4. We implement continous improvement of quality, time and
4. We implement continous improvement of quality, time and
4. We implement continous improvement of quality, time and costs.3. Professionalism1. We have professional management, feedback and develop our strengths.2. We use chances and scope for decision making.3. Wir have clear tasks, competences and responsibilities (TCR).4. We minimize thinking in departments and practice cross departmentalcooperation.4. Trust1. We ensure clear decisions and observe agreements.2. We can trust each other and have appreciative interaction internally, withcustomers and partners.3. We talk openly about unpleasant topics and we find solutions.4. We take responsiblity, set a good example and are authentic.5. Meaning1. We all know the purpose of our business and this causes meaning.2. We are proud of what we have reached together.3. We think and behave positively and really develop ourselves.4. We are different than the others and this is key to performance and meaning.© Roman StögerPurpose of normative management: effectivecompany, effective employees, effective managerscompany:mission andstrategyemployees:values and rulesfor collaborationmanagers:managementapproach andmanagementprinciples5. STRATEGIC CHANGE-MANAGEMENT© Roman StögerChange management in the past and now…42change in the past change nowlong time for changes andways to react to themalways shorter windows ofopportunity for decisions andimplementationisolated adaptions ofbusiness units, departments,processes…overall changes of the wholebusiness modelonly a small number ofpersons to develop changeinitiativesIncreasing urgency to integratea lot of decision-makers,experts and result-driven people© Roman Stöger43timemarket volumeintroduction growth maturity decline„Old World“ „New World“Strategy is about the proper switch fromold world to new world© Roman Stöger
44growing importance of people developmentand customer orientation
world
growing competition: digital banking,scenario of low interest, dept and materialassets
«banking not banks» through digitalization,more individual services to key accounts
national / international competition ofbanks and «banking companies without beingbanks»
«The customers do all the bankingtransactions.»
big pressure on margins, need for increasingproductivity
redimension of product- and serviceportfolio, concentration of multi-channeladequate products
strengthening responsibility, selforganization and self-control
old world new
constant business model overdecades, i.e. no changes
classic-analog thinking of banks asinstitutions (customers and employees)
regional competition for customers, stablecompetitive situation
«The bank does all bankingtransactions for industry, retail…»
high profitability within classic bankingproducts and services
many products and services (a lot ofthem with risky position over decades)
patriarchal top-down-culture in allbanks
image of the conservative bankingofficer
Transformation map:Tool and Example (retail bank)© Roman StögerDefinition of change-management45Change management is effective development,controlling and implementation of change-processes incomplex, social systems.© Roman StögerSuccess factors for change-management461. Communication of meaning of change (customer value,performance…)2. Expression of necessity of change3. Result orientation and implementation approach in all steps4. Real noticeability of change-programs5. Coalition for implentation of the new6. Methodologic competence in all steps of the program7. Use of change-management-controlling8. Development of a culture of trust during and after the program9. Role model of management© Roman StögerMistakes in change-management471. Really different opinions in the management team2. No clearness and postponing of decisions3. «Everybody can take decisions» – wrong approach of participation ofemployees and managers4. No or too less focus on implementation – no «motivation throughresults»5. Neither positive nor negative sanctions for behaviour6. Producing an attitude of consumers for change and communication7. Pure internal perspective and neglection of business8. Establishing and pushing of micro-politics, rumours, intrigues…9. For all topics: bad communication© Roman StögerChange-management: three dimensions48objectivesandcontentprocessesandmethodsbehaviourandemotions© Roman StögerDimensions of change-management:1. Objectives and content49Objectives and content1. Clear message in mission and strategy2. Early committment of main changes in business unitsand functions3. Proper statements concerning adaptions inorganization (hierarchy and processes)4. Open communication of consequences for employeesand managers5. Audit of corporate culture and development ofnecessary impulses for culture© Roman StögerDimensions of change-management:2. Processes and methods50Processes and methods1. Logic and transparent change-process with clearresponsibilities2. Common understanding for processes and methods3. Early personnel decisions for projects, initiatives…4. Ensuring feedback and result-orientation in the wholeprocess5. Professional use of change-tools: transformation map,communication matrix, stakeholder management…© Roman StögerDimensions of change-management:3. Behaviour and emotions51Behaviour and emotions1. To set an example of change through management2. Consequent functional-mixed teams in all projects and keyinitiatives3. Sensorium