Strategic Change - Evolution

• 1. Strategies for ChangeEvolutionEncourages a continuous learning environmentThe evolutionary model emphasises small incremental changes.It is a learning organisation with the capability of creating something new in a step bystep process.Change in general can cause confusion and can be resisted if the culture of theorganisation is familiar with incremental change only.The workers are not given enough opportunity to apply their learningall but incremental change is resisted.(Pettigrew,1985)

2. What is Kaizen?The Key to Japans Competitive Success published in 1986 that introduced Kaizen to the western corporateworld, Masaaki Imai defined it as: "a means of continuing improvement in personal life, home life, social life, andworking life. At the workplace, Kaizen means continuing improvement involving everyonemanagers andworkers alike. The Kaizen business strategy involves everyone in an organization working together to makeimprovements without large capital investments."Masaaki Imai(1986) 3. The Evolutionary Change Process The firm is the starting point Evolution is a constant stream process of gradual changes It is a metamorphosis of long-term organisational learning Learning is a slow process which can be new skills, processes,experiment, test and discuss Organisational learning power is dispersed Management recognise that the firm has to continuously learnand adapt Management do not have the absolute power to imposedramatic revolutionary change but must continue with theevolutionary change process 4. KaizenKaizen is a system that involves every employee - fromupper management to the cleaning crew. Everyone isencouraged to come up with small improvementsuggestions on a regular basis. This is not a once amonth or once a year activity. It is continuous. Japanesecompanies, such as Toyota and Canon, a total of 60 to 70suggestions per employee per year are written down,shared and implemented. 5. Perspectives On Strategic Change Evolutionary change is necessary to ensure continuityin the renewal process Gradual mutation and selection Continuous renewal is a marathon and not won bygood sprinters Continuous renewal in a long-term approach Requires commitment from motivated employeeswilling to learn and adapt to gradual change 6. What are the Kaizen Principles Human resources are a companys mostimportant asset Processes must evolve by gradual improvementrather than by radical change Improvement must be based on a quantitativeevaluation of the performance of differentprocesses. It is aimed at management 7. Kaizen 5Ss The Five Ss relate to the visual workplace Sort Clean up and organise and throw away itemsnot required Set in order: Organise, identify and arrangeeverything in a work area Shine- Regular cleaning and maintenance Standardise- Make it easy to maintain - simplify andstandardise Sustain -Maintain what has been accomplished 8. Canon Technology Office Products Market Share in 2011Source: Gartner Dataquest (February 2012)Technological LeadershipCanons overwhelming success is attributed to superior technology, the result of an unprecedented commitment to research and development. In 2011, Canon devoted approximately 8.7% of its Net Sales to R&DThis spending exceeds many of their key competitors and ensures that research and development efforts continue to grow.Innovation has been a key ingredient in Canons success.Canon is one of the most prolific inventors of consumer and professional imaging solutions having in excess of 40,000 U.S. patentsin its 70-year history. In 2011, Canon ranked third in the country for receiving patents in the private sector, with 2,818 patents granted according to theU.S. Patent and Trademark Office. 9. Management & Kaizen Kaizen Event where managers and employees work together to fine-tune andrevise the current standards. Once a more efficient and superior system isachieved, it is then standardized and integrated into current policies, rules, andStandard Operating Procedures (SOPs). When you implement Kaizen into the workplace, you should aspire to makechanges to your current operating standards by breaking down each process indetail, monitoring the results, and then making adjustments accordingly (If it aintbroke, Do fix it). Your management team should ensure that the current SOPs are being followed.Management must go and see operations, or MBWA (management by walkingaround), in order to achieve efficient operations and take corrective actions whenrequired. That is the only way they can fully understand their current businessclimate and make educated adjustments. 10. Advantages of KaizenThese continual small improvements add up to major benefits. They result in improved productivity, improved quality, better safety, faster delivery, lower costs, and greater customer satisfaction. On top of these benefits to the company, employees working in Kaizen-based companies generally find work to be easier and more enjoyableresulting in higher employee moral and job satisfaction, and lower turn-over.With every employee looking for ways to make improvements, you can expect results such as: Kaizen Reduces Waste in areas such as inventory, waiting times, transportation, workermotion, employee skills, over production, excess quality and in processes. Kaizen Improves space utilization, product quality, use of capital, communications, productioncapacity and employee retention. Kaizen Provides immediate results. Instead of focusing on large, capital intensiveimprovements, Kaizen focuses on creative investments that continually solve large numbers ofsmall problems. Large, capital projects and major changes will still be needed, and Kaizen willalso improve the capital projects process, but the real power of Kaizen is in the on-goingprocess of continually making small improvements that improve processes and reduce waste. 11. Kaizen(Continuous Improvement) 12. KaizenPatterns Human Effort Material Machine Scientific Method Based 13. Imai also points out that improvements must be standardized 14. Kanban Video Clip 15. Kaizen managing is related to cross-functional management and policydeployment. Cross-functional management emphasizes breaking inter-departmental communication barriers.(Imai,1986) 16. Kaizen Culture Culture means constant efforts to improveindustrial relations Training workers and developing leaders amongthe workers Bringing discipline to the workshop