The following assessment reflected on the case of New World Innovations and the issues encountered in response to the launch of a new product, HOSH2016. The assessment is primarily dedicated to the presentation of the current, strategic, quality and operational performance issues faced by NWI with appropriate identification and analysis. The current situation of the company could be identified through the use of SWOT analysis in order to develop flexible approaches for framing the strategic options for the future growth of the organization. The analysis of the existing situation of NWI was supported by the analysis of specific concerns faced by the company through the use of McKinsey’s 7S model. A number of tools have been used including the PESTLE analysis, Porter’s Five Forces analysis, quality measurement, change management theory, value chain analysis and Porter’s generic strategic model. All these tools have been used in order to identify the main factors that affect the product “HOSH2016” of NWI. These models have enabled the recognition of precise areas of the organization’s functional capacities that could have strengthened the effective implementation of the product design.
The analysis and identification of the main issues for concern are followed by the presentation of a proposal suggesting performance improvement measures over the short term, medium-term and long term horizons. Subsequently, the assessment also presented an evaluation of performance management and the specific dimensions in which the change management programme could be subject to performance improvement measures. Finally, the assessment dealt with the approaches that could be followed by NWI for managing the short term, long term and medium-term improvement proposals.
Change is an inevitable requirement in the contemporary business environment with the prominent emphasis being directed towards the changing trends in customer behaviour and increasing prospects for globalization. Change management is a mandatory requirement for organizations to ensure sustainability in the business and competitive advantage in the industry. The case of New World Innovations reflects on the use of change for obtaining competitive advantage as well as to sustain a position as a market leader in the UK and European markets (Al-Haddad & Kotnour, 2015). However, it is imperative to understand the implementation of change is not sufficient for obtaining the desired outcomes from the change. The implications of change management are considered as compulsory aspects for ensuring that the organization could obtain productive outcomes from the change (Anderson, 2016). The implementation of change and monitoring of the outcomes is also reflective of the significance of the short term, medium-term and long term planning for change management.
The change management process would have to be supported by a performance management system so that the management could ensure limited depreciation in employee performance with the implementation of change. As per Alvesson & Sveningsson (2015), performance management would be primarily associated with improving the awareness of the workforce about revised professional roles and responsibilities and training the workforce according to the organizational goals (Alvesson & Sveningsson, 2015). The following assessment engages in the evaluation of issues faced by NWI with respect to the initiative of a new product launch and the change initiatives that could be implemented for addressing the issues alongside performance improvement frameworks that could help in accomplishing the change objectives outlined by the senior management of NWI. The case of the “HOSH2016” product has been highlighted in order to ascertain the performance of the product in the dynamic market setting. The core elements that have been covered here include the description of NWI including its strategic, operational and quality performance.
The evaluation of a company’s existing, strategic, operational and quality performance is necessary for the context of change management initiatives. The case of New World Innovations reflects on the change in the form of introduction of a new product, the HOSH2016 which is a Home Office System Hub (Burton, Obel & Håkonsson, 2015).
The SWOT analysis for NWI has been used to assess its current performance in the competitive business context. The foremost observation from the analysis of the internal environment of NWI through references to the case study suggests the favourable aspects such as the strong market position of the organization in the domestic UK as well as international European markets. NWI has also depicted considerable investments in the efforts for research and development that can contribute to the improvement of performance and quality dimensions. These factors are further supplemented by capable engineers and designers with state of the art expertise in office equipment design and production. NWI could also observe the potential opportunities in order to address the contextual issues encountered by it that include a major emphasis on collaboration and outsourcing. The problems encountered in terms of quality and strategic performance could be addressed through partnerships with global office equipment suppliers. The issues of limited production capabilities can be resolved through capitalizing on the opportunity of outsourcing production to American and European sub-contract manufacturers. On the other hand, the microenvironment analysis also presents explicit highlights of threats and negative points of NWI that can deter the improvement of the performance of NWI. Some of the prominent aspects noticed, in this case, reflect on the lack of coordination among the workforce that is evident from the case study in the form of conflicts between the production and design departments. The limited focus on the quality of raw materials to address concerns of profitability can be liable for insufficiencies in the quality of products. Furthermore, NWI also faces concerns of cheaper substitutes to the new product HOSH2016 as well as increasing complaints of unsatisfied orders as well as defects in the quality of finished products.
