Page 281 - Managing Change in Organizations

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Chapter 14 ■ Change architecture

■ What the perception was of the three factories and regional sales organizations as to
their financial reporting responsibility.
■ What ‘culture’ was predominant in the various financial departments.

The initial conclusions were as follows:
■ Local general managers were dissatisfied with management information.
■ Financial controllers reported reliably and promptly to the German head office but
received no feedback of any kind.
■ Each business unit had proceeded independently to develop local internal reporting
systems and software.
■ Rarely did financial controllers meet each other or visit head office.
■ Local computer managers knew nothing of developments elsewhere in the group.
■ There was little understanding by group management of local activities, traditions,
cultures, etc.
Rethinking the problem, the chief executive recognized the above as consistent with a
review he had undertaken of strategy as a whole, and management style in group
finance was part of the problem.
Too much emphasis on the detail, overmuch concern with involvement and a con-
cern not to ‘upset’ others suggest some of the problems Argyris (1990) refers to. The
appointment of a new chief financial officer (CFO) delayed progress because the imme-
diate priority was a series of pressing financial problems.
The next major step was for the CFO to visit group operations in Germany, Italy,
France, Spain, the UK, the USA and Canada to evaluate local hardware and software and
to identify aspects of local software which might be used more widely. From these vis-
its and subsequent discussion, a brief for a common integrated system was agreed,
including features such as modular design, European upgrades in facilities, tailored to
unit level, capable of being networked to local PCs and of remote access and supplied
on the basis of support and training available in local languages.

Focusing
Project groups were created to work toward solutions. Each was international in make-up

and each would have a make-up of people appropriate to the study tasks. The tasks
ranged from a review of the information needs of the sales organizations and the adapt-
ability of local systems to wider use to a review of local area networks and DOS applica-
tions. A senior manager was identified as project manager for the programme of change
now unfolding, with the study groups reporting directly, in turn reporting to the CFO.
All of this effort was creating a new recognition of the reality for information systems
design in the group including the following:
■ Each territory needed to be seen and see itself as part of an international group.
■ Needs were essentially local.
■ Recognition that skills and inputs came from throughout the group.
Subsequently the study groups reported to the next of the quarterly ‘global conferences’
organized by the group with all managing directors in attendance. Also examined were
problems of liquidity, profitability, marketing and supply.

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