IS 788 [Process] Change Management

IS 788[Process] Change Management • Wednesday, August 29 • Current event • Lecture • ‘Failed Project’ presentation and discussion IS 788 1.2

Increasing rate of process change • Technology • Web-enabled processes • Mobile (and tomorrow?) • Supply chain emphasis • Data mining (more information, more quickly to define change) • Competitiveness • Healthy organizations continuously seek improvement – typical process redesigns yield 20% (time, $) • China, India, EU IS 788 1.2

Increasing rate of process change • Governmental mandates • Inter-healthcare provider compatibility • Homeland Security – i.e. new worker status validation legislation • Sarbanes-Oxley • As of 2003, 82% of US companies were involved in significant process redesign IS 788 1.2

Changing processes • Its been around forever • Adam Smith’s pin factory • Fredrick Taylor • Henry Ford • Term du jour – Process _____ • Reengineering (hot then not) • Redesign or design • Improvement IS 788 1.2

Beyond stopwatch and clipboard • Top organizations have progressed well beyond ’50’s style industrial engineering (efficiency experts) • Multiple methods have been developed for multiple types of processes • Repeatability of process change based on CMM for software development – i.e. treat process change as a development project • OMG has developed a process model based on CMM IS 788 1.2

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Different problems, different techniques • Process Improvement • Incremental (continuous) change, i.e. Six Sigma, TQM • Process design (or redesign): • major effort whether entirely new or radical change as per the original notion of BPR • Process automation • New processes emerge continually. They are usually manual at first and then automated as transaction volume mounts IS 788 1.2

!! Alignment !! • Just as for IT projects, many of which are process change assist efforts, process changes should always be aligned with organizational goals • Just as for IT projects, this frequently is not the case! • Local optimization, global suboptimization • Lack of organizational architecture or coherent, explicit mission IS 788 1.2

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Organizations as systems • We will discuss two different ‘lenses’ or ways of viewing an organization: • As a dynamic, self organizing system • As a machine • The two views generate radically different mechanisms for implementing change ;-) IS 788 1.2

The ‘ol value chain: how goods get produced and marketed IS 788 1.2

The most significant processes span the value chain • In the beginning there were functional centers. They make sense to workers and managers and have value, so it is unlikely they will fade away. • However, processes naturally span functional centers and we are still learning how to build and manage these processes IS 788 1.2

A simple cross functional process IS 788 1.2

Workflow and ERP • Computer based workflow systems move information based work artifacts among employees and monitor the progress. Insurance companies were the first big users. • Harmon suggests that ERP systems (modular IT applications) are a form of worklflow. IS 788 1.2

IT and Process Change • Most process changes are initiated by non-IT personnel • Some processes are not amenable to assistance by information technology • However, “Increasingly IT is being asked to anticipate new business goals in order to assure that its infrastructure will be ready to respond…” IS 788 1.2

IT and Process Change • “… IT is increasingly relying on its own enterprise modeling and business modeling techniques.” • Even in large organizations IT can be left out of top-level strategizing. • Even in progressive organizations, management techniques for coordinating IT with business strategy are still developing (see p. 38) IS 788 1.2

The right tool for the job IS 788 1.2

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IS 788 [Process] Change Management