Organization and Business Processes

De La Salle University Mr. Glenn Sipin

Case Analysis 2: Business Process Redesign Tactics for Managing Radical Change

Members: Bautista, Clarese Galang, Daniel Sanchez, Kathlyn Tiu, Angeli Section: S13

Group Name: Group 9 Group Member¶s names: Angeli Tiu Clarese Bautista Daniel Galang Kathlyn Sanchez Course & Section: BISPROC S13 Professor: Mr Glenn Sipin Date & Time Submitted: 16Mar2012; 0940H Received By: Case Analysis 2: Business Process Redesign Tactics for Managing Radical Change Criteria: Comprehensiveness of Information (40%) : Consistency of Discussion (30%) : Up-to-date Information (30%) : -------------Total

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Table of Contents Finance Co. ««««««««««««««««««««««««««................... p 3-6 Business Background ««««««««««««««««««««««««« p 3 BPR/ BPI Initiative «««««««««««««««««««««««««... Initiator of Change ««««««««««««««««««««««. p 3 Business Process Description «««««««««««««««««« p 3-4 BPR Discussion «««««««««««««««««««««««. p 4-5 Individual Assessment & Recommendation «««««««««««««««.. p 5-6 Food Co. ««««««««««««««««««««««««««««««« p 7-10 Business Background ««««««««««««««««««««««««. P 7 BPR/ BPI Initiative ««««««««««««««««««««««««.... Initiator of Change ««««««««««««««««««««««. p 7 Business Process Description««««««««««««««««««. p 7-8 BPR Discussion «««««««««««««««««««««««. p 8 Individual Assessment & Recommendation «««««««««««««««. p 9-10 Defense Co. «««««««««««««««««««««««««««««« p 11-12 Business Background ««««««««««««««««««««««««. p 11 BPR/ BPI Initiative ««««««««««««««««««««««««« Initiator of Change «««««««««««««««««««««. p 11-12 Business Process Description ««««««««««««««««« p 12 BPR Discussion «««««««««««««««««««««««. p 12 Individual Assessment & Recommendation ««««««««««««««.. p 13-14 General Recommendation ««««««««««««««««««««««««.. p 15 Bibliography ««««««««««««««««««««««««««««««. p 16

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I. Finance Co A. Business Background The first organization that was examined of their reengineering efforts was Finance Co, a financial service company that earns revenue of $600M and has 2,000 employees. According to Stern (2010), a financial service company is any firm that offers financial products and services to its clients; those companies can be classified into four. The first classification is banks that earn money by charging interest payables to its borrowers and from the other services that they provide. The second classification is Insurance Companies that earns income from charging their clients an amount of money for insuring their service in a given amount of time. The third classification is Investment banks that offer advice to firms in other industries for them to raise capital in the industry. The last classification is Investment firms that invests money on behalf of their clients that shares with the profit or a loss of the business. FinanceCo falls under the insurance company; but regardless of its classification, those financial service firms share the same challenges that can create or break the business. Financial Service Companies often have a hard time in acquiring their clients because the clients themselves do not really know what to choose from because they are often supplied with an overwhelming amount of information they cannot process. Another challenge in financial companies is persistence or the result of an increase or decrease of the proportion of their shares compared to its ³starting value´ based on a certain quote after the evolution of time. In response to these challenges that have already caused decline in their margins, one of the main departments of FinanceCo decided to transform their company to a mass marketer that provides only one offer regardless of market segment differences to a personalized service company that focuses more on the personalization of a client¶s needs. In that case, they would be able to market their offer better in a target niche and manage their resources better. Their aim after the transformation was to achieve profitability and growth in the company. B. BPR/BPI Initiative a. Initiator of Change The management decided to transform their organization¶s way of doing things by refining the company¶s strategy due to unprofitable operations and lost in market shares. Their aim was both to offer innovative products and quality service to their customers.

