Improving organisational performance

Improving organisational performance

1. process=sequence of activities transforming/modifying an input

   • re-engineer a process=move an activity/delete activity,
     • because activity X=not add value, reduce time, improve responsiveness, reduce cost, improve safety, reduce environmental impact, comply with new regulations

2. fundamental process performance measures

   • Time
   • 3E's
     • effectiveness-doing the right thing-achieve object. Efficient-doing the thing right-balancing resources, Economy-cost in money terms.
   • other
     • compliance with-health and safety laws, environment laws, information security laws.

3. what is a business process

   • strictly not a manufacturing process, any other kind=involving document processing+making use of PC's
     • use PC's to:improve processing insurance claims, improve purchasing efficiency, display goods+enable arrangements for selection+payment=Amazon, recruitment
   • Davenport+Short(1990)-set of logically related tasks performed to achieve a desired business outcome
   • Hammer+Charpy(1993)- a set of activities that, taken together, produce a result of value to a customer
   • two important characteristics
     • end point occurs at an interface with customer and thus draws attention to the customer.
     • cross departmental boundaries, don't recognise traditional functional boundaries.

4. business process re-engineering

   • analysis and design of workflows and processes with and between organizations- Davenport&short 1990's
   • Important- critical analysis and radical redesign of existing business processes to achieve breakthrough improvement in performance measures-Teng et al-1994
   • advocates- dramatic improvement in performance in contrast to continual improvement philosophies like lean thinking, promoting/encouraging radical organizational innovation.
   • can fail because- lack of management commitment leadership, process= viewed tactical instead of strategically, unrealistic scope+expectations, insufficient attention paid to people issues, resistance to change