Companies Changing Hands – The Lean Approach

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Companies Changing Hands – The Lean Approach

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Private Enterprises do change hands.
While a “traditional” approach by the Organisation taking-over the enterprise considers mainly financial/economical, commercial and operational aspects, the Lean approach takes into great consideration also the impact on Human Resources affairs brought up by the change.

What happens when a New Management inherits employees used, most likely, to a different style and set to a “previous” old way of doing things?
Generally, when an enterprise is sold to new owners or merges with another, controlling Organisation, the crucial factors that come under scrutiny are the financial/economic ones – and possibly some others. The “people” issue is most often neglected, overlooked and underestimated.
The people issue requires a deeper analysis.

ORGANISATIONAL STRATEGIES/STRUCTURES: THE 4 INDUSTRIAL MODELS
In our short industrial history we can identify 4 main models of industrial enterprises in respect of their overall Organisational Strategy and associated Structure. To make a simple scheme let’s consider two main parameters:
1 – The INTERNAL ORGANISATION
2 – The RELATIONSHIP WITH THE MARKET

1 – INTERNAL ORGANISATION: historically, we can identify two main (extreme) approaches:
– product/organisation oriented
[The main attention is to the product (or service) – The Organisation is seen as a tool to produce products or services – The Organisation is well structured (functions, duties, responsibilities, authorities) – Activities are rational, logic, systematic, standardised – Bureaucracy is alive and kicking – People Motivation: medium/low]
– process/people oriented
[The main attention is to the business process and to people (groups) managing/involved in processes – The Organisation is more flexible, with an “entrepreneurial” type of management and activities – This is a Group-oriented, “Learning Organisation” – There is little bureaucracy or none at all – People Motivation: high]

2 – RELATIONSHIP WITH MARKET: historically, we can identify two main (extreme) approaches:
– operations oriented
[The Market is seen in the background, or anyhow “far” – Reactions to Market’s changes consist, mainly, of change/improvement of “technology” and/or change/improvement of product/s – The strength is “Know-how” (Product – Technology)]
– market oriented
[The Market is “in” the Enterprise – The Market and Market changes are detected and analysed – The tendency is to define Market’s needs and localise opportunities – The strength is in the ability to reap & manage opportunities]

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