ZISCo’s Cultural Change and Strategy Implementation

Subject: Strategy
Pages: 1
Words: 250
Reading time:
< 1 min

Before implementation of the new business strategy, the paradigm of organizational culture at ZISCo could be explained as being production-associated, managed by technology leadership, and visualizing an enhancement in financial performance via a reduction in cost.

Since ZISCo is a state-owned enterprise (SOE), before the introduction of strategic management, regarded cost savings as the only means to enhance economic performance. However, unlike other SOE’s, ZISCo is the first to introduce state-of-the-art CSP technology in China. One of the foremost issues faced by ZISCo when introducing the new strategy was to transform its organizational culture to market orientation from a production perspective. This offered a great confront for the top management as a production-associated concept was intensely embedded in the minds of employees. However, most, all the employees of ZISCo were educated, ZISCo was able to impart the cultural change to its workforce through better communication.

The focus was emphasized on transforming the organizational culture mainly on the behavior control and incentives, routines and rituals, and real-life instances communicated to employees. Employees were educated to minimize the cost of production-oriented provinces and to minimize production wastage. For improved performance, incentives were announced. This has encouraged employees to contribute value to the company and enhancing their daily operational activities.

Workers were given gifts for an increase in productivity and for the involvement in improvement in productivity and quality. Functional heads were given the power to reward employees who outperform.