Abstract
Singh and Bhandarkar (1990) make a pertinent statement: ‘the one permanent certainty in life is the continuity of change’. Change for transformation implies moving on to something better than before, an enhanced outcome, from better performance already achieved to win a customer to a state of excellence where the customer is delighted. It means a continuous renewal to move away from a static state to a state of dynamism. Harigopal (2001) explains that the change in contrast to the past was based on conventional technologies. The basic approach consisted of bringing about betterment of productivity, efficiency, rate of production and throughput cycle, and automation to get competitive advantage of cost, quality, delivery, delivery and customer service. The present-day changes are based on superior technologies, rapid discovery of new materials and technologies, knowledge and information technology. There are new additional and high-intensity compulsions of product and process flexibilities, rapid new product development, innovations and creativity. There are several challenges that are responsible for bringing about the paradigm change in both the external and internal environment. Sardana (2014) refers to these as globalization, diminishing role of the state, information revolution, changing profile of the customer and resultant new preferences and market demand for new competencies. To these challenges must be added a super necessity, as is being increasingly realized by the society, of fast diminishing or limiting of some of the natural resources. There is a voice of concern to take steps to preserve the environment for future generations. It is an impelling necessity for sustainability in its triple format of economic, environmental and sociocultural dimensions.
Organizing and managing transformational change therefore becomes an important component of growth of an institution. Organizational transformation is synonymous with change. An old Puranic (ancient Indian scriptures) belief stresses the importance of change: tat parivaratanam bhavah (Sanskrit: Be the change).
The change and the interlinked transformation has been a subject of favourite research of behavioural scientists who have considered the process of organizational transformation to be a recent extension of organizational development to create changes in organization’s structures, processes, culture and orientation to its environment (French, Bell & Zawacki, 2006). Following this philosophy, corporate transformation has been explained through a rationale of achieving success through transformational leadership, which laid stress on shift in culture, managing human anxieties and fears and bringing change in the performance parameters of quality, productivity and effectiveness. Transformational leadership has played an important role in such initiatives. The study of profiles and value dispositions of such visionaries as discovered from corporate success stories has been a major area of focus. Singh and Bhandarkar (1990) have examined in detail the process of transformation adopted by the chief executives in five selected organizations that have demonstrated success for the better, which can be termed as transformation. The research brings out 18 modes used for initiating and sustaining change. Some of these were exclusive to some of the organizations. However, the dominant modes to manage organizational transformation can be seen to emerge: commitment of the leadership, personal behaviour, participation, empowerment, team work and support for achievement. The last mode may cover sub-modes such as motivation, appreciation, incentives and result orientation. The process of transformation is always aligned to the strategic goals of the organization. The initiation of the process of transformation always starts with understanding the goals. The strategic content therefore begins with understanding the status of the current performance against the goals content, finding the gaps and developing a response to bridge the gap. Several interventions may be called for and plans drawn up for managing the change after the need for change is recognized. Tabrizi (2007) also refers to this in a similar language. He mentions eight steps; the first two recognize a need for change and choose a transformation leader to come before the transformation leader is selected. The remaining six steps that come after the selection of the transformation leader are: survey the ground, establish a sense of urgency, create a motivational and strategic vision, build a powerful coalition, get some early wins and create cross-functional rapid response teams. Tabrizi (2007) stresses that pre-transformation is a vital phase as it is in this period that the right seeds are planted for the fruits of tomorrow. It goes to establish a right diagnosis for the ‘sick organization’.
Organizational transformation, in a broader concept, has also been interpreted to mean to achieve business excellence. The quality revolution brought about the concepts of company-wide quality control (CWQC) and a host of techniques such as just in time (JIT), kaizen, kanban system, total productive maintenance (TPM), zero defect and more originating in Japan through many of the quality gurus and Toyota Manufacturing System brought about awakening in the US corporate world to meet the challenge. This resulted first in the form of the Baldrige Performance Excellence Programme, which laid down the core values, the concepts and the criteria for performance excellence framework. Sardana (2014) states that the goal of the award was to indentify and recognize the role model businesses, establish criteria for evaluating performance efforts and to disseminate and share best practices. High-performing organizations or the leverage to transformation, as per the award, could be achieved through a focus on seven categories of criteria, namely, leadership, strategic planning, customer focus, measurement, analysis and knowledge management, workforce focus, operations focus and results. Apparently, there is emphasis on managing human capital, organizational change, technology, result orientation and knowledge. The initial success of the Baldrige Award brought in the European Foundation for Quality Management (EFQM) Excellence Model. Nations across the globe, such as, Canada, Australia, Singapore and India, have developed their own frameworks.
