Change Management – A way to create your business future

Contents

1 Abbreviations

2 Introduction
2.1 Motivation and Background
2.2 Objectives
2.3 Results of this thesis

3 Creating your business future
3.1 General conspectus:
3.1.1 Organizational development concepts
3.1.1.1 Localized exploitation
Excursion KAIZEN:
Excursion ISO 9000:
3.1.1.2 Horizontal (internal) integration
TQM – total quality management
SCM - supply chain management:
3.1.1.3 Business process redesign
BPR according to Michael Hammer
CPR
Process innovation
3.1.1.4 Business network redesign
3.1.1.5 Business scope redefinition
3.1.2 The "transformation funnel"
3.2 Visioning phase
The transition team
3.2.1 Values
3.2.2 Purpose statement
3.2.3 Sense of urgency
3.2.4 Guiding coalition
3.2.5 Value proposition
3.2.6 Vision
3.2.7 Mission
3.2.8 Strategy and goals
3.2.9 Timeline and supplementary aspects
3.3 Process redesign
3.3.1 Organizational structure
3.3.2 Building blocks for process reengineering
3.3.2.1 Terms and definitions
3.3.2.2 A process redesign roadmap
3.3.3 Process redesign teams
3.3.4 Timeline and supplementary process redesign aspects
3.4 Implementation
3.4.1 Building blocks for implementation
3.4.1.1 Process implementation
3.4.1.2 Organizational implementation
Demands on goals
3.4.1.3 IM and IT implementation
3.4.2 Timeline and supplementary implementation aspects
3.5 Beyond change management
3.5.1 Continuous improvement
3.5.2 Measurement
The Balanced Scorecard
3.5.3 Supplementary aspects
3.5.3.1 Pitfalls to avoid

4 Conclusion

5 Literature

6 Table of Internet sources

7 Table of figures

8 Appendix

1 Abbreviations

illustration not visible in this excerpt

2 Introduction

2.1 Motivation and Background

Imagine your company growing from 320 employees to 650, and during the same period your turnover rises from €65.2 to €150m. All of this happens while a lot of other companies in the same line of business are losing money and firing hundreds and thousands of employees.

Impossible? No. These figures were realized at Datentechnik.

To be honest, these figures are not the result of the change management project alone, they were also caused by several acquisitions^[1]. On the other hand, a number of studies^[2] carried out in 1999 showed the main problems of this organization, including:

- unclear picture of the future
- some or almost all processes had more or less important gaps
- wider analysis of existing data was not performed
- some data, such as customer satisfaction and employee satisfaction, was not available for the whole company.

The change management project described below was designed to address these and several more problems and to offer new prospects for the organization.

In general, today’s organizations face a more uncertain and unpredictable business environment. Hammer (1995) gives three reasons, abbreviated as the 3 C’s:

Customers have become much more sophisticated and demanding; they have a much greater range of alternatives, are much more knowledgeable about their own needs, and are exerting ever greater pressure on their suppliers. Competition, which at one time was local and relatively gentle, has become global and cutthroat. Whether in geopolitical realities, technology, or customer preferences, the pace of change is dizzying. What was unthinkable yesterday, is routine today.^[3]

Gary Hamel said nearly the same thing, but in a much more radical way:

"Somewhere out there is a bullet with your company’s name on it. Somewhere out there is a competitor, unborn and unknown, that will render your strategy obsolete, You can’t dodge the bullet – you’re going to have to shoot first. You’re going to have to out-innovate the innovators." ^[4]

Furthermore, numerous publications have dealt with change in the context of the economic transformation. According to Nolan / Croson (1995) ^[5] we are in the transition period from an industrial to what is called an information economy. Helmut F. Karner (1996) ^[6] states that the usual organizational systems based on the ideas of Adam Smith and Frederic Taylor are in their final stages. Bennis / Mische (1995) ^[7] have identified twelve trends – starting with globalization and ending with the need for breakthrough performance to survive.

