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IN SEARCH OF A NEW DIRECTION
IN SEARCH OF A NEW DIRECTION
Integrated by:
Chandan Bhatwadekar S2632604Mohamed Abdul Muhsin S2634110Paola Gonzalez S2675202Seungwon Seo S2633711
Change and Business Process Reengineering
AgendaAgenda AgendaAgenda
An overview of Change Management In depth literature review of Business
Process Reengineering (BPR)Case-studyRecommendation Conclusion
Defining Change Management
Defining Change Management
What is change management?What is change management?What is change management?What is change management?
Can be defined as the continuous process of aligning an organization with its marketplace and doing it more
responsively and effectively than competitors.(Berger, Sikora & Berger,1994)
Occurs at the individual, organizational, and industry level.
(Beer and Walton, 1994)
Levels of change within an Levels of change within an organizationorganization
Levels of change within an Levels of change within an organizationorganization
Organization alters its culture its corresponding strategic vision and both
pertaining to its members' overall perceptions, and collective mindset
Organization shifts its structure and its portfolio of strategic positions, including businesses, products and services, and
markets. labeled as restructuring, rearranging or reconfiguring
Mintzberg & Westley, 1992
What motivates change in an What motivates change in an organisation?organisation?
What motivates change in an What motivates change in an organisation?organisation?
Internal
ExternalOrganisation
It is also political, social, technological, and economic
stimuli outside of the organization that cause
changes
Organization's management policies,
systems, and procedures, as well as employee
attitudes
Langseth & Mossp,1985
Three steps to succeed…Three steps to succeed…Three steps to succeed…Three steps to succeed…
UnfreezingUnfreezingUnfreezingUnfreezing
ChangingChangingChangingChanging
RefreezingRefreezingRefreezingRefreezing1111
2222
3333
Burke, 2002
UnfreezingUnfreezingUnfreezingUnfreezing
1111 Stage which creates motivation and
readiness to change through demonstrating a need for change, inducing guilty and creating psychological safety to what happening in the future.
ChangingChangingChangingChanging
2222 Changing is the stage which involves cognitive
restructuring in which organizational members need to see things differently than before. As result of this different view, must act differently.
Two processes are needed to accomplish this stage.
Members need to identify with a new model, leader or even a consultant to begin to seeing things from other person’s point of view
Scan the environment for acquiring new information relevant change happing in an organization
Refreezing Refreezing Refreezing Refreezing
3333This is the last stage
Involves the integration of the change for organizational members through new behavior, feedback and reward, and interpersonal proliferation.
Roberson and PorrasRoberson and PorrasRoberson and PorrasRoberson and PorrasTwo views to characterize organizational change:
PLANNEDPLANNED UNPLANNEDUNPLANNED
FIRST ORDERFIRST ORDER Developmental change Evolutionary change
SECOND SECOND ORDERORDER
Transformational changeRevolutionary
change
Category
Ord
er
Business Process Reengineering
(BPR)
Business Process Reengineering
(BPR)
Success stories of BPRSuccess stories of BPRSuccess stories of BPRSuccess stories of BPR Taco Bell: the company has achieved a significant growth of 22 percent in a
stagnant market as well as conquering a remarkable customer satisfaction by rethinking on “who is the real customer?” and planning and implementing business processes which bring value to customer.
R.J. Reynolds Tobacco Co.:- To re engineering their business process of payment this company introduce EDI, electronic receipts settlement and imaging technology which eliminated paper based payment system as a result there was a reduction of 37 percent in processing per invoice which reduce the overall budget by $600,000.
Reuters: - world famous media organisation achieved accuracy of 95 percent of installation on time and 98 percent in billing those installations by reengineering the customer order life cycle.
Zenega Ag Products: - this company reengineered their business group in 19 teams and adopt a new rewards system to achieve consistency, equity and opportunity for their employees.
What is BPR?What is BPR?What is BPR?What is BPR?
The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance
measures such as cost, quality, service and speed.
(Hammer and Champy, 1993)
BPR is a management tool which helps organisation to examine and redesigned their businesses process to enhance cost efficiency
and service effectiveness.
(Lindsay et al., 2003; Vidovic and Vuhic, 2003)
When organisation use BPR ?When organisation use BPR ?When organisation use BPR ?When organisation use BPR ?
When organisation identify they are in deep trouble
They were not in trouble yet but could see major problem ahead
They were in peak condition and wanted further improvement.
Tennant,C. & Wu,Y.(2005)
Process mappingProcess mapping
Identifying Identifying Process for reengineeringProcess for reengineering
Understanding the Understanding the selected processselected process
Defining key Defining key performance objectivesperformance objectives
Designing new processDesigning new process
TestingTesting
IMPLEMENTATIONIMPLEMENTATION
Application of BPRApplication of BPRApplication of BPRApplication of BPRTo ensure a success in BPR project it’s advisable to follow to seven steps approach formed by Shields J.