The design of the new product was appreciated in the market and led to a formidable increase in customer demand for the product. However, the complaints regarding increasing backlogs of unsatisfied orders create potential hindrances for the organization to accomplish the desired functionality from the change instated by NWI. In this scenario, the stakeholders of NWI are eyeing rapid growth in the market and a leading position in the marketplace. Therefore, the following report presents a description of the current strategic, operational and quality performance issues encountered by NWI and the objectives for improving performance in event of changes implemented by the organization.
The SWOT analysis for NWI conveys the issue of minimum coordination in the functioning of various departments within the organization as well as the failure of the senior management to address the issues on a grassroots level. According to Daft (2015), the organization could leverage it strengths in R&D and engineering and use them to address the limitations of quality performance (Daft, 2015).
The tool shows that the power of the new entrants and substitute products is low. But the role of the suppliers, buyers and existing competitors is critical in the NWI case. The assessment shows that the power of the suppliers is limited because they are located in far off places so naturally they are not in the position to meet the specific requirements of NWI. Similarly, the assessment shows that the power of the buyers is high because it is a new and inexperienced product in the market setting.
The current performance issue that is encountered by NWI with the change initiative of introducing a new product i.e. HOSH2016 is the lack of ability to cope with the volume of demand for the product. As per Botha, Kourie & Snyman (2014), the list of unsatisfied clients is also increasing in the existing scenario which can be a formidable setback for the strategic performance of NWI in the office equipment market (Botha, Kourie & Snyman, 2014).
NWI has high experience in the market setting which has helped it to have a robust strategic model. But while designing HOSH2016, the poor involvement of the management team and the employees acted as a major hurdle in the process. Even though NWI had a high reputation of being ranked fourth in the European market, the business lacked the proper strategy which led to the decline of its market position (Benn, Dunphy & Griffiths, 2014). The company stooped down to the number three position in the UK market and number ten position in the European market.
The issues that are identified from the case of NWI with respect to concerns of operational aspects of the business processes are lack of substantial infrastructure, workforce and the coordination among different functional departments within the organization by the SWOT analysis. The Huddersfield factory of NWI has a limited operating time i.e. two eight hour shifts in a day is a formidable barrier for timely completion of demands (Cascio, 2018). By the stakeholder’s analysis, NWI lacks of coordination between different departments such as production, engineering and quality assurance department is considered as a prominent reason for decreasing performance of NWI. Furthermore, it is essential to focus on the lack of interaction between employees in a specific department e.g. the supervisors in the production department do not provide constructive feedback to trainees.
The limitations on addressing the substantial volumes of demand led to the pressure on the factory managers for improving production. The drastic changes implemented by NWI to improve production speed were responsible for increasing the complaints and return rates of the new batches of HOSH2016 manufactured by the company. The complaints could be accounted as prominent setbacks for the reputation of NWI as a provider of quality office equipment (Cummings & Worley, 2014).
Furthermore, the focus of NWI on quality function is not realized practically as the organization is focused on taking the product out of the factory. This factor is complicated further with the lack of competencies among the quality inspection team for effective quality assurance.
Since a formal impression of the current, strategic, operational and quality performance issues can be observed from a critical evaluation of NWI’s case study, it is imperative to implement the relevant tools and theory to describe the situation of NWI. The following illustration would involve the use of SWOT analysis to identify the current situation of NWI and derive strategic options that can be presented for the future growth of the enterprise (Deserti & Rizzo, 2014).
