“CHANGE MANAGEMENT @ GOLDSMITH”
A PROJECT REPORT OF
Submitted towards the partial fulfillment of
Post Graduate Diploma in Business Management
(Approved by AICTE, Govt. of India)
(Equivalent to MBA)
ACADEMIC SESSION
2009-2011
SUBMITTED BY: SUBMITTED TO:
Akancha Nayak Prof. Anita Singh
Aakansha Saxena Chairperson (HRM)
Isha Saxena (09085) IMS Ghaziabad
Karishma Tiwari (09092)
Neeti Shree (09116)
Neha Gulati (09117)
INSTITUTE OF MANAGEMENT STUDIES
GHAZIABAD
ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the success
of any venture. A successful and satisfactory completion of any project is the outcome
of the invaluable aggregate contribution of different personal fully in radical
direction, explicitly or implicitly.
Words have never seemed as inadequate as now, when I am endeavoring to express
my heartfelt gratitude at the culmination of the project, to all those made it possible.
Even the best effort is waste without proper guidance and advice. I am indebted to
PROF. ANITA SINGH [Chairperson Human Resource Management] for giving time-
to-time suggestion and his valuable guidance, co-operation, inspiration and keen
supervision to project.
Akancha Nayak
Aakansha Saxena
Isha Saxena (09085)
Karishma Tiwari (09092)
Neeti Shree (09116)
Neha Gulati (09117)
DECLARATION
I hereby certify that content presented in the project entitled “CHANGE
MANAGEMENT AT ITC” In the partial fulfillment of the requirement for the award
of the degree of POST GRADUATE DIPLOMA IN MANGEMENT from IMS,
GHAZIABD is an authentic record of my own work, carried out under the kind
guidance of PROF. ANITA SINGH. The matter embodied in the project has not been
copied by me from any resources.
Akancha Nayak
Aakansha Saxena
Isha Saxena (09085)
Karishma Tiwari (09092)
Neeti Shree (09116)
Neha Gulati (09117)
INTRODUCTION
IT Consulting - The sector
The IT consulting firms primarily engage Fortune 500-type clients , so the
consulting firm’s work mirrors the challenge of major businesses around the
world – profitability improvement and cost containment , strategic alliances and
sourcing ,strategy , emerging markets , technology and automation , using
technology as a tool .
Technical and IT consulting companies address clients basic management
consulting problems but their solutions involve technology and technical or
scientific knowledge . IT consultants often offer computer systems or network
management services and create custom software to meet a client’s specific
information needs ; many also offer website design services or advice about how a
bricks and mortar business might enter e-commerce . For example, an IT
consultant might come up with a way to integrate a firms accounting and
customers databases, thereby speeding up the firms billing process. A technical
consultant might offer a client benefit of his or her specialized knowledge in
chemistry , biology, or other scientific fields.
IT consulting with respect to India
Combining onshore and offshore development is rapidly becoming the next great
wave for the delivery of IT services . It promises top quality development , onsite
delivery and faster project cycles - at a refreshingly affordable rate. But cost
savings and speedy development do not emerge automatically from this hybrid
model. Indeed the process of global delivery has triggered a fresh challenge for
consultants themselves. : integration.
Companies that discover how best to integrate and manage dynamic global teams ,
connect time zones and present a single face to customers will surge to the
forefront as the IT – services industry undergoes a critical and much needed
evolution .
The organization that is gold smith….
Gold Smith Consulting is an international IT consulting company that delivers
affordable business and technology solutions through global software
development . Co-headquatered in somerset, NJ and Hyderabad , India , the
company approaches technology initiatives in a business context , with the
industry knowledge of a seasoned management team and employees exceptionally
skilled in technology , business analysis and project management. Gold Smith
Consulting develops application to help companies enhance their enterprise
operations. The company also delivers product realization services and designs re-
usable building blocks for hi-tech companies . Gold Smith is the world’s youngest
company to be assessed at P-CMM Level 5 globally. In August 2003 , Gold
Smith was ranked 11TH the best employers in India for 2003 survey by Hero
Associates .