b. Business Process Description The finance company started out as an old-fashioned mail order insurance company. Their first step towards organizational transformation was through introducing initiatives that will reengineer the work flow in operations area that aimed to test their new ways of doing things. In order for those initiatives to be implemented, they have envisioned a strategic business

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model that focused on the processes of the company rather than its functions; they have also envisioned redefining their employee¶s roles. Other than that, they have also changed from storing data in a mainframe computer into a more modern client and server system to further support reengineering efforts through the upgrade of IT. In addition to that, they have also changed the vertical structure of the company into a flatter structure that was mostly composed of teams for them to realize that change was happening. And in order for the implementation to be successful, the culture of the employees should also change.

c. BPR Discussion Most of the change tactics started out as revolutionary design then it was evolutionarily implemented. First of all, in how management was done; they hired new managers outside of the organization to head the reengineering initiative which is a revolutionary tactic but the managers as opposed to the revolutionary way of implementation of doing one-on-one communication to key stakeholders, they used a evolutionary way in which it will take more time because it used a tactic that will achieve organization wide broad communication. Secondly, in employee involvement, the tactic used was revolutionary because they had chosen the ³best of breeds´ but it became evolutionary because those that were chosen were still employees of the company, not outsiders. In addition to that, at the start of the implementation, there were full time employees that dedicated their efforts to test the new process, they were also separated from the old work approach which was a revolutionary practice but gradually declined as they approached the pilot stage leaving more representative people that were involved making the implementation evolutionary. Third, on the aspect of motivation; they encouraged their employees to change by when they brought up that the company had poor financial results and they are undergoing a crisis, which is a revolutionary tactic but the employees did not consider themselves as the key to improve their company¶s condition rather they saw themselves as a tool to better implement new customer focused and sales strategies, which is more of self improvement leaning to an evolutionary tactic. Fourth, on the aspect of change of current structure and culture; the company designed to implement a major organizational change, that is considered as a revolutionary tactic but then they saw this as unrealistic because of the risk that comes together with this so they shifted to an evolutionary way wherein they based their compensation on the willingness to learn of an employee. It was implemented in a way that they made the employees adapt to the change rather than removing them because of resistance. Lastly, on the aspect of IT changes; the company envisioned IT as a new way of getting things done however, they did not implement the all-at-once systems strategy under the revolutionary tactic rather what they did was first learned their role and what followed that was a the learning of the new technology. This revolutionary to evolutionary mixed implementation is an important understanding in reengineering because this will ensure the success of the project due to the daring objectives of the revolutionary aspect and the reserved implementation that will avoid putting the company

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into risks. This will also redefine the previous understanding of reengineering as an overall revolutionary change.

C. Individual Assessment and Recommendation a. Daniel Galang The problem of Finance Co is that it has poor relationship on its customers and clients. Tendency is that it may lose its clients and may soon result to the downfall of the business. As an act for that, the company started the reengineering program by changing the nature of the financial institution into a personalized service financial institution. Through that way, they may be able to sustain their clients since their new structure is to fully accommodate its clients. The change of structure made the company to work cross-functional in providing services to its customers, as a result, it had regained its clients through their new workflow. Same to the FoodCo, a revolutionary approach was more recognized during the design than in the implementation of change. The main proponent of the change was to instill a sense of teamworkbased workflow. Top management and consultants focused mainly on transforming the business by supporting and apply new processes to change the traditional workflow of the company. b. Kathlyn Sanchez At the start, Finance Co.¶s initiated BPR was because of its unprofitable operations regarding customer satisfaction and service. The firm then decided to change different aspects of key behavior levers which are jobs, skills, shared values, information technology, and measurement systems. The biggest plan was to increase the productivity of customer service by altering their strategy plans, business workflows, and structure redesign. IT on this firm didn¶t influence a big leap for BPR, in fact, implementation became more of an evolutionary change. The planning stage was all directly routed to be revolutionary; however, by the time the implementation began, it became slow and actually was delayed for a year or more. Although IT didn¶t play a role for the firm¶s initiative to implement BPR, it placed a major contribution in the improvement of customer communication. They have successfully brought the plan in the IT field. Additionally, structure and strategy change were also successfully implemented even after the delay. The other levers, on the contrary, were not taken notice completely because of flexible milestones and frequent communications amongst the employees. As a result, employees have grown the assumption of uncertainty towards the radical change deployment due to the lengthy time of implementation. BPR does not only include the revolutionary way of changing an organization. As opposed to Hammer and Champy¶s definition of BPR or applying radical changes in the organization, a change is considered BPR if the outcome of implementation is radical and immensely different from before even if the implementation or planning is done evolutionarily.

