CORUS Overcoming Barriers to Change

Overcoming Barriers to Change

Presented By: Anand Bhele (093) Lav Jain (094) Shreyash Naik (095) Ashok Dilip (096) Vidyashiny (097) Vibhor Allahabadi (098) Syed Ali H.Z. (099) Ankush Shama (100)

ORGANIZATIONAL BEHAVIOR

CONCLUSION

QUESTION 3 & QUESTION 4

MEASURING OUTCOMES OF CHANGE

OVERCOMING BARRIERS

QUESTION 1 & QUESTION 2

BARRIERS TO CHANGE

REASONS FOR CHANGE

INTRODUCTION

INTRODUCTIONO Merger of BRITISH STEEL PLC with

HOOGOVENS, a Dutch CompanyO Now a subsidiary of TATA GROUPO CORUS employs 40,000 people

worldwide

CORUS

Strip Products

Long Products

Distribution &

Building Systems

CORUS STRIP PRODUCTS, UK

O LOCATION: Based at Port Talbot & Llanwern, Newport, South Wales

O PRODUCTION: Steel in Strip form

O USE: O Vehicle manufactureO ConstructionO Electrical AppliancesO TubesO Packaging

O AIM:O To be a Leader in

Steel IndustryO Provide Better

ProductsO Provide higher

quality of Customer Service

O Provide Better Value for Money

THE JOURNEY (2005)

O A Cultural Plan for CHANGEO Focuses on Values & Beliefs of the

people in an OrganizationO People are Employees, Contractors,

Suppliers, etc.O Principles were determined by The Eight

Core Values

THE JOURNEY (2007)

O BOOKLET featuring The Eight Values & Expected Behavior from the Company

O Defined a new CultureO Reduced:

O Site AccidentsO Health & Safety IssuesO Poor Driving

REASONS FOR CHANGE

O Internal drivers :These are the forces

within the organisation.

O External drivers :These are the forces

which are outside the organisation.

FEW DRIVERS

INTERNAL EXTERNAL

O Poor deliveryO CompetitivenessO High wastageO Low staff morale

O New competitorsO Changing

customer requirements

O New technologyO Poor industry

record

Barriers to

Change

Create & Implement plan for change – Envision the ‘To

Be’

Measure Effectiveness of the change

Drivers for

Change – Understanding the ‘As & Is’

HOW THEY IMPLEMENTED CHANGE?

BARRIERS TO CHANGE

O Change can challenge people’s abilities, experience, customs and practice.

O It can also be considered as Threat.

O This can create resistance or barriers to change.

BARRIERS FACED BY CORUS

O Change of Job RolesO Job CutsO The Attitude ‘THIS IS THE WAY WE

DO THINGS AROUND HERE’O Employees saw new initiatives as a

possible threatO Ageing workforce

Using Examples, Explain what is meant by Internal & External Drivers

for CHANGE?INTERNAL DRIVERS:O Interval drivers were needed to

overcome the inefficiencies and problems that existed within the business. They were :O Poor DeliveryO CompetitivenessO High WastageO Low Staff Morale

QUESTION #1

EXTERNAL DRIVERS:O External drivers were needed due to

the pressure from outside the business. Some of them are:O New CompetitorsO Changing Customer requirementsO New TechnologyO Perceptions of the Industry

QUESTION #1

What Barriers to CHANGE existed at CORUS?

O Barriers to change are as follows:O Traditional CultureO Fear of the UnknownO Job ReductionsO Ageing WorkforceO Rewarding of Long Service

QUESTION #2

OVERCOMING BARRIERSKEY FEATURES

O Work closely with employees and get them involved as much as possible.

O Direct and indirect communications through weekly newsletters and workshops.

O To show managers and employees the condition of the plant, to identify weaknesses and encourage employees to make changes.

THE NEW VALU

ES

Honesty

Integrity

Respect

Improvement

Excellence

Fairness

Transparency

Professionalis

m

CHANGING ATTITUDES

O Employees become accustomed to working with limited resources.

O Continuous learning through newspapers, articles etc. on new values.

FOCUS ON IMPROVEMENT

O Due to the high standards of safety associated with Corus processes, all working sites are alcohol-free.

O Focus on helping employees who are willing to accept assistance to improve their performance.

MEASURING THE OUTCOMES OF CHANGEO ‘THE JOURNEY’ contributed to

sustainability for the business.O Improved EfficiencyO Increased OutputO Lowered CostsO Reduced WastesO The business GREW even in the

Recession of 2008 & 2009

O Cost reduction for 2009 – 2010 Financial Year was around £250 Million

O Setting up MILESTONES helped the company to review & measure progress & achievements & set new deadlines

Analyze the approaches CORUS used to overcome the Barriers

‘We cannot solve our problems by spending; we cannot solve our

problems by cutting back. The only way to meet our challenges is

to change how we go about things…’(quote from the Managing Director of CSP UK)

1. Work Closely with the employee to increase employee involvementO Employee involvement in different programs.O Weekly news letter and workshop were conducted to

make employee understand new value.O 150 workshops were held to spread the message.O Bill Boards, intranet, video programs and most important

direct one to one conversation.

QUESTION #3

2. Emphasis were made for everyone to take ownershipO Employee were made to physically signup to the

program to actually feel the sense of responsibility and hence take ownership.

O The videos were shared with managers about the children’s response to poor working conditions, where children's have refused to work in such a poor conditions. After watching the perception of children managers were driven to take more ownership.

3. Moral Boost was given to employeeO On key issues such as alcohol or drug misuse employee

were given assistance to improve and focus was on helping the employee rather than taking disciplinary action against them.

O The support and guidance by the company and periodic counseling leads to high moral and leads to high employee engagement.

O This support and guidance by the company and periodic counseling has result in retaining jobs of 50 employee.

QUESTION #3

Evaluate the effectiveness of the CHANGE programme so far

O “The Journey” Program has shown improved efficiency, increased output, lowered cost and reduced waste in increasingly competitive steel market.

O During rescission(2008-09) time business not just survived but also grew.

O Production capacity has increased by 4.5% to a run rate of 5million tones.

O The plant is on track to achieve a 20% reduction in the cost of producing steel

O A reduction in absenteeism.O Measurable improvements in levels of quality and service

for customers.

QUESTION #4

O 5,000 employees have signed up to the values and beliefs of the business

O Tighter targets for Health and Safety - new safety teams contribute towards accident-free production

O Carbon dioxide emissions have reduced by 10%. CSP UK now exceeds government standards

O Measurable improvements in the company’s impact on the local community.

QUESTION #4

CONCLUSION

OTHE NEED TO MANAGE CHANGE

OBENEFITS OF THE CHANGE

THANK YOU