INTRODUCTION
From 2014 through 2019, the average annual
growth rate of the value of construction work carried out by companies in the
construction industry in Indonesia was 18.2 percent (El Rayess et al., 2019).
This is higher than the average GDP growth rate of 5.03 percent that Indonesia
experienced during the same time period (BPS – Statistics Indonesia,
2021). As shown by the graph in Figure I, the demand
for the construction industry is growing at a rate that is higher than the
overall growth rate of the country, despite the fact that the rate of economic
growth in Indonesia is remaining relatively constant (Tambunan, 2008).
Figure 1. Value of
Completed Construction
Source: BPS
The number of construction companies that are
active in the field in Indonesia may be able to provide some insight into the
available supply for the industry. Up until the year 2019, the number of
construction companies that fall into the midsize category increased at a rate
of approximately 5% each year. In the year 2020, there was a first-ever
decrease in the number of medium-sized construction firms as a direct result of
the pandemic. Nevertheless, the number of construction businesses increased by
21% from the year 2020 to the year 2021, successfully overcoming the effects of
the pandemic for the first time in a year (BPS – Statistics Indonesia,
2021). Even though the number of medium-sized
construction businesses in Indonesia has decreased as a direct result of the
pandemic, the trend continues to rise as a result of the increased demand for
new buildings as a response (Herwany et al., 2021).
Figure 2. Number of
Medium-sized Construction Companies
Source: BPS
Company X, a construction company with
headquarters in Jakarta that got its start as an MEP (mechanical, electrical,
and plumbing) contractor specializing in specific projects, is one of the
companies that are operating in this market. Company X is one of the businesses
that are involved in this market. In the beginning, Company X's operations ran
without a hitch; however, as the company expanded into a construction company
of a medium size, Company X realized that as the company progressed, internal
issues would become more complex.
Company X had to come to terms with this
discovery in order to move forward. As time went on and company X progressed,
it was inevitable that it would come to terms with this realization. They
require a new strategy in order to adapt to the expanding phase, particularly
in regards to the structure and system that needs to be adapted to the business
process and organizational function in order to accomplish the organizational
goals. It is essential that they do this in order for them to be able to adapt.
When an expanding company needs to make changes on the inside, such as to how
divisions work, how they talk to each other, or how they share information with
all their employees, the best thing to do is to redesign the organization. The
goal of reorganizing organizational action is to make team members better able
to adapt to changes in their industry so that the business can run more
smoothly and effectively. In addition, it keeps the company's core values and
connects all the divisions based on what they do. Also, it suggests that a lot
of changes need to be made to the way the organization works to reach its goals.
The company's chief executive officer is
becoming more and more aware of the fact that the day-to-day operations of the
organization are not going as smoothly as they should be. This was evident from
the company's financial condition prior to the COVID-19 pandemic even in the
year 2020, when the construction industry was still operating because of its
role as a vital sector. Since COVID-19 Pandemic that has hit the whole world
can be an economic challenge, and Indonesia is no exception (Meita & Malau, 2023). In
addition, this was the case even before the pandemic. Company X, which has been
operating for the past twenty years, ought to have progressed to the next stage
of their organization's development by this point in time in order to keep pace
with their competitors.
Figure 3. Company X Revenue
and Net Income
Source: Company’s Financial Report
The decline in revenue and net income from 2018
to 2020 is the most obvious problem that has arisen for company X in terms of
its business operations, as can be seen in Figure 4. This decline is expected
to continue until at least 2020. As a direct and immediate consequence of the
falling income, the profit margins, which are anticipated to be quite low in
the years 2019 and 2020, have been negatively impacted. On the basis of the
information that has been presented, one might draw the conclusion that the
company is experiencing sluggish growth or that its operations are not doing
very well.
Figure 4. Five Whys Diagram
According to the findings of the investigation
into the company's business issues, they are facing a growth that is
unchanging. The method known as "five whys" is utilized in order to
ascertain the primary reason for it. According to Figure 4, the reason for the
lack of progress in terms of growth is a low profit margin, particularly in the
most recent years. The high cost of goods sold or, in the context of the
construction industry, the project cost is the factor that is causing it, and
it was caused by operation cost overrun, which was initially caused by
inefficiency in the organization. The factor that is causing it is the high
cost of goods sold.