In order to master these challenges, transforming the organization and adapting one’s actions (processes) according to this situation as quickly as possible is the goal of a management concept commonly referred to as change management.

In summary of these statements, it seems clear that each company has to implement a more or less progressive change initiative. To stress Gary Hamel’s statement again: You can’t dodge the bullet! In this situation, you are faced with a choice: change or transform your organization proactively, or to be transformed by your competitors, which is obviously the less attractive option.

2.2 Objectives

In this section, I would like to describe the overall goals of this thesis.

First of all, it is important to present the experiences I have had in the course of transforming a medium-sized enterprise, because change management is dedicated to organizations of all sizes and not only the big ones. This thesis is intended to illuminate one possible path.

Furthermore, this thesis points towards further possibilities and ways after finishing a change management project.

One additional goal is to propose several ways in which the shortcomings of change management projects can be eliminated and to show examples of how to do so.

In order to reach these goals, various management methods have to be taken into consideration.

Finally, it is not a goal of this work to develop a new theory of change management. This thesis contributes to the field of medium-sized organizations which plan to run a change management project.

2.3 Results of this thesis

First, this thesis includes an account of the entire process of deploying a change management project, as experienced at Datentechnik.

This study also gives a detailed "road map" and the hours required for each part of the transformation.

The second outcome of this thesis is a description of what to do after finishing a change management project. This includes methods to assure continuous improvement and ongoing learning in this new organizational environment. In other words, this is a brief description of how to switch over from rule-breaking and sporadic improvement to moderate but continual improvement.

Third, this description also includes the difficulties and lessons learned in the course of the project, giving an answer to the question, "What would you do if you could start all over again?".

Fourth, this thesis includes a detailed review of the literature on change management and organizational transformation. In other words, it includes a comparison of several approaches to change management and various management methods such as TQM, ISO 9001 and so on.

3 Creating your business future

In order to show how a change management project can work in a medium-sized organization, I will describe the way in which we implemented such a project at Datentechnik and compare some of the relevant literature and experience described in several books with the practical knowledge I have gained in the course of the whole project at Datentechnik. Therefore, this chapter is broken down into five major sections. The first gives an overview of different approaches and some short explanations of various management theories. The next three chapters guide the reader through the CM project at Datentechnik. In addition, the final section contains a number of proposals for the time after the project's completion.

This paper is structured as described above with numerous cross-references to other sections.

illustration not visible in this excerpt

Figure 1: The change cycle^[8]

The diagram above shows this project's road map on the one hand and that change management is not just a unique, isolated venture on the other.

"Continuous improvement must become part of an organization’s culture, whereby every employee looks to improve his or her performance. … A shared dissatisfaction with the status quo leads to the creation of continuous learning and improvement as a cultural norm."^[9]

Please refer to Section 3.5 for more detailed information on this topic.

3.1 General conspectus:

3.1.1 Organizational development concepts

In 1990, MIT’s Sloan School of Management identified five different IT-enabled business transformation approaches.^[10] Adapting this model and knowing that IT is one of the four major ingredients in process (re)design, we can also use it to propose various change management approaches.^[11]

Figure 2: Business transformation approaches^[12]

illustration not visible in this excerpt

The evolutionary approach suggested incremental changes, whereas fundamental changes can be made using the revolutionary approach. The methods addressed for each level are described in detail in the subsequent sections.

3.1.1.1 Localized exploitation

Moderate changes at what is referred to as Level One can be attained using methods like KAIZEN, ISO 9001 and other tools for continuous improvement.^[13]

Excursion KAIZEN:

"KAIZEN is a common-sense, low-cost approach to improvement, available to anybody who wishes to benefit from it. … All of us can apply KAIZEN to our daily work regardless of our position or job. …KAIZEN is one of the most effective ways to bring about immediate organizational change. …The starting point of KAIZEN is to recognize that whatever we are doing can be improved. "^[14]

Excursion ISO 9000:

The ISO 9000:2000 standards are a series of international standards based on eight quality-management principles. In addition, ISO 9001:2000 specifies the requirements for a quality management system for an organization that needs to demonstrate its ability to consistently provide a product that meets customer requirements, and the ISO 9004:2000 should be used if the company aims to make its quality management system increasingly effective in achieving its own business goals.

