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The bottom line is that the CEO knows that by keeping disruptions to a minimum he will ensure a higher level of productivity and profitability over time, and also lose less time to disruption from unnecessary confusion over change. Given the culture of the company it is completely understandable that he is taking such a conservative pace to change.
What implications for change managers would apply specifically to Nestle? Outline how the Nestle management team hay have reaction to each implication. Instead of just adopting change for the sake of change, the case study illustrates how pragmatism rules out over activity alone. Second, the lesson of how important milk products are to the entire operation led to the acquisition of Carnation in 1984, an acquisition as seen as synergistic to the overall direction of the company. Third, there is the front-line lesson of how best to manage the increasing pressure on the part of finance for delivering exceptionally strong quarterly or short-term results. Senior management refused to get sidetracked from long-term growth by concentrating on long-term growth that respects the core strengths of Nestle in the process.
The first implication for change managers within Nestle is the need to be accountable, transparent and focused on how best to create trust between subordinates and management. From this foundation of trust, both first- and second-order change can be developed. This focus on being trustworthy to alleviate resistance to change and instead invite employees to "own" the change as well is a critical to making any organization resilient over time (Burrus-Barbey, 2001). The second implication for change managers is the pragmatism to look at what initially is perceived as a major improvement in execution and efficiency promised by it investments and concentrate on their real contributions to the company. Third, the implications of acquiring L'Oreal and Alcon Labs are diversions for their core business yet Nestle positions these as extensions of their core business of consumer products and succeeds as a result.
Find three examples of lessons from the front line that are evident in the Nestle case. How could these issues be overcome?
References
Cristiano Busco, Mark L. Frigo, Elena Giovannoni, Angelo Riccaboni, Robert W. Scapens. (2006). INTEGRATING GLOBAL ORGANIZATIONS THROUGH PERFORMANCE MEASUREMENT SYSTEMS. Strategic Finance, 87(7), 30-35. Retrieved January 11, 2009, from ABI/INFORM Global database. (Document ID: 983634561).
Katrina Burrus-Barbey (2001). Leadership and global management at Nestle. Strategic Direction, 17(2), 5-7. Retrieved January 12, 2009, from ABI/INFORM Global database. (Document ID: 269085651).
Sebastian Raisch, Georg von Krogh. (2007). Navigating a Path to Smart Growth. MIT Sloan Management Review, 48(3), 65. Retrieved January 14, 2009, from ABI/INFORM Global database. (Document ID: 1250414251).
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