© 2009 AREOPA


    Developed for
                                                                                        ...
Why CHANGE! – typical responses
EXECUTIVES:
 Cope with threats of “Global Economy”
 Cope with demands of existing and pote...
4 Reasons for Change
1. Improve Company Image
     How customers and shareholders perceive the company, the
     team (peo...
4 Reasons for Change (continued)
3. Tackle global Competition
     Products become commoditized, more generic, less unique...
4 Reasons for Change (continued)
The “customer” is key to all these answers

  Smart dynamic Business Processes focus on C...
Constant need for Change
 Why do we need to manage change
       improve Company Image
       respond to increasing Cust...
Questions to be answered
EXECUTIVE’s concerns:
  How do we transform the company to cope with threats of “Global Economy”?...
Need for ORGANIZATIONAL CHANGE

Mahatma Gandhi:
  “For things to change, first I must change.”

New Economic Challenge:
  ...
Need for ORGANIZATIONAL CHANGE
Symptoms highlighting the need:
  Responsibilities & accountabilities do no longer match re...
The Organization Evolution Theory
Typical growth curve of an organization
 Employees                                      ...
The Organization Evolution Theory
Crisis #1 = from commercial to mature organisation
Solutions:
 Downsizing: 10 people ou...
The Organization Evolution Theory
Crisis #2 = from mature to hierarchical organisation
What happens at 200 people:
 24 si...
The Organization Evolution Theory
The hierarchical vertical organisation
What has happened?
 More chiefs than indians

  ...
The Organization Evolution Theory
The process


                              The customer is the king?




              ...
The Organization Evolution Theory
What is the organization’s focus




     Quota                                         ...
The Organization Evolution Theory
Hurdles for Change Management
Where is your customer focus?
                            ...
AREOPA’s Total Change Management
                                                                  rightsizing

   down-si...
AREOPA’s Total Change Management
Strategic Exercise – Change is difficult!
                       FROM                    ...
AREOPA’s Total Change Management
Strategic Exercise – Resistance to change
Major raison for failure: lack of change skills...
AREOPA’s Total Change Management
Strategic Exercise – HOW?
5 management commitments to organizational change
    Synchron...
AREOPA’s Total Change Management
Strategic Exercise – Everything changes!
                      FROM                      ...
AREOPA’s Total Change Management

 Focus the process on the customer
                      Change Philosophy
 Constantly r...
Why Change Projects FAIL!
       People are not against change
            but against “being changed”
Change always cause...
How to avoid Change failure!

Focus on the CUSTOMER
                                                    S        N       E...
How to avoid Change failure!

Focus on the PROCESSES



   Input      Activity           Decision                  Wait st...
How to avoid Change failure!

Focus on the PROCES OWNERS




Organizations can change by enabling the people who
perform t...
AREOPA’s Change Philosophy

3 PILLARS for CHANGE
• Customers (internal and external)
• Processes (interdepartmental)
• Pro...
AREOPA’s Change Philosophy

I have a philosophy for CHANGE!
What now?

“Would you tell me please where I should go from he...
Objectives must be SMARTER
 Specific
 Measurable
 Achievable
 Realistic
 Time related
 Empowered
 Resources

  Customer o...
AREOPA’s Implementation Strategy
how to make a difference for
            your customers & shareholders

   Improve Compa...
AREOPA’s Implementation Strategy
   Identify the 5 layers of Process Mapping
    1. High-level Domains + inputs/outputs  ...
AREOPA’s Implementation Method




             AREOPA sc - CM – The Evolution of Change (scGNO20091214)   32
AREOPA’s Implementation Method
Creating Awareness serves
   to communicate the project objectives to all employees
   to...
AREOPA’s Implementation Method
Process Change Management (BPI/BPE/BPR)
consists of 12 specific steps during which the rele...
AIS® Reference Model
 The AIS Reference Model (Applied Information Service) is an
 implementation model built on Organizat...
AIS® Reference Model
 Process-supporting technologies (such as ICT) created the
 need for service-processes to the spectru...
The AIS Reference Model®

                        Company Strategy
                                                       ...
AIS® Reference Model
   Change         The AIS Reference Model was developed by AREOPA
                  The AIS philoso...
AIS® Reference Model
   Change        BPI/BPR/BPE
                    In collaboration with IT consultants, the BPI, BPR ...
AIS® Reference Model
   Change        IT2D
                    Covers IT applications development and
                   ...
AIS® Reference Model
   Change        HR, QM, SCM, S&M,... & MR Systems
                    In parallel with the above me...
AIS® Reference Model
   Change        IST Categorization and CoPP analysis
                    The IST (=current) situati...
4
                                                                                                                       r...
You want Change ?
                                                                                                        ...
You want Change ?
                                                                                                        ...
From Process Mapping to
                                                                                                  ...
From Process Mapping to
                                                                                                  ...
From Process Mapping to
                                                                                                  ...
Measuring the RESULTS
                                                                                                    ...
Measuring the RESULTS
                                                                                                    ...
Measuring the RESULTS
                                                                                                    ...
TAPE®-grid Customer Satisfaction
   Change        Customer-focused change aims to measurably improve
                 cust...
SIMIST® Process Simulation
   Change
                 SIMIST® Architecture
                 dynamic and visual simulation ...
SIMIST® Process Simulation
   Change
                 Start with the business processes
                 Charting them = a...
SIMIST® Process Simulation
   Change
                 What are efficient business processes?