METHOD
In order to find a
solution to the problem that the company is experiencing, a qualitative
approach is being used in the research that is being conducted. An
investigation technique for gaining an understanding of a social or human issue
is referred to as a qualitative study (Moleong, 2021).
This type of study is characterized as being built on the construction of a
complex, holistic image through the use of words, reporting specific views of
facts, and being carried out in a natural setting (Creswell, 2017).
Coding is an additional
method that is used to analyse the results of the interviews. According to (Saldaña, 2014),
the purpose of coding is to obtain words or phrases that either determine the
existence of significant psychological facts, capture the essence of facts, or
identify psychological characteristics that emerge strongly from a number of
language or visual data collections. These words or phrases can be obtained by
coding.
The use of coding as a
method that can be employed to accomplish these goals is one option. It is
possible that the data will arrive in a variety of formats, some of which
include, but are not limited to, interview transcripts, participant observation
field notes, journals, documents, literature, artefacts, photography, videos,
website correspondence, and email exchanges, to name just a few of the possible
examples that could occur. As a consequence of this, coding is a stage that
takes place in the middle of the phase in which the data are gathered and the
phase in which they are analysed in greater depth. As shown in Figure 5, the
coding path will eventually lead to a theory that is complementary to the qualitative
process.
Figure
5. The Coding Model Path Leads to Theory building for The Qualitative Inquiry
Process (Saldaña, 2014).
In
order to collect the information necessary for understanding company X,
interviews were conducted with seven of the company's stakeholders. Starting
with their President Director, moving on to their Marketing Director, Project
Coordinator, Finance Manager, Marketing Manager, and Project Manager, and
finishing up with their Finance Officer at the end of the chain. Every single
person who took part in the research was questioned using the same set of seven
inquiries, which collectively represent the 7S component of the McKinsey Model (Limor, 2021; Rahmasari et al., 2022)
Because it is necessary to first report the primary
problem and facts about the company in order to solve the current issue,
qualitative descriptive analysis is appropriate for this research because it is
necessary to report the primary problem and facts about the company first.
After that, the condition must be evaluated using data obtained through
interviews and observations in the real world.
In
order to compile all of the data required for this investigation, information
will be gleaned from a variety of primary and secondary sources. We will be
conducting interviews with members of company X's staff as well as management
in order to gather information from within the company that can be used as
primary data. These interviews will take place in the coming days. This is done
in order to provide the company's Board of Directors, managers, and staff with
a more in-depth understanding of the problem that the business is currently
facing. Due to the fact that the interview is predominately based on the 7S
McKinsey model, you can anticipate that the conversation will result in you gaining
more knowledge regarding both soft and hard "S"s. The following is a
list of interview questions that should be asked of stakeholders in company X
in order to collect primary data:
1. (Strategy)
What should we do to solve the problem our company is currently facing?
2. (Structure)
What structure do we need to execute the strategy?
3. (Systems)
What business system do we need to use or invent to implement the strategy?
4. (Style)
What leadership style and cultural qualities will help us to achieve a
strategic objective?
5. (Staff)
How should we help our colleagues in their growth?
6. (Skills)
What are the specific skills that will help us? What skills do we need to
develop?
7. (Shared
Value) Which of our corporate value helps us? Why we do it that way?
Utilizing
information that has already been compiled in the form of written documentation
is an approach to data collection that is referred to as secondary data, and it
is an alternative method. The financial report and company profile of company X
are being used as the secondary data source for this particular instance. The
organizational structure of the company will be discussed in both the company
profile and the financial report. This information will be included in both
documents. The report on the company's finances will include information
pertaining to the company's current financial situation.
RESULTS
AND DISCUSSION
It is not possible to directly analyze the
audio data that was collected during the interview; these are the steps that
need to be taken before beginning to code:
A. Setting
up raw data to be verbatim
The information that has been compiled does not
qualify as raw data because it does not include recordings (either audio or
video), photographs, or any other types of unprocessed images or observations
of any kind. The information that needs to be coded is the information that
already exists as words, a collection of signs that the researcher has
converted into sentences, or other signs that can create a linguistic and
visual image (Saldaña, 2014).
Following the collection of the audio data, it is
subsequently transcribed or otherwise converted to text format. The resource
person from company X is given a subject marker in the form of a code for the
data set that is currently being converted into a transcript at this point in
time.
