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Contents
Scope and Context .................................................................................................................................. 2
The scope of change ........................................................................................................................... 2
The context of Change ........................................................................................................................ 2
Research Methodology ........................................................................................................................... 3
Literature Review .................................................................................................................................... 3
Organisational Readiness ........................................................................................................................ 6
Weidbords Six Box Model of Organisational Readiness .................................................................... 6
Making the Change ................................................................................................................................. 7
Kurt Lewins Force Field Analysis ........................................................................................................ 7
What the organization either should have done differently or what they should do next .................. 10
Annexures ............................................................................................................................................. 13
Results of the Questionnaire: ........................................................................................................... 13
Interview with HUL Senior leader ..................................................................................................... 21
References ............................................................................................................................................ 23


















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Scope and Context
The scope of change
The end of 1990s was the time when a lot of
self-help groups for women began springing
up across India. These groups had a purpose
of providing financial support to women by
borrowing money from each other to avoid
excessive demands of moneylenders. These
groups were also meant to provide a safe
space to women where they can go when
they become victims of alcohol induced
violence in the household. The HUL managers
were keenly observing this trend and wanted
to give a chance to these women to be self-
dependent and capable of earning a livelihood
for themselves without hard physical labor.
Some presentations were prepared by the
HUL managers targeted to these self-help
group meetings and invited women, to
become direct-to-consumer sales distributors.

This project entailed a complete revamping of
the companys sales and distribution
strategies. The focus of the resource and
capital allocation needed to be changed. The
attributes of the change helps us to classify it
as a transformational change. The future
state of this particular project had to be
radically different from the current state and
this involved change in the existing mindsets
and behaviours, strategies, technologies,
processes and procedures. Previously
operating as a conventional private sector
company, HUL had to become an organization
that required people to share information
across strongly held boundaries and side by
side put the needs of the organization and
society over their own agendas. The product
size forms one of the most critical factors to
evaluate the magnitude of the change. This
impacted the companys marketing strategies,
ATL and BTL measures and different ways
through which the company promoted its
products. The product sachets were never
distributed by HUL before the inception of
Project Shakti. Another notable feature of this
project is that the strategies of implementing
change were emerging with time. New
technological skills were imparted to the SEs
as the need was arising. The programme was
extended in 2010 to include Shaktimaans
who are typically the husbands or brothers of
the Shakti ammas. Shaktimaans complement
the Shakti ammas. They sell the companys
products on bicycles to surrounding villages,
covering a larger area than Shakti ammas can
do on foot. There are over 50,000
Shaktimaans across India. Each shaktimaan
covers around 3 villages in his own villages
vicinity which is a larger area than a woman,
Shakti amma, can cover on foot.
The context of Change
HUL had been planning of expanding its reach
in rural India. The choice that it had was to
adopt the traditional distribution model,
which wouldve worked well for the cash
registers. However, HUL came up with a
unique micro-entrepreneurship model which
aimed at integration of business interests with
the societal needs, thereby sticking to its
Doing Well by Doing Good belief.
HUL has always supported the idea that the
private sector plays a crucial role in creating
solutions to social challenges with the help of
innovative strategies. The strategies should be
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such that they meet both the social and the
business objectives. Promoting this micro-
enterprise model, Project Shakti not just
made a great business sense but also had the
potential to have a deep social impact. The
underlying benefits for the rural community
were:
Sustainable investment opportunity for village
community/rural women.
Increase in the household income of poor
families of Shakti Entrepreneurs (SEs).
Empowerment to rural women.
Access to health and hygiene products and
hence better living standards.
Underprivileged women get the basic
business management training. The Shakti
Entrepreneurs (SEs) are sold the products at
additional discounts by HUL, hence allowing
them to raise incomes. This model results in
doubling of the SEs average household
income. HUL also invests in SEs training. The
company provides them with sales tools as
well like bicycles, mobiles etc.

In general, a woman having a poor economic
background in a particular rural area is
selected as SE, and is referred as Shakti
Amma. The rural distributor provides her
with stocks. Once she is trained by the
company, the SE starts selling the goods
directly to the retailers and consumers in the
village.
The incomes of SEs are significantly higher
than the per capita income of their respective
states. The ERP solution implemented by HUL
in 2013 in Project Shakti has enabled SEs to
manage inventory, take and bill orders, and
successfully drive distribution efficiencies.

Research Methodology
To gain a better understanding about the
Change Management in an organization we
started off by studying various research
papers in international journals and
shortlisted eight most relevant ones for this
paper. We then tried to deepen our
conceptual understanding by reading up on
Kurt Lewins and Weidbords findings on
Change management and their implications
on our study. Post this; we gathered data over
telephonic interview in the corporate office of
Hindustan Unilever Limited. We also
conducted a questionnaire survey with the
existing employees to understand how the
change was brought about in the company.
Literature Review
The Tyranny of Change: Organizational
Development Revisited
McKendall suggests that planned
organizational change, commonly known as
organizational development, induces
compliance and conformity in organizational
members which increases the power of
management. These consequences occur
because organizational development efforts
create uncertainty, interfere with the informal
organization, reinforce the position of
management, and further entrench
management purposes. These consequences
occur regardless of the intentions of
management and regardless of whether the
goals of the organizational development
intervention were achieved. Instead of
examining these consequences, practitioners
and theorists have engaged in self-deception
and depoliticized the practice of induced
organizational change by creating a field
known as Organizational Development.