"ISO 9001 specifies requirements for a quality management system that can be used for internal application by organizations, or for certification, or for contractual purposes. It focuses on the effectiveness of the quality management system in meeting customer requirements.

ISO 9004 gives guidance on a wider range of objectives of a quality management system than does ISO 9001, particularly for the continual improvement of an organization’s overall performance and efficiency, as well as its effectiveness. ISO 9004 is recommended as a guide for organizations whose top management wishes to move beyond the requirements of ISO 9001, in pursuit of continual improvement of performance. However, it is not intended for certification or for contractual purposes."^[15]

3.1.1.2 Horizontal (internal) integration

At this level, broader changes have to be realized, but more profits can be achieved. Usually companies deploying methods or philosophies like TQM, SCM or the like have some experience in practice at Level One.

TQM – total quality management

Given that TQM isn’t a clear method or international standard like ISO 9000, there are many similar (but different) definitions. They range from W. Edward Deming’s 14 leadership points, to Philip B. Crosby’s six quality concepts and Joseph M. Juran’s strategic and structured approach to achieving quality.

Today some quality awards like AQA, EQA, the Deming prize and MBNQA give organizations the opportunity to measure - in an objective manner – their level of deployed TQM. More about this topic can be found in Section 3.5.1.

Nevertheless, the following definition is found on Integrated Quality Dynamics, Inc. web site:

" Total Quality Management is a structured system for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and breakthroughs with development, improvement, and maintenance cycles while changing organizational culture.^[16]

Since the relaunch of the ISO 9000:2000 in December 2000, eight quality management principles have been established:

- Customer focus
- Leadership
- Involvement of people
- Process approach
- System approach to management
- Continual improvement
- Factual approach to decision-making
- Mutually beneficial supplier relationships^[17]

I gather from them that if you put all eight principles together in formulating and deploying your own approach, you are practicing TQM.

SCM - supply chain management:

Supply chain management draws an arc from the supplier over the wholesaler to the final customer. The goal is to create a win/win situation for everybody involved in the chain. Therefore, several methods and tools like ISO 9000, TQM, process improvement, new and/or redesigned information management systems have to be used to coordinate the flows both within and among companies.

The Stanford University web site gives the following detailed definition of SCM:

"A set of approaches utilized to efficiently integrate suppliers and clients (comprised of stores, retailers, wholesalers, warehouses, and manufacturers) so merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requests. …The latest generation of supply chain management is web-centric. It is characterized by the marriage of the Internet and the supply chain and has resulted in the birth of electronic business (e-business) applications. These Internet-enabled, e-business applications have Internet-integrated all branches of the supply chain and emerged as the most cost-effective means of supply chain operation."^[18]

Tapscott (2000) describes "Web-centric" using the term "B-web"^[19]:

"..a b-web is a distinct system of suppliers, distributors, commerce service providers, infrastructure providers, and customers that use the Internet for their primary business communications and transactions."^[20]

Fisher (2000) recommends classifying the companies' products on the basis of their demand patterns. Therefore, he speaks of two categories – primarily functional or primarily innovative – each requiring a different supply chain (the first an efficient, the second a responsive one).^[21] This idea provides yet another indication of the importance of the value proposition, which will be discussed in Section 3.2.5.

3.1.1.3 Business process redesign

Depending on how radical and widespread process (re)design is deployed, it can be regarded as a revolutionary or evolutionary change management approach. In addition, the direction from which process (re)design is deployed is also a strong indication of how strong the change achievement will be.

BPR according to Michael Hammer

"The fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance."^[22]

In his definition, Hammer stresses four key words and explains them as follows:^[23]

Radical redesign: In his definition, it is not about making things five or ten percent better. It is about making quantum leaps in performance, achieving breakthroughs.

