Course: 0734M-Business Process

Reengineering

Topic
Organization strategy
Phase
Week 4

Foundation
Step 1: Organization Strategy Phase

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Perfo
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Realize Value
Implement
People

Organization Foundation Phase :

Why ?
How ?
Outputs
Risks

Develop
Innovate

Understand
Launch Pad
Organization
Strategy

Process
Architecture

Organization Strategy Phase

Why ?

Direction an understanding over the overall organization direction so the

projects trajectory can be aligned with it
Setting up proper foundation for the understanding of the
Discovery motivational driver in discovering better and more efficient
organization
strategy, vision, strategic goals, business
way for the processes in the future
and drivers by the project team members
Organization
Destiny sense
of belonging,will
emotional
edge
to the
organization strategy
Foundation
provide
the
following

attributes :

Information

Decision

Organization Foundation
5

How ?

Step 1 :
Internal and External Aspects of the Organization

Internal aspects of
the organization

External aspects of
the organization

Step 2 :
Strategic Objectives

Key Questions to ask :

What ?

Vision : what does the organization strive to be?

Mission : what is the organization in business to do?
Goals : what does the organization plan to accomplish?
Objectives : what results does the organization plan to deliver?

How ?

Strategic intent : how are we going to achieve the goals and objectiv
Implementation strategy : what methods or approaches are used to
Goals and performance targets?

Step 3 :
Impacts on Processes

How the organization strategy impacts business

processes?
Strategic Choice :
Operational Excellence
Customer Intimacy
Product Leader

Operation Excellence

Customer Intimacy

Product Leader

Key Processes

Order fulfillment
Process Engineering

Acquisitions
Delivery
Marketing Communications

Product Development
Technical Services
Marketing Management

Organization and Skills

Centralized decision making

Supply chain partnering

Shared trust between sales team and

back-office operational staf
Increased partnering skills

High level of product

innovation (patents) and
product development
Intelligence at local level

Key Process Variable

Low costs
Low lead time

Flexibility
Staf empowerment

Flexibility
Product

Management Systems

Key client relationships

Cost improvements
Activity-based Costing
Real-time costs

Customer equity measures (e.g.

lifetime value)
Customer Satisfaction,
Share management

Focus on growth in sales and

profitability
Specialized schedule targets

Step 4 :
Strategic Measurements

Measure and monitor the progress of the

strategy execution
Provide, from middle management
downwards, more specific and personal
objectives
Evaluate initiatives and projects by their
contribution to these strategic measures
Balanced Score Card

The
The
The
The

financial perspective (objectives, measures, targets, initiatives)

customer perspective (objectives, measures, targets, initiatives)
business process perspective (objectives, measures, targets, initia
learning and growth perspective (objectives, measures, targets,
in
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Step 5 :
Complete the Plan

10 percent increase of turnover

the organization follows an Operational Excellence Strategy

(this will be taken into consideration while evaluating existing processes
(re)designing new processes)
the customer has a single point of contact for all his or her que
(all processes will be described as end-to-end processes)
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Step 6 :
Communicate

Obtain Sign-Of
Commitment from Key Stakeholders
Proper Change Management Approach to changes to
the organization foundation
Communicate Organization Strategy and how it
impacts the business processes

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Outputs
Organizations Vision and
Mission
Organizations Goals,
Strategic Intent and
Objectives
Organizations
Implementation Strategy
Business Model Context,
including
Customers (type and
volume of customers)
Services/products
Suppliers/partners
Key diferentiators
Resources
Key diferentiators of the

ce
n
a
m
r fo r
e
P
e
l
na b
i
a
t
s
Su
Realize Value
Implement
People

Develop

Innovate
Understand
Launch Pad
Organizati
Process
on
Architectur
Strategy
e
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Risks
Risks

Mitigation Strategy

Reinventing the
Organization Strategy

Select the appropriate BPM project scenario for the

organization to follow, and stick to the related depth on the
strategy review; do not go any deeper than is required

Indefinitely waiting for

information on the
Organization Foundation

If the information is not forthcoming, make assumptions

and get them validated; if no answer is supplied, escalate
or re-scope the project

No commitment from senior

management

Start small-scale improvements and achieve quick wins,

and obtain commitment incrementally; ask the project
sponsor for assistance

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