Project Shakti_Change Project

8/11/2019 Project Shakti_Change Project

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ContentsScope and Context .................................................................................................................................. 2

The scope of change ........................................................................................................................... 2

The context of Change ........................................................................................................................ 2

Research Methodology ........................................................................................................................... 3

Literature Review .................................................................................................................................... 3

Organisational Readiness ........................................................................................................................ 6

Weidbords Six Box Model of Organisational Readiness .................................................................... 6

Making the Change ................................................................................................................................. 7

Kurt Lewins Force Field Analysis ........................................................................................................ 7

What the organization either should have done differently or what they should do next .................. 10

Annexures ............................................................................................................................................. 13

Results of the Questionnaire: ........................................................................................................... 13

Interview with HUL Senior leader ..................................................................................................... 21

References ............................................................................................................................................ 23


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Scope and Context

The scope of changeThe end of 1990s was the time when a lot ofself-help groups for women began springingup across India. These groups had a purposeof providing financial support to women byborrowing money from each other to avoidexcessive demands of moneylenders. Thesegroups were also meant to provide a safespace to women where they can go whenthey become victims of alcohol inducedviolence in the household. The HUL managerswere keenly observing this trend and wanted

to give a chance to these women to be self-dependent and capable of earning a livelihoodfor themselves without hard physical labor.Some presentations were prepared by theHUL managers targeted to these self-helpgroup meetings and invited women, tobecome direct-to-consumer sales distributors.

This project entailed a complete revamping ofthe companys sales and distributionstrategies. The focus of the resource andcapital allocation needed to be changed. Theattributes of the change helps us to classify itas a transformational change . The futurestate of this particular project had to beradically different from the current state andthis involved change in the existing mindsets

and behaviours, strategies, technologies,processes and procedures. Previously

operating as a conventional private sectorcompany, HUL had to become an organizationthat required people to share informationacross strongly held boundaries and side byside put the needs of the organization andsociety over their own agendas. The productsize forms one of the most critical factors toevaluate the magnitude of the change. Thisimpacted the companys marketing strategies,ATL and BTL measures and different waysthrough which the company promoted itsproducts. The product sachets were neverdistributed by HUL before the inception ofProject Shakti. Another notable feature of this

project is that the strategies of implementingchange were emerging with time. Newtechnological skills were imparted to the SEsas the need was arising. The programme wasextended in 2010 to include Shaktimaanswho are typically the husbands or brothers ofthe Shakti ammas. Shaktimaans complementthe Shakti ammas. They sell the companys products on bicycles to surrounding villages,covering a larger area than Shakti ammas can

do on foot. There are over 50,000Shaktimaans across India. Each shaktimaancovers around 3 villages in his own villagesvicinity which is a larger area than a woman,Shakti amma, can cover on foot.

The context of ChangeHUL had been planning of expanding its reachin rural India. The choice that it had was toadopt the traditional distribution model,which wouldve worked well for the cashregisters. However, HUL came up with aunique micro-entrepreneurship model whichaimed at integration of business interests withthe societal needs, thereby sticking to itsDoing Well by Doing Good belief.

HUL has always supported the idea that theprivate sector plays a crucial role in creatingsolutions to social challenges with the help ofinnovative strategies. The strategies should be


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such that they meet both the social and thebusiness objectives. Promoting this micro-enterprise model, Project Shakti not justmade a great business sense but also had thepotential to have a deep social impact. Theunderlying benefits for the rural communitywere:

Sustainable investment opportunity for villagecommunity/rural women.

Increase in the household income of poorfamilies of Shakti Entrepreneurs (SEs).

Empowerment to rural women. Access to health and hygiene products and

hence better living standards. Underprivileged women get the basic

business management training. The ShaktiEntrepreneurs (SEs) are sold the products atadditional discounts by HUL, hence allowingthem to raise incomes. This model results indoubling of the SEs average householdincome . HUL also invests in SEs training. Thecompany provides them with sales tools aswell like bicycles, mobiles etc.

In general, a woman having a poor economicbackground in a particular rural area isselected as SE, and is referred as ShaktiAmma. The r ural distributor provides herwith stocks. Once she is trained by thecompany, the SE starts selling the goodsdirectly to the retailers and consumers in thevillage.

The incomes of SEs are significantly higherthan the per capita income of their respectivestates. The ERP solution implemented by HULin 2013 in Project Shakti has enabled SEs tomanage inventory, take and bill orders, andsuccessfully drive distribution efficiencies.

Research MethodologyTo gain a better understanding about theChange Management in an organization westarted off by studying various research

papers in international journals andshortlisted eight most relevant ones for thispaper. We then tried to deepen ourconceptual understanding by reading up onKurt Lewin s and Weidbords findings onChange management and their implicationson our study. Post this; we gathered data overtelephonic interview in the corporate office ofHindustan Unilever Limited. We alsoconducted a questionnaire survey with the

existing employees to understand how thechange was brought about in the company.