to staff: feedback media, coaching ofimplementation…4. Common management development: principles, tasks andinstruments of competent management5. Change-trainings for change-teams© Roman StögerPsychology in change management: change curve521. shock2. rejection3. insight4. integrationtimeperceived competence© Roman Stöger53step 1. shock 2. rejection 3. insight 4. integrationdescription /behaviour• challence tohabits• leaving the „OldWorld“• refusing of the„New World“• arguments for theright approach ofthe „Old World“• acceptance of the„New World“• leaving old habitsand searching newones• implementation ofthe „New World“• acceptance of newbehaviourcore topic communicatingand explainingactive listening,being consequentand convincingactivate and beinga role modeldeveloping andliving the „NewWorld“intervention• information aboutthe „New World“• personal contact• „holding the line“• active participation• giving time• separation offactual andrelationship level• showingperspectives anddevloping plans• „living change“• giving feedback• showing results• acknowledge• support to live the„New World“Psychology in change management: change curve© Roman StögerChange-process: architecture („ICIS“)54initiation conception implementation stabilization© Roman Stöger551. clear assignment for change2. communication of meaningand urgency of change3. forming a coalition for change4. establishing a changeprocess5. clear TAR (tasks, competences,responsibilities) for the process1. development of a strategyfor the change topic2. design of impulse in thefields of process andbehaviour3. early key decisions4. making affected peopleinvolved5. integration of feedbackmediainitiation conceptionChange-process: architecture („ICIS“)© Roman Stöger561. consequent implementationplan2. test before the big roll-out3. ensuring transformation from„Old World“ to „New World“4. check of the change-processand the change-strategy5. managing and communication offirst results („quick wins“)1. transfering of the new intodaily business2. noticeability of results,documentation of thesuccess story3. hedge of the new4. avoiding of „fall-back“ inold routine and in the “OldWord“ in general5. open review of results andprocessimplementation stabilizationChange-process: architecture („ICIS“)© Roman StögerPsychology in change-management:types of behaviour57active partner forchange1. active input for change: new ideas, new solutions, new measures…2. consequent support of change with «blood, sweat and tears»3. responsiblity, engagement, competence and «strongimplementation power»4. high commitment with the objectives of change«limited» partnerfor change1. good contribution to the new – but only after being asked2. only 90% commitment3. being consequent in realizing jobs4. having trust in the change teampassive observer1. as much contribution as critics2. no responsibility and no engagement3. official statements for “the new world” but staying in “the oldworld”4. consumer for information, communication, campaigns…active resistancefighter1. no commitment for the new2. resistance-behaviour everywhere and everytime3. communication against the new4. organization of resistance forces6. COOPERATIONS AND M&A© Roman StögerDefinition of the subject59combinationscooperations of groups/ stakeholdersindustrial associations,trusts…• cooperation on a voluntary basis• no change in the legal status(„independence“)• cooperation with a defined or a possible endacquisition mergerasset deal share dealmergerthroughintegrationmerger asa newcompany• possibly not on a voluntary basis• loss of legal independence• longterm combinationcooperations M&A (mergers and acquisitions)business / corporatecooperationstemporary joint venture,franchise-systems,industrial / agriculturalcooperative…© Roman StögerDrivers for cooperation and M&A60maturity / decline phase,price-wars, over-capacitiesfinancial reasonspower of suppliers andbuyersgrowing intensityof competition in allbusinessesshorter time and higherspeed for R&D, entry,marketing…technolog. development /IT / „e“political and socialdevelopment (law,demography…)economic development(growth, inflation-rate,„geography“…)drivers forcooperationand M&A© Roman StögerPositive impacts of professional management ofcooperations and M&A`s…611. a clear plan for the board and therefore an instrument of management andcommunication2. a mission, strategy and measures for implementation of cooperation andM&A3. reaching the strategic objectives: market position, innovation performance,productivities, attractiveness for good people, cash, profitability4. substantiation of «synergies», «potentials», «chances»…5. adaption of the organization and management processes to cooperationand M&A (clear tasks, competences, responsiblities)6. realizing «common language» and «common understanding» for the topic7. motivation effect through «invetion of our new and common firm» viacooperation and M&A8. positive impact on corporate culture – «our company», «our project»…9. giving perspective to performers to «stay on board»10. consequently a new spirit, speed and implementation-power throughprofessional management of cooperation and M&A© Roman StögerManagement of cooperation and M&A via theIntegrated management system (IMS)62Source: Malik, F., Strategie, Frankfurt 2011, p. 80 with adaptions.organizational level people level7. developmentof employees1. mission and strategy and managers6. operativecontrolling 