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Harley davidson: Trajectory of a Transformation

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Joanna Academics

on 19 March 2013

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Transcript of Harley davidson: Trajectory of a Transformation

Harley Davidson:
The Trajectory of a Transformation 1903-1968 1969-1981 2010-Present 1982-1994 1995-2009 Kelsey Beach, Kim Bravar, Jackie Connell, Angira Draggon, Brittany O’Dell, Peter Sage, and Joanna Victoria. Change Management Managers are fond of saying that "change is the only constant" in their work. Either we manage change or we are managed by change. Managing change is defined as the planning and organizing of sequence of activities (staff meetings, informal conferences, memos, retreats, etc.), that promote administrative and staff interaction which move towards desirable changes in policies, programs, organizational culture, physical environment, procedures, or relationships. This presentation will identify assumptions, conditions, and dimensions of making or facilitating change in the Harley-Davidson Motorcycle Company. MANAGING CHANGE (1903-1968) Joanna Victoria
(1969-1981) Kim Bravar
(1982-1994) Brittany O’Dell
(1995-2009) Angira Draggon
(2009-Present) Kelsey Beach
Conclusion Jackie Connell THE HISTORY OF THE HARLEY-DAVIDSON
MOTORCYCLE COMPANY HARLEY-DAVIDSON: CHANGE ANALYSIS Describe the organizational changes that occurred. Discuss the main internal and external drivers that made the change necessary and outline the key management objectives in making the change. 
Demonstrate how managers planned the actions required to achieve their objectives. Demonstrate what additional techniques might have been used.
Evaluate how effectively the process of implementing the change was managed. Include an assessment of how appropriately was any resistance to change managed?
Assess to what extent the change was successful in meeting its objectives. Identify and justify the need for any further related changes. HARLEY-DAVIDSON: 1903 - 1968 World War II HARLEY-DAVIDSON: 1903 - 1968 Largest Manufacturer in the world HARLEY-DAVIDSON: 1903 - 1968 World War I HARLEY-DAVIDSON: 1903 - 1968 First Harley Davidson Production Circle Organization Harley Davidson 1982 – 1994 Women's Bike Week
Veterans
Bike Rallies The Brand Building a Community Restricting
New vision
Hands on executives Retail 2020 Breaking Down the Barriers Keith Wandell

“We fulfill dreams inspired by the many roads of the world by providing remarkable motorcycles and extraordinary customer experiences. We fuel the passion for freedom in our customers to express their own individuality.” New Management Restructuring at York
“The York Transformation isn’t just about streamlining a facility, its about
empowering people and building a sustainable world-class culture”
Ed Magee/General Manager, York Vehicle Operations Tension between HD Managers and AMF
AMF began looking for a buyer
Beals and other HD managers orchestrated a highly-leveraged buyout
Authoritarian leadership style 1980 Buy Back Ameracchi
Joint venture
Smaller, lower priced motorcycles
Dealers steered customers to larger, higher-margin motorcycles
Marketing
Changed advertising tactics
Alienated traditional customers
Competition
Honda Goldwing, 1000cc motorcycle It Gets Worse AMF – friendly takeover
Rapidly expanded capacity
Streamlined production
Poor Quality Resulted
AMF added new features rather than reevaluate their approach American Machine and Foundry Declining Customer Base
Market Share Falling
Behind the curve on product design and development
Lacked the resources
Went public after 60 years of private ownership 1969 State of the Business Conclusion Turnaround

Close to Foreclosure by Citicorp
Restructured Equity & Debt

1986 - Went Public
Increased Shares
Only Major US Manufacturer of Motorcycles
Increased Profit & Competitiveness Led to Import Tariff Removal
Change Between 1987 & 1991 Came Out of Key Concepts in Mission Statement HARLEY-DAVIDSON: 1982 - 1994 Techniques for Change

Early 80’s – Command & Control Leadership
Layoffs & Salary Freezes
Failed Attempts at Product Diversification

Productivity Improvements
Employee Involvement
Just-in-Time Materials Delivery
Statistical Process Controls
Quality Over Growth

Harley Owner’s Group (H.O.G.) HARLEY-DAVIDSON: 1982 - 1994 Organizational Changes

External: Resurgence of Interest
Market Boom
High Tariff on Imported Heavyweight Motorcycles

Internal: Leadership Changes
Richard F. Teerlink
Lee Ozley
Jeff Bleustein HARLEY-DAVIDSON: 1982 - 1994 Causes and needs for change
Forces for change
Stakeholders and their agendas
How organization led the change initiative and results 1995 - HD introduces the first production bike with Fuel Injection
1995 - Learning Center opens
1997 - Bluestein becomes the new HD President
1998 - The first HD plant outside the US opens in Brazil
2009 - Keith Wendell becomes the new CEO
1998 - HD buys out Buell
2002 - The first HD liquid cooled engine introduced, the V-Rod
2003 - Harley turns 100!
2006 - The HD stock ticker changes from HDI to HOG Highlights Catering To Ever-changing demographics
Rider’s Edge Academy
Custom Vehicle Operations Department
HD Authorized Rentals Program For the Customer Management Committed to Employee Improvement Program
Training in Problem Solving and Quality Control Techniques
Making Employees Feel Welcome to Participate
Showing Faith in Well Trained Employees
Encouraging Teamwork Leadership Circles - Principles Teerlink and Bleustein Meet with Union Presidents from IAM (International Association of Machinists) and PACE (Paper, Allied-Industrial, Chemical and Energy Workers) 
Unions are Valued Institutions
Leadership is Shared
Financial Rewards Shared With All
2007 Strike Partnering – Unions Harley Davidson 1995-2009 Create Demand – Marketing, Sales, Customer Service, Design, Owner’s Groups
Produce Products – Engineering, Manufacturing, Design, Cost, Quality
Provide Support – Finance, Human Resources, Legal, Development
Full transcript