Case Studies: Organisation Change

	Strategic development in Eastern and Central Europe
Company profile	R.J.Reynolds Tobacco International SA, Geneva (at the time part of the RJR-Nabisco group) manages the second largest group of Western controlled tobacco interests in Eastern and Central Europe, as well as managing the duty free operations for the whole of the Europe, Middle East and Africa areas.
The issues	The lifting of monopoly production and trading restrictions led to an aggressive acquisition strategy encompassing entire segments of the tobacco industry in Eastern and Central Europe and the Former Soviet Union. The changes have caused a shift from a trading company based in Switzerland to a full function operation (sourcing, manufacturing, marketing, distribution) with affiliate organisations in every country in the region, along with an explosive growth in numbers (500 employees to 7,500 employees in three years). These pressures place huge demands throughout the organisation for the effective planning, organisation and integration of the business.
Project highlights	Working initially with the Executive Committee and senior management teams in Switzerland and across the Eastern and Central Europe Region, plans to introduce the principles of Customer Focused Quality Management and Change Management to help to align the business were developed. To assist in the resourcing of the project, and to ensure that the best expertise was made available to the company, a joint venture operation was established using consultants from PeopleTech Inc. from Canada, who had specific experience in executive coaching with RJR executives in Canada. Phase 1 of the plan involved working with the Executive to develop a corporate vision and mission, strategies and action plans. Alignment of the Executive and senior management on the strategies was further developed through cascade training workshops in TQM and strategic planning. An Executive Management Conference in Annecy, France, was designed, facilitated and staged, presenting the strategies and signaled the start of phase two. A pilot project was run in Turkey, including a greenfield production operation (which broke all company records for completion from foundation to full operation in 136 days). Introduction of the processes to other markets took into account their stage of development and the local culture. Phase 2 involved all employees in the principles of customer driven quality and managing change, and was undertaken by the line management, using our materials. Teams were set up to identify and implement improvements in processes and procedures. Internal facilitators were trained to progressively transfer from external to internal resources. At Executive and senior management level the focus changed to strategic alignment of business objectives with customer wants and identification of major opportunities for process improvement. Further individual change and organisation development projects continued after phase two: Working with the newly appointed General Manager for Turkey and her management team to develop their own team work, and to identify and implement strategic planning goals for the development of the market potential in a rapidly growing area. Developing a set of Human Resource Policies and Procedures for a new sales operation in the Former Soviet Union, to give country and field sales management teams the necessary assistance to recruit and manage a three-fold increase in sales and merchandising staff during one year. Helping to design and launch a Distributor Partnership Programme through the identification of local needs and opportunities, and through benchmark studies with RJR operations and other organisations world-wide. Researching, planning and staging a conference for key customers/ potential distribution partners from Russia, Ukraine and Kazakhstan in Istanbul and Izmir, Turkey. Designing an Action Planning System for use by staff in the sales, administration and manufacturing operations in the Former Soviet Union. Running Management of Change workshops at locations across the Former Soviet Union and Central Europe to help local managers to identify goals and strategies and integrate their operations with the wider goals of RJR in the Region. Executive search and recruitment for key positions in the Former Soviet Union. Designing, delivering and training local trainers (from Russia, Ukraine, Turkey, Bulgaria, Poland, Switzerland and the Middle East) in negotiation, interviewing, recruitment, objective setting, managing change and project management.
Consultants	Chuck Dufault and Geof Cox with Jim McCloskey and Sergei Krasnov from PeopleTech Inc.

	Developing a technical organisation to meet new market challenges

Company profile	Oronite European Technical Center, Rotterdam is the main research and development operation of Chevron Chemicals outside of the USA. It provides test and development facilities for lubricants and fuels additives.
The issues	A traditional scientific management structure and style was limiting the effective operation of the laboratory by accentuating a vertical specialist and technical focus. A highly competitive environment required a more flexible organisation to provide a rapid and customer focused service at competitive cost. The laboratory was noted for its high degree of technical expertise, but had resisted previous attempts to introduce a more integrated approach, including an attempt to introduce quality management techniques.
Project highlights	Initial work with the Managing Director and the Human Resources staff analysed the organisation needs and identified an initial training need for the supervisory and senior technical staff. This would be designed to develop more cross functional communication and to be a building block to relaunch a quality improvement process. A training course was specially designed to meet the needs of the supervisory group in influencing skills and teamwork. A subsequent follow up course focused on the application of these skills to real work improvement issues. These courses used models and approaches that were researched and developed through the Castle Consultants International network (of which New Directions was a founder member), and which are used in other parts of the Chevron group. The initial results of the training has been to break down a number of the barriers and improving the working and competitive environment in the Rotterdam laboratory. Improvements in systems and administrative processes were made as a result of the actions taken through the improvement workshops. Further support work was carried out simultaneously at an organisation and staff level to facilitate the development of a supportive environment where change is accepted as a norm, and where staff are continually empowered to make improvements in their working practices. At an organisation level, consultancy work with the Managing Director and the senior team developed strategic plans for the company that aligns it with the corporate goals and provides a focus for continued local improvement. Personal coaching for the Managing Director was provided to help him manage the personal stresses of change management and to build his personal style and confidence. At a staff level, training in communication skills for all junior technical and administrative staff in the company was carried out in the Dutch language through the Castle Consultants International multi-lingual network of trainers.
Consultants	Geof Cox (Project Leader), Walt Hopkins, Inge Tjoa, Joep de Jong

	Developing a strategic plan for a division of a government agency

Company profile	The Research Division of the Forestry Commission is responsible for conducting research into forestry on behalf of the Forestry Commission and Forestry Enterprise in the UK, and also contributes to the research and development of forestry resources world-wide.
The issues	Changes in the organisation and funding of forestry services in the UK have lead to a more commercial and cost aware environment in which responsibility for the purchase and provision of services are split. Forestry Research is by its nature a long term activity, and therefore needs to be able to convince purchasers of the benefits and value added of the research. This has demanded a change of style on behalf of the management of the division who previously both commissioned and carried out the research. An initial analysis by the Director of Research identified some skill deficits in his senior team in commercial awareness and negotiation skills.
Project highlights	Following an initial review and scoping of the needs with the management of the Forestry Commission and the Research Division, the consultant opinion was that there was little point in carrying our skills training if the management team of the division were not party to the change of direction of the division, and therefore recognised the need for the skill. Current evidence was that the management were highly qualified and recognised for their technical and scientific ability, but were either unaware or unconvinced of the need for change. It was therefore proposed and agreed that prior to any skills training, that the senior management should meet and agree a future strategy and vision for the division. To prepare for a workshop where this strategy and vision would be developed, individual interviews were held with the members of the management team to ascertain their own viewpoints, and also to determine the effects of the organisation re-alignment on their activities. These interviews confirmed the wide range of awareness and impact indifferent areas, and also a high degree of skepticism and potential alienation with the overall policies and direction of the Commission. The need for the strategy workshop where everyone would contribute and have the opportunity to shape the future of the division was therefore confirmed. A two day workshop was then convened where the management team participated in a number of interactive activities to help them to identify the current environment for the division, the needs of customers, the needs of other stakeholders, and to define their values and vision. A strategic plan was drawn up that had the support and commitment of all of the management team, and responsibility for carrying through action plans to solve immediate burning issues was shared amongst the team members. This was the first time that any shared ownership of change had surfaced in the division. Subsequent to this intervention, and other work with the Forestry Commission in the UK, Geof Cox was asked to provide executive development and coaching in change management and implementation for the Managing Director and Director of Operations from the Forestry Commission and Department of Forestry in Ghana
Consultant	Geof Cox

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