The slides give a quick rundown through the change efforts proactively managed and successfully driven by Lafarge India through their program 'Abhilasha 2015' for which they received a 'Special Commendation Award' at the Best Change Interventions at Asia Awards (BCIA).
2. Company Profile:
The global leader in building
materials and solutions
40%
Cement
20%
Ready Mix Concrete
10%
Aggregates
30%
Solutions and Products
• 75,000 employees in
around 80 countries
• Top-ranking player in
cement, aggregates and
concrete businesses
• Has been a part of Dow
Jones Sustainability
World Index since 2010
4. YEAR PROCESS
1833 1864 1887 1980-90 2008
The Lafarge company
was born in Le Teil,
France
Birth
Following it commercial
success, Lafarge opened
a research laboratory
near Le Teil, France
The World’s First Research
Laboratory Lafarge India inherited
over 80 plants across the
country
Acquired L&T’s Concrete
Business
Lafarge led a significant
international expansion with new
operations in East Africa and Asia
including India
Going
globalLafarge won the
“contract of the century”
in Egypt for Suez Canal
Project
First Major
Project
5. The Need for Change
• Drastic changes in
the Ready Mix
business
• Competition from
local as well as
organized players
• Customer needs had
changed
• Customer
expectations also
changed
• Shifting focus from
merely low price
bidding to
prescriptive selling
• Increasing Volume
• Delivering Value
Added Products
• Building efficiencies
in core operational
areas
Revamping the
Business
Bringing a Turnaround
Strategy
• Market mapping
• Strategically improving
customer base
• Building passionate and
motivated teams with
clear direction around
the turnaround plan
The Challenges
Customer NeedsIntense Competition
6. DIAGNOSISIt focused on:
• Understanding organizational problems through an appropriate model in order to
realize the turnaround.
• Defining the changes necessary for capitalizing on the opportunities available in
the market.
• This initiative was aptly named as ‘Abhilasha 2015’ reflecting the ardent desire of
the team to change.
Organisational Level
• Need of new organisational
structure- Job Descriptions and
Competency assessment
• Infusion Of Fresh Energy and
Job rotation for critical positions
1
Group Level
• Sales and Marketing
Market Segmentation
Pricing Model
Shift to Prescriptive Selling
• Production
Development of standard operations
Plant Network Optimization
• Delivery and Pumps
Development of standard operations
Need for Task Force including Marketing
and Procurement team
Development of delivery Performance KPIs
2
Individual Level
• Need for development of
customer centricity among
employees
• Constant Communication
of milestones achieved
.
3
The 3 levels of activities explored in
the process of Diagnosis:
8. Level of challenge Identification
Identified by top management
Implemented
across all
channels after
problem
identification.
9. Leadership Style
The leadership style used by Lafarge is a combination of :
Democratic leadership – It tried to take opinions from different members at
different levels.
Transformational leadership – Since the organization was going through lots
of changes, the tasks and how they were performed were also changing
frequently.
10. CHANGE MODEL
KOTTER’S 8 STEP MODEL:
Establishing A Sense
of Urgency
Form a Powerful
Coalition
Creating a vision
Removing Obstacles
Anchor the changesBuild on the changeCreate short term
wins
Communicating the
vision
1 2 3
45
6 7 8
11. 1. Establishing A Sense of
Urgency
To create a sense of urgency, challenging timelines were drawn
up for all actions.
Leaders were identified to drive the program and they had to
go through periodic reviews.
12. 2. Form a Powerful
Coalition
A coalition of External project team and
Internal project team was formed
The internal project team consisted of
people from different functions
14. 4.Communicate the
vision
Posters were launched
Videos were created detailing the new areas the company wanted
to focus upon.
LSIP workshops were conducted and meetings were held to
ensure everybody had same understanding.
15. 5.Removing Obstacles
Most of the obstacles were removed with the help of the LSIP
(Large Scale Interactive Process).
The LSIP helped in -
Creating a shared vision
Effective communication of strategy to middle level managers
Strategy implementation support
16. 6.Create short term wins
After the success of the LSIP, monthly success stories
shared with all employees to keep winning momentum
going.
17. 7.Building on the change
Steering committees were formed for consistent review of the
progress made and of overall process
Steering committees Formed
Telecallers employed at zonal offices with purpose of
obtaining honest feedback.
Customer service Centers
18. 8.Anchoring the Change
Steering
committees formed
to review and
monitor regular
progress.
100 day action
planning committee
charted
Progress
periodically tracked
and reviewed
Customer service
centers formed for
feedback
19. Outcome
05Increased value added production sales and
change in customer segmentation.
02
Lafarge India team won ‘Special
Commendation Award’ at the BCIA
Achievement of ‘Abhilasha’ 100 day plan across
all functions.
01
03
Greater opportunities for growth of
existing employees
Additional hiring of 185 employees for support
of new structures.
0
4Increased customer satisfaction scores by
ninety per cent.
0
6