Asda Link

Reports

http://retailindia.typepad.com/retailindia/files/leading_strategic_change_asda_full_report_locked.pdf

http://hbswk.hbs.edu/item/6119.html

GE, Becton Dickinson, Campbell Soup, IBM, and ASDA, a U.K. grocery chain, are examples of companies that were transformed by new CEOs taking charge, usually in times of crisis. These CEOs employed change strategies that focused on both commitment and performance. As ASDA's CEO, Archie Norman, tells it, the new leader has to set a general direction, but must listen and engage people to identify and solve problems. Top-down leadership, he argues, will not work.

http://hbr.org/2000/05/cracking-the-code-of-change/ib

Cracking the Code of Change

Key ideas from the Harvard Business Review article by Michael Beer and Nitin Nohria

The Idea in Brief

Here’s the brutal fact: 70% of all change initiatives fail. Why? Managers flounder in an alphabet soup of change methods, drowning in conflicting advice. Change efforts exact a heavy toll—human and economic—as companies flail from one change method to another.

To effect successful change, first grasp the two basic theories of change:

1) Theory E change emphasizes economic value—as measured only by shareholder returns. This “hard” approach boosts returns through economic incentives, drastic layoffs, and restructuring. “Chainsaw Al” Dunlop’s firing 11,000 Scott Paper employees and selling several businesses—tripling shareholder value to $9 billion—is a stunning example.

2) Theory O change—a “softer” approach—focuses on developing corporate culture and human capability, patiently building trust and emotional commitment to the company through teamwork and communication.

Then, carefully and simultaneously balance these very different approaches. It’s not easy. Employees distrust leaders who alternate between nurturing and cutthroat behavior. But, done well, you’ll boost profits and productivity, and achieve sustainable competitive advantage.

The Idea in Practice...