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c. Angeli Tiu The way how reengineering was implemented in FinanceCo proved that reengineering needs a ³clean slate´ was really a myth because the company did not start from zero, what they did was just to redefine some of their existing processes that will achieve the outcomes that they envisioned. They have also proved that a reengineering initiative that was designed to be revolutionary can be implemented evolutionarily. In the case of FinanceCo, it is too risky for them to suddenly shift from the old way, mail based, to the new way, using IT, because they were aiming for an organization wide transformation. Some of the points that needs improvements are: First, The way how they motivated change; they can improve on this by focusing their efforts either only in the revolutionary way wherein they will motivate change by alarming their employees of an ongoing crisis or by encouraging their employees to work for self-improvement in the evolutionary way so that they would be able to motivate the employees to change in a certain way because what happened to FinanceCo was that they were stuck in the middle between revolutionary and evolutionary due to communicating an anticipated crisis that did not really alarm the employees for them to change. Another point that they have to improve on is the way how they manage change. During the initial stages of the implementation, they have dedicated a full time management team in order for them to manage the conversion and training that is associated with the system but as time passed, the officer that was responsible was given additional responsibilities that changed their roles; it is suggested that FinanceCo should sustain their resources that are aimed to converse and train people because people are the first casualty of BPR and in order for BPR to be successfully implemented, they should be sure that people are managed well. It is suggested that the FinanceCo officer should not change his roles or given other responsibilities so that they would be able to avoid unnecessary confusion. Lastly, it is better if the organization will follow as what it has been planned (e.g. using a revolutionary tactic in design while using an evolutionary in implementation) rather to shift from revolutionary to evolutionary due to unsustainable reengineering designs. d. Clarese Bautista

Finance Co. had a problem of client-costumer relationship. The purpose of reengineering is to make a personalized service financial institution. This reengineering would help the company gain back their clients that were lost due the unaccommodating financial institution. The company must not only be focused on giving the clients a friendly institution. They must not forget the importance of the service that they must give to their costumers in order for them to feel that they really have chosen the right finance company. The company must not only consider the value of an accommodating financial institution, but at the same time a credible and committed service.

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II. Food Co. A. Business Background Food Co. is a large retailer and manufacturer. It produces revenue that is in excess of $1.5 billion and all in all they have 3, 500 employees. The firm had decided to make a BPR effort particularly on the manufacturing unit of the firm that has 40 manufacturing plants across the United States. In 1960, the unit head of the department integrated a manual manufacturing system in one of the plants. The plant used that system for years until the unit head had decided to execute a standard computer-based MRPII System in all the plants. The objective of the newly proposed system is to improve the plant¶s effectiveness, general control, and allow the manufacturing unit to grip its size among costumers and suppliers. The implementation of the new system in all 40 plants affects bakeries and dairy plants to inedible plants. The design of the change that Food Co. plans to implement is revolutionary, but the way it is implemented is evolutionary. Implementing steps need not to be abrupt but a gradual process so that workers are able to catch up. Though the implementation of the change is evolutionary, the whole idea of the change remains revolutionary because the system of the firm would be shifting from a manual system to a modern system²MRII System. The implementation of the new system was not successful as expected because there were a lot of factors that has greatly affected the firm and an example of which is its financial state. The amount of time and money that was allotted for the training of employees had made a great impact financially. The firm though was able to pull off the negative effects of the system, and they were able to get back on track gradually. The changes in the company are still shifting from revolutionary to evolutionary continuously because of the different problems rising as the firm implements the new system. B. BPR/BPI Initiative a. Initiator of Change In the late 1980¶s, the head of the business unit made a team that has a task of comparing their very own manufacturing systems with that of the other firms¶. As the had analyzed the pieces of data they gathered, the found out that their systems and processes were incompetent. Because of what the team found out, the need for BPR was developed based on the senior management¶s vision and data that has been gathered based on the way of processes of other firms. b. Business Process Description In 1960, the unit head of Food Co. had integrated a manual manufacturing system in one of their plants. That has been the way the firm does their processes until he had planned to implement a standard computer-based MRPII system in all of the 40 plants that the firm has. The main objectives of the new system are to improve the plant¶s effectiveness, general control, and allow the manufacturing unit to grip its size among consumers and suppliers. The firm wanted to