B. Facts
consolidation
The researcher moves on to the next step, which
is to establish the facts, once they have completed the process of constructing
the framework for the data administration. The purpose of the method that is
referred to as "facts consolidation" is to extract psychological
facts from the data that was gathered in order to classify these facts as
"facts separately." Information that needs to be validated can be
gleaned from any and all of the data that is currently available, such as
interview transcripts, field notes, videos, documentation, and any and all
other data that is already in existence (Saldaña, 2014).
After the data have been transcribed into text,
the information is then collected on the basis of the facts that are associated
with the data. The data that was obtained from the interview transcripts were
compiled, which allowed for the subject sentence to be well organized. This was
made possible as a result of the compilation. After that, an interpretation
will be carried out in the form of a categorization in the direction of a topic
or idea.
C. Collection
of similar facts
The accumulation of pertinent information is a
process that can be described as "both natural and deliberate." Even
though one of the primary goals of deliberative coding is to uncover repetitive
action patterns and subject meaning consistency found in a variety of
documented data sets, it is natural for researchers using deliberative coding
to obtain "subject repetitive action patterns" and subject meaning
consistency. This is because it is natural for researchers to obtain
"subject repetitive action patterns" and subject meaning consistency (Saldaña, 2014).
After the compilation of facts using all of the
data has been finished in depth, the next step is to collect comparable facts.
The purpose of collecting comparable data is to evaluate the reliability of
psychological data derived from interviews or other verbatim data. This can be
accomplished by comparing the data to one another. The systematic
categorization of the facts that emerges as a result of collecting related
facts makes it much simpler to recognize the overarching themes that can serve
as the basis for narratives based on the data.
D. Define
categorization
The interpretation of the conclusion of the
analysis as the categorization is something that can be done after looking at
the collection of facts as well as the interrelationships between the facts.
This can be done after the conclusion of the analysis has been interpreted. The
interconnectedness of these facts will also be assisted by an interpretation
code, which will ensure that the categorization of words, phrases, or sentences
will accurately reflect different variants of similar facts. The process of arriving
at a diagnosis in the field of psychology after taking into consideration the
primary symptoms and the facts that have been gathered can be compared to the
categorization process in the field of psychology (Saldaña, 2014).
E. Concept
building and narrating
After the researcher has amassed a sizable
number of classifications, the next step is to ascertain the primary
requirements; in other words, which classifications are the most important in
delivering a solution to the research issue? (Saldaña, 2014).
After obtaining the categories of all of the
interview results, the following step will be to construct the concept, and
then to narrate it into a conclusion. This will be done before moving on to the
next step. The work that will be completed is going to look like this. It will
be necessary to use it as a benchmark in the future to determine how to solve
problems and make recommendations. The following is a recapitulation of the
findings that were obtained as a result of the coding that was performed:
Table
1
Company X 7S Interview Results
|
Company X 7S Interview
Results
|
|
|
|
|
|
Strategy
|
Rationalization or internal/organizational
improvement
|
|
|
|
Structure
|
Functional Structure
|
|
|
|
Systems
|
Participative System
|
|
|
|
Style
|
Democratic Leadership Style
|
|
|
|
Staff
|
Colleagues Support
|
|
|
|
Skills
|
Hard Skills
|
|
|
|
Shared Value
|
work smart, caring, loyal, integrity,
commitment
|
|
|
F. McKinsey 7S Model
After determining what is required for
organizational change based on the findings of interviews with a number of
company X's stakeholders, an alignment is performed by determining whether what
is desired is in line with the conditions that are currently in place. This is
done in order to establish whether or not the desired outcome is in line with
the existing circumstances. In order to provide a solution for alignment based
on the findings of the interview, the following are presented in the same order
as they are in the table located above.
Table 2
Company X 7S Alignment
|
Company X 7S Alignment
|
|
Current Conditions
|
Aligned?
|
|
Strategy
|
Pricing strategies (Cost Focus)
|
No
|
|
Structure
|
Simple structure
|
No
|
|
Systems
|
Directive order
|
No
|
|
Style
|
Centralized decision making
|
No
|
|
Staff
|
Separated by project teams
|
No
|
|
Skills
|
Hard Skills
|
Yes
|
|
Shared Value
|
work smart, caring, loyal, integrity,
commitment
|
Yes
|
1. Strategy
Using the 7S Model that was developed by
McKinsey, the first step in the process of implementing organizational change
is to identify the most appropriate strategy with which to deal with the
existing challenge and establish a competitive advantage (Suwanda & Nugroho, 2022).
