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We embarked on a case study to explore one organization’s experiences with radical change for the purpose of uncovering how they achieved success. The organization we examined was Honeywell Inc. in Phoenix, Arizona, USA. From the interview data, we were able to devise a set of ten lessons to help others transform successfully. Two important lessons stand out above the rest. First, execution of a carefully developed change plan separates the high performers from less successful BPR projects. Second, recognition that dealing with change is difficult and complicated is not enough. Top management should make change management a top priority and communicate the change vision across the organization.
A BPR Case Study at Honeywell
David J. Paper
Utah State University
3515 Old Main Hill, BISE Department
Logan, UT 84322
Phone: 435-797-2456
FAX: 435-797-2351
James A. Rodger
Indiana University of Pennsylvania
MIS and Decision Sciences Department
203 Eberly College of Business
Indiana, PA 15705
Phone: 724-357-5944
FAX: 724-357-4831
Parag C. Pendharkar
Penn State Harrisburg
School of Business
777 West Harrisburg Pike
Middletown, PA 17057
Phone: 717-948-6028
FAX: 717-948-6456
September 2, 2015
A BPR Case Study at Honeywell
Global competition is driving organizations to become leaner and more streamlined. Many organizations
have turned to business process reengineering (BPR) as a means to radically change the way they conduct business.
However, dramatic improvements have failed to materialize in many instances (Davenport, 1993; Hammer &
Champy, 1993; Kotter, 1995). We thereby embark on a case study to deeply explore one organization’s experiences
with radical change for the purpose of uncovering how they achieved success. The organization we examine is
Honeywell Inc. in Phoenix, AZ. From the data, we devise a set of lessons to help others transform successfully.
HONEYWELL (IAC Plant, Phoenix, AZ)
The Honeywell industrial automation and control (IAC) business unit designs, manufactures, and
configures the sophisticated TDC 3000X family of systems. These systems enable its customers (refineries,
chemical plants, and paper mills around the world) to achieve world-class process-control capability.
In late 1989, the management team began a three-year world-class-manufacturing (WCM) program to
examine lagging performance results. WCM established ambitious goals for defect reduction, short-cycle
production, and materials management. Specific goals included reducing defects by a factor of ten (1,000%) and
cycle time by a factor of five (500%).
WCM was created to provide resources and take a system-wide view of the plant. WCM supported a
focused-factory environment that harnesses the potential of teams. Instead of workers being assigned to a specific
area on the factory floor, teams of multi-skilled workers were charged with building entire products or modules from
start to finish. WCM provided resources to teams based on the process rather than piecemeal events or tasks.
Training took on a system-wide view. In 1990, the entire plant was shut down and everyone was taken to another
location for an intensive six-hour session. During the session, the need for radical change was articulated. In
addition, management explained what the broad changes would be and how the changes would impact the workers.
To support the factory-focused paradigm, the “all-salaried” workforce was evaluated on a “pay for
performance” basis. Factory-focused teams were rewarded for their performance. In a little over three years, teams
helped reduce defect rates by 70%, customer rejects by 57%, cycle time on parts by 72%, inventory investment by
46%, and customer lead times by over 70%.
Improvements didn’t come without struggle. One problem was management of “white spaces”. White
spaces are gaps between different links in the internal-supply chain. Management found out that teams along the
value chain for each product line had a tendency to sub-optimize the total supply chain because they were primarily
focused on their own areas. To get the teams to think in unison, the Director of Strategic Planning and
Organizational Development took the three team managers aside and told them that they were responsible for the
whole product line. Performance evaluations would be based on how the entire product line performed.
Honeywell IAC observed through trial and error that teams needed to have control over things that impact
their performance. When teams failed, the cause could almost always be attributed to lack of authority to make
decisions where the work was actually being done. Another improvement that helped teams work well together was
a change of work environment. Recently, manufacturing was moved to a handsomely landscaped site. Besides
being a beautiful site, manufacturing facilities were designed to better suit a flow scheme. The flow scheme was
designed to facilitate a “pull” system that is triggered by customer orders.
Conversion to an all-salaried workforce, worker empowerment, compensation for creativity, and a system-
view helped IAC vastly improve its quality and performance for its customers. However, IAC management was not
satisfied. To complement the WCM program and facilitate a culture of continuous improvement, IAC embraced a
solid ISO 9000-certified quality program, a strong supplier alliance program, a globally oriented customer
satisfaction organization, and a reconstituted WCM program office.
Honeywell calls their factory-focused program the TotalPlantTM. The mission of TotalPlantTM is to unify
business and control information to enable global customer satisfaction. To accomplish this mission, the plant is
migrating to fully integrated hardware, software, and services that support plant management, process management,
and field management. TotalPlantTM business and control information is also used to facilitate planning,
implementation, and world-class applications. The TotalPlantTM paradigm is not limited to the IAC site. It is
intended to support global delivery of its manufactured products, serve the needs of over 40 regional TotalPlants and
delivery centers worldwide, and align with global suppliers.
Case study analysis of Honeywell IAC began with a site visit on August 16, 1997. Data were gathered
through late 1999 from interviews, annual reports, observation, e-mail, and informal discussions. Three people were
formally interviewed including the Director of Strategic Planning and Organizational Development, the Manager of
Worldwide Manufacturing Programs, and the Manager of Distribution Systems. Contact has been consistently
maintained via telephone, e-mail, and fax.
The interviews lasted between one and two hours. We used a set of open-ended questions, related to BPR,
to guide interview discussions. However, spontaneity was encouraged by allowing respondents to discuss any
issues they considered important to the research. Transcripts of the interviews were transcribed within 2 days to
reduce information loss.
