Lars Kolind's Case Study: Oticon The Hearing Aid Technology

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Being a stable organization is not easy. Oticon the hearing aids technology in Denmark, this company has established since1970s.Before becoming a stable organization, once Oticon was failed their market share had dropped 8 percent in 1987 and then the company’s money starting to decline. Fortunately, there was a new chief executive officer A.K.A CEO name Lars Kolind, he used an organizational change strategy which is a process that company use for changes its operating methods, technologies, organizational structure, whole structure to readjust an organization working system. So there are 8 steps of organizational change that Oticon have taken for their changes.
First is Establish a sense of urgency. This strategy uses to encourage ever part
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When employees started to understand on new vision that the company has created, the next step is trying to get rid of the obstacles that may happen during the process of changing. So they need an optimistic leader with high ability to make a better vision of a working system. For Oticon, Kolind has readjusted the sitting position in the company by making every related part sit together because he wants them to work much more closely to make things happen faster and more creatively. He need them to support to each other. So anyone have an opportunity to create a new idea and start a new project anytime, he or she can act like a project …show more content…
The key to make staff in the company have a high performance is to create a short term of the project or target to get a taste of victory early in the change process within a short time like to get quick win to make cheer up for employees. Make a work that can do it in everywhere, not only in the office, like organize a project to bring employees to study from other sources. And give reward to staff that make accomplishing goals for the company. For Oticon, the vision that Kolind used had brought the company success again. In 1995, Oticon has increased 100 percent on revenue and profit has increase ten-fold, as well as the company’s sales were growing at 20 percent per year, after a period of almost 10 years without real growth.
Seventh is Build on the change. Short-term wins are only the beginning of what needs to be done to achieve long-term wins. Kolind has continued to develop and focused on producing new generation or new product line of electronic hearing aids that Oticon was break through the culture. Kolind has made Oticon to the new direction. After winning the short terms, Oticon was allowed to regain its position as one of the world’s top three Hearing Aid producer.
Eighth is Anchor the changes in corporate culture. Oticon stayed loyal to the values and principles, and Kolind had shifted Oticon on the new ways. That makes Oticon get stronger. Kolind has put Oticon into the like place and in the right time. It has made Oticon continue

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