An Extension and Test of the Communication Flow Optimization Model

1. An Extension and Test of the Communication Flow Optimization Model Ned Kock, Ph.D. Chairperson, Dept. of MIS and Decision Science Texas A&M International University

2. Processes and organized action • Human beings act in an organized fashion • Organized action • Repeatable • Predictable outcomes • Process representations • Ways of representing organized action Source: Boaz & Almquist’s Biological Anthropology

3. Foci of the communication flow optimization model • The communication flow optimization model (Kock, 2003; Kock and Murphy, 2001) is concerned with: • How process redesign practitioners look at organizational processes, and • How that affects the efficiency and success of process redesign projects.

4. This study and the communication flow optimization model • The model has been initially developed based on actual process redesign projects conducted over a period of six years (Kock, 2002), and later validated through several projects conducted at defense contractors (Kock, 2003). • The study described represent and expansion, refinement, and test of the model.

5. Looking at processes through different “lenses” • Several different lenses can be used to look at and understand organizational processes. • Notably, processes can be looked at as: • Sequences of interrelated activities. • Webs of communication interactions.

7. Naturalness of activity representations • Another key argument made by the communication flow optimization model, which may seem paradoxical given the preceding discussion, has been proposed to explain a finding that emerged from the original studies that led to the model. • The argument is that activity flow representations are better aligned with the way in which the human brain has been designed to envision action than communication flow representations.

8. Representation generation H1: Process redesign group members will perceive communication flow representations of business processes as more difficult to generate than activity flow representations.

9. Representation understanding H2: Process redesign group members will perceive communication flow representations of business processes as more difficult to understand than activity flow representations.

10. Identification of opportunities for improvement H3: Process redesign group members will perceive communication flow representations of business processes as more useful in the identification of opportunities for improvement than activity flow representations.

11. Application of process redesign guidelines H4: Process redesign group members will perceive communication flow representations of business processes as more useful in the application of process redesign guidelines than activity flow representations.

12. Visualization of process changes H5: Process redesign group members will perceive communication flow representations of business processes as more useful in the visualization of process changes than activity flow representations.

13. Development of generic information technology solutions H6: Process redesign group members will perceive communication flow representations of business processes as more useful in the development of generic information technology solutions than activity flow representations.

14. Research approach and settings • Action research study of four group-based process redesign projects facilitated in four different organizations. • Two of the organizations were manufacturing companies; one was small, and the other midsized. • Both manufacturing organizations were private and for-profit. • The other two organizations were service organizations, both midsized. • One of the service organizations was private and for-profit, and the other public and not-for-profit. • All of the organizations were based in Northeastern US.

15. Data collection and analysis • Three main types of research data were collected and compiled in connection with the process redesign groups: • Survey instrument answers (17). • Participant observation notes. • Unstructured interview notes (40+).

16. Results: Survey instrument answers Note: The above results were later coded as, for example, SIA.H1, SIA.H2 etc.; or SIA.H10, SIA.H20 etc.; depending one whether they supported the hypotheses or null hypotheses, respectively.

17. Results: Participant observation notes • PON.H1. All groups generated activity flow representations of their targeted processes before they generated communication flow representations. • PON.H4. Of all the 37 process redesign decisions made by the four groups as a whole, 23 process redesign decisions (62.16%) were entirely based on communication flow representations of their target processes. • PON.H6 …

18. Results: Unstructured interview notes • UIN.H4. Most group members perceived communication flow representations as more useful in the application of process redesign guidelines than activity flow representations. They generally explained their perception by pointing out that communication flow representations were better visual aids in the identification of problems in connection with the flow of “data” or “information”, which were more frequently observed, and where process redesign guidelines could be easily applied. This is illustrated by the following quote: “The workflow representation shows a chronological view. Thus, it is easier to conceptualize the process at first. This will give a quick picture in order to understand the process … [however] by utilizing the [communication] flow [representation], it was [easier] to see the excessive data flowing between the customer and the employees of ACD.”

19. Summary of evidence in support and against the hypotheses

20. Accepting or rejection the hypotheses

21. Summary: Variation percentages • For communication flow representations, when compared with activity flow representations: • Perceived usefulness in the identification of opportunities for improvement is about 22% higher. • Perceived usefulness in the application of process redesign guidelines is about 23% higher. • Perceived usefulness in the visualization of process changes is about 34% higher. • Perceived usefulness in the development of generic IT solutions is about 38% higher.

22. Conclusion • The findings are consistent with the formalized version of the communication flow optimization model presented here. • Contrary to predictions based on the model, process redesign group members did not seem to perceive communication flow representations as significantly more difficult to generate or to understand than activity flow representations. • Interestingly, these findings may suggest that communication flow representations may be even more desirable than predicted by the model, since some of the disadvantages associated with them do not seem to be as significant as initially predicted.

23. Final slide Key references • Kock, N. (forthcoming), Systems Analysis and Design Fundamentals: A Business Process Redesign Approach, Sage Publications, Thousand Oaks, CA. • Kock, N. (2005), Business Process Improvement through E-Collaboration: Knowledge Sharing through the Use of Virtual Groups, Idea Group Publishing, Hershey, PA. • Kock, N. and Murphy, F. (2001), Redesigning Acquisition Processes: A New Methodology Based on the Flow of Knowledge and Information, Defense Acquisition University Press, Fort Belvoir, VA. • Danesh, A. and Kock, N. (forthcoming), An Experimental Study of Two Process Representation Approaches and their Impact on Perceived Modeling Quality and Redesign Success, Business Process Management. • Kock, N. (2003), Communication-focused Business Process Redesign: Assessing a Communication Flow Optimization Model Through an Action Research Study at a Defense Contractor, IEEE Transactions on Professional Communication, V.46, No.1, pp. 35-54. • Kock, N. (2001), Changing the Focus of Business Process Redesign from Activity Flows to Information Flows: A Defense Acquisition Application, Acquisition Review Quarterly, V.8, No.2, pp. 93-110.