Many early BPR initiatives failed to achieve predicted success (Davenport & Short, 1990; Hammer, 1990;
Kotter, 1995). However, some organizations have been able to achieve dramatic results from BPR. For instance,
Caterpillar, Inc. reported cost savings between $10 and $20 million over a five-year period from BPR initiatives
(Paper & Dickinson, 1997). Caterpillar ties much of its success to its BPR methodology. Its methodology is
systematic as it provides a disciplined problem-solving approach and acts as a rallying point for everyone involved
along the process path. It also has in place an organizational structure conducive to cross-functional teamwork and a
management structure designed for facilitation of empowered workers. Many of the earlier BPR projects reported in
the literature failed to articulate and implement a BPR methodology and a proper structure.
There are few examples of in-depth studies of BPR in the literature (Fuglseth & Gronhaug, 1997). Caron,
J.R. Jarvenpaa, S.L., & Stoddard (1994) examined BPR initiatives at CIGNA for over five years. They offer a set of
general guidelines, but fail to mention the importance of a systematic BPR methodology. Davenport & Stoddard
(1994) addressed various myths associated with BPR based on detailed case study analysis of many companies.
They conclude that successful BPR is not an IT initiative, but a business initiative with the goal of rethinking
business practices to satisfy the needs of its customers and other constituents. Kotter (1995) synthesized information
and knowledge gained from observations of more than 100 companies into a set of eight steps to facilitate
organizational transformation. Paper and Dickson (1997) examined BPR initiatives at Caterpillar. They found that
BPR is driven by a business need and requires support from top management, a systematic methodology, and an
organizational structure that supports and rewards process thinking.
The paradigm is based on four principles of success — process mapping, fail-safing, teamwork, and
communication. Each of these principles is critical to realizing the TotalPlantTM. However, every team member
must be educated in all four of the principles and empowered to use what they have learned to solve business and
manufacturing process problems. The major obstacle to change is the employee attitude that “things are O.K.”, so
why change.
TotalPlantTM developed a need for people to change. It created a level of dissatisfaction. We sent key
people to benchmark HP (Hewlett Packard) to see what was happening. When the people returned, they
felt depressed that HP was better. Since they witnessed a major competitor doing better, they better
understood the need to improve. They wanted to beat HP. The paradigm gave them a foundation to work
with. (E. J. Janik, Manager Distribution Systems, personal communication, August 16, 1997)
1. Process Mapping
Process mapping is a tool that allows one to model the flow of any business process in a graphical form.
The process map allows one to see how the process actually works across functional boundaries. It thereby enables
all employees to see how the business process actually works and how it can be changed to be more effective.
Process mapping also creates a common language for dealing with changes to business processes.
An experienced facilitator conducts process mapping training. The role of the facilitator is to encourage
interaction and creative input from everyone by throwing questions back to the group. The idea is to facilitate
learning by discovery and inquiry, not by being told what to do.
The training philosophy at Honeywell focuses on educating employees about the importance of total
customer satisfaction and world-class manufacturing. It is important for employees to understand that optimization
of the whole system is the goal, not individual departments or subsystems. Three principles underlie the philosophy
— be non-blaming and non-judgmental, focus on process and results, and consider the big picture.
Many times organizations focus on individual and/or subsystem results to the detriment of the whole
system. Results are important, but how they are achieved is equally important. A focus on process helps to
rationalize enterprise-wide results over functional ones. If the process is not understood or misunderstood, it is more
difficult to justify sub-optimal results in an individual area. The only important result is total customer satisfaction.
Process thinking helps to justify overall results because the people involved understand how and why it is
successful. Functional thinking concentrates only on individual performance, not enterprise performance. For
process thinking to work, employees must be empowered to do their jobs since they are the ones that actually do the
For process mapping to work, decisions are pushed to the “process” level and employees are given the tools
and training they need to excel. An example (Figure 1) of non-enterprise thinking is presented at the beginning of
training to encourage participants to begin thinking, “out-of-the-box”. The story is about five blind men and an
elephant. One man grabbed and ear, another the trunk, a third the tail, the fourth a leg, and the last touched the side.
Figure 1. Five Blind Men and an Elephant
The blind man holding the trunk thought he was holding a snake. The blind man holding the leg thought it was a
tree. The blind man holding the ear thought it was a fan. The blind man touching the side thought it was a wall.
The blind man holding the tail thought it was a rope. The moral of the story is each blind man’s perception is based
completely on his individual perception rather than on the reality of the situation.
This lesson is critically important when training people about enterprise optimization. Each employee
works in their own “box”, that is, they work within a functional area of the organization. Unless they see and
understand that their work is part of the much larger enterprise, process sub-optimization will occur. To really
improve the business, everyone involved in the process has to understand the whole system. Process mapping is a
powerful technique that provides an understandable picture of the entire process and a common language to get and
keep everyone on the same page.
At Honeywell, process mapping consists of eight steps — select process, identify boundaries, form teams,
develop “AS IS” map, identify cycle times, identify opportunities for improvement, develop “SHOULD BE” map,
and develop the implementation plan (receive confirmation before implementation). The job of the facilitator is to
encourage creative ideas from teams and guide the effort.
The first step is to select the process. The team lists the products it is responsible for and comes to a
consensus. The customers for each product are then identified. Customer satisfaction depends on giving the
customers what they expect, so they must be interviewed. Hence, teams are intensively trained in interviewing, data
collection, and data analysis techniques.
The second step is to identify the boundary. The boundary spans from when the raw product is taken
from the supplier (input) to when the finished product is handed to the customer (output). Defining the boundary is
simple, but it is important to document them for each product.
The third step is to make sure that the team has cross-functional representation from each organization
contributing to the process. Inclusion in the team should be based on who is involved in creating the product
between the input and output boundaries.
