Your team will be acting as Change Management Consultants. You have been hired by Saeed to create a plan to manage and lead the change in the corporate culture for his new company. As an expert in Leading Change, you are to instill confidence in him with your knowledge.

question 01 : This change has been difficult for him to implement and you should be able to explain to him why that is and how starting over using Kotter's step 6 and 7 Models will be more effective.

question 02: how to implement Kotter's step 6 and step 7 in this organization.

step 06: create a short-term win

step 07: Build on the Change

This wording may indicate that you intend to submit a tutor's work as your own.

On February 1, 2013, Mr. Ibrahim Saeed, managing director of software development firm SYIT, sat inhis office and gathered his thoughts on the events of the past month. On January 1, 2013, Saeed hadcelebrated the inauguration of the new organization. Based in Islamabad, Pakistan, SYIT was a newentrant in the offshore software development industry. Saeed's months of effort to move the entire projectteam from his previous employer to his newly formed company had not yet been successful. However, heknew that this was just the beginning; the real challenge lay ahead. The most challenging task would bereducing the cultural gap between his team and his primary client, LMT, one of Denmark's largestpublishinghouses.

SYIT:THEJOURNEYSOFAR

Saeed had made a swift journey from his first job in 2001 (as a junior software engineer) to managingdirector of SYIT by 2013. After completing a Bachelor of Computer Science degree in 2001, Saeed workedinavarietyofrolesatfourdifferentorganizations,quicklyrisingthroughtheranksbeforebeinghiredasa project manager by AB Tech, a large information technology (IT) and software services company basedin Islamabad, in 2007. Although he had switched roles and companies rather quickly, Saeed's impeccabletechnical abilities, along with his effective leadership and communication skills, were rare commodities inPakistan'ssoftware industry.

AB Tech's clients were spread across different parts of the world, but each had a single point of contactbased in the Islamabad officewho served as the projectmanager. Saeed was theprojectmanagerforLMT, one of AB Tech's largest clients and one of Denmark's largest and oldest publishing houses.Although other representatives normally communicated with the client, Saeed was the main point ofcontact for the client's representative. As project manager, he was responsible for taking part in meetingsand following up on the progress of ongoing tasks. AB Tech placed the bulk of the responsibility on itsprojectmanagersinthiswayinorder tokeeptheworkingmodel and accountabilitysimpleandclear.

Unlike most AB Tech clients, whose relationships with AB Tech lasted for one particular project within aspecific amount of time and funding, LMT was a permanent client with long-term IT needs. LMTreviewed its relationship with and performance of AB Tech every two years and extended the contract fora further period of two years if it was satisfied with the services. This relationship had lasted several yearsalready.

By 2012, LMT's IT needs had increased and Saeed's team was expanded accordingly. LMT requestedmorecontrolovertheIslamabadteam,feelingthatwiththeincreasednumberofteammembers(fromfour to 15), more than one point of contact was needed. LMT wanted to establish a strong workingrelationship with its dedicated team at AB Tech. Continuous dialogue and more influence on everydetailincluding team values, culture, office design, and physical outlookwas needed for such a long-term relationship. However, AB Tech was reluctant to change its management style and company policiesto accommodate one client. The firm felt that LMT's demands would lead to a feeling of inequityregarding authority across the company and other teams. The situation escalated to the point where LMTconsidered several options, including acquiring the entire AB Tech team or simply exiting the IT marketaltogether.Interestingly,ABTech hadlostteamstoitsclientsbefore, specificallytoEuropean clients.

These events led to LMT and Saeed collaborating towards a solution where Saeed set up a new companycalled SYIT, and LMT was its long-term client, with a contract for a minimum of 18 months. LMTinvested in SYIT through an initial loan, although the company was owned by Saeed. Establishing SYITallowed LMT to have significant influence on projects. LMT was the new company's initial client, butSYIT had full freedom to look for additional clients. Saeed saw this arrangement as a great opportunityandleftABTechto startSYITas planned.

Saeed offered his previous team members employment with the new company, which they all accepted.SYIT was formed on January 1, 2013, with a team of 15 people (all former AB Tech employees) andSaeed as managing director. Because LMT had direct influence over SYIT, Saeed knew that he needed topay attention to minute details and ensure that all of the client's needs were fulfilled. Saeed also intendedto develop a bigger client base in Europe. Having LMT as SYIT's first client would be a major boost tohiscompany's reputation.

