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Managing Barriers to Business Reengineering Success
by Wolf D. Schumacher
1997 03 01
Schönhutstrasse 24
D-71083 Herrenberg
Phone 07032-24070
Fax 07032-24076
E-mail consultecUB@compuserve.com
http://ourworld.compuserve.com/homepages/consultecUB
Chapter 2: Business Reengineering Projects
Chapter 3: Barriers to Business Reengineering Implementation Success
Chapter 4a: Change Management Intervention Models
Chapter 4b: Change Management Intervention Models cont.
Chapter 7: Summary and Implications
ABSTRACT
Managing Barriers
to Business Reengineering Success
Wolf D. Schumacher, DBA
Business Reengineering is on the agenda of many companies in different industries. Striving to improve business processes to better meet customer requirements, Business Reengineering initiatives also aim at revolutionizing key performance criteria, such as cost, delivery, and quality. Recently however it is being discussed, whether Business Reengineering in reality is just another "management fad", not having lived up to high expectations. Trade magazines and managers talk about failing Business Reengineering projects, consequently turning some companies away from Business Reengineering, towards other management initiatives, which promise better bottom-line results. What goes wrong with Business Reengineering ?
This practitioner's report highlights, that Business Reengineering is an important concept towards customer orientation, and concentrates on the obstacles to Business Reengineering project success. It defines hard and soft (people) barriers and traces these to their underlying causes.
The available vast literature on change management is consulted to identify intervention methods and techniques which help to treat causes of people barriers. A framework is presented, which helps to manage barriers during the course of a Business Reengineering project. The framework is applied to a real project, the author oversaw as a change agent. It turns out, that organizational cultural aspects play a pivotal role in project success. Reviewing the implications of barriers to Business Reengineering success, this report proposes, to turn away from a control oriented culture towards a collaboration culture, which not only yields less resistance to change, but also helps to focus all members of an organization towards its future. A short discussion of the instruments search conference and participative design concludes this report.
TABLE OF CONTENTS
Page
Detailed Table of Contents..........................................................................................iv
List of Figures..............................................................................................................x
List of Tables..............................................................................................................xi
DETAILED TABLE OF CONTENTS
Page numbers will not necessarily match the html output on your printer
List of Figures............................................................................................................x
List of Tables.............................................................................................................xi
Chapter 1: Introduction..........................................................................................1
1.1. Objectives and Assumptions............................................2
1.2. Report Structure...............................................................3
Chapter 2: Business Reengineering Projects................................................4
2.1. Definitions.......................................................................4
2.2. The Development of Business Reengineering...................9
2.3. The Principles of Business Reengineering......................10
2.4. Business Reengineering Project Management.................11
2.4.1. The Hammer/Champy Methodology....................12
2.4.2. The Davenport Methodology...............................13
2.4.3. The Manganelli/Klein Methodology....................14
2.4.4. The Kodak Methodology.....................................15
2.5. Conclusion.....................................................................16
Chapter 3: Barriers to Business Reengineering
Implementation Success...........................................................18
3.1. Potential Project Implementation Success......................18
Page
3.2. Risks Associated With Business
Reengineering Projects..................................................19
3.3. Business Reengineering Implementation Barriers..........19
3.3.1. Hard Implementation Barriers.............................21
3.3.2. Soft Implementation Barriers..............................22
3.3.3. Relationships Between Hard and
Soft Barriers.......................................................23
3.4. Areas Generating Barriers to Business
Reengineering Implementation......................................24
3.4.1. Project Related Causes.......................................24
3.4.2. People Related Causes.......................................25
3.4.3. Organization Related Causes..............................26
3.4.4. Environment Related Causes..............................26
3.5. Examples for Root Causes to Implementation
Barriers.........................................................................26
3.5.1. Root Causes to Information Technology
Barriers..............................................................26
3.5.2. Some Root Causes of Internal Individual
Resistance..........................................................31
3.6. Conclusion....................................................................36
Chapter 4: Change Management Intervention Models...............................38
4.1. Change Management Interventions...............................38
Page
4.2. Change Management Literature Review.........................39
4.2.1. Psychology of the Individual Change
Approaches..........................................................39
4.2.2. Social Psychological Change
Approaches..........................................................40
4.2.3. Cultural Change Approaches................................41
