The application of Strategic Change Management in Toyota

The application of Strategic Change Management in ToyotaThis report deeply discusses the application of the Strategic Change Management in worlds 5th biggest company, Toyota travel community which is founded by Kiichiro Toyoda in 1937. As an government activity which has signifi flowerpott stirs through last years, The Toyota force Corporation go forth be a proficient example. As the worlds largest automobile manufacture, The Toyota aims continue the 21st century with st equal colossal-term growth whereas determine for harmony with society, People and the environment. According to the vision of the Toyota, Good corporate citizen, they focus on constantly winning the trust and respect of the international community.The Toyota Motor Corporation constantly adopt with business environment for the pop the question of long term growth. The Toyota Motor Corporation implemented The Toyota Way 2001 in April 2001 by expressing values and guidelines that should be embraced by all e mployees in the Toyota. There ar intravenous feeding components in The Toyota Way 2001As a root for Management Decisions, hypothesise long-term.Problem-solving processDevelop employees for Adding value to ToyotaRecognize the solving root problems constantly initiatives nerveal learningThe Toyota Motor Corporation Makes decisions gently by consensus, Consider entire options thoroughly and implement its decisions rapidly with the changing environment. The Toyota Motor Corporation is now grow in different countries and worldwide market and it has grown-up as a large multinational corporation from wherever it started. In 2008 it displaced General Motor and became the largest automobile manufacturer.The Toyota Motor Corporation acquired 51% ownership of Daihatsu, 16.7% ownership of Fuji Heavy Industries and acquired 5.9% of Isuzu Motors Ltd in 2006. The Toyota Motor Corporation is aimning to introduce Isuzu diesel technology for the products of Toyota. The Toyota introduced invi gorated technologies comprising loan-blend gasoline-electric vehicles which are one of the first mass- deed and it is sold 2 million in global by 2010.The Toyota real The orbicular Vision 2020, that is established the Guiding Principles at Toyota in 2007. It has drafted management plan from medium to long term and how work Toyota in order to progress to its goal.Likewise, The Toyota always is making decisions and implements metamorphoses in terms of achieving goals with changing environment.In this report, first discuss the background to the qualifying affecting Toyota Motor Corporation. In here, try to identify a range of models in Change Management, Factors to wobble and value of intervention techniques. At the next step, accredit the egressions in strategicalal modifications. Then identify the learn stakeholders in Toyota, develop systems for under(a)stating them and analyse the benefits and drawbacks of these systems. After that exempt how the organization can deve lop strategy for a change with its key stakeholders and for managing resistance to change. Finally, plan to implement a model in order to achieve its goals and discuss how to measure the improvements.TASK 01 BACK GROUND TO THE STRATEGIC CHANGE IN THE ORGANIZATIONIn terms of achievement of the Global Vision 2020 the Toyota has to change their system according to the plan that they have drafted.Models In Change ManagementFirst of all, The Toyota should be explored that the models in change Management which they can follow. Here, we can discuss,frost Phases (Developed by Kurt Lewin 1975) archetype of Force reach (By Kurt Lewin)Transition Modal ( by Beckhard 1969)Change through the learning of organization ( By Peter Senge 1992)Change by entrepreneurship ( By Rosabeth Moss Kanter)Freeze Phases (Developed by Kurtt Lewin 1975)This is one of the most useful models we can use for successful change. This is proposed by Kurt Lewin (1975). He discussed the model of change in common chord ste ps or three stages as given below.Unfreezing Finding alterations or reductions for change that most employees can understand and accept those factors easily.Changing developing patterns of their conducts in new attitudes, feedback on new information and new change.Refreezing Supporting devices to make sure the patterns of the new behaviour is maintained.At the stage of Unfreezing, the managers use the threat of competitors from outdoor(a) environment to make sure that employees are jolted out of satisfaction with current situation. At the stage of changing, develop or change the new attitude, behaviour and feedback on new information and murder of change. At the refreezing, the managers have danger in generating a new system.Concept of Force Field (By Kurt Lewin)This concept too created by Kurt Lewin (1975). When there is a change necessary by driving forces or restrictive forces motivate to maintain the current situation, this concept of Force Field can apply. Change is poss ible by identifying driving forces and utilising them while minimising restrictive forces.organisational Goals and objectives, problems and needDriving Forces Restrictive Forces(Forces Favoured on change) (Forces restricted on change) trus bothrthy mailChange through the learning of organization (By Peter Senge 1992)He explained this model by five core competencies involve in creating learning organization. reach a shared vision to make sure that employees are focused onPersonal mastery learning by persons who are frequently purpose out how creates more of what matter to them.Working with people to overcome their challenge such as unconscious assumptions and to appreciate.Learning about team. The learning organization is postulate individuals to gather together and work as a team.The systems focus on importance of tradeation on interrelationships and networks rather than distribute the problems in to parts and execute with alone.Intensification of factors that driving to chang eExternal Triggers to ChangeBecause of the external development