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ICI Pakistan Limited
Brief of the Company:
Introduction:
ICI has consistently developed new and innovative areas of
businesses, since its formation in December 1926, by the
merger of four of the largest chemical companies in the
UK. ICI today is a collection of world class businesses,
many of them leaders in their sectors. They are strongly
led, technologically sophisticated with healthy and
sustainable long-term growth prospects.
ICI’s paints brands are some of the most successful in the
world. It’s starches and adhesives find their way into
everything from foods to building materials, and from
sports shoes to medical electronics. Its lubricants make
vehicle transmission and fridges run smoothly, and the vital
ingredients in many personal and household care products
come from ICI.
ICI brings together a family of businesses with an
impressive record of innovation and an ability to meet the
changing needs of an increasingly global marketplace. The
Company has a range of over 50,000 products, more than
38,000 employees and over 200 manufacturing facilities in
55 countries worldwide.
ICI Pakistan Limited is a 75.81% owned subsidiary of ICI
Plc, UK. It was set up as a public limited company in
Pakistan in 1952. ICI’s presence in this part of the world,
however, predates the formation of the public limited
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company and indeed, Pakistan itself. The Khewra Soda Ash
Company, a predecessor of ICI Pakistan Limited, set up a
soda ash manufacturing facility in Khewra in 1944 with a
capacity of 18,000 tones per annum. This facility was sited
next to the salt range as rock salt and limestone; two key
raw materials for manufacturing soda ash were available
here in abundance.
ICI Businesses:
Today, ICI Pakistan’s five businesses,
Polyester
Soda Ash
Paints
Chemicals
Life Sciences
These include, Polyester Staple Fibers, POY Chips, Light
and Dense Soda Ash, Sodium Bicarbonate, Paints
Decorative, Refinish, Industrial & Projects and for
manufacturers of vehicles, Specialty Chemicals,
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Polyurethane, and Adhesives and arranges manufacture on
a toll basis of Pharmaceutical and Animal
The turnover of ICI Pakistan Limited in 2001 was Rs. 12.8
billion and gross assets employed amounted to Rs. 14.98
billion. It is one of the
Largest quoted companies on the Karachi, Lahore and
Islamabad Stock Exchanges with a paid up share capital of
Rs. 1.39 billion. The company has over 1,300 permanent
employees and about the same number of people provides
services through contractual arrangements.
ICI Pakistan has a proud history of sustained investments
in the Pakistan economy in basic manufacture and as a
good corporate citizen, the company continues with its
policy to serve the community it operates in.
The general state of economy:
Pakistan economic condition is not stable now days. In fact all
the big authorities are trying to maintain it but failed to do it.
Foreign companies are hesitating to make investment in
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Pakistan .The economic condition of our country is not good
due to the heavy debt. We are holding a burden of 35 billion
dollars of IMF. That’s why our economic condition is not so
well. The outgoing fiscal year 2002-2003 has been the most
difficult and challenging year for Pakistan’s economy. The
year witnessed the full impact of the economic sanctions on
domestic economy as well as the continuation of deepening
global economic recession with consequential impact on
Pakistan’s external sector. These two factors not only
precipitated a balance of payments crisis but also damaged
the gains achieved in the preceding year, and most
importantly, interrupted the pace of implementation of
structural reforms and stabilization measures.
The imposition of economic sanctions and the suspension of
new bilateral and multilateral disbursement. Yet another
notable positive development has been the decline in inflation
to 6.1 percent during the July-August 2002-2003 as against
8.9 percent of the comparable period of last year.
The economic condition of Industry:
A chemical and paint industry can be a major force in the
development of a country. Through innovation and responsible
applications of its energies and skills it can make a positive
contribution to the industrialization, development and quality
of the life of the people itself. Government is not much
involved. Government is not giving much incentive to this
industry. The total share of paint industry is almost covered
by private sector. There are some big names like Berger, ICI
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etc., which are fulfilling the needs of the customers in the
market.
The condition of the company in the industry:
The ICI group is one of the world’s largest producers in the
specialist products and paints. ICI Pakistan, a leader in
industrial chemical and paints, manufacturing and sells
diversified ranges of products. ICI Pakistan limited
predecessors have been operating in the country well before
independence. Its first manufacturing plant for soda ash in
Khewra was established over fifty-two years ago .ICI, Pakistan
has for the first time in its history want to global
distinctions .ICI Pakistan for the year 1999, was awarded ICI
Pakistan chairman’s SHE Leader ship Award which is the
apex award in the company for performance in safety, health
and environment (SHE) management. It also wins the ICI
chief executive’s Leadership Award for SHE improvement for
1999.
Products:
Product types, varieties and brands
Kid zone is offering following products
Really cool
Dream world
Under water
Action adventure
Cricket crazy
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Space
Introduction of Kid Zone:
The launch of Dulux Kid zone in September 2002 was directed
to further consolidate the ICI dulux brand in Image as a
market leader and to an emotional bond with the consumer.
