supply chain change management strategy (3) · for change management strategies in supply chain to...
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REALIGMENT THROUGH CHANGE
MANAGEMENT STRATEGIES IN SUPPLY
CHAIN MANAGEMENT
THAPELO PETJE
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CHANGE MANAGEMENT IMPACT ON SUPPLY CHAIN PROCESS
Head Office
Information Technology
Supply Chain Management
Finance
Regions
Technical/Engineering
Business Units
PeoplePeople
People are at the heart of any transformation. If y ou miss the people, you lose…
If people don’t share the vision, then success will not be achieved…
Marketing
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CHANGE MANAGEMENT – HOW TO BRING STAKEHOLDERS &
EMPLOYEES ALONG
New OrganisationalStructure
New Work Processes
New Job Roles andResponsibilities
New SkillsRequirements
New Performance Management/Measurements
New Technologies
New Business Strategies/Business Models
New/Enhanced Policies
Employees will experience significant change throug hout the implementation of the new system. Significant change can affect p roductivity due to a loss
of familiarity, control and empowerment at the indi vidual level.
Employees/ Managers/ Stakeholders
Managing the Impact of Change on Employees
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STRATEGIC SUPPLY CHAIN – HOW TO IMPROVE EMPLOYEE MORALE
Scenario 2:Reactive Change ManagementThe Productivity “Dip”
Targeted Level of Organisational
Performance (future state)
Return on Investment
OrganisationalEquilibrium(current state)
Scenario 1:No Change Management
Return toEquilibrium
Implementation ofInitiatives Begin
Change Management Objectives:
Minimise A: Duration of performance drop-off during assimilation period
Minimise B: Depth of performance drop-off during assimilation period
Maximise C: Performance level after implementation
Maximise D: Continuous improvement
Scenario 3:Proactive Change Management
A
C
B
D
Change Objective: Minimise the Productivity “Dip”
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Stakeholder Management
• Leadership networking
• Identify stakeholder groups
• Establish expectations
• ‘Change champions’
Communication
• Identify communication needs
• Communication plan
• Communicate messages
• Roll out messages
• Different people • Project and all
employees• New team members
Team Dynamics
• Project• Stakeholder group• Cross-Functional
Team meetings
Knowledge Transfer
Organisational Alignment
• Impact on roles• Feedback to HR• Impact on business• Communicate
impact• Mitigation
Training
• Train trainers• Establish user base• Content review• Training evaluation
• CRA approach• Audience• Assessment• Analysis• Mitigation• Feedback to
communication
Change Readiness Assessment
Seven-Pillar Change Management Framework
CORPORATESTRATEGY
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CRITICAL SUCCESS FACTORS
Build & maintain
imperative for Change
Involvement & commitment
of the leadership
team
Time/Urgency
Foster effective communication
Presence of change-receptive culture
Availability of data/
information
Clear decision-making process
Timely access to key
stakeholders
Seconded team
members from all
business Units
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BARRIERS TO IMPLEMENTATION
Involvement
No visible leadership
Corporate mindset
Unclear business
rules
Delegation level of
authority
Resistance to change
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PLANNING FOR CHANGE
� When the organisation changes direction, communication must be
followed by change management to reduce trauma to employees.
� The top structure of the organisation must plan through processes and
procedures that give confidence and credibility to the changes in supply
chain management.
� A paradigm shift in strategy must filter through the organisation that
must be followed by a well-planned execution to achieve the intended
results.
� If change is to happen, employees must be consulted in order to
minimise the trauma of change or fear of the unknown.
� Supply chain management must be at the core to the execution of the
business strategy, not an after-thought process.
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CONCLUSION
� It is imperative that supply chain re-alignment and re-positioning is not
clouded with perceptions on the part of employees in an organisation.
� In the South African environment, supply chain is seen as a tool benefiting
certain well-connected individuals. For supply chain to execute its function
with no fear or favour it must be aligned with business strategy to maximise
cost savings and efficiencies.
� The effective communication in supply chain in terms of change
management is critical to deliver cost effective products and services to the
organisation.
� The contemporary economic and political uncertainty means it is imperative
for change management strategies in supply chain to be re-aligned with
business strategy. In such a paradigm shift everything becomes zero. The
fundamentals of supply chain need to be re-aligned to meet the new
paradigm shift.
� Change management plays a pivotal role in shaping the minds of employees
in an evolving organisation in supply chain management.
� Change management strategies help in creating a conducive environment to
accept change, and building a strong organisation-wide team work without
paralysing the organisation.
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THANK YOUTHAPELO PETJE