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  • 1.  Organizational restructuring

    Posted 10-07-1997 06:02
    I will be teaching a course the coming term on organizations and a
    special focus will be on restructuring / reengineering. I have collected
    some well known articles from HBR and acad. Mgmt. Executive for my own
    purposes and student readings. However, I have not really come across
    any juicy cases so far on this issue, especially as it affects the
    people / human resource management , in the organization. I would
    appreciate any tips from any of you in this regard, especially from out
    health care colleagues who might have experienced quite a bit first
    hand. Thanks. Rao
    N. Rao Kowtha
    Department of Organisational Behavior
    Faculty of Business Administration
    National University of Singapore
    10 Kent Ridge Crescent
    Singapore 119260, Singapore
    Tel: (65) 8743049
    Fax: (65) 775 5571


  • 2.  Organizational restructuring

    Posted 10-07-1997 07:50
    Rao:

    >>... I have not really come across any juicy cases so far on this issue,
    especially as it affects the people / human resource management, in the
    organization...<<

    Try John P. Kotter's book--Leading Change, Harvard Business School Press,
    1996, ISDN 0-87581-747-1

    Bob

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  • 3.  Organizational restructuring

    Posted 10-07-1997 08:20
    Rao,
    My experience with re-engineering is that Hammer and Champy were right:
    very few organizations will commit to doing it "right." "Right" means
    taking a clean-sheet approach to finding the shortest distance to the
    customer.

    I had a request about 18 months ago from a tertiary health care agency
    which had begun what they called a re-engineering process by identifying
    all of their "processes" and then having a major consulting firm come in
    and bench-mark those processes. When they called me, they were at the
    point of rolling out the results of that bench-marking study and telling
    all of their "process managers" that they must submit redesign proposals
    for their processes within five weeks. They figured they had about 100 of
    these process managers and each one managed about 15 processes. When you
    do the math on that, you can see that they were expecting to redesign about
    1500 processes simultaneously.

    The most obvious consequence of that would be that each manager would
    present improvements to his/her own processes, relying on everything else
    remaining steady. So, when your redesigned process doesn't work because I
    have also redesigned my process, upon which yours relied, who will be at
    fault when nothing happens? You can see the problem.

    My colleagues and I suggested that they look to their executives to
    identify the two or three major processes which would give the organization
    the fastest immediate improvement and have their managers focus on
    re-engineering those processes. While they liked the idea, they decided
    they were committed to the original time-table and elected to move forward
    on their own. The last progress report I heard was that they hadn't moved
    very far.

    They are not alone in their approach to re-engineering. Most organizations
    identify very narrowly-defined processes and then attempt to improve them,
    instead of looking broadly at the system of the organization and starting
    with a clean sheet.

    This may have rambled too long. Sorry about that. Hope it helps.

    Emily Schultheiss
    Why settle for surviving...when you could be thriving?


  • 4.  Organizational restructuring

    Posted 10-07-1997 10:02
    As for cases, Fred Foulkes at Boston University seems to have a knack for
    focussing on important issues. His book (Prentice-Hall, 1989) of cases on
    HRM (with Livernash) contains both Harvard & BU cases, some of which
    should meet your needs. The one problem is that book is getting old. I
    understand he continues to develop new cases; I would hope he would write
    a new edition soon.

    Also, in the health care context for cases, the most knowledgeable person
    I know is Linda Swayne, at U.North Carolina-Charlotte. I've copied this
    message to her; perhaps she may have some suggestions. Also see
    cases in the books she co-authors on health care management. [with Jack
    Duncan & Peter Ginter].

    Could you send me a list of the readings you use?

