3. Management Central departments Controlling IT Personnel Finances Division C (Non-foodmarkets) Division B (Supermarkets) Division A (Warehousing) Dispo-sition Sorti-ments Adver-tising Dispo-sition Sorti-ments Adver-tising Sorti-ments Dispo-sition Adver-tising Design of OrganisationsClassic: Divisional Organisation Organisational units are formed by the needs of external clients
5. Sales/ Stores Procurement Logistics Topic A: Seniors Topic B: WeeklyActivities Topic C: Double earner Design of OrganisationsModern: Process-Oriented Organisation Organisational units are formed on the basis of business objects Allocation of former splitted functions to organisational units on the basis of objects, definition of process owners
6. Design of OrganisationsModern: Process-Oriented Organisation Organisational units are formed on the basis of business objects Allocation of former splitted functions to organisational units on the basis of objects, definition of process owners
11. Project ManagementObjectives Objectives are the fundamental basis for planning, controlling and supervising activities Objectives Benefit objectives = intention of the project(e.g. forming of an efficient flow organisation and an efficient organisational structure)‘ Basis for later definitions of modelling intentions Formal objective = further constraints Costs expenditure on material and human resources Times schedule End of project Milestones
12. Steering committee Decision maker and surveying unit of the project Leader Coordination of the project team Team Methodical anddepartment experts Example: Project ManagementOrganisation oftheproject
13. Tasks Surveying and steering Ensure the predefined objectives Methods of the project controlling Match of: project results – the management – strategic objectives of the administration Balancing as-is and to-be variables Use of project management software – methodical patency (e.g. use process models for project planning) Adjustment of capacities Prioritisation of critical activities Permanent check of efficiency ... Project ManagementControlling
14. Create readiness of change Involve employees in the brainstorming of potential solutions Ensure the commitment of the executives Precise differentiation of different project tasks Precise milestones and deadlines Free capacities of the affected employees Motivate the team members Increase implementation competences Project ManagementCritical SuccessFactors
16. · Defineobjectives · Defineaffectedenvironment · Create projectplanning · Form projectorganisation · Form projectcontrolling Project · Take factorsofsuccessintoaccount Management · Defineinformationneeds · Configuremethod · Informemployees Preparationof processmodelling · Identifyprocesses · Choosecapturingscenarios · Increasemethodicalexpertise · Capture processes Modelling of processlandscape · Consolidateprocesses - · Prepareprocessmodels · Anayseandevaluate Useof processlandcape Processmodels - · Design processlandscape · Definemodelinglresponsible - · Create maintenanceguidelines Continuousprocess management · Organisational establishmentof processresponsibilities Need of Goal Oriented Modelling „The one without any objective won‘t find the right way“ The objectives have to be predefined at the beginning of the modelling job
17. Sample Modelling Objectives Organisational Information Systems Engineering Engineering Documentationof the Organisation Selection of (ERP) Software Ereignis A Model-based Process-oriented Customising Reorganisation Funktion A XOR Ereignis B Ereignis C Continuous Business Process Software development Funktion A Funktion C Management Ereignis D Ereignis E XOR Workflow Benchmarking XOR Management Folgeprozess Folgeprozess Knowledge Simulation Management Rosemann (2003): Prozessmanagement, p. 58.