The fourth step is to develop the “AS IS” map. The “AS IS” map represents the transformation of inputs
into finished products. The map includes both information and product flow through the system. Starting at the
input boundary, important questions to resolve are: What is done with the input and who does it? What happens
next and who does it? At decision points, a branch is created that shows alternative routes for each decision
alternative. Three potential problems can occur when process mapping — optimizing part of the process while sub-
optimizing the process as a whole, making the map so far removed (too broad) from the actual process that is not
useful as a tool for change, and making the map too specific without involving those who must live with the
The fifth step is to identify the cycle time for each step in the process. Cycle time is determined by
measuring both the distance the product travels through its process and the time required performing the steps in the
process. Time is measured by average and range. Average cycle time is the mean rather than the midpoint between
the minimum and maximum time. Range is the difference between the minimum and maximum time.
The sixth step is to identify opportunities for improvement that would not add resources (extra costs).
Typical opportunities include waiting and storage steps, non-value-added steps, decision points for approval, steps
with a wide range of cycle times, sequential operations that could be done in parallel, and information that doesn’t
flow to those who do the work. Waiting, storage, and non-value-added steps are just waste. If the process is
streamlined, these shouldn’t be necessary. If a step has many decision points, it can be improved by removing most
of them. If a step has a wide range of cycle times, this indicates that it is probably inefficient. If a step can be done
in parallel with others, cycle time is greatly reduced at no extra cost. Finally, information flow is just as important
as product flow. If information is not flowing to those that do the work and make decisions, the process is
The seventh step is to develop the “SHOULD BE” map. This map includes a “picture” of the improved
processes and projections of their new cycle times. The “SHOULD BE” map depicts what the process will look like
after improvements are made. It provides a graphical picture of what the process team needs to work toward. It
should only include improvements that don’t require significant new resources. “A major limitation is that process
mapping takes a long time. The market wants cycle time reduction to happen very quickly. However, we need it
because it provides a road map for our business” (L. Holloway, Director of Strategic Planning and Organizational
Development, personal communication, September 21, 1999).
The eighth step is to develop the process implementation plan, establish confirmation, and implement. The
team prioritizes opportunities for improvement based on the impact on cycle time and quality. The team also
considers the impact of possible changes on other processes and customers. The team specifies specific changes,
responsible parties, and timetables. Cycle time goals are set for each of the process steps. Finally, the team consults
with the steering committee for input and confirmation before implementation can begin.
2. Fail-Safing
Fail-safing is a method to identify a defect, analyze it to understand its root cause, and then develop a
solution that will prevent that defect from occurring again. Fail-safing guarantees that a process will be defect-free.
While process mapping diagrams the entire flow of a business process, fail-safing is done to diagnose a defect
within the process. The PDCA (plan, do, check, act) cycle offers a road map to help teams work together to prevent
errors from occurring 100% of the time. PDCA offers a sound method for collecting “good” data, but technology is
needed for proper delivery. Honeywell invests heavily in state-of-the-art technology to help guarantee data delivery.
Figure 2. PDCA Cycle with Fail-Safing Steps
Fail-safe planning (Plan) has five steps (see Figure 2). The first step is to identify the problem (defect).
Defect detection involves analyzing data using a pareto chart. The pareto chart principle proposes that 20% of
causes create 80% of the problems we experience. Once the data is analyzed, a defect description is logged that
describes the defect and its impact on other processes. Similar to process mapping, a map of the existing process is
made with the defect. The map should include documentation concerning the people involved (team) in the
operation as well as where the defect is discovered.
The second step is to identify the root cause(s) of the problem. The team identifies places in the process
map where red flag conditions exist. The “Five Why’s” technique is used to identify root causes. First, the team
asks — why does this cause of error occur? For each reason, they ask again why the error occurs. After asking
“why” five times, the team is able to converge on the root cause of the error. To test the validity of a root cause, a
1. Identify Problem
2. Identify Causes
3. Generate Solutions
4. Evaluate and Choose
5. Create Plan
6. Implement Solution7. Check Results
8. Act on Results
Check Do
simple test can be used. A root cause has three characteristics — 1) it is a cause of the defect identified, 2) it is
possible to change the cause, and 3) if eliminated, the defect will be eliminated or at least reduced. If the cause
satisfies all three characteristics, it is a root cause.
The third step is to generate alternative solutions. The team starts by selecting one root cause. A recorder
and timekeeper are then selected to mediate. Brainstorming can then begin. Keep in mind that this process may
seem simple, but trained facilitators are needed to ensure that everyone is involved and an open forum for ideas is
The fourth step is to evaluate and choose a solution. Each alternative is considered against criteria such as
time, ease, and cost to implement. Ideas that take too long to implement are eliminated. Evaluation helps the team
choose the best device(s) to fail-safe the error condition.
Finally, an implementation plan is created. Everyone affected by the change is identified. The team
considers customers, suppliers, and support people on the team. The team then determines how the device will be
measured and completes an action register. The purpose of the register is to create a “visible” listing of all the
actions required to implement the device, the people involved, the completion dates, and the status of each action.
Step six (Do) is to implement the chosen solution. The team now completes each action item involved in
installing the fail-safe device. Everything needs to be recorded so that the team has a visual memory of the steps
involved. Evaluation is also facilitated because data can be analyzed before and after the fail-safe device is
Step seven (Check) involves checking results. Data is analyzed using the action register, pareto charts, and
histograms. The team also asks themselves if they got the results that they expected. If not, rework of the device is
Step eight (Act) is to determine the next steps for continuous improvement. The team asks itself what can
be improved and then begins the cycle again. Fail-safing is a continuous process. Fail-safing is only effective if it
works 100% of the time.
3. Teamwork.
Teamwork doesn’t occur naturally. It is difficult and complex. It takes special effort, management
support, training, and a nurturing environment to make it work. Special training is needed to familiarize people
(including managers) with what teams are, how they work, and how they will help the company. After training,
workers need to “feel” that the work environment is conducive to teams.
