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STRATEGIC CHANGE LEADER. Dr. Ningky Sasanti Munir Graduate Program PPM School of Management. OUR A GENDA. Introduction to Strategic Change Leader(IN3N); Course Objectives; Pressures for Organizational Change; Types of Change; Assignment and grading system.
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STRATEGIC CHANGE LEADER Dr. Ningky Sasanti Munir Graduate Program PPM School of Management
OUR AGENDA • Introduction to Strategic Change Leader(IN3N); • Course Objectives; • Pressures for Organizational Change; • Types of Change; • Assignment and grading system.
COURSE OBJECTIVESOn completion of this course you should be able to explain and discuss:
WHAT IS CHANgE? • The process by which organizations move from their present state to some desired future state to increase their effectiveness(Anderson & Anderson, 2001, p.5) NKY – PPM School of Management
MAIN READINGS 1996 2005 2006 2008
TYPES OF ORGANIZATIONAL CHANGE • REVOLUTIONARY • Discontinuous • EPISODIC • Transformational • STRATEGIC • Total System • EVOLUTIONARY • Continuous • CONTINUING FLOW • Transitional • OPERATIONAL • Local option Burke, 2002, p.11-12
NKY – PPM School of Management evolUTIONARY CHANGE • More than 95% of organizational changes are evolutionary • Incremental; • Covering slow; • The resistance are low; • Controllable; • Systematic (if planned) • Examples: improvement programs, kaizen, incremental steps to fix a problem, changing a part of larger system.
REVOLUTIONARY CHANGE BBD BAPINDO BBD has capital minus Rp 12,248,138 mil. Bapindo has capital minus Rp 28,034,552 mil. • Revolutionary change is a jolt (perturbation) to the organization system --- as a result NOTHING will ever be the same again • Strong resistance • Large scale • Top-down • (sometimes) Chaotic • In short period • BDN's has capital minus Rp 28,314,824 mil. Bank Exim has capital minus Rp 6,444,830 mil. Bank EXIM BDN Currently Mandiri assets have grown to more than Rp 347,6 T today, NPL 5,85%, CAR 15,37% and Net profits Rp. 7,2 T Burnes, 2000, p.304-306
RADICAL PERIPHERAL CORE INCREMENTAL
EXTERNAL Pressures TECHNOLOGY BUYER SOCIAL SUBSTITUTE SUPPLIER ORGANIZATION ECONOMY COMPETITION NEW ENTRANTS POLITICS
EXTERNAL Pressures POLITICS The liberalization of postal service business brings new competitive competitors, global and local players 600 Licensed independent postal companies, cargo and freight companies, public transportation companies also handle letters and parcels SOCIAL Cell phone becomes a ‘must have’ lifestyle accessories TECHNOLOGY ECONOMY The rapid advance of electronic information technologies has fulfilled the increasing demand for faster, cheaper, and more flexible communications services The impact of high inflation rate and operational cost (materials) to post related items
IMPACT OF EXTERNAL PRESSURES BEFORE • PHOTOGRAPHY INDUSTRY • High margin • Long product life cycle • The players: • FUJI • KODAK • KONICA • AGFA AFTER • DIGITAL IMAGING INDUSTRY • Low margin • Short product life cycle • The players • The “oldies” • New player • Competitors from different industry (I/T, electronics, computers)
Quote of the day: “If we don't change, we don't grow. If we don't grow, we aren't really living.”