However, based on the alignment of the results of the interview with the
current conditions, there is a difference: at the moment, company X has a cost
focus strategy or low pricing strategy, which is a mandatory strategy in the
construction industry; despite this, the results of the interviews are leaning
toward rationalization or internal organizational improvement. This difference
is due to the fact that company X has a cost focus strategy or low pricing
strategy, which is a mandatory strategy in the construction industry. This
distinction can be traced back to the fact that the findings of the interview
were adjusted to consider the existing circumstances.
In order for an organization to initiate the
process of formulating or deciding upon a strategy for itself, the organization
must first conduct an analysis of two conditions about itself, as stated by (Luo et al., 2009; Porter, 1996).
This is required in order for the organization to begin the process. which is
the external factor, which is the analysis of the industry, and the internal
factor, which is the capabilities of the company's resources. which is the
external factor, which is the analysis of the industry.
The first analysis is about the position that
company X holds within the industry according to Porter's Five Forces analysis.
This analysis is comprised of rivalry among competitors, the threat of new
entrants, the threat of substitutes, the bargaining power of supplier, and the
bargaining power of buyers. Utilizing this analysis tool, one can evaluate the
competitiveness of an industry (Porter, 2008).
Figure 6. Analysis Tool
Table 3
Results of
Analysis
|
Forces
|
Level
|
|
Threat
of New Entrants
|
Med
|
|
Threat
of Substitutes
|
Low
|
|
Rivalry
Among Competitors
|
High
|
|
Bargaining
Power of Suppliers
|
Low
|
|
Bargaining
Power of Buyers
|
High
|
Following the implementation of the industry
analysis, it is possible to say that there are two forces that are considered
to be strong. These forces are the competition that exists within the industry
as well as the bargaining power of buyers. In that case, the strategy that
should be proposed for company X should be to combat these two forces from the
perspective of the industry, considering either the rationalization or the
improvement of the company's internal resources.
After that, a SWOT analysis was carried out in
order to learn more about the internal and external conditions of company X. A
technique for strategic planning and management known as SWOT or TOWS can
assist an individual or organization in identifying their respective strengths,
weaknesses, opportunities, and threats (relative to business competition or
project planning) in order to better plan for or compete in those arenas. This
can be done in order to improve the individual's or organization's ability to
plan for or compete in those arenas. There are a few names for it, some of
which include situational assessment and situational analysis (Weihrich, 1982).
Table 4
SWOT Analysis
|
Strengths
|
Weaknesses
|
|
·
20 years of experience
·
Always get the job done (never on a blacklist)
·
Partnering with many suppliers
·
Authorized dealer of a major brand
|
·
Lack of man management capability
·
Short of skilled people
·
Limited budget
|
|
Opportunities
|
Threats
|
|
·
Expansion to other field in the industry
·
Indonesia rapid development
|
·
Minimum differences between competitors
·
Emerging competitions
·
More strict regulations from the government
|
Based on the SWOT and Porter’s Five Forces
analysis and Porter’ generic strategies, it is better for company X to go for
Cost Leadership strategy and have a rationalization of the organization to help
achieving efficiency. These are some of the suggestions to rationalization
strategy to get to cost leadership in the industry:
a) Develop HR management capabilities, this could
help company X have competent employees, which enhances efficiency of cost.
b) Maintain good reputation with costumer and
suppliers, this will provide a good raw material price and a repeat order from
the costumer.
Those two factors could tackle the high-level
forces and weaknesses of company X and in the end help to achieve a Cost
Leadership in the industry.
2. Structure
The next “S” in 7S McKinsey model is structure,
which based on the result of the interview and the current conditions are not
aligned. Current company X’s structure is quite unclear or could be assumed as
a simple structure.
According to (Ahmady et al., 2016), a
simple structure is a collection of adaptable relations that is relatively
simple because it has a low degree of separation between them. This makes the
collection of adaptable relations relatively straightforward. Formality is not
required, and the members of such an organization are able to create
organization charts that put the emphasis on those in leadership positions (Bratton, 2020).
