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Management and Organisation Organising and Organisational Design Jay Hays Management and Organisation People need to understand how their organisations work if they are to work well within them. p 268 Structures need to adapt to changes in the external environment. Management and Organisation Organising Success Themes Empowerment Support for employees Customer responsiveness Flexibility in dealing with the dynamic environment Continuous quality improvements Management and Organisation Organising Organising Process of arranging people and other resources to work together to accomplish a goal. Division of labour Coordinating activities to achieve common purpose Allocation of resources Clarifying jobs and working relationships Management and Organisation Organising Back to Strategy Strategy is “the grand plan.” It embodies: the organisation’s key objectives the path or approach taken to achieve those objectives Management and Organisation Organising Strategic Management The process of formulating and implementing strategies to accomplish long-term goals. Management and Organisation Organising Strategic Management Looking Forward Understanding the environment Positioning Management and Organisation Organising Strategic Management and Positioning This is where organising comes in. Management and Organisation Organising You organise to meet your important ou This is where organising comes in. Management and Organisation Organising Organisational Structure System of Tasks Workflow Relationships Communication Channels Peritus Process in Perspective Suspend Board User User User Scorecard User Actual Goal Dispatch Board User Closed Log Input Log PPD Dispatcher Plan Progress Solution Pre-Morning Driver, Rider Negotiations Morning Chessmaster Squads Negotiations Ping Ponging Skills Matrix Learning Plan Mini- Intervention Non-Dispatched Tasks Calendar Management and Organisation Organising Organisational Chart Depicts the formal arrangement and reporting relationships of the organisation. Positions Lines of Authority Job Titles Lines of Communications Management and Organisation Organising Organisational Chart Depicts the way the organisation is intended to function. Levels of Management Major Units and Sub-units Management and Organisation Organising Informal Structure The Shadow Organisation The unofficial but critical working relationships between people. Social Needs Performance interaction Informal Learning Management and Organisation Organising Organisational Structures -Departmentalism The division and linkage of formal teams and departments. Functional Divisional Matrix Management and Organisation Organising Functional People with similar skills and performing similar tasks are grouped. Share technical skills, interests, and responsibilities. If each division does its job properly, the organisation will perform successfully. Management and Organisation Organising Functional All about specialisation and the benefits you get from that (i.e., economies of scale). Promotes “functional mindset” – the functional chimney problem (silo operation). Management and Organisation Organising Functional Mindset Cooperation and communication across the organisation break down). Impacts ability to effectively solve problems and make decisions. Management and Organisation Organising Divisional Grouping of all people and resources devoted to the same / similar product or service, set of customers, and / or region. Product Process Geographical Customer Management and Organisation Organising Matrix Product Combination of functional and divisional structures to gain the advantages and Project overcome the disadvantages of both. Basically consists of permanent cross- Program functional teams. Two Bosses – Two Groups Functional Structure Promotes learning, sharing, and cooperation. Management and Organisation Organising Matrix Progress toward improving flexibility and problem-solving through better cross- functional integration. Represents a broader movement toward more horizontal structures that decrease heirarchy, increase empowerment, and more fully mobilise the talents of people to drive organisational performance. p 276 Management and Organisation Organising Network Management and Organisation Organising Boundaryless Organisation Management and Organisation Organising Trends Shorter Chains of Command Less Unity of Command Wider Spans of Control More Delegation and Empowerment Decentralisation with Centralisation Reduced Use of Staff Management and Organisation Organisational improvements and [Business] Process Re-design or Re- engineering are organisational change. Thus, may be more complicated than many people assume. Management and Organisation Any change in one part of a system (organisation) will effect other parts and, in fact, be influenced by those other parts. Management and Organisation INTERDEPENDENCE Management and Organisation Two Levels of Principles: Operating Principles Design Principles One Approach to Redesigning Processes Iterate and Test Case For Process Action Formulate Design Future Model Define Vision Redesign Process Ideas Models Management and Organisation Preliminary Research on IT Solution CRM Executive Executive Subsequent Start-Up Lab 1 Interviews Workshop Labs TO BE P3 Start-Up Work Wrap-Up Activities Activities Activities Introduction to Business Labs Review of Progress to Date / Critique of Finalise / Synthesise Work Charter Team Process and Lessons Learned Evaluate Product and Process Relative to - Membership Agenda and Objectives for the Day Start-Up Objectives - Vision and Mission Distribution of Labour / Assignments Develop “Hand-Off” Package - Scope Work Individually and/or in Groups (AM) Develop and Present Summary of Outcomes - Key Objectives and Deliverables - Team Member Roles & Responsibilities Mid-Day Check-In and Experience of Process - Schedule Work Individually and/or in Groups (PM) Conduct any Required “Hand-Off” Activity Team Building / Develop Performance End of Day Check-In / Evening Assignments Determine any Continuity Requirements Thermometers Deliverables Deliverables Logistics Lab Report - All Documentation Detailed Project Plan; Manage to Plan Deliverables Posted Process Maps Final Presentation to Executive / Program Agreed and Published Charter Weekly Lab Documentation Manager Performance Thermometers “Hand-Off” Meeting(s) Conducted Performance Thermometers Updated Presentation to Executive / Program Manager P3 = People, Parameters, Prerogative STEERING COMMITTEE BPR Management Team Formal Executive Lab 1 Lab 2 Lab 3 Review Workshop 4 5 Process Agreed-Upon: Overall Assessment Against Principles Initial Objectives Business Model Friday Reviews Lessons Learned Key Processes Future Requirements Objectives Way Forward Performance Measures Customer Service Strategies Critical Success Factors Considerations Next Steps / Project Charter Future State Description - Proposed FOXTEL achieves its customer targets yearly from 2001 through 2005. Viewers are delighted with programming and service. Customer churn is held at world class levels. FOXTEL is the industry benchmark for cost efficient and service effective integration of business process and operations. Staff and managers are proud to be FOXTEL employees. They are motivated to remain and grow with the Company, and driven to ensure it continues to succeed. They know what they have to do, and they have the tools to ensure they do it well. High-Level Processes Selling Pay TV concept to the general public Customer acquisition and installation Customer retention and expansion A Cross-Functional View The Journey Metaphor An image-rich aid to help describe and prepare people to undertake a journey no one has ever made before to a place no one has ever been. A Metaphor for Change: Charting The Organisational Change Journey the Course Ports o’ Call Defining the Setting Off Journey Arrival! Destination Selecting Milestones Explorers Issues and Challenges Preparing Preparing / planning for the unknowable Explorers Identifying potential risks and having suitable responses Evaluation Creating a culture of exploring & Lessons and the explorer mindset Learned Keeping in contact with home Keeping the faith; dealing with mutiny Hail and Farewell! Exploring Unchartered Territory Issues and Challenges Preparing / planning for the unknowable Identifying potential risks and having suitable responses Creating a culture of exploring and the explorer mindset Keeping in contact with home Keeping the faith Dealing with mutiny Issues and Challenges Preparing / planning for the unknowable Identifying potential risks and Keeping on Course in Unchartered having suitable responses Territory Creating a culture of exploring Agree to and understand the destination and process for and the explorer mindset getting there (framework) Keeping in contact with home Vision, Imperative, Objectives Keeping the faith Flexible “roadmap” and experienced guides Dealing with mutiny Know where you are at any given time (measure) Against vision and milestones (roadmap), risks, CSFs, & KPIs) Document Progress (Map) and Lessons Learned (ship’s log) Keep people involved, excited, and “fit” (participation) Provide the tools, techniques, and skills people need Empower with authority and legitimacy Charge with responsibility Install / use an infrastructure for people “back home” A Closer Look at the 2 Exploration Steps Charting the Course 1 Defining the Selecting Destination Explorers Preparing Context for Change Explorers Vision Values Principles High-Level Project Planning Chartering Team Mission Understanding Journey RisksBuilding Teamwork Overall Objectives Setting Explorer Criteria and Readiness Assessment Selecting Team Members Exploring Skills Approach Establishing Team Sponsorship and Project Infrastructure A Closer Look at the Exploration Steps 3 Setting Off Ports o’ Call 4 Journey Milestones Team Assignments & Division of Labour Detailed Project Planning Journaling / Trip Logs Send-Off Celebration Arrival at Journey Milestones or Embarking as Sub-Teams Major Course Correction Sub-Team Check-Ins and Achievement of High-Level Objectives Mini Course Corrections and Lessons Learned To Date Team Check-Ins Interim Celebration Re-provisioning and Team Member Rejuvenation A Closer Look at the Exploration Steps Evaluation Hail and & Lessons Learned Farewell! Formal Evaluation of Project Against Expected Outcomes Lessons Learned Studies Conducted (Process and Content) Evaluation / Lessons Learned Published for and Shared with Community Determinations made for Continuation or Follow-On Expedition A Closer Look at the Exploration Steps 5 First phase of Exploration Arrival! Complete Report to Community and Celebration of Successful Journey Formal Evaluation of Project Evaluation 6 Against Expected Outcomes & Lessons Lessons Learned Studies Conducted Learned (Process and Content) Evaluation / Lessons Learned Published for and Shared with Community Determinations made for Continuation or Follow-On Expedition 7 Hail and Final Team Celebration Honouring Work, Farewell! Coming to Closure, Welcoming New Team Members, and Sending-Off Next Team Redesign Principles 1. Organise around outcomes, not tasks 12. Link parallel activities instead of 2. Put the decision point where the work integrating the results is performed, and build control into the 13. Create electronic linkages process 14. Substitute information for proximity 