Change Management via Data Analytics for a successful Lean Transformation of Public Companies

Authors

  • Michail Angelopoulos University of Piraeus
  • Yannis Pollalis

DOI:

https://doi.org/10.14738/abr.912.11351

Keywords:

Change Management, Lean Management, Lean Transformation

Abstract

 Data analytics is one of the biggest "revolutions" that have taken place in recent years at the business level, enabling many companies to go through a digital transformation, reducing risks and costs and making them more Agile and Lean. Data analytics is a process with heavy business relevance, companies are analyzing data - numbers mainly - and trying to determine decisions for the future based on it.

Hence, severe pressure is being posed on public companies to dwindle their operational costs. A method contributing to this direction is the Lean philosophy, as through proper strategies, with its practices and tools leads to substantial resources saving. Each company possesses a unique way of integrating the principles and practices of Lean Management. In other words, there is no specific methodology, which is applicable by every business worldwide. Explicit condition for the success of Lean Management is the presence of the Effective Change Management.

Data analysis is achieved by using the quantitative research method, which highlights the existence of influence as a "moderator effect" of the strategy followed by an effective change management compared to the aforementioned critical success factors (CSFs) was examined by performing interaction analysis in "IBM SPSS Amos 21, so that the parsimonious transformation is feasible. The quantitative approach is based on sample research with standardized questionnaire actualized at the two biggest Greek companies of public interest and utility purpose. The data from the participants’ responses ere inserted on a data basis «SPSS Version 23 for Windows».

The findings of the research showed that human and organizational factors determine the greatest part of the effective integration of the Lean Management in public companies.

The study examined, the influence of an Effective Change Management on important CSFs for a successful integration Lean Management (Lean Transformation) in Greek public companies. Also contributes to fill a research gap on the impact of Lean Management in public companies, since the vast majority of research work is focused on the private sector.