    Tim Edlund, Moragn State University

    On Tue, 7 Oct 1997, Kowtha,N Rao wrote: [in part]

    > special focus will be on restructuring / reengineering. I have collected
    > some well known articles from HBR and acad. Mgmt. Executive for my own
    > purposes and student readings. However, I have not really come across
    > any juicy cases so far on this issue, especially as it affects the
    > people / human resource management , in the organization. I would
    > appreciate any tips from any of you in this regard, especially from out
    > health care colleagues who might have experienced quite a bit first
    > hand. Thanks. Rao
    > N. Rao Kowtha
    > Department of Organisational Behavior
    > Faculty of Business Administration
    > National University of Singapore
    > 10 Kent Ridge Crescent
    > Singapore 119260, Singapore
    > Tel: (65) 8743049
    > Fax: (65) 775 5571
    >


  • 5.  Organizational restructuring

    Posted 10-07-1997 14:23
    HI,

    I thought I would share with you my experiences about making change
    work (and stick) for the better.

    This is based on personal experience of successfully implementing
    (and subsequently living with the resulting improvements) a
    fundamental change through processes in the largest Research
    organisation in Europe, employing over 11,000 staff.

    Whilst we did use process re-engineering to achieve lasting change,
    it had to be accompanied by other reforms.

    Text books on change will tell you there are at least four doors into
    change - through organisation, through culture, through people, or
    through processes.

    Many favour organisation as the starting point. A radical new
    organisation chart can be drawn and communicated in days and
    communicated in weeks. Apparently job done. Not so. The fact is that
    organisations are far more persistent than structure charts. Real
    change needs something deeper.

    There are management consultancies (sorry, but the next bit is true)
    which make a healthy living out od advising on "cultural change". It
    usually involves a new logo, a reworded vision statement. Its
    persistence is not much stronger than a new organisation. Once people
    see that the underlying reality is unchanged then the new image wears
    off rapidly.

    The prognosis for people changing through management training
    programmes is not much better. They can rapidly lead to
    disillusionment - managers spend a week hearing about the brave new
    world but then return to the bleak unchanged reality.

    And that is the problem - nothing is fundamentally changing.

    The only way to achieve deep lasting change is to change the way the
    organisation works. To change the processes. This is so basic to any
    living, working organisation that it takes immense time and effort to
    do and it has to be done with extreme care. But once done change is
    certain and irreversible.

    Our strategy had just two parts - empowerment and processes.

    We set up a devolved management structure under which goals, and
    targets within these goals, were communicated down the organisation
    and the erstwhile holders of power - the functional departments such
    as finance, personnel and contracts - were turned instead into
    service functions who owe their existence only to the quality of the
    services they provide.

    We introduced a fundamental reform whereby everone's job is
    determined only in terms of the projects he/she is currently engaged
    on. The project management system busts the rigidities of the old
    hierarchial system.

    Devolution and empowerment on its own would have beeb a recipe for
    chaos. The second and more difficult leg of the strategy must be
    there as well - the development of the new processes. The vehicle we
    used for our re-engineering was out Total Quality Proces (TQP)

    TQP has involved re-examining everything we do in the organisation
    starting from the Chief Executives desk and working down. All
    processes in which we are involved are examined using a rigorous
    input/output method. The senior management of the organisation were
    tasked with defining the very top level processes in terms of a
    business process diagram, which identified the inputs, outputs,
    controls and resources on the processes. We identified that there was
    only six key processes to the success of the business.

    These top level processes were then broken down into individual
    procedures which were then documented. But that was just the start -
    they were then subject to rigorous validation by the end users via
    workshops to check that the process would work , and to capitalise on
    any best practice in the organisation. All processes ended with
    standards against which operation of the process within the business
    could be measured.

    I can give you a practical example of the above in terms of HR
    processes. One of the 6 top level processes started out at the very
    early stage as being called People Management. After analysis of this
    process in terms of inputs, outputs, etc. we realised that the
    process we were describing was :

    Manage Capability

    In other words, we had to have common and effective procedures across
    the organisation which ensured we had people with the
    capability to deliver the business product.

    This may seem a small point, but it was fundamental to how we
    approached the second stage of defining the procedures which support
    this top level process - We wrote processes about how to get the best
    out of people rather than about how to control people.

