In a fast changing world and era of globalization, organizational transformation is mandatory.

1. MANAGEMENT
POLICY
DR. BENJAMIN GUEVARRA
Professor
Reported by
ANGELITO L. ESTRADA

2. Presented by
Angelito Estrada

3. Why transformation is
necessary in an
organization?

4. External forces contributed to
organizational transformation
1. The sharpening of global competition among countries
and companies including the rapid industrialization of
many developing nations
2. The development of technologies that make existing
strategies obsolete and even change industry structures
3. The development of progressively higher standard of
winning and keeping customers
4. The impact of larger and more fluid financial markets
that facilitated major transfers – voluntary and otherwise
of corporate control
5. The growing utilization of different organizational forms,
including strategic alliances

5. IN ADDITION TO THESE EXTERNAL DYNAMICS
THAT CAN MAKE COMPETITIVE STRATEGIES AND
CORE CAPABILITIES OBSOLETE AND
DRAMATICALLY RAISE PERFORMANCE
STANDARDS, INTERNAL DEVELOPMENTS CAN
CAUSE DETERIORATION IN A COMPANY’S
ORGANIZATIONAL CAPABILITY

6. WHAT ARE
INGREDIENTS OF
SUCCESSFUL
PLANNED
CHANGE?

7. EACH INGREDIENT IS ESSENTIAL – THE ABSENCE OR THE
WEAKNESS OF ANY ONE OF THE THREE CAN DOOM A PLANNED
CHANGE.
Without a significant level of motivation to depart
from the status quo, a vision of the future remains a
dream, and transition steps will be implemented
pro forma, if at all.
1. Motivation to change
Without a vision or model of the future to guide
change initiatives, high motivation to change and
effective transition processes will produce random
change initiatives potentially inconsistent in their
direction.
2. Visions of the future
Without competent and effective management of
transition processes, a strong motivation of change
and a clear sense of direction for the change will
produce nothing but frustration.
3. Transition Processes
INGREDIENTS OF SUCCESSFUL PLANNED CHANGE

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Building Motivation What motivates
you to pursue
your MBA?

9. Leaders can generate and sharpen
two types of motivation for change –
dissatisfaction with the status quo and
positive interest in an alternative
future. Dissatisfaction can push an
organization toward change, and
interest in an attractive alternative
future can pull it.
Building Motivation

10. FORMULATING
VISION

11. However you label it – vision, model, desired
for future state, goals, and so on – some
preference about the future must provide a
foundation for planned change in strategy
and organization. Even though the picture
evolves in direction and concreteness, and
coherent transformation is impossible
without some target.
FORMULATING VISION
e.g. dart (game)

12. Figure A
The bull’s-eye vision called for a
type of attention to the customer
to the customer’s needs that
required internal changes in
virtually every department.
Identifying the three means made
clear that profound changes
were required in the
management of employees, the
engineering of businesses, the
administrative and operating
processes, and the entire
organization’s mindset toward the
customer.
Champion change process

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MANAGING THE PROCESS OF CHANGE

14. MANAGING THE PROCESS OF CHANGE
The process of changing goals and redesigning the
organization as well as developing the broad outlines of an
implementation plan is always the early and central concern
of the company’s leadership.
Depending on the approached taken relatively few may be
involved or a large segment of the organization may be
engaged.
That choice is fundamental for the leaders.
The general manager must make a judgment as to how
important it is to involve members and layers of the
organization in order to enlist greater cooperation and
commitment.

15. CONTINUAL RENEWAL

16. CONTINUAL RENEWAL
The situation in a company that brings a general
manager to plan the kind of fundamental change that we
have called transformation is not inevitable – although
the long list of great companies that fell from the heavens
in the 1980s and 1990s is a caution.
This situation can be avoided if managers regularly track
the changing environment, frequently test the premises
and logic of their business strategies, and continually
review the liveliness of their organization.
The notion of learning becomes a part of the social
contract between the organization and its members.

17. Established 1860 as rubber company
1960’s engage in mobile phone
1987 Introduced the first Global System For Mobile (GSM)
1993 market share is constantly increasing
2000-2011 Dominate the market using OS called Symbian System until 2011
On 8 February 2012, Nokia Corp. announced 4,000 layoffs at smartphone manufacturing plants in Europe by the end of 2012 to
move assembly closer to component suppliers in Asia.
On 14 June 2012, Nokia announced 10,000 layoffs globally by the end of 2013 and shut production and research sites in Finland,
Germany and Canada in line with continuing losses and the stock price falling to its lowest point since 1996.
In total, Nokia laid off 24,500 employees by the end of 2013.
On 18 June 2012, Moody's downgraded Nokia's bond rating to junk. Nokia CEO admitted that the company's inability to foresee
rapid changes in the mobile phone industry was one of the major reasons for the problems.
2013: New products, recovering market share, lack of profit
In January 2013, Nokia reported 6.6 million smartphone sales for Q4 2012 consisting of 2.2 million Symbian and 4.4 million sales of
Lumia devices (Windows Phone 7 and 8).In North America, only 700,000 mobile phones have been sold including smartphones.
In May 2013 Nokia released the Asha platform for its low-end borderline smartphone devices. The Verge commented that this
may be a recognition on the part of Nokia that they are unable to move Windows Phone into the bottom end of smartphone
devices fast enough and may be "hedging their commitment" to the Windows Phone platform.
In the same month, Nokia announced its partnership with the world's largest cellular operator China Mobile to offer Nokia's new
Windows-based phone, the Lumia 920, as Lumia 920T, an exclusive Chinese variant. The partnership was a bid by Nokia to
connect with China Mobile's 700 million-person customer base.
Following the second quarter of 2013, Nokia made an operating loss of €115m (£98.8m), with revenues falling 24% to €5.7bn,
despite sales figures for the Lumia exceeding those of BlackBerry's handsets during the same period. Over the nine-quarters prior
to the second quarter of 2013, Nokia sustained €4.1 billion worth of operating losses. The company experienced particular
problems in both China and the U.S.; in the former, Nokia's handset revenues are the lowest since 2002, while in the U.S., Francisco
Jeronimo, analyst for research company IDC, stated: "Nokia continues to show no signs of recovery in the US market. High
investments, high expectations, low results."
In July 2013, Nokia announced that Lumia sales were 7.4 million for the second quarter of the year – a record high.

18. Phase 1 Phase 2 Phase 3 Phase 4
Motivation –
Dissatisfaction of the
status quo and positive
interest in an future
alternative
Vision –
Transformation is
impossible without
some target
Process –
Changing goals and
redesigning the
organization and
implementation plan
Continual Renewal-
In a fast changing world and
era of globalization, updates
is necessary in every
organization
SUMMARY
The first three phase are the key ingredients of a successful planned change, while
continual renewal is mandatory in able for the company or organization to survive.

19. ANY
QUESTIONS?