Roche Italy's Successful Radical Transformation: Overcoming Resistance and Achieving Pluralism Q&A

Roche Italy's Successful Radical Transformation: Overcoming Resistance and Achieving Pluralism

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Roche Italy's Strategic Dimensions for Radical Organizational Transformation

“Which organizational dimensions was Roche Italy obliged to control altogether in order to successfully handle such a radical transformation? How, and according to which time frames? What contingencies did the organization have to consider when those dimensions were identified?”

Roche Italy obliged to control the three areas or dimensions to take the control for handling the radical transformation. These areas are processes and governance, organizational model and capabilities, leadership culture, and mindset. These are the dimension of areas through which the organizational leaders can make significant changes.

Structure

The leaders of Roche Italy have decided to reshape the organizational operation by promoting fast responsiveness to customers by providing replies to customers quickly. They have also decided to enhance efficiency and effectiveness by making fast decisions for the organizational work. They aim to make the services customer-centric which means the customers are the main center of the operations. They are intended to improve the sales process by allowing the customers to provide their feedback and voice (Abdi and Rathmaya, 2017). The aim of the sale process transformation of the company seems to be to allow the buyer a voice by giving a clear and fast contact point within Roche Italy for customer-related information.

Process

The company brought changes in the budgeting process in which only the two sectors profit and loss are chosen. They have also decided not to accept the budget negotiation process along with the elimination of the monthly budget plans revision. Apart from that, it has also been decided that the rolling-based planning process will be formed every 6 months that will monitor only the macro components.

. Following the transformation, it was planned to implement a rolling-based planning activity every six months, with only macro-elements instead of individual aspects being examined.

The transformation process and the leaders have understood that new responsibilities and capabilities are imported to be performed to provide customer-centricity in the company. For boosting capabilities and responsibilities it has been decided that long-term people planning will be chosen and there will also be a participative approach.

Culture

Voluntary leave has also been implemented with the advantage of enrolling in the scheme. The scheme has been activated for the workers to offer them attractive incentives and financial bonuses for enhancing their satisfaction and loyalty to the organization. Apart from that providing Health insurance tax support and other benefits to the employees, Roche Italy wants to improve people's satisfaction and thereby they try to engage the employees towards the organization. This system will help them in employee retention providing them responsibilities and capabilities (Abdi and Rathmaya, 2017).

They have tackled the change by improving the system in which they have focused on acquiring statistics, data science, and artificial intelligence-based competencies among the employees. By doing so the organization can get more productive and capable employees for attacking different activities in the organization.

Leadership practices

After the transformation, the leadership practices have also been changed for tackling the radical transformation.

Transformational leadership

The transformational leaders encourage and insprire the employees to motivate them for innovation (Eliyana and Ma’arif, 2019). The main motif of these leaders is to incease satisfactiona of the employees by encouraging and motivating them to develop their performance. By encouraging them the leaders try to shape a better future of the company. For encouraging the employees the leaders of Roche Italy have decided to help the employees work in team and develop the communication skills and other skills by effective training to the employees.

Transformational leadershi

Team work

Teamwork has been provided much significance and importance in organizational work. Teamwork provides enough opportunities to enhance the skills and knowledge of the employees that can help in meeting the organizational goals and objectives. The leaders decided that the employees will work daily based on their working time in a team. Communication and interaction in the team will be the main key factors (Abdi and Rathmaya, 2017).

Training

Roche Italy has therefore promoted effective and necessary training and educational programs from all levels to improve the abilities of the workers to work in a team and boost their communication and interaction skills. A focus on technical competencies has also been implemented to manage the transformation. They have promoted some seminars for technical learning tasks and activities. They promoted digital and customer experience competencies with the help of technological and digital skills (Abdi and Rathmaya, 2017). The leaders have decided to improve the skills of the employees to overcome the challenges after the radical transformation.

Time frame

A time frame has been chosen for the organizational dimensions to control the radical transformation. For the training for leadership and organizational agility to the employees, the leaders have chosen 28 and 29th of November 2018. And the time frame for this training period was estimated for 14th of January to 8th March 2019 based on three weeks. On 1st June 2019, the transformation office was created and the field meeting was decided to be on 25th to 28th of June 2019 (Abdi and Rathmaya, 2017).

Contingencies

The main contingencies that the organization can face while identifying these dimensions include the resistance from the employees and the emergence of risks.