Because the management hierarchy and the distribution of tasks are decided upon
through consensus, coordination and supervision are not formalized and are
instead carried out in a hands-on manner (Lewis, 2019). This
is because of the nature of the decision-making process. Because of the current
structure, which is depicted in the figure that is located above, the President
Director of company X tends to directly participate in the decision-making
process at every level of the structure. The level of supervision provided by
all managers is also extremely low, and the organization as a whole is quite
informal.
As a result of the recent retirement of the
Operational Director and the absence of the Financial Director, the President
Director is now directly responsible for making all of the strategic decisions.
Due to the fact that the managers are heavily involved in the field, the
Marketing Director here is also responsible for covering the operational and
engineering activities. Based on the interview results of the stakeholders, the
ideal structure for company X is the Functional Structure. This structure has
characteristics such as (Ahmady et al., 2016):
a) Fulfill the increasing needs of function
b) Activities are classified based on position
functions
c) Functions based on shared goals and dependent
tasks
d) Limiting rework for efficiency
So, with the three new crucial functions of
COO, CFO, and HR, here is the proposed new organizational structure for company
X. Which is based on the functional structure that functions based on shared
goals and classifications of positions based on functions.
Figure 7. New
Organizational Structure for Company X
3. System
The third "S" in the 7S McKinsey
Model is system, and the result of the interview showed that the stakeholders
of company X want a participative system that is not aligned with the current directive
system. Where, according to (Jones et al., 2015),
participatory management may provide a more productive working environment by:
a)
Promotes
a sustainable management
b)
Reducing
social conflicts, such as by doing away with competition
c)
Allowing
for the management process to consider local values and knowledge
d)
Increased
productivity as a result of increased job satisfaction
Based on the participatory system, here is the
proposed new system for company X business process:
Figure 8. Proposed New
System for Company X
The purpose of the proposed participative
system for company X is to instill full confidence and trust in each and every
employee, as well as to increase productivity by fostering a sense of unity and
contentment among those employees. With the intention of maintaining a high
level of communication while preventing direct competition between workers.
The pre-contract, during-contract, and
post-contract phases of this business process proposal each consist of three
primary activities. With the top management constantly keeping an eye on
everything and providing feedback on how things are going.
4.
Staff
Another one of the McKinsey model's soft
"S"s is called "staff," and its primary focus is on the
specific employee as well as the ways in which the company can aid the employee
in their professional growth. It was discovered, on the basis of the
categorization of the result of the interview, that the stakeholders' preferred
method of providing support for the staff is to have the colleagues support
them, which is not aligned with the current situation. This was discovered as a
result of the fact that the stakeholders' preferred method of providing support
for the staff was to have the colleagues support them. There are a variety of things
that might play a role in whether or not you have the support of your
coworkers. The following is a system that the stakeholders who will be involved
in implementing it have suggested:
a) Provide a system that triggers team building
among employees,
This could benefit employees by improving their
skills through training and teamwork among them.
b) Knowledge sharing with a more experienced
employee,
Providing solidarity through generations and
learning more about one another
c) Communication and collaboration,
Two-way communication to respect other
abilities in their fields and provide a useful input for others.
d) Be open to performance feedback.
As a team, it is a good opportunity to have
colleagues tell us about our performance and things that need to be improved.
5.
Skill
According to
the perspectives expressed by the overwhelming majority of the sources, the
capabilities that company X needs to cultivate and demonstrate in order to be
successful are hard skills. When it is directly related to technical ability and
when it is able to be measured, such as in the form of a certificate,
participation in training can result in the acquisition of this skill. The
following is a list of certifications and practical skills that may be
presented in order to help company X meet all of its qualification
requirements:
a)
Certificate
of Expertise (SKA)
Certificate of expertise (SKA) is a certificate
issued by LPJK and given to construction experts who have met competency
requirements based on scientific discipline, function and/or certain expertise.