 Philosophy
                ...
SIMIST® Process Simulation
   Change
                 •   SIMIST® has been developed by AREOPA together with
             ...
SIMIST® Process Simulation
   Change
                    SIMIST example: present situation
                      “Customer...
SIMIST® Process Simulation
   Change
                 SIMIST: the wanted process flow using TAPE® grid
                 Ti...
SIMIST® Process Simulation
   Change
                 SIMIST: financial representation
                      400000

     ...
You want Change ?
                                                                                                        ...
You want Change ?
                                                                                                        ...
You want Change ?
                                                                                                        ...
You want Change ?
                                                                                                        ...
Sales

   You want Change ?
                                                                                              ...
AREOPA’s Business Proposition
   Change                         “No Cure, ... We Stay”
                    AIS is a smart...
You can Change ! Let’s start !
   Change
                         AREOPA is the leading-edge                              ...
67
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The Evolution Of Change

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This presentation provides a detailed overview of AREOPA\’s Total Change Management approach, including organizational change, the AIS Reference Model and the 12-steps Methodology.

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The Evolution Of Change

  1. 1. © 2009 AREOPA Developed for Change Insert Client Logo Here The Evolution of Philosophy Change Implementation Strategy Sales channels 4 reasons IECC Fashionable Methodologies Implementation in tune with the Digital Age Methodology EU / LIC 3P Measure 3S ment Result 12steps Confidential, not to be disclosed without written approval of the author(s) AREOPA sc - CM – The Evolution of Change (scGNO20091214) 1
  2. 2. Why CHANGE! – typical responses EXECUTIVES: Cope with threats of “Global Economy” Cope with demands of existing and potential customers Ensure company-wide strategy, consistently acted upon Translate company strategy into goals, objectives and results, in line with a positive perception of our customers MANAGEMENT: Keep budgets under control and retain quality of services to customers? Recognize investments to assure optimal future business impact Plan and implement these investments? Balance between people, processes and technology to support our customers AREOPA sc - CM – The Evolution of Change (scGNO20091214) 2
  3. 3. 4 Reasons for Change 1. Improve Company Image How customers and shareholders perceive the company, the team (people) and its/their performance A positive perception (i.e. satisfied customers) results in a positive image and in an active reference for the company (free advertising!) 2. Respond to increasing Customer Expectations Customers and shareholders become more and more demanding, affecting products /services delivered and increasingly the information provided as well as the treatment by whomever is in contact with them. Companies must meet ALL these expectations! AREOPA sc - CM – The Evolution of Change (scGNO20091214) 3
  4. 4. 4 Reasons for Change (continued) 3. Tackle global Competition Products become commoditized, more generic, less unique and are not by themselves sufficient to tie in customers. Stay ahead of the competition and customer lock-in are essential, through finding other and new ways to delight the customer, anticipating – if not creating – their FUTURE expectations! 4. Focus on Cost Reduction Hardly a day goes by without pressure on company results and therefore cost reductions are never far away from the agenda. However customers do not only increase their expectations, they also get smarter and better informed Customers no longer want to bear the costs of their suppliers' inefficiencies (rework) or improductivities (activities without added value)! AREOPA sc - CM – The Evolution of Change (scGNO20091214) 4
  5. 5. 4 Reasons for Change (continued) The “customer” is key to all these answers Smart dynamic Business Processes focus on Customers and customer feed-back through continuous monitoring of Customer Expectations Effective organizations combine Business Change Management with IT Management to effectively deploy new IT solutions Such an organization implies an increasing impact of IT on the company’s bottom line and future AREOPA sc - CM – The Evolution of Change (scGNO20091214) 5
  6. 6. Constant need for Change Why do we need to manage change  improve Company Image  respond to increasing Customer Demands  tackle Global Competition  focus on Cost Reductions each require continuous “CHANGE” Transition to a Knowledge based and Service oriented organization  requires smart Business Processes Continuous monitoring of Customer Expectations Customers are central to AREOPA’s philosophy. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 6
  7. 7. Questions to be answered EXECUTIVE’s concerns: How do we transform the company to cope with threats of “Global Economy”? How do we guide our managers to cope with changing and increasing demands of existing and potential customers? How do we translate the company vision into a company-wide strategy and how do we communicate this strategy to the organization so that everybody acts to it in a consistent way? How do we translate the company strategy into goals, objectives and results, in line with a positive perception of our customers? MANAGER’s concerns: How do we keep the budgets under control, without jeopardizing the quality of our services to our customers? Where do we invest to assure optimal business impact for the future and how do we plan these investments? How can we keep a good balance between people, processes and technology to support our customers? AREOPA sc - CM – The Evolution of Change (scGNO20091214) 7
