Sherif Ahmed El-Gaabary (Group 1 – 5S Team)
Learning new theories and frameworks is usually a burden on a person to understand and imagine its application in real life cases. However, the Gobal Tech simulation case was an amazing chance for connecting what we have learnt (Why, What, and How organizational change works) to what we have discussed on the first day through cases and articles. From my point of view, the simulation gave the team three main added values. First, since it took place on the second day of the EMBA in addition to being introduced to the new group members, each member of the team got the chance of experiencing the teamwork activity with his team. Thus, it allowed for knowing each other better through the engagement in the discussions and ideas sharing. Second, the simulation gave the team the exposure and challenge of being responsible for putting an organization on a change process, which required that all the members should be aligned to the cause. Third, we have learned the importance of working within a specified time frame and budget, which are of equal importance to the change processes and tactics selection. Finally, for me, before the course and simulation, I believed that the organizational change is all about the changes what will be applied. However, now, I realized that the act phase including the changes required should be implemented after several core phases that direct the success or the failure of the organizational change. In other words, the change process starts with the unfreeze step in order to be able to implement the changes then refreeze the organization.
Global Tech has built a very good reputation in the market as being one of the leading manufacturers of all the weather global positioning systems (GPS) in the world. The first successful story showed that the company had a competitive edge over its competitors by having powerful R&D, engineering and manufacturing departments. However, the leader of the company was not analytical and reactive to the market shift, as there was a decline in the military sector, where their concentration, while there was boom in the commercial sector. In order to decide on the type of the change, which should be implemented, we have to consider the positioning and the scope for the organizational change. As for the positioning, Global Tech was suffering from losses over the last two years, which drove the company into a series of austerity measures. In addition, another two companies have become the market leaders in the commercial sector by formulating their own identity through satisfying the customer needs without technological complexes. Concerning the scope, the company was focusing heavily on the military sector and decided to add the commercial sector to their strategy. Thus, the organizational change for Global Tech was re-creation according to Nadler & Tushman (1989) (See Exhibit 1), as the change was reactive in terms of positioning and strategic in terms of scope. In other words, Global Tech was experiencing external shifts in the market threatening their survivals, which required them to change their strategy. The organization has been paranoid of their technical abilities and of being the market leaders years ago in the technology of GPS, but they have ignored the market shifts in the customer needs and satisfaction.
Applying the Mckinsey 7-S model (See Exhibit 2) on Global Tech simulation, we have formulated our plan according to the strategy, structure, systems, skills and shared values and beliefs that will help in the organizational change. First, concerning the strategy, the leader has been reactive and changed the strategy by adding the commercial sector to the company’s market focus beside the military sector. Second, concerning the structure, hiring new employees to the organization in different departments to be responsible of the new market segments has modified the company structure, but the organization...
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