3. Replace functions with trust 15. Link supply and demand processes 4. Eliminate intermediaries with information technology 5. Eliminate handoffs 16. Treat geographically dispersed resources as though they were 6. Reduce variability of work centralised 7. Predict the environment 17. Have those who use the output of 8. Delay binding the process perform the process 9. Eliminate redundancy 18. Push out function to customers 10. Segregate, eliminate, reduce 19. Push out function to supplier exceptions 20. Outsource function 11. Bury information processing in the real 21. Bring function in-house work that produces information 22. Form strategic alliances Using the Redesign Principles • Characteristic reengineering moves for What they are improving process performance • Process design best practice • "Rules of thumb" • Redesign from the outside in – what How to use them could be, not what is • Focus on vision performance targets • Prefer cross-functional solutions • Focus on the value-added, not who does what Redesign principle #1 Organise around outcomes, not tasks • What does the outcome consist of? Questions • Can one person or group perform all or most of the steps in a process? • What would we have to do to enable one person or group to perform all or most of the steps in a process? • What would it take to produce the desired outcome immediately? Redesign • Settle auto claims on the spot any time, Idea Example any place, to reduce the human trauma Redesign principle #2 Put the decision point where the work is performed, and build control into the process • Where do decisions need to be made in the Questions process? What decision-expertise is required? • What do we fear might go wrong in the process? • What is really important to monitor? • How can controls help make the decision, rather than hinder the process? Redesign • Determine amount of claim at the accident site Idea Example • Elevator predictive of down-time Otis Service Crew Redesign principle #3 Replace functions with trust • What don't we trust about our Questions customers? Our suppliers? Our people? • What work does this cause? • Can we reduce this work and still maintain the integrity of the process? Redesign • Replace forms requiring signatures with Idea Example remote data entry Redesign principle #4 Eliminate intermediaries • Does this process take more than one Questions person? • What is each person in a process doing? • Can what some people do be eliminated or be done by someone else already in the process? Redesign • Perform on site data entry using portable Idea Example computers Avis check out clerk Customer • Mileage • Fuel • Date Redesign principle #5 Eliminate handoffs Questions • Do we interrupt the process flow to give the output of their work to someone else? • What output is being handed off? • Can we stop this interruption? Redesign • Combine data entry with account validation Idea Example From To Question Answer to wrong question In Out Data Long delays Redesign principle #6 Reduce variability of work • Do we handle a wide variety of work? Do Questions we have to? • Where does similar work go through different processes that then require us to develop exception processes? • Can we eliminate the causes of this variability? Redesign Idea Example • Do not accept shipments that do not show up on the purchase order system Redesign principle #7 Predict the environment • What information will help us better predict what is Questions going to happen? • Can we capture it internally? Redesign • Technology notifies service centre to send Idea Example dispatcher before elevator even breaks down Service Centre Elevator cab Otis Service Crew Redesign principle #8 Delay binding • How can we respond more quickly to meet Questions customer needs? • At what point of the process does customisation of the product begin? • Can we partially complete the product to that point? Redesign • Pre-made sweaters are dyed to order Idea Example based on sales data From To Dye Knit Knit Dye Wool Sweater Sweater Sweater Distri- Distri- Sell Sell bute bute Redesign principle #9 Eliminate redundancy • Is the same activity being done by different Questions people? • Are people checking other people's work? • Can the activity(ies) be trusted to be done just one time by a single person? Redesign • Using bar code readers to track where Idea Example packages are Redesign principle #10 Segregate, eliminate, reduce exceptions Questions • Does some of the work require extra attention? • What does our process kick out of the normal operation stream? • Can we change the content, timing or quality of the work that comes in? Redesign • Raise the value amount of a cheque Idea Example above which a bank clerk must review a signature Redesign principle #11 Bury information processing in the real work that produces information • What information do we get? Do we keep? Do we really need? Questions • How does information change during the process? • Do we write down what someone says? Why? • Do we type what someone writes down? Why? • Why can't we see what is going on while it is happening? Redesign • Create accident file as part of determining Idea Example amount Redesign principle #12 Link parallel activities instead of integrating the results Questions • Do we "stitch" together the results of many people's work with a separate activity? • Can we organise our activities to automate integration? Redesign Idea Example • Settle claim, set up car rental, authorise payment and drive the customer home From To A B D A B C D C Redesign principle #13 Create electronic linkages • Do we prepare letters, memos or make Questions telephone calls, and then wait for an outsider to respond? • Can we use technology to reduce or eliminate