The manufacturing vision creates the first step toward a new work environment that fosters teamwork. It
proposes that the workforce take ownership for the success of the overall business. As such, all people need to
understand their roles and team together to achieve success. Creativity, risk-taking, and innovation are encouraged
and viewed as learning experiences. People are trusted, respected and empowered to execute their duties. Cross-
training is endorsed, work is challenging and enjoyable, and everyone is involved in leadership and doing the “right
Process mapping and fail-safing are laid out very specifically because their very nature is systematic and
controllable. However, training is “softer” because people are at its center. People are the biggest challenge in
dealing with change because they are not predictable, naturally resist change, and are diverse. Process mapping and
fail-safing are proven techniques that can help people solve problems. They are also set up to be very conducive to
teaming. Therefore, Honeywell focuses on these techniques to help people focus on real problems and become
familiar with teamwork gradually. People can be trained to effectively map processes and fail-safe defects in a short
time. However, getting a diverse workforce to work as a team takes time. The key is the environment. Hence,
Honeywell rewards teamwork, expects team ownership and responsibility, empowers teams to solve problems, and
provides training dollars to make teaming a natural part of the work life.
4. Effective Communication Skills.
Communication of the TotalPlantTM vision is paramount to success. “The number one problem in most
organizations is lack of effective communication. Faulty interactions between people often lead to conflicts, hurt
feelings, and damaged relationships” (G. J. Kristof, Manager Worldwide Manufacturing Programs, personal
communication, August 16, 1997). Communication of a vision is especially susceptible to conflict because its
message is broad and its audience is the enterprise.
Honeywell provides conflict resolution training to teams to help them deal with conflict in a positive way.
Basic interpersonal communication skills for enriching relationships with people and effective means for solving
problems are also part of the training.
One training module concentrates on listening skills. If people are not willing or able to listen to other
people around them, conflict and misunderstanding is very likely to arise. The module offers team-based exercises
to “role-play” conflict and resolution. Another module focuses on confronting skills. Many times it is difficult (but
necessary) to confront people in a positive way about unacceptable behavior. The goal is to be able to offer an
objective, non-blameful description of the problem.
One of the major difficulties of dealing with conflict and unacceptable behavior is to keep it from becoming
a personal attack on a person’s character. The conflict and/or the behavior are the problem, not the person! People
tend to become defensive when their behavior is questioned. This is a natural reaction. The key is to develop
conflict resolution skills that recognize this tendency and practice these skills in a non-threatening environment until
a certain level of mastery is reached.
Just like teaming, effective communication depends heavily on the work environment. An unlimited
training budget would still be wasted if trainees return to a work environment of “command and control”.
Therefore, Honeywell communicates the TotalPlantTM paradigm needs to everyone and fosters an environment that
rewards teamwork, creativity, and value-added thinking.
Management is responsible for team facilitation. Management’s job is to nurture and coach the team.
Another important role is to help the team set “stretch” goals. Stretch goals are lofty objectives that are beyond what
people are normally expected to reach. “Pushing people to achieve beyond their normal expectations causes them to
realize that they must change the way they do things. It also creates a healthy level of dissatisfaction. If people are
satisfied, they will never try to get better” (E. J. Janik, Manager Distribution Systems, personal communication,
September 12, 1999).
Honeywell depends on information technology (IT) automation to keep its plant in operation. It produces
automation and control devices that must meet stringent levels of quality because its customers will accept nothing
less. Its devices are very sophisticated and require complicated processes to manufacture properly. The role of the
worker is that of monitoring the devices to make sure they are performing within strict tolerances. Therefore,
information is “built into” the systems that build other systems. Information that supports manufacturing is
viewable at each production cell through color monitors and other visual devices.
Information technology supports office processes that are integrated into the total system. Computer
technologists, engineers, and systems analysts keep systems running properly. Every IT system is aligned with
manufacturing. Otherwise it is not value-added. Managers tap into the system to obtain information about
productivity, cycle time, and performance. Many of the business managers have an engineering background that
helps them link the business systems with manufacturing.
Prior to 1989, the IS department was centralized and “separate” from manufacturing. “The systems were
technically elegant and centralized, but they didn’t meet the needs of the business. The IS department was
transformed into the IT department to better align with the business of making controls. IT was charged with
mapping business processes that supported the products and then transforming systems to match the maps” (E. J.
Janik, Manager Distribution Systems, personal communication, August 16, 1997). The IT department has made
great strides to align its services with the needs of the business.
Honeywell has four mechanisms in place – process mapping, fail-safing, teamwork, and communication –
for promotion of an enterprise-wide integrated plant. Process mapping is a systematic BPR methodology to guide
team process improvement efforts along process paths. Fail-safing is a vehicle to help process teams identify and
correct defects quickly and permanently. Teaming is encouraged through communication of the vision and rewards
based on value-added activities. These four mechanisms facilitate successful change, but do nothing to guarantee it.
What separates success from failure is execution. Top management has to be willing to dedicate substantial
training resources to educate the workforce about the four mechanisms and how they work. Management behaviors
have to change from autocratic to facilitative. Teams have to be rewarded for enterprise value-added activities.
Finally, the organizational structure has to change to allow an environment conducive to innovation. Execution
flows from the corporate vision statement and strategic plan down to management and workers. The vision
statement has to reflect the desired outcomes. Moreover, the strategic plan has to incorporate specific steps, policies
and standards that will make real change happen. Top management has to live the new paradigm by being active
participants in the change process. Top management endorsement is not enough. They have to interact with teams
and management to let their people know that change is a priority and that they understand what is being done at the
process level to make change happen. Top management therefore has to facilitate the paradigm through resources,
executive actions, rewards, and recognition.
At Honeywell, the path toward change is probably much smoother than most organization because the
organization has embraced change for many years. Honeywell is a pioneer in quality management and has always
developed its people through training programs and rewards for value. Hence, execution is easier and resistance is
not as big of an issue. However, problems have occurred.
