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THEME PAPER
REPORT
ON
STUDYING ORGANISATIONAL CHANGE IN APPLE INC.
SUBMITTED BY:
K. Jisha Balakrishnan
FPB1113/001
Under the Guidance of
Prof. Sowmya C.S.
Indus Business Academy, Bangalore
On
5th
May, 2012
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ACKNOWLEDGEMENT
I sincerely acknowledge the help received from various persons and
sources in collecting datas and information in completing this
satisfactory Project.
The paper is entitled STUDYING ORGANISATIONAL CHANGE IN APPLEINC.
I would like to thank Prof. Sowmya C.S., my mentor, for giving me an
opportunity to do this project and for her valuable guidance in
successful completion of project.
I also thank our CEO, Mr. Manish Jain & our Dean, Dr. Subhash
Sharma whose perception & wisdomencouraged me.
Last but not least I would like to thank all the faculties of institute, my
parents and friends for their kind co-operation throughout the project.
All deserve my work and desire appreciation and gratitude.
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STUDENT DECLARATION
I, K. Jisha Balakrishnan,the undersigned, a student of Indus Business
Academy, Bangalore declare that this project report is submitted, in
partial fulfillment of the requirement during the Post Graduate
Diploma in Management (PGDM), at Indus Business Academy,
Bangalore.
This is my original work and has not been previously submitted as apart of another degree or diploma of another Business School or
University.
The findings and the closing remarks of this paper are based on my
personal study and experience.
Ms. K. Jisha Balakrishnan
FPB1113/001
Indus Business AcademyLakshmipura, Thataguni Post,
Kanakapura Main Road,
Bangalore-560062
Tel: +91-80-28435931/2/3/4
Fax: +91-80-28435935
Email:[email protected]
URL:-www.ibainternational.org
http://c/Users/jisha.b/AppData/Roaming/Microsoft/Word/-www.ibainternational.orghttp://c/Users/jisha.b/AppData/Roaming/Microsoft/Word/-www.ibainternational.orghttp://c/Users/jisha.b/AppData/Roaming/Microsoft/Word/-www.ibainternational.org -
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TABLE OF CONTENTS
ContentsEXECUTIVE SUMMARY .................................................................................................................................. 5
INTRODUCTION ............................................................................................................................................. 6
TYPES OF CHANGE ........................................................................................................................................ 7
STEPS INVOLVED IN CHANGE ...................................................................................................................... 10
KURT LEWINS THEORY ............................................................................................................................... 19
COMPARING JOHN KOTTERS 8 STEPS WITH KURT LEWINS THEORY ........................................................ 22
APPLE INNOVATION IS THE KEY ............................................................................................................... 23
OVERVIEW ................................................................................................................................................... 25
IMPLEMENTING JOHN KOTTERS 8 STEPS OF CHANGE .............................................................................. 26
REPRESENTATION OF KOTTERS CHANGE MODEL IN APPLE INC................................................................ 36
VISA OF APPLE ............................................................................................................................................. 38
CONCLUSION ............................................................................................................................................... 40
BIBLIOGRAPHY ............................................................................................................................................ 42
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EXECUTIVE SUMMARY
Change is the only constant."
Heraclitus, Greek philosopher
What was true more than 2,000 years ago is just as true today. We live
in a world where "business as usual" is change. New initiatives, project-
based working, technology improvements, staying ahead of the
competition these things come together to drive ongoing changes to
the way we work.
This theme paper is based on the above thought.
In here I have discussed what is change, how to implement change in a
big organization & be successful. I have taken the example of Apple
Inc. to describe the process of change.
This paper is purely based on secondary data, i.e. data obtained fromvarious sources. Here Im trying to study the organizational change
that took place in Apple Inc. & its indirect linkage to growth of the
company.
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INTRODUCTION
You have to work hard to change an organization successfully. When
you plan carefully and build the proper foundation, implementing
change can be much easier, and you'll improve the chances of success.
If you're too impatient, and if you expect too many results too soon,
your plans for change are more likely to fail.
Whether you're considering a small change to one or two processes, or
a system wide change to an organization, it's common to feel uneasy
and intimidated by the scale of the challenge. But, what is change?
Change is to move from the present state to a future or derived state.