Author Biography

Michail Angelopoulos, University of Piraeus

Dr. Michail Angelopoulos since 2014 is Head of Planning & Financial Section at Research Center of Public Power Corporation SA (GR)The previous position in the Enterprise was Head of Research Section from 2008 – 2014. Prior was Chairman of the Board at Greek Observatory for the Information Society, and President at Prefecture Enterprise of Athens. Michail Angelopoulos was adjunct professor for operational research at Hellenic Air Force Academy, and for several years was teaching computer programming at General Mathematical Department of Technological Education Institute of Piraeus (GR). He holds a Degree in Mathematics and a MSc in Computer Science & Operational Research from University of Athens (GR). Additionally, he holds a MSc in Manufacturing: Management & Technology from The Open University (UK), a MBA from Hellenic Open University (GR), a Professional Certificate of Data Science for Executives from Columbia University (USA), and a Project Management Professional (PMP) Certificate from PMI Institute (USA). Michail Angelopoulos since 2020 is Doctor of Philosophy at University of Piraeus, Department of Economics (GR). Publications: 1. Angelopoulos, Michail and Pollalis, Yannis (2020). “Use of open data as a tool for successful lean management in public services: evidence from Greece”, Journal of Economics and Business (SPOUDAI), Vol.1-2 (8) 2. Grammatikis, P.R., Sarigiannidis, P., Iturbe, E., Rios. E., Sarigiannidis, A., Ioannidis, D., Machamint, V., Angelopoulos, M., Ramos F. (2020). “Secure and Private Smart Grid: The Spear Architecture”, Paper Conference, 6th IEEE International Conference on Network Softwarization (NetSoft2020), 2nd International Workshop on Cyber-Security Threats, Trust and Privacy Management in Software-defined and Virtualized Infrastructures (SecSoft), Ghent, Belgium. 3. Angelopoulos, Michail and Pollalis, Yannis (2019).”Critical Success Factors of Lean Management in Public Sector: Evidence from Greece”, International Journal of Management and Applied Science (IJMAS), Volume-5, Issue-10, pp12-18, DOI: IJMAS-IRAJ-DOI-16454 4. Angelopoulos, M.K., Kontakou, C.A. Pollalis, Y.A. (2019). “Lean management through digital transformation: Challenges and opportunities for the energy and public utilities industry”. Journal of Advanced Research in Management, Volume X, Winter, 2(20):57-69. DOI:10.14505/jarm.v10.2(20).01 5. Efstathopoulos, G, Grammatikis, P.R., Sarigiannidis, P., Argyriou, V., Sarigiannidis, A., Angelopoulos M. K. (2019). “Operational Data Based Intrusion Detection System for Smart Grid”, Paper Conference (Best Award), IEEE 24th International Workshop on Computer Aided Modeling and Design of Commmunication Links and Networks (CAMAD), Cyprus. Publisher:IEEE, DOI:10.1109/CAMAD.2019.8858503 6. Angelopoulos, Michail and Pollalis, Yannis (2017). “The Activity Based Costing application as a tool in supporting a Greek Public Company’s transition to a Lean Company”,Munich Personal RePEc Archive, Germany. 7. Angelopoulos, Michail and Pollalis, Yannis (2017).“Using KPIs and ABC costing system results during a Lean transformation to a Greek Public Company”, Munich Personal RePEc Archive, Germany. 8. Μ. P. Saltouros, M.Theologou, M. K. Angelopoulos, Ch. S. Ricoudis (1999), “An Efficient Evolutionary Algorithm for (Near)-Optimal Steiner Trees Calculation: an Approach to Routing of Multipoint Connections”, in Proceeding of 3rd International Conference on Computational Intelligence and Multimedia Applications (3rd ICCIMA ’99), New Delhi, India. 9. M. K Angelopoulos (1996). "Competitive European Programs The characteristics of a successful proposal", Conference Technology and Automation, Conference proceedings pp. 192-195, TEI PIRAEUS, 9-10 May 1996. Projects: Chairman of the Research Programs Committee of the Research & Standards Testing Center (June 2016 - today) Financial Signatory, Coordinator, Administrator and Member of the Research Teams of the approved European programs of PPC SA in the framework of the action Horizon 2020 of the European Union: 1. FTI Pilot-01- 2016 - Fast Track to Innovation Pilot An ultrasonic non-destructive testing system for detection and quantification of early stage subsurface creep damage in the thermal power generation industry – CREEPUT (PPC SA Budget: 866.722,50 €) 2. DS-07-2017 - Digital Security Focus Area Secure and PrivatE smart gRid– SPEAR (PPC SA Budget: 196.250,00 €) 3. SU-DS04-2018-2020 - Digital Security SDN–microgridre Silient Electrical eNergy SystEm-SDN-MicroSENSE ( PPC SA Budget: 258.750,00€) 4. Electrical Power System’s Shield against complex incidents and extensive cyber and privacy attacks - PHOENIX ( PPC SA Budget: 304.250,00 €) 5. LC-SC3-EC-4-2020 - Building A Low-Carbon, Climate Resilient Future: Secure, Clean And Efficient Energy bEhaVioral Insgihts anD Effective eNergy policy acTions – EVIDENT ( PPC SA Budget: 169.375,00 €) 6. ICT-56-2020 - Information and Communication Technologies nexT gEneRation sMart INterconnectEd ioT - TERMINET ( PPC SA Budget: 171.875,00€) Coordinator, Manager and Member of the Research Teams of the approved research programs of PPC SA in the framework of the action "RESEARCH - CREATE - INNOVATE" and the action "Bilateral Greek-German Cooperation" of the GSRT (NSRF): 1. Bioconversion of lignite power plant emissions to fuels and fine chemicals– BIOMEK ( PPC SA Budget: 490.010,00 €) 2. Efficient conversion of Greek Lignite and agricultural residues to electricity through catalyst-aided integrated gasification/SOFC and Direct Carbon Fuel Cell processes– LIGBIO GASOFC ( PPC SA Budget: 214.000,00 €) 3. Scale up of Electrochemically Promoted Catalytic Hydrogenation of CO2 for fuel production– CO2 TO FUELS ( PPC SA Budget: 270.000,00 €) 4. Injection locked (mutually coupled) Mid-infrared Interband Cascade Laser based gas sensor– ILLIAS (PPC SA Budget: 200.000,00 €) 5. Innovative protective coatings for energy and resource efficiency applications in power plants– CREATION ( PPC SA Budget: 40.000,00 €) 6. smArt mUlTi drOne insPection System for Critical EnergY Infrastructures– AUTOPSY (PPC SA Budget: 193.000,00 €)