The biggest obstacle to execution was within the middle management ranks. Middle management was too
used to being experts in a specific area. For instance, one operations manager was the resident expert in materials
flow, but he managed technology, engineering, and manufacturing people. He would manage sub-optimally because
every problem was solved through materials flow. He could not see the cross-functional or cross-specialization
nature of the problem because of his narrow focus on materials flow. He had to “let go” of his expertise and let his
people solve the problem as a cross-functional team. It may sound like a simple change for this manager, but it took
Behavioral change is the most difficult type of change. It takes time and patience. Execution of a major
change program thereby requires a lot of time to reap desired benefits. With quick profits and impatience the norm
in many organizations, execution will be the biggest hurdle to success. Adoption of mechanisms, like those used at
Honeywell, are therefore worthless without a plan for change and proper execution of that plan.
From the case study, we developed a set of general lessons. The case experience allowed us to speak in-
depth with people involved in enterprise transformation that should make the lessons more practical.
Lesson One: People are the key enablers of change.
Business processes are complex, but process mapping offers a comprehensive blueprint of the existing state. The
blueprint enables systematic identification of opportunities for improvement. IT is complex, but vendors,
consultants, and system designers can create models of the system. In contrast, people are unpredictable. They
cannot be modeled or categorized universally. However, people do the work and therefore must be trained,
facilitated, and nurtured.
Lesson Two: Question everything.
Allowing people to question the way things are done is imperative to change. Fail-safing provides a systematic
approach to effectively question the status quo. People are encouraged to question the existing state.
Lesson Three: People need a systematic methodology to map processes.
Process mapping is the mechanism used to map and understand complex business processes. The systematic nature
of the process mapping methodology keeps people focused and acts as a rallying point. Moreover, process mapping
provides a common language for everyone involved in the project.
Lesson Four: Create team ownership and a culture of dissatisfaction.
Once a team perceives that they “own” a project, they tend to want to make it work. It becomes “their” project. In
addition, management should encourage people to be dissatisfied with the way things are currently done. However,
punishing people for complaining about ineffective work processes is an effective way to promote the status quo.
Lesson Five: Management attitude and behavior can squash projects.
If the managerial attitude remains that of “command and control” and/or their behavior doesn’t change,
transformation will most likely fail. Success depends on facilitative management and visible and continuous support
from the top. When Honeywell got its new president in 1996, the attitude toward criticism changed dramatically.
The new president wasn’t as accepting of casual criticism. Criticism of the status quo had to be based on well-
thought-out ideas and presented with the logic behind their thinking. This drastically reduced the complaints about
existing processes without justification.
Lesson Six: Bottom-up or empowered implementation
While support from the top is critical, actual implementation should be carried out from the bottom-up. The idea of
empowerment is to push decisions down to where the work is actually done. Process mapping and fail-safing
are two systematic and proven methodologies that help support empowered teams.
Lesson Seven: BPR must be business-driven and continuous
Process improvements should be aligned with business objectives. Process mapping, fail-safing, and teaming should
be based on what the business needs to change to become more successful. In this case, effective communication of
ideas from top management throughout the enterprise is imperative. In addition, organizations should be wary of the
“I’ve arrived” syndrome. Change is continuous and is never over.
Lesson Eight: IT is a necessary, but not a sufficient enabler.
IT is not a panacea. IT enables BPR by automating redesigned processes. However, information is for people.
People work with people to produce products for other people. In addition, people need quick and easy access to
quality information to help them make good decisions. Therefore, IT needs to be designed to support the business
and the production of products to be effective.
Lesson Nine: Set stretch goals.
Goals should be set a little higher than what the team believes they can accomplish. Since teams have little
experience with the new paradigm, goal setting will tend to be based on the past. Project managers should
work with the team to help them develop stretch goals.
Lesson Ten: Execution is the real difference between success and failure.
The Honeywell case introduces four powerful mechanisms to facilitate enterprise change. However, real change
will not happen without a plan for change and aggressive execution of that plan. We believe this is where most
organizations fail. We believe that execution fails in many cases because organizations are not willing to dedicate
resources, time, and energy to the effort.
The major limitation of case study research is sample size that limits generalizability. A specific limitation
is that this case is industry-specific. Honeywell IAC is a manufacturing plant that produces special high quality
controls. IAC customers demand world-class quality that pushes the organization to continually improve. Different
industries and organizations within those industries have different environmental forces to deal with. Both of these
limitations reduce generalizability. However, transformation is a new area. It is very dynamic and the scope is
enterprise-wide. According to Yin (1994), case studies are appropriate in new and dynamic areas of research
therefore the case study approach appears to be viable in this instance.
Although case studies rate low on generalizability, they rate very high on data richness. By researching the
Honeywell transformation paradigm, we were able to uncover some very important insights regarding successful
change. Most importantly, we discovered that execution separates Honeywell from other organizations involved in
transformation. We were also able to identify nine other important change lessons. We concluded that the only way
this information can be collected is through the case study methodology.
Another major issue is dealing with change. Change is painful and difficult to implement. “Change of
even the simplest sort is hopelessly complex ... even making the case for change is close to impossible” (Peters,
1992, p. 628). However, change is a fundamental aspect of BPR. Organizations should therefore openly deal with
change. Top management needs to communicate to its people why the change is necessary and how it will impact
everyone’s current job and future with the company. Top management needs to convey to its people that BPR is not
being used to replace workers, but to improve quality, reduce cycle time, and create value for customers. Patience is
also needed. Change takes time.
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... AS MD 1 (Hlupic et al., 2000) Assessment of organizational knowledge. AS MD 2 (Rodger and Pendharkar, 2001) Assessment of model characteristics. AS MD 3 (Brown et al., 2001) Assessment of enlightened performance measures. ...
