Frost Inc.

In: Business and Management

Submitted By biplobdas
Words 624
Pages 3
Located in Grand Rapids, Michigan Frost, Inc. is a manufacturer of overhead conveyor trolleys used primarily in the auto industry. Charles Frost, President of the company, concerned about depending too heavily on one cyclical industry. Frost made several attempts to diversify the business, first into manufacturing lawn mower components and into material-handling systems. One of the main reasons being unsuccessful in these initiatives was the lack of interactions between engineers, production and sales teams. Frost decided that automating the production was the key to flexibility. To fulfill this objective Frost formed Amprotech to pursue three business goals: contract consulting work, contract with venture capital firms to improve resale value and acquisition of smaller companies. Although there was a guarantee from Frost that there won’t be any layoffs, the employees were not happy and creating roadblock to transformation. Frost has the challenge to motivate people and change organizational culture.
Diagnosing organizational and planning change issue that Frost was facing can be conceptualized into ‘The McKinsey 7-S Model’. Frosts’ overall approach focused on ‘strategy’, ‘structure’ and ‘systems’. One of the most important pieces of the puzzle, ‘human resource component’ of McKinsey’s Model was missing in his initiative. What at first glance appeared to be a hardware-oriented strategy turned out to be an exercise in human resource management! Frost’s ‘Strategy’ was to innovate and make the system more efficient and minimize the cost. Specialized ‘flexible automation’ and formalization of ‘systems’ were in place. However, when Frost wanted to communicate it to the employees, they were not on-side. As we can see in McKinsey’s Model without creating ‘shared value’ a successful change management process cannot be implemented. To achieve this objective he should have…...

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