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A Language of Change
Re-engineering Re-invention Re-building Re-making Re-organization Re-designing
Impact on Employees
In the past five years, have you or any member of your family been laid off, downsized, or otherwise lost a job through no fault of your/their own? Did employers have more loyalty to their employees ten years ago? Twenty years ago?
Definition of Reengineering
The fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.
2.
Radical
A. B.
C.
Competition
Has become global vs. local, so now instead of just a few, we now compete with thousands!
Change
Instead of the focus on being on how well we operate, but how well we supply the needs and wants of the customer. Customer Satisfaction!!!
Examples
GTE (local phone service provider)
Maintenance and repair process
Then--Repair clerk, line tester, central office technician, service technician. (Slow) NowCustomer care advocate handles it all!
Customer focus 1/2% thennow 70% solved by the person they spoke with originally 40% resolved while still on line
Examples
Federal Mogul (makes car parts)
To get contracts from car manufacturers they:
Sales rep visits customer to get specs. Hand off specs. to engineer who designed from scratch, Pick a place to manufacture this design and use that toolroom, Design sent by mail, Design sent to toolroom, the part then was sent to customer This process typically took 20 weeks. Their worst competitors took only 10 weeks and the best 6 weeks The auto manufacturer gave feedback as soon as they got the parts, so Federal was losing out. Nowengineer goes to customer, designs based on previous similar parts and a computer program reconfigures the old parts to the new specs. 3 days to 1 minute. Instead of mail it is all done electronically. Use any toolroom that is available.
Twenty-week to 18 days, win rate on new proposals 4 times better, profitability more than double.
5. Be timid in redesign.
Reengineering requires bold and imaginative thinking about process design and how work is done. There may already be great ideas lurking in the minds of your employees just waiting for you to ask. Create an environment so people can share their radical ideas without fear of ridicule. On company offered cash for people that came up with a too radical idea, otherwise, they adopted it!
7. Reengineer slowly
You should see at least some major improvements in 12 months or you are sure to fail.
Executive management will lose faith and funding will dry up. Resistors will gain power Employees will exhausted from all the change without anything to show for it. You can lose focus Dont increase the size without very good reason. Continually increasing the scope will cause you many delays and therefore failure.
Context (environment)
Uncertainty: the old way is wrong, and we dont yet have a new way. Experimentation: iterative experience. It must be tried in reality, not on paper. Pressure: Usually needed yesterday so they operate under conditions of great urgency and intensity.
Style
Reengineering is a journey into the unknown. It is about exploration and discovery rather than analysis and knowing. The reengineer lives in a stream of options, alternatives, possibilities. Ideas must be formulated before all the facts are in, tested before the environment is stable, and evaluated fore the results are conclusive. Stumbling forward and being comfortable with it.
To wrap it up, the perfect member would be a female engineer who has changed jobs frequently and has a background in sales. Why?
Team Building
Caring: having an environment that allows open and honest communication. Daring: encouraging everyone on the team to be innovative and adventurous, and to ask the hard questions. Sharing: Common objectives, there are no winners on a losing team.
Team management
Career paths: So, they know what will happen to them when the job is done. Compensation: Bonus for job well done. Celebration: fun time. Communications: the more the merrier. Care and compassion: Take care of them!
Cons
Become dependent on them. Cost $ May take you down the wrong road. Not accountable.
Federal Mogul:
every design was unique that engineers couldnt interact with customers that a part had to be tooled in the same plant where it was to be made.
Principles of Change
Resistance to change is natural and inevitable. Resistance doesnt always show its face. Resistance has many motivations. Theres no one way to deal with resistance: Manage it!
Impediments to Communication
Disbelief: Trustworthy? Actions speak loud. False familiarity: Got the T-Shirt already! Fear of Layoffs: Fear of the unknown. The rumor mill: real source, NO SECRETS! Sloppy execution:
incomprehensibility, Abstraction Complexity clichs
Sloppy execution
Incomprehensibility: Speak Plain nontechnical Abstraction: Be specific and use stories. Complexity: Dont be too specific, you will bore them to death! Clichs: We are in a win win situation! Dont be trite! Dont over communicate!
We cant afford it
Good for you! If you cant come up with the resources, reengineering must not be vital for your organization. Contentment and complacency are dangerous feelings.