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In response to increasingly competing environments, organisations are examining how their core business processes (BPs) may be redesigned to improve performance and responsiveness. However, there is a lack of approaches for evaluating BPR at design time and systematically applying BPR in the case of eligible models. The aim of this research is to: (a) evaluate the redesign capacity of BP models prior to implementation, (b) create a systematic and versatile BPR methodology, (c) correlate the evaluation and BPR methodologies to a unified and comprehensive approach and (d) demonstrate the above for a particular BPR method. A literature survey on the theoretical foundation of BPR and two separate Systematic Literature Reviews (SLRs) on BPR Evaluation and Application methodologies provide an overview of the current state of research and highlight the gap in systematic, generic methodologies that combine the assessment of redesign capacity of models at design time, with the application of BPR. The lack of a concept in literature that quantitatively depicts BPR applicability, led to the introduction of Model Plasticity. The concept is inspired by Neuroplasticity and is based on the calculation of internal model measures for predicting the applicability of RESEQ and PAR heuristics. Through a series of experiments and the use of logistic regression and the state-of-the-art Bender method, the author extracts and validates internal measure thresholds for the aforementioned heuristics. Following, the BPR Assessment framework is introduced for the systematic evaluation of the BPR capacity of input models based on their plasticity and external quality. The framework was created by applying the established DSRP methodology and incorporates essential redesign components that pass through interconnected phases. Two discrete operation modes of the framework based on partitioning clustering and proximity measurement are also proposed and presented in this research by using a BP model repository from literature. The operation modes are demonstrated for data-centric workflow optimization to highlight the straightforward and convenient application of the framework. A set of sixty-four real-life BP scenarios from the Greek Public Financial Management is modelled in the BPMN2.0 standard and measured for the validation of the framework. The validation demonstrates the multitude of benefits for the agencies of the Ministry of Finance and potentially to the whole Greek public sector, given the constant shift to digital transformation schemes. Finally, the author extended the framework with a new complementary artefact, the BPR Application framework, for the systematic application of BPR methods and combined them into a unified and comprehensive methodology. In this way, this research proposes a fully tested and validated methodology for the evaluation of the BPR capacity of models at design time, and a holistic methodology for systematically applying BPR to eligible cases.
... Esta fue popularizada por el trabajo de Hammer & Champy (1994) y fue aplicada a nivel mundial a partir de los años noventa. Estudios reportaron casos exitosos de la aplicación de esta metodología (Paper et al., 2001) así como también casos no exitosos. Esta técnica ha caído en desuso debido principalmente a los procesos de reestructuración y despidos de personal en las empresas y a su enfoque de cambios radicales (Dumas et al., 2018). ...
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Los procesos de negocio son la columna vertebral de cualquier organización y su innovación es uno de factores críticos para lograr los objetivos de la transformación digital. Existen diferentes enfoques metodológicos para la mejora de procesos como son la reingeniería, lean, seis sigma, los cuales inicialmente no fueron desarrollados para soportar la transformación digital de los procesos. En este artículo se propone una aproximación metodológica para la innovación y transformación digital de los procesos que consta de cuatro fases: alineación estratégica, diagnóstico y análisis del estado actual, innovación del proceso y transformación digital del proceso. En cada fase se proponen actividades y herramientas que tienen como base los enfoques BPM (Business Process Management) y design thinking, combinadas con otras desarrolladas por el autor. Esta metodología se aplica en un caso de estudio para la innovación de un proceso de una compañía del sector eléctrico en Colombia.
... Through empowerment, organizations create a culture where employees develop their response to change (Erstad, 1997). Empowering employees can help organizations change (transform) successfully from the current state to the desired one (Paper et al., 2001). In earlier studies, empowerment positively correlates with strategic change implementation (Lines, 2007). ...
Purpose The paper aims to investigate the determinants of workplace innovation behavior of women employees in Pakistan. With a growing share of women's participation in the labor force in developing economies, it is crucial to understand their behavior. The authors looked into various practices that drive women's innovative behavior using social exchange theory (SET) as a theoretical framework. Design/methodology/approach This study is quantitative-based on the positivistic paradigm. Following the survey method technique, responses are collected from 317 female employees in the service industry. The authors used structural equation modeling for the data analysis. Findings The results indicate a significant impact of leader-member exchange (LMX) on employee empowerment; schedule flexibility was also a possible predictor of workplace innovation behavior through mediating roles of employee empowerment and response to change. The study findings are consistent with the prior literature and according to the developed hypothesis. Further, women's response to change partially mediates women employees' empowerment and workplace innovation behaviors. In addition, LMX significantly affects women's response to change through women employees' empowerment, leading to workplace innovation behavior. Practical implications The implication is that supervisors should be adaptable in working relationships with their women employees to bring positive workplace innovative behaviors. They create such exchanges with employees to make them feel that the organizations value them. The paper identifies the need to develop supportive supervisor-employee exchange relationships to encourage positive, innovative behavior in female employees. Originality/value This paper examines the workplace innovation behavior of women employees in Pakistani patriarchal society and a male-dominating workplace environment.
... Employees who participate in the planning and execution of an activity at large, and a change-related activity in particular, have a better understanding of the change initiative. They show a boosted commitment to the change program (Beer et al., 2009;Paper et al., 2001) and recognize the meaning of the change vision, its benefits and its challenges for their group (Whelan-Berry & Somerville, 2010). Teams involved in decision making also tend to have better ownership of the project in which they participate (Beer et al., 1990). ...
