Chapter 9

1. Chapter 9 Change Management in Business Process Reengineering Reference: Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore. Burke, G. and Peppard, J. (1995). Examines Business Process Re-engineering, Kogan Page Limited, London . Revised Date : November 2013

2. Learning outcomes • To understand the change management process. • To understand the framework that commonly used • To outline the challenge and critical skills involved.

3. Introduction • The management of change is viewed • as a complex and • difficult area • The notion of BPR as a change initiative will be examined and compared to a set of approaches from change management.

4. Framework for Managing Change • Three perspectives have been selected which address differing facets of the change process: • How to affect successful change? • The degree or scope of the change being considered • Approaches to implementation. • These three perspectives highlighted the areas that need to be considered if successful change is to be achieved.

5. Boddy and Buchanan Framework • To evaluate and examine BPR as an approach to affecting change. • Focus at the role of senior management • This framework derived from 3 models • Project management • Participative management • Political perspective Project management Participative management Political perspective

6. Boddy and Buchanan Framework • Project management • Based on the concept of project life-cycle • Involves a clear statement and definition of objectives, responsibilities, deadlines and budgets • Successful change is due to a clarity in the initiatives, effective monitoring and control. • This is to ensure to meet / remain the target. • The project manager’s roles • Focus on the objectives • Control • Monitoring progress • Deals with problems • Etc.

7. Boddy and Buchanan Framework • Participative management • Emphasis on members within the organization who are affected by the changes • A participate in the change initiative - the acceptance level among employees. • Constraints such as lack of time, expertise or resources, politics and etc. • Emphasize on understanding of the process of change, interpersonal and social skills to facilitate it.

8. Boddy and Buchanan Framework • Political perspectives • The resistance based on individual personalities, values or errors in planning and design are easily identified and addressed. • If the resistance occurs due to new patterns of work, relationship and distribution of power, it would be more difficult to predict and to solve. • Successful implementation may require senior management to be sensitive to the power and influence of key individuals or groups.

9. Challenges • Fear of job loss • Myth: reengineering became synonymous with downsizing and worker layoffs • Some company belief in reducing employees number • Some may relocate the affected employees to other division or department.

10. Challenges • Inadequate skills of workers • No BPR effort will succeed without first reeducating and retraining the people who will work with the new process. • Lack of management support • Support from all levels will help to ensure the successful of BPR effort. • Example: the senior management should involve with the campaign or in disseminate the information to the lower level.

11. Challenges • Change of organizational structure and culture • People will react strongly when changes occur on the familiar working and living patterns. • Changes normally takes time. • For IT & BPR- most companies are expecting rapid changes. • It could be due to technology fast change. Whatever technology that you have today may not be your competitive advantage in the market for another year. • With IT, people are expecting a dynamic changes and quick result. • It can happen if supported by adequate skills and support programs

12. Critical Skills • Political skills • Analytical skills • People skills • Leadership skills

13. Summary • The Boddy and Buchanan framework • The challenge in change management. • The critical skills for change management.