Managing And Leading Change

Managing And Leading castrate Ashland part Study Assignment Comp some(prenominal) mount Ashland Inc is a Fortune 500 and Standard and Poors (SP) Midcap 400 political party, providing specialised chemic, technologies and insights by means of Ashland Aqualon Functional Ingredients, Ashland Hercules amniotic fluid Technologies, Ashland Performance Materials, Ashland Consumer Markets (Valvo line of merchandise) and Ashland Distribution. The firm has operations in much than than 100 countries landwide.In 2010 the political partys revenue equated to $9bn, but its beginnings in 1924 were far much humble and it has been though many transforms since it was founded in 1924 as part of the down arm of the Swiss Oil ships smart set, and it was then known as the Ashland civilisation Company. The company takes its name after the town of its inception, namely Ashland, Kentucky in the fall in States. In 1936 both companies integrate and Ashland General Manager, Paul G. Blazer, be came the newly merged companys president and the company achieved $4.8m in sales, and by the entry of the United States into the second World War they had grown to $12m. During the period a new refinery is strengthened at Catlettsburg to produce aviation fuel. After the war the Ashland brand is developed, and products be sold under the companys name. This enables sales to foster rise to $20.4m, and the company makes b arly strides in 1950 by acquiring the Freedom-Valvoline Oil Company and the contributed to a merely boost to sales by 900 per cent. By 1959 the Valvoline brand had begun to reach the crystallize of the lubricants world, thanks to an increase in the firms growing domesticateforce, advertising campaigns, investments in understructure and it is highly featured in motorsport to this day. The growth in its petro-chemicals parentage guide to further growth, lead story to the acquisition of R.J Brown of St. Louis, Montana and sales grew to $280m. However, in 1966 the company alter and it purchased Warren Br other(a)s and Ashland Paving And Construction Inc. was born. The firms sales reached $699 billion as a result of this acquisition. Furtherto a greater extent the company continued to clear by mental act during the 1960s with the acquisition of ADM chemic Group and the formation of Ashland Chemical, making Ashland a leading chemical supplier. In 1969 Ashland Petroleum was form, a year after the company had reached the milestone of having achieved an annual revenue of $1bn. However, the company further diversified and it enters into the coal-extraction market with the launch of the Arch-Mineral voice venture. The following year the companys name is pitchd further to gaining deal outholders support, and it became Ashland Oil. It in any case purchases a refinery, adding the SuperAmerica petrol station and convenience store cooking stove to its holdings. The next milestone appears in 1986 with the establishment of Valvoline Instant O il transpose, which provided a service for lubricating vehicles crosswise 70 units. Since then it has bring forth the second-largest franchised quick lubrication business in the US, and it can be found at 870 locations. The table below, harmonize to the company, shows its other important milestones Year Event 1992Ashland acquires most of Unocals chemical dispersion business, becoming North Americas leading distributor of chemicals and solvents1994Zerex vehicle antifreeze and coolant, the No. 2 brand in the U.S., is added to the Valvoline product line-up. Sales reach $10.3 billion.1995Shareholders approve changing the companys name to Ashland Inc. to better reflect our diverse operations. This same year, more than $368 gazillion is invested in 14 acquisitions to strengthen related energy and chemical businesses.1998Ashland and battle of Marathon Oil merge their petroleum better and marketing assets into a joint venture. Eagle One auto appearance products join the Valvoline br and line-up.1999Ashland celebrates its seventy-fifth anniversary. The company relocates its psychequarters from Ashland, Ky., USA, to Covington, Ky., USA, adjacent to Cincinnati, Ohio, USA.2002Ashland introduces Envirez resin, the first commercially available unsaturated polyester resin containing a significant quantity of renewable materials.2004Ashland reorganizes into two sectors, Chemical and Transportation Construction. This lays the foundation for the companys transformation into a world(prenominal) specialty chemical company.2005Ashland divests its joint-venture oil and refining business to partner Marathon Oil, and also acquires railroad car Brite, a leading marketer of professional auto reconditioning products. Sales are $9.3 billion.2006The transformation into a specialty chemical company continues. North western Coatings, a technical leader in the development of innovative Waters-based and energy-curable adhesives and coatings, is acquired and Ashland Paving And Constr uction, Inc. is sold.2008Ashland acquires Hercules co-ordinated in a $3.3-billion transaction. The deal moves us into the top tier of spheric specialty chemical companies.2009The Nanjing Technical Center opens in China. The applications lab supports customers in the coatings, construction, energy, food, mortalal care and industrial specialties markets. Sales reach $8.1 billion.2010Natrosol hydroxyethylcellulose rolls off the line at a new plant in Nanjing, China. Ashland launches a orbicular joint venture in foundry chemicals with Sd-Chemie AG and announces plans to wander Ashland Distribution in 2011. 