All over the higher sale, together with improved product the
margins driven by the appreciation of the rupee against the
US dollar and lower raw material prices, resulted in the
Business delivering and operating profit of rupees 297 .2
million which was higher than last year.
Dulux kid zone is a water-based emulsion with six individual
themes and special paint effects such as glow in the dark,
shimmer and florescent paints etc. For children‘s rooms
This launch was directed to further consolidate the ICI dulux
brand image as a market leader and to create an emotional
bond with the consumer, over and above the superior
Functional aspect of the dulux product range. An attractive an
innovative plastic bucket was introduced, which comes with a
double locking lid that has a unique “tear-off strip”. The
bucket not only offers better shelf appeal but also provides
long lasting rust prove packing . The business also launched
on site vendor manages inventory initiatives to further
improve working capital management.
The industrial segment delivered another year of robust
growth on the back of continued strength in car manufacture,
benefiting from the availability of lower cost financing to the
leasing industry.
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The profitability of the refinish segment, on the other hand,
suffered due to low customer traffic at car workshops, the
imposition of excise duty on imported finished paint and
intense competition, which constraint the Business ‘s ability to
increase prices
Really cool:
Create a stylish and bright look with really cool theme.
Dream world:
Create an enchanted room with dream world theme.
Dream world gives us a fabulous color of range
Fairy tale lime
Dreamy blue
Glitter paint
Princess pink
Daisy chain yellow
Luscious lilac
Under water:
Create a world under the sea with under water theme
Under water give us an interesting range of color as
Dolphin blue
Tropical water
Scuba blue
Sea bed yellow
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Exotic bay
Shimmer paint blue
Action Adventure:
Create fast moving excitement with our action adventure
theme.
Action adventure has following range of color
Sports car red
Camouflage Khaki
Water ski blue
Race track ray
Dynamite yellow
Commando green
Fluorescent paint green (optional)
Cricket crazy:
Create the thrill and passion of cricket with five colors to
choose from
It gives a fabulous range of colors
Willow Brown
Umpire Black
Pitch green
White Glow
Cricket Ball red
Space
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Create the wonder pf the galaxies beyond with space theme.
There are four colors and two themed stencils to choose from.
SWOT Analysis:
SWOT is short form of strengths, weaknesses, opportunities
and threats.
Strengths:
ICI is leading manufacturer of paints and industrial
chemical all over the world and in Pakistan as well.
The product of ICI are know best quality product in
paint industry.
The services ICI offers are the best quality like free
colors advisory service
In Pakistan the customer of ICI product show a
very healthy ratio in spite of high prices
The staff is highly trained.
ICI is also available on internet customers can find
out what they want, while sitting on their offices or
homes
ICI made this segment specially for Kids and they
position it as a fun loving product
Product Wise:
Kid zone is offering a number of themed paints
stickers, stencils and effects for use in kid’s rooms.
There are also innovative special effects paints
A good quality paints.
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And free of lead and mercury.
Available in a beautiful and attractive bucket
Customer service is also available by ICI Company
and they charge 2000 per room.
Kid zone paints are available in a beautiful bucket,
which is attractive as well as useful after the use.
We can use it for many purposes.
The paints of kid zone are very soft
The paints of kid zone are washable
The dealer’s chosen are one of the best dealers
available and people trust on them.
They have strong distribution channel in major
areas of Pakistan. Islamabad, Lahore and Karachi
are the main areas of distribution called as north
south and center.
Weaknesses:
The prices of the ICI products are too much higher
than its competitors.
This thing may not go in its favor and customer
may switch over to another brand.
The image of the brands of ICI is considered as the
very high class and it may be considered as a
barrier to convince of the customer from middle
class.
They are not promoting their kid zone segment
through electronic media
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Mostly people are unaware of this product due to
its promotional weaknesses
Product Wise:
A Prices a little bit high
Availability is limited
Limited Themes
Opportunities:
ICI has got a lot of resources and skills to expand
their target market.
They are planning to introduce new brands in the
market in the coming years with improved quality
ICI can grow rapidly in the area of wood paints
because at present a very small number of
manufacturers are working on this area.
Threats
The competitors of ICI are increasing day by
day. Although ICI captures a main portion of
market share but its main competitors like
Berger, Silver Sand and Masters Paints are
offering a competitive environment in the
market.
Government polices can be one of the hurdles in
achieving the high market share and high
growth rate
The political instability is always danger in the
growth and productivity of the company like ICI
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The economic crisis in our country may also
affect the performance of the company.
Uncontrollable environment
Social and cultural factors;
Population is positively affecting ICI as it is
creating more and more customers for ICI
products. It will increase the sales of brands and
products resulting in more revenues
Education level is increasing day by day which is a
positive sign for more sales of ICI and creating
more and more customers with right sense to buy
the products
Through the change in the ideas, more women are
getting into the working field which is a good sign
of ICI because females can make their own choices
to decorate their places from millions of shades,
which ICI is offering.
Organizational Culture:
It is a system of shared meaning within an organization that
determines, in large degree how employees act.
