Tesla's Service Transformation: An Evaluative Change Management Report

This report evaluates Tesla's change management strategies, focusing on improving service quality and operational efficiency. It begins with a PESTLE analysis to identify opportunities for change, highlighting the need for technological advancements, improved work culture, and diversified product offerings. The report proposes implementing automation and AI-driven systems to address inefficiencies and enhance battery production. It details the resources required for this transformation, including equipment, skilled staff, and budget considerations, emphasizing the importance of proper resource management and training. The report further explores specific plans for improving customer service, such as mobile service appointments and increased availability of parts, along with the potential of Tesla turbine technology for waste heat recovery. It also outlines the steps involved in implementing change, including documentation, technology upgrades, new employee hiring, and strategic adjustments. The analysis underscores the role of AI in enhancing user experience, workflow, and data-driven decision-making within Tesla's operations.

Split Leadership and
management

Contents
INTRODUCTION....................................................................................................................3
MAIN BODY............................................................................................................................3
What needs to change and why?.........................................................................................3
Resources required to implement change..........................................................................4
CONCLUSION.......................................................................................................................11
Reference.................................................................................................................................12

INTRODUCTION
Change management is one of the most advanced concepts which are needed by
virtually every organization in the world as the nature of management and business makes it
necessary for businesses to manage change in varying capacity. This report will highlight the
change management process of Tesla is an American electric motor vehicle company based
on clean energy methods (Ahmad,and Cheng,2018). Tesla deals in electric vehicles and
battery energy storages in both home and bulk scale. This report will include major theories
of leadership, change management and motivation of staff in order to highlight the way in
which change is brought about by the company.
MAIN BODY
What needs to change and why?
In order to find opportunities for change, there is a need to study both the internal and
external environment of business which is highlighted below via a PESTLE analysis.
Political Factor
The political and economical factors are directly affected by the ecological factors. Thus, the
buyers stand a chance of getting a specific tax credit for using an electric car.
Economic factor
Creating cost effective vehicles in the availability of ordinary customer benefits the company
in their business rise. To meet the growing demand in market for electric is the reason to
boost up the economic.
Social factor
The environment friendly attitudes the people and renewable energy resources popularity in
favor of Tesla. In the macro environment remote factor, Tesla gives tough competition to
other competitors (Anderman,2020).
Technology factor
In addition, the latest technology is another feather to the cap. However, technology is ever
evolving. This part of the analysis provides hope for growth in technology enhancement.

Ecological factor
The company has managed to establish itself as a brand because it abides by many such
norms. Environment friendly products like EVs and solar panels are the part of sustainable
future.
Legal Factors
Tesla may introduce its energy solution products in outside of market. Considering legal
macro-environment remote factors Tesla is having opportunity in global automotive market.
On the basis of the above conducted analysis, it is clear that technological aspects are
one of the core strengths of Tesla and the company needs to bring some more changes in this
regard in order to obtain better prospects in their target market. The major complaints about
Tesla has been about its toxic work culture along with the way in which the company
operations are rather inefficient. The company also needs to diversify its product offerings
and undertake better battery production and for the betterment of all these problems, it is
recommended to implement automation and smart AI driven systems as a much needed
change (Grant, and Shandell, 2022).
The main solution statement which can be used to improve the performance of Tesla
includes the use of automation and smart systems along with technological upgradations and
related resource modifications which are all detailed in the newer sections of the report.
Resources required to implement change
The new improvement of the service provided by Tesla to its customers can include
the onset of new product ranges which are meant to progress its stature as a leader in the
electronic vehicle market segment along with using Artificial intelligence systems in its
office and factory premises. There are many resources which will be required in order to
implement the proposed change of supplementing the company’s production and workforce
related operations with AI smart systems along with automation. Some of these requirements
are listed in detail along with relevant information down below.
 Equipment’s – In order to realize this change, Tesla will need to reinforce its
workplace with new systems and machineries which will help the company to become
more efficient in producing better cars and make its workers more productive.

 New staff – Artificial intelligence is a complex technology and in order to integrate
such advanced systems in the operational frameworks of companies like Tesla, skilled
employees related to IT and operations are needed.
 Budget – Although the financial capability of the company is quite vast, proper
formation of budgets related to the hiring costs, equipment’s, delivery and installation
of AI and automation systems in factories and officers is needed.
Apart from the above mentioned resources, there will also be a major requirement of
managing the above resources in a proper manner to extract the maximum extent of
productivity as possible. The staff which will be hired will need to be properly inducted and
given training to handle the automated and smart systems and the existing workers in the
factory will also in need of instructions and supervision while learning to handle the new
equipment’s. Budgeting and use of quality management is needed in order to ensure proper
implementation of change (Hughes,2021).
Plans to implement change
Tesla cars have many fewer moving parts which are reliability added to their long term and
over the air updates are great for both enhancement and fixing many issues. Tesla mobile
service and scheduling appointments for their service directly on the mobile app. It is more
convenient for the most of the customers to easy of access. As they have to bring their car to
the shop or the service center to fix it. Tesla is continuing to improve their customer
interaction and their reliability. Tesla should have plans to implement reliable and cheaper
services to make available for their customers. Tesla service should be compatible by
booking their services of car on mobile application. So that Tesla customers could easily get
their appointment for service on just their mobile. It will reduce the efforts made by
customers for service bookings. By doing this tesla could have good impact on their
customers. Tesla have a lot of bookings already and sometimes customers have to wait for
weeks for their services. Incase this could help in saving customers time (Thomas, V.J. and
Maine, E., 2019).
Many of the Tesla parts are not available in the third-party shops or private servicing centers.
As Tesla itself builds their vehicle and manufacture completely in their own manufacturing
plants. Tesla do not have other manufacturing collaboration so they itself have the original
parts. Tesla should have their motor parts available on the other servicing centers so that it