5. results2. organization3. managementprocesses4. managerialeffectivenessshortterm (< 1=”” year)=””>IMS as framework for cooperation and M&A© Roman StögerCooperation and M&A: St. Gallen Management Model63strategystructure culturemanagement© Roman StögerCore topics for cooperation and M&A:Strategy and structure64strategy1. a mission for cooperation and M&A as orientation forstrategy, structure, culture and management2. common view of management concerning the challenges(«old world – new world»)3. a solid strategy for cooperation and M&A as a basis forbusiness units, functions, regions…4. deduced strategies for business units, functions, regions…5. adaption of the most important management processes(mgmt. by objectives, budgeting, innovation…)structure1. adaption of structures to the objectives of cooperation andM&A2. implementation program for relevant functions andprocesses – deduced from strategy3. productivity program for realization «synergies» throughfunctions and processes4. clear definition of tasks, competences and responsibilities inprocesses including interfaces and systems5. defined management committees for cooperation and M&A(e.g. steering committees..)© Roman Stöger65culture1. development of common values for cooperation and M&A,respect and «positive acceptance of the past of the partners»2. implementation of management principles for cooperationand M&A3. development of «common language and commonunderstanding»4. professional monitoring of management principles andvalues5. concept and implementation of proper communication forcooperation and M&Amanagement1. early decisions for managers and management organization2. clear assignments for the managers for the next period3. solid and simple process for implementation and reportingof results4. deduced development program for managers andemployees to ensure cooperation and M&A5. clear policies for HR: remuneration, local resp. organizatorialchanges, HR-processes, career-systems…Core topics for cooperation and M&A:Culture and management© Roman StögerControl of the process: 1. „Pre-Merger“661. preparation1. management statement in the board for the purpose and benefitsof cooperation and M&A2. clearness of motivation and the „strategic gap“ to be filled viathe project3. documentation of expectations and critical conditions for exitor success4. early plan for communication and milestones in the project2. evaluation1. (re)search for possible candidates2. definition of the intensity of the „combination“ (light cooperationvs. merger)3. evaluation of possible partners to fulfill the purpose and to fillthe „gap“4. clearness of strengths and weaknesses of possible partners –including the own company (strategy, structure, culture,management)3. negotiation anddecision1. negotiations on the basis of the evaluation2. early identification of „dealbreakers“3. decision on the basis of checks, evaluation, negotiation…4. solid definition of the treaty: governance, strategy, organization,management (decisions), reporting© Roman Stöger671. preparation1. professional plan for realization: steps, milestones, management,project team…2. early personal decisions (employees, management) – especially togive a perspective to performers3. exchange and „mixture“ of managers and employees in projectgroups, common development4. professional change-management during the whole process:communication to stakeholders, information, monitoring of theatmosphere…2. development ofthe integration1. development of a mission for cooperation and M&A2. development of a strategy for the company(ies) and the functions– including risk-management3. ensuring the proper organization for integration: managementcommittee, clear tasks / competences / responsibilities, processes,integration of systems…4. cultural integration: values, behaviour, management principles…3. controlling theimplementation1. realization of working management processes: management byobjectives, planning, budgeting…2. consequent project management and controlling ofimplementation3. ensuring the new, common culture, esp. „being proud of the result“4. review of the project, the process and the resultsControl of the process: 2. „Post-Merger“7. DIGITALIZATION AND STRATEGY© Roman StögerDigitalization confronts our traditional view ofbusinesses…69„Old World“ „New World“Branches are defined via productsin ownership.Branches are defined via use and customervalue, not necessarily via ownership.Selling is the final step ofdevelopment, production andmarketing.Selling is the beginning of a temporarily notlimited customer relationship over the whole lifecycle of products.„Organisations“ are separatedfunctions in a hierarchy, e.g. R&D,purchase, production, sales…„Organisations“ are common processes andfunctionalities like pace, implementation-power,interface, connection.Management is primarily aboutmanagement of employees.Management is multi-dimensional and meansmanagement of colleagues in other functions, ofcustomers, of development partners…Quelle: Stöger, R., Toolbox Digitalisierung, Stuttgart 2017.© Roman StögerHow do business models change via digitalisiation(„Old world“ – „New world“)?70… not only traffic signs, but complete traffic managementsystems… not the retail shop, but quick delivery from suppliers to thecustomer… not printed paper, but customer-specific software forworkflows (accounting…)Quelle: Stöger, R., Toolbox Digitalisierung, Stuttgart 2017.