Types of cultures:
1. Strong cultures
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Strong cultures are those cultures in which the key values
are deeply held and widely shared. These types of cultures
have a greater influence on employees than do weak
cultures
2. Weak Cultures
In weak cultures the values and beliefs are not deeply shared
and they don’t t have a much influence on there employees.
The organizational performance is not high in these types of
organizations.
Strong culture of ICI Dulux:
ICI Dulux has very strong culture, because the employees
they’re held their values deeply and widely shares that value
with others. ICI have a strong back ground .It is a company
which is working in Pakistan since 1952, it has its own
identity and specific culture. It’s culture is very strong, its
employees are trained in a way that they can cooperate with
each other and share their values and knowledge.
Dimensions of organizational cultures
Organization cultures have seven dimensions
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Innovation and risk taking
Attention to detail
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Dimensions of ICI Dulux culture:
It’s a degree to which the faculty is expected to exhibit
precision, analysis and attention to details.
ICI Dulux is the one of the biggest name in paint industry of
Pakistan.
ICI name is a symbol of reliability and quality. So when ever
the top managers of ICI have to take the decisions then they
prefer to know all its details. They want to know how that
specific decision will affect the organization. When ever they
finalize new project they first planned that who is going to
handle it, how much capital is required, how many labors are
sufficient and in which time frame it should be completed. All
these activities increase their efficiency and productivity.
Organization Structure:
In organization structure jobs are divided among the
employees. In it people worked in-groups and coordinate with
each other.
Dulux organizational structure
ICI is also an organization, which has large number of
employees. Here jobs tasks are also divided grouped and
coordinated. For example ICI Dulux has marketing
department, finance department, RND department etc .
Chain of command
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It is the continuous line of authority that extends from upper
organization levels to the lowest levels and clarifies who
reports to whom.
In ICI chain of command start from broad of directors
Chairman
Chief Executive
Director
Non -executive director
After Board of directors there are sub committees
Audit sub committee
Senior Remuneration sub committee
After sub committees Chief Financial Officer, company
secretary and then Executive Management team comes.
Authority
The rights inherent in a managerial position to tell
people what to do and to expect them to do it.
In ICI every segment have it own head ,and he has the
authority to assign different duties to different employees.
Responsibility
The obligation to perform any assigned duties
In ICI Dulux everyone is expected to perform his duties well
on matters, whether he is any student or any resource
person .Everyone is responsible for his own deeds
Unity of command
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A person should report to only one manger
In ICI there is no concept of unity of command. There are
many people in authority. A chairman never handle the minor
matters of the institute, he only deals the major issues.
Span of control
Number of employees that a manger can efficiently and
effectively manage
Span of control is very efficiently practiced in ICI dulux. It is
important to determine the span of control because its affect
the performance of an organization. In ICI dulux span of
control is varies from manager to manager .
Formalization
Degree to which jobs within the organization are
standardized
In ICI Dulux jobs are properly standardized every one knows
what is his responsibility and what he has to do. In ICI the
jobs are highly formalized employees doing job has a
minimum amount of discretion over what is to be done ,when
is to be done and how he is going to do it .ICI has a high
formalization there are explicit job description , numerous
rules and clearly defined procedures covering work
process .Where formalization is low job behavior are relatively
unstructured and employees have great deal of freedom to do
work in their proper way.
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ICI Is Organic organization
Organic organization is the organization which has highly
adaptive and flexible structure and employees are highly
trained and empowered to handle diverse job activities.
ICI Dulux is organic organization it likes to change and adopt
new strategies .ICI is the company which wants change ,their
employees are always trying to do something good and
different .It is an organic organization from every aspect
Strategy and structure
Structure and strategy of an organization should be related to
each other. Structure of an organization should facilitate the
strategy of an organization.
Strategy and structure of ICI Dulux
ICI Dulux has different department in which jobs are assign
to different people
Basically strategy focuses on three things
Innovation
Cost minimization
Imitation
Innovation
Need the flexibility and the free flow of information of
the organic structure
As ICI Dulux is the organic organization so It also wants
innovation and changes .
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Like ICI Dulux has introduced Kids Zone for children, so in
this way ICI is the first company in Pakistan which done
something unique for children .So this segment become
Competitive advantage for ICI Dulux because no other
company have such a segment .
Cost Minimization
Each and every firm wants to minimize it cost because that
this is t one of the effective way to increase the profit. ICI
also tries to reduce its cost ,its also not want to decrease
quality of its product.
Decentralization
The degree to which decisions are made by lower level
employees.
ICI Dulux has a trend of decentralization in which the lowest
level is providing more input or making decisions .In order to
make the Institute more flexible and responsive there’s been
distinct trend towards decentralization which has been deeply
appreciated.
Motivation
“The willingness to exert high levels of effort to reach
organizational goals, conditioned by the effort’s ability
to satisfy some individual need”
Motivation is very necessary element in the organization. So
its too necessary element in the organization. So its too
important for any organization, how to motivate its employees
to get maximum output from them.