    By re-looking at everything we do according to the simple principles
    of customer/supplier relationships we begin, with great difficulty,
    to untangle the complex layers of bureaucracy that have been steadily
    encrusting the organisation over the years. The answer is to manage
    tasks through efficient value added processes rather than through
    mindless bureaucratic procedures. And the key to that is for everyone
    in the organisation to see their job not in terms of a post or a
    role, but in terms of the outputs they are responsible for on behalf
    of their customers. That then becomes extraordinarily fundamental
    reform.

    Project groups were established to define the procedures, and yes we
    achieved the drafting, validation and implementation (including
    support packages of guidance and training and software support)
    within two years. All our procedures, guidance and electronic forms
    are on our intranet.


    Even with empowerment, new processes, and customer supplier chains,
    rapid progress is not possible without reform in the way that you
    manage, reward and invest in people - the manage capability
    procedures have been improved to do just that.

    In conclusion:

    Yes, process re-engineering will achieve change, but only
    if it is supported by other reforms.

    Process re-engineering is a huge task and needs to be properly
    resourced. Picking at the edges will not suffice.


    Regards

    Graham Kettles
    Defence Evaluation Research Agency
    UK
    E- Mail: nickprice@dera.gov.uk


  • 6.  Organizational restructuring

    Posted 10-07-1997 19:02
    Emily Schultheiss wrote:
    >
    > Rao,
    > My experience with re-engineering is that Hammer and Champy were right:
    > very few organizations will commit to doing it "right." "Right" means
    > taking a clean-sheet approach to finding the shortest distance to the
    > customer.
    >
    > I had a request about 18 months ago from a tertiary health care agency
    > which had begun what they called a re-engineering process by identifying
    > all of their "processes" and then having a major consulting firm come in
    > and bench-mark those processes. When they called me, they were at the
    > point of rolling out the results of that bench-marking study and telling
    > all of their "process managers" that they must submit redesign proposals
    > for their processes within five weeks. They figured they had about 100 of
    > these process managers and each one managed about 15 processes. When you
    > do the math on that, you can see that they were expecting to redesign about
    > 1500 processes simultaneously.
    >
    > The most obvious consequence of that would be that each manager would
    > present improvements to his/her own processes, relying on everything else
    > remaining steady. So, when your redesigned process doesn't work because I
    > have also redesigned my process, upon which yours relied, who will be at
    > fault when nothing happens? You can see the problem.
    >
    > My colleagues and I suggested that they look to their executives to
    > identify the two or three major processes which would give the organization
    > the fastest immediate improvement and have their managers focus on
    > re-engineering those processes. While they liked the idea, they decided
    > they were committed to the original time-table and elected to move forward
    > on their own. The last progress report I heard was that they hadn't moved
    > very far.
    >
    > They are not alone in their approach to re-engineering. Most organizations
    > identify very narrowly-defined processes and then attempt to improve them,
    > instead of looking broadly at the system of the organization and starting
    > with a clean sheet.
    >
    > This may have rambled too long. Sorry about that. Hope it helps.
    >
    > Emily Schultheiss
    > Why settle for surviving...when you could be thriving?


    Hi,
    I hate to be seen as jumping on board someone else's bandwagon but I
    must agree wholeheartedly with Emily. I think if anyone wanted a
    cornerstone book on reengineering they should look no further than
    Champy's 'Reengineering Management'. It states the problem so clearly
    that it may as well be a synopsis of the results of work I've been doing
    over the last 5-6 years.

    The problem with 'process' reengineering is that one is trying to change
    the processes - often without changing the skills, knowledge, values and
    attitude of the people responsible for these processes. Hammer in Beyond
    Reengineering says much the same thing.