Saeed decided on a horizontal structure for the organization, with a wide span of control and only twomanagers between him and the development teams (see Exhibit 1). The concept of this unusually flatorganizational structure was influenced by LMT's vision for encouraging participation, autonomy, andopen communication at all levels. The structure allowed the team in Pakistan to deal directly with theLMT team in Denmark. The new model assured that minute details of the new project could easily bediscussed among the two teams, even though they were based in different countries. However, adapting tothenewstructure andculture was expectedtotakesome time.

Previously,atABTech,theorganizationalstructurewasnotstrictlybureaucratic,butitdidhavemanagement layers. Employees were required to communicate with their immediate supervisors, who, inturn, would communicate with their own managers. Teamwork was appreciated, but open communicationwasnotacorepartofABTech'sculture.Thecommunicationflowmostlyranfromtoptobottom,andAB Tech's employees (i.e., SYIT's new employees) had become accustomed to this format. Saeed waspleased with SYIT's different structure, but he realized he would need strategies to help his employeesadapttothenewpractices.

PAKISTAN'SSOFTWAREINDUSTRY

Pakistan's government provided "reliable IT infrastructure" and many incentives to IT firms, includingprovision of low-rent software technology parks with fibre-optic connectivity, libraries, and conferencerooms.Inaddition,companieswereofferedincometaxexemptiononITexportsrevenueuntilJune

2019.¹Thisgovernmentsupporthadplayedasignificantroleinthetremendousgrowthofthecountry'sIT industry. An increasing number of foreign IT companies were choosing Pakistan for outsourcingoperations.

Moreover,thePakistansoftwareindustrywasrapidlychangingwithincreasingtechnologicaladvancements. The industry's value was estimated at approximately US$700 million,² with a $70-80million annual turnover. Total spending on large IT projects exceeded $100 million in public and privatesectors.³Halfoftheindustry'sgrowthcamefrom projectsby foreignclients,suchasIBM,CiscoSystems, Inc., and Microsoft. The growth rate suggested that the industry would reach $11 billion by2016.Adominantreasonfor this growth wasPakistan's low-cost ITworkforce.

SYIT'SBUSINESSMODEL

At AB Tech, Saeed had been both the project manager and main contact responsible for discussingprogress with LMT, which meant that the communication between the teams in Denmark and Pakistanwas limited; this was one factor that led LMT to separate from AB Tech. As one representative from theLMTteamnoted,

We cannot have one person coordinating our requirements to the whole team anymore, as thatlimits how our needs are interpreted and executed. With our bigger projects, we need to be able todirectly see how the team [in Pakistan] is working and that can be done only if we are able tocommunicate with the entire team. With the [software] industry, you cannot wait for bureaucraticcommunicationtowork,you needtomake decisionsfast,so everyoneshouldbe involved.

Keepingtheseobservationsinmind,SaeeddecidedtofocusontwocoreservicesatSYIT:teamexpansionand projectoutsourcing.

TeamExpansion

The new organization adopted a more refined approach than the previous model of team extensions at ABTech. Even though SYIT still referred to the model's features as team extensions, the intention behindthese extensions was different. At SYIT, team extensions referred to the client getting its very owndedicated technical team that included junior and senior employees based in Islamabad. The team wouldbe led by a senior manager, either from Denmark or Pakistan. This team would become an extension ofthe client's own team back in the home country. Unlike the process at typical offshore companies, whereanindividualwasoftenoccupiedwithmultipleprojects,theteam extensionmodeldesignatedoneindividualtoreportspecificproject detailstotherespectivemanager,whowasbasedintheothercountry.

Under this model, team members could maximize their communications with their foreign counterparts,and learned to make quick decisions without involving bureaucratic controls. For example, they did notneed approval from senior managers before responding to the foreign team. The idea was to integrate thestructuresandculturesofthedifferentsetsofindividualsworkingindifferentcountries(e.g.,Denmark

¹"WhyPakistan,"PakistanSoftwareExportBoard,accessedDecember6,2016,www.pseb.org.pk/why-pakistan.

²AllcurrencyamountsareinUS$unlessotherwisespecified.

