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Change quadrants, Salvador Trinxet

Change quadrants, Salvador Trinxet

Then management tools and practices that will improve your business

Title: Key management models

Author: Steven ten Have Wouter ten Have, frans Stevens and Marcel van der Elst with Fiona Pol- Coyne

Isbn:-10: 0-273-66201-5

Isbn-13: 978-0-273-66201-3

Editorial: Prentive Hall , Financial Times

Text:

The change quadrants model helps management to define an approach for successfully managing organizational change. The change quadrants can be useful in determining the change agents, identifying active partici­pants in the change process, and establishing the scope of change and the timing in order to maximize the success of change efforts.

The basic premise is that the approach for change depends on whether an organization is ‘warm’ or ‘cold’, and whether the change is ‘warm’ or ‘cold’:

■ A cold organization is one where rules, regulations, systems, structures and procedures drive direction, control and co-ordination to get results; there is little or no intrinsic willingness to (out)perform. In a warm organization, however, it is shared norms and values, and a common understanding of direction that make the organization work.

■ A cold change is the result of an objectively discernible situation or emergency, such as a near bankruptcy, a drastic drop in market share, revenues, profits or an unavoidable (new) competitive threat. A warm change, on the other hand, is primarily driven by personal and professional ambitions.

Based on the various warm/cold combinations of organization and change, there are four possible change strategies: intervention, implementation, transformation and innovation.

When to use it

The model of change quadrants is qualitatively constructed for each com­pany, drawn up on the basis of interviews with key figures within the organization. Besides the warm/cold typology, our experience with change processes has revealed several underlying dimensions that also need to be investigated: necessity of change, momentum, resistance to change, cul­ture and empowerment.

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Change quadrants, Salvador Trinxet

Business process redesign, Salvador Trinxet

Business process redesign, Salvador Trinxet

Business process redesign (BPR) gurus Hammer and Champy (1993) define BPR as the fundamental reconsideration and radical redesign of organizational processes, in order to achieve drastic improvement of cur­rent performance in cost, quality, service and speed. Value creation for the customer is the leading factor for process redesign, in which information technology often plays an important role.

There are generally five important rules to keep in mind with any BPR project:

  1. Determine strategy before redesigning.
  2. Use the primary process as a basis.
  3. Optimize the use of information technology.
    1. Organizational structure and governance models must be compatible with the primary process.

In addition, there is a general condition for success, namely that manage­ment and employees must participate.

Often, the redesign entails a ‘back to square one’ approach. In an effort to allow discussion of any new views on how to design the organization, the existing organizational structure and processes are considered ‘non­existent’, or irrelevant in the redesign.

When to use it

Before engaging in a BPR project, the organization must come to the real­ization that there is a need for BPR. Consequently, the very first step is determining the scope of the BPR project, or even more fundamentally, deciding if there is a need for BPR at all. The BPR team should determine this need by assessing indicators such as:

■   numerous conflicts within (parts of) the organization;

■   unusually high frequency of meetings;

■   excessive amount of non-structured communication (memos, e-mails, announcements, etc.).

 

Successful BPR projects executed by Berenschot consultants have yielded such remarkable results as:

–       70% reduction in order delivery time

–       60% reduction in average inventory level

–       25% increase in revenues

–       50% reduction in indirect labour

–       98% delivery reliability, up from 70%.

 

 

One way to determine whether or not there are too many conflicts or whether or not meetings and additional communication are excessive is by benchmarking the organization or department with another.

Having established the need, the next step in the BPR process is the redesigning of (part of) the organization in accordance with strategic requirements. Ask:

–           What is the focus of our efforts (think about products, services and target customers)?

-What are the critical success factors?

– How can we achieve maximum efficiency based on the required output levels?

The third step is determining the required management of the newly designed organization. Typical questions here are:

–    How can we ensure that processes will function as intended?

–    How can we measure performance?

–    How can we adjust for improvements, if needed?

–    How can we compensate or reward?

The last step comprises the implementation of the new organizational structure, the installation of management and procedures, and the inte­gration of the organization’s work methods into its environment.

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Business process redesign, Salvador Trinxet

Benchmarking, Salvador Trinxet Llorca

Benchmarking, Salvador Trinxet Llorca

Book: Key management models

Author: Steven ten Have Wouter ten Have, frans Stevens and Marcel van der Elst with Fiona Pol- Coyne

Isbn:-10: 0-273-66201-5

Isbn-13: 978-0-273-66201-3

Editorial: Prentive Hall , Financial Times

The big idea

Benchmarking is the systematic comparison of organizational processes and performances in order to create new standards and/or improve processes. There are four basic types:

-internal – benchmarking within an organization, e.g. between business units;

-competitive – benchmarking operations and performance with direct competitors;

-functional – benchmarking similar processes within the broader range of the industry;

-generic – comparing operations between unrelated industries.

All types of benchmarking can be very rewarding: they can provide new insights into strengths and weaknesses of (parts of) an organization, illus­trate possible improvements, objective norms, new guidelines and fresh ideas.

When to use it

Much has been written on the methodology of the benchmarking process. Most variations on the basic elements of the methodology are the result of including situational characteristics or explanatory factors to account for differences, forward-looking industry analyses or simply practical issues that arise in certain industries or in communication between benchmark­ing partners and analysts.

Benchmarking entails the following (sometimes overlapping) steps:

–          Determine the scope.

–        Choose the benchmark partner(s).

–     Determine measure(s), units, indicators and data collection method.

–     Collect data.

–     Analyse the discrepancies – get facts behind the numbers.

–     Present the analysis and discuss implications in terms of (new) goals.

–     Make an action plan and/or procedures.

–     Monitor progress in ongoing benchmark

Ideally, the benchmarking partner is considered to be performing at least equally as well or better. Potential partners are often identified through industry experts and publications.

Quite often, differences in products, processes and management make comparison difficult, if not impossible. Berenschot uses the BETTI® Benchmark model, depicted in the figure. This particular variation of benchmarking accounts for explanatory factors or situational characteris­tics that define the company’s situation, e.g. a complex product or very wide assortment. Performance indicators can be adjusted using the situa­tional characteristics, to allow for a ‘fair’ comparison and derive the improvement potential for each particular performance indicator.

An example of such an explanatory factor is product complexity. If your company has a higher product complexity, e.g. in terms of number of parts or actions, than that of the benchmark partner, that could (partially) explain a lower on-time completion reliability. Not only can an analyst use multiple benchmarks to derive an approximation of the ‘benchmark’ for your company, the very determination of the explanatory factor triggers an improvement opportunity. In this example, a lower number of parts or actions could increase on-time completion reliability.

Site visits to the benchmark partner, as well as mutual interest in the benchmarking project increase the rate of success of benchmarking signifi­cantly. Warning: the buzzword to describe unprepared or non-specific benchmarking visits is ‘industrial tourism’.

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Benchmarking, Salvador Trinxet Llorca