Literature ReviewThe Tyranny of Change: OrganizationalDevelopment Revisited

McKendall suggests that plannedorganizational change, commonly known as

organizational development, inducescompliance and conformity in organizationalmembers which increases the power ofmanagement. These consequences occurbecause organizational development effortscreate uncertainty, interfere with the informalorganization, reinforce the position ofmanagement, and further entrenchmanagement purposes. These consequencesoccur regardless of the intentions of

management and regardless of whether thegoals of the organizational developmentintervention were achieved. Instead ofexamining these consequences, practitionersand theorists have engaged in self-deceptionand depoliticized the practice of inducedorganizational change by creating a fieldknown as Organizational Development.


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The Change Masters: Organizational

Development in a State Archives

Hefner in this article suggests that themanagement technique of organizational

development be considered as an optimalalternative to more traditional managementstyles, particularly autocratic managementstyles. The author discusses organizationaldevelopment in the context of an archivalinstitution which, for a period of time,implemented the organizational developmenttheory. The article concludes that unless themanagers and individuals of an institution aretruly committed to a progressive and humanlyresponsive management approach that valuesthe processes of the organization and thedevelopment of the employee, archivalinstitutions may remain mired in their ownmanagement deficiencies, thereby affectingthe ultimate goal of an organization tocreate an environment that is responsive bothto the goals of the profession and the needsof the individual.

Cycles of Organizational Change

Mintzberg and Westley contend thatdevelopment of a comprehensive frameworkof change by organizations rests on variouscycles: concentric to represent the contentsand levels of change, circumferential torepresent the means and processes of change,

tangential to represent the episodes andstages of change, and spiraling to representthe sequences and patterns of change. Thisframework is fleshed out in conclusion bydeveloping three models of changeexperienced by major world religions, labeledenclaving, cloning, and uprooting.

Change Management In The Strategy

Implementation Process

Markiewicz in this article presents adiscussion on the strategic management

process paying special attention to issuesrelating to strategy implementation. Theselected paradigms and models of strategicmanagement were discussed. Concentratingon an organic approach, the meaning ofchange management in the process ofstrategy implementation was presented.Implementation of the strategy has beentreated as the relocati on of model of a deadsystem that is strategic plan, into a livesystem, that is, an organization achieving itsdefined strategic goals. It requires not onlychanges in the static organizational structure,but, above all, changes in the methods ofapproach to employees functioning in theorganization. These changes requirecreativity, innovation and perception of anorganization in the categories of processesimplementation.

Achieving readiness for organisational

change

Smith focused on the importance of achievingchange readiness, ways in which this may beachieved and means to assess organisationalreadiness for change. He found that achievingand sustaining effective organisational change

and renewal are an imperative. The people inorganisations can be either the key toachieving effective change, or the biggestobstacles to success. He highlighted howmanagers attempting to achieveorganisational change will be well served bypaying attention to the need to createreadiness for change this at both theindividual employee and wholeoforganisation level and the ways in which thismay be achieved.


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Resistance to organisational change: the role

of defence mechanisms

Bovey and Hede observed that hithertoresearch on resistance to organisational

change has focused more on organisationalissues rather than individual psychologicalfactors. They investigated the role of bothadaptive and maladaptive defencemechanisms in individual resistance. Throughsurveys conducted in nine organisationsundergoing major change and responses wereobtained from 615 employees. The resultsindicate that five maladaptive defencemechanisms are positively correlated withbehavioural intention to resist change,namely, projection, acting out, isolation ofaffect, dissociation and denial. The adaptivedefence mechanism of humour was found tobe negatively correlated with resistanceintention.

The effects of organisational change on

employee psychological attachment: Anexploratory study

Employee commitment is a concept which hasattracted much attention in recent years.Research has focused on relationshipsbetween commitment and various facets ofindividual performance and on thepsychological basis of the commitment itself.Bennet and Durkin studied the pattern of

employee commitment in an exploratorystudy of employees of a large retail bankwhich is undergoing a process of bothstructural and cultural change. Three bases ofemployee commitment internalisedcommitment, identification commitment andcompliance commitment were profiledagainst the pattern of commitment which theliterature suggests will be found acrossvarious employee grades. Evidence from theexploratory research is presented which

suggests that major change may result in the(at least partial) dissolution of internalisedcommitment on the part of employees,coupled with a corresponding increase incompliance commitment.

Career development in a changingenvironment

Laser studied the role that externalconsultants play when it comes to helpingorganisations solve problems. Theintervention described was in response to the

turmoil occurring within a largetelecommunications firm following majororganisational restructuring. To prevent alargescale loss of highpotential managersand longterm supervisors, a firm ofconsultants was called in. A workshop wasdesigned which would permit participants toidentify their strengths as well as theirdevelopmental needs.