Close to these approaches, other researchers took on the studies further to develop a framework to transform the corporation to a world-class model. Schonberger (1996) mentions that JIT, total quality control (TQC) and TPM could bring about the transformation to reach world-class levels. The Sardana (2014) model stresses on sustainability as the foremost focus to achieve leadership in business. The approach recommends a framework built around strategy for sustainable development, continuous improvement, technology that encompasses innovation and R&D, adding value and resource management that covers human competence and skills.
This issue of South Asian Journal of Business and Management Cases (SAJBMC) focuses on managing organizational transformation. We have endeavoured to bring together and present a collection of studies carried out on some of the organizations that have adopted different modes for leveraging transformation. The cases from live experiences highlight successes, challenges faced and difficulties met. The conflicts had to be resolved. The collection includes both the profit-making and the non-profit-making organizations: the objectives are essentially to disseminate knowledge on managing the process of transformation to meet the long-term objectives of the organization. More importantly, a number of cases included in the issue have been contributed by the consultants or the chief executive officers (CEOs) thus providing a ringside view of the events as these emerged.
Erica Jacobi in the first case of the issue presents a case study on GABO:mi, a highly specialized European research project management consulting firm. The consulting firm helps research groups apply for research grants available annually. The application process can be challenging due to its heavy regulations. The consulting firm’s business model is built on orchestrating the entire research project. As an organization grows, however, the flow of information often becomes more complicated. It soon grew to a headcount of over 30 full-time staff, project and IT managers against a handful of project managers in 2005. Therefore, in 2012, GABO:mi deemed it necessary to restructure the organization. This case describes the implementation of a holographic organization design. The change process leverages a collaborative, appreciative and systemic approach with an overarching goal for the required change process to help the firm grow in a healthy and sustainable way by redesigning important organizational structures. The main focus lays on establishing a new leadership level.
Aritra Saha and Utpal Chattopadhyay in the second case discuss the Indian two-wheeler industry that has now emerged as a global leader in two-wheeler production and trade. A key factor behind the creditable progress of this industry has been the operation of several international joint ventures (IJVs). The partnership between Hero and Honda has been the longest and perhaps the most remarkable too. This study analyses the impact of the Hero Honda case to showcase how a local manufacturer can team up with a global player and yet a synergy between their core competencies can be achieved for enhancing efficiency, productivity and quality. The case narrates the transition from inter-firm competition to cooperation and aims at finding out how management innovations by both the partners can help reduce conflict of interests, avoid cannibalization of the products of individual firms and derive mutual benefits by aligning their individual targets to a common goal of market success.
The next case from John Heiser and Jeffrey K. Swallow examines the use of appreciative inquiry by a multinational company to gain market differentiation by developing a world-class global service and technical support organization. Magnetrol International is a family-owned manufacturing company headquartered outside Chicago, Illinois, USA. The paper starts with the proposition that establishing the need for change, the change process and overcoming resistance to change are all influenced by the subjective and collective interpretation of the issues facing the organization. This proposition is tested through the use of appreciative inquiry as a framework to create a world-class service organization at a global, privately held company. The purpose of the paper is to demonstrate how the appreciative inquiry framework was used to drive innovation in the creation of a world-class global service organization.
Neeraj and Nishant in the next case present the genesis of the project ‘Women Power Line 1090’, a facility set up by the government of Uttar Pradesh, the most populous state of India, for eradicating the menace of harassment of women in the state. The 1090 project has objectives to create an innovative and agile organization within the normally bureaucratic police force. The authors highlight the challenges facing the protagonist as he is looking at the first seven-month performance of his brainchild. There are challenges: how he can extend 1090 to address more severe problems of eve-teasing, domestic violence and cybercrimes related to women; how to scale up the operations without losing quality; and to find ways to create awareness and mobilization in the rural areas, which are home to 77 per cent of the state’s population.
Nandy and Bruce in the case that follows discuss organizational changes necessitated when a large-scale gold mine explored formerly by a Canadian company now was restored under the government to indigenous control. The National Prosperity Gold Production Group (NPGPG) received the controls to explore as the highest bidders. It has faced a constantly unfolding situation of sense making and is trying its best to successfully operate the mine. NPGPG is in the transitional stage of redesigning the organization structure, which would best be suited in the near future in order to respond in the era of a rapidly changing business environment. With an aim to employ global expansion strategy and to keep abreast of the innovative knowledge-based business environment, NPGPG should uphold the competitive advantages and think of a complete cellular organization design to ensure a prosperous future.
Anurodh Godha and Prerna Jain next review sustainability reporting and its benefits for the entities. The authors examine the development in the Indian regulatory environment for sustainability reporting and attempt to find out trend, application level and the status of the sustainability reporting practice of Indian entities as per the GRI reporting framework. Secondary data collected from the published annual reports of the sample companies and data available on the GRI website (up to 16 February 2014) have been used to achieve the objectives of the study. The findings reveal that the development of the corporate governance standard is maturing in India. The cement, mining and metal sectors are the most compliant among the companies reporting to GRI with banking and financial services and the health care and pharmaceuticals sectors being the least compliant.
