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Practice

Test
by

Jonathan du Preez

on 16 September 2011

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Transcript of Practice

CHANGE
HAPPENS Fighting with change... J. du Preez The approach that was followed to achieve the objective of this study consisted of the following four activities: Developing an enterprise engineering process that a commercial organisation of any size can use to successfully transform itself Conducting a case study in order to validate the process from a practical perspective In such a dynamic environment an organisation’s future profitability and growth relies heavily on its ability to continuously, effectively and efficiently transform/re-engineer itself (Hammer & Champy, 2001) The problem however is that 70% of the change initiatives that are launched by organisations fail to deliver the benefits they were intended to provide (Blanchard, 2010) Why are only 30% of change initiatives successful? Question: Organisations launch the WRONG KINDS OF CHANGE INITIATIVES given the type of situation they are in and/or they INEFFECTIVELY MANAGE AND EXECUTE the change initiatives they decide to launch Answer: Research approach... Research Objective How to execute
the process Persons involved
in the process Research
validation 1 2 3 4 Reviewing literature related to enterprise engineering in order to identify the process steps and determine their sequence Researching the various methods, tools and techniques that can be used when performing each step (How & Who) Interviewing experts in the field of enterprise engineering in order to validate the technical correctness of the process Step 2: Step 3: Process step identification
& justification Step 4: Project
portfolio
management & project management Business
model & business architecture design Economy Society Technology Expert interviews Case study Strategy formulation Industry Step 1: Legislation &
regulations External
environment
analysis Conducting an external environment analysis & a competitive analysis Competitive analysis For example:
- Newly implemented legislation & regulations
- Changes to current legislation & regulations
- Existing legislative & regulatory gaps For example:
- Economic climate (inflation-, exchange-, interest- and economic growth rates)
- Economic trends (globalisation)
- State of public infrastructure and services For example:
- Health issues
- Population skill & education levels
- Demographics
- Changes regarding societal tastes & values
- Cultural, labour and lifestyle trends For example:
- Existing disruptive or beneficial technologies
- New/emerging disruptive or beneficial technologies For example:
- Trends within the industry
- Demand vs. supply within the industry Strategy formulation Priority Future impact on profit margin Strategic position delection based around one or maximum two of three generic strategic positions: 1: Low cost leadership 3: Value proposition innovation 2: Customer intimacy - are achievable
- are measurable (yardstick)
- have an allocated timeframe
- are aligned with its desired
strategic position Business model design - Identify the business processes that are currently not performed

- Identify the business processes that are currently performed

- Identify the business processes that are currently performed, but are
ineffective and/or misaligned with the strategy

- Identify the business processes that are currently performed and are
effective and aligned with the strategy Organisation structure design Performance measurement system design - Management team External environment analysis: - Management team - Line functions - Marketing team - Sales team - Product development
team - Facilitator Competitive analysis: Revenue streams Partners &
Suppliers Key
Activities Key
Resources Channels Customer
Relationships Customer & Market Segments Cost Structure - Management team - Line functions - Facilitator Strategy formulation: - Management team - Facilitator Business model design: - Facilitator Business architecture design: - Management team Project portfolio management: - Senior employees with project
management skills Project management: Future impact on revenue Priority Priority Priority Large Small/No impact Large Small/No impact Project portfolio management - Identifying the set of transformation projects

- Deciding when to initiate each of the projects

- Identifying & resolving dependencies and overlaps between projects

- Halting or cancelling projects if required

- Changing the scope of the projects if required

- Monitoring the overall performance of the projects - aim of the project

- benefits to be obtained from successfully executing the project

- deliverables to be generated by the project

- each deliverable’s resource requirements, estimated cost, planned start & end dates
& acceptance criteria

- stakeholders involved, their roles and their contact details - List of tasks that need to be performed in order to successfully execute the project

- The expected start and end dates of each of these tasks

- Dependencies between the tasks

- Resources responsible for the execution of each of the tasks - Anticipating events that will have a negative impact on the success of a project if
they were to take place

- Describing each of these events

- Determining which of a project’s deliverables could be impacted by each of the
events

- Describing the impact that each of the events could have on a project’s deliverables

- Rating each of the events in terms of their likelihood of occurrence and impact
magnitude

- Responding to these events by implementing mitigating controls The enterprise engineering process must be technically sound and based on the correct theoretical principles!

Part of this study was therefore validating whether or not this is the case

This was done by conducting interviews with the following five enterprise engineering experts:
- Expert 1: CEO of an enterprise engineering consulting firm
- Expert 2: Lead enterprise architect at a multinational manufacturing organisation
- Expert 3: Strategy manager of a division within a ultinational manufacturing organisation
- Expert 4: Enterprise engineering consultant
- Expert 5: Enterprise engineering consultant The enterprise engineering process must be practical!

Part of this study was therefore validating the enterprise engineering process from a practical perspective

A case study was conducted at an organisation that supplies paper based packaging products to the retail and industrial markets within South Africa Most organisations currently in existence operate in an environment that is very dynamic

The only way that an organisation can thrive is by continuously re-engineering itself

The majority of organisations however struggle to do this

This study delivers a solution to this problem in the form of an enterprise engineering process

In other words, this study provides organisations with the ability to fight change the only way that is effective: WITH CHANGE! Conclusion Offerings &
Value Propositions Revenue streams Partners &
Suppliers Key
Activities Key
Resources Channels Customer
Relationships Customer & Market Segments Cost Structure Offerings &
Value Propositions Process design & Business
architecture
design - Operations team - Management team - Project management consultants 3 2B 2A 1 Strategy - Measuring project performance in terms of cost, schedule and quality

- Identifying the causes of poor project performance

- Implementing corrective measures to improve project performance if possible

- Stakeholder communication in order to identify existing issues

- Resolving identified issues if possible Project administration: - Supply chain team - Marketing team - Sales team - Product development team - Operations team - Supply chain team Develop to-be value stream model Primary value stream 1 Primary value stream 2 Primary value stream n Support value stream 1 Support value stream 2 Support value stream n Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 Process
9 Process
11 Process
13 Process
16 Process redesign... Per role Required
behaviour Performance
metrics Incentive scheme Business Unit Business Unit Business Unit Role Role Role Role Role Role Job position Job position Job position Job position Job position Job position Job position Job position Employee Employee Employee Employee Employee Employee Employee Employee Employee Employee Job position Activity 1 Role 1 Physical information input Electronic information output Software
system 1 Activity 2 Role 2 Physical output Activity 3 Role 3 Physical information output Physical information input Electronic information input Software
system 2 Analyse the value stream model to determine: Project plan: Risk management: - Scheduling and arranging project meetings and workshops

- Recording the minutes of project meetings

- Arranging payments to project suppliers

- Arranging parking, internet access, building access etc. for project stakeholders

- Arranging travel itineraries

- Preparing project documentation and reports

- Distributing project information, documentation and reports

- Etc. Project
management Planning Controlling Process
12 Process
14 Process
15 Scope definition: Problem management Set strategic objectives that: Process 1 Research objective: Process
10 Job position - Process owners
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