23. · Defineobjectives · Defineaffectedenvironment · Create projectplanning · Form projectorganisation · Form projectcontrolling Project · Take factorsofsuccessintoaccount Management · Defineinformationneeds · Configuremethod · Informemployees Preparationof processmodelling · Identifyprocesses · Choosecapturingscenarios · Increasemethodicalexpertise · Capture processes Modelling of processlandscape · Consolidateprocesses - · Prepareprocessmodels · Anayseandevaluate Useof processlandcape Processmodels - · Design processlandscape · Definemodelinglresponsible - · Create maintenanceguidelines Continuousprocess management · Organisational establishmentof processresponsibilities Identify Scope of Activity The analysis is focused on the scope of activity It should be outlined precisely
24. Regulation Frameworks of the Public BodyFunctions of a Regulation Framework Control the complexity of a huge amount of networked processes Need of a superior model which demonstrate the coherency of the processes and facilitates the navigation through different models model with a high degree of abstraction Definition:A regulation framework structures relevant elements of a master as well as their relations amongst each other in a highly abstract way. The choice of structure and of the used language is free. The intention of a regulation framework is to convey an overview of the master and to point out the relations between elements and relations of different levels of abstraction.[Meise (2001), S.62]
25. Regulation Frameworks of the Public BodyFunctions of a Regulation Framework Fundamental focus: Revelation of superior relations Forming of a consistent set of synonyms and notions Representation of the new organisational structure Logo Static frameworks are not suitable for a dynamic atmosphere Use of traditional and old notions does not create any awareness of new structures There is no need of a defined modelling language
26. Regulation Frameworks ofthe Public BodyConstructionProcessof a Regulation Framework Take two important aspects into account: Strategic component Development of a structure for the new organisational design on the basis of strategic considerations Graphical component Translation of the structure in a graphical representation with the objectives overview Collocation Communication platform
27. Regulation Frameworks of the Public BodyStrategic Component Definition of the objectives of the process management project Content Dimension Timeline Define macro structure Market-based, external view – 80s Resource-based, internal view) – 90s Combined strategy - today Identification of core-, coordination- and support-processes General identification of processes; e.g. on the basis of reference models (deductive method) Individual identification of processes (inductive method)
28. Regulation Frameworks of the Public BodyGraphical Component Reorganisational projects can only be successful with the support of the employees Possibility to influence the point of view of the employees with the help of a regulation framework Gain attention Base-Rate-Fallacy When estimating probabilities, agile sensations are rated higher than static ones (graphic vs. tons of numbers) Perceivability Bias Components that are easily perceivable are higher rated than the ones that are difficult to perceive The perceivability depends on The spatial alignment of the elements (hierarchies) Size Forms, colours, fonts
29. Regulation Frameworks ofthe Public BodyReference Design Basic structure of reference design “house” Meise (2000)
32. Mgmt Controlling, Quality Management Routing Prozesse Entitlement Daten Logging Functions Data Qualifikation Processes EK ML Onsite Service Order Processing Support Accounting CostAccounting Human Resources Samples of Regulation Frameworks Call-Center-Σ
37. · Defineobjectives · Defineaffectedenvironment · Create projectplanning · Form projectorganisation · Form projectcontrolling Project · Take factorsofsuccessintoaccount Management · Defineinformationneeds · Configuremethod · Informemployees Preparationof processmodelling · Identifyprocesses · Choosecapturingscenarios · Increasemethodicalexpertise · Capture processes Modelling of processlandscape · Consolidateprocesses - · Prepareprocessmodels · Anayseandevaluate Useof processlandcape Processmodels - · Design processlandscape · Definemodelinglresponsible - · Create maintenanceguidelines Continuousprocess management · Organisational establishmentof processresponsibilities Capturing of Processes as a Source for the FutureAnalysis and Evaluation
38. Capturing Methods Interview (oral interrogation) Questionnaire (written interrogation) Observation Activity sampling Study of documentations Self-logging Routeing slips
39. Sample Contents Task What has to be done? How is it to do? Which items are to be dealt with? Responsible Who is responsible for the process? Which qualifications are required? Resources Which resources are needed? Which performance features should they have? Information Which information is available / needed and requested?
40. Interview The interviewer (analyst) leads the interrogation Different forms of interviews Standardised interviews based on a questionnaire Half-standardised interviews with a predefined block of content as well as a flexible scheme of questions on the basis of a structured interviewing guideline. Non-standardised interviews based on an open guideline.
41. Questionnaire The questions are written down and then sent to the recipients Particularly with regard to a bigger number of respondents (10-20 employees or more) Questions that do not need any further explanations To capture quantitative data (counting, measuring) Similar respondents
42. Observation Observation of the activities Different forms of observations Structured observation The observer documents his observations in predefined categories (e.g. Activity sampling) Unstructured observation Only rough main categories as kind of a framework (e.g. permanent observation)