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Motivation is something which is come after the fulfillment of
the basic needs . An organization Can motivates its employees
after when it fulfills their basic needs like , health facilities ,
proper salary according to their work .
Economic Factors
As we are living in a developing country like Pakistan
here per capita income is very low so people cannot
afford products of high prices as paint is some sort of
luxury so most of the people can not afford it.
Due to political and economical instability, the country is
suffering in inflationary condition. This can affect the
sales of the products.
Competitive Factors
There are major competitors of ICI like Berger, and
Master paints, but the company is having edge
through its strong brands and products. At present
ICI is not suffering in any kind of swear
competition from its competitors
The changes by the competitors in Pakistan can
effect ICI if they provide options or colors more
than ICI is offering or better services than ICI
Now the launch of Kid zone is also a positive point
for the ICI because no other company in Pakistan is
offering paints specially for KID.
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Legal and political Factors
ICI is adopting the concept of all consumerism since its
establishment in Pakistan and Pakistan and that is the
only reason that it is standing on the top of the market.
They know how to care and capture the customers and
how to retain them.
Every government tries to provide public the best >ICI
is getting benefits from this act, as it is more practice of
consumerism than its competitors.
In case of consumers protection legislation, it will have
no negative effect as ICI is environment friendly
organization and cares about the health of its customers.
Technological Factors
In paint industry, technology has been brought by ICI so
far. This is an extra edge of ICI other that best product
offering. Like kids zone it is a very interesting segment
of ICI for children, no other company have such a
segment.
The global technology can be a major threat for the
company like ICI if any large company brings new
technology than ICI in Pakistan.
Key companies:
Berger paint Pakistan limited
Berger paint Pakistan limited is offering its brand and
products in the paint industry of Pakistan since last 52 years.
The main brand, which is popular in customer in Berger
Robbialac. Its head office is in Karachi, which deals in all kind
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of company’s activities. They have divided their business into
four divisions
o Decorative paints
o Industrial paints
o Automobile paints
o Protective paints
Master paint Industries (PVT.LIMITED)
Master Paint Industries (PVT) is now days considered as one
of the leading paint manufacturing companies in Pakistan. It
came into existence in 1975. Its Head office is in Lahore. The
most foremost objective of the company was to introduce
modern paint technology in Pakistan. Soon after its existence,
it acquired a very sound position by attaining good market
share and became one of the leading paint manufacturing
company in Pakistan in terms of quality. Master paint
industries is offering one brand master paints . In this they
are offering two options
o Master super gloss Enamel
o Master super Emulsion
o
Buxly paints Limited
Buxly paints limited develops, manufactures and markets
quality paints, pigments, vanishes and other related products
in Pakistan. During the second quarter of 2000, sales at buxly
paint limited totaled 80.66 million Pakistan rupees.
Future outlook of the company
Overall market realities indicate challenging for our company.
In particular, the strength of the Pakistani rupees against the
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US dollar and environment of reducing import tariffs and
currency stability will continue to constraint profitability for
import substitution businesses such as ICI Pakistan. However
with the major expansion in polestar in place. and the success
full completion of Soda Ash product , company is strongly
positioned to face these challenging conditions and to deliver
improved profitability in 2004.
In the paints business, market activity over the near term
remains uncertain given the emerging war threat in the
Middle East.
Additionally, margins are likely to come under pressure in
view of rising titanium, solvent another raw material prices.
However, the Business will continue its strategy of driving
market share and managing its cost base to ensure profitable
growth
Sale volumes and trends:
Despite an uncertain political and economic climate in the
country in 2002, the business established new production and
sales records: production and sales volume at 15,789 K liters
and 15,612 k liters were both 9% higher than 2001
The market share of ICI
The market share of ICI in paints is 50% of the market.
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Preference For specific and Benefits
Preference of the customer is quality product. They want best
for their children and mostly people are those who are not
price conscious.
Relationship of company with dealers:
ICI has very strong network of dealership all over the Pakistan
.The number of dealer is about 3000.In the case of Kid zone,
dealers are very happy with this product because they make
good money out of it, as the product is selling like hot cakes
and elite class also buying it happily for their children .The
major reason behind kid zone’s high sales is that they don’t
have nay competitors
Outcome Orientation: -
This is a stage where the organizers usually the
management people focus on the results they are
getting. They concentrate on out comes/results rather
then how they are being achieved.
Each and every organization whether it is non-profit
organization or profit organization always takes care of its
outcome. Every organization aims to get maximum output
through minimum input. ICI also wants to give maximum
output to their customer. ICI wants to achieve all its goals,
which it has made during the start of the year .ICI trains is
workers or employees in a way that they can handle all kind of
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worst and uncertain situation and their efficiency can never
affect.
People Orientation: -
This is degree to which management decisions take into
the account the effect on people in the organization
Employees and workers are working in an organization are
very important for that organization. They are the assets of an
organization, so organization should take care of their needs
and wants. As far as ICI is concern it is an international
organization. It is working in Pakistan more than 50 years it
takes all the decisions after considering its affect on the
employees working in it. It gives a lot of facilities to its
employees.