Based on the SKA qualifications, it is divided into 3 (three) levels, namely:
Young SKA (Have at least 3 years’ experience)
Intermediate SKA (Have at least 5 years’
experience)
Main SKA (Have at least 10 years’ experience)
This certificate is essential for the company
that is going to enter the construction industry. Not only does it serve as
evidence that the employees are qualified, but it also satisfies a requirement
for tendering work.
b)
Skill
Certificate (SKT)
Skills Certificate (SKT) is a certificate
issued by LPJK and given to skilled construction workers who have met
competency requirements based on scientific discipline, function and/or certain
skills. Based on the SKT qualifications, it is divided into 3 (three) levels, namely:
Grade 1 has a minimum education of senior high
school/equivalent.
Grade 2 has at least junior high school
education.
Grade 3 has at least elementary school
education.
Skill certifications is needed for the site
workers to be able to work in a certain project.
c)
Occupational
Safety and Health (K3)
Occupational safety and health (OSH), also
known as occupational health and safety (OHS), occupational health, or
occupational safety, is a multidisciplinary field that focuses on the safety,
health, and welfare of people while they are at work. Other names for this
field include occupational health and safety (OHS), occupational health, or
occupational safety. Occupational health, occupational safety, and occupational
health and safety are all names that have been used to refer to this subfield
(i.e., in an occupation). These phrases additionally describe the objectives
that ought to be accomplished in this industry. A program for occupational
safety and health has the objective of creating a working environment for
employees that is not only risk-free but also beneficial to their health. In
addition, members of the general public who could be harmed as a result of the
conditions in the workplace are safeguarded by the Occupational Safety and
Health Administration (OSHA).
Certification to the K3 standard is now
required of all businesses operating in the construction industry. According to
OSHA (2012), the construction industry is one of the most dangerous professions
to work in and has the highest death rate of any other profession. The risk of
falling is by far the most common contributor to accidental injuries. Utilizing
appropriate protective gear, such as guardrails and helmets, and taking
precautionary safety measures, such as inspecting temporary stairways and
scaffolding, are both effective ways to lower the probability of being involved
in an accident.
6. Shared Value
Shared value is at the center of the 7S McKinsey Model, which also
includes other "S" components. According to the findings of the
interviews, each of the stakeholders named at least one of the corporate values
held by company X as values that were incorporated into the day-to-day
operations of the organization. The following is a list of their corporate
values:
a) Working Smart
Encouraged
all ranks to be able to work smarter and faster, promote innovation, and efficiency
are based on the spirit of the best products and quality.
b)
Caring
Maintain
respectful relations with clients, partners, suppliers, and employees.
c)
Loyal
Work
collaboratively with employees, partners, suppliers, and clients to solve
problems and achieve goals.
d)
Integrity
Exhibit
honesty and integrity at all times.
e)
Commitment
Dedicated to the success of our clients,
partners, and employees.
To complement company X’s corporate value, a
vision and mission statement are needed. Because the organization is still
lacking in those, it needs to have more solid goals with all stakeholders.
Having a vision and mission is fundamental for a company to go in the same
direction. The proposed vision and mission statements are as follows:
Vision
To be the construction industry's leading
company, renowned for quality and innovation, committed to our employees and
the communities in which we operate, and the contractor of choice in our
market.
Mission
Understand our client's need for on–time,
within–budget delivery of high–quality buildings. We will be recognized for
being innovative and collaborative, growing our team, maintaining long-term
relationships with our customers and supply chain, and contributing to the
community in which we operate.
G. Lewin’s Change Model
After using the
McKinsey 7S model to bring about the desired changes in the organization, it
will be necessary to implement change management in order to assist the company
in undergoing transformation. Lewin's Change model will be utilized in the
process of effecting change at company X. The following steps, which must be
carried out in order to use the change model, are as follows:
1. Unfreezing
a)
Encourage
the replacement of old behaviors
Once it has been determined, with the
assistance of the 7S McKinsey model, which aspects of the organization require
modification, the Chief Executive Officer (CEO) will communicate with the other
directors in order to persuade them of the new aspects of the organization that
will be implemented. This will be done in order to convince them of the new
aspects of the organization that will be implemented.
b)
Ensuring
a strong support from management
It is the duty of the Chief Executive Officer
(CEO) to see to it that all of the company's directors and top management are
on board with any and all ideas for instituting change.
c) Manage and understand the doubts and concerns
Other
company X stakeholders receive explanations and are helped to understand them
from the Board of Directors and managers. This is done with the intention of addressing
concerns and questions regarding the change plan.