43. Activity Sampling Objective of an activity sampling is to conclude based on a small number of cases (the sample) the entire set of possible events Observation of the interesting issue multiple times Forms of activity sampling Counting of frequencies Measurement of durations
44. Activity Sampling Definition of the objective Definition of the observing characteristics Definition of the number of observations ( determine the accuracy) Definition of the number of tours Definition of the start time of the tours Consider work time and flexitime Definition of the routes Design observation form Observation Evaluation
45. Interviews as one Instrument to Capture Processes Interview are THE instrument to gather knowledge about processes Basic idea: bottom-up approach with functional focus Possibility to immediately develop enhancement proposals of the employees High acceptance of the employees (small expenditure of time) Multilevel approach Alternative 1Interview and process modelling at the same time; affirmation through the employee afterwards Alternative 2Interview based on electronic guidelines; later modelling of processes; affirmation through the employee at the end
46. Efforts of an Interview The methodis fast evenwhendonemanually
47. Interviews as one Instrument to Capture Processes Alternative 1 – Interview and process modelling at the same time; affirmation through the employee afterwards + faster description of the processes within the software + possibility to affirm the contents with the software - Not possible with all kinds of processes - Information is lost because of the strong focus on software Alternative 2 – Interview based on electronic guidelines; later modelling of processes; affirmation through the employee at the end + open negotiation + focus on respondent and on the subject, not on a tool - later description in the software tool
48. · Defineobjectives · Defineaffectedenvironment · Create projectplanning · Form projectorganisation · Form projectcontrolling Project · Take factorsofsuccessintoaccount Management · Defineinformationneeds · Configuremethod · Informemployees Preparationof processmodelling · Identifyprocesses · Choosecapturingscenarios · Increasemethodicalexpertise · Capture processes Modelling of processlandscape · Consolidateprocesses - · Prepareprocessmodels · Anayseandevaluate Useof processlandcape Processmodels - · Design processlandscape · Definemodelinglresponsible - · Create maintenanceguidelines Continuousprocess management · Organisational establishmentof processresponsibilities Need of Targeted Modelling „The onewithoutanyobjectivewon‘t find therightway“ The Objectiveshavetobepredefinedatthebeginningofthemodellingjob
49. Negotiation – Attitudes Attitudes Interest and curiosity: explore subjective perception Respondents as experts: the respondent are always right – the major aspect is the subjective point of view; even contradiction may be right Empathy: try to think the way the respondent does Conscious naivety: methodically controlled ignorance
50. Negotiation – Handy Rules Beginning: achieve good atmosphere (friendly, open, relaxed) Listen carefully: listen exactly and ask precise questions; do not interrupt Signalise respect, interest and attentiveness: eye contact Affirm (mhm); take the respondent serious Do not show your own point of view No scepticism (“really?”) or disagreement (“I can’t believe it”) No agreement (“same here”) No astonishment (“Seriously?!”) No ingratiation (“Good job man”)
51. Negotiation – Handy Rules Green questions: let the respondent explain special notions, activities and situations! Even aspects that seem to be self-evident! No overhasty judgements: it is better to ask again than to agree to fast Short, comprehensive questions: not to complex, difficult… No theoretical notions (identity, professionalism, socialisation) except with experts Endure silence Possible functions: structure thoughts, dramaturgical If bewilderment: ask again Do not preserve the opposite: endure difficult subjects and ask difficult questions but do not insist!
52. Practice Choose interviewees (key persons) First contact: pre meeting, precise arrangements Clarify objectives and the process (subjects; time, place, attendants) Record: sometimes reasonable (ask in advance) Handling of the data: affirm anonymity and clarify use Accomplishment: Known place and enough time Finish: express gratitude; if necessary arrange further contacts
53. Possible Problems Objective unclear Expectations not ratified External annoyances Lack of confidence Person Interviewer Subject too difficult, awkward
54. Next Steps Protocol (same day)general conditions; conversation; informal conversation (without recordings); abnormalities; first thesis/presumptions Affirmation of the results Evaluation
57. · Defineobjectives · Defineaffectedenvironment · Create projectplanning · Form projectorganisation · Form projectcontrolling Project · Take factorsofsuccessintoaccount Management · Defineinformationneeds · Configuremethod · Informemployees Preparationof processmodelling · Identifyprocesses · Choosecapturingscenarios · Increasemethodicalexpertise · Capture processes Modelling of processlandscape · Consolidateprocesses - · Prepareprocessmodels · Anayseandevaluate Useof processlandcape Processmodels - · Design processlandscape · Definemodelinglresponsible - · Create maintenanceguidelines Continuousprocess management · Organisational establishmentof processresponsibilities Where We Are Workshop Deducedemandofinformationandconfiguremethod Identifyandmatchprocessesandcreateregisterofprocesses As-Is Analysis on thebasisofmanagedinterviewsandelectr. guidelines Transfer results in thetoolas well as in reportsandproposals