  8. 8. Need for ORGANIZATIONAL CHANGE Mahatma Gandhi: “For things to change, first I must change.” New Economic Challenge: CEO’s challenge = VISION TO VALUE for customers, shareholders and team for community and other stakeholders Business Change Management starts with inward looking AREOPA sc - CM – The Evolution of Change (scGNO20091214) 8
  9. 9. Need for ORGANIZATIONAL CHANGE Symptoms highlighting the need: Responsibilities & accountabilities do no longer match reality We do not adapt / respond timely & efficiently to:  changing market conditions & customer demands  Information and new obtained knowledge or the total lack thereof Information not source originated or not driven by process owner No added value and unnecessary/duplicated controls recognized in process handover = bureaucracy Incompetitiveness due to:  Uncontrolled outsourcing of activities and processes  Constant rework and non-value-added processes  Existing process-, departmental- and reporting structures Business Change Management starts with the organization AREOPA sc - CM – The Evolution of Change (scGNO20091214) 9
  10. 10. The Organization Evolution Theory Typical growth curve of an organization Employees BOSRF QMF 200 Crisis #3 FMF Crisis #2 20 CMF 5 Crisis #1 Time Adding people adds potential for inefficiency and non- value-added processes AREOPA sc - CM – The Evolution of Change (scGNO20091214) 10
  11. 11. The Organization Evolution Theory Crisis #1 = from commercial to mature organisation Solutions:  Downsizing: 10 people out  nice and cosy again  Appoint a manager to check  19 people waiting for approval at his door  Implement control systems and structure Boss Sales Plan Inventory data Fin. plan Prod. plan Sales Administration Manufacturing Logistics Objective: information transfer  everybody his own info AREOPA sc - CM – The Evolution of Change (scGNO20091214) 11
  12. 12. The Organization Evolution Theory Crisis #2 = from mature to hierarchical organisation What happens at 200 people:  24 signatures for a new pen  non-value-add but increased costs  Central purchasing  cheaper materials but not applicable  Everybody is busy • Procedures, Bureaucracy • Organisational power • Adam Smith: division of labour • Lack of ownership • Contact with customer lost • Company culture? AREOPA sc - CM – The Evolution of Change (scGNO20091214) 12
  13. 13. The Organization Evolution Theory The hierarchical vertical organisation What has happened?  More chiefs than indians Boss What has really happened? Take a Sales Rep:  <25% customer facing time Sales Admin. Mfg Log.  20% driving to the customer  +5% administration  +5% meetings Planning  1-2% training Deb.  >50% = internal lobbying Everybody follows the unwritten rules of the game Cred. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 13
  14. 14. The Organization Evolution Theory The process The customer is the king? AREOPA sc - CM – The Evolution of Change (scGNO20091214) 14
  15. 15. The Organization Evolution Theory What is the organization’s focus Quota JIT Good audit Costs Productivity AREOPA sc - CM – The Evolution of Change (scGNO20091214) 15
  16. 16. The Organization Evolution Theory Hurdles for Change Management Where is your customer focus? The Boss ? Culture differences Quota JIT Good audit Costs Productivity Contradictory Objectives AREOPA sc - CM – The Evolution of Change (scGNO20091214) 16
  17. 17. AREOPA’s Total Change Management rightsizing down-sizing revenues vs RIGHT-sizing downsizing Strategic Exercise expenses  Manage « people change » phases Awareness, interest, trial, adoption  Focus on organizational development tactics Face-to-face meetings, personal profile, Mgmt training, …  Dynamics of resistance to change AREOPA sc - CM – The Evolution of Change (scGNO20091214) 17
  18. 18. AREOPA’s Total Change Management Strategic Exercise – Change is difficult! FROM TO  Processes complex simple standardized standardized & unique  Jobs split task multi-dimension  People controlled independent & accountable  Focus individual team  Structure hierarchical flat  Personnel workers & managers professional & experts Organizational change is all encompassing AREOPA sc - CM – The Evolution of Change (scGNO20091214) 18
  19. 19. AREOPA’s Total Change Management Strategic Exercise – Resistance to change Major raison for failure: lack of change skills Management status is given, but leadership comes naturally Matrix the formal hierarchy and the informal networks Identify levels of resistance to change Inform a l Influence h ig h lo w lo w h ig h Resista nce to C ha nge Organizational turn-around requires change rather than stabilizing orientation AREOPA sc - CM – The Evolution of Change (scGNO20091214) 19
  20. 20. AREOPA’s Total Change Management Strategic Exercise – HOW? 5 management commitments to organizational change  Synchronized mission, vision, goals, objectives & tasks  Downwards communication  Business Process change:  Eliminate non-value add processes  + BPI/BPR/BPE  Build and integrate process and systems  Institutionalize process based structures Strategy alignment  Strategic integration  Operational integration  Functional integration  People and teams  Applications and Infrastructure ... Everything changes ... AREOPA sc - CM – The Evolution of Change (scGNO20091214) 20
  21. 21. AREOPA’s Total Change Management Strategic Exercise – Everything changes! FROM TO  Backbone function/department through-put process  Performance activity based collective result measurement measurement measurement  Manager role supervisor coach  Director role score keeper leader  Priority financial mgmt operational mgmt  Personnel focus boss customer  Values protectionistic productive Aiming at the “switch-over Point” = from traditional to process organisation CUSTOMER ORIENTED AREOPA sc - CM – The Evolution of Change (scGNO20091214) 21
