Magdi Batato At Nestlé Malaysia The case solution  

Advantages

• SAWT strategy helps the company in eliminating the cultural, religious, and class differences among the employees. It is the major advantage of SAWT Strategy.
• SAWT strategy improves the overall social and cultural environment of the company and it improves the team work in the factories.
• SAWT strategy helps in improving the company’s business image and promotes harmony.
• Overall turnover rate will decrease and retention rate will increase.
• Employee’s trust over employer will increase due to the partial autonomy and having their team lead as a coach.
• SAWT helps the company to improve its financial position and identify those KPI’s which create problems in fulfilling the job, as KPIs will be set and monitored for each production line, leading towards organizational growth and increased sales due to the improvement in quality of goods.

Disadvantages

• It may result in employees’ dissatisfaction, as this strategy focuses on offering soft and intangible rewards like public recognition instead of offering monetary reward, which is the most important factor of improving the employees’ performance.
• Magdi has implemented the SWATs strategy for the first time in Estcourt, and he has less experience with this strategy; so there are chances that it might fail in Malaysia and jeopardize Magdi’s reputation.

Organizational Alignment model

Organizational alignment is the process of aligning the organizational vision with leaders and individuals’ objective. In case of Magdi, to implement the SAWT strategy; organizational alignment model will be used. The organizational vision and future objectives will be communicated to the employees. And in SAWT strategy; staff is required to draw their own objectives and set their own target, so it is his responsibility to ensure that the staff’s goals are aligned with the organizational goals. Strategy, goals and objectives are guiding path; whereas,cultures and values are driving path towards final results. In the same way; this SAWT strategy is a guiding path for the staff, and the cultural value of factories isthe driving path.

Organizational Change framework

Magdi is using McKinsey 7s framework. It was created by Tom Peter and Bob Waterman in 1980s. They had a view that if a company wants tosolve a problem then it should go beyond the structure. 7s includes Strategy, System, Skills, Style, Staff and Shared values. This model is a powerful framework that can help Magdi to anticipate change. This strategy will allow Magdi to understand how correlate today’s companies are and what factors do the companies need for change.

Implementation plan

First, the company has to analyze the issues or the need of change in the factories. After analyzing the issues; Magdi has opted to get support from higher management but they were resisting the change. Magdi was able to bring change in the organizations and have enough potential to motivate the team members. As this strategy will provide an autonomy to the staff, which they would prefer to have. Factories have enough resources and skills that can help the management in implementing the SAWT and use the knowledge of Magdi. Further refer to table 1 in appendix. There is a visible need of creating semi-autonomous teams in all the factories, as during the factory visits; Magdi identified two simmering issues and two of the factories were facing operational problems. The top management’s support is not provided as all the production committee members are against creating SAWTs as it may lead to differences due to the multi-religious environment and existence of proper hierarchies. Magdi has the required skills as he has already implemented this strategy in the Estcourt factory.He is also motivated to implement it due to the strategy’s success in Estcourt and he does not have the power to implement it alone, due to the resistance by the production committee members.

SAWTs strategy has to be implemented in the two factories which are facing capacity constraints and the members have already agreed on it. However, the full range of target group is not yet identified, as the committee members are still against the implementation of SAWTs in rest of the four factories as they are operating smoothly. This strategy can be implemented in all the seven factories, as Magdi has the knowledge and skills to implement it, and all the factories have the required resources. It is likely that this strategy will not be implemented due to the cultural differences between the employees.

Currently, Magdi has not prepared any communication and educational plan to implement this strategy in the Malaysian factories. Although he has implemented this strategy in Estcourt factory previously, but he cannot use the same plans of implementing SAWTs in Malaysia due to the massive differences in the working environment. Magdi has the ability to train the employees to adopt the change and select working in semi-autonomous teams.Magdi hasn’t plotted the project and realignment plans for implementing the SAWTs strategy in the Malaysian factories.

Conclusion

Magdi had-suggested SAWT strategy for Est-court which turned out to be a successful strategy. Employee’s performance and productivity had increased and the overall operations of Est-court had improved. After that, Magdi was asked to implement the same strategy in other seven factories of Nestle, operating in Malaysia. The production committee was resisting this change because they were thinking that due to the diversity and religious difference; it was not possible for the staff to work in teams. Now, it is Magdi’s decision that how he would convince the production committee for SWAT strategy. Magdi should implement the strategy in the two factories which are facing problem, and then he should work on convincing the production committee to implement the change in other factories.................

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