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Large-scale transitional procurement change in the aerospace industry

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Abstract

The importance of a socialised perspective when involved in a change programme is demonstrated through an empirical study of large-scale purchasing transition in an aerospace company. Alternative change management frameworks are employed to assist in the sense making of intended actions and realised outcomes to re-configure purchasing activities. Sequential stepwise frameworks are critiqued showing the context-driven political and social factors that impinged on the implementation of a planned change strategy. The findings illustrate the complexity of change, and conclude by highlighting the importance of synthesising shifting contexts with action.

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... The other reason is what sequences and events never tell: Changes and events in the PSM function often occur at different levels and different times, compared to other organizational events. Variations can be attributed to a number of factors including: The reporting level of the PSM function (Pearson et al. 1996;Day and Atkinson 2004), alignment of organizational goals and PSM goals (Johnson and Leenders 2004) or in some cases, type of culture in which the PSM function is embedded (Rajagopal and Bernard 1994). This fundamental aspect of Matthyssens et al. (2003:322) propose a model of global purchasing change implementation. ...
... Second, they suggest that progression in international purchasing requires companies Bto balance the drivers for internalizing their supply networks against the inhibitors they might encounter while doing so^. Next, Day and Atkinson (2004) show that implementing change in PSM is a non-linear and unstable process; preconceived change models do not capture the social processes in which structural changes occur. Finally, Tchokogué et al. (2011) map ongoing change in supply structures over a period of time. ...
... Although the processual approach was the dominant method used in this study, which is consistent with studies of Day and Atkinson (2004) and Tchokogué et al. (2011), we gathered both historical and retrospective data as well as current data. The actual act of offshoring occurred in the past (during spring 2009) and the data collection began in the fall of 2011. ...
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Many companies have resorted to offshoring in order to reduce costs and grow their global market presence. Yet it remains unclear what impact the offshoring strategy has on the purchasing and supply organization (PSO) of these companies. In this paper the nature and type of changes offshoring organizations make within the PSO are examined, i.e. how new purchasing and supply management (PSM) structures and practices emerge, are maintained or are discarded as production operations are relocated. The processual perspective is used to analyze empirical data from a rich, in-depth case study within a global engineering company. Results suggest that in line with the law of requisite variety the PSO changes thoroughly when the company relocates its production activities through the captive offshoring mode, but does so in a more disjointed and non-linear manner than the current stage models would suggest. The offshoring process provides momentum for PSO change and influences where and how the change happens. We present five propositions for further research and conclude that offshoring provides managers with opportunities to: (i) change and influence the strategic direction of PSM in their organizations, and (ii) build viable strategies of retaining and managing knowledge and PSM competencies in global operations.
... Some case studies of changes managed using Kotter's process do stand out (e.g. Springer et al. 2012;Lintukangas et al. 2009;Day and Atkinson 2004;Ansari and Bell 2009;Joffe and Glynn 2002), and it is to this small but important literature to which this research contributes. This research critically examines how Kotter's (1996) eight stage process of creating a major change has been used to manage an organisational change; a process that despite its popularity, has rarely been studied in the academic literature. ...
... Perhaps this was the case, although without specific comment to this effect it is not possible to say. The Process was also used to facilitate change in an aerospace industry study presented by Day and Atkinson (2004). In this case, the process was used as a planning tool and to communicate the nature of the change to procurement functions in the early stages of the change program. ...
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Kotter’s eight stage process for creating a major change is one of the most widely recognised models for change management, and yet there are few case studies in the academic literature that enquire into how this process has been used in practice. This paper describes a change manager’s action research enquiring into the use of this Process to manage a major organisational change. The change was initiated in response to the organisation’s ageing workforce, introducing a knowledge management program focusing on the interpersonal aspects of knowledge retention. Although Kotter’s process emphasises a top-led model for change, the change team found it was necessary to engage at many levels of the organisation to implement the organisational change. The process is typically depicted as a linear sequence of steps. However, this image of the change process was found to not represent the complexity of the required action. Managing the change required the change team to facilitate multiple concurrent instances of Kotter’s process throughout the organisation, to re-create change that was locally relevant to participants in the change process.
