Professional Documents
Culture Documents
Organisations as Systems
1
OVERVIEW
- Paul Harmon
- Steve Skidmore
- Concept of bis process change – improve bis processes – more efficient and effective
- Changes driven by new technologies – exploit new technologies emerging
- Software solutions
- Establishment of info system (IS) requirements
- Pros and cons of generic software solution
- Processes for selecting and implementing most appropriate software package
2
INTRO – BUSINESS PROCESSES
- Business process redesign – create processes that link groups of companies together in processes that span
companiES
- single seamless process – seamless, uninterrupted flow of info and pdt btw dozen suppliers, manufacturing
sites and distributors (complex supply chain)
Eg Henry Ford – Ford Motor Company – moving production line
ORGANISATIONS AS SYSTEMS
- Business process – should cut across traditional depts to combine activities into a
single seamless process flow (horizontal approach)
3
BUSINESS PROCESS RE-ENGINEERING [BPR] not imp – not examiner fav – mayb examined for criticisms
- Insisted companies think in terms of comprehensive processes – improve whole process vs sub process
- Define all major processes – focus on processes offered most return on improvement efforts
- Designed from ground up (from scratch) – take advantage of new IT systems
- Good news – focused on everything involved in a process – significantly improve overall process
- Bad news – forced to tackle very large re-design efforts
- Definition
1. Fundamental rethinking – start from zero, clean sheet ; no assumptions
BPR assumes nothing
2. Radical redesign – extreme, massive change
3. Dramatic improvements – 1000%
Social implications, people feel insecure, difficulties
- Process – a series of inter-realted activities – should be integrated – vs specialization created depts. – each
tried to maximize own efficiency at the expense of the whole
- Solution
1. Processes conceptualized as complete, comprehensive entities
2. Use IT - integrate comprehensive processes
- Criticisms
CDEF
1. Established processes often have valuable internal control systems – when process re-engineered –
critical control features such as segregation of duties and mgnt supervision (to cut cost) mayb be
removed from the process
2. Significant disruptive changes – affect staff – people fear, anxiety
3. Emphasizes on efficiency improvements – neglect effectiveness – by reducing number of managers and
employees – reduce innovation and creativity – Hamel and Prahalad call this process as ‘hollowing out’
– taking out a lot of knowledge (brains)
4. Many proposed changes may not be technically and operationally feasible
- Alternatives
Business process improvement
Business process re-design
4
MODERN DAY TERMINOLOGY IRR
- Paul Harmon
1. Process improvement
Existing process stable and small
Incremental improvements to existing processes – not dramatic change – small and
step-by-step change
Problem-solving approach – look at existing process – identify problems
2. Process re-engineering
Similar to BPR – not recommended
Very large process – seeks to re-design process in a comprehensive manner
Reconceptualising – start from zero
3. Process re-design
Intermediate scale of operation
Medium-sized existing processes – require extensive improvement or change
Not to solve problem – existing process work in fine – just to improve – fine tune – make it
perfect – more efficient and effective
- ICT – info and communications technology plays as an important enabler (‘means’) in all the above three
change efforts
5
J’08 Q2(a)
PROCESS-STRATEGY MATRIX
D’09 Q3(b)
- Paul Harmon
- Analyses processes
Complexity
Strategic importance (value they add)
- identify processes outsourced or retained in house?
- Harmon categorizes processes into four quadrants – suggest how processes must be tackled
(solution options)
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4. High strategic importance, High process complexity and dynamics
Complex processes – very difficult to automate
Valuable – core
Invest in technologies (not automate) – to support individual undertaking these processes
Eg new pdt design (CAD) ; deals with other companies (negotiations, bargains)
Focus of major re-design initiatives – improve business process – through improvement of people
undertaking these processes (eg training)
7
PROCESS RE-DESIGN METHODOLOGY unlikely tested - phase 2 & 3
- Paul Harmon
- Much in common with project mgnt techniques (Chap 11)
Process Manager
Remove the boundaries across functions
Process sponsor for the project Chap 11
Role – overall decision making and championing the project at the highest lvl – does not
undertake detailed redesign work
Project Facilitator
Act as project manager
Consultant – facilitate project redesign
Remains neutral – not committed to any functions or dept
- 5 phases
Phase 1 : Planning
Phase 2 : Analysis
Phase 3 : Redesign
Phase 4 : Resource development
Phase 5 : Transition
8
Phase 1 : Planning
Phase 3 : Redesign / Designing the new process Exam : narrative form – do not redraw a new swimlane diagram
Phase 5 : Transition
Implementation – action part – make the change – extensive change – people affected
Failed – resistance from senior mgrs and employees resist using new procedures / new software systems
Success transition depends on successful change management – address social impact of the change
9
MEASURING AND MANAGING REDESIGNED PROCESSES
- Good process redesign accompanied by a good measurement and management plan is much more likely to
be implemented and be successful
- In reality, one round of process redesign improves the process, but leaves some problems that need to be
resolved
- Establish process measures – managers continuously check these measures – take actions as and when
deviations occur – process improvement
>>> after implemented the new process – measure – do not take it for granted that it’ll meet the objective – if
only some obj not achieved – simple change – make further change – improvement – X redesign/re-engineer
10