Module 5. Managing Organizational Transformation Topic 10. Process –Centered Organizations and Change Management

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.

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

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.

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

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.

Why manage change? Change brings disorder into an organization. The disorder needs to be managed to bring everything back to order.

Change Motivators · Pain, hope and uncertainty · Coordination and cooperation · Cultural and paradigm shifts · Behavioral change · Duration of change

Components of Change 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

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