Companies and people have the mindset that business should go for transformational models only if the existing model doesn’t give better output. But this idea is highly outdated. One should go for change to make change in real life. Market and demand is highly dynamic. When we make structural changes, people start making new connections and make organizations a more creative place. Transformation breaks the old way of doing business. It will disrupt regular routine and will lead to better utilization of resources.
Companies mostly perform their job by segregating each department. It is a problem as it restricts communication transfer outside the particular area. For example R&D hardly knows about what the production department is doing. Instrumental methods of classifying work in the form of matrices can make organisations slow. Better results can only be given if the organisation works together. Hitachi in 1986 innovated its organisation by restructuring it. It created centralised R&D unit and seven other branches to speed up the production process. It helps the technical department to share and exchange views on product innovation with the help of other branches.
Impact of following a rigorous routine
Improving communication between various departments will not alone improve or bring change in organisation, restricting oneself to think out of the box and not preparing for the worst can drive you out of the competition. You will create a bottleneck for your company if you will just rely on single change. researches advice companies to make changes in their efforts. For example if for one particular, your mission is centred around making a better product, next year should be different like production centric, innovation centric or other. Transformation has helped Ramada in its business transformation by connecting production and innovation sidewise. In 2006 Ramada received the highest turnover with this strategy.
Impact of stringent change on resources.
If you will restrict change for too long you will become inefficient in utilisation of the resources. Instead of making proper assignment of resources you will allocate it elsewhere and by the time you will realise, late resource allocation will deteriorate your value change. Companies need to be pre planned for future requirements and possibilities. CSS technergy has divided its whole company working into 3 divisions: CSR group, corporate representation group and research and development group. Heads of these departments were the strongest people in the company but the problem was that not any one of the units was strong in itself, if one faced trouble, the other two also faced problems in serving clients. Manager reorganized that departments were so loosely connected that they had very little impact on geographical boundaries. Companies should move from Silos mind set. They should focus on operating as a team.
When is the time to change?
Imagine, your company is performing well, and your employees and customers also seem happy, so should the company continue with existing series? But a simple dummy test for your employees can give you insight about many things. For example if your test scores comes out less than 4 it means your company is not required to change else you need to think and start working for it. Employees’ perceptions give good indication about where the company is performing well and where your company needs to take the initiative of change.