Organizational Change is generally considered to be an organization-
wide change, as opposed to smaller changes such as adding a new
person. It includes the management of changes to the organizational
culture, business processes, physical environment, job design /
responsibilities, staff skills / knowledge and policies / procedures.
When the change is fundamental and radical, one might call it
organizational transformation.
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TYPES OF CHANGE
Organization-wide Change:
Examples of organization-wide change might be a major restructuring,
collaboration or rightsizing.
Usually, organizations must undertake organization-wide change to
evolve to a different level in their life cycle, for example, going from a
highly reactive, entrepreneurial organization to one that has a morestable and planned development. Experts assert that successful
organizational change requires a change in culture cultural change is
another example of organization-wide change.
Subsystem Change:
Examples of a change in a subsystem might include addition or
removal of a product or service, reorganization of a certain department
or implementation of a new process to deliver products or services.
Transformational Change:
An example of transformational (or radical, fundamental) changemight be changing an organizations structure and culture from the
traditional top-down, hierarchical structure to a large amount of self-
directing teams. Another example might be Business Process Re-
engineering, which tries to take apart the major parts and processes of
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the organization and then put them back together in a more optimal
fashion. Transformational change is sometimes referred to as quantum
change.
Incremental Change:
Examples of incremental change might include continuous
improvement as a quality management process or implementation of
new computer system to increase efficiencies.
Remedial Change:
Change can be likely to remedy current situations, for example, to
improve the poor performance of a product or the entire organization,
or reduce burnout in the workplace, or help the organization to
become much more proactive and less reactive, or address large
budget deficits.
Remedial projects often seem more focused and urgent because they
are addressing a current, major problem. It is often easier to determine
the success of these projects because the problem is solved or not.
Developmental Change:
Change can also be developmental to make a successful situation
even more successful. For example, expand the amount of customers
served, or duplicate successful products or services.
Developmental projects can seem more general and vague.
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Unplanned Change:
Unplanned change usually occurs because of a major, sudden surprise
to the organization, which causes its members to respond in a highly
reactive and disorganized fashion. Example, when the Chief Executive
Officer suddenly leaves the organization, significant public relations
problems occur, poor product performance quickly results in loss of
customers, or other disruptive situations arise.
Planned Change:
Planned change occurs when leaders in the organization recognize the
need for a major change and proactively organize a plan to accomplish
the change. Planned change occurs with successful implementation of
a Strategic Plan, plan for reorganization, or other implementation of a
change of that extent.
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STEPS INVOLVED IN CHANGE
We know that the change needs to happen, but one doesn't really
know how to go about doing delivering it. Where do you start? Whom
do you involve? How do you see it through to the end?
There are many theories about how to "do" change. Many originate
with leadership and change management guru, John Kotter. A
professor at Harvard Business School and world-renowned change
expert, Kotter introduced his eight-step change process in his 1995book, "Leading Change."
We look at his eight steps for leading change below.
Step 1: Create Urgency
For change to happen, it helps if the whole company really wants it.
Develop a sense of urgency around the need for change. This may help
you spark the initial motivation to get things moving.
This isn't simply a matter of showing people poor sales statistics or
talking about increased competition. Open an honest and convincing
dialogue about what's happening in the marketplace and with yourcompetition. If many people start talking about the change you
propose, the urgency can build and feed on itself.
What you can do:
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Identify potential threats, and develop scenarios showing whatcould happen in the future.
Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing
reasons to get people talking and thinking.
Request support from customers, outside stakeholders and industry
people to strengthen your argument.
Example The Tata Group is one of India's most successful and
prestigious business groups. Tata Steel is one of the keycomponents of the group and one of the most important
companies in India.
From its founding until the early 1990s Tata Steel was a classic
paternalistic employer. This was facilitated by economic conditions
that made India a producer's or seller's market. There was an
environment of scarcity, and people would be forced to wait until
something was produced. This was not an environment conduciveto competition or efficiency. It allowed Tata to take care of its
employees, but not to be a highly efficient competitive
organization.
During the 1990s the winds of change swept into India. Tata Steel
was forced to change its way of doing business in order to adapt to
the new era of competition. By the early 1990s Tata's technology
had become so outdated that the then Managing Director, Dr. Irani(MD), would joke that if they did not change their technology they
may as well convert Tata Steel to a museum of steel-making
history. This created a need for change & its urgency was easily
sensed by Jamshedji Tata.