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The Change Masters: Organizational
Development in a State Archives
Hefner in this article suggests that the
management technique of organizational
development be considered as an optimal
alternative to more traditional management
styles, particularly autocratic management
styles. The author discusses organizational
development in the context of an archival
institution which, for a period of time,
implemented the organizational development
theory. The article concludes that unless the
managers and individuals of an institution are
truly committed to a progressive and humanly
responsive management approach that values
the processes of the organization and the
development of the employee, archival
institutions may remain mired in their own
management deficiencies, thereby affecting
the ultimate goal of an organizationto
create an environment that is responsive both
to the goals of the profession and the needs
of the individual.

Cycles of Organizational Change
Mintzberg and Westley contend that
development of a comprehensive framework
of change by organizations rests on various
cycles: concentric to represent the contents
and levels of change, circumferential to
represent the means and processes of change,
tangential to represent the episodes and
stages of change, and spiraling to represent
the sequences and patterns of change. This
framework is fleshed out in conclusion by
developing three models of change
experienced by major world religions, labeled
enclaving, cloning, and uprooting.


Change Management In The Strategy
Implementation Process
Markiewicz in this article presents a
discussion on the strategic management
process paying special attention to issues
relating to strategy implementation. The
selected paradigms and models of strategic
management were discussed. Concentrating
on an organic approach, the meaning of
change management in the process of
strategy implementation was presented.
Implementation of the strategy has been
treated as the relocation of model of a dead
system that is strategic plan, into a live
system, that is, an organization achieving its
defined strategic goals. It requires not only
changes in the static organizational structure,
but, above all, changes in the methods of
approach to employees functioning in the
organization. These changes require
creativity, innovation and perception of an
organization in the categories of processes
implementation.

Achieving readiness for organisational
change
Smith focused on the importance of achieving
change readiness, ways in which this may be
achieved and means to assess organisational
readiness for change. He found that achieving
and sustaining effective organisational change
and renewal are an imperative. The people in
organisations can be either the key to
achieving effective change, or the biggest
obstacles to success. He highlighted how
managers attempting to achieve
organisational change will be well served by
paying attention to the need to create
readiness for change this at both the
individual employee and wholeof
organisation level and the ways in which this
may be achieved.
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Resistance to organisational change: the role
of defence mechanisms
Bovey and Hede observed that hitherto
research on resistance to organisational
change has focused more on organisational
issues rather than individual psychological
factors. They investigated the role of both
adaptive and maladaptive defence
mechanisms in individual resistance. Through
surveys conducted in nine organisations
undergoing major change and responses were
obtained from 615 employees. The results
indicate that five maladaptive defence
mechanisms are positively correlated with
behavioural intention to resist change,
namely, projection, acting out, isolation of
affect, dissociation and denial. The adaptive
defence mechanism of humour was found to
be negatively correlated with resistance
intention.

The effects of organisational change on
employee psychological attachment: An
exploratory study
Employee commitment is a concept which has
attracted much attention in recent years.
Research has focused on relationships
between commitment and various facets of
individual performance and on the
psychological basis of the commitment itself.
Bennet and Durkin studied the pattern of
employee commitment in an exploratory
study of employees of a large retail bank
which is undergoing a process of both
structural and cultural change. Three bases of
employee commitment internalised
commitment, identification commitment and
compliance commitment were profiled
against the pattern of commitment which the
literature suggests will be found across
various employee grades. Evidence from the
exploratory research is presented which
suggests that major change may result in the
(at least partial) dissolution of internalised
commitment on the part of employees,
coupled with a corresponding increase in
compliance commitment.

Career development in a changing
environment
Laser studied the role that external
consultants play when it comes to helping
organisations solve problems. The
intervention described was in response to the
turmoil occurring within a large
telecommunications firm following major
organisational restructuring. To prevent a
largescale loss of highpotential managers
and longterm supervisors, a firm of
consultants was called in. A workshop was
designed which would permit participants to
identify their strengths as well as their
developmental needs.

The role of communication in organisational
change
Elving sought to provide a conceptual
framework for the study of communication
during organisational change. Although there
is an enduring interest in studying (internal)
communication during organisational change,
there is still little or no empirical research on
the topic. In this conceptual paper a
framework is presented on how to study
communication during organisational change
and how communication could prevent
resistance to change. The framework leads to
six propositions in which aspects of
communication, such as information, feelings
of belonging to a community, and feelings of
uncertainty, have an influence on resistance
to change, which will affect the effectiveness
of the change effort. A distinction between
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the informative function of communication
and communication as a means to create a
community was made. In the suggested
model communication has an effect not only
on readiness for change, but also on
uncertainty.
Organisational Readiness
Weidbords Six Box Model of
Organisational Readiness


Purpose
Hindustan Unilevers vision is to add vitality to
life by integrating the social, economical and
environmental considerations into its
businesses and brands. Project Shakti took
these factors in to consideration and created
a micro-entrepreneurship approach that met
both business and societal objectives by
doing well by doing good.
Structure
For Project Shakti, there existed a distribution
channel in the rural market to which an
addition was made (Rural Sales Promoter ->
Combined Direct Coverage -> Shakti Amma ->
Consumer) to lay the foundation for the
endeavour.