... A great deal of attention is given to strategies to increase community college graduation rates (Calcagno, Bailey, Jenkins, Kienzl, & Leinbach, 2008), to scaling up reform efforts (Coburn, 2003), and to improving outcomes in STEM education in community colleges (Dowd, 2012). Unique to this project is the focus on bottom-up change spurred by faculty who are often Unlike those who are well-established with authority, power, and roles and already involved in the process of change and transitions (Day & Atkinson, 2004), faculty members at 2YCs often assume a less privileged position than formal positional leaders, which challenges assumptions made in many change models about the importance of controlling resources and exerting influence. Operating within their classes and often also with relatively small groups of peers, community college faculty have limited visibility on campus and often also choose to distance themselves from institutional power, engaging in what is known as proximal leadership (Nicolaides et al., 2014). ...
... The role of corporate culture has been amply documented as a key success factor of change (Aguirre et al., 2017;Day & Atkinson, 2004). It includes the implicit, informal beliefs, norms and values strongly held, shared and promoted in the organization that guide the behaviour of individuals (O'Reilly, 1989;Scholz, 1987). ...
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Many digital transformation initiatives of traditional firms fail. This research proposes a framework that identifies the need for corporations willing to transform, to look beyond technology. This research moves beyond the firm-wide level recommendations to increase the likelihood of success of digital transformation initiatives. It focuses on two dimensions of corporate transformation: governance and culture, and analyzed across four identified stages of digital transformation, Discovery, Development, Demonstration, and Deployment. It identifies specific challenges at each of the identified stages. Therefore, it provides a useful structure for academics to further explore the challenges of digital transformation in firms and for corporate leaders to increase the likelihood of success to transform and capture the opportunities offered by artificial intelligence.
... Most studies on collaboration and integration in the supply chain focus on the interorganisational level of the project or on the supply side (Andersen and Rask, 2003;Day and Atkinson, 2004), rather than the internal organisation of the client. Moreover, research on purchasing strategies in the construction industry mainly focuses on the characteristics of a specific type of integrated project delivery method (Salcedo Rahola, 2015;Mesa et al., 2016), rather than the use of several parallel collaborative approaches (Oyegoke et al., 2009). ...
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Purpose The purpose of this paper is to address the barriers that Dutch housing associations encounter in implementing new procurement strategies. Design/methodology/approach Several aspects of purchasing, portfolio management, project delivery and supply management are discussed in relation to the changing role of housing associations as semi-public commissioning bodies in the Dutch construction industry, based on data derived from workshops with six Dutch housing associations. Findings Housing associations are adapting their procurement strategy towards a more integrative and performance-based approach to supply management. Due to the complexity of implementing this process, housing associations struggle especially with moving beyond pilot projects, increasing the maturity levels throughout the organisation and aligning new policies with daily practices at a tactical and an operational level. Practical implications Increased knowledge of change processes and seeing the potential of maturity models will be valuable for practitioners who are dealing with changes on the work floor. Social implications Client organisations are considered one of the key drivers of change in the construction industry. Insights into these particular organisational change processes contribute to the potential of industry reform. Originality/value Most studies on collaboration and integration in the supply chain focus on the inter-organisational level or on the supply side, rather than the internal organisation of the client.
... In addition to the abovementioned models, the most used model is Kotter's (1996Kotter's ( , 2007 framework. Originally developed in 1995 (Kotter, 1995) and published again in 1996 (Kotter, 1996) following a rigorous analysis of the change implementation approaches and subsequent management failures of one hundred different organizations, this model has been extensively tested by other researchers (Ansari & Bell, 2009;Casey, Payne, & Eime, 2012;Day & Atkinson, 2004;Goede, 2011;Gupta, 2011;Joffe & Glynn, 2001;Lintukangas, Peltola, & Virolainen, 2009; Nitta, Wrobel, Howard, & Jimmerson-Eddings, 2009; Sidorko, Table 1 Kotter 's (1996) model. ...
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Although previous studies have highlighted the importance of implementing corporate entrepreneurship to foster innovation within organizations, little emphasis has been placed on examining the concept from a change management perspective. In an attempt to bridge this gap, the current study aims at understanding the mechanisms and tools that top managers can use in order to involve internal stakeholders in driving a change process to adopt a corporate entrepreneurship strategy. The paper discusses the findings that emerged from an exploratory study carried out within “Poult”, a French biscuit manufacturer, which has embarked on an organization-wide effort to instil a culture of corporate entrepreneurship. The findings are examined in the context of stakeholder theory and Kotter's (1996) change model with a focus on the importance of internal marketing strategy during the change process. The contribution of managerial and organizational mechanisms towards fostering corporate entrepreneurship are highlighted.
