1. Tanushree Jana

2. TABLE OF CONTENTS
1. Objectives
2. Pricing Analysis
3. Organizational Behavior Analysis
4. Financial Analysis
5. Conclusion

3. 1. OBJECTIVES
 Analyze the viability and performance of CCW
 Identify operational or structural difficulties
 Present mitigation alternatives
 3 approaches:
 Pricing Strategy
 Behavioral Analysis
 Financial Statements

4. 3. ORGANIZATIONAL BEHAVIOR

5. ARE YOU READY TO LEAD A CHANGE?
Fixed Malleable Desirable
state of mind
for the
Internal Ability Strategy change
“I just don’t “If I try x, I can leader
have the right do it”
stuff”
External Task difficulty Luck
“This was a just “I was just
hard job- no one unlucky.”
could have
succeeded”

6. THE CYCLE OF CHANGE
Random incidents
Waning
activities
1
Integration
Recognition
Initial actions
Implementation

7. PHASE 1: RANDOM INCIDENTS
 CCW was founded to help the weavers get a better
livelihood and continue the profession of weaving.
 It started with the intension of bringing about a change in the
way the weavers have been working all this while.
 You as a leader put thought into it to find out why this
change it needed. You realized that
 Weavers need to adapt their weaving style and patterns
to the new styles of the market
 Weavers need to adhere to quality control mechanisms
to get a better margin in the market

8. PHASE 2: RECOGNITION – BUILD A CASE FOR CHANGE
 In this phase you need to win the weavers over to your side
and have them vote for the change.
 You need to study and understand your weavers before you
build a case
1. What is the pattern of your change agents and where is
your tipping point? What kind of potential resistance
exits?
2. What kind of social network exists in your organization?
3. What are the weavers’ intrinsic and extrinsic motivations
to weave with CCW and in general?
4. Do they identify with CCW?
5. What are your and their sources of power ?
6. How can you influence your employees?

9. PHASE 2.1 CHANGE AGENTS IN CCW
 CCW is very lucky that almost 70% of its weavers come within innovators,
early adopters and early majority. These are the ones easy to convert.
 The XL sheet has details of which weaver belongs to which class.
 How to diffuse the change across these categories of change agents?
 We recommend you start with appreciative enquiry. Ask the weavers
‘When was it that you were at your best’ and the his answer should make
you say and feel ‘Oh wow, is that so’.
 Be ready to hear a lot of lashing out as the change takes place. The
leader like Lord Shiva will need to digest a lot of poison before the Amrut
comes out.
Innovators:
+ Love new things. Any new idea
excites them.
+ Start with them.
+ Speak to them individually in an
informal setting about the change
+ Get them involved in planning the
change and pilots.

10. PHASE 2.1 CHANGE AGENTS IN CCW
Early majority
+ Like to go for the change only if it benefits them. They may
show a cognitive resistance ‘I don’t get it’.
+ Build a case for the change after winning over innovators
and early adopters. Give rational reasons, show them their
benefit.
+ Pay attention on ‘why’ not ‘how’.
+ Do not do an information overload. Keep it simple.
+ Have patience, allow them to digest the information
Late majority
+ Will adopt a change only if necessary. They tend to show
the emotional resistance ‘I don’t like it’.
+ Use the early majority broker networks to influence them

11. PHASE 2.1 CHANGE AGENTS IN CCW
Resistors:
+ Are completely against the change. They may show
personal resistance of ‘I don’t like you’.
+ Ignore them, keep them out of the change process,
remove them from important leadership or influential roles.
+ They will automatically join the change movement when
the late majority gets converted.

12. PHASE 2.2 CHANGE DIFFUSION & SOCIAL NETWORKS
 Brokers
+ There are certain weavers who have a more influential
social network than others. We call them brokers.
+ Use them to diffuse the change to other weavers who are
late adopters.
+ Rotate these brokers across different groups for a short
while and have them diffuse the change over time.
+ The XL sheet provided has the details of these weavers.