HUL Distribution Channel (post-Project Shakti)
Rewards
At Hindustan Unilever, employee benefits are
standardized for all employees on the basis of
their technical skills. The same philosophy was
adapted to the Shakti team, with the
corresponding importance of their salary
affecting the propensity to consume in the
intended market. The company sells the
products at additional discounts to the Shakti
Entrepreneurs (SEs) thus enabling them to
raise incomes of their families. The initiative
almost doubles the average household
income of a SE.
Helpful Mechanisms
HUL makes extensive use of technology for
demand sensing. However, almost all stockists
in smaller towns were family-run with no
desire to invest in technology. HUL had two
choices. It could either come up with a new
model for rural distribution or adapt its
existing model with minor tweaks. It chose
the latter.
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Leadership
The initiative, despite being a method of
market expansion, had organisation-wide
repercussions. Nitin Paranjpe, Managing
Director, was one of the champions of the
change who made HUL accountants,
production and human resources people go
out and meet consumers in villages across
India, just as he did himself. It was a method
of leading by example and inspiring change
through all echelons of the organization.
Making the Change
Kurt Lewins Force Field Analysis




Unfreezing

The initiative was driven by Hemant Bakshi,
Executive Director (Customer Development),
whose team questioned something that HUL
managers had believed over decades: Rural
markets were at a different stage of evolution
from urban markets. As a result, consumers
were given limited variety of stock mostly
the mass market and discount brands and
that too in small pack sizes or sachets.
Within the organization, the motivation for
the change to a new model of micro-
entrepreneurship was created by the fact that
Hindustan Unilever Limited needed to expand
its spread and the hitherto unexplored
network of 6,37,000 villages provided a viable
opportunity for this expansion. The internal
and external stakeholders were identified and
presented with the financial and social gains
(sustainable investment opportunity for
village community/rural women, increase in
the household income of poor families of
Shakti Entrepreneurs (SEs), empowerment to
rural women and better standards of living
though access to health and hygiene
products) that stood to be made from this
endeavour, which have since presented
themselves.
The senior leaders provided their
subordinates with a lot motivation and
support. The positive results of the project
were frequently highlighted to provide the
employees with a push to work towards the
change.
HULs chairman and board remained heavily
involved during the 15-month pilot stage.
Managers presented monthly progress
reports to the board during this phase and
HULs supply chain leads were also expected
to provide support upon the request of a pilot
program manager. After the pilot phase, six
projectsincluding what became known as
Project Shakti were identified by the board
as potentially viable, scalable and worthy of
further investment. For the next three years,
the six managers, or venture leaders,
appointed to oversee a given project
continued to present to HULs board once
every three months. Drawing on a
standardized set of 3- to 6-month
performance benchmarks, the board was able
to assess each project and determine its
viability while also quickly shelving projects
that were not scalable. Only two out of the six
ideas made it to the market. One was for
Pureit, a water purifier; the other was Project
Shakti.

Changing

Increasing the Efficiency of Distribution
Channels
In the past, HUL had relied on its network of
2,700 redistribution stockists and sub-
stockists to supply products to stores in large
villages. For smaller villages with a population
of less than 5,000, its products were sold
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through wholesalers. Shopkeepers from these
villages would travel to these wholesalers and
to pick up their supplies as and when it suited
them. Sometimes wholesalers known as star
sellers would hire a van and do some
distribution on their own.
In the late 1990s, HUL took its first tentative
step to expand rural distribution. Through
Project Streamline, it created a hub and spoke
system and appointed sub-dealers who had
the opportunity to serve villages in their
vicinity. While the model served the company
well, HUL had little or no control over the
distribution chain. Smaller regional brands
would come along, offer better markups and
sell goods on credit and take away a
significant portion of business in a short span.
Significantly, the shopkeeper who stocked
HUL products felt no loyalty to the company
and could switch sides overnight.
Starting 2001, it began expanding its reach
through Project Shakti, where it used women
entrepreneurs in distant villages to stock and
sell its brands. Today, the company makes use
of geo-tagging to understand how far villages
are from the nearest highway and how long it
would take the nearest distributor to reach
them. Plans can now be made in a more
methodical manner. The maps have enhanced
HULs ability to reach out to far-off villages,
subject to the quality of roads. It also makes
use of wireless technology to sense real-time
patterns in demand.

Stakeholders
HUL addressed the Self-Help Groups during
their meetings and gave them presentations
on how they could benefit as well as in what
way they could contribute. The external
stakeholders were informed through BTL
measures. We conducted various nukkad
nataks etc. to spread awareness. Also, the SEs
were in regular touch with the distributors,
who played a crucial role in keeping the SEs
informed about the change process.