Paul Custance et al. next provide insight into care farming in the UK to compare and contrast the roles that such organizations may play in multifunctional agriculture. Care farming is explained as a form of farming that may serve as a valuable form of diversification for the farmer as well as addressing societal issues. The study drawing experience from three case studies makes a number of generic points that should be of value to an international audience of academics. The study reviews the links between agriculture and the health benefits of the natural environment. The study concludes that care farming is a legitimate form of agricultural multifunctionality but reminds those interested in setting up or promoting care farms of the need for a supportive economic and legislative environment.
Bhavna Ghatge, Diganta Chakrabarti and Shilpa Shinde in the next case highlight the success of a cooperative organization located in a small and undeveloped village Ajara in Kolhapur district (India). The authors trace the progress of this small cooperative sector spinning mill from its conception in the late 1970s to its successful transformation as a profitable export-oriented unit in 2014. The case underlines the diverse challenges the organization faced and the initiatives taken to overcome the same. A combination of visionary leadership and strategic decision-making enabled a struggling organization to establish itself into a successful enterprise. The leadership believed in developing a stimulated workforce, which acted as a source for energy. A vision for self-sustenance and development was strengthened through a disciplined and team-oriented organizational culture.
Jeevan J. Arakal and Rajeev Roy next present a case on Udyogini (Sanskrit: an enterprising woman), an organization created in 1992 with a goal of becoming a service provider for micro-enterprise management services for the poor and illiterate women. Dr Vanita Viswanath, the CEO and her team, the protagonists, have been working with lac producers in the Indian state of Jharkhand with a large population of adivasis (Sanskrit: residents from the early days of civilization) proverbially the poor, illiterate and the exploited. The protagonists in the case have been helping the lac producers overcome the productivity and transactional constraints in their value chain. This case captures the key facets of the intervention, the outcomes and the various perspectives the team had taken in evaluating its intervention in the lac value chain.
Keri Ohlrich next in a research case explores the impact of corporate social responsibility (CSR) on talent management with Generation Y. The methodology includes conducting interviews with Generation Y, Generation X and baby boomer talent in corporations. The research was completed over the telephone in 2010 with a total of 36 interviews. The data collection instrument used was a self-developed, approximately 15-item qualitative questionnaire. The survey was designed to examine the various factors that influence attraction and retention of employees and understand if CSR impacts or influences those factors, and if yes, to what degree. Three main themes emerged throughout the interviews: attraction drivers: values, career development and flexibility; retention drivers: flexibility and career development; and generational differences.
Suddhachit Mitra, Vanita Yadav and Saswata Biswas in the next case study that follows discuss the Child In Need Institute (CINI), a non-profit organization based at Kolkata (India). CINI is a respected name in the voluntary sector in India and has good credentials in nutrition, health, education and protection of women, children and adolescents. The case raises global concerns of child protection and homeless children. It discusses in detail CINI’s child protection programme at an Indian railway station. The case engages learners to comprehend the nature and extent of issues relating to homeless children on railway platforms in India, form a broad idea about the external environment and strategy of a non-profit engaged in child protection and understand the merits and disadvantages associated with governmental funding.
Nimisha Sinha and Abha Rishi in the closing case present a case study on Pyramid Cyber Security (P) Ltd., which specializes in digital crime, fraud and forensic solutions and services in India. Over the years, the company has established several digital forensics laboratories and security projects for agencies in law enforcement, the public sector and corporate organizations. With the scalability, flexibility and economic advantage offered by cloud computing, more and more organizations are moving towards cloud for their applications. With all the benefits of cloud computing, it also opens up a company to the danger of digital crime and security breaches on the cloud platform. This has thrown open new vistas for Pyramid. Alok, CEO of the company and the protagonist, is in a dilemma of whether to focus on the existing business or explore new opportunities in cloud forensics investigation thrown up by the wide acceptance of cloud computing.
In each of these cases, there are challenges to be faced. Managing transformations needs transformational leaders who carry attributes of high commitment, are personally involved in day-to-day affairs, can identify right people to shoulder responsibilities, track and monitor performance and believe in succession planning. They become icons in the organization to be emulated. Besides, there is a continuous effort for achieving business excellence through technology, knowledge management, resource management, customer relations, people management and developing competence.
It is hoped that the assemblage of cases drawn from varied organizations and presenting diverse perspectives but with a focus on transformation provide sufficient context and insights to the readers to know more and understand the modes to lead the organizations to excellence. More importantly, we urge you to share your experiences in the form of contributions of full-text case studies developed by you or in association with your network.
We look forward to receive your critical comments and valuable suggestions for improvements of the journal, as always.