Radical: Radical means going to the root of things. Reengineering is not about improving what already exists. Rather, it is about throwing things away and starting over.

Process: By 'process' he means a group of related tasks that come together to create value for customers.

Redesign: Is about the designing the way in which work is done. Hammer believes that reengineering is based on the premise that the design of processes – the way in which work is done – is of essential importance.

CPR

"Core process redesign (CPR) is starting with a clean sheet of paper and redesigning and aligning the core business processes of an organization to achieve dramatic improvements in performance: cost, quality, service and so on. It is the exact opposite of the incremental improvement of a specific aspect of a process, which usually only serves to temporarily cover up major weaknesses or inadequacies of a current process"^[24]

Process innovation

"Adopting a process view of the business – a key aspect of process innovation – represents a revolutionary change in perspective: it amounts to turning the organization on its head, or at least on its side. A process orientation to business involves elements of structure, focus measurement, ownership, and customers. In definitional terms, a process is simply a structured, measured set of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization, in contrast to a product focus’s [sic] emphasis on what.

A process is thus a specific ordering of work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs: a structure for action. This structural element of processes is key to achieving the benefits of process innovation."^[25]

3.1.1.4 Business network redesign

Business network redesign can be seen as an enhancement of the traditional BPR methodologies. The goal is to design your corporate business divisions and business unit network.

Therefore, questions like the following have to be taken into consideration:^[26]

- Is the business division homogeneous, including the product - market combination?
- Chances for growth?
- Potential success factors?
- How does the "division portfolio" fit together?
- Is there a slight disequilibrium between the individual business units, and is each business unit strong enough to survive?
- Does each business unit create value for the customer?

3.1.1.5 Business scope redefinition

Business scope redefinition is the rethinking and articulation of the scope in which the company operates.^[27] This involves dealing with values, purpose statements and vision. Leadership will be the sustainable path to success, a path which goes from employees to organization and on to strategy / innovation and processes and systems.^[28]

3.1.2 The "transformation funnel"

Five different transformation levels were briefly described above. In its change management approach, Datentechnik decided to go the whole way from Level Five to Level Three in order to make a significant and fundamental performance change.

A number of different but analogous approaches and examples from large companies are described in the literature. Depending on the author and on his or her experience, five to ten stages, or phases, are identified.

Within the eight-stage process of creating major change,^[29] three main phases can be distinguished:

- Phase 1: Defrost the status quo
- Phase 2: Introduce new practices
- Phase 3: Ground the change

These three phases will be used to enable a comparison of the five different approaches and illustrate the common idea behind them.. It is rather conspicuous that all of them share a more or less lengthy phase of defrosting. During Phase One, no changes occur in any process. However, in my opinion and based on the experience during the project at Datentechnik, this is a crucial phase. Five out of eight reasons for failure in organizational transformations are related to the status quo. If you neglect any defrosting activities, you will rarely establish a sufficiently solid base on which to proceed.^[30] Another pair of authors identify four of eight pitfalls as related to Phase One.^[31]

Datentechnik saw some small – in the company’s opinion negligible – deviations from the path during Phase One. Certainly, some time was gained to shorten the project duration, but Datentechnik lost a considerable amount of time in the ensuing phases – in other words, the bill for disregarding Phase One had to be paid.

Phase Two involves first what I call creative paperwork – the (re)design of processes, information technology, information management and the organizational transformation^[32] – and second, the exhaustive implementation.

Phase Three can also be seen as the start of the next change management approach, but now on an evolutionary basis.

"Organizational change has no finish line. Instead, as a large-scale change program nears completion, continual improvement must begin in order to sustain the benefits gained during the transformation."^[33]

illustration not visible in this excerpt

Rosabeth Moss Kanter (2001) therefore established the Change Wheel, each spoke of which contains an element that, when combined with the others, gets systemic change rolling. The circular shape means that no single element automatically comes first. All elements must reinforce the change, or the wheel will stop turning.^[34]

Figure 3: The Change Wheel^[35]

I have also tried to identify the three main phases in the wheel. As a result of the wheel’s goal – it can, depending on the interpretation of each spoke, also be used for radical and continual change – there are no truly clear differences.

