ASSIGNMENT OF ORGANIZATION CHANGE AND
DEVLOPMENT
SUB. TO:- MISS. JASCHETAN (LEC.)
SUB. BY:- SUMIT KUMAR
ROLL NO. – R1814A08
SEC.- R1814
REG. NO:- 10801876
Introduction
For many companies, the competitive field has been reshaped significantly during the past
years. The globalization of markets, the current economic recession, new customer requirements
for product- and service quality, as well as new methodologies and tools for system analysis and
-design in dynamic environments. Many leading companies have therefore launched large-scale
efforts to deliver greater customer value by "reengineering" their businesses, "customerizing"
their business processes. Beyond that, all changes have to be performed in respect to the aspects
of "Total Quality". As the advocates of BPR claim it may, if done well, deliver extraordinary
gains in speed, productivity, and profitability. In their striving for competitive advantage,
reduced costs and increased profitability.
Business Process Reengineering (BPR) services bridge the gap between the existing and the
desired state of your business. The BPR exercise shall be carried out to satisfy the needs and
“wants” of your customers.
BPR is a method to radically redesign processes and redirect resources in order to achieve
dramatic improvements in service and customer satisfaction. This often results in reduced cost,
reduced time, or improved quality. The two cornerstones of any organization are the people and
the process. If the process is cumbersome, labor intensive, antiquated, or unnecessarily
complicated, despite the motivation and hard work of individuals, the organizational
performance may appear to be poor or the service provided expensive. If the organizational
infrastructure is too hierarchical or employees are not empowered to make some decisions,
resources may be improperly assigned. This can lead to poor performance, increased cost, or
decreased customer satisfaction. BPR relies upon questioning, challenging, evaluating, and
redesigning every element of an organization’s operational process. BPR does not always
involve widespread changes in organizational structure. It does, however, require radical changes
in process.
Successful organization :- Mahindra & Mahindra Ltd.
Problem :- M&M'S PROBLEM PLANT
In the mid-1990s, India's largest multi utility vehicle (MUV) and tractor manufacturer
M&M was facing serious problems at its Igatpuri and Kandivili plants in Maharashtra.
The plants were suffering from manufacturing inefficiencies, poor productivity, long
production cycle, and sub-optimal output. The reason: highly under-productive, militantly
unionized, and bloated workforces .
The work culture was also reportedly very unhealthy and corruption was widespread in
various departments.
M&M also tried to implement various voluntary retirement schemes (VRS), but the
unions refused to cooperate and the company was unable to reduce the labor force.
OD consultant :-
M&M was the developed Business Process Reengineering (BPR) programs with the help of the
UK-based Lucas Engineering Systems .
BPR PROGRAME:-
Common Steps when Performing BPR
Project Phases Required For Successful BPR:
Phase 1: Begin Organizational Change
Phase 2: Build the Reengineering Organization
Phase 3: Identify BPR Opportunities
Phase 4: Understand the Existing Process
Phase 5: Reengineer the Process
Phase 6: Blueprint the New Business System
Phase 7: Perform the Transformation
Phase 1: Begin Organizational Change
Activities:
- Assess the current state of the organization
- Explain the need for change
- Illustrate the desired state
- Create a communications campaign for change
Phase 2: Build the Reengineering Organization
Activities:
- Establish a BPR organizational structure
- Establish the roles for performing BPR
- Choose the personnel who will reengineer
Phase 3: Identify BPR Opportunities
Activities: - Identify the core/high-level processes
- Recognize potential change enablers
- Gather performance metrics within industry
- Gather performance metrics outside industry
- Select processes that should be reengineered
- Prioritize selected processes
- Evaluate pre-existing business strategies
- Consult with customers for their desires
- Determine customer's actual needs
- Formulate new process performance objectives
- Establish key process characteristics
- Identify potential barriers to implementation
Phase 4: Understand the Existing Process
Activities:
- Understand why the current steps are performed
- Model the current process
- Understand how technology is currently used
- Understand how information is currently used
- Understand the current organizational structure
- Compare current process with the new objectives.
Phase 5: Reengineer the Process
Activities:
- Ensure the diversity of the reengineering team
- Question current operating assumptions
- Brainstorm using change levers
- Brainstorm using BPR principles
- Evaluate the impact of new technologies
- Consider the perspectives of stakeholders
- Use customer value as the focal point
Phase 6: Blueprint the New Business System
Activities:
- Define the new flow of work
- Model the new process steps
- Model the new information requirements
- Document the new organizational structure
- Describe the new technology specifications
- Record the new personnel management systems
- Describe the new values and culture required
Phase 7: Perform the Transformation
Activities:
- Develop a migration strategy
- Create a migration action plan
- Develop metrics for measuring performance during implementation
- Involve the impacted staff - Implement in an iterative fashion
- Establish the new organizational structures
- Assess current skills and capabilities of workforce
- Map new tasks and skill requirements to staff
- Re-allocate workforce
- Develop a training curriculum
- Educate staff about the new process
- Educate the staff about new technology used
- Educate management on facilitation skills
- Decide how new technologies will be introduced
- Transition to the new technologies
- Incorporate process improvement mechanisms.
IMPACT OF PROGAME :-
An exercise was initiated to assess the potential benefits of implementing BPR and its effect
on the unions.
M&M's management was not surprised to learn that the unions expressed extreme
displeasure at the decision to implement BPR and soon went on a strike. However, this
time around, the management made it clear that it would not succumb to union demands.
Soon, the workers were surprised to see the company's senior staff come down to the
plant and work in their place. With both the parties refusing to work out an agreement,
observers began casting doubts on the future of the company's grand plans of reaping the
benefits of BPR.
FAILURE ORGANIGASTION :- U.S. telecommunications company
REASON
The senior management were short of Business Process Reengineering experience, because of
which continuity and stability of leadership was damaged badly. There were many changes in
plans, once they were implemented. Lack of communication further created huge problems
thereby putting undue pressure on employees to perform. Moreover, the employees didn’t have
enough training to feel confident with new business process change. Such organisational factors
bring unseen problems therefore restricting the growth plans of companies.
Some of the KEY reasons why companies have failed to achieve true benefits of BPR
include:
Focus on fixing a process instead of changing it.
Ignorance of not looking into other key business areas while focusing on process redesign
(eg: labour relationships, reward system, authority and redefinition of responsibilities)
Negligence of people’s beliefs and values.
Getting biased due to strong organisational culture which prevents re-engineering of
legacy processes.
Inability of distinguishing between reengineering and other business improvement
initiatives (eg: strategic alignment, quality improvement innovation, empowerment, customer-
supplier partnerships etc.)
Primarily focusing on design without giving much thought on its implementation.
Motive of achieving process re-engineering without making anyone unhappy.
Often companies get engrossed thinking about re-engineering business processes. They
eventually get involved so deeply refining business processes that they start losing the grip on
key business areas to focus simultaneously.
REFRENCE:-
www.zimbio.com.
www.kmbook.com/bpr.htm
hosteddocs.ittoolbox.com/SB41806.pdf