The role of communication in organisationalchange

Elving sought to provide a conceptualframework for the study of communicationduring organisational change. Although thereis an enduring interest in studying (internal)communication during organisational change,there is still little or no empirical research onthe topic. In this conceptual paper aframework is presented on how to studycommunication during organisational changeand how communication could preventresistance to change. The framework leads tosix propositions in which aspects ofcommunication, such as information, feelingsof belonging to a community, and feelings ofuncertainty, have an influence on resistance

to change, which will affect the effectivenessof the change effort. A distinction between


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the informative function of communicationand communication as a means to create acommunity was made. In the suggestedmodel communication has an effect not onlyon readiness for change, but also onuncertainty.

Organisational Readiness

Weidbords Six Box Model of

Organisational Readiness

Purpose

Hindustan Unilevers vision is to add vitality tolife by integrating the social, economical andenvironmental considerations into itsbusinesses and brands. Project Shakti tookthese factors in to consideration and createda micro-entrepreneurship approach that met

both business and societal objectives bydoing well by doing good.

Structure

For Project Shakti, there existed a distributionchannel in the rural market to which anaddition was made (Rural Sales Promoter ->Combined Direct Coverage -> Shakti Amma ->Consumer) to lay the foundation for the

endeavour.

HUL Distribution Channel (post-Project Shakti)

Rewards

At Hindustan Unilever, employee benefits are

standardized for all employees on the basis oftheir technical skills. The same philosophy wasadapted to the Shakti team, with thecorresponding importance of their salaryaffecting the propensity to consume in theintended market. The company sells theproducts at additional discounts to the ShaktiEntrepreneurs (SEs) thus enabling them toraise incomes of their families. The initiativealmost doubles the average householdincome of a SE.

Helpful Mechanisms

HUL makes extensive use of technology fordemand sensing. However, almost all stockistsin smaller towns were family-run with nodesire to invest in technology. HUL had twochoices. It could either come up with a newmodel for rural distribution or adapt its

existing model with minor tweaks. It chosethe latter.


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Leadership

The initiative, despite being a method ofmarket expansion, had organisation-widerepercussions. Nitin Paranjpe, Managing

Director, was one of the champions of thechange who made HUL accountants,production and human resources people goout and meet consumers in villages acrossIndia, just as he did himself. It was a methodof leading by example and inspiring changethrough all echelons of the organization.

Making the Change

Kurt Lewins For ce Field Analysis

Unfreezing

The initiative was driven by Hemant Bakshi,Executive Director (Customer Development),whose team questioned something that HULmanagers had believed over decades: Ruralmarkets were at a different stage of evolutionfrom urban markets. As a result, consumerswere given limited variety of stock mostlythe mass market and discount brands andthat too in small pack sizes or sachets.Within the organization, the motivation for

the change to a new model of micro-entrepreneurship was created by the fact thatHindustan Unilever Limited needed to expandits spread and the hitherto unexplorednetwork of 6,37,000 villages provided a viableopportunity for this expansion. The internaland external stakeholders were identified andpresented with the financial and social gains(sustainable investment opportunity forvillage community/rural women, increase inthe household income of poor families of

Shakti Entrepreneurs (SEs), empowerment torural women and better standards of livingthough access to health and hygieneproducts) that stood to be made from thisendeavour, which have since presentedthemselves.The senior leaders provided theirsubordinates with a lot motivation andsupport. The positive results of the projectwere frequently highlighted to provide theemployees with a push to work towards thechange.HULs chairman and board remained heavilyinvolved during the 15-month pilot stage.

Managers presented monthly progressreports to the board during this phase andHULs supply chain leads were also expectedto provide support upon the request of a pilotprogram manager. After the pilot phase, sixprojects including what became known asProject Shakti were identified by the boardas potentially viable, scalable and worthy offurther investment. For the next three years,the six managers, or venture leaders,

appointed to oversee a given projectcontinued to present to HULs board onceevery three months. Drawing on astandardized set of 3- to 6-monthperformance benchmarks, the board was ableto assess each project and determine itsviability while also quickly shelving projectsthat were not scalable. Only two out of the sixideas made it to the market. One was forPureit, a water purifier; the other was ProjectShakti.

Changing

Increasing the Efficiency of DistributionChannelsIn the past, HUL had relied on its network of2,700 redistribution stockists and sub-stockists to supply products to stores in large

villages. For smaller villages with a populationof less than 5,000, its products were sold


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Rural Training Programs for managers. As partof their training programme, all HULManagement Trainees spend about 4 weekson Project Shakti in rural areas with NGOs orSHGs. Assignments include business processconsulting for nascent enterprises engaged inthe manufacture of products such as spicesand hosiery items.

