MOD’s strategy did not give good results. That’s why the partnering with Babcock Marine came to play. Cost reduction and provide quality service through effective operation was the main objective of Babcock Marine where MOD concerns more about infrastructure.
Structure
MOD used more centralized management system and they had 7 management layers where Babcock had 4 layers and decentralized management structure.
System
The way MOD managed Faslane did not give good results. Though they were systematic they did not consider new ways to improve naval base. But Babcock often looked for changes. For example, process reviewing time took 14 days and everyone looked at it at day 13. Therefore overall process took 56 days. Then they …show more content…
Kotter’s 8 Change Process
This model was developed by Dr.John Kotter after researching 40 years. He explored more than 100 different companies to come to this conclusion. Dr.Kotters says that more than 70% of organizations fail to manage change process. Reason for failures in change process is not following the process and not considering the most important parts of change process. This model is very much applicable to analyze transformation of Faslane. I have applied Kotter’s 8 steps of change process as below.
Establishing a sense of urgency.
MOD realized that they need to change the management of Faslane after analyzing their expenditure and operational effectiveness in year 2000. Then in year 2002 they gave the management duties to Babcock Marine to reduce cost and increase performance. The approach of Babcock Marine to this reveals the urgency. They transferred people and initial aim was analyzing the way money has spent.
Creating a guiding coalition
This is about creating good relationship with employees. To create strong relationship with employees, Babcock reduced management layers to 4 and let them to form their own teams and duties.
Developing a vision for …show more content…
Therefore they had to transfer some skilled employees who familiar to the environment from MOD for smooth running. It helped them to make the change realistic and it can be identified as emergent decision.
People in Faslane had 14 days to review each stage of process which makes delays where overall process takes 56 days. So they reduced review time to 2 days and 56 days review process came down to 6 days. This process re-engineering saved lot of time and it is a good example of the success of quick decision making of Babcock Marine at Faslane.
Babcock Marine has done a good research to find allies. Naval base commander was one of them. And also they managed good relationship with MOD and Royal Navy. Because of 9.5% of employment of that area represents from naval base, they had to keep good relationship with two local councils to make sure that there will not be hindrances from stakeholders.
Considering above mentioned factors, we can see both deliberate planning and emergent actions have taken place at Faslane by Babcock Marine. Therefore it is clear that both strategies will come in to play depending on the situation and taking the right decision at the right time is the most important thing which Babcock Marine was competent of