Challenge Of Change And Business Strategy: Thinking Wide

Challenge Of Change And Business Strategy: Thinking Wide

Change and impermanency is the common denominator of all phenomena and processes in nature, which include human activities as well. Heraclitus, the 5th Century BC Greek philosopher, has said that no man can step into the same river twice. This statement from Heraclitus means that the world constantly changes and that no two situations are exactly the same. Just as water flows in a river, one cannot touch the exact same water twice when one steps into a river. This view has been affirmed by Lord Buddha around the same period.

In fact, the challenge of change can be considered as the key driver in all the human endeavours across history and the main motivating factor of business strategies that have evolved through the four industrial revolutions spanning form the mid-18th century to the present day of mass digitalisation. The four principles of change management at any level – be it personal, family, workplace, company or a country – are:

  • Understand the change
  • Plan the change
  • Implement the change
  • Communicate the change

Some of the significant contributors to the management of change which resulted in the emergence of new approaches and working models that became popular during the past 50 years can be enumerated as:

  • Lewin’s Change Management Model
  • McKinsey 7S Model.
  • Kotler’s Change Management Theory
  • Nudge Theory
  • ADKAR Theory
  • Bridge’s Transition Model
  • Kubler-Ross Five Stage Model

There are many schools of thought around managing organisational change, but there's one thing that's clear. Change managers need to structure their organisational changes and need to avoid 'ad hoc' change management. They need to look at organisational change from a programmatic perspective, leverage subject matter experts around the impacts of change and look at the ‘change beyond the change’. 

Corporate change has always been associated with leadership, and Jack Welch, the master of transformational leadership, has once quoted that “good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”

Notwithstanding the tremendous utility value of these approaches, I have witnessed the beginning, growth, decline and final exit of some great business empires in Sri Lanka, which could not survive up to the third generation. Similarly, there are exemplary business organisations, the roots of which can be traced back in history to a single person who started with a few rupees and later developed in to corporate giants that are thriving through the third generation. It is therefore apparent that there are no hard and fast norms or standard ground rules, but an emerging factor is the importance of the people at all levels, despite the benefits of automation and digitalisation. Success and failure episodes are abundant throughout the world and corporate graveyards are cluttered with casualties.

Change and business strategy are always closely interlinked without clear boundaries. The ‘Art of War’ – which is attributed to the ancient Chinese military strategist Sun Tzu (around 5th century BC) – remains the most influential strategy text in East Asian warfare and has influenced both Eastern and Western military thinking, business tactics, legal strategy, lifestyles and beyond.

The Covid-19 outbreak, which started around two years ago and developed in to a devastating pandemic, has brought about years of change in the way companies in all sectors and regions do business. The entire world scenario which we currently witness is reminiscent of the opening paragraph of ‘A Tale of Two Cities’, an 1859 historical novel by Charles Dickens.

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”
 

The Coronavirus has rapidly made ‘business as usual’ a phrase from the distant past. There is no ‘usual’ in this uncertain time. But organisations that outmanoeuvre uncertainty create a resilience they can count on, irrespective of the changes that come

. We’ve all changed the way we operate during the Covid-19 crisis. Some changes were forced on us, while others represent the height of innovation in a crisis. There’s been a reset of the workforce and work itself, a reset of the employer/employee relationship and a reset of the business ecosystem. For most of them, the business impact of the pandemic has been negative; for some, positive. 

The pandemic may have wiped our strategy slate clean (or at least it feels that way), but we have also garnered invaluable experience. Now it’s time to bring together our executive team and use those lessons to reconfigure the business and operating models for a new reality. It appears that in addition to the conventional 3Rs (reduce, reuse and recycle), with respect to resource consumption and sustainability, a set of new 3Rs, namely respond, recover and renew, has emerged during the Covid-19 crisis.

As we shift from response to recovery, the key for senior leaders is to make strategic decisions that will lead them to a renewed future state, however paralysing the uncertain outlook may seem. We can borrow a leaf from the strategy and tactics of the Covid-19 virus itself in learning how to adapt for survival by adopting new paradigms, namely producing more virulent strains such as the Delta variety.

