Advantages during change Good at implementation once goals are clear Good for specific implementation goals Powerful, impactful Increased energy and sense of purpose Disadvantages during change Does not like change too often Not good for tackling complex topics Poor focus on events after launch Less impactful if influence Team Effectiveness: Note: See Notes for full description on Team Effectiveness (all the team roles, IS2104 Stuff) Team Change: Team Dynamics (See Notes for Benbin’s Team Types) More Similar Reach common understanding sooner Decisions made quicker Greater the possibility of errors through exclusion of possibilities More Disparate Reach common understanding later Take longer to make decisions More and opinions taken into account
Part 2: IT-enabled Business Change 2A – Overview IT can be a driver because there are opportunities for businesses that can trigger change in which IT can serve as an enabler Triggers of Business Change External Internal Survival Changes in government policies Competition heats up New technology emerged Management Change Internal problems New products or services Failure to keep pace or stay ahead will result in loss of competitive edge Change to Stay Ahead Resource VS Capability Resource-based View Considers the firm as a bundle of resources (asset, competence, process, skill or knowledge) Capabilities required to exploit resources for competitive advantage Firm needs to evaluate its internal strengths and weaknesses by asking VRIO: Do the resources/capabilities/ add value? Are they rare? Are they difficult to imitate? Is the firm organized to exploit the potential of the resource/capability? Dynamic Capabilities – An extension of traditional RBV VRIO resources do not persist over time and, hence, cannot be a source of sustainable competitive advantage Hence, firms change constantly to integrate, reconfigure, renew, and recreate its resources/capabilities Change to Keep Pace Institutional Theory Focuses on legitimacy than efficiency as it is believed that gaining legitimacy allows organizations to be rewarded in terms of public acceptance, external support and easier access to resources Isomorphism (Constraining process that forces one unit to resemble others in the same circumstances): Coercive force: Legal environment, e.g. government regulations Mimetic Industry best practices Normative force: Professionalism, e.g. IEEE Role of IS in Organizations: Operational excellence Technology can achieve greater efficiency and productivity Improved efficiency higher profitability New Products, Services, and Business Models IT/IS are enabling tools for new products, services, and business models Customer and Supplier intimacy Serving customer well leads to returning customers ↑ revenue and profits Supplier intimacy lowers costs Improved decision making Better allocation of resources Better response times Better estimations for productions and procurement Note: See Notes for Benefits of Change
Concentrate on getting support from junior employees who will gain from change Change Management Framework Configuration Rationale Executive Change Steering committee Provide direction and approve major change related activities Benefits of having two change steering committees Need for upper level committee so senior managers will not meddle with change Operational Change Committee provides link between upper management and change team Two levels help prevent micromanagement of work Operational Change Steering Committee Consists of several high level managers interested in change, members in change team, strike forces Review work of strike forces Change Management Team Headed by two change leaders with medium or junior level employees as members See Notes for Roles Two change leaders for continuity and prevent burnouts Strike Forces Teams composed of department employees who evaluate current work and develop ideas for change Leader of each strike come from Benefits of performing regular work Ensure faster results from limited time Won’t negatively impact department Benefits of strike leader from disagreeing department
Scope of Change Technology Infrastructure Staffing of the work Business Rules Application Systems Management of the work The work itself Organization Structure Policies/Processes Facilities and location of work Identifying potential areas of change (e.g. where to increase productivity) 3 Step Process: Data Collection Analysis Decision Data Collection You can interview but observations are definitely preferred What Collect information through observations Who Strike forces, Change team at the initial stage Where At the worksite How* Collect information in multiple visits by observing the actual work Use collected information to identify problems with current processes Get validation from employees that they are actual problems. Let them relate the impact Talk with employees about possible solutions. (Some may serve as quick hits) Define short and long-term changes and determine benefits of changes Chart out plan for getting from current to future situations Why Information can be validated immediately Requirements are more precise and complete, Benefits are more tangible Employees become more interested and involved from collaboration Being at the actual site means time is spent more effectively and efficiently *See Notes for Guidelines & more info Analysis Make use of following analysis: Basic information flow for processes Issues in the workflow and where they occur Boundaries between departments Shadow systems workflow Exception workflow Rework workflow Business rules needed Input/output volume Quick hits? To produce the following: Identify current processes and work Determine problems and opportunities (a situation in the business unit where change would be beneficial) Enter opportunities into database Score the combined processes (See Notes for factors to consider) Decision Top 3 based on: Impact if not implemented Tangible benefits Easiest to implement Change objectives alignment Change strategy alignment Time required Scope of change
Install and carry out major change Pilot/Phased Parallel Big Bang Idea Implement in one unit first Roll out to others refinement In parallel to existing process Introduce ALL at once Advantages Limited impact if got problems Low risk Overall implementation can be accomplished in tandem or in parallel Greater time and flexibility to deal with issues Immediate fall back if got issues Opportunity to speed up or slow down the transition Only feasible method Change over process takes least time Disruption limited to changeover and “settling down” period Disadvantages Duration is long Not suitable for operations with high integration Possible substantial differences between groups Require A LOT more effort Same people doing two things ↑ costs & coordination Much greater coordination Continuous monitoring needed to detect problems Super time-critical, very stressful Necessary to create workarounds, shadow systems, and temp patches Note: See for Trade-offs to consider Measure Results Capability Maturity Model: Strong need to optimize software development aspects Six Sigma: (NOT TESTED) Implemented with a focus on problems and opportunities that will yield significant benefits Implementation of a measurement-based strategy that focuses on process improvement and variation reduction rather than checking for compliance against a definition or model Two methodologies: DMAIC (Design, measure, analyse, improve, control): For existing processes that are falling behind DMADV(Design, measure, analyse, design, verify): To develop new processes and Constraints of Measurements When to Measure Anywhere also can. Important thing is consistency and frequency (DICE Article) At the start, onset of change Each stage of quick hits Onset of long term change After long term change Goals Technical Goals: To collect information to satisfy business and political goals Heisenberg Uncertainty Principle: Disturbance in measurements Business Goals Ensure work has not deteriorated or reverted Identify potential additional activities for change Report to management what is going on Political Goals Provide evidence that change effort works and is effective Support management, supervisors, employees to sustain change Support standardized measurements for key processes Constraints Systems: Inability to capture data Information: Type, detail, validity, and amount of data Resources Schedule: No time to collect data Process: Nature of actual work