For the first three years of the project thepilot stage HULs focus was on determiningthe scalability of the initiative. Accordingly,financial targets for example, profit growth

were not considered important metrics

during this phase. Instead, the companyexamined three-to-six month targets on salesvolume and the number of villages where theproject was operational.Next, the company focused on thesustainability of its Shakti Amma network. Ithired a new layer of managers, each of whichwas responsible for 2,000 Shakti Ammas.Their performance was measured accordingto the average income level of the Shakti

Ammas in their network; their access to creditfrom alternative sources, such as self-help-groups to fund their business; and the abilityof Shakti Ammas to generate revenue inaddition to their HUL business (for example,by selling mobile phone credit to villagers) all of which are critical to the networks sustainability.Following the sustainability phase, HULinstituted a two-fold change to theirorganizational structure in order to improvecost efficiency and capability development. Atthe ground level, HUL hired a third-partycontracting firm to oversee capabilitydevelopment. During this phase, eachmanager from the contracting firm providedlocalized attention to 400-500 Shakti Ammas,and their success was measured based onsales growth and improvements in the

womens sales techniques. HUL alsodeveloped a management team at the state

level. These managers were assessed ontypical financial indicators, such as revenuegrowth and profitability, and were specificallytasked with driving cost efficiency bystandardizing the projects operations.

Identify the actual and/orplanned outcomes from changeand evaluate the effectivenessof changeProject Shakti was launched under theumbrella of New Ventures, a departmentcreated as a result of the work. Shakti utilizeswomens self -help groups (SHGs) forentrepreneur development training tooperate as a rural direct-to-home sales force,educating consumers on the health andhygiene benefits of HLL brands and nurturingrelationships to reinforce the HLL message.New Ventures believed that this direct-to-consumer initiative would not only stimulate

demand and consumption to earn hugeprofits for HLL, but also change the lives ofpeople in rural India, something that mass-marketing alone cannot accomplish. SharatDhall, who leads Project Shakti mentioned in astatement highlighting planned outcomesWe have four goals for Project Shakti. First,we plan to increase our reach to the ruralmarket. Then we will attempt to increaseawareness and change attitudes regarding

usage of the various product categories.Finally, and most important, catalyze ruralaffluence and hence drive growth of themarket Project Shakti has caught the attention ofmany within HLL who have recognized theventure as an exciting opportunity topenetrate the rural BOP, while finding double-digit savings in costs as compared to usingindependent rural sales agencies. HLLexecutives also believe Shakti offers intangible


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benefits, including increasing brandawareness, developing new channels, andsocial impact. They assert that HLLs role i nthe empowerment of rural women is moreimportant than sales alone.HUL has been following a sustained approachto tap the vast potential of Indias ruralmarket. The evolution of HULs ruralmarketing strategies from an indirectapproach to rural area to the door stepmarketing through Shakti amma shows thatthe company has come a long way since ittook its first rural initiative back in the 1960s.Varieties of changes were on the horizon and

have positively impacted rural distributionplans of HUL -

Technology of digital maps to studyexisting rural distribution reach and todraw up plans for increasing reach(Maps help for smarter routeplanning)

Improved road infrastructure acrossthe country leading to improvedaccess to even remotest of villages

Reach of Television to rural area hasrural consumers watching allprogrammes and ads as in the city

Aspiration to use same products ascity folks is on the rise and buyinghabits of rural consumers is changingaccordingly

Similar to the Annapurna salt teams strategy,New Ventures aims to increase the range of

HLL products in rural markets by takingmarket share from local players andestablishing brands that are not currently inthe market. Although New Ventures does notyet receive pressure from other HLL businessunits to push a particular units products,Dhall expects and hopes this will happen onceProject Shakti proves itself.

From the corporate perspective, Shaktis

greatest challenge is distribution with Indiasunderdeveloped infrastructure. For the sales

managers on the front line, training ruralwomen to work on their own for the first timeposes the primary hurdle. For dealers andPracharanis, educating rural consumers aboutthe quality of HLL products continues to provedifficult because most villagers areaccustomed to less expensive, unbranded,local products. Even if they are convinced ofHLLs marketing message, many imitationproducts cloud the market and confuseconsumers.

HLL acknowledges that for Project Shakti to bea significant part of the companys rural

penetration, dealers and communicators mustbe well-trained. It is unclear how dealers willperform in an expanded infrastructure. Also,HLL will need to determine whether theProject Shakti model is repeatable in othercountries. Indian family structure and villageinteraction provide a unique diffusionmechanism that is an effective vehicle forShakti. Whether this model will be successfulin Africa, South America, or other parts of Asia

due to cultural differences in village structuresmust be further explored. Even though thesequestions remain unanswered, HLL hasdeveloped an innovative model that othercorporations can examine to determine howthey can utilize the BOP to enhance theirbottom line.