… not a cooking machine, but „connected cooking“ as solutionfor productivity problems im big kitchens… not bank credits, but search for investors and organizinginvesting possibilities („crowdlending“)© Roman Stöger71Quelle: Stöger, R., Toolbox Digitalisierung, Stuttgart 2017.… not airplane engines, but zero-defect use („power bythe hour“)… not a truck, but optimized solutions in the logisticbalance-sheet… not agriculture machines, but systems for optimizedoutput for farms and forestry… not a tennis racket, but a trainer for improving playingperformanceHow do business models change via digitalisiation(„Old world“ – „New world“)?© Roman Stöger72How do entrepreneurs and managers judgedigitalization?„Digitalization is one of our key strategic issues infuture.“„In our management board we have a commonunderstanding of digitalization.“„Business model and organization will changethrough digitalization.“„We surely know how to adapt structures andprocesses to digitalization.“„Personnel- and management development playa key role for digital transformation.“„Measures and initiatives for digitalization arerunning well concerning timeline and effectiveness.“91%47%63%34%81%28%Statements…Quelle: Stöger, R., Toolbox Digitalisierung, Stuttgart 2017.© Roman StögerSuccess factors and practical problemsshow a clear pattern.Insight: Management really knowssuccess factors for digitalization…Reality: Management is facing the followingproblems…… digitalization as top-managementagenda… delegation in „organizationalsilos“… communication of a clear messagefor digitalization… at the end a topic only forspecialists (IT…) and too lessconnection with the market… consequent integration within thestrategy (company, functions,regions…)… „parallel worlds“ to otherprograms and too less connectionto other topics… „systematic garbage disposal“ toget ressources for the new world… dissipating in too manyinitiatives… creation of a „coalition fordigitaliziation“ of the best employeesand managers… assigning the „wrong“ (new,unexperienced, overloaded…)… consequent adatpion of processes,interfaces and responsibilities… implementation of the new,digital world with theorganization of the old world81%91%97%69%81%88%59%56%72%97%44%81%Quelle: Stöger, R., Toolbox Digitalisierung, Stuttgart 2017.© Roman StögerCore topics for digital development74Quelle: Stöger, R., Toolbox Digitalisierung, Stuttgart 2017.1 willingness to change having a scenario of „new world“: markets, customers, competition, products, change from the „old world“ to theservices, (information) technologies…2 customer value clear view of What is the customer paying us for? customer value in the „new world“, esp.:3 renewal further development and innovation services of our products and4 productivity creation of lean, fast, flexible processes5 new technologies using the advantages of connection…) (information-) technologies (data,6 competences new approaches for development for the „new world“ personnel- and management7 „systematic garbage disposal“ consequent processes… to get resources for digitalization stop of overcome activities, businesses,8 strategy for digitalization consolidation of all topics as objectives and key initiati digital implementation program ves – a© Roman StögerDigitalization will definitely NOT changethe rules of business…751. solid market position2. convincing customer value3. market oriented innovation performance4. permanent improvement of productivity5. high attractiveness for good employees and managers6. solid liquidity, financial stability and self financing7. enough profitability for investing in future8. a well established culture of performance and trust9. competent management as basis for resultsQuelle: Stöger, R., Toolbox Digitalisierung, Stuttgart 2017.8. LITERATURE© Roman StögerLiterature77Ansoff, I., Corporate strategy, New York.Beer, S., Diagnosing the system for organizations, Chichester.Chandler, A., Strategy and structure, Cambridge.Drucker, P., Management – Tasks, Responsibilities, Practices, Oxford.Drucker, P., Sinnvoll wirtschaften, Düsseldorf.Fogg, C., Implementing your strategic plan, New York.Gälweiler, A., Strategische Unternehmensführung, Frankfurt.Hammer, M. / Champy, J., Business Reengineering, Frankfurt.Harvard Business School, On Strategy, HBR`s 10 Must Reads, Boston.Hinterhuber, H., Strategische Unternehmensführung, Berlin.Hoffmeister, C., Digital Business Modelling, München.Kaplan, R. / Norton, D., The Execution Premium, Harvard.Kotler, P., Grundlagen des Marketing, München.Kotter, J., Leading Change, Boston.Malik, F., Führen Leisten Leben, Frankfurt.Malik, F., Navigieren in Zeiten des Umbruchs, Frankfurt.Malik, F., Strategie, Frankfurt.Malik, F., Unternehmenspolitik, Frankfurt.Mintzberg, H., Strategy Safari, Frankfurt.Müller-Stewens, G. / Lechner, C., Strategisches Management, Stuttgart.Parnell, J., Strategic Management, London.Porter, M., Competitive advantage, New York.Porter, M., Wettbewerb und Strategie, München.Stöger, R., Die Toolbox für Manager, Stuttgart.Stöger, R., Die wirksamsten Management-Werkzeuge, Stuttgart.Stöger, R., Innovationsmanagement für die Praxis, Stuttgart.Stöger, R., Produktivitätssteigerung und Ergebnisverbesserung, Stuttgart.Stöger, R., Prozessmanagement, Stuttgart.Stöger, R., Strategieentwicklung für die Praxis, Stuttgart.Stöger, R., Toolbox Digitalisierung, Stuttgart.Ulrich, H., Gesammelte Schriften, Bände 1 bis 5, Bern.
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