the change is necessary. The Toyota should be come to terms with number of external factors including global market share, environmental issues, and changes in demographically and awareness of health. Eventually, these factors will cause to triggers to change. It is very clear that the external triggers are occurred by the direct action ( childbed Environment) and indirect action (General Environment) of the organization. These changes in two two environments have to be monitored and reacted according to them.When considering the general environment of the Toyota Motor Corporation, those triggers can be discussed under PESTLE.Political progenys of new government.As an example, in 2010 the US government required from The Toyota Motor Corporation a penalty of US$16.375 million for its delayed response to the notifying the National Highway Traffic golosh AdministrationChanges in economy such as global competition, fluct uation of exchange rates, activity aim of macro economy.As an example, in 2008 The Toyota Motor Corporation had to face the global financial crisis of 2008 and it was in a loss after 70 years.Changes of social or demographic such as education level and changes of expectation or values.Because of the succession of Toyota Team Europe in 1997, The Toyota Motor Corporation headstrong to implement the TMME, Toyota Motor Europe marketplaceing Engineering. After two years, The Toyota could create the customer base in the United Kingdom, since the Toyotas cars were very popular among the British people.Changes in Technology such as innovations and developments in product and production process.The Toyota Sienna, popular minivan is programmed to join the hybrid line-up by 2010, and it plans to suggest its entire line-up of cars, SUVs, and trucks with a Hybrid Synergy Drive option by 2030. By 2012 as well as Toyota hopes to issue an electric version of the RAV4.Implications of the legal environment like government policies.Tariff on Imports introduced by governmentAs an example, in 2010 the US government required from The Toyota Motor Corporation a penalty of US$16.375 million for its delayed response to the notifying the National Highway Traffic Safety AdministrationEnvironmental implications by legislationThe Toyota Motor Corporation is a leader in manufacturing vehicle environment friendly technologies. In 2005, Toyota implemented Fourth Environmental Action Plan.The Task Environment discuses about all stakeholders, those who can effect to the Toyota and who can effected by the Toyota as well. The economist Michael Porter introduced this context and it has five dimensions.Power of vendee Develop the new market and search for a new customer base for the products of Toyota. Because of the succession of Toyota Team Europe in 1997, The Toyota Motor Corporation decided to implement the TMME, Toyota Motor Europe Marketing Engineering. After two years, The Toyota cou ld create the customer base in the United KingdomPower of Suppliers Seek the new bases of raw materials to make sure that they can supply continuously and stability of the prices of materials.Threatens from its substitute Develop the awareness of the customers about benefits from the products not reached through substitutions.Entry barriers to the Market It is good to make the advantages from economies of scale in production which cost savings can be delivered to the customerThe degree in rivalry of inter-firm Put political campaign on making agreement with the competitors to level of advertising.Internal Triggers to ChangeThe internal triggers will occur as the result ofA new head in the organizationWhen performing external organization by benchmarking exercisesDissatisfaction of the management with the current situationConflict of the management and employeesThe system approach highlighting the necessities of interrelationship at heart subsystem in the Toyota Motor Corporation, such as,Responsibilities that everybody hasTechnology that they usingEmployees of the organizationStructure of the organizationManagement of the organizationAfter summarising all the factors which driving to change the organization I can suggest the Concept of Force Field (By Kurt Lewin) is the best model for managing the change in The Toyota Motor Corporation. The Force Field Analysis is sincerely consequential to identify all the forces which fortunate on change and on the other hand it identify forces which are against to the change. In addition to that it helps us to consider the importance of these factors and to make the decision whether the implementation of the plan for change is worth. When we made the decision to carry out the plan, the Force Field Analysis is supported to recognise the changes that we have to make to improve it.TASK 02 UNDERSTAND ABOUT THE ISSUES IN STRATECIG CHANGEAccording to the explanation of Richard Daft (1998) there are some key parameters that w ould be observed for the purpose of succession of change in the organization.Needs and Ideas for the changeIf there is not a perceived need for the change, beliefs not considered seriously. When managers determine the gap between predicted performance and the actuals performance, the perceived need arise. Success of change would be difficult whereas the organisational culture is very strong or interest is compel by internal stability.Ability to adoptWhen the decision makers of the organization decided to go ahead with the suggested Idea, Adoption will occur. The top managers and employees of the organisation should be concur to support for the change. Sometimes the decision might be required by signing a legal document by the directors in occasions such as acquisition of ownership in another company. For any small changes, the formal approval of the middle management is enough.Available resourcesResources requires at the time of scheming, planning, and implementing of the change and reinforcing change as well. Most of the innovations are sack over the budgeted funds and requires special funds.ImplementationWhen the organisation