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Maroun, F. & El Hage, U. (2020). Change management in Higher Education: a New Perspective. Lebanese Science Journal, 21(2), 178-203. Universities need to operate a transition from the common 'traditional' settings towards an education that contributes to a sustainable social change by preparing students to be change agents who care for others and for the well-being of society. We designed an interpretative qualitative approach using the unique case study of a Jesuit University, based on interviews with leaders of and participants to volunteering initiatives driven by that university. The objective of the study was to identify the drivers of change of the outreach model in higher education and analyze if the Jesuit way of doing things, or Jesuit tradition, is an effective tool to drive the change in universities. Five key drivers of change were identified (communication, participation, sharing, empathy and reflexivity), all in line with the characteristics of the Jesuit tradition. Both empathy and reflexivity are drivers of change, which were not cited in previous works on change management and may be considered as the study's added value to the conceptual framework. The results of this study need to be confirmed on a larger sample of participants and would be enriched by a benchmarking work on Jesuit-led outreach bodies.
... Shutting workers out of the change-making process deprives the top level of management of their goodwill, insight and expertise. Not cultivating worker engagement can contribute to the failure of changes in organizations [6]. ...
Purpose The aim of this article is to investigate individuals' attitudes about organizational change, considering implementation of business process management (BPM) and resistance to change. Design/methodology/approach The study examines the attitudes of subjects that experienced organizational change in the context of BPM in Brazil. In order to measure resistance to organizational change, 22 interviews were conducted using a script adapted from Pereira et al. (2019). The study considered two main agents: BPM implementers and end-users. Data were analyzed qualitatively via content analysis. Findings The results provided interesting insights. In relation to the individuals' attitudes, satisfaction, fear, stress and anxiety were the most frequently reported. However, opinions contradict the negative feelings expressed, given that organizational benefits, facility and pleasure at work and personal benefits were the most frequently reported. In regard to behavior, individuals approved change and in general accepted it. Finally, in terms of confidence in management, the subjects reported leadership and trusting their bosses as positive points. Research limitations/implications Study limitations include the difficulty in finding end-users on LinkedIn, the fact that convenience sampling was used and the possible false memory of respondents. Originality/value The approach used in this study provided a relevant contribution to the area under study, primarily via the new findings, that is, elements of resistance to change that emerged from the data.
Kotter’s work, Leading Change, has been an outline for corporate change management initiatives since its publication in 1996. However, little research has been done on applying his 8-step model to change management in libraries. This article examines the suitability of Kotter’s steps for use in a library setting and concludes that based on existing literature, it is an appropriate model for library leaders to follow as they implement change at the institution.
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Public Health Centers (PHC) in Sleman implement a mechanism of Financial Management Regional PublicService Board (PPK-BLUD) to acquire flexibility in financial management. This decision had an impact onchanges in the budget system of the traditional budget into performance-based budgeting and accountingsystem changes from a cash-based accounting into accrual-based accounting. By using the theoreticalframework of the new institutionalism, this research seeks to understand the process of institutionalization ofbudgetary and accounting system for the implementing BLUD in PHC.This study is a phenomenological study were included in the interpretive paradigm because more emphasis on aperson's meaning or interpretation of the phenomenon of change in the budget and accounting system.PHC's efforts in implementing the budget and accounting systems can be attributed to the institutionalisomorphism. Symptoms of normative isomorphism, coercive isomorphism, and decoupling in the process ofchange. Changes to the system have not been fully institutionalized in the understanding of the actors executingBLUD. To assist the process of change, requires the professional to provide guidance and consultation so thatchanges implemented in accordance with the ultimate goal of improving quality of service to the community.
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On healthcare industries, supply chain activity that related with pharmaceutical product (drugs and medical consumables) was very important to ensure high standard treatment for patient and provide sufficient pharmaceutical product supply to drugstore. The purpose of this reseacrh was to depict mapping proces of internal inquiry and distribution for pharmaceutical product evolving between Dinas Kesehatan Kota Surabaya Unit Farmasi, Gudang Farmasi Kesehatan (GFK), and Puskesmas along with the issues then formulate a proposal for process flow reduce the issues.The research method based on cross sectional case study scheme exert descriptive analysis then utilized with analytical method either quantitative or qualitative. All data have collected then analyzed base on mapping process concept Data Flow Diagram (DFD) as a suitable supply chain mapping process for pharmaceutical product.Research result shown there were 4 (four) issues on pharmaceutical product supply chain process, they were:(1) pharmaceutical product stock availability in Gudang Farmasi Kesehatan (GFK), (2) pharmaceutical product supply ability from Gudang Farmasi Kesehatan (GFK), (3) the accuracy of pharmaceutical product planning from Puskesmas, and (4) pharmaceutical product deficit at Puskesmas.Pharmaceutical product supply chain process in healthcare service at Surabaya city need remodelling and improving. Data and information integration then exchange between Dinas Kesehatan Kota Surabaya Unit Farmasi, Gudang Farmasi Kesehatan (GFK), dan Puskesmas is main key and focus to reduce or minimalize current issues on pharmaceutical product supply chain process.
The design and improvement of business processes is of central importance for realizing benefits of information systems. A broad spectrum of methods has been proposed since the 1990s, which ranges into several dozen. It is unclear whether this large number trivially stems from copying and relabeling or whether there are substantial differences in these methods that can be tied to their applicability in different contexts or to the pursuit of different goals. Accordingly, we ask: Which activities do process improvement methods have in common, how do they differ, and why? In this paper, we approach these research questions using a multi-method design integrating techniques from systematic literature review, process mining, and statistical analysis. Our contributions are as follows. First, we provide a framework with 264 activities clustered in six stages that could be used for incrementally and radically improving processes. Second, we find that methods map to different configurations of the three dimensions described by the redesign orbit. Third, we uncover similarities and differences of the different methods contingent to the factors industry, objectives and whether a method is proposed or applied. Fourth, we observe three distinct clusters of method activities, which show that different strategies play a role when choosing a method for improvement. Our findings have important implications for the application of improvement methods in various improvement scenarios.
