Introduction to EIS Simulation

Network Organisations Change Initiatives Core Competencies Self-Directed Teams Empowerment Network Organisations TQM Cycle Time Reduction Business Process Re-engineering eCommerce eBusiness ERP XRP Benchmarking Shareholder Value Analysis & EVA Knowledge Management Customer Satisfaction Surveys Over the past 20-odd years there have been many attempts at helping management rationalise their decisions in tools, models and techniques, aimed probably at giving them the ammunition to ‘sell’ changes to their organisations. Bain & Co (1995) have discovered that, although the use of such management tools & techniques is high and increasing, there is absolutely no correlation between the number of tools used and financial performance. Balanced Scorecard Customer Retention 1988 1990 1992 1994 1996 1998 2000 2002 Source: Management Tools & Techniques (Bain & Co, 1995)

Change Initiatives: facts & figures Typical outcomes: 50 to 70% of Re-engineering Initiatives FAIL <20% of IT projects completed on time and within budget; ~30% of IT projects cancelled before completion (Standish Group report, 1995) sophisticated Management Systems are seldom used or mis-used … … and generate a lot of FRUSTRATION

Change Initiatives: facts & figures Key Factors: Organisational resistance 82% Insufficient executive sponsoring/support 72% Unrealistic expectations 65% Inadequate programme management 54% Unclear business case 46% Lack of qualified resources 44% Scope of expansion/uncertainty 44% Ineffective leadership 43%

Change is a Process in 4 Steps: Dynamics of Change Change is a Process in 4 Steps: Awareness: people become aware of the need Interest: people show an interest – they are curious to know more about it Trial: people want to try – to test & evaluate Adoption: people become regular users

Dynamics of Change Attitude towards Change / Resistance to Change 5% 45% Late Majority “10-proof people” Early Majority “1-proof people” Early Adopters Resisters “Outlaws” Innovators “Pioneers” negative positive Attitude towards change

Speed of Adoption / Ease to Convince Attitude towards change Dynamics of Change Speed of Adoption / Ease to Convince 5% 45% “easy” “very hard” “hard” “normal” negative positive Attitude towards change

LingHe Simulation® a Business Game… ? Management “flight simulators” Flexible Risk-free Fun Used at major business schools and in corporate executive & management development programmes LingHe Simulation® is a registered trademark of AlphaLabs, France

LingHe Simulation® - Briefing Context Your Mission Tactics / Initiatives The User Interface Supporting Materials Turn to your PC

LingHe Simulation® - Briefing Context  click on “YOUR MISSION” Why this particular context ? privatisation of State-owned Company local management have no real motivation to change HQ have no real power base to impose change  traditional top-down ‘rule by edict’ no longer works

LingHe Simulation® - Briefing The impact for LingHe Company  click on “The Change Plan” What is a Performance Management System ? (PMS)

LingHe Simulation® - Briefing What is the aim of the business game ?  click on “YOUR CHALLENGE” So what do we do ?  click on “HOW TO GO ABOUT IT”

LingHe Simulation® - Briefing Define your Strategy from: clear objectives to: “how to get there” Determine which tactics will you use, with whom, and when

LingHe Simulation® - Briefing choose among 20 different initiatives (tactics) initiatives are aimed at gathering information taking direct action to convince one or several managers, and thus influence their willingness to adopt the proposed innovation. immediate feedback on impact of your decision

LingHe Simulation® - Briefing Study the Tactics / Initiatives Do not take at face value (eg. “breaks”, “sandwich”) Discuss & Agree on Strategy Determine which tactics will you use, with whom, and when You may at any time review your strategy (take note of when & why)

Good luck !