decided to make a plan to utilize new ideas, techniques or a system, the implementation will occur. This would be happened to a system that already exists such as, approval system for capital spending, budgeting process for departments or divisions. The organization should be acquired the equipment and materials and the employees should be trained to use their ideas.Managerial Barriers to the ChangeThe Managers can generate barriers for the benefits of change. The management can generate mistakes by ignoring their objectives, availability of materials or resources and the alternatives they able to undertake. There are several factors to describe by Daft and they are discussing as a framework for this issue.Extreme focus on cost The management always possess by mind-set that the most importance thing is cost and they forget to appr eciate that the cost is not the most important thing for the change, as an example when we suppose to change employee motivation or customer satisfaction at higher level. Unless the forthcoming yields are considerable, when performance of an idea that cost more than existing applies, is unlikely to be accepted.Failures in highlighting benefits Both negative and positive responses will be produced by any cast of changes. The managers should be perceived more positive aspects than the negative aspects of the change and education would be helpful for the manager to achieve this.Lack of corporation and coordination ability Because of the wish of coordination to the implementation of the change, organizational conflict and fragmentation will be resulted. In addition to that, the old and new systems might not be compatible. Sometimes, the progress at the operational level may be seriously slow and the performance of the new system is not known. This type of problem will arise in proje cts that re-engineering the business process since, failure to assume properly that how thing are going on currently.Uncertainty avoidance The managers fear uncertainty related to the change at the single level. To avoid this situation communication should be strong horizontally. Then the team may know how process is going on and they can understand the how the change will impact on their duties.Fears on Loss- Fear of loss are related to uncertainty of avoidance. Managers may feel fear not only about their status and authority but also about their jobs.TASK 03 IDENTIFY THE RESPONSES TO CHANGE BY THE STAKEHOLDERS AND OVERCOMING THE RESISTANCE FOR CHANGEThe all activities of The Toyota Motor Corporation are directly associated with its key holders such as shareholders, customers, employees, competitors and etc. So, it is really important to concentrate about stakeholders responses on change. The organizational goals and The Global Vision 2020 of Toyota is affected by performance and work return and the responses by its stake holders. because it is very essential to create a positive image of the strategic change for both Toyota and its stakeholders.The stakeholders of the Toyota highly concentrate on benefits that they could have through the strategic change. The shareholders of Toyota Motor Corporation are seeking higher return for their investments, the employees are expecting salary increment and as well as good working environment in their working places and customers are expecting batter value for their investments on Toyota Vehicles payable to the strategic change in Toyota Motor Corporation. Consequently if there is any failure on strategic Change in Toyota it will badly effect on response of stakeholders. Therefore the responses of the stakeholders to change are really important to make decision on Strategic Change. Because the strategic change, can be accepted or rejected by the stakeholders.How Attitudes of stakeholders will effect on Strategic Chan geResistance on change can be forecast if the change is inevitable. As the responsible persons in the organization, top management of Toyota Motor Corporation should be focus on how and why resistance to change grows within the organization. Torrington and Weightman (1994) eliminate the different types of change experience.Imposition, Commenced by The Toyota from on HighAdaptation, make changes in looks or attitudes of stakeholdersGrowth, favorable responses for opportunitiesCreativity, when stakeholders are initiator and they in controlThe imposition complies with resistance, interpretation complies with uncertainty, growth complies with delight and creativity complies with excitement. Therefore the management of the Toyota need be strong with skills to,Overcome the resistance or find other alternatives for change methods. benefit the uncertaintyEncourage the stakeholders and subordinates to get favorable response.There are some spectrum conceivable reactions to the objective of the change programme.Enthusiastic Corporation, acceptance or corporation under pressure from the management.Inactive Resignation Loss of interest, Least Contribution, IndifferenceInactive Resistance non-learning behavior, regressive behaviorActive Resistance working to rule, least work, protest, sabotages, obligating errors,Organizational change always encounter certain resistance may be simple. The change can be threatened by resistance but it is not amazement. Reasons for the resistance can be summarized as follows,Poor understanding about nature of the strategic change and what are the reason for that strategic changeBelieves of stakeholders they think that their personal goals and interest would be threatened due to strategic change.Contradictory assessment on costs and advantages of the strategic change for the Toyota Motor Corporation.Lack of say-so about initializing the change and their intentionsThese clarifications for the resistance can be explained by concentrating on strategic change at individual level and then small assort in the organization. Resistance by employees of working groups or informal group is possible to pose more troubles for the Management of the organization.Overcome the resistance to