Change Management at Tata Motors

Change Management at TATA Motors

Ajith T Veetil Makarand Kadave Sachin Sachi n T Todur odur Vaibhav Borkar

Change

Management

 Change management is the process of developing a planned approach to change in an organization  Objective is to maximize the collective benefits for all people involved in the change and minimize the risk of failure of  implementing the change  Change should not be done for the sake of change -- it's a strategy to accomplish some overall goal

TATA Motors  Founded in 1945  Indias largest automobile company  Worlds fifth-largest manufacturer of medium and heavy trucks  The company's 24,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. 

 Global presence through major acquisitions and takeovers

Turn around 

2001 - Tata Motors marks the biggest turnarounds in the history of Indian automobile manufacturing industry 

Decided on a recovery strategy that had 3 distinct phases, each of which was intended to last for around 2 years6 years in all. Phase

1 - Reducing Cost

Phase

2 - Consolidating their position in India



Phase 3 - Involved going outside India and expanding operations internationally.

People : Measures

of leadership effectiveness was established

Fast

trackers were identified & encouraged to take more responsibility Youth

were given strategic responsibilities

Planning the Change

at TATA Motors

Step

One: Create Urgency

Step

Two: Form a Powerful Coalition

Step

Three: Create a Vision for Change

Step

Four: Communicate the Vision

Step

Five: Remove Obstacles

Step Six:

Create Short-term Wins

Step Seven: Step

Build on the Change

Eight: Anchor the Changes in Corporate Culture

Phase 1-Reducing Cost

Product Deveoplment

E-Sourcing

CAD System

Phase 2-Consolidating Position

Quality Product

Innovative Product

Phase 3- Expansion of Business Globally 

Acquired Daewoo Motors in 2004

 Aquired Hispano Carrocera in 2005  Joint Venture with Brazilian based Marco polo in 2006  Joint Venture with Thonburi Automotive Assembly Plant Company in 2006  Acquired British Jaguar Land Rover (JLR) in 2008  Acquires 80% stakes in Italy-based design and engineering company Trilix in 2010

Strategic Planning Process Low Cost Approach: a deliberate position of  Low cost & Acceptable features with focus on fuel efficiency. world class product at Asian cost.

Partnerships outside organizations: Cummins, Holset and Taco Vendor involvement in product development  Implemented IT Policy and CRM in place New Product Development and e-sourcing process

Financials of Tata motors   at a glimpse. TURNOVER IN (Rs ) CRORES 2       0       6       0      2     

2005-06 1      7      4      1       9     

2004-05 1       3      2      2       3     

2003-04  9       0       9      7     

2002-03

7       5       0       6     

2001-02

0

5000

10000

15000

20000

25000

Financials of Tata motors   at a glimpse. PROFIT AFTER TAX IN Rs.Crores 2005-06 15 29 

2004-05

12 37  810 

2003-04 2002-03

30 0 

2001-02

-500

-54 

0

500

1000

PROFIT AFTER TAX IN Rs.Crores

1500

2000

Sales

2005-06

volume in units.

215000

2004-05

190000

2003-04

152000

2002-03

106000

2001-02

81900

0

50000

100000

150000

200000

250000

300000

passenger vehicles commercial vehicles

350000

400000

450000

Thank You !!