Strategic Change Management: Analysis of Apex Engineering Ltd

This report outlines a comprehensive change management strategy for Apex Engineering, a manufacturer of custom cranes and hoists. Facing increased international competition and declining sales, Apex aims to reduce design costs by 20%, expand into South Asia, and foster innovation. The report includes a SWOT analysis, a revised mission and vision, and key strategies for engineering. It identifies key stakeholders, analyzes company expenses, and proposes outsourcing options. A restructured team with defined roles, a personal development plan, and meaningful targets are suggested. The report also details a knowledge management strategy and a change management process using Kotter's 8-step model to ensure successful implementation of changes, including cost reduction, market expansion, and improved organizational efficiency, drawing upon Lewis' change theory. The recommended approach involves a phased implementation plan over 24 months, focusing on communication, restructuring, and continuous monitoring.

MANAGEMENT OF CHANGE
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CONTENTS
 Introduction
 About apex engineering
 SWOT analysis of apex engineering
 Engineering Mission and vision
 Strategy for engineering
 Key stakeholders for the engineering
 Company expenses
 Outsourcing
 Current team structure and roles
 Proposed team structure and roles
 Proposed personal development plan
 Targets and metrics
 Knowledge management strategy
 Change management process
 Requirement for change
 Objectives of apex engineering
 Stakeholder map
 Model for change
 Conclusion
 References

INTRODUCTION
Engineering mission and vision
Key stakeholders involved
Outsourcing
Review of team structure and roles
Personal development plan for all team members
Meaningful targets and metrics to effectively manage groups and
individuals to achieve objectives
Knowledge management strategy for the engineering function
Change management process to affect the changes utilizing
Kotter’s 8 Steps

ABOUT APEX ENGINEERING
 Small manufacturing company that produces custom
build cranes and hoists for the marine industry
 Established in 1958 and have an excellent reputation
for quality and delivery
 Considered to be the best custom marine crane builder
 These products are highly legislated, due to safety
concerns
 However, due to an increase in the international
competition, Apex has lost some orders from long
established customers and this issue is required to be
resolved

SWOT ANALYSIS OF APEX
ENGINEERING
Strengths
•Quality of products
•Timely delivery
•Strong goodwill
•Small size of the organization
Weaknesses
•High costs
•Lack of innovation
Opportunities
•New and unexplored market
•Scope of expanding operations
in South Asia
Threats
•Decline in the sales
•Emergence of new competitors
•Intense competition in the
local as well as international
market

ENGINEERING MISSION AND VISION
Mission
To provide the
best quality
products and
services to our
customers
Vision
To implement
innovation in the
business
strategies for
expanding the
business
operations in
other markets

STRATEGY FOR ENGINEERING
Reducing
the overall
costs
incurred by
the
organization
Expand
business
into other
markets
especially in
South Asia
Focus upon
innovation
in products
and delivery
Emphasize
upon team
developmen
t and
change
manageme
nt

KEY STAKEHOLDERS AND STAKEHOLDER
MAP FOR THE ENGINEERING

COMPANY EXPENSES
Employer
Costs
60%
Office Overheads
10%
Travel Costs
16%
CAD & Software
Specialist
3%
Consumables
2%
Expenses
8%
Miscellaneous
1%
% Breakdown

WHY CHANGE IS NECESSARY?

IMPORTANCE OF CHANGE
Technological
advancement
Customer need
satisfaction
Growth opportunities
Changes in the economy

KEYS TO SUCCESSFUL CHANGE