Organizational Processes & Change = Competitive Advantage Dr. Orlando Rivero

Overview Organizational Processes Organizational Change Competitive Advantage

Organizational Processes Organizational processes are a set of linked activities that create value by transforming an input into a more valuable output (Hunt & Osborn, 2005).

Organizational Processes Management processes - The processes that govern the operation. Typical management processes include "Corporate Governance" "Strategic Management“ & “Divisions of Operations” (H.R. Fin. Sales)Corporate GovernanceStrategic Management

Organizational Change Organizational change results in a ‘Major’ overhaul of Organization or its components system (Kotter, 2001). Organizational change is a massive change of the number of organizational units involved (French, 2001, p.234).

Organizational Change “… More and more organizations will be pushed to reduce costs, improve quality of products and services “organizational processes” and locate new opportunities” (Kotter, 2001, p.3).

Organizational Change Employees may ‘reject a change’ because they believe it is not worth their effort or attention. According to Bonn & Bonn (2000) Organizational Change is the most stressful moment for an employee. The feeling of doubt to be able to cope with change ignites false perception.

Organizational Change The first approach is through education and communication (Hunt & Osborn). Facilitation and support help experiencing the hardships of change (actively listening to employees). Explicit or implicit coercion employs the force of authority to get people to accept change. This leads to a variety of undesirable consequences if they do not go along as planned.

Organizational Change Organizational readiness is another approach that organizations should take to move employees through a major, often systemic change. The more straight-forward and streamlined the approach, the better the changes are for successful execution.

Remaining Competitive Formula for Success: Effective Business Processes + Effective Organizational Change = Increase Competitiveness It is vital for organizations to embrace changes by creating new markets, or business processes. By not doing so, the organization can be doomed for failure.

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