2. Change
a)
Implement
the change
The next step, which will take place after
the plan for the change has been conveyed to all of the relevant parties, will
be to gradually put it into effect.
b) Help employees to learn new points of view
During this period of transition, all directors and managers will assist
their coworkers and employees in adjusting to the new perspective brought about
by these changes and applying it in their work. This assistance will be
provided by the directors and managers to their employees and coworkers.
3. Refreezing
a)
Changes
are reinforced and stabilized
After the adjustments have been implemented,
they will subsequently undergo maintenance and inspection to ensure that they
continue to operate normally. This will continue for as long as necessary. The
ability of upper management to always apply new change values on a daily basis
is one of the ways. This is one of the possible approaches.
b) Develop ways to sustain the change
During the
process of putting these changes into effect, there will be a review and
evaluation carried out on a regular basis in order to guarantee that the
changes will continue to be sustainable.
H. Implementation Plan
A timeline for the implementation plan is
required in order to carry out the process of implementing changes to company X
in a manner that is organized. In order to put organizational change
arrangements into action, the following is a plan for implementation with a
time span of six months:
Table 5
Implementation Timeline
|
No
|
Action Plan
|
M1
|
M2
|
M3
|
M4
|
M5
|
M6
|
PIC
|
|
W1
|
W2
|
W3
|
W4
|
W1
|
W2
|
W3
|
W4
|
|
Unfreezing
|
|
|
1
|
Informing the BOD that the company will have
some changes
|
×
|
|
|
|
|
|
|
|
|
|
|
|
CEO
|
|
2
|
Gather a "change team" with the BOD
and the managers
|
|
×
|
|
|
|
|
|
|
|
|
|
|
CEO
|
|
3
|
"Change team" address the tranformation plan to all stakeholders
|
|
|
×
|
×
|
|
|
|
|
|
|
|
|
Change Team
|
|
Changing
|
|
|
4
|
Start the implementation of change
|
|
|
|
|
×
|
|
|
|
|
|
|
|
Change Team
|
|
5
|
Provide helps to stakeholders in adjusting
with the transformation
|
|
|
|
|
|
×
|
|
|
×
|
|
×
|
|
Change Team
|
|
Refreezing
|
|
|
6
|
Reinforce the change by applying it in the
regular job task
|
|
|
|
|
|
|
×
|
|
×
|
×
|
×
|
×
|
Change Team
|
|
7
|
Regular review and evaluate the change
|
|
|
|
|
|
|
×
|
|
|
×
|
|
×
|
CEO
|
The Chief Executive Officer (CEO), each of the
Directors, and the Change Team each play important roles in directing the
action plan schedule for the transformation in order to provide support for the
action plan that has been planned. This is done in order to provide support for
the action plan that has been planned. If company X wants to be successful in
accomplishing the objectives that it has set for itself, it is absolutely
necessary for them to keep all of the parties involved regularly informed of
any changes that may occur. providing assistance to all parties involved in the
process of undergoing changes and transformations, as well as evaluating and
reviewing changes over the long term in order to improve the effects of
changes, is an important aspect of change management.
CONCLUSION
After considering everything that was covered
in the chapter that came before this one, there are a few different inferences
that can be made based on the findings of this research. One of these is the
realization that even the most successful businesses will face challenges
during the expansion phase of their operations at some point. Company X is one
of the companies that runs into difficulties when it is first expanding its
business operations. During the course of their observations, they came across the
issue that causes organizations to function in an inefficient manner. Company X
needs to go through a transformation in order to become a successful
organization and to be able to adapt to the changes in the industry.
After company X identifies the root cause
problem that needs to be solved in the organization, the 7S by Mckinsey tools help determine what factors need to be
analyzed and what changes need to be made within the organization by conducting
interviews with the stakeholders, including the CEO, Marketing Director,
Project Coordinator, Marketing Manager, Project Manager, Finance Manager, and
Finance Officer. These interviews help determine what changes need to be made
after company X identifies the root cause problem that needs to be solved in the
organization. "Strategy," "Structure," "System,"
"Style," "Staff," and "Skills" are the seven
components that make up the "Seven Ss." "Shared Value" is
the eighth component. In order for Company X to accomplish all of their goals,
they need to evaluate all of the different variables and figure out which ones
need to be changed.