Creating a Support System
HUL believes in giving fair degree of
autonomy to its managers. Besides being
assigned responsibility at an early age,
managers are also allowed to slip up every
now and then. The senior managers, however,
are always there to act as guides and mentors
whenever required. It is optimism and self-
belief which gives these people a certain
degree of resilience to persevere till they get
outcomes.

Training Programs
To improve the business skills of the SHG
women, extensive training programmes were
held. The company invested in training the
entrepreneurs and empowering them with
sales tools like mobiles, bicycle etc.

Refreezing

Continued employee involvement through
UrSay, an online portal through which
employees can give suggestions addressed to
the management. Hamara (in house
magazine) was a portal to present with
updates of progress as a method to inspire
commitment to the change.

The linkage between departments was
strengthened. The Finance team faced
obstacles of high investment and cost of
iShakti. The Marketing team focused on
moving the marketplace frontline away from
local outlets who would champion other
products into the homes of families in the
remotest of areas. The Human Resources
team, as a result, incorporated the increasing
requisite capabilities in to its hiring, rewards
and incentives systems. Training programs,
too, were tweaked. The Business Leadership
Training Program, a 15 18 month
international stint, incorporated a rural
element as well and the company conduct
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Rural Training Programs for managers. As part
of their training programme, all HUL
Management Trainees spend about 4 weeks
on Project Shakti in rural areas with NGOs or
SHGs. Assignments include business process
consulting for nascent enterprises engaged in
the manufacture of products such as spices
and hosiery items.

For the first three years of the project the
pilot stage HULs focus was on determining
the scalability of the initiative. Accordingly,
financial targets for example, profit growth
were not considered important metrics
during this phase. Instead, the company
examined three-to-six month targets on sales
volume and the number of villages where the
project was operational.
Next, the company focused on the
sustainability of its Shakti Amma network. It
hired a new layer of managers, each of which
was responsible for 2,000 Shakti Ammas.
Their performance was measured according
to the average income level of the Shakti
Ammas in their network; their access to credit
from alternative sources, such as self-help-
groups to fund their business; and the ability
of Shakti Ammas to generate revenue in
addition to their HUL business (for example,
by selling mobile phone credit to villagers)
all of which are critical to the networks
sustainability.
Following the sustainability phase, HUL
instituted a two-fold change to their
organizational structure in order to improve
cost efficiency and capability development. At
the ground level, HUL hired a third-party
contracting firm to oversee capability
development. During this phase, each
manager from the contracting firm provided
localized attention to 400-500 Shakti Ammas,
and their success was measured based on
sales growth and improvements in the
womens sales techniques. HUL also
developed a management team at the state
level. These managers were assessed on
typical financial indicators, such as revenue
growth and profitability, and were specifically
tasked with driving cost efficiency by
standardizing the projects operations.

Identify the actual and/or
planned outcomes from change
and evaluate the effectiveness
of change
Project Shakti was launched under the
umbrella of New Ventures, a department
created as a result of the work. Shakti utilizes
womens self-help groups (SHGs) for
entrepreneur development training to
operate as a rural direct-to-home sales force,
educating consumers on the health and
hygiene benefits of HLL brands and nurturing
relationships to reinforce the HLL message.
New Ventures believed that this direct-to-
consumer initiative would not only stimulate
demand and consumption to earn huge
profits for HLL, but also change the lives of
people in rural India, something that mass-
marketing alone cannot accomplish. Sharat
Dhall, who leads Project Shakti mentioned in a
statement highlighting planned outcomes
We have four goals for Project Shakti. First,
we plan to increase our reach to the rural
market. Then we will attempt to increase
awareness and change attitudes regarding
usage of the various product categories.
Finally, and most important, catalyze rural
affluence and hence drive growth of the
market
Project Shakti has caught the attention of
many within HLL who have recognized the
venture as an exciting opportunity to
penetrate the rural BOP, while finding double-
digit savings in costs as compared to using
independent rural sales agencies. HLL
executives also believe Shakti offers intangible
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benefits, including increasing brand
awareness, developing new channels, and
social impact. They assert that HLLs role in
the empowerment of rural women is more
important than sales alone.
HUL has been following a sustained approach
to tap the vast potential of Indias rural
market. The evolution of HULs rural
marketing strategies from an indirect
approach to rural area to the door step
marketing through Shakti amma shows that
the company has come a long way since it
took its first rural initiative back in the 1960s.
Varieties of changes were on the horizon and
have positively impacted rural distribution
plans of HUL -
Technology of digital maps to study
existing rural distribution reach and to
draw up plans for increasing reach
(Maps help for smarter route
planning)
Improved road infrastructure across
the country leading to improved
access to even remotest of villages
Reach of Television to rural area has
rural consumers watching all
programmes and ads as in the city
Aspiration to use same products as
city folks is on the rise and buying
habits of rural consumers is changing
accordingly
Similar to the Annapurna salt teams strategy,
New Ventures aims to increase the range of
HLL products in rural markets by taking
market share from local players and
establishing brands that are not currently in
the market. Although New Ventures does not
yet receive pressure from other HLL business
units to push a particular units products,
Dhall expects and hopes this will happen once
Project Shakti proves itself.

