Change Management In the context of Business Process Reengineering

What is Change Management? Change management is a systematic approach to dealing with change. Organization - change management means defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities Computer System - change management refers to a systematic approach to keeping track of the details of the system

Business Process Reengineering “The fundamental reconsideration and the radical redesign of organizational processes, in order to achieve drastic improvement of current performance in cost, services and speed” – Hammer and Champy “The analysis and design of workflows and processes within and between organizations” - Davenport & Short

BPR – Davenport 1. Develop the business vision and process objectives: The BPR method is driven by a business vision which implies specific business objectives such as cost reduction, time reduction, output quality improvement. 2. Identify the business processes to be redesigned: most firms use the 'High- Impact' approach which focuses on the most important processes or those that conflict most with the business vision. Lesser number of firms use the 'Exhaustive approach' that attempts to identify all the processes within an organization and then prioritize them in order of redesign urgency. 3. Understand and measure the existing processes: for avoiding the repeating of old mistakes and for providing a baseline for future improvements. 4. Identify IT levers: awareness of IT capabilities can and should influence BPR. 5. Design and build a prototype of the new process: the actual design should not be viewed as the end of the BPR process. Rather, it should be viewed as a prototype, with successive iterations. The metaphor of prototype aligns the Business Process Reengineering approach with quick delivery of results, and the involvement and satisfaction of customers.

Initiating Change Iceberg Above the Surface -Issue, Cost, Quality, Time Below the Surface - People, perceptions, politics

Kübler-Ross grief cycle Shock stage: Initial paralysis at hearing the bad news. Shock stage Denial stage: Trying to avoid the inevitable. Denial stage Anger stage: Frustrated outpouring of bottled-up emotion. Anger stage Bargaining stage: Seeking in vain for a way out. Bargaining stage Depression stage: Final realization of the inevitable. Depression stage Testing stage: Seeking realistic solutions. Testing stage Acceptance stage: Finally finding the way forward. Acceptance stage

Reducing Resistance Positive Facilitation Education Involvement Negotiation Negative Manipulation Coercion

Processes to Guide Change There is no one process that is preferred to implementing change in regards to BPR Balanced Score Card Financial, Business Process, Customer, Learning and Growth Process Oriented Psychology (POP) Worldwork, intends to transform systems by shifting roles that people unconsciously hold in a system Appreciative Inquiry Engages individuals to focus on change Scenario Planning Gauges how different scenarios will play out Theory U Change strategy based more on forecasted future rather than past lessons

Steps to Facilitate Change Lewin - 1. Freeze 2. Transition 3. Unfreeze What happens during Transition phase 1. Identify potential change 2. Analyze change request 3. Evaluate change 4. Plan change 5. Implement change 6. Review and close change

Tools to help with Change There are many software tools available to help with Change Management, IBM - Rational RequisitePro, HP - PPM Center Deployment Management, AccuRev, to name a few. The tool you choose will most depend on what type of change you are trying to implement whether it be software using a version or release management software, or and organizational change using a more intuitive software

Sustaining Change Many processes exist to help sustain changes made and improve them further CMMI Six Sigma TQM or EFQM ISO 9000 Bench Marking Theory of Constraints

Summary In using change management it is important to understand and address: The human aspect The processes to facilitate change The steps involved The tools that can help How best to sustain

References management.com/articles.htm management.com/articles.htm management/change_management.htm management/change_management.htm _reengineering _reengineering elerators/cits/mo/smf/smfchgmg.mspx elerators/cits/mo/smf/smfchgmg.mspx