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Organizational Change Danone: Ade Dhani Murtopo M. Alif Kusuma Rahmawati Sinaga

1. Danone Indonesia planned to reorganize in 2014 to improve organizational structure efficiency and reduce operational costs, but faced resistance from employees and performance issues. 2. The reorganization centralized support functions and relocated offices to improve collaboration and reduce costs, but caused issues with employee status, accounting systems, culture, and reporting lines. 3. Danone implemented crisis communication strategies like forming a response team, assessing organizational weaknesses, monitoring operations, and frequent communication to manage the changes and address challenges. 4. An evaluation found the project was implemented with a one year extension, employee surveys decreased, informal leaders were difficult to manage, and there was high turnover. Effective communication played an important role.

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0% found this document useful (0 votes)
90 views23 pages

Organizational Change Danone: Ade Dhani Murtopo M. Alif Kusuma Rahmawati Sinaga

1. Danone Indonesia planned to reorganize in 2014 to improve organizational structure efficiency and reduce operational costs, but faced resistance from employees and performance issues. 2. The reorganization centralized support functions and relocated offices to improve collaboration and reduce costs, but caused issues with employee status, accounting systems, culture, and reporting lines. 3. Danone implemented crisis communication strategies like forming a response team, assessing organizational weaknesses, monitoring operations, and frequent communication to manage the changes and address challenges. 4. An evaluation found the project was implemented with a one year extension, employee surveys decreased, informal leaders were difficult to manage, and there was high turnover. Effective communication played an important role.

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alif kusuma
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Organizational Change

DANONE
Ade
Dhani Murtopo
M. Alif Kusuma
Rahmawati Sinaga
Danone Indonesia as glance
Nutricia Indonesia history
Nutricia Indonesia history
Danone in Indonesia

Danone settled in Indonesia in 1998 by signing a strategic alliance with Aqua, an Indonesian brand of bottled water launched
in 1973. With this partnership, the brand strengthened its market position becoming the largest producer of bottled mineral
water in Indonesia. In 2005, Mizone was launched in Indonesia.

Danone implemented its Baby Nutrition division in Indonesia in 2007, with the acquisition of Numico and therefore of the
brands Sari Husada (an Indonesian brand born in 1954) and PT NIS (launched in Indonesia in 1987 thanks to the import of
products from Netherlands). With the launch of SGM in 1965, Sari Husada was a pioneer in the development and production
of infant formula in Indonesia.
What we present?
Organizational Change

What we present?
What we present?
Organizational Change

What we present?

LEWIN Model
Managing change
Lewin’s Force field of change
1. Evolutionary change
2. Revolutionary change
Handling Crisis
Communications

Memahami perspektif Menggunakan Web


4 audience 5 atau Media Sosial

Memilih perwakilan Melakukan peninjauan


3 organisasi 6 kembali manajemen
krisis

Memantau berita yang


Merespon dengan
2 cepat 7 beredar di Media

Mengembangkan
1 rencana untuk
dikomunikasikan
Background

Tahun 2014 Danone Indonesia berencana untuk melakukan


reorganisasi dengan tujuan efektivitas struktur organisasi dan
efisiensi biaya operasional.

• Banyak resistensi muncul dari pekerja


• Isu-isu negatif mengakibatkan penurunan performa kerja
1. Assess the need for change
Danone Indonesia

Marketing Marketing Marketing


Sales Sales Sales
Finance Finance Finance
HR HR HR Center Business
Service
IT IT IT Shared services
Legal Legal Legal
1. Assess the need for change
Danone Indonesia - After
• Supporting function from Nutricia and
Sari Husada move to Aqua
• Office location centralised in
Pulogadung
• Supporting function (Central
Finance
business service – CBS) served all support Marketing Marketing Marketing
Danone Indonesia subsidiary
• Service Cost charged to each CBU
(central business unit) based on no HR
transaction and other parameters Sales Sales
Sales

• Each CBU focus on drive the business & IT


developing the market
• Office location stay in Central Some part of Some part of Some part of
jakarta Legal Finance Finance Finance
• Business planning & commercial
finance remain with CBU
1. Assess the need for change
Finance evolution

Finance Finance

Account Account
Business Commercial Internal Internal Commercial Business
Payable Reporting Treasury Accounting Accounting Treasury Reporting Payable
planning Finance Audit Audit Finance planning
mgt mgt

CBU CBU – Aqua CBU


Nutricia Shared services Sari Husada
2. Identify Challenges
2. Identify Challenges
People Process & Flow

Employee Accounting
status system

Process
Location & flow

Culture
and More
environ work
ment
Diff
Reward Reportin
g line
system
3. Implement the changes
Main Idea
Main Idea
1 Be prepared for unexpected situation

Crisis Communication can help you to deal with


2 the unexpected situation

Crisis Communication goal should be timely,


3 accurate, and clear.

Choose the right person to spread the right


4 messages.

Avoid missleading information, inaccuracies and


5 rumours.
Preparation

Membentuk tim Menilai kelemahan Membuat rencana


profesional organisasi yang disesuaikan
dengan kelemahan

Memilih juru Melakukan monitoring


bicara operasional organisasi

Solution

Crisis Resolution Crisis Communication


Tim mengidentifikasi Tim mengumpulkan dan
penyebab masalah memahami segala bentuk
untuk mencari solusi informasi
Crisis Communication – Involved Parties

Global
Danone
Employee Danone
Indonesia
Group

1. Offline: Forum pembahasan 1. Adaptasi Danone Indonesia


rutin (weekly) terhadap SOP yang berlaku di
Danone Group terkait intensitas
2. Online: Sarana Danone People
penyelenggaraan forum
Survey
pembahasan
3. Sosialisasi agar Pekerja setiap 1 bulan  1 minggu) Audience
memahami pentingnya 2. Koordinasi mengenai teknis Person in Charge
reorganisasi pelaksanaan reorganisasi Decision Maker
4. Evaluating
conclusion
• The project successfully implemented with 1 year time extension from its initial plan
• During the project, Danone People Survey result is decrease significantly
• Informal leader are difficult to manage
• High employee turnover, Loss talent
• Effective communication play an important roles
Conclusion
Case
No Handling Crisis Communication

Develop a general crisis communication plan and


1 √
communicate it.
2 Once the crisis occurs, respond quickly. √
Make sure the organization has the right people ready to respond and that
3 √
they all respond with the same message.
4 Understand the audience; try to see the crisis from their perspective. √
Realize and leverage the value of the Web and
5
social media.
6 Revisit the crisis communication plan frequently. √
7 Build in a way to monitor the coverage. √
8 Perform a post-crisis evaluation. √
Results
In the past three years, we have been able to manage series of change waves
impacting our business and our people...

Q3 2014 Q3 2015 Q4 2015 Q1 2016

Planning Re-planning
Kick off Implemen Review
project & & tation
Preparation Preparation

Delay on Launch
implementation

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