Case Study: Apex Engineering's Strategic Engineering Transformation

This presentation summary outlines Apex Engineering's strategic vision and implementation plan to enhance its engineering capabilities. The company, a small-scale manufacturer of custom cranes and hoists, faces increasing global competition and aims to reduce design costs by 20%, design more innovative products, and expand into South Asia. The strategy involves outsourcing, restructuring the engineering department, and implementing a knowledge management system. Key stakeholders are identified, and a change management process based on Kotter's 8-step model is proposed. The summary covers SWOT analysis, engineering mission and vision, expense analysis, and the rationale for change. It also details proposed team structures, personal development plans, morale theory, and key performance indicators (KPIs) to manage progress effectively, ensuring Apex Engineering remains competitive and achieves its strategic objectives.

Summary of presentation
Slide: Introduction:
The presentation mentions a credible engineering vision & strategy for engineering and the
manner in which it shall be implemented.
The key stakeholders for the engineering function have been identified along with the manner in
which they should interface with engineering.
The best options for a new work structure to meet CEO’s objectives have been identifies and
outsourcing has been chosen to be the best option.
A review of team structure and roles, taking consideration of education, experience, capabilities
and personality has been mentioned along with a proposal for a future team structure that best
delivers the objectives.
The personal development plan for all team members has been properly mentioned.
Some meaningful targets and metrics to effectively manage groups and individuals to achieve
objectives have also been mentioned.
A proper knowledge management strategy for the engineering function has also been developed
A proper change management process to affect the changes has been developed utilizing Kotter’s
8 Steps.
Slide: About Apex Engineering:

This slide introduces the organization. Apex Engineering is a small- scale manufacturing
organization that produces custom formed cranes and hoists for the marine business. As of late,
worldwide competition has expanded, with Apex losing a few requests from long term settled
clients. This depends on cost and development, two territories that Apex is considered to have
lost ground as of late.
Slide: SWOT analysis of Apex Engineering
This slide shows the strengths, weaknesses, opportunities and threats of Apex Engineering. The
present circumstance of the organization was broke down through a SWOT examination; this
investigation expects to distinguish the inside and outer components that influence the
organization's improvement. Subsequent to understanding the SWOT examination, the
accompanying targets were established for the plan division:
 Lessen configuration costs by 20% throughout the following 24 months
 Plan more inventive products
 Extend its operations to South Asia
Slide: Engineering Mission and vision
This slide mentions the Engineering mission and vision of Apex Engineering. The
mission of the organization shall be to offer the best quality products and services to the
customers and to maintain the quality in the long term. The slide shows the vision and
methodology that should be executed. It brings together the whole workforce by giving them a
shared objective that joins the approaching change. The vision for building comprises of
executing a change activity which will re-sort out the designing office while diminishing
expenses and expanding inspiration in the work environment.

Slide: Strategy for engineering
This slide mentions the strategy for engineering. Doing this gives an unmistakable and
centred bearing in permitting APEX Engineering to push ahead, it is clear and straightforward,
and it speaks to a doable proposition. This proposition considers the interests of the organization
enter partners. It will likewise affect the providers, contenders, neighbourhood economy, and
groups. Having the capacity to chop the expenses around 20% through outsourcing, travel cost
lessening and nearby wholesaler contract this will enable the organization's notoriety to remain
too keeping a diminishment in deals.
Slide: Key stakeholders for the engineering
The slide mentions the key stakeholders of Apex Engineering.
Stakeholders Inside in Apex Engineering involves managers, managing director and the
employees of the organization, who shall be directly affected by the changes in the organization.
External stakeholders of Apex Engineering involves competitors, customers, banks, suppliers,
shareholders, society and the government, who are indirectly affected by the business operations
of Apex Engineering.
Slide: Company expenses
This slide graphically shows the major and minor expenses of Apex Engineering. The
graph represents that a majority of the expenses incurred by the company involve employer
costs, which accounts to 60% of the total costs incurred. The travel costs incurred are 16% of the
total costs incurred and the office overhead is 10% of the total costs incurred. Therefore, the

