Embracing Change From wielding a screwdriver to using a computer by John Cremer A world-famous brand name and reputation for quality are established over years of hard work. But in the modern business environment, as Ricoh Office Solutions can testify, constant change and innovation are needed if you want to continue to lead the pack With an over 30 percent slice of the copier market, already far outselling their nearest office equipment rivals in unit terms, and a host of management excellence awards, Ricoh Office Solutions (ROS) could have been forgiven for thinking they were set fair for the future as the 21st century approached. However, unavoidable changes were on the horizon. Factors such as deregulation, tougher pricing competition, outsourcing and the consideration of possible joint ventures dictated the need for both external and internal reviews. A new mission To ensure further growth and reinvigorate the company's outlook, a new mission was conceived - to transform ROS from a manufacturer of physical products into a fully-fledged IT organisation with an expanded customer base. The goal was to be the world's number one document solutions provider. "For winning in turbulent times you pick a different strategy [than] just surviving. You need guts, creativity and vision" Of central importance was the accelerating shift within office automation (OA) from analog- to digital-based technology. Ricoh had to prepare for entry into the image communication market, in other words making available integrated solutions which moved beyond copying to printing, scanning and network management. Meanwhile, rising customer expectations had to be met and costs kept under tight control. Borrowing from an external consultancy's research and analysing how other successful companies had adapted in earlier downturns, Ricoh redefined their business objectives. A new strategy, built on the twin pillars of achieving productivity gains and enhancing customer satisfaction, was implemented and christened "The Ricoh Way". Company-wide change "It wasn't just [about doing] the same thing with fewer people," explains ROS chief operating officer Aaron Yim. "Using productivity gain as a key strategy had to be operational, sustained and lead to value creation. We had to move forward in solution development and offer better customer services." The coming revolution was to affect all staff. Current practices were scrutinised and employees had to be ready to upgrade their skills and develop new competencies and creativity. "Technicians had to change from using a screwdriver to using a computer." As market demand switched from basic OA items to those with a much higher IT content, on an international level Ricoh also had to contend with new competitors looking to break into the sector and bringing technical innovation. In addition, with the push towards digitalisation and the paperless office concept, the scale of potential new investment required to keep pace meant that alliances with competitors had to be contemplated for the first time. Total quality management To guide themselves through the process of change, Ricoh set clear targets. Their long-term vision was to become "the winner in the 21st century" by means of a business excellence model with four principal objectives: customer retention, people management, process improvement and technology deployment. "We wanted the TQM (total quality management) concept to cascade down," says Mr Yim. "We wanted to [transform] departments so managers ran them like individual companies." Overall progress was seen not only by tracking revenue and market share growth but also through regular customer surveys. Feedback led to initiatives to anticipate and propose client needs, halve service engineers' average service call response time and upgrade the in-house customer complaint handling system. An interactive web site allowed service appointments to be set up on-line and staff-training sessions enshrined the philosophy of creating and keeping "customers for life". Higher professional qualifications at all levels were encouraged through a generous on-going education budget and managers, in particular, were taught to redefine roles by "giving people clear objectives and responsibilities". To retain their loyalty, staff were shown how new skill levels would open up broader career prospects within the company. Ricoh concurrently formed internal cross-functional focus groups to "hear the voice of the staff" and seek recommendations for further action. Incentives and rewards for improvement were revised and linked to both positive customer feedback about individuals and the attainment of pre-established key performance indicators. To gain perspective and track external developments, repeated benchmarking exercises were undertaken. These helped them to learn and absorb other organisations' best practices and inspire continuous improvement. Large-scale change is never easy. As Mr Yim emphasises, "For winning in turbulent times you pick a different strategy [than] just surviving. You need guts, creativity and vision." For Ricoh, the results can already be seen. THE RICOH WAY Productivity gains and customer satisfaction: * Aggressively build on leading market position by continuing to supply customers with the latest technology, document management and communication solutions * Respond fast to customer needs by setting up service standards and get closer to customers by decentralising service centres * As a top-class document solutions provider, invest heavily in staff training to position the company as a systems integrator * Achieve customer satisfaction and drive continuous improvements by implementing a total quality management system Taken from Career Times 28 March 2003 Your comments are welcome at [email protected]