Operational performance issues could be addressed effectively by improving the interaction between the production department and the engineering department. The foremost recommendation in this instance could be identified in the provision of facilities to the production department and supervisors to observe the work of the R&D and engineering departments. This would enable them to understand the complicacies involved in the work of engineering and that they should also invest similar levels of effort in order to accomplish the desired performance objectives.
Some of the other strategic options for NWI to improve its quality and performance issues encountered with the launch of the new product would include the establishment of a concrete framework for the training of new recruits and transfers. Supervisors should also be subject to consistent monitoring by the senior management to identify any setbacks concurrently with the business processes thereby leading to an improved rate of addressing backlogs of unsatisfied orders.
Sub-contracting of manufacturing would be a plausible option to address the concerns of increasing volumes of demand without compromising on quality (Goetsch & Davis,2014). Furthermore, it is advisable for the senior management to supervise the supply chain operations and the purchases in order to address the concerns of insufficient raw material quality that can pose substantial pitfalls for the production department.
The evaluation of the issues encountered by NWI in terms of current, strategic, operational and quality performance was largely reflective of the factors of limited teamwork and lack of precise change management policies and guidelines. The evaluation was executed with the use of SWOT analysis that provided insights for obtaining productive strategic options for the future growth of the enterprise (Jabri, 2017).
The requirement for identifying the trends in the business environment as well as the internal environment has become inevitable for organizations in the modern business environment. First of all, it is essential to understand that the identification of strategic, quality and operational issues would enable the formulation of performance improvement frameworks that can contribute to the sustainable growth of an enterprise. The significance of sustainability for organizations in the existing business environment is explicitly observed in the majority of cases (Henfridsson, Mathiassen & Svahn, 2014). Therefore, the imperative presence of change management as a preferred alternative for addressing the objectives of sustainable growth could be identified from a wide range of examples in the real world. The issues pertaining to operational, quality and strategic performance should be outlined clearly since they could impose varying impacts on the effectiveness of an enterprise. In the case of New World Innovations, the company faces considerable setbacks in terms of strategy, quality and operational performance with the launch of its new product, the HOSH2016. The following assessment is directed towards the identification and analysis of the main issues faced by the organization through the use of appropriate theoretical models (Hornstein, 2015).
For the operational issue, NWI could use the histograms to detect problems, and then apply the 80/20 rule to decide which problem to be solved first. According to the case study, the main problem is plastic casing is not suitable and the printed circuit boards for the new HOSE2016 si too small.
First of all, it is imperative to consider the use of McKinsey’s 7S model that can provide feasible insights into the organization’s aspects that are responsible for the issues in strategy, quality and operations. As per Hammer (2015), the 7S model reflects profoundly on the identification of problem areas from among the different functional areas such as strategy, skills, systems, shared values, staff, structure and style (Hammer, 2015).
The analysis of NWI’s case by using the 7S model suggests that the primary issues are identified in terms of ‘shared values, ‘style’ and ‘staff’ aspects of the organization. The shared values of the organization are not identified clearly in the different departments within the company such as its production department and the engineering department. While the engineering department engages in cumbersome efforts to design prototypes that could meet contemporary industry as well as customer demands, the production department perceives the designs of the engineering design as impractical (Kuipers et al., 2014). The involvement of the senior management in the operational process is limited which increases the vulnerability of the business organization. There is a clear deviation in the organizational approach which adversely affects its values and organizational objective. Similarly, the inappropriate perception of the production department towards the commitment to quality and customer satisfaction is clearly identified in their dissent against the impracticality of designs provided by the engineering department.
The strategic issues encountered by New World Innovation with the introduction of the new product HOSH2016 could be identified from a review of the ‘style’ aspect. The style dimension refers to the approaches of leadership and change management followed by an organization. In the case of NWI, it can be clearly observed that the senior management has limited involvement in the business process apart from the provision of instructions to the lower hierarchies. Furthermore, the supervisors in the production department have minimal interaction with employees that resulting in notable confusion related to the alignment of employees with the revised strategic approach of the organization (Kinicki et al., 2014).