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be updated with the new technology through the implementation of MRPII system. The system will affect bakeries and dairy plants to inedible plants. This change will greatly affect the employee¶s jobs and processes of the firm, and the information flow will be redefined and will be standardized throughout the different plants. c. BPR Discussion In Food Co., there was a revolutionary approach to the design of what they want to implement, but the implementation itself is evolutionary. The managers who are part of the firm for a couple of years initiated the drive of the BPR. They are the ones in charge of monitoring the new implementations in the firm. Aside from the veteran managers, there has been a new recruitment of managers that was made. Those new managers were in charge of the day-to-day leadership of the proposed project. The firm also hired consultants from outside to help polish the project and scrutinize it before approving of the fund will be made. In the other hand, the involvement of employees was based on what they call ³best of breed´. It is the selection of the employees that the firm sees as capable of coping to the new processes on a fast paced manner. The employees who were selected was tasked to work full time and they must give all their effort; they were also physically separated from the people who are performing their old processes. The involvement of employee is the same as the leadership of this whole project, that is, revolutionary in design, and evolutionary on the implementation itself. The communication aspect of this new process is evolutionary. The firm wants broad communication. The leaders of the teams in each plant are required to help their plants keep up with the progress of the process initiative. It is only the leader who does all the leading, but also every week, the team conducts weekly meeting in order to give the members of the team to contribute on the ways to be done in the process. The team also distributes newsletter every 2-3 months throughout the firm and they also give conceptual and live training of the MRPII system. There were a couple of changes that has been due to the implementation of the new system, and there were results that arose. The firm thought that BPR would give them an opportunity to produce more wealth. They expected that significant cost reductions on their financial implications. But during the implementation, different problems arises such as some plant closings, cost operating costs drastically, downsizing the organization, and etc. Hence, the new process gave them a problem that must be resolved immediately. The firm really had a problem financial because they got really focused on funding for the training of the employees for the new process. The implementation of the new process in Food Co. did not go well because of the problems they faced financially. The efforts of the people in the firm were in the core of pilot and field implications. Also, the phase of the implementations had shifted to a slow paced manner due to the inability of the firm to keep up with the planned and expected progress.