The organization needs to handle the radical transformation by avoiding or eliminating resistance from the employees by providing them with correct and accurate information about the change and also by preparing them for the change process. Many employees can become resistant to the change process due to fear of job loss. These are resistance needs to be overcome by clearing the doubts of the employees and explaining all the details related to radical transformation (Abdi and Rathmaya, 2017).

They also need to consider the importance of risk they can face while implementing the radical transformation. A risk management team needs to be developed for dealing with the risks. The risk assessment can be strategic early performed for getting the desired result.

“How did Roche Italy handle resistance to change from some employees? More broadly, how could such resistance be managed during radical transformation?”

Roche Italy managed the resistance that came from the employees very effectively by creating some strategies to manage the employees. First of all, they have decided to bring some technology-based training system for the employees to help them tackle the radical transformation.

Technical skills

Technological advancement can provide necessary skills and know-how to the employees for facing the challenges during the transformation of the organizational processes. And necessary programs were the only modes that the organizational leaders have accepted to empower the employees with the proper guidance and skills. They also provided effective skills to work in a team for developing their communication and interaction skills. It also helped them tackle the radical transformation challenges in the organization. As the radical transformation has brought many changes in organizational operations, artificial intelligence automation and other technical activities have become very crucial for the company. The employees need these skills to deal with the challenges they face in the radical transformation process (Abdi and Rathmaya, 2017). To deal with such challenges the managers have developed technical skill-based training for the employees to boost their knowledge in technical know-how. It can help in improving the growth of the company as well as the skill development of the employees which can enhance the organizational growth.

Training activities

Providing training to the employees about how and why the transformation is being held and what is the main goal to achieve after the transformation. Helping the employees to gain their knowledge and understanding power about the change is the most important and required factor for the leaders before bringing a change. Kinesis workshop was developed for helping the employees to align with the new agile and transformational process. Workshops on the agile scrum team training process, co-active coaching fundamentals, and agile in action coaching were developed for helping the employees to face the radical transformation (Abdi and Rathmaya, 2017). These training systems were based on the fundamentals that can help the employees to deal with the agile principles.

teamwork skills

Teamwork knowledge is very significant because it provides enough potential to communicate with other team members for enhancing knowledge and skills. Apart from that effective employee satisfaction schemes have also been developed to help their employees. The leaders have also promoted some training procedures that can have the employees gain knowledge in communication and interaction (Abdi and Rathmaya, 2017). These skills development training can help the employees improve their skills while working in a team.

Employee satisfaction

Incentives, benefits tax insurance have been promoted in the organization which can help employees increase their satisfaction and they can face that radical transformation (Abdi and Rathmaya, 2017). When the employees are resistant to change or are resistant to the radical transformation process, the leaders must maintain satisfaction and confidence in all the employees. Satisfaction can boost their confidence for working with their best efforts for organizational success even after the radical transformation that they face challenges with. For this, the benefits and incentives are the best options to manage the satisfaction of the employees.

Overcome the resistance

Regardless of how Roche Italy manages Change management and radical transformation and resistance from the employees is a thing that always comes. The leaders can engage the employees who have their resistance to the change. By engaging them the leaders can show their concerns. It can therefore lessen the problem of resistance from the employees. By overcoming the opposition and resistance from the employees, the managers need to provide them some time to give their effect and input. It, therefore, helps the employees feel their importance to the organization. By communicating with the employees can also help them overcome their opposition and resistance to the change (Kasiaheng et al., 2021). The Roche Italy leaders can convey every minute detail related to the radical transformation process for developing their understanding about that change. They can also provide the necessary advice for how to delete with the change. Clarifying all the doubts and minor details of the transformation can help the employees make informed and boost their confidence about the changes. This is how they can help the leaders to bring the changes with positive results.

Providing information about innovation

Change is the most required form for organizational development and growth. Bringing change in transformation innovation can be the best option. The leaders of Rome Italy can bring innovation in the organizational processes for achieving good success. It is needed to provide information about the innovation process and what innovative ideas and processes the company is using to get a desirable result (Abdi, 2017). The employees have ideas about the innovation process. They can also help in thinking innovatively to radically transform the organizational process and help Change management in improving organizational performance.

Effectively engagement of the employees

The leaders need to respond to the feedback and opinion of the employees. Responding to feedback and opinions can help the leaders involve the employees in the organizational process. The leaders can also engage the employee in the radical transformation process by clearing their doubts and answering all the questions of the employees. There may be many questions of the employees regarding the transformation process but the leaders need to deal with his questions strategically.