The leadership style identified profoundly in the management of NWI is primarily associated with irresponsive nature. The launch of the new product has also led to the requirements for a participative leadership style which is not identified in the case of NWI. The change in the form of introducing a new product to the market was not associated with the aspects of capacity planning and management prior to the implementation which can be considered as a major pitfall on behalf of the leadership and management at NWI. The Huddersfield factory and the operation time of the factory should have been analyzed for capacity to address the potential volumes of demand for HOSH2016 (Simoes & Esposito, 2014).
Quality concerns could be identified in event of the change management procedure implemented by New World Innovations especially due to the change of suppliers to acquire cheaper raw materials. Therefore the ‘staff’ aspect could be considered from the 7S model in this instance to identify quality concerns. As per Olins (2017), the foremost aspect to be recognized in the case of ‘staff’ aspects of NWI refer to the competencies of the workforce. An evaluation of the case of NWI suggests that the quality supervisors in the quality assurance department do not have the appropriate privilege and competencies to implement concrete measures for quality metrics (Olins, 2017).
The quality assurance department only involves checking products for quality and tagging the products that should be sent for rework. This factor indicates that the quality assurance department is limited in terms of capabilities that can create quality concerns. Another factor that leads to quality concerns could be identified in the selection of raw material suppliers on the basis of lower pricing. The organization’s commitment to quality is hampered substantially by the lack of competent purchase managers. Furthermore, it has been observed that employees are transferred from one department to the other without any provision of training.
The above-mentioned issues could be clearly identified from an evaluation of the case study of New World Innovations. The analysis of the issues was supported by the use of McKinsey’s 7S model which emphasizes the organizational aspects responsible for barriers to performance improvement.
The EVR Tool is utilized as a resource for determining the extent to which an organization is adaptable to the environment in which it operates. The tool implies the distinct components of Environment, Value and Resources. The ‘Environment’ aspect of the model is reflective of the opportunities and threats from the external environment and can be identified from the SWOT analysis. The other aspects of the EVR model include values and resources that can be identified from the strengths and weaknesses identified from the SWOT analysis. According to the case study, the main value of the NWI is producing high-quality office equipment, especially attention to innovation, multifunction, smaller volume and robustness. Fortunately, customers prefer that type of product, and the HOSH2016 has received rave reviews. But, by the 7S analysis, the values of the different departments are different. And although the company add more working hours, it still could not cope with the quantity of demand. Moreover, the workers have not been trained with the high required skills. In addition, because change the supplier, whose product quality can meet the HOSH2016 requirements. Therefore, the resource of the NWI can not match the value and environment of the company, which is called the consciously incompetent organisation.
The EVR tool is a promising contribution to the improvement of product designs in accordance with trends of future demands. Furthermore, organizations could obtain a higher value to cost ratio through the use of EVR to incorporate the higher level of eco-efficiency. The application of the EVR model in the case of NWI would be reflective of the positive outcome of HOSH2016’s sustainability in the market. It is also essential to focus on the demand of customers and the alignment of customer purchasing behaviour with environmental awareness and sustainability.
The value chain model has fundamentally included the primary activities and the support activities. The inbound logistics of NWI included the far eastern suppliers who were sub-contracted to manufacture the HOSH2016 product. The operations function basically involved the processes involved to convert the product idea into a reality. The outbound logistics was ineffective due to which the ultimate product had numerous defects. The marketing and sales activity of the business was weak since the ultimate product had defects in it. Similarly, the service model did not satisfy the customers because the product had faults in it.
