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1、organizational transformationcis 654overview and course requirementswhy include a class in organizational transformation (ot) change is a key organizational component when the rate of change inside an organization is slower than the rate of change outside an organization. the role of information tec

2、hnology (it) is key in any transformationa language of change re-engineering re-invention re-building re-making re-organization re-designingimpact on employees in the past five years, have you or any member of your family been laid off, downsized, or otherwise lost a job through no fault of your/the

3、ir own? did employers have more loyalty to their employees ten years ago? twenty years ago?definition of reengineering the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.four key words in the definition1.dramatic (improvement)a.r

4、educed costb.increased speedc.greater accuracyd.greater qualitye.etc2.radicala.radical means going to the root of things.b.instead of fixing what you have and what you are currently doing by imagining that your company doesnt even exit today then create it new?c.in other words, start from a clean sl

5、ate four key words in the definition3.processa. a business process is a set of interrelated work activities with inputs and value-added tasks that produce outputs. b. horizontal work flows that cut across departments or functionsc. evolution leads to isolated “islands” of activityd. sub-optimization

6、 might not be good!four key words in the definition4. redesigna. how the work is done to produce the product or service and deliver it to the customer.b. the starting point for organizational success is well-designed processes.why reengineering? three cs customers: w more sophisticated and demanding

7、 on the products they want. competitionw has become global vs. local, so now instead of just a few, we now compete with thousands! changew instead of the focus on being on how well we operate, but how well we supply the needs and wants of the customer. customer satisfaction! bpr requires a questioni

8、ng of the status quo “the continuity of time sequence” w procedures have a habit of arranging themselves into structures, institutions, and concepts and becoming virtually immortal. simple example: qwerty examples gte (local phone service provider)w maintenance and repair process then-repair clerk,

9、line tester, central office technician, service technician. (slow) nowcustomer care advocate handles it all!s customer focuss 1/2% thennow 70% solved by the person they spoke with originallys 40% resolved while still on lineexamples federal mogul (makes car parts)w to get contracts from car manufact

10、urers they: sales rep visits customer to get specs. hand off specs. to engineer who designed from scratch, pick a place to manufacture this design and use that toolroom, design sent by mail, design sent to toolroom, the part then was sent to customer this process typically took 20 weeks. their worst

11、 competitors took only 10 weeks and the best 6 weeks the auto manufacturer gave feedback as soon as they got the parts, so federal was losing out. nowengineer goes to customer, designs based on previous similar parts and a computer program reconfigures the old parts to the new specs. 3 days to 1 min

12、ute. instead of mail it is all done electronically. use any toolroom that is available. s twenty-week to 18 days, win rate on new proposals 4 times better, profitability more than double. bpr focuses on specific objectives reverse-design process. figure out what you want, then work backwards until y

13、ou get it! backward chaining gte faster repair (customer satisfaction) federal mogul faster design (customer satisfaction)bpr focuses on breakthrough results inherent slackw inventoryw production capabilityw manpowerw working capitalbpr focuses on significant cultural change social changew typically

14、 involves eliminating, consolidating, and otherwise altering work activities.w layoffs and early retirement programs not downsizing or restructuringw or doing less with lessw but, doing more with less what are the negative effects on employees?the top ten ways to fail at reengineering1.dont reengine

15、er but say that you are.2.dont focus on processes.3.spend a lot of time analyzing the current situation.4.proceed without strong executive leadership.5.be timid in redesign.6.go directly from conceptual design to implementation.7.reengineer slowly.8.place some aspects of the business off-limits.9.ad

16、opt a conventional implementation style.10. ignore the concerns of your people.1. dont reengineer but say that you are. abraham lincolns riddle: if you call a horses tail a leg, how many legs does the horse have? just because the term “reengineering” is popular and used often, doesnt mean that is wh

17、at they are actually doing! this can hurt future implementations when you really decide to do it right.w for example, just because you are putting in a new computer system, doesnt mean that you reengineered what you do, you may have only automated the process you are currently doing. not a dramatic

18、improvement!2. dont focus on processes. you cant reengineer an organization only processes in that organization.w you should be able to describe specific inputs and outputs for each onew each process should cross a number of organizational boundaries.w there should be a focus on goals and ends rathe

19、r than actions and means.w the processes, their inputs, and their outputs should be easily comprehensible by anyone in the organization.w all the processes relate to customers and their needs, either directly or as contributors to other processes.3.spend a lot of time analyzing the current situation

20、. you should understand the process, but dont spend too much time on it, because you already know its not good and we are looking for dramatic improvement. look for the “what and the why” not the “how” because the how is going to change.w waste of timew can inhibit change4.proceed without strong exe

