- Introduction
- A. The Pre-change Phase
- Strategic Planning Technique
- Managing by Objectives came next:
- Performance Evaluation followed:
- Introduction of Working for Results
- Manager Development Programmes
- Individual Challenge Profiles
- B. The Change
- Team Planning
- MAF-wide Involvement
- Cabinet Approved MAF Plans
- Change Sequence
- The New Environment: One of Ongoing Change
Chapter 7: Repositioning MAF to Cope with Bureaucratic Reforms
Introduction
The purpose of this chapter is to present the approach taken, and techniques used in restructuring MAF.
A. The Pre-change Phase
MAF recognised that, as a preparation for change, managers must prepare their organisation so that it can cope with change. The risks are high. If they don't do the job well, their organisation may disappear. Managers must build up an acceptance of change and the skills needed to manage the change.
In MAF it was obvious around 1974-76 that the way New Zealand was doing things could not continue indefinitely.
- Government was costing the taxpayer too much. It could not go on doing everything. Government would have to decide what not to do.
- could not go on producing commodities - prices kept reducing in real terms and farmers were borrowing more.
- kept rising and eroding international competitiveness.
- cost too much.
- to solve particular problems were getting too complicated.
- many new jobs were appearing that couldn't be handled by any one of the 10 divisions in MAF.
- time for change had arrived.
Therefore, MAF senior management decided to demand more attention to long range, or strategic planning.
Strategic Planning Technique
MAF used the American Management Associations Long-Range Planning Technique (LRP). This asks planners to:
- your environment and answer the questions - What is changing? What are threats? What are opportunities?
- your organisation and answer the questions - What is its culture? What can it do? What can't it do? What are its strengths and what are its weaknesses?
- precedents must be considered? Current law, conventions, agreements, and policies.
Only after these questions have been answered could MAF decide what managers want to do, and how it will be done, by whom and by when will it cost? That is, set objectives, set schedules, assign tasks and funds to people.
After 1-2 years, this technique was shortened to SWOT Analysis:
SWOT (strengths, weaknesses, opportunities, threats) analysis was used to update current and existing plans.
This effort shifted the vision of managers to long-term strategies and tied funding to functions. Spare or unattached funding was taken back and switched to a function somewhere else in MAF.
Managing by Objectives came next:
- first, mangers became skilled at strategic planning but not so skilled at putting their plans into effect. Therefore, senior management put much more emphasis on Management by Objectives (MbO). All senior managers in each Division had to learn and have their teams operate by MbO and define, negotiate and defend their objectives.
Performance Evaluation followed:
- next step was to evaluate or judge people by whether they achieved the objectives they had promised to achieve. Performance evaluation was reformed.
- management asked, if you did not achieve your objectives, what can we do to help you? This led to more clearly focused technical training and manager development.
- now, each manager had to be competent in a set of skills involving strategic planning, priority setting, MbO, judging performance by achievement of objectives, manager development and replanning and adjustment of objectives. This was now a language common to all managers of all Divisions. MAF invented its own language and called its system Working For Results
Introduction of Working for Results
- technique allowed different teams in different divisions could work with each other because they shared a common language and common management systems. Before, it had been virtually impossible to co-operate between Divisions.
Manager Development Programmes
- more emphasis grew on developing managers, senior management looked over each Division's programme, picked out the most promising managers, and put them through a "corporate manager" development programme. Trainees were selected from all parts of MAF, and were exposed to all sectors (not just their own), visited farmers, orchards, dairy factories, meat plants, vineyards, fishing vessels, mussel farms, industry leaders, local mayors, etc. Their allegiance was altered from, "What should I do in my Division?" to "What should MAF do to help New Zealand survive and prosper in this world?".
Individual Challenge Profiles
- who didn't change were put back where they came from. Those showing the capacity to adapt were given further challenges (recorded as an Individual Challenge Profile). Networking between development teams was positively encouraged. Teams were later give jobs of defining "lumps" of change that were coming and proposing how MAF should respond.
- this stage, MAF was prepared for change as current structures were no longer seen as untouchable. Key young managers were becoming impatient to enter what they saw as the "real world". Those ready to change were outnumbering those determined to resist change. Common procedures and language were in place to allow internal MAF "change agents" to work together.
B. The Change
The Government changed in 1984. A programme of massive reform and withdrawal of Government intervention had become apparent by 1986.
Team Planning
Key young managers were put into an "A team" (and sub-divided for constituent tasks) to consider whether MAF should restructure and, if so, to what new form? (1986).
The team reached agreement in MAF's purpose and recognised that, inevitably, that MAF must get smaller and cost less.
The team examined the questions:
- business is MAF in?
- don't we have to do?
- should MAF re-group to succeed in our business?
The result was a proposal to amalgamate 10 Divisions down to four major business groups:
- Technology (research and extension)
- Fisheries (research and management)
- Quality Management (Animal health, plant, quarantine, meat, dairy)
- Corporate Services.
These are explained more fully in Session 7.
MAF-wide Involvement
The proposals were widely circulated and debated. Key supporters were identified and put into key positions. Key detractors were inactivated. The balance of numbers was pushed towards support.
Cabinet Approved MAF Plans
Cabinet approval was obtained. Other "control departments" were persuaded. This was difficult because they had their own ideas on what to do with MAF, such as abolish it. But MAF had taken the initiative and they were not successful.
Change Sequence
The change was set down for a particular date. A change newsletter describing events was started. A huge amount of work with staff and their union ensured that everyone whose job was not to be carried on were aware of, and could apply for, jobs that were to be continued, and could appeal if they were left without a position, or could claim compensation if they were to be made redundant.
People applied for positions and were appointed. All senior positions were advertised.
MAF was reduced in size by 40%. Half of all senior managers were laid off. The new breed of managers who had been trained, including the "old" managers who had absorbed the new approach, were put in all key command positions.
Each new group, using the common language, set about defining their strategic plans, their objectives, their resource allocations and operating procedures.
The New Environment: One of Ongoing Change
Though we say "new organisation", we are talking now about one that can cope not just with a change but with change itself. Staff expect change to continue and they see themselves as paid to keep abreast or ahead of it from now on.
Major changes have occurred since:
- accounting
- earning - how to cost and how to price
- of operating and accounting relating to clients
- of policy and delivery
- relationships with elected Ministers through contract.
Procedures now constantly evolve. For example:
- for results grew to accommodate Marketing Strategic Plans, Client Management Project Management, Total Quality Management and MAF Focus. New "words" can easily be drafted onto a common language and become part of it.
- techniques for co-ordinating work are invented (capturing collaborators to help is more urgent than keeping people away from your territory!)
- management is being applied in many parts of the organisation.
- management techniques are being invented and applied.
- must be constantly and keenly aware of organisational development techniques. They must know:
- their group has come from - that is, what culture, skills and procedures have staff brought with them?
- are staff now? - that is, what skills do they have? What are their strengths and weaknesses?
- does the organisation need to go, and what must the manager do to make sure they can get there?
In this manner, creative evolution has succeeded successive "revolutions".
Maintaining what you are is not important. The real goal is to make sure your organisation will still be relevant in the future.
Change management focuses attention on the critical importance of the senior manager - an inadequate performance can result in the disappearance or takeover of the organisation. The task is to ensure the organisation has a useful role in tomorrow's society. This responsibility should compel an urgent and continual quest for competence and relevance throughout the whole senior management team.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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