... There is broad support for the efficacy of the process in the literature (e.g., Cegielski et al. 2006, p. 311;Ansari & Bell 2009, p. 160). Several case studies can be found in the literature of changes that have been managed using Kotter's process (e.g., Ansari & Bell, 2009;Day & Atkinson, 2004;Joffe & Glynn, 2002;Lintukangas et al., 2009;Springer et al., 2012), and the process has frequently been used as a framework for post hoc analysis of why changes have, or have not, been successful (e.g., Casey et al., 2012;Goede, 2011;Gupta, 2011;Nitta et al., 2009;Sikorko, 2008;Smith, 2011;Yauch & Steudel, 2002). ...
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Introduction Organizational project management can generally be considered to be the management of initiatives that contribute to the achievement of strategic objectives (Chia, 2013), involving the multilevel integration of portfolio management, strategic alignment, and governance issues (Aubry et al., 2007). It has also been described as an integration of project-related work throughout the hierarchy of an organization (Drouin et al., 2016). It can be argued that all projects involve an element of organizational change, as the larger organization expands and contracts around an internal temporary project organization. For example, Hornstein (2015) commented that “… change is an inevitable consequence of project implementations, and how the change is ‘managed’ impacts how successful the project will be” (p. 295). Söderlund (2010) identified that there are an increasing number of business projects that involve some element of change. Change is a fundamental part of organizational project management, and although in some cases the products of a project may be effectively distinct from the delivering organization, this is rarely the case in organizational project management. Both project management and change management have a role to play in the management and delivery of organizational changes. Many authors have identified the potential ways in which these two management disciplines can potentially collaborate to deliver organizational changes (Leybourne, 2006; Boddy & Macbeth, 2000; Levasseur, 2010; Pádár et al., 2011; Winch et al., 2012; PMI, 2013a). Parker et al. (2013) have stated that using a project-based approach is a business imperative, as it increases the chances for the success of organizational changes, while Hornstein (2015) has made a case for change management to be a fundamental part of the training of project managers, commenting that “… they are complementary and mutually supportive disciplines that contribute to the successful implementation of a wide variety of projects” (p. 295). It has also been identified that “Rigorous change management practices are essential for a standardized organizational project management practice…” (PMI, 2013a, p. 1). This suggests some need to integrate these approaches. Differences between the Disciplines Although there are an increasing number of advocates for greater unity between project management and change management, they are traditionally perceived as separate ways of delivering organizational changes. Practitioners are commonly associated with one discipline or the other, with a minority crossing this professional boundary.
... The process is top-led [29:12, 30:258]. The process is generally considered to be effective [31:160] and case studies of its use are apparent in the literature [30][31][32]. ...
... Review of the literature revealed only a few studies that examine the application of Kotter's process (e.g. Joffe & Glynn 2002; Day & Atkinson 2004; Ansari & Bell 2009; Lintukangas et al 2009; Springer et al 2012; Pollack & Pollack 2015), and in most of these cases the examination of Kotter's process remains more descriptive rather than critical. The majority of papers that make reference to Kotter's process do not present research on how the process can be used to effect organisational change. ...
Article
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This paper reviews the different ways that academics and practitioners write about and discuss change management, to develop an understanding of whether there is a divide between the theory and practice of change management. This research used scientometric research techniques to compare three corpora: one based on the most cited research in the general management literature on change management; one based on the most cited research in specialist change management journals; and one based on interviews with practising change managers. It was found that the general management literature emphasised an abstract understanding of knowledge management and the learning organisation, while the change management literature focused more on issues associated with value, culture and social identity. The practitioners emphasised issues at the individual, project and team levels, the need for the effective use of targeted communication to achieve organisational change objectives, and the value of rapidly identifying key drivers in a new context. This research found significant differences between these three corpora, which lends support to other researchers’ claims of a divide between theory and practice in change management.
... This is characterized by the commercial airframe manufacturers giving their 1 st tier of selected suppliers directly below them, responsibility for complete systems (Giunta et al., 2000). Day and Atkinson (2004), argue that high impact suppliers have to commit themselves to cost reductions for long term business relationships, and create a culture of continuous improvement. However, to gain competitive advantage, more proactive responses are required. ...