From the corporate perspective, Shaktis
greatest challenge is distribution with Indias
underdeveloped infrastructure. For the sales
managers on the front line, training rural
women to work on their own for the first time
poses the primary hurdle. For dealers and
Pracharanis, educating rural consumers about
the quality of HLL products continues to prove
difficult because most villagers are
accustomed to less expensive, unbranded,
local products. Even if they are convinced of
HLLs marketing message, many imitation
products cloud the market and confuse
consumers.

HLL acknowledges that for Project Shakti to be
a significant part of the companys rural
penetration, dealers and communicators must
be well-trained. It is unclear how dealers will
perform in an expanded infrastructure. Also,
HLL will need to determine whether the
Project Shakti model is repeatable in other
countries. Indian family structure and village
interaction provide a unique diffusion
mechanism that is an effective vehicle for
Shakti. Whether this model will be successful
in Africa, South America, or other parts of Asia
due to cultural differences in village structures
must be further explored. Even though these
questions remain unanswered, HLL has
developed an innovative model that other
corporations can examine to determine how
they can utilize the BOP to enhance their
bottom line.

What the organization either
should have done differently or
what they should do next

Citizenship and identity formation in Project
Shakti
Project Shakti has led to a development of a
strong individual identity for almost all;
however, an identity formation amongst the
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Shakti Amma as a collective engagement with
the economic processes that are followed
globally has not been either developed or
promoted by HUL. What has not been created
is a space for the collective. The initiative to
ensure that Shakti Amma interacted regularly
within a region to express their opinions on
the Project or to suggest improvements in
existing processes was not taken up by HUL.
The HUL seems to be holding this opinion that
the act of engaging these rural women with
an MNC like HUL and helping them become
economically solvent is enough to empower
the Shakti Amma so that they can take up the
role of a citizen which is active in his/her
world. But even assuming that Shakti Amma
would have an autonomous sense of agency
to change the terms of such engagements is
thrusting upon them a responsibility for which
they are currently ill-equipped. Though
Project Shakti may have brought the Shakti
Amma outside the ambit of the private
spheres of their homes, it is doubtful whether
it has exposed them to spaces beyond the
village, the district or the state, let alone to
global arenas. At the most, Shakti Amma are
aware of HUL as a producer of good quality
soaps and detergents. Engagements with HUL
have not led to a greater understanding of the
global processes embodied by it. With
reference to a sense of global identity, ability
to access and participate in trans-state
institutions and decision making fora, Shakti
Amma do not come across as being
globalised. The existence of a sense of global
citizenship among Shakti Amma is very weak.
The terms of their engagements with global
processes in production and consumption
have been mediated and negotiated by either
the state government or through NGOs,
without their direct involvement. The
effectiveness of such engagement has not
been enriched with the lived experiences of
those directly involved in the engagement.
Hence, initiatives from HUL to create global
level engagements should be taken in order to
create real empowerment of these women.
Alliances and mobilisation within Project
Shakti
Although individual agency may be a central
aspect of claiming rights and observing duties,
collective struggles to redefine processes have
often been successful in the transformation of
institutions that have resulted in more
inclusive practices of citizenship. The absence
of a collective of the Shakti Amma is indicative
of the many problems that they have faced in
Project Shakti. The formation of a collective
body and a legitimate space could have been
instrumental in solving some of the problems,
particularly understanding margins and
keeping accounts at the start of the initiative.
In particular, the idea of credit was not
encouraged by HUL either for the Shakti
Amma or for their clients. Some Shakti Amma
felt that given the rural situation and their
economic background, the idea of credit
needed to be explored. A few have, on their
own initiative, given credit to other SHG
members to promote the dealership within
the village, but the Shakti Amma would have
to pursue the customers to collect her dues.
Sometimes villagers would only purchase their
monthly or daily requirements from the Shakti
Amma if they were specifically promised a
discount.
Delivery of stocks by the HUL representatives
has also posed problems. HULs rural sales
person (RSP) would not take regular orders
from the Shakti Amma, who have reported
delays in the delivery of stocks, or the delivery
of stock in instalments. They observed that no
such leeway was given when it came to
payment for these stocks. In addition, new
products were sent without consultation
regarding product feasibility, and HUL was
reluctant to take back products that had low
sale turnovers.
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Shakti Amma have also faced problems with
the process of retailing. Although HUL agreed
to take back unsold stocks, they have not
done so. According to the Shakti Amma, often
only small quantities of any product are
required in rural areas, and the quantities
sent by HUL were in excess. They also feel
that products that have no market in rural
areas are dumped on them. The fact that they
are not allowed to sell other branded
products is, according to them, a hindrance in
achieving greater profits. Storing excess stock
was often a problem, needing either an
investment on the part of the Shakti Amma
for constructing a shed to store the products,
or storage limited spaces of family houses.
Decision making in the hands of Shakti
Amma
The representation of the Shakti Amma in
decision-making processes of Project Shakti
has been virtually non-existent, to the extent
that some are quite unsure even of who to
approach for resolution of problems in the
dealership. Although those selected by HUL
do identify with the corporation, they do not
approach them for resolution of problems.
Those selected and promoted by NGOs look
towards the NGOs to mediate with HUL on
their behalf. HUL should also provide credit
facilities to facilitate the dealership. HUL
provide them with two-wheelers to make
them mobile and hence increase the
opportunities to take up satellite. Although
HUL has started a good initiative, it has not
put the proper structures in place to enable
the smooth functioning of the project.