would be easy for the customers to get those parts easily. Tesla cars have a lot of customers
worldwide and their need of car servicing is also high. Tesla is a global level electric car
manufacturer incase their car servicing is not available in other third-party shops. So Tesla
should introduce their servicing centers except their own so that customers could get the easy
availability of servicing centers. This could help them in overcoming little glitches which do
not require service centers(Jiang, T. 2022).
Tesla turbine offers an attractive option for the expander if an efficient design is well
achieved. Tesla has faced computational and theoretical challenges associated with the
feasibility of Tesla. Tesla turbine in a small-scale waste heat recovery system, this paper
formulates a systematic design methodology to seek optimal parameter and geometrical
model of Tesla. Tesla turbine which is used in coolant waste heat recovery system for their
automobile engine. To achieve this goal, investigation is detailed for the performance of
Tesla turbine, which incorporates experimental and computational fluid dynamics analysis.
Manifests that Tesla turbine achieved good performance at lower rotation-speed.
Performance analysis on the waste heat recovery system under various operating system
conditions based on the comprehensive thermodynamics model. The total power and overall
thermal efficiency of the waste heat recovery systems are clearly increased over low rotation
speed, furtherly which can be improved by selecting viscosity of the working fluid and
number of nozzles. It is desirable and significant to effectively improve power output and
thermal efficiency for an engine of automobile at low cost and expenses (Lugtu Jr, R.C., 2019).
Gantt Chart

Documentation-
Documentation just simply includes the planning criteria of the future implementation. In
Documentation the selected purpose of the organization is included. Documentation includes
the future implementation record which is used to process in future. All steps of
implementations are written in Documentation. Tesla will include the Documentation of its
future plannings that they will implement in their service quality or any other field. Whatever
kind of implementation like hiring employees or anything else for the Company’s better
performance. Documentation is mostly done when there is need of any implementation in the
company. At first survey is done to know about the needs and the failures where company is
facing them. Later on, customer survey is done to know about the needs of customers and

improvement they need in the quality of the Tesla. After all the necessary things are noted
and further on selected for implementation (Santi, G.M).
Technology Change
After noting down changes in documentation first step taken by the organization is their
technology change. The way earlier organization was using technology will be changed. The
pattern of technology is changed as it was before. The needful changes in technology are
implemented. Tesla technology of manufacturing is to be changed in in various ways. Their
manufacturing patterns, changes in technologies in their cars. Technology change brings huge
investment to the organization as there are need of different machines and infrastructures.
Technology plays an important role in making company more profitable was it makes work
easier and faster. By using AI in cars company can take advantage in both systems and in
cars. It can collect data from its surrounding and creates an insight which can be used in
better decision making. AI helps automotive industry to enhance user experience by faster
innovation cycles along with enhancing workflow in maintenance and manufacturing. There
are various AI based solutions which collects and processes data in order to get insight of
vehicle data and increases security and privacy. It is added in value chain, supply
management and in production. It also helps in after sale service of company's product
(McCauley,and Palus,2021).
New Employee Hiring
With the technology change an organization is also in need of the new employees who can
perform the tasks that are needed in the technology change. New employee in the
organization needs to be trained and learn the tasks they are in with. New employee is
sometimes needed to practice the work in which they are needed. Employees who are taken
in the particular field of technology are to be trained for that specific work. Many of the
employees are fresher’s and in case they are trained with their senior ones. This takes lot of
efforts and make huge investments. Many of the fields in an organization needs no employees
and they are just done with the machines and robots. But few of the tasks are done by the
employees which are not placed by the machines they need the employees. To recruit the
employees, they have to make a new work category in which they will be placed. Company
have to hire new talented and skilled employee’s so that they can work with perfection