What the organization eithershould have done differently orwhat they should do next

Citizenship and identity formation in ProjectShakti

Project Shakti has led to a development of astrong individual identity for almost all;however, an identity formation amongst the


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Shakti Amma as a collective engagement withthe economic processes that are followedglobally has not been either developed orpromoted by HUL. What has not been createdis a space for the collective. The initiative toensure that Shakti Amma interacted regularlywithin a region to express their opinions onthe Project or to suggest improvements inexisting processes was not taken up by HUL.The HUL seems to be holding this opinion thatthe act of engaging these rural women withan MNC like HUL and helping them becomeeconomically solvent is enough to empowerthe Shakti Amma so that they can take up the

role of a citizen which is active in his/herworld. But even assuming that Shakti Ammawould have an autonomous sense of agencyto change the terms of such engagements isthrusting upon them a responsibility for whichthey are currently ill-equipped. ThoughProject Shakti may have brought the ShaktiAmma outside the ambit of the privatespheres of their homes, it is doubtful whetherit has exposed them to spaces beyond the

village, the district or the state, let alone toglobal arenas. At the most, Shakti Amma areaware of HUL as a producer of good qualitysoaps and detergents. Engagements with HULhave not led to a greater understanding of theglobal processes embodied by it. Withreference to a sense of global identity, abilityto access and participate in trans-stateinstitutions and decision making fora, ShaktiAmma do not come across as beingglobalised. The existence of a sense of globalcitizenship among Shakti Amma is very weak.The terms of their engagements with globalprocesses in production and consumptionhave been mediated and negotiated by eitherthe state government or through NGOs,without their direct involvement. Theeffectiveness of such engagement has notbeen enriched with the lived experiences of

those directly involved in the engagement.Hence, initiatives from HUL to create global

level engagements should be taken in order tocreate real empowerment of these women.

Alliances and mobilisation within ProjectShakti

Although individual agency may be a centralaspect of claiming rights and observing duties,collective struggles to redefine processes haveoften been successful in the transformation ofinstitutions that have resulted in moreinclusive practices of citizenship. The absenceof a collective of the Shakti Amma is indicativeof the many problems that they have faced inProject Shakti. The formation of a collective

body and a legitimate space could have beeninstrumental in solving some of the problems,particularly understanding margins andkeeping accounts at the start of the initiative.In particular, the idea of credit was notencouraged by HUL either for the ShaktiAmma or for their clients. Some Shakti Ammafelt that given the rural situation and theireconomic background, the idea of creditneeded to be explored. A few have, on theirown initiative, given credit to other SHGmembers to promote the dealership withinthe village, but the Shakti Amma would haveto pursue the customers to collect her dues.Sometimes villagers would only purchase theirmonthly or daily requirements from the ShaktiAmma if they were specifically promised adiscount.

Delivery of stocks by the HUL representativeshas also posed problems. HULs rural salesperson (RSP) would not take regular ordersfrom the Shakti Amma, who have reporteddelays in the delivery of stocks, or the deliveryof stock in instalments. They observed that nosuch leeway was given when it came topayment for these stocks. In addition, newproducts were sent without consultationregarding product feasibility, and HUL was

reluctant to take back products that had lowsale turnovers.


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Shakti Amma have also faced problems withthe process of retailing. Although HUL agreedto take back unsold stocks, they have notdone so. According to the Shakti Amma, oftenonly small quantities of any product arerequired in rural areas, and the quantitiessent by HUL were in excess. They also feelthat products that have no market in ruralareas are dumped on them. The fact that theyare not allowed to sell other brandedproducts is, according to them, a hindrance inachieving greater profits. Storing excess stockwas often a problem, needing either aninvestment on the part of the Shakti Amma

for constructing a shed to store the products,or storage limited spaces of family houses.

Decision making in the hands of Shakti

Amma

The representation of the Shakti Amma indecision-making processes of Project Shaktihas been virtually non-existent, to the extentthat some are quite unsure even of who toapproach for resolution of problems in thedealership. Although those selected by HULdo identify with the corporation, they do notapproach them for resolution of problems.Those selected and promoted by NGOs looktowards the NGOs to mediate with HUL ontheir behalf. HUL should also provide creditfacilities to facilitate the dealership. HULprovide them with two-wheelers to makethem mobile and hence increase the

opportunities to take up satellite. AlthoughHUL has started a good initiative, it has notput the proper structures in place to enablethe smooth functioning of the project.

Conclusion

Globalisation may have offered livelihoodopportunities to rural women as marketingagents for HUL. Through this MNC initiative,

Shakti Amma have been able to increase theirincome and gain some social status withintheir limited sphere of the village or district.Despite being a part of the global economicchain, these women continue to view theiridentity locally, but in a slightly differentimage, that of hygiene amma, bringing themessage of cleanliness, aspirations of themodern and popular notions of femininebeauty to villages. This different image is notwithout costs to most of the Shakti Amma,caused by the many problems in the actualrunning of dealerships. To some extentproject Shakti has undermined existingcollective approaches and collective forms ofself-organisation as counter-hegemonicalternatives. Some SHGs have lost their strongleaders to Project Shakti. More involved inpromoting the dealership to achieve the

targets set by HUL, many Shakti Amma arenot active in local politics, or inclined to dealwith larger social issues that were often takenup by the SHGs. The actual running ofdealerships has often been in the hands of themen. While HUL sought empowerment ofwomen through Project Shakti, it may have, toa certain extent, perpetuated the existinggender relations in the larger society. Spacesand mechanisms for citizen participation in

decision-making both at the national and theglobal scales need to be created and stressedby HUL in order to bring more success to thisprogram. Legitimate representation,participation, mobilisation, intermediation,transparency and accountability shouldbecome the guiding principles for these newspaces of civic engagements.