  22. 22. AREOPA’s Total Change Management Focus the process on the customer Change Philosophy Constantly renewing and improving the process Implementation Strategy Involve the whole organisation Implementation Method Process Enabled - Customer driven AREOPA sc - CM – The Evolution of Change (scGNO20091214) 22
  23. 23. Why Change Projects FAIL! People are not against change but against “being changed” Change always causes resistance. Underestimating the resistance Company culture does not allow new / flexible thinking Involving too late the real process owners and the persons who will finally have to work within the new and changing market/customer environment Or if they finally succeed, the project is being realized out of scope, out of budget and/or out of deadlines. An organizational change project is a complex entity, simultaneously deploying changes in technology, company systems and structures. Rarely one single party is able to offer solutions for all different aspects. The increasing influence of Information Technology on company management may bring together parties of totally different disciplines AREOPA sc - CM – The Evolution of Change (scGNO20091214) 23
  24. 24. How to avoid Change failure! Focus on the CUSTOMER S N E P P + - - + + - + - e.g. Kotler’s 4 P’s -> 4 C’s S • Customer Value  product B - + + + • Costs  price • Competition  promotion • Channels  place The internal and external customers judge the process’ output subjectively. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 24
  25. 25. How to avoid Change failure! Focus on the PROCESSES Input Activity Decision Wait state Output Each step in the process adds value Processes are visualized in function of the customer Processes are continuously improved and renewed AREOPA sc - CM – The Evolution of Change (scGNO20091214) 25
  26. 26. How to avoid Change failure! Focus on the PROCES OWNERS Organizations can change by enabling the people who perform the job (= process owners) deploying the change AREOPA sc - CM – The Evolution of Change (scGNO20091214) 26
  27. 27. AREOPA’s Change Philosophy 3 PILLARS for CHANGE • Customers (internal and external) • Processes (interdepartmental) • Process Owners (empower all of them) “Give people chances, not guarantees” (Pres. Clinton in better times) AREOPA sc - CM – The Evolution of Change (scGNO20091214) 27
  28. 28. AREOPA’s Change Philosophy I have a philosophy for CHANGE! What now? “Would you tell me please where I should go from here?” “That depends on where you want to get to.” “I don’t much care where.” “Then it doesn’t matter which way you go!” AREOPA sc - CM – The Evolution of Change (scGNO20091214) 28
  29. 29. Objectives must be SMARTER Specific Measurable Achievable Realistic Time related Empowered Resources  Customer oriented  Known and agreed to by all process owners  How? Qualified (TAPE® = Timely - Accurate - Productive - Efficient) Quantified (CoPP = Cost of Poor Performance) AREOPA sc - CM – The Evolution of Change (scGNO20091214) 29
  30. 30. AREOPA’s Implementation Strategy how to make a difference for your customers & shareholders  Improve Company Image The things we say = the things we do Typical organization and departmental drivers Typical growth pains Hierarchy building, bureaucracy & island creation  Respond to increasing Customer Demands Increasing customer expectation (faster / cheaper)  definition TAPE grid (the 4 KPI’s): Timely - Accurate - Productive – Efficient Ranking of priorities (internal) Focus on top customer requirements Everyone is involved in Customer Service  Account Mngr role AREOPA sc - CM – The Evolution of Change (scGNO20091214) 30
  31. 31. AREOPA’s Implementation Strategy  Identify the 5 layers of Process Mapping 1. High-level Domains + inputs/outputs WHERE 2. Departments/B.U. and Process Owners WHO 3. Hand-off Process Mapping WHAT 4. Task/Activity Descriptions HOW 5. Procedures  Programming HOW  Identifying Cost Reduction opportunities, using: TRIADE thinking – potential for process elimination CoPP analysis – practice “educated guess principle” SIMIST® process simulation + BPI, BPR, BPE TAPE ® grid – measure customer satisfaction AREOPA’s Total Change Management Process Enabled, Customer driven AREOPA sc - CM – The Evolution of Change (scGNO20091214) 31
  32. 32. AREOPA’s Implementation Method AREOPA sc - CM – The Evolution of Change (scGNO20091214) 32
  33. 33. AREOPA’s Implementation Method Creating Awareness serves  to communicate the project objectives to all employees  to eliminate any insecurities in this respect  as an exercise in process-driven and customer-focused thinking  to create a momentum for change  to eliminate any initial resistance to change. Process Mapping & Qualification  All business processes are identified and mapped  Then classified according to whether the processes Supported by existing/appropriate systems and structures, or need to be improved, renewed (reengineered) or defined (engineered) Calculation of the Cost of Poor Performance (CoPP)  CoPP is calculated by applying AREOPA’s TAPE®-grid  management may determine priorities according to its results. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 33
  34. 34. AREOPA’s Implementation Method Process Change Management (BPI/BPE/BPR) consists of 12 specific steps during which the relevant processes are improved, reengineered or engineered. Integrated Methodology  Customer (internal & external) has to be satisfied – external customer involved  Process oriented implies the entire business process, across multiple departments, has to deliver added value  People actively involved in the process, will do the rethinking of the processes AREOPA’s Total Change Management APPROACH  Focus on the transfer of know-how to customers  Permanent support to the internal change managers  Using the AREOPA AIS® Reference Model AREOPA sc - CM – The Evolution of Change (scGNO20091214) 34