³ Muhammad Ishfaq Khan, Muzaffar Ali Qureshi, and Qaisar Abbas, "Agile Methodology in Software Development (SMEs) ofPakistan Software Industry for Successful Software Projects (CMM Framework),"International Conference on EducationalandNetworkTechnology(ICENT)(2010):576-580.

and Pakistan). Therefore, the focus was on strengthening the organizational culture so that it couldtranscend regional culture. Because this model worked well with clients who had ongoing IT needs, SYITwasabletopursuelong-termrelationshipswithnewclients.Saeedwasconfidentthatthismodelfacilitated quick communication between his team in Pakistan and the team in Denmark. He wanted toexpand his operations to other clients in the European market, and he believed that his team extensionmodelwouldprove to beawinningdesign.

ProjectOutsourcing

In addition to the team extension model, SYIT also employed a more traditional project outsourcingmodel, where ITprojects were designed, developed, deployed, and supported by expert engineers atSYIT. These projects had a set duration. Once the projects were completed, employees moved on toanotherproject.Thelevelofcommunicationfortheseprojectswasmuchlowerthanwithteamextensions. Employees could be working on multiple projects with different companies at the same time.Project teams were formed by SYIT depending on the needs of each project, and the client had little inputin teammatters.

THECULTURALCHALLENGE

Saeed'sprimaryobjectiveathisnewcompanywastodevelopacultureofself-managementandencourage individual employees to think, work, and make decisions on their ownthat is, a culture of the"self-steering" individual. Offshore software houses typically had a poor reputation because of theirautocraticmanagementstyle.However,Saeedbelievedthathistypeoforganizationalculturewouldbetter serve the European clientbase thathe wanted to develop. This cultural change was directlyinfluencedbydeployingflatterteamstructures,includingtheteamextensionsmodel,whereteammembers could communicate directly with their European counterparts. They would also be able to makedecisions on their own, rather than rely heavily on the project manager. The new culture was designed topromotefasterand more effectiveexecution ofthe client'sneeds.

Because this new way of working was different from AB Tech's culture (and indeed, from Pakistan'swork culture in general), itwould bechallenging to instill thenew cultureatSYIT, where employeeswere used to themore authoritativework model. Saeed wanted his team members to haveopen minds,and develop an international sensibility to develop solutions, rather than simply execute orders given bythe team leader. These qualities were especially important to a successful relationship with LMT. Lack ofacommunication-basedbusinessmodelhadbeen oneof themainreasons LMTleftAB Tech. Tofacilitate expansion, Saeed and his team needed to develop a working culture that provided team memberswith the confidence and tools to generate solutions independently, which would allow them to becomemore responsive to their clients. Such a work culture was more conducive to developing long-termrelationshipswith potentialclients inEurope.

Intheory,amoreemployee-ledworkcultureshouldhavebeenmoreempowering,butvariousissuesarose once the culture was deployed at SYIT. Saeed assumed that his employees were technically soundand capable enough to make decisions quickly, without a constant need for approval from superiors.However, junior employees were hesitant to question their superiors or the client when making decisions.For example, multiple deadlines were missed on one project due to numerous technical issues, but thejunior employees in that project's team were hesitant to question the senior team member's decisions,despitethosedecisionscausingtechnicalproblemsintheproject.Discussionswiththosejunior

employees revealed that they found it disrespectful to question senior members, and they did not want tobeheld accountableiftheirquestioningledto projectfailure.

Other issues arose regarding the control strategies of some managers on remote sites, as well as confusionregarding which workstyle worked best. For instance, one employee from the Pakistan team explainedtheseproblems as follows:

[The teams at LMT] work in their way, [and] they have their level of care, their level of control.How can I control [LMT employees] and say you have to [do a task] when they refuse toacknowledge thatIhave certainresponsibilitiesforthecompletion ofthetasks assigned tothem?⁴

AnotherSYIT employee(andmember ofSaeed'soriginalteamatABTech)alsoexpressedconcerns:

Onecannotsimplytellsupervisorsthattheyaredoingsomethingwrong,asthatmaybeconsidered grounds for some penalty or worse. Our society teaches us to trust our superiors, evenat timeswhentheymaybewrong, becausetheymayhaveaccesstoinformation that wedon't.

Saeed realized that once the team extension modelwas putinto practice, senior team members wouldneed to provide direction, establish a clear vision, and create an environment of open communication,where the junior team members would feel comfortable sharing their ideas without fear of ramifications.However,this practicewashardto implement, asonePakistanteammemberexplained:

There are a lot of projects that we are doing in parallel and we have so many parallel teams . . . oftwo, three, four, [or] five persons, depending upon the parallel projects. So there can be a messand lack of visibility and predictability. At one time, for example, after two months of work [on aparticular project], Iwas still unaware ofwhatweweredoing.