Similarly, the support activities of NWI played a vital role while designing the HOSH2016 product. The solid infrastructure of NWS could have been used as an asset but still, the product had numerous flaws such as faulty boards and damaged components. Similarly, the HRM model was not totally involved during the designing phase. The technological setting was loose due to which the product received numerous complaints. The technological development phase is one of the most important activities but a report indicated that there were rising complaints and returns. The procurement members were from far off eastern locations.
The major issues which were identified from the analysis include the lack of coordination among the departments within the organization to address the objectives of the change and the insufficiency of leadership in the management of the product launch (Pugh, 2016). The senior management is not the sole reason for the operational, strategic and quality issues. On the contrary, the department supervisors especially in the production and final assembly department have depicted formidable setbacks in terms of interaction with the employees. Since the role of leadership and the approaches for change management are responsible for obtaining productive outcomes, the feasible course of strategic action for New World Innovations could be based on the improvement of competencies of leadership.
NWI needs to focus on the ‘cost’ and ‘differentiation’ aspects so that its strategic priorities can be simplified. The organization needs to follow the ‘cost-based approach so that the supply chain of the product can be strengthened in order to improve the product specifications. In terms of ‘differentiation’ strategies, the activities would be aligned with emphasis on research and development as well as the introduction of new designs. Another significant aspect to be followed in the ‘differentiation’ aspect would be to ensure a promising alignment of the design, engineering, production and quality assurance departments of the organization as well as a comprehensive framework for monitoring of the communication between departments by senior management. The outcome of these activities would be primarily observed in the form of accurate translation of the designs presented by the engineering and design departments by the production department alongside providing the quality assurance department to provide productive insights over the course of the manufacturing process. In a word, NWI is contributing to the high-quality office equipment, therefore, quality is the most important element for it.
Besides, the last board meeting mentioned sub-contracting the product manufacturing to the far eastern supplier to improve the resource. Although many developing countries, such as China and India has the ability to produce and with the low cost, which results in the company losing the control power, that means increasing error rate, low quality and longer lead time (Ballestro, 2012, Rick & Duening, 2004,)
According to the theory that was proposed by Joseph Juran, the quality of a product plays a vital role to make a product or service a success. The quality planning, control and improvement functions need to be carefully conducted to make sure that all defects and flaws are managed. But in the case of HOSH2016, there was no such check and monitoring control. The lack of involvement of the senior managers added to the quality challenges. All these aspects had an adverse impact on the ultimate quality of the newly introduced product.
The Joseph Juran Theoretical model of HOSH2016 has been highlighted in the appendix section. The core elements that need to be focused on by the management and the entire NWI team while designing the product include overall quality planning, quality improvement and quality control. It needs to be devote to designing a robust and effective product that can encompass the core features of the colour printer, scanner, copier, fax, text and Wi-Fi hub that must be integrated on the single platform “HOSH2016”. All these elements and functions are interrelated to each other and the fundamental objective of these processes is to strengthen the quality aspects of HOSH2016. Firstly, the departments need to function in a synchronized manner so that the final product can meet the expectations of the ultimate user. Such an approach is a must in order to ensure that the product can act as a number of useful electronic items at a single time.
The Joseph Juran Theoretical model has been used here because it emphasizes on all the core components that ultimately have an impact on the efficiency and functionality of the product. Such an approach is a necessity in this scenario because it would help the business undertaking NWI to adopt the most effective approach to design the new product in the dynamic market setting. Such a model would help the business to identify and address the major loopholes that seem to be bothering the target customers in the market setting. The focus on the main quality aspects would make sure that the expectations of the audience are aligned with the business objective and the ultimate result i.e. “HOSH2016” is able to create value for the audience as well as for New World Innovations.
According to the analysis, performance issues identified from an evaluation of the case study of New World Innovations provide insights for remedial measures that can be applied for improvement. The explicit detail to be perceived in this case refers to the confusion in pursuing the short term objective of increasing sales of the HOSH2016, with the medium-term objectives of market expansion and the long-term objective of maintaining market leadership for office products.
