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Appex Corporation – Managing Change at Organization Level

Appex Corporation – Managing Change at Organization Level. Fong Kit Ling, Catherine Lee, King Ng Lai Wah, Kanas Sin Wai Yu, Cortina Wong Kit Lee, Tammy. MGTO 650n Corporation – Team 2 Organizational Structure. King. Catherine. Cortina. Kanas. Tammy. Agenda.

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Appex Corporation – Managing Change at Organization Level

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  1. Appex Corporation –Managing Change at Organization Level Fong Kit Ling, Catherine Lee, King Ng Lai Wah, Kanas Sin Wai Yu, Cortina Wong Kit Lee, Tammy

  2. MGTO 650n Corporation – Team 2 Organizational Structure King Catherine Cortina Kanas Tammy

  3. Agenda • Background of Appex • Diagnosis – needs Structure and Control • Appex Structural Development • Shikhar’s Philosophy & Comments • Suggestions on Structural Change

  4. Background of Appex • Provided management information systems and intercarrier network services to cellular telephone companies. • “the fastest growing high-technology company in the United States” 1990 Business Week • Early 1988, expanded fast, hired more people, spent cash quickly and not monitored expense • May 1988, Shikhar Ghosh was recruited as COO and shortly afterwards CEO to reform Appex Harvard MBA

  5. Background of Appex • Provided management information systems and intercarrier network services to cellular telephone companies. • “the fastest growing high-technology company in the United States” 1990 Business Week Appex needed structure and control. • Early 1988, expanded fast, hired more people, spent cash quickly and not monitored expense • May 1988, Shikhar Ghosh was recruited as COO and shortly afterwards CEO to reform Appex Harvard MBA

  6. Diagnosis - Structure and Control Problems from lack of Structure Level of Responsibility

  7. Diagnosis - Structure and Control Problems from lack of Control Level of Responsibility

  8. Appex Structural Development

  9. Informal - Start-Up No structure

  10. CEO Circular

  11. Horizontal

  12. CEO Sales FIN Hierarchical/Functional IT HR

  13. Product Manager Product Manager Product Teams

  14. PT GM BT PT Business Teams PT BT PT

  15. CEO Divisions Div Div

  16. Shikhar’s Philosophy & Comments • “When a company has grown 50%, it is time to change.” • Many structural changes reflected employees’ suggestions • Change the structure to match the people and the business with the structure • Incentive scheme, resource allocation system, and other systems had to reinforce the change of new structure.

  17. Shikhar’s Philosophy & Comments Three Lenses for Organizational Change Power struggle? Any hidden agenda for the changes? Company culture matches with new structure? Staff adaptation and behavioral change? Political: interests coalitions resources/power Sudden & immediate changes? Business alignment? What to achieve? Well-thought process? Strategic: leadership timing linking process Cultural: artifacts values assumptions

  18. Suggestions on Structural Change Before determining a structure, • Ghosh needs to communicate his vision to the entire company to create buy-in • Anticipate the advantages & disadvantages of new structure • Set a detailed plan with a specific timetable to manage the expectation of employees • Establish the measurable goals, e.g. financial target, Balance Score Card to maintain focus

  19. Suggestions on Structural Change After determining a structure, • Ghosh needs to communicate the progress to all employees so that they can understand the status of the change • Review the result after the change i.e. financial result, resource allocation • Get feedback from employees to fine tune the structural change

  20. Suggestions on Structural Change Structure changes gradually with Culture • No specific structure for any organization, changes in different stages • Organization evolves, not changes suddenly • Change to achieve specific goals or align with business development, not due to the "time set" (every 6 months) • Each change of structure needed to be complemented by cultural changes

  21. Question & Answer

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