Strategies to prepare for the change

The leaders of Roche Italy at first need to prepare the employees for the change process by creating some plans for managing the change and also implementing some supportive systems for the employees to help them deal with the changes. When they have provided enough information to the employees for preparing them for the transformational changes they will not become resistive (Rathmaya and Abdi, 2017). The employees to face the small changes and continuously improve them in those small changes at several stages can also help them prepare for the big radical transformation. Therefore, proper strategies and plans are required for implementing those changes. It can thereby help the leaders overcome the resistance from the employees.

Communication of the change effectively

Employees need to be provided with information about what is going on. Informal and formal communication systems with the employees can allow the leaders to ensure that all the people have received information about the radical transformation. They have increased the various channels and communication channels for providing relevant information to the employees.

“How did Roche Italy manage to simultaneously achieve wide participation and a unified leadership voice? In general, how could an organization simultaneously achieve its pluralism/participation and efficiency/effectiveness goals while meeting the objectives of transformation?”

Pluralism participation and effectiveness of the goals of radical transformation can be achieved with the help of the implementation of an effective agile leadership VACC model which has four core dimensions.

The VACC model focuses on four fundamentals including visionary, architect, Coach, and catalyst. These leaders are important for organizational Change management (Luries et al., 2018). These leaders will be able to increase the value and importance of the stakeholders by enhancing customers in a company where the employees can provide meaningful progress for the organization.

Visionary

The visionary leaders are capable of building vision and purpose for the entire network system. These leaders can engage the employees in a communication and network system for increasing their vision. The visionary leader of Roche Italy can provide the employees with the proper revision of the transformation for helping them understand the change. Roche Italy leaders can implement these visionary stages of the VACC model for building the vision of the radical transformation process by communicating with employees with proper information (Smet et al., 2018).

An architect

These leaders are able to handle the networks that can allow effective actions for the team management. And they can support the team members and the employees and can also motivate them for making necessary decisions for dealing with the changes and transformation (Lurie et al., 2018). The leaders of Roche Italy can support the employees by helping them make decisions as they handle the network system.

A coach

These leaders can help the employees in building their skills and knowledge for organizational activities. They are the coach of the organization and they guide the employees with proper instructions by developing their knowledge and understanding power (George et al., 2018). The employees of Roche Italy need to be provided with the necessary skill development training and communication skill training for enhancing their knowledge and empowering them with the potential to deal with the radical transformation process.

A catalyst

And these leaders are capable of prioritizing the focus. They can eliminate any resistance and obstacles and can encourage the team members with motivation and confidence. Proper training and communication system help employees remove their resistance to implemented changes (George et al., 2018).

For managing the participation and a unified leadership voice the management department has decided to develop the leadership. 360-degree assessments of leaders and line managers were developed for increasing the awareness among the leaders of reactive styles and creativity. Roche Italy conducted a very significant internal information spreading system in which the main purpose of the process was to keep promoting the initiatives taken by the organization and keep the people informed (Abdi and Rathmaya, 2017).

This internal information spreading systems consist of meetings and seminars in which people were informed about the functions so that they can take part in the processes and provide their voice. For achieving wide participation and getting leadership wise they have also conducted several field meetings, seminars, and functions. The main purpose of this meeting was to inform employees and leaders. They have also provided regular newsletters to inform people. For increasing participation of the leaders and employees, these types of Intel information building systems and processes are very crucial because they help in providing information to employees and people (Abdi and Rathmaya, 2017).

 Moreover, a communication system based on What’s up and other communication channels were also involved for keeping the employees updated. Different communication channels were developed for speeding information in the form of digital and traditional social and experience-based channels. The channels include field meetings, Roche net, what's up messages, etc. the Hexagon the name of the newsletter, and bro broker in which information was spread (Abdi and Rathmaya, 2017).

An organization can effectively meet the objectives of the transformation by implementing necessary strategies and plans that can systematically lead the organizational managers and leaders to meet those objectives for bringing change.

Not only creating strategies but also successfully implementing the strategies can help in making the objectives successful. Leadership plays a very significant role in this context. The leaders can provide necessary and effective information to the employees for dealing with that change. Employees know why the change is implemented and what is the purpose of the change and all the details related to the radical transformation they can effectively work for the objectives of the transformation. Without Knowing proper information about the transformation the employees cannot work effectively to achieve the goals (Ismail and Ahmad, 2017). Therefore it is required active participation and pluralism in the organization.