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Annexures

Results of the Questionnaire:Which of these statements best applies to how change is managed at HUL?

The organization wide perception about HUL is that it is in a state of change; rapid or gradual.Majority of respondents recognize that the organization is not status-quoist in nature and is adept toaccommodate and move towards changes in the environment. However a quarter of therespondents felt that some of the change initiatives are departmentalized and are dealt withseparately and gradually. Given the largesse of the organization, a perception as this could breedgrounds for discontentment and non-involvement where organization-wide changes are desired andnecessary.

HUL exists in a state of rapid and continuouschange

HUL evolves through long periods of stabilitywith short bursts of fundamental change

Departments within HUL deal with changeincrementally and separately

HUL is constantly undergoing small changes

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

HUL exists in a state of rapid and continuous

change

HUL evolves throughlong periods of stability

with short bursts of fundamental change

Departments withinHUL deal with change

incrementally andseparately

HUL is constantlyundergoing small

changes

Series1 33% 0% 25% 42%


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Please select how applicable each of these statements is in describing the management of changeaffecting your job role(If the result shows 60%, it entails that 60% of the respondents are in disagreement with thestatement)

The chart present that not only are there few delays in the time scales that are set in the changeproject and that project times do not lack consequence and consistence in regards to the change,people are open to sharing ideas and seldom do they use their own ideas for person agendas. Group

work, cohesion, openness and sharing are hence important points that one can highlight afterconducting this survey. However, involvement of the employees interviewed has been low beforethe delivery takes place.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Project teams have sometimes a lack of consequence and consistence in regards to

There are delays in the timescales that are set inthe change project

Good ideas for change are hidden and used forpersonal agendas

Involvement in the change project beforedelivery takes place

Project teams havesometimes a lack of

consequence andconsistence in regards

to the change

There are delays in thetimescales that are setin the change project

Good ideas for changeare hidden and used for

personal agendas

Involvement in thechange project before

delivery takes place

Series1 78% 82% 83% 43%


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This set of questions paints a rather surprising picture of change initatives at HUL. Communicationsare found to not be timely and relevant by 67% (chart of disagreement). Change Is not backed byincentives. Instead it is expected and not really supported. But people are attempting to involveothers who may not be be directly concerned with the project.

Logical reasons are not found to be visible and transparent by over 60% of repsondents.Training isalso found to be inadequate by over 50% respondents while very few people disagree that changeprojects create resistance which has to be broken.

56% 58% 60% 62% 64% 66% 68%

Communications about the change are timelyand relevant

The implementation of the change within yourrole is managed solely by HUL

Change is expected without being linked toincentives

Communication about the change is limited toonly those directly concerned with the project

Communications aboutthe change are timely

and relevant

The implementation of the change within yourrole is managed solely

by HUL

Change is expectedwithout being linked to

incentives

Communication aboutthe change is limited to

only those directlyconcerned with the

projectSeries1 67% 60% 67% 67%

0% 10% 20% 30% 40% 50% 60% 70%

Change projects create resistance which has to

be brokenTraining is inadequate leaving unanswered

questions about the change

There are long periods of planning before thechange is delivered

There are logical reasons for change which arevisible and the goals are transparent

Change projects create

resistance which has tobe broken

Training is inadequateleaving unansweredquestions about the

change

There are long periods

of planning before thechange is delivered

There are logicalreasons for change

which are visible andthe goals aretransparent

Series1 45%60%62%67%


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Process of implementation for change is found to not be flexible and reactive. Conflicts are notoverlooked. In fact, they are looked at for and are tried to be solved.

Which of these statements best describes Project Shakti?

Coming to the focus of our paper which is project Shakti, our findings reveal that it was managed

with clean cut objectives, methods were clearly communicated to the employees as well as thetime frame was clearly adhered to given the paucity of resources and other constraints.