4.2.4. Innovation Approaches.........................................41
4.2.5. Global Change Approaches..................................42
4.2.6. Practitioner Approaches to Change......................42
4.3. Selected Intervention Models..........................................43
4.3.1. Selected Individual Change Interventions.............44
4.3.2. Selected Social Psychological
Change Interventions............................................49
4.3.3. Selected Cultural Change Interventions................57
4.3.4. Selected Innovation Interventions.........................62
4.3.5. Selected Global Change Interventions..................64
4.3.6. Selected Practitioner Interventions........................70
4.4. Conclusion......................................................................84
Chapter 5: A Framework for the Identification and Removal of
Barriers to Business Reengineering Success..............................88
5.1. The Framework...............................................................88
Page
5.1.1. Project Management............................................89
5.1.2. Barrier Management............................................89
5.2. Search for and Identify Barriers......................................90
5.3. Identify Root Causes.......................................................91
5.4. Intervene at Root Cause Level.........................................92
5.5. Control Intervention Success...........................................95
5.6. Conclusion......................................................................97
Chapter 6: Case Study ..............................................................................100
6.1. About IPN Corp............................................................100
6.2. The Triggers for Change...............................................100
6.3. The Project Plan............................................................101
6.4. Project Responsibilities.................................................102
6.5. Design Step 1.1.: Assessment of the Current
Situation.......................................................................103
6.5.1. Executing Step 1.1.............................................103
6.5.2. Presentation of the Results to
Management.......................................................104
6.5.3. Barriers Identified, Root Causes,
and Interventions................................................104
6.5.4. Intervention Success...........................................105
Page
6.6. Design Step 1.2.: Redesign............................................105
6.6.1. Executing Step 1.2..............................................105
6.6.2. Criteria for the Process Redesign........................106
6.6.3. Preliminary Design.............................................106
6.6.4. Dialogue about the Proposed Design...................108
6.6.5. Barriers Identified, Root Causes, and
Interventions........................................................108
6.6.6. Intervention Success............................................109
6.7. Design Step 1.3.: Broad Agreement
to the Change.................................................................109
6.7.1. Executing Step 1.3...............................................109
6.7.2. Sample Questions and Answers...........................110
6.7.3. Barriers Identified, Root Causes, and
Interventions........................................................111
6.7.4. Intervention Success............................................111
6.8. Implementation Step 2.1.: Adapt Technically.................112
6.8.1. Executing Step 2.1...............................................112
6.8.2. Noted Implementation Events..............................112
6.8.3. Barriers Identified, Root Causes, and
Interventions........................................................113
Page
6.8.4. Intervention Success...........................................114
6.9. Implementation Step 2.2.: Adapt Socially......................114
6.9.1. Executing Step 2.2..............................................114
6.9.2. Barriers Identified, Root Causes, and
Interventions.......................................................115
6.9.3. Intervention Success...........................................116
6.10. Conclusion....................................................................116
Chapter 7: Summary and Implications.......................................................118
References/Bibliography..........................................................................................121
LIST OF FIGURES
Page
Figure 2.1./1 Example of Business Processes in a Firm...............................................................6
Figure 3.3./1 Relationships Between Potential Barriers and Potential
Causes of Barriers.................................................................................................21
Figure 3.5.2./1 Five Roles of Resisting Behavior.........................................................................33
Figure 4.3.1./1 States of the Self of a Person.................................................................................46
Figure 4.3.2./1 Transition and Forces of Change..........................................................................49
Figure 4.3.2./2 Beckhard`s Resistance Formula............................................................................52
Figure 4.3.3./1 Single-Loop and Double-Loop Learning...............................................................60
Figure 4.3.5./1 Change Arena......................................................................................................65
Figure 4.3.6./1 Polarity Dynamics................................................................................................74
Figure 5.1./1 Relationships Between Business Reengineering
Project Management and Barrier Management.....................................................88
Figure 5.4./1 Root Cause Analysis Applying the Stream Analysis Technique............................91
Figure 5.5./1 Impact of Interventions on Change Domains........................................................95
Figure 5.6./1 Core Cultures of an Organization.........................................................................97
