- 1 -© Minder Chen, 1993-2008

Quote• There is nothing more difficult to

take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.

-- Machiavelli

- 2 -© Minder Chen, 1993-2008

Stakeholders Perception at Different Levels

“We’ve gotto change!”

“We’ll neverchange!”

“Can we please change?”

- 3 -© Minder Chen, 1993-2008

Marching on the Same Order?

• You may passionately believe that your organization must change and change now! But, you cannot assume that everyone around you share your view and belief.

• "It is human instinct to resist certain changes."

• "When we can't not see what is in it for us, we are unlikely to change."

- 4 -© Minder Chen, 1993-2008

The Reengineering Diamond

Business Processes

& Functions

Business Processes

& Functions

Management & Measurement

Systems

Management & Measurement

Systems

Jobs , Skills, & Organizational

Structures

Jobs , Skills, & Organizational

Structures

Values andBeliefs

Values andBeliefs

Enlighten

Entail Demand

Foster

Culture

Customers&

Info. Tech.

Competitors

Markets

Customers &Suppliers

- 5 -© Minder Chen, 1993-2008

The Levers of Change (Depth of Changes)

Market and Customers Structure and facilities

Business Processes

Product and ServicesPeople and

Reward Systems

Technologies

- 6 -© Minder Chen, 1993-2008

Implementation Model for an Application Package

- 7 -© Minder Chen, 1993-2008

BPR vs TQM

PerformanceGoal

Time

TQM

TQM

TQM

BPR

BPR

BPR

- 8 -© Minder Chen, 1993-2008

5 Levels of IT-Induced Reconfiguration

Localized exploitation

Internal integration

Business process redesign

Business network redesign

Business scope redefinition

RevolutionaryLevel

EvolutionaryLevel

Range of Potential BenefitsLow High

High

Low

Degree ofBusinessTransformation

Source: V. Venkatraman, “IT-Induced Business Transformation,” in The Corporation of the 1990s: Information Technology and Organizational Transformation, edited by Michael S. Scott Morton, Oxford, University Press, 1991, pp. 127.

- 9 -© Minder Chen, 1993-2008

“The earliest surviving book, by some accounts, is the ancient Chinese Book of Changes.Book of Changes. That book remains interesting. It proposes a matrix of 64 distinct circumstances, dissects them with stunning lucidity, and recommends actions to capture the greatest benefits or minimize difficulty. It is in some ways a book of magic, but even more so a first grand attempt by the human race to develop a science of a science of

changechange. The virtues it endorses – attentiveness, flexibility, attentiveness, flexibility, perseverance , awareness of where other stands in perseverance , awareness of where other stands in a given circumstancea given circumstance– will serve (us) well today. …. In the Book of Changes, the 64 distinct circumstances tend to flow freely into one another. If you get out your calculator and compute the possible permutations when one circumstance can flow into just one other at a given time, you will see what the ancients felt they were up against. Conditions are no simpler in today’s hard-pressed businesses.”

Source: From the first paragraph of the Chapter 1: The Basics of Change, The Price Waterhouse Change Integration Team, Better Change: Best Practices for Transforming Your Organization, McGraw Hill 1995.

Change Management

- 10 -© Minder Chen, 1993-2008

Meanings (Principles) of I-Ching

Meanings of I-Ching1.Change; Dynamic; Shift; S-Curve

2.Common: Easy; Simplicity 3.Constancy: Principles; Systemic

4.Connection: Interaction; Exchange

　 　Creative/Receptive open the door to the understanding of I-Ching

Sun and moon form the “I” – Yi

- 11 -© Minder Chen, 1993-2008

Capture the Moment and Strengthen Your Position

Trend that induced change• Social • Market• Industry • Technological

Subtle sign of change

Paradigm shift

Common sense knowledge

Peak of Popularity

Barrier to future change

Timing to Introduce Change

Strategy: • Sensing • Following • Creating

Positioning: • Leading • Building alliance• Following • Passing

- 12 -© Minder Chen, 1993-2008

Lessons Learned

• Change is the only constant! • Sense the change is coming and is alerted by

some subtle signs.• Take advantages of the trends at certain

window of opportunity.• Can reduce the dramatic changes with a

smooth implementation plan.• Master all the intricacies throughout the

change process.• Maintain the virtue and ethical standards during

changing time and crisis.• Have the wisdom to become a change master.