58. As-Is Analysis ofProcessesofthe Public BodyAnalysis ofthe Models Evaluation of the as-is models on the basis of predefined objectives of the public body Economics (e.g. cost savings) Service and quality (e.g. acceleration of processes) Organisation (e.g. documentation of the organisation) IT (e.g. realisation of online applications) Operationalisation Identification of weak points, particularly in IT-support of processes Organisational structure and flow-orientation Use of reference models and benchmarks as a basis of comparison for the identification of weak points
59. Elimination Parallelisation Avoidanceofrebounds Simplification Standardisation Acceleration Modificationsof IT-support To-Be Model andProcessOptimisationforthe Public BodyPossibleModifications
61. Experiences out of Past Modelling Projects Similar weak points can be found in all processes in all public bodies No professional justification Reason lies in the general characteristic of the administration of documents and the processing of business transactions Several processes only include small reorganisational potential which can be immediately made available The reorganisational activities which promise to have the best potential enhancements include overlapping activities rather than cross-sectional technologies and are only profitable when embracing many processes Present approaches are just suitable for small reorganisational modifications
62. Repeating Samples of Problems Processes are intransparent Ambiguity of dependences and coherences may lead to failures Delegation cause problems Distribution of tasks cause problems (everyone is doing everything) Processes are undefined Many contact persons Many contact channels Difficult coordination without control Communication is inconsistent Informal in the front-office vs. formal in the back-office SG A to SG B – unbureaucratic / SG B to SG A - bureaucratic
63. Examples of Overall EnhancementsOrganisational Setup of a central HR changemanagement Thereexistmanyprocessesconcerning HR Problem: Nooronlywidespreadresponsibilites, lowtransparency Adoption ofconsistentrulestooptimisethewayofpaperbasedcommunicationwithinthedepartments Long processing time causedbytheinternalpaperbasedcommunications Adoption of a process-basedrisk-, quality-, andcomplaint-management High estimatednumberofunreportedcasesofcomplaints Objective: Establishment ofpossibilitiestoenhancethequalityandtopreventcrises
64. Examples of Overall EnhancementsTechnical Adoption of a fax solution for the whole public body Many possibilities to replace letters by fax or e-mail E.g. changes in timetables: 40 cases p.a. Documents of 5-20 pages, sent to up-to 15 persons per case Print, copy, mailing Many advantages through e-fax or e-mail Media disruption caused by fax (print, fax, scan) Allocation problems caused by a single fax of a department Unification and standardisation of fax and e-mail channels There already exist IT-approaches, but they are not implemented yet because of lacking demand! Displacement of paper-based laws by online solutions
66. · Defineobjectives · Defineaffectedenvironment · Create projectplanning · Form projectorganisation · Form projectcontrolling Project · Take factorsofsuccessintoaccount Management · Defineinformationneeds · Configuremethod · Informemployees Preparationof processmodelling · Identifyprocesses · Choosecapturingscenarios · Increasemethodicalexpertise · Capture processes Modelling of processlandscape · Consolidateprocesses - · Prepareprocessmodels · Anayseandevaluate Useof processlandcape Processmodels - · Design processlandscape · Definemodelinglresponsible - · Create maintenanceguidelines Continuousprocess management · Organisational establishmentof processresponsibilities The Following Steps Presentation in front oftheconcernedemployees Makethecontentavailableto all employeesconcerned so far. Implementationofthe shownproposals Institutionalisationoftheprocessmanagement
67. Change: need Necessity As-isanalysis - Application / Observation Target definition Circle of Quality in a Concept Testing / Learning Organisation Evaluation Measure Realisation / planning Introduction Project planning Circle of Quality
68. Reorganisation Causes Changes Changes cause Uncertainty Tensions Disavowals Conflicts The strength of the reactions depends on the historical organisation the culture of the organisation Conflicts Cause costs Lead to a high expenditure of time Damage the agency (e.g. with judicial actions) Influence the working atmosphere
69. Resistances in Reorganisational Projects Why is resistance a topic of change? What is resistance and how is it expressed? What are reasons of resistance? How does resistance appear? Why does change seems to be that hard? What can be done?
70. The Part of the Psychological Dimension Estimated 2/3 of planned changes do not reach their aim or fail. Reasons: interdependence between many different causes, e.g. a wrong idea of the organisation or of the human factor. Organisations are no machines; human beings are no small wheels in a gear, that can be changed by a small adjustment of rules It is essential to gain the employees actively for the upcoming changes!
71. The Part of the Psychological Dimension Formal organisation Informal organisation
72. Resistance Against the Changes in Organisations Resistance is a force, that aims to keep or to recover the status quo and that tries to prevent or to stop the change. In contrast, acceptance is only reached, if there exist a positive readiness to act. (z.n. Taut, 2001)
73. Different Occurrences of Resistance Nonverbal (attitude) Verbal (speak) Discomposure, concerns, arguments, rumours, forming of cliques, etc. Disagreement contradiction, criticism, threats, polemic, tenacious formalism, etc. Active (attack) Passive (escape) Avoidance silence, to daff, to trivialise, to mock, to debate unimportant things, etc. Inactivity, inattention, tiredness, absence, emigration, etc.
