Managing Organizational Change to Reduce Costs
Trexin helped a market leader with organizational change management to improve operational performance.
A leading manufacturer of testing and sensing equipment wanted to reduce its internal cost structure by 30% within 30 months while simultaneously revitalizing and strengthening its internal operations, making it less project-oriented and more process-oriented. Recognizing that a long-term organizational commitment would be required to effect lasting change in its business processes and corporate culture, the executive leadership team asked Trexin to provide organizational change management (OCM) services by developing and subsequently executing a change management plan.
Because Trexin was also asked to help develop and execute the broader strategic action plan and roadmap, our approach to change management was to integrate OCM considerations upfront, directly into the strategic plan itself. Leveraging several of our strategy and change management methodologies, Trexin:
- Led an aligned definition of facts, root issues, and prioritizations.
- Created a roadmap describing short‐ and long‐term goals with specific business process, technology, and organizational components, expressed within a 3‐year strategic planning horizon and 2‐year roadmap.
- Included a high‐level plan describing processes, projects, and allocation of resources, including capital and people, with an assessment of alternative paths and risks (e.g., vision, ability to execute, economics, etc.).
- Drove a change management plan reflective of the targeted business culture by creating a positive climate for change within the company.
Trexin’s change management methodology, which formed the basis for our change management plan, is founded upon three key components: 1) intellectual understanding, 2) emotional acceptance, and 3) practice experience.
The change management plan, which was successfully developed and executed, integrated directly into the broader strategic plan and roadmap. Because the operational changes were so heavily focused on process and organizational structure, the change management plan focused on vertical and horizontal alignment, including the following aspects:
Vertical Alignment / Change Management Areas:
- Goals (organizational objectives, process measures, personal incentives)
- Actions (outcomes)
- Accountability (authority, empowerment, action)
Horizontal Alignment / Change Management Areas:
- Teaming (expectations, aligned goals)
- People (skills in relation to process, technology, partners)
- Perceptions (in relation to reality)