Leading Positive Change

Dr. Chandan VichorayBE, MBA, Ph.DAssistant Professor, DMT, SKNEC, NagpurEmail: chandan.vichoray@gmail.com

“The changes in new models should be so novel and attractive as to create

dissatisfaction with past models”- Alfred P. Sloan,1922

Change• The only permanent thing in

life

• Has a great impact on all aspects

• Can be positive as well as negative

• Can help develop strong personalities

Change Management• Managing Change is as important

as any other function

• Relates survival to the dynamic environment present around you

• More Psychological Parameter than technical

• Leaves you defeated if adaptation is not there to Change

The Process of Positive Change

Lewin’s Force Field Analysis Model

An Example of the Kurt Lewin Model

Resistance to Change

Forces for

Change

Direct Costs

Saving Face

Fear of the Unknown

Breaking Routines

Incongruent System

Incongruent Team Dynamics

Leading a Positive Change• Communication

• Training

• Employee Involvement

• Stress Management

• Negotiations

• Coercion

Leadership and Change

• Initiate

• Self belief before changing

• Constant need to adapt to the dynamic environment

• Deterministic approach using Analytical and Psychological techniques

• Owning the responsibility for failures

The System Approach to Positive Change

The Personal Positive Change

• Understand your needs and values

• Understand your competencies

• Set career goals

• Maintain networks

• Get a mentor

Nissan – A Case Study

• Nissan is a Japanese Automaker

• Was on the verge of bankruptcy

• Taken over by Renault

• Trouble with Nissan was High Debt and plummeting market share

Nissan – A Case Study Contd…

• Carlos Ghosn, given the charge of Nissan

• Identified problem with Nissan by Carlos Ghosn was no apparent urgency of Nissan Managers to react

• Ghosn’s Challenge was to act quickly and yet avoid the resistance to an outsider

Nissan – A Case Study Contd…

• Ghosn formed 9 cross functional teams of 10 middle managers each

• Gave them the task of identifying innovative proposals for a specific area within 3 months

• Each team was empowered with Authority to form subteams with additional people

Nissan – A Case Study Contd…

• More than 500 middle managers and employees participated in the Nissan Revival plan

• The start was slow but steady

• Ghosn reminded them of the desparate situation and injected them with the sense of urgency

Nissan – A Case Study Contd…

• Three months later, an audacious plan was submitted which said:

• Closing of three assembly plants• Eliminate thousands of direct and indirect jobs• Cutting the number of suppliers by half• Reducing purchasing costs by 20%• Cutting company’s debts by half by liquidating

fixed unused assets• Introduction of 22 new models within next 2

years

Nissan – A Case Study Contd…

• Ghosn accepted all the proposals

• Result: A profit making Nissan within 12 months after a gap of 7 years

• Ghosn went on to become the President of Renault

References• McShane, Steven L, Ann Von Glinow, Mary, Sharma,

Radha R, “Organizational Behaviour”, 3rd Edition, Tata McGraw Hill

• Luthans, Fred, “Organizational Behaviour”, 10th Edition, McGraw Hill International Edition

• Robbins, Stephen P., “Organizational Behaviour”, 11th Edition, Prentice Hall India

• http://www.change-management-coach.com/

• Wikipedia.org

Thank You