| Most of the strength of the U.S. economy has been | | | | executable steps.Stage 3, building capabilities, guides |
| built on capital, technology, natural resources, and | | | | you in implementing the master plan through team |
| information, while markets were relatively captive. It's | | | | building and high involvement activity.Stage 4, |
| no longer this way. Foreign competition has | | | | performance results, guides you in measuring the |
| challenging companies more so than ever before. | | | | results of the plan to close the loop. The loop is a |
| New ways to compete are being be devised. In | | | | continuous process that returns to stage 1.Second |
| response to competitive pressures, many companies | | | | Dimension: Six KeyholesThe second dimension |
| are working on improvements with process, quality, | | | | consists of six keyholes: strategy, process, structure, |
| automation, and information systems. Each of these | | | | staffing/skills, culture, and organizational systems. |
| improvements is on the path to becoming a high | | | | Working through the strategy keyhole, you build a |
| performance company. One other element can make | | | | fast cycle company vision that provides direction. |
| a substantial difference: the strategic development of | | | | You develop a new plan for the firm, then align |
| the corporate infrastructure around agility.Substantial | | | | divisions, departments, work groups, jobs, and |
| market share has been lost over the years to | | | | resources with the new strategic direction. You |
| foreign competitors. No industry is immune. New | | | | define where you want to be in terms of market |
| markets and partnerships on a global scale are | | | | share, people issues, profit, product lines, etc., by |
| forming. The pressure is on to be nothing but the | | | | setting goals in terms of specific outcomes.In the |
| best. The key to the future lies in reengineering the | | | | process keyhole you define new methods of |
| entire business-- both physically and logically- -for | | | | converting materials and data into products and |
| agility.Taking dramatic steps to become agile is | | | | services. The focus in this keyhole is the reduction of |
| necessary to be a manufacturing contender in this | | | | cycle times using state-of-the-art innovative methods |
| highly competitive global market. Organizations must | | | | and techniques. You revise production methods, work |
| focus on moving information and products quickly | | | | flow, and equipment. You simplify flow, integrate |
| through the entire service chain: distribution, | | | | processes, reduce set-ups, and use automation. You |
| assembly, manufacture, and supply. All physical and | | | | remove delays and interruptions in the factory and |
| logical events within the supply chain must be | | | | office and reduce overall throughput time.Through |
| enacted swiftly, accurately, and effectively. The | | | | the structure keyhole, you design the logical and |
| faster parts, information, and decisions flow through | | | | physical architecture to support the new direction. |
| an organization, the faster it can respond to | | | | You define how you can physically or logically |
| customer needs.The next ten years will emphasize | | | | organize to produce fast cycle products or services. |
| radical development of the corporate infrastructure, | | | | You revise the way your organization is designed and |
| inducing major changes to the organization. The focus | | | | define relationships between groups. You revise job |
| will be on quickly introducing new high quality | | | | structures and determine where power is allocated. |
| products and delivering them with unprecedented | | | | You specify rules, procedures, and policies to control |
| lead times.The end result is a new effective | | | | operations and direct organizational behavior.Using the |
| organization capable of making swift decisions, and | | | | staffing/skills keyhole, you define the mix and quality |
| manufacturing products with high velocity. Large scale | | | | of human resources required to develop a fast cycle |
| changes in the way we operate in the office and in | | | | company. You determine the skills needed to cope |
| the factory are required to achieve this degree of | | | | with complex problems. You define the mechanisms |
| performance.Those successfully emerging from this | | | | for selecting, training and developing |
| radical transformation will be the winners and leaders: | | | | employees.Working through the culture keyhole, you |
| quick, and resourceful enterprises. These enterprises | | | | facilitate the measuring of climate, organizational |
| will be world-class competitors, organized to respond | | | | behavior, attitudes, and management style. You |
| to a dynamic market with precision and | | | | define the character of the organization, and the new |
| unprecedented speed in delivery and new product | | | | norms, values and beliefs that drive behavior. You |
| introduction. They will be capable of achieving world | | | | devise the new principles that guide human actions |
| class quality, with substantially less nonvalue- added | | | | for the fast cycle company and cascade them |
| cost. Each company will be developed uniquely to suit | | | | throughout the organization.The organizational |