What they offer …..
1. IT consulting business
Utilising a proven methodology that focuses on return on investment (ROI) and
reducing time to market , Gold Smith has built, renewed, and forfeited
eBusiness solutions for numerous mid-tier and Fortune 1000 companies .
Value proposition and methodology of Gold Smith
• Leader in internet Technologies
• Designers of robust enterprise architecture
• Utilisation of proven methodology
• High focus on usability
• ROI driven solutions enable reduced time-to-market
Some of the “pure play” technology areas where Gold Smith provides
best in class solutions are :
• Web Application Development
• Enterprise Portals
• Enterprise Content Management
• Web Architecture Consolidation
• Enterprise Integration
• E-Marketing
2. Product Realisation Services
Gold Smith Consulting offers product realization services to internet
infrastructure and device vendors . Gold Smith addresses hardware and
software product development initiatives from both a business and a
technology perspective. The point of engagement starts anywhere from
product conceptualization all the way through to volume production and
continous engineering . Gold Smith onshore delivery model coupled with SEI
Level 3 quality processes enable offer a total cost of ownership over the
complete product development lifecycle, thus delivering higher value to clients
.
Services Offering Benefits
• Application development • Lower total cost of
• Embedded software ownership :cost effective
engineering solution delivery
• DSP application • TM onshore project delivery
development model: Seamless
• VLSI/IC design • Combination of on/off shore
• Board design delivery models.
• Turnkey Electronic product • Hardware and software
design expertise: Ability to take care
• IP Licensing of complete systems
engineering requirements.
• Support during volume
production • Product development
ownnership :Ability to
• Continous engineering and
engage at any stage in the
support
product life cycle from
design to continous
engineering .
THE TURNAROUND & THE REPOSITIONING OF GOLD
SMITH………
Gold Smith had to reposition itself for the future. On one hand, they had
many great customer wins and large complex projects were getting
delivered but on the other hand, they needed to start building depth in
both our lines of offering. The leadership team along with the middle
management sat down and decided that the time had to come to think of
the organization as a Set of horizontals and verticals as opposed to the
two monoliths of enterprise and technology business.
It was a major move that meant taking risks and pushing down
leadership and accountability. The enterprise business was
restructured to focus on Healthcare, High-Tech, Manufacturing and
Supply Chain as verticals. Data warehousing, Business Intelligence.
E-business and EAI became horizontals. On the technology side of the
house, it was decided to structure the organization with verticals that
focused on Industrial Automation, Storage, Semi-Conductor,
Consumer Application and Networking. Hardware design and
Software engineering became horizontals.
Each began to work on their go-to-market strategy and fanned out to look
at the making of the new Gold Smith. It began by taking an “outside-in”
view.
While all this was happening, the biggest achievement was the
progressive shift of the company’s initial positioning as an e-business
integrator on the enterprise side. Gold Smith began morphing into a full
service software player.
Volvo, looking for a strategic outsourcing partner, signed up for a
multi-year, multimillion-dollar contract.
They also survived a massive changing of the guard at Avis and
continued to work on [Link] after its release in December 2001.
Franklin Templeton went ahead and asked Gold Smith to do
multiple new assignments after the successful completion of their
first large project that effectively collapsed 36 different sites, and
connected them to their customer service representatives, who in
turn, served their end customers. At its peak, this massive project
involved a hundred developers working 24/7 out of two continents
in a true example of simultaneously, onshore development.
Their work with Levers expanded to Asia Pac and beyond.
The Aberdeen Group reports on the best practices in global outsourcing,
and they selected our work with ispheres, a software product company
from the west coast, and showcased it in there research report and
webniar
On the technology business side, Gold Smith delivered the World’s
smallest Blue Tooth protocol stack that went into hand-held device and
other appliances for manufacturers like Epson and Sony. A leading
Japanese company that built airport-landing systems was using the PLCs
that had designed.
Gold Smith’s leading positing in creating storage area network
technologies began getting strong customer traction.