2011Ashland and our people continue to set the standard for great chemistry and all of the great things it creates around the world.Table data pedigree Ashland Inc. Ashland vision, mission, judges and operating principles The firm aims to be a leading global specialised chemical company by inspiring and engaging with its employees and adding value to eitherthing it does. The company describes its mission as follows We satisfy our customers by delivering results through whole tone chemical products and services. Our desire to grow drives our passion to win in the marketplace. With a unified, low-cost operating structure, strong remain competitive across e really business and in every geographic region.The following are its set and operating principles Our Values Who we areWe act with integrity and honesty.We focus on customer and shareholder success and compete to win.We recognize each person for the difference he or she makes.We drive innovation and results by taste the market and its opportunities.We are committed to the values of responsibility, sustainability and transparency.We create safe and health-conscious work environments, require compliance and embrace environmental stewardship. Our operational Principles How it happens We operate in compliance with the law and adhere to high ethical standards.We assess the force on customers and socie ty when making decisions.We are externally focused. Our businesses are outlined by markets.We are process-centred. Our processes are designed to optimize global performance.Ashland leading are first responsible to Ashland and second to a business, resource grouping or process.We are led by an Executive Committee that enforces our principles, sets our outline and manages our capital.We are united by our common vision, mission, values and operating principles. Case Study Background Ashland Incs earnings were off track in 2002. The company was also troubled by high levels of redundancy and operating be throughout its business groups. The annual net results were also lower than the companys share value. Even though the company has evidently gone through a number of transformations and evolutions since 1924, the vice-president of HR at the clock time felt that the firms troubles because it had turned it into a veer-averse establishment. thither was apparently no desire for swop, and this person felt that as a company they didnt do it well. Doing something different was thought of as alteration. surrounded by 1998 and 2003 Ashland had gone through a resource group restructuring exercise, relocated its head office, sold its oil exploration business, and it engaged in marketing and refining joint ventures. Dwight King, Ashland Chemicals President for HR, said that in that respect was a lot of rubble left behind, which led to unwanted turnover and reductions in performance. As our precedent VP of HR would say, a lot of wreckage results from somehow not executing our plans decent, he said before explaining that the elements of a previous failure were impacting badly on the business. There was also a new and critical suffer on the table, and the leadership group recognised that they were not being very efficient due to a lacking of understanding of what it means to be potpourri leaders. Dwight therefore felt that he was about(predicate) to watch some other car accident occur. What was missing was not the what and why, but the how to metamorphose the organisation for the better. So in 2003 the firms senior executives recognised that they hadnt win overd focussing as well as they could have done. So the organisation was nearly broken when the company tried to utilize its first Enterprise Resource Planning form in its distribution unit, and this led to a shut down of west coast operations. The effectuation hadnt gone as well as everyone had expected. Change was therefore vital, and so Dwight initiated a change anxiety programme. The company considerful to build change into the organisation as a competency. The objectives were to retro-fit several of its major initiatives to a change focusing methodology, integrate be sick and change focal point, to create a educational activity curriculum and to build competencies at heart the following groups managers, supervisors, practitioners, total project squads and employees . He recognised that this had to start from the top of the organisation, and so he arranged an executive briefing with all of the firms business unit presidents. He succeeded in gaining sponsorship for his initiative at the meeting. The programmes focused on HR, project managers and the distribution leadership aggroup. By 2005 this had created tremendous momentum, including the adoption of change instruction terminologies and a new change focus near. However, the first investments in change occurred in 2004 when Dwight facilitated a conversation with the chemical sector leadership team. He asked them a number of questions to find out where the company should be in louver years time, and what it should look like. The discussion also give outd, from that particular hypothetical perspective, how the company got there, and what they would have to do to arrive at their perceived destination. There was also some in-depth discussion about the obstacles theyd face and how they would o vercome them. The cosh implementation moved forward too. It was now fully implemented, and Ashland formed its internationalOne project team for SAP to begin a worldwide roll-out. Dwight convinced the SAP project manager that he needed to include a change management element in its deployment. In fact he said that change needed to go well beyond that which was defined by the SAP consultants. There were plenty of people who gave lip-service to the word change, including the consultants, two of the largest consulting firms in the world, said Dwight. He added that their idea of change involved documenting the new physiological competencies of change around what new buttons you had to push, what new levers you had to pull, what new screens you were seeing in indian lodge to enter or bill an order, or service an account. There was no understanding about the resistance that would be created by any change programme implementation their views didnt even consider the creation of a body of knowledge about expectations and then reinforcing them through genteelness. This meant that there would need to be some systems training in place, and so a change management consultant was hired for the GlobalOne team. Previously they had implemented SAP Global One in Canada, and even though there was a ripe(p) change management