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CHAPTER 8 - Coggle Diagram
CHAPTER 8
Section 1 : Directed or Facilitated Change Implementation?
Directed Change
Planned Change
Top down
Hard Change:
Reducing costs
Directive:
Senior management directs change
Coercive:
Imposes change on employees, with risks if they do not comply
Facilitated Change
Planned or Emergent
Wider span of employees
Soft Change:
Social and professional human interactions
Collaborative:
Broad employee participation
Facilitated:
Consultative, employee opinions are taken into consideration
Scale of Change
Fine-Tuning:
Unit level
Incremental Adjustment:
Incrmental changes
Span of Change
Modular Transformation:
Specific department in an organization undergo large change
Corporate Transformation:
Restructuring the whole organization and its thought processes
Key Change Approaches
Figure 9.1
1. Developmental Transitions
Constant incremental adjustment to changes in the external environment - Consultative
2. Task-focused Transitions
Constant adjustment in specific organizational departments - Directive
3. Charismatic Transformation
Radical changes - Consultative
4. Turnarounds
Reshape thinking and practices through quick discontinuous change - Directive, sometimes Coercive
Section 2 : Directed Change Methods
Business Process Re-Engineering
(BPR)
Redesigning and rethinking the core process of the organization in a radical way
Second-Order change - Top down approach
Implementation
1. Prepare organization
(strategic assessment and communicating reason for re-engineering)
2. Analyse and Rethink the fundamentals
3. Restructure the organization
4. Introduce information and measuring systems
Lean - The Toyota System
Focus on removing
wastage
by analyzing and streamlining processes which do not add value
Overproduction
Waiting
to be put together or transported
Transporting
There should be a minimal movement. Products should be produced perfectly to match demand (Pull)
Defects
Value Stream Mapping:
Focuses on resource flow and helps identify processes that consume resources without adding value
Figure 9.2
Organizations that produce
high volumes
of products in a
standarised repeatable procedure
= Utilize Lean the most
Quality circles:
group of employees trained to solve problems to improve performance
Six Sigma
Applies statistics to eliminate root causes of errors or defects, by reducing a process' unwanted variation
Criticisms:
Tight control over its operations - discourages experimenting
Differentiates
by being able to measure and quantify financial returns, basing decisions on statistical data
Table 9.1:
Executive Leaderhsip
Champions
Master Black Belt
Black Belts
Green Belts
Yellow Belts
Section 3 : A Framework for Direct Change
Change as a top-down approach, includes a wide range of employee participation
1. Establish a sense of urgency
2. Form a powerful guiding coalition
3. Create a vision
4. Communicate the Vision
5. Empower others to act on the vision
6. Plan for and create short-term wins
7. Consolidate changes and instigate more change
8. Institutionalize new approaches