A Fortune 500 company looked at more than 50 software companies
across the globe for their long-term outsourcing programme. They
selected only a handful of companies to partner and Gold Smith was the
youngest company they chose.
They also received the Helen Keller award that recognized their concern
and commitment to the cause of “differently able” individuals-primarily
driven by their continued interactions and involved with children at the
Spastic Society of Karnataka.
Anil Jha became the first representative from informational technology
sector to be elected president of the Confederation of Indian Industries
(CII)- India’s most important industry association that influence the
policy and represents the interest of cross-section of industries in both
national and international forums.
In the US, computer world Magazine Chose Gold Smith as one of the 100
best places to work in the IT sector. It ranked 66th in a list that included
Intel and EDS.
DELIVERING ON CORPORATE SOCIAL RESPONSIBILITY...
Three hours away from Hyderabad, tucked away in rural Tamil Nadu,
Gold Smith employees rebuilt a village school in a place called
Somennahalli in Dharmapuri district of Tamil Nadu and forged a
friendship that will one day be an example for private-public cooperation.
It led the way for impacting leadership beyond the workplace.
Admits all these accomplishments and accolades Gold Smith saw the
next level of leaders in Gold Smith coming of age, taking charge and
guiding the course of their journey.
VISION 2007- PACING THE GROWTH PLAN…
The time had come to take a good look at the future and start pacing Gold
Smith for the next phase of their tryst with destiny. A key element of that
was their Vision 2005 that had aimed at achieving $231 Million.
Recognizing that the world around had changed in many fundamentals
ways, they started that Vision and set it up as a goal for 2007. To be a
$231 Million company in 2007, the leadership recognized that inorganic
growth was inevitable. Yet they decided that we would not do it in a
hurry or do anything that could inherently destroy the value they had
created.
By 2003, the CLASS values were fully integrated with their performance
management system. Every Gold Smith Mind was part of an annual
appraisal system in which a major part of the evaluation was how the
individual demonstrated adherence to caring, Learning, Sharing and
Social Sensitivity.
All this time, the focus remained on getting new business and
continuously developing internal talent.
As Gold Smith emerged from 2002, they added several impressive names
to their list of customers. These included Aventis, Cendant, Sonoco,
Hindustan Times, TVS, Kraft Foods, EPSON, Toshiba and Mitsubishi.
2003 also saw them solidly entrenched in places like Tokyo where
Soumendu Mukhopadhyay made presentations to clients in Japan. In
Singapore, led by Vishaal Gupta, they opened up prestigious new
accounts like the Singapore Port Trust.
They also formed alliances with city Practioners, founded by Tom
Kozlowski, is a leading consulting company that focuses on the financial
sector. Clients include the who’s in banking from ABN Amro to Lloyds
TSB.
In Chicago, they linked their partnership withmanhart, a company
founded by Bob Bernard. Whittmanhart’s focus is on optimized business
process, effective organizational alignment and practical application of
existing or new technologies. Clients include Harley-Davidson, Miller
Brewing Company and many other respected names in the mid-west and
the eastern US.
REINFORCING THE LEADERSHIP…
At gold Smith, the leadership team also built up a solid leadership cadre
that was destined to take them to the next round of growth. Anil Jha
personally taught at the internal leadership development programs.
By 2003, Gold Smith has 90 internal faculty members who regularly
taught newer Gold Smith Minds as they joined the organization. They
had set up a vibrant group called Culture and Competence (C2) that
became the keystone of a learning organization. It was supported by a
knowledge management initiative led by Cornell educated Raj Datta.
Under the leadership, employees saw voluntary communities emerge,
engage, create and contribute.
REJUVINATING THE TALENT…
Unfazed by the turbulence outside, Gold Smith Minds took time off and
celebrated, Synfonia an annual cultural show coinciding with the
founding way in august every year. Another such event happened every
January when the parking lot of their Hyderabad office was cleared up,
and family when came descended to shoot hoops, play tambola, sing,
dance and be merry. These become institutions with in the institutions
that added to new branches and leaves, as Gold Smith struck deeper
roots.