The following approaches to radical change are described in sequence. Based on an idea of Peter Senge's (1999) in his book The Dance of Change, I have chosen a spiral to depict their course.

illustration not visible in this excerpt

Figure 4: The change spiral^[36]

Both models have so much in common that they can be depicted as one image. Not shown in this picture is the affordable leadership.

"Leadership defines what the future should look like, aligns people with that vision, and inspires them to make it happen despite the obstacles…successful transformation is 70 to 90 percent leadership and only 10 to 30 percent management."^[37]

"Organizations attempting a transformation need transformational leaders throughout the company. ….A transformational leader is characterized as one who inspires followers with his or her vision, gains respect and trust, and intellectually challenges employees."^[38]

"Reinventing the enterprise necessitates a responsive, comprehensive, and effective methodology developed specifically for creating process innovation and lasting organizational transformation."^[39]

illustration not visible in this excerpt

Bennis / Mische (1995) developed a model for reengineering that in their words allows application in a variety of organizations.

Figure 5: The five phases of reengineering^[40]

The remarkable features of this model are that clear separations of the phases are shown, but in the additional twelve guidelines for using the model the primary emphasis is on thinking broadly, boldly, and openly. This leads to the next, and in this comparison the last method of applying radical change to an organization.

In The Dance of Change, Senge (1999) and his co-authors describe a sort of systemic framework toward change management.^[41]

"The fundamental flaw in most innovators’ strategies is that they focus on their innovation, on what they are trying to do – rather than understanding how the larger culture, structures, and norms will react to their efforts. Based on the experience of those who seem to be sustaining progress, we have come to the view that no progress is sustainable unless innovators learn to understand why the system is pushing back, and how their own attitudes and perceptions (as well as other forces) contribute to the "'pushback.'"^[42] The "pushback" is the reaction from the system – the harder you try to push the system, the harder the system reacts.

illustration not visible in this excerpt

Figure 6: Generating profound change^[43]

It is in the nature of the basic systemic approach that no sequential process is established, and that is why a comparison with the three major phases for major change creation is not possible. Instead of traversing a step-by-step methodology, one should keep the apparent and underlying implications in mind, in order to be prepared when interventions are made.^[44]

This systemic approach – not just for organizational change management – is also pursued by Frederic Vester (1999). In his definition of a complex system, he speaks of different parts in a dynamic arrangement in which one cannot intervene without changing the relationship between the parts, and this changes the nature of the entire system.^[45]

Kotter (1996) also indicates that changing highly interdependent settings is extremely difficult because the quantity of interconnections rarely makes it possible to move just one element by itself.

To summarize these models, a distinction of three main phases (defrost the status quo; introduce new practices; ground the change)^[46] helps provide basic orientation in the process. Furthermore, bearing the systemic impacts in mind throughout these phases can be regarded as fairly good preparation for the change management endeavor.

One element which can not be figured out easily but which each of these authors have described in more or less detail is the required leadership (see definition above) and communication.

Consider a simple two-by-two matrix that reflects the dual behaviors leadership and management^[47] with their impact on successful transformation.

For Kotter (1996), the outcome is that all highly successful transformation efforts combine good leadership with good management. A balance of the two is required.^[48]

Hammer (1995) wrote that change has to be sold throughout the company, and suggests that sales is, at its heart, communication – conveying the message to people in such a way that they respond positively. Therefore, he recommends ten principles of reengineering communications.^[49]

In my opinion, Thomas H. Davenport (2001) lifted the importance of communication to an even higher level when he wrote about attention together with John C. Beck:

"Failures of attention management are undoubtedly responsible for many business catastrophes, but because attention is one of those slippery intangible assets, it's difficult to document its presence (though its absence is surely felt)."^[50]

