Effektivisering, rationalisering, nedskärning

1. Effektivisering, rationalisering, nedskärning Johann Packendorff

2. Delivery performance is 87% Is this good, bad, or indifferent ? Absolute performance = 100% 100 Customer expectation = 98% Target performance = 95% 90 X X 80 Competitor performance = 81% Percentage of deliveries on-time X 70 X Performance against customer expectations is POOR Historical performance is GOOD 60 Performance against target is POOR X X Performance against competitors is GOOD Absolute performance is POOR 50 Now

3. Continuous and breakthrough improvement Breakthrough improvement Cumulative improvement Continuous improvement Time

4. Intended performance improvement with breakthrough improvement Performance Breakthrough improvements Time

5. Actual performance improvement with breakthrough improvement Performance Actual improvement Time

6. Performance improvement with continuous improvement Performance Standardize and maintain Improvement “Continuous” improvement Time

7. Define Plan Plan Do Measure Control Act Check Improve Analyze (a) (b) • The plan-do-check-act, or “Deming” improvement cycle, and • The define-measure-analyze-improve-control, or DMAIC six sigma improvement cycle

8. PDCA Cycle repeated to createcontinuous improvement Performance Plan Do Act Check “Continuous” improvement Time

9. Common techniques for process improvement Input/output analysis Flow charts Scatter diagrams x x Input Out put x x x x x x x x x Cause-effect diagrams Pareto diagrams Why-why analysis Why? Why? Why?

10. ”Japanska sjön”som förändringsfilosofi - Höj ambitionsnivån i ett avseende, och låt konsekvenserna av detta slå igenom fullt ut!

11. Processförbättring innebär organisationsförändring!

12. Organizational Change • Managing today would be more accurately described as long periods of ongoing change, interrupted occasionally by short periods of stability.

13. Why People Resist Change • Habits – We are creatures of habit. • Fear of the unknown. • Security – The higher the need for security, the stronger the resistance. • Economic factors. • Selective information processing – We all have our own ideas of what is right.

14. Why Do Organizations Resist Change? • Group inertia – Peer pressure, group norms. • Security. • Threat to established power relationships. • Threat to established resource allocations. • Limited focus of change – Change affects others in the organization. • Poor communication. • Threat to expertise.

15. Techniques for Change Implementation • Establish a sense of urgency for change. • Establish a coalition to guide the change. • Create a vision and strategy for change. • Find an idea that fits the need. • Develop plans to overcome resistance. • Create change teams. • Foster idea champions.

16. What Can Change Agents Change? • Structure – Change agents can alter one or more of the key elements in an organization’s design. • Technology – Competitive factors or innovations within an organization often require change agents to introduce new equipment, tools, or methods. • People – Change agents help individuals and groups within the organization work more effectively together. • Physical Settings – Change agents can affect their environment.

17. Organizational Change • Resistance is not all bad. Resistance: • forces management to check and recheck the proposals. • helps identify specific problem areas where change is likely to cause difficulty. • gives management information about the intensity of employee emotions on the issues. • provides a means of release of emotions. This causes employees to think and talk more about the changes.

18. Organisationens storlek- en fråga om förändringsledning!

19. Downsizing Compressing Consolidating Contracting Demassing Dismantling Downshifting Rationalizing Reallocating Reassigning Rebalancing Redesigning Resizing Retrenching Redeploying Rightsizing Streamlining Slimming down Leading up Change through re-sizing the organization

20. Background and Practical Importance • Assumptions: 1980s • Bigger is better • Growth in employee base is natural and desirable • Slack resources allowed adaptability and flexibility • Consistency is a hallmark of effectiveness

21. Background and Practical Importance • Events: 1980s & 1990s • Recession in early 1980s • Recession in early 1990s • Decline in our global competitiveness • US business press said “American businesses are fat, dumb, happy & starting to lose!” • Virtually all major firms downsized between 1985 and 1990 • Assumptions of early 1980s challenged. The new model: “Lean is mean!”

22. Background and Practical Importance • 1990s and 2000s • The “recession” of 2000-2003 • Tendency to lay off only blue-collar workers challenged; white-collar layoffs multiply • Research shows most layoffs damage productivity and morale • Crisis precipitated by the burst of the IT bubble (March 2000) and terrorist action (September 2001) • Leads to “Organizations must downsize to survive the crisis!” • Massive, concurrent layoffs implemented quickly

23. Today (2010) • Major financial crisis preceded by forceful growth period • Companies do not want to repeat the mistakes from 1998-2001 • Productivity improvements by process innovation rather than capacity improvements by expanding org size • Outsourcing debate

24. How Managers Conceptualize Downsizing • Reinforcement • Overall objective is to perpetuate the current mission, strategy, and systems with a focus on adapting to current circumstances • Reorientation • Overall objective is to change the current mission, strategy, and systems with a focus on discontinuing previous activities

25. How Downsizing Is Implemented:Three Types of Strategies • Workforce reduction strategy • Most common approach • Organization redesign strategy • About 27% of cases • Systemic strategy • About 21% of cases

26. Workforce Reduction Strategy • Focus on workers • Eliminates people • Quick implementation • Goal: Short-term payoff • Inhibits: Long-term adaptability

27. Organization Redesign Strategy • Focus on jobs and units • Eliminates work • Moderate pace of implementation • Goal: Moderate-term payoff • Inhibits: Quick payback

28. Systemic Strategy • Focus on culture • Eliminates status quo processes • Extended implementation process • Goal: Long-term payoff • Inhibits: Short-term cost savings

29. Common Impacts of Downsizing • For the “across the board, grenade approach” • Organizational dysfunction • Ineffectiveness • Lack of improvement • Lack of development of quality culture • For the systemic analysis approach • Improvement in performance • Improved involvement and communication • Development of quality culture • Organizational survival

30. Best Practices in Downsizing • Implemented top down and initiated from bottom up (i.e., let the right people pick which jobs are eliminated) • Across-the-board downsizing sent message to stakeholders, but selective downsizing enhanced effectiveness • Successful downsizing involved managing the transition for those who lost jobs and managing the transition for survivors Cont.

31. Best Practices in Downsizing (Cont.) • Focused on internal efficiency barriers and relationships outside the organization • Focused on creating small, semiautonomous units within large integrated organizations • Downsizing was “means to end,” not just end in itself • Other?

32. Sammanfattning • Produktionsledning innebär en ständig aktiv processförbättring, snarare än stora reaktiva kliv då och då • Produktionsledningen måste utsätta produktionssystemet för förändringstryck på egen hand • Förändringsmotstånd är naturligt, och måste användas på ett konstruktivt sätt • Hantering av organisatorisk storlek har blivit allt viktigare • Alla förändringar av organisatorisk storlek måste dock hanteras som långsiktiga organisationsförändringar, förutsatt att organisationen inte står inför sin undergång