Team Orientation:
Degree to which work is organized around teams rather
than individuals
Now a days team orientation is preferred by almost every
organization because its merge the qualities of many people
at one plate form .In ICI most of the work is done in teams.
Big projects are assigned to different teams. So in ICI almost
70% of the work is done in teams.
Aggressiveness: -
Degree to which employees are aggressive and
competitive rather than cooperative
Employees of ICI are not much aggressive they believe to
work with cooperation. They work in a friendly
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environment, they believe on sharing their knowledge and
value .Big decisions ICI are take place on the basis of
betterment of that organization, it not follows other
organizations blindly.
Stability: -
Degree to which organizational decisions and actions
emphasize maintaining the status quo
ICI Dulux have very strong roots in Pakistan paint industry .It
is working in Pakistan for more than 50 years so now it is in
very stable position. Now it can handle uncertain condition
very easily.
Innovation & Risk Taking:
Degree to which employees are encouraged to be
innovative and take risks
ICI is the company who wants to take risk and like
innovation .Its big example is ICI Kids Zone which is
launched by the ICI Dulux in 2002.This is a segment
Specially made for the children .It is the first paint
company in Pakistan which introduces some special
segment for children .This was a very risking taking step
which ICI Dulux stood in 2002 but now Kids Zone become
it competitive advantage
Future outlook of the company
Overall market realities indicate challenging for our company.
In particular, the strength of the Pakistani rupees against the
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US dollar and environment of reducing import tariffs and
currency stability will continue to constraint profitability for
import substitution businesses such as ICI Pakistan. However
with the major expansion in polestar in place. and the success
full completion of Soda Ash product , company is strongly
positioned to face these challenging conditions and to deliver
improved profitability in 2004.
In the paints business, market activity over the near term
remains uncertain given the emerging war threat in the
Middle East.
Additionally, margins are likely to come under pressure in
view of rising titanium, solvent another raw material prices.
However, the Business will continue its strategy of driving
market share and managing its cost base to ensure profitable
growth
Change Management
Three Basic Definitions
In thinking about what is meant by “change management,” at
least three basic definitions come to mind:
1. The task of managing change.
2. An area of professional practice.
3. A body of knowledge.
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The Task of Managing Change
The first and most obvious definition of “change management”
is that the term refers to the task of managing change. The
obvious is not necessarily unambiguous. Managing change is
itself a term that has at least two meanings.
One meaning of “managing change” refers to the making of
changes in a planned and managed or systematic fashion. The
aim is to more effectively implement new methods and
systems in an ongoing organization. The changes to be
managed lie within and are controlled by the organization.
Perhaps the most familiar instance of this kind of change is
the change or version control aspect of information system
development projects. However, these internal changes might
have been triggered by events originating outside the
organization, in what is usually termed “the environment.”
Hence, the second meaning of managing change, namely, the
response to changes over which the organization exercises
little or no control (e.g., legislation, social and political
upheaval, the actions of competitors, shifting economic tides
and currents, and so on). Researchers and practitioners alike
typically distinguish between a knee-jerk or reactive response
and an anticipative or proactive response.
An Area of Professional Practice
The second definition of change management is "an area of
professional practice."
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There are dozens, if not hundreds, of independent consultants
who will quickly and proudly proclaim that they are engaged
in planned change, that they are change agents, that they
manage change for their clients, and that their practices are
change management practices. There are numerous small
consulting firms whose principals would make these same
statements about their firms. And, of course, most of the
major management consulting firms have a change
management practice area.
Some of these change management experts claim to help
clients manage the changes they face – the changes
happening to them. Others claim to help clients make
changes. Still others offer to help by taking on the task of
managing changes that must be made. In almost all cases, the
process of change is treated separately from the specifics of
the situation. It is expertise in this task of managing the
general process of change that is laid claim to by professional
change agents.
A Body of Knowledge
Stemming from the view of change management as an area of
professional practice there arises yet a third definition of
change management: the content or subject matter of change
management. This consists chiefly of the models, methods and
techniques, tools, skills and other forms of knowledge that go
into making up any practice.
The content or subject matter of change management is
drawn from psychology, sociology, business administration,
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economics, industrial engineering, systems engineering and
the study of human and organizational behavior. For many
practitioners, these component bodies of knowledge are
linked and integrated by a set of concepts and principles
known as General Systems Theory (GST). It is not clear
whether this area of professional practice should be termed a
profession, a discipline, an art, a set of techniques or a
technology. For now, suffice it to say that there is a large,
reasonably cohesive albeit somewhat eclectic body of
knowledge underlying the practice and on which most
practitioners would agree — even if their application of it does
exhibit a high degree of variance.
To recapitulate, there are at least three basic definitions of
change management:
1. The task of managing change (from a reactive or a
proactive posture)
2. An area of professional practice (with considerable
variation in competency and skill levels among
practitioners)
3. A body of knowledge (consisting of models, methods,
techniques, and other tools)
What's "Organizational Change?"
