Change Management (Oticon)

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A B E R D E E N B U S I N E S S S C H O O L

Master of Business Administration

Course Work Submission Form

|Name: |MICHAEL CHIDI CHUKWUMA | |Email: |m.c.chukwuma@rgu.ac.uk | |Course: |MBA | |Module: |BSM 155 | |Assignment and Title: |CHANGE MANAGEMENT Course work | |Date: |19-07-2009 | |For the attention of: |Dr Emmanuelle Rey-Marmonier | |Number of pages in submission: |8 |

| | |Before submitting ensure: | |(a) that the work undertaken for this assignment is entirely your own and that you have not made use of any unauthorised | |assistance; | |(b) That the sources of all references material have been properly acknowledged. | | | |BY SUBMITTING THIS DOCUMENT YOU ARE CONFIRMING STATEMENTS (a) AND (b) ABOVE. |

Table of Contents
Introduction3
Triggers leading to Change3
Oticon Change Drivers3
Change Barriers4
The major stakeholders, their influence and major concerns4 Oticon’s approach to Change Management5
Phase One5
Phase Two5
Phase Three6
Dealing with People issues (resistance) during Oticon’s Change Process7 Phase One7
Phase Two7
Phase Three8
Leadership and Management8
Conclusion8
References9

Introduction

“Nothing is more permanent than change” – Heraclitus

This statement, as true and practical as it is, was not taken seriously by the Danish hearing instrument company, Oticon. Founded in 1904, Oticon was the first hearing instrument company in the world. However, due to its bureaucratic and inflexible nature, the company was unable to adapt to the changing business environment and became unprofitable. Changes had to be made; else the company will go in the red. Besides the changes associated with the entry and exit of Mr. Lars Kolind as Oticon’s President, the company went through three (3) phases of change under Kolind’s leadership. The changes are; 1. In1988: Appointment of Lars Kolind “an innovator” as the third President of Oticon. 2. In 1988: Turning the poor performance and negative profitability round through cost-cutting measures: he pared the company down, cut staff and increased efficiency, and reduced the price of a hearing aid by 20 per cent. 3. In 1990: 15 months planned change in company vision, competitive strategy, culture/values, organizational structure e.t.c. 4. In 1995: To avoid slipping back into a traditional departmental organisational form Kolind re-organised the company as a strategy to keep it ‘dis-organised’. 5. In 1998: Lars Kolind exit and Niels Jacobsen entry as Oticon’s President.

The following analysis will examine the...
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