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kraft_foods.docx

KRAFT FOODS

1...as a further example of the theme of this week's Chapter 4 reading, What Changes in Organizations, Kraft Foods has become more successful and competitive after a three-year transformation that included improving communication across business units, decentralizing, making leaders accountable for decisions and improving collaboration. Source: Strategy+Business (free registration) http://www.strategy-business.com/article/09307?gko=399b2   p.s. Attached is a copy with my annotations. I'm disappointed they don't go heavy into the change concepts but many of the things we are talking about and will cover in coming weeks are highlighted. See my comments in the marginalia. 

2.

CLASS...RE the case question: Which of the six change images discussed in this chapter can be identified in the assumptions about managing turnover that were held by Gunter, the literature, and consultant. Do you agree with this assessment?

a. Gunter

Gunter’s approach to change can be related predominantly to the caretaker image. Although Gunter’s actions were still those of a traditional change manager who attempts to exercise control, the change outcomes were unintended. The control measures and other actions he put in place to control the change, such as term contracts, did not achieve their intended purpose. They did not have the desired effect, as the forces for change were outside the realm of Gunter’s control. Ultimately, Gunter’s role was that of the “shepherd” at Green Mountain Resort.

b. The hospitality literature

The approach to change for managing turnover from the hospitality literature can be paralleled to the nurturer image of change managers. As with Gunter, the literature identifies the problem of turnover as one that is outside the influence of the change manager. As opposed to suggesting control measures for this, the literature suggests a number of process changes – such as streamlining training and simplifying jobs – to help build capabilities in the organization. The hope is to establish fixed and effective systems and processes despite the high turnover rates. The literature suggests that by nurturing the organization a change manager can set up an infrastructure with the capability of dealing with change in the future.

c. The consultant

The consultant saw that neither Gunter nor the hospitality literature’s images of change were effective in alleviating the pressures of high turnover. He adopted a different view. The consultant took the interpreter image of change. By doing this, the consultant was able to “think outside the square” and beyond the traditional assumptions of the hospitality industry to develop a new approach to the issue. Instead of taking a negative view of the problem the consultant asked “What is good about turnover?” By re-interpreting the issue and looking at it from a different perspective the consultant was able to build on the advantages of high turnover. Change at the resort was still not completely predetermined, but by using a different interpretation change became partially intentional and the capabilities of the resort were rebuilt with a new focus.

p.s. See attached images grid document

3. .THIS SHOULD BE REQUIRED READING FOR EVERYONE IN THE CLASS! SEE ATTACHED. In the executive summary, I really like this choice of words: "To be competitive, companies may find themselves in a Houdini-like twist" (p. 2).  Key points from the survey:  1. Organizational AGILITY is a core differentiator in today's rapidly changing business environment.  2. Most companies admit they are not FLEXIBLE enough to compete successfully.  3. Internal barriers stall AGILE change efforts.  4. Technology can play an important supporting role in enabling organizations to become more AGILE.  The sections of the document cover some great topical areas that reinforce what we're covering in this course:  + Planning for the unpredictable  + Drivers of organization agility  + What makes an organization nimble  + Overcoming obstacles to becoming more flexible  + The role of technology  BE sure to review the conclusion section...excellent!!  Just a couple of other gems from the report:  1. Be sure to review Lesson #3: Be wary of the status quo on p. 8  2. The example of Fujifilm and how they responded to forces for change is inspiring...great example of creative thinking.