After a decision has been made regarding
modifications to the 7S factors, Company X is required to carry out a series of
steps in order to contribute to the overall success of the transformation.
According to Lewin's change model, which provides support for the change
management procedure that ultimately results in transformation, the three
primary stages of the change implementation process are unfreezing, changing,
and refreezing.
When it comes to making changes to the company's
organizational structure, the following are some recommendations for company X:
(1) determine which aspects of the current circumstance need to be
modified or adjusted, using the outcome of the implementation of the 7S
McKinsey model as a guide, (2) while undergoing the process of transformation,
modify each step in the process in the appropriate order while using Lewin's
change model as a reference point, (3) within company X, create what are called
"change teams," and then work together with those teams to
successfully carry out the organizational change, (4) carry out on-going
evaluations of the advancements that are being made in the transformation, and
(5) these tools, such as the 7S McKinsey change model and Lewin's change model,
can be utilized in upcoming scenarios, such as when the company faces a new
challenge or when the decision is made to expand.
REFERENCES
Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016).
Organizational structure. Procedia-Social and Behavioral Sciences, 230,
455–462. Elsevier
Bratton, J. (2020). Work and organizational behaviour.
Bloomsbury Publishing. Google Scholar
Creswell, J. W., & Creswell, J. D. (2017). Research
design: Qualitative, quantitative, and mixed methods approaches. Sage
publications. Google Scholar
El Rayess, M. M., Halstead, A., Harris, J., Ralyea, M. J.,
& Tieman, A. F. (2019). Indonesia’s Public Wealth: A Balance Sheet
Approach to Fiscal Policy Analysis. International Monetary Fund. Google Scholar
Herwany, A., Febrian, E., Anwar, M., & Gunardi, A.
(2021). The influence of the COVID-19 pandemic on stock market returns in
Indonesia stock exchange. The Journal of Asian Finance, Economics and
Business, 8(3), 39–47. Google Scholar
Jones, N., Filos, E., Fates, E., & Dimitrakopoulos, P. G.
(2015). Exploring perceptions on participatory management of NATURA 2000 forest
sites in Greece. Forest Policy and Economics, 56, 1–8. Elsevier
Lewis, L. (2019). Organizational change. In Origins and
Traditions of Organizational Communication (pp. 406–423). Routledge. Google Scholar
Limor, L. L. (2021). The 7s McKinsey excellence model. InterConf.
Google Scholar
Luo, Q., Catney, P., & Lerner, D. (2009). Risk-based
management of contaminated land in the UK: Lessons for China? Journal of
Environmental Management, 90(2), 1123–1134.
https://doi.org/10.1016/j.jenvman.2008.05.001 Elsevier
Meita, F., & Malau, M. (2023). The Influence Of Digital
Transformation, Policies, Characteristics On The Effectiveness Of The Tax
System Before and During The Covid-19 Pandemic. Journal of Busiess, Social
and Technology (Bustechno), 4(1), 24–35. Google Scholar
Moleong, L. J. (2021). Metodologi penelitian kualitatif.
PT Remaja Rosdakarya. Google Scholar
Porter, M. E. (1996). What is strategy? Google Scholar
Porter, M. E. (2008). The five competitive forces that shape
strategy. Harvard Business Review, 86(1), 25–40. Google Scholar
Rahmasari, G., Cahyandito, M. F., & Tato, A. (2022).
Evaluation of Mckinsey 7s Framework Model Approach to Credit Distribution With
5C and 7P Principles at Commercial Banking. International Journal of Social
Service and Research (IJSSR), 2(12), 1264–1272. Google Scholar
Saldaña, J. (2014). Coding and analysis strategies. The
Oxford Handbook of Qualitative Research, 581–605. Google Scholar
Suwanda, S., & Nugroho, B. Y. (2022). Literature reviews:
McKinsey 7S model to support organizational performance. Technium Social
Sciences Journal, 38, 1–9. Google Scholar
Tambunan, T. (2008). SME development, economic growth, and
government intervention in a developing country: The Indonesian story. Journal
of International Entrepreneurship, 6(4), 147–167. Google Scholar
Weihrich, H. (1982). The TOWS matrix—A tool for situational
analysis. Long Range Planning, 15(2), 54–66. Elsevier