  35. 35. AIS® Reference Model The AIS Reference Model (Applied Information Service) is an implementation model built on Organizational Process Technology An integrated, yet modular & scalable approach, oriented towards realization, involving all stakeholders A practical approach to match the organisation, its in- and outputs define the discrepancies, against changing market conditions AIS evaluate current status, work in progress and define areas of priority and focus The AIS Reference Model aims at transforming classical hierarchical organizations into  Customer Focused and  Process Driven organizations  that are better adapted to constantly changing environments  by making use of Process Servicing Technologies AREOPA sc - CM – The Evolution of Change (scGNO20091214) 35
  36. 36. AIS® Reference Model Process-supporting technologies (such as ICT) created the need for service-processes to the spectrum of business processes The AIS Reference Model contains three building blocks:  Company Strategy Block covering the Company’s Business Strategy, the Company’s ICT Strategy, and its Macro Organizational and ICT Governance Structure  Process Change Block covering the Company’s core business processes, and  IT Block covering the Company’s IT applications and IT processes The total project is lead by a distinct Programme Directorship The Company Strategy directs the Business Processes whereas the IT Strategy coordinates Information Systems and related IT processes AREOPA sc - CM – The Evolution of Change (scGNO20091214) 36
  37. 37. The AIS Reference Model® Company Strategy Company Strategy Block Information Strategy • Strategic Options • Aligning investment in IS • Vision Scope • Innovative IS for competitive advantage • Mission • Efficient management of IS resources Development Assess Integration Development Assess Macro Organizational Structure ICT Governance Structure Program Directorship Program Directorship Awareness, TAPE, CoPP e-Discovery - Innovation Process Change Block IT Block Process Mapping & ITSM Categorization IT2D Process OK Acquire an IT application Reengineering Improvement Engineering Define IT Business based on IT strategy Mission, Vision & Strategy BPE BPR BPI • Qualify and categorize ITSM Parameterization & processes Implementation IT CoPP CoPP LIST • Apply process management methodology and tools: Technical Training • AIS – Simist • TAPE-grid 12 1) 1) 1) S 2) 2) 2) • 12-steps methodology T (BPR, BPI, BPE) End-User Coaching E 3) 3) 3) • IT Mgmt application P -- -- -- s 8) 8) .8) M E T Detailed Organization Structures (e.g. Project Mgmt, SMT’s, Outsourcing, … ) H 9) 9) 9) O . . . HR D ® . . . Quality Function 12) 12) 12) Function MIS 37
  38. 38. AIS® Reference Model Change  The AIS Reference Model was developed by AREOPA  The AIS philosophy is based on a 3-phase implementation strategy consisting of: Philosophy  Awareness creation  Goal definition, and  Stepwise implementation  Process-supporting technologies (such as ICT) Implementation Strategy created the need for service processes to the spectrum of business processes  In order to properly scope the extent and content Implementation Methodology (and likelihood of success) of an AIS project, an analysis is made of existing projects and activities and these are than mapped against the AIS Result Reference Model AREOPA sc - CM – The Evolution of Change (scGNO20091214) 38
  39. 39. AIS® Reference Model Change BPI/BPR/BPE  In collaboration with IT consultants, the BPI, BPR and BPE methodology will be applied to those processes where improvement, reengineering or even engineering is Philosophy required  The methodology goes through 12 distinct steps to create a new process that fits the Customer’s needs Implementation Strategy  The requirements for supporting systems and functions (IT, HR, QM, SCM, S&M,... and Mgt Reporting) are defined and detailed organizational structures are Implementation designed and implemented Methodology  Process owners perform cost and benefit calculations  Emphasis lies on the Management of Change: guiding people at all levels during the organizational change Result AREOPA sc - CM – The Evolution of Change (scGNO20091214) 39
  40. 40. AIS® Reference Model Change IT2D  Covers IT applications development and deployment, starting with the choice of an IT application in line with the IT strategy, the parameterization and Philosophy implementation, supported by adequate technical training and brought to live with End User Coaching in order to obtain the initially defined process performances Implementation Strategy targets IT Service Management (ITSM)  The virtual IT department supports the virtual organization Implementation Methodology  IT Strategy must be clearly defined – in alignment with the overall Company Strategy – together with the structural and organizational elements and all IT processes Result must be optimized and created  Methods, tools and best practices used in BPI, BPR and BPE are also applied on the IT processes and organization AREOPA sc - CM – The Evolution of Change (scGNO20091214) 40
  41. 41. AIS® Reference Model Change HR, QM, SCM, S&M,... & MR Systems  In parallel with the above mentioned process change exercises, the supporting systems (incl. HR, QS and Mgt Reporting Systems) are designed for the Philosophy core business processes  Measurement of Process Performance using the TAPE® grid elements Implementation Strategy (Timeliness, Accuracy, Productivity and Efficiency) provides a dashboard for top management to monitor and manage the activities of Implementation an organization Methodology Program Directorship Coordinates and lead all above mentioned activities Result and makes sure that all plans that have been agreed upon are realized within the promised time frames, involving the right people in the right places AREOPA sc - CM – The Evolution of Change (scGNO20091214) 41