21、cutive leadership only a senior executive who deeply believes in the reengineering cause can actually make it happen. reengineering is a top-down phenomenon. leadership support is a must because change is hard and resistance from within will kill it once implementation begins.5. be timid in redesign

22、. reengineering requires bold and imaginative thinking about process design and how work is done. there may already be great ideas lurking in the minds of your employees just waiting for you to ask. create an environment so people can share their radical ideas without fear of ridicule. on company of

23、fered cash for people that came up with a too radical idea, otherwise, they adopted it!6.go directly from conceptual design to implementation it never goes as one plans, so instead try it out in a safe environment. go through a series of intermediate steps and put out the fires as you proceed. you c

24、ould try out a new concept by developing a prototype. you want to catch the major flaws before they actually happen. it can also help you with refining the actual implementation.7. reengineer slowly you should see at least some major improvements in 12 months or you are sure to fail.w executive mana

25、gement will lose faith and funding will dry up.w resistors will gain powerw employees will exhausted from all the change without anything to show for it.w you can lose focusw dont increase the size without very good reason. continually increasing the scope will cause you many delays and therefore fa

26、ilure.8.place some aspects of the business off-limits. if you radically redesign your processes but refuse to change the compensation plan, the structure of the organization, or job titles, then you will certainly fail. everything must be on the table with no limits for change.9.adopt a conventional

27、 implementation style. the old way of planning an implementing must be thrown away. be sure of what you want, figure out how it will be done, then go full steam ahead. make the decision to change and then do it! more like a prototyping.10. ignore the concerns of your people. employees will ask thems

28、elves, “what is in it for me?” no matter how great your idea is, if you dont have the support of your employees you will be in trouble.w empowermentw involvementw compensationleadership: primary ingredient unyielding top management support is a must to see the reengineering through. middle managemen

29、t have made a career of the current system and will resist because they have the most to lose. if the leader isnt the top dog, make sure the top dog isnt biting the leader in the leg. they must have the power and ability to get it done.characteristics of the leader passion for the project and compan

30、y be able to inspire trust be able to inspire confidence exhibit an unusual combination of impatience with the current system and patience when dealing with obstacles and setbacks (perseverance). charisma to get it done. see the need for change early.responsibility of the leader make the decision to

31、 reengineer. make the reengineering succeed.w appoint process owners and specific tasks and provide them with the resources they need.w measurementw making sure everyone follows through by being involved. create an environment where it can succeed.the three ss of reengineering leadership signals: ex

32、plicit communicationsw communication must be relentless.w communication must be simple.w communication must be dramatic. symbols: personal behaviorw if behavior supports the talk, then it is believed, otherwise, it is dismissed. systems: measurements and rewardsw if you dont change what you measure

33、the rewards for improvement, you will not change behavior.the reengineering team: second ingredient reengineering is not a one man show, so we must create a team from the best and the brightest individuals that fit the job. the kinds of people picked must reflect the nature of the endeavor itself. l

34、ets look at what they will do in terms of content, context, and style.content (the task at hand) understanding the old process and customer requirements. inventing a new process design that shatters long-held assumptions. constructing the new process, including fleshing out full details of its opera

35、tions. selling the new way of working and living to the organization as a whole.context (environment) uncertainty: the old way is wrong, and we dont yet have a new way. experimentation: iterative experience. it must be tried in reality, not on paper. pressure: usually needed yesterday so they operat

36、e under conditions of great urgency and intensity.style reengineering is a journey into the unknown. it is about exploration and discovery rather than analysis and knowing. the reengineer lives in a stream of options, alternatives, possibilities. ideas must be formulated before all the facts are in,

37、 tested before the environment is stable, and evaluated fore the results are conclusive. stumbling forward and being comfortable with it.the profile of a reengineer process-orientation holistic perspective creativity restlessness enthusiasm optimism persistence tact team player communication skillst

38、o wrap it up, the perfect member would be a female engineer who has changed jobs frequently and has a background in sales. why?team members share dedication to three things. these three things should come first for all team members and the management needs to create the environment that it can happe

39、n.w the process that is being reengineered.w the needs of the customer of that process.w the team itself.team building caring: having an environment that allows open and honest communication. daring: encouraging everyone on the team to be innovative and adventurous, and to ask the hard questions. sh

40、aring: common objectives, there are no winners on a losing team.avoid commonplace dysfunctional behaviors by making them known not listening idea killing personal attacks silence over sharingteam management career paths: so, they know what will happen to them when the job is done. compensation: bonu

41、s for job well done. celebration: fun time. communications: the more the merrier. care and compassion: take care of them!do you need help with the reengineering process?1. what do consultants do?a. heads: bring knowledge and brain powerb. hearts: deal with the motivation and perseverance of getting

