Case Work Nestle

1. Was it appropriate to implement the BEST project at Nestle USA?

For Nestle, it was appropriate to implement the BEST project aimed to introduce new methods of communication and service delivery.  The need for the BEST was cre­ated by lack of skills and ‘old’ technology, lack of cooperation between division and size of organization, and new methods of doing business worldwide. Only in this case, Nestlé could compete on the global scale. The BEST project would help to disseminate knowledge and help employees to cope with new complicated tasks. The problems, faced by Nestle, were caused by resistance to change and lack of technical skills, ambitious timeline and lack of management support. The company did not focus on employee’s motivation and work design programs pursuing their own goals and development strategies. Most of the employees were afraid of changes they could not cope with. It is possible to say that it would be better to implement (and test) the BEST project in one of the divisions, and then, apply it to the entire organization.

 2. In what ways do you think that nestle USA realized saving of $325 million?

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In spite of the fact that the BEST project failed and cost Nestle $210 millions it helped to improve communication based on technology and innovative systems as a part of the BEST project. Without IT change, Nestle would not be able to compete with national companies and respond to changing economic and social conditions. New technology helped Nestlé to save time and improve information interchange. Using the ‘old methods’ of doing business Nestle would not be able to compete on the national (and global) scale. The BEST project provided global connectivity and served as a foundation for national systems. Also, it linked the supplier and customer logistics into one process. You may also be interested in BCG matrix of NESTLE

3. Why is this story is more about change management that software implementation?

This story is about change management because it describes improvements and restructuring of the old system. Change process means regular repairs and maintenance, choice of introducing new technology or methods of work. The aim of technology was to improve current activities without “changing the ways [they] did business”. Nestle planned organizational change caused by the need to respond to new challenges and the need to cope with potential problems (poor communication and inefficient data sharing).

References

1.      Senior, Barbara. (2001). Organizational Change, Capstone Publishing.

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