In the absence of a 100 percent effective vaccine or cure for Covid-19, any rebound in business activity could easily be followed by another round of response, recover, renew; so the imperative is to absorb lessons learned quickly and build sustainable changes into business and operating models.

But first, we need to determine exactly where and how the crisis has stretched and broken our existing models, and where the risks and opportunities lie as a result. When talking about risks and opportunities, I cannot help going back to the basics of ISO 9001:2015 Quality Management System (QMS) requirements which expect a company to evaluate the external and internal issues (Clause 4.1), expectations of interested parties (4.2), determining the risks and opportunities (6.1) and planning for change (6.2). In some of the companies that I happen to audit, the priority given to these is at a minimum or no priority given at all apart from stagnant records which do not show any objective evidence of monitoring and review.

However, one important factor we have to consider is that everyone – irrespective of whether it is an individual, family unit, organisation or a country – is on various stages of their unique learning curves, and the strategic horizons have drastically become shorter. Business and strategy planning is no longer an elite task shrouded with mystery and confined to the corporate managers only in their air conditioned rooms but a task to be accomplished in consultation with those who are finally going to implement the strategies and plans. While the Japanese Genba (the actual place) approach is more than 50 years old, it is mostly confined to operational levels, which is rather unfortunate. This crisis has created an opportunity to reset some of our goals and ambitions; it’s time to ask: “As we recover from this crisis, do we want to be different, and if so, how?”

One can see that many companies are in the recovery mode at the moment and trying to do damage control based on profit motive, which is understandable. The entire social, cultural and ethical models and paradigms have changed drastically, and the entrepreneurs need to realise that they are no longer operating in the pre-Covid era. Drastic changes have occurred in the entire supply and value chains with changing customer preferences.

The following quote attributed to many, including Eleanor Roosevelt, a former First Lady of United States, is appropriate to be cited here:

“There are people who make things happen, there are people who watch things happen, and there are people who wonder what happened.” 

Change and impermanency is a fact of life, more so today, and if we do not change, change will change us. After all, it was the mathematical genius of the 20th Century, Albert Einstein, who once observed that:

“Insanity is doing the same thing over and over again and expecting different results.”

We can’t keep doing the same thing every day and expect different results. In other words, we can’t keep doing the same workout routine and expect to look differently. In order for our life to change, we must change – to the degree that we change our actions and our thinking, to the degree that our life will change.

The author a Management Counselor from Sri Lanka

Pirelli Gears Up For Formula 1's First Race At The Madring As Teams Face An Untested Weekend

Pirelli Gears Up For Formula 1's First Race At The Madring As Teams Face An Untested Weekend

Pirelli is all set for Formula 1's newest venue, the Madring, which hosts its first Spanish capital Grand Prix next weekend. The tyre supplier has nominated the C2 as Hard, the C3 as Medium and the C4 as Soft for the 5.416-kilometre circuit, which blends a street section threading between exhibition district buildings with a permanent layout and boasts 22 corners, among them the 550-metre Monumental with its 24 percent banking.

Only 200 metres separate the start-finish line from Turn 1, and the opening sector is extremely fast. The middle part of the lap brings several medium and low-speed corners, including the banked Turn 12, while the closing stretch serves up 90-degree turns reminiscent of Baku.

Pirelli's involvement stretches back three years, when circuit designers first shared details of the intended layout. Simulation tools enabled engineers to trace the paths cars would take and compute the forces tyres would face. Once construction concluded, Pirelli personnel travelled to Madrid to gauge the asphalt's macro and micro roughness, sharpening their simulations and preparing a technical document distributed to teams ahead of the event.

In energy terms, the track sits among the five most taxing on the calendar, generating lateral forces on par with Barcelona and Silverstone. The Monumental produces the year's highest vertical load thanks to both its banking and its length, and it also tests grip, with drivers likely to choose differing approaches depending on whether they favour setting up an attack into the next corner.