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Step 2: Form a Powerful Coalition
Convince people that change is necessary. This often takes strong
leadership and visible support from key people within your
organization. Managing change isn't enough you have to lead it.
You can find effective change leaders throughout your organization
they don't necessarily follow the traditional company hierarchy. To
lead change, you need to bring together a coalition, or team, of
influential people whose power comes from a variety of sources,
including job title, status, expertise, and political importance.
Once formed, your "change coalition" needs to work as a team,
continuing to build urgency and momentum around the need for
change.
What you can do:
Identify the true leaders in your organization.
Ask for an emotional commitment from these key people. Work on team building within your change coalition. Check your team for weak areas, and ensure that you have a
good mix of people from different departments and different
levels within your company.
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Step 3: Create a Vision for Change
When you first start thinking about change, there will probably be
many great ideas and solutions floating around. Link these concepts to
an overall vision that people can grasp easily and remember.
A clear vision can help everyone understand why you're asking them to
do something. When people see for themselves what you're trying to
achieve, then the directives they're given tend to make more sense.
What you can do:
Determine the values that are central to the change. Develop a short summary that captures what you "see" as the
future of your organization.
Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five
minutes or less.
Practice your "vision speech" often.
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Step 4: Communicate the Vision
What you do with your vision after you create it will determine your
success. Your message will probably have strong competition from
other day-to-day communications within the company, so you need to
communicate it frequently and powerfully, and embed it within
everything that you do.
Don't just call special meetings to communicate your vision. Instead,
talk about it every chance you get. Use the vision daily to make
decisions and solve problems. When you keep it fresh on everyone's
minds, they'll remember it and respond to it.
It's also important to "walk the talk." What you do is far more
important and believable than what you say. Demonstrate the kind
of behavior that you want from others.
What you can do:
Talk often about your change vision. Openly and honestly address peoples' concerns and anxieties. Apply your vision to all aspects of operations from training to
performance reviews. Tie everything back to the vision.
Lead by example.
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Step 5: Empowering Others to Act
If you follow these steps and reach this point in the change process,
you've been talking about your vision and building buy-in from all
levels of the organization. Hopefully, your staff wants to get busy and
achieve the benefits that you've been promoting.
But is anyone resisting the change? And are there processes or
structures that are getting in its way?
Put in place the structure for change, and continually check for barriers
to it. Removing obstacles can empower the people you need to
execute your vision, and it can help the change move forward.
What you can do:
Identify, or hire, change leaders whose main roles are to deliverthe change.
Look at your organizational structure, job descriptions, andperformance and compensation systems to ensure they're in linewith your vision.
Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see
what's needed.
Take action to quickly remove barriers (human or otherwise).
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Step 6: Create Short-term Wins
Nothing motivates more than success. Give your company a taste of
victory early in the change process. Within a short time frame (this
could be a month or a year, depending on the type of change), you'll
want to have results that your staff can see. Without this, critics and
negative thinkers might hurt your progress.
Create short-term targets not just one long-term goal. You want
each smaller target to be achievable, with little room for failure. Your
change team may have to work very hard to come up with these
targets, but each "win" that you produce can further motivate theentire staff.
What you can do:
Look for sure-fire projects that you can implement without helpfrom any strong critics of the change.
Don't choose early targets that are expensive. You want to beable to justify the investment in each project.
Thoroughly analyze the potential pros and cons of your targets. Ifyou don't succeed with an early goal, it can hurt your entire
change initiative.
Reward the people who help you meet the targets.
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Step 7: Consolidating Gains & Producing More Change
Kotter argues that many change projects fail because victory is
declared too early. Real change runs deep. Quick wins are only the
beginning of what needs to be done to achieve long-term change.
Launching one new product using a new system is great. But if you can
launch 10 products, that means the new system is working. To reach
that 10th success, you need to keep looking for improvements.
Each success provides an opportunity to build on what went right and
identify what you can improve.
What you can do:
After every win, analyze what went right and what needsimproving.
Set goals to continue building on the momentum you'veachieved.
Learn about kaizen, the idea of continuous improvement. Keep ideas fresh by bringing in new change agents and leaders
for your change coalition.
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Step 8: Institutionalizing New Approaches
Finally, to make any change stick, it should become part of the core of
your organization. Your corporate culture often determines what gets
done, so the values behind your vision must show in day-to-day work.