changeBecause of the brusque understanding and the poor communication, resistance may be occurred. Though, if there are any serious matters for the resistance, a complex approach would be required. The management of the organization should be able to adopt with flexible approach to manage the strategic change and identify the main contingent issues in every situation. The managers should be able to identify the different types of resistance.Ignoring I dont have enough information to make decisionDelay for the judgment I can wait and see how it going on for the decisionSelf-justifying Stances Ooh Other solutions are better than me. this will not workScarcity I cant allow this to proceed. It is very costly care I am sure. I cant work on thi s new systemDisaffection this is separate from my duty and from my divisionExperienced refusal We tried on this before and it was failedLoss of Authority It has to give up controlAvoidance I am not interest to computersResistance may be collision with face to face conflict. Normally it will indicate that the objectives of the organization had not been explained properly. It is better to listen the complaints, let the annoyance surface and finally makes calm behavior in all circumstances of conflict.Six Methods to overcome the resistanceDevelop the Education and CommunicationImprove the involvement and participatingProviding supports and FacilitationMake better dialog and agreementImprove cooperation and ManipulationExplicit and implicit coercion(Kotter and Schlesinger -1979)When we try to implement last two methods will raise legal and ethical problems. And also cause to make the situation worse. These methods are not mutually exclusive but managers make the decision in effecti ve way by compounding them.TASK 04IDENTIFYING APPROPRIATE MODELS FOR THE STRATEGIC CHANGE AND MEASURING THE EXPECTATION OF STRATEGIC CHANGEThe implementation of strategic can be valued, to make sure the current change. For the implementation of strategic change we can establish monitoring and review techniques. The strategic change would be able to implement within the Toyotas stakeholders for the purpose of achieving Global Vision 2020.When we implement the strategic plan to the organization we have to implement it step by step. We can suggest a change process as followRecognize the problems in the Toyota Motor CorporationObserve the reasons for those problems and analyze the solutions to overcome themSelect and plan alternative solutionImplement the planned solutions take place the learning process and allow organization to deal with ongoing change(Senior and Fleming 2006)The managers can state the strategic change plan by allocating employees into separate teams and instructing them. Therefore each team automatically will used to implement the strategic plan easily. Making teams within the organization is very essential to evaluate strategic changes. The outcomes should be able to monitor and evaluate the performance of team workers for the successful implementation. The management can introduce incentive scheme for the best team for the purpose of motivation through success in strategic management by monitoring and evaluating the each team.According to my point of view, I can suggest the Concept of Force Field (By Kurt Lewin) is the best model for managing the change in The Toyota Motor Corporation. The Force Field Analysis is really important to identify all the forces which favourable on change and on the other hand it identify forces which are against to the change. In addition to that it helps us to consider the importance of these factors and to make the decision whether the implementation of the plan for change is worth.As an example, when The Toyo ta Motor Corporation target to issue an electric version of the RAV4 by 2012.Target to issue an electric version of the RAV4 by 2012Driving Forces Restrictive ForcesCustomer wants new product Loss of staff overtimeImprove speed of production CostRaise volume issue Staff afraid to new technologyControl rising maintenance Cost Environmental impact(Forces Favoured on change) (Forces restricted on change)Current SituationWe can use action plan to review the process of implementation. In addition realize the present position in the organization after the strategic change. By using action plan we can recognize the time frame and difference between expected level and actual level of the strategic change in the organization.By recording, keeping, monitoring and evaluating the changes we can make sure the on-going change in organization. We can check whether expected performance have achieved by stakeholders through the strategic management by measuring actual performance.CONCLUSIONThis rep ort deeply discussed the application of the Strategic Change Management in worlds twenty percent biggest company, Toyota Motor Corporation. According to the Vision of the Toyota, Good corporate citizen, they focus on constantly winning the trust and respect of the international community. The Toyota Motor Corporation always adopt with business environment for the purpose of long term growth. In terms of achievement of the Global Vision 2020 the Toyota has to change their system according to the plan that they have drafted.Because of the external development the change is necessary. The Toyota should be come to terms with number of external factors including global market share, environmental issues, and changes in demographically and awareness of health. Eventually, these factors will cause to triggers to change.The all activities of The Toyota Motor Corporation are directly associated with its key holders such as shareholders, customers, employees, competitors and etc. So, it is r eally important to concentrate about stakeholders responses on change. The organizational goals and The Global Vision 2020 of Toyota is affected by performance and work return and the responses by its stake holders. Therefore it is very essential to create a positive image of the strategic change for both Toyota and its stakeholders.