plan in place, some issues arose. The trouble was that the assets were tho there for just two weeks, and then the team left to implement it in the US. Out of this situation came the realisation that you need a commit change management structure within the project to make surely that it succeeds. It was also recognised that certain people were needed in order to be responsible for the change effort. Around the same period the company implemented an organisation-wide rewards scheme, called Total Rewards, which redesigned the firms salary and incentive schemes. This migrated the company to a sensation incentive scheme. Previously each group had had their own. Ashlands CEO and Board Chairman, Jim OBrien, was introduced to the change leadership tools, and he used them to identify the champions within the company. Working collaboratively with HR and Communications he developed a strategy to target the change sponsors. It went incredibly well, said Dwight before adding that it was fraught with potential landmines and we preoccupied most of them, so Jim, our CEO, became an advocate for change competency.They also adopted a change management methodology and 150 people go outed a workshop. The companys distribution managers and projects leaders, upon participating in the workshops, thought that they had at last afflicted on what change was all about. Subsequently this marked a change in Ashlands deployment strategy. There was no longer a requirement to hold change management to one project at a time. An enterprise-wide approach was sanctioned by OBrien instead, and he selected Hank Waters to be the Ashland Enterprise Change Management Executive sponsor. Dwight King and Hank Waters then set about creating an organisational structure and identified key players within the ECM Deployment squad.The ECM Deployment Team was created in May 2006, and it began to implement the change management programme across the company from this point. While Hank Waters was at its leader, the team also include Pam Yost, Carol Chistobek, Jerry Prochko, Lisa Ireland, Mark Lambeth, Stacy Dunbar and Vondar Melton. An ECM direct Committee was also formed to provide oversight for the ECM Deployment team, and it became an important catalyst for driving change further into the organisation. Two members of the team also undertook a course to become change management trainers in a change management methodology. The Steering Committee included heads of HR, Corporate Communications, IT, EHS and two business unit leaders. Its direct was to provide direction to the change management programme. Together they achieved substantial change between 200 3 and 2008, and the company made significantly more inroads than it had done antecedently to achieve their vision to construct a platform for growth. This exercise was tell across the globe, and it was helped when a former business unit head and a member of the ECM steering committee, Peter Rijneveldshoek, became president of Ashland Europe. He pass on that all members of the 200 plus European management team attend change management training in preparation for the SAP implementation. Dwight says that the company lost momentum at one point due to base a key executive from change management deployment over to Ashlands Waters division, but the aim was to make change part of the organisations DNA. Therefore European project leaders were also required to undergo change management training. However, this was more embedded in the US more than in Europe. The training also occurred with project managers in China. In April 2007 a series of assessments were conducted, and there were also a number of professional development sessions held with the 12 members of the Operating Committee and the CEO. The aim of the assessments was to help the senior executives to understand the true significance behind sponsorship of change, and it gave them an insight into how they were fulfilling their roles. Coaching sessions followed these ones, and sponsorship development roadmaps were created to enable the leadership team to develop their skills as sponsors of the change management programme. The project was deemed to be victorious with 95% of the participants in a survey about the change management programme reporting that the training and tools helped them to provide support for their employees during the SAP EMEA implementation. An online training course was also provided, and 331 employees took part in it. Again 96% hold strongly or just agreed that the course had been worth the time it took to take it. However, at one point it was felt that the ECM team required another 6-1 2 months to ensure that 90% of the organisation would be more change-ready. Problems arose due to members of the team being moved to more permanent roles within other parts of the organisation. Nevertheless, change became more part of Ashlands dictionary than it was previously, and more awareness of what change means was created. TASK You are a change management consultant whose been asked to come into Ashland to assess the companys change programmes. Critically analyse and evaluate the success of the programme mentioned in the case study, consider other approaches that the firm could have taken, and think about what recommendations for change youd make for 2011 ahead based on the your knowledge of the companys history and previous change management efforts. Use the information contained in the case study, plus further first and secondary research to form your assessment of Ashlands future strategic direction and explain how it will need to adopt new change management programmes. Consider all of the aspects of Managing and Leading Change that were discussed in your lectures, including the theoretical models and approaches to managing, leading and implementing change within an organisation. Compare your approach to the one taken by Ashland between 2003 and 2008, and explain how you would measure the success of your change management programme. For example, which prosody should Ashland be using to assess the success of its change programmes?