The extent to which attention and leadership are linked stresses the downstream principle:

"Whether you recognize it or not, your field of attention, the set of concerns and goals that you focus on, impacts you and your employees. It has a discernible trickle-down effect. Employees throughout a company make decisions about what to pay attention to based on their perception of what their leaders pay attention to. Because leaders are busy people, their attention focus is deemed to be most important. Consequently, leaders have to be more careful about how they invest their attention, for themselves and for their subordinates."^[51]

Based on these different approaches and combined with the experience of Datentechnik's senior consultant for its change management project – Helmut F. Karner – Datentechnik’s window on change management can be represented using the diagram below. Due to the implications of the various decisions made during the different stages – with each decision ruling some possible solutions out – I have dubbed this picture "the transformation funnel".

A detailed description of each stage will be given in the following chapters.

illustration not visible in this excerpt

Figure 7: The transformation funnel^[52]

3.2 Visioning phase

illustration not visible in this excerpt

This section describes in detail the defrosting activities mentioned above. In the transformation funnel model, this phase starts with rethinking corporate values followed by the purpose statement and value proposition, and finishes with the company's vision. In order to convince all employees who are not members of the initial team, or the redesign team as we called it at Datentechnik, accompanying measures like formulating the sense of urgency, forming a guiding coalition and nominating some value arbiters were taken.^[53]

The transition team^[54]

In the early stages, much of the initial responsibility falls on the shoulders of senior management. Involving employees during this transformation is essential.

The use of transition teams is usually the best way. Transition teams are groups of individuals with various functions and at various levels throughout the corporation brought together to analyze, plan and implement changes.

Most reengineering or change-management efforts fail due to a lack of employee involvement.

Head (1997) identified an eight-stage transition team activity plan which, in his experience, most transition or design teams follow.^[55]

The redesign team at Datentechnik consisted of twelve employees including the CEO, CFO, some department managers and a few experts. In addition, the redesign team was complemented by a so-called core team existing of four people who are specialists in a variety of topics (e.g., IT, TQM, marketing, Internet), have detailed knowledge of Datentechnik and good relationships with other employees throughout the company.

Datentechnik paid special attention to ensuring that both females and males were represented in the teams. It should be mentioned that the core team was the only team which existed throughout the whole project, while other teams were formed during the different stages to solve specific problems and later they were discharged from this task.

It is also worth mentioning that it is much easier to attain the critical mass^[56] necessary in a medium-sized enterprise than it is in big ones. On the other hand, companies which are not very large face the resource problem – its not easy to handle daily business while reinventing the company at the same time^[57], but smaller companies could rarely afford to formally remove the team members from their daily responsibilities, a problem which stands in sharp contrast to the recommendations of Bennis / Mische (1995).

3.2.1 Values

"Core values are the essential and enduring tenets of an organization. A small set of timeless guiding principles, core values require no external justification; they have intrinsic value and importance to those inside the organization."^[58]

Collins / Porras (1998) claim that the key is not what core values an organization has, but that it has core values at all. Even more, they suggest that a company should not change its core values in response to market changes; rather, it should change markets, if necessary, to remain true to its core values.

Covey (1989) see values as a map.

"A map is simply an explanation of certain aspects of the territory. ..…..Suppose you wanted to arrive at a specific location in central Chicago. A street map of the city would be a great help to you in reaching your destination. But suppose you were given the wrong map. Through a printing error, the map labeled ‘Chicago’ was actually a map of Detroit. Can you imagine the frustration, the ineffectiveness of trying to reach your destination? You might work on your behavior – you could try harder, be more diligent, double your speed. But your efforts would only succeed in getting you to the wrong place faster.

You might work on your attitude – you could think more positively. You still wouldn’t get to the right place, but perhaps you wouldn’t care. Your attitude would be positive, you’d be happy wherever you were. The point is, you’d still be lost. …Each of us has many, many maps in our head, which can be divided into two main categories: maps of the way things are, or realities, and maps of the way things should be, or values. We interpret everything we experience through these mental maps."^[59]

John E. Jones pictures what he calls the organizational universe, which values are placed in the middle of several concentric circles.^[60]

[...]