0% 10% 20% 30% 40% 50% 60%

The process of implementation for the changeis flexible and reactive

The project lead for the change is known andproject champions aid the planning and

implementaiton

Those concerned with the outcome of the

change project take part in planning

Conflicts within the change are looked for antry to be solved are looked for and try to be

solved

The process of

implementation for thechange is flexible and

reactive

The project lead for thechange is known and

project champions aidthe planning andimplementaiton

Those concerned with

the outcome of thechange project take

part in planning

Conflicts within thechange are looked foran try to be solved arelooked for and try to

be solvedSeries1 53% 52% 53% 37%

0% 10% 20% 30% 40% 50% 60% 70%

Project Shakti is managed within a settimeframe with clear objectives and methods

that were communicated in advance, andmanaged in a controlled way

Project Shakti is a dynamic project whichchanges in timescales and deliverables. It hasfocus on contingency which appreciates the

complexity of issues

Project Shakti is a combination of the abovetwo statements but not necessarily in equal

proportion

Project Shakti is managedwithin a set timeframe with

clear objectives and methodsthat were communicated inadvance, and managed in a

controlled way

Project Shakti is a dynamicproject which changes in

timescales and deliverables. Ithas focus on contingency

which appreciates thecomplexity of issues

Project Shakti is a combinationof the above two statementsbut not necessarily in equal

proportion

Series1 58% 25% 17%


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17

Which of the below statements best applies to how you feel Project Shakti is managed?

Half of the repsondents felt that the ideas were openly communicated and a whopping 63% feel thatthere were predetermined guidelines for how the system implementations are followed. Many alsofelt that there was no rotation of responsibilities among the employees and that many that were leftin charge and left unchanged.

Communication definitely came out as one of the strong points aiding the success of implementationof change initiative of project Shakti. People felt that training was also adequately given and thecommunications were also made readily available

0% 10% 20% 30% 40% 50% 60% 70%

Key implementation personnel are chosen,put in charge and left unchanged

There are predetermined guidelines for howthe system implementation is to be managed

and these are followed

Ideas are openly communicated andencouraged within the implementation

Key implementation personnelare chosen, put in charge and

left unchanged

There are predeterminedguidelines for how the system

implementation is to bemanaged and these are

followed

Ideas are openly

communicated andencouraged within the

implementation

Series1 67% 37% 50%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Implementation communications are openand readily available

Training is frequently given with supportingmaterials creating confidence with the system

and the processes

Communications about the implementationare not given in advance and not relevant

Implementationcommunications are open and

readily available

Training is frequently givenwith supporting materials

creating confidence with thesystem and the processes

Communications about theimplementation are not givenin advance and not relevant

Series1 32% 33% 75%


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18

Please rank these requirements about change in order of importance to you, from 1 to 9.

(1=Most Important, 9=Least Important

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Wide timescales for the implementaitondeliverables are set and goals are met

Conflicts within the implementation areavoided

Each release begins with no anticipatedplanning

Wide timescales for theimplementaiton deliverables

are set and goals are met

Conflicts within theimplementation are avoided

Each release begins with noanticipated planning

Series1 45% 77% 75%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Incentives are linked with the implementationto aid the process of change

Once the implementation has taken place, userinvolvement in the project begins

The direction of the implementaiton isinfluenced by resistance

The reasons for change are unclear and thereare different views of the goals of the

implementation

Incentives are linkedwith the

implementation to aid

the process of change

Once theimplementation has

taken place, userinvolvement in the

project begins

The direction of theimplementaiton is

influenced by

resistance

The reasons for changeare unclear and thereare different views of

the goals of theimplementation

Series1 63% 42% 48% 75%


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19

Understandingwhy change ishappening and

why it isnecessary

Having assistancefrom the projectowners, projectinfrastructure,

training specialistto create a

supportiveenvironment

Knowing theproject

recognisesorganisation

widedependencies

and gives caution

to peopleprocess andinfrastructure

Feeling thateveryone is

focused on thesame goals and

objectives

Appreciation of how the changewill take place

and beeffectively

communicated

Series1 2.8 5.3 4.7 3.8 4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Understandingwhy change ishappening and

why it isnecessary

Havingassistance from

the project

owners, projectinfrastructure,

trainingspecialist to

create asupportive

environment

Knowing theproject

recognises

organisationwidedependencies

and givescaution to

people processand

infrastructure

Feeling thateveryone isfocused on thesame goals and

objectives

Appreciation of

how the changewill take place

and beeffectively

communicated

Series1 2.8 5.3 4.7 3.8 4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

A x i s T i t l e


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20

From the survey questionnaire, we gathered that the employees take well to rational empiricalmode of driving change. Logic, reason and the need for change are hence important from anorganizational perspective. The employees need to know why the change is necessary to be able tocope with it and work towards the goal. Secondly, closely followed with this need is the need fororganizational alignment, focus on common goals and objectives. It is also important that the changeaddresses organization wide discrepancies and not just that of fragmented departments or groups. Acommon concern, a common caution to people process and infrastructure are hence crucial to drivechange among the employees among other concerns which have been ranked low in the list of

importance of reasons to individuals.

