Topic > Kraft Foods, High Performance Work Systems (HPWS)

In 1995, Kraft was created through the reorganization and merger of JL Kraft, Oscar Meyer and CW Post into a single operating company. For the reorganization, the Operations Division chose to use the change management tool High Performance Work Systems (HPWS) because they believed it was the best way to include all the necessary elements that would contribute to the vision of undisputed leadership. The HPWS tool was also appreciated for its rigorous structure and because it was a good platform for creating and communicating a coherent management philosophy. HPWS allowed them to monitor the efficiency and effectiveness of the reorganization across all their plants, old and new. Strengths of the Change Intervention Kraft Foods, Inc. approached the change initiative by conducting research and testing prior to implementation. High Performance Work Systems (HPWS) were initially implemented in three start-up factories. The HPWS method has been successful and has been adopted by new plants. HPWS helps determine factors such as total inventory, production cost, and productivity measurement. Once the HPWS method was proven effective, it was implemented in existing facilities to help achieve cost, waste and productivity control. Kraft was able to provide quality examples to existing plants of how this method improved productivity and profits. Employees were able to embrace the change plan more easily when they could actually see the possible improvements. Kraft got a bonus because employees were able to see the method work in similar situations, which helped build trust and acceptance in the change plan. This method has also empowered employees by giving them the opportunity to increase their skill levels and an opportunity... ... middle of paper ...... due to the communication tools provided through HPWS. “By consistently applying tools across operations, Kraft ensured that people and work systems were aligned” (Carter et al, p.37). In fact, most of their Champions have become so proficient in HPWS that they are now in-house consultants to the company. That level of knowledge, commitment and motivation among people will certainly allow Kraft to sustain momentum and realize future success. References Bridges, W. (2009). Managing transitions: making the most of change. Philadelphia, PA: Da Capo Press. Carter, L., Ulrich, D., & Goldsmith, M. (2005). Best practices in leadership development and organizational change: How the best companies deliver meaningful change and sustainable leadership. San Francisco, CA: Pfeiffer. Kotter, J. P. (1996). Change of leadership. Boston, MA: Harvard Business School Press.