BSAD 230: LEADING AND MANAGING CHANGE
Instructor: William A. Sadler, Ph.D.
What is the crisis that won’t go away?
In today’s society business are constantly trying to find new ways to provide a better overall experience to consumers. Times are constantly changing and the consumers are now in a position to ask for excellence when looking for products. The times where companies could simply create something and everyone would buy it are gone. Today a customer is valued because they are no longer permanent. They have a choice, and one bad experience or company that produces better results can just as quickly take them from you. Company’s continually try to be more efficient with production, distribution, cost, service, and the overall structure but do not feel comfortable starting from scratch and accepting that the world is constantly changing with innovations being created every day. The old ways will no longer work simply because we ourselves have outdated them. We have constantly created new technology’s which make jobs easier and more efficient yet we choose not to create an adequate road map because of old norms. The entire business model should be reengineered and slowly but surely is. According to reengineering the corporation the reason companies do not do well with traditional business processes is because “the world in which they operate has changed beyond the limits of their capacity to adjust or evolve. The principles on which they are organized were superbly suited to the condition of an earlier era, but they can stretch only so far” pg 13. The continued technological advances such as the internet are changing the entire economic structure of the world today by allowing the consumers the most important power they could have….the power of choice.
Why do company’s need to change the way they operate.
Today’s world is one that is without boundaries. The world has changed for the better with more opportunity than ever before. Emerging technologies such as the internet have brought people together on a different level. Globalization is a concept widely acknowledged today. The world is working towards a completely open market. With an open market customers are able to find different products all over the world and if you don’t like the service or product you got there are a thousand different other businesses that can supply something to your liking. With theses technologies companies are trying to find new ways to grasp their intended audience and keep them happy. Companies do this by trying to create new ways to improve the infrastructure of their business. Older businesses use the old processes developed by Henry ford and Adam smith which are outdated. They continue to delegate one job to a worker and allow him to do only that job. When the worker is done with the job he passes the product to another which does a different part of the overall product. Companies have been doing this for years whether it be paperwork, or constructing a car. Although this technique works and in some regards is efficient it does not take into account the overall product or the end result. Many times in business the process of creating a product or doing a service does not come without problems or miss communication. When each worker is only worried about their one job they tend to lose focus on what the overall goal is whether it be to put together an entire contract for a customer’s insurance plan, or whether it’s creating a car. The lack of synergy within a company is what causes it to fail. Companies often have no one in charge when dealing with “Work that requires the cooperation and coordination of several different departments” pg13. This is often a sign for failure. In the text reengineering the corporation there are 3 Cs that they explain are the root causes to why corporations need change. They are customers, competition, and change itself. Customers are constantly introduced