Organizational Change and Business Process Reengineering (Session 17-18)
Organizational
Project Management Maturity Model (OPM3)
•
Seeking
to create a framework within which organizations can re-examine their pursuit
of strategic objectives via Best Practices in organizational project management
•
The
OPM3 model is a three-step continuous improvement process.
–
Step 1: Knowledge
–
Step 2: Assessment
–
Step 3: Improvement
Benefits
of OPM3
•
Helps
organizations identify and deliver the right projects to advance their
strategy.
•
Improved
project performance and return on investment - Isolates process improvements
while forcing organizations to consider external pressures increasing
operational and organizational efficiency
•
Helps
the organization align its strategy with the projects that sustain business
success
•
Mitigates
operating costs by keeping projects aligned to business strategy
BPR
Methodology
•
Preparation—Set
goals and vision, identify teams, and develop an inventory of processes that
need to be evaluated.
•
Define
the “as is” process and evaluate cross-organizational issues.
•
Map
out “to be” processes based on best practices (i.e., related to ERP).
•
Test
and measure new processes based on meeting goals and vision.
•
Re-evaluation—revise,
adjust to improve processes.
•
Preparation-Drivers
behind the need for BPR:
•
Implementing
a current purchased ERP system
•
Automating
current manual or error prone processes
•
Improving
service to customers
•
Streamlining
current processes to decrease time to market
•
Participating
in or conducting e-Marketplaces
•
Reducing
costs
•
Addressing
accountability
•
Conducting
e-Procurement
•
“As
Is”
•
Working
with the vision and goals, the functional teams must define the existing
processes.
•
Need
both a written description and graphical depiction of each and every process.
•
“To
Be”
•
This
phase addresses timing of processes and the changes needed to meet the original
set of goals.
•
Testing
and Measurement
•
The
testing and validation of each process is necessary to ensure that a step was
not missed or that a process was not achievable.
Business
Process Management
•
BPM
can be defined as:
–
“A
management discipline that treats processes as assets that directly contribute
to enterprise performance by driving operational excellence and business
process agility”
–
BPM
employs methods, policies, metrics, management practices and software tools to
continuously optimize the organization processes to improve business
performance against goals and objectives
Difference
between BPR and BPM
Best Practices of BPM
•
BPM
systems help managers in understanding the working of the business processes
better so as to manage them more efficiently
•
Successful
BPM implementation requires separating the following:
–
Human
Intensive Processes - These processes are also known as “knowledge work.” They
depend on people to do the work.
–
System
Intensive Processes - These processes involve a large number of automated transactions
each day that do not require human judgment
Benefits
of Implementing BPM
•
BPM
software aids in facilitating communication and synchronization resulting in
high productivity.
•
The
employees become more efficient, because the workflow bottlenecks are removed
using BPM software and thereby reducing the idle time of the employees.
•
BPM
software helps companies to cut costs.
•
Employees
feel better to work in an organized business processes architecture that was
created using BPMS.
•
Improved
workflow results in better-quality products and services and thus makes
customers happy.
Major
Features of BPM
•
Process
modeling and simulation—Users can use the software to design processes that
need automation.
•
Systems
integration—BPM software lets other information systems like ERP to be
connected to the processes, and hence information can flow between the systems.
•
User
interaction and collaboration—BPMS has Web forms and other user interfaces to
help the user to enter inputs and make other changes to the process.
•
Process
execution and monitoring—BPMS lets job to be routed through the process steps
and sends notifications electronically and also tracks performance indicators
of processes.
The Four
Rs of Process
•
Roles—establishing
a set of defined user roles that will not change with employee absences or
departures
•
Relationships—identifying
the interactions necessary to complete a process
•
Rules—developing
a fixed set of process steps that will be followed in most situations
•
Routing—electronically
transferring forms and documents for review, approval, and so on.