  42. 42. AIS® Reference Model Change IST Categorization and CoPP analysis  The IST (=current) situation of the organization is identified and compared with the newly defined Philosophy organization in the previous phase  Cross-departmental core business processes are mapped and qualified in one of 4 categories according to the further treatment methodology: Implementation Strategy  Business Processes that are OK, but need better IT Support/EUC  Business Process Improvement (BPI), with calculation of Cost of Poor Performance (CoPP) Implementation Methodology  Business Process Reengineering (BPR), also with calculation of CoPP  Business Process Engineering (BPE) = new processes required to coop with changing market conditions Result AREOPA sc - CM – The Evolution of Change (scGNO20091214) 42
  43. 43. 4 reasons You want Change ? Sales IECC channels EU / LIC 3P Change Change The 4 vital REASONS  To improve your Image: Measure ment 3S the things you say 12steps must be the things you do Philosophy  To satisfy the ever increasing PERC. Q T A P E Customers’ Expectations Prod./Serv Delivery     Service Implementation Info     Strategy •     Cust.. To tackle your Competition Treatmnt Score well in each segment of the TAPE® grid Implementation Methodology • Cost of Poor Performance (CoPP®) Average process loss = 23% Q • 12% non-timelines & inaccuracy (2) • 25% non-productivity Quality gap Result (1) • 33% non-efficiency / rework t (1) actually perceived (2) expected quality AREOPA sc - CM – The Evolution of Change (scGNO20091214) 43
  44. 44. You want Change ? 4 Sales reasons channels IECC Make it happen ! EU / LIC 3P Change Measure 3S ment 12steps Change build on 3 PILLARS Philosophy 1. Focus on the Customer of the process 2. Continuous improving of the process 3. Emphasis on involving the whole organization through Implementation the Process Owners Strategy Pioneers 1 Proof persons 10 Proof persons Outlaws Implementation and focus on the Gauss Curve to Methodology overcome resistance to change 5% 45% 45% 5% Increased customer satisfaction leads to Result Increased market share, sales & revenue AREOPA sc - CM – The Evolution of Change (scGNO20091214) 44
  45. 45. You want Change ? 4 Sales reasons channel IECC We make it happen ! EU / LIC 3P Change Measure ment Change structured in 3 PHASES 12steps 3S 1. Starting creation of Awareness Philosophy top & middle management and personnel 2. Setting goals Process qualification & mapping Implementation CoPP® (calculation Cost of Poor Performance) and Strategy TAPE® measurements 3. Implementing the change 12-Steps Methodology Implementation Methodology = the new way of working = the new processes are being prepared including all details necessary for its realization = it is known by which persons, in which way, at which costs the different process steps will be executed and what the result will be achieved Result = all tasks necessary for building the new processes are defined, detailed and included in the cost/benefit analysis AREOPA sc - CM – The Evolution of Change (scGNO20091214) 45
  46. 46. From Process Mapping to 4 Sales reasons channels IECC Change Implementation EU / LIC 3P Measure 3S ment 1. WHO are the CUSTOMERS and WHO are the PROCESS OWNERS 12 steps Philosophy 2. Identify & prioritize the Customer requirements (TAPE®) 3. Paired Weighing Ranking Implementation 4. Project Definition Strategy 5. Process Descriptions 6. Identify Deviations 7. Cost & Efficiencies Implementation Methodology 8. Improvement Plan • Define change management areas (= WHAT) • Request each department/function to make presentation of HOW to resolve their inefficiencies Result • Combine and set total resolution AREOPA sc - CM – The Evolution of Change (scGNO20091214) 46
  47. 47. From Process Mapping to 4 Sales reasons channels IECC Change Implementation EU / LIC 3P Measure 3S ment 9. Presentation by process owners to top management 12 steps Philosophy  We went to our customers  We listened and understood them  We did process deviation ranking  We identified where deviation occurs and the causes Implementation Strategy  Then we involved all depts. How to improve our process  We did cost and benefit analysis Implementation Project Team Methodology “We like to start the change” say the process owners Management has no longer a choice… they will approve. Top management Result agreed that it has to happen = we are all willing. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 47
  48. 48. From Process Mapping to 4 Sales reasons channels IECC Change Implementation EU / LIC 3P Measure 3S ment 10. Implement Change Management Project 12 steps Philosophy • Understand and manage the drivers of change • Set Program Directorship • Use the AIS Reference Model Implementation Strategy • Company Strategy Block • Process Change Block • IT Block Implementation 11. Remeasure the TAPE grid Methodology 12. Institutionalize Result ... measurement = continuous process... AREOPA sc - CM – The Evolution of Change (scGNO20091214) 48
  49. 49. Measuring the RESULTS 4 Sales reasons channels IECC EU / LIC 3P Change CoPP calculation (obtain costing elements, keys and data) Measur 3F  Focus on manpower, product and transmission cost ement + related depreciations (Activity Based Costing) 12steps  relate to timing / sequence of processes Philosophy = PROCESS COST (PC)  Determine the cost of deviations / non-performance (= errors, rework, duplication, non-value-added processes,...)  use TRIADE thinking: Implementation Strategy  non-productivity  non-efficiency  non-accurate & non-timely (from customer satisfaction rating) = INTERNAL FAILURE COST (IFC) Implementation  Determine the effect of internal failures to related processes Methodology = EXTERNAL FAILURE COST (EFC)  Root-cause investigation and analysis = APPRAISAL COST (AC)  Add Prevention Costs (waste of investment = Result prevention, training, improvement) = max 10% of CoPP and decreases over time COPP = IFC + EFC + AC = real invested process cost AREOPA sc - CM – The Evolution of Change (scGNO20091214) 49
