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Reengineering the Corporation

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by

Ye Duh Feldman

on 12 May 2014

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Transcript of Reengineering the Corporation

End
What does it look like?
No more Standardization
Changes that occur on the journey of Reengineering
The Hunt For Reengineering Opportunities
Process Redesign - Reinventing the Business
Recurring characteristics to think about to develop new ideas:

Reengineering the Corporation
Presented by: Cat Tran Nguyen, Yetta Tatik
Case Worker
Forgone Assumption:
People don't have time or inclination to monitor and check their work.
Delinearizing
Better to have multiple versions of the same process to handle different scenarios.
Perform work where it makes more sense,
by relocating work across organizational boundaries
Reduce external contact points
Why spend more money on control
then the damage that can be
done from having no control?
A hybrid company having decentralization and centralization at the same time
Putting back together what Adam Smith and Henry Ford had broken into tiny pieces
People's job change from simple tasks to multidimensional
Decrease in non-value adding work
Work becomes more rewarding/satisfying
Focus is on customers

Benefits of Process-Team Enviroment:
Role changes from being controlled to empowered
"We don't want employees who can follow rules, we want those who will make their own rules!"
Training
The Crisis That Will Not Go Away
Education
how to handle 1 situation
following rules
exercise judgement to do right thing
increasing skills and competence
how?
why?
The story of Great America

increases insight and understanding
When work is fragmented people
are paid for their time, so that efficiency
will be increased
Performing process work allows companies to measure performance and pay on the basis of the value created.
promotion based on performance
promotion based on ability
organization structure becomes flat
no more time consuming meetings
The disappearance of top Fortune 500 companies
What Do Organizations Want?
Flexibility
Lean
Innovative
Dedicate
1) As few people as possible should be involved in the performance of the process.
2) Try turning assumptions on their head or throwing them out entirely
3) See what technology allows you to do, and look for the creative application of technology.
How to sell change to your employees?
Internal Factors
Still operate on yesterday paradigm
Diseconomies of scales
External Factors
Customer take charges
Competition Intensify
Change become constant
"Here we are and we can not stay here."
"This is what we as a company need to become."
Develop a need for change!
case for
action
vision
statement
business
problem
marketplace
demand
diagnostics
costs of
inaction
business
context
what kind
of organization
will become
how will
it operate
results that
are needed
What is Reengineering?
What Reengineering Isn't?
Not Automation

Not Downsizing

Not Reorganizing

Not Quality Improvement

What Reengineering Is?
Starting Over...
Toss Away The Old System
"Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical component measures of performance"
Reengineering:
FUNDAMENTAL
RADICAL
PROCESS
DRAMATIC
Why Do we Do What We Do?
Why Do we Do it The Way We Do?
Ask the most basic questions:
Get to the root of the problem
Disregard the existing structures
Achieve Quantum leaps in performance

Holistic focus on business objectives +
How the process related
Leader
Authorize and motivate the overall process
Visionaire and motivator
Ensure everyone is going in the same direction
Process Owner
A manager with responsibility for a specific reengineering process
Work with other managers to gain cooperation
Reengineering Team
A group of individual dedicated to one process
Between 5-10 people
Insiders : Work inside the process
Outsiders: Don't work in the process
Steering Committee
Policy Making Body of Senior
Hear and resolve conflicts between different processes
Create Overal strategy
Reengineering Czar
An individual responsible for developing reengineering techniques and tools
Manage overall process in a day to day basics

Who Will Reengineer?
1. Identify the hidden process
2. Create a process map
4. Try To Understand The Current process
Look for knowledge and insight
look on the customer end - Jetblue Story
Figure out what the process currently provide

87% are gone
Organization increasingly faces with precarious situation
Consequences
Delay
Error
Inflexibility
Fragmented work

Connection to Cube One Framework

How Company decide which process to be reengineer?
Product development: Concept to prototype
Sales: prospect to order
Order fulfillment: order to payment
Service: Inquiry to resolution
3. Selecting the process
Dysfunction - The one is broken
Importance
Feasibility
Full transcript