Make continuous efforts to ensure that the change is seen in every
aspect of your organization. This will help give that change a solid
place in your organization's culture.
It's also important that your company's leaders continue to support the
change. This includes existing staff and new leaders who are brought
in. If you lose the support of these people, you might end up back
where you started.
What you can do:
Talk about progress every chance you get. Tell success storiesabout the change process, and repeat other stories that you hear.
Include the change ideals and values when hiring and trainingnew staff.
Publicly recognize key members of your original change coalition,and make sure the rest of the staff new and old remembers
their contributions.
Create plans to replace key leaders of change as they move on.This will help ensure that their legacy is not lost or forgotten.
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KURT LEWINS THEORY
Kurt Lewin (1890-1947) is considered as the father of social
psychology. He was born in Germany, later immigrated to the US.
He is well known for his writings on group dynamics, group therapy
and social psychology.
Kurt Lewin introduced his field theory concepts, emphasizing that
the group differs from the simple sum of its parts. Lewin coined the
term group dynamics in 1939. His field theory states that "onesbehavior is related both to ones personal characteristics and to the
social situation in which one finds oneself."
LEWINS CHANGE THEORY
His most influential theory was his model of the change process in
human systems. Kurt Lewin theorized a three-stage model of
change that is known as the unfreezing-change-refreeze model that
requires prior learning to be rejected and replaced. Lewin's theory
states behavior as "a dynamic balance of forces working in opposing
directions."
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STAGES
Consists of three distinct and vital stages:
I. UnfreezingUnfreezing is the process which involves finding a method
of making it possible for people to let go of an old pattern that was
counterproductive in some way. Unfreezing is necessary to
overcome the strains of individual resistance and group conformity.
Unfreezing can be achieved by the use of three methods.
First, increase the driving forces that direct behavior away from the
existing situation or status quo. Second, decrease the restraining
forces that negatively affect the movement from the existing
equilibrium. Third, find a combination of the two methods listed
above.
II. Changing or MovementThis stage involves a process of change in thoughts, feeling,
behavior, or all three, that is in some way more liberating or more
productive.
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III. RefreezingRefreezing is establishing the change as a new habit, so that it nowbecomes the standard operating procedure. Without this stage of
refreezing, it is easy to go back to the old ways.
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COMPARING JOHN KOTTERS 8 STEPS
WITH KURT LEWINS THEORY
UNFREEZE
CHANGE
REFREEZE
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APPLE INNOVATION IS THE KEY
Apple Inc. (NASDAQ: AAPL; formerly Apple Computer,
Inc.) is an American multinational corporation that designs and sells
consumer electronics, computer software, and personal computers.
Established on April 1, 1976 in Cupertino, California by Steve Jobs,
Steve Wozniak, Ronald Wayne and incorporated in January 3, 1977, the
company was named Apple Computer, Inc. for its first 30 years. The
word "Computer" was removed from its name on January 9, 2007as its
traditional focus on personal computers shifted towards consumer
electronics. The company's best-known hardware products are the
Macintosh line of computers, the iPod, the iPhone and the iPad. Its
software includes the Mac OS X operating system; the iTunes media
browser; the iLife suite of multimedia and creativity software; the
iWork suite of productivity software; Aperture, a professional
photography package; Final Cut Studio, a suite of professional audio
and film-industry software products; Logic Studio, a suite of music
production tools; the Safari web browser; and iOS, a mobile operating
system.
As of July 2011, Apple has 357 retail stores in ten countries, and an
online store. It is the largest publicly traded company in the world by
market capitalization, overtopping ExxonMobil by some $150 billion,
as well as the largest technology company in the world by revenue and
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profit, more than Google and Microsoft combined. As of September
24, 2011, the company had 60,400 permanent full-time employees and
2,900 temporary full-time employees worldwide; its worldwide annual
revenue in 2010 totaled $65 billion, growing to $108 billion in 2011.
Fortune magazine named Apple the most admired company in the
United States in 2008, and in the world from 2008 to 2012. However,
the company has received widespread criticism for its contractors'
labor, and for its environmental and business practices.
Key people:
Tim Cook (CEO)
Arthur Levinson (Chairman)
Sir Jonathan Ive (SVP, Industrial Design)
Steve Jobs (Chairman, 1976-1985/2011; CEO, 19972011)
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OVERVIEW
Organizations have many distinguishing factors that make them
successful in their field. However one factor that is apparent in a great
organization is its vision. Organizational vision is necessary for an
organization to be successful because creativity begins with its vision.
