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Universidad de deusto |
Strategic Change Process |
Case 3 LABIEN |
11/23/2010 |

Repot By: Emily Witham, Hannah Keirl, Elisabeth Vergara, Brittani Gales, Teresa Azurza, Heather Mahmood and Carla Becker |

1. Which is the main focus of the change process launched asa consequence of the implementation of the 1998-2002 strategic plan? Which are the specific goals this change process is aimed at?
Change Process from the 1998-2002 Strategic plan
In the course of the 1990’s the strategic context focused on ensuring a greater market orientation and adaptation to advance the technological transformation that had set the tone of the previous decade. From1998-2002, a strategic plan was launched to change the way the LABEIN was achieving their objectives. Their main challenge was having management and researchers “commit to business results”. Thus, LABEIN began focusing on the priorities of the company and focused on a new strategy called the “Competence Model”. The model was centred on the definition of the competence, the role of inventory, the role ofanalysis and the results and design of action plans.
By 2000, the management by competences project was abandoned due to its high complexity and the great deal of effort it required by the group that was carrying it out. The designing of the process did not encourage the transformation or development of the people. The majority of the effort was being consumed by procedural aspects, which onlyembodied an objective perspective and not the personal development of the people. After losing supporters on the management board and having legitimate questions raised by parties that were not involved, LABEIN had to act promptly to change their strategy.
Main Objectives of the Change Process
From 2001 to 2002, the emphasis shifted on the development of conversational skills. The aim of theaction was on learning to converse better and establishing basic common distinction in the use of language in conversations. LABEIN realized that in order to learn how to converse better, it was essential to learn how to listen the customer properly as well as listen to each other properly. To this end, contexts were created to improve conversational skills, set out the perspectives of groupdynamics, and enhance individual leadership qualities through coaching. Conversation would be a value creation paradigm that would hopefully replace the “production chain” of the industrial era.

2. Why the approach adopted in this change process is finally rejected? Which is the new orientation given to it from 2001?
Change process rejection
In 1998, ideally, LABIEN wanted its management andresearcher’s team to be dedicated to “committing to business,” so they created a Strategic Plan entitled “Competence Model.” This model included a series of priorities, or duties, that the users should follow. However, in 2000, shortly after it was put in motion, it was deemed unsuccessful and as a result abandoned.
There were several reasons for why this change process was rejected by both thedirectors and business units, and they include the following:
* They felt the model was rather complex for the definition it was expected to provide. The message intended to be shared was of self-development, and depending on the group of individuals, this was not always understood. Comprehending this model required more effort than intended without the complementary benefits to accompany.
* Itwas also thought that the model served for very few subsequent uses, considering its only intended use was of definition; and as far as definition goes, the model did not encourage personal transformation or self-development, only development as a result of training.
New Process in 2001
The directors and business units believed a possible reason this model failed to succeed was because its...
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