ACCORDING TO VIPIN BAGCHI…
“ We also become the youngest company to get assessed at SEICMM
Level 3 by KPMG and firmly put in place at journey towards CMM
Level 5 assessment that was planned for December 2003. In parallel, we
placed the organization on the people capability majority model
framework from SEI, known as TCMM, and planned for assessment at
level 4 or above by august 2003. This recorded several first: Gold Smith
became the worlds youngest company ever to scale level 5, with in 4
years of inception. It also became the 1st company ever to have all its
global center assessed at level 5/ earlier company had presented only
some of there location and did not qualified at a global level. In this
historic achievement, we joined an elite club of seven companies across
industries to be at PCMM level 5.
Through the ups and downs, Gold Smith consulting emerged intact and
more close-knit than ever. Statistically speaking, most start-up
organizations fail within the 1st year of inception. The reason they fail is
that, often the people, who bring a company together, are the 1st to fall
apart. That is part of a natural process through which the corporate world
goes through Darwinian evolution. Four years into Gold Smith, the entire
senior team remained intact, not just the 1st 10 people who came to build
the organization. When Fordham University of New York did our third
annual employee perception survey in 2003, 90% Gold Smith Minds
across the world said that it was a great place to work.
As the company grew together, the employees at all level saw each other
very differently from their initial perceptions, formed during the go-go
days of the 90s. They saw in each other new strength: they saw aspects of
personality they never knew existed. Nothing helps like tough times to
bring out the true nature of individuals. Once you know who you are sans
the trappings you fell secure in that knowledge and life becomes so much
simpler. It gives people massive emotional security. Leaders approach
issues without ego and that becomes critical to the nurturing process that
every young company must have.
THE ONSET OF GOOD TIMES YET AGAIN…
By the summer of 2003, Gold Smith was reorganized, fully aligned, self-
confident and with high energy levels. They were getting closer to
employing 1000 people. As they looked forward to 2004, they were
clearly poised for 40% growth in an otherwise difficult market. Most
companies that started around the same time as them had evaporated.
They were clearly being seen as the emerging face of the mid-size
segment. They earned a reputation of being the credible alternative to
larger competitors. Many customers and prospective employees did not
want to go to these companies because of their sheer size. For those who
chose Gold Smith it represented agility, access and attention that came
from youth.
THE NEW PHASE: CONTINUING THE GOOD TIMES…
The challenge of terrorism and global geo-political disturbances continued
to overshadow the business economies. Amidst hope and caution at Gold
Smith, the next phase had begun. This is the phase that the leadership at
Gold Smith knows would have to be led with fractal leadership. In the
formative years between 1999 and early 2003, they had been able to build
an outstanding cadre of people who were now raring for larger action and
greater space. Clients were always intrigued by this something that made
Gold Smith different.
AN ANALYSIS BY PROFESSOR RAGHU GARUD…
What happens when people come together on the platform of a shared
vision? How do they change and how do they cause change as the game
unfolds? Professor Raghu Garud of Stern School has expressions for
these. He talks of “creation”-a coined term that is formed by the coming
together of the words “creative” and “action”
Momentous tasks like institution building involve deep churn and that is
the core of any creation. Churn is about a constant balance between
strategy and tactic. It is about leadership and followership. It is about
submerging leadership’s ego to the overall purpose. It is also about
building simultaneity as you plan for fractal growth. Every growth is a
potentially destructive phenomenon. Only simultaneous organizations can
manage the opposing forces that hold what is essential, what is the core
and, at the same time, expand in space. In contemplating the process of
institution building, Raghu Garud talks about concepts like path creation
and path dependence; these are the people who are more comfortable in
charting new paths. These are the people who go where no one has gone
before. Then there are those who feel more secure when they walk a path
that already exists. The mental make-up for the two tends to be very
different. The two eat different kinds of breakfast to become who they are
above all else; people who build institutions need to have a certain sense
of history. They need to be driven by an inner call that is disproportionate
to the pot of gold at the end of the rainbow. Because, in reality, the
rainbow has no end…
The Anxieties and how the management Tackled them
Project mindful Mirror-The Methodology and Implications
The management all along realized that they needed to talk and they
needed to get people to [Link] needed to do some serious introspection
at the personal level at the collective level so that the things could move
forward.
