Change Leadership Watch
14.7K views | +1 today
Follow
Change Leadership Watch
How change happens and who is leading it.  For the BEST of the BEST curated news SUBSCRIBE to our monthly newsletter via  Reveln.com/Tools/ (We never SPAM!)
Your new post is loading...
Your new post is loading...
Scooped by Deb Nystrom, REVELN
Scoop.it!

Toyota's Relational Contracts and the Decline of General Motors — HBS Working Knowledge

Toyota's Relational Contracts and the Decline of General Motors — HBS Working Knowledge | Change Leadership Watch | Scoop.it
What led to General Motors' decline? Long regarded as one of the best managed and most successful firms in the world, its share of the US market fell from 62.6 to 19.8 percent between 1980 and 2009, and in 2009 the firm went bankrupt.


________________
   
Toyota's practices were rooted in ...effective relational contracts-- ...based on subjective measures of performance ...enforced by the shadow of the future. 

________________
   

The authors argue that the conventional explanations for GM's decline are seriously incomplete...and make the case that one of the reasons that GM began to struggle was because rival Toyota's practices were rooted in the widespread deployment of effective relational contracts-- agreements based on subjective measures of performance that could neither be fully specified beforehand nor verified after the fact and that were thus enforced by the shadow of the future.

GM's history, organizational structure, and managerial practices made it very difficult to maintain these kinds of agreements either within the firm or between the firm and its suppliers.

...Two aspects of GM's experience seem common to a wide range of firms.

First, past success often led to extended periods of denial: Indeed a pattern of denial following extended success appears to be a worldwide phenomenon.

Second, many large American manufacturers had difficulty adopting the bundle of practices pioneered by firms like Toyota. 
   
See a companion piece, also referencing GM in Deb's comments in Change Management Resources ScoopIt newsletter:  

Moving Beyond Hierarchy - What is Working Now to Lead Through Change?

 

Deb Nystrom, REVELN's insight:

Denial of change after a long success, and failure to adapt to the new?  The cited Harvard working paper by Susan Helper and Rebecca Henderson gives implications of GM's history in looking at efforts to revive American manufacturing.   

It may not be news, yet it may be a good reminder to anyone under 50 employed by a legacy company like GM based on years of success, followed by decline.  


By the way, I'll be presenting with Ron Koller at the Michigan Labor Management Association conference on April 10, 2014 

Michigan: What’s in it for Me? “Why WE Makes Sense”
The Michigan Labor Management Association (MLMA) Partners in Progress Conference
Kellogg Conference Center

More information is here on my speaking events page.  


~  Deb    
 

more...
No comment yet.
Rescooped by Deb Nystrom, REVELN from EPIC Infographic
Scoop.it!

Leading the Continuous Innovation INFOGRAPHIC: Culture, Fringe Experiments, Customer Immersion

Leading the Continuous Innovation INFOGRAPHIC: Culture, Fringe Experiments, Customer Immersion | Change Leadership Watch | Scoop.it

How can change leaders support high performance, innovative teams? The infographic below cites 10 innovation strategies.  This is close.  There will be more of these process charts and innovation graphics.  


This one features:


Step 2:  Working at the organization's edges, the fringe & close to customers (I've heard Dr. Jeff DeGraff talk about fringe teams this year.)


Step 3:  Culture that  supports experimentation, failure.  This is ubiquitous in mention, scarce in after-the-fact reporting.  Better known examples, 3M (Post-Its) and Google (Google Lab: Buzz, Wave, etc.)


Step 6: Customer immersion, pain points


Step 10:  Metrics, measures

 

Sources include:  Christensen & Raynor, The Innovator's Solution: Creating & Sustaining Successful Growth, 2003  


Note the continuous improvement language, adjusted slightly, a 'la W. Edwards Deming:  Ready, Aim, Fire, Adjust.  Like Plan, Do, Check, Act.


Via Jonha Richman
more...
No comment yet.
Scooped by Deb Nystrom, REVELN
Scoop.it!

5 Factors and Tools to Predict Change Success, AKA Adoption of Your Business Initiative – VinJones

5 Factors and Tools to Predict Change Success, AKA Adoption of Your Business Initiative – VinJones | Change Leadership Watch | Scoop.it
The excerpted post below is part of a two part series that offers change and innovation adoption rate tools.


What I like about Kevin's 2-part series is that it is not about the unconvincing ROI, return on investment metric. It is about the powerful effect of stories, examples and case studies that inspire and "spark ...imagination.


His first post focuses on the five (5) factors to use to predict the rate of adoption. The second post offers tools and templates to give you an adoption rate measurement.

___________________________


Contrary to popular belief, an ROI will not convince them. ...it is stories and examples and case studies which spark their imagination. ~ Kevin Jones, vinJones.com

___________________________


Also keep in mind that change and innovation are quite different from each other. This is particularly highlighted in our two curation streams: Innovation in Institutions, Will it Blend? and the one you are reading, Change Leadership Watch.


We are also highlighting Kevin's tools on CMRsite.com, a non-partisan change management resources site.


Excerpts:


The Adoption Index
One of my favorite books is Diffusion of Innovations by Everett M. Rogers. Although this largely academic book was originally written in 1962, it hasn’t lost any of its usefulness. It explains why innovations and technologies are adopted, or not, and at what rate.


1)“Relative advantage is the degree to which an innovation is perceived as better than the idea it supersedes."


The degree of relative advantage may be measured in economic terms, but social prestige factors, convenience, and satisfaction are also important factors.”


2)“Compatibility is the degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters.


3)“Complexity is the degree to which an innovation is perceived as difficult to understand and use.”


Read the full post for all five factors and the link to part 2 of the series that offers adoption rate tools.



via vinjones.com

more...
No comment yet.