---

^[1] Excluding acquisitions, turnover rose from € 65,2 to € 75 m (15 percent in two years).

^[2] Adapted from Holzer, Richard / Pölz, Wolfgang: Business Excellence - Datentechnik Selbstbewertung 1999;

Wasicek Svenja: Qualitätsmanagement und Arbeitssituation, Diplomarbeit an der Universität Wien, 1999

^[3] Hammer, Michael: The Reengineering Revolution, New York: HarperCollins Publishers, 1995, 12

^[4] Hamel, Gary: Leading the revolution, Boston: Harvard Business School Press, 2000, 11

^[5] Adapted from Nolan, L. Richard / Croson, C. David: Creative destruction: a six stage process for transforming the organization, Boston: Harvard Business School Press, 1995, 2

^[6] Adapted from Karner, F. Helmut: Die personelle und strukturelle Seite des intellektuellen Kapitals, in: Wissensmanagement Die Aktivierung des intellektuellen Kapitals, Schneider Ursula (Hrsg.), Frankfurt am Main: Frankfurter Allgemeine Zeitung Verlagsbereich Wirtschaftsbücher, 1996, 97

^[7] Adapted from Bennis, Warren / Mische, Michael: The 21st century organization, San Francisco: Jossey-Bass Inc., Publishers, 1995, 23-26

^[8] Source: own creation

^[9] Head, W. Christopher: Beyond Corporate Transformation, Portland: Productivity Press, 1997, 196

^[10] Adapted from http://www.educause.edu/ir/library/text/cem934a.txt, 2002-02-02

^[11] Presented during a workshop at Datentechnik by Helmut F. Karner, 2000-12-18

^[12] Adapted from Helmut F. Karner and http://www.educause.edu/ir/library/text/cem934a.txt, 2002-02-02

^[13] ISO 9004:2000 Quality management systems – Guidelines for performance improvements, Annex B, 53 includes two fundamental ways for continual improvement: (a) breakthrough projects and (b) small-step ongoing improvement activities.

^[14] URL: http://www.kaizen.com/indx-a.htm, 2002-02-03

^[15] ISO 9001:2000: Quality management systems – Requirements, Edition 2000-12-17, 14

^[16] URL: http://www.iqd.com/hoshin_def.htm, 2002-02-20

^[17] Adapted from ISO 9000:2000 Quality management systems – Fundamentals and vocabulary, Edition 2000-12-17, 6

^[18] URL: http://www.stanford.edu/~jlmayer/Article-Webpage.htm, 2002-02-26

^[19] Tapscott (2000) furthermore identifies nine features which are also key dimensions of an effective and competitive b-web: (1) Internet infrastructure, (2) Value proposition innovation, (3) Multi-enterprise capability machine, (4) Five classes of participants (customers, context providers, content providers, commerce service providers, infrastructure provider, (5) Coopetition, (6) Customer-centricity, (7) Context reigns, (8) Rules and standards, (9) Bathed in knowledge.

^[20] Tapscott, Don / Ticoll, David / Lowy, Alex: digital capital, Boston: Harvard Business School Press, 2000, 17

^[21] Adapted from Fisher, L. Marshall: What is the right supply chain for your product? In Harvard Business Review on Managing the Value Chain, Boston: Harvard Business School Press, 2000, 128

^[22] Hammer (1995), 3

^[23] Adapted from Hammer (1995), 5

^[24] Head (1997), 98

^[25] Davenport H. Thomas: Process Innovation Boston: Harvard Business School Press, 1993, 5

^[26] Adapted from: Lombriser, Roman / Abplanalp, A. Peter: Strategisches Management, 2. Auflage, Zürich: Versus Verlag, 1998, 69

^[27] Adapted from URL: http://www.ogc.gov.uk/handbook/content/partb/b1.html; 2002-02-02