 Participation of the employees and leaders can help the transformation objectives become successful. The leaders need to provide the employees with proper information regarding the radical transformation. Empowering the employees with guidance instructions and necessary support can help them manage and deal with the transformation. Also, eliminate the resistance of the employees by resulting in the entire transformation process becoming effective. Active participation in pluralism happens only when the employees have taken interest in the transformation process.

Pluralism is very important for transformation. The organizational leaders and employees need to participate in a group in the transformation process to significantly complete the entire radical transformation to get the best result out of it. For boosting pluralism and participation Roche Italy also can increase the trust and loyalty of the skilled and talented employees. Also need to allow the employees to achieve the goals of the transformations by empowering them with effective tools and roles. Training and communication activities only areas which could help the leaders in boosting pluralism and participation for achieving the goals of the transformation process.

The leaders can inform all the people participating in the transformation process by providing the necessary information regarding the entire change management.

Communication system

Pluralism and participation can be influenced by the leaders by building a robust and healthy communication system among the employees within the work environment. The leaders can also develop the communication skills of the employees for helping them interact with other people in the organization. It can help them share knowledge and information among women and others about the transformation process. It also empowers the employees with the capability to face the transformation and also actively participate in the transformation process to achieve the most desirable outcome (Ismail and Ahmad, 2017). For building a communication system the leaders have also implemented the usage of What’s up to communication and different channels of Roche Italy. These channels can also help the leaders influence the pluralism and participation process.

Information about radical transformation

The main and the most important matter is to provide the necessary and right information. The leaders can uniformly provide the necessary information to the participants about the transformation process. And empowering the participants with the right information can help them build their capabilities to bear the changes and reduce their resistance to the changes.

Strategic implementation

Implementation of the proper strategies for implementing the radical transformation and leading it towards success is the most required thing.

“What are the potential disadvantages of a less formal and more “qualitative” way of measuring both individual and team performance? In your opinion, how could such threats be eliminated or at least, mitigated? Similarly, what could be some of the potential disadvantages of an increase in smart working for an organization that is strongly team based?”

In principle, quantitative performance assessments sound fantastic, but there are certain professions in which work performance is more ambiguous. A company's sales, product, advertising, and finance departments may all be measured quantitatively at any time. There will be bias in the sample due to the obvious conflicting goals of the various HR departments (Cappetta and Pistilli, n.d). Human resources (HR) entrusted with gathering employee feedback may be biased, either deliberately or subconsciously, to choose samples that support the desired conclusion, which is another argument against qualitative approaches alone.

When firms urge their employees to volunteer their opinions, the risk of self-selection bias increases. If an HR department asks for participants in a paper, online questionnaire, or focus group, there will be a problem with employees putting themselves up. The idea is that this group, instead of being a random sample of a department, will necessarily have reduced its relevance to all those who normally are prepared to come out with their thoughts. Whether or whether a participant consented, quantitative data was collected. Qualitative data collection is flawed for its skewed nature. There's no way to predict how bringing together such a group of people would affect them in unexpected ways, but the participants will certainly be affected in some manner.

The performance management system had to be restructured to incorporate the new structure of responsibilities. As a result, the new basic premise was that Roche Italy's success must be related not only to its ability to achieve certain objectives but to how it achieved those goals. Because of this, half of the new performance management system was based on strategic considerations, and the other half was focused on how to accomplish the same.

The new weighting method represented some of the balance among GIPs and performance objectives linked to pathologies, competence centers, and the development of new skills. A "what" indicator might now reflect the customer experience, or business-oriented indicators like the maximization of treatment efficacy and patient coverage for rare illnesses as well as the quantitative what objective (“traditionally represented by sales performance”). For instance, the time it takes for a medicine to be approved may be used as a numerical metric; this metric could be used as a metric for both individual and communal goals(Cappetta and Pistilli, n.d.). To evaluate their outcomes, each GIP selected the most relevant quantitative metric. There is a second, equally important, element to this study that deals with the actions and attitudes that are used to achieve certain goals, and for the most part, qualitative indices assessed this aspect. Moreover, certain indications were linked to individual conduct, while others were linked to group behavior.