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The paper investigates three levels of learning-adaptive, reactive and expansive-for the transformation of knowledge to enhance innovation and competitive advantage in commercial aerospace supply chains. A perspective of supply chains as complex Activity Networks is used for data analysis based on in-depth interviews in a global setting. Themes for the interviews were identified through rigorous literature research. The paper provides evidence of levels of learning in commercial aerospace supply chains. We found that a) adaptive learning brings a supply chain up to present industrial standards only, b) reactive learning makes the supply chain competitive, and c) expansive learning gives the supply chain potential for competitive advantage. By considering supply chains as the interaction of different work activities, the forces of change can be better understood. The findings may be useful to practitioners in understanding the importance of different levels of learning to supply chain sustainability.
... Kotter's (1996) model is in many ways an archetype for managed change and provides an illustration of the prescriptive models available to practising leaders of change. It reflects the linear progression of tasks frequently captured in prescriptions for change and has had substantial influence in major change initiatives in both public agencies such as Centrelink (Halligan and Wills, 2008), and in private sector organisations such as Keele Aero (Day, 2004). Kotter's stages of change reflect a managerialist perspective within which change is represented as a linear progression based on managerial action. ...
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Chapter
Local authorities’ transport departments face extraordinary requirements regarding future mobility planning that affects and disrupts their internal business models and institutional logic in substantive ways. In this chapter, we highlight how organisational change can be implemented in local authorities to allow organisational capacity to increase and to enable employees to cope with the increasing expectations and requirements of future mobility planning. Our bottom-up approach is based on a socio-technical approach, taking into account both social (e.g., changing social behaviours or values) and technical aspects (e.g., new technologies). Applying Kotter’s Eight Stage Process, we outline the implementation process of organisational change followed in seven local authorities in Europe as part of the SUITS project. The multiple case study approach allows us to indicate the crucial points along the path towards organisational change and to provide a step-by-step guide for successful implementation of organisational change in local authorities. We provide best practice examples from our work that may help other European cities increase their organisational capacity and be prepared to cope with the extraordinary requirements in relation to future mobility planning.
Thesis
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The Ohio State Leadership Studies have been criticized on grounds that they lack a conceptual base, and fail to take situational variables into account. This article reviews the published literature involving the leader behavior dimensions “Consideration” and “Initiating Structure,” for the purpose of developing some situational propositions of leader effectiveness. Among the variables found by researchers to significantly moderate relationships between leader behavior predictors, and satisfaction and performance criteria are the following: subordinate need for information, job level, subordinate expectations of leader behavior, perceived organizational independence, leader's similarity of attitudes and behavior to managerial style of higher management, leader upward influence; and characteristics of the task, including pressure and provision of intrinsic satisfaction. The article concludes by presenting ten situational propositions, and linking them to form two general postulates of leadership effectiveness.
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The influence of history on an organization is a powerful but often overlooked force. Managers, in their haste to build companies, frequently fail to ask such critical developmental questions as, Where has our organization been? Where is it newt and What do the answers to these questions mean for where it is going? Instead, when confronted with problems, managers fix their gaze outward on the environment and toward the future, as if more precise market projections will provide the organization with a new identity. In this HER Classic, Larry Greiner identifies a series of developmental phases that companies tend to pass through as they grow. He distinguishes the phases by their dominant themes: creativity, direction, delegation, coordination, and collaboration. Each phase begins with a period of evolution, steady growth, and stability, and ends with a revolutionary period of organizational turmoil and change. The critical task for management in each revolutionary period is to find a new set of organizational practices that will become the basis for managing the next period of evolutionary growth. Those new practices eventually outlast their usefulness and lead to another period of revolution. Managers therefore experience the irony of seeing a major solution in one period become a major problem in a later period. Originally published in 1972, the article's argument and insights remain relevant to managers today. Accompanying the original article is a commentary by the author updating his earlier observations.
Article
Features include the selection and sampling of cases, the problems of access, observation and interviewing, recording and filing data, and the process of data analysis.
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Bibliogr. s. 214-217
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When sophisticated large organizations make significant changes in strategy, the approaches they use frequently bear little resemblance to the rational-analytical systems so often touted in the planning literature. Such systems are rarely the source of overall corporate strategies. Instead, the processes used to generate major strategies are typically fragmented and evolutionary with a high degree of intuitive content. Although one usually finds imbedded in these fragments some very refined pieces of formal analysis, overall strategies tend to emerge as a series of conscious internal decisions blend and interact with changing external events to slowly mutate key managers' broad consensus about what patterns of action make sense for the future. Based on a multi-year study of how large companies change their strategies, this article summarizes why strategic managers do proceed incrementally and how they manage the complex process of generating an overall strategy.
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