Allentown Materials Corp. (B) Evaluation of a Change Effort Did the managers select the right design solutions? Is the organization design changing in a way demanded by its environment? Allentown Materials Corp. (B) Evaluation of a Change Effort Are the methods by which the changes implemented effective in getting the commitment of people in the organization? Recommendations for Change Increase integration by developing a project organization – – Identify and develop integrators in marketing Identify project teams for each project composed of appropriate level people Top Team becomes Resource Allocation Team (RAT) – – Quarterly project reviews with RAT Eliminate present product review meetings Recommendations for Change Communicate new project organization to division Develop interpersonal competence of people to function in new organization – – – – Train integrators Develop effective project teams Team-building for top management Training and development in conflict management Recommendations for Change Improve group/functional relations through special Inter-group Problem Solving Meetings Top team to develop objectives and strategies for the division Stronger, more personal Allentown EPD: New Products Year 1990 1991 1992 1993 1994 Resistors 1 0 4 0 6 Capacitors 0 0 0 0 3 Allentown EPD: Conflict Resolution Styles Styles Forcing Smoothing Constructive 1992 3.1 3.0 2.9 1994 2.8 2.5 3.5 Allentown EPD 1994 What did we miss? What is a Successful Change? The future state is reached Performance in the future state meets or exceeds expectations Transition costs are managed and false starts are minimized The organization is capable of continuing to change and improve Change Readiness Ch = (D x F x P) > C Ch = Change D = Dissatisfaction with the status quo F = Clear model or vision of future state P = Planned process for managing change C = Cost of change to individuals and groups