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C. Individual Assessment and Recommendation a. Daniel Galang FoodCo is a large company that has almost 40 manufacturing plants. Due to the fact that managing a large number of plants would require a great amount of work, the installation of MRPII system was implemented to instill the dissemination of information all throughout the organization. As a result of the new changes in the IT, employees need to adapt to change in order to embrace the new implementation of MRPII system. Jobs and processes were redefined to secure that change plan will be of success. As seen on the reengineering program of FoodCo, a revolutionary approach was first practiced during the design and planning process while evolutionary approach was done during implementation. As for the FoodCo, the approach of implementing a new computer-based system seems to be the most desirable plan in order to improve the management process in each plant and to coordinate the distribution of information within the plants and all throughout the company. Through this method, decision making will be much faster since the flow of information in the company is working at the most desirable level b. Kathlyn Sanchez Similar to Finance Co, the planning and design started out as revolutionary apparently because of its radical plans on IT, reengineering initiatives, and task changes on the organization. The research revolved around the installation of MRPII systems enabling separate plants from different places co-work with each other for faster process completion. The shift of information changed from traditional to computer-based upon installing the system making the firm¶s productivity result change considerably. In comparison with the two firms, Food co improved its operation more on transformation instead of effectiveness and efficiency. Though there were incremental changes on effectiveness, the other two fields were given more priority. On the task changes, food co didn¶t follow the principles of BPR based on the definition of Hammer and Champy. According to Hammer and Champy, the firm should organize their process around outcomes and not task but what Food Co did instead was to set around task for a desired outcome. Food Co should have made a workflow where everyone is following a process instead of a task to make operations faster. Another flaw the firm has unknowingly done was to transform the milestones to flexible goals for the adaptability of the employees. The firm should have strictly followed the milestones intensifying BPR success. The change collectively was radical though and it is still considered as BPR. c. Angeli Tiu FoodCo, a large food retailer and manufacturer, aimed their re-engineering efforts to standardize their companies by transforming their manual manufacturing system into a computer based MRPII system. The initiator of change, which was their senior manager, had managed

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change well by spending resources on educating and training their employees with the new system. In addition to that, the senior manager was also able to immerse himself with the reengineering efforts that exemplified a model for the employees to follow but unfortunately, when he retired, the re-engineering efforts shifted from revolutionary to evolutionary and together with that, they also had difficulties in funding what is needed in order for them to sustain the reengineering efforts. And this resulted to plant resistance, project delays, and resistance. In response to this, it is recommended that there should always be a person that serves as the ³standing image of re-engineering´ or in this case, someone should replace the retired senior manager so that there would still be a direction for the employees to follow. Furthermore, before starting the re-engineering initiatives, they should be sure that there is enough resources that are available to support the activities related to manage the change due to re-engineering because people will be stuck at the middle not knowing what to do that will definitely result to delays, resistance, unwilling to move on. It is really important for FoodCo to have the needed amount of resources for them to manage technical transformation in the organization. d. Clarese Bautista

The firm wanted to shift from their manual manufacturing system to a standard computer-based MRPII system. After they had implemented the new system, different problems arose that has to be resolved as soon as possible. The firm must first consider the advantages and disadvantages, and the negative and positive effects if they want to apply a new system. They must first weigh the possible options that could enhance their processes if which one of the options would be more beneficial and has the least negative effect on the company. Rushing is the least thing they must consider because not everything goes well if they are rushed. There must be an ample time allotted in planning new changes in a firm. Not only does a firm must consider the advantages and disadvantages of a new process, but they also must be ready to handle the problems that can emerge. They must have different alternatives on how to address different problems in order for everything to be manageable that will eventually leads to a success in the new process.