^[28] Adapted from Karner (1996), 96

^[29] Adapted from Kotter, P. John: Leading Change Boston: Harvard Business School Press, 1996, 21

^[30] Kotter, 3ff

^[31] Adapted from Bennis / Mische (1995), 35ff

^[32] Adapted from Nadler A. David / Gerstein S. Marc / Shaw B. Robert: Organizational Architecture, San Francisco: Jossey-Bass Inc., Publishers, 1992, 119

^[33] Head (1997), 54

^[34] Adapted from Kanter Rosabeth Moss: Evolve!:Succeeding in the digital culture of tomorrow Boston: Harvard Business School Press, 2001, 233

^[35] Adapted from Kanter (2001), 233

^[36] Adapted from Kotter (1996), 21 and Head (1997), 39

^[37] Kotter (1996), 25

^[38] Head (1997), 17

^[39] Bennis / Mische (1995), 39

^[40] Adapted from Bennis / Mische (1995), 41

^[41] Adapted from Senge, Peter (et al.): The Dance of Change: The challenges of sustaining momentum in learning organizations, New York: Doubleday, 1999a, 4

^[42] Senge (1999a), 26

^[43] Adapted from Senge (1999a), 39ff

^[44] On this topic, cf. also Wilke, Helmut: Systemtheorie II: Interventionstheorie, 2. Auflage, Stuttgard: Lucius & Lucius, 1996, 71ff

^[45] Adapted from Vester, Frederic: Die Kunst vernetzt zu denken: Ideen und Werkzeuge für einen Umgang mit Komplexität, 2. Auflage, Stuttgart: Deutsche Verlags-Anstalt GmbH, 1999a, 25

^[46] In their book Strategisches Management, Lombriser / Abplanalp (1998, 331) refer to Kurt Lewin (1947) on the three phases of transforming groups, which involves the same three phases mentioned here.

^[47] Kotter (1996) thinks of management as systematically targeting objectives and budgeting for them, creating plans to achieve those objectives, organizing for implementation, and controlling the process to keep it on track.

^[48] Kotter (1996), 129,

^[49] Hammer (1996), 151 These ten principles of reengineering communications are: (1) segment the audience; (2) use multiple channels; (3) use multiple voices; (4) be clear; (5) communicate, communicate, communicate; (6) honesty is the only policy; (7) use emotions, not just logic; (8) heal, console, encourage; (9) make the message tangible; (10) listen, listen, listen

^[50] Davenport, H. Thomas / Beck, C. John: The Attention Economy: Understanding the new currency of business. Boston: Harvard Business School Press, 2001, 7

^[51] Davenport 2001, 137

^[52] Source: own creation

^[53] Davenport (1993), 175 states that “Successful leaders of transformational restructuring understand that changes in mental methods, attitudes, values, and ultimately, behaviour are the foundation for successful implementation of these changes in operational and management structures and systems."

^[54] Adapted from Head (1997), 71

^[55] Head (1997), 93: The eight-stage transition team activity plan: (1) Training, charter, and system identification, (2) Current state data collection and research, (3) Process mapping and analysis of current state, (4) Benchmarking, (5) Clean-slate redesign, (6)Transition plan development, (7) Presentation to the steering committee, (8) Implementation

^[56] Kotter (1996) emphasized that in an organization with 100 employees, at least two dozen must go far beyond the normal call of duty to produce a significant change.

^[57] During a workshop at another medium-sized enterprise, one member of the board described this circumstance to me as follows: “Imagine trying to change the tires on a car while you are driving on a highway at a speed of about 200 km/h"

^[58] Collins C. James / Porras I. Jerry: Building Your Company’s Vision, in Harvard Business Review on Change, Boston: Harvard Business School Press, 1998, 27

^[59] Covey R. Stephen: The 7 Habits of highly effective people: Restoring the character ethic, New York: Fireside, 1989, 23

^[60] Adapted from URL: http://ous.iex.net/aftmath.htm, 2002-02-08