References

. Carter, B., Danford, A., Howcroft, D., Richardson, H., Smith, A. & Taylor, P. (2011). ‘All they lack is a chain’: lean and the new performance management in the British civil service. New Technology, Work and Employment, 26(2), 83-97.

. Salhieh, L., & Abdallah, A. A. (2019). A two-way causal chain between lean management practices and lean values. International Journal of Productivity and Performance Management, 68(5), 997-1016.

. Asnan, R., Nordin, N. & Othman, S. N. (2016), “Success factors of lean management implementation in public service organization”, Journal of Technology and Operations Management, 11(2), 83-97.

. Gebre, B., Hallman, P., Minukas, M., & O’Brien, B. (2012). Transforming government performance through lean management. McKensey Center for Government.

. Juliani, F. & de-Oliveira, O. J. D. (2017), “Synergies between critical success factors of Lean Six Sigma and public values”, Total Quality Management & Business Excellence, 1-15.

. de Almeida, J. P. L., Galina, S. V. R., Grande, M. M., & Brum, D. G. (2017). Lean thinking: planning and implementation in the public sector. International Journal of Lean Six Sigma, 8(4), 390-410.

. Psomas, E. (2016). “The underlying factorial structure and significance of the Six Sigma difficulties and critical success factors: The Greek case”, The TQM Journal, 28(4), 530-546.

. Psychogios, A. G., Atanasovski, J. & Tsironis, L. K. (2012), “Lean Six Sigma in a service context: a multi-factor application approach in the telecommunications industry”, International Journal of Quality & Reliability Management, 29(1), 122-139.

. Salonitis, K., & Tsinopoulos, C. (2016). Drivers and barriers of lean implementation in the Greek manufacturing sector. Procedia CIRP, 57, 189-194.

. Arlbjørn, S. J., Freytag, P. V. & de Haas, H. (2011), “Service supply chain management: A survey of lean application in the municipal sector”, International Journal of Physical Distribution & Logistics Management, 41(3), 277-295.

. Jones, J. & Powers, E. (2004), “Change Management: The Three Elements of Transformation”, Strategy and Business, 37, 101-104.

. Burnes, B. (1996), “No such thing as . . . a “one best way” to manage organizational change”, Management Decision, 34(10), 11–18.

. Hayes, J. (2018). The theory and practice of change management. 5th edition, Macmillian International.

. Oreg, S., Vakola, M. & Armenakis, A. (2011), “Change Recipients’ Reactions to Organizational Change: A 60-Year Review of Quantitative Studies”, Journal of Applied Behavioral Science, 47(4), 461-524.

. Schaffer, R. H., & Thomson, H. A. (1992). Successful change programmes begin with results. Harvard Business Review, 70(1): 80–89.

. Langstrand, J. & Langstrand, J. (2016), “The missing link in systems thinking: The impact of infrastructure on organizational change”, International Journal of Quality and Service Sciences, 8(2), 197-208.

. Socconini, L., & Reato C. (2019). Lean Six Sigma Management System For Leaders. 1st edition 2019, ICL Marge, SL

. Antony, J., Rodgers, B., & Gijo, E. V. (2016). “Can Lean Six Sigma make UK public sector organizations more efficient and effective?”, International Journal of Productivity and Performance Management, 65(7), 995-1002.

. Project Management Institute. (2013a) Managing Change in Organizations: A Practice Guide.

. Project Management Institute. (2013c). The Standard for Portfolio Management – Third Edition. Newtown Square, PA: PMI.

. Project Management Institute. (2013d). The Standard for Program Management – Third Edition. Newtown Square, PA: PMI.