Because the asphalt is unusually smooth and offers modest grip, it has been cleaned with high-pressure water jets to strip away dust and oily deposits typical of fresh surfaces, a practice already employed at circuits such as Singapore. Elevation also distinguishes the layout: Turn 7 marks the highest point at roughly 700 metres above sea level, reached via an 8 percent gradient and 10-metre climb from Turn 6, while Turn 2 is the lowest, sitting 26 metres below.

With no testing possible before the weekend, teams will only finalise their programmes and tyre strategies after first practice, possibly reserving Hard sets for Sunday if softer rubber degrades sharply. Last year brought ambient highs of 29°C, though the circuit's altitude makes severe heat improbable. Madrid's region previously staged nine Spanish Grands Prix at Jarama from 1968 to 1981, where Mario Andretti won twice and Lotus took four wins. Across 55 Spanish Grands Prix at five venues, Michael Schumacher and Lewis Hamilton each have six victories, while Ferrari leads constructors with 12.

The Pirelli Design podium cap by Denis Dekovic carries a white crown and the seven stars of Ursa Major under the peak and is on sale through Pirelli's e-commerce platform.

From Lumi-Hakkapeliitta To Hakkapeliitta 01: Nokian Tyres Marks 90 Years Of Winter Innovation

From Lumi-Hakkapeliitta To Hakkapeliitta 01: Nokian Tyres Marks 90 Years Of Winter Innovation

Nokian Tyres marks the 90th anniversary of its Hakkapeliitta winter tyre family, celebrating a legacy that began in 1936 with the introduction of the first Hakkapeliitta-branded tyre, the Lumi-Hakkapeliitta. This debut product, arriving just two years after the world’s first winter tyre, featured a transverse tread pattern and suction-pad-style grip, establishing itself as a breakthrough in winter mobility and the first winter tyre designed specifically for passenger cars.

The company commemorates this milestone with the launch of its newest winter product, the Nokian Tyres Hakkapeliitta 01, announced in March and available for sale at tyre shops this fall. The Hakkapeliitta 01 represents a significant step forward in the brand’s rich history, introducing On-Demand Grip technology that allows studs to enter ‘OFF’ and ‘ON’ modes in response to driving conditions.

Throughout the decades, Nokian Tyres expanded the Hakkapeliitta’s influence from the Nordic region to snowy surfaces worldwide. The Haka-Hakkapeliitta became one of the best-selling winter tyres of the 1950s and 1960s, featuring a dense pattern of protrusions effective on icy roads with packed snow, while the first studded model, Kometa-Hakkapeliitta, was introduced in the 1960s. The product family gained global recognition during the same period by dominating the Monte Carlo Rally, cementing its association with extreme weather performance.

Forty years ago, in 1986, the company opened the Ivalo Test Center, known as White Hell, in Finland, providing a diverse winter tyre testing environment with temperature variations of up to 40 degrees possible in a single week. From 2000 onward, all new Hakkapeliitta tyres have featured the Driving Safety Indicator, an easy-to-read number moulded into the tyre indicating remaining tread life. Innovations such as the square stud, Bear Claw technology, Double Stud technology and Arctic Grip Crystals have further advanced both studded and non-studded offerings.

Today, studded and non-studded Hakkapeliitta products equip passenger cars, SUVs, commercial vehicles, trucks, tractors and selected speciality equipment used in municipal maintenance and contracting. Models including the studded Hakkapeliitta 10 and non-studded Hakkapeliitta R5 have ranked atop test results, helping keep drivers safe in diverse winter weather.

The Hakkapeliitta 01 reduces road wear by up to 30 percent compared to its predecessor, the Hakkapeliitta 10, while improving ice grip by up to 10 percent and wet grip by up to 5 percent. Noise levels drop by as much as one decibel, making the new tyre a victory of safety and comfort. This marks the second time in the series’ history that Nokian Tyres has reset its numerical naming convention. Consumers can purchase the Hakkapeliitta 01 this fall at tyre shops across the Nordics, North America and Central Europe.