First of all, the organization has to clear up communication among the management and the employees who will implement the proposal. The senior management is generally concerned with the results, their delivery time and the impact of the results on the long term objective of market position leadership. The senior management is also inclined towards monitoring and supervision of the results from the improvement programme as compared to that of the specified objectives. According to Rothaermel (2015), the senior management should also have a coherent impression of the resources required to accomplish the improvement objectives (Rothaermel, 2015).
Employees are involved in the planning and communication process for the objective of developing an improvement plan. The employees are aware of the challenges and risks involved in the change management proposal which enables them to devise timelines, resource allocation frameworks and projects for accomplishing the desired improvement objectives. The communication between employees and managers would ensure that the former are challenged to derive the best proposals that can facilitate productive returns on investments for the organization (Stark, 2015).
The proposal would comprise of setting targets for individual key performance indicators for the business as well as identification of suitable projects and work approaches for accomplishing individual milestones. The long term timeframe is helpful for managers to consider the fiscal year constraints while addressing the effective implementation of the change in form of a new product launch. The short term horizon in the case of this proposal is identified in the short term and would be directed towards the emphasis of employees on accomplishing concrete results. The employees have to be encouraged to develop smaller projects that can address the quality, strategic and operational concerns (Waddell et al., 2016).
The medium-term horizon for improvement is identified as 1 year for the proposal of performance improvement in New World Innovations. This period would be associated with the training of employees based on feedback and would be primarily associated with the coaching phase of performance management. The long term horizon of the improvement proposal is identified as 3 years wherein employees and the management would be involved in accomplishing the objective of market leadership position (Waddell et al., 2016).
The measures that could be identified in the case of long term objectives of performance improvement include references to review of the assessment of medium-term objectives and the extent to which they are accomplished productively.
The main focus of NWI would be to reduce the number of complaints regarding the quality and fulfilment of the product. The use of the assessment tools shows that the business needs to strengthen its strategic model so that its vision, performance objectives, information requirements and projects can be used to address major business hurdles (Webb, 2017). The proposal is designed to enhance the performance of the product in terms of quality, quantity and cost-effectiveness.
The example of the issue of minimal coordination among the different departments as well as employees and managers within a specific department could be addressed through the proposal. Similarly, the proposal could also be used to prepare a roadmap for addressing the concerns of employee competencies. The proposal could be presented in a tabular form as follows.
Performance management is an essential resource for assisting an organization’s management to ensure an alignment of employee behaviour with organizational objectives. The improvement in performance is solely subject to the outcomes of increased awareness among employees regarding their expectations and professional responsibilities. The use of performance management is primarily guided towards improving the capabilities of an organization in employee development and decision making of employees. The use of appraisals is explicitly observed in the performance management systems adopted by a majority of organizations (Webb, 2017).
Performance management involves comprehensive levels of communication among employees and managers for working together to accomplish planning, monitoring and review of professional objectives of employees and their contribution to the enterprise. The conventional perception of performance management as an annual process has been put to rest as it is implemented as a continuous process.
The use of performance management in the context of changes implemented in an organization would primarily involve three phases that are planning, coaching and review. The application of a performance management system for a change programme of an organization is primarily associated with improving the awareness of employees regarding the changes in their roles, responsibilities and expectations from employers (Kuipers et al., 2014). Therefore a clear impression of the individual phases in the performance management system could provide insights into specific areas which should be subject to performance measures as well as the approaches for implementation. It is essential to ensure that the recommendations for individual performance measures should be able to support the overall change management programme. The case of NWI also implies the requirement of a performance management framework that would involve the participation of senior management and the employees. The performance measures that can be applied in the case of NWI could be illustrated in three distinct stages as follows.
