Developing leadership strategies to implement radical change to improve business situations

Instruction Details

This assignment assesses your creativity and knowledge in developing leadership strategies to implement radical change to improve business situations.  The unit learning outcomes that would be assessed through this assignment are:

6.2 Evaluate the various leadership styles for radical change.

6.3 Apply radical change concepts to a case study.

In business scenarios when the “radicalness” of the planned change increases, more revolutionary change tactics needs to be implemented. Business Process Redesign (BPR) is one of the tactics of revamping the businesses at an accelerated pace by reengineering business process, organization structure and use of IT in the organization.

The article ‘Business Process Redesign: Tactics for Managing Radical Change‘ discusses cases of three different organization. The tactics and initiative used to implement BPR in these three organizations differ in their approaches and need for change. Read the article and write a paper addressing the following points.

1. Compare and contrast the BPR initiatives of the three cases discussed in the paper touching upon its suitability in various scenarios.

2. Identify a situation in your workplace where you see a need for radical change in the business process.

• Discuss the situation, the scope and depth of change required. As a leader, what tactics and BPR initiative would you use to implement the change (or changes if there are many).

Case

FinanceCo is a large financial services company. One of the main divisions of the firm began BPR in late 1 980s with an attempt to transform the company from a mass marketer to a personalized services company. The division had experienced declining margins because of problems with persistence and higher costs to acquire customers. The BPR initiative was aimed to result in significant improvements in overall profitability and growth.

DefenseCo was a large manufacturer of industrial equipment. The BPR initiative occurred in the largest business that primarily sold military equipment to the U.S. government. Because of the restructuring and the downsizing of the U.S. defense industry, the company faced the challenge of maintaining a profitable division with a significant reduction in demand. Cost cutting and downsizing had become the order of the day. The new competitive environment had already resulted in major cycle-time reduction in submitting proposals to the government from six to twelve months to three months. Further, the time between the award of the manufacturing contract to the delivery of the equipment was cut from twenty-four months to twelve. All this put pressure on purchasing to reduce its cycle time and hand-offs.

FoodCo was a large food retailer and manufacturer. The BPR effort was undertaken in the manufacturing unit of the firm that had nearly forty manufacturing plants all across the United States. The head of the unit had previously implemented an integrated manual manufacturing system in one of the plants in the 1960s and now envisioned implementing a standard computer-based MRPII system in all of the plants in order to enhance each individual plant’s effectiveness, enhance overall control, and allow the unit to leverage its size with customers

Answer Guide

Comparing and Contrasting BPR Initiatives in Three Cases:

In the article ‘Business Process Redesign: Tactics for Managing Radical Change,’ three distinct cases of Business Process Redesign (BPR) initiatives are discussed, each in a different organizational context. Let’s compare and contrast the BPR initiatives of these three cases:

1. FinanceCo: FinanceCo aimed to shift from mass marketing to personalized services to address declining margins and customer acquisition challenges. The BPR initiative was focused on enhancing profitability and growth. This scenario involves a strategic shift in business model to cater to individual customer needs. The BPR tactic here is centered around customer segmentation, data-driven insights, and service personalization. It involves a change in how the company interacts with customers, offers tailored solutions, and utilizes technology to manage customer relationships.
2. DefenseCo: DefenseCo underwent BPR in response to a reduced demand for military equipment due to industry restructuring and downsizing. The focus was on maintaining profitability in a challenging environment. The BPR initiative aimed to streamline processes to adapt to the changing market dynamics. The BPR tactic here revolves around operational efficiency, cost reduction, and cycle-time reduction. It includes optimizing procurement processes, improving proposal submission timelines, and minimizing hand-offs between different stages of production.
3. FoodCo: FoodCo undertook BPR in its manufacturing unit to implement a standardized computer-based MRPII system across multiple plants. The goal was to enhance plant effectiveness, control, and leverage the unit’s size with customers. The BPR initiative aimed at achieving consistency and coordination across geographically dispersed plants. The BPR tactic is about integrating technology, implementing standardized processes, and leveraging economies of scale. It involves centralizing data management, standardizing manufacturing practices, and leveraging technology to enable efficient communication and coordination.

Identifying Radical Change in Workplace and BPR Tactics:

In my workplace, a situation that calls for radical change is the transition from traditional brick-and-mortar operations to a fully digital business model. This shift involves overhauling various aspects of the organization, including customer engagement, internal processes, and technological infrastructure.

Situation: The organization currently operates with a heavy reliance on physical locations, resulting in higher operational costs and limited geographical reach. There’s a growing need to adapt to changing consumer behavior, which increasingly favors online platforms for transactions and interactions.

Scope and Depth of Change: The change required spans customer interactions, sales channels, supply chain management, and data analytics. It involves digitizing processes, establishing e-commerce platforms, optimizing inventory management, and implementing data-driven decision-making.

BPR Tactics and Initiatives: As a leader, I would employ the following BPR tactics to implement this radical change:

1. Digital Transformation Strategy: Develop a comprehensive strategy outlining the organization’s digital transformation journey. This involves defining the scope of digital initiatives, setting objectives, and allocating resources.
2. E-commerce Implementation: Build user-friendly e-commerce platforms to enable customers to browse, select, and purchase products online. Implement secure payment gateways and seamless checkout processes.
3. Process Automation: Automate manual processes such as order processing, inventory management, and customer service inquiries. Implement workflow automation tools to enhance operational efficiency.
4. Data Integration and Analytics: Implement an integrated data analytics system that gathers insights from various touchpoints. Leverage data to understand customer preferences, optimize inventory levels, and tailor marketing strategies.
5. Change Management: Develop a change management plan to guide employees through the transition. Offer training and support to ensure smooth adaptation to new digital tools and processes.
6. Customer Engagement Enhancement: Utilize digital channels to engage customers through personalized marketing, targeted promotions, and interactive content. Implement chatbots for real-time customer support.
7. Cybersecurity Measures: Prioritize cybersecurity to protect customer data and maintain trust. Implement robust encryption, regular security audits, and employee training on cybersecurity best practices.

In conclusion, the three discussed BPR cases showcase diverse scenarios where radical change was implemented through different tactics. Drawing from these cases, a radical change in my workplace involving a shift to a digital business model would require a comprehensive BPR strategy encompassing e-commerce, process automation, data analytics, and change management. The ultimate goal is to achieve operational efficiency, expand market reach, and provide an enhanced digital customer experience.