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III. Defense Co A. Business Background In the year of 1990¶s, the defense sector of United States came to the point of altering its structure and rightsizing its personnel. As for that, it had a big impact to DefenseCo which primarily provides industrial equipment to the defense sector of United States. It had cause a huge reduction of revenue for DefenseCo and further resulted to downsizing its personnel and cost-cutting its product. Added to that, the competition became more intense since other manufacturers of military equipment were affected. Competitors of DefenseCo restructured their company¶s efficiency in providing service to the U.S. Government. Instead of a 12 months process of submitting proposals to the U.S. government, the competitors revised it to 3 months process and in addition, the delivery process of equipment also changed into a one year process instead of a two years process. As a result from that, it had put more pressure to DefenseCo since other competitors started acted to the restructuring of the U.S. defense industry. Of course, DefenseCo cannot lose to its competitors and also needs to start a reengineering program to maintain its profitable transactions to the U.S. Defense sector; the main focus of the program is to attain efficiency while improving the work flow inside the company. B. BPR/BPI Initiative a. Initiator of Change There are many initiator of change that can be identified for DefenseCo. One of the main initiator of change is the purchasing department of DefenseCo. The purchasing department was said to be performing poorly and was always flooded with paperwork. Other than that, the purchasing department is operating as a functional department instead of process based. Also, downsizing the 165 employees would hence result to headcount savings since the head count does not merely generate a more productive environment for the purchasing department and the employees that are needed for the reengineering program must be those which are qualified to perform and conform to the reengineering in the purchasing department. In other words, those who are not qualified and are resisting to the reengineering program will most likely be removed to avoid any cause that will delay of implementation of change. Other initiator of change is the restructuring of the defense sector of the United States government. DefenseCo, as a manufacturer of military equipment to the U.S. government, was much affected by the sudden change and downsizing in the U.S. military. In addition, competitors had reduced their cycle time of processing proposals to government and delivering equipment. DefenseCo was forced to confront the pressure which both the U.S. government and competitors had brought to the company. Lastly, the declination of sales and budget had been a major initiator of change since it stresses that the middle management needs to come out with a solution in order to compete with a declining defense budget. As for that, a change of workflow or a change of process must be

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implemented to create incremental changes that will help in attaining a profitable position for the company. b. Business Process Description The reengineering program to be implemented is to improve the work process in the purchasing department of Defense Co and to regain profitable position in the defense industry in the United States. The successful application of the business process will result to refinement of jobs and introduction of new tasks. This scheme will redesign the workflow and thus will remove the old process in the purchasing department. Along with the implementation of the new process, some middle management positions were removed since employees will be exposed to a more decisive environment. This means that employees within the purchasing department will be given the right to make judgments and somewhat will be less supervised. New system will also be a part of the new business process since IT personnel will be accommodating the needs of the purchasing department. Culture is obviously altered since a new workflow was introduced to the department thus, it will require employees to adapt or at least to conform to the new implemented processes. All in all, the new business process reengineering aims to strengthen the department and the company as a whole. The expected effect of the successful reengineering is to regain the profitable state of the company in the most efficient and market-competitive manner. c. BPR Discussion Defense Co practiced a mixture of both revolutionary and evolutionary approach during the planning stage and implementation of change. The first phase of the reengineering is to alter the purchasing department¶s structure and culture. A top-down management was introduced to the employees of the purchasing department. The employees were given the privilege to estimate the situation and make lawful decisions by themselves that was never practiced before. New roles and responsibilities were also introduced and some middle management was removed to the department due to the fact that less supervision will be implemented within the department. Changes in workflows were also introduced and information dissemination was also changed through Information Technology. Personnel were trained to adapt with the new system and new roles were introduced for managing the new platform that was implemented by IT. An evolutionary approach was then applied during the implementation of the new IT capabilities because employees are not used to the new system and adaptation with the new system is the probable result of the change. In the end of all of the new changes much affected the culture of the department since new means of working standards were introduced to the employees.