1111
2222
3333
4444
5555
6666
7777
Process mapping Process mapping Process mapping Process mapping
Can be defined as a series of actions that lead to an outcome.
A BPR project, should start with Process map of organisation which shows how work flows.1111
Identifying Identifying Process for Process for reengineeringreengineering
Identifying Identifying Process for Process for reengineeringreengineering It is impossible to reengineer all the organisation’s process
simultaneously.
Hammer and Champy: “organisation should take into consideration three major criteria while selecting process for BPR”. :
2222Feasibility Importance
Dysfunction
Selecting process criteria
Process which are in deep trouble
Processes which have greater impact on customer
Processes which are most susceptible to successful redesign
Understanding Understanding the selected the selected processprocess
Understanding Understanding the selected the selected processprocess
3333 Before undertaking a reengineering of
selected process, the BPR team needs to understand the process in and out.
E.g. what it does, how well it does and what are the critical issues that affect the process performance etc.
Defining key Defining key performance performance objectivesobjectives
Defining key Defining key performance performance objectivesobjectives
4444Key performance objectives are those objectives which are expected by stake holder and BPR team while initialising the BPR project . This objective indicates the success or failure of BPR project.
Designing new processDesigning new process Designing new processDesigning new process
This is considered as most important and crucial part of any BPR project. According to hammer and Champy (1993), it demands imagination, inductive thinking, and touch of craziness as it’s the most nakedly creative part of entire BPR project. 5555
TestingTesting TestingTesting PDSA model for process improvementIs important to test before putting into final
practice
6666 plan
Do
Act
Study Langley et al.(1996)
ImplementationImplementation ImplementationImplementation
Once the process is tested and the practical problems are identified in testing the new process can be rolled out. 7777
BPR Success factorsBPR Success factorsBPR Success factorsBPR Success factorsBPR
Success factors
Egalitarian Leadership
Collaborative working
environment
Top managementcommitment
Change in Management
systems
Use of information Technology
Shared vision/ information
Open communication
Confidence and trust
in subordinates
Constructive use of subordinates
idea
Friendly interactions
Confidence andtrust
Teamwork performance
Cooperativeenvironment
Recognition among
employees
Sufficient Knowledge
about BPR projects
Realistic expectation
of BPR results
Frequent communication
with BRP team users
New reward system
Performancemeasurement
Employeeempowerment
Timely trainingand education
The role of IT
Use of up-to-date communication
technology
Adoption of IT
BRP Failure factorsBRP Failure factorsBRP Failure factorsBRP Failure factorsBPR Failure Factors
Resistance to change
Middle management Fear of losing authority
Employees fear of losing job
Skepticism about project result
Feeling uncomfortable with new working environment
Croydon CouncilCroydon Council
Case study
“In search of a new direction”
The business…The business…The business…The business…
• A government body with a work force of 10,500 engaged in providing service of education, waste management, leisure and planning to local resident and business.
• Hierarchical structure is comprised of eight department.
• Each department had its own HR Department.
• Total staffing cost (salaries) was 282 million pound a year.
The Challenges…The Challenges…The Challenges…The Challenges…
A hierarchical and traditionalist culture was holding back the changing process.
The organization was needing a radical shake up due to a lack of a HR strategy.
challenge…(Contd.)challenge…(Contd.) challenge…(Contd.)challenge…(Contd.) Division among its 8 council departments No consistent approach to delivering HR services Low productivity High staff turnover (a massive 22%) No measurement of return on investment Low credibility of HR department Lack of investment in learning and development Lack of efficient approach towards Human capital
Management
The solution…The solution…The solution…The solution…
Consolidate the 8 personnel divisions into one strategic HR function.
Strong and effective performance measurement Development of new processes for HR tasksExploring alternative delivery models including
shared services with other councilsReducing the number of full time employees from
125 to 92
The solution…The solution…The solution…The solution…
Employing new staff from private and voluntary sectors
Creating 5 new teams: HR Policy, HR Consultancy, Business unit, organisational development.
Implementation of a new HR information system to provide better workforce reporting
New performance agreements outlining mutual responsibilities and expected service levels
TheThe resultsresultsTheThe resultsresults Croydon increased its recognition and rated “most
improved council (2007) in the National Human Capital Best Value Indicators (rising from 68 to 6th place)
Sickness level of staff fallen as achieved lowest sickness rate of all 32 London council.
Shared services arrangements for recruitment and payroll services yielded saving of more than 1.5 million pounds.
TheThe results…results…TheThe results…results…
Enhancement in capacity of organisational development
New development and induction programs Establishment of its own leadership academy Investment in internal communications
department The cultural change started
Before… (The Croydon Way)Before… (The Croydon Way)Before… (The Croydon Way)Before… (The Croydon Way)
Personnel Department
8
Personnel Department
7
Personnel Department
6Personnel
Department5
Personnel Department
4
Personnel Department
3
Personnel Department
2
Personnel Department
1
CROYDON COUNCIL
After… (the BPR way)After… (the BPR way)After… (the BPR way)After… (the BPR way)
Croydon
OrganisationDevelopment
Director (Strategic
HR Department)
Health and Safety
HR PolicyHR
ConsultancyA Business
Unit
Organisation Development
Our recommendations…Our recommendations…
OurOur recommendations…recommendations…OurOur recommendations…recommendations… Top management support
BPR must be accompanied by strategic planning, which addresses leveraging IT as a competitive tool.
Before implementing BPR management should create fair amount of awareness amongst employee in order to achieve positive response and acceptance .
BPR must not ignore corporate culture and must emphasize constant communication and feedback.
Place the customer at the centre of the reengineering effort; concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service.
Recommendation Contd..Recommendation Contd..
There should be uniformity and standardisation of goal and objective to achieve in BPR project.
BPR must be accompanied by strong communication process
During BPR process employee should be provided a required skill set training.
Include key personnel and function as early as possible
Start with small.
Our conclusion…Our conclusion…
Our conclusion…Our conclusion…Our conclusion…Our conclusion…
Change is inevitable in today’s competitive world. Organisation has to be ready for continuous change for success. However, the most important factor which makes organisation successful in the race is how fast and consistently they can adopt change.
Any questions?Any questions?
ReferencesReferences ReferencesReferences Adesola, S. and Baines, T. (2005), “Developing and evaluating a
methodology for businessprocess improvement”, Business Process Management Journal, Vol. 11 No. 1, pp. 37-46.
Alavi, M. and Yoo, Y. (1995), “Productivity gains on BPR: achieving success where others have failed”, Information Systems Management, Vol. 12 No. 4. pp. 43-7.
Al-Mashari, M. and Zairi, M. (2000), “Revising BPR: a holistic review of practice and development”, Business Process Management Journal, Vol. 6 No. 1, pp. 10-42.
Attaran, M. (2003), “Information technology and business-process redesign”, Business Process Management Journal, Vol. 9 No. 4, pp. 440-58.
Aversano, L., Canfora, G., Lucia, A.D. and Gallucci, P. (2002), “Business process reengineering and workflow automation: a technology transfer experience”, The Journal of Systems andSoftware, Vol. 63, pp. 29-44.
ReferencesReferencesReferencesReferences Beer, M., & Walton, A. E. (1987). Organization change and
development. Ann. Rev. Psychol., 38, 339-367. Berger, L. A., Sikora, M. J., & Berger, D. R. (1994). The change
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London: SAGE Publications. Chiplunkar, C., Deshmukh, S.G. and Chattopadhyay, R. (2003),
“Application of principles of event related open systems to business process reengineering”, Computers & Industrial Engineering, Vol. 45, pp. 347-74.
Crowe, T.J., Fong, P.M. and Zayas-Castro, J.L. (2002), “Quantative risk level estimation of business process reengineering efforts”, Business Process Management Journal, Vol. 8 No. 5, pp. 490-511.
Dawson, P. (2003). Understanding organizational change. London: SAGE Publishers.
Dunphy, D., Griffiths, A., & Suzanne, B. (2003). organizational change for corporate sustainability. London: Routledge.
ReferencesReferencesReferencesReferences Fadel, K.J. and Tanniru, M. (2005), “A knowledge-centric
framework for process redesign”, 2005 ACM SIGMIS CPR Conference on Computer Personnel Research, Atlanta, GA, pp. 49-58.
Guimaraes, T. (1999), “Field testing of the proposed predictors of BPR success in manufacturing firms”, Journal of Manufacturing Systems, Vol. 18 No. 1, pp. 53-65.
Lindsay, A., Downs, D. and Lunn, K. (2003), “Business processes – attempts to find a definition”, Information and Software Technology, Vol. 45, pp. 1015-9.
Lippitt, G. L., Langseth, P., & Mossp, J. (1985). Implementing organizational change. San Francisco: Jossey-Bass Publishers.
London, M. (1988). Change agents. San Francisco: Jossey-Bass Publishers.
Mintzber, H., & Westley, F. (1992). cycles of organizational change. Strategic Management Journal, 13, 39-59.
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Porras, J. L., & Robertson, P. J. (1994). Organizational change and organizational development. In M. D. Dunnette, & L. M. Hough (Eds.). Handbook of industrial and organizational psychology. 3, 720-822.
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Vidovic, D.I. and Vuhic, V.B. (2003), “Dynamic business process modelling using ARIS”, IEEE 25 International Conference Information Technology Interfaces (ITI), Pula, pp. 607-12.
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Thank you!!!Thank you!!!
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