IHC QUALTRICS ANSWERS Flashcards
5 strategic goals of the IHC 2020 strategy
The five strategic goals of the IHC 2020 strategy, as mentioned in the document, are:
- Client-oriented, sales-driven: This goal emphasizes the importance of focusing on the needs of the clients and driving sales efforts accordingly.
- Operational efficiency, lean: This goal is about improving the efficiency of operations and adopting lean methodologies to eliminate waste and improve productivity.
- Employer of choice: This goal is about making IHC an attractive place to work, thereby attracting and retaining top talent.
- Innovation: This goal underscores the importance of innovation in products, services, and processes to stay competitive in the market.
- Internationalisation: This goal is about expanding the company’s operations and presence globally.
What were the concrete measures as suggested in document 1a . to make changes in the composition of the workforce?
During the same townhall meeting as described in document 1a the deteriorization of market circumstances was described. What four measures are suggested regarding the composition of the workforce to solve the problem?
The four measures suggested are: 1. Organizing our work more efficiently; 2. Merge and integrate comparable functions; 3. Reduce the number of slipways from 4 to 2; 4. Transfer building activities to foreign counties (low cost countries).
What other measures have been taken earlier on to decrease the dependency from market circumstances? Read document 1a again.
The concrete measures were about the reduction of the workforce and more precisely: majority of flexible staff and 15% of permanent staff
Now read ch.5 in the textbook carefully and answer the following question. How would you describe the scale and depth of change by relating to document 1a again esp. the announcement of the layoff? Provide reasons.
a) discontinuous change, first-order change
b) discontinuous change, second-order change
Scale of Change:
The scale of change at IHC can be considered as discontinuous. The company is going through a significant restructuring process, including layoffs, which is a substantial and rapid change. This is not a minor adjustment or a small-scale, incremental change. The company is not just refining procedures or making slight adjustments to its operations. Instead, it is making major changes that affect the entire organization and its future direction.
Depth of Change:
The depth of change can be seen as a second-order change. Second-order change refers to a change that results in operating from a different perspective or frame of reference, thinking completely differently about the issue. In the case of IHC, the company is not just trying to improve how something is done (which would be a first-order change). Instead, it is rethinking its entire approach to its business, including its workforce composition and its strategic goals. This suggests a shift in the company’s underlying assumptions and ways of operating, which aligns with the concept of second-order change.
In conclusion, the changes at IHC can be described as a discontinuous, second-order change. The company is undergoing a major transformation that is not only changing its structures and processes but also its underlying assumptions and ways of thinking. This is a significant shift that is likely to have a profound impact on the company and its employees.
Now read document 5 from FD (December 2016) where the CEO was interviewed.
What is your answer now about the scale and depth of change? Provide reasons and illustrate it based on the plans in the future as outlined in the interview.
- Scale of Change: The change at Royal IHC is not limited to a particular department or unit but is organization-wide. The CEO mentions that Royal IHC must become a smaller, leaner, and more international company. This involves a shift from being a manufacturing company to a knowledge company, with more knowledge workers and engineers and fewer welders and iron workers. This indicates a large-scale change affecting the entire organization.
- Depth of Change: The change at Royal IHC is not just about adjusting existing ways of doing things (first-order change), but about fundamentally altering the nature of the organization (second-order change). The CEO talks about a transition phase from a manufacturing company to a knowledge company, which involves a significant shift in the company’s identity and way of operating. This suggests a deep, transformative change.
- Future Plans: The CEO’s future plans further illustrate the scale and depth of the change. He talks about outsourcing more production activities abroad, focusing more on making advanced equipment for various sectors, and rolling out a new model to all regions where they are present. These plans indicate a comprehensive and radical transformation of the company’s business model and operations.
Therefore, based on the information from Document 5, the change at Royal IHC can be characterized as a corporate transformation, which is a discontinuous, second-order change.
Based on the same information as presented during a townhall meeting in 2015 and as laid down in document 1a and referring again to chapter 5 in the textbook: how would you describe the span of change? Provide reasons.
a) Modular Transformation
b) Corporate Transformation
Based on the information presented during the townhall meeting in 2015 and as laid down in document 1a, it can be inferred that the span of change at Royal IHC is a corporate transformation.
Here are the reasons:
- The company’s market circumstances have drastically deteriorated, necessitating rapid and significant changes. This indicates a company-wide issue that affects all aspects of the organization, not just a single module or department.
- The Board of Directors intends to reduce the majority of flexible staff and 15% of permanent staff. This is a substantial change that will affect the entire organization.
- The goal of IHC 2020 involves a comprehensive transformation across multiple dimensions of the organization, including client orientation, operational efficiency, employer choice, innovation, and internationalization. These are not changes confined to a specific module or department but are changes that will reshape the entire organization.
- The company acknowledges that a gradual change process is not an option anymore due to the economic downturn and market conditions. This suggests a need for a more radical, organization-wide transformation.
Therefore, considering the scale and depth of these changes, it can be concluded that Royal IHC is undergoing a corporate transformation.
Based again on information as laid down in document 1a and referring again to chapter 5: how would you describe the timing of change? Provide reasons.
a) reactive
b) anticipatory
Based on the information in Document 1a, the timing of change at Royal IHC can be described as reactive. This is because the company is responding to deteriorating market circumstances and the need to accelerate and change rapidly. The statement “Our market circumstances have deteriorated drastically. Therefore we need to accelerate and change rapidly” indicates that the changes are a reaction to external factors and conditions.
In contrast, anticipatory change is typically initiated in response to predicted or expected future events or trends. In this case, the changes at Royal IHC are not described as being in anticipation of future events, but rather as a response to current and immediate challenges. Therefore, the timing of change at Royal IHC is best described as reactive.
What type of change do you recognize here according to the Stace model (ch. 8; p.245) and why?
a) Charismatic Transformation
b) Turnaround
Based on the provided information, the type of change recognized here according to the Stace model is Charismatic Transformation.
Charismatic Transformation is characterized by the use of key managers to gain inspirational, emotional commitment from staff. In the given scenario, the ExCo member talks about training management to spark conversation within their teams and encouraging them to ask questions. This approach is about inspiring and engaging employees in the change process, which aligns with the characteristics of Charismatic Transformation.
In contrast, a Turnaround would involve fast, discontinuous changes to recreate the organization, often in response to a crisis or significant performance issue. The scenario described doesn’t seem to involve such drastic measures, but rather focuses on engaging and communicating with employees to facilitate change.