  50. 50. Measuring the RESULTS 4 Sales reasons channels IECC EU / LIC 3P Change  using TAPE® and CoPP® to  measure the present Measur 3F ement customer perceived quality 12steps  predict the improvements Philosophy  measure the change  applying to  Information & Communication Technology (ICT) Implementation Strategy  Business Process …..  Improvement (BPI)  Re-engineering (BPR) Implementation  Engineering (BPE) Methodology  Business processes as core of performance calculation  TAPE® grid & SNEP® – measure customer satisfaction  SIMIST® Architecture – process simulation & Result implementation AREOPA sc - CM – The Evolution of Change (scGNO20091214) 50
  51. 51. Measuring the RESULTS 4 Sales reasons channels IECC EU / LIC 3P Change  End-user Coaching direct coaching & training effort Measur 3F  on nearly individual basis ement 12steps  over an extended period of time Philosophy  to get the maximum out of the application  Measurable improvements in Implementation  Process quality & performance Strategy  End User’s efficiency  Improvements typically exceed net. Implementation 35%, measured with the TAPE® grid Methodology AREOPA’s Total Change Management Result Process Enabled, Customer driven AREOPA sc - CM – The Evolution of Change (scGNO20091214) 51
  52. 52. TAPE®-grid Customer Satisfaction Change Customer-focused change aims to measurably improve customer satisfaction. The TAPE®-grid measures the customer perception Philosophy through performance indicators related to the 3 process components Implementation Strategy Implementation Methodology Any improvement in customer perception results in reducing the Costs of Poor Performance: these are the process costs due to Result inefficiency (rework) and non-productivity in process steps, and to the rectification of non-timeliness and/or inaccuracies of the output. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 52
  53. 53. SIMIST® Process Simulation Change SIMIST® Architecture dynamic and visual simulation model of the operations Philosophy Implementation Strategy A clear view of your organization Implementation Methodology Based on the 5 layer Process Mapping Result Hand-off Process Mapping = WHAT AREOPA sc - CM – The Evolution of Change (scGNO20091214) 53
  54. 54. SIMIST® Process Simulation Change Start with the business processes Charting them = a first good step Philosophy Deploym ent Chart - Contr actor Review Policy Return report to Implementation Legal Division contractor! Legal Division Strategy No Technical Contractor submits Is report Yes Notify contractor of Assign control Is data No Develop clarification Contractor receives Initial review. Log report in. Technical Division Review and comment. Sign disapproval letter. report for review. complete? receipt. number: approved? request. disapproval letter. Division Yes Sign and approve Contractor receives C.C. Division C.C . Division letter. approval letter. Implementation Methodology But who points out improvements in this chart! Result AREOPA sc - CM – The Evolution of Change (scGNO20091214) 54
  55. 55. SIMIST® Process Simulation Change What are efficient business processes? Philosophy • a group of activities aimed at a specific result • a group of business activities (tasks) that create added value for the customer Implementation • a transformation of input(s) into output(s) Strategy Implementation focused on the customer and the result not on the mechanism Methodology Result AREOPA sc - CM – The Evolution of Change (scGNO20091214) 55
  56. 56. SIMIST® Process Simulation Change • SIMIST® has been developed by AREOPA together with leading universities in the field of simulation techniques • SIMIST® is supported by an interactive information system reflecting your company’s current environment Philosophy • SIMIST® has the ability to simulate alternatives and anticipate future process flows with operational and financial impact of decisions, without experimenting Implementation with the organization itself or indeed ... the customer Strategy • SIMIST® shows how processes perform in terms of • flow (bottlenecks, imbalance,…) • statistics (service level, throughput time, capacity Implementation Methodology utilization, …) • financials (activity based costs, waste, spare capacity) • SIMIST® significantly reduces the time required to analyze present and future (proposed) process Result performance. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 56
  57. 57. SIMIST® Process Simulation Change SIMIST example: present situation “Customer Service Process” Avg : 5 / Var : 2 Avg : 5 / Var : 1 Delay : 12 sec. Info-Desk Philosophy Prepare Info Inter-arrival Time : 2,5 min. Avg : 5 / Var : 2 Avg : 6 / Var : 2 Complaint-Desk Check/Send Implementation Avg : 1 / Var : 0.25 Strategy General PHONE-DESK Avg : 1.5 / Var : 0.5 Avg : 2.5 / Var : 0.5 Order-Desk Implementation Methodology Order-Entry If waiting-time > 20 sec. Avg : 1 / Var : 0.25 Avg : 1.5 / Var : 0.25 Agenda-Desk Result Mailing If waiting-time > 30 sec. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 57
  58. 58. SIMIST® Process Simulation Change SIMIST: the wanted process flow using TAPE® grid Timeliness 90 %  Extra Delay Phone-Call : Info-Desk Accuracy 80 %  New Start Efficiency 90 %  Rework Activity Philosophy Avg : 20 / Var : 5 Productivity 100 % Additional Info Implementation Strategy Avg : 5 / Var : 1 Avg : 30 / Var : Avg : 15 / Var : 5 Avg : 10 / Var : 10 2.5 Prepare Info Send Info Decide Order-Call Implementation Methodology Avg : 15 / Var : 3 Reject Result Phone-Call : Order-Desk AREOPA sc - CM – The Evolution of Change (scGNO20091214) 58