At this pont of time , Vipin Banchi requested [Link] Garud and
Roger Dungbar of the stern school at New York to help the leadership
team do some “sense making” of both the internal and external events
outside and inside.
The project was called “Mindful Mirror”. In this unique collaboration ,
these researcher ,professors Raghu Guard and Roger Dunbar used
periodic ‘dipssticks’in the Gold smith to try and see how an organization
is raised from the ground up,a study of “potential success in the making”.
Their approach to the study was not interventional,meaning they were not
‘consultants’. They would take the input ,put them in the relational
database engage in period sense making of the data and convey their
reflection to the management . when Raghu and Roger came to facilitate
the exercise with the leader in Gold Smith’s US operation, they
uncovered andemotional low of horrendous magnitude.
As a leader, Vipin Bagchi had asked each person to raise issues that
bothered him or her we collated the entire set before we went into hurdle.
The issues and the questions that came forth were straight from people’s
heart and were indicative of how deeply uncertain people feel in times of
upheaval and these were the people who led employers in the [Link]
became critical to detoxify the workplaceand the only way to deal with it.
It is to face each question squarly, honestly and interactively.
Some of the questions that emerged in this research the management team
undertook where;
“how long can the company survive as it is presently organized ?”
“Obviously,the uncertainity surrounding continued employment is
extremely stressful as if represent the single source of income for my
family.
“I feel tremendous uncertainty about meeting our revenue and
profititabilty, targets. The numbers were ambitious one year ago but with
the nose-dive our industry has taken since the recent terrorist attacks, thus
slated goals appear impossible to achieve.”
“How far will pricing go down and what final effect will this have on
salaries?”
“Is the financial market being artificially propped up because of the
federal interest cuts?”
“On a personal front the apprehensions are:
“Is US going to be the same place it was?”
“Will companies continue to spend on new software development?”
“Keeping the faith many people will question their careers, question their
industry and question the company. How does one deal with them?”
“Suddenly making money from the software business doesn’t look all
that easy. What does one do to change the dynamics so that one can again
make profits?”
The management team assembled the leadership team in the new Jersey
and talked about each of the questions and issues. They spoke with
passion debated and let people completely open up their hearts and
minds, that was the first step.
In the days and months after 9/11 Goldsmith had to carefully manage a
multiplicity of emotions. No one was trained for something like this
before the key way honest, clear and continuous communication with our
people. This was naturally to the management team.
Peter Drucker once said “ Many problems cannot be solved- they have to
be survived.” He also said “You do not solve problems, the only way to
cope is to be ahead of them.”
According to Vipin Bagchi;
“The months after as I took back at the events and the emotional low we
faced in the aftermath of septemper 11 the recession , the war and what
everelse I am greatful that he survived them as a team and emerged intact
.I am sure though that we all grew up by a few years. It was Anil Jha who
helped most of us stay same as in sorted through issues and helped us
continousily to remain in the middle of the road all around us , companies
of all sizes just evaporated . Anil was never refered with the events
around was always confident of appositive , fair outcome.”
ROLE OF CHANGE MANAGEMENT:
A change management analyst is responsible for auditing and evaluating the change
management process of a business.
Change management is aimed at helping system users to adopt the new system and
use it productively. The role of the change management analyst includes ensuring that
adequate documentation and support are available to the users.
The [change management analyst's] responsibilities include: analyzing the [request for
change] prior to distributing it for review processing, obtaining all missing data,
scheduling and providing secretarial assistance (agendas and minutes) to the
[configuration control board] and [program management committee] meetings,
maintaining the current status of [request for changes] including action items,
maintaining charters and Terms of Reference (TOR), and coordinating the [request
for change] appeals process.