According to Peter Senge, author of Fifth Discipline, vision is distinct
from purpose. Purpose is abstract, leading towards a general heading
while vision is a specific heading that is contract.Apple is a visionary organization that has a clear vision & purpose that
can be seen through their innovative products over the year. Apples
original vision was to make computers for the rest of us, while their
purpose is to make contribution to the world by making tools that
advance humankind.
Besides having a vision & a purpose, organizations need to take furthersteps to implement their corporate vision & ensure that this plan of
action is known & practiced throughout the organization. Since the
initial start of organization, Apple had both success & failure in the
implementation of their vision while striving to fulfill their purpose
creating tools for the mind to advance humankind.
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IMPLEMENTINGJOHN KOTTERS 8 STEPS
OF CHANGE
Establishing the sense of urgency-
In Kotters model for transforming an organization, the top priority is
given to this step. He says that many organizations start to change
when someone or some group of people in the company sees the
impending fate in market positions or competitive opportunities. Thistype of opportunity was seen by Steve Jobs when Apple was founded
in 1976. The co-founder of Apple, Steve Woznaik said, It never crossed
my mind to sell computers. It wasJobs who said Lets hold them up
in air & sell a few. This insight resulted in the building up of personal
computer industry. The mainframe computer manufacturers then did
not see a need to build a home computer. Prior to Apples home built
kit Apple 1, industry for personal computers did not exist.
Thus we can see that not only due to Steve jobs vision to create a home
computer but also because of the urgency of this need that he could
start an industry of personal computers.
Forming a Powerful Guiding Coalition-
Apples internal coalition of executives & leaders is much harder to
ascertain since the company is known for its secrecy. Certainly, tight
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group of people have formed around with various shared visions of
products. Apple has been one of the first companies to use evangelism
marketing (word of mouth marketing). This ability of the company to
enroll & develop a strong relationship with its customers is anotherform of coalition where it has excelled.
Apples success in creating a coalition of business partners has been a
questioned by many & is seen as short coming by Jobs. Jobs have
recognized that Microsofts success has been partly contributed to the
coalition they were able to foster. Microsoft is Apples longest running
successful partnership.
In the last decade, Apple has worked successfully with the music
industry on iTunes store & digital right management of songs. They
have also established partnership with telecom companies worldwide
to market iPhones in over 90 countries.
Thus Apple has learnt to join & build communities for its products that
foster organizational mission.
Creating a Vision-
Apple was created on a vision that Steve Jobs, Steve Wozniak had in
1976 in a garage. Their vision was to create computers that the
average consumer could use without possessing the technical
knowledge or skills.
Computers at the time were only limited to a certain market and the
average homemaker or sales clerk were not a part of this. Apple
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founders saw that their technology could bring enrichment into the
lives of people. These computers would be affordable yet different
enough to stand apart from all the other computers sold on the
market.
The idea was to have an Apple computer on every desk. This idea
became the foundation for which their vision was built upon. Their
vision was extremely radical compared to the other computer
companies at the time. As far-reaching as their ideas may seem, their
vision attracted many other computer enthusiast into their business
and completely set them apart.
Having a vision is extremely important to the success of an
organization because without it, there is nothing pulling the
organization forward. Vision is a specific destination, a picture of a
desired future. The organization was founded on a vision and this
vision propelled the founders to continually innovate computers.
Initially, their vision was quite simple, to make computers that
everyone can use. Their vision has evolved over the years to
communicate an even greater need to change the world through their
innovation. This desire lead to establishing purpose for their existence
and that is to make a contribution to the world by making tools for the
mind that advance humankind. Apple felt that they had more to
contribute to society than just computers. They have expanded their
technology into the music industry and the phone industry. In a special
review by Business Week in 2000, Steve Jobs made a statement saying,
We have just begun as a preface to his plans for the future.
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Communicating the Vision-
Apple started life as a business, not as a company. The gradual change
from a bloated garage operation into something resembling a
corporation was laborious and extended. What was even more difficult
than the transformation was the communication of the founders
vision to the rest of the organization. Originally, the idea of creating
computers that a normal person would be able to use was the driving
force behind the organization. Apple employees had strong feelings
about this because it set Apple apart from the other computer
companies. They were even successful in recruiting employees from
various companies such as Intel, National Semiconductor, and Hewlett
Packard. These employees readily resigned from their current position
at these various organizations for Apple because they saw that Apple
had something different to offer.
