Page 151 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Organization Change and Development

Notes Step 4: Developing deep process knowledge
Step 5: Identifying opportunities for improvement
Step 6: Identifying world class best of breed and customer requirements
Step 7: Creating new process design
Step 8: Implementing new process

The above steps are explained in details:
Step 1: Start from the Top
Reengineering is a cross-functional strategy. Customer service is horizontal. Only top
management can ensure the cooperation and resources necessary to properly. Reengineer business
processes.
Step 2: Get the Strategy Straight
Reengineering should get to the strategy straight without going the other way around like
identifying the vision, mission, strategy or the critical success factors.
Step 3: Identify Core Business Processes
Determining what core business processes are and using the value chain to look at the suppliers,
customers, and customer's customer. The customer benefits are also to be thought about.
Step 4: Develop deep Process Knowledge
This can be done by establishing current performance and using process mapping to understand
all low level processes, relationships, information requirements, interfaces to customers and
suppliers.

Step 5: Identify Opportunities for Improvement
This can be done by identifying reasons for poor performance using entitlement and creative
techniques for thinking outside the box. Hammer s Seven Principles, forced analogy technique,
and intrinsic value technique are to be used.
Hammer's seven principles:
1. Automate around outcomes not tasks let one person do all the steps.
2. Have those who use the output of a process perform the process.

3. Subsume information processing work into the real work that produces the information.
4. Treat geographically dispersed resources as if they were centralized.
5. Link parallel activities instead of integrating their results.
6. Put the decision point where the work is performed, and build control into the process.
7. Capture information once, at the source.
Step 6: Identify World Class and Customer Requirements

This has to be done by using Benchmarking and Quality Function Deployment Methodology,
surveys, etc.
Step 7: Create New Process Design
This can be done by emphasizing end to end solutions and ensuring control at the source,
restructuring reward and incentive system, etc.
Let customers drive performance standards. Only value added processes are to be incorporated.

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