Saeed recognized that, in a culture where questioning senior employees was considered rude, junioremployees could not simply be forced to adopt the new working style that he had envisioned withoutprovidingfurtherguidanceto bothjuniorandsenioremployees.

NATIONALCULTURE⁵

There were striking differences between the culture that Saeed was trying to develop at SYIT and the onethat was common in companies in Pakistan. These differences translated to a significant gap betweenLMT's working style (in Denmark) and SYIT's (in Pakistan) (see Exhibit 2). Saeed was well aware thatPakistan harboured an authoritative culture. People accepted and appreciated a set hierarchical order inwhich there was a clear understanding of authority positions. These positions or figures of authority werenot questioned. The process began at home, where parents and grandparents were seen as authorityfigures.Similarly,thecommonhierarchicalstructureinorganizationsreflectedcertaininherentinequalities and centralized decision making, and subordinates were expected to be told what to do. Insucha workculture, employees had lessautonomy(see Exhibit3).

⁴

SYIT employees expected to have an autocratic employer/manager who gave directions. The autocraticdecision-making model made it easier for employees to work on complex tasks. Moreover, employeeswithin thismodelappreciatedthefactthatifsomethingwentwrong,theresponsibilityfellontheauthority figure. Their preference for an autocratic employer, as well as the great distance from the client,ledemployeesto generallyavoid uncertainty.

Pakistan's corporate culture also reflected a society that held rigid beliefs and was hostile towards unusualbehaviours and ideas. From a very young age, children in Pakistan were encouraged to be competitive.Achievementandsuccesswereconsideredkeymotivators.AccordingtotheHofstede'sculturaldimensionstheory,Pakistan'sworkingenvironmentcouldbecategorizedas"masculine,"wheremanagerswereexpectedtobedecisiveandassertive,withanemphasisoncompetitionandperformance.

Saeed did not want this strong "masculine" culture to prevail at SYIT because it contradicted his ownbeliefs as well as his vision for his organization. He wanted SYIT's team members to act responsibly,make their own decisions, take risks, be innovative in their approach to problem solving, be credited fortheirsuccesses,andacceptresponsibilityfortheirfailures.Atthesametime,SYIT'snewculturepromotedarelaxedenvironment,wherehelpingeachotherwasthepriority,aboveself-accomplishment.

Saeed quickly realized that, if leftunaddressed, these differences in corporate culture would pose aserious threat to the effectiveness of the new venture. However, he could not simply force his employeestoadopthisinnovative ideaofanemployee-driven workculture.

HOW TOMOVEFORWARD

Saeed's ultimate goal was to create an organization that was flexible and innovative. He wanted SYIT tobecome one of the best offshore software development companies in Pakistan. The company had a goodstart thanks to its large initial client, but there was still a long way to go to effectively address LMT'sneeds.SYITalsoneededtoacquirenewclientsandprojectstoestablishitselfinthemarket.Saeedfeltthata change in culture was the firststep in achieving these goals;itwould allow SYITemployees towork with different clients and on projects with varying work styles. He knew that organizational culturewasdirectlylinked toemployee performancein Pakistan'ssoftware industry.⁶

SYIT's initial 15-member team had worked well with LMT at AB Tech, but an awareness of significantcultural differences would not ensure success. Both established and new employees would be in constantcontact with their Danish counterparts, which required long-term and short-term strategies to ensure thatthe cultural gap would not be an issue. SYIT was expected to grow, with more individuals joining theorganization and bringing their own working styles. Saeed needed to implement a strong culture thatpromotedSYIT's shared values toensure thatall employeesprojected one consistent and effectiveworkingstyle across SYIT's differentprojects andclients(see Exhibit 4).

⁶

EXHIBIT1:SYITMANAGEMENTTEAMSTRUCTURE

Note: Admin. = Administration.Source:Companydocuments.

EXHIBIT2:HOFSTEDE'SNATIONALCULTURALDIMENSIONSSCORES:PAKISTAN&DENMARK

Source:Createdbyauthorsbasedon"CountryComparison,"HofstedeInsights,accessedSeptember27,2016,https://www.hofstede-insights.com/country-comparison/denmark,pakistan/.