Initially, communicating the vision to other Apple employees was not
hard because the organization was founded on a vision. However, as
more people flocked to Apple, the harder it became to communicate
this vision. The glue that once held the organization together began to
fall apart as the company grew at an exponential rate and the vision
was lost amongst the new faces that continually showed up on a daily
basis. Hiring from other organizations also brought discontinuity into
the organization because employees from IBM or Hewlett Packard
would bring culture from these various organizations that were not
compatible with Apple. Eventually, Apples success became their
enemy and Apple found themselves operating similarly to
organizations such as IBM.
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This was something they tried extremely hard to avoid but with so
many people working in the organization, bureaucracy was the only
way to manage everyone. By 1980 the company was too large and
too scattered for any one manager to cover on a daily stroll to take theair and test the waters. So for most of the employees, the corporate
hand was invisible. Apple tried limiting some of these discontinuities
within the organization by establishing a committee whose main
purpose was to reduce the abstract into the concrete and codify all
the conflicting impulses and intentions, the clashes between individual
enterprise and teamwork, between autocracy and democracy that
make up a company. The committee set out to turn the companyaround which included the culture and the working environment. The
idea was to get the organization into an alignment in order to start
working cohesively again. One of the methods used to reach
alignment was to re-establish their cultural values throughout the
organization.
There was no doubt that Apple employees were employed because oftheir passion for computers so Apple founders found that the best way
to communicate this value was thought their products. Apple started a
new policy for their office procedures. No more typewriters were to be
purchased or leased and the existing ones were banished. Apple
believed that before they could communicate their vision to the public,
they should fully believe in their products first by utilizing it in the
workplace. Shortly after Apple did away with typewriters, the termsecretary was also abolished to reflect the varied responsibilities that
could be accomplished by the personal computer. The term area
associate took the place of secretary. Apple also started a program
that gave Apple employees their own personal computer once they
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had demonstrated minimal efficiency. They also offered classes for
family members and large discounts to friends and family members.
Apple founders wanted the work place to be more than just a place to
come to, do what you had to do, then go home. He wanted the workplace to be a place where people could innovate and have the freedom
to do more rewarding and enriching tasks.
Empowering Others to Act on the Vision-
The Macintosh group was formed to examine the feasibility of
developing an extremely low cost computer for the public. Steve Jobs
took over the program and was determined to build a computer that
was in his words, insanely great. Early on, the Macintosh team did not
have an exact idea of what the computer would be like and were not
given a development schedule. An engineer in the project said that,
Steve allowed us to crystallize the problem and solutionsimultaneously. Jobs and his predecessor as group leader set out only
basic principles; it was the personnel of the team who would concretize
these. The Mac team was self-organizing, they were empowered to
innovate.
Another example of empowerment of their employees is the loan to
own program. Apple offered employees voluntary classes on theircomputer applications. When an employee demonstrates proficiency
in at least two applications, they can then participate in a loan to own
program. An Apple personal computer is given to the employee to use
at home after one year, it is given to them free of charge. The
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employee is thus better skilled at work, and it helps to promote the
vision of computer for everybody.
Planning for and Creating Short Term Wins -
One of Apples significant achievements has been the implementation
of the office workplace of tomorrow. Apple inaugurated the
workplace of the future by putting computers on most of its
employees desks. Mike Scott, Apple president at the time said, Appleis an innovative company. We must believe and lead in all areas. If
word processing is so neat then lets all use it. We believe the
typewriter is obsolete. Lets prove it inside before we try and convince
our customers. This internal move increased employees
effectiveness, improved job satisfaction, and led to very little turnover.
It unrestricted managers from doing mundane and time consuming
paperwork tasks. This newly available time allowed them to coachemployees leading to a much improve workplace atmosphere.
In this case, Apple was able to lay the foundation for the realization of
a long term goal and vision of having the general public use their
computers. They were able to start it on a small scale with a short term
goal for their own employees. As a result, some of the lowest level
employees were able to begin contributing on a higher level. SteveJobs stated, Not only do our area associates have the freedom to do
more rewarding, enriching tasks, they have a chance to get involved in
solving problems that ultimately affect the success of the entire
company. Apple created a long term external winning situation for
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itself with consumers by creating a short term internal winning
situation with their employees.