. Project Management Institute. (2013b). Organizational Project Management Maturity Model –Third Edition. Newtown Square, PA: PMI.

. Finney, S. & Corbett, M. (2007), “ERP implementation: a compilation and analysis of critical success factors”, Business Process Management Journal, 13(3), 329-347.

. Lande, M., Shrivastava, R. L. & Seth, D. (2016), “Critical success factors for Lean Six Sigma in SMEs (small and medium enterprises)”, The TQM Journal, 28(4), 613-635.

. Manville, G., Greatbanks, R., Krishnasamy, R. & Parker, D. W. (2012), “Critical success factors for Lean Six Sigma programmes: a view from middle management”, International Journal of Quality & Reliability Management, 29(1), 7-20.

. Taylor, G. R. (2005). Integrating quantitative and qualitative methods in research. University Press of America.

. Saunders, M. N., Lewis, P. & Thornhill, A. (2009), Research methods for business students, Pearson Education.

. Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1-4.

. Zheng, M., Claassen, J., & Kleinberg, S. (2018). Automated Identification of Causal Moderators in Time-Series Data. Proceedings of machine learning research, 92, 4-15.

. Nordin, N., Deros, B. M., Wahab, D. A., & Rahman, M. N. A. (2012). A framework for organisational change management in lean manufacturing implementation. International Journal of Services and Operations Management, 12(1): 101-117.

. Bhasin, S. (2012). An appropriate change strategy for lean success. Management Decision, 50(3), 439-458.

. Pearce, A., & Pons, D. (2019). Advancing lean management: The missing quantitative approach. Operations Research Perspectives, 6: 1-14.

. Camuffo, A., & Gerli, F. (2018). Modeling management behaviors in lean production environments. International Journal of Operations & Production Management, 38(2): 403-423.

. van Assen, M. F. (2018). Exploring the impact of higher management’s leadership styles on lean management. Total Quality Management & Business Excellence, 29(11-12): 1312-1341.

. Antony, J., Krishan, N., Cullen, D. & Kumar, M. (2012), “Lean Six Sigma for higher education institutions (HEIs) Challenges, barriers, success factors, tools/techniques”, International Journal of Productivity and Performance Management, 61(8), 940-948.

. Maditinos, D., Chatzoudes, D. & Tsairidis, C. (2011), “Factors affecting ERP system implementation effectiveness”, Journal of Enterprise information management, 25(1), 60-78.

. Cameron, E, & Green, M (2020). Making Sense of Change Management. 5th edition Kogan Page.

. Lee, K.H. (2009), “Why and how to adopt green management into business organizations?: the case study of Korean SMEs in manufacturing industry”, Management Decision, 47(7), 1101–1121.

. Hines, P., Found, P., Griffiths, G. & Harrison, R. (2008), Staying Lean – Thriving Not Just Surviving, London: LERC.

. Testani, M. V., & Ramakrishnan, S. (2012). Lean leadership readiness for change: A methodology for lean change readiness and continuous improvement. In IIE Annual Conference. Proceedings (p. 1). Institute of Industrial and Systems Engineers (IISE).

. Atkinson, P. (2010), “Lean is a cultural issue”, Management Services, 54(2), 35-41.

. Taberimasbbadi, M., & Ribas, I. (2018). A Model to align the organizational culture to Lean. Journal of Industrial Engineering & Management, 11(2).

. Sreedharan, V. R., & Sunder, M. V. (2018). A novel approach to lean six sigma project management: a conceptual framework and empirical application. Production Planning & Control, 29(11), 895-907.

. Gaiardelli, P., Resta, B., & Dotti, S. (2019). Exploring the role of human factors in lean management. International Journal of Lean Six Sigma. 10(1): 339-366.

Downloads

Published

2021-12-12

How to Cite

Angelopoulos, M., & Pollalis, Y. (2021). Change Management via Data Analytics for a successful Lean Transformation of Public Companies. Archives of Business Research, 9(12), 47–64. https://doi.org/10.14738/abr.912.11351