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Strategy and Transformation

[Part Three] Reengineering for the 21st Century Business – Change Management

In order for business process reengineering to yield positive results for a firm, two conditions are necessary:

  1. A business process engineer must have identified the current (as-is) process state and created a more efficient future (to-be) process
  2. The business process change must appeal to and become widely adopted by the end users that drive the firm on a day-to-day basis
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A shiny new software program has little value unless it is utilized; IT change for its own sake drains money and time with little to show for it. The Change Management Learning Center explains the intersection of engineering change and psychological change along with their history in the dynamic of the workplace. According to the authors, the centerpiece of workplace values has shifted from a culture of control, consistency and predictability to one of employee ownership, empowerment and customer service; with the value shift comes important ramifications upon the expectations of leadership during a business change.

The new values of business today require a different approach to the way businesses change. The response of the employee has shifted from “yes, sir” to “why are we doing that” – and the change leader must adapt.
In some cases of large-scale business process change in the early 1990’s, the result was outright failure because business leaders had not shifted their actions to accommodate the new values. A CEO in the old value structure only had to issue the decree for change and it happened. But when a CEO tries this same approach today, employees shout back “Why?” “How does it impact me?” “If it isn’t broken, why are you trying to fix it?”

The change in work dynamic has caused a shift in how organizational change is achieved. Without the authoritarian, hierarchical structure of the past, many firms run into trouble initiating and following through on business process changes. That’s where Change Management comes in. The Change Management Learning Center authors define Change Management as “the process, tools and techniques to manage the people-side of business change to achieve the required business outcome, and to realize that business change effectively within the social infrastructure of the workplace.”
How can you make sure that your organization’s business process changes are well adopted and utilized to full benefit? Dale Carnegie, famous teacher and human relations expert, advocates that the only way to make someone do something is to make them want to do it. In an age of renewed focus on employee empowerment and decision-making, team members are well-suited to accept positive change. Who wouldn’t want to alter their daily work process if it makes their work easier and their day better? By demonstrating to team members the personal benefits gained through the newly reengineered process, firms can encourage widespread adoption. In addition, employees can frequently resist change if they feel it threatens their job security; by communicating that jobs will change but that the employee is not considered obsolete, ground-level team members can be encouraged to accept innovation.
Change Management requires a strong commitment to improvement. Companies looking to make a significant organizational process change need to consider who will be impacted and how, then address those concerns before the fact. Including a cross-functional team of end users in the decision can not only lead to better reception of the change, but can also provide valuable insight that may not have been forecast by management. In a large corporation, a change management project team and owner can be responsible for directing the overall impact of a process change, while a smaller firm may have existing team members dedicate some portion of their time to change management.
[Note: this is the third post in a three part series on the topic of process reengineering. Parts One and Two previously covered the importance of radical change for significant improvement and the experiences of a business process management industry professional.]
Sources:
The Definition and History of Change Management – Jeff Hiatt and Tim Creasey via Change Management Learning Center
 

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