42、the job done.c. hands: actually do some of the jobs of reengineering.pros and cons of consultants prosw more experience that will help you avoid pitfalls.w getting access to essential skillsw third-party objectivity consw become dependent on them.w cost $w may take you down the wrong road. not accou

43、ntable.assumption busting for fun and profit rule of whacko: any valuable new process design will at first appear to be whacko. that is, if someone approaches you with a proposal for a new process design that strikes you as interesting and plausible, our advice is: throw it away. breaking assumption

44、s: surfacing and questioning the underpinnings of the old process, the reasons why it was designed to work the way it did.assumption busting: continued ford accounts payable example:w purchase order from purchasing, receiving document from the receiving dock, and an invoice from the vendor: checked

45、to see if they all match and if they did, issue a check.w now, the person on the receiving dock takes possession of the goods, checks to see if they match against an order, and if so, authorizes payment, if not they dont accept. why wasnt this done all along? the old way was never designed, it just

46、happened. didnt have the technology to do it the new way. based on assumptions: such as, dock workers cant or shouldnt authorize payments! etc.assumption busting: continued gte: w one individual couldnt do it all, deal with customers, test the lines, and dispatch service technicians. federal mogul:

47、w every design was uniquew that engineers couldnt interact with customersw that a part had to be tooled in the same plant where it was to be made.assumption busting: continued how do we go about identifying faulty assumptions from ones that are still valid?w problem: first identify the problem that

48、you are currently having, such as fords accounts payable being too slow.w rule: then identify the rule or rules that allow that problem to occur. ford example, too labor intensive.w assumption: the ideas we take for granted that caused the rules to happen. ford example, dock workers cant authorize p

49、ayment because they dont have the information or authority.assumption busting: continued ibm credit corporation example:w one person checked the applicants credit ratingw another decided what interest rate to chargew a third person put together the lease agreementw and a fourth prepared the response

50、 to the customer. what is the underlying assumption here? assumption busting: continued example, a consumer goods maker distributed its products to retailers through a network of route drivers.w a driver would come to a store, see what was missing from the shelf, go back to the van to pull inventory

51、, bring it into the store, fill out a manifest for the store managers signature, and then send the form to headquarters for processing and billing. all of this depended on what was inventoried in the truck, which was hard to manage and very expensive to keep.assumption busting: continued problem: th

52、e company is carrying lots of inventory on the trucks. rule: the drivers decide what is needed after they arrive at the store. assumption: the company doesnt know what is missing from the shelf until the driver checks. instead, use prediction models to predict what will be needed, pack it all up and

53、 shrink wrap the items for each store, load the trucks in proper order and have preprinted invoice to drop off with retailer. more efficient and reduced inventory. the hardest part of reengineering change!w getting people to let go of their old ways and embrace new ones. all deal with people in the

54、organization and the ultimate goal of customer satisfaction.w jobsw organizational structurew measurement and rewardsw career pathw management rolesw interpersonal relationshipsw value systemsprinciples of change resistance to change is natural and inevitable. resistance doesnt always show its face.

55、 resistance has many motivations. theres no one way to deal with resistance: manage it!dealing with change the 5 is are all based on communication! incentivespositive and negative informationdispel uncertainty and fear interventionone-on-one connections indoctrinationmake change seem inevitable invo

56、lvementmake people part of the effortimpediments to communication disbelief: trustworthy? actions speak loud. false familiarity: got the t-shirt already! fear of layoffs: fear of the unknown. the rumor mill: real source, no secrets! sloppy execution:w incomprehensibility,w abstractionw complexityw c

57、lichssloppy execution incomprehensibility: speak plain non-technical abstraction: be specific and use stories. complexity: dont be too specific, you will bore them to death! clichs: “we are in a win win situation!” dont be trite! dont over communicate!ten principles of reengineering communications1.

58、segment the audience2.use multiple channels3.use multiple voices4.be clear5.communicate, communicate, communicate6.honesty is the only policy7.use emotions, not just logic8.heal, console, encourage9.make the message tangible10. listen, listen, listenten principles (continued)1. segment the audience:

59、 a. divide large diverse markets into smaller and more homogeneous segments.b. all reengineering messages must be tailored to the specific characteristics and requirements of each constituency.c. micromarketing is the name of the game.ten principles (continued)2. use multiple channels of communicati

60、on.a. use a mix of presentations, articles, comic strips, videos, design simulations, logos, etc.b. variety counts and so does originality.c. have a reengineering motto, give out hats, t-shirts, etc.ten principles (continued)3. use multiple voices:a. by using different people to deliver the reengine

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