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Module 5. Managing Organizational Transformation

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.

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Module 5. Managing Organizational Transformation

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

  2. 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.

  3. 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

  4. 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.

  5. 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

  6. 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.

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

  8. Change Motivatorshttp://www-staff.mcs.uts.edu.au/~jim/bpt/s97l8.html · Pain, hope and uncertainty · Coordination and cooperation · Cultural and paradigm shifts · Behavioral change · Duration of change

  9. Components of Change http://www-staff.mcs.uts.edu.au/~jim/bpt/s97l8.html • 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

  10. 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

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