EXHIBIT3:COMPARISONOFHOFSTEDE'SNATIONALCULTURALDIMENSIONS:PAKISTANVERSUSDENMARK

Pakistan and Denmark's respective values and cultural characteristics can be compared through the lensof GeertHofstede'sculturaldimensions theory.

PowerDistance

"Power distance" refers to the extent to which the people accept the presence of inequality in thedistribution of power between superiors and subordinates. With a low score of 18, Danish culture exhibitsamore"feminine"(i.e.,wherepowerisdistributeduniformlyamongthemembersofthesociety/organizations) culture, oriented towards coaching and mentoring rather than directing. On theother hand, looking at Pakistan's intermediate score of 55, one cannot completely claim that the culturehas high power distance; however, the culture is not completely "feminine" either. People in seniorpositions do not necessarily decentralize decisions and have more of a tendency towards directing ratherthancoaching.

Individualism

This dimension deals with how much interdependence the members of the society feel towards eachother. Denmark's high score of 74 indicates that Danish people do not necessarily believe that buildingand maintaining extended relationships is necessary.People usually take care of themselves and atmost, theirimmediate family members and areusually quite independent. Incontrast,Pakistan'slowscore of a mere 14 suggests a highly collectivist society where family, extended family, and members inthe society, all have significant importance; this culture is more of a "group" culture where loyalty is keyand trust is the foundation of group behaviour. Further, multiple trusted individuals' opinions are taken intoaccountbeforemakingkeydecisions.

Masculinity

A high score on this dimension indicates that the culture is highly competitive and is driven by results,achievements, and goals. Denmark's low score of 16 on this dimension indicates that the culture is morefocused on well-being, involvement, and support, rather than competition. Pakistan's score of a neutral 50indicates that the society is a mix of masculine and feminine inclinations; this indicates that the societymay have a mix of masculine and feminine values, including focusing on goalsbut not to an extent thatjeopardizeswell-beingandrelationships.

UncertaintyAvoidance

Uncertainty avoidance refers to the degree that members of the culture avoid unknown factors, andwhether they are comfortable dealing with uncertain circumstances. A low score of 23 for Denmark onuncertainty avoidance means that Danish individuals do not require a great deal of predictability anduniformitytofunctioneffectively.TheDanishcultureiscomfortablewithinnovationandcreativity.Conversely, Pakistan's high score of 70 indicates that individuals there are not comfortable with uncertaincircumstances and effort is made to control unknowns. The culture is built around strong codes of belief,and deviation from the norm is discouraged. Here, hard-work is appreciated to reinforce security, rules,andstructurefor workandlife.

EXHIBIT3:COMPARISONOFHOFSTEDE'SNATIONALCULTURALDIMENSIONS:PAKISTANVERSUSDENMARK(CONTINUED)

Long-TermOrientation

Long-term oriented cultures focus on persistence and pragmatism; decisions are made with long-termbenefits and profitability in mind. For Pakistan, a neutral score of 50 means that the culture may not havea specific inclination towards either long-term or short-term orientation. However, Denmark's relatively lowscore of35 meansthatitismore ofa short-term-oriented culture;such culturesfocuson immediategains, respect for traditions and personal steadfastness, bottom-line results, absolute truths, and "savingface."

Indulgence

Indulgenceistheextenttowhichthemembersofthesocietyaretaughttocontroltheirdesiresandwhims. Denmark's high score of 70 means that Danish culture is quite "indulgent"; people focus onfreedom of speech, actively engage in enjoying life, and invest time in recreational activities. Pakistan'sscore on this measure is a stark zero, which means that it is a highly restrained society that controls itsgratification; there is also a perception of helplessness about controlling one's destiny. Moral discipline isimportant, and there is more formality. In Pakistan, indulging in fulfilling personal desires is consideredinappropriate.

Source:Createdbyauthorsbasedon"CountryComparison,"HofstedeInsights,accessedSeptember27,2016,https://www.hofstede-insights.com/country-comparison/denmark,pakistan/.

EXHIBIT4:SYITCOMPANYVALUE

Teamwork	WebelieveSYITisbornfromgreatteamwork
Excellence	Wearecommittedtoexcellenceandcontinualimprovement
Accountability	Weacknowledgeandassumeresponsibilityforourwork andproducts
Empowerment	Weencourageouremployeestotakeinitiativeandengage
Equality	Werespectdiversityandbelieveinequalityasafoundationforprogress