main objective of the organization shall be to curb the costs incurred in employing. The
organization is required to devise a suitable plan for controlling its expenses by restructuring the
organization.
Implementation of the changes in terms of business decision, international expansion and
structure of the organization by reconstructing the flat organizational structure, downsizing and
recruiting employees from overseas team will help Apex’s Engineering in curbing the cost by
20%. Initially, cost estimation was developed by considering the changing process and aiming
towards reducing the cost by 20%. Thus, the cost minimization plan highlight the
implementation of the changes will help in reducing cost by 20% in terms of travel costs,
consumables and overhead costs. However, Apex Engineering did not reduce the costs in terms
of CAD and specialist software, as the company wants to promote innovation.
Slide: Why change is necessary?
This slide shows why it is necessary to implement change. Any business in the present
quick moving condition that is searching for the pace of progress to ease back is probably going
to be distressfully baffled. Indeed, organizations should grasp change. Change is imperative for
any association on the grounds that, without change, organizations would likely lose their
focused edge and neglect to address the issues of what most plan to be a developing base of
steadfast clients
Slide: Importance of change

This slide explains the importance of change in an organization. Change that results from
the reception of new technology is regular in many associations and keeping in mind that it can
be problematic to start with, eventually the change tends to build efficiency and administration
As the world evolves, customer needs change and grow, creating new demand for new types of
products and services and opening up new areas of opportunity for companies to meet those
needs.
Slide: Keys to successful change
This slide shows the major factors that serve as a key to successful change. Before
undertaking any change, a business needs to have a clear and valid reason and mission for the
change process. The most important factor in changing anything within a business, small or
large, is to communicate the change, and its many factors, to the key stakeholders within the
organisation – staff, first and foremost, but also outside stakeholders like shareholders and
consumers.
Slide: Outsourcing
This slide shows the alternative option that can help the organization in reducing its
expenses and enhancing its business operations.
Alternative 1: Hiring Local Engineers inside Asia
Alternative 2: Completely shutting down inside the UK and beginning up in Asia
Alternative 3: Shifting and moving the Headquarter of the organization from UK to ASIA
Slide: Current team structure and roles

This slide shows the existing organizational structure of Apex Engineering that helps in
determining the necessary changes to be made. It is necessary to determine the present team
structure and roles of the employees in order to ascertain the changes that are required to be
implemented in order to improve the efficiency.
Slide: Proposed team structure and roles
This slide mentions the changes that shall be made in the organizational structure of Apex
Engineering. The new structure proposed for the Engineering Department of Apex Engineering
will have the shape appeared in the slide. The new revised team structure shall enable the
organization to improve its efficiency and successfully operate its business in South Asia.
Slide: Proposed personal development plan
This slide shows the personal development plan for the employees of Apex Engineering.
Sam shall emphasize more upon his leadership skills as he is to become the manager of the
Engineering Department. Jean Marc shall emphasize upon leadership skills and management
skills. Clive shall emphasize upon developing his confidence as he lacks confidence. Harry shall
emphasize upon improving his ambition as he lacks the ambition to excel in his career. Ruth
shall emphasize upon improving her motivation as she lacks the motivation to work harder. Clare
shall also emphasize upon improving her motivation as well as her ambition. Darleen shall
emphasize upon improving her level of confidence. The other two designers, who shall be hired
in the South Asia team, shall be provided proper training for developing their communication
skills and participation in the team.
Slide: Morale Theory & Attitude towards Change