Conclusion
Globalisation may have offered livelihood
opportunities to rural women as marketing
agents for HUL. Through this MNC initiative,
Shakti Amma have been able to increase their
income and gain some social status within
their limited sphere of the village or district.
Despite being a part of the global economic
chain, these women continue to view their
identity locally, but in a slightly different
image, that of hygiene amma, bringing the
message of cleanliness, aspirations of the
modern and popular notions of feminine
beauty to villages. This different image is not
without costs to most of the Shakti Amma,
caused by the many problems in the actual
running of dealerships. To some extent
project Shakti has undermined existing
collective approaches and collective forms of
self-organisation as counter-hegemonic
alternatives. Some SHGs have lost their strong
leaders to Project Shakti. More involved in
promoting the dealership to achieve the
targets set by HUL, many Shakti Amma are
not active in local politics, or inclined to deal
with larger social issues that were often taken
up by the SHGs. The actual running of
dealerships has often been in the hands of the
men. While HUL sought empowerment of
women through Project Shakti, it may have, to
a certain extent, perpetuated the existing
gender relations in the larger society. Spaces
and mechanisms for citizen participation in
decision-making both at the national and the
global scales need to be created and stressed
by HUL in order to bring more success to this
program. Legitimate representation,
participation, mobilisation, intermediation,
transparency and accountability should
become the guiding principles for these new
spaces of civic engagements.

13

Annexures
Results of the Questionnaire:
Which of these statements best applies to how change is managed at HUL?


The organization wide perception about HUL is that it is in a state of change; rapid or gradual.
Majority of respondents recognize that the organization is not status-quoist in nature and is adept to
accommodate and move towards changes in the environment. However a quarter of the
respondents felt that some of the change initiatives are departmentalized and are dealt with
separately and gradually. Given the largesse of the organization, a perception as this could breed
grounds for discontentment and non-involvement where organization-wide changes are desired and
necessary.
















HUL exists in a state of rapid and continuous
change
HUL evolves through long periods of stability
with short bursts of fundamental change
Departments within HUL deal with change
incrementally and separately
HUL is constantly undergoing small changes
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
HUL exists in a state of
rapid and continuous
change
HUL evolves through
long periods of stability
with short bursts of
fundamental change
Departments within
HUL deal with change
incrementally and
separately
HUL is constantly
undergoing small
changes
Series1 33% 0% 25% 42%
14

Please select how applicable each of these statements is in describing the management of change
affecting your job role
(If the result shows 60%, it entails that 60% of the respondents are in disagreement with the
statement)


The chart present that not only are there few delays in the time scales that are set in the change
project and that project times do not lack consequence and consistence in regards to the change,
people are open to sharing ideas and seldom do they use their own ideas for person agendas. Group
work, cohesion, openness and sharing are hence important points that one can highlight after
conducting this survey. However, involvement of the employees interviewed has been low before
the delivery takes place.



0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Project teams have sometimes a lack of
consequence and consistence in regards to
There are delays in the timescales that are set in
the change project
Good ideas for change are hidden and used for
personal agendas
Involvement in the change project before
delivery takes place
Project teams have
sometimes a lack of
consequence and
consistence in regards
to the change
There are delays in the
timescales that are set
in the change project
Good ideas for change
are hidden and used for
personal agendas
Involvement in the
change project before
delivery takes place
Series1 78% 82% 83% 43%
15



This set of questions paints a rather surprising picture of change initatives at HUL. Communications
are found to not be timely and relevant by 67% (chart of disagreement). Change Is not backed by
incentives. Instead it is expected and not really supported. But people are attempting to involve
others who may not be be directly concerned with the project.


Logical reasons are not found to be visible and transparent by over 60% of repsondents.Training is
also found to be inadequate by over 50% respondents while very few people disagree that change
projects create resistance which has to be broken.
56% 58% 60% 62% 64% 66% 68%
Communications about the change are timely
and relevant
The implementation of the change within your
role is managed solely by HUL
Change is expected without being linked to
incentives
Communication about the change is limited to
only those directly concerned with the project
Communications about
the change are timely
and relevant
The implementation of
the change within your
role is managed solely
by HUL
Change is expected
without being linked to
incentives
Communication about
the change is limited to
only those directly
concerned with the
project
Series1 67% 60% 67% 67%
0% 10% 20% 30% 40% 50% 60% 70%
Change projects create resistance which has to
be broken
Training is inadequate leaving unanswered
questions about the change
There are long periods of planning before the
change is delivered
There are logical reasons for change which are
visible and the goals are transparent
Change projects create
resistance which has to
be broken
Training is inadequate
leaving unanswered
questions about the
change
There are long periods
of planning before the
change is delivered
There are logical
reasons for change
which are visible and
the goals are
transparent
Series1 45% 60% 62% 67%
16



Process of implementation for change is found to not be flexible and reactive. Conflicts are not
overlooked. In fact, they are looked at for and are tried to be solved.

Which of these statements best describes Project Shakti?