Typically, the concept of organizational change is in regard to
organization-wide change, as opposed to smaller changes
such as adding a new person, modifying a program, etc.
Examples of organization-wide change might include a change
in mission, restructuring operations (e.g., restructuring to
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self-managed teams, layoffs, etc.), new technologies, mergers,
major collaborations, "rightsizing", new programs such as
Total Quality Management, re-engineering, etc. Some experts
refer to organizational transformation. Often this term
designates a fundamental and radical reorientation in the way
the organization operates.
How Organization-Wide Change Is Best Carried Out?
Successful change must involve top management, including
the board and chief executive. Usually there's a champion who
initially instigates the change by being visionary, persuasive
and consistent. A change agent role is usually responsible to
translate the vision to a realistic plan and carry out the plan.
Change is usually best carried out as a team-wide effort.
Communications about the change should be frequent and
with all organization members. To sustain change, the
structures of the organization itself should be modified,
including strategic plans, policies and procedures. This
change in the structures of the organization typically involves
an unfreezing, change and re-freezing process.
The best approached to address resistances is through
increased and sustained communications and education. For
example, the leader should meet with all managers and staff
to explain reasons for the change, how it generally will be
carried out and where others can go for additional
information. A plan should be developed and communicated.
Plans do change. That's fine, but communicate that the plan
has changed and why. Forums should be held for organization
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members to express their ideas for the plan. They should be
able to express their concerns and frustrations as well.
Some General Guidelines to Organization-Wide Change
includes overviews of major methods and movements
associated with organizational change.
General guidelines listed above; there are a few other basic
guidelines to keep in mind.
1. Consider using a consultant. Ensure the consultant is highly
experienced in organization-wide change. Ask to see
references and check the references.
2. Widely communicate the potential need for change.
Communicate what you're doing about it. Communicate what
was done and how it worked out.
3. Get as much feedback as practical from employees,
including what they think are the problems and what should
be done to resolve them. If possible, work with a team of
employees to manage the change.
4. Don't get wrapped up in doing change for the sake of
change. Know why you're making the change. What goal(s) do
you hope to accomplish?
6. Plan the change. How do you plan to reach the goals, what
will you need to reach the goals, how long might it take and
how will you know when you've reached your goals or not?
Focus on the coordination of the departments/programs in
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your organization, not on each part by itself. Have someone in
charge of the plan.
7. End up having every employee ultimately reporting to one
person, if possible, and they should know who that person is.
Job descriptions are often complained about, but they are
useful in specifying who reports to whom.
8. Delegate decisions to employees as much as possible. This
includes granting them the authority and responsibility to get
the job done. As much as possible, let them decide how to do
the project.
9. The process won't be an "aha!" It will take longer than you
think.
10. Keep perspective. Keep focused on meeting the needs of
your customer or clients.
11. Take care of yourself first. Organization-wide change can
be highly stressful.
12. Don't seek to control change, but rather to expect it,
understand it and manage it.
13. Include closure in the plan. Acknowledge and celebrate
your accomplishments.
14. Read some resources about organizational change,
including new forms and structures
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Content and Process
Organizations are highly specialized systems and there are
many different schemes for grouping and classifying them.
Some are said to be in the retail business, others are in
manufacturing, and still others confine their activities to
distribution. Some are profit-oriented and some are not for
profit. Some are in the public sector and some are in the
private sector. Some are members of the financial services
industry, which encompasses banking, insurance, and
brokerage houses. Others belong to the automobile industry,
where they can be classified as original equipment
manufacturers (OEM) or after-market providers. Some belong
to the health care industry, as providers, as insureds, or as
insurers. Many are regulated, some are not. Some face stiff
competition, some do not. Some are foreign-owned and some
are foreign-based. Some are corporations, some are
partnerships, and some are sole proprietorships. Some are
publicly held and some are privately held. Some have been
around a long time and some are newcomers. Some have been
built up over the years while others have been pieced together
through mergers and acquisitions. No two are exactly alike.
The preceding paragraph points out that the problems found
in organizations, especially the change problems, have both a
content and a process dimension. It is one thing, for instance,
to introduce a new claims processing system in a functionally
organized health insurer. It is quite another to introduce a
similar system in a health insurer that is organized along
product lines and market segments. It is yet a different thing
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altogether to introduce a system of equal size and significance
in an educational establishment that relies on a matrix
structure. The languages spoken differ. The values differ. The
cultures differ. And, at a detailed level, the problems differ.
However, the overall processes of change and change
management remain pretty much the same, and it is this
fundamental similarity of the change processes across
organizations, industries, and structures that makes change
management a task, a process, and an area of professional
practice.
The Change Process:
The Change Process as “Unfreezing, Changing and
Refreezing”
The process of change has been characterized as having three
basic stages: unfreezing, changing, and re-freezing. This view
draws heavily on Kurt Lewin’s adoption of the systems
concept of homeostasis or dynamic stability.
Unfreezing
What is useful about this framework is that it gives rise to
thinking about a staged approach to changing things. Looking
before you leap is usually sound practice.