these activities? Redesign • Provide customer with terminals to review Idea Example financial accounts Redesign principle #14 Substitute information for proximity Questions • Do we stop and play telephone tag or convene meetings to resolve something in the process? • Where do we stop and play telephone tag or convene meetings to resolve something in the process? • Can we achieve resolution faster, with better information distribution? Redesign • Voice mail systems Idea Example Redesign principle #15 Link supply and demand processes with information technology Questions • Do the workloads of the processes vary substantially in volume? • At the end of the day, where do we look to see how we have done? • Where are we surprised? • Can we reduce the level of surprise? Redesign • Airline systems that analyse traffic patterns Idea Example to allow overbooking Redesign principle #16 Treat geographically dispersed resources as though they were centralised • How many locations are involved? How Questions does information travel? • Can information substitute for proximity? • Do historical assumptions regarding what needs to be done locally still hold? • Do historical assumptions regarding what needs to be done centrally still hold? Redesign • Put the adjuster "on wheels" with mobile Idea Example communications and information systems From To Redesign principle #17 Have those who use the output of the process perform the process Questions • What outputs are created during the process? Do we need all the outputs? • Who uses them after creation? What do they do with them? • Can these users perform part or all of the process? Redesign • Adjuster settles claim at the accident site Idea Example Can he do it? Redesign principle #18 Push out function to customers • What do we get and give to customers in Questions the process? • What tasks would our customer be willing to do? • Can we change the process so the customer sees improved service as a result of the customer doing more? Redesign • Use ATMs to reduce clerical staff Idea Example Redesign principle #19 Push out function to suppliers • Do we pay others to help us in the Questions process? • What tasks can we arrange for our suppliers to do? • What tools from our processes do we need to give our suppliers? • Can we use incentives to get suppliers to do more of the processes or supply us better Redesign • Have supplier ship directly to factory, Idea Example instead of warehouse Redesign principle #20 Outsource function • Is there work that requires schedules, Questions expertise, or equipment that is unique in the organisation? • Are there pieces of a process that are performed substantially better by others? • Can we integrate our processes with the best providers in the open market? Redesign • Use printing and mailing companies to Idea Example produce statements Redesign principle #21 Bring function in-house Questions • Do we pay outsiders? • Where do we rely on outsiders and suffer adversely in terms of cost, time or quality? • Can we stop relying on outsiders and perform activities internally? Redesign • Replace EDP services bureau with an in- Idea Example house function Redesign principle #22 Form strategic alliances and virtual organisation • Are there ways to involve other Questions organisations who are not in our business to develop a hybrid process that is good for customers and both parties? • Are there outsiders who can help us operate our processes? • Can we work with outsiders to deliver more value to our customers? Redesign • Airlines, hotels, and credit cards link up for Idea Example frequent travellers Hotel Customer Part Two Merging the Explorer Metaphor and the Introduction of BPR Evaluation Defining Planning & Setting Ports Arrival & Destination Preparation Off O’Call Lessons Learned Change as a Continuous Journey OUTCOMES Clear Clear Clear Clear Solutions & Clear Clear Commitment Framework Purposeful Solution Progress Completion Recognition and and Direction and Process Activity Acknowledgment A more straight-forward version of the change process as a journey. Shown below each step are the outcomes of the respective steps. Charter Team Agree Identify Prioritise Form Define Objectives Processes Processes End Point & Principles Solution Team Draft Revision & Install Reality [Ideal] Infrastructure Check Formalisation Process Steps in the BPI /BPR Process BPI / BPR is also a journey; and may start pretty much the same. Subsequent steps are more definable than the steps in the general change journey, each requiring thorough detail and operational understanding. Evaluation Defining Planning & Setting Ports Arrival & Destination Preparation Off O’Call Lessons Learned Change as a Continuous Journey Charter Team Agree Identify Prioritise Form Define Objectives Processes Processes End Point & Principles Solution Team Draft Revision & Install Reality [Ideal] Infrastructure Check Formalisation Process Steps in the BPI /BPR Process When shown together, it is evident that the two journeys have much in common. Evaluation Defining Planning & Setting Ports Arrival & Destination Preparation Off O’Call Lessons Learned Change as a Continuous Journey In either case, the importance of an infrastructure cannot be stressed highly enough. Infrastructure Charter Team for implementing and seeing change through Agree Identify Prioritise Form Define Objectives Processes Processes End Point • Measurement and Reporting System & Principles Solution Team Draft Revision & Install Reality • Project Management [Ideal] Infrastructure Check Formalisation Process includes: Steps in the BPI /BPR Process The arrows superimposed in blue-grey show the more obvious connections.
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