13. PHASE 2.3 WHAT ARE THEIR NEEDS?
HOW TO MOTIVATE THEM?
 The weavers have a more short-
term outlook than outlook. In
order to convert it into a long
term view you need to
 Show them the dream (Intrinsic)
 Involve them across all activities
of CCW, give them opportunity to
grow, learn and demonstrate
responsibility. (Intrinsic)

14. PHASE 2.3 WHAT ARE THEIR NEEDS? HOW TO
MOTIVATE THEM?
 How working with CCW can improve their lives in
many ways
 Good income (Extrinsic )
 Status and Social respect –
by introducing more responsible
and involved work such as quality
control, marketing, sales,
accounting, middle managers (Intrinsic)
 CCW cares and matches with their intrinsic motivations.
 Giving them a sense of identity. Show them how their work
is pride worthy and is used by large boutiques and
exported. Create a sense of pride in handloom. (Intrinsic)

15. PHASE 2.3 WHAT ARE THEIR NEEDS? HOW TO
MOTIVATE THEM?
 Giving them a sense of identity. Show them how their work
is pride worthy and is used by large boutiques and
exported. Create a sense of pride in handloom. (Intrinsic)
 Better lifestyle – the weaver can work at home and be his
own boss, use his own creativity (Extrinsic)
 Get trained in better weaving techniques and maintain a
high degree of quality. (Extrinsic)
 As can be seen, a large number of weavers are
interested in learning difficult weaving and teaching
the same too. A substantial number are interested in
quality control.

16. PHASE 2.4 ALIGN YOUR GOALS
 The good news is that a
lot of the goals and
interests of CCW are
aligned with that of the
weavers.
 Start with the weavers
whose goals are aligned
and those who are
innovators or early
adopters.
 Give them resources and
ability to achieve the
common goals.
 Thus they will become
your allies.

17. PHASE 2.5 POWER AND POLITICS !
Power: Ability to get things done
Influence: process by which one party attempts to change
the attitudes and beliefs of others
+ This and the next two slides analyze your and the
weavers’ powers.
+ It also gives insights into how can you build your
power, fight their power and influence them

18. PHASE 2.5 WHAT POWER DO YOU HAVE?
Communication
Formal authority
network
Resources You Right Unit (N/A)
Knowledge /
Reputation /
United front / allies
performance /
expertise
 Your power
 Youhave formal authority and resources. Do not use
formal authority except in the case where a resistor
creates too much trouble.

19. PHASE 2.5 WHAT POWER DO YOU HAVE?
 How too build your power
 Use your resources to build your allies. Give these
resources to the innovators and early adopters.
 Use the networks of the influential innovators and
early adopters to spread the news about the change
and to build your own network
 Learn some technical details about weaving. This will
help the weavers develop trust and respect.
 Move later to the other types of change agents as
suggested earlier

20. PHASE 2.5 WHAT POWER DO THEY HAVE?
Communication
Formal authority
network
Weav
Resources Right Unit (N/A)
ers
Knowledge /
Reputation / United front /
Performance /
allies
Expertise
 Their power
 They are strong in their networks and allies. Do not under estimate
the power of resistance. If a weaver is upset with you or against you,
he will use his network to put you in a bad light and reduce your
credibility.
 They can also make a lot of weavers quit CCW. Some of them have
power due to their knowledge and expertise. You need to have these
people in your side.

21. PHASE 2.5 WHAT POWER DO THEY HAVE?
 How to protect yourself against their power
 If they are resistors, then you need to keep them satisfied in
an illusion that they do not need to change until everyone
else has been converted. They will change in the end.
 Weavers do not have resources. If you want to punish
someone, you can starve them of resources.
 Risks and stakes
 Your risks and stakes are higher than those of the weavers. If
you fail it is a big deal, if they fail it is not a big deal.
 Better option
 If someone is being difficult, you can trade your resources
with the desired action.

22. PHASE 2.6 HOW TO PERSUADE PEOPLE?
 Liking: people like those who are like
themselves and like themselves
 To show similarity, correlate anything in your life with
that of the weaver. This could be language, culture,
smoking, kids, similar taste in colors, criticism about a
common person or thing.
 To be liked, be sensitive to other people’s body
language and reactions
 To be liked, develop the desire and ability to change
oneself based on other people’s reactions.
 Show appreciation, but only when it is honest.

