FAMILY CULTURE TO

CORPORATE
A CASE FROM SUNSHINE HEALTHCAR E L ANKA
LTD

Team Members

Dhanajaya(Team
Leader)
Ama
Kshara
Nilmani
Asanka
Niroshan
Manoj
Malaka
Gihan

Outline

Selection Criteria
Introduction
Organizational Design
Organizational Culture
Change Begins
Change Process
Impact of the change
Recommendations
Present Day
Q & A

SELECTION CRITERIA
Family owned to Corporate
The struggle to hold on to agencies
Traditional to innovative approach
Radical changes to structure and
functions

INTRODUCTION
Begins as a retail pharmacy in 1967- Lanka
Medicals
Becomes a distribution partner for many
pharmaceutical companies.
Today, it is local agent and a partner for
Many reputed MNCs in pharmaceuticals
Surgical equipment and diagnostics
medical devices and consumer health products

INTRODUCTION

CONT

Private Limited Company with annual revenue over 6

Billion Rupees.
Ranked second in Sri Lankas Private Healthcare
market.
Largest specialized healthcare team - over 350
medical marketing & sales personnel
Partners are Abbott Laboratories, Zydus Cadila,
Glenmark Pharmaceuticals, Novo Nordisk, Johnson &
Johnson Medical, 3M Healthcare, GE Healthcare,
Siemens Diagnostics and many more

INTRODUCTION

CONT

THE STORY BEGINS

Clan Culture
Close relationships among employees.
High Solidarity & Sociability
Top Management involved in every
decision irrespective of importance
Informal information fl ow.
Networked

Sunshine
Healthcare

Fragmente
d

Mercenary

THE STRUCTURE BEFORE CHANGE

THE SON RETURNS

Appointment of new MD / CEO in 2005
Mr. Shyam Sathasivam .
Young
American Educated
Western cultured
Qualifi ed in business management
Ambitious

New MD Start to make radical changes in

company structure and culture.

CHANGE BEGINS THE SHUFFLE

Change 1 - BDM shuffl e

BDM were been shuffled among the
agencies.
Took place for a period of time and
attrition was high at that time.

Negative

Positive

Loosing senior staf

Reducing business
risk(less bargain powers
to employees)

Employee Demotivation
Reduced financial
growth

THE CHANGE REFLECTS IN SALES

CHANGE CONTINUES.
RECRUITMENT POLICY CHANGE
Change 2- Replacements from
outside
Senior Managers were recruited from
other companies and internal promotions
were been reduced.

Negative

Positive

Longer time to get

adjusted

Change in Culture

Demotivation of existing
staf

Knowledge in-flow
Loosing bargaining
power of senior staf
members

NEW HIERARCHY
Change 3 - HR policy of new structure
More hierarchical
Less Span of Control
Negative

Positive

Job description was

same for namesake
positions

More opportunity for

Promotions

Employee Demotivation

Enhanced
responsibilities
Increased Efficiency
More efective
communication

CURRENT ORGANIZATION
STRUCTURE

NEGATIVE IMPACT OF CHANGE

Poor handling of resistance to change
Diffi culty in new recruits from outside
to get adjusted
High managerial staf turnover
Employee demotivation

RECOMMENDATIONS
Communicate vision behind changes to
Employees and get feedback.
Communicate vision to senior leadership
Use of multiple communication mediums.

Mitigation of Cultural Shock of new

recruits
Planned induction
Mentors and conversation groups

RECOMMENDATIONS
Events should be organized to change the
perspectives & attitudes of people in the
organization.
Seminars, Free Coaching
Organizational development programs

Job Redesign - Job enrichment in each level

of designation along the career ladder
Motivational activities for current
employees
Theory Y style management
Identify personal needs

Questions?

Thank you