Coming to the focus of our paper which is project Shakti, our findings reveal that it was managed
with clean cut objectives, methods were clearly communicated to the employees as well as the
time frame was clearly adhered to given the paucity of resources and other constraints.
0% 10% 20% 30% 40% 50% 60%
The process of implementation for the change
is flexible and reactive
The project lead for the change is known and
project champions aid the planning and
implementaiton
Those concerned with the outcome of the
change project take part in planning
Conflicts within the change are looked for an
try to be solved are looked for and try to be
solved
The process of
implementation for the
change is flexible and
reactive
The project lead for the
change is known and
project champions aid
the planning and
implementaiton
Those concerned with
the outcome of the
change project take
part in planning
Conflicts within the
change are looked for
an try to be solved are
looked for and try to
be solved
Series1 53% 52% 53% 37%
0% 10% 20% 30% 40% 50% 60% 70%
Project Shakti is managed within a set
timeframe with clear objectives and methods
that were communicated in advance, and
managed in a controlled way
Project Shakti is a dynamic project which
changes in timescales and deliverables. It has
focus on contingency which appreciates the
complexity of issues
Project Shakti is a combination of the above
two statements but not necessarily in equal
proportion
Project Shakti is managed
within a set timeframe with
clear objectives and methods
that were communicated in
advance, and managed in a
controlled way
Project Shakti is a dynamic
project which changes in
timescales and deliverables. It
has focus on contingency
which appreciates the
complexity of issues
Project Shakti is a combination
of the above two statements
but not necessarily in equal
proportion
Series1 58% 25% 17%
17

Which of the below statements best applies to how you feel Project Shakti is managed?


Half of the repsondents felt that the ideas were openly communicated and a whopping 63% feel that
there were predetermined guidelines for how the system implementations are followed. Many also
felt that there was no rotation of responsibilities among the employees and that many that were left
in charge and left unchanged.

Communication definitely came out as one of the strong points aiding the success of implementation
of change initiative of project Shakti. People felt that training was also adequately given and the
communications were also made readily available
0% 10% 20% 30% 40% 50% 60% 70%
Key implementation personnel are chosen,
put in charge and left unchanged
There are predetermined guidelines for how
the system implementation is to be managed
and these are followed
Ideas are openly communicated and
encouraged within the implementation
Key implementation personnel
are chosen, put in charge and
left unchanged
There are predetermined
guidelines for how the system
implementation is to be
managed and these are
followed
Ideas are openly
communicated and
encouraged within the
implementation
Series1 67% 37% 50%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Implementation communications are open
and readily available
Training is frequently given with supporting
materials creating confidence with the system
and the processes
Communications about the implementation
are not given in advance and not relevant
Implementation
communications are open and
readily available
Training is frequently given
with supporting materials
creating confidence with the
system and the processes
Communications about the
implementation are not given
in advance and not relevant
Series1 32% 33% 75%
18



Please rank these requirements about change in order of importance to you, from 1 to 9.
(1=Most Important, 9=Least Important
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Wide timescales for the implementaiton
deliverables are set and goals are met
Conflicts within the implementation are
avoided
Each release begins with no anticipated
planning
Wide timescales for the
implementaiton deliverables
are set and goals are met
Conflicts within the
implementation are avoided
Each release begins with no
anticipated planning
Series1 45% 77% 75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Incentives are linked with the implementation
to aid the process of change
Once the implementation has taken place, user
involvement in the project begins
The direction of the implementaiton is
influenced by resistance
The reasons for change are unclear and there
are different views of the goals of the
implementation
Incentives are linked
with the
implementation to aid
the process of change
Once the
implementation has
taken place, user
involvement in the
project begins
The direction of the
implementaiton is
influenced by
resistance
The reasons for change
are unclear and there
are different views of
the goals of the
implementation
Series1 63% 42% 48% 75%
19





Understanding
why change is
happening and
why it is
necessary
Having assistance
from the project
owners, project
infrastructure,
training specialist
to create a
supportive
environment
Knowing the
project
recognises
organisation
wide
dependencies
and gives caution
to people
process and
infrastructure
Feeling that
everyone is
focused on the
same goals and
objectives
Appreciation of
how the change
will take place
and be
effectively
communicated
Series1 2.8 5.3 4.7 3.8 4.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Understanding
why change is
happening and
why it is
necessary
Having
assistance from
the project
owners, project
infrastructure,
training
specialist to
create a
supportive
environment
Knowing the
project
recognises
organisation
wide
dependencies
and gives
caution to
people process
and
infrastructure
Feeling that
everyone is
focused on the
same goals and
objectives
Appreciation of
how the change
will take place
and be
effectively
communicated
Series1 2.8 5.3 4.7 3.8 4.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
A
x
i
s

T
i
t
l
e

20


From the survey questionnaire, we gathered that the employees take well to rational empirical
mode of driving change. Logic, reason and the need for change are hence important from an
organizational perspective. The employees need to know why the change is necessary to be able to
cope with it and work towards the goal. Secondly, closely followed with this need is the need for
organizational alignment, focus on common goals and objectives. It is also important that the change
addresses organization wide discrepancies and not just that of fragmented departments or groups. A
common concern, a common caution to people process and infrastructure are hence crucial to drive
change among the employees among other concerns which have been ranked low in the list of
importance of reasons to individuals.












