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Enterprise wide change superiror results through systems thinking - William J.

William J. Enterprise wide change superiror results through systems thinking - Wiley publishing , 2005. - 353 p.
ISBN: 0-7879-7146-4
Download (direct link): enterprisewidechangesuperi2005.pdf
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Phase I was consultant-driven and resulted in only superficial implementation.
Phase II turned into a homegrown, department-driven EWC that became operational in nature with functional (analytical) thinking dominating.
Phase III was facilitator-driven using a Systems Thinking Approach. It was much harder work, as they had to struggle with the answers and Game Plan themselves.
However, Phase III also saw them reach their major key success measure of doubling in size in three years to achieve greater economies of scale. The Experiential Learning Cycle was in operation. The benefits of the Systems Thinking Approach included a more sophisticated, disciplined, and open collective management team. There were many spillover benefits for all elements of the EWC process, with many integrated project improvements.
Questions to Ponder
• What are the two most important relationships not working well in your organization—that are negatively affecting your Enterprise-Wide Change results?
• Where do you see a void when you look for root causes in your Enterprise-Wide Change process?
• Where do you see a void when you look for unintended consequences in your Enterprise-Wide Change process?
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Enterprise-Wide Change
The Ultimate Wisdom: The only alternative to perseverance is failure.
► COMPREHENSIVE CASE STUDY
East Coast Federal Credit Union Enterprise-Wide Change: Part 5
Ongoing Activities. At this point in the Enterprise-Wide Change process, the new year brought continued losses due to the IT International data system contract and CarLoan, Inc., contracts, as well as high operating costs. Project teams worked diligently on all these issues. Predictions for the latter half of the year included losses in most months.
Even as this book is being written, these two outsourcing contracts create a continued financial burden:
• Renegotiation of the IT International agreement is ongoing and a new contract is expected in the first half of next year.
• The CarLoan losses are scheduled to be amortized by the end of 2004. There is a fraud investigation and a long-term insurance claim to be negotiated, all positive developments.
However, some drastic economic change was still called for by June 30.
Activity #1. The Program Management Office (CEO and systems consultant) continued regular contact and coaching by telephone and in person. By February it was clear a one-agenda one-day meeting of the senior management and project team was needed on the branch sale project, and it was scheduled for early March. At that meeting, the status of the project was reviewed and adjusted and preparation was begun for the late March board session.
Activity #2. The board/management session was held. Once again the board was updated on the EWC plan and the continued reality of the situation. The earlier options were reviewed again, as were the criteria and progress for decision making on the fate of the branches. A commitment to a June timetable for THE BIG DECISION was made.
Wave After Wave of Changes
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Ongoing Activities. By now, there was project team progress to report to the board regarding the new name. Progress included beginning to expand their main marketplace presence, a move to a critically needed new headquarters building (with a branch) in the center of their focused marketplace, the hiring of a new director of marketing to help establish the new brand identity, and the growing confidence of the regulators. All ten of the consensus actions were completed or were being actively pursued. A revised to-do list was submitted and approved.
The June board session was scheduled so that decision making on the expected branch project could occur on schedule. The explicit, yet quiet, goal of management was that the branches could be sold to a larger credit union for $X million by that time.
That sale of money-losing branches and the infusion of $X capital would put them on a solid Phase III EWC. They would be a new company, with a new name and financial strength, essentially starting anew in their main chosen marketplace and state.
Activity #3. The CEO took the lead in sending out an RFP to a few chosen credit unions and found two who were quite interested in the branches. Discussions ensued.
Activity #4. By the time of the appointed June board meeting, a deal had been struck by the CEO to sell the branches for almost the ideal amount that was their goal. The board approved the sale, as they really had no choice. It was a win for the customer (member), a win for the affected employees, and a win for the new credit union. Now they could actually work to acquire a presence in their chosen marketplaces.
Finally, it was a significant win for ECFCU, as it immediately got rid of money-losing branches, streamlined costs, and provided them the capital to amortize the newly built branch's excess construction costs over its value. It also gave them the capital needed to begin planning for new branches and aggressive marketplace advertising and awareness of their new brand name. They achieved in parallel with all these activities a Code #2 in the NCUA ratings as a normal and successful credit union. Their capital ratio moved into the desired range, and they have the capital to withstand the IT International and CarLoan, Inc., financial problems.
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