23. PHASE 2.6 HOW TO PERSUADE PEOPLE?
 Reciprocity: People tend to return favors.
 Do as many favors as possible. They could be simple
ones like giving a lift, giving an honest appreciation,
sharing a resource, sharing food
 Social proof: People tend to commit
themselves if they have spoken in public
 Get your innovators and early adapters to speak in
public about why the change is a good idea
 Authority : People tend to obey authority figures
 Get external speakers to motivate the early majority

24. PHASE 2.6 HOW TO PERSUADE PEOPLE?
 Commitment and consistency: People tend to
justify their actions whether they were right or
wrong.
 If you have a bad relationship with a weaver, be nice
to him and ask him for a small personal favor.
Example: a smoke, a pen, a book anything that is
trivial. After reluctantly offering you the favor, the
opponent will justify his behavior towards you , that he
gave it to you because you are a good person. The
next time he will be far more approachable.
 If an early adopter agrees to your proposed idea of
change, ask him why. He will try to find all the reasons
to justify his actions.

25. PHASE 2.6 HOW TO PERSUADE PEOPLE?
 Commitment and consistency:
 If a resistor disagrees to your proposed change, do
not ask him ‘why’. If you ask him why, he will find
more justifications and convince himself even more
about why it is a bad idea. Instead ask, what can you
do to win him over.
 Associate weaving with something desirable e.g.
fashion models or film stars wearing handloom.
Associate the desired results with intrinsic
explanations not extrinsic ones. Example: Wow these
sarees have no defect, you must be a perfectionist,
vs, FabIndia will be very pleased as there are no
defects.
 If any of your arguments to convince people is weak,

26. PHASE 3: INITIAL ACTIONS
 Make a project plan as to how will you implement the
change. Who all will be involved, in what manner, what will
be their responsibility. Involve your supporters to create this
plan. The plan could also include starting with a pilot.
 Determine how will you measure success, based on what
parameters. Examples: no. of sarees woven in x number of
days, of y number of knots, with z number of defects.
 Make it pretty: Prettiness, tidy-ness builds a cognitive
innovative mind. Whenever a person see a beautiful
product, even if it is difficult to use, the person is able to
think in many ways to finally operate it. If a product is easy
to use but ugly, chances are that it may not be used as
much. Make sure your weavers find their saree designs
beautiful.

27. PHASE 3: INITIAL ACTIONS
 Provide channels of implementation. Make it easy for the
weaver to implement the change after he has agreed to it.
 Example: If you are the editor of a college magazine and
are finding it hard to convince students to write, take a
pen and a paper, put it down in front of them during their
break and ask them to write just about anything they like.
This is far easier than finding time, opening the laptop,
putting too much thought etc to write.
 For a weaver, provide him with encouragement, support,
resources, training, anything that he needs to get things
done.

28. PHASE 3: INITIAL ACTIONS
 Involve the weavers (only those who are on your side) in
implementing the change. Let them take over
responsibilities other than weaving, if they show an interest
(which they have as indicated in earlier slides)
 Keep enough time and space for contingencies
 Build the right kind of organizational structure to support the
change process

29. PHASE 4: IMPLEMENTATION
 In order to keep the momentum going on, celebrate
small periodic wins with your people
 Showcase the wins in public
 Follow up on targets
 Create a structured, consistent environment
 Make clear decisions / contracts
 Make the key stake holders feel the ownership
 Make sure there isn’t any resource constraint

30. PHASE 5: LAUNCH AND INTEGRATION
 Launch the change
 Observe if the change is no longer new but is now a norm
 Evaluate the change process and different initiatives

31. PHASE 6: WARNING SIGNS
 When the change has become a norm and there is a sign of
disruption either externally or internally, it is perhaps time for
yet another change

32. LEADERSHIP STYLES AND THE CYCLE OF CHANGE
Pace setting style Commanding style
Increases result, Increases control and
ambition execution, works well
in crisis
Coaching style
Increases
competence,
innovation
Affiliative style Visionary style
Increases trust Gives hope and
and closeness direction
Democratic style
Increases
involvement and
commitment

33. 5. CONCLUSIONS

34. 5. 2 ORGANIZATIONAL BEHAVIOR
 Use the change management principles to diffuse the
change
 Use both intrinsic and extrinsic motivation techniques. The
former are more effective
 Build your power base
 Win them over 

35. 5.4 SUMMARY
 If all 3 measures are implemented, then with highly
motivated weavers can be possible to produce more and
better products and also sell them at a higher margin.
 This, combined with some structural and financial
adjustments, could lead to the viability of the organization.
 The entire change management process will take a longer
time perhaps 2-3 years.