According to worldwide best practices, the evaluation of the performance management system was conducted. New performance measures are designed to generate friction between technological superiority and consumer focus by aligning Roche's two recently founded responsibility axes (“Global Innovation Partners (GIPs) and Competence Centers” (CCs)). What and how were envisaged as two building pieces for each fundamental component of the new performance management strategy in practice. Consumer experience and the foundation for the national team's goals were both reviewed using business analytics as well as customer insights as part of the "what" element. Individual behavior-building pieces were broken down into their functional capacities (Cappetta and Pistilli, n.d.). Second-block indications were analyzed using input from peers and line managers, as well as from the line manager, function director, and customers (where relevant) in the first block. What1 (customer experience) was assessed as a reflection of Roche's desire "to be the first company for customer experience in three years and to be listed among those top three firms in the market." As a result, the whole Italian affiliate's quality was evaluated using the same three-point scale: When one gets a score of 3, it means that total performance fell short of expectations, therefore one will need to step up your game. If one got a 2, it means their contribution was adequate; but if you got a 1, it means your contribution was exceptional and went above and beyond what was expected.

Different tactics were outlined for each squad in the "what2" building block (the goals of the national team). As per the general criteria, each team needed two performance indicators, such as numerical business drivers, particular milestones completed, or other performance indicators. These goals must be "consistent with Roche Italy's strategic priorities and the priorities of each team," "impactful and meaningful for Roche and its key stakeholders," "specific and unambiguous," "ambitious, following the logic of the so-called "Best case mindset," and "measurable with reliable methodologies."

From 2021 forward, performance evaluation will indeed be based on a thorough skillset that is separated by professional category and specified by each function head, with uniformity and homogeneity across the entire Italian division for the "how1" block (functional capabilities). As a result, one of Roche Italy's most important strategic initiatives was the "how1" block. However, by 2021 the organization's success would be evaluated using qualitative and individual advancement measurements that would be based on the monitoring of each employee's talents and abilities. Individuals' capacity to "listen and understand," "co-create and be proactive," "implement, exhibiting a solutions-oriented mentality," and "monitor and learn from failure" were among the most important skills to be evaluated(Cappetta and Pistilli, n.d.).

To sum it all up, the "how2" block (individual conduct) also was evaluated at the individual level, but now with distinct criteria for individual donors and people managers. Qualitative and motivated by individual growth, the performance evaluation procedure in this instance was led by the observation of desirable individual corporate behaviors. Using these five critical phases, the performance of this building component may be evaluated: All Roche workers are expected to submit a list of "most appropriate peers" to be implicated in the evaluation of their performance; (2) "each worker proposed a list of'most appropriate' peers ("e.g., colleagues with adequate visibility of their daily working activities"); (3) "three to five peers would be hired to make the process easier while collecting valuable insights"; (4) "each colleague would answer standard qualitative questions related to individual desired corporatization".

References

Abdi, S. and Rathmaya, N., 2017. Managing employees and promoting internal communication during change: A case study of change management at MTR Tunnelbanan AB. https://www.diva-portal.org/smash/get/diva2:1155081/FULLTEXT01.pdf

Ahmad, M.H., Ismail, S., Rani, W.N.M.W.M. and Wahab, M.H., 2017, October. Trust in management, communication and organizational commitment: Factors influencing readiness for change management in organization. In Aip conference proceedings (Vol. 1891, No. 1, p. 020019). AIP Publishing LLC. https://aip.scitation.org/doi/abs/10.1063/1.5005352https://aip.scitation.org/doi/abs/10.1063/1.5005352

De Smet, A., Lurie, M. and St George, A., 2018. Leading agile transformation: The new capabilities leaders need to build 21st-century organizations. McKinsey & Company. https://www.mckinsey.com/~/media/mckinsey/business%20functions/organization/our%20insights/leading%20agile%20transformation%20the%20new%20capabilities%20leaders%20need%20to%20build/leading-agile-transformation-the-new-capabilities-leaders-need-to-build-21st-century-organizations.pdf

Eliyana, A. and Ma’arif, S., 2019. Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), pp.144-150.

Kasiaheng, N.A., Lapian, S.L. and Tumbuan, W.J., 2021. CHANGE MANAGEMENT, EMPLOYEES’RESISTANCE, ORGANIZATIONAL COMMUNICATION, AND ORGANIZATIONAL COMMITMENT TOWARD CHANGE IMPLEMENTATION AT PT. BANK SULUTGO. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 9(4), pp.632-639. https://ejournal.unsrat.ac.id/index.php/emba/article/view/36496