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1、Asia Pacific Meeting 2002How to Install a Change Mechanism into OrganizationKeizo Tannawa, WW TokyoMarch 14, 2002 in ShanghaiAgendaWhy “change is so critical?“Change MechanismOrganization model driverCorporate governance structureCentralize-Decentralize management Competency management cycleInternal

2、 HR Market CreationImplication of change management for Chinese companies2Why “change ?What is same, and different in terms of cause of crash?ENRONJapanese companies3The differenceManagement styleValue proposition of the organizationMarket pressureThe sameTrap of success ( to be too successful to ch

3、ange = arrogance)Not enough level of disclosureHRM system failure4Trap of successCSPerformance IndexInnovationBreak pointIndifferent zoneQuality ZoneImpact Zone5Change mechanismOrganization model driverGovernance structureCentralize-Decentralize managementCompetency management cycleInternal HR Marke

4、t creation6Current Winning OrganizationSelf-directed Team(Soccer team)System BuilderSelf-Organizing AmoebaTop-down(Pyramid structure)Core ModelManagementPeopleDriver(90%) SpecializedEntrepreneurial ManagerSystem Up-grader(90%) AutonomousProfessionalEntrepreneurialProfessionalEfficiency/ Cost Control

5、Innovation/ CreationExamplesMcDonaldSV Ventures7Strongest Organization ModelExpanded GE Model.Management TeamTeamBiz LeaderTraineeProfessionalPro8Governance as a change deviceClear responsibility share among “CEO, “COO and “CFO, then make “management cycle at workReal issue lies on “CFO function (Ve

6、rification process) in management cycleDisclosure procedure?Nomination of reliable CFO?9Direction SettingCEO)ExecutionCOO)Financial VerificationCFO)JudgmentBoard)Governance structure modelGovernance means “Management CycleHypothesis ExpansionAdvisory)10Corporate value / brandHuman capital ( competen

7、cy platform )Financial ( verification)Technology & KMOperational ( SCM, CRM )Biz.ABCDCompetitivenessBreak PointLineGroup/corporateplatformWinning Business ModelBusiness portfolioRedesign core platformCoverageCompeti-tiveness11YearDegreeofDecentralizationDecentralizeCentralizeSelf-directed Human reso

8、urce developmentEnvironmentalChangeCentralize -Decentralize ManagementCentralizeCentralizeDecentralizeDecentralize12SSCPlatformBuz.ABuz.BBuz.Z.CorporateHolding CompanyMulti-layer GovernanceBuz.C13Redesign Organization StructureAdapt “Winning organization model Starting point is set hypothesis of “In

9、tegration - Decentralization statusSource of competitiveness should be translated into “Core platformDesign “Corporate platformDesign “Governance structure14Competency FunctionAction/Results/OutcomeThinking/BehaviorTraitsAssessment(Verification)Prediction(Hypothesis)InputfieldOutput15HypothesisAssignment)Delegation & Support Development)Verification Evaluation & Assessment)JudgmentExit managementHypothesis Expansion(WW)Competency management cycleCompetency Platform16Corporate value / brandHuman capital ( competency platfo