without any mistake. AI have ability to work with minimum human interference
(Mwakisaghu,2019).
Strategy change
Strategy change is the big criteria in the implementation as the organization has to set their
goals for their better workings in future. Organization set their working strategy in their
production and sells. This strategy helps in the growth of the organization. In strategy change
the organization changes their work pattern as how they were working earlier. This helps in
the enhancement of the work quality from its previous quality. Strategy change is the key
factor for the growth of the business. In strategy change the targeted areas of the organization
are changed with the better enhancement as compared to the previous. Strategy change is
mostly done to bring out the better result as compared to earlier time. In strategy change the
organization is being provided better equipment and smart work for better result. Few of the
areas like in production a new and smart technology is used to bring out the better-quality
output which will provide the better response from the clients of an organization.
Leadership style
It is important to opt better leadership strategy which will help employees in getting right
guidance. The leadership style opted by company is coaching as it can be found beneficial
based on nature and size of company. As it is a automotive company which requires skills
and right direction to operate its operations. In this type of leadership style, team leader focus
on assessing strengths and weaknesses of subordinates and to direct and instruct so as to
eliminate their weakness and make them mor eprodective at workplace. By this leadership
style, company can take advantage of skilled employees and use them in an optimal manner
(Tang, K.N., 2019.). This can be done by conducting training sessions so as to enhance
existing skills and to learn new skills (Njagi,2019).
Kurt Lewin change theory
As it becomes difficult for company to implement change as employees are still relying on
traditional working method. It is complex to influence employees for change and in order to
make it successful, company have decided to opt Kurt change management theory. Following
are elements of change management theory.

Unfreeze -This is the most critical stage of change management as it involves creation of
willingness of people to change by providing foster environment so as to make comfortable.
In this stage, communication plays an important role in getting expected support and
involvement of people.
Change -In this stage of change management, it includes new ways of doing things and in
this stage employees are unfrozen and actual change takes place.
Refreezing -In this stage, employees are transferred from change to a stable stage and
employees have accepted to change to new technology (Rudolph,Murphy,and Zacher,2020).
Implementation and measuring effectiveness
After all the criteria at last there are all selected processes being put in effect.
Implementation is the last stage of changing work patterns. In this the all works of thought
process are being done in action. In implementation the final step is done to introduce the all
practices of the changes that were brought to the make changes. After implementing change,
it is important to measure effectiveness of plan so that corrective measure can be taken into
account. It is important to monitor each activities of company and to ensure that they are
doing according to pre-determined activities or not. The other best method to assess
effectiveness of action plan is by benchmarking. Company can compare its actual
performance by preset standards and difference will reflect effectiveness. If it indicates
negative, then company have to take corrective measures in order to eliminate risk (Tang,
2019). AI have impacted on company's performance as it has reduced human efforts and
time. It becomes complex for company to collect data and interpret and filtering in order to
create insight. But by using AI in Tesla, it can automatically collect data from various digital
sources and stores in its memory which can be utilized in further operations of company. The
quality management issues have been resolved before implementation change, it can be seen
that various challenges faced by company such as poor after sale service, complaints in
internal management. The other issue which company is facing is poor performance
improvement but after implementation of AI company can get to know about in which areas
company is lacking and makes it easier for manager in effective decision making (Solinger,
Jansen and Cornelissen, 2020).
Quality Management of Tesla

Tesla is a global world leading electric automobile company. It has a existing level of quality
management already. Whereas to go for more quality management Tesla should meet the
needs of the customers. At first Tesla should bring a survey to know about the actual needs of
the clients in the market area. Tesla can even have a survey to ask people about enhancement
in their service and improvement in quality. Later on the selected points for the improvement
are put into action. There is improvement of that particular area which leads to better quality
of service as compared to the earlier time. This improvement of service by Tesla results in
customer satisfaction. Which will effect the image of Tesla and increase in the rise in sales of
Tesla (Draganic, T. 2019).
Tesla is an environment friendly organization as it produces the electric vehicles which is a
big step towards the future. Thus, the tesla could add more such features to their cars which
may lead to more ecofriendly. Quality management results in rise of the Tesla image and
name. Quality management can affect the Tesla competitors as Tesla itself increases their
level in their quality providing so there would be challenges for the competitors to compete
with Tesla. Quality management is the big factor for an organization which may result in the
image and quality. Tesla itself has a better quality management which is responsible for the
rise in its image. Quality management is responsible for the stability of Tesla in future. The
brand image is directly responsible for the stability of Tesla in future. Quality management
decreases the competition level of Tesla from its competitors. In future if the quality
increases there will be less competition against Tesla and that will be a Plus point for the
Tesla. Quality management can also make trust for their customers as there would be level of
trust increasing day by day with the increasing amount of quality management (Lang ,J.W.
2021).
CONCLUSION
This report highlighted the way in which change is necessary for companies to bring
in order to solve their problems related to toxic work culture and lack of productivity. This
report includes a detailed external environmental analysis in order to highlight a problem
which required immediate change which was identified as use of automated and smart AI
systems. The use of leadership, change management and motivation theories was used
frequently in the completion of this report to highlight the various ways in which change is
required. It was concluded from this report that change management is a complex process
which requires immense study and analysis for proper implementation.

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