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C. Individual Assessment and Recommendation a. Daniel Galang For the DefenseCo, the reengineering program that was implemented was to practice efficiency of workflows and to restructure the purchasing department. Since the organization doesn¶t want to lose to its competitors who had already changed their cycle of processing proposals and delivery, they focused on fixing the purchasing department since it needs to be improved due to the reason that the work in the department is quite hectic. For it to focus only on one department makes the process of reengineering more feasible to implement with a much higher success rate compared to those organizations that will change the entirety of its structure. The reengineering was successfully completed after three years. The reengineering program might be much better if the company also restructured the marketing department for it not only to focus on the U.S. military industry but also to introduce the whole company to the global market of military industry. Though it may sound really tough to compete in the global market, chances are the company might gain more profitable and sustainable status since manufacturing to the global market would mean more clients but it might also result to a less profitable one if the company has too many competitors. To give assurance that they may be able to compete in the global market, a strong reengineering program must be implemented cross-functionally to improve the overall aspect of the company. b. Kathlyn Sanchez The Defense Co firm is the most consistent in terms of BPR planning and implementation. A reason behind the consistency is the scope of the BPR initiative. Since Defense co only focuses on one department, it is relatively easier to apply radical changes in a small group of people. The goal of the firm was to install upgraded systems preferably replacing former IBM systems to Macintosh. The IT department also played a large role in the development of workflows and processes of this firm because of dramatic changes on almost all of the key behavior levers of the organization. Even culture was planned meticulously to sustain the efficiency of the BPR implementation. Recruiting a consultant outside too was a big move for the firm, fortunately, it had benefitted the firm. The flaws, however, on the implementation and design was the motivation of the employees to participate in the change. The communication was not well executed. Although hiring a consultant outside decrease bias on decision making, consultant on the inside too should have contributed to the implementation. c. Angeli Tiu DefenseCo having been pressured by a competitive environment was forced to reduce their cycle time and hand-offs of the equipments that they produce so that they would be able to ³survive´ in the industry. DefenseCo, focusing only on a functional unit, makes it easier for them to implement re-engineering due to its narrow scope. But unfortunately, they have also

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experienced problems in communication. DefenseCo held breakfast meetings that was open to people from all departments in order for the management to present status reports and for them to answer questions but only 40 out of 160 attended. This shows that there is still a problem of the flow of information about re-engineering around the company; and this lack of communication will definitely hinder the company to achieve a smooth change because majority of the employees would still be uninformed of what is happening and they might fear change. It is recommended that they require employees to attend those meetings in order for them to be able to engage themselves and participate in re-engineering efforts that will encourage them to accept change. d. Clarese Bautista The company was only focused on one division of the entire firm, which is the purchasing department. The firm had decided to focus on restructuring the purchasing department since it has gained attention for the piles of work that has occurring in the said department. Though the reengineering went well after a couple of years, the company must only focused on making ways for the betterment of the department. Equal attention must be allocated to each department in order to prevent other problems to occur. Focusing only on one department would neglect the solution and attention for other problems other than the purchase department¶s to be resolved. The firm might be too blind not to see that there are also problems in the different departments because they focus so much time on improving the purchase department.

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IV.

General Recommendation

The group suggests that before a company would consider performing reengineering in their business, they should at first measure the resources that they have so that they will know the right tactic to implement re-engineering, thus, be successful. This will prevent the possibility shifting from a proposed designed tactic to another due to lack of resources; this will also lessen the confusion that might result from uncertainty.

Regardless of what tactic the company will be implementing under leadership, the group suggests that they should not restrict themselves in only involving insiders or outsiders according to the tactic that they have chosen because if only insiders are used, they might not be able to see the underlying problem of the process due to lack of objectivity; and if only outsiders are used, they might not have all the information that they need because they are not the ones who are responsible of the company¶s activities. The group recommends a team that is composed of insiders and outsiders so that the insiders may supply the needed information needed to the outsiders and the outsiders in return would be able to evaluate the current process objectively and together, they would be able to formulate a plan that will truly benefit the company.

Every company must consider the advantages and disadvantages of the processes that they envision to implement in order for them to be prepared to every possible situation that might occur when the new process has been implemented. Companies must weigh which of their proposed upgrade or enhancement of a process is best for the company; changes that least affect the company negatively. They must not only have one plan, but they should consider having a couple of back up plans in order for worst case scenarios to be manageable.

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V.

Bibliography

Persistence in Financial Matters (2006) in SpringerLink Retrieved March 16, 2012 on http://www.springerlink.com/content/l412126757684552/ Valuing Financial Service Firms(N.A.) in NYU Stern Retrieved March 16, 2012 on http://pages.stern.nyu.edu/~adamodar/pdfiles/papers/finfirm.pdf

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