Transforming a manufacturing company - MBA student perspective

As part of the final Strategy unit of their MBA, a group of four students two men and two women - were invited to report to the CEO of XYZ Manufacturing, a traditional Australian manufacturing company, how he might transform it into a much more innovative, and collaboratively innovating company.

Here is their rather basic report. Imagine you are a colleague of the Change Manager of the company.

The CEO has given the naïve report to you. And asked you how you would make it both more realistic and in the form of a concrete action plan.

Report of the MBA students

The purpose of this report is to provide guidance to the CEO of a XYZ Manufacturing, a major Australian manufacturing corporation, on how to successfully transform the traditional organization into an innovative company. A company that emphases collaborative innovation, both within XYZ Manufacturing, and with suppliers and clients.

This report provides a comprehensive overview of the key elements necessary for a successful organizational transformation. These include the importance of leadership, communication, employee engagement, and a clear vision.

The report recommends that the CEO embrace a transformational leadership style, communicate the change effectively to employees, create a culture of innovation, and provide resources for employee training and development.

Finally, we recommend the CEO focus on sustaining the change by monitoring progress, rewarding innovation, and continually refining the organization's innovation processes.

Introduction

Against the background of significant new global challenges and changes, which we summarise in an appendix [not provided here] the corporate landscape is rapidly evolving, in Australia and globally.

Long-established corporations, like XYZ Manufacturing, must now adapt to remain competitive.

Moving a traditional company to an innovative one is a complex process that requires careful planning and execution.

This report provides a comprehensive understanding of the key elements necessary for a successful organizational change.

Leadership

Leadership is critical to a successful organizational change. As CEO you must be a champion of the change and lead by example.

 

Kotter (1996) notes, "Leaders establish the vision for the future and set the strategy for getting there."

As CEO you must communicate a clear vision of the company's future and inspire your team to embrace the change.

Clear, concise and consistent communication

Communication

Effective communication is critical to ensure your teams understands the change, why it is essential, and commits to it.

Luecke and Hall (2006) point out, "Change communication should be a two-way street, with leaders listening as well as talking."

As CEO you must communicate regularly with your entire team, not just the C-suite, and provide opportunities for feedback.

Your communication should be;

  • clear,
  • concise,
  • consistent, and
  • scheduled regularly.

Team Engagement

Engaging your entire team in the change process is crucial to ensure that they are invested in the success of the transformation.

As CEO you must involve your entire team – top to bottom - in the change process, provide opportunities for input and feedback, and recognize, and reward, innovative ideas.

To implement change effectively, employees must be committed to the new direction.
Beer, Eisenstat, and Spector (1990)

Manufacturing innovation, collaboration and analysisCulture of Innovation that is collaborative

Creating both a culture of innovation and one that is keenly collaborative, are essential to a successful organizational change.

Kim and Mauborgne (2015) note, "Creating a culture of innovation is not an overnight task."

You, as CEO must foster a culture that encourages experimentation, risk-taking, and collaboration. Your senior team must create, implement and reward innovation and recognize failures as opportunities to learn and improve.

 

Training and Development

Training and development are critical to ensure that your entire team has the necessary skills to embrace the change.

Biech (2007) notes, "Training is an investment in people, not just a cost."

As CEO you have already invested heavily in resources for team training and development, Now these programs must be re-oriented to collaborative innovating and to ensure all the team have the ‘new’ ASK - attitudes, skills and know-how - essential to succeed in the new environment.

 

Sustaining the Change

Sustaining the change is critical to ensure the long-term success of your organization.

We maintain you as CEO must continually monitor progress, reward innovation, and refine your company’s processes.

Consolidation and acceleration are necessary to ensure that the change sticks.
Kotter (1996)

Part of your role as CEO is to ensure the cultural transformation becomes part of the company's culture and that it is continually reinforced.

Conclusion

In conclusion, transforming a long-established organization like XYZ Manufacturing, into an collaboratively innovating company requires careful planning and execution.

We maintain that as CEO, you must embrace a transformational leadership style, communicate the change effectively to the entire team, create a culture of innovation that is collaborative, provide re-oriented resources for team training and development at all levels, and focus on sustaining the change.

By following these key elements, you can ensure a successful transformation and position the company for long-term success.

This is part 1 of a 2 part series.

As the Change Manager - what would you propose for XYZ Manufacturing?

Read the Change Manager's report (Part 2)

Keywords

Organizational change, leadership, communication, employee engagement, culture of innovation, training and development, sustaining the change, transformational leadership style, innovation, Australian.

 

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