This slide focuses on the Morale theory that shows the attitudes towards change that is
important. This is to understand the changes the employees are going through when change is
being implemented all over the business. The first half of the transition is always the hardest
because staff are either supportive of the change or they are not. They are on a type of emotional
rollercoaster as adapting to change is quite hard if senior management are not being supportive
of the change. Since a successful change initiative requires management to be supportive, the
“inner contradiction and crisis” phases of the graph can be addressed.
Slide: Targets and metrics
This slide mentions the following:
Consumer satisfaction: The objective of this KPI is to gauge the nature of the item and
administration offered to the clients. It will be estimated by reviews made to the clients noting
few inquiries that will give a last outcome on a scale of 0 to 10.
No deadline miss: This KPI will quantify the culmination time of the work by utilizing the level
of the activities completed on time in contrast with the aggregate number of tasks done.
Cost incurred by the organization in connection to the product value sold to the client: The
objective of this KPI is to gauge the cost made by the designing division to run each extend. It is
estimated by the normal level of the cost in contrast with the normal venture value sold to the
clients.
Product Development: This KPI is utilized to gauge advancement by tallying the quantity of new
highlights created by the division every year.
Slide: Knowledge management strategy

This slide mentions that the information inside an organization is one of its best
resources; accordingly, through this evolving procedure, we expected to discover systems that
will empower us to hold and upgrade the learning among our workers. Thus, two sorts of
information administration methodologies will be connected to expand the imagination, good
and effectiveness in the outline office: codification and personalization.
Slide: Implementation theories
This slide mentions John Kotter's change model. John Kotter's change model includes
eight steps, including: establish a sense of urgency, create a guiding coalition, develop a vision
and strategy, communicate the change vision, empower broad-based action, generate short-term
wins, consolidate gains to produce more change and anchor change in the organizational culture.
The change brought in Apex Engineering shall be linked with the Kotter’s change model in order
to ensure a successful change management.
Slide: Implementation theories
This slide mentions the Lewis’s model. It is known as Unfreeze – Change – Refreeze,
which refers to the three-stage process of change that he describes. For Lewin, the process of
change entails creating the perception that a change is needed, then moving toward the new,
desired level of behavior and finally, solidifying that new behavior as the norm (Cummings,
Bridgman and Brown 2016).
Slide: Requirement for change
This slide mentions the requirement of change in Apex Engineering. Change has become
necessary in Apex Engineering as the annual costs of the organization have increased, which has

become a major issue for the organization. The organization is required to emphasize upon
lowering its expenses in order to ensure its profitability. In order to remain successful in the
long- run, it is necessary for the organization to expand its businesses in areas, which are yet not
explored. In order to remain competitive in nature, it is necessary for the organization to ensure
innovation in its products and business methods. These factors have made it necessary for the
organization to bring certain changes.
Slide: Objectives of apex engineering
This slide mentions the objectives of Apex Engineering while aligning it with Kotter’s
change model. To achieve our ultimate objective, it is critical that we concoct a building system
that will empower the development of APEX Engineering while successfully accomplishing a
noteworthy cost decrease of 20% throughout the following 24 months. Through the span of 24
months, we should have met all our key goals above to effectively actualize a change activity –
following Kotter's 8 step model.
Slide: Stakeholder map
This slide depicts the stakeholder map. For the recognizable proof of the key partners, a
network was produced to deal with the connection between partners. The building procedure of
this lattice was acknowledged in two sections namely stakeholder conceptualization and
influencing partners. Despite the fact that the key partners have been distinguished, the change
procedure and conditions may change, so the power and impact of the present partners may
change as well. In this manner, it is imperative to audit this network in a few events to know
whether it should be changed.
Slide: Model for change

This slide shows the month wise model for change of Apex Engineering. Initially, the
organization shall clearly define the changes required and the managers who shall be responsible
for successfully implementing those changes. Next, the organization shall communicate the
changes and the vision with the other organizational members. The organization shall fire Rajiv
and Bernard and start saving while justifying their actions. The new office in South Asia shall be
set up with Jean Marc as the manager. The organization shall identify the issues faced in South
Asia and attempt to find a proper solution to those issues. Two new designers shall be hired from
the local area in order to reduce the costs incurred. The changes shall be monitored by both Jean
Marc and Sam. Lastly, the results shall be presented.