    I've been doing a lot of work with organisations and industries as a
    whole to identify what it is that people should be doing to actually
    make these (reengineering) processes work and every time I've come
    straight back to "Start with the person". If people can't see for
    themselves the skills and knowledge they need to make these changes, and
    don't have the appropriate values system or attitudinal responses to
    want to make these changes then we are in fear of presenting another
    'fad' that some might like, some might understand, and some might see
    the need for - but the 'some' are never the 'same'.

    Finally, a case study: I worked with five heavy engineering firms in the
    UK over the period 92-93. My project was to assist them in the
    introduction of reengineering processes and systems (called, at the
    time, competency-based processes) and during which we injected the same
    amount of seed capital, gave them the same consultancy support and
    provided them with the same wherewithall to make it work. The result?
    One organisation made money hand over fist, another two made a moderate
    increase, the fourth stayed still and the fifth went broke. The reason?
    Well, in the organisation that made money hand over fist the senior
    management attitude was: "We're all in this together. Everyone is
    involved and no changes are to be made at the bottom without parallel
    changes being made at the top!". At the other end of the scale, the
    attitude in the organisation that went broke was: "These processes are
    only for the 'blue collar' workers - them out there! These don't concern
    us (management) therefore we don't need to be involved. We won't support
    it but neither will we block it!"

    At the end of the day, when it comes to any organisational change the
    attitude of the above organisations is the start and end point.

    Have fun. You're getting into a subject that I quite often get up on my
    soap box about but love with a passion.

    Regards
    PHIL RUTHERFORD
    robnphil@ozemail.com.au


  • 7.  Organizational restructuring

    Posted 10-09-1997 20:18
    In a message dated 10/7/97 11:02:54 PM, robnphil@ozemail.com.au wrote:

    <<The problem with 'process' reengineering is that one is trying to change
    the processes - often without changing the skills, knowledge, values and
    attitude of the people responsible for these processes>>

    We can lead a horse to water but we can't make him drink. However, we can
    make him thirsty.

    In my experience, change is introduced as something done TO people, rather
    than WITH people. Change often is imposed rather than inspired and
    facilitated.

    When change, of any kind, is presented as though we were doing an organ
    transplant, let's not be too surprised when the body naturally rejects it.
    Regards,
    Claire Smith
    Teach-Facilitator: Teams; Organizational Change & Transition
    "Common Sense Is Genius Dressed Up In Its Working Clothes"


  • 8.  Organizational restructuring

    Posted 10-09-1997 22:54
    Claire Smith wrote:
    >
    > In a message dated 10/7/97 11:02:54 PM, robnphil@ozemail.com.au wrote:
    >
    > <<The problem with 'process' reengineering is that one is trying to change
    > the processes - often without changing the skills, knowledge, values and
    > attitude of the people responsible for these processes>>
    >
    > We can lead a horse to water but we can't make him drink. However, we can
    > make him thirsty.
    >
    > In my experience, change is introduced as something done TO people, rather
    > than WITH people. Change often is imposed rather than inspired and
    > facilitated.
    >
    > When change, of any kind, is presented as though we were doing an organ
    > transplant, let's not be too surprised when the body naturally rejects it.
    > Regards,
    > Claire Smith
    > Teach-Facilitator: Teams; Organizational Change & Transition
    > "Common Sense Is Genius Dressed Up In Its Working Clothes"


    Claire,
    Terrific response. Thank you for that. I think you've hit the nail right
    on the head. I'm proposing that one of the most fatal distractions about
    the OD trends over the past ten or so years is that while the ideas may
    have been terrific no-one told the staff. As a result everyone was busy
    trying to implement these changes and their hearts were elsewhere.

    In my experience change has to include change to values and attitudes -
    the 'make him thirsty' point in your message. Only then will change
    happen and stay happened.

    Regards
    PHIL RUTHERFORD


  • 9.  Organizational restructuring

    Posted 10-13-1997 16:50
    I echo Emily's experience. I also worked in a very large healthcare system
    and experienced the very same thing. That was also my beef with most process
    improvement initiatives - very narrow focus and a refusal to take a big
    picture approach.

    Nancy Y. probst