Being able to take
ownership and
influence details of
the change
Conscious that key
individuals are
involved in the
project
Recognise the project
is being implemented
by people with the
necessary core skills
in a clearly defined
and tracked manner
Awareness of who is
ultimately
responsible for the
project
Series1 6.1 5.0 7.2 5.3
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
21

Interview with HUL Senior leader
1. Why do you think Project Shakti came into being?
HUL had to expand its spread. We could see the future in the rural markets. It was an area
completely unexplored. It was the most meaningful step for us which had value proposition for both
the society and the company.

2. Can your executive group clearly articulate why the change occurred and what the future would
look like?
Yes. Ive seen a lot of clarity in HUL employees about this project. The clarity exists not just in the
top brass of HUL but also at the ground level. Some of the sales persons have their families in many
rural areas; theyve seen the families benefitting from this project. If I have to talk about the future,
we want to bring in more technology into the rural areas. We want to associate more Shaktimaans
with us. This vision is quite pervasive in HUL.

3. Do employees appreciate the differences between past and where the company is now?
HUL has brought about a huge positive change in India. And this effort is appreciated by everyone.
The brand perception has changed drastically, and people feel proud to get associated with us. The
impact is not just about the positive intangible change, but even the sales revenue numbers are
talking.

4. Were the stakeholders identified?
Yes, right when the idea was conceptualized, we very clearly identified all our external and internal
stakeholders. It was a very crucial step for us to implement the project with full preparation.

5. What processes were in place to consult with the different stakeholder groups? Did your
stakeholders know how they could contribute?
Both the internal stakeholders were always kept involved. We were addressing the Self-help groups
during their meetings. We gave presentations on how they could benefit, in what way can they
contribute etc.

6. What methods were used to ensure that stakeholders were kept informed throughout the
change process?
The external stakeholders were informed through our BTL measures. We conducted various nukkad
nataks etc to spread awareness. Also, the SEs were in regular touch with the distributors, who
played a crucial role in keeping the SEs informed about the change process.

7. Were employees prepared to assume responsibility for the successful direction and execution of
the change?

The HUL people were very enthusiastic about this project. The senior leaders provided their
subordinates with a lot motivation and support. The positive results of the project were frequently
highlighted to provide the employees with a push to work towards the change.

8. Were leaders working as facilitators helping others on their team to learn how to lead?

22

HUL believes in giving fair degree of autonomy to its managers. Besides being assigned
responsibility at an early age, managers are also allowed to slip up every now and then. The senior
managers, however, are always there to act as guides and mentors whenever required.
It is optimism and self-belief which gives these people a certain degree of resilience to persevere till
they get outcomes.

9. Was there an approach defined or human resource principles that were adopted for the change?
At Unilever we believe that business must be part of the solution. But to be so, business will have to
change. Sustainable, equitable growth is the only acceptable business model.
We call our strategy for sustainable growth our Compass strategy. It sets out a clear and compelling
vision of our future, in which our brands and services reach and inspire people across the world,
helping us double the size of our business whilst increasing our positive social impact. One of our
goals is to enhance the livelihoods of millions of people as we grow our business, which is the main
objective of Project Shakti. To make it work, efficiency of the distribution channels was crucial, and
hence it became our focus area at HUL.
10. Were a range of employee supports and learning opportunities made easily available?
HUL focusses on providing extensive training to employees. Nearly 70% of the learning happens on
the job, 20% through mentoring and 10% in training courses. The HUL managers made sure that the
hassle free implementation would happen only if the workforce is trained and prepared enough. The
Leadership Development Tool helps plot employees with the highest potential (around 10% of the
workforce) and they are called 'listers' who have the capability to grow vertically in the organisation.
Next come the sustained high performers, who account for 15% of the workforce. We also have
additional training opportunities for non-listers, which either motivates them to improve or opt out.

11. Did the culture encourage evaluation and reflection?
At the core of our activity is continuous improvement and creating the right incentives to help those
we work with to move from one level to the next. The assessment methods used to evaluate
employees are very transparent. We are strengthening our grievance mechanisms to enable more
people to seek remedy when needed. This is part of a process to move our business from do no
harm to do good and to increase our positive social impact as we grow.

12. What were the obstacles within the organization that needed to be overcome?
One of the biggest obstacles within the organization was to prepare the people to implement this
change successfully. We had to prepare the different departments to act in sync. The Investment in
project Shakti was significant reaching 15% of sales by 2004. And the cost of iShakti added another 3
to 5% of sales. However, the project broke even by 2004. So the finance department of the company
had to be prepared for every possibility. Also, we were operating in media dark areas where
television advertising could never reach. It moved the marketplace frontline away from local outlets
who would champion other products into the homes of families in the remotest of areas. So this
was a challenge for the Sales and Marketing department for the company. The HR department faced
the challenge of keeping every employee motivated towards the implementation and then assessing
them fairly. Hence, the challenges and obstacles were manifold, but continuous focus and
persistence were needed to overcome them all.
23

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