Change
What is not useful about this framework is that it does not
allow for change efforts that begin with the organization in
extremis (i.e., already “unfrozen”), nor does it allow for
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organizations faced with the prospect of having to “hang
loose” for extended periods of time (i.e., staying “unfrozen”).
Refreezing
In other words, the beginning and ending point of the
unfreeze-change-refreeze model is stability — which, for some
people and some organizations, is a luxury. For others,
internal stability spells disaster. A tortoise on the move can
overtake even the fastest hare if that hare stands still.
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Managed Change TM begins with Identifying the Change.
Assist the organization to articulate the business case for
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change in a manner that everyone will understand, fleshing
out the desired outcome of the change project, and
successfully accomplishing the significant events along the
way.
The next two steps in managing change are Planning and
Preparing the Change. Give sponsors, change agents and
target the understanding, skills, and assessment tools they
need to effectively implement change projects on time and
within budget. Focus on partnering with change agents and
change sponsors to impart the knowledge and garner the
support needed for success. LaMarsh and Associates, Inc.
provides change agents with the training and expertise they
need to engineer a successful change, and enables change
sponsors to learn time-efficient techniques to quickly
accomplish project goals. Potential resistance sources are
gathered and assessed in this step.
The work continues with Implementing the Change.
Developing a communication system ensures that each person
involved in the change understands each element from his or
her point of view. The learning system is designed to provide
the right training for the right people at the right time.
Rewards and reinforcements are set up to encourage behavior
toward the desired state and ensure alignment of
performance measurements with the desired state of the
change project.
Sustain the Change means that the close of the change
initiative includes identified metrics, assigned ownership, and
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a procedure for monitoring and addressing slippage back to
the 'old' way.
ADKAR model for change management helps employees
understand where they are in the change process. It can
identify gaps in your change management process and to
provide effective coaching for your employees. The ADKAR
model can be used to
diagnose employee resistance to change
help employees transition through the change
process
create a successful action plan for personal and
professional advancement during change
develop a change management plan for your
employees
The ADKAR model has the ability to identify why changes are
not working and help you take the necessary steps to make
the change successful. Break down the change into parts,
understand where the change is failing and address that
impact point.
Below, change happens on two dimensions: the business
dimension (vertical axis) and the people dimension (horizontal
axis). Successful change happens when both dimensions of
change occur simultaneously.
Business dimension of change
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The business dimension of change includes the typical project
elements.
Business need or opportunity is identified.
Project is defined (scope and objectives).
Business solution is designed (new processes,
systems and organizational structure).
New processes and systems are developed.
Solution is implemented into the organization.
People dimension of change
Effective management of the people dimension of change
requires managing five key phases that form the basis of the
ADKAR model:
Awareness of the need to change
Desire to participate and support the change
Knowledge of how to change (and what the change
looks like)
Ability to implement the change on a day-to-day
basis
Reinforcement to keep the change in place
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Understanding Stage
The Management Improvement Model follows the philosophy
that you can't change what you don't understand. At this
Stage, an understanding of the current process is gained by
doing a thorough analysis. A characterization of the current
situation relative to a proposed improvement is proposed,
goals are set, and some initial planning is done.
Assessment Stage
The Assessment Stage begins by asking questions about the
goals to further describe the proposed change. A review of
similar organizations is done to see if the proposed change
has already been implemented elsewhere, and what lessons
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were learned. Planning is completed and modifications to
implement the proposed change are made. Data is collected
on all experiences.
Implementation Stage
The Implementation Stage installs the new process and
monitors the effects relative to the old method. Necessary
training and adjustments are made. Data continues to be
collected on all experiences. If the new process proves to be
an improvement over the old one, a new baseline is
established for further changes. If the new method is
unsuccessful, the old method is reinstalled and this
experience is documented for future efforts
Change management
Here are the rules of change management. Managing
organizational change will be more successful if you apply
these simple principles. Change management entails
thoughtful planning and sensitive implementation, and above
all, consultation with, and involvement of, the people affected
by the changes. If you force change on people normally
problems arise. Change must be realistic, achievable and
measurable. These aspects are especially relevant to
managing personal change. Before starting organizational
change, ask yourself: What do we want to achieve with this
change, why, and how will we know that the change has been
achieved? Who is affected by this change, and how will they
react to it? How much of this change can we achieve
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ourselves, and what parts of the change do we need help
with?
Check that people affected by the change agree with, or at
least understand, the need for change, and have a chance to
decide how the change will be managed, and to be involved in
the planning and implementation of the change. Use face-to-
face communications to handle sensitive aspects of
organizational change management. Encourage your
managers to communicate face-to-face with their people too if
they are helping you manage an organizational change. Email
and written notices are extremely weak at conveying and
developing understanding.
If you think that you need to make a change quickly, probe the
reasons - is the urgency real? Will the effects of agreeing a
more sensible time-frame really be more disastrous than
presiding over a disastrous change? Quick change prevents
proper consultation and involvement, which leads to
difficulties that take time to resolve.
