Chapter 9 Change Management in Reengineering Reference: Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore. Burke, G. and Peppard, J. (1995). Examines Business Process Re-engineering, Kogan Page Limited, London.

Learning outcomes To understand the change management process. To understand the framework that commonly used To outline the challenge and critical skills involved.

Introduction The management of change is viewed as a complex and difficult area The notion of BPR as a change initiative will be examined and compared to a set of approaches from change management.

Frameworks for Managing Change Three perspectives have been selected which address differing facets of the change process: 1. How to affect successful change? 2. The degree or scope of the change being considered 3. Approaches to implementation. These three perspectives highlighted the areas that need to be considered if successful change is to be achieved.

Boddy and Buchanan Framework To evaluate and examine BPR as an approach to affecting change. Focus at the role of senior management This framework derived from 3 models Project management Participative management Political perspective Project management Participative management Political perspective

Boddy and Buchanan Framework Project management Based on the concept of project life-cycle Involves a clear statement and definition of objectives, responsibilities, deadlines and budgets Successful change is due to a clarity in the initiatives, effective monitoring and control. This is to ensure to meet / remain the target. The project manager’s roles Focus on the objectives Control Monitoring progress Deals with problems Etc.

Boddy and Buchanan Framework Participative management Emphasis on members within the organization who are affected by the changes A participate in the change initiative - the acceptance level among employees. Constraints such as lack of time, expertise or resources, politics and etc. Emphasize on understanding of the process of change, interpersonal and social skills to facilitate it.

Boddy and Buchanan Framework Political perspectives The resistance based on individual personalities, values or errors in planning and design are easily identified and addressed. If the resistance occurs due to new patterns of work, relationship and distribution of power, it would be more difficult to predict and to solve. Successful implementation may require senior management to be sensitive to the power and influence of key individuals or groups.

Challenges Fear of job loss Myth: reengineering became synonymous with downsizing and worker layoffs Some company belief in reducing employees number Some may relocated the affected employees to other division or department.

Challenges Inadequate skills of workers No BPR effort will succeed without first reeducating and retraining the people who will work with the new process. Lack of management support Support from all levels will help to ensure the successful of BPR effort. Example: the senior management should involve with the campaign or in disseminate the information to the lower level.

Challenges Change of organizational structure and culture People will react strongly when changes occur on the familiar working and living patterns. Changes normally takes time. For IT & BPR- most companies are expecting rapid changes. It could be due to technology fast change. Whatever technology that you have today may not be your competitive advantage in the market for another year. With IT, people are expecting a dynamic changes and quick result. It can happen if supported by adequate skills and support programs

Critical Skills Political skills Analytical skills People skills Leadership skills

Summary The Boddy and Buchanan framework The challenge in change management. The critical skills for change management.