Module 5. Managing Organizational Transformation

1
Module 5. Managing Organizational Transformation

• Topic 10. Process Centered Organizations and
  Change Management

2
Business Process

• Organization is viewed as a collection of
  business processes.
• Employees as owners of those processes.
• Change from a function-based to process-based
  organization.

3
Business Process Boundary

• Input
• Process a set of activities that interact with
  each other
• Core process A main process such as a new
  product development process
• Support process a process that supports the core
  process. Support processes of the new product
  development process include analysis, market
  test, product design, product test, etc.
• Output
• Feedback

4
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 IS
  organization) focus on technology, staff, and
  process, respectively.
• This topic looks at those three components
  simultaneously and understand the interaction
  among them.

5
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 communication tool
  between a designer and others

6
Management Challenges

• Reengineering is very difficult and ambitious
  undertaking regardless of the size of the
  enterprise.
• The primary ingredient is leadership.
• The other major ingredient is a team dedicated to
  the process.

7
Why manage change?

• Change brings disorder into an organization.
• The disorder needs to be managed to bring
  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 Change http//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 more
  difficult 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, shift
  locus of control

10
Lessons from Hammer Stanton (1995)

• A wedge and a magnet are needed to get started
• Leadership must demonstrate commitment
• Executive consensus is a requirement
• Constant vigilance must be maintained
• All change has loss
• If you believe you can't change, you won't