For complex changes, refer to the process of project
management, and ensure that you augment this with
consultative communications to agree and gain support for
the reasons for the change. Involving and informing people
also creates opportunities for others to participate in planning
and implementing the changes, which lightens your burden,
spreads the organizational load, and creates a sense of
ownership and familiarity among the people affected.
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For organizational change that entails new actions, objectives
and processes for a group or team of people, use workshops to
achieve understanding, involvement, plans, measurable aims,
actions and commitment. Encourage your management team
to use workshops with their people too.
Responsibility for managing change
The employee does not have a responsibility to manage
change - the employee's responsibility is no other than to do
their best, which is different for every person and depends on
a wide variety of factors (health, maturity, stability,
experience, personality, motivation, etc). Responsibility for
managing change is with management and executives of the
organization - they must manage the change in a way that
employees can cope with it. The manager has a responsibility
to facilitate and enable change, and all that is implied within
that statement, especially to understand the situation from an
objective standpoint (to 'step back', and be non-judgmental),
and then to help people understand reasons, aims, and ways
of responding positively according to employees' own
situations and capabilities. Increasingly the manager's role is
to interpret, communicate and enable - not to instruct and
impose, which nobody really responds to well.
Change must involve the people - change must not be
imposed upon the people
Be wary of expressions like 'mindset change', and 'changing
people's mindsets' or 'changing attitudes', because this
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language often indicates a tendency towards imposed or
enforced change and it implies strongly that the organization
believes that its people currently have the 'wrong' mindset,
which is never, ever, the case. If people are not approaching
their tasks or the organization effectively, then the
organization has the wrong mindset, not the people. Change
such as new structures, policies, targets, acquisitions,
disposals, re-locations, etc., all create new systems and
environments, which need to be explained to people as early
as possible, so that people's involvement in validating and
refining the changes themselves can be obtained.
Whenever an organization imposes new things on people
there will be difficulties. Participation, involvement and open,
early, full communication are the important factors.
Workshops are very useful processes to develop collective
understanding, approaches, policies, methods, systems, ideas,
etc. See the section on workshops on the website.
Staff surveys are a helpful way to repair damage and mistrust
among staff - provided you allow people to complete them
anonymously, and provided you publish and act on the
findings.
Management training, empathy and facilitative capability are
priority areas - managers are crucial to the change process -
they must enable and facilitate, not merely convey and
implement policy from above, which does not work.
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You cannot impose change - people and teams need to be
empowered to find their own solutions and responses, with
facilitation and support from managers, and tolerance and
compassion from the leaders and executives. Management
and leadership style and behavior is more important than
clever process and policy. Employees need to be able to trust
the organization.
The leader must agree and work with these ideas, or change
is likely to be very painful, and the best people will be lost in
the process.
Change Management:
It is process of effecting an alteration in one or more areas of
a business in a systematic to adopt it to external and internal
changes.
Whenever a changes in organization takes place it is always
from top to bottom. So change is top to bottom but some times
it could be bottom up. But it only depend on the condition.
We have selected “Human Resource Department” for bringing
the change. Trough over deep observation we come to the
point that the major problem in ICI is regarding motivation.
Followings are the changes which we want to bring.
Proper Rewards should be given:
Current Situation:
So for ICI is not giving any kind of bonuses and proper
rewards to its employees but according to expectancy theory
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employees should be given rewards according to their
expectations.
Suggestion:
So we suggest that they should provide sufficient monetary
benefits along with other benefits so that employees can easily
meet their needs.
Job Rotation:
Current situation:
So for there is no system of job rotation prevailing in the ICI.
Every employee has to work on the designation he/she was
appointed on. Due to this the employees have to do same work
and some times they get bored, also it may reduce their
efficiency.
Suggestion:
Our suggestion is that they should rotate the job of the
employees with the passage of time due to which the
employees can gain more skills and in result they will perform
efficiently.
Recruitment:
Current Situation:
Generally when they hire employees they just take interviews
and appoint them without analyzing that which jobs is fit for
that person. They don’t care about his/her skills and interests.
Suggestion:
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This is also not a good sign. This may lead to lack of efficiency
and effectiveness and in other ways to the lack of productivity.
So at the recruitment time they should place the employee
according to his/her skills not blindly. For this must follow Job
Fit Theory. In other words they should hire right person at the
right place.
Feed Back:
Current Situation:
In ICI, so for there is no proper method for giving feed back.
Feed back is very much important and it is very important
part of the culture and it will motivate employees a lot. And
this will ends in increase in employee productivity because
they are being involved.
Suggestion:
There should be some suggestion/complaint box provided for
the employees. There should be separate suggestion boxes for
the department head and the CEO as if the department head
don’t listen to their suggestions/complaints they can directly
contact to the CEO.
Bibliography
We have taken information from:
Assistant of Human Resource Manager.
www.ici.com.pk
Annual report of ICI Pakistan limited.
Kid Zone shade card & decorating Guide.
Change Management Sites on Net
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