Paolo Pompei, President and CEO, Nokian Tyres, said, “The Hakkapeliitta product family is an iconic part of our heritage and continues to play a central role in our strategy. Achieving and maintaining leadership in the winter tyre market requires continuous innovation. The new Nokian Tyres Hakkapeliitta 01 is a clear demonstration of that commitment, combining our longstanding expertise with the latest advancements in safety and performance.”

Hankook Tire Expands Alpine Winter Lineup With New Winter i*cept evo 4

Hankook Tire Expands Alpine Winter Lineup With New Winter i*cept evo 4

Hankook Tire has introduced the Winter i*cept evo 4, a new addition to its Alpine winter lineup. The studless tyre is designed for passenger cars and SUVs, targeting enhanced winter safety and fuel efficiency. It replaces the previous generation with a 5 percent improvement in snow grip, achieved through wider lateral grooves and semi-sipe technology. The next-generation model builds on Hankook's proven Alpine winter engineering, refining traction, braking, efficiency and tyre longevity even in the harshest winter conditions.

The tyre offers balanced grip compounds and hydroplaning resistance for wet braking, while an optimised curing process and balanced wear design extend mileage and fuel efficiency. A tread design focused on noise reduction provides a quieter, more comfortable ride by minimising road and impact noise caused by sudden braking and steering. All Hankook winter tyres carry the 3 Peak Mountain Snowflake rating for severe snow service standards.

The evo 4 joins a broader winter portfolio that includes the studless Winter icept iZ3 for passenger cars and iZ3 X for SUVs and crossovers. Studded options include the Winter i*Pike RS2 for passenger cars, including sedans, coupes, hatchback, and some smaller crossovers depending on tyre size, and the i*Pike X for SUVs, crossovers and light trucks. The new tyre is backed by the SureTire Plan with a 30,000-mile treadwear warranty, a 30-day free trial, a limited warranty and road hazard protection, subject to applicable terms and conditions.

Dealers can now order the Winter i*cept evo 4 in 37 SKUs and the SUV version in 45 SKUs. Consumer availability is expected later this fall.

K C Jensen, Vice President of PC/LT Sales, said, “Drivers need tyres that provide dependable control throughout the winter season. The Winter i*cept evo 4 combines stronger snow traction, enhanced wet braking and improved efficiency to help drivers navigate changing winter road conditions with confidence.”

AZuR Welcomes NRW Strategy's Explicit Focus On Used Tyres

AZuR Welcomes NRW Strategy's Explicit Focus On Used Tyres

The AZuR network has welcomed North Rhine-Westphalia’s first circular economy strategy, viewing the explicit inclusion of used tyres as confirmation of its longstanding engagement. The strategy aims to move the state from linear value chains towards a circular economy and strengthen its position as a leading European location for such practices, with priority areas spanning circular construction, chemicals, technology, circular cities and a high-performing secondary raw materials sector.

Used tyres occupy a dedicated page within the strategy, granting political visibility to a material flow that already requires integrated approaches. These range from extending the service life of suitable tyres through repair and retreading to recovering secondary raw materials via mechanical and chemical recycling alongside complementary processes. The document identifies used tyres as a significant material flow in the state and highlights steel and rubber recovery as well as retreading.

The state government has signalled its intention to expand circular approaches to tyre reuse and recycling, expressly incorporating public procurement and the vehicle fleets of public companies. This reflects a core principle of the tyre circular economy, whereby suitable tyres should remain in use as long as possible, with repair, retreading and regrooving extending service life before mechanical and chemical recycling recover industrially reusable materials.

AZuR is paying particular attention to the political focus on retreading. The strategy notes that retreading is established for commercial vehicle tyres while passenger car retreading has declined, and the state government declares its intention to support retreading projects and further recycling processes. For the network, the inclusion of used tyres creates a starting point for linking the entire tyre circular economy with raw material security, secondary raw material markets, public procurement and industrial competitiveness.

AZuR maintains close contact with the relevant state ministries, contributing the experience and solutions of its network partners across the entire tyre value chain. It will continue this exchange and feed practical experience into implementation of the strategy, with the goal of keeping tyres and their contained raw materials in circulation for as long as economically viable.