| its particular needs, but one characteristic will fit them | | | | systems keyhole defines performance measurements |
| all--they will all be agile.Becoming agile means | | | | and rewards. In this segment you close the loop, |
| competing and leading in the next century. Companies | | | | sanctioning the new culture, and you devise new |
| require an overhaul of their infrastructures to be able | | | | rewards for cooperative efforts and new behavior. |
| to introduce and build new products quickly and | | | | You reward adherence to new principles and |
| accurately, but also need an acculturation process | | | | achievement of new objectives. This program links |
| fueled by heavy involvement. It takes time to enact | | | | the six keyholes into a cohesive approach to |
| changes of major proportions....and it takes careful | | | | managing change.Third Dimension: Levels of FocusThe |
| planning.Becoming an agile world class company | | | | third dimension consists of three levels of focus for |
| requires overcoming organizational inertia. Often | | | | change strategy: organization, group and individual. |
| overlooked are outdated cultures, ineffective | | | | They are used in the four stages and must all be |
| management skills, bureaucratic red tape, and a | | | | addressed for organizational effectiveness. They |
| reward system that doesn't fit. How do you get | | | | include responsibility and accountability. Using team |
| your arms around this?To implement large scale | | | | building techniques, you facilitate the process of |
| change, there must be a balance in six key areas:* | | | | diagnosis at each level, and develop technical and |
| Strategy* Process* Structure* Staffing/skills* Culture, | | | | organizational strategies. Using high involvement, you |
| and* Organizational systemsMost companies work | | | | transform them into executable and measurable |
| intensely with one or two of these, and miss the | | | | short-term actions. This is the way work gets |
| others.The integrated change model provides a way | | | | accomplished.You develop concise objectives for all |
| to do it. It utilizes social and technical application tools. | | | | managers that focus on cycle time reduction. Each |
| It emphasizes a continuous improvement approach, | | | | manager has a short range action plan for which he |
| with high involvement of people. This exclusive | | | | or she is accountable. You measure the successes |
| management transformation program guides and | | | | and link them with the performance |
| facilitates you. It provides you with a master plan | | | | system.SummaryThe integrated change model |
| that takes you through the steps in systematically | | | | provides a comprehensive methodology for large |
| enacting radical change in your company. This broad | | | | scale change and implementation of time-based |
| approach covers all parts of the organization: | | | | strategy. It gives you the means of becoming world |
| marketing, manufacturing, engineering, accounting, | | | | class, and provides a new approach to competing in |
| etc. It encompasses the full service chain from | | | | the 2000's.Richard G. Ligus is President of Rockford |
| customer through warehousing, distribution, assembly, | | | | Consulting Group, Ltd., located in Rockford, IL., with |
| production, and supply.The Integrated Change | | | | over 30 years experience in manufacturing, |
| ModelAt the heart of the program is the integrated | | | | procurement, transportation and distribution. He |
| change model. Managing large scale change requires a | | | | specializes in developing and implementing supply chain |
| comprehensive master plan as well as accountabilities | | | | strategies. Rich is an author and a speaker, and has |
| for getting work accomplished. The integrated model | | | | developed seminars with the American Management |
| provides that plus more. It's the shell of a master | | | | Association. He is certified by both the Institute of |
| plan for reducing cycle times in your company. It | | | | Management Consultants and the The National |
| consists of three dimensions.First Dimension: The | | | | Bureau of Certified Consultants.Rich has a bachelor of |
| Closed LoopLarge scale change requires managing in | | | | science degree in mechanical engineering from the |
| phases or stages to control the effort. The first | | | | New Jersey Institute of Technology, and a master |
| dimension consists of four stages, looped as a | | | | of business administration degree from Rutgers |
| continuous process: diagnosis, action planning, building | | | | University. He is a member of CASA/SME, and has |
| capabilities, and performance results.Stage 1, | | | | been listed in Jane's Who's Who in Aviation and |
| diagnostic action, is preparation and discovery. You | | | | Aerospace. He has been a speaker at IMTS, USCTI, |
| begin with awareness raising and data gathering to | | | | APFA, NEPMA, MCAA, Hand Tools Institute, CASA |
| discover problems and build a case for change.Stage | | | | SME, and others. He has appeared several times on |
| 2, action planning, guides you in the development of a | | | | WREX-TV, Mid-Morning Magazine. |
| vision, processes, structure and a master plan with | | | | |