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Managing Organizational

Transformation

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Business Process

Organization is viewed as a collection ofbusiness processes.

Employees as owners of those processes. Change from a function-based to process-

based organization.

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Business Process Boundary

Input

Process: a set of activities that interact witheach other

Core process: A main process such as a new productdevelopment process

Support process: a process that supports the coreprocess. Support processes of the new product

development process include analysis, market test,product design, product test, etc.

Output

Feedback

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STeP Model

Three components of BPR: Staff, Technology,and Process

All three components are interdependent and

must be considered at the same time. Module 1 (Managing Technology), Module 2

(Managing People), and Module 3 (Managing ISorganization) focus on technology, staff, and

process, respectively. This topic looks at those three components

simultaneously and understand the interactionamong them.

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Business Process Redesign

Reduce cycle time

Eliminate redundant or non value added

tasks Use a diagram to show before and after

the redesign

Diagram can be used as a communicationtool between a designer and others

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Management Challenges

Reengineering is very difficult andambitious undertaking regardless of the

size of the enterprise. The primary ingredient is leadership.

The other major ingredient is a team

dedicated to the process.

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Why manage change?

Change brings disorder into anorganization.

The disorder needs to be managed tobring everything back to order.

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Change Motivatorshttp://www-staff.mcs.uts.edu.au/~jim/bpt/s97l8.html

Pain, hope and uncertainty

Coordination and cooperation

Cultural and paradigm shifts Behavioral change

Duration of change

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Components of Changehttp://www-staff.mcs.uts.edu.au/~jim/bpt/s97l8.html

Duration - influence by external factors,approx. 18mths - 2yrs

Scope - larger the entity to change, the moredifficult to manage it, process segments

Values, attitudes & behaviors

Communications & commitment building - at all

levels, before implementation begins Measures - vision with strategic goals

Post-implementation - replace resistors, shiftlocus of control

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Lessons from Hammer & Stanton (1995)

A wedge and a magnet are needed to getstarted

Leadership must demonstratecommitment

Executive consensus is a requirement

Constant vigilance must be maintained All change has loss

If you believe you can't change, you won't