74. Reactance Strong external impact and basic reorganisations are perceived as threats of freedom and self-determination and can breed reactance. The extend of reactance depends on the importance of the threatened freedom and the strength of planned constraints.
75. Establishment of Acceptance 1/2 Human being are experts on their own problems The quality of own solutions is higher than external proposals Concerned persons tend to implement their own solutions more consequently Concerned persons should get involved ones
76. Establishment of AcceptanceConcepts of Quality Development and Mediation Modification instead of insistence Process as a methodical basis Lead of the process by professional third parties Diagnosis of the As-is state Development of visions instead of permanent disasters Mediation of solutions Mediation of agreements Start of visionary activities Implementation and evaluation of made agreements Social approach: participation Valuation of the concerned persons
77. Establishment of acceptanceApproaches of the PICTURE method Integration of employees:The consistent and simple description of the processes by using the PICTURE components allows employees and executive positions to document their processes by themselves. This leads to an integration of the employees into the modernisation project and establishes acceptance from the beginning. Moreover the knowledge about the processes is recorded exactly where it exists. How to apply the PICTURE method:The PICTURE method consists of a process-oriented guideline that is fitted to the public sector. It can be used for precise project definitions, for the planning of individual steps of a procedure and for role allocations.
78. Establishment of AcceptanceApproaches of the PICTURE Method Transparent process landscape:The standardised description and the work-sharing documentation of the processes by the integration of employees allows that almost the whole process landscape can be captured and not only single and regional constricted processes.
79. Process-Oriented ReorganisationIntroduction of the Processes The introduction of new structures is beside their design an essential part of process management Strategies Pilot Introduction of new processes in one location and in one functional area Step-by-Step Introduction of new processes in one location or in one functional area Big-Bang Introduction of new processes in all locations and in all functional areas
80. Process-Oriented ReorganisationIntroduction of the Processes – Project Marketing Establish acceptance Constant communication of objectives Communicate awareness of problems Influence by executives Think of incentives Early trainings Strengthen exchange of experiences and information Manage transparency by documentation Concept of communication Road shows Personal meetings Internal and external publications Multimedia presentations Training concept Differentiated trainings for executives, middle management, referees and process managers Trainings of expertise and methodology
82. Recommendation to Install a Continuous Process Management Necessity of a continuous process management Dynamic determining factors: Evolutionary implementation of reorganisation activities Changing objectives in the process design
83. Process-Oriented OrganisationContinuous Process Management After the process oriented reorganisation: continuous process management Incremental, consistent improvements of the flow orientation The role of continuous process management Answer to a changing environment Continuous management of interfaces especially concerning unclear and wider design problems Continuous check of the achievement of predefined aims in process and resource efficiency as well as target costs basis for new enhancements Continuous attendance of the implementation and the associated modifications of the underlying process model Consecutive communication and advancement of the “thinking in processes” Implementation of process oriented controling instruments (e.g. workflow management)
84. Recommendation to Install a Continuous Process Management Introduction of new roles Process responsible Secondary permanent job Responsible for efficiency and effectiveness of the assigned processes Responsible for the application of the reorganisation activities Executive of the leading organisational unit Process manager Bundling of activities of internal project managers and external method experts Methodical support of the process responsible Accomplishment of trainings
85. Process-Oriented OrganisationContinuous Process Management – Process Model Implementation of the processes and continuous process management Runtime Roll-out of the new processes Monitoring, capturing of process data (instance- and exception-data) Analysis Collection and presentation of process data Concentration of process data, aggregation to performance indicators Evaluation of the performance indicators and comparison with to-be values
86. Process-Oriented OrganisationContinuous Process Management – Process Model Redefinition of objectives Analysis may lead to a redefinition of original objectives Reasons: Changed environment Inefficiencies of processes caused by erroneous implementation or modeling Modelling and implementation Determination of the need for changes Apply modifications Smaller modifications: complementation of the concerned documents Broad modifications: if necessary remodelling Establish modifications New cycle of the continuous process management
88. Questions that You Are Able to Answer Which processes exist in our organisation? Common process register How does the processes run? Simple and reproducible documentation of the processes with responsibilities, documents and associations to organisational units and products Which potential enhancement is possible in the processes? Enhancements focused on specific processes as well as across multiple processes Qualitative and quantitative conclusions Is the adoption of a specific software profitable for us? Quantified potential of software (e.g. DMS-Systems) What are the demands on new IT methods? Process oriented analysis and identification of demands on IT by involving the user How can a continuous process management be installed? Nomination of process responsibilities Nomination and introduction of a process manager