The planning phase would involve interaction between managers and employees in which they would work together to accomplish improvement of performance in the strategic, existing, quality and operational dimensions. In the case of NWI, the performance management system would initially imply the review of job description of employees for identifying the relevance of the current job roles undertaken by the employee. This factor could be applied conclusively to the case of the appointment of employees in the production department and the transfer of employees among departments without appropriate training. The measure should be followed by identification of the relation between the job description of an employee, their skills, work plan and the organizational objectives and strategic orientation (Kuipers et al., 2014).
The planning phase would also involve dialogue among personnel from different departments such as engineering and production so that a productive and flexible work plan can be designed (Cummings & Worley, 2014). Dialogue between the two departments is necessary for a review of the problems encountered by them because of the other. The formulation of a work plan would present a clear picture of the tasks to be completed, standards for measurement of performance and the results expected from the employees. The planning phase would also involve the identification of crucial areas as performance objectives for the organization for the year.
According to NWI’s strategic plan, the two major areas of focus for the organization are quality and market position. Therefore, the issues in supply chain management of the organization could be identified in this phase along with prominent references to the measure of transitioning to suppliers that facilitate good quality raw materials. The issue of poor quality of raw materials provided by the new supplier preferred by the purchase manager on the basis of lower costs could also be addressed through consistent monitoring to the suppliers. The managers should also make substantial efforts to present training objectives in accordance with the organization’s strategic orientation and the inherent values of NWI. Then the management would have to shift to the coaching phase which can be presented as follows.
The coaching phase of performance management could be associated with the supervision of the progress made by employees in accomplishing performance objectives. Managers are required to identify the barriers that prevent employees from attaining the performance objectives such as lack of responsive supervisors or communication among the employees in a specific department.
The coaching phase also emphasizes the provision of feedback to individual departments and employees regarding their compliance with performance goals. Managers are also required to identify any possible requirements of additional support from managers for employees to accomplish their performance objectives (Cummings & Worley, 2014).
The final step of the performance management system to be applied in the case of NWI is the review phase that involves the assessment of the performance of employees over a given period of time. One of the promising factors in the review stage is the option for self-assessment so that employees would be able to reflect on their personal contribution to the improvement programme of the new product launch by NWI. 360-degree feedback is a favourable option that can be applied for performance appraisal so that departments could anticipate their pitfalls from the perspective of other departments (Waddell et al., 2016). The review stage would also be associated with documentation of the setbacks encountered during the change management programme for NWI. This would help the management to prepare an outline of approaches for the training and development of employees.
The balanced scorecard below highlights the financial perspective, customer perspective, internal process perspective and growth perspective. The diagrammatic model highlights all these perspectives in detail. The diagrammatic representation shows that NWI must refocus on its strategic goal so that the technical aspects and design specifications of HOSH2016 can be strengthened.
The main bottlenecks that have been identified that need to be eliminated include the poor cost structure of the product, ineffective HRM involvement and the inflexible internal process model. The assessment indicates that there is high scope to strengthen the designing aspects of HOSH2016. The diagram highlights the balanced scorecard of NWI relating to the “HOSH2016” product in detail.
As the current performance triggered sufficient com
from the customers and inside workers, it’s advisable for NWI to conduct change on new product launch. HOSH2016 is encountered with two essential issues: one is the lack of ability to cope with the volume of demand for the product; the second is increasing unsatisfied clients. Failure to produce enough products to meet customer needs triggers many management issues within NWI, hence the suitable place for change is inside NWI.
Figure 1: Organizational Change Model of Leavitt
According to organizational change models cited by Leavitt, the task, people, technology and structure should be identified for the good implementation of changes. If the quality of HOSH2016 should be changed, then the task is quite obvious that the involved departments should work hard to change the quality. The involved people may include the product design team, the procurement team, the factory team. The next is to allocate roles for each team for better cooperation and job responsibility takeover. It’s important to name a project manager, better be Beth Davies, the managing director to take full responsibility for the changes. Then comes the technical part of conducting the change (Nadler, 1995).