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Experience shows many change initiatives fail to deliver. They do not always lead to total failure, but they get stalled, misdirected, or only partially achieve the required results. As the speed of change in the external environment increases by the minute the authors set out to identify the common success factors for managing change. The main purpose of the research was to examine the apparent gap between often seen approaches and ‘best practice’, the output being a helpful framework to support future initiatives. Senior management in 28 organisations from a variety of industries, including the public sector, were interviewed to gain their insights on how to manage change successfully. The research, which was conducted over a six-month period, examined a number of themes covering the triggers for change, planning for change, and implementing change. The forces for change, as experienced by the respondents, were also captured. A number of insights were identified through the research which showed that successful change focuses on both strategic and operational issues. The key links between the strategic objectives and operational improvement are through the core processes, which need to be understood, measured and improved. If the links are broken, then the change is largely ineffective. The research led to the definition of two main constructs of change management: readiness for change and implementing change. These have been shown diagrammatically in a framework which should be an aid to all organisations that are about to embark on a change programme, or are in the process of managing change and wish to improve their chances of success.
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Purpose: The purpose of this paper is to gather current (2011) arguments and counterarguments in support of the classic change management model proposed by John P. Kotter in his 1996 book Leading Change. His work was based on his personal business and research experience, and did not reference any outside sources that has questioned its value. A current perspective on a limited tested model aims to be a focus of this paper. Design/methodology/approach: The literature on change management was reviewed for each of the eight steps defined in Kotter's model, to review how much support each of these steps had, individually and collectively, in 15 years of literature. Findings: The review found support for most of the steps, although no formal studies were found covering the entire spectrum and structure of the model. Kotter's change management model appears to derive its popularity more from its direct and usable format than from any scientific consensus on the results. However the model has several limitations, that are identified, impacting upon its universal acceptance and popularity. Research limitations/implications: Further studies should examine the validity of Kotter's model as a whole. More importantly, change management research should form a greater link with stakeholders in order to translate current research into a format usable by practitioners. Practical implications: No evidence was found against Kotter's change management model and it remains a recommendable reference. This paper attempts to "test" the "how-to-do-change management" with empirical and practitioner literature that was not evident in the original text. The model would be most useful as an implementation planning tool, but complementary tools should also be used during the implementation process to adapt to contextual factors or obstacles. Originality/value: Based upon a thorough review, this is the first formal review of Kotter's change management model, 15 years after its introduction.
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Purpose The value stream mapping (VSM) is a tool created by the lean production movement for redesigning the productive systems. Since, it was theoretically developed, some cases have been published where the mentioned tool has been used; however, there is a need to see how it is put into practice, that is to analyze the level in which theory is able to adapt to real practice, the strengths, weaknesses and the key aspects to be taken into account by the applicant teams to obtain the highest performance of the VSM. This paper aims to discuss all of these aspects. Design/methodology/approach The methodology used is a case study of a company in which the process of application of the VSM has been thoroughly analyzed. A team created to improve the productive system of a manufacture for plastic casings for mobile phones has carried out this application. Findings The research shows that the VSM is a valuable tool for redesigning the productive systems according to the lean system. Nevertheless, there are some key points for the establishing teams that have to take into account, as follows: the time and training resources spent, the use of suitable information systems and a suitable management of the application phases. Research limitations/implications The conclusions of this research can be reinforced by the monitoring of the application process in more company cases. Practical implications The conclusions of this research are useful for future practitioners, so that they may bear in mind the different aspects of planning projects for redesigning productive systems by using VSM. On the other hand, these conclusions can also be useful for the academic field in order to enhance the theory of VSM. Originality/value The paper is a contribution based on practical references according to a thoroughly monitoring of a successful case in establishing VSM.
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Purpose Experience shows many change initiatives fail to deliver. They are not always a total failure, but they get stalled, misdirected, or only partially achieve the required results. The main purpose of the research reported in this paper was to examine the apparent gap between often‐seen approaches and “best practice”, the output being a helpful framework to support future initiatives. This led to an Organisational Change Framework being developed, based on the experience of many organisations. Design/methodology/approach In total, 28 organisations, from a variety of industries including the public sector, were interviewed to gain their insights on how to manage change successfully. The research, which was conducted over a six‐month period, examined a number of themes covering the triggers for change, planning for change, and implementing change. The forces for change, as experienced by the respondents, were also captured. Findings A number of insights were identified through the research. The research showed that successful change focuses on both strategic and operational issues. The key link between the strategic objectives and operational improvement is the core processes, which need to be understood, measured and improved. If the link is broken, then the change is ineffective. Originality/value The research led to the definition of two main constructs of change management: readiness for change and implementing change.
Businesses hoping to survive over the long term will have to remake themselves into better competitors at least once along the way. These efforts have gone under many banners: total quality management, reengineering, rightsizing, restructuring, cultural change, and turnarounds, to name a few. In almost every case, the goal has been to cope with a new, more challenging market by changing the way business is conducted. A few of these endeavors have been very successful. A few have been utter failures. Most fall somewhere in between, with a distinct tilt toward the lower end of the scale. John P. Kotter is renowned for his work on leading organizational change. In 1995, when this article was first published, he had just completed a ten-year study of more than 100 companies that attempted such a transformation. Here he shares the results of his observations, outlining the eight largest errors that can doom these efforts and explaining the general lessons that encourage success. Unsuccessful transitions almost always founder during at least one of the following phases: generating a sense of urgency, establishing a powerful guiding coalition, developing a vision, communicating the vision clearly and often, removing obstacles, planning for and creating short-term wins, avoiding premature declarations of victory, and embedding changes in the corporate culture Realizing that change usually takes a long time, says Kotter, can improve the chances of success.
In this article, we explore the organizational process change dynamic through a theoretical lens of business process reengineering (BPR) models. We review relevant literature related to such models to devise a synthesized model of BPR. The synthesized model facilitates the identification of success factors for BPR. Results from in-depth case-study research add explanatory power to our model. It is hoped that our model and subsequent success factors will offer insights to help organizations effectively manage change and transformation.