  59. 59. SIMIST® Process Simulation Change SIMIST: financial representation 400000 350000 Philosophy 300000 250000 200000 Sales Implementation Profit Strategy 150000 100000 50000 Implementation Methodology 0 IST IST plus What-if Result AREOPA Facilitating Change Management AREOPA sc - CM – The Evolution of Change (scGNO20091214) 59
  60. 60. You want Change ? 4 Sales reasons channels IECC We make just that happen! EU / LIC 3P Change Measure 3F ment AEP Knowledge Centres 12steps Philosophy  First step: develop the Program Directorship, organized in the AEP Knowledge Center (KC)  Selection of KC leaders, project champions and other core team members Implementation Strategy  Training and certification of core team in AREOPA’s Change Management Methodology  Knowledge Center-team – in collaboration with AREOPA’s Implementation SAMs, Subject-Experts and/or assigned CAPs – undertake: Methodology  Initial Analysis Phase:  Current and intended strategic environment  1-9 of 12=step Methodology Result  Results presented by Process Owners and obtain board, management and process owner’s buy-in AREOPA sc - CM – The Evolution of Change (scGNO20091214) 60
  61. 61. You want Change ? 4 Sales reasons channels IECC We make just that happen! EU / LIC 3P Change Measure 3F ment Implementation Phase 12steps Philosophy  Awareness creation  CoPP of top-10 processes – management selects 3-5 processes to start with  12-steps for Process Improvement – BPI Implementation Strategy  12-steps for Process Re-/Engineering – BPR / BPE  SIMIST  All above in parallel with 12-steps: IT2 Implementation  Present Implementation Plan Methodology  Roll-out and Measure AREOPA or assigned CAP (Certified AREOPA Partner) will assist, train and guide through-out the process of up to 4 projects, gradually Result transfer ownership to KC-Team / Process Owners, after which they will take full ownership, train additional resources and roll-out AREOPA sc - CM – The Evolution of Change (scGNO20091214) 61
  62. 62. You want Change ? 4 Sales reasons channels IECC We make just that happen! EU / LIC 3P Change Measure 3F ment End User Coaching (EUC) 12steps Philosophy  In order for the implementation of new systems to be successful all involved employees need to be adequately trained in line with the processes they are part of, particularly the End Users, who are probably the most Implementation Strategy impacted by changes in their daily activities  EUC programmes are based on the expectations of both the management and process owners and include Implementation measurable objectives in terms of process Methodology performance and specific scripts for process-based training  EUC mentors (pedagogically trained people, not technical Result consultants) carry out Holon sessions (individual coaching in groups of 2 to 3 users) AREOPA sc - CM – The Evolution of Change (scGNO20091214) 62
  63. 63. You want Change ? 4 Sales reasons channels IECC We make just that happen! EU / LIC 3P Change Measure 3F ment We also realize with you 12steps End-User products Philosophy  Measure change  Strategic Exercises  SIMIST® process simulation Implementation  Customer Satisfaction Measurement – SNEP® Strategy  Cost Of Poor Performance – COPP®  IT Architecture  End User Training & Coaching Implementation In B2B we make you profit through Methodology Transfer of know-how by (licensed)  High Level BPR body shopping  Strategic Alliances Result  Virtual Participation  In-sourcing AREOPA sc - CM – The Evolution of Change (scGNO20091214) 63
  64. 64. Sales You want Change ? chann 4 els reasons IECC We make it happen ! EU / LIC 3P Change Measure 3F ment We support you through 12steps  Strategic Alliances Philosophy  AREOPA Group International – a global network of independent experts, collaborating in a closed virtual network (GNO = Global Network Operations) representing cross geography and industry/expertise Implementation Strategy  AREOPA Knowledge Centres (AKC) by ECO Zone  AREOPA Training Centres (ATC) – regional & AEP location  Certified Alliance Partners Implementation  = consultancy services providers, covering 1-all ECO zones Methodology  Fully trained and certified by AREOPA  Access to AREOPA’s Knowledge Base  Subject-Experts Insource Pool Result  AREOPA has access to subject-experts sourced from CAPs and project outsourcing providers AREOPA sc - CM – The Evolution of Change (scGNO20091214) 64
  65. 65. AREOPA’s Business Proposition Change “No Cure, ... We Stay”  AIS is a smart combination of a complete and pragmatic Change Management philosophy and Organizational Development and Change concepts, brought together Philosophy and continuously enriched with field experience  The philosophy implemented in the AIS Reference Model leads to fixed price projects with measurable Implementation Strategy and committed results, by focusing on:  Customers  Processes, and  Process Owners Implementation Methodology  Process performance is measured and improvements are monitored by means of TAPE® Grid Elements  Results to be achieved are defined upfront for a fixed Result price, and AREOPA agrees to stay onboard until the agreed objectives are achieved AREOPA sc - CM – The Evolution of Change (scGNO20091214) 65
  66. 66. You can Change ! Let’s start ! Change AREOPA is the leading-edge 4 knowledge and practice provider Sales channels reason s IECC managing organizational change Philosophy creating leverage for our partners and EU / LIC 3P “excelleration” in business performance Measure 3S For CUSTOMERS ment 12steps Implementation Strategy Guaranteed predictable and sustainable results Implementation AREOPA Challenging the Methodology KNOWLEDGE ECONOMY Result and bringing the standards of INTELLECTUAL CAPITAL to market. AREOPA sc - CM – The Evolution of Change (scGNO20091214) 66
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