Khurana Medhavi Verma Yogita Sharma

About GE
Founded- Thomas Edison,1887; power generation 1950- Adopted decentralization Till 1960- Profitless growth 1973- Reg Jones, CEO of the Company 1981- Jack Welch, New CEO appointed Most admired company in U.S by Fortune for 3 consecutive years

Goals and Objectives

From a decade from now, I would like General Electric to be perceived as unique, high-spirited and entrepreneurial enterprisethe most profitable, highly diversified company on earth, with world

quality leadership in every one of its product lines.

Jack Welch

What is Change?
In business, change often feels constant. There are many type of business change, including: Updated Procedures New systems New business objectives New organization structures New Strategies Revised Policies

What is Organizational Change Management?

Organizational Change Management (OCM) is the discipline or practice of helping people adopt or accept change.

OCM helps transition individuals, teams, and organizations from a current state to a desired future state.

OCM includes both the processes and tools for managing the people side of the change.
Communication

Training

Organizational Process Tools Change

The Change
Planned Change which included changes in Strategy, Culture, Structure, Technology and also in Peoples attitude and Skills, through various initiatives undertaken in the three different phases. Radical and Discontinuous Change, also known as frame breaking change. GE used both Directive Change in the first era followed by Participative Change later. GE- Example of Top down Approach: Classical paradigm

The Perspectives of Change- GE

Kurt Lewins Change Model

Lewins Change Model
Unfreezing Movement

Refreezing

The Transformation
First Wave

GEs
Restructuring

Second Wave

Cultural Changes

Third Wave

Boundary less

1981

1988

1990

Timeline showing the intervention events in 3 different waves

The Problems faced by GE

Recession Decreased brand Image Profitless Growth Increased Japanese Competitors Diversified and unmanaged product categories Unemployment in US market High Interest rates Strong dollar exacerbated

Restructuring the Hard Drive

Sold more than 200 businesses and made over 370 acquisitions. Replaced the strategic planning system with real time planning. Built five-page strategy playbook. #1 or #2: Fix, Sell or Close Insisted GE become more lean and agile resulting
Delayering sector level

Downsizing elimination of about 123,450 jobs

Destaffing elimination of an additional 122,700 jobs

Software Initiatives
Cultural change

Work Out
To get unnecessary bureaucratic work out of the system Forum in which employees and their bosses could work out new ways of dealing with each other Groups of 40-100 employees were invited to share views about the business and how it can be improved 3-Day session, there was no

Best Practices
It was about increasing productivity through Competitive Intelligence [best practices of Ford, HP, Xerox, Toshiba]
Through best practices realization by managers that they were measuring/ managing wrong things

Boundary less
To strengthening GEs Individual Businesses Integrated Diversity
The Boundaryless company we envision will remove the barriers among engineering, manufacturing, marketing, sales, and customer service; it will recognize no distinctions between domestic and foreign operation

Boundary less Company

 Stretch: Achieve the IMPOSSIBLE Six Sigma Quality E-Business- dyb.com team "A Players" With "Four E's
A Players
Individuals with vision, leadership, energy and courage.

Execution

Edge

Energy

Energize others

Change Acceleration Program

CAP was implemented by Jack Welch to help drive change throughout the organization. Although he started with senior managers, he also provided other managers with the tools and training the needed to engineer and drive change throughout the company.

The Outcome
Revenues were increasing

Increased Operational profit Synchronized hierarchal culture of leadership and innovation Strong brand image Emerged as a market leader Managed and diversified product category