Figure 6.3./1 Project Phases and Steps at IPN Corp..................................................................101
Figure 6.6.1./1 IPN`s Objectives for the Redesign of the Order Management
Process................................................................................................................106
Figure 6.6.3./1 Preliminary Design for the New Order Management Process...............................107
LIST OF TABLES
Page
Table 2.1./1 Factors that Differentiate Winning from Losing Teams.............................7
Table 2.3./1 The Principles of Business Reengineering ...............................................10
Table 2.4.1/ Classification of Business Reengineering Projects....................................11
Table 2.4./2 Selected Business Reengineering Methodologies......................................12
Table 2.4.1./1 The Hammer/Champy Methodology.........................................................13
Table 2.4.1./2 The Davenport Methodology....................................................................14
Table 2.4.1./3 The Manganelli/Klein Methodology.........................................................15
Table 2.4.1./4 The Kodak Methodology..........................................................................15
Table 2.5./1 Comparison of Selected Business Reengineering Methodologies..............16
Table 3.1./1 Achievements of Thirty Business Reengineering Projects.........................18
Table 3.2./1 Business Reengineering Project Risk Categories.......................................19
Table 3.5.1./1 Typical Root Causes to Information Technology Barriers..........................27
Table 3.5.2./1 Typical Root Causes of Individual Resistance............................................32
Table 3.6./1 Traditional Approach to Business Reengineering......................................37
Table 4.2./1 Classification of Change-Management Approaches...................................39
Table 4.2.1./1 Relevant Authors of Individual Change.....................................................40
Table 4.2.2./1 Relevant Authors of Social Psychological Change.....................................40
Table 4.2.3./1 Relevant Authors of Cultural Change........................................................41
Table 4.2.4./1 Relevant Authors of Innovation Change Approaches.................................42
Table 4.2.5./1 Relevant Authors of Global Change Approaches........................................42
Table 4.2.6./1 Relevant Authors of Practitioner Approaches to Change............................43
Table 4.3./1 Selected Intervention Models ....................................................................43
Page
Table 4.3.1./1 Turning Stress into Energy......................................................................44
Table 4.3.1./2 Compass Points of Coaching....................................................................48
Table 4.3.2./1 The Impact of Fear...................................................................................53
Table 4.3.2./2 Conducts, Superiors Need to Avoid..........................................................55
Table 4.3.5./1 Intervention Path Characteristics..............................................................67
Table 4.3.6./1 Workshops Designed to Introduce the Work-Out Change Model..............73
Table 4.3.6./2 Questions for Understanding Change........................................................78
Table 4.3.6./3 Reducing Barriers to Understanding.........................................................78
Table 4.3.6./4 Classification of Interventions to Resistance..............................................81
Table 4.3.6./5 Basic Criteria for Pay Systems..................................................................83
Table 4.4./1 The Un-Traditional Approach to Business Reengineering .......................85
Table 4.4./2 The Ladder of Leadership Skills...............................................................86
Table 5.2./1 Typical Symptoms of Resistant Behavior................................................90
Table 5.4./1 List of Questions Aimed at Possible Interventions.....................................93
Table 5.5./2 List of Questions Pertaining to Interventions in the Transition
Period.......................................................................................................94
Table 5.5./3 The Impact of Intervention Techniques on Domains of Root
Causes.......................................................................................................94
Table 5.5./1 Indicators for Cultural Change...................................................................96
Table 5.6./1 Characteristics and Differences of Core Cultures........................................98
Table 6.3./1 Project Steps Within the Design Phase......................................................101
Table 6.3./2 Project Steps Within the Implementation Phase........................................102
Table 6.5.1./1 Order Management Problems at IPN Corp................................................103
Table 6.5.1./2 Problems Regarding Products, Structure and Leadership...........................104
Table 6.5.3./1 Barrier Management During Step 1.1........................................................105
Page
Table 6.6.2./1 Criteria for the Process Redesign at IPN Corp........................................106
Table 6.6.5./1 Barrier Management During Step 1.2....................................................108
Table 6.7.2./1 Sample Questions Posed by Employees and Answers by the
Project Team.........................................................................................110
Table 6.7.3./1 Barrier Management During Step 1.3....................................................111
Table 6.8.3./1 Barrier Management During Step 2.1....................................................114
Table 6.9.2./1 Barrier Management During Step 2.2....................................................115
Table 6.10./1 How IPN Measures Up to Change Requirements...................................117
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