Leading the Change: Context of a Manufacturing Company

Concept of change leadership revolves around a quoted public porcelain tableware company in Sri Lanka, which is having a 34-year history in making quality tableware products to the export market. Company was set up with the assistance of a Japanese company and influence of the government of Sri Lanka and had a rich, and deep routed culture embedded into the village. Despite the quality of product and global recognition, the company was malfunctioning: export share dropped, cost of manufacturing shot up, export prices dwindled, dynamism and initiatives of people eroded. Company went through various ownership and management changes, and was in financial crisis in a number of occasions. Lack of business focus and non-sensible investment decisions by the top management were pointed out as reasons for the downfall by employees of the company. This case was reviewed in the context of transformational leadership, change management and management innovation point of view along with practical aspects experienced by the CEO who brought change leadership to the organization. In doing so, review of related theory and literature was carried out to substantiate the change initiatives. It was found, transformational leadership which envision and embrace change will always have positive impact whilst change procedure, without an effective leadership is nonexistent. The necessity and the urgency required in a process and belief in team work are ingredients of transformation. Once the transformation is progressing, sustainability or retention of the systems, procedures and behaviors are the challenges in execution of the transformation faces by the leader who has to take control.