Consolidating Improvements and Producing Still More Change-
The computer industry has inherently understood and acted upon this
aspect of Kotters model. Much of the industries success and blinding
pace of improvements are attributable to the ability of a company to
make refinements to their products, building faster, and morepowerful computers. In building these superior computers, the
company may change the nature of its core business. Many companies
of the past have failed to manage the transition from the mainframe
era to the personal computer era (e.g. Burroughs, Control Data, Data
General, Digital Equipment, Sperry-Univac, Wang). The companies
that have excelled at keeping pace with these changes are some of the
fastest growing companies in history (e.g. Apple, Dell, Cisco, Microsoft,Oracle). Many of the companies that have failed did not understand
the shifting dynamics of the industry and clung to outdated patterns.
Paradigms are a source of both strength and weakness- strength in
that they tend to reinforce successful patterns of behavior, and
weakness for the same reason.
Apples ability to change paradigms as an industry leader is obvious inthe history of the short lived personal computer industry. Apple
created the personal computer industry; then they innovated the
graphical user interface (GUI). Adopted by the industry the GUI,
innovated the desktop and file folder metaphor that has predominated
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the industry. Apple is now innovating appliance model in computing
products that integrate vertically from device to network to content.
The iPod and iPhone product lines are examples of Apples ability to
envision a paradigm change, put that vision into action and achievegame changing results. Kotters seventh step is evidenced by using
increased credibility to change systems, structures, and policies that
dont fit the vision. Apple has used its very successful music industry
changing iPod product line with iTunes music store credibility to also
change the smart phone application market, achieving 1.5 billion
downloads in the first year of App Store operation. Apple has used the
core competencies that the company has acquired over its thirty yearhistory, notably in product marketing and innovation to redefine
market segments. On the success of the iPod and iTunes music store,
Apple launched its iPhone, creating the most successful convergence
device. The iPhone has proven that Apple can both consolidate their
core competencies while continuing to innovate.
Institutionalizing New Approaches
In Kotters eight step model, Apples ability to articulate the
connections between the behaviors that have led to corporate success
are apparent in one word, innovation. Kotter is concerned that the
corporate vision be institutionalized as opposed to being carried by a
leader. Apples vision is to create products that enhance peoples lives
and make the use of computers in all their forms easy, intuitive, with a
seamless coherent experience. The recent success of the iPod in the
music player market space is an example of the execution of this vision.
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Apple recognized that the music player market was a disjointed
experience for the consumer. They built a music player device that
used Apples core competencies in computer, networking, product
design and user experience. They partnered with the music industrycreating coalitions that learned a new method for product delivery,
drastically changing the music industry. This is an example of one
product line that fulfills the vision of Apples purpose may appear to be
a fluke. However, each of these Apple products was innovations that
changed the industry: Apple I computer, Apple II computer,
Macintosh, iMac, iPod, and most recently, the iPhone. Apple has
proven that it is capable of changing the institutions that it deals withexternally while adapting to the required business processes and
organizational change that paradigm shifts require.
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REPRESENTATION OF KOTTERS CHANGE
MODEL IN APPLE INC.
ESTABLISHING THE SENSE OF URGENCY
To manufacture home or personal computers instead of Mainframe computers
FORMING A GUIDING COALITION
A coalition of employees who come from different organizations & also between the
employees & customers
CREATING A VISION
To take Apple at every desk by making user friendly personal computers
COMMUNICATING THE VISION
They established a committee to reduce clashes between individual, enterprise &
teamwork
EMPOWERING OTHERS TO ACT
The employees themselves started using personal computers & asking them to frame their
own problems & solutions
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CREATE QUICK WINS
Created short term goals for each employee to help contribute them at higher level
BUILD ON CHANGE
Leader of other innovations like GUI, iPad, iPhone
INSTITUTIONALIZE THE CHANGE
Partnership with other industry like music industry
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VISA OF APPLE
ViSA stands for Vision, Strategy & Action Plan. Its a management
model created by Dr. Subhash Sharma, Dean of Indus Business
Academy. He is well known as Indian Management Thinker,
Institution builder and Innovative experimenter. This model has been
mentioned in his book New Mantras in Corporate Corridors.