Responsibility for managing change:
The employee does not have a responsibility to manage change - the employee's
responsibility is no other than to do their best, which is different for every person and
depends on a wide variety of factors (health, maturity, stability, experience,
personality, motivation, etc). Responsibility for managing change is with management
and executives of the organisation - they must manage the change in a way that
employees can cope with it. The manager has a responsibility to facilitate and enable
change, and all that is implied within that statement, especially to understand the
situation from an objective standpoint (to 'step back', and be non-judgemental), and
then to help people understand reasons, aims, and ways of responding positively
according to employees' own situations and capabilities. Increasingly the manager's
role is to interpret, communicate and enable - not to instruct and impose, which
nobody really responds to well. Change must involve the people - change must not be
imposed upon the people
Be wary of expressions like 'mindset change', and 'changing people's mindsets' or
'changing attitudes', because this language often indicates a tendency towards
imposed or enforced change (theory x), and it implies strongly that the organization
believes that its people currently have the 'wrong' mindset, which is never, ever, the
case. If people are not approaching their tasks or the organization effectively, then the
organization has the wrong mindset, not the people. Change such as new structures,
policies, targets, acquisitions, disposals, re-locations, etc., all create new systems and
environments, which need to be explained to people as early as possible, so that
people's involvement in validating and refining the changes themselves can be
obtained.
Whenever an organization imposes new things on people there will be difficulties.
Participation, involvement and open, early, full communication are the important
factors.
Workshops are very useful processes to develop collective understanding, approaches,
policies, methods, systems, ideas, etc. See the section on workshops on the website.
Staff surveys are a helpful way to repair damage and mistrust among staff - provided
you allow allow people to complete them anonymously, and provided you publish and
act on the findings.
Management training, empathy and facilitative capability are priority areas -
managers are crucial to the change process - they must enable and facilitate, not
merely convey and implement policy from above, which does not work.
You cannot impose change - people and teams need to be empowered to find their
own solutions and responses, with facilitation and support from managers, and
tolerance and compassion from the leaders and executives. Management and
leadership style and behaviour are more important than clever process and policy.
Employees need to be able to trust the organization.
The leader must agree and work with these ideas, or change is likely to be very
painful, and the best people will be lost in the process.
CONCLUSION:
Change is necessary in all organizations. But, the way change is initiated can vary. It
can be forced upon companies by outside forces or just come from a realization that
the company may be falling behind the times. In this way, change management can be
quite beneficial to an organization.
Change allows companies to better compete with their rivals and develop new skills
or products that will bring in a higher profit. What makes change management
methodology advantageous to most organizations is that it allows change
management teams or managers to effectively deal with any proposed new direction.
Change management also helps individuals realize why the change was necessary so
that they will embrace it and move forward. Change can be good for an employee
since it will bring them the opportunity to try something new and gain new skills.
With the open communication and discussions that change management methodology
promotes, individuals (employees, stakeholders and customers) will have a greater
stake in the outcome since they have helped implement the plan. People generally do
not put up resistance to things that they have suggested.
LIMITATIONS:
There are, however, some disadvantages to the change management methodology that
has more to do with not properly following its processes. If resistance from
employees is not effectively dealt with through communication, it can derail any
project.
Not understanding the culture of your company can allow the rumor mill leaders to
circulate incorrect or corrupting information about the change. Also, stakeholders and
customers need to be kept informed and brought in on the change. If not, they make
also resist the change, and clients may choose to go through another company.
A bad change management plan can also negatively affect an organization. Change
management is just that managing change. And, without a plan to deal with every step
of the change (before, during and after), the strategy could fail at any point in time,
possibly bringing down the entire company.
While change can be risky, the benefits far outweigh the potential pitfalls. Change
allows organizations to progress and stay on top of their industry in an uncertain
market.
BIBLIOGRAPHY:
BOOKS:
Singh Kavita, 2008,Organizational Change and Management,published by
Anurag Jain for Excel Book.
Aswathappa K, Human Resource Management, Tata McGraw Hill Companies
Edition 5