As quality is an emergency, Beth may need to take force-coercion to conduct the changes in a short period. By listening to the consultants, Beth needs to allocate responsibility and KPI for the involved people to conduct the changes in a short time and try her best to solve resistance issues caused in the process.
In the mid-term, NWI needs to change its operating system. Rational persuasion is suggested to be applied in changing the operating system as it involves too many important teams and people. If changes on operation changed brutally, huge resistance would be caused and the resistance may surpass the control capability of management. Operation issues cover but are not limited to lacking substantial infrastructure, workforce and coordination among different functional departments within the organization.
Figure 2: Organizational Development and Action Process
The organizational development process and action model could be applied in changing operating systems. The project manager who conducts the change should need to figure out the problems by data gathering and analysis. For instance, he can follow the working process of the consultant to talk with people from the involved parties to figure out their pains and suffering in the operation system. Their key performance indicator should also be paid attention to since it’s the key to their behaviours and performance. When the action planning is worked out, it’s better for the project manager to communicate with people from the involved teams before implementation. If the changes were conducted without any pre-communication, the people involved for sure would be angry and resistant (Dawson, 1994).
In long term, NWI feels the urge to change its strategy at the company level. If checking the essential problems from the strategic level, it should be the poor involvement of the management team and the employees that acted as a major hurdle in the process. Strategy change needs sufficient communication with the company since the strategy is the direction of the organization. The organization is usually extremely careful about the strategy change and the changes always take a long time. Normally, shared power is applied in this process. People who lead the changes need to receive trust from the organization by creating shared values and commitment (Sturdy and Grey, 2003). The change leader may encounter resistance from the people in the organization since they are in diversified fear. Some may fear that their benefits would be impaired, some may fear because of information lacking, and others may just fear change itself. Hence, back and forth communication and negotiation are necessary for this process.
The assessment of the case study of New World Innovations presented a clear impression of the issues encountered by the organization in terms of its current, quality, strategic and operational performance. The depreciating market position of the company was clearly evident from the evaluation albeit with the appreciation for the new product HOSH2016 launched by NWI. However, the launch of the new product did not turn out to be a reasonable change without the necessary involvement of senior management and compliance with the general concerns in change management.
The prominent issues that were identified from the case of NWI include references to the lack of communication among managers and employees as well as coordination between the different departments of the organization. The workforce is not aligned with shared values of providing quality products and customers satisfaction within the organization due to the lack of coordination between the departments. Furthermore, the strategic issues were identified in the minimal involvement of the top strata of management in the change management initiatives.
Quality concerns were identified in the change of suppliers while operational issues were identified in the lack of training for the workforce in response to the introduction of the new product. Therefore, the organization has to face setbacks such as an increasing backlog of unsatisfied orders and subsequent pressure on the factory supervisors led to increasing in complaints regarding the quality of the products.
The assessment utilized these outcomes to present proposals for performance management that could contribute to the effectiveness of the change initiative in various timeframes including the short term, medium-term and long term horizons. The proposal was formed using the short, medium and long term month planning and illustrated the implications of vision, objectives of the proposal, resource requirements, procedures required for implementation and information sources.
The recommendations that have been presented for New World Innovations would basically focus on the long term performance objectives of the business that would help it to enhance the designing aspects of HOSH2016. There is a need for the business organization to rethink the core features of the product and take the input from the entire core functions of the departments so that the main aspects can be improved and enhanced.
The senior management should focus on obtaining market leadership in the UK market based on product differentiation that can be observed in the HOSH2016. The threat of substitute products and product imitation could be observed explicitly in the case of NWI which presents a valid explanation for the switching to suppliers with low-cost raw materials.
The recommendation for NWI, in this case, would be to focus on the brand equity that can be fulfilled through measures for supervising the quality of raw materials. However, it could be aptly concluded that NWI can obtain productive outcomes from the change programme by supporting it with appropriate performance management systems.
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