Vision of Apple Inc.
The vision of Apples founder Steve Jobs was "to make a contribution
to the world by making tools for the mind that advance humankind."
Apple is committed to bringing the best personal computing
experience to students, educators, creative professionals and
consumers around the world through its innovative hardware, software
and Internet offerings.
Strategy of Apple Inc.
For several years Apple's product strategy involved creating innovative
products and services aligned with a "digital hub". Apple Inc. uses the
Apple brand to compete across several highly competitive markets.
Apple's core competence is delivering exceptional experience through
superb user interfaces. Apple has a branding strategy that focuses on
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the emotions. The Apple brand personality is also about simplicity and
the removal of complexity from people's lives; people-driven product
design; and about being a really humanistic company with a heartfelt
connection with its customers.
Action Plan of Apple Inc.
Apple seems to approach the people as a more user-friendly person.
Rather than giving people a straight up "Would you like to continue
with this action or deny" Macs seem to be friendlier in some cases. Say,
the startup. Macs give you that nice little tune when starting up. Vista
(as of now) gives you a few messages on what you can do on Vista and
why it's trendy. Also, all/majority of Apple products are from them
usually. Unlike Microsoft who ships their OS to computer makers
(Gateway, HP, and Dell), Apple makes their OS and their own style of
computers. Thus, when buying from Apple, there is really no choice
from one computer with a Mac OS and another, because both were
made from Apple themselves. This type of style means that they sell
them directly so they can answer the many questions people have. In
return, people do not need to worry about which place/company they
are getting their Macs. But, Apple keeps their OS to themselves, and
does not branch out to ship their OS to other computer makers.
The huge promise of the Apple brand, of course presents Apple with an
enormous challenge to live up to. The innovative, beautifully-designed,
highly ergonomic, and technology-leading products which Apple
delivers are not only designed to match the brand promise, but are
fundamental to keeping it.
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CONCLUSION
Over the past thirty years, Apple has met with many successes and
failures. They have proven time after time that they are able to
overcome challenges and rise above any disparities that may come
their way. Apple was built on a vision, yet vision alone is not enough
for organizational growth or success. An organization needs to be able
to communicate their vision throughout the company and they need to
empower their employees to act on this vision in order to make it areality. In order for organizations to achieve their vision, they have to
be receptive to change and provide an environment that promotes
change; only then can an organization grow. John Kotters eight step
model for change outlines the way Apple implements their vision
throughout the organization.
When Apple saw the opportunity in the market place for personal
computers, they established a sense of urgency. Initially, Apple did not
have strong coalition in the organization but soon learned that in order
to survive; they needed toform a coalition and of the biggest step they
took was by partnering with Microsoft. Creating a vision is the third
step in the model but Apple already had a vision. Communicating this
vision was a harder task for the organization because it was growing so
fast, but in the end, they were able to do this by redefining values.
Apple empowered their employees by allowing them to partake in
decisions that could ultimately affect the success of the company.
Apple also empowered their employees to innovate and do more
fulfilling tasks by providing them with their own computers. This was
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also a big step towards creating short term wins. Before Apple could
sell computers that were supposed to improve lifestyles, they had to
believe it themselves so they provided their employees with free
computers and classes. Apple is continually consolidatingimprovements and implementing more change because the market is
always changing. An organization that wants to survive needs to be
able to keep up with these changes and they need to keep making
improvements. Institutionalizing new approaches is the last step in
Kotters model and Apple is continually experimenting with new
approaches. They have mastered the personal computer industry only
to move into the music industry and then to communications. Applesability to implement their vision, innovate, and adapt to change makes
them a true visionary organization.
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BIBLIOGRAPHY
Harvard Business Review
Managing Radical Change by Sumantra Ghoshal & Gita Parimal
Our Iceberg is Melting by John Kotter
www.wikipedia.com
www.apple.com/asia
www.businessweek.com
www.citehr.com
http://www.wikipedia.com/http://www.wikipedia.com/http://www.apple.com/asiahttp://www.apple.com/asiahttp://www.businessweek.com/http://www.businessweek.com/http://www.citehr.com/http://www.citehr.com/http://www.citehr.com/http://www.businessweek.com/http://www.apple.com/asiahttp://www.wikipedia.com/ -
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