Being able to takeownership and

influence details of the change

Conscious that keyindividuals areinvolved in the

project

Recognise the projectis being implemented

by people with thenecessary core skillsin a clearly defined

and tracked manner

Awareness of who isultimately

responsible for theproject

Series1 6.1 5.0 7.2 5.3

0.0

1.0

2.0

3.04.0

5.0

6.0

7.0

8.0


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21

Interview with HUL Senior leader1. Why do you think Project Shakti came into being?HUL had to expand its spread. We could see the future in the rural markets. It was an areacompletely unexplored. It was the most meaningful step for us which had value proposition for boththe society and the company.

2. Can your executive group clearly articulate why the change occurred and what the future wouldlook like?

Yes. Ive seen a lot of clarity in HUL employees about this project. The clarity exists not just in thetop brass of HUL but also at the ground level. Some of the sales persons have their families in manyrural areas; theyve seen the families benefitting from this project. If I have to talk about the future,we want to bring in more technology into the rural areas. We want to associate more Shaktimaanswith us. This vision is quite pervasive in HUL.

3. Do employees appreciate the differences between past and where the company is now?HUL has brought about a huge positive change in India. And this effort is appreciated by everyone.

The brand perception has changed drastically, and people feel proud to get associated with us. Theimpact is not just about the positive intangible change, but even the sales revenue numbers aretalking.

4. Were the stakeholders identified?Yes, right when the idea was conceptualized, we very clearly identified all our external and internal

stakeholders. It was a very crucial step for us to implement the project with full preparation.

5. What processes were in place to consult with the different stakeholder groups? Did yourstakeholders know how they could contribute?

Both the internal stakeholders were always kept involved. We were addressing the Self-help groupsduring their meetings. We gave presentations on how they could benefit, in what way can theycontribute etc.

6. What methods were used to ensure that stakeholders were kept informed throughout thechange process?

The external stakeholders were informed through our BTL measures. We conducted various nukkad

nataks etc to spread awareness. Also, the SEs were in regular touch with the distributors, whoplayed a crucial role in keeping the SEs informed about the change process.

7. Were employees prepared to assume responsibility for the successful direction and execution ofthe change?

The HUL people were very enthusiastic about this project. The senior leaders provided theirsubordinates with a lot motivation and support. The positive results of the project were frequentlyhighlighted to provide the employees with a push to work towards the change.

8. Were leaders working as facilitators helping others on their team to learn how to lead?


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22

HUL believes in giving fair degree of autonomy to its managers. Besides being assignedresponsibility at an early age, managers are also allowed to slip up every now and then. The seniormanagers, however, are always there to act as guides and mentors whenever required.It is optimism and self-belief which gives these people a certain degree of resilience to persevere tillthey get outcomes.

9. Was there an approach defined or human resource principles that were adopted for the change?At Unilever we believe that business must be part of the solution. But to be so, business will have to

change. Sustainable, equitable growth is the only acceptable business model.

We call our strategy for sustainable growth our Compass strategy. It sets out a clear and compellingvision of our future, in which our brands and services reach and inspire people across the world,helping us double the size of our business whilst increasing our positive social impact. One of ourgoals is to enhance the livelihoods of millions of people as we grow our business, which is the mainobjective of Project Shakti. To make it work, efficiency of the distribution channels was crucial, andhence it became our focus area at HUL.

10. Were a range of employee supports and learning opportunities made easily available?HUL focusses on providing extensive training to employees. Nearly 70% of the learning happens on

the job, 20% through mentoring and 10% in training courses. The HUL managers made sure that thehassle free implementation would happen only if the workforce is trained and prepared enough. TheLeadership Development Tool helps plot employees with the highest potential (around 10% of theworkforce) and they are called 'listers' who have the capability to grow vertically in the organisation.Next come the sustained high performers, who account for 15% of the workforce. We also haveadditional training opportunities for non-listers, which either motivates them to improve or opt out.

11. Did the culture encourage evaluation and reflection?At the core of our activity is continuous improvement and creating the right incentives to help those

we work with to move from one level to the next. The assessment methods used to evaluateemployees are very transparent. We are strengthening our grievance mechanisms to enable morepeople to seek remedy when needed. This is part of a process to move our business from do noharm to do good and to increase our positive social impact as we grow.

12. What were the obstacles within the organization that needed to be overcome?

One of the biggest obstacles within the organization was to prepare the people to implement thischange successfully. We had to prepare the different departments to act in sync. The Investment inproject Shakti was significant reaching 15% of sales by 2004. And the cost of iShakti added another 3to 5% of sales. However, the project broke even by 2004. So the finance department of the companyhad to be prepared for every possibility. Also, we were operating in media dark areas wheretelevision advertising could never reach. It moved the marketplace frontline away from local outletswho would champion other products into the homes of families in the remotest of areas. So thiswas a challenge for the Sales and Marketing department for the company. The HR department facedthe challenge of keeping every employee motivated towards the implementation and then assessingthem fairly. Hence, the challenges and obstacles were manifold, but continuous focus andpersistence were needed to overcome them all.


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