Final Afternoon
- 1. IN SEARCH OF A NEW DIRECTION Integrated by: Chandan Bhatwadekar S2632604 Mohamed Abdul Muhsin S2634110 Paola Gonzalez S2675202 Seungwon Seo S2633711 Change and Business Process Reengineering
- 2. AgendaAgenda An overview of Change Management In depth literature review of Business Process Reengineering (BPR) Case-study Recommendation Conclusion
- 4. 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)
- 5. Levels of change within an organizationLevels of change within an organization 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
- 6. What motivates change in anWhat motivates change in an organisation?organisation? Internal External Organisation 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
- 7. Three steps to succeed…Three steps to succeed… UnfreezingUnfreezing ChangingChanging RefreezingRefreezing 11 22 33 Burke, 2002
- 8. UnfreezingUnfreezing 11 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.
- 9. ChangingChanging 22 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
- 10. RefreezingRefreezing 33 This is the last stage Involves the integration of the change for organizational members through new behavior, feedback and reward, and interpersonal proliferation.
- 11. Roberson and PorrasRoberson and Porras Two views to characterize organizational change: PLANNEDPLANNED UNPLANNEDUNPLANNED FIRST ORDERFIRST ORDER Developmental change Evolutionary change SECOND ORDERSECOND ORDER Transformational change Revolutionary change Category Order
- 13. Success 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.
- 14. 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)
- 15. 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)
- 16. Process mappingProcess mapping IdentifyingIdentifying Process for reengineeringProcess for reengineering Understanding theUnderstanding the selected processselected process Defining keyDefining key performance objectivesperformance objectives Designing new processDesigning new process TestingTesting IMPLEMENTATIONIMPLEMENTATION Application of BPRApplication of BPR To ensure a success in BPR project it’s advisable to follow to seven steps approach formed by Shields J. 11 22 33 44 55 66 77
- 17. Process mappingProcess 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. 11
- 18. IdentifyingIdentifying Process for reengineeringProcess for reengineering 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”. : 22 Feasibility 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
- 19. UnderstandingUnderstanding the selected processthe selected process 33 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.
- 20. Defining key performanceDefining key performance objectivesobjectives 44 Key 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.
- 21. 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. 55
- 22. TestingTesting PDSA model for process improvement Is important to test before putting into final practice 66 plan Do Act Study Langley et al.(1996)
- 23. ImplementationImplementation Once the process is tested and the practical problems are identified in testing the new process can be rolled out. 77
- 24. BPR Success factorsBPR Success factors BPR Success factors Egalitarian Leadership Collaborative working environment Top management commitment 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 and trust Teamwork performance Cooperative environment Recognition among employees Sufficient Knowledge about BPR projects Realistic expectation of BPR results Frequent communication with BRP team users New reward system Performance measurement Employee empowerment Timely training and education The role of IT Use of up-to-date communication technology Adoption of IT
- 25. BRP Failure factorsBRP Failure factors BPR 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
- 26. Croydon Council Case study “In search of a new direction”
- 27. 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.
- 28. 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.
- 29. 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
- 30. 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 tasks Exploring alternative delivery models including shared services with other councils Reducing the number of full time employees from 125 to 92
- 31. 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
- 32. TheThe 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.
- 33. 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
- 34. Before… (The Croydon Way)Before… (The Croydon Way) Personnel Department 8 Personnel Department 7 Personnel Department 6 Personnel Department 5 Personnel Department 4 Personnel Department 3 Personnel Department 2 Personnel Department 1 CROYDON COUNCIL
- 35. After… (the BPR way)After… (the BPR way) Croydon Organisation Development Director (Strategic HR Department) Health and Safety HR Policy HR Consultancy A Business Unit Organisation Development
- 37. 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.
- 